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 September 30, 1997
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: (732) 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
9,218,354 Common Shares, no par value were outstanding as of November 13,
1997.
Page 1 of 13
<PAGE>
02
FIRST MONTAUK FINANCIAL CORP.
FORM 10-Q
SEPTEMBER 30, 1997
INDEX
Page
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Statement of Financial Condition
as of September 30, 1997 and December 31, 1996 ................. 3
Consolidated Statement of Income for the
Nine Months ended September 30, 1997 and 1996
and Three months ended September 30, 1997 and 1996 .............. 4
Consolidated Statement of Cash Flows for the
Nine Months ended September 30, 1997 and 1996 .................. 5
Notes to Financial Statements ................................... 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations .....................7-8
PART II. OTHER INFORMATION:
Item 5. Other Information.......................................... 9
Item 6. Exhibits and Reports on Form 8-K........................... 9
Signatures......................................................... 10
<PAGE>
03
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
<TABLE>
September 30, December 31,
ASSETS 1997 1996
<S> <C> <C>
Cash $ 910,808 $ 1,069,548
Securities owned, at market 2,748,318 2,129,435
Commissions receivable 781,576 720,381
Due from clearing firm 1,953,509 1,301,457
Income tax refund receivable 203,480 -
Employee and broker receivables 751,515 741,603
Fixed assets-net 1,186,191 1,200,933
Due from officers 142,742 171,978
Other assets 1,254,046 854,536
Deferred tax asset 466,498 552,168
------------- ---------------
Total assets $ 10,398,683 $ 8,742,039
============= ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Securities sold, but not
yet purchased, at market $ 165,677 $ 127,627
Loans payable-bank 366,911 458,305
Commissions payable 1,876,488 1,552,218
Accounts payable 442,208 494,697
Accrued expenses 442,321 1,811,897
Other liabilities 232,602 180,516
Liabilities subordinated to
claims of general creditors 250,000 -
------------- ---------------
Total liabilities 3,776,207 4,625,260
------------- ---------------
Common stock issued with
guaranteed selling price -
no par value, 173,000 and
210,500 shares issued and
outstanding, respectively 346,500 421,500
Commitments and contingencies
(See Notes)
Stockholders' equity
Preferred Stock, 5,000,000
shares authorized, $.10 par
value, no shares issued and
outstanding - -
Common Stock, no par value,
30,000,000 shares authorized,
9,202,354 and 8,222,481 shares
issued and outstanding,
respectively 4,187,892 3,588,273
Additional paid-in capital 911,871 243,961
Retained earnings 1,176,213 93,551
------------- ---------------
6,275,976 3,925,785
Less: 196,802 shares in
treasury, at cost - (230,506)
------------- ---------------
Total stockholders'
equity 6,275,976 3,695,279
------------- ---------------
Total liabilities and
stockholders' equity $ 10,398,683 $ 8,742,039
============= ===============
</TABLE>
See notes to financial statements.
<PAGE>
04
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
Nine months ended Three months ended
September 30, September 30,
1997 1996 1997 1996
Revenues:
<S> <C> <C> <C> <C>
Commissions $ 19,508,612 $ 19,299,827 $ 7,345,703 $ 5,478,920
Principal
transactions 5,270,309 6,663,900 2,393,556 1,143,117
Investment banking 314,549 482,663 89,403 213,247
Insurance recovery 650,000 - - -
Interest and other
income 880,263 735,389 325,437 233,853
------------ ------------ ------------ -------------
26,623,733 27,181,779 10,154,099 7,069,137
------------ ------------ ------------ -------------
Expenses:
Commissions, employee
compensation and
benefits 18,969,519 19,333,288 7,241,558 5,156,889
Clearing and floor
brokerage 2,143,341 2,484,658 862,363 544,460
Communications and
occupancy 1,379,534 1,150,870 497,140 431,887
Legal matters and
related costs 935,448 1,381,077 268,107 1,112,073
Other operating
expenses 1,303,776 1,558,927 396,968 368,890
Interest 72,230 80,436 18,407 22,358
------------ ------------ ------------ -------------
24,803,848 25,989,256 9,284,543 7,636,557
------------ ------------ ------------ -------------
Income (loss) before
income taxes 1,819,885 1,192,523 869,556 (567,420)
Income taxes (benefit) 737,223 486,852 352,110 (233,225)
------------ ------------ ------------ -------------
Net income (loss) $ 1,082,662 705,671 $ 517,446 $ (334,195)
============ ============ ============ =============
Per share of
Common Stock:
Net income (loss) $ 0.11 $ 0.08 $ 0.05 $ (0.04)
============ ============ ============ =============
Number of shares 10,241,383 8,553,032 10,517,729 7,943,339
============ ============ ============ =============
</TABLE>
See notes to financial statements.
<PAGE>
05
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
Nine months ended September 30,
1997 1996
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,082,662 $ 705,671
Adjustments to reconcile net income
to net cash used in operating activities:
Common stock issued with guaranteed
selling price 28,125 335,000
Depreciation and amortization 236,450 168,800
Due from clearing firm (652,052) -
Commissions receivable (61,195) (528,207)
Securities owned - at market (618,883) 3,076,791
Income tax refund receivable (203,480) -
Other assets ( 52,606) (573,615)
Deferred income taxes 753,580 369,173
Due to clearing firm - (1,331,406)
Securities sold but not yet purchased 38,050 31,201
Commissions payable 324,270 24,184
Accounts payable (52,489) (107,122)
Accrued expenses (1,119,576) (426,342)
Income taxes payable - (607,172)
Other liabilities 52,086 (67,135)
------------- ------------
Total adjustments (1,327,720) 364,150
------------- ------------
Net cash provided by (used in)
operating activities (245,058) 1,069,821
------------- ------------
Cash flows from investing activities:
Due from officers 29,236 (30,007)
Employee and broker receivables (9,912) (456,572)
Investment in ECM - (24,000)
Other assets (257,500) -
Capital expenditures (221,708) (440,974)
------------- ------------
Net cash used in investing activities (459,884) (951,553)
------------- ------------
Cash flows from financing activities:
Other assets (89,404) -
Proceeds from bank loan - 179,625
Purchase of common stock - 28,731
Repurchase of common stock - (147,016)
Proceeds from exercise of common
stock options 727,000 -
Payment of loans payable (91,394) (43,400)
------------- ------------
Net cash provided by financing activities 546,202 17,940
------------- ------------
Net increase (decrease) in cash (158,740) 136,208
Cash at beginning of year 1,069,548 845,471
------------- ------------
Cash at end of period $ 910,808 $ 981,679
============= ============
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest $ 72,230 $ 80,436
Income taxes $ - $ 1,019,000
Noncash transactions:
Shares issued with guaranteed
resale price $ 28,125 $ 335,000
Tax benefit from exercise of
stock options $ 667,910 $ -
Liabilities subordinated to claims of
general creditors $ 250,000 -
</TABLE>
See notes to financial statements.
<PAGE>
06
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEM*ENTS
SEPTEMBER 30, 1997
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, 1997 and 1996. The preparation of financial statements in conformity with
GAAP requires the Company to make estimates and assumptions that affect the
reported amounts of revenues and expenses during the reporting period. Actual
results could vary from these estimates. These financial statements should be
read in conjunction with the Company's audited financial statements at, and for
the year ended December 31, 1996.
The results reflected for the nine-month period ended September 30, 1997,
are not necessarily indicative of the results for the entire fiscal year to end
on December 31, 1997.
NOTE 2 - EARNINGS PER SHARE
Earnings 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. The difference between primary and fully diluted
earnings per share is not material.
NOTE 3 - STOCK OPTIONS
During the nine-month period ended September 30, 1997, a total of 836,175
options issued under the Company's stock option plans were exercised. The
Company received proceeds of $564,500 from these transactions. The exercise of
the options have also produced benefits to the Company in the form of tax
deductible compensation expense totalling $1,581,000. In connection with these
deductions, the Company has recorded a deferred tax asset of $668,000 with an
offsetting credit to additional paid-in capital as provided by applicable
accounting rules.
The Company also issued a total of 1,429,500 stock options during the
nine-month period.
NOTE 4 - NET CAPITAL REQUIREMENTS
FMSC is subject to the Securities and Exchange Commission Uniform Net
Capital Rule (Rule 15c3-1), which requires FMSC to the maintenance of minimum
net capital, as defined. At September 30, 1997, FMSC had net capital and minimum
net capital requirements of $2,424,041 and $250,000, respectively. FMSC's ratio
of aggregate indebtedness to net capital was 1.26 to 1.
NOTE 5 - LEGAL MATTERS
In January 1997, the Company and its broker-dealer subsidiary, FMSC,
entered into an agreement to settle a customer lawsuit for a total of $750,000.
A payment of $500,000 was made upon settlement; FMSC has issued a five-year note
for the $250,000 balance, payable in installments of $50,000 per year plus
interest at the rate of 8% per annum. The NASD recently approved FMSC's
application to subordinate the loan for net capital purposes.
The Securities and Exchange Commission has accepted an Offer of Settlement
submitted by FMSC relating to the activities of a former affiliate office. The
settlement involves the payment of a $50,000 fine, the disgorgement of profits
amounting to $175,000 plus interest, and the censure and suspension of one of
the Company's principals. The SEC has informally agreed to credit the
disgorgement against amounts already due in settlement of related civil
litigation. The Offer also requires FMSC to engage an independent compliance
examiner to audit the firm's compliance procedures. FMSC has agreed to implement
recommendations contained in the examiner's report.
In January 1997, the Company and FMSC settled a pending customer
arbitration for $500,000 in cash. The Company further agreed to issue to the
customer and her counsel a total of 150,000 five-year warrants to purchase the
Company's Common Stock for $1.25 per share. The warrantholders have exercised a
total of 130,000 warrants to date.
The Company is presently reviewing the extent to which settled and pending
claims may be covered under its insurance policies. In January 1997, the Company
negotiated a $650,000 settlement with one of its insurance carriers in
consideration of a general release from coverage on various matters. Discussions
with other carriers are continuing. There can be no assurance that the Company
will be successful in its efforts to recover additional funds from its insurers
on claims filed to date.
<PAGE>
07
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Operating results for the quarter ended September 30, 1997 showed a strong
improvement over the comparable 1996 quarter as well as over the first half of
the current fiscal year. The Company reported total revenues of $10,154,000 for
the 1997 quarter against $7,069,000 in 1996, increasing 1997 year-to-date
revenues to $26,624,000 versus $27,182,000 in the 1996 nine-month period.
Revenues had dropped off from 1996 levels earlier in the year partially as a
result of management's decision to terminate certain brokers as part of a
program to reduce legal and regulatory exposure.
Revenues gained in the two key categories of commissions and principal
transactions during the three months ended September 30, 1997. Quarterly
commissions increased by 34% in 1997 to $7,346,000 as compared to $5,479,000 in
1996 due to a particularly strong contribution from agency sales of listed and
over-the-counter equity securities. The Company clearly benefited from the
continued record gains and volume levels generated by the U.S. stock markets
during the 1997 quarter. The Company has also begun to reap the benefits of
affiliate recruitment efforts that began earlier in the year.
Revenues from principal transactions increased by $1,250,000, or 109%, in
the 1997 quarter versus the 1996 quarter. The increase was due to a combination
of higher transactions volume in the 1997 quarter as well as to a recovery in
the performance of the Company's equity trading portfolio. Nine month revenues
in 1997 of $5,270,000 remained below 1996 levels of $6,664,000 due to the
exceptional gains reported in the first half of 1996 and the disappointing
results from market-making and trading activities in the first half of 1997.
During the nine months ended September 30, 1997, the Company incurred
commissions, employee compensation and fringe benefits of $18,970,000 (71% of
total revenues) as compared to $19,333,000 (71% of total revenues) in the
comparable 1996 period. Commissions paid to registered representatives for 1997
were $15,889,000 (60% of total revenues) versus $16,692,000 (61% of total
revenues) in 1996. Commission compensation is directly related to the level of
revenues generated from firm trading, agency and investment banking activities,
as well as the relative production of affiliates and in-house brokers during a
given period. Affiliates generally receive higher payouts than in-house brokers
but are responsible for their own overhead costs. Salaries for management,
operations and clerical personnel totalled $2,510,000 for the nine months ended
September 30, 1997 as compared to $2,062,000 for the comparable 1996 period.
Staff salaries have been trending upward due to overall business expansion. The
Company added personnel to its marketing, compliance and operations departments
during the 1997 quarter.
Clearing and floor brokerage costs declined from $2,485,000 in 1996 (9% of
revenues) to $2,143,000 in 1997 (8% of total revenues) due primarily to above
average business activity in the first half of 1996. The Company also negotiated
a more favorable fee structure with its clearing firm in late 1996. On a
quarterly basis, however, these costs increased from $544,000 in 1996 to
$862,000 in 1997 due to the increase in transaction volume in the September 1997
quarter. The percentage of clearing and floor brokerage costs to total revenue
will fluctuate somewhat depending upon the mix of agency and principal business,
as well as the average revenue per ticket in a given period.
Communications and occupancy costs rose by $229,000 to $1,380,000 for the
nine months ended September 30, 1997. 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. The growth in this category is expected to moderate somewhat due to
recently negotiated lower telephone rates, and with the impending
discontinuation of the Compan's wide area network. The Company does, however,
expect occupancy costs to increase with the continuing expansion of its home
office.
Legal matters and related costs decreased by $446,000 to $935,000 and by
$844,000 to $268,000 in the nine-month and three-month periods ended September
30, 1997. This category includes payments to settle customer claims,
professional fees and other defense costs, and provisions for pending
litigation. The Company settled significant claims relating to its securities
business in 1996 and early 1997. In March 1997, the Company received a $650,000
cash settlement from one of its insurance carriers. The Company is presently
reviewing the extent to which settled and pending claims may be covered under
other insurance policies. There can be no assurance that the Company will be
successful in its efforts to recover additional funds from these insurers.
Other operating expenses decreased from $1,559,000 (6% of revenues) in 1996
to $1,304,000 (5% of revenues) in 1997. The decrease was due primarily to a
temporary reduction in marketing and advertising costs associated with the
Company's affiliate recruitment program. Management has recently embarked on a
new recruitment campaign, the costs of which will begin to appear in the next
quarter.
The Company's securities business continues to be sensitive to general
economic conditions, particularly the interest rate and corporate earnings
environment, as well as the outlook of retail investors on global financial
markets. These markets have recently become more uncertain and volatile.
<PAGE>
08
Liquidity and Capital Resources
The balances in the Company's cash, clearing firm and securities inventory
accounts can, and do fluctuate significantly from day to day, depending on
market conditions, daily trading activity and investment opportunities. Cash
decreased by $158,000 from December 31, 1996 to September 30, 1997. Net cash
used in operations was $245,000. Net income of $1,083,000 and depreciation
expense and other noncash charges of $265,000 were more than offset by increases
in securities inventories of $581,000 and reductions in current liabilities of
$848,000.
Cash used in investing activities totalled $460,000 in the first nine
months of 1997. The Company has purchased approximately $222,000 of fixed assets
since the beginning of the fiscal year. In the current quarter, the Company's
leasing subsidiary, Montauk Advisors, Inc. ("MAI") made loans of $258,000 to
Global Financial Corp., the financing company which packages and sells leasing
contracts through MAI. The purpose of the loans was to assist Global with its
short-term cash flow requirements. The loans carry interest at 8% per annum and
are due in full on April 1, 1998. Global may seek additional loans from MAI in
the short-term, which requests will be considered by the Company on a
case-by-case basis. In October, the Company loaned an additional $112,000 to
Global. This loan also matures in April 1998.
Financing activities provided cash of $546,000 in the nine-month period.
The Company has received proceeds of $565,000 to date from the exercise of
common stock options. During the current quarter, the Company also received
$162,000 from the exercise of common stock purchase warrants issued in
settlement of a customer complaint. During the second quarter, the National
Association of Securities Dealers Regulation, Inc. approved a subordinated loan
agreement between the Company and a creditor in the amount of $250,000. The five
year loan carries interest of 8% per annum and is payable in five annual
installments of $50,000 plus accrued interest on April 1 of each of the next
five years. The principal amount had originally been recorded as an accrued
expense in 1996.
The Company is planning a rights offering of Units to holders of record of
its common stock on a date to be determined during the fourth quarter of 1997.
Each Unit will consist of three Redeemable Common Stock Purchase Warrants
exercisable at prices of $3.00, $5.00, and $7.00 per share, respectively. If
fully subscribed, the offering of Units will raise gross proceeds of
approximately $1,382,000 based on a Unit subscription price of $.45 and the
issuance of approximately 3,071,000 Units. The Company cannot give assurance
that the offering will occur, or that if it does occur, that it will be fully
subscribed.
The Company believes that its current liquidity, together with the cash
flows expected to be generated by operations will be sufficient to meet its cash
needs for working capital and capital expenditures for the foreseeable future.
<PAGE>
09
PART II
OTHER INFORMATION
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 11. Computation of Earnings Per Share
for the Nine Months Ended September 30, 1997
and 1996 and the Three Months Ended September 30,
1997 and 1996.
(b) Reports on Form 8-K
There were no reports on Form 8-K filed.
<PAGE>
10
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 13, 1997 /s/ William J. Kurinsky
------------------------
William J. Kurinsky
Secretary/Treasurer
Chief Financial Officer and
Principal Accounting Officer
/s/ Herbert Kurinsky
-----------------------
Herbert Kurinsky
President
<PAGE>
11
EXHIBIT INDEX
Exhibit 11. Computation of Earnings Per Share
for the Nine Months Ended September 30, 1997
and 1996 and the Three Months Ended September 30,
1997 and 1996.
Exhibit 27 - Financial Data Schedule
<PAGE>
12
FIRST MONTAUK FINANCIAL CORP.
COMPUTATION OF EARNINGS PER SHARE
Exhibit 11
Nine Months Three Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
Primary
Net income
(loss) (a) $ 1,082,662 $ 705,671 $ 517,446 $ (334,195)
=========== ========== ========== ===========
Weighted average
number of common
shares outstanding 8,860,543 7,943,171 9,091,749 7,943,339
Assuming exercise
of options reduced
by the number of
shares which could
have been purchased
with the proceeds
from the exercise
of such options 1,380,840 609,861 1,425,980 0
----------- ---------- ---------- -----------
Weighted average
number of common
shares outstand-
ing, as adjusted 10,241,383 8,553,032 10,517,729 7,943,339
=========== ========== =========== ===========
Primary earnings
per share (a) $ 0.11 $ 0.08 $ 0.05 $ (0.04)
=========== =========== =========== ===========
Additional primary
- - ------------------
computation
- - -----------
Net income (loss),
per primary computa-
tion above $ (334,195)
===========
Additional adjustment to
weighted average number
of shares outstanding:
Weighted average number of shares
outstanding, as adjusted per
primary computation above 7,943,339
Add-Dilutive effect of outstanding
options and warrants (as determined
by the application of the treasury
stock method) 1,082,562
-----------
Weighted average number of shares
outstanding, as adjusted 9,025,901
===========
Primary earnings per share, as adjusted (b) $ (0.04)
===========
<PAGE>
13
Exhibit 11
Nine Months Three Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
Fully diluted
- - -------------
Net income, as above $ 1,082,662 $ 705,671 $ 517,446 $ (334,195)
============ =========== ============= ===========
Reconciliation of
weighted average
number of shares out-
standing, as adjusted
per primary computation
above, to amount used
for fully diluted computation
Weighted average number of
shares outstanding, as
adjusted per primary
above 10,241,383 8,553,032 10,517,729 7,943,339
Additional dilutive
effect of outstanding
options and warrants
(as determined by the
application of the
treasury stock
method) 46,018 81,108 0 0
------------ ---------- ------------ -----------
10,287,401 8,634,140 10,517,729 7,943,339
============ ========== ============ ===========
Net income (loss)(c) $ 0.11 $ 0.08 $ 0.05 $ (0.04)
============ =========== ============= ===========
(a) These figures agree with the related amounts in the Statement
of Income.
(b) This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although it is contrary to paragraph 40 of APB Opinion No.
15 because it produces an anti-dilutive result.
(c) This calculation is submitted in accordance with Regulation S-K
item 601(b)(11) although not required by footnote 2 to paragraph 14
of APB Opinion No. 15 because it results in dilution of less than 3%.
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000083125
<NAME> First Montauk Financial Corp.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jul-1-1997
<PERIOD-END> Sep-30-1997
<CASH> 911
<RECEIVABLES> 2,735
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 2,748
<PP&E> 1,186
<TOTAL-ASSETS> 10,399
<SHORT-TERM> 0
<PAYABLES> 2,993
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 166
<LONG-TERM> 617
0
0
<COMMON> 4,188
<OTHER-SE> 2,088
<TOTAL-LIABILITY-AND-EQUITY> 10,399
<TRADING-REVENUE> 2,394
<INTEREST-DIVIDENDS> 325
<COMMISSIONS> 7,346
<INVESTMENT-BANKING-REVENUES> 89
<FEE-REVENUE> 0
<INTEREST-EXPENSE> 18
<COMPENSATION> 7,242
<INCOME-PRETAX> 870
<INCOME-PRE-EXTRAORDINARY> 870
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 517
<EPS-PRIMARY> .05
<EPS-DILUTED> .05
</TABLE>
