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 June 30, 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 1,454,087 as of July 22,
1996.
Transitional small business disclosure format Yes [ ] No [X]
<PAGE>
2
INDEX
Page No.
Part I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheet at June 30, 1996 3
Condensed Consolidated Statements of Operations for the
Nine Months ended June 30, 1996, and 1995 5
Condensed Consolidated Statements of Operations for the
Three Months ended June 30, 1996, and 1995 6
Condensed Consolidated Statements of Cash Flows for the
Nine Months ended June 30, 1996, and 1995 7
Notes to Condensed Consolidated Financial Statements 9
Item 2. Management's Discussion and Analysis or Plan of Operation 12
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 16
Signatures 19
<PAGE>
3
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
June 30, 1996
(Unaudited)
Assets
Cash ............................................................ $ 362,559
Cash deposits with clearing broker .............................. 857,668
Foreign currency deposits with clearing broker .................. 27,174
Short term investments .......................................... 1,495,336
Receivable from clearing broker ................................. 444,841
Receivable from affiliated company .............................. 28,645
Other receivables ............................................... 73,439
Securities owned, at market value ............................... 2,982,843
Deferred income tax benefit ..................................... 24,122
Property and equipment, at cost:
Leasehold improvements ..................................... 40,404
Furniture and equipment .................................... 594,662
----------
635,066
Less accumulated depreciation and amortization .................. 311,879
----------
Net property and equipment ......................... 323,187
Other assets, net of accumulated amortization of $35,500 ........ 193,895
==========
$6,813,709
==========
See accompanying notes to condensed consolidated financial statements.
<PAGE>
4
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
June 30, 1996
(Unaudited)
Liabilities and Stockholders' Equity
Liabilities:
Securities sold, but not yet purchased, at market value ........ $ 615,009
Accounts payable ............................................... 88,625
Accrued salaries, commissions and benefits ..................... 700,392
Other accrued expenses ......................................... 136,287
Income taxes payable ........................................... 125,828
Deferred income taxes .......................................... 12,618
Other .......................................................... 7,526
----------
Total liabilities ...................................... 1,686,285
----------
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 1,454,287 shares .............. 14,543
Additional paid-in capital ..................................... 3,256,339
Retained earnings .............................................. 1,856,542
---------
Total stockholders' equity ............................. 5,127,424
===============
$6,813,709
===============
See accompanying notes to condensed consolidated financial statements.
<PAGE>
5
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Nine Months Ended June 30, 1996, and 1995
(Unaudited)
1996 1995
Revenues:
Commissions ................................... $6,594,941 5,177,382
Net dealer inventory and investment gains ..... 1,783,535 1,067,472
Other revenue ................................. 466,295 363,318
---------- ----------
Total revenues ........................ 8,844,771 6,608,172
---------- ----------
Expenses:
Commissions and clearing fees .................. 3,666,213 2,979,302
Employees compensation and benefits ............ 1,906,807 1,282,200
Communications and promotions .................. 1,286,638 1,080,496
Other operating expenses ....................... 979,334 799,277
--------- ---------
Total expenses ......................... 7,838,992 6,141,275
--------- ---------
Income before income taxes ............... 1,005,779 466,897
Income tax expense ....................... 408,754 204,312
---------- ----------
Net income ............................... $ 597,025 262,585
========== ==========
Earnings per common and dilutive common equivalent share:
Primary: $ .326 .180
Fully diluted: $ .326 .180
Weighted average number of common and dilutive
common equivalent shares outstanding:
Primary 2,155,527 1,461,674
Fully diluted 2,155,527 1,461,674
See accompanying notes to condensed consolidated financial statements.
<PAGE>
6
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Three Months Ended June 30, 1996, and 1995
(Unaudited)
1996 1995
Revenues:
Commissions .................................... $2,109,340 2,068,275
Net dealer inventory and investment gains ...... 547,970 368,256
Other revenue .................................. 184,335 169,743
---------- ----------
Total revenues ........................... 2,841,645 2,606,274
---------- ----------
Expenses:
Commissions and clearing fees .................. 1,171,382 1,150,333
Employees compensation and benefits ............ 634,599 463,326
Communications and promotions .................. 420,591 377,684
Other operating expenses ....................... 354,487 318,862
--------- ---------
Total expenses ........................ 2,581,059 2,310,205
--------- ---------
Income before income taxes ................... 260,586 296,069
Income tax expense ........................... 105,247 116,823
-------- --------
Net Income ................................... $ 155,339 179,246
======== ========
Earnings per common and dilutive common equivalent share:
Primary: $ .086 .108
Fully diluted: $ .086 .108
Weighted average number of common and dilutive
common equivalent shares outstanding:
Primary 2,226,133 2,010,666
Fully diluted 2,226,133 2,010,666
See accompanying notes to condensed consolidated financial statements.
<PAGE>
7
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended June 30, 1996, and 1995
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995
Cash flows from operating activities:
Net income $ 597,025 262,585
Adjustments to reconcile net income to net cash used
for operating activities:
Net amortization and appreciation of short-term investments (70,758) (60,052)
Loss on disposal of property and equipment 145
-
Depreciation and amortization 91,946 62,741
Deferred income taxes 3,184 (19,034)
Cash provided by (used for) changes in:
Receivable from clearing broker (292,107) (38,414)
Receivable from affiliated company 12,127 (10,546)
Other receivables 49,463 16,104
Securities owned (983,747) (402,858)
Other assets (30,012) (345)
Payable to clearing broker - (573,394)
Securities sold, but not yet purchased 199,305 184,785
Accounts payable (8,182) 58,644
Accrued salaries, commissions and benefits 29,432 (83,128)
Other accrued expenses (29,569) 14,532
Income taxes payable (43,430) (221,104)
Other liabilities 135 139
--------------- ---------------
Net cash used for operating activities (475,188) (809,200)
--------------- ---------------
Cash flows from investing activities:
Disposal of short-term investments 7,729,000 2,919,000
Acquisition of short-term investments (7,393,001) (2,928,016)
Acquisition of property, equipment & other assets (191,192) (83,530)
Proceeds from disposal of furniture and equipment - 35
Repayments of loan to Employee Stock Ownership Plan - 54,000
--------------- ---------------
Net cash provided by (used for) investing activities 144,807 (38,511)
--------------- ---------------
(continued)
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
8
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 (27,089) -
Acquisition of redeemable common shares for treasury - (21,435)
--------------- ---------------
Net cash used for financing activities (27,089) (21,435)
--------------- ---------------
Net decrease in cash (357,470) (869,146)
Cash and cash equivalents at beginning of period 1,604,871 2,010,266
--------------- ---------------
Cash and cash equivalents at end of period $ 1,247,401 1,141,120
=============== ===============
Supplemental disclosure of cash flow information:
Cash paid for interest $ 5,897 4,605
=============== ===============
Income taxes paid $ 449,000 444,450
=============== ===============
</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>
9
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
June 30, 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 June
30, 1996, consist of trading and investment securities at quoted market
values as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Sold, but not
Owned yet purchased
Obligation of U.S. Government $ 1,047,404 -
Common stock and American Depository Receipts 738,768 615,009
Unit Investment Trusts 1,075,391 -
Corporate debt securities 110,339 -
Foreign government obligations 10,941 -
$ 2,982,843 615,009
</TABLE>
<PAGE>
10
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 June 30, 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 ended June 30, 1996, and June 30,
1995, and for the nine months ended June 30, 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 nine months ended June
30, 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 $219,822 and $201,030
for the nine months ended June 30, 1996, and 1995, respectively. The
minimum lease payments under noncancelable operating leases as of June 30,
1996, are as follows:
Fiscal Year (12 month period) Ending September 30,
1996 $ 296,433
1997 279,676
1998 265,247
1999 258,937
2000 105,532
Thereafter --
$1,205,825
<PAGE>
11
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 July
22, 1996, the Company has repurchased 6,800 shares under this repurchase
program.
(7) Redeemable Common Stock
The Company has an Employee Stock Ownership Plan ("ESOP") with 357,714
unregistered common shares and 3,000 registered common shares. All
registered and unregistered shares have been allocated to ESOP participants
as of June 30, 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 June 30, 1996, there are
approximately 19,600 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 19,600 vested shares
allocated to terminated participants will be registered before the end of
the ESOP plan year. The Company believes that it will not be required to
issue put options for these shares.
<PAGE>
12
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
$6,813,709 at June 30, 1996, and the Company's liabilities increased from
$1,543,837 at September 30, 1995, to $1,686,285 at June 30, 1996. The increase
in the net assets (assets less liabilities) of $569,936 primarily relates to the
net income earned for the nine month fiscal period.
The Company's condensed consolidated balance sheet at June 30, 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:
Nine Months Ended June 30, 1996, as Compared to the Nine Months
Ended June 30, 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 nine months ended June 30, 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 nine months ended
June 30, 1996, and 1995, approximately 20% and 16%, respectively, of the
Company's total revenues were from net dealer inventory and investment gains
(trading revenue).
Total revenues increased by approximately 34% for the nine months ended
June 30, 1996, as compared to the nine months ended June 30, 1995, despite
a slight decrease in the average number of account executives from 41, as
of June 30, 1995, to 40, as of June 30, 1996, or a decrease of
approximately 2%. The increase in total revenues is attributable to the
successful efforts of our sales staff and trading department. During the
nine months ended June 30, 1996, the average dollar amount of retail trades
increased 5% and the overall volume of customer ticket orders increased
21%, as compared to the nine months ended June 30, 1995.
Commission revenue increased approximately 27% while net dealer inventory
and investment gains (trading revenue) increased approximately 67% for the nine
months ended June 30, 1996, as compared to the nine months ended June 30, 1995.
The increase in trading revenue is primarily attributable to substantial
increases in the Company's wholesale trading and retail trading activities. The
<PAGE>
13
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 28% during the nine months ended
June 30, 1996, as compared to the nine months ended June 30, 1995. The increase
in other revenue during the nine months ended June 30, 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 28% for the nine months ended June 30,
1996, as compared to the same period in 1995. This increase is primarily
attributable to increases in commissions and clearing fees, employee
compensation and benefits, communications and promotions and other operating
expenses.
Commissions and clearing expenses increased approximately 23% during the nine
months ended June 30, 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 approximately
$625,000, or 49%, during the nine months ended June 30, 1996, as compared to the
nine months ended June 30, 1995. Approximately $300,000 of the increase in
employee compensation and benefits is due to increases in performance based
bonus accruals, based on the increase in income before income taxes and trading
revenue by the Company, during the nine months ended June 30, 1996, as compared
to the nine months ended June 30, 1995. Approximately $259,000 of the increase
in employee compensation is due to additional employees hired by the company and
the remaining approximate $66,000 is due to increases in the cost of benefits
and other compensation.
Overall promotion and communication expenses increased 19% primarily due to
additional total personnel and increased promotional activities during the nine
months ended June 30, 1996, as compared to the nine months ended June 30, 1995.
Other operating expenses increased approximately $180,000, or 23%, during the
nine months ended June 30, 1996, as compared to the nine months ended June 30,
1995. This increase is partially attributable to an increase in rent of
approximately $38,000 related to the Company's expansion of office space, an
increase in leased equipment and maintenance expense of approximately $25,000,
an increase in insurance expense of approximately $12,000 and an increase of
approximately $29,000 in amortization and depreciation expense.
As a result of the above, income before income taxes has increased by
approximately $539,000, or 115%, during the nine months ended June 30, 1996, as
<PAGE>
14
compared to the nine months ended June 30, 1995. The Company's effective income
tax rate was approximately 41% and 44% for the nine months ended June 30, 1996,
and 1995, respectively.
Three Months Ended June 30, 1996, as Compared to
the Three Months Ended June 30, 1995
For the three months ended June 30, 1996, and 1995, approximately 74% and 79%,
respectively, of the Company's revenues were derived from commissions earned on
the sale of securities. For the three months ended June 30, 1996, and 1995,
approximately 19% and 14%, respectively, of the Company's total revenues were
from net dealer inventory and investment gains (trading revenue).
Total revenues increased by approximately 9% for the three months ended June 30,
1996, as compared to the three months ended June 30, 1995. The average number of
account executives for both the quarter ending June 30, 1996, and June 30, 1995,
was 39. The increase in total revenues is attributable to the successful efforts
of our sales staff and trading department. During the three months ended June
30, 1996, the average dollar amount of retail trades decreased 8% while the
overall volume of customer ticket orders increased 10%, as compared to the three
months ended June 30, 1995.
Commission revenue increased approximately 2% while net dealer inventory and
investment gains (trading revenue) increased approximately 49% for the three
months ended June 30, 1996, as compared to the three months ended June 30, 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 increased by approximately 9% during the three months
ended June 30, 1996, as compared to the three months ended June 30, 1995.
The major expenses incurred by the Company relate to employee compensation and
benefits, direct costs of securities operations such as commissions and clearing
fees, and communications and promotions expense.
Total expenses increased by approximately 12% for the three months ended June
30, 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 2% during the three
months ended June 30, 1996, as compared to the same period in 1995. This
increase is directly related to the increased commission revenue and increased
<PAGE>
15
trading activity. Employee compensation and benefits expense rose approximately
$171,000, or 37%, during the three months ended June 30, 1996, as compared to
the three months ended June 30, 1995. Approximately $28,000 of the increase in
employee compensation and benefits is due to increases in performance based
bonus accruals, based on the increase in trading revenue by the Company, during
the three months ended June 30, 1996, as compared to the three months ended June
30, 1995. Approximately $101,000 of the increase in employee compensation is due
to additional employees hired by the company and the remaining approximate
$42,000 is due to increases in the cost of benefits and other compensation.
Overall promotion and communication expenses increased 11% primarily due to
additional total personnel and increased promotional activities during the three
months ended June 30, 1996, as compared to the three months ended June 30, 1995.
Other operating expenses increased approximately 11% during the three months
ended June 30, 1996, as compared to the three months ended June 30, 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 decreased by
approximately $35,000, or 12%, during the three months ended June 30, 1996, as
compared to the three months ended June 30, 1995. The Company's effective income
tax rate was approximately 40% and 39% for the three months ended June 30, 1996,
and 1995, respectively.
Liquidity and Capital Resources
A substantial portion of the Company's assets are liquid. At June 30, 1996,
approximately 84% 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 June 30, 1996, IAAC had net capital of
approximately $1,597,000, which was approximately $1,497,000 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>
16
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a). Exhibits
11. Computation of Earnings Per Share
(Page 17 and 18 attached)
b). Form 8-K
No reports were filed on Form 8-K during the three months
ended June 30, 1996.
<PAGE>
17
INTERNATIONAL ASSETS HOLDING CORPORATION
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
For the Nine Months Ended June 30, 1996, and 1995
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995 (1)
Adjustment of shares outstanding:
Weighted average number of actual common shares outstanding ... 1,459,756 1,461,674
Weighted average number of additional common shares outstanding
assuming the exercise of common stock equivalents (2) .... 695,771 --
Weighted average number of common and dilutive
========== ==========
common equivalent shares outstanding ..................... 2,155,527 1,461,674
========== ==========
Adjustment of net income:
Actual net income ............................................. $ 597,025 $ 262,585
Adjustment to net income assuming the investment of
excess proceeds received from the assumed exercise
of common stock equivalents, net of income taxes $ 104,728 --
======== ========
Adjusted net income ........................................... $ 701,753 $ 262,585
======== ========
Earnings per common and dilutive common equivalent share:
Primary: ......... $ .326 $ .180
Fully diluted (3): $ .326 $ .180
</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, 290,857
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>
18
INTERNATIONAL ASSETS HOLDING CORPORATION
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
For the Three Months Ended June 30, 1996, and 1995
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995
Adjustment of shares outstanding:
Weighted average number of actual common shares outstanding ... 1,457,534 1,460,887
Weighted average number of additional common shares outstanding
assuming the exercise of common stock equivalents (1) .... 768,599 549,779
Weighted average number of common and dilutive
========= =========
common equivalent shares outstanding ..................... 2,226,133 2,010,666
========= =========
Adjustment of net income:
Actual net income ............................................. $155,339 $179,246
Adjustment to net income assuming the investment of
excess proceeds received from the assumed exercise
of common stock equivalents, net of income taxes $ 36,508 $ 37,204
======== ========
Adjusted net income ........................................... $191,847 $216,450
======== ========
Earnings per common and dilutive common equivalent share:
Primary: $.086 $.108
Fully diluted (2): $.086 $.108
</TABLE>
- --------------------------------------------------------------------------------
(1) This calculation assumes that of all the additional common shares
outstanding, assuming the exercise of all common stock equivalents, 290,857
shares of common stock are re-acquired as of the beginning of the 1996 fiscal
quarter and 292,177 shares are re-acquired as of the beginning of the 1995
fiscal quarter.
(2) In 1996 and 1995 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>
19
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 08/09/96 /s/ Jerome F. Miceli
Jerome F. Miceli
President and Chief Operating Officer
Date 08/09/96 /s/ Jonathan C. Hinz
Jonathan C. Hinz
Chief Accounting Office
<TABLE> <S> <C>
<ARTICLE> BD
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,247,401
<RECEIVABLES> 546,925
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 4,478,179
<PP&E> 323,187
<TOTAL-ASSETS> 6,813,709
<SHORT-TERM> 0
<PAYABLES> 914,845
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 615,009
<LONG-TERM> 0
0
0
<COMMON> 14,543
<OTHER-SE> 5,112,881
<TOTAL-LIABILITY-AND-EQUITY> 6,813,709
<TRADING-REVENUE> 1,783,535
<INTEREST-DIVIDENDS> 206,671
<COMMISSIONS> 6,594,941
<INVESTMENT-BANKING-REVENUES> 0
<FEE-REVENUE> 138,070
<INTEREST-EXPENSE> 5,897
<COMPENSATION> 4,724,075
<INCOME-PRETAX> 1,005,779
<INCOME-PRE-EXTRAORDINARY> 1,005,779
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 597,025
<EPS-PRIMARY> .326
<EPS-DILUTED> .326
</TABLE>
