<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark one)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the period ended JUNE 28, 1996.
[ ] Transaction report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the transition period from __________ to
__________.
Commission file number: 1-7467
FIRST OF MICHIGAN CAPITAL CORPORATION
_______________________________________________________________________________
(Exact name of registrant as specified in its charter)
DELAWARE 13-2780197
_________________________________ _______________________________________
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
100 RENAISSANCE CENTER/26TH FLOOR
DETROIT, MICHIGAN 48243
___________________________________ ___________________________________
(Address of principal executive offices) (Zip Code)
(313) 259-2600
______________________________________________________________________________
(Registrant's telephone number, including area code)
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 the past 90 days. YES [ X ] NO [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. YES [ ] NO [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Common Stock, $.10 Par Value - 2,633,533 shares as of August 6, 1996
10-Q
<PAGE> 2
INDEX
FIRST OF MICHIGAN CAPITAL CORPORATION
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets - June 28, 1996 and September
29, 1995
Condensed consolidated statements of income - Three months ended June
28, 1996 and June 30, 1995 and nine months ended June 28, 1996 and
June 30, 1995
Consolidated statements of cash flows - Nine months ended June 28, 1996
and June 30, 1995
Notes to condensed consolidated financial statements - June 28, 1996
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
PART II. OTHER INFORMATION
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE> 3
FIRST OF MICHIGAN CAPITAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
JUNE 28 SEPTEMBER 29
1996 1995
-------------- ------------
<S> <C> <C>
ASSETS
Cash and cash equivalents ........................ $ 1,907,175 $ 2,995,513
Receivable from brokers and dealers .............. 4,024,733 4,527,882
Receivable from customers ........................ 77,636,606 79,368,761
Notes receivable from employees .................. 1,761,816 2,126,096
Other accounts receivable ........................ 962,201 1,879,608
Refundable income taxes 1,954,000 ---
Securities owned ................................. 5,227,912 8,387,294
Memberships in exchanges, at cost (market value-
$1,225,000 at June 28, 1996 and
$856,000 at September 29, 1995) ................. 420,453 430,503
Equipment and leasehold improvements, at
depreciated cost ................................ 3,034,047 2,828,932
Other investments ................................ 263,759 711,609
Net cash surrender value of life insurance ....... --- 1,816,471
Deferred income taxes ............................ 938,000 2,892,000
Other assets ..................................... 2,661,127 2,492,805
-------------- --------------
$ 100,791,829 $ 110,457,474
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Notes payable to banks .......................... $ 30,000,000 $ 29,500,000
Payable to brokers and dealers .................. 16,854,758 18,165,571
Payable to customers ............................ 10,812,865 14,070,912
Securities sold, not yet purchased .............. 642,514 530,748
Employee compensation payable ................... 6,884,845 12,964,140
Income taxes payable ............................ 620,187 452,587
Other accounts payable and accrued liabilities .. 4,632,294 3,762,123
Capital lease obligation ........................ 1,013,283 1,226,623
-------------- --------------
71,460,746 80,672,704
Contingencies - See note
Stockholders' equity:
Common stock, $.10 par value 10,000,000
shares authorized, 2,891,558 issued ............ 289,156 289,156
Capital in excess of par value ................... 3,676,635 3,687,348
-------------- --------------
Retained earnings ................................ 27,841,454 26,803,153
-------------- --------------
31,807,245 30,779,657
Less treasury stock, at cost ( 258,025 shares
at June 28, 1996 and 80,116 at
September 29, 1995 ) ............................ (2,476,162) (994,887)
-------------- --------------
29,331,083 29,784,770
-------------- --------------
$ 100,791,829 $ 110,457,474
============== ==============
</TABLE>
Note: The balance sheet at September 29, 1995 has been derived from the
audited financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. See notes to condensed consolidated
financial statements.
I-1
<PAGE> 4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 28 JUNE 30 JUNE 28 JUNE 30
1996 1995 1996 1995
-------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
REVENUES:
Commissions......................................... $ 11,549,592 $ 9,038,531 $ 32,321,468 $ 24,220,737
Principal transactions.............................. 1,562,511 1,189,237 3,701,326 3,450,608
Investment banking.................................. 2,461,755 1,929,145 7,183,813 6,647,277
Interest............................................ 1,660,880 1,598,303 5,391,673 4,624,763
Insurance commissions............................... 824,821 627,993 2,145,175 1,957,693
Other............................................... 1,268,368 1,265,146 4,056,199 3,439,930
-------------- --------------- -------------- ---------------
TOTAL REVENUES.............................. 19,327,927 15,648,355 54,799,654 44,341,008
-------------- --------------- -------------- ---------------
EXPENSES:
Employee compensation and benefits.................. 10,573,788 8,614,283 31,156,045 23,519,264
Floor brokerage, exchange, clearance and
other fees...................................... 1,092,231 1,214,997 3,606,614 3,608,336
Communications...................................... 248,210 300,189 828,086 874,539
Interest............................................ 635,850 796,977 2,289,996 2,180,895
Occupancy and equipment rental...................... 1,315,026 1,268,890 3,914,872 3,425,824
Taxes, other than income taxes...................... 801,059 728,310 2,341,701 2,093,563
Office supplies and expenses........................ 963,410 950,033 3,127,467 2,643,655
Other operating expenses............................ 2,142,331 2,244,052 5,936,571 6,111,355
-------------- --------------- -------------- ---------------
TOTAL EXPENSES.............................. 17,771,905 16,117,731 53,201,352 44,457,431
-------------- --------------- -------------- ---------------
Income (loss) before income taxes....................... 1,556,022 (469,376) 1,598,302 (116,423)
Provision (credit) for income taxes..................... 550,000 (240,000) 560,000 (215,000)
-------------- --------------- -------------- ---------------
NET INCOME (LOSS)....................... $ 1,006,022 $ (229,376) $ 1,038,302 $ 98,577
============== =============== ============== ===============
Net income (loss) per share............................. $ .38 $ (.08) $ .39 $ .03
Average number of common and common
equivalent shares outstanding for income (loss)
per share............................................... 2,638,659 2,824,321 2,685,155 2,867,971
Cash dividends per share................................ --- $ .06 --- $ .18
</TABLE>
See notes to condensed consolidated financial statements.
I-2
<PAGE> 5
STATEMENT OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
-------------------------
JUNE 28 JUNE 30
1996 1995
--------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income..................................................... $1,038,302 $ 98,577
Noncash items included in Net Income:
Depreciation and amortization................................ 653,522 313,173
Deferred income taxes........................................ 1,954,000 (300,000)
Refundable income taxes..................................... (1,954,000) ---
Gain on sale of fixed assets................................. (17) (3,523)
Gain on sale on investment assount securities................ --- (261,013)
---------- ----------
1,691,807 (152,786)
---------- ----------
(Increase) decrease in operating receivable
Customers.................................................... 1,732,155 1,623,426
Brokers and dealers.......................................... 503,149 (4,497,707)
Employees.................................................... 364,280 191,743
Other........................................................ 917,407 354,742
Increase (decrease) in operating payables:
Customers.................................................... (3,258,047) 914,875
Brokers and dealers.......................................... (1,310,813) 2,949,500
Employee Compensation........................................ (6,079,295) (297,057)
Income taxes................................................. 167,600 (172,913)
Other........................................................ 870,171 1,166,058
(Increase) decrease in:
Securities inventory......................................... 3,159,382 (8,204,172)
Other assets................................................. 1,658,199 (503,237)
Increase in:
Securities sold, not yet purchased........................... 111,766 105,958
---------- ----------
(1,164,046) (6,368,784)
---------- ----------
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 527,761 (6,521,570)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in short-term borrowings............................ 500,000 8,000,000
Payments on capital lease obligation......................... (213,340) (225,000)
Employee stock transactions.................................. 17,611 301,768
Repurchases of common stock.................................. (1,509,600) (1,249,372)
Dividends paid............................................... -- (464,961)
---------- ----------
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (1,205,329) 6,362,435
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investment account secutirites......... -- 704,125
Net payments for equipment and leasehold improvements........ (858,620) (482,146)
Purchases, advances and other activity in other
investments - net............................................ 447,850 (24,584)
------------ ------------
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES (410,770) 197,395
------------ ------------
INCREASE IN CASH AND CASH EQUIVALENTS.......................... (1,088,338) 38,260
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ................ 2,995,513 2,612,487
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF YEAR....................... $ 1,907,175 $ 2,650,747
============ ============
Income tax payments........................................... $ 392,450 $ 174,923
interest payments.............................................. $ 2,319,693 $ 2,035,360
</TABLE>
See notes to condensed consolidated financial statements.
I-3
<PAGE> 6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
JUNE 28, 1996 AND JUNE 30, 1995
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES
The condensed consolidated financial statements include the accounts and
operations of First of Michigan Capital Corporation and its subsidiary
companies (the Company) including First of Michigan Corporation, a registered
securities broker-dealer and a member organization of the New York Stock
Exchange, Inc., after elimination of all significant intercompany accounts and
transactions.
Securities owned and securities sold, not yet purchased, are valued at market
and unrealized gains and losses are reflected in revenues.
Investment account securities are carried at the lower of cost or market.
Certain other investments are accounted for on the equity method. The
Company's equity in such operations was not material in amount during the
periods ended June 28, 1996 and June 30, 1995.
Net income per share is computed on the basis of the weighted average number of
common shares outstanding, assuming dilutive stock options were exercised at
the beginning of the quarter or at the date of issuance, if later, with
applicable proceeds used to acquire additional treasury shares at the average
market price for the period.
INCOME TAXES
The provision (credit) for income taxes consisted of the following:
<TABLE>
<CAPTION>
NINE MONTHS ENDED
JUNE 28, 1996 JUNE 30, 1995
------------- -------------
FEDERAL STATE & LOCAL FEDERAL STATE & LOCAL
------- ------------- -------- -------------
<S> <C> <C> <C> <C>
Current .............. $(1,450,000) $ 50,000 $ 75,000 $ (10,000)
Deferred ............. 1,985,000 (25,000) (280,000) ---
--------- --------- -------- -------
Total ........... $ 535,000 $ 25,000 $(205,000) $ (10,000)
========== ========= ======== =========
</TABLE>
Deferred income taxes for the nine months ended June 28, 1996 arise principally
from the payout of deferred compensation.
CONTINGENCIES
In the normal course of business, First of Michigan Corporation enters into
underwriting commitments. Transactions relating to such underwriting
commitments which were open at June 28, 1996 and subsequently settled, had no
material effect on the financial statements as of that date.
As is the case with many firms in the securities industry, First of Michigan
Corporation is a defendant or co-defendant in a number of lawsuits or
arbitrations alleging damages, which are ordinary and routine litigation and
arbitration, incidental to the securities and investment banking business. The
Company is contesting the allegations of the complaints in these cases and
believes that there are meritorious defenses in each of these lawsuits. Some
of the proceedings relate to public underwritings of securities in which First
of Michigan Corporation participated as a member of the underwriting syndicate.
I-4
<PAGE> 7
In view of the number and diversity of claims against the Company and the
inherent difficulty of predicting the outcome of litigation and other claims,
the Company cannot state with certainty what the eventual outcome of pending
litigation or other claims will be. The Company provides for costs relating to
these matters when a loss is probable and the amount can be reasonably
estimated. The effect of the outcome of these matters on the Company's future
results of operations cannot be predicted because any such effects depends on
future results of operations and the amount and timing of the resolution of
such matters. While it is not possible to predict with certainty, management
believes that the ultimate resolution of such matters will not have a material
adverse effect on the consolidated financial position of the Company.
CAPITAL REQUIREMENTS
First of Michigan Corporation is subject to the uniform net capital rule (Rule
15c3-1) of the Securities and Exchange Commission and the capital rules of the
New York Stock Exchange, Inc., of which it is a member, and elects to compute
its net capital requirements in accordance with the alternative method.
Under this method, the Corporation is required to maintain minimum net capital,
as defined, equal to 2 percent of aggregate debit balances arising from
customer transactions, as defined. The net capital rules also provide that
equity capital may not be withdrawn or cash dividends paid if the resulting net
capital would be less than 5 percent of aggregate debits. At June 28, 1996
First of Michigan Corporation's net capital of $16,866,910 was 21 percent of
aggregate debit balances, and was $15,229,877 in excess of the 2 percent
minimum net capital required and $12,774,327 in excess of the 5 percent
dividend restriction.
_____________________________________
The preceding information is unaudited and accordingly, does not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting only of normal recurring accruals) considered
necessary for a fair presentation of the results of the period have been
included. The results for the interim period are not necessarily indicative of
the results to be expected for the full year. For further information, refer
to the financial statements and footnotes thereto included in the Company's
annual report on Form 10-K for the year ended September 29, 1995.
I-5
<PAGE> 8
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Third quarter fiscal 1996 compared to third quarter fiscal 1995.
GENERAL
First of Michigan Capital Corporation's principal subsidiary is First of
Michigan Corporation, a member of the New York Stock Exchange and Michigan's
largest full-service securities firm. Founded more than 60 years ago, First of
Michigan Corporation specializes in a wide range of financial services that
include investment products such as stocks, bonds, unit trusts and mutual
funds; investment services such as retirement plans, money management,
underwriting and trading and investment banking. First of Michigan offers
these services through its 548 employees located in 32 offices throughout
Michigan, as well as an office at 100 Wall Street, New York.
The Company's profitability, to a large degree, is sensitive to the volume of
trading in securities and the volatility and general level of securities market
prices. While the Company places emphasis on controlling fixed costs, many of
its activities have high operating costs which do not decrease proportionately
with reduced levels of activity. Sustained periods of reduced volume, or loss
of clients, could have adverse effects upon profitability.
RESULTS OF OPERATIONS
Total revenues increased 23% for both the three month and nine month periods.
Overall, retail trading volume continues to outpace both the prior year
periods. The largest dollar increase for both the three month and nine month
periods was from commission revenues which includes revenues from listed and
over-the-counter equity transactions as well as increased revenues from mutual
fund transactions. Revenues from principal transactions increased primarily in
the area of secondary trading of corporate bonds. This increase is partially
offset by a slight decrease in municipal bond trading, both of which have been
impacted by recent fluctuations in short-term interest rates. Investment
banking revenues increased in the area of equity underwritings and syndication
management fees, which were partially offset by a decrease in municipal
underwritings revenues as well as fees received from financial consulting
engagements. Interest income has increased due to increased customer margin
loan balances which is partially offset by slightly lower short-term rates.
Insurance commissions increased primarily in the area of fixed rate annuities.
Other revenues have increased primarily due to additional service fees
received for the distribution, adminstrative and advisory services performed
for certain money market funds. New account openings and assets under
management have continued to grow.
Total expenses increased 10% for the three months and 20% for the nine months
ended June 28, 1996. The largest expense category, employee compensation and
benefits, increased in conjunction with the increase in commission revenues.
Included in compensation expense for the nine month period is a charge of
approximately one million dollars for certain one-time expenses, resulting from
a realignment of the Company's operations and management structure, as
discussed below. Expenses associated with floor brokerage and clearance has
decreased as the Company utilizes more efficient means for order execution and
trade clearance. Communications expenses have decreased for the quarter due to
a change in long distance telephone carriers as well as a rate reduction
through contract re-negotiation. Interest expense for the three month period
decreased due to slightly lower rates. Occupancy and equipment rental costs
increased for the nine months due to new office openings and relocations as
well as increased costs associated with a new broker-workstation network.
Taxes, other than income taxes, increased due to the payroll taxes associated
with the increase in compensation expense as well as an increase in the
Michigan Single Business Tax associated with the increase in revenues and
related payroll costs. Other expense remained essentially unchanged.
As previously mentioned, due to the one million dollar charge resulting from a
realignment of the Company's operations and management structure in the second
quarter, net income was reduced by approximately $600,000 or $.22 per share,
for the nine month period. Exclusive of these costs, net income would have been
$1,638,302 or $.61 per share for the nine months ended June 28, 1996.
I-6
<PAGE> 9
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities showed a modest net increase for the nine
month period. The largest sources of cash resulted from net income, a
reduction in the level of securities owned for resale as well as $1.3 million
in proceeds received from the surrender of the remaining company owned life
insurance policies. The greatest uses of cash resulted from a net reduction in
both customer and broker payables as well as a reduction in employee
compensation payable. Due to the nature of the Company's business, the changes
in operating asset and liability account balances for any particular accounting
period can be quite large and, therefore, are not very useful indicators of
long-term trends in the Company's cash uses for operations. Cash used for
financing and investing activities also showed modest increases due to the
Company's repurchase of some of its common stock as well as purchases of
equipment and leasehold improvements. These amounts were partially offset by
an increase in short-term bank borrowings as well as other firm investments.
At June 28, 1996, approximately 89% of the Company's assets were liquid,
consisting mainly of cash or assets readily convertible into cash. The
Company's largest asset is its receivable from its customers, representing
borrowings from the Company by customers to finance the purchase of securities
on margin. Such receivables from customers are substantially financed by
equity capital, short-term borrowings under established lines of credit with
several banking institutions as well as from stock loan activities. A total of
$112,000,000 in approved lines of credit was available to the Company at June
28, 1996, of which $30,000,000 was outstanding.
Under separate agreements, First of Michigan Capital Corporation had available
short-term lines of credit on an unsecured basis, aggregating $8,000,000.
There were no borrowings against these lines of credit at June 28, 1996.
The Company is subject to the net capital requirements of the Securities and
Exchange Commission and the New York Stock Exchange which are designed to
measure the general financial soundness and liquidity of broker-dealers. The
Company has consistently operated well in excess of the minimum requirements.
At June 28, 1996, the Company's net capital of $16,866,910 exceeded the minimum
requirement by $15,229,877.
Management believes that funds provided by net cash earnings combined with the
liquidity of its assets, its existing capital base and its available lines of
credit are fully adequate to meet the Company's financing needs for the
forseeable future.
The Company does not engage in any derivative trading that would result in any
additional off-balance sheet risk.
CONTINGENT MATTERS
First of Michigan Corporation is the subject of claims made in several civil
actions arising out of its business as a broker-dealer and as an investment
banker. The company provides for costs related to contingencies when a loss is
probable and the amount is reasonable determinable. While these actions in the
aggregate seek substantial amounts, management believes that their disposition
will not have a material adverse effect on the financial position of the
Company. However, depending on the amount and timing of a potential
unfavorable resolution to a contingency, it is possible that the Company's
future results of operations or cash flows could be materially adversely
affected in that quarter.
OUTLOOK
The Company is focusing on growing its business in the state of Michigan and
on generating a reasonable level of profitability. Recruiting efforts for
experienced investment executives is continuing as well as the development of
new financial products and services. Significant cost reductions have occurred
resulting from a realignment of the Company's operations and management
structure. The Company is monitoring the level of all expenses closely and
making adjustments wherever beneficial savings can be achieved. While the net
income for the three months ended June 28, 1996 was favorable, no
assurance can be made that future earnings will be indicative of the current
period.
I-7
<PAGE> 10
PART II. OTHER INFORMATION
Item 5. Other Information
On June 14, 1996, Joseph M. Mengden tendered his registration as
a Director of the Company. His resignation was accepted by the
Board of Directors.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are included herein:
(11) Statement Re Computation of Per Share Earnings
(27) Financial Data Schedule
(b) Reports on Form 8-K:
The Company did not file any reports on Form 8-K during the
quarter ended June 28, 1996.
II-1
<PAGE> 11
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.
FIRST OF MICHIGAN CAPITAL CORPORATION
August 9, 1996 /s/ Kenneth C. Eich
-----------------------------------------------
KENNETH C. EICH - PRESIDENT AND
CHIEF EXECUTIVE OFFICER
August 9, 1996 /s/ Conrad W. Koski
-----------------------------------------------
CONRAD W. KOSKI
EXECUTIVE VICE PRESIDENT & TREASURER
(PRINCIPAL FINANCIAL & ACCOUNTING OFFICER)
S-1
<PAGE> 12
<TABLE>
<CAPTION>
SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER DESCRIPTION PAGE
- ------- ----------- ------------
<S> <C> <C>
11 Computations of per Share Earnings
27 Financial Data Schedule
</TABLE>
<PAGE> 1
EXHIBIT 11
TO REPORT ON FORM 10-Q
FOR THE PERIOD ENDED JUNE 28, 1996
FIRST OF MICHIGAN CAPITAL CORPORATION
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
JUNE 28, 1996 JUNE 30, 1995
------------- -------------
PRIMARY FULLY DILUTED PRIMARY FULLY DILUTED
------- ------------- ------- -------------
<S> <C> <C> <C> <C>
Weighted average shares
outstanding:
Common shares 2,638,092 2,638,092 2,810,917 2,810,917
Dilutive shares available
under stock option plans 567 (6,492) 13,404 13,033
Weighted average common shares
and common stock equivalents
-------------- ------------- ------------- -------------
outstanding 2,638,659 2,631,600 2,824,321 2,823,950
============== ============= ============= =============
Net earnings applicable to
common shares $ 1,006,022 $ 1,006,022 $ (229,376) $ (229,376)
============== ============= ============= =============
Earnings per share $ .38 $ .38 $ (.08) $ (.08)
============== ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
JUNE 28, 1996 JUNE 30, 1995
------------- -------------
PRIMARY FULLY DILUTED PRIMARY FULLY DILUTED
------- ------------- ------- -------------
<S> <C> <C> <C> <C>
Weighted average shares
outstanding:
Common shares 2,683,487 2,683,487 2,836,585 2,836,585
Dilutive shares available
under stock option plans 1,668 (52,885) 31,386 30,450
Weighted average common shares
and common stock equivalents
-------------- ------------- ------------- -------------
outstanding 2,685,155 2,630,602 2,867,971 2,867,035
============== ============= ============= =============
Net earnings applicable to
common shares $ 1,038,302 $ 1,038,302 $ 98,577 $ 98,577
============== ============= ============= =============
Earnings per share $ .39 $ .39 $ .03 $ .03
============== ============= ============= =============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> BD
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-27-1996
<PERIOD-START> SEP-30-1995
<PERIOD-END> JUN-28-1996
<CASH> 1,907,175
<RECEIVABLES> 82,675,523
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 3,663,833
<INSTRUMENTS-OWNED> 5,227,912
<PP&E> 3,034,047
<TOTAL-ASSETS> 100,791,829
<SHORT-TERM> 30,000,000
<PAYABLES> 25,739,932
<REPOS-SOLD> 0
<SECURITIES-LOANED> 15,078,300
<INSTRUMENTS-SOLD> 642,514
<LONG-TERM> 0
0
0
<COMMON> 289,156
<OTHER-SE> 29,041,927
<TOTAL-LIABILITY-AND-EQUITY> 100,791,829
<TRADING-REVENUE> 3,701,326
<INTEREST-DIVIDENDS> 5,391,673
<COMMISSIONS> 32,321,468
<INVESTMENT-BANKING-REVENUES> 7,183,813
<FEE-REVENUE> 4,056,199
<INTEREST-EXPENSE> 2,289,996
<COMPENSATION> 31,156,045
<INCOME-PRETAX> 1,598,302
<INCOME-PRE-EXTRAORDINARY> 1,038,302
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,038,302
<EPS-PRIMARY> 0.39
<EPS-DILUTED> 0.39
</TABLE>
