BOSTON , May 13 /PRNewswire-FirstCall/ -- Detwiler, Mitchell & Co. (OTC: DMCD) reported a net loss for the three months ended March 31, 2005 of $22,000 or $0.01 per share basic and diluted on 3,142,000 basic and 3,153,000 diluted weighted average shares outstanding. Had contingent deferred bonus compensation of $99,000 for the current period been recorded, loss before income taxes of $30,000 for the quarter ending March 31, 2005 would have been reported as a loss before income taxes of $129,000 . Net income for the three-month period ended March 31, 2004 was $220,000 or $0.07 per share basic and $0.06 per share diluted on 3,202,000 basic and 3,630,000 diluted weighted average shares outstanding.
Total revenues of $3,369,000 for the three months ended March 31, 2005 decreased $447,000 or 12% compared to $3,817,000 for the same period in 2004. The decrease primarily results from lower commission revenues of $419,000 due to reduced securities transactions from uncertain financial markets in 2005 as compared to the same period in 2004 and $165,000 of commissions reported in 2004 from the independent representative business which was exited by DMFG in the first quarter of 2004.
Stockholders' equity of $3,637,064 at March 31, 2005 does not give effect to the unvested, and therefore unrecorded, contingent deferred bonus obligation of $2,069,505 , before related income tax effects.
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Detwiler, Mitchell & Co. (the 'Company') is the holding company for its
two principal operating subsidiaries: Detwiler, Mitchell, Fenton & Graves,
Inc. ('DMFG') a channel research, institutional sales and private client group
broker/dealer headquartered in Boston , MA and
Cautionary Statement Regarding Forward-Looking Statements: Certain statements in this news release may contain forward-looking statements within the meaning of the Federal securities laws. Such statements should be considered in light of the risks and uncertainties associated with Detwiler, Mitchell & Co. and its operating subsidiaries, including those economic and market risks contained in the Company's Annual and Quarterly Reports and other risks prevailing from time to time; all of which are subject to material changes and may cause actual results to vary materially from what had been anticipated.
DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
March 31, December 31,
2005 2004
ASSETS (unaudited)
Cash and cash equivalents $3,028,040 $4,636,325
Deposit with clearing organization 150,000 150,000
Commissions receivable 852,255 883,181
Non-marketable securities, at fair value 19,500 19,500
Current income taxes receivable 12,204 --
Deferred income taxes 360,428 360,428
Fixed assets, net 313,580 310,881
Prepaid expenses and other assets 369,285 377,477
Total Assets $5,105,292 $6,737,792
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Salaries, bonuses and commissions payable $1,211,995 $2,765,340
Accounts payable and accrued liabilities 256,233 313,072
Total Liabilities 1,468,228 3,078,412
Commitments and contingencies
Stockholders' Equity
Preferred stock, no par value; 5,000,000
shares authorized, none issued -- --
Common stock, $0.01 par value; 20,000,000
shares authorized, 3,141,836 shares
outstanding at March 31, 2005 and
December 31, 2004 31,418 31,418
Paid-in-capital 5,337,242 5,337,242
Retained deficit (1,731,596) (1,709,280)
Total Stockholders' Equity 3,637,064 3,659,380
Total Liabilities and Stockholders'
Equity $5,105,292 $6,737,792
DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31,
2005 2004
(unaudited)
Revenues:
Commissions $3,284,968 $3,703,831
Interest and fees 84,422 85,597
Realized gain on investment -- 27,247
Total revenues 3,369,390 3,152,741
Expenses:
Compensation and benefits 2,204,383 2,223,343
General and administrative 624,027 561,166
Occupancy, communications and systems 328,564 365,202
Execution costs 242,234 283,453
Impairment of non-marketable investment -- 17,500
Total expenses 3,399,208 3,450,664
Income (loss) before income taxes (29,818) 366,011
Income tax (expense) benefit 7,502 (146,404)
Net income (loss) $(22,316) $219,607
Net income (loss) per share
Basic $(0.01) $0.07
Diluted $(0.01) $0.06
Weighted average shares outstanding:
Basic 3,141,836 3,202,356
Diluted 3,152,741 3,629,697
SOURCE Detwiler, Mitchell & Co.
