Continued Progress as Net Loss Narrows by 88% vs Third Quarter 2008
NEW YORK, Nov. 16 /PRNewswire-FirstCall/ -- Jesup & Lamont,
Inc., (AMEX: JLI), a full-service boutique brokerage and investment
banking firm serving retail, institutional and corporate clients,
today reported results for the three months ended September 30,
2009. Revenues for the third quarter ended September 30, 2009
increased by 5% to $10,115,000, from the $9,652,000 for the same
period in 2008. Net loss applicable to common shares for the
quarter were reduced by 88% to $559,000 compared to $4,614,000 for
the same period in 2008, or $0.02 per share in 2009, compared to
$0.27 per share in 2008. "We are very encouraged by the third
quarter results which were consistent with internal projections.
Improved operating margins, lower general and administrative
expenses and increased revenue all contributed to the results,"
stated Alan Weichselbaum, CEO of Jesup & Lamont, Inc. "The
small loss in the third quarter was expected given the diminished
revenues in the summer months of July and August and the upfront
costs associated with the expansion of our business. We expect
fourth quarter revenues to rise from third quarter as the
additional advisors hired in the third quarter show their effect,"
he added. About Jesup & Lamont, Inc. Established in 1877, Jesup
& Lamont, Inc. has an extensive history on Wall Street, with
its origins encompassing such successes as providing brokerage
services to Standard Oil and raising capital for the construction
of Rockefeller Center. Jesup & Lamont, through its two wholly
owned brokerage subsidiaries, offers full service broker-dealer and
registered investment advisory services through its approximately
150 registered brokers in over 20 locations including offices in
New York, San Francisco, Boston, Boca Raton, Chicago, Fort
Lauderdale and Orlando. The Company's Jesup & Lamont Securities
Corporation subsidiary also publishes proprietary research on
several industries including Aerospace/Defense, Alternative Energy
and Life Sciences/Healthcare and offers comprehensive investment
banking services. Forward-Looking Statement Disclaimer This press
release contains "forward looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risk,
uncertainties or other factors which may cause actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Factors
that might cause such a difference include, without limitation,
fluctuations in the volume of transactional services provided by
the Company, competition with respect to financial services
commission rates, the effect of general economic and market
conditions, factors affecting the securities brokerage industry as
well as other risks and uncertainties detailed from time to time in
the Company's Securities and Exchange Commission filings. The
Company undertakes no obligation to revise or update any
forward-looking statement. JESUP & LAMONT, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION September 30, December 31, 2009 2008 Assets (Unaudited)
(Audited) ----------- ----------- Cash and cash equivalents
$1,084,235 $410,840 Bank certificate of deposit 2,005,288 -
Marketable securities owned, at market value 238,544 37,027
Securities not readily marketable, at estimated fair value 695,166
531,265 Commissions and other receivables from clearing
organizations 1,691,104 1,033,520 Other receivables 1,838,253
1,849,816 Secured demand note receivable 225,000 - Deposits at
clearing organizations 2,999,497 655,359 Prepaid expenses and other
assets 663,880 513,393 Notes receivable 1,578,656 1,310,889
Deferred tax asset 2,117,000 2,117,000 Furniture and equipment, net
565,518 527,692 Goodwill 13,272,165 13,272,165 Intangible assets -
customer lists and trademarks 4,101,806 4,143,601 -----------
----------- Total assets $33,076,112 $26,402,567 ===========
=========== Liabilities and Stockholders' Equity Accounts payable,
accrued expenses and other liabilities 7,032,179 5,240,366 Due to
clearing organizations 1,287,839 1,180,108 Accrued preferred stock
dividends 666,753 445,568 Securities sold, but not yet purchased,
at market value 207,746 170,603 Notes payable 15,871,238 12,552,317
----------- ----------- Total liabilities 25,065,755 19,588,962
----------- ----------- Commitments and Contingencies Subordinated
Note Payable 225,000 - ----------- ----------- Stockholders' equity
Convertible preferred stock, series C, F, and G $.01 par value,
1,000,000 shares authorized 728,739 issued and outstanding $7,287
$7,903 Common stock, $.01 par value 100,000,000 shares authorized
22,853,074 shares issued and outstanding 228,531 223,977 Less:
Treasury Stock (733,765) (733,765) Capital stock subscribed
6,269,996 2,894,996 Additional paid-in capital 38,109,172
37,328,573 Accumulated deficit (36,095,864) (32,908,079)
----------- ----------- Total stockholders' equity 7,785,357
6,813,605 ----------- ----------- Total liabilities and
stockholders' equity $33,076,112 $26,402,567 ===========
=========== JESUP & LAMONT, INC. AND SUBSIDIARIES (Unaudited)
CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended September
30, 2009 2008 ---------- ---------- Revenues Commissions and fees
$7,994,432 $6,960,884 Equity market making trading revenues, net
1,098,565 1,547,917 Investment banking income 945,405 1,333,375 Net
gain (loss) on securities received for banking services 76,179
(190,602) ---------- ---------- 10,114,581 9,651,574 ----------
---------- Expenses Employee compensation and benefits 5,898,880
6,906,442 Commissions, clearing and execution costs 3,440,927
4,343,310 General and administrative 1,241,537 2,534,890
Communications and data processing 229,219 187,493 ----------
---------- 10,810,563 13,972,135 ---------- ---------- Loss from
operations (695,982) (4,320,561) ---------- ---------- Other income
(expenses) Other income 7,844 - Forgiveness of indebtedness 541,833
- Interest income - 8,229 Interest expense (325,724) (210,362)
---------- ---------- 223,953 (202,133) ---------- ---------- Net
loss (472,029) (4,522,694) Accrued preferred stock dividends
(86,641) (91,143) ---------- ---------- Loss applicable to common
shareholders $(558,670) $(4,613,837) ========== ========== Basic
and diluted loss per share applicable to common shareholders: Loss
per share-basic $(0.02) $(0.27) ========== ========== Loss per
share diluted $(0.02) $(0.27) ========== ========== Weighted
average shares outstanding: Basic 29,452,047 17,387,654 ==========
========== Diluted 29,452,047 17,387,654 ========== ==========
DATASOURCE: Jesup & Lamont, Inc. CONTACT: Steven Rabinovici,
Chairman, Jesup & Lamont, Inc., +1-212-918-0401
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