===============================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
/ / 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 001-14205
JWGENESIS FINANCIAL CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 65-0811010
------------------------------ -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
980 North Federal Highway - Suite 310
Boca Raton, Florida 33432
--------------------------------------------- -----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (561) 338-2600
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 last 90 days. Yes /x/ No / /
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at May 3, 2000
--------------------------------------- --------------------------
Common stock, $.001 par value per share 8,530,869
===============================================================================
<PAGE>
JWGENESIS FINANCIAL CORP.
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I. Financial Information
Item 1. Financial Statements.
Consolidated Condensed Statements of Financial Condition
at March 31, 2000 and December 31, 1999 3
Consolidated Condensed Statements of Income for the Three
Month Periods Ended March 31, 2000 and 1999 4
Consolidated Condensed Statements of Cash Flows for the Three Month Periods
Ended March 31, 2000 and 1999 5
Notes to Consolidated Condensed Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures about Market Risk 8
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 13
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
- ----------------------------
<TABLE>
<CAPTION>
JWGENESIS FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
--------------------------------------------------------
March 31, December 31,
2000 1999
-------------------------------
(Unaudited)
<S> <C> <C>
ASSETS
- ------
Cash and cash equivalents $ 30,957,000 $ 53,117,000
Commissions and other receivables from clearing brokers 16,999,000 4,435,000
Receivable from brokers and dealers 494,000 8,965,000
Securities owned, at estimated fair value 20,635,000 20,001,000
Cost in excess of the fair value of net assets acquired 14,897,000 15,101,000
Furniture, equipment and leasehold improvements, net of accumulated
depreciation and amortization of $3,867,000 and $3,658,000 2,361,000 2,502,000
Deferred tax asset 4,004,000 4,216,000
Deferred expense 6,647,000 6,858,000
Other, net 7,045,000 6,770,000
------------------------------
$104,039,000 $121,965,000
==============================
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Accounts payable, accrued expenses and other liabilities $ 21,885,000 $ 17,025,000
Payable to brokers and dealers 3,599,000 5,004,000
Securities sold, not yet purchased, at estimated fair value 2,553,000 1,606,000
Deferred income 13,750,000 14,125,000
Income taxes payable 218,000 893,000
------------------------------
42,005,000 38,653,000
------------------------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value; authorized 5,000,000 shares; no shares issued
or -- --
Common stock, $.001 par value; authorized 30,000,000 shares; issued
and outstanding 8,502,016 and 9,268,450 9,000 9,000
Additional paid-in capital 5,034,000 31,358,000
Retained earnings 56,991,000 51,945,000
------------------------------
Total stockholders' equity 62,034,000 83,312,000
------------------------------
$104,039,000 $121,965,000
==============================
(The accompanying Notes to Consolidated Condensed Financial Statements are
an integral part of these financial statements.)
</TABLE>
3
<PAGE>
JWGENESIS FINANCIAL CORP. AND SUBSIDIARIES
------------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
-------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
---------------------------------
2000 1999
---------------------------------
<S> <C> <C>
Revenues:
- --------
Commissions $43,859,000 $28,043,000
Market making and principal transactions, net 7,724,000 6,749,000
Interest 1,422,000 3,621,000
Clearing fees -- 3,205,000
Other 2,307,000 1,751,000
---------------------------------
55,312,000 43,369,000
---------------------------------
Expenses:
- --------
Commissions and clearing costs 34,100,000 20,332,000
Employee compensation and benefits 6,849,000 6,744,000
Selling, general and administrative 5,945,000 8,592,000
Interest 84,000 1,479,000
---------------------------------
46,978,000 37,147,000
---------------------------------
Income before income taxes 8,334,000 6,222,000
Provision for income taxes 3,288,000 2,444,000
---------------------------------
Net income $ 5,046,000 $ 3,778,000
================================
Earnings per common share:
Basic $ 0.57 $ 0.43
================================
Diluted $ 0.50 $ 0.40
================================
Weighted average common shares outstanding:
Basic 8,857,000 8,787,000
================================
Diluted 10,139,000 9,472,000
================================
(The accompanying Notes to Consolidated Condensed Financial Statements are an
integral part of these financial statements.)
</TABLE>
4
<PAGE>
JWGENESIS FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
---------------------------------------
2000 1999
---------------------------------------
<S> <C> <C>
Operating activities
- --------------------
Net income $ 5,046,000 $ 3,778,000
Adjustments to reconcile net income to net cash
used by operating activities:
Depreciation and amortization on furniture,
equipment and leasehold improvements 209,000 202,000
Amortization of costs in excess of fair value of
net assets acquired and other 617,000 190,000
Change in assets and liabilities, net of effect of acquisition:
Receivable from customers -- (50,003,000)
Receivable from brokers and dealers (4,093,000) (13,551,000)
Securities owned (634,000) 449,000
Deferred tax asset 212,000 (619,000)
Other assets (477,000) (5,265,000)
Accounts payable, accrued expenses and other liabilities 5,360,000 5,391,000
Payable to customers -- (20,164,000)
Payable to brokers and dealers (1,405,000) 36,312,000
Securities sold, not yet purchased 947,000 1,218,000
Income taxes payable (675,000) 455,000
Deferred tax liabilities -- (356,000)
Deferred income (375,000) --
--------------------------------------
Net cash provided by (used in) operating activities 4,732,000 (41,963,000)
--------------------------------------
Investing activities
- --------------------
Purchases of furniture, equipment and leasehold improvements (68,000) (818,000)
--------------------------------------
Financing activities
- --------------------
Change in short-term borrowings from banks -- 49,073,000
Change in lines of credit 2,000,000
Acquisition and cancellation of common stock (35,000,000) (1,434,000)
Tax benefit from exercise of stock options 2,235,000 --
Issuance of common stock 5,941,000 1,359,000
--------------------------------------
Net cash provided (used) by financing activities (26,824,000) 50,998,000
--------------------------------------
Net increase (decrease) in cash and cash equivalents (22,160,000) 8,217,000
Cash and cash equivalents at beginning of period 53,117,000 16,978,000
--------------------------------------
Cash and cash equivalents at end of period $ 30,957,000 $ 25,195,000
=====================================
(The accompanying Notes to Consolidated Condensed Financial Statements
are an integral part of these financial statements.)
</TABLE>
5
<PAGE>
JWGENESIS FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
As discussed elsewhere herein and in the Company's 1999 Annual Report on Form
10-K, on June 12, 1998, JWGenesis Financial Corp. ("JWGenesis" or the "Company")
and its predecessor JWGenesis Financial, Inc. ("JWGFI") consummated a series of
transactions (the "Combination") in which the Company acquired Genesis Merchant
Group Securities LLC ("Genesis") and JWGFI, the latter pursuant to a statutory
share exchange of one share of JWGenesis common stock for each outstanding share
of JWGFI common stock. As a result of the Combination, JWGenesis succeeded to
the business and operations of JWGFI and Genesis. Additionally , in connection
with the Combination, Genesis Merchant Group Securities, LLC changed its name to
JWGenesis Capital Markets, LLC. The information in the Financial Section of this
Report relating to periods prior to June 12, 1998 is derived solely from
information and financial statements of JWGFI and, except as otherwise expressly
indicated, relates to matters prior to the Combination.
The interim financial information included herein is unaudited; however, such
information reflects all adjustments, which are, in the opinion of management,
necessary for a fair presentation of the periods indicated.
The accompanying consolidated condensed financial statements include the
accounts of the Company and its subsidiaries. Certain information and footnote
disclosures normally included in financial statements prepared in conformity
with generally accepted accounting principles have been condensed or omitted
pursuant to the rules and regulations of the Securities and Exchange Commission.
These consolidated condensed financial statements should be read in conjunction
with the consolidated condensed financial statements and related notes contained
in the Company's 1999 Annual Report on Form 10-K.
Because of seasonal and other factors, the results of operations for the three
month period ended March 31, 2000 are not necessarily indicative of the results
of operations to be expected for the fiscal year ending December 31, 2000.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Consolidation
- ----------------------
The accompanying consolidated financial statements include the accounts of the
Company and its subsidiaries which are: JWGFI, JWGenesis Financial Services,
Inc. ("JWGFS"), JWGenesis Securities, Inc. ("JWG Securities"), JWGenesis Capital
Markets, Inc. ("JWG Markets"), JWGenesis Insurance Services, Inc. ("JWG
Insurance"), DMG Securities, Inc. ("DMG") and JWGenesis Financial Group, Inc.
("JWGFG"). In addition, the accompanying consolidated financial statements
include the accounts of JWGenesis Capital Markets, LLC ("JWG Capital") (See Note
5, "Acquisitions and Divestitures") for the period June 12, 1998 through March
3, 1999 and JWGenesis Clearing Corp. ("JWG Clearing") through June 1, 1999. All
significant intercompany transactions have been eliminated in consolidation.
Reclassifications
- -----------------
Certain amounts in the prior period's consolidated condensed financial
statements have been reclassified to conform to the current period's
presentation. These reclassifications are not material to the consolidated
condensed financial statements.
3. CONTINGENCIES
The Company is involved in various claims and possible actions arising out of
the normal course of its business. Although the ultimate outcome of these claims
cannot be ascertained at this time, it is the opinion of the Company, based on
knowledge of facts and advice of counsel, that the resolution of such actions
will not have a material adverse effect on the Company's financial condition and
results of operations.
6
<PAGE>
4. NET CAPITAL
The broker-dealer subsidiaries of the Company are subject to the requirements of
Rule 15c3-1 under the Securities Exchange Act of 1934. This rule requires that
aggregate indebtedness, as defined, not exceed fifteen times net capital, as
defined. At March 31, 2000, the net capital positions of the Company's broker-
dealer subsidiaries were as follows:
JWGFS:
Ratio of aggregate indebtedness to net capital 2.26
Net capital $4,997,000
Required net capital $752,000
JWG Securities:
Ratio of aggregate indebtedness to net capital 1.64
Net capital $5,666,000
Required net capital $618,000
JWGFG:
Ratio of aggregate indebtedness to net capital 1.50
Net capital $2,771,000
Required net capital $278,000
DMG:
Ratio of aggregate indebtedness to net capital .34
Net capital $324,000
Required net capital $100,000
5. SEGMENT ANALYSIS
The Company's reportable segments are: captive retail distribution,
independently owned retail distribution, clearing and trading, capital markets
and other. The captive retail distribution segment includes the fourteen retail
branches of JWG Securities located in Florida, California, Georgia and New York
and the five retail branch offices of JWGFG located in Florida, Colorado,
Illinois and California. These branches provide securities brokerage services
including the sale of equities, mutual funds, fixed income products and
insurance to their retail clients. The independently owned retail distribution
segment includes the approximately 135 JWGFS offices and one DMG office, all of
which are located in the U.S., providing securities brokerage services including
the sale of equities, mutual funds, fixed income products and insurance to their
retail clients. The clearing and trading segment comprises primarily JWG
Clearing's operations through June 1, 1999 which were providing clearing
services primarily on a fully disclosed basis to small broker dealers, the
trading of equities and fixed income products as principal, and investments in
firms including MVP.com, Inc., Knight/Trimark Group, Inc. and Strike
Technologies LLC. The capital markets segment includes management and
participation in underwritings (exclusive of sales credits, which are included
in the distribution segments), mergers and acquisitions, public finance,
institutional trading, institutional research and market making for
institutional research. Segment data includes charges allocating corporate
overhead to each segment. Intersegment revenues and charges are eliminated
between segments. The Company evaluates the performance of its segments and
allocates resources to them based on return on investment.
7
<PAGE>
The Company has not disclosed asset information by segment as the information is
not produced internally. All long-lived assets are located in the U.S.
The Company's business is predominantly in the U.S.
Information concerning operations in these segments of business is as follows:
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------------
2000 1999
------------ ------------
<S> <C> <C>
Revenue:
Captive retail distribution $ 27,745,000 $ 15,982,000
Independently owned distribution 19,716,000 11,532,000
Clearing and trading 7,110,000 12,312,000
Capital markets 741,000 3,519,000
Other 0 24,000
------------ ------------
Total $ 55,312,000 $ 43,369,000
============ ============
Pre-tax income:
Captive retail distribution $ 5,231,000 $ 446,000
Independently owned distribution 2,148,000 856,000
Clearing and trading 885,000 5,451,000
Capital markets 70,000 (164,000)
Other 0 (367,000)
------------ ------------
Total $ 8,334,000 $ 6,222,000
============ ============
</TABLE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
---------------------------------------------
FORWARD LOOKING STATEMENTS AND GENERAL
From time to time, information provided by the Company or statements made by its
directors, officers or employees may constitute "forward-looking statements"
under the meaning of the Private Securities Litigation Reform Act of 1995. Any
statements made in this Form 10-Q, including any statements incorporated herein
by reference, that are not statements of historical fact are forward-looking
statements. Such forward-looking statements and other forward-looking statements
made by the Company or its representatives are based upon a number of
assumptions and involve a number of risks and uncertainties, and, accordingly,
actual results could differ materially. Factors that may cause such differences
include, but are not limited to, those set forth in Item 1 - Business, under the
heading "Risk Factors", in the Company's Annual Report on Form 10-K for the year
ended December 31, 1999 (the "1999 10-K").
As discussed in the 1999 10-K, on June 12, 1998, the Company acquired Genesis as
part of the Combination and succeeded to the respective businesses and
operations of both JWGFI and Genesis. The results of all of Genesis' operations
8
<PAGE>
are reflected in the Company's results for the portion of the fiscal year 1999
period through March 3, 1999, on which date the Company divested Genesis in a
transaction in which the Company nonetheless retained the corporate finance
services operations that it had been conducting through Genesis, while divesting
Genesis' brokerage processing services business unit. Management does not
believe the effects of the divestiture is material to the Company's operations.
However, the inclusion of Genesis' operations for most of the 1999 period does
have some impact on the Company's data and this analysis. In the discussions
below, historical references to JWG Capital (which is the new name for the
Company's subsidiary that conducts the business retained in the divestiture of
Genesis) include the divested operations of Genesis.
As also discussed in the 1999 10-K, on June 1, 1999, the Company sold JWG
Clearing in a cash transaction for approximately $59 million, and ceased all
securities clearing operations. The results of JWG Clearing's operations through
March 31, 1999 are included in the Company's financial data for the three-month
period in 1999, but no such operations are part of the data for the three-month
period in 2000, which has a significant impact on the following data and
analysis.
RESULTS OF OPERATIONS
Three Months Ended March 31, 2000 (The "2000 Period") Vs. March 31, 1999
(The "1999 Period")
<TABLE>
<CAPTION>
Three Months Ended March 31,
--------------------------------------------------------------
2000 1999 1998
(000's) % Change (000's) % Change (000's)
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues:
Commissions $ 43,859 56 $ 28,043 114 $ 13,129
Market making and principal
transactions, net 7,724 14 6,749 39 4,868
Interest 1,422 (61) 3,621 15 3,162
Clearing fees 0 (100) 3,205 50 2,138
Other 2,307 32 1,751 79 976
-------------------------------------------------------------
$ 55,312 28 $ 43,369 79 $ 24,273
=============================================================
<CAPTION>
Three Months Ended March 31,
--------------------------------------------------------------
2000 1999 1998
(000's) % Change (000's) % Change (000's)
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Expenses:
Commissions and clearing costs $ 34,100 68 $ 20,332 60 $ 12,675
Employee compensation and benefits 6,849 2 6,744 52 4,448
Selling, general and administrative 5,945 (31) 8,592 123 3,853
Interest 84 (94) 1,479 18 1,255
-------------------------------------------------------------
$ 46,978 26 $ 37,147 67 $ 22,231
=============================================================
</TABLE>
Total revenues of $55,312,000 recorded in the 2000 Period represents an increase
of 28% compared to last year's $43,369,000. Moreover, in the 1999 Period, JWG
Capital (which includes the now-divested operations of Genesis as discussed
above) represented $3,158,000 of the revenues, JWG Clearing accounted for
$7,820,000, of the revenues, and the realized and unrealized gains related to
the Company's investment in Knight/Trimark Group, Inc added $4,432,000 to 1999
revenues, which without these items would have been $27,959,000. Using
$27,959,000 for 1999 Period revenues, the increase in revenues in the 2000
Period would have been $27,353,000 or 98%.
9
<PAGE>
Revenues from commissions account for the major portion of the increase in total
revenues for the 2000 Period, as commissions increased by 56% to $43,859,000
from $28,043,000, of which JWG Capital contributed $3,032,000 in the 1999
Period. Without JWG Capital in the 1999 Period, commission revenues would have
been $25,011,000, in comparison to which the increase in commissions during the
2000 Period would be 75%. The increase is attributable to the industry wide
increase in market activity in the first quarter of 2000 as a result of the
record market trading volume, record share prices in both the NASDAQ and listed
markets, as well as greatly increased market volatility.
Market making and principal transactions, net increased 14% in the 2000 Period.
Importantly, however, the 1999 Period amount included realized and unrealized
gains totaling $4,432,000 related to the Company's investment in Knight/Trimark
Group, Inc. Exclusive of this gain in the 1999 Period, the $5,407,000 increase
in market making and principal transactions, net in the 2000 Period would
constitute a percentage increase of 233% over the 1999 Period, reflecting the
industry wide increase in market activity in the first quarter of 2000 as a
result of the increased volume and volatility of the general securities market,
as discussed above.
Interest revenues decreased $2,199,000 of 61% in the 2000 Period, primarily due
to the sale of JWG Clearing (which historically generated significant interest
income), with some offset for the interest earned on the proceeds received in
that sale. Clearing fees have been eliminated in the 2000 Period due to the sale
of JWG Clearing. Other revenues increased $556,000 or 32% primarily due to
investment banking revenues in the 2000 Period exceeding those in the 1999
Period by $353,000.
Commissions and clearing costs, which represent the portion of fee income
payable by the Company to registered representatives or other broker-dealers as
a result of securities transactions (and the related costs associated with the
execution of such trades), increased by $13,768,000 or 68%in the 2000 Period,
which relates directly to the increase in combined commission and principal
transaction revenues. Selling, general and administrative costs decreased by
$2,647,000 or 31% in the 2000 Period, primarily as a result of the sale of JWG
Clearing and the divestiture of Genesis which contributed $2,653,000 and
$1,035,000, respectively, to the amount for the 1999 Period. Exclusive of these
amounts, selling, general and administrative expenses increased $1,041,000 in
the 2000 Period due to an increase in advertising expenditures to gain name
recognition, in addition to a general increase related to the Company's increase
in activity and growth.
LIQUIDITY AND CAPITAL RESOURCES
The Company maintains a highly liquid balance sheet with the majority of the
Company's assets consisting of cash and cash equivalents; securities owned,
which are marked to market; and receivables from brokers, dealers and clearing
brokers arising from customer related securities transactions. The nature of the
Company's business as a market maker and securities dealer requires it to carry
significant levels of securities inventories in order to meet its customer and
internal trading needs. Accordingly, the Company's liquidity can fluctuate
significantly depending largely upon general economic and market conditions,
volume of activity, customer demand and underwriting commitments. The Company's
ability to support increases in its total assets is a function of its ability to
generate funds internally and obtain short-term borrowings from its clearing
firms and committed lines of credit.
At March 31, 2000, the Company had stockholders' equity of $62,034,000,
representing a decrease of $21,278,000 from December 31, 1999, and the Company
had cash and cash equivalents of $30,957,000. The decrease in stockholders'
equity is primarily related to the Company's expenditure of $35,000,000 in
connection with the partial tender offer in which the Company purchased
1,750,000 shares of its common stock in February 2000. That expenditure was
offset in part by net income of $5,046,000 recorded for the three month period
ended March 31, 2000, plus the proceeds from option exercises (including tax
benefits from option exercises) and employee stock purchase plan purchases in
the amount of $8,176,000 during the period.
At March 31, 2000, the Company had $12 million of borrowing capacity available
under its committed lines of credit described in the 1999 10-K. The Company
presently owns securities that are convertible into approximately 1.5 million
shares of common stock of MVP.com, Inc., which are unregistered and for which
there is presently no public market. Approximately 158,000 of these shares are
allocated to certain members of Company management. These securities, which have
a historical cost of approximately $3 million, are included in securities owned,
at estimated fair value in the accompanying Consolidated Condensed Statements of
Financial Condition, at their estimated market value of $8,400,000.
10
<PAGE>
Item 3. Quantitative and Qualitative Disclosures about Market Risk
- --------------------------------------------------------------------
There has been no significant change in the disclosures concerning this
item made in the Company's 1999 10-K.
II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit 27 - Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K:
None.
11
<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.
JWGENESIS FINANCIAL CORP.
Date: May 3, 2000 /s/ Marshall T. Leeds
---------------------
(Duly Authorized Officer)
(President and Chief Executive Officer)
Date: May 3,, 2000 /s/ Gregg S. Glaser
-------------------
(Duly Authorized Officer)
(Principal Financial and Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001057412
<NAME> JWGENESIS FINANCIAL CORP.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 30,957,000
<SECURITIES> 20,635,000
<RECEIVABLES> 17,493,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 6,228,000
<DEPRECIATION> 3,867,000
<TOTAL-ASSETS> 104,039,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 9,000
<OTHER-SE> 62,025,000
<TOTAL-LIABILITY-AND-EQUITY> 104,039,000
<SALES> 0
<TOTAL-REVENUES> 55,312,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 46,894,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 84,000
<INCOME-PRETAX> 8,334,000
<INCOME-TAX> 3,288,000
<INCOME-CONTINUING> 5,046,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,046,000
<EPS-BASIC> 0.57
<EPS-DILUTED> 0.50
</TABLE>
