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, 2000
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
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
9,888,627 Common Shares, no par value, were outstanding as of
May 18, 2000.
<PAGE>
02
FIRST MONTAUK FINANCIAL CORP.
FORM 10-Q
MARCH 31, 2000
INDEX
Page
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Statements of Financial Condition
as of March 31, 2000 and December 31, 1999 .................... 3
Consolidated Statements of Income for the
Three Months Ended March 31, 2000 and 1999 .................... 4
Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 2000 and 1999 .................... 5
Notes to Financial Statements .................................. 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations .................... 7-9
PART II. OTHER INFORMATION:
Item 5. Other Information ......................................... 10
Item 6. Exhibits and Reports on Form 8-K ......................... 11
Signatures ....................................................... 12
<PAGE>
03
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<S> <C> <C>
March 31, December 31,
ASSETS 2000 1999
Cash $ 410,537 $ 686,980
Due from clearing firm 8,926,927 6,462,346
Trading and investment account securities 7,286,899 3,475,891
Commissions receivable 208,139 345,996
Global leases receivable 662,784 824,313
Notes receivable 330,884 482,531
Employee and broker receivables 488,091 452,285
Property and equipment - net 2,487,587 2,193,506
Due from officers 130,868 132,754
Deferred tax asset-net 849,884 664,256
Other assets 1,554,620 1,338,326
--------- ---------
Total assets $ 23,337,220 $17,059,184
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Securities sold, but not yet
purchased, at market $ 1,797,645 $ 180,280
Notes payable 1,326,178 1,477,428
Commissions payable 4,249,656 2,710,736
Accounts payable 1,193,407 525,809
Accrued expenses 1,252,323 1,072,552
Income taxes payable 1,391,824 510,226
Other liabilities 1,117,225 952,015
--------- ---------
Total liabilities 12,328,258 7,429,046
--------- ---------
Common stock issued with guaranteed
selling price - no par value,
18,000 shares issued and outstanding 36,500 36,500
Commitments and contingencies (See Notes)
Stockholders' equity
Convertible preferred stock, 5,000,000
shares authorized, $.10 par value,
349,511 shares issued and outstanding,
respectively; stated at liquidation value 34,951 34,951
Common Stock, no par value, 30,000,000
shares authorized, 9,594,427 and 10,035,943
shares issued and outstanding, respectively 5,204,078 5,185,818
Additional paid-in capital 4,112,489 4,080,730
Retained earnings 2,885,838 1,023,057
Less: Deferred compensation (473,052) (508,294)
Less: Treasury stock (791,842) (222,624)
--------- ---------
Total stockholders' equity 10,972,462 9,593,638
--------- ---------
--------- ---------
Total liabilities and stockholders'
equity $ 23,337,220 $ 17,059,184
========= =========
See notes to financial statements.
</TABLE>
<PAGE>
04
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three months ended March 31,
2000 1999
Revenues:
Commissions $ 16,964,578 $ 9,777,468
Principal transactions 5,437,252 2,266,084
Investment banking 1,231,177 77,024
Interest and other income 853,899 400,724
-------------- ----------------
24,486,906 12,521,300
-------------- ----------------
Expenses:
Commissions, employee compensation
and benefits 17,582,502 9,490,279
Clearing and floor brokerage 1,395,130 1,108,935
Communications and occupancy 711,557 641,035
Legal matters and related costs 232,505 46,558
Other operating expenses 1,358,642 540,845
Interest 47,944 42,727
-------------- ----------------
21,328,280 11,870,379
-------------- ----------------
Income before income taxes 3,158,626 650,921
Income taxes 1,270,306 2,952
-------------- ----------------
Net income $ 1,888,320 $ 647,969
============== ================
Net income available to common
stockholders $ 1,862,781 $ 647,969
============== ================
Per share of Common Stock:
Basic $ 0.19 $ 0.07
============== ================
Diluted $ 0.17 $ 0.06
============== ================
Weighted average common shares
outstanding-basic 9,718,651 9,836,442
============== ================
Weighted average common shares
outstanding-diluted 11,524,388 10,562,910
============== ================
See notes to financial statements.
<PAGE>
05
<TABLE>
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<S> <C> <C>
Three months ended March 31,
2000 1999
INCREASE (DECREASE) IN CASH Cash flows from operating activities:
Net income $ 1,888,320 $ 647,969
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 140,345 97,359
Amortization 76,160 55,429
Bad debt reserves 346,145 -
Increase (decrease) in cash attributable to
changes in operating assets and liabilities:
Due from clearing firm (2,661,086) (39,705)
Trading and investment account securities (3,811,008) (996,979)
Commissions receivable 137,857 64,204
Due from officers 1,886 (757)
Employee and broker receivables (35,806) 74,506
Other assets (216,294) 283,800
Deferred income taxes (185,628) -
Securities sold but not yet purchased 1,617,365 157,156
Commissions payable 1,538,920 465,875
Accounts payable 667,600 (310,858)
Accrued expenses 179,771 (275,774)
Income taxes payable 881,598 -
Other liabilities 141,208 (132,749)
--------- ---------
Total adjustments (1,180,967) (558,493)
--------- ---------
Net cash provided by operating activities 707,353 89,476
--------- ---------
Cash flows from investing activities:
Issuance of notes receivable - (167,000)
Collection of notes receivable 2,006 24,268
Collection of Global leases receivable 161,529 -
Additions to property and equipment (442,950) (144,865)
Dispositions of property and equipment 8,523 -
--------- ---------
Net cash used in investing activities (270,892) (287,597)
--------- ---------
Cash flows from financing activities:
Payment of notes payable-bank (106,788) (73,981)
Payment of capital lease payable (29,619) (27,027)
Proceeds from exercise of common stock options - 57,072
Payment of preferred stock dividend (25,539) -
Exercise of stock options 18,260 -
Repurchase of common stock (569,218) -
--------- ---------
Net cash used in financing activities (712,904) (43,936)
--------- ---------
Net decrease in cash (276,443) (242,057)
Cash at beginning of 686,980 613,513
--------- ---------
Cash at end of period $ 410,537 $ 371,456
========= =========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 47,944 $ 42,727
========= =========
Income taxes $ 574,285 $ 2,952
========= =========
See notes to financial statements.
</TABLE>
<PAGE>
06
FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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 March 31,
2000 and 1999. 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 Annual Report at, and for the year ended December
31, 1999, as filed with the Securities and Exchange Commission on Form 10-K.
The results reflected for the three-month period ended March 31, 2000, are
not necessarily indicative of the results for the entire fiscal year to end on
December 31, 2000.
NOTE 2 - EARNINGS PER SHARE
Basic EPS is computed by dividing net income by the weighted-average number
of common shares outstanding for the period. Diluted EPS reflects the potential
dilution from the exercise stock options and the deemed conversion of preferred
stock and convertible debt.
NOTE 3 - SHARE REPURCHASE
During the quarter ended March 31, 2000, the Company repurchased 294,200
shares of its common stock for $569,217 under a share repurchase program
authorized in 1999.
NOTE 4 - SUBSEQUENT EVENT - NEW CLEARING/FINANCIAL AGREEMENT
In May 2000, the Company entered into a 10-year clearing agreement with
Fiserv Securities, Inc. under which Fiserv will act as the Company's primary
clearing broker. In connection with the clearing agreement, the Company and
Fiserv also entered into a financial agreement under which Fiserv will provide a
cash advance of $4,000,000 to the Company upon the date of conversion to Fiserv.
The funds, net of federal and state income taxes, will be used primarily to
enable the Company to pay for the cost of conversion to Fiserv and expand the
Company's business. For financial reporting purposes, the Company will earn the
advance in accordance with an amortization schedule established by the parties;
however, the Company will incur an income tax liability at its effective tax
rate on the entire advance in the year in which it is received. The Company is
required to repay any unearned portion of the $4,000,000 in the event it fails
to achieve certain minimum performance criteria or terminates the agreement
under certain circumstances prior to the expiration date as well as penalties
for early termination. Fiserv has also agreed to provide certain additional
advances to the Company in the second, third and fourth years of the agreement
under similar conditions provided the Company achieves certain performance
criteria and subject to certain other conditions. These advances, if received,
will also be amortized to income as earned during the term of the clearing
agreement. The Company believes that the advance received net of taxes will be
sufficient to pay for the anticipated costs of conversion.
<PAGE>
07
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The Company achieved its most profitable period in its history for the
quarter ended March 31, 2000 (the "2000 period"). Total revenues were a record
$24,487,000, an increase of 96%, as compared to $12,521,000 for the 1999 period.
Net income for the 2000 period was $1,863,000, or $.19 and $.17 per basic and
diluted share, respectively, as compared to $648,000, or $.07 and $.06 per basic
and diluted share respectively, in the comparable 1999 period. The Company
attributes the dramatic results in both revenues and earnings to extraordinary
demand for equity securities during the 2000 period, and the ability of our
growing network of affiliated financial professionals to capitalize on favorable
market conditions.
Additionally, gains from proprietary trading and market-making activities
also experienced substantial increases both in dollar terms and as a percentage
of total revenues. For the 2000 period, principal transactions increased to
$5,437,000, a 140% increase over the comparable period in 1999. Gains from
equity transactions accounted for the largest increases, reflecting the positive
momentum in Nasdaq-listed stocks during the current quarter.
Commission revenues from the sale of listed and over-the-counter
securities, mutual funds, insurance products, fees from managed accounts and
other agency transactions increased to $15,918,000 (65% of total revenues)
during the 2000 period as compared to $9,266,000 (74% of total revenues) in the
1999 period. The dollar increase resulted primarily from agency equity
transactions as retail investment volume continued at strong levels during the
2000 period. Revenues from insurance-related products increased by $400,000, a
57% increase over the 1999 period. This illustrates the Company's continued
commitment to diversifying into growing the insurance segment of its business.
Investment banking revenues increased in the first quarter of 2000 to
$1,231,177 from $77,000 in the 1999 period, an increase of over 1400%. This is
attributable to a significant increase in investment banking activity during the
2000 period, which included the completion of an initial public offering for
Jeremy's MicroBatch Ice Creams, Inc. and various private financings, from which
the Company earned underwriting fees and concessions.
During the 2000 period the Company paid commissions, employee
compensation and employee benefits of $17,583,000 (72% of total revenues) as
compared to $9,490,000 (76% of total revenues) in the 1999 period. This category
includes salaries, commission expense, payroll taxes and fringe benefits for
salaried employees. The Company paid salaries of $1,789,000 for management,
operations and clerical personnel, as compared to $1,148,000 in 1999. The
increase is the result of the combination of the hiring of additional management
and clerical personnel and employee performance bonuses of approximately
$325,000.
Commissions paid to registered representatives for the 2000 period
totaled $15,298,000 (62% of total revenues) as compared to $7,973,000 (64% of
total revenues) in 1999. Commission compensation is directly related to the
level of revenues generated from firm principal and agency trading, as well as
the commission payout percentage to individual registered representatives.
Commission expense as a percentage of total revenues will fluctuate within a
narrow range depending upon the product mix of commission-based business and
principal transactions. This percentage will also fluctuate based upon the
relative 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.
Clearing costs increased in 2000 to $1,395,000 (6% of total revenues)
from $1,109,000 (9% of total revenues) in 1999. The dollar increase is directly
related to the level of transaction volume and is attributable to a larger
number of overall transactions by the firm's registered representatives. The
percentage increase of clearing costs to gross revenues can and do fluctuate
depending upon the product mix. Some transactions, such as options and bonds,
have a higher execution and clearing cost than others. The Company has recently
entered into a new clearing agreement with Fiserv Securities, Inc. (Fiserv). The
Company will move its clearing from Schroder & Co. during the third quarter of
2000. (See "Liquidity and Capital Resources").
Communications and occupancy costs were $712,000 (3% of total revenues)
for the 2000 period as compared to $641,000 (5% of total revenues) for the 1999
period. This is primarily due to increases in the areas of technology support,
data market services and software enhancements.
Legal matters and related costs during the 2000 period were $232,000 as
compared to $47,000 for the same period in 1999. The majority of these expenses
were attributable to defense costs involving various customer arbitrations and
litigations related to its securities business. These claims are in various
stages and are being vigorously contested.
<PAGE>
08
The Company has filed suit against one of its insurance carriers to
compel coverage of several settled claims. There can be no assurance that the
Company will be successful in its efforts to recover funds from its insurers on
settled claims, or that monetary losses, if any, from future claims, settlements
or adverse awards or judgments will be covered under the Company's existing
insurance policies.
Other operating expenses increased to $1,359,000 (6% of total revenues)
in 2000 from $541,000 (4% of total revenues) in 1999. Consulting fees, which
increased to $163,000, included the hiring of outside consultants to assist in
the upgrading of information retrieval systems and reporting capabilities, and
the use of an outside firm to handle compliance audits of affiliated offices.
Also included in other operating expenses is a charge of $464,000 for broker
loans and other receivables which management deemed to be uncollectible. As
anticipated, costs for marketing and advertising increased by $100,000, as the
Company launched its advertising and business development campaign for its
Century Discount Investments division.
The effective tax rate for the three months ended March 31, 2000 was
40% as compared to less than 1% in the comparable 1999 period. The 1999
provision reflects minimum state taxes only. Tax expense accrued at regular
statutory rates on 1999 income was entirely offset by the reduction of deferred
tax valuation allowances established in fiscal 1998.
Operating results will continue to be dependant upon general economic and
securities market conditions, and management's ability to continue to recruit
successful registered representatives and contain administrative costs.
Subsequent to March 31, 2000, the U.S. stock markets experienced significant
price and volume declines, as well as a loss of liquidity resulting from a more
cautious investor outlook. These factors are expected to slow the unprecedented
pace of revenue and income growth that the Company experienced in the first
quarter of 2000.
Liquidity and Capital Resources
The Company maintains a highly liquid balance sheet with 72% of the
Company's assets consisting of cash, securities owned, and receivables from the
Company's clearing firm and other broker-dealers. Market-making and other
securities dealer activities require the Company to carry significant levels of
securities inventory in order to meet customer and internal trading needs. The
balances in the Company's cash, inventory and clearing firm accounts can and do
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.
Net cash from operating activities during the 2000 period provided cash
of $707,000. Cash was generated primarily from net income of $1,888,000, the
increase in securities sold but not yet purchased, and commissions payable of
$1,617,000 and $1,539,000, respectively, and non-cash adjustments of $563,000.
Non-cash adjustments consisted of depreciation charges, amortization of stock
option compensation, non-cash losses and loan reserves. These inflows were
partially offset by an increase in long inventory positions of $3,811,000 and
the receivable from the Company's clearing firm of $2,661,000. The Company also
paid down accounts payable and other current liabilities by $1,870,000 during
the 2000 period.
Investing activities required cash of $271,000 during the first quarter
of 2000. Additions to capital expenditures consumed $443,000, primarily for the
purchase of a specialized telecommunications system for trading operations, and
computers and office equipment for administrative use. The Company projects
expenditures for technology and other capital needs to be approximately $500,000
for the remainder of fiscal 2000. The collection of Global leases receivable
provided cash of $162,000.
Financing activities used cash of $713,000 during the 2000 period. A
total of $569,000 was used to repurchase 294,200 of the Company's outstanding
shares pursuant to a stock repurchase program authorized by the board of
directors in August 1999. In addition, the Company made notes and capital lease
repayments of $136,000 and dividend payments to preferred stockholders of
$26,000. A total of $18,000 was received from the exercise of 14,800 stock
options by various individuals during the year.
<PAGE>
09
In May 2000, the Company entered into a 10-year clearing agreement with
Fiserv Securities, Inc. under which Fiserv will act as the Company's primary
clearing broker. In connection with the clearing agreement, the Company and
Fiserv also entered into a financial agreement under which Fiserv will provide a
cash advance of $4,000,000 to the Company upon the date of conversion to Fiserv.
The funds, net of federal and state income taxes, will be used primarily to
enable the Company to pay for the cost of conversion to Fiserv and expand the
Company's business. For financial reporting purposes, the Company will earn the
advance in accordance with an amortization schedule established by the parties;
however, the Company will incur an income tax liability at its effective tax
rate on the entire advance in the year in which it is received. The Company is
required to repay any unearned portion of the $4,000,000 in the event it fails
to achieve certain minimum performance criteria or terminates the agreement
under certain circumstances prior to the expiration date as well as penalties
for early termination. Fiserv has also agreed to provide certain additional
advances to the Company in the second, third and fourth years of the agreement
under similar conditions provided the Company achieves certain performance
criteria and subject to certain other conditions. These advances, if received,
will also be amortized to income as earned during the term of the clearing
agreement. The Company believes that the advance received net of taxes will be
sufficient to pay for the anticipated costs of conversion.
<PAGE>
10
PART II
OTHER INFORMATION
Item 5. Other Information.
In May 2000, the Company entered into a 10-year clearing agreement with
Fiserv Securities, Inc. under which Fiserv will act as the Company's primary
clearing broker. In connection with the clearing agreement, the Company and
Fiserv also entered into a financial agreement under which Fiserv will provide a
cash advance of $4,000,000 to the Company upon the date of conversion to Fiserv.
The funds, net of federal and state income taxes, will be used primarily to
enable the Company to pay for the cost of conversion to Fiserv and expand the
Company's business. For financial reporting purposes, the Company will earn the
advance in accordance with an amortization schedule established by the parties;
however, the Company will incur an income tax liability at its effective tax
rate on the entire advance in the year in which it is received. The Company is
required to repay any unearned portion of the $4,000,000 in the event it fails
to achieve certain minimum performance criteria or terminates the agreement
under certain circumstances prior to the expiration date as well as penalties
for early termination. Fiserv has also agreed to provide certain additional
advances to the Company in the second, third and fourth years of the agreement
under similar conditions provided the Company achieves certain performance
criteria and subject to certain other conditions. These advances, if received,
will also be amortized to income as earned during the term of the clearing
agreement. The Company believes that the advance received net of taxes will be
sufficient to pay for the anticipated costs of conversion.
During the quarter ended March 31, 2000, the Company repurchased 294,200
shares of its common stock for $569,217 under a share repurchase program
authorized in 1999.
<PAGE>
11
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 11 - Computation of Earnings Per Share
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
There were no reports on Form 8-K filed.
<PAGE>
12
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: May 18, 2000 /s/ William J. Kurinsky
-------------------------
William J. Kurinsky
Secretary/Treasurer
Chief Financial Officer and
Principal Accounting Officer
/s/ Herbert Kurinsky
-------------------------
Herbert Kurinsky
President
<PAGE>
13
EXHIBIT INDEX
-------------
Exhibit 11 - Computation of Earnings Per Share
Exhibit 27 - Financial Data Schedule
Exhibit 11
First Montauk Financial Corp.
Computation of Earnings Per Share
<TABLE>
<S> <C> <C>
Three months ended March 31,
2000 1999
Numerator:
Basic:
Net income (loss) $ 1,888,320 $ 647,969
Deductions:
Preferred stock dividends (25,539) -
----------- ---------
Net income (loss) for basic computation [A] $ 1,862,781 $ 647,969
=========== =========
Diluted:
Net income (loss) for basic computation $ 1,862,781 $ 647,969
Additions:
Preferred stock dividends 25,539 -
Interest on convertible debt, net of taxes 14,046 12,968
---------- ----------
Net income (loss) for diluted computation [B] $ 1,902,366 $ 660,937
========== ==========
Denominator:
Basic:
Weighted average common shares outstanding [C] 9,718,651 9,836,442
========== ==========
Diluted:
Weighted average common shares outstanding-basic 9,718,651 9,836,442
Additions:
Incremental shares from assumed conversion of
stock options and warrants using the treasury stock
method 381,452 346,468
Incremental shares from assumed conversion of
convertible debt and preferred stock using the
if-converted method 1,424,285 380,000
---------- ----------
Weighted average common and common equivalent
shares outstanding-diluted [D] 11,524,388 10,562,910
========== ==========
Per share:
Basic [A]/[C] $ 0.19 $ 0.07
Diluted [B]/[D] $ 0.17 $ 0.06
</TABLE>
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
This Schedule contains summary financial information extracted from
Consolidated Statement of Financial Condition at March 31, 2000 and Consolidated
Statement of Income -- Three Months ended March 31, 2000 and is qualified in its
entirety by reference to such financial statements included in Form 10-Q for
March 31, 2000.
</LEGEND>
<MULTIPLIER> 1,000
<CIK> 0000083125
<NAME> First Montauk Financial Corp.
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Dec-31-2000
<PERIOD-START> Jan-1-2000
<PERIOD-END> Mar-31-2000
<CASH> 411
<RECEIVABLES> 10,617
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 7,287
<PP&E> 2,488
<TOTAL-ASSETS> 23,337
<SHORT-TERM> 0
<PAYABLES> 8,087
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 1,798
<LONG-TERM> 0
0
35
<COMMON> 5,204
<OTHER-SE> 5,733
<TOTAL-LIABILITY-AND-EQUITY> 23,337
<TRADING-REVENUE> 5,437
<INTEREST-DIVIDENDS> 618
<COMMISSIONS> 16,965
<INVESTMENT-BANKING-REVENUES> 1,231
<FEE-REVENUE> 179
<INTEREST-EXPENSE> 48
<COMPENSATION> 17,583
<INCOME-PRETAX> 3,159
<INCOME-PRE-EXTRAORDINARY> 3,159
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,888
<EPS-BASIC> .19
<EPS-DILUTED> .17
</TABLE>
