SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1995 Commission File No. 0-9377
KINNARD INVESTMENTS, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-0972952
(State of incorporation) (I.R.S. Employer identification number)
920 Second Avenue South, Minneapolis, Minnesota 55402 (612) 370-2700
(Address of principal executive offices) Telephone number
Former name, former address and former fiscal year, if changed since last report
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 at least the past 90 days. Yes X No _____
Shares of $0.02 par value common stock outstanding at August 11, 1995:
6,261,451
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
(Unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 4,070 $ 2,750
Receivable from clearing firm and other broker-dealers 4,573 1,618
Receivable from customers 5,301 3,324
Miscellaneous receivables 1,599 1,579
Trading securities, at market 8,840 9,952
Office equipment at cost, less accumulated depreciation
of $3,189 and $2,710, respectively 2,034 2,234
Investment securities, at fair value 10,834 7,193
Income tax receivable 0 1,187
Deferred tax asset 699 946
Other assets 721 834
Total assets $ 38,671 $ 31,617
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Notes payable $ 370 $ 0
Due to clearing firm and other broker-dealers 70 1,945
Payable to customers 3,451 2,152
Securities sold but not yet purchased 1,130 665
Employee compensation and related taxes payable 3,802 2,365
Income tax payable 1,034 0
Other accounts payable and accrued expenses 5,288 3,415
Total liabilities 15,145 10,542
Commitments and Contingent Liabilities
Minority Interest (2) 0
Shareholders' Equity
Preferred stock, authorized 1,000 shares; none issued or outstanding 0 0
Undesignated stock, authorized 16,500 shares; none issued or outstanding 0 0
Common stock, $.02 par value; authorized 7,500 shares; issued and
outstanding 6,261 and 5,881 shares, respectively 125 118
Additional paid-in capital 13,706 12,861
Unearned compensation (10) (26)
Retained earnings 9,707 8,122
Total shareholders' equity 23,528 21,075
Total liabilities and shareholders' equity $ 38,671 $ 31,617
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues:
Commission income $ 6,656 $ 6,110 $ 12,271 $ 12,982
Principal transactions 8,403 5,363 15,381 12,289
Investment account income 3,645 (500) 4,515 (259)
Investment banking 1,298 1,950 1,496 3,591
Interest 415 391 822 736
Other 1,002 712 1,837 1,428
Total revenues 21,419 14,026 36,322 30,767
Operating Expenses:
Compensation and benefits 10,027 8,762 17,772 18,503
Bank commissions 2,349 2,528 4,470 4,948
Floor brokerage and clearance 1,038 881 1,954 1,848
Communications 314 345 630 655
Occupancy, equipment and computer 1,437 1,458 2,871 2,840
Litigation settlement charge 1,992 0 1,992 0
Other 2,106 2,169 3,975 3,873
Total operating expenses 19,263 16,143 33,664 32,667
Income (loss) before income taxes 2,156 (2,117) 2,658 (1,900)
Income tax expense (benefit) 891 (847) 1,077 (781)
Minority interest (1) 0 (2) 0
Net income (loss) $ 1,266 ($ 1,270) $ 1,583 ($ 1,119)
Earnings (loss) per common share:
Primary $ .20 ($ .21) $ .26 ($ .19)
Fully diluted $ .20 ($ .21) $ .25 ($ .18)
Weighted average number of common and
common equivalent shares outstanding:
Primary 6,269 6,045 6,165 6,036
Fully diluted 6,277 6,055 6,281 6,052
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands, except per share data)
<TABLE>
<CAPTION>
Additional Unearned
Common Stock Issued Paid-in Compen- Retained
Shares Amount Capital sation Earnings
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1992 3,798 $ 76 $ 4,146 $ 0 $ 8,950
Issuance of shares under employee
stock purchase plan 336 7 1,374
Issuance of shares under employee
stock option plan 17 0 31
Dividends on common stock ($.15 per share) (817)
Exercise of warrants 37 1 69
Secondary public offering 1,725 35 7,023
Issuance of shares to the employee
stock ownership trust 106 2 539
Repurchase of stock (9) 0 (51)
Issuance of restricted stock 23 0 114 (107)
Net income 3,797
Balance, December 31, 1993 6,033 121 13,245 (107) 11,930
Dividends on common stock ($.10 per share) (598)
Exercise of warrants 21 0 47
Issuance of shares under employee
stock option plan 57 1 299
Repurchase of stock (230) (4) (730)
Amortization of unearned compensation 81
Net loss (3,210)
Balance, December 31, 1994 5,881 118 12,861 (26) 8,122
Dividends on common stock (adjustment) 2
Exercise of warrants 381 7 850
Amortization of unearned compensation 10
Forfeiture of restricted shares (1) (5) 6
Net income 1,583
Balance, June 30, 1995 (unaudited) 6,261 $ 125 $ 13,706 ($ 10) $ 9,707
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
1995 1994
(Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and clearing firm $ 28,969 $ 36,397
Cash paid to suppliers and employees (31,445) (35,783)
Minority interest 2 0
Interest:
Received 822 736
Paid (49) (13)
Income taxes paid 1,390 (200)
Net cash provided by (used in) operating activities (311) 1,137
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investment securities 17,746 5,168
Purchase of:
Office equipment (323) (762)
Investment securities (16,872) (6,622)
Net cash provided by (used in) investing activities 551 (2,216)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (repurchase of) common stock 857 (164)
Proceeds from (repayment of) notes payable 370 (600)
Dividends paid (147) (304)
Net cash provided by (used in) financing activities 1,080 (1,068)
Increase (decrease) in cash and cash equivalents 1,320 (2,147)
Cash and cash equivalents at beginning of period 2,750 4,283
Cash and cash equivalents at end of period $ 4,070 $ 2,136
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In thousands)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
1995 1994
(Unaudited)
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income (loss) $ 1,583 ($1,119)
Adjustments to reconcile net income (loss) to net cash
Provided by (used in) operating activities:
Depreciation and amortization 483 479
Unearned compensation 11 43
Net unrealized loss (gain) on investment securities (1,615) 365
Net realized gain on sale of investment securities (2,900) (106)
Net realized loss on sale of assets 40 0
Deferred income tax 247 (65)
(Increase) decrease in:
Receivable from clearing firm and other brokers-dealers (2,955) (144)
Receivable from customers (1,977) 2,738
Miscellaneous receivables (20) (283)
Trading securities, at market 1,112 4,100
Income tax receivable 1,187 (916)
Other assets 113 211
Increase (decrease) in:
Due to clearing firm and other broker-dealers (1,875) (650)
Payable to customers 1,299 (492)
Securities sold but not yet purchased 465 (96)
Employee compensation and related taxes payable 1,437 (2,989)
Income taxes payable 1,034 0
Other accounts payable and accrued expenses 2,020 61
Net cash provided by (used in) operating activities ($ 311) $ 1,137
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies
The accompanying consolidated financial statements of Kinnard
Investments, Inc., (the "Company") have been prepared in
conformity with generally accepted accounting principles and
should be read in conjunction with the Company's annual report for
the year ended December 31, 1994. The results of operations for
the six months ended June 30, 1995 are not necessarily indicative
of the results to be expected for the year ended December 31,
1995.
The consolidated statement of financial condition as of June 30,
1995 and other financial information for the six months ended June
30, 1995 and 1994, are unaudited, but management of the Company
believes that all adjustments (consisting only of normal recurring
adjustments) necessary for a fair statement of the results of
operations for the periods have been included.
For comparability, certain 1994 amounts have been reclassified to
conform with the presentation for 1995. The reclassifications had
no effect on net income or shareholders' equity as previously
reported.
Note 2. Net Capital Requirements
The Company's two broker-dealer subsidiaries, John G. Kinnard and
Company, Inc. (JGK), and PRIMEVEST Financial Services, Inc. (PFS),
are subject to the Securities and Exchange Commission's uniform
net capital rule, which requires maintaining minimum net capital
as defined under such provisions and may prohibit the Company from
expanding its business or paying cash dividends if certain
criteria are not met.
JGK computes its net capital using the standard net capital
method, which requires that the ratio of aggregate indebtedness to
net capital not exceed 15 to 1. At June 30, 1995, JGK had net
capital of $4.0 million, a net capital requirement of $694,000 and
a ratio of aggregate indebtedness to net capital of 2.23 to 1.
In April 1995, PFS made a change from the standard net capital
method to the alternative method of computing net capital, which
requires that the percentage of net capital to aggregate debit
items, both as defined, be greater than 2%. At June 30, 1995, PFS
had net capital of $1.8 million, a net capital requirement of
$250,000 and a ratio of aggregate debit items of 31%.
Note 3. Shareholders' Equity
In February 1995, the Company announced that it had discontinued
its regular quarterly dividend until further notice. The payment
of future dividends, if any, rests within the discretion of its
Board of Directors and will depend upon the Company's earnings,
regulatory capital requirements, financial condition, and other
relevant factors.
During the first six months of 1995, the Company granted options
to purchase 57,500 shares of the Company's common stock at prices
ranging from $3.55 to $3.58 per share.
At December 31, 1994 there were outstanding warrants to purchase
419,973 shares of the Company's common stock at an exercise price
of $2.25 per share with an expiration date of February 1995. In
January and February 1995, warrants were exercised for the
purchase of 381,056 shares of common stock generating proceeds of
$857,000. The warrants that were not exercised expired.
The Board of Directors has authorized the repurchase of up to
600,000 shares of the Company's common stock, of which a total of
242,769 shares had been repurchased as of December 31, 1994. There
have been no shares repurchased in the first six months of 1995.
<PAGE>
Note 4. Commitments and Contingent Liabilities
JGK was one of many brokerage firms across the country through
whom investors purchased limited partnership interests and
mortgage loan units from a number of limited partnerships
sponsored by Citi-Equity Group, Inc. ("Citi-Equity") for the
purpose of building and maintaining affordable housing projects.
Although many of the projects are built, leased and functioning,
others have not been built, and many others suffer from a variety
of problems. A number of purported class action lawsuits were
commenced against JGK alleging some or all of the following
claims: violation of state and federal securities laws, negligent
and fraudulent misrepresentation and consumer fraud. Each seeks an
unspecified amount of damages. In June 1995, JGK reached a
settlement, subject to certain conditions and judicial approval,
resolving all claims against it in the putative class action
lawsuits pending in state and federal courts relating to
Citi-Equity litigation. As part of the settlement, JGK agreed to
pay $1 million in cash, to transfer its interest in the principal
amount of approximately $1.4 million Class C Mortgage Pass-Through
Certificates in the MCA Multi-Family Affordable Housing REMIC
("MCA Bond"), and to pay 20% of the profits, if any, to a maximum
amount of $1 million, which may be realized from the sale of
shares of stock that may be obtained through the exercise of
certain warrants currently held by JGK. These warrants are
exercisable during various periods through April 2000. A one-time
pre-tax charge of approximately $2 million was recorded in the
current period related to the Citi-Equity settlement. The charge
in the current period is less than the $3.4 million maximum amount
of the settlement because JGK was carrying the MCA Bond at a value
below the principal amount, and the portion of the settlement
related to warrant appreciation will only be accrued for when the
value of warrants increase, or when the warrants or shares
obtained on the exercise of warrants are sold.
In October 1994, a purported class action lawsuit was commenced in
U.S. District Court for the District of Minnesota, against Palace
Casinos, Inc. ("Palace Casinos") and a number of other defendants,
including JGK, alleging violation of state and federal securities
laws and breach of fiduciary duty. The lawsuit seeks an
unspecified amount of damages. The plaintiff seeks to represent a
class of persons who purchased Palace Casinos preferred stock in a
private placement, in which JGK acted as a selling agent. In
November 1994, a substantially similar action was initiated by
four named individuals in the same court, and other actions have
been threatened. JGK believes it has substantial defenses against
these claims, and intends to defend itself vigorously. The
ultimate effect of this matter on the future operating results and
financial condition of the Company is unknown at this time.
Accordingly, no provision for liability, if any, that may result
has been recorded in the consolidated financial statements.
JGK is a defendant in various other actions relating to its
business, some of which involve claims for unspecified amounts.
Although the ultimate outcome of these other matters cannot be
predicted with certainty, the Company's management believes that
while the outcome of these matters may have a material effect on
the earnings in a particular period, the outcome will not have a
material adverse effect on the financial condition of the Company.
In the normal course of business, the Company enters into
underwriting and other commitments. The ultimate settlement of
such transactions is not expected to have a material effect on the
financial statements.
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This discussion should be read in conjunction with Management's Discussion and
Analysis contained in the Company's Annual Report - Form 10-K for the year ended
December 31, 1994.
Results of Operations
The following table sets forth a summary of changes in the major
categories of revenues and expenses:
(In thousands)
<TABLE>
<CAPTION>
Unaudited Three months ended Six months ended
June 30, 1995 vs. 1994 June 30, 1995 vs. 1994
Increase (decrease) Increase (decrease)
<S> <C> <C> <C> <C>
Revenues:
Commission income $ 546 9% ($ 711) (5%)
Principal transactions 3,040 57 3,092 25
Investment account income 4,145 829 4,774 1,843
Investment banking (652) (33) (2,095) (58)
Interest 24 6 86 12
Other 290 41 409 29
Total revenues 7,393 53 5,555 18
Operating Expenses:
Compensation and benefits 1,265 14 (731) (4)
Bank commissions (179) (7) (478) (10)
Floor brokerage and clearance 157 18 106 6
Communications (31) (9) (25) (4)
Occupancy, equipment and computer (21) (1) 31 1
Litigation settlement charge 1,992 100 1,992 100
Other (63) (3) 102 3
Total operating expenses 3,120 19 997 3
Income before income taxes 4,273 202 4,558 240
Income taxes 1,738 205 1,858 238
Minority interest (1) 100 (2) 100
Net income $ 2,536 200% $ 2,702 241%
</TABLE>
Three months ended June 30, 1995 and 1994
The Company had record revenues in the current period as a result of favorable
market conditions and a substantial increase in the valuation of the investment
account. Revenues of $21.4 million in the second quarter of 1995 compare to
$14.0 million in the prior year, a 53% increase. The higher revenues combined
with benefits from the Company's cost reduction efforts contributed to primary
earnings per share improving to $.20 from a loss ($.21) last year. The current
quarter results included a one-time, pretax charge of approximately $2.0 million
resulting from a settlement of all claims against JGK in class action lawsuits
relating to the Citi-Equity litigation (see Note 4).
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Three months ended June 30, 1995 and 1994 (continued)
Commission income increased by 9% during the quarter compared to last year due
to strong sales of listed and over-the-counter securities as equity markets
reached record levels during the quarter. These increases were offset by modest
decreases in the sale of mutual fund and insurance products.
Revenue from principal transactions increased to $8.4 million from $5.4 million
for the same period last year. Income from equity transactions increased by 70%
as the Company's core market of emerging growth stocks was particularly strong.
Income from debt transactions increased by 31% due to declining interest rates
and comparison to weak results in the prior year.
The $3.6 million of investment account income in the current period was largely
due to a gain on the sale of one security in the portfolio. This compares to a
loss of $.5 million in the prior year. The investment account has historically
produced volatile results for the Company.
Investment banking revenues were down by $652,000 as the Company completed two
underwritings during the quarter, compared to three underwritings during the
same quarter last year. The prior year also included results of a lease
financing subsidiary that ceased new business activity in early 1995.
Employee compensation rose by 14% as revenue based compensation increased in
line with revenues. However, fixed salaries were down as a result of cost
reduction programs that were implemented during the past year. The total number
of employees at June 30, 1995 is down 13% from a year ago.
Bank commission expense declined by 7% and floor brokerage and clearance expense
increased by 18%, both of which were in line with changes in related revenues.
Communication and occupancy costs were down from last year due to moving the
corporate headquarters last year and the closing of certain branch offices. The
litigation settlement charge is an expense associated with the proposed
settlement of Citi-Equity litigation, which is subject to certain conditions and
judicial approval.
Six months ended June 30, 1995 and 1994
Revenues for the first six months increased 18% from the prior year. The
investment account provided the largest revenue improvement, with income of $4.5
million in the first half of 1995 versus a loss of $259,000 in the prior year.
Revenue from principal transactions increased 25% from the prior year due to
strong equity markets in 1995 and comparison to weak fixed income results in
1994. Revenues declined from the sale of mutual funds, insurance, commodities
and direct participation programs, the latter two resulting from decisions to
discontinue selling these products.
The increase in total expenses of 3% was considerably less than the increase in
revenues due in part to the implementation of expense reduction programs that
were started in mid 1994. Compensation, bank commissions and communication
expenses declined, while floor brokerage and clearance, occupancy and other
expenses increased modestly. Excluding the $2.0 million charge related to the
Company's settlement of Citi-Equity litigation described in Note 4, total
expenses would have declined 3% from the prior year.
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
Operating Activities
A large portion of the Company's assets are cash and assets readily convertible
to cash. The liquid portion of the Company's trading and investment securities
are stated at quoted market value and are readily marketable. The less liquid
trading and investment securities are stated at fair value as determined by
management's best estimate.
During the six months ended June 30, 1995, the value of trading securities
decreased $1.1 million and securities sold but not yet purchased increased by
$465,000. Trading securities were reduced even though trading volume increased
due in part to more extensive risk management practices.
As securities broker-dealers, JGK and PFS are required by SEC regulations to
meet certain liquidity and capital standards. JGK and PFS have been in
compliance with these regulations at all times.
Based on the Company's current liquidity positions, available bank lines and
operating plans, it is anticipated that the Company has sufficient resources to
meet the cash requirements of its operations in the foreseeable future.
Investing Activities
The majority of investing activity during the current period resulted from the
sale and purchase of securities held in the investment account. A large portion
of the investment account is comprised of liquid investment-grade fixed income
securities, which matured or were sold and the proceeds re-invested.
Financing Activities
The Company's subsidiaries maintain various credit facilities in order to meet
short-term operating needs. At June 30, 1995 and December 31, 1994 there were
outstanding balances of $370,000 and $0, respectively, under these facilities.
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
See Note 4 in Notes to Consolidated Financial Statements.
ITEM 2 - CHANGES IN SECURITIES
None
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
a) The Annual Meeting of the Registrant's shareholders was held on
Thursday, May 18, 1995.
b) Proxies for the Annual Meeting were solicited pursuant to
Regulation 14A under the Securities Exchange Act of 1934. The
following persons were elected directors of the Registrant to serve
until the next annual meeting of shareholders and until their
successors shall have been duly elected and qualified:
Number of Votes
Number of Votes For Withheld
Thomas J. Mulvaney 5,137,627 107,124
Stephen H. Fischer 5,164,031 80,720
James W. Hansen 5,141,015 103,736
Leonard W. Kedrowski 5,185,781 58,970
Thomas E. Moore 5,161,069 83,682
Hilding C. Nelson 5,136,187 108,564
Andrew J. O'Connell 5,188,769 55,982
Robert S. Spong 5,101,887 142,864
c) At the Annual Meeting the following matters were voted upon:
Proposal 1. Set the number of directors at eight.
Number of Number of Number of Number of Broker
Votes For Votes Against Abstentions Nonvotes
5,158,898 60,108 25,745 0
Proposal 2. Increase by 200,000 the number of shares reserved for
issuance under the Registrant's 1990 Stock Option Plan.
Number of Number of Number of Number of Broker
Votes For Votes Against Abstentions Nonvotes
4,962,022 249,086 33,643 0
ITEM 5 - OTHER INFORMATION
None
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 - Financial Data Schedule
(filed in electronic format only)
(b) Reports on Form 8-K
None
<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.
KINNARD INVESTMENTS, INC.
/s/ Stephen H. Fischer
Stephen H. Fischer
Treasurer (principal financial officer)
Date 8/11/95
<PAGE>
KINNARD INVESTMENTS, INC.
--------------------
EXHIBIT INDEX
to
Form 10-Q
for Quarter Ended June 30, 1995
--------------------
Exhibit
Number Description
27 Financial Data Schedule (filed in electronic format only)
<TABLE> <S> <C>
<ARTICLE> BD
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1
<CASH> 4,070
<RECEIVABLES> 11,473
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 10,874
<PP&E> 2,034
<TOTAL-ASSETS> 38,671
<SHORT-TERM> 370
<PAYABLES> 3,521
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 1,130
<LONG-TERM> 0
<COMMON> 125
0
0
<OTHER-SE> 23,403
<TOTAL-LIABILITY-AND-EQUITY> 38,671
<TRADING-REVENUE> 15,381
<INTEREST-DIVIDENDS> 822
<COMMISSIONS> 12,271
<INVESTMENT-BANKING-REVENUES> 1,496
<FEE-REVENUE> 1,837
<INTEREST-EXPENSE> 0
<COMPENSATION> 17,772
<INCOME-PRETAX> 2,658
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,583
<EPS-PRIMARY> .26
<EPS-DILUTED> .25
</TABLE>
