U.S. Securities and Exchange Commission
Washington D.C. 20549
Form 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
Commission File Number 33-70334-A
INTERNATIONAL ASSETS HOLDING CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 59-2921318
- - -------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
250 Park Avenue South, Suite 200
Winter Park, FL 32789
(Address of principal executive offices)
(407) 629-1400
(Issuer's telephone number)
NA
- - -------------------------------------------------------------------------------
(Former name,former address and former fiscal year,if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [ ].
The number of shares outstanding of Common Stock was 1,459,187 as of April
30, 1996.
Transitional small business disclosure format Yes [ ] No [X]
<PAGE>
INDEX
Page No.
Part I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheet at March 31, 1996 .............. 4
Condensed Consolidated Statements of Operations for the
Six Months ended March 31, 1996, and 1995 ........................... 6
Condensed Consolidated Statements of Operations for the
Three Months ended March 31, 1996, and 1995 ......................... 7
Condensed Consolidated Statements of Cash Flows for the
Six Months ended March 31, 1996, and 1995 ........................... 8
Notes to Condensed Consolidated Financial Statements ................ 10
Item 2. Management's Discussion and Analysis or Plan of Operation ........... 13
Part II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders ................. 17
Item 6. Exhibits and Reports on Form 8-K .................................... 17
Signatures .......................................................... 20
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
March 31, 1996
(Unaudited)
Assets
Cash ............................................................ $ 343,354
Cash deposits with clearing broker .............................. 713,594
Foreign currency deposits with clearing broker .................. 2,728
Short term investments .......................................... 1,583,176
Receivable from clearing broker ................................. 382,080
Receivable from affiliated company .............................. 32,315
Other receivables ............................................... 103,901
Securities owned, at market value ............................... 3,128,851
Deferred income tax benefit ..................................... 30,526
Property and equipment, at cost:
Leasehold improvements ..................................... 40,404
Furniture and equipment .................................... 581,564
----------
621,968
Less accumulated depreciation and amortization .................. 287,963
----------
Net property and equipment ......................... 334,005
Other assets, net of accumulated amortization of $25,250 ........ 173,733
==========
$6,828,263
==========
See accompanying notes to condensed consolidated financial statements
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
March 31, 1996
(Unaudited)
Liabilities and Stockholders' Equity
Liabilities:
Securities sold, but not yet purchased, at market value ..... $ 895,973
Accounts payable ............................................ 102,714
Accrued salaries, commissions and benefits .................. 621,923
Other accrued expenses ...................................... 166,086
Income taxes payable ........................................ 24,850
Deferred income taxes ....................................... 14,753
Other ....................................................... 7,484
----------
Total liabilities ................................... 1,833,783
----------
Stockholders' equity:
Preferred stock, $.01 par value. Authorized 1,000,000
shares; issued and outstanding -0- shares ................. --
Common stock, $.01 par value. Authorized 3,000,000
shares; issued and outstanding 1,459,687 shares ........... 14,597
Additional paid-in capital .................................. 3,285,986
Retained earnings ........................................... 1,693,897
----------
Total stockholders' equity .......................... 4,994,480
==========
$6,828,263
==========
See accompanying notes to condensed consolidated financial statements
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Six Months Ended March 31, 1996, and 1995
(Unaudited)
1996 1995
Revenues:
Commissions $4,485,601 3,109,107
Net dealer inventory and investment gains 1,235,565 699,216
Other revenue 281,960 193,575
---------- ----------
Total revenues 6,003,126 4,001,898
--------- ---------
Expenses:
Commissions and clearing fees 2,494,831 1,828,969
Employees compensation and benefits 1,272,208 818,874
Communications and promotions 866,047 702,812
Other operating expenses 624,847 480,415
--------- ---------
Total expenses ............ 5,257,933 3,831,070
--------- ---------
Income before income taxes 745,193 170,828
Income tax expense 303,507 87,489
------- -------
Net income $ 441,686 83,339
======= ======
Earnings per common and dilutive common equivalent share:
Primary: $ .241 .057
Fully diluted: $ .241 .057
Weighted average number of common and dilutive
common equivalent shares outstanding:
Primary 2,119,336 1,462,068
Fully diluted 2,119,336 1,462,068
See accompanying notes to condensed consolidated financial statements.
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Three Months Ended March 31, 1996, and 1995
(Unaudited)
1996 1995
Revenues:
Commissions ................................... $2,604,241 1,405,398
Net dealer inventory and investment gains ..... 614,647 357,670
Other revenue ................................. 124,906 128,183
---------- ----------
Total revenues ........................ 3,343,794 1,891,251
---------- ----------
Expenses:
Commissions and clearing fees ................. 1,443,190 816,870
Employees compensation and benefits ........... 723,904 392,367
Communications and promotions ................. 439,160 343,932
Other operating expenses ...................... 314,737 241,954
--------- ----------
Total expenses ........................ 2,920,991 1,795,123
---------- ----------
Income before income taxes ......................... 422,803 96,128
Income tax expense ................................. 168,214 55,444
---------- ----------
Net Income ......................................... $ 254,589 40,684
========== ==========
Earnings per common and dilutive common equivalent share:
Primary: ................................. $ .130 .028
Fully diluted: ........................... $ .130 .028
Weighted average number of common and dilutive
common equivalent shares outstanding:
Primary .................................. 2,234,452 1,460,887
Fully diluted ............................ 2,234,452 1,460,887
See accompanying notes to condensed consolidated financial statements.
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended March 31, 1996, and 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995
Cash flows from operating activities:
Net income $441,686 83,339
Adjustments to reconcile net income to net cash used
for operating activities:
Net amortization and appreciation of short-term investments (48,439) (36,311)
Loss on disposal of property and equipment 0 216
Depreciation and amortization 57,779 39,329
Deferred income taxes (1,085) (19,907)
Cash provided by (used for) changes in:
Receivable from clearing broker (229,346) (416,877)
Receivable from affiliated company 8,457 (10,692)
Other receivables 19,001 20,378
Refundable income taxes 0 (3,364)
Securities owned (1,129,755) (100,750)
Other assets 400 (3,664)
Payable to clearing broker 0 (573,394)
Securities sold, but not yet purchased 480,269 (55,926)
Accounts payable 5,907 92,272
Accrued salaries, commissions and benefits (49,037) (255,089)
Other accrued expenses 230 (14,465)
Income taxes payable (144,408) (285,190)
Other liabilities 93 90
--------------- ---------------
Net cash used for operating activities (588,248) (1,540,005)
--------------- ---------------
Cash flows from investing activities:
Disposal of short-term investments 5,279,000 1,191,000
Acquisition of short-term investments (5,053,161) (1,190,316)
Acquisition of property, equipment & other assets (178,093) (63,363)
Repayments of loan to Employee Stock Ownership Plan 0 54,000
--------------- ---------------
Net cash provided by (used for) investing activities 47,746 (7,619)
--------------- ---------------
See accompanying notes to condensed consolidated financial statements. (continued)
</TABLE>
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows, Continued
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995
Cash flows from financing activities:
Acquisition of common shares for repurchase plan (4,693) 0
Acquisition of redeemable common shares for treasury 0 (21,435)
--------------- ---------------
Net cash used for financing activities (4,693) (21,435)
--------------- ---------------
Net decrease in cash (545,195) (1,569,059)
Cash and cash equivalents at beginning of period 1,604,871 2,010,266
--------------- ---------------
Cash and cash equivalents at end of period $ 1,059,676 441,207
=============== ===============
Supplemental disclosure of cash flow information:
Cash paid for interest $ 4,440 898
=============== ===============
Income taxes paid $ 449,000 395,950
=============== ===============
</TABLE>
Noncash financing activities: During December, 1994, the Company retired
treasury stock with a cost of $21,435 representing 4,513 shares of the Company's
common stock. The retirement of the treasury stock has been recorded as a
reduction of common stock and retained earnings.
See accompanying notes to condensed consolidated financial statements.
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 1996, and 1995
(1) Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions and requirements of Form
10-QSB and, therefore, do not include all information and footnotes necessary
for a fair presentation of financial position, results of operations, and cash
flows in conformity with generally accepted accounting principles. In the
opinion of Management, such financial statements reflect all adjustments
necessary for a fair statement of the results of operations, cash flows and
financial position for the interim periods presented. Operating results for the
interim periods are not necessarily indicative of the results that may be
expected for the full year. It is suggested that these condensed consolidated
financial statements be read in conjunction with the Company's audited
consolidated financial statements for the year ending September 30, 1995, filed
on Form 10-KSB and Amendment No. 1 to Form 10-KSB (SEC File Number 33-70334-A).
As used in this Form 10-QSB, the term'Company' refers, unless the context
requires otherwise, to International Assets Holding Corporation and its five
wholly owned subsidiaries; International Assets Advisory Corp. ('IAAC'), Global
Assets Advisors, Inc. ('GAA'), International Financial Products, Inc. ('IFP'),
GlobalNet Securities, Inc. ('GNSI') and International Asset Management Corp.
('IAMC').
(2) Securities Owned and Sold, But Not Yet Purchased
Marketable securities owned and sold, but not yet purchased at March 31,
1996, consist of trading and investment securities at quoted market values as
follows:
Sold, but not
Owned yet purchased
Obligation of U.S. Government ............... $1,065,215 --
Common stock and American Depository Receipts 1,565,502 895,973
Unit Investment Trusts ...................... 353,831 --
Corporate debt securities ................... 113,212 --
Foreign government obligations .............. 31,091 --
--------- -------
$3,128,851 895,973
--------- -------
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements, continued
(3) Amendment to Stock Option Plan
On December 28, 1995, the Company's Board of Directors approved an
amendment effective December 28, 1995, to the International Assets Holding
Corporation Stock Option Plan (the 'Plan') and approved its submission to the
shareholders for their approval. The amendment received shareholder approval at
the annual meeting of stockholders on February 15, 1996. The Plan was initially
adopted by the Board of Directors on January 23, 1993, and approved by the
shareholders on November 10, 1993. The amendment to the Plan increased the
number of shares available for issuance under the Plan from 250,000 to 500,000
shares. As of March 31, 1996, 425,000 option shares are granted and outstanding
under the Plan.
(4) Earnings Per Common Share
Primary and fully diluted earnings per common and dilutive common
equivalent share for the three months and the six months ended March 31, 1996,
have been computed by dividing adjusted net income by the weighted average
number of common and dilutive common equivalent shares outstanding. Common
equivalent shares represent shares of common stock issuable upon the assumed
exercise of stock options and warrants. Common equivalent shares had an
antidilutive effect on the earnings per share computation for the three months
and the six months ended March 31, 1995.
(5) Leases
The Company is obligated under various noncancelable operating leases for
the rental of its office facilities and certain office equipment. Rent expense
associated with operating leases amounted to $144,111 and $115,192 for the six
months ended March 31, 1996, and 1995, respectively. The minimum lease payments
under noncancelable operating leases as of March 31, 1996, are as follows:
Year Ending September 30,
1996 293,705
1997 272,741
1998 258,312
1999 105,532
Thereafter --
---------
$1,184,603
---------
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements, continued
(6) Stock Repurchase Program
On March 13, 1996, the Company announced that the Board of Directors has
authorized the Company to repurchase up to $500,000 of its common stock in the
open market during the remainder of the fiscal year which ends September 30,
1996. The stock purchases will be made in the open market from time to time as
market conditions permit. The Company is required to comply with Rule 10b-18 of
the Securities and Exchange Commission which regulates the specific terms in
which shares may be repurchased. As of April 30, 1996, the Company has
repurchased 1,700 shares under this repurchase program.
(7) Redeemable Common Stock
The Company has an Employee Stock Ownership Plan ('ESOP') with 357,715
unregistered common shares and 3,000 registered common shares. All registered
and unregistered shares have been allocated to ESOP participants as of March 31,
1996. In the event of termination of employment of an ESOP participant, the
Company may be obligated to issue a put option to a terminated participant which
may require the Company to redeem, within 60 days of issuance of the put option,
the participants' vested shares of the Company's common stock. Pursuant to the
ESOP the redemption price of the put option will be the current fair market
value as of the date of the issuance of the put option. If a put option is
required to be issued, it shall be issued as soon as administratively
practicable following the close of the plan year in which the participant
terminated employment. The plan year for the ESOP is the calendar year. As of
March 31, 1996, there are approximately 19,300 vested shares allocated to
participants that terminated employment during the 1996 plan year. If the
Company's shares distributed to a participant are registered and tradable on an
established securities market, the Company is not required to provide a put
option to the participant.
The Company is in the process of preparing a registration statement for the
unregistered shares held by the ESOP. It is currently anticipated that this
registration process will be completed before the end of the 1996 calendar year
end. It is also anticipated that the 19,300 vested shares allocated to
terminated participants will be registered before the end of the ESOP plan year
and the Company's requirement to issue put options will terminate at that time.
<PAGE>
ITEM 2. MANAGEMENt'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
The Company's assets have increased from $6,101,325 at September 30, 1995,
to $6,828,263 at March 31, 1996, and the Company's liabilities increased from
$1,543,837 at September 30, 1995, to $1,833,783 at March 31, 1996. The increase
in the net assets (assets less liabilities) of $436,992 primarily relates to the
net income earned for the six month fiscal period.
The Company's condensed consolidated balance sheet at March 31, 1996,
reflects a receivable from clearing broker, for trades which had not yet settled
for cash, due to the proceeds from the sale of securities exceeding the cost of
securities purchased.
Results of Operations:
Six Months Ended March 31, 1996, as Compared to
the Six Months Ended March 31, 1995
The earnings of the Company are subject to wide fluctuations since many
factors over which the Company has little or no control, particularly the
overall volume of trading and the volatility and general level of market prices,
may significantly affect its operations.
The Company's revenues are derived primarily from commissions earned on the
sale of securities and trading income in securities purchased or sold for the
Company's account. For the six months ended March 31, 1996, and 1995,
approximately 75% and 78%, respectively, of the Company's revenues were derived
from commissions earned on the sale of securities. For the six months ended
March 31, 1996, and 1995, approximately 21% and 17%, respectively, of the
Company's total revenues were from net dealer inventory and investment gains.
Total revenues increased by approximately 50% for the six months ended
March 31, 1996, as compared to the six months ended March 31, 1995, despite a
decrease in the average number of account executives from 43, as of March 31,
1995, to 41, as of March 31, 1996, or a decrease of 5%. The increase in revenues
was attributable to the strong investment markets during the six months ended
March 31, 1996, which resulted in an increase in the average dollar amount of
trades and an increase in trading volume during the six months ended March 31,
1996, as compared to the six months ended March 31, 1995.
<PAGE>
Commission revenue increased approximately 44% while net dealer inventory
and investment gains (trading revenue) increased approximately 77% for the six
months ended March 31, 1996, as compared to the six months ended March 31, 1995.
The increase in trading revenue is primarily attributable to substantial
increases in the Company's wholesale trading and retail trading activities. The
Company's trading department primarily concentrates on global securities which
it believes are likely to be traded by the Company's clients. By focusing on
these types of securities, trading revenue is more directly related to
commission revenue and order flow.
Other revenues increased approximately 46% during the six months ended
March 31, 1996, as compared to the six months ended March 31, 1995. The increase
in other revenue during the six months ended March 31, 1996, is partially due to
an increase in interest earned on short and long term U.S. government securities
held by the Company, fees for money management and sales of other financial
products.
The major expenses incurred by the Company relate to employees'
compensation and benefits, direct costs of securities operations such as
commissions and clearing fees, and communications and promotions expense.
Total expenses increased by approximately 37% for the six months ended
March 31, 1996, as compared to the same period in 1995. This increase is
primarily attributable to increases in commissions and clearing fees, employees
compensation and benefits , communications and promotions and other operating
expenses.
Commissions and clearing expenses increased approximately 36% during the
six months ended March 31, 1996, as compared to the same period in 1995. This
increase is directly related to the increased commission revenue and increased
trading activity. Employee compensation and benefits expense rose 55% during the
six months ended March 31, 1996, as compared to the six months ended March 31,
1995. The increase in employee compensation and benefits is primarily due to
increases in performance based bonus accruals based on the increase in net
income by the Company during the six months ended March 31, 1996, as compared to
the six months ended March 31, 1995.
Overall promotion and communication expenses increased 23% primarily due to
additional total personnel and increased promotional activities during the six
months ended March 31, 1996, as compared to the six months ended March 31, 1995.
Other operating expenses increased approximately 30% during the six months ended
March 31, 1996, as compared to the six months ended March 31, 1995. This
increase is partially attributable to an increase in rent of approximately
$29,000 related to the Company's expansion of office space, an increase in
leased equipment and maintenance expense of approximately $25,000 and an
increase of approximately $17,000 in amortization and depreciation expense.
As a result of the above, income before income taxes has increased by
approximately $574,000 during the six months ended March 31, 1996, as compared
to the six months ended March 31, 1995. The Company's effective income tax rate
was approximately 41% and 51% for the six months ended March 31, 1996, and 1995,
respectively.
<PAGE>
Three Months Ended March 31, 1996, as Compared to
the Three Months Ended March 31, 1995
For the three months ended March 31, 1996, and 1995, approximately 78% and
74%, respectively, of the Company's revenues were derived from commissions
earned on the sale of securities. For the three months ended March 31, 1996, and
1995, approximately 18% and 19%, respectively, of the Company's total revenues
were from net dealer inventory and investment gains.
Total revenues increased by approximately 77% for the three months ended
March 31, 1996, as compared to the three months ended March 31, 1995, despite a
decrease in the average number of account executives from 43, as of March 31,
1995, to 41, as of March 31, 1996, or a decrease of 5%. The increase in revenues
was attributable to the strong investment markets during the three months ended
March 31, 1996, which resulted in an increase in the average dollar amount of
trades and an increase in trading volume during the three months ended March 31,
1996, as compared to the three months ended March 31, 1995.
Commission revenue increased approximately 85% while net dealer inventory
and investment gains (trading revenue) increased approximately 72% for the three
months ended March 31, 1996, as compared to the three months ended March 31,
1995. The increase in trading revenue is primarily attributable to increases in
the Company's wholesale trading and retail trading activities. The Company's
trading department primarily concentrates on global securities which it believes
are likely to be traded by the Company's clients. By focusing on these types of
securities, trading revenue is more directly related to commission revenue and
order flow. Other revenues decreased approximately 3% during the three months
ended March 31, 1996, as compared to the three months ended March 31, 1995.
The major expenses incurred by the Company relate to employees'
compensation and benefits, direct costs of securities operations such as
commissions and clearing fees, and communications and promotions expense.
Total expenses increased by approximately 63% for the three months ended
March 31, 1996, as compared to the same period in 1995. This increase is
primarily attributable to increases in commissions and clearing fees, employees
compensation and benefits, communications and promotions and other operating
expenses.
Commissions and clearing expenses increased approximately 77% during the
three months ended March 31, 1996, as compared to the same period in 1995. This
increase is directly related to the increased commission revenue and increased
trading activity. Employee compensation and benefits expense rose 84% during the
three months ended March 31, 1996, as compared to the three months ended March
31, 1995. The increase in employee compensation and benefits is primarily due to
increases in performance based bonus accruals based on the increase in net
income by the Company during the three months ended March 31, 1996, as compared
to the three months ended March 31, 1995.
<PAGE>
Overall promotion and communication expenses increased 28% primarily due to
additional total personnel and increased promotional activities during the three
months ended March 31, 1996, as compared to the three months ended March 31,
1995. Other operating expenses increased approximately 30% during the three
months ended March 31, 1996, as compared to the three months ended March 31,
1995. This increase is primarily attributable to an increase in rent related to
the Company's expansion of office space, an increase in leased equipment and
maintenance and an increase in amortization and depreciation expense.
As a result of the above, income before income taxes has increased by
approximately $327,000 during the three months ended March 31, 1996, as compared
to the three months ended March 31, 1995. The Company's effective income tax
rate was approximately 40% and 58% for the three months ended March 31, 1996,
and 1995, respectively.
Liquidity and Capital Resources
A substantial portion of the Company's assets are liquid. At March 31,
1996, approximately 85% of the Company's assets consisted of cash, cash
equivalents, and marketable securities. All assets are financed by the Company's
equity capital, short-term borrowings from securities lending transactions and
other payables.
IAAC is subject to the requirements of the SEC and the NASD relating to
liquidity and net capital levels. At March 31, 1996, IAAC had net capital of
approximately $1,388,000, which was approximately $1,288,000 in excess of its
minimum net capital requirement at that date.
In the opinion of management, the Company's existing capital and cash flow
from operations will be adequate to meet the Company's capital needs for at
least the next 12 months in light of known and reasonably estimated trends. In
addition, management believes that the Company will be able to obtain additional
short or medium-term financing that may be desirable in the ordinary conduct of
its business. The Company has no plans for additional financing and there can be
no assurance such financing will be available.
<PAGE>
PART II
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company's annual meeting of stockholders was held on Thursday, February
15, 1996. The stockholders reelected all members of the existing Board of
Directors, Diego J. Veitia, Jerome F. Miceli, Stephen A. Saker, Donald A.
Halliday and Elmer L. Jacobs. The stockholders also approved the action of the
Board of Directors in selecting KPMG Peat Marwick LLP to audit the financial
statements of the Company and its subsidiaries for the period commencing October
1, 1995, and ending September 30, 1996. The stockholders further approved the
action of the Board of Directors in adopting an amendment to the International
Assets Holding Corporation Stock Option Plan to increase the total number of
shares available for issuance under the Plan from 250,000 to 500,000 shares.
Votes Votes
Matter For Withheld
Election of Diego J. Veitia as director ........... 1,139,447 12,136
Election of Jerome F.Miceli as director ............ 1,139,447 12,136
Election of Stephen A. Saker as director ........... 1,139,447 12,136
Election of Donald A. Halliday as director ......... 1,139,447 12,136
Election of Elmer L. Jacobs as director ........... 1,139,447 12,136
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Votes Votes Votes
Matter For Against Abstain
Approval of the auditors 1,138,358 2,300 10,925
Votes Votes Votes
Matter For Against Abstain No Vote
Approval to amend stock option plan 882,194 94,605 35,551 139,233
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a). Exhibits
11. Computation of Earnings Per Share
(Page 18 and 19 attached)
b). Form 8-K
No reports were filed on Form 8-K during the three months
ended March 31, 1996.
</TABLE>
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
For the Six Months Ended March 31, 1996, and 1995
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995 (1)
Adjustment of shares outstanding:
Weighted average number of actual common shares outstanding ... 1,460,861 1,462,068
Weighted average number of additional common shares outstanding
assuming the exercise of common stock equivalents (2) .... 658,475 --
Weighted average number of common and dilutive
========= =========
common equivalent shares outstanding ..................... 2,119,336 1,462,068
========= =========
Adjustment of net income:
Actual net income ............................................. $441,686 $ 83,339
Adjustment to net income assuming the investment of
excess proceeds received from the assumed exercise
of common stock equivalents, net of income taxes $ 68,669 --
======== ========
Adjusted net income ........................................... $510,355 $ 83,339
======== ========
Earnings per common and dilutive common equivalent share:
Primary: ................................................. $ .241 $ .057
Fully diluted (3): ....................................... $ .241 $ .057
</TABLE>
- - --------------------------------------------------------------------------------
(1) In 1995, the common stock equivalents (common stock warrants and common
stock options) are antidilutive, therefore, no common stock equivalents are
assumed to be exercised.
(2) This calculation assumes that of all the additional common shares
outstanding, assuming the exercise of all common stock equivalents, 291,937
shares of common stock are re-acquired as of the beginning of the 1996 fiscal
year.
(3) In 1996, there were no other potentially dilutive securities present
other than the common stock equivalents (common stock warrants and common stock
options), therefore, primary and fully diluted earnings per share amounts are
the same.
<PAGE>
INTERNATIONAL ASSETS HOLDING CORPORATION
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
For the Three Months Ended March 31, 1996, and 1995
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995 (1)
Adjustment of shares outstanding:
Weighted average number of actual common shares outstanding 1,460,834 1,460,887
Weighted average number of additional common shares outstanding
assuming the exercise of common stock equivalents (2) 773,618 --
Weighted average number of common and dilutive
============== ==============
common equivalent shares outstanding 2,234,452 1,460,887
============== ==============
Adjustment of net income:
Actual net income $254,589 $40,684
Adjustment to net income assuming the investment of
excess proceeds received from the assumed exercise
of common stock equivalents, net of income taxes $35,468 --
============== ==============
Adjusted net income $290,057 $40,684
============== ==============
Earnings per common and dilutive common equivalent share:
Primary: $.130 $.028
Fully diluted (3): $.130 $.028
</TABLE>
- - -------------------------------------------------------------------------------
(1) In 1995, the common stock equivalents (common stock warrants and common
stock options) are antidilutive, therefore, no common stock equivalents are
assumed to be exercised.
(2) This calculation assumes that of all the additional common shares
outstanding, assuming the exercise of all common stock equivalents, 291,937
shares of common stock are re-acquired as of the beginning of the 1996 fiscal
year.
(3) In 1996, there were no other potentially dilutive securities present
other than the common stock equivalents (common stock warrants and common stock
options), therefore, primary and fully diluted earnings per share amounts are
the same.
<PAGE>
Signatures
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
INTERNATIONAL ASSETS HOLDING CORPORATION
Date 05/14/96 /s/ Jerome F. Miceli
Jerome F. Miceli
President and Chief Operating Officer
Date 05/14/96 /s/ Jonathan C. Hinz
Jonathan C. Hinz
Chief Accounting Officer
