<PAGE>
CONFORMED
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended August 31, 1995
OR
[ ] 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 1-9480
----------------------------------------------------------------
The Sherwood Group, Inc.
----------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 22-2394480
- ---------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Exchange Plaza, New York, New York 10006
----------------------------------------------------------------
(Address of principal executive offices) (Zip 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
---- ----
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
12,572,557 shares of Common Stock, par value $.01 per share,
were outstanding on September 30, 1995.
<PAGE>
THE SHERWOOD GROUP, INC.
AND SUBSIDIARIES
INDEX
PAGE
----
Part I - Financial Information
Item 1. - Financial Statements
Consolidated Statements of Financial Condition
(Unaudited) - August 31, 1995 and May 31, 1995 3-4
Consolidated Statements of Operations (Unaudited) -
Three Months Ended August 31, 1995 and 1994 5-6
Consolidated Statements of Cash Flows (Unaudited) -
Three Months Ended August 31, 1995 and 1994 7-8
Notes to Consolidated Financial Statements
(Unaudited) - August 31, 1995 9-10
Item 2. - Management's Discussion and Analysis of
Financial Condition and Results of
Operations 11-14
Part II - Other Information
Item 1. - Legal Proceedings 15
Item 6. - Exhibits and Reports on Forms 8-K 15
Signatures 16
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
THE SHERWOOD GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
August 31, May 31,
1995 1995
ASSETS (Unaudited) (Unaudited)
-------------- -------------
<C> <C>
Cash $ 760,079 $593,473
Receivables:
Brokers and dealers 41,275,395 47,802,429
Other 268,373 224,049
Marketable securities owned, at
market value 48,818,330 41,777,895
Investment securities not readily
marketable, at fair value 401,320 401,320
Investment in partnerships 248,632 252,180
Notes receivable 596,410 642,035
Furniture, fixtures and equipment, and
leasehold improvements - at cost, net of
accumulated depreciation and amortization of
$5,031,446 at August 31, 1995 and
$6,608,583 at May 31, 1995 5,435,092 3,861,992
Computer software, net of accumulated
amortization of $357,156 at August 31,
1995 and $322,048 at May 31, 1995 365,900 401,008
Identified intangible assets, net of accumulated
amortization of $912,335 at August 31, 1995
and $1,051,386 at May 31, 1995 3,275,945 3,386,894
Exchange memberships (market value $1,589,250
at August 31, 1995 and $1,560,000 at
May 31, 1995) 1,166,496 1,166,496
Subordinated notes receivable 3,250,000 3,250,000
Other assets 10,396,034 9,271,091
------------ -----------
$116,258,006 $113,030,862
============ ============
(Continued)
</TABLE>
(3)
<PAGE>
<TABLE>
THE SHERWOOD GROUP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Continued)
<CAPTION>
August 31, May 31,
1995 1995
LIABILITIES AND STOCKHOLDERS' EQUITY (Unaudited) (Unaudited)
------------- ----------
<C> <C>
Liabilities:
Securities sold, not yet purchased,
at market value $ 22,165,162 $24,624,955
Accounts payable and accrued expenses,
including compensation payable to
officers and employees of $6,696,000
at August 31, 1995 and $8,970,821
at May 31, 1995 13,720,082 14,471,330
Secured demand notes payable 3,250,000 3,250,000
Income taxes payable 2,638,215 1,365,856
Minority interest in Equitrade 3,789,182 3,341,220
---------- ----------
Total liabilities 45,562,641 47,053,361
---------- ----------
Commitments and Contingencies (Note 4)
Stockholders' equity (Note 5)
Preferred stock - $.01 par value;
authorized 1,000,000 shares, none issued - -
Class A common stock - par value $.01
per share; authorized 50,000,000 shares;
none issued - -
Common stock - $.01 par value; authorized
50,000,000 shares, issued 14,343,201
shares at August 31,1995 and
May 31, 1995 143,432 143,432
Additional paid-in capital 57,141,852 58,134,052
Retained earnings 22,272,076 17,804,212
---------- ----------
79,557,360 76,081,696
Less: Treasury stock - at cost, 1,783,490
shares at August 31, 1995 and 2,033,490
shares at May 31, 1995
(8,861,995) (10,104,195)
----------- ------------
Total stockholders' equity 70,695,365 65,977,501
------------- ------------
$ 116,258,006 $113,030,862
============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
(4)
<PAGE>
<TABLE>
THE SHERWOOD GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Ended August 31,
-----------------------------
1995 1994
--------- ------------
<S> <C> <C> <C>
Revenues:
Firm securities transactions - net $ 31,783,840 $ 18,291,927
Commission income 6,235,428 2,348,702
Equity income (loss) in partnerships ( 3,548) 1,261,320
Investment securities gains
realized - 76,375
Interest income 1,437,496 631,016
Fee income 230,987 34,072
Other revenues 178,503 138,739
---------- ----------
39,862,706 22,782,151
---------- ---------
Expenses:
Compensation and benefits 12,043,775 7,126,951
Clearing and related charges 13,951,596 7,324,216
Communications 2,311,155 1,397,870
Other expenses 3,429,316 3,360,400
Interest expense 151,524 9,390
---------- ---------
31,887,366 19,218,827
---------- ---------
Income before minority interest and
income taxes 7,975,340 3,563,324
Income of Equitrade allocated to minority
partners (801,546) -
---------- ---------
Income before income taxes 7,173,794 3,563,324
---------- ---------
Income taxes:
Currently payable:
Federal 1,796,113 68,602
State and local 909,817 436,519
--------- ----------
2,705,930 505,121
--------- ----------
Net income $ 4,467,864 $3,058,203
=========== ==========
</TABLE>
(Continued)
(5)
<PAGE>
<TABLE>
THE SHERWOOD GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Continued)
<CAPTION>
Three Months Ended August 31,
------------------------------
1995 1994
------------ ------------
<S> <C> <C>
Income per common and common
equivalent share (a):<F1>
Net income $ 0.33 $ 0.22
========== ==========
Weighted average common shares outstanding 13,354,368 13,759,913
========== ==========
<FN>
<F1>(a) For presentation purposes, primary and fully diluted are
identical.
</FN>
</TABLE>
The accompanying notes are an integral part of these statements.
(6)
<PAGE>
<TABLE>
THE SHERWOOD GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended August 31,
------------------------------
1995 1994
----------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 4,467,864 $3,058,203
---------- ---------
Non-cash items included in net income:
Equity income in partnerships 3,548 (1,261,320)
Depreciation and amortization 508,676 418,152
Gain on sales of investment
securities not readily marketable - (76,375)
Income of Equitrade allocated to minority
partners 801,546 -
--------- ---------
1,313,770 (919,543)
--------- ----------
(Increase) decrease in operating assets:
Receivables:
Brokers and dealers 6,527,034 4,172,648
Other (44,324) (62,937)
Marketable securities owned, at
market value (7,040,435) (2,878,294)
Other assets (1,124,943) (36,785)
---------- ----------
(1,682,668) 1,194,632
---------- ----------
Increase (decrease) in operating
liabilities: Securities sold, not yet
purchased, at market value (2,459,793) (228,333)
Accounts payable and accrued expenses (751,248) (2,630,073)
Income taxes payable 1,272,359 (144,896)
----------- ----------
(1,938,682) (3,003,302)
----------- ----------
Net cash provided by operating
activities 2,160,284 329,990
--------- -----------
</TABLE>
(Continued)
(7)
<PAGE>
<TABLE>
THE SHERWOOD GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Continued)
<CAPTION>
Three Months Ended August 31,
-------------------------------
1995 1994
------------ -------------
<S> <C> <S> <C> <C>
Cash flows from investing activities:
Proceeds from sales of investment
securities not readily marketable - 99,575
Loans made - (200,000)
Principal collected on notes receivable 45,625 134,232
Purchases of furniture, fixtures and
equipment, and leasehold improvements (1,935,719) (323,752)
Purchases of computer software - (1,818)
----------- --------
Net cash used in investing activities (1,890,094) (291,763)
----------- --------
Cash flows from financing activities:
Purchase of treasury stock - (124,441)
Proceeds from exercise of options 250,000 -
Capital withdrawals by minority interest (353,584) -
---------- --------
Net cash provided by used in
financing activities (103,584) (124,441)
---------- ---------
Net increase (decrease) in cash 166,606 (86,214)
Cash at beginning of period 593,473 474,733
----------- ---------
Cash at end of period $ 760,079 $ 388,519
=========== ==========
The accompanying notes are an integral part of these statements.
(8)
<PAGE>
THE SHERWOOD GROUP, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
August 31, 1995
Note 1 - Business and organization
The Sherwood Group, Inc. and its subsidiaries
(the "Company") are primarily engaged in the securities
business and in providing related financial services. The
Company has a principal registered broker-dealer wholly
owned subsidiary, Sherwood Securities Corp. ("Sherwood
Securities"). National Discount Brokers ("NDB"), another
registered broker-dealer, is a division of the Company's wholly
owned subsidiary, Triak Services Corp. The Company has a 60%
special limited partnership interest in Equitrade Partners
("Equitrade"), which is a specialist for securities listed on
The New York Stock Exchange. In addition, Sherwood Securities is a
specialist for securities listed on the American Stock Exchange.
Note 2 - Basis of presentation
The accompanying unaudited consolidated financial
statements do not include all of the information and notes
required by generally accepted accounting principles
for complete consolidated financial statements. In the
opinion of management, all adjustments considered necessary
for a fair presentation of consolidated financial condition
and results of operations for the periods presented have been
included. All adjustments are of a normal and recurring
nature. It is suggested that these consolidated financial
statements be read in conjunction with the consolidated
financial statements and the related notes included in the
Company's 1995 Annual Report on Form 10-K. Certain prior year
amounts have been reclassified to conform with the three
months ended August 31, 1995 presentation.
Note 3 - Net income per common share
Net income per common share is computed using the
weighted average number of shares of common stock and
common stock equivalents outstanding. Common stock
equivalents include stock issuable under stock options.
The treasury stock method of accounting was used in
computing the common stock equivalents for the computation of
earnings per common share.
Note 4 - Commitments and contingencies
The Company has been named as a defendant in lawsuits and
as a party to arbitrations that allege violations of Federal
and state securities and related laws. Management believes
that the resolution of these lawsuits is not likely to result
in any material, adverse effect on the Company's consolidated
financial position and results of operations.
(9)
<PAGE>
THE SHERWOOD GROUP, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
August 31, 1995
Note 5 - Net capital requirements
As registered broker-dealers, Sherwood Securities, NDB
and Equitrade are subject to the Securities and Exchange
Commission Uniform Net Capital Rule 15c3-1 (the "Rule"). As of
August 31, 1995, the net capital of Sherwood Securities, NDB
and Equitrade exceeded their required net capital by
$30,664,000, $4,750,000 and $17,865,000, respectively.
The Rule also provides that the equity capital may not
be withdrawn or cash dividends be paid if the resulting net
capital of a broker-dealer would be less than the amount
required under the Rule. Accordingly, at August 31, 1995,
the payment of dividends and advances to the Company by
Sherwood Securities, NDB and Equitrade is limited to
$30,464,000, $4,700,000 and $17,815,000, respectively, under
the most restrictive of these requirements. The SEC may, by order,
restrict the withdrawal of equity capital on a net basis if the SEC
determines that such withdrawal would be detrimental to the
financial integrity of the broker-dealer or the financial
community.
(10)
<PAGE>
Item - 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The results of the Sherwood Group, Inc. and
subsidiaries (the "Company") for the three months ended
August 31, 1995 reflect primarily the activities of
Sherwood Securities Corp. ("Sherwood Securities"), National
Discount Brokers ("NDB"), a division of the Company's
subsidiary, Triak Services Corp. ("Triak") and Equitrade
Partners ("Equitrade"). Sherwood Securities is primarily
engaged in the securities business as a wholesale market
maker in NASDAQ/OTC securities. NDB is a deep discount
retail brokerage firm and Equitrade is a registered
specialist in equity securities on the New York Stock
Exchange. Prior to March 1995, the Company's investment in
Equitrade was accounted for on an equity basis.
The Company's net income for the three months ended
August 31, 1995 and 1994 was $4,468,000 and $3,058,000,
respectively. Sherwood Securities had net income for the
three months ended August 31, 1995 and 1994 of
$2,971,000 and $4,615,000, respectively. Triak had net
income for the three months ended August 31, 1995 of $811,000
compared to a net loss of $1,693,000 for the three months ended
August 31, 1994. Equitrade had net income of $2,204,000 for the
three months ended August 31, 1995.
Total revenue for the Company increased by approximately
$17,081,000, or 75% for the three months ended August 31, 1995
when compared with the previous year.
Sherwood Securities' revenues from firm securities
transactions increased approximately $9,310,000, or 51%, for
the three months ended August 31, 1995 when compared to the
prior year while its overall trading volume increased
approximately 94% for the same period. Regulatory changes
enacted by the SEC and the NASD have caused a significant
increase in the number of transactions executed on an "even"
basis. This was the primary reason for the decrease in
trading profits per ticket for the three months ended
August 31, 1995. Equitrade's revenues from firm transactions,
included in total revenues for the three months ended
August 31, 1995, approximated $4,182,000.
The Company's commission income increased by approximately
$3,887,000, or 165%, for the three months endedAugust 31, 1995
when compared with the prior year. The increase is due to the
fact that NDB's volume of transactions increased by 260% for the
three months ended August 31, 1995 when compared with the
previous year, which was NDB's first full year of operations.
Prior to March 1995 when the Company began to account
for Equitrade on a consolidated basis, the primary portion of
equity income in partnerships was equity income from Equitrade.
For the three months ended August 31, 1994, equity income from
Equitrade was $1,244,000.
(11)
<PAGE>
There were no investment securities transactions for
the three months ended August 31, 1995. Gains on sales of
investment securities aggregated $76,000 for the three months
ended August 31, 1995 resulting entirely from the sale of
11,600 shares of Network Imaging Corp. (IMGX).
Interest income increased by approximately $806,000,
or 128%, for the three months ended August 31, 1995 as
compared to the previous year. The increase is due to a
significant rise in NDB's customer debit balances held with
our clearing broker, the availability of larger amounts of
cash for investment and increasing market interest rates.
Fee income increased by $197,000 from $34,000 in 1994
to $231,000 in 1995. The increase is due to larger 12b-1
fees received from mutual funds as NDB's customers' balances in
those funds have increased since the prior year.
Total expenses for the three months ended August 31,
1995 increased approximately $12,668,000, or 66%, from
$19,219,000 in 1994 to $31,887,000 in 1995. The reasons for
the increase in expenses are set forth below.
Compensation and benefits increased $4,917,000, or 69%,
for the three months ended August 31, 1995, respectively,
compared with the prior year. The increase is due primarily
to higher commissions paid to traders and salespeople
because of higher trading profits In addition, there was
an increase in office salaries and related benefits due
principally to NDB's larger staff size as of August 31, 1995
than in the prior year. Also, higher bonuses were accrued as a
result of higher overall profits of the Company as compared to
the prior year.
Clearing and related charges increased by approximately
$6,627,000, or 90%, for the three months ended August 31, 1995,
as compared to the previous year. The increase was primarily due
to the operations of NDB for which clearance charges amounted to
approximately $3,154,000 for the three months ended August 31,
1995, compared to $1,188,000 for the three months ended
August 31, 1994. In addition, the increased trading volume
led to increases in payments made to correspondents for order flow.
Communications expense increased by $913,000, or 65%,
for the three months ended August 31, 1995 as compared
to the previous year. The increase was mainly due to an
increase in the activities of NDB, namely telephone and
quotations expense.
Other expenses increased by approximately $69,000, or
2%, for the three months ended August 31, 1995 as compared
to the previous year. The increase was due, specifically, to
increases in professional fees and occupancy costs and,
generally, to the overall increase in the volume of business
and an increase in staff size. Offsetting these increases
was a large reduction in advertising expenditures made
in connection with NDB. Corresponding to the
commencement of NDB's operations, the Company ran an
extensive media campaign through September 1994 at which time
the amount and frequency of advertising lessened significantly.
(12)
<PAGE>
Interest expense increased by approximately $142,000,
or 1,514%, for the three months ended August 31, 1995 as
compared to the previous year due to the operations of
Equitrade.
Liquidity
The Company's tangible assets are highly liquid with
more than 80% of these tangible assets consisting of cash or
assets readily convertible into cash. The Company's
operations have generally been financed by internally
generated funds. In addition, margin account borrowings are
available to the Company from its clearing brokers.
The Company's broker-dealer entities, Sherwood
Securities, NDB and Equitrade, are subject to the minimum
net capital requirement of the Securities and Exchange
Commission ("SEC") which is designed to measure the general
financial soundness and liquidity of broker-dealers. As of
August 31, 1995, Sherwood Securities, NDB and Equitrade
had approximately $30,664,000, $4,750,000 and $17,865,000,
respectively, in excess of the required minimum net
capital. The net capital rule imposes financial
restrictions upon Sherwood Securities', NDB's and
Equitrade's businesses which are more severe than those
imposed on most other businesses.
Cash flows from operations will vary on a daily basis as
the Company's portfolio of marketable securities changes.
The Company's ability to convert marketable securities owned
into cash is determined by the depth of the market and size
of the Company's security positions in relation to the
market as a whole. The portfolio mix also affects the
regulatory capital requirements imposed on Sherwood
Securities, NDB and Equitrade which directly affects the
amount of funds available for operating, investing and
financing activities.
The operations of an American Stock Exchange Specialist
book continue to be funded by the income generated by the book.
Cash flows from the Company's investment activities
are directly related to market conditions.
During the three months ended August 31, 1995, the
Company did not repurchase any additional shares in connection
with its December 1992 plan to buy back up to 1.5 million
shares of the Company's common stock from time to time in
the open market or through privately negotiated transactions.
As of August 31, 1995, 781,418 shares had been acquired. The
source of funds for these purchases were internally generated.
(13)
<PAGE>
Effects of Inflation
The Company's assets are not significantly affected
by inflation because they are primarily monetary in
nature. Management believes that replacement costs of
furniture, equipment and leasehold improvements will not
materially affect operations. However, the rate of inflation
affects the Company's principal expenses such as employee
compensation, rent and communication, which may not be
readily recoverable from increased revenues. Because of
market forces and competitive conditions in the securities
industry, a broker-dealer may be unable to unilaterally
increase spreads and commissions in order to recover
increased costs related to inflation. Consequently, the
Company must rely on increased volume for this purpose.
However, the Company has significant cash balances on
deposit with its principal clearing broker on which interest
is paid which, in the event there are higher interest
rates which normally result from inflation, would offset some
of the costs.
(14)
<PAGE>
PART II - OTHER INFORMATION
Item 1 - LEGAL PROCEEDINGS
The Company initially reported in its Form 10-K for
the year ended May 31, 1994 that certain class action
complaints, Charles Kaye and Sulochana Dessi, et al. v.
Herzog, Heine, Geduld, et al. (United States District Court
for the Southern District of New York); Jerome Robinson v.
Herzog, Heine, Geduld, et al. United States District Court
for the Southern District of New York); and Lawrence A.
Abel, et al. v. Merrill Lynch Incorporated & Co., et al.
(Superior Court of California, County of San Diego), were
filed on May 27, 1994 against Sherwood Securities and
several other market makers on the NASDAQ exchange.
Subsequent to May 27, 1994, several additional class
action complaints were filed which contained the same or
similar allegations and request similar relief.
By Order dated October 14, 1994, the Judicial Panel
on Multidistrict Litigation consolidated the above matters and
any later-filed "tag along" cases for pre-trial proceedings
in the United States District Court for the Southern
District of New York, entitled In Re NASDAQ Market-Makers
Antitrust Litigation, 94 Civ. 3996 (RWS). A Second Amended
Complaint was filed on August 22, 1995. The Second
Amended Consolidated Complaint repeated most of the
allegations of the various earlier filed complaints, except
that plaintiffs are no longer alleging violations of the
Securities Exchange Act of 1934, as amended. Rather, their
claims are limited to those previously alleged under the
Federal antitrust laws. Plaintiffs have also now limited
their claims to approximately 1,659 stocks traded on
NASDAQ. The Company intends to vigorously defend itself
against these allegations.
Item 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 11 - Computation of Earnings Per Share
(b) The Company filed no reports on Form 8-K during
the quarter ended August 31, 1995.
(15)
<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.
The Sherwood Group, Inc.
------------------------
Date: October 10, 1995 By: Dennis Marino
---------------------- ------------------------
Dennis Marino
(Executive Vice President
and Chief Administrative
Officer)
Date: October 10, 1995 By: William Karsh
---------------------- ------------------------
William Karsh
(Vice President and
Chief Financial Officer)
(16)
</TABLE>
THE SHERWOOD GROUP, INC. EXHIBIT 11
AND SUBSIDIARIES
COMPUTATION OF NET INCOME PER COMMON SHARE
Three Months Ended August 31,
---------------------------------------
1995 1994
--------------- --------------
Common stock and common stock equivalents:
Average common stock outstanding 12,404,820 12,635,172
Average common stock equivalents
issuable under stock options 949,548 1,124,741
--------------- ---------------
Total average common stock and common
stock equivalents used for earnings
per share computation 13,354,368 13,759,913
=========== ==========
Income:
Net income $ 4,467,864 $ 3,058,203
========== ==========
Income per common and common
equivalent share (a):
Net income $ 0.33 $ 0.22
========== ==========
(a) For presentation purposes, primary and fully diluted are identical.
<TABLE> <S> <C>
<ARTICLE> BD
<RESTATED>
<CIK> 0000811917
<NAME> SHERWOOD GROUP INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> AUG-31-1995
<CASH> 760079
<RECEIVABLES> 45390178
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 48818330
<PP&E> 5435092
<TOTAL-ASSETS> 116258006
<SHORT-TERM> 0
<PAYABLES> 19608297
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 22165162
<LONG-TERM> 0
<COMMON> 143432
0
0
<OTHER-SE> 70551933
<TOTAL-LIABILITY-AND-EQUITY> 116258006
<TRADING-REVENUE> 31782840
<INTEREST-DIVIDENDS> 1437496
<COMMISSIONS> 6235428
<INVESTMENT-BANKING-REVENUES> 0
<FEE-REVENUE> 230987
<INTEREST-EXPENSE> 151524
<COMPENSATION> 12043775
<INCOME-PRETAX> 7173794
<INCOME-PRE-EXTRAORDINARY> 7173794
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4467864
<EPS-PRIMARY> 0.33
<EPS-DILUTED> 0.33
</TABLE>
