SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
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. 0-6729 FIRST MONTAUK
FINANCIAL CORP. (Exact name of registrant as specified in its charter) New
Jersey 22-1737915 (State or other jurisdiction of (I.R.S. Employer incorporation
or organization) Identification Number) Parkway 109 Office Center, 328 Newman
Springs Rd., Red Bank, NJ 07701 (Address of principal executive offices) (Zip
Code) Registrant's telephone number, including area code: (908) 842-4700 Former
name, former address and former fiscal year, if changed since last report.
Indicate by check mark whether the Registrant (l) 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 8,169,479 Common Shares, no par
value were outstanding as of November 14, 1996.
<PAGE>
FIRST MONTAUK FINANCIAL CORP.
FORM 10-QSB
SEPTEMBER 30, 1996
INDEX
Page
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Statement of Financial Condition
as of September 30, 1996 and December 31, 1995 .............. 3
Consolidated Statement of Income for the
Nine Months ended September 30, 1996 and 1995
and Three months ended September 30, 1996 and 1995 ........... 4-5
Consolidated Statement of Cash Flows for the
Nine Months ended September 30, 1996 and 1995 ............. 6-7
Notes to Financial Statements................................ 8-11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations .............. 12-15
PART II. OTHER INFORMATION:
Item 5. Other
Information............................................................ 16-17
Item 6. Exhibits and Reports on Form 8-K..................... 17
Signatures.................................................... 18
<PAGE>
FIRST MONTAUK FINANCIAL CORP.
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
September 30, December 31,
ASSETS 1996 1995
Cash and cash equivalents $ 981,679 $ 845,471
Securities owned, at market 4,037,716 7,114,507
Commissions receivable 912,075 383,868
Employee and broker receivables 814,097 357,525
Fixed assets-net 1,076,842 804,668
Notes receivable - ECM 282,000 282,000
Due from officers 185,531 155,524
Other assets 771,846 174,231
Deferred tax asset - 369,173
------------------ --------------------
Total assets $ 9,061,786 $10,486,967
================== ====================
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Due to clearing firm $ 974,626 $ 2,306,032
Securities sold, but not yet 197,583 166,382
purchased, at market
Loans payable-bank 183,769 47,544
Commissions payable 1,491,374 1,467,190
Accounts payable 282,190 389,312
Accrued expenses 965,773 1,392,115
Income taxes payable 14,518 621,690
Other liabilities 428,621 495,756
------------------ --------------------
Total liabilities 4,538,454 6,886,021
------------------ --------------------
Shares issued with guaranteed 335,000 -
resale price
Commitments and contingent
liabilities (See Notes)
Stockholders'
equity
Preferred Stock, 5,000,000 shares
authorized, $.10 par value, no shares
issued and outstanding - -
Common Stock, no par value,
15,000,000 shares authorized
8,018,279 and 7,959,281 shares
issued and outstanding,
respectively 3,201,727 3,320,012
Additional paid-in capital 220,172 220,172
Retained earnings 766,433 60,762
------------------ --------------------
Total stockholders' equity 4,188,332 3,600,946
------------------ --------------------
Total liabilities and $ 9,061,786 $ 10,486,967
stockholders' equity ================== ====================
See notes to financial statements.
<PAGE>
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Nine months ended September 30,
1996 1995
Revenues
Net firm trading gains $ 6,663,900 $ 6,947,684
Commissions 19,299,827 12,198,847
Investment banking 482,663 194,855
Interest and other income 735,389 647,065
other income
------------------ --------------------
27,181,779 19,988,451
------------------ -------------------
Expenses
Commissions, employee compensation 19,333,288 13,746,682
Clearing and floor brokerage 2,484,658 2,258,753
Communications and occupancy 1,150,870 869,677
Other operating expenses 2,940,004 1,618,416
Interest 80,436 158,615
------------------ -------------------
Income (loss) before income taxes 1,192,523 1,336,308
Income taxes 486,852 533,431
--------------- ----------------
Net income (loss) $ 705,671 $ 802,877
================= ===================
Per share of
Common Stock:
Net income $ 0.08 $ 0.10
================ =================
Number of shares 8,553,032 8,220,032
================== ====================
See notes to financial statements.
<PAGE>
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Three months ended September 30,
1996 1995
Revenues
Net firm trading gains $ 1,143,117 $ 2,826,631
Commissions 5,478,920 5,055,209
Investment banking 213,247 63,898
Interest and other income 233,853 199,239
------------------ --------------------
7,069,137 8,144,977
----------------- --------------------
Expenses
Commissions, employee compensation 5,156,889 5,533,745
and benefits
Clearing and floor brokerage 544,460 967,006
Communications and occupancy 431,887 336,895
Other operating expenses 1,480,963 654,228
Interest 22,358 39,775
------------------ --------------------
7,636,557 7,531,649
------------------ --------------------
Income (loss) before income taxes (567,420) 613,328
Income taxes (233,225) 247,615
------------------ --------------------
Net income (loss) $ (334,195) 365,713
================== ====================
Per share of Common Stock:
Net income $ (0.04) $ 0.05
================== ====================
Number of shares 7,943,339 8,005,739
================== ====================
See notes to financial statements.
<PAGE>
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
Nine months ended September 30,
1996 1995
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
Cash flows from operating activities:
Net income $ 705,671 $ 802,877
Adjustments to reconcile net
income to net cash used in
operating activities:
Depreciation and amortization 168,800 121,405
Shares issued with guaranteed 335,000 -
resale price
Commissions receivable (528,207) (159,584)
Securities owned - at market 3,076,791 (1,330,883)
Other assets (573,615) (259,695)
Deferred income taxes 369,173 28,204
Due to clearing firm (1,331,406) (1,800,074)
Securities sold but not yet 31,201 1,282,279
purchased
Commissions payable 24,184 676,522
Accounts payable (107,122) 586,563
Accrued expenses (426,342) -
Income taxes payable (607,172) 327,145
Other liabilities (67,135) 113,362
------------------ --------------------
Total adjustments 364,150 (414,756)
------------------ --------------------
Net cash provided by 1,069,821 388,121
operating activities ------------------ --------------------
Cash flows from investing activities:
Due from officers (30,007) (6,177)
Employee and broker receivables (456,572) 38,180
Investment in ECM (24,000) -
Capital expenditures (440,974) (218,111)
------------------ --------------------
Net cash used in (951,553) (186,108)
investing activites
------------------ --------------------
Cash flows from financing activities:
Proceeds from bank loan 179,625 -
Payment of loans payable (43,400) (19,450)
Purchase of common stock 28,731 1,680
Repurchase of common stock (147,016) (89,238)
Stock registration costs - (2,815)
------------------ --------------------
Net cash provided by (used 17,940 (109,823)
in) financing activities ------------------ --------------------
Net increase in cash and cash 136,208 92,190
equivalents
Cash and cash equivalents at 845,471 673,951
beginning of year
Cash and cash equivalents at end
of period $ 981,679 $ 766,141
================== ====================
See notes to financial statements.
<PAGE>
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Continued)
Nine months ended September 30,
1996 1995
Supplemental disclosures
of cash flow information:
Cash paid during the
period for:
Interest $ 80,436 $ 158,615
Income taxes $1,019,000 $ 64,470
Noncash transactions:
Shares issued with
guaranteed resale price $ 335,000
See notes to financial statements.
<PAGE>
NOTE 1 - MANAGEMENT REPRESENTATION
The accompanying financial statements are unaudited for the interim period,
but include all adjustments (consisting only of normal recurring accruals) which
management considers necessary for the fair presentation of results at September
30, 1996 and 1995. Moreover, these financial statements do not purport to
contain complete disclosure in conformity with generally accepted accounting
principles and should be read in conjunction with the Company's audited
financial statements at, and for the year ended December 31, 1995. The results
reflected for the nine month and three-month periods ended September 30, 1996,
are not necessarily indicative of the results for the entire fiscal year to end
on December 31, 1996.
NOTE 2 - INCOME PER SHARE
Income per share is computed by dividing net income by the weighted average
number of shares of common stock and common stock equivalents outstanding during
the period. Common stock equivalents include shares issuable upon the exercise
of options. Loss per share is computed by dividing net loss by the weighted
average number of shares outstanding.
NOTE 3 - SECURITIES OWNED AND SECURITIES SOLD BUT NOT YET PURCHASED
Marketable securities owned and sold but not yet purchased consist of
trading securities at quoted market values, as indicated below:
Sold but not
Owned yet purchased
Sept. 30, Dec. 31, Sept. 30 Dec. 31,
1996 1995 1996 1995
Obligations of U.S.
government and
its agencies $ 10,125 $ 163,444 $ -- $ 18,467
State and municipal
obligations 772,485 3,574,616 25,798 44,854
Corporate stocks
and bonds 3,224,793 3,242,516 141,108 103,061
Options
and warrants 30,313 133,931 30,677 --
--------- -------- ------ --------
$4,037,716 $7,114,507 197,583 $166,382
========= ======== ====== ========
NOTE 4 - NOTES RECEIVABLE - ECM
As of September 30, 1996, the Company has loaned a total of $282,000 to
Environmental Coupon Marketing, Inc. ("ECM"), a closely-held marketer of
recycling programs to retailers featuring store coupons and cash incentives to
consumers. The first loan, in the amount of $100,000, bears interest at the rate
of 6% per annum and originally matured on the earlier of a proposed private
placement of ECM securities, or August 9, 1996. The Company elected to defer
repayment beyond the initial closing of ECM's private placement, at least until
a second closing. There is no assurance that a second closing will occur. The
ECM private placement has raised net proceeds of $500,000 to date. The second
loan for $182,000 is non-interest bearing and may be converted into up to
350,000 shares of ECM common stock at the rate of $.52 per share. This loan
originally matured on October 9, 1996, but has been extended for one year. Both
loans are unsecured. The Company has also purchased 210,000 shares of ECM common
stock for $.40 per share, or $84,000. This investment is included in Other
Assets in the accompanying Consolidated Statement of Financial Condition.
<PAGE>
NOTE 5 - ACCRUED EXPENSES
Accrued expenses consist of the following:
Reserves for legal matters $ 685,444
Other 280,329
--------
$ 965,773
========
NOTE 6 - BANK LOAN
In January 1996, the Company borrowed an additional $179,625 from its bank. The
loan is evidenced by a note which is payable in sixty monthly installments of
$2,994 plus interest at the bank's prime rate. The loan is secured by various
equipment. Employment Agreements Effective January 1, 1996, the Company approved
new employment contracts for two of its officers. The contracts will run for
three years, and provide for annual salaries of $175,000 for the first year,
with a provision for a 10% annual increase in the second and third years. The
agreement also provides for a bonus pool of up to 10% of consolidated pre-tax
profits. The bonus pool becomes effective each year only upon the achievement of
pre-tax profits exceeding $500,000. As of September 30, 1996, the officers have
waived all but $40,000 of their accrued bonuses.
Legal Matters
In 1995, the Company's broker-dealer subsidiary, FMSC, was named as a
defendant in a civil suit brought by Escambia County, Florida ("Escambia") for
alleged losses sustained on certain securities purchased from a now defunct
affiliate office of FMSC. On March 28, 1996, without admitting liability or
wrongdoing, FMSC reached an agreement with Escambia to settle the Escambia
claims. Under terms of the agreement, FMSC paid Escambia the sum of $900,000 in
two installments: $600,000 in April 1996 and $300,000 in August 1996. Other
civil suits against the Company have arisen in connection with the activities of
the former affiliate office. These cases are currently pending. At the present
time, the ultimate outcome and/or range of loss from these matters is not
determinable. In addition, the Company is cooperating with the Securities and
Exchange Commission's investigation of the registered representatives of the
former affiliate office. The Company is expected to enter into a settlement
agreement with the SEC. The settlement will likely involve the payment of a
fine and disgorgement of profits, as well as a censure and suspension of one of
FMSC's principals.
FMSC is also a respondent in certain pending customer arbitrations and
civil suits relating to its securities business. These claims are in various
stages of progress and are being vigorously contested by FMSC. The ultimate
outcome and/or range of loss, if any, from these matters is not presently
determinable. Shares issued with guaranteed resale price During the second and
third quarter of 1996, the Company entered into various agreements to settle
customer claims. Under terms of the agreements, the Company has issued a total
of 167,500 restricted shares of its common stock with a guarantee to pay the
difference between $2.00 per share and the sales price of the shares upon
expiration of a two-year holding period. The shareholders may elect to retain
the shares after two years. Such an election will release the Company from any
further obligation. The Company has established a temporary equity account to
record its maximum liability with respect to the shares ($335,000). Payment of
any shortfall will be charged to this account. Any balance in the account will
be credited to permanent capital at the end of the two-year period.
NOTE 8 - NET CAPITAL REQUIREMENTS
FMSC is subject to the Securities and Exchange Commission Uniform Net
Capital Rule (Rule 15c3-1), which requires the maintenance of minimum
net capital, as defined. At September 30, 1996, FMSC had net capital and minimum
net capital requirements of $1,348,382 and $250,000, respectively. FMSC's ratio
of aggregate indebtedness to net capital was 1.86 to 1.
NOTE 9 - STOCK REPURCHASE PLAN
In May 1996, the Company's Board of Directors authorized the repurchase of
up to 500,000 shares of the Company's common stock. As of September 30, 1996,
the Company had repurchased 118,702 shares for total consideration of $147,016.
An additional 68,100 shares have been repurchased subsequent to that date. The
repurchase program is scheduled to expire December 31, 1996.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Liquidity and Capital Resources
During the nine months ended September 30, 1996, the Company's cash
balances increased by $136,208 to $981,679. Operating activities provided net
funds of $1,069,821. Long inventory positions decreased and short inventory
positions increased by $3,076,791 and $31,201, respectively from December 31,
1995 to September 30, 1996. The cash provided by these changes in inventory
levels was offset in part by a reduction in the Company's net debit balances
with its clearing firm by $1,331,406. The balances in the Company's cash,
clearing firm and inventory accounts can fluctuate significantly from day to
day, depending on market conditions, daily trading activity, and investment
opportunities. The Company monitors these accounts on a daily basis in order to
ensure compliance with regulatory capital requirements and to preserve
liquidity. The Company also paid approximately $1,019,000 for 1995 and 1996
income tax liabilities during the 1996 period. Accrued expenses decreased by
$426,342 during the year due to the payment of the $900,000 Escambia settlement
and other legal costs accrued in 1995. However, the Company has provided for
additional reserves in 1996 to cover anticipated costs associated with various
pending legal matters. Certain legal claims arising in 1996 have been settled by
payment of the Company's common stock. In these situations, the Company
generally guarantees a minimum resale price for the stock over a two-year
period, and agrees to make up any shortfall in cash. The Company has issued
167,500 shares to settle claims totalling $335,000 to date in 1996.
Investing activities used cash of $951,553 during the period. The Company
purchased approximately $441,000 of fixed assets for the nine months, consisting
primarily of telecommunications and computer systems, and office improvements.
At the present time, management anticipates additional capital expenditures of
approximately $100,000 for the balance of the year, based on current projections
of equipment and facility requirements. This amount may be subject to change
depending on such factors as the Company's rate of revenue growth, hiring of
additional in-house brokers and traders, and personnel demands to manage higher
transactions volume. Amounts advanced to brokers and affiliates also increased
by $456,572 in 1996. The increase is attributable to loans to new affiliates,
advances to employees, and amounts owed from brokers. The Company also purchased
additional shares in ECM for $24,000, bringing the total investment in ECM to
$366,000 in stock and loans. ECM is a privately-held marketer of recycling
programs. The Company has raised $500,000 to date for ECM through a private
placement of ECM securities, and has extended the maturity dates of its loans
(see Notes to Financial Statements). Financing activities provided cash of
$17,940 during the nine month period, due primarily to an additional term loan
of $179,625 from the Company's bank to finance equipment purchases. The Company
also commenced a stock buyback program in May 1996. Through September 30, 1996
the Company had repurchased 118,702 shares for total consideration of $147,016.
The Company's board of directors has authorized the repurchase of up to 500,000
shares through December 31, 1996. Management believes the Company's liquidity
needs at least through the next fiscal year will be provided by operating
revenues and margin loans secured by trading inventories under an arrangement
with its clearing broker.
Results of Operations
The Company reported a net loss of $334,195 for the quarter ended September
30, 1996, interrupting the trend of the first two quarters of the year toward
record revenues and earnings. Net income for the nine months ended September 30,
1996 was $705,671 ($.08 per share) as compared with $802,877 ($.10 per share)
for the 1995 period. Revenues slowed to $7,069,137 for the third quarter, as
compared to the record of $11,479,163 set in the June 1996 quarter. Gains from
principal trading and market making operations were $1,143,117 for the September
1996 quarter as compared to $2,826,631 for the comparable 1995 quarter. The
decline was due primarily to losses in over-the-counter equity trading brought
on by weakness in the technology sector in the beginning of the 1996 quarter.
Lower market volume also contributed to the decline in revenues from market
making. Commission income from the sale of listed and over-the-counter
securities, mutual funds, leasing and other agency transactions increased by 8%
over the comparable 1995 period to $5,478,920, but decreased by 29% from the
exceptional June 1996 quarter. The Company's business has been shifting towards
a greater reliance on volume driven revenues, so significant fluctuations in
market volume from quarter-to-quarter are expected to have a more dramatic
impact on earnings. During the nine months ended September 30, 1996, the
Company paid commissions, employee compensation and employee benefits of
$19,333,288 (71% of total revenues) as compared to $13,746,682 (69% of total
revenues) in the 1995 period. This category includes salaries, commission
expense, and fringe benefits for salaried employees. Commissions paid to
registered representatives for the nine months ended September 30, 1996 were
$16,692,340 (61% of total revenues) as compared to $11,882,886 (59% of total
revenues) for the comparable 1995 period. Commission compensation is directly
related to the level of revenues generated from firm trading, agency and
investment banking activities. The dollar increase in 1996 resulted primarily
from a higher volume of agency transactions. Commission expense as a percentage
of total revenues will fluctuate within a narrow range depending upon the mix of
commission-based business and trading profits, as well as the contribution to
revenues from the Company's in-house brokers and affiliate offices. In-house
brokers usually receive a lower commission payout than independent affiliates
but are not generally required to pay their own overhead.
For the nine months ended September 30, 1996 the Company paid salaries of
$2,061,977 for management, operations and clerical personnel, as compared to
$1,397,815 in 1995. This increase was due in part to the growth in year-to-date
revenues, which required additional trading assistants and other personnel for
transactions processing. The Company also added employees to its computer,
marketing and finance departments in the latter part of 1995. Clearing costs
increased from $2,258,753 (11% of revenues) for the nine months ended September
30, 1995 to $2,484,658 (9% of revenues) in 1996 due to higher transactions
volume. The percentage of clearing costs to total revenue will fluctuate
depending upon the combination of agency business and proprietary trading, as
well as the average revenue per transaction in a given period. The Company also
negotiated a more favorable fee structure with its clearing firm in 1996.
Communications and occupancy costs rose by $281,193 to $1,150,870 for the nine
months ended September 30, 1996. The increase is due to higher telephone
charges, market data services, and occupancy expenses resulting from the
addition of trading personnel, in-house brokers and an expansion of operating
facilities. Other operating expenses increased from $1,618,416 (8% of revenues)
in 1995 to $2,940,004 (11% of revenues) in 1996. The increase was due primarily
to an increase in marketing costs associated with the Company's affiliate
recruitment program from $137,000 to $379,000, as well as to an increase in
legal expenses. Legal settlements and related costs rose from $635,000 for the
nine months ended September 30, 1995 to $1,193,000 for the comparable 1996
period. Most of the increase ($834,000) occurred in the current quarter, as the
Company settled a number of customer complaints, and also raised its reserves to
cover future anticipated litigation costs and settlements (See Notes to the
Financial Statements). A number of cases arising from <PAGE>
the activities of one of the Company's former affiliate offices are
currently pending. At the present time, the ultimate outcome and/or range of
loss from these matters is not determinable. While the Company achieved record
revenue and profits growth in the first half of 1996, operating results will
continue to be sensitive to general economic conditions, particularly the
interest rate environment, and the outlook of retail investors on the financial
markets. These markets became more uncertain and volatile in the third quarter
of 1996, and transactions volume, the source of the Company's commission-based
revenues, declined. However, trading losses and legal matters were the primary
causes of the operating loss this quarter. Accordingly, the Company is reviewing
its trading operations with a view towards improving the management of its
trading risks, and is seeking to resolve pending legal claims as expeditiously
as possible.
<PAGE>
PART II
OTHER INFORMATION
Item 5. Other Information.
In May 1996, the Company's Board of Directors authorized the repurchase of
up to 500,000 shares of the Company's common stock. As of November 11 1996, the
Company had repurchased 186,802 shares for total consideration of $219,917.75.
10,200 of those shares were repurchased during the third quarter for an
aggregate purchase cost of $13,638.00. The repurchase program is scheduled to
expire December 31, 1996.
The Company and its subsidiary, First Montauk Securities Corp. (FMSC) and
several of its principals are defendants in two civil law suits and one
arbitration proceeding arising from transactions in
government related securities by former representatives of the now closed
Houston, Texas branch office. These proceedings, described below, involve
circumstances similar to those raised by Escambia County, Florida in a suit
settled earlier this year by FMSC's payment to Escambia of $900,000. Although
FMSC believes it has a meritorious defense to the claims raised in these matters
and is vigorously defending them, an adverse judgment in any of these matters or
in the aggregate, would have a significant and material adverse impact on the
Company.
National Guardian Life Insurance Company of Madison, Wisconsin alleges,
in a suit brought in the United States District Court, Western District of
Wisconsin, that the Company, and its principles, and a former registered
representative are responsible for alleged losses as a result of certain
mortgage-backed securities sold to National Guardian Life. The suit seeks
rescission of the transactions and an unspecified amount of damages.
The City of Painesville, Ohio claims, in a suit filed in the United States
District Court for the Northern District of Ohio, Eastern Division, that the
Company, and its principles, are responsible for fraudulent acts allegedly
committed by several former registered representatives of the Houston office
either individually or through companies they controlled and operated which were
not connected to the Company or any of its subsidiaries. FMSC neither sold any
securities to the City of Painesville, nor did the City maintain a brokerage
account with it. First Montauk is also a respondent in a customer arbitration
brought by two individuals who purchased mortgage-backed securities from one of
the former Houston office registered representatives. The Statement of Claim
alleges misrepresentation in the sale of said securities to the investors who
are seeking to rescind the transaction and cover $343,680.50, plus interest, and
other relief. Also arising from the Houston office situation are investigations
by the Southeast Regional office of the SEC, the NASD, the State of Florida,
Division of Securities and the State's Attorney for the First Circuit of
Florida. FMSC has cooperated with these investigations and expects to enter into
a settlement agreement with the SEC in the near future. The State's Attorney in
Pensacola, Florida has recently indicted four former Houston office
representatives. FMSC is also a respondent in certain pending customer
arbitrations and civil actions relating to its securities business. These claims
are in various stages of progress and are being vigorously contested by FMSC.
The ultimate outcome and/or range of loss, if any, from these matters is not
presently determinable.he ultimate outcome and/or range of loss, if any, from
these matters is not presently determinable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None.
(b) Reports on Form 8-K
There were no reports on Form 8-K filed.
<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.
FIRST MONTAUK FINANCIAL CORP.
(Registrant)
Dated: November 14, 1996 /s/ William J. Kurinsky
William J. Kurinsky
Secretary/Treasurer
Chief Financial Officer and
Principal Accounting Officer
/s/ Herbert Kurinsky
Herbert Kurinsky
President
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