Detwiler, Mitchell & Co. Announces Results for the First
Quarter of 2005 BOSTON, May 13 /PRNewswire-FirstCall/ -- Detwiler,
Mitchell & Co. (OTC:DMCD) reported a net loss for the three
months ended March 31, 2005 of $22,000 or $0.01 per share basic and
diluted on 3,142,000 basic and 3,153,000 diluted weighted average
shares outstanding. Had contingent deferred bonus compensation of
$99,000 for the current period been recorded, loss before income
taxes of $30,000 for the quarter ending March 31, 2005 would have
been reported as a loss before income taxes of $129,000. Net income
for the three-month period ended March 31, 2004 was $220,000 or
$0.07 per share basic and $0.06 per share diluted on 3,202,000
basic and 3,630,000 diluted weighted average shares outstanding.
Total revenues of $3,369,000 for the three months ended March 31,
2005 decreased $447,000 or 12% compared to $3,817,000 for the same
period in 2004. The decrease primarily results from lower
commission revenues of $419,000 due to reduced securities
transactions from uncertain financial markets in 2005 as compared
to the same period in 2004 and $165,000 of commissions reported in
2004 from the independent representative business which was exited
by DMFG in the first quarter of 2004. Stockholders' equity of
$3,637,064 at March 31, 2005 does not give effect to the unvested,
and therefore unrecorded, contingent deferred bonus obligation of
$2,069,505, 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 transitioned to a branch office of DMFG in December 2004
and will be dissolved in 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 March 31, December 31, 2005 2004 ASSETS
(unaudited) Cash and cash equivalents $3,028,040 $4,636,325 Deposit
with clearing organization 150,000 150,000 Commissions receivable
852,255 883,181 Non-marketable securities, at fair value 19,500
19,500 Current income taxes receivable 12,204 -- Deferred income
taxes 360,428 360,428 Fixed assets, net 313,580 310,881 Prepaid
expenses and other assets 369,285 377,477 Total Assets $5,105,292
$6,737,792 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities:
Salaries, bonuses and commissions payable $1,211,995 $2,765,340
Accounts payable and accrued liabilities 256,233 313,072 Total
Liabilities 1,468,228 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 outstanding at March
31, 2005 and December 31, 2004 31,418 31,418 Paid-in-capital
5,337,242 5,337,242 Retained deficit (1,731,596) (1,709,280) Total
Stockholders' Equity 3,637,064 3,659,380 Total Liabilities and
Stockholders' Equity $5,105,292 $6,737,792 DETWILER, MITCHELL &
CO. CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 2005 2004 (unaudited) Revenues: Commissions $3,284,968
$3,703,831 Interest and fees 84,422 85,597 Realized gain on
investment -- 27,247 Total revenues 3,369,390 3,152,741 Expenses:
Compensation and benefits 2,204,383 2,223,343 General and
administrative 624,027 561,166 Occupancy, communications and
systems 328,564 365,202 Execution costs 242,234 283,453 Impairment
of non-marketable investment -- 17,500 Total expenses 3,399,208
3,450,664 Income (loss) before income taxes (29,818) 366,011 Income
tax (expense) benefit 7,502 (146,404) Net income (loss) $(22,316)
$219,607 Net income (loss) per share Basic $(0.01) $0.07 Diluted
$(0.01) $0.06 Weighted average shares outstanding: Basic 3,141,836
3,202,356 Diluted 3,152,741 3,629,697 DATASOURCE: Detwiler,
Mitchell & Co. CONTACT: James Mitchell, Chairman and CEO,
+1-617-747-0180, or Stephen Martino, CFO, +1-617-747-0154, both of
Detwiler, Mitchell & Co. Web site: http://www.dmcos.com/
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