U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X Quarterly report pursuant to Section 13 or 15(d) of the Securities
- ---- and Exchange Act of 1934
For the quarterly period ended March 31, 2000
OR
- ---- Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _____________________ to ____________________
Commission File number 1-15799
GBI CAPITAL MANAGEMENT CORP.
----------------------------
(Exact Name of Registrant as Specified in its Charter)
Florida 65-0701248
- ------------------------------ ---------------------
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
1055 Stewart Avenue, Bethpage, New York 11714
- ----------------------------------------- ------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, Including Area Code: (516) 470-1000
----------------
Indicate by check whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes X No .
Indicate the number of shares outstanding of each of the Issuer's classes
of common equity, as of the latest practicable date: At May 9, 2000, Issuer had
outstanding 18,806,612 shares of Common Stock, par value $.0001 per share.
<PAGE>
PART I . FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GBI CAPITAL MANAGEMENT CORP. and SUBSIDIARIES
Consolidated Statements of Financial Condition
<TABLE>
March 31, August 24,
2000 1999
------------- ------------
(Unaudited) )
<S> <C> <C>
Assets
Cash $ 4,971,037 $ 502,437
Receivable from brokers and dealers 45,042,893 8,576,148
Securities owned, at market value 14,303,407 3,390,606
Furniture, fixtures and leasehold improvements, at cost
net of accumulated depreciation and amortization of
$2,577,947 and $2,051,418 for March 31, 2000 and
August 24, 1999 respectively 3,903,739 2,468,361
Deferred tax asset 1,314,000 834,000
Other assets 1,400,195 1,361,393
------------- ---------------
Total assets $ 70,935,271 $ 17,132,945
============= ===============
Liabilities and Stockholders' Equity
Liabilities:
Securities sold, not yet purchased, at market value $ 22,459,317 $ 3,918,091
Note payable - 243,667
Income taxes payable 4,491,007 84,600
Accrued expenses and other liabilities 24,778,604 4,820,811
------------- ---------------
Total liabilities 51,728,928 9,067,169
------------- ---------------
Stockholders' equity:
Common stock - $.0001 par value;
authorized 100,000,000, shares issued and outstanding
18,806,612 and 15,999,410 shares, respectively. 1,881 1,600
Additional paid-in capital 7,531,763 3,112,020
Retained earnings 11,672,699 4,952,156
------------- ---------------
Total stockholders' equity 19,206,343 8,065,776
------------- ---------------
Total liabilities and stockholders' equity $ 70,935,271 $ 17,132,945
============= ===============
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
GBI CAPITAL MANAGEMENT CORP. and SUBSIDIARIES
Consolidated Statements of Operations
<TABLE>
For the Three Months Ended For the Six Months Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
--------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues:
Commissions and trading income $ 49,777,911 $ 16,938,272 $ 73,421,872 $ 32,812,732
Interest and dividends, net 558,917 206,460 926,942 379,118
Underwriting fees 2,166,225 3,150 2,509,352 (88,651)
Other 30,982 1,849 74,074 18,516
-------------- ------------- ------------- -------------
Total Revenues 52,534,035 17,149,731 76,932,240 33,121,715
--------------- -------------- ------------- -------------
Expenses:
Compensation and benefits 34,841,808 11,075,294 51,103,359 23,010,743
Brokerage, clearance and exchange fees 2,369,559 1,317,181 4,004,784 2,448,990
Communications 994,410 766,209 1,696,883 1,251,785
Occupancy and equipment 1,687,130 1,076,727 3,026,490 2,085,794
Professional fees 846,534 653,404 1,169,978 834,931
Business development 577,443 446,567 966,805 821,100
Other 3,435,371 1,607,126 4,686,250 2,838,946
--------------- -------------- ------------- -------------
Total Expenses 44,752,255 16,942,508 66,654,549 33,292,289
--------------- -------------- ------------- -------------
Income (loss) before provision for income taxes 7,781,780 207,223 10,277,691 (170,574)
Income tax provision 3,232,567 104,300 4,241,859 63,600
--------------- -------------- ------------- -------------
Net Income $ 4,549,213 $ 102,923 $ 6,035,832 $ (234,174)
=============== ============== ============= =============
Basic earnings per common share $ 0.24 $ 0.01 $ 0.32 $ (0.01)
=============== ============== ============= =============
Diluted earnings per common share $ 0.24 $ 0.01 $ 0.32 $ (0.01)
=============== ============== ============= =============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
GBI CAPITAL MANAGEMENT CORP. and SUBSIDIARIES
Consolidated Statements Changes in Stockholders' Equity
<TABLE>
For the Six Months Ended March 31, 2000
---------------------------------------
Common Stock Additional
------------------- Paid-in Retained
Shares Par Value Capital Earnings Total
--------- ----------- ------------ -------- ---------
<S> <C> <C> <C> <C> <C>
Balance at September 30, 1999 18,806,612 1,881 7,536,801 5,636,867 13,175,549
Syndication costs - - (5,038) - (5,038)
Net income - - - 6,035,832 6,035,832
--------- --------- ---------- --------- -----------
Balance at March 31, 2000 18,806,612 $ 1,881 $ 7,531,763 $ 11,672,699 $ 19,206,343
========== ========= =========== ============ ============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
GBI CAPITAL MANAGEMENT CORP. and SUBSIDIARIES
Consolidated Statement of Cash Flows
<TABLE>
Six Months Ended March 31,
------------------------------------
2000 1999
-------------- --------
(Unaudited) (Unaudited)
<S> <C> <C>
Operating activities:
Net income (loss) $ 6,035,832 $(234,174)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 326,846 267,363
Deferred taxes (462,000) (20,400)
Decrease (increase) in operating assets:
Receivable from brokers and dealers (30,929,811) (1,762,329)
Securities owned, at market value (5,209,589) (2,223,823)
Other assets (292,474) 331,040
(Decrease) increase in operating liabilities:
Securities sold, not yet purchased 15,205,509 1,692,304
Income taxes payable 3,990,165 (2,274,032)
Accrued expenses and other liabilities 17,566,389 1,100,037
-------------- -----------
Net cash provided by (used in) operating activities 6,230,867 (3,124,014)
-------------- -----------
Investing activities:
Purchase of office furniture, equipment
and leasehold improvements (1,740,162) (185,173)
Syndication costs (5,038) (3,000)
--------------- --------------
Net cash used in investing activities (1,745,200) (188,173)
--------------- --------------
Financing activities:
Subscriptions received - 2,888,068
-------------- --------------
Net cash provided by financing activities - 2,888,068
-------------- --------------
Net (decrease) in cash 4,485,667 (424,119)
Cash at beginning of period 485,370 501,912
-------------- --------------
Cash at end of period $ 4,971,037 $ 77,793
============== ==============
Supplemental disclosure or cash flow information
Cash paid during the period for:
Interest $ 2,030,944 $ 1,306,584
Income Taxes $ 712,334 $ -
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
GBI CAPITAL MANAGEMENT CORP. and SUBSIDIARIES
Notes to Consolidated Financial Statements
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements include the accounts of GBI Capital
Management Corp, and its wholly owned subsidiary Gaines, Berland Inc.
("Gaines Berland"), and Gaines Berland's wholly owned subsidiaries, GBI
Trading Corp.("GBI Trading") (a development stage company) and GBI Fund
Management Corp. (the general partner of the GBI 1500 Focus Fund L.P., a
private investment partnership formed in August 1999), (collectively the
"Company"). GBI Trading was incorporated in February 1999 and GBI Fund
Management Corp. was incorporated in August 1999.
On August 24, 1999 GBI Capital Management Corp., formerly known as Frost
Hanna Capital Group, Inc., acquired all of the outstanding common stock of
Gaines Berland. For accounting purposes, the acquisition has been treated
as a recapitalization of Gaines Berland with Gaines Berland as the acquirer
(reverse acquisition). The historical financial statements prior to August
24, 1999 are those of Gaines Berland. The Company has changed it's fiscal
year end to September 30th. The Company's Statements of Operations,
Statements of Changes in Stockholders Equity, and Statement of Cash Flows
are for the period October 1, 1999 to March 31, 2000.
Gaines Berland is a broker-dealer registered with the Securities and
Exchange Commission and is a member of the National Association of
Securities Dealers, Inc. Gaines Berland acts as an introducing broker,
market maker, underwriter and trader for its own account.
Gaines Berland does not carry accounts for customers or perform custodial
functions related to customers' securities. Gaines Berland introduces all
of its customer transactions, which are not reflected in these financial
statements, to its clearing broker, which maintains the customers' accounts
and clears such transactions. Additionally, this clearing broker provides
the clearing and depository operations for Gaines Berland's proprietary
securities transactions. These activities may expose the Company to
off-balance-sheet risk in the event that customers do not fulfill their
obligations with the clearing broker, as Gaines Berland has agreed to
indemnify the clearing broker for any resulting losses.
At March 31, 2000, all of the securities owned and securities sold, not yet
purchased, and the amount receivable from clearing broker reflected on the
consolidated statement of financial condition are security positions with
and amounts due from this clearing broker.
The Company maintains cash in bank deposit accounts, which at times, may
exceed federally insured limits. The Company has not experienced any losses
in such accounts and believes it is not exposed to any significant credit
risk on cash.
Securities transactions, commission revenue and commission expenses are
recorded on a trade-date basis. Unrealized gains and losses on securities
transactions are included in principal transactions in the consolidated
statement of operations.
The financial statements have been prepared in conformity with generally
accepted accounting principles for interim financial information and with
the instructions to Form 10-Q. Accordingly they do not include all of the
information and footnotes as required by generally accepted accounting
principles for annual financial statements. These consolidated financial
statements should be read in conjunction with the Company's consolidated
financial statements and notes thereto for the year ended August 24, 1999,
contained in its Annual Report on Form 10-K. In the opinion of management
of the Company, all adjustments (consisting only of normal recurring
adjustments) considered necessary for a fair presentation have been
included. The operations for the six months ended March 31, 2000 are not
necessarily indicative of the results that may be expected for the full
year ending September 30, 2000.
Furniture and fixtures are depreciated on a straight-line basis over the
economic useful lives of the assets, not exceeding seven years. Leasehold
improvements are amortized over the lesser of their economic useful lives
or the expected term of the related lease.
6
<PAGE>
Management does not believe that any recently issued, but not yet
effective, accounting standards, if currently adopted, would have a
material effect on the accompanying consolidated financial statements.
2. INCOME TAXES:
The Company files consolidated federal income tax returns, but each
constituent entity files separate state income tax returns. The provision
for income taxes differs from the amount of income taxes determined by
applying the federal statutory rates principally because of the effect of
state taxes and permanent differences.
3. NET CAPITAL REQUIREMENT
As a registered broker-dealer, Gaines Berland is subject to the SEC's
Uniform Net Capital Rule 15c3-1 ("Net Capital Rule"), which requires the
maintenance of minimum net capital. Gaines Berland computes its net capital
under the aggregate indebtedness method permitted by rule 15c3-1, which
requires that Gaines Berland maintain minimum net capital, as defined, of
the greater of 6-2/3% of aggregate indebtedness, as defined, or $100,000,
or an amount determined based on the market price and number of securities
in which Gaines Berland is a market-maker, not to exceed $1,000,000.
At March 31, 2000, Gaines Berland had net capital, as defined, of
$6,253,638, which exceeded minimum net capital requirements of $1,954,125
by $4,299,513.
4. COMMITMENTS AND CONTINGENCIES
Gaines Berland has been named as defendant in certain legal actions in the
ordinary course of business. At March 31, 2000 and March 31, 1999, Gaines
Berland had accrued $3,186,050 and $2,109,500, respectively, for settlement
of all such legal proceedings.
5. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted
earnings per share ("EPS"):
<TABLE>
Three months ended Six months ended
March 31, March 31,
-----------------------------------------------------------------------------
2000 1999 2000 1999
----- ---- ---- ----
<S> <C> <C> <C> <C>
Numerator for basic and diluted EPS:
Net income (loss) $ 4,549,213 $ 102,923 $ 6,035,832 $ (234,174)
============= ============ ============ ===========
Denominator for basic EPS 18,806,612 16,423,626 18,806,612 16,740,975
Denominator for diluted EPS 18,857,973 16,423,626 18,857,973 16,740,975
============ ============ ============ ===========
Basic EPS 0.24 0.01 0.32 (0.01)
============ ============ ============ ===========
Diluted EPS 0.24 0.01 0.32 (0.01)
============ ============ ============ ===========
</TABLE>
7
<PAGE>
6. ACCRUED EXPENSES
At March 31, 2000 Gaines Berland had accrued expenses of $24,778,604, of
which $15,386,906 was for commissions and salaries payable, $3,930,000 was
for bonus accrual, $3,186,050 was for settlements and $928,208 was for
deferred rent payable.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Forward-Looking Statements
When used in this form 10-Q and in future filings by the Company with the
Securities and Exchange Commission, the words or phrases "will likely result,"
"management expects," or "the Company expects," "will continue," "is
anticipated," "estimated" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance
on any such forward-looking statements, each of which speak only as of the date
made. Such statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from historical earnings and those
presently anticipated or projected. These risks and uncertainties include those
set forth in the Company's definitive Proxy Statement relating to a special
meeting of Stockholders held on August 23, 1999. The Company has no obligation
to publicly release the result of any revisions which may be made to any
forward-looking statements to reflect anticipated or unanticipated events or
circumstances occurring after the date of such statements.
Results of Operations
Three Months Ended March 31, 2000 vs. Three Months Ended March 31, 1999
Revenues
Commissions and trading income for the three months ended March 31, 2000
increased 193.9% to $49,777,911 from the three months ended March 31, 1999. This
increase is a result of the addition of registered representatives and an active
market in equity securities.
Interest and dividend income, net for the three months ended March 31, 2000
increased 170.7%, to $558,917 from the comparable period in 1999. The increase
is primarily due to higher average cash balances with our clearing broker and
rising interest rates.
Underwriting fees for the three months ended March 31, 2000 increased to
$2,166,225 from $3,150 during the comparable period in 1999. The increase is the
result of our participation in two underwritten public offerings as a
co-manager, during the 2000 period, as opposed to not participating in any
public offerings for the comparable period in 1999.
Expenses
Employee compensation and benefits for the three months ended March 31,
2000 increased 214.6%, to $34,841,808 from the comparable period in 1999. The
increase is primarily attributable to the increase in revenues since employee
compensation to the Company's traders and registered representatives is directly
related to certain components of revenue.
Brokerage, clearance and exchange fees for the three months ended March 31,
2000 increased 79.9%, to $2,369,559, from the comparable period in 1999 as a
result of higher ticket volume.
Communications expense for the three months ended March 31, 2000 increased
29.8%, to $994,410, from the comparable period in 1999. This increase is a
result of the establishment and operations of an additional branch office in
Florida and the expansion of the New York City office.
Occupancy and equipment costs for the three months ended March 31, 2000
increased 56.7%, to $1,687,130, from the comparable period in 1999. This
increase is a result of the establishment of an additional branch office in
Florida and the relocation to a larger facility in New York City.
Professional fees for the three months ended March 31, 2000 increased
29.6%, to $846,534, from the comparable period in 1999. This increase is
primarily a result of an increase in customer arbitrations in 2000.
9
<PAGE>
Business development costs for the three months ended March 31, 2000
increased 29.3%, to $577,443, from the comparable period in 1999. This increase
is primarily the result of additional registered representatives and broker
trainees, and the purchase of additional prospective customer lists used to
generate new business.
Other expenses for the three months ended March 31, 2000 increased 113.8%
to $3,435,371, from the corresponding period in 1999. This increase is primarily
a result of an increase in underwriting activities and the expenses related to
them.
Income tax provision for the three months ended March 31, 2000 was
$3,232,567 as compared to the income tax provision of $104,300 for the three
months ended March 31, 1999, which was consistent with the increase in income
before this income tax provision.
Net income of $4,549,213 for the three months ended March 31, 2000,
compares to net income of $102,923 for the three months ended March 31, 1999.
This resulted primarily from the increase in revenues offset by increases in
expenses as discussed above.
Six Months Ended March 31, 2000 vs. Six Months Ended March 31, 1999
Revenues
Commissions and trading income for the six months ended March 31, 2000
increased 123.8% to $73,421,872 from the six months ended March 31, 1999. This
increase is a result of the addition of registered representatives and an active
market in equity securities.
Interest and dividend income, net for the six months ended March 31, 2000
increased 144.5%, to $926,942 from the comparable period in 1999. The increase
is primarily due to higher average cash balances with our clearing broker and
rising interest rates.
Underwriting fees for the six months ended March 31, 2000 increased to
$2,509,352 from ($88,651) during the comparable period in 1999. The increase is
the result of our participation in five underwritten public offerings as a
co-manager, during the 2000 period, as opposed to not participating in any
public offerings for the comparable period in 1999.
Other revenues for the six months ended March 31, 2000 increased 300%, to
$74,074 from the six months ended March 31, 1999. This increase is primarily due
to an insurance claim for a faulty telephone switch that was settled in December
1999.
Expenses
Employee compensation and benefits for the six months ended March 31, 2000
increased 122%, to $51,103,359 from the comparable period in 1999. The increase
is primarily attributable to the increase in revenues since employee
compensation to the Company's traders and registered representatives is directly
related to certain components of revenue.
Brokerage, clearance and exchange fees for the six months ended March 31,
2000 increased 63.5%, to $4,004,784, from the comparable period in 1999 as a
result of higher ticket volume.
Communications expense for the six months ended March 31, 2000 increased
35.5%, to $1,696,883, from the comparable period in 1999. This increase is a
result of the establishment and operations of an additional branch office in
Florida and the expansion of the New York City office.
Occupancy and equipment costs for the six months ended March 31, 2000
increased 45.1%, to $3,026,490, from the comparable period in 1999. This
increase is a result of the establishment of an additional branch office in
Florida and the relocation to a larger facility in New York City.
Professional fees for the six months ended March 31, 2000 increased 40.1%,
to $1,169,978, from the comparable period in 1999. This increase is primarily a
result of an increase in customer arbitrations in 2000.
10
<PAGE>
Business development costs for the six months ended March 31, 2000
increased 17.8%, to $966,805, from the comparable period in 1999. This increase
is primarily the result of additional registered representatives and broker
trainees, and the purchase of additional prospective customer lists used to
generate new business.
Other expenses for the six months ended March 31, 2000 increased 65.1% to
$4,686,250, from the corresponding period in 1999. This increase is primarily a
result of an increase in underwriting activities and the expenses related to
them.
Income tax provision for the six months ended March 31, 2000 was $4,241,859
as compared to the income tax provision of $63,600 for the six months ended
March 31, 1999, which was consistent with the increase in income before this
income tax provision.
Net income of $6,035,832 for the six months ended March 31, 2000, compares
to net loss of $(234,174) for the six months ended March 31, 1999. This resulted
primarily from the increase in revenues offset by increases in expenses as
discussed above.
Liquidity and Capital Resources
Approximately 91% of the Company's assets at March 31, 2000 are highly
liquid, consisting primarily of cash and cash equivalents, securities
inventories, and receivables from other broker-dealers, all of which fluctuate,
depending upon the levels of customer business and trading activity. Receivables
from broker-dealers, which are primarily from the Company's clearing broker,
turn over rapidly. As a securities dealer, we may carry significant levels of
securities inventories to meet customer needs. Our inventory of market-making
securities is readily marketable; however, holding large blocks of the same
security may limit liquidity and prevent realization of full market value for
the securities. A relatively small percentage of our total assets are fixed. The
total assets or the individual components of total assets may vary significantly
from period to period because of changes relating to customer demand, economic
and market conditions, and proprietary trading strategies.
The Company's brokerage subsidiary, Gaines, Berland Inc., is subject to net
capital rules of the NASD and the SEC. Therefore, it is subject to certain
restrictions on the use of capital and its related liquidity. Gaines Berland's
net capital position as of March 31, 2000, was $6,253,638, which was $4,299,513,
in excess of its net capital requirement.
The Company's overall capital and funding needs are continually reviewed to
ensure that its capital base can support the estimated needs of its business
units. These reviews take into account business needs as well as regulatory
capital requirements of the subsidiary. Based upon these reviews, management
believes that the Company's capital structure is adequate for current operations
and reasonably foreseeable future needs.
The Company's brokerage subsidiary, as guarantor of its customer accounts
to its clearing broker, is exposed to off-balance-sheet risks in the event that
its customers do not fulfill their obligations with the clearing broker. In
addition, to the extent the Company maintains a short position in certain
securities, it is exposed to a further off-balance-sheet market risk, since the
Company's ultimate obligation may exceed the amount recognized in the financial
statements.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In January 1999, Gaines Berland was named as a defendant in a class action
lawsuit commenced in the United States District Court for the Southern District
of Texas relating to a secondary public offering of Mitcham Industries, Inc. for
which it served as an underwriter with Jefferies & Company, Inc. and Rauscher
Pierce Refsnes, Inc. (the "Moskowitz Class Action"). That offering involved the
sale of approximately $35,000,000 in securities, although the amount of damages
claimed is undeterminable at this time. Gaines Berland, along with the other
underwriters, is entitled to be indemnified by Mitcham pursuant to the
underwriting agreement executed in connection with that offering, subject to
certain qualifications, reservations and limitations as provided in that
underwriting agreement. On September 28, 1999, the underwriter defendants'
(including Gaines Berland) motion to dismiss this lawsuit against them was
granted by the Court. On or about December 8, 1999, plaintiffs filed an amended
complaint. On January 18, 2000, the underwriter defendants filed a motion to
dismiss the amended complaint. The motion to dismiss is currently pending.
In addition to the foregoing, Gaines Berland has been, and continues to be
the subject of numerous civil actions and arbitrations arising out of customer
complaints relating to its activities as a broker-dealer in securities, as an
employer and as a result of other business activities. In general, the cases
involve various allegations that employees of Gaines Berland had mishandled
customer accounts. At March 31, 2000, we estimate that the total amount sought
from Gaines Berland in pending and threatened claims is approximately
$14,859,277. It is our opinion, based upon our historical experience and the
reserves established by us, that the resolution of all claims presently pending
will not have a material adverse effect on the consolidated financial condition
of our company.
ITEM 2. SALES OF UNREGISTERED SECURITIES
<TABLE>
Consideration Received
and Description of If Option, Warrant
Underwriting or Other or Convertible
Discounts to Market Security, Terms of
Title of Price Afforded to Exemption from Exercise or
Date of Sale Security Number sold Purchasers Registration Claimed Conversions
- ------------ -------- ----------- ----------------------- -------------------- --------------------
<S> <C> <C> <C> <C> <C>
1/3/00 Options to 36,364 Options granted under 4(2) 1/3 exercisable
purchase Common 1999 Performance 1/3/01, 1/3/02,
Stock Equity Plan; no cash 1/3/03 at an
consideration received exercise price of
by Company until $2.75 per share and
exercise which all expire
1/2/10
</TABLE>
12
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27. Financial Data Schedule (3/31/00)
(b) Reports on Form 8-K
None.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GBI Capital Management Corp.
----------------------------
(Registrant)
Dated: May 10, 2000 By: /s/ Joseph Berland
--------------------
Joseph Berland
Chairman of the Board and
Chief Executive Officer
By: /s/ Diane Chillemi
-------------------------
Diane Chillemi
Chief Financial Officer
14
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
- -------- -----------
27 Financial Data Schedule (3/31/00)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> MAR-31-2000
<CASH> 4,971,037
<SECURITIES> 14,303,407
<RECEIVABLES> 45,042,893
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 64,317,337
<PP&E> 3,903,739
<DEPRECIATION> (2,577,947)
<TOTAL-ASSETS> 70,935,271
<CURRENT-LIABILITIES> 51,728,928
<BONDS> 0
<COMMON> 1,881
0
0
<OTHER-SE> 19,204,462
<TOTAL-LIABILITY-AND-EQUITY> 70,935,271
<SALES> 76,932,240
<TOTAL-REVENUES> 76,932,240
<CGS> 56,074,948
<TOTAL-COSTS> 56,074,948
<OTHER-EXPENSES> 10,579,601
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 10,277,691
<INCOME-TAX> 4,241,859
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,035,832
<EPS-BASIC> .32
<EPS-DILUTED> .32
</TABLE>
