Business & Finance
Business and Finance
Business and Finance 
Tue, May 18, 2010
Mon, May 17, 2010
National Holdings Corporation Posts Revenue Growth and Positive Adjusted EBITDA For Second Quarter
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 second fiscal quarter ended March 31, 2010. The Company will hold a conference call to discuss its first quarter results on May 19, 2010 at 4:15 pm EDT. The conference call can be accessed live over the phone by dialing 866-613-9208, or for international callers, 973-935-2043; the conference ID is 76318845. A replay of the call will be available through June 04, 2010 by dialing 800-642-1687 or 706-645-9291 the conference ID is 76318845. The broadcast will be available through the aParent Company/SEC Filingsa link at [ www.nationalsecurities.com ] and will be archived online after the conference call until June 30, 2010.
"As we navigate through the still challenging financial marketplace, we are delighted to report adjusted EBITDA of $1,253,000 for the six months ended March 31, 2010 representing an improvement of $1,684,000 over the same period last year"
Total revenues increased by $5,290,000, or 22%, for the second quarter ended March 31, 2010 to $29,051,000, from $23,761,000 for the same period in 2009. In the first six months of fiscal year 2010, total revenues increased $6,413,000, or 13%, to $57,439,000 from $51,026,000 in the first six months of fiscal year 2009. The increase in revenues is due to more favorable market conditions in retail brokerage and investment banking.
aWe are very pleased that we generated a positive adjusted EBITDA of $593,000 for the second fiscal quarter ended March 31, 2010, representing a $1,214,000 improvement as compared to negative adjusted EBITDA of approximately $(621,000) for the second quarter year ended March 31, 2009,a stated Mark Goldwasser, Chief Executive Officer. aOur efforts in managing our cash flow are bearing fruit and we believe we are positioned to continue to grow our retail brokerage, investment banking and institutional businesses. We also experienced revenue growth in our insurance division, National Insurance Corporation, as a result of our joint venture with Brokers International, Ltd. Assets under management at our registered investment advisor, National Asset Management, Inc., grew from approximately $450,000,000 to approximately $625,000,000 calendar year to date.a
aAs we navigate through the still challenging financial marketplace, we are delighted to report adjusted EBITDA of $1,253,000 for the six months ended March 31, 2010 representing an improvement of $1,684,000 over the same period last year,a stated Leonard J. Sokolow, President. aWe continue to focus on growing our business units concurrent with managing our overhead and reducing inefficiencies with a view not only to expand through acquisitions and organic growth, but through recruiting. Our recruiting has resulted in approximately $300,000,000 in new and committed client assets calendar year to date. Other strategic business development efforts include the Stem Cell Investor & Executive Networking Conference Event (SCIENCE), on June 1, 2010 in New York, NY, National Securities Corporationsa™ first institutional conference developed at the direction of our Biotech research analyst, Jason Kolbert, and our co-host, MD Becker Partners LLC.a
The Company reported a net loss of $902,000 in the second quarter of fiscal year 2010 compared to a net loss of $1,927,000 in the second quarter of fiscal year 2009. The net loss attributable to common stockholders in the second quarter of fiscal year 2010 was $997,000, or $.06 per common share, as compared to a net loss attributable to common stockholders in the second quarter of fiscal year 2009 of $2,010,000, or $.12 per common share. The net loss attributable to common stockholders for both the second quarter of fiscal year 2010 and 2009 reflects $95,000 and $83,000 of cumulative preferred stock dividends on the Companya™s preferred stock respectively.
The Company reported a net loss of $1,389,000 for the six months ended March 31, 2010 as compared to a net loss of $3,070,000 for the same period in fiscal year 2009. The net loss attributable to common stockholders for the six months ended March 31, 2010 was $1,582,000, or $.09 per common share, as compared to a net loss attributable to common stockholders for the comparable period in 2009 of $3,239,000, or $.20 per common share. The net loss attributable to common stockholders for the six months ended March 31, 2010 and 2009 reflects $193,000 and $169,000 of cumulative preferred stock dividends on the Companya™s preferred stock respectively.
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 4,000 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 includes, but is not limited to, those mentioned by National Holdings from time to time in their filings with the SEC. The words amay,a awill,a abelieve,a aestimate,a aexpect,a aplan,a aintend,a aproject,a aanticipate,a acould,a awould,a ashould,a aseek,a acontinue,a apursuea 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 that may be disclosed from time to time in our SEC filings or otherwise, including the factors discussed in Item 1A, Risk Factors, of our Annual Report on Form 10-K and in or periodic reports on Form 10-Q, and, therefore, readers should not place undue reliance on these forward-looking statements.
| NATIONAL HOLDINGS CORPORATION | ||||||||||||||||
| (CONSOLIDATED) | ||||||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenues | $ | 29,051,000 | $ | 23,761,000 | $ | 57,439,000 | $ | 51,026,000 | ||||||||
| Net loss | (902,000 | ) | (1,927,000 | ) | (1,389,000 | ) | (3,070,000 | ) | ||||||||
| Preferred stock dividends | (95,000 | ) | (83,000 | ) | (193,000 | ) | (169,000 | ) | ||||||||
| Net loss attributable to common stockholders | (997,000 | ) | (2,010,000 | ) | (1,582,000 | ) | (3,239,000 | ) | ||||||||
| Loss per share attributable to common stockholders - Basic | ($0.06 | ) | ($0.12 | ) | ($0.09 | ) | ($0.20 | ) | ||||||||
| Loss per share attributable to common stockholders - Diluted | ($0.06 | ) | ($0.12 | ) | ($0.09 | ) | ($0.20 | ) | ||||||||
| NATIONAL HOLDINGS CORPORATION | ||||||||||||||||
| (CONSOLIDATED) | ||||||||||||||||
| EBITDA, as Adjusted | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net income (loss), as reported | $ | (902,000 | ) | $ | (1,927,000 | ) | $ | (1,389,000 | ) | $ | (3,070,000 | ) | ||||
| Interest expense | 302,000 | 309,000 | 596,000 | 634,000 | ||||||||||||
| Taxes | 37,000 | 32,000 | 86,000 | 77,000 | ||||||||||||
| Depreciation | 184,000 | 200,000 | 357,000 | 362,000 | ||||||||||||
| Amortization | 162,000 | 162,000 | 324,000 | 324,000 | ||||||||||||
| EBITDA | (217,000 | ) | (1,224,000 | ) | (26,000 | ) | (1,673,000 | ) | ||||||||
| Non-cash compensation expense | 178,000 | 237,000 | 361,000 | 473,000 | ||||||||||||
| Amortization of forgivable loans | 632,000 | 366,000 | 918,000 | 769,000 | ||||||||||||
| EBITDA, as adjusted | $ | 593,000 | $ | (621,000 | ) | $ | 1,253,000 | $ | (431,000 | ) | ||||||
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.