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, 1996
OR
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from to
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Commission file number 1-9480
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The Sherwood Group, Inc.
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(Exact name of Registrant as specified in its charter)
Delaware 22-2394480
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(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification No.)
10 Exchange Place Centre, Jersey City, New Jersey 07302
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(Address of principal executive offices) (Zip code)
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(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.
13,015,685 shares of Common Stock, par value $.01 per share, were
outstanding on September 30, 1996.
<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, 1996 and May 31, 1996 3
Consolidated Statements of Income (Unaudited) -
Three Months Ended August 31, 1996 and 1995 4
Consolidated Statements of Cash Flows (Unaudited) -
Three Months Ended August 31, 1996 and 1995 5
Notes to Consolidated Financial Statements
(Unaudited) - August 31, 1996 6
Item 2. - Management's Discussion and Analysis of
Financial Condition and Results of Operations 7 - 9
Part II - Other Information
Item 6. - Exhibits and Reports on Form 8-K 10
Signatures 11
<PAGE>
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
THE SHERWOOD GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
August 31
1996 May 31,
ASSETS (Unaudited) 1996
<S> <C> <C>
Cash $ 779,640 $ 470,313
Receivables:
Brokers and dealers 40,793,939 78,628,199
Other 544,066 519,631
Securities owned, at fair value 54,328,522 32,181,980
Investment securities not readily
marketable, at fair value 501,320 401,320
Investment in partnerships 249,446 261,286
Notes receivable 642,852 697,258
Furniture, fixtures and equipment,
and leasehold improvements - at cost,
net of accumulated depreciation and
amortization of $8,927,592 at August
31, 1996 and $8,132,165 at May 31, 1996 13,162,716 12,955,614
Computer software, net of accumulated
amortization of $558,606 at August 31,
1996 and $493,936 at May 31, 1996 758,113 766,256
Identified intangible assets, net of
accumulated amortization of $1,356,123
at August 31, 1996 and $1,245,176 at
May 31, 1996 2,832,157 2,943,104
Exchange memberships (market value
$2,950,000 at August 31, 1996 and
$2,827,500 at May 31, 1996) 2,616,496 1,166,496
US Treasury Obligations, held as
collateral 7,891,988 7,782,514
Subordinated notes receivable 3,250,000 3,250,000
Other assets 2,296,869 1,260,822
$130,648,124 $143,284,793
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Securities sold, not yet purchased,
at fair value $ 13,327,179 $ 18,827,302
Accounts payable and accrued expenses,
including compensation payable to
officers and employees of $7,001,720
at August 31, 1996 and $15,583,055 at
May 31, 1996 16,368,670 24,242,102
Secured demand notes payable 3,250,000 3,250,000
Income taxes payable 3,565,538 5,338,326
Minority interest in Equitrade 4,700,108 5,057,508
Total liabilities 41,211,495 56,715,238
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 - $.01 par value;
authorized 50,000,000 shares; none issued - -
Common stock - $.01 par value; authorized
50,000,000 shares; issued 14,343,201
shares 143,432 143,432
Additional paid-in capital 56,958,790 56,958,790
Retained earnings 40,939,181 37,936,140
98,041,403 95,038,362
Less: Treasury stock - at cost,
1,326,040 shares at August 31, 1996
and 1,313,469 shares at May 31, 1996 (8,604,774) (8,468,807)
Total stockholders' equity 89,436,629 86,569,555
$130,648,124 $143,284,793
</TABLE>
The accompanying notes are an integral part of these statements.
(3)
<PAGE>
<TABLE>
<CAPTION>
THE SHERWOOD GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended August 31,
1996 1995
<S> <C> <C>
Revenues:
Firm securities transactions - net $ 29,683,515 $ 29,290,163
Commission income 7,696,151 6,235,428
Floor brokerage income 2,938,304 2,493,677
Equity loss in partnerships (11,840) (3,548)
Interest income 1,995,559 1,323,055
Fee income 426,588 230,987
Other revenues 261,471 178,503
42,989,748 39,748,265
Expenses:
Compensation and benefits 15,024,338 12,043,775
Clearing and related charges 14,110,873 13,961,096
Communications 2,810,189 2,312,373
Depreciation and amortization 971,044 508,676
Occupancy costs and equipment rental 692,448 669,418
Other expenses 3,274,652 2,240,504
Interest expense 71,741 37,083
36,955,285 31,772,925
Income before minority interest and
income taxes 6,034,463 7,975,340
Income of Equitrade allocated to
minority partners (13,600) (801,546)
Income before income taxes 6,020,863 7,173,794
Income taxes:
Currently payable:
Federal 2,097,250 1,796,113
State and local 920,572 909,817
3,017,822 2,705,930
Net income $ 3,003,041 $ 4,467,864
Income per common and common
equivalent share (a)<F1>:
Net income $ 0.23 $ 0.33
Weighted average common shares
outstanding 13,050,182 13,354,368
<FN>
<F1>(a) For presentation purposes, primary and fully diluted are identical.
</FN>
</TABLE>
The accompanying notes are an integral part of these statements.
(4)
<PAGE>
<TABLE>
<CAPTION>
THE SHERWOOD GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended August 31,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net income $ 3,003,041 $ 4,467,864
Non-cash items included in net income:
Equity (income) loss in partnerships 11,840 3,548
Depreciation and amortization 971,044 508,676
Income of Equitrade allocated to
minority partners 13,600 801,546
(Increase) decrease in operating assets:
Receivables:
Brokers and dealers 37,834,260 6,527,034
Other (24,435) (44,324)
Securities owned, at fair value (22,146,542) (7,040,435)
US Treasury Obligations, held as collateral (109,474) (114,472)
Other assets (1,036,047) (1,010,471)
Increase (decrease) in operating liabilities:
Securities sold, not yet purchased, at
fair value (5,500,123) (2,459,793)
Accounts payable and accrued expenses (7,873,432) (751,248)
Income taxes payable (1,772,788) 1,272,359
Net cash provided by operating activities 3,370,944 2,160,284
Cash flows from investing activities:
Purchase of investment securities not
readily marketable (100,000) -
Principal collected on notes receivable 54,406 45,625
Purchases of furniture, fixtures and
equipment, and leasehold improvements (1,002,529) (1,935,719)
Purchases of computer software (56,527) -
Purchase of exchange membership (1,450,000) -
Net cash used in investing activities (2,554,650) (1,890,094)
Cash flows from financing activities:
Purchase of treasury stock (135,967) -
Proceeds from exercise of options - 250,000
Capital withdrawals by minority interest (371,000) (353,584)
Net cash used in financing activities (506,967) (103,584)
Net increase (decrease) in cash 309,327 166,606
Cash at beginning of period 470,313 593,473
Cash at end of period $ 779,640 $ 760,079
The accompanying notes are an integral part of these statements.
(5)
<PAGE>
THE SHERWOOD GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
August 31, 1996
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. During May 1996, the Company commenced
operations of a new wholly owned subsidiary, Market Distribution
Concepts Inc. ("MDC"). MDC delivers comprehensive technical
solutions to trading firms and individuals.
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 1996 Annual Report on Form 10-K. Certain prior
year amounts have been reclassified to conform with the three
months ended August 31, 1996 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
Certain significant legal proceedings and matters were
previously disclosed in the Company's 1996 Annual Report on Form
10-K. In addition, the Company's subsidiaries, and in some cases
the Company, have been named as defendants in lawsuits that
allege violations of Federal and state securities and related
laws. Although there can be no assurance that such lawsuits and
investigations involving the Company are not likely to have a
material, adverse effect on the results of operations of the
Company in any future period, depending in part on the results
for such period, based on information currently available,
management of the Company believes that any such lawsuits and
investigations are not likely to have a material adverse effect
on the consolidated financial condition and results of operations
or liquidity of the Company.
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,
1996, the net capital of Sherwood Securities, NDB and Equitrade
exceeded their required net capital by $31,956,000, $4,451,000
and $18,508,000, respectively.
The Rule also provides that 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, 1996, the payment of
dividends and advances to the Company by Sherwood Securities, NDB
and Equitrade is limited to $31,756,000, $4,369,000 and
$18,458,000, respectively, under the most restrictive of these
requirements. The Securities and Exchange Commission ("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.
(6)
<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, 1996
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 National Market System and Small-
Cap securities. NDB is a deep discount brokerage firm
specializing in trade execution for individual investors and
Equitrade is a registered specialist in equity securities on The
New York Stock Exchange ("NYSE"). During May 1996, the Company
commenced operations of a new wholly owned subsidiary, Market
Distribution Concepts Inc. ("MDC"). MDC delivers comprehensive
technical solutions to trading firms and individuals.
The Company's consolidated net income for the three months
ended August 31, 1996 was $3,003,000 compared to $4,468,000 for
the three months ended August 31, 1995. For the quarter ended
August 31, 1996, the principal subsidiaries, Sherwood Securities
and Triak had net income of $3,120,000 and $78,000,
respectively, compared to net income of $2,971,000 and $811,000
for the quarter ended August 31, 1995, respectively. Equitrade
had a net profit of $400,000 for the three months ended August
31, 1996 (of which the Company's share was $386,000) as compared
to a net profit of $2,204,000 for the three months ended August
31, 1995 (of which the Company's share was $1,403,000).
Total revenue for the Company increased by approximately
$3,241,000, or 8%, for the three months ended August 31, 1996, as
compared with the previous year. The reasons for the increase in
revenues are set forth below.
Revenue from firm securities transactions increased
$393,000, or 1%, for the three months ended August 31, 1996, as
compared with the previous year. Revenues from firm securities
transactions at Sherwood Securities increased approximately
$2,882,000, or 11%, for the three month period ended August 31,
1996 when compared to the prior year, while Sherwood Securities'
overall trading volume increased approximately 3% for the same
period. This increase in trading volume along with an increase
in the average number of shares per ticket led to an increase in
opportunities which resulted in trading profits. The increase in
revenues from firm securities transactions at Sherwood Securities
was largely offset by a decline of $2,484,000 in revenues from
firm securities transactions at Equitrade which was primarily due
to trading losses sustained.
The Company's commission income, primarily generated by NDB,
increased by approximately $1,461,000, or 23%, for the three
months ended August 31, 1996 when compared with the prior year.
The increase is due largely to the fact that NDB's average daily
ticket count increased from approximately 3,700 to 4,400 tickets
per day, an increase of 20%, for the three months ended August
31, 1996 when compared with the previous year.
Floor brokerage income increased by approximately $444,000,
or 18%, from $2,494,000 for the three months ended August 31,
1995 to $2,938,000 for the three months ended August 31, 1996.
The majority of the increase came from a $439,000, or 18%,
increase in floor brokerage income at Equitrade, which resulted
from an increase in the number of stocks in which Equitrade is a
specialist, from 82 stocks at May 31, 1995 to 97 stocks at August
31, 1996.
The principal portion of equity loss in partnerships is
equity income from the Company's 49% limited partnership interest
in Anvil Institutional Services Company.
(7)
<PAGE>
Interest income increased by approximately $673,000, or 51%,
for the three months ended August 31, 1996 as compared to the
previous year. The increase is due to a significant rise in
NDB's customer debit and credit balances held with the Company's
clearing broker and to an increase in the agreed upon rate used
to compute interest earned on such customer balances. Also
contributing to the increase were the availability of larger
amounts of cash for investment as well as to higher market
interest rates.
Fee income increased by $196,000, or 85%, for the three
months ended August 31, 1996 as compared to the prior year. 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, 1996
increased approximately $5,182,000, or 16%, from $31,773,000 in
1995 to $36,955,000 in 1996. The reasons for the increase in
expenses are set forth below.
Compensation and benefits increased $2,981,000, or 25%, for
the three month period ended August 31, 1996 compared with the
prior year. The increase is due primarily to higher commissions
paid to traders and salespeople because of higher trading profits
at Sherwood Securities and to an increase in office salaries and
related benefits due principally to a 20% increase in NDB's staff
size.
Clearing and related charges increased by approximately
$150,000, or 1%, for the three month period ended August 31,
1996, as compared to the prior year. The increase was due
principally to the operations of NDB for which clearance charges
rose by approximately $509,000 during the three months ended
August 31, 1996 compared to the three months ended August 31,
1995 due to the increase in the volume of transactions. This was
offset by a decline of approximately $298,000 in clearance and
execution charges on Sherwood Securities' OTC market making
activities.
Communications expense increased by approximately $498,000,
or 22%, for the three months ended August 31, 1996 as compared to
the previous year. The increase was mainly due to an increase in
the activities of NDB, primarily the implementation of its 1-800
customer quotation service, as well as to an increase in other
quotations expense.
Depreciation and amortization increased by approximately
$462,000, or 91%, for the three months ended August 31, 1996 as
compared to the prior year. This increase can be attributed to
capital expenditures incurred in connection with the relocation
of NDB's and SSC's headquarters.
Occupancy and equipment rental expenses increased $23,000,
or 3%, for the three month period ended August 31, 1996, as
compared to the prior year. The increase is due to higher
occupancy rates incurred as a result of the relocation of NDB's
main offices.
Other expenses increased by approximately $1,034,000, or
46%, for the three months ended August 31, 1996 as compared to
the prior year. The increase was due, specifically, to an
increase in advertising expense and, generally, to the overall
increase in the volume of business and an increase in staff size.
Interest expense increased by approximately $35,000, or 93%,
for the three months ended August 31, 1996 as compared to the
previous year due to the operations of Equitrade, which holds
secured demand notes with third parties.
Income of Equitrade allocated to minority partners
represents the share of Equitrade's net income allocated to the
minority partners during the three months ended August 31, 1996
and 1995, respectively.
The Company's effective tax rate increased from
approximately 38% for the three months ended August 31, 1995 to
approximately 50% for the three months ended August 31, 1996.
The difference in the rates is due to the timing of the
deductibility of certain items subject to different treatment for
book and tax purposes such as depreciation and amortization,
meals and entertainment, bonuses and rent expense.
(8)
<PAGE>
Liquidity
The Company's tangible assets are highly liquid with more
than 73% 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, at August 31, 1996, margin account borrowings of
approximately $145,000,000 were 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 SEC which is designed to measure the general
financial soundness and liquidity of broker-dealers. As of
August 31, 1996, Sherwood Securities, NDB and Equitrade had
approximately $31,956,000, $4,451,000 and $18,508,000,
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 the 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.
In connection with the relocation of NDB's headquarters
scheduled for late-1996, the Company made deposits of
approximately $1,000,000 on various fixed assets, accounting for
the increase in other assets reflected on the statement of cash
flows for the three months ended August 31, 1996. Additionally,
fixed assets of approximately $500,000 were purchased and placed
into service by NDB during the quarter ended August 31, 1996.
The Company anticipates that it will spend approximately
$5,000,000 in total over the next 18 months for the ongoing
upgrade of NDB's technological infrastructure and intends to
finance this upgrade out of internally generated funds.
In connection with the commencement of operations of MDC,
the Company expended approximately $400,000 for operating costs
and purchases of fixed assets during the three months ended
August 31, 1996. The Company anticipates that it will spend
approximately $2,000,000 in total over the next year in
establishing MDC and intends to finance this activity out of
internally generated funds.
The operations of the Company's 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. On August 13, 1996, the
Company purchased 100,000 restricted shares of Intra Serve Corp.
for $100,000.
During July 1996, Equitrade purchased an additional seat on
the NYSE for $1,450,000. No additional seat purchases are
expected at this time.
During the three months ended August 31, 1996, the Company
repurchased 12,571 additional shares in connection with its
December 1992 plan to buy back up to 1,500,000 shares of the
Company's common stock from time to time in the open market or
through privately negotiated transactions. As of August 31,
1996, 1,025,271 shares had been reacquired under this plan. The
source of funds for these purchases were internally generated.
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 brokers 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.
(9)
<PAGE>
Item 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 11 - Computation of Earnings Per Share
Exhibit 27 - Financial Data Schedule
(b) The Company filed no reports on Form 8-K during
the quarter ended August 31, 1996.
(10)
<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 7, 1996 By: /s/ Dennis Marino
---------------------------- --------------------------------
Dennis Marino
Executive Vice President
and Chief Administrative Officer
Date: October 7, 1996 By: /s/ Denise Isaac
----------------------------- --------------------------------
Denise Isaac
Chief Financial Officer and
Principal Accounting Officer
(11)
</TABLE>
<TABLE>
<CAPTION>
THE SHERWOOD GROUP, INC. AND SUBSIDIARIES EXHIBIT 11
COMPUTATION OF NET INCOME PER COMMON SHARE
Three Months Ended August 31,
1996 1995
<S> <C> <C>
Common stock and common stock equivalents:
Average common stock outstanding 13,017,406 12,404,820
Average common stock equivalents
issuable under stock options 32,776 949,548
Total average common stock and common
stock equivalents used for earnings per
share computation 13,050,182 13,354,368
Income:
Net income $ 3,003,041 $ 4,467,864
Income per common and common
equivalent share (a)<F1>:
Net income $ 0.23 $ 0.33
<FN>
<F1>(a) For presentation purposes, primary and fully diluted are identical.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements for the quarter ended August 31, 1996 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-START> JUN-01-1996
<PERIOD-END> AUG-31-1996
<CASH> 779640
<RECEIVABLES> 45230857
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 54328522
<PP&E> 13162716
<TOTAL-ASSETS> 130648124
<SHORT-TERM> 0
<PAYABLES> 19934208
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 13327179
<LONG-TERM> 3250000
0
0
<COMMON> 143432
<OTHER-SE> 89293197
<TOTAL-LIABILITY-AND-EQUITY> 130648124
<TRADING-REVENUE> 29683515
<INTEREST-DIVIDENDS> 1995559
<COMMISSIONS> 7696151
<INVESTMENT-BANKING-REVENUES> 0
<FEE-REVENUE> 426588
<INTEREST-EXPENSE> 71741
<COMPENSATION> 15024338
<INCOME-PRETAX> 6020863
<INCOME-PRE-EXTRAORDINARY> 3003041
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3003041
<EPS-PRIMARY> 0.23
<EPS-DILUTED> 0.23
</TABLE>
