<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X Quarterly Report Pursuant to Section 13 or 15(d)
___
of the Securities Exchange Act of 1934
For the Quarterly Period Ended March 31, 1998
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 No. 0-19614
H.D. VEST, INC.
(Exact name of registrant as specified in its charter)
Texas 75-2154244
----------------------------------- --------------------
(State or other jurisdiction of (IRS Employer ID.)
incorporation or organization)
6333 North State Highway 161, Fourth Floor, Irving, TX 75038
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code (972) 870-6000
Indicate by check mark whether the registrant (1) has filed all reports required
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months, and (2) has been subject to such requirements for the past
90 days.
Yes X No
_____ _____
Number of shares of the registrant's Common Stock outstanding as of March 31,
1998: 5,423,341.
1
<PAGE>
H.D. VEST, INC.
INDEX
PART I. Financial Information Page(s)
--------------------- -------
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Financial
Position--March 31, 1998 and
September 30, 1997 3-4
Consolidated Statements of Operations--
Three Months Ended March 31, 1998 and
March 31, 1997 5
Consolidated Statements of Operations--
Six Months Ended March 31, 1998 and
March 31, 1997 6
Consolidated Statements of Cash Flows--
Six Months Ended March 31, 1998 and
March 31, 1997 7
Notes to Consolidated Financial
Statements 8-11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 12-14
PART II. Other Information
-----------------
Item 1. Legal Proceedings 15
Item 5. Other Information 15-16
Item 6. Exhibits and Reports on Form 8-K 16
Signatures 17
2
<PAGE>
PART I. FINANCIAL INFORMATION
- ------------------------------
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
- -----------------------------------------
H.D. VEST, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
ASSETS
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
(Unaudited)
------------ ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 6,839,018 $ 6,384,992
Commissions and accounts
receivable 7,112,128 6,642,200
Notes receivable-
related parties 354,483 590,320
Receivable from affiliate 208,765 142,145
Prepaid and other assets 701,167 503,738
----------- -----------
Total current assets 15,215,561 14,263,395
----------- -----------
Property and equipment, net
of accumulated depreciation
of $1,583,773 at March 31,
1998, and $2,386,637 at September
30, 1997 5,412,207 2,755,457
Notes receivable - related parties 2,036,483 2,127,613
Other assets 1,955,358 601,166
----------- -----------
$24,619,609 $19,747,631
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements
3
<PAGE>
H.D. VEST, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
LIABILITIES AND SHAREHOLDERS' INVESTMENT
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
(Unaudited)
------------ -------------
<S> <C> <C>
Current liabilities:
Accounts payable and accrued
expenses $ 4,886,806 $ 3,930,651
Amounts due on clearing
transactions 663,701 539,538
Commissions payable 6,755,424 4,738,908
----------- -----------
Total current liabilities 12,305,931 9,209,097
----------- -----------
Obligations under capital leases,
excluding current installments 2,515,824 1,016,257
Other noncurrent liabilities 1,793,896 1,323,375
Unearned revenues 152,447 1,150,341
Shareholders' investment:
Preferred stock, $6 par value;
250,067 shares outstanding 1,500,402 1,500,402
Common stock, $.05 par value;
100,000,000 shares authorized;
5,423,341 issued and outstanding 271,167 271,167
Additional paid-in capital 5,113,334 5,113,334
Retained earnings 966,608 163,658
----------- -----------
Total shareholders' investment 7,851,511 7,048,561
----------- -----------
$24,619,609 $19,747,631
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements
4
<PAGE>
H.D. VEST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1998 1997
------------- -------------
<S> <C> <C>
Revenues:
Commissions $22,154,709 $16,891,995
Portfolio management fees 3,895,130 2,689,246
Marketing and education fees 1,124,457 921,304
Interest and other 303,796 331,683
----------- -----------
Total revenues 27,478,092 20,834,228
----------- -----------
Expenses:
Commissions 15,874,083 11,887,583
Portfolio management fees 2,570,910 1,683,259
General and administrative 6,339,778 4,633,273
Representative development 1,717,075 1,394,740
Representative recruiting 327,977 244,243
Interest 73,702 21,939
----------- -----------
Total expenses 26,903,525 19,865,037
----------- -----------
Net income before taxes 574,567 969,191
Income taxes 274,707 518,644
----------- -----------
Net income $ 299,860 $ 450,547
=========== ===========
Net income per common share $ 0.05 $ 0.08
=========== ===========
Net income per common share
- assuming dilution $ 0.05 $ 0.08
=========== ===========
Weighted average number of
common shares outstanding 5,423,341 5,423,341
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements
5
<PAGE>
H.D. VEST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended March 31,
--------------------------
1998 1997
------------ ------------
<S> <C> <C>
Revenues:
Commissions $41,523,907 $30,779,589
Portfolio management fees 7,508,518 5,032,518
Marketing and education fees 3,655,828 2,980,949
Interest and other 915,812 768,629
----------- -----------
Total revenues 53,604,065 39,561,685
----------- -----------
Expenses:
Commissions 29,515,112 21,509,606
Portfolio management fees 4,911,279 3,130,167
General and administrative 12,660,256 8,588,245
Representative development 4,054,294 3,124,282
Representative recruiting 882,373 560,128
Interest 112,209 41,838
----------- -----------
Total expenses 52,135,523 36,954,266
----------- -----------
Net income before taxes 1,468,542 2,607,419
Income taxes 601,824 1,222,343
----------- -----------
Net income $ 866,718 $ 1,385,076
=========== ===========
Net income per common share $ 0.15 $ 0.24
=========== ===========
Net income per common share
- assuming dilution $ 0.14 $ 0.24
=========== ===========
Weighted average number of
common shares outstanding 5,423,341 5,423,341
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements
6
<PAGE>
H.D. VEST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended March 31,
---------------------------
1998 1997
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 866,718 $ 1,385,076
Reconciliation of net income to
net cash provided by operating activities:
Depreciation and amortization 597,169 410,811
Loss on sale of assets 63,073 11,029
Deferred tax provision - 423,754
Changes in assets and liabilities:
Commissions and accounts receivable (469,928) 94,292
Receivable from affiliate (66,620) 109,761
Prepaid and other assets (197,429) (23,247)
Payable to officers and directors - (74,994)
Amounts due on clearing transactions 124,163 612,728
Accounts payable and accrued expenses 424,638 (1,012,693)
Commissions payable 2,016,516 947,766
Unearned revenues (997,894) (749,204)
----------- -----------
Net cash provided by operating activities 2,360,406 2,135,079
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (975,448) (210,152)
Purchases of short term investments - (250,000)
Proceeds from sale of assets 48,670 40,098
Costs to acquire/develop software (1,361,933) (22,553)
Additions to other assets (82,512) (48,711)
----------- -----------
Net cash used for investing activities (2,371,223) (491,318)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Preferred stock dividends (63,768) (63,768)
Proceeds from deferred compensation plan 522,844 264,577
Advances on notes receivable
-related parties (424,205) (397,805)
Payments on notes receivable
-related parties 751,172 347,402
Payments on capital lease obligations (321,200) (208,219)
----------- -----------
Net cash provided by (used for)
financing activities 464,843 (57,813)
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 454,026 1,585,948
CASH AND CASH EQUIVALENTS,
September 30, 1997 and 1996 6,384,992 6,484,846
----------- -----------
CASH AND CASH EQUIVALENTS,
March 31, 1998 and 1997 $ 6,839,018 $ 8,070,794
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements
7
<PAGE>
H.D. VEST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1) Basis of Financial Statements
The accompanying unaudited consolidated financial statements have been prepared
in accordance with Rule 10-01 of Regulation S-X, "Interim Financial
Statements," and accordingly do not include all information and footnotes
required under generally accepted accounting principles for complete financial
statements. The financial statements have been prepared in conformity with the
accounting principles and practices as disclosed in the Company's Annual Report
on Form 10-K for the year ended September 30, 1997. In the opinion of
management, these interim financial statements contain all adjustments
(consisting only of normal recurring adjustments) necessary for a fair
presentation of the Company's financial position as of March 31, 1998 and
September 30, 1997, the results of operations for the three and six month
periods ended March 31, 1998 and 1997 and the cash flows for the six-month
periods ended March 31, 1998 and 1997. Results of operations for the interim
period ended March 31, 1998, are not necessarily indicative of the results that
may be expected for the year ended September 30, 1998. For additional
information, refer to the consolidated financial statements and footnotes
included in the Company's Annual Report on Form 10-K for the year ended
September 30, 1997.
Certain reclassifications have been made to prior years' statements in order
for the amounts to be comparable with the current year presentation.
8
<PAGE>
2) Earnings per Share
In fiscal 1998, the Company adopted Statement of Financial Accounting Standards
No. 128 (SFAS No. 128), "Earnings per Share"(EPS). SFAS No. 128 requires
replacement of "primary" EPS with "basic" EPS and "fully diluted" EPS with
"diluted" EPS. SFAS No. 128 requires previously reported EPS to be restated. The
adoption of SFAS No. 128 did not affect the Company's previously reported EPS.
The following tables show the calculation of basic and diluted EPS for the three
months and six months ended March 31, 1998 and 1997, respectively.
<TABLE>
<CAPTION>
For the Six Months Ended Income Shares Per-Share
March 31, 1998 (Numerator) (Denominator) Amount
------------------- --------------------- ---------
_______________________________________
<S> <C> <C> <C>
Net income $866,718
Less: Preferred dividend (63,768)
--------
Basic EPS:
Income available to common
stockholders 802,950 5,423,341 $0.15
------
Effect of dilutive securities:
Options - 132,098
-------- ---------
Diluted EPS:
Income available to common
stockholders $802,950 5,555,439 $0.14
-------- --------- -------
</TABLE>
<TABLE>
<CAPTION>
For the Three Months Ended Income Shares Per-Share
March 31, 1998 (Numerator) (Denominator) Amount
------------- --------------- ---------
_______________________________________
<S> <C> <C> <C>
Net income $299,860
Less: Preferred dividend (31,884)
--------
Basic EPS:
Income available to common
stockholders 267,976 5,423,341 $0.05
------
Effect of dilutive securities:
Options - 132,098
-------- ---------
Diluted EPS:
Income available to common
stockholders $267,976 5,555,439 $0.05
-------- --------- ------
</TABLE>
9
<PAGE>
Options to purchase 95,454 shares of common stock at $8.50 per share were
outstanding during the three months and six months ended March 31, 1998. These
options were not included in the computation of diluted EPS because the options'
exercise price was greater than the average market price of outstanding common
shares.
There were 250,067 shares of Convertible Preferred Stock outstanding during the
three months and six months ended March 31, 1998 but were not included in the
computation of diluted EPS because the conversion had an anti-dilutive effect on
EPS.
<TABLE>
<CAPTION>
For the Six Months Ended Income Shares Per-Share
March 31, 1997 (Numerator) (Denominator) Amount
- --------------------------------------- ---------------- ----------------- ---------
<S> <C> <C> <C>
Net income $1,385,076
Less: Preferred dividend (63,768)
----------
Basic EPS:
Income available to common
stockholders 902,645 5,423,341 $0.24
-----
Effect of dilutive securities:
Options - 12,485
---------- ---------
Diluted EPS:
Income available to common
stockholders $1,321,308 5,435,826 $0.24
---------- --------- -----
</TABLE>
<TABLE>
<CAPTION>
For the Three Months Ended Income Shares Per-Share
March 31, 1997 (Numerator) (Denominator) Amount
- --------------------------------------- ------------------- ------------------ ---------
<S> <C> <C> <C>
Net income $450,547
Less: Preferred dividend (31,884)
--------
Basic EPS:
Income available to common
stockholders 418,663 5,423,341 $0.08
------
Effect of dilutive securities:
Options - 12,485
-------- ---------
Diluted EPS:
Income available to common
stockholders $418,663 5,435,826 $0.08
-------- --------- -----
</TABLE>
10
<PAGE>
Options to purchase 373,454 shares of common stock at prices ranging from $4.63
to $8.50 per share were outstanding during the three months and six months ended
March 31, 1997. These options were not included in the computation of diluted
EPS because the options' exercise price was greater than the average market
price of outstanding common shares.
There were 250,067 shares of Convertible Preferred Stock outstanding during the
three months and six months ended March 31, 1997 but were not included in the
computation of diluted EPS because the preferred shares original purchase price
is greater that the average market price of outstanding common shares.
3) Commitments and Contingencies
Litigation and Contingencies In September 1997, litigation was initiated against
the Company and its subsidiary, H.D. Vest Investment Securities, Inc., in regard
to the activities of a former Registered Representative. As of March 31, 1998,
the plaintiffs seek recovery for alleged out-of-pocket losses totaling
approximately $450,000. In addition, the plaintiffs seek recovery for treble and
punitive damages as well as recovery for pain and suffering. As of May 15, 1998,
additional claims alleging out-of-pocket losses of approximately $400,000 were
made against the Company, although the claims have not proceeded to litigation.
The Company believes it has a defense against all claims and intends to
vigorously defend them. The Company is currently unable to determine the
likelihood that additional material claims arising from the Registered
Representative's conduct will be made. Although the Company believes that a
defense to any additional claims exists, and intends to vigorously defend such
claims if necessary, a negative result in multiple claims could have a material
adverse impact on the Company.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
- --------------------------------------------------------------------------------
OF OPERATIONS
- -------------
Liquidity and Capital Resources
The main sources of liquidity and capital resources for the Company are cash
flows from operations and deferrals of compensation by Registered
Representatives. At March 31, 1998, the Company had net working capital of
$2,909,630, a decrease of $2,144,668 from the $5,054,298 of working capital at
September 30, 1997. The decrease in working capital is primarily the result of
the Company's focus on upgrading information systems, hosting its national
education convention in December and relocating its corporate headquarters.
The Company's cash flows provided by operating activities was $2,360,406 for the
six months ended March 31, 1998, compared to net cash provided by operating
activities of $2,135,079 during the six months ended March 31, 1997. Cash
provided by operations increased primarily due to the increase in net receipts
of commissions. Net receipts of commissions were partially offset by increased
costs in system implementation and the costs to relocated the Company's
corporate headquarters.
Cash used for investing activities for the purchase of property and equipment
included costs incurred for furniture, fixtures and computer equipment. These
costs were $975,448 and $210,152 for the six months ended March 31, 1998 and
1997, respectively. Furniture, fixtures and computer equipment expenditures
increased due to the Company's corporate relocation and to their focus on
upgrading information processing equipment. The Company also capitalized
$1,361,933 and $22,553 for software acquisition and development during the six
months ended March 31, 1998 and 1997, respectively. Software development has
increased due to the Company's growth and focus on upgrading its information
processing capabilities.
Cash provided by financing activities during the six months ended March 31, 1998
was $464,843 compared to cash provided by financing activities of $57,813 during
the six months ended March 31, 1997. The increase of net cash provided by
financing activity is primarily the result of net receipts from related parties
of $326,967 for the six months ended March 31, 1998 compared to net advances to
related parties of $50,403 for the six months ended March 31, 1997. Proceeds
from deferred compensation also increased to $522,844 for the six months ended
March 31, 1998 compared to proceeds from deferred compensation of $264,577 for
the six months ended March 31, 1997. Offsetting the positive cashflow from net
receipts from related parties and proceeds from deferred compensation are
payments of capital lease obligations of $321,200 for the six months ended March
31, 1998 compared to payments of
12
<PAGE>
lease obligations of $208,219 for the six months ended March 31, 1997.
Results of Operations
Revenues-
The Company's revenues for the six months ended March 31, 1998, were
$53,604,065, a 35% increase over the six months ended March 31, 1997. Revenues
are directly related to the number of Registered Representatives and their
experience in the financial planning and sales industry. Additionally, the
Company believes that the increase in revenues is due in part to continued
strength in overall financial markets and to the Company's commitment to train
Representatives in diversification and long-term investing activities.
Due to the declining trend of commission revenue as a percentage of gross
product sales, the Company has continued to devote resources to the continued
development of its fee-based programs. Portfolio management fees were $7,508,518
for the six months ended March 31, 1998, a 49% increase over the six months
ended March 31, 1997. As Representatives switch client investment strategies
from front-end sales charge investments (i.e., mutual funds) to fee-based
investments, ongoing portfolio management fees will replace commission revenue.
Although this investment strategy eliminates commission revenues at the time of
the original transaction, the Company has the potential to earn greater revenues
from continued portfolio management fees. Portfolio management fees are earned
quarterly on client funds that remain invested in fee-based programs, compared
to the one-time front-end sales charge on mutual fund investments.
Net Income -
Net income for the six months ended March 31, 1998, was $866,718 a decrease of
$518,358 compared to net income of $1,385,076 for the six months ended March 31,
1997.
Commission expense for the six months ended March 31, 1998 was $29,515,112, a
37% increase compared to commission expense of $21,509,606 for the six months
ended March 31 1997. Portfolio management fee expense for the six months ended
March 31, 1998 was $4,911,279, a 57% increase compared to portfolio management
fee expense of $3,130,167 for the six months ended March 31 1997. The increase
in commission expense and advisory service fees is primarily related to the
increase in revenues on an overall basis and on a per Representative basis.
13
<PAGE>
General and administrative expenses increased by $4,072,011 to $12,660,256 for
the six months ended March 31, 1998, compared to the same period for the prior
year. The increase in general and administrative costs is substantially due to
an increase in revenue, but is also impacted by nonrecurring costs of $572,000
associated with the relocation of the Company's corporate headquarters, as well
as increased costs to improve the Company's utilization of technology.
Representative development costs for the six months ended March 31, 1998, were
$4,054,294, a 30% increase related to development costs of $3,124,282 for the
six months ended March 31, 1997. This increase in Representative development
costs is the result of the Company's focus on the development of programs to
educate the Company's Representatives as well as the expansion of staff
necessary to support participation in these programs. Increased costs associated
with the Company's national education convention and the introduction of the
Representative mentoring program also contributed to the increased
Representative development costs.
Representative recruiting costs for the six months ended March 31, 1998, were
$882,373, an 58% increase compared to recruiting costs of $560,128 for the six
months ended March 31, 1997. This increase in recruiting cost is the result of
an increase in direct mail and other recruiting methods used to find prospective
Representatives. To the extent that the Company decides in the future to devote
significant resources to rapidly expand its Representative base through
aggressive recruiting activities, future profitability would likely be
negatively impacted.
14
<PAGE>
PART II OTHER INFORMATION
- --------------------------
ITEM 1. LEGAL PROCEEDINGS
- --------------------------
In September 1997, litigation was initiated against the Company and H.D. Vest
Investment Securities, Inc. in regard to the activities of a former Registered
Representative. As of March 31, 1998 the plaintiffs seek recovery for alleged
out-of-pocket losses totaling approximately $450,000. In addition, the
plaintiffs seek recovery for treble and punitive damages as well as recovery for
pain and suffering. As of May 15, 1998, additional claims alleging out-of-pocket
losses of approximately $400,000 were made against the Company, although the
claims have not proceeded to litigation. The Company believes it has a defense
against all claims and intends to vigorously defend them. The Company is
currently unable to determine the likelihood that additional material claims
arising from the Registered Representative's conduct will be made. Although the
Company believes that a defense to any additional claims exists, and intends to
vigorously defend such claims if necessary, a negative result in multiple claims
could have a material adverse impact on the Company.
Reference is made to Item 3 of the Company's Annual Report to Shareholders on
Form 10-K for the fiscal year ended September 30, 1997.
ITEM 5. OTHER INFORMATION
- --------------------------
Year 2000 - The Company recognizes the need to ensure that its operations will
- ---------
not be adversely impacted by "Year 2000" software failures. The Year 2000 issue
arises because most computer systems and programs were designed to handle only a
two-digit year, not a four-digit Year. When the year 2000 begins, these computer
systems and programs may interpret "00" as the year 1900 (e.g., 1997 is seen as
"97") and either stop processing date-related computations or process them
incorrectly. Policies and procedures are being established for the evaluation
and management of risks associated with this issue. The Company is in the
process of communicating with suppliers, sponsors, financial institutions and
others with which it does business to identify and determine appropriate action.
Management does not anticipate a material effect on customers or disruption of
business operations as a result of Year 2000 software failure. The Company is
currently upgrading or replacing many of its information systems for operational
purposes. Therefore, management currently believes, any internal Year 2000
issues will be insignificant. The Company does not anticipate there to be
material costs associated with achieving Year 2000 compliance over the costs of
normal software upgrades and replacements.
15
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
No reports on Form 8-K were filed during the quarter ended March 31, 1998.
Exhibit 27.1 Financial Data Schedule for the six months ended March 31, 1998
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
H. D. VEST, INC.
-------------------------
(Registrant)
Date: May 15, 1998 By: s\ Herb D. Vest
------------------------
Herb D. Vest
Chief Executive Officer,
Chairman of the Board
Date: May 15, 1998 By: s\ Wesley Ted Sinclair
------------------------
Wesley Ted Sinclair
Chief Financial Officer,
Vice President (PrincipaL
Financial and )Accounting
Officer
17
<TABLE> <S> <C>
<PAGE>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAR-31-1998
<CASH> 6,839,018
<RECEIVABLES> 9,711,859
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 0
<PP&E> 7,367,565
<TOTAL-ASSETS> 24,619,609
<SHORT-TERM> 0
<PAYABLES> 12,305,931
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 0
<LONG-TERM> 4,462,167
0
1,500,402
<COMMON> 271,167
<OTHER-SE> 6,079,942
<TOTAL-LIABILITY-AND-EQUITY> 24,619,609
<TRADING-REVENUE> 0
<INTEREST-DIVIDENDS> 326,916
<COMMISSIONS> 41,523,907
<INVESTMENT-BANKING-REVENUES> 0
<FEE-REVENUE> 7,508,518
<INTEREST-EXPENSE> 112,209
<COMPENSATION> 8,405,381
<INCOME-PRETAX> 1,468,542
<INCOME-PRE-EXTRAORDINARY> 1,468,542
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 866,718
<EPS-PRIMARY> 0.15
<EPS-DILUTED> 0.14
</TABLE>
