| News Details |  |
| News Details | |
| Ladenburg Thalmann Reports Second Quarter 2005 Financial Results | |
| 2005/08/12 17:51:36 | |
| NEW YORK, Aug 12, 2005 (BUSINESS WIRE) -- Ladenburg Thalmann Financial Services Inc. (AMEX: LTS) today announced financial results for the second quarter ended June 30, 2005. Second quarter 2005 revenues were approximately $5.9 million, compared to revenues of approximately $9.3 million in the second quarter of 2004. Net loss in the 2005 second quarter was approximately $2.0 million, or $0.02 per share, compared to a net loss of approximately $2.5 million, or $0.06 per share, in the 2004 period. For the six months ended June 30, 2005 revenues were approximately $12.6 million, compared to revenues of approximately $23.3 million for the first six months of 2004. The Company recorded a net loss of approximately $25.0 million, or $0.28 per share, in the 2005 six-month period versus a net loss of approximately $4.7 million, or $0.11 per share, in the 2004 six-month period. The results for the six months ended June 30, 2005 incorporate the one-time charge of approximately $19.4 million relating to the previously announced debt conversion. After giving effect to the debt conversion and the $10.0 million private financing in March 2005, the net effect on the Company's balance sheet was an increase to shareholders' equity of approximately $32.6 million. The Company also announced today, the appointment of Barry Rabkin, a professional with extensive Wall Street experience, to the Company's broker-dealer subsidiary, Ladenburg Thalmann & Co. Inc. In connection with his employment, Mr. Rabkin has agreed to purchase 1,000,000 shares of the Company's common stock at $0.45 per share (an aggregate purchase price of $450,000). This transaction, however, is subject to the prior written approval by the American Stock Exchange. Ladenburg Thalmann Financial Services is engaged in retail and institutional securities brokerage, investment banking and asset management services through its principal operating subsidiary, Ladenburg Thalmann & Co. Inc. Founded in 1876 and a New York Stock Exchange member since 1879, Ladenburg Thalmann & Co. is a full service investment banking and brokerage firm based in New York City, with regional offices in Boca Raton, Florida; Los Angeles, California; Palo Alto, California; Melville, New York; and Lincolnshire, Illinois. Ladenburg provides various services including corporate finance, asset management, brokerage, trading and research, principally for middle market and emerging growth companies and high net worth individuals. Ladenburg Thalmann Financial Services Inc. Consolidated Statement of Operations (Dollars in thousands, except share and per share amounts) (Unaudited) For the Three Months For the Six Months Ended Ended June 30, June 30, ----------------------- ---------------------- 2005 2004 2005 2004 Revenues: Commissions $3,646 $6,448 $7,515 $17,551 Principal transactions, net 542 259 1,123 1,445 Investment banking fees 675 211 1,971 440 Investment advisory fees 206 45 323 82 Interest and dividends 444 416 823 859 Syndications and underwritings 86 93 204 155 Gain on debt cancellation -- 1,310 -- 1,310 Other 286 490 608 1,414 ----------------------- ---------------------- Total revenues 5,885 9,272 12,567 23,256 ----------------------- ---------------------- Expenses: Compensation and benefits 4,547 6,242 9,938 17,102 Non-cash compensation 43 -- 266 -- Brokerage, communications and clearance fees 624 880 1,225 1,918 Rent and occupancy, net of sublease revenue 667 1,007 1,344 2,086 Professional services 800 644 1,918 2,027 Interest 114 529 553 1,073 Depreciation and amortization 206 262 421 499 Debt conversion expense -- -- 19,359 -- Other 863 2,218 2,546 3,264 ----------------------- ---------------------- Total expenses 7,864 11,782 37,570 27,969 ----------------------- ---------------------- Loss from continuing operations before income taxes (benefit) (1,979) (2,510) (25,003) (4,713) Income taxes (benefit) 14 4 26 (99) ----------------------- ---------------------- Loss from continuing operations (1,993) (2,514) (25,029) (4,614) Income (loss) from discontinued operations, net of limited partners' interest and income taxes -- 8 -- (51) ----------------------- ---------------------- Net loss $(1,993) $(2,506) $(25,029) $(4,665) ======================= ====================== Loss per Common Share (basic and diluted): Continuing operations $(0.02) $(0.06) $(0.28) $(0.11) Discontinued operations -- -- -- -- ----------------------- ---------------------- Net loss $(0.02) $(0.06) $(0.28) $(0.11) ======================= ====================== Number of shares used in computation (basic and diluted) 121,269,264 44,144,139 88,306,362 43,887,890 ======================= ====================== SOURCE: Ladenburg Thalmann Financial Services Inc. CONTACT: Citigate Sard Verbinnen Paul Caminiti/Carrie Bloom, 212-687-8080 Copyright Business Wire 2005 -0- KEYWORD: United States North America New York INDUSTRY KEYWORD: Professional Services Banking Finance SUBJECT CODE: Earnings 12-Aug-2005 17:49 | |
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