NEW YORK, March 30 /PRNewswire-FirstCall/ -- Jesup &
Lamont Inc. (Amex: JLI), a full-service boutique brokerage and
investment banking firm serving retail and institutional clients,
today reported financial results for the year ended December 31, 2009. Revenues for the year
ended December 31, 2009 were
$37,095,420, a decrease of 2.5% from
the $38,070,661 for 2008. The
net income (loss) applicable to common shareholders for the year
end December 31, 2009 was
($7,381,869) compared to the net loss
of ($16,046,084) for 2008, or
($0.82) per basic and fully diluted
share in 2008, compared to ($0.24)
per basic and fully diluted share in 2009.
"Last year was a transitional year for our company. We
revaluated all our products and services and decided to focus on
those areas where we believe we have a competitive advantage and
where we believe we can operate profitably. As a result of our
analysis, we dramatically reduced costs and we believe that our
infrastructure is now appropriate for those products and services
we are planning to maintain. In addition, we spent significant
management time focusing on a key to our success – that is securing
a capital base that will support our business," stated Alan Weichselbaum, CEO of Jesup & Lamont
Inc. He further stated, "We believe we have accomplished that
with our Tri-Artisan merger. The merger will give us the capital we
need to profitably grow our business and will, in addition, give us
a boost in our investment banking capabilities. With our cost
reduction emphasis during 2009 and the refocusing on profitable
lines coupled with the capital and investment banking capabilities
brought by our merger with Tri-Artisan, we believe that Jesup &
Lamont Inc. will show improved results in 2010."
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 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
offers full service retail, fixed income, institutional equities
research and order execution and 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
|
|
|
|
December
31,
|
|
|
Assets
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
345,170
|
|
$
410,840
|
|
|
Bank certificate of deposit
|
2,014,102
|
|
-
|
|
|
Marketable securities owned, at market
value
|
23,288
|
|
37,027
|
|
|
Securities not readily marketable, at
estimated fair value
|
946,080
|
|
531,265
|
|
|
Commissions and other receivables from
clearing organizations
|
1,559,391
|
|
1,033,520
|
|
|
Other receivables
|
2,437,989
|
|
1,849,816
|
|
|
Securities borrowed under a secured
demand note
|
225,000
|
|
-
|
|
|
Deposits at clearing
organizations
|
1,312,294
|
|
655,359
|
|
|
Prepaid expenses and other
assets
|
959,710
|
|
513,393
|
|
|
Notes receivable, net of allowance of
$561,000
|
1,370,984
|
|
1,310,889
|
|
|
Deferred tax asset
|
2,117,000
|
|
2,117,000
|
|
|
Furniture and equipment,
net
|
669,974
|
|
527,692
|
|
|
Goodwill
|
13,272,165
|
|
13,272,165
|
|
|
Intangible assets - customer lists and
trademarks
|
4,072,875
|
|
4,143,601
|
|
|
|
|
|
|
|
|
Total assets
|
$
31,326,022
|
|
$
26,402,567
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and
other liabilities
|
8,360,666
|
|
5,240,367
|
|
|
Due to clearing
organizations
|
1,314,213
|
|
1,180,108
|
|
|
Accrued preferred stock
dividends
|
753,394
|
|
445,568
|
|
|
Securities sold, but not yet
purchased, at market value
|
170,892
|
|
170,603
|
|
|
Secured demand note payable
|
225,000
|
|
-
|
|
|
Notes payable
|
16,332,091
|
|
12,552,317
|
|
|
|
|
|
|
|
|
Total liabilities
|
27,156,256
|
|
19,588,963
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
Convertible preferred stock, series C,
F, and G
|
|
|
|
|
|
$.01 par value, 1,000,000 shares
authorized
|
|
|
|
|
|
728,575 issued and
outstanding
|
$
7,285
|
|
$
7,902
|
|
|
Common stock, $.01 par
value
|
|
|
|
|
|
100,000,000 shares
authorized
|
|
|
|
|
|
32,548,715 shares issued and
outstanding
|
325,487
|
|
223,978
|
|
|
Less: Treasury Stock
|
(733,765)
|
|
(733,765)
|
|
|
Capital stock subscribed
|
1,635,000
|
|
2,894,996
|
|
|
Additional paid-in capital
|
43,225,707
|
|
37,328,572
|
|
|
Accumulated deficit
|
(40,289,948)
|
|
(32,908,079)
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
4,169,766
|
|
6,813,604
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity
|
$
31,326,022
|
|
$
26,402,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JESUP & LAMONT
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
Years ended
December 31,
|
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
Commissions and fees
|
$30,543,894
|
|
$
29,342,615
|
|
|
Equity market making trading revenues,
net
|
2,231,211
|
|
6,369,618
|
|
|
Investment banking income
|
2,297,885
|
|
2,778,153
|
|
|
Net gain (loss) on securities received
for banking services
|
2,022,430
|
|
(419,725)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,095,420
|
|
38,070,661
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Employee compensation and
benefits
|
22,803,468
|
|
22,488,833
|
|
|
Commissions, clearing and execution
costs
|
12,220,000
|
|
20,063,213
|
|
|
General and administrative
|
7,094,118
|
|
9,969,048
|
|
|
Communications and data
processing
|
732,288
|
|
898,428
|
|
|
|
|
|
|
|
|
|
|
|
42,849,874
|
|
53,419,522
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
(5,754,454)
|
|
(15,348,861)
|
|
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
|
|
|
Gain from settlement
|
-
|
|
806,744
|
|
|
Interest income
|
20,002
|
|
45,787
|
|
|
Forgiveness of indebtedness
|
311,220
|
|
-
|
|
|
Abandonment of premises
|
(292,230)
|
|
-
|
|
|
Interest expense
|
(1,354,489)
|
|
(1,077,161)
|
|
|
Other expense
|
(4,092)
|
|
(200,000)
|
|
|
|
|
(1,319,589)
|
|
(424,630)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(7,074,043)
|
|
(15,773,491)
|
|
|
|
|
|
|
|
|
|
Accrued preferred stock
dividends
|
(307,826)
|
|
(272,593)
|
|
|
|
|
|
|
|
|
|
Loss applicable to common
shareholders
|
$(7,381,869)
|
|
$(16,046,084)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share
applicable to common
|
|
|
|
|
|
|
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share-basic
|
$
(0.24)
|
|
$
(0.82)
|
|
|
|
|
|
|
|
|
|
|
Loss per share diluted
|
$
(0.24)
|
|
$
(0.82)
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
30,365,265
|
|
19,506,828
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
30,365,265
|
|
19,506,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Jesup & Lamont Inc.