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FILED PURSUANT TO
RULE 424(B)(3)
FILE NO: 333-48418
PROSPECTUS SUPPLEMENT DATED MAY 14, 1999
TO
PROSPECTUS DATED APRIL 5, 1999
PRESS RELEASE
Media Contact: Demetris Brown, Chief Financial Officer
The Chapman Company
800-752-1013
www.chapmancompany.com
CHAPMAN HOLDINGS, INC. REPORT FIRST QUARTER '99 EARNINGS
MARYLAND, MAY 14 -- Chapman Holdings, Inc. (NASDAQ:CMAN), a full service
brokerage firm headquartered in Baltimore Maryland, today announced record
revenues for the first quarter ended March 31, 1999 of $1,723,000 representing a
114% increase over the comparable period during 1998 of $805,000. Revenue growth
was led by an 83% increase in municipal underwriting participation, resulting in
an increase in commission revenue of $444,000 over the same period during 1998.
Additionally, commission and advisory fee revenue gains were realized in the
retail brokerage and financial advisory services operations of 55.5% and 31.9%
respectively over the prior comparable period.
For the first quarter this year, the firm reported net earnings of $4,000,
reflecting business development costs associated with the firm's expansion
strategy. The firm reported net earnings of $55,000 or $0.02 per share for the
prior comparable period. Per share earnings for the first quarter this year were
based on 2,953,622 average common shares outstanding compared to 2,310,697 for
the prior comparable period.
Chairman and President, Nathan A. Chapman, Jr., noted the significance of the
record quarterly revenues commenting that the company has charted a clear
business development strategy linked to growth in all core business areas. Mr.
Chapman recently stated, "Given the expansion goals planned for 1999, we are
pleased with the progress made to date. Strategic business alliances and
investment related special events have strengthened the distribution of services
offered by the firm. The first quarter revenue growth is a result of an
aggressive business development strategy, additional regional offices, increased
trading volume, an expanded distribution channel and investments in key staff
and technology."
During the first quarter, Chapman announced an alliance with Aetna Retirement
Services, Inc. to include the DEM(TM) Equity Mutual Fund as part of Aetna's
product offering. Aetna Retirement Services, Inc. is a major provider of
employer-sponsored defined contribution retirement plans, as well as individual
annuities and other investment products.
Mr. Chapman said of the alliance with Aetna Retirement Services, Inc., "It is a
unique opportunity to be represented by a company with a customer base of nearly
2 million. We will have access to mainstream employer-sponsored pension and
retirement plans, annuities and individual retirement accounts. It is an
exciting time for our company."
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Baltimore, Maryland based Chapman Holdings, Inc. has satellite offices in
Alabama, California, Colorado, Illinois, Pennsylvania, Tennessee and Texas.
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