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 March 31, 1999 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
Not applicable
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 May 11, 1999: 5,040,415
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONTENTS
PART I Page
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statements of financial condition.................3
Consolidated statements of operations..........................4
Consolidated statements of shareholders' equity................5
Consolidated statements of cash flows..........................6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.........................8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS............................9
QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK .......13
PART II
OTHER INFORMATION.................................................14
2
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------- -------------------- --------------------
March 31, December 31,
1999 1998
- ---------------------------------------------------------------------------------- -------------------- --------------------
(unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents $839 $2,689
Receivable from clearing firm 1,524 1,009
Miscellaneous receivables 3,363 3,527
Trading securities, at market 8,923 8,221
Office equipment at cost, less accumulated depreciation
of $2,824 and $2,540, respectively 1,674 1,888
Investment securities, at fair value 14,973 16,918
Income tax receivable 1,165 1,456
Deferred income taxes 260 242
Other assets 304 414
- ---------------------------------------------------------------------------------- -------------------- --------------------
Total assets $33,025 $36,364
================================================================================== ==================== ====================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Securities sold but not yet purchased, at market $368 $257
Accrued compensation 2,001 3,770
Other accounts payable and accrued expenses 2,492 2,831
- ---------------------------------------------------------------------------------- -------------------- --------------------
Total liabilities 4,861 6,858
- ---------------------------------------------------------------------------------- -------------------- --------------------
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 5,136 and 5,483 shares, respectively 103 110
Additional paid-in capital 7,577 9,265
Retained earnings 20,484 20,131
- ---------------------------------------------------------------------------------- -------------------- --------------------
Total shareholders' equity 28,164 29,506
- ---------------------------------------------------------------------------------- -------------------- --------------------
Total liabilities and shareholders' equity $33,025 $36,364
================================================================================== ==================== ====================
See Notes to Consolidated Financial Statements
</TABLE>
3
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------- --------------------------------------------
Three Months Ended
March 31,
- -------------------------------------------------------------------------------- --------------------------------------------
1999 1998
- -------------------------------------------------------------------------------- --------------------- ----------------------
(Unaudited) (Unaudited)
<S> <C> <C>
Operating revenues:
Commissions $4,177 $3,643
Principal transactions 5,049 5,207
Investment banking 562 1,981
Interest 393 375
Other 965 729
- -------------------------------------------------------------------------------- --------------------- ----------------------
Total operating revenues 11,146 11,935
- -------------------------------------------------------------------------------- --------------------- ----------------------
Operating expenses:
Compensation and benefits 7,630 8,715
Floor brokerage and clearance 965 974
Communications 198 181
Occupancy and equipment 1,437 1,417
Other 1,001 1,169
- -------------------------------------------------------------------------------- --------------------- ----------------------
Total operating expenses 11,231 12,456
- -------------------------------------------------------------------------------- --------------------- ----------------------
Operating loss (85) (521)
Net gains on investment account 672 967
- -------------------------------------------------------------------------------- --------------------- ----------------------
Pretax income 587 446
- -------------------------------------------------------------------------------- --------------------- ----------------------
Income tax expense 234 183
- -------------------------------------------------------------------------------- --------------------- ----------------------
Net income $353 $263
================================================================================ ===================== ======================
Earnings per common share:
Basic $0.07 $0.04
Diluted $0.07 $0.04
================================================================================ ===================== ======================
See Notes to Consolidated Financial Statements
</TABLE>
4
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands)
<TABLE>
<CAPTION>
- ------------------------------------------------- -------------- -------------- -------------- -------------- --------------
Common Stock Total
------------ Paid-in Retained Shareholders'
Shares Amount Capital Earnings Equity
- ------------------------------------------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1996 6,027 $120 $12,710 $23,199 $36,029
- ------------------------------------------------- -------------- -------------- -------------- -------------- --------------
Issuance of shares under the employee
stock option plan 68 1 230 231
Issuance of new shares 325 7 1,700 1,707
Repurchase of shares (465) (9) (2,694) (2,703)
Net income 308 308
- ------------------------------------------------- -------------- -------------- -------------- -------------- --------------
Balance, December 31, 1997 5,955 119 11,946 23,507 35,572
- ------------------------------------------------- -------------- -------------- -------------- -------------- --------------
Issuance of shares under the employee
stock purchase plan 13 0 78 78
Issuance of shares under the employee
stock option plan 81 2 379 381
Repurchase of shares (566) (11) (3,138) (3,149)
Net loss (3,376) (3,376)
- ------------------------------------------------- -------------- -------------- -------------- -------------- --------------
Balance, December 31, 1998 5,483 110 9,265 20,131 29,506
- ------------------------------------------------- -------------- -------------- -------------- -------------- --------------
Issuance of shares under the employee
stock option plan 5 0 21 21
Repurchase of shares (352) (7) (1,709) (1,716)
Net income 353 353
- ------------------------------------------------- -------------- -------------- -------------- -------------- --------------
Balance, March 31, 1999 (unaudited) 5,136 $103 $7,577 $20,484 $28,164
================================================= ============== ============== ============== ============== ==============
See Notes to Consolidated Financial Statements
</TABLE>
5
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------- -------------------------------------------
Three Months Ended
March 31,
- -------------------------------------------------------------------------------- -------------------------------------------
1999 1998
- -------------------------------------------------------------------------------- --------------------- ---------------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and clearing firm $9,646 $12,226
Cash paid to suppliers and employees (12,779) (14,428)
Interest received 393 375
Income taxes paid 38 (1)
- -------------------------------------------------------------------------------- --------------------- ---------------------
Net cash used in operating activities (2,702) (1,828)
- -------------------------------------------------------------------------------- --------------------- ---------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investment securities 7,827 7,688
Purchases of:
Office equipment (71) (315)
Investment securities (5,209) (8,000)
Funds released from escrow 0 1,593
- -------------------------------------------------------------------------------- --------------------- ---------------------
Net cash provided by investing activities 2,547 966
- -------------------------------------------------------------------------------- --------------------- ---------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock 21 146
Repurchase of common stock (1,716) (121)
- -------------------------------------------------------------------------------- --------------------- ---------------------
Net cash provided by (used in) financing activities (1,695) 25
- -------------------------------------------------------------------------------- --------------------- ---------------------
Decrease in cash and cash equivalents (1,850) (837)
Cash and cash equivalents at beginning of period 2,689 3,886
- -------------------------------------------------------------------------------- --------------------- ---------------------
Cash and cash equivalents at end of period $839 $3,049
================================================================================ ===================== =====================
See Notes to Consolidated Financial Statements
</TABLE>
6
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In thousands)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------- -------------------------------------------
Three Months Ended
March 31,
- -------------------------------------------------------------------------------- -------------------------------------------
1999 1998
- -------------------------------------------------------------------------------- --------------------- ---------------------
(Unaudited) (Unaudited)
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET CASH
USED IN OPERATING ACTIVITIES:
Net income $353 $263
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization 284 177
Net unrealized loss (gain) on investment securities 115 (776)
Net realized gain on sale of investment securities (787) (191)
Deferred income taxes (18) 183
(Increase) decrease in:
Receivable from clearing firm (515) (3,278)
Miscellaneous receivables 164 (391)
Trading securities, at market (702) 3,553
Income tax receivable 291 0
Other assets 110 59
Increase (decrease) in:
Payable to clearing firm 0 (1,069)
Securities sold but not yet purchased, at market 111 390
Accrued compensation (1,769) (1,184)
Other accounts payable and accrued expenses (339) 436
- -------------------------------------------------------------------------------- --------------------- ---------------------
Net cash used in operating activities ($2,702) ($1,828)
================================================================================ ===================== =====================
See Notes to Consolidated Financial Statements
</TABLE>
7
<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 on
Form 10-K for the year ended December 31, 1998. The results of
operations for the three months ended March 31, 1999 are not
necessarily indicative of the results to be expected for the year
ending December 31, 1999.
The consolidated statement of financial condition as of March 31,
1999 and other financial information for the three months ended
March 31, 1999 and 1998, 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.
Note 2. Commitments and Contingent Liabilities
John G. Kinnard is a defendant in various actions relating to its
business, some of which involve claims for unspecified amounts.
Although the resolution of these matters cannot be predicted with
certainty, management believes that while their outcome 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.
Note 3. Segments
The Company's reportable segments are: retail sales, equity
capital markets, fixed income and other. The retail segment
consists of various retail branch locations and the financial
services division. Equity capital markets consists of equity
trading, institutional sales, research and investment banking.
Fixed income includes the origination, trading, and institutional
sales of fixed income securities. Other consists of general
corporate and administrative support functions. The Company does
not provide balance sheet data for segment reporting as this data
is not measured.
Information concerning operations in these segments of business is
as follows:
(In thousands)
--------------------------------------------------------------
Quarter ended March 31, 1999 1998
--------------------------------------------------------------
Operating revenue:
Retail sales $6,896 $6,544
Equity capital markets 2,433 3,516
Fixed income 1,412 1,435
Other 405 440
--------------------------------------------------------------
$11,146 $11,935
==============================================================
Operating loss:
Retail sales $1,180 $181
Equity capital markets (423) 233
Fixed income 236 184
Other (1,078) (1,119)
--------------------------------------------------------------
($85) ($521)
==============================================================
8
<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 on Form 10-K for the year
ended December 31, 1998.
Results of Operations
The following table sets forth a summary of first quarter
increases (decreases) in segment revenue and expenses for 1999
versus 1998:
<TABLE>
<CAPTION>
(In thousands)
- -------------------------------------------------------------------------------------------------------------------
March 31, Change from
1999 prior year Percent
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operating revenues:
Retail $6,896 $352 5.4%
Equity capital markets 2,433 (1,083) (30.8)
Fixed income 1,412 (23) (1.6)
Corporate 405 (35) (8.0)
- --------------------------------------------------------------------------------------------------------------------
Total operating revenues 11,146 (789) (6.6)
- --------------------------------------------------------------------------------------------------------------------
Operating income:
Retail 1,180 999 551.9
Equity capital markets (423) (656) (281.5)
Fixed income 236 52 28.3
Corporate (1,078) 41 3.7
- --------------------------------------------------------------------------------------------------------------------
Total operating loss (85) 436 83.7%
- --------------------------------------------------------------------------------------------------------------------
Net gains on investment account 672 (295) (30.5)%
- --------------------------------------------------------------------------------------------------------------------
Pretax income 587 141 31.6%
- --------------------------------------------------------------------------------------------------------------------
Income tax expense 234 51 27.9
- --------------------------------------------------------------------------------------------------------------------
Net income $353 $90 34.2%
====================================================================================================================
</TABLE>
Three months ended March 31, 1999 and 1998
Retail Sales. The Retail Sales business segment consists of various branch
locations and the financial services division. Revenue is generated primarily on
commissions generated by the sale of financial products and services to
individual investors.
The improvement in retail revenues was due to increased transaction levels and
improved investment executive productivity. Individual investors were more
active in the current period as most major indices achieved record highs,
including the Dow Jones Industrial Average exceeding 10,000. Products that
recorded significant revenue increases included OTC agency, options, unit
trusts, cash management and interest income.
9
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Three months ended March 31, 1999 and 1998 (continued)
The operating profit of Retail Sales in the current period was $1.2 million, an
increase of $1.0 million from the prior year quarter. The improvement was due to
an increase in revenues, the closing of unprofitable offices, implementation of
operating efficiencies, and a reduction in clearing charges. As a result of
converting its clearing business to NationsBank Montgomery Securities in June
1998, the Company is benefiting from lower transaction fees to process most
trades.
Equity Capital Markets. Equity Capital Markets consists of equity trading,
institutional sales, research and investment banking. Investment banking
includes the fees earned on public equity underwritings, private placements and
merger and acquisition transactions.
The decline in Equity Capital Markets revenue was the result of completing no
financings in the current period, compared to two public offerings and a
significant merger and acquisition transaction in the prior year. The timing of
investment banking activity can vary significantly from period to period based
on market conditions and other factors.
The decline in investment banking revenues negatively impacted operating results
of the Equity Capital Markets group. The operating loss of $423,000 in the first
quarter of 1999 compares to an operating profit of $233,000 in the same period a
year ago.
Fixed Income. Fixed Income includes the origination, trading and institutional
sale of fixed income securities. The Fixed Income group results are driven
largely by activity of the originations department which raises capital for
municipal and corporate clients located primarily in the Upper Midwest.
Fixed Income revenues declined by $23,000 or 1.6% from the prior year quarter.
Origination activity was down slightly from the prior year following a record
level of financings completed in the fourth quarter of 1998. Other revenue
changes included increases in cash management and municipal bond sales, and
declines in the sale of private and government bonds.
Corporate. Corporate consists of various administrative functions required to
support the revenue generating business units, such as Accounting, Human
Resources and Marketing.
The operating loss in the Corporate area narrowed by $41,000 or 3.7%. Over the
past year the Company has implemented efficiencies that have enabled a reduction
of corporate expenses.
The net gain on the investment account of $672,000 in the current period
compares to a net gain of $967,000 in the prior year. The Company's investment
account has historically been a volatile source of income, and may change
significantly from period to period.
Net income rose by $90,000 or 34.4% from the prior year. Diluted earnings per
share rose to seven cents from four cents.
Liquidity and Capital Resources
Operating Activities
A large portion of the Company's assets are cash and assets readily convertible
to cash. The liquid portions of the Company's trading and investment securities
are stated at quoted market values and are readily marketable. The less liquid
portions of trading and investment securities, which totaled $132,000 at March
31, 1999, are stated at fair value, which is determined by management's best
estimate.
10
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Operating Activities (continued)
Between December 31, 1998 and March 31, 1999 trading securities increased
$702,000 and securities sold but not yet purchased increased by $111,000. Both
long and short inventories are generally maintained to facilitate customer
transactions rather than for market speculation.
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 Company's investment account is invested in fixed income securities,
publicly traded equity securities and privately placed equity securities. Equity
securities are frequently held as a result of past investment banking activities
performed by the Company. In addition, the Company may utilize outside advisors
to manage a portion of the investment portfolio.
The value of certain securities held in the investment account can fluctuate
significantly, with the resulting valuation changes being reported as net gains
or losses on the investment account. These fluctuations in value can have a
material impact on reported earnings.
Financing Activities
John G. Kinnard maintains a credit facility in order to meet short-term
operating needs. At December 31, 1998 and March 31, 1999 there were no
outstanding balances under this facility.
During the first three months of 1999, the Company repurchased 352,000 shares of
its common stock at a total cost of $1.7 million. For the full year of 1998, a
total of 566,000 shares were repurchased at a cost of $3.1 million. The Board of
Directors has authorized the repurchase of up to 1.6 million shares of the
Company's common stock, of which a total of 628,991 shares have been repurchased
as of March 31, 1999.
Year 2000 Issue
Year 2000 readiness presents corporate-wide challenges for all companies. The
Company recognizes the importance of the Year 2000 issue and its impact on
information technology and non-information technology systems. As a result, the
Company is actively managing efforts to plan, allocate resources, and monitor
progress to achieve Year 2000 readiness.
The executive sponsor for the Company's Year 2000 project is JGK's Chief
Executive Officer and Chairman of the Board. The managing executive is JGK's
Senior Vice President of Corporate Development. Reporting to the managing
executive is the Year 2000 Committee, which is led by the Director of the
MIS/Communications department and includes managers from most major functional
areas of the Company. This group is responsible for managing critical success
factors, implementation of action plans, and reporting on progress to executive
management.
The Company believes that it has adequate staffing and human resources to
complete its Year 2000 Plan. Although retention has not been an issue, the
Company does rely on certain key individuals who may be difficult to replace in
timely fashion if they were to leave.
The Company has defined mission critical systems as those systems whose loss
would cause an immediate stoppage or significant impairment to core business
areas. Systems identified as mission critical include back office data, quote
delivery, trading, communication and accounting systems. In addition, the
Company clears its trades through a third-party clearing firm upon whose systems
it is reliant.
11
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Year 2000 Issue (continued)
The majority of internal systems with a Year 2000 problem were addressed in
calendar year 1998. The Company's capital budget does not specifically identify
expenditures related to the Year 2000, although many items in the capital budget
relate to upgrading or replacing applications that are not Year 2000 compliant.
During 1998, the Company spent $1.5 million for capital equipment (which
includes software purchases), versus $1.1 million in 1997. The cost to remediate
the small number of systems that are not currently Year 2000 compliant has not
been determined, although the Company does not expect such costs to have a
material effect on the Company's consolidated financial statements, and expects
to fund such costs from working capital.
As a member of the Securities Industry Association, Kinnard is updated on the
progress of industry-wide testing, and was a direct participant in the industry
tests conducted in early 1999. Kinnard has been conducting point-to-point
testing of both its mission critical and non-mission critical systems, and
expects to complete this process by September 30, 1999. No material system
deficiencies have resulted from tests conducted as of the reporting date.
Because the Company operates as a fully-disclosed broker-dealer, a large portion
of its information systems are provided by third parties. If these outside
information providers, which includes securities exchanges, clearing agencies
and other financial institutions, should experience a significant disruption as
a result of the Year 2000 problem, such disruption could affect the Company's
ability to conduct business and may have a material adverse effect on the
Company's results of operations.
The Company has developed a written contingency plan to provide for continuity
under various scenarios. The contingency plan will be updated and modified
during 1999 as the Company makes additional progress in addressing the Year 2000
issue.
Cautionary Statements
The Company wishes to caution investors of the following factors which could
affect the Company's results of operations and cause such results to differ
materially from those anticipated in forward-looking statements made in this
document elsewhere by or on behalf of the Company: volatility in the securities
markets, risks in the ownership and underwriting of securities, consolidation in
the financial services industries, volatility in earnings and losses of
investment securities, competition, government regulation, customer litigation
and arbitration, and off-balance-sheet credit and market risks. For a more
complete discussion of these and other factors, see the Company's Annual Report
on Form 10-K for the year ended December 31, 1998.
12
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk
The primary market risk exposure of the Company is the impact that market and
interest rate volatility may have on the value of financial securities and
underwriting commitments. The Company manages this risk exposure through a
process of internal controls, due diligence and management review. Position
limits for trading and inventory controls are established and monitored on an
ongoing basis. The trading inventory is turned over frequently throughout the
year. Securities held in the investment portfolio are guided by an investment
policy and are reviewed on a regular basis. Current and proposed underwriting
and other banking commitments are subject to due diligence reviews by the
appropriate business unit as well as by senior management.
The Company has evaluated its financial securities and underwriting commitments
at March 31, 1999 and assessed the related market risk. This inventory is turned
over frequently throughout the year. Based on this evaluation, in the opinion of
management, the market risk associated with the Company's financial securities
may have a material effect on the earnings in a particular period, but will not
have a material adverse effect on the financial condition of the Company.
13
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
See Note 2 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
None
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
14
<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/ Daniel R. Sass
-----------------------------------
Daniel R. Sass
Treasurer (principal financial and
accounting officer)
Date May 11, 1999
15
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
KINNARD INVESTMENTS, INC.
(Commission File Number: 0-9377)
EXHIBIT INDEX
for
Form 10-Q for the quarter ended March 31, 1999
27 Financial Data Schedule (filed in electronic form only):
16
<TABLE> <S> <C>
<ARTICLE> BD
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-01-1999
<EXCHANGE-RATE> 1
<CASH> 839
<RECEIVABLES> 4,887
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 23,896
<PP&E> 1,674
<TOTAL-ASSETS> 33,025
<SHORT-TERM> 0
<PAYABLES> 4,493
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 368
<LONG-TERM> 0
0
0
<COMMON> 103
<OTHER-SE> 28,061
<TOTAL-LIABILITY-AND-EQUITY> 33,025
<TRADING-REVENUE> 5,049
<INTEREST-DIVIDENDS> 393
<COMMISSIONS> 4,177
<INVESTMENT-BANKING-REVENUES> 562
<FEE-REVENUE> 965
<INTEREST-EXPENSE> 0
<COMPENSATION> 7,630
<INCOME-PRETAX> 587
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 353
<EPS-PRIMARY> 0.07
<EPS-DILUTED> 0.07
</TABLE>
