DMCD Detwiler Fenton Group Inc (CE)

BOSTON, Aug. 5 /PRNewswire-FirstCall/ -- Detwiler, Mitchell & Co. (OTC:DMCD) reported a net loss for the three months ended June 30, 2005 of $208,000 or $0.07 per share basic and diluted on 3,135,000 basic and 3,147,000 diluted weighted average shares outstanding. Had contingent deferred bonus compensation of $94,000 for the current period been recorded, loss before income taxes of $188,000 for the quarter ending June 30, 2005 would have been reported as a loss before income taxes of $282,000. Net loss for the three-month period ended June 30, 2004 was $6,000 or $0.00 per share basic and diluted on 3,174,000 basic and 3,568,000 diluted weighted average shares outstanding. Total revenues of $3,095,000 for the three months ended June 30, 2005 decreased $118,000 or 4% compared to $3,213,000 for the same period in 2004. Institutional and private client commission revenues were lower in 2005 due to uncertain financial markets as compared to 2004. Additionally, $31,000 of commissions was earned in 2004 from the independent representative business which was exited by DMFG in 2004. Net loss for the six months ended June 30, 2005 was $230,000 or $0.07 per share basic and diluted on 3,138,000 basic and 3,199,000 diluted weighted average shares outstanding. Had contingent deferred bonus compensation of $185,000 for the current period been recorded, loss before income taxes of $217,000 for the six months ending June 30, 2005 would have been reported as a loss before income taxes of $402,000. Net income for the six-month period ended June 30, 2004 was $214,000 or $0.07 per share basic and $0.06 diluted on 3,188,000 basic and 3,596,000 diluted weighted average shares outstanding. Total revenues of $6,464,000 for the six months ended June 30, 2005 decreased $565,000 or 8% compared to $7,029,000 for the same period in 2004. Institutional and private client commission revenues were lower in 2005 due to uncertain financial markets as compared to 2004. Additionally, $196,000 of commissions was earned in 2004 from the independent representative business which was exited by DMFG in 2004. Stockholders' equity of $3,399,161 at June 30, 2005 does not give effect to the unvested, and therefore unrecorded, contingent deferred bonus obligation of $1,961,530, before related income tax effects. Detwiler, Mitchell & Co. (the "Company") is the holding company for its two principal operating subsidiaries: Detwiler, Mitchell, Fenton & Graves, Inc. ("DMFG") a channel research, institutional sales and private client group broker/dealer headquartered in Boston, MA and James Mitchell & Co., a financial services company headquartered in San Diego, CA. Detwiler, Mitchell & Co. (UK) Limited was dissolved in June 2005. For more information on the Company, please go to http://www.pinksheets.com/ under the symbol DMCD or to our Company website at http://www.dmcos.com/. Cautionary Statement Regarding Forward-Looking Statements: Certain statements in this news release may contain forward-looking statements within the meaning of the Federal securities laws. Such statements should be considered in light of the risks and uncertainties associated with Detwiler, Mitchell & Co. and its operating subsidiaries, including those economic and market risks contained in the Company's Annual and Quarterly Reports and other risks prevailing from time to time; all of which are subject to material changes and may cause actual results to vary materially from what had been anticipated. DETWILER, MITCHELL & CO. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION June 30, December 31, 2005 2004 ASSETS (unaudited) Cash and cash equivalents $3,059,834 $4,636,325 Deposit with clearing organization 100,000 150,000 Commissions receivable 821,136 883,181 Non-marketable securities, at fair value 87,000 19,500 Deferred income taxes 360,428 360,428 Fixed assets, net 287,527 310,881 Prepaid expenses and other assets 336,132 377,477 Total Assets $5,052,057 $6,737,792 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Salaries, bonuses and commissions payable $1,330,266 $2,765,340 Accounts payable and accrued liabilities 320,129 313,072 Income taxes payable 2,501 -- Total Liabilities 1,652,896 3,078,412 Commitments and contingencies Stockholders' Equity Preferred stock, no par value; 5,000,000 shares authorized, none issued -- -- Common stock, $0.01 par value; 20,000,000 shares authorized, 3,141,836 shares issued and 3,108,237 shares outstanding at June 30, 2005 and 3,141,836 shares issued and outstanding at December 31, 2004 31,418 31,418 Paid-in-capital 5,337,242 5,337,242 Retained deficit (1,939,260) (1,709,280) Less treasury stock, at cost, 33,599 shares held in treasury (30,329) -- Total Stockholders' Equity 3,399,161 3,659,380 Total Liabilities and Stockholders' Equity $5,052,057 $6,737,792 DETWILER, MITCHELL & CO. CONSOLIDATED STATEMENT OF OPERATIONS For the Three Months For the Six Months Ended June 30, Ended June 30, 2005 2004 2005 2004 (unaudited) Revenues Commissions $3,008,331 $3,140,193 $6,293,299 $6,844,024 Interest and fees 84,072 72,472 168,494 158,069 Unrealized gain on non-marketable investment 2,548 -- 2,548 27,247 Total revenues 3,094,951 3,212,665 6,464,341 7,029,340 Expenses Compensation and benefits 2,036,665 2,101,707 4,241,048 4,325,050 General and administrative 658,069 517,232 1,282,096 1,078,398 Occupancy, communications and systems 364,810 332,875 693,374 698,077 Execution costs 222,932 247,721 465,166 531,174 Impairment of non-marketable investments -- -- -- 17,500 Total expenses 3,282,476 3,199,535 6,681,684 6,650,199 Income (loss) before income taxes (187,525) 13,130 (217,343) 379,141 Income tax expense (20,139) (18,959) (12,637) (165,363) Net income (loss) $(207,664) $(5,829) $(229,980) $213,778 Income (Loss) Per Share: Basic $(0.07) $(0.00) $(0.07) $0.07 Diluted $(0.07) $(0.00) $(0.07) $0.06 Weighted Average Shares Outstanding: Basic 3,134,944 3,173,759 3,138,409 3,188,057 Diluted 3,146,572 3,567,865 3,198,822 3,595,642 DATASOURCE: Detwiler, Mitchell & Co. CONTACT: James Mitchell, Chairman and CEO, +1-617-747-0180, or Stephen Martino, +1-617-747-0154, both of Detwiler, Mitchell & Co. Web site: http://www.dmcos.com/

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