Business & Finance
Tue, February 24, 2009Mon, February 23, 2009Sun, February 22, 2009Fri, February 20, 2009Thu, February 19, 2009Wed, February 18, 2009Tue, February 17, 2009Mon, February 16, 2009Fri, February 13, 2009Thu, February 12, 2009Wed, February 11, 2009National Holdings Corporation Reports Record Revenues for First Quarter Ended December 31, 2008
Published in Business and Finance on Wednesday, February 18th 2009 at 5:19 GMT, Last Modified on 2009-02-18 05:21:35 by Market Wire
NEW YORK--([ BUSINESS WIRE ])--National Holdings Corporation (OTCBB: NHLD), a full service investment banking company operating through its wholly-owned subsidiaries, reported earnings for its first fiscal quarter ended December 31, 2008. The company will hold a conference call to discuss its first quarter results on Thursday, February 19th at 4:15pm ET. The conference call can be accessed live over the phone by dialing (800) 949 - 4558, or for international callers, (973) 935 - 2043; the conference ID is 86552185. A replay will be available the following week at [ http://irgnews.com/coi/NHLD ]; it will be archived there for thirty days.
Revenues for the first quarter ended December 31, 2008 were $27,852,000, compared to $20,365,000 for the same period in 2007, an increase of $7,487,000, or 37%. The increase in revenues is due primarily to the addition of vFinance revenues as a result of the previously announced merger which was completed in July 2008.
"The market volatility resulted in a challenging first quarter; but despite this difficult environment, we were able to generate these results and positive adjusted EBITDA," stated Mark Goldwasser, Chief Executive Officer. "In the face of continued pressure in the capital markets we have been diligent in managing our cash flow yet we believe we are well positioned to achieve greater success when the markets stabilize and improve."
"Having diversified revenue streams, focusing on our costs, and leveraging the integration benefits of the merger between National Holdings and vFinance, contributed to our first quarter performance," stated Leonard J. Sokolow, President. "We continue to experience a challenging financial marketplace, but it is our experience that it is during these times growth opportunities often get accelerated leading to additional brokers and new customer assets."
The profit before interest, taxes, depreciation and amortization (EBITDA), adjusted to exclude non-cash compensation expense and write down of forgivable loans, was approximately $182,000 for the first quarter ended December 31, 2008, representing a $796,000 improvement as compared to an EBITDA loss of approximately $(614,000), adjusted to exclude non-cash compensation expense and write down of forgivable loans, for the first quarter year ended December 31, 2007.
The Company reported a net loss of $(1,142,000) in the first quarter of fiscal year 2009 compared to a net loss of $(1,167,000) in the first quarter of fiscal year 2008. The net loss attributable to common stockholders in the first quarter of fiscal year 2009 was $(1,227,000), or $.07 per common share, as compared to a net loss attributable to common stockholders in the first quarter of fiscal year 2008 of $(1,252,000), or $.15 per common share. The net loss attributable to common stockholders for both the first quarter of fiscal year 2009 and 2008 reflects $85,000 of cumulative preferred stock dividends on the Company's preferred stock.
About National Holdings Corporation
National Holdings Corporation is a holding company for National Securities Corporation, vFinance Investments, Inc., EquityStation, Inc., National Asset Management, Inc., and National Insurance Corporation. National Securities, vFinance and EquityStation are broker-dealers registered with the SEC, and members of FINRA and SIPC. vFinance is also a member of the NFA. The three principal lines of business of the broker-dealers are offering full service retail brokerage; providing investment banking, merger, acquisition and advisory services to micro, small and mid-cap high growth companies; and trading securities, including making markets in over 3,500 micro and small-cap stock, distributing direct market access platforms, and providing liquidity in the United States Treasury marketplace. National Asset Management is a federally-registered investment advisor. National Insurance provides a full array of fixed insurance products to its clients. For more information, please visit our websites at [ www.nationalsecurities.com ] and [ www.vfinance.com ].
Safe Harbor Statements
This release contains forward-looking statements within the meaning of the federal securities laws. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Information on significant potential risks and uncertainties that may also cause differences include, but is not limited to, those mentioned by National Holdings from time to time in their filings with the SEC. The words "may," "will," "believe," "estimate," "expect," "plan," "intend," "project," "anticipate," "could," "would," "should," "seek," "continue," "pursue" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. National Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and, therefore, readers should not place undue reliance on these forward-looking statements.
NATIONAL HOLDINGS CORPORATION | |||||||||
(CONSOLIDATED) | |||||||||
FINANCIAL HIGHLIGHTS | |||||||||
| Three Months Ended | |||||||||
| December 31, | |||||||||
| Unaudited | |||||||||
| 2008 | 2007 | ||||||||
| Revenues | $ | 27,852,000 | $ | 20,365,000 | |||||
| Net income (loss) | $ | (1,142,000 | ) | $ | (1,167,000 | ) | |||
| Preferred stock dividends | (85,000 | ) | (85,000 | ) | |||||
| Net income (loss) attributable to common stockholders | $ | (1,227,000 | ) | $ | (1,252,000 | ) | |||
| Income (loss) per share attributable to common stockholders - Basic | |||||||||
| $ | (0.07 | ) | $ | (0.15 | ) | ||||
| Income (loss) per share attributable to common stockholders - Diluted | |||||||||
| $ | (0.07 | ) | $ | (0.15 | ) | ||||
| Weighted average number of shares outstanding - Basic | 16,421,538 | 8,602,628 | |||||||
| Weighted average number of shares outstanding - Diluted | 16,421,538 | 8,602,628 | |||||||
NATIONAL HOLDINGS CORPORATION | |||||||
(CONSOLIDATED) | |||||||
EBITDA, as ADJUSTED (Unaudited) | |||||||
| The following table presents a reconciliation of EBITDA, as adjusted, to net income as reported. | |||||||
| Three Months Ended | |||||||
| December 31, | |||||||
| (Unaudited) | |||||||
| 2008 | 2007 | ||||||
| Net income (loss), as reported | $ | (1,142,000 | ) | $ | (1,167,000 | ) | |
| Interest expense | 324,000 | 73,000 | |||||
| Taxes | 44,000 | 66,000 | |||||
| Depreciation | 162,000 | 56,000 | |||||
| Amortization | 155,000 | - | |||||
| EBITDA | (457,000 | ) | (972,000 | ) | |||
| Non-cash compensation expense | 237,000 | 102,000 | |||||
| EBITDA, as adjusted | (220,000 | ) | (870,000 | ) | |||
| Forgivable loan write down | 402,000 | 256,000 | |||||
| EBITDA, as adjusted with forgivable loan amortization | $ | 182,000 | $ | (614,000 | ) | ||
Earnings before interest, taxes, depreciation and amortization, or EBITDA, adjusted for non-cash compensation expense and amortization of forgivable loans, is a key metric the Company uses in evaluating its financial performance. EBITDA is considered a non-GAAP financial measure as defined by Regulation G promulgated by the SEC pursuant to the Securities Act of 1933, as amended. The Company considers EBITDA, as adjusted with forgivable loan amortization, an important measure of its ability to generate cash flows to service debt, fund capital expenditures and fund other corporate investing and financing activities. EBITDA, as adjusted, eliminates the non-cash effect of tangible asset depreciation and amortization of intangible assets and stock-based compensation. EBITDA should be considered in addition to, rather than as a substitute for, pre-tax income, net income and cash flows from operating activities.
