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 April 30, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________to __________
Commission File Number 0-23410
M. H. MEYERSON & CO., INC.
(Name of Small Business Issuer in its charter)
NEW JERSEY 13-1924455
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
30 Montgomery Street, Jersey City, New Jersey 07302
(Address of principal executive offices) (Zip Code)
(201) 332-3380
(Issuer's telephone number, including area code)
Not Applicable
(Former name, former address, 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 .
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 4,983,335
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M. H. Meyerson & Co., Inc.
Index
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Statements of financial condition,
April 30, 1996 and 1995 . . . . . . . . . . . . .1
Statements of operations, three months ended
April 30, 1996 and 1995 . . . . . . . . . . . . .2
Statement of changes in stockholders' equity
three months ended April 30, 1996 . . . . . . . .3
Statement of cash flows, three months ended
April 30, 1996 and 1995 . . . . . . . . . . . . .4
Notes to financial statements. . . . . . . . . . . . .5
Item 2. Management's Discussion and Analysis . . . .6
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . .8
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<TABLE>
M. H. Meyerson & Co., Inc.
Statement of Financial Condition
(Unaudited)
<CAPTION>
April 30, April 30,
1996 1995
<S> <C> <C>
CURRENT ASSETS
Due from clearing brokers - available
for immediate withdrawal $ 13,650,018 $ 5,470,734
Cash at banks and on hand 983,990 2,114,535
Securities-trading-long at market 8,494,572 7,383,514
Other current assets 552,047 1,331,745
TOTAL CURRENT ASSETS 23,860,627 16,300,528
Investments 494,759 529,523
Fixed Assets net of accumulated
depreciation 582,737 470,340
TOTAL ASSETS $ 24,758,123 $ 17,300,391
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Securities-trading-short at market $ 6,274,081 $ 3,029,907
Sales commission payable 4,821,916 2,640,710
Other liabilities and accrued items 965,518 202,862
TOTAL CURRENT LIABILITIES 12,061,515 5,873,479
STOCKHOLDERS' EQUITY
Common stock 49,833 52,686
Additional paid-in-capital 7,743,897 8,176,151
Loans to officers for purchase of
Company Stock (47,500) (67,500)
Retained earnings 4,950,378 3,291,950
TOTAL STOCKHOLDERS' EQUITY 12,696,608 11,426,912
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 24,758,123 $ 17,300,391
See notes to financial statements
</TABLE>
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M. H. Meyerson & Co., Inc.
<TABLE>
Condensed Statements of Operations
Three Months Ended April 30,
(Unaudited)
<CAPTION>
1996 1995
<S> <C> <C>
REVENUE
Trading profit $ 8,777,143 $ 3,334,454
Commission 567,597 422,384
Underwriting 1,071,420 30,200
Interest & Other (41,386) 69,586
TOTAL 10,374,774 3,856,624
EXPENSES
Clearing charges 1,373,213 948,919
Salesmen's draw & commissions 3,928,485 1,290,316
Other personnel costs 1,653,665 859,421
Rent and office expenses 1,061,661 600,982
Legal and professional fees 221,093 95,242
Interest expense 0 0
Other expenses 1,048,492 572,028
TOTAL 9,286,609 4,366,908
INCOME(LOSS) BEFORE INCOME TAXES 1,088,165 (510,284)
INCOME TAX EXPENSE(BENEFIT) 456,695 (158,114)
NET INCOME(LOSS) $ 631,470 $ (352,170)
EARNINGS(LOSS) PER COMMON SHARE $ 0.12 $ (0.07)
WEIGHTED AVERAGE NUMBER OF SHARES 5,289,935 5,256,135
See notes to financial statements
</TABLE>
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<TABLE>
M. H. Meyerson & Co., Inc.
Statement of Changes in Shareholders' Equity
(Unaudited)
Three Months ended April 30, 1996
<CAPTION>
LOANS TO
OFFICERS
FOR
COMMON PURCHASE
STOCK ADDITIONAL OF
$0.01 PAR PAID-IN RETAINED TREASURY COMPANY
VALUE CAPITAL EARNINGS STOCK STOCK
<S> <C> <C> <C> <C> <C>
SHAREHOLDERS' EQUITY
FEBRUARY 1, 1996 $49,833 $7,743,897 $4,318,907 $ 0 $(57,500)
Net income for
quarterly period 631,470
Loan to officers
repayment 10,000
SHAREHOLDERS' EQUITY
APRIL 30, 1996 $49,833 $7,743,897 $4,950,377 $ 0 $(47,500)
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
M. H. Meyerson & Co., Inc.
Statement of Cash Flows
(Unaudited)
Three Months ended April 30,
<CAPTION>
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income(loss) $ 631,470 $ (352,170)
Adjustments to reconcile net income to net
cash provided by(used in) operating activites
Depreciation 144,087 37,063
Changes in assets and liabilities
(Increase)decrease in:
Receivable from clearing brokers (5,317,432) 768,065
Securities owned 273,253 1,174,601
Other current assets (108,174) (383,261)
Increase(decrease) in:
Securities sold, but not yet purchased 3,403,864 (968,195)
Sales commission payable 1,255,563 (552,041)
Other liabilities and accrued items 77,241 (80,430)
Net cash provided by (used in)
operating activities 359,872 (356,368)
CASH FLOWS FROM INVESTING ACTIVITIES
Investments (164,538) 75,068
Fixed assets (39,941) (48,662)
Net cash provided by (used in)
investing activities (204,479) 26,406
CASH FLOWS FROM FINANCING ACTIVITIES
Loans to officers repayment 10,000 100,000
Net cash provided by financing
activities 10,000 100,000
NET INCREASE(DECREASE) IN CASH 165,393 (229,962)
Cash, beginning of period 818,597 2,344,497
Cash, end of period $ 983,990 $ 2,114,535
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid $ 677,300 $ 0
Interest paid $ 0 $ 0
See notes to financial statements
</TABLE>
<PAGE>
M. H. Meyerson & Co., Inc.
Notes to Financial Statements
(Unaudited)
Note 1. Presentation of Financial Statements
The statements of financial condition as of April 30, 1996 and 1995,
the statements of operations for the three months ended April 30, 1996 and 1995,
the statement of changes in stockholders' equity for the quarterly period ended
April 30, 1996, and the statement of cash flows for the three months ended April
30, 1996 and April 30, 1995 have been prepared by the Company without audit. In
the opinion of management, all adjustments and accruals (which include only
normal recurring items) necessary to present fairly the financial positions,
results of operations, and cash flows at April 30, 1996 and April 30, 1995 have
been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and notes to
financial statements included in the Company's January 31, 1996 Annual Report to
Shareholders. The results of the periods ended April 30, 1996 and 1995 are not
necessarily indicative of the operating results for the full year.
Note 2. Earnings Per Common Share
Earnings per common share is calculated using the weighted average
number of common shares outstanding during the period. Shares issuable upon the
exercise of stock options and warrants, that are dilutive, have been included in
the computation of earnings per share based on the modified treasury stock
method.
<PAGE>
M. H. Meyerson & Co., Inc.
Item 2. Management's Discussion and Analysis
General
The following discussion of the Company's financial condition and results
of operations should be read in conjunction with the Financial Statements and
Notes thereto appearing elsewhere in this Quarterly Report on Form 10-QSB.
Results of Operations
The following table sets forth for the periods indicated the percentage of
total revenue represented by certain line items in the Company's Statement of
Operations:
PERCENT OF TOTAL REVENUES
Quarter Ended April 30,
1996 1995
Net gain on securities transactions . . . . 84.6 86.5
Commissions . . . . . . . . . . . . . . . . 5.5 11.0
Underwriting. . . . . . . . . . . . . . . . 10.3 0.8
Interest and other. . . . . . . . . . . . . (0.4) 1.7
TOTAL . . . . . . . . . . . . . . . . 100.0 100.0
Clearing charges. . . . . . . . . . . . . . 13.2 24.6
Compensation and benefits . . . . . . . . . 53.8 55.7
Rent and office . . . . . . . . . . . . . . 10.2 15.6
Professional fees . . . . . . . . . . . . . 2.1 2.5
Interest and other operating expenses . . . 10.2 14.8
TOTAL EXPENSES . . . . . . . . . . . . 89.5 113.2
INCOME(LOSS) BEFORE INCOME TAXES . . . 10.5 (13.2)
PROVISION FOR TAX EXPENSE(BENEFIT) . . 4.4 (4.1)
NET INCOME(LOSS) . . . . . . . . . . . 6.1 (9.1)
Calculation of Earnings Per Share
The calculation of earnings per share on the financial statements included
in this report are based on the weighted average number of shares outstanding,
as calculated.
Quarter Ended April 30, 1996 compared with Quarter Ended April 30, 1995
Total revenues for the quarter ended April 30, 1996 were a record
$10,374,774, a 169% increase from the $3,856,624 reported for the quarter ended
April 30, 1995. This increase is attributable mainly to an increase in trading
volume and profitability, and an increase in underwriting activity. Retail
services revenue was up, increasing 34% from $422,384 to $567,597.
Clearing charges increased from $948,919 to $1,373,213, a change of 45%.
This is attributable to the increase in the Company's order/flow business.
Compensation and benefits increased from $2,149,737 to $5,582,150,
representing an increase of 160%. This corresponds to the increase in revenue.
Legal and professional fees increased from $95,242 to $221,093, a change of
132%, due mainly to expenses related to our upcoming move into our new
facilities.
Viability of Operating Results
The Company, like other securities firms, is directly affected by general
economic conditions and market conditions, including fluctuations in volume and
price levels of securities, changes in levels of interest rates and demand for
the Company's investment banking services. All of these factors have an impact
on the Company's net gain from securities transactions, underwriting, and
commission revenues. In periods of reduced market activity, profitability is
adversely affected because certain expenses, consisting primarily of non-
officer compensation and benefits, communications and occupancy and equipment
remain relatively fixed.
Liquidity and Capital Resources
The Company's statements of financial position reflect a liquid financial
position as cash and assets readily convertible to cash represent 93% and 86% of
total assets at April 30, 1996 and April 30, 1995 respectively.
The Company finances its operations primarily with existing capital, and
funds generated from operations.
The Company believes that existing capital and cash flow from operations
will be sufficient to meet its cash requirements.
<PAGE>
M. H. Meyerson & Co., Inc.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Index of Exhibits as required by Item 601 of Regulation S-B.
Exhibit Number Description of Exhibit
11 Calculation of Earnings per
Share of the Company pg. 9
(b) Reports on Form 8-K:
The Company did not file any reports on Form 8-K during the first
quarter of fiscal year 1996.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
M. H. MEYERSON & CO., INC.
(registrant)
Date: June 4, 1996 By: /s/ Michael Silvestri
Michael Silvestri
President and Chief Operating Officer
Date: June 4, 1996 By: /s/ Eugene M. Whitehouse
Eugene M. Whitehouse
Vice President and Controller
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
This schedule contains summary financial information extracted from
SEC Form 10-QSB and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> JAN-31-1997 JAN-31-1996
<PERIOD-END> APR-30-1996 APR-30-1995
<CASH> 983990 2114535
<RECEIVABLES> 13650018 5470734
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 8494572 7383514
<PP&E> 582737 470340
<TOTAL-ASSETS> 24758123 17300391
<SHORT-TERM> 0 0
<PAYABLES> 5787434 2843572
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 6274081 3029907
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 49833 52686
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 24758123 17300391
<TRADING-REVENUE> 8777143 3334454
<INTEREST-DIVIDENDS> 0 0
<COMMISSIONS> 567597 422384
<INVESTMENT-BANKING-REVENUES> 1071420 30200
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 5582150 2149737
<INCOME-PRETAX> 1088165 (510284)
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 631470 (352170)
<EPS-PRIMARY> 0.13 (0.07)
<EPS-DILUTED> 0.12 (0.07)
</TABLE>
