Detwiler, Mitchell & Co. Announces Results for the Third
Quarter of 2004 BOSTON, Nov. 10 /PRNewswire-FirstCall/ -- Detwiler,
Mitchell & Co. (OTC Pink Sheets: DMCD) reported net income for
the three months ended September 30, 2004 of $166,000 or $0.05 per
share basic and diluted on 3,142,000 basic and 3,492,000 diluted
weighted average shares outstanding. Had contingent deferred
bonuses of $244,000 for the current period been recorded, income
before income taxes of $301,000 for the quarter ending September
30, 2004 would have been reported as $57,000. Net income for the
three-month period ended September 30, 2003 was $21,000 or $0.01
per share basic and diluted on 3,202,000 basic and 3,209,000
diluted weighted average shares outstanding. Total revenues were
$3,421,000 for the three months ended September 30, 2004 increased
$520,000 or 18% compared to $2,901,000 for the same period in 2003.
Net income for the nine-month period ended September 30, 2004 was
$379,000 or $0.12 per share basic and $0.11 per share diluted on
3,173,000 basic and 3,513,000 diluted weighted average shares
outstanding. Had contingent deferred bonuses of $624,000 for the
current period been recorded, income before income taxes of
$680,000 for the nine months ending September 30, 2004 would have
been reported as $56,000. Net loss for the nine-month period ended
September 30, 2003 was $538,000 or $0.17 per share basic and $0.15
per share diluted on 3,192,000 basic and 3,562,000 diluted weighted
average shares outstanding. Total revenues were $10,451,000 for the
nine-month period ended September 30, 2004 increased $2,045,000 or
24% compared to $8,406,000 for the same period in 2003.
Stockholders' equity of $2,838,000 does not give effect to the
unrecorded contingent deferred bonuses payable of $1,682,000 as of
September 30, 2004. Detwiler, Mitchell & Co. ("DMC") is the
holding company for its three principal operating subsidiaries:
Detwiler, Mitchell, Fenton & Graves, Inc., a channel research,
institutional sales and private client group broker/dealer
headquartered in Boston, MA; James Mitchell & Co., a financial
services company headquartered in San Diego, CA and Detwiler,
Mitchell & Co. (UK) Limited, an institutional sales firm
headquartered in London, England. For more information on DMC,
please go to our 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 September 30, December 31, 2004 2003
(unaudited) ASSETS Cash and cash equivalents $3,842,934 $2,084,114
Deposit with clearing organization 150,000 250,000 Security
deposits 15,394 199,709 Commissions and other receivables 920,240
781,752 Non-marketable investments, at fair value 19,500 37,000
Fixed assets, net 320,546 356,487 Prepaid expenses and other 65,003
257,852 Goodwill 117,385 117,385 Total Assets $5,451,002 $4,084,299
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Salaries, bonuses
and commissions payable $1,970,602 $1,208,654 Accounts payable and
accrued liabilities 341,707 341,766 Income taxes payable 300,982 --
Total Liabilities 2,613,291 1,550,420 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 and 3,202,356 shares outstanding at
September 30, 2004 and December 31, 2003, respectively 31,418
32,023 Paid-in-capital 5,337,242 5,412,287 Retained deficit
(2,530,949) (2,910,431) Total Stockholders' Equity 2,837,711
2,533,879 Total Liabilities and Stockholders' Equity $5,451,002
$4,084,299 DETWILER, MITCHELL & CO. CONSOLIDATED STATEMENT OF
OPERATIONS For the Three Months For the Nine Months Ended September
30, Ended September 30, 2004 2003 2004 2003 (unaudited) Revenues
Commissions $3,352,912 $2,803,455 $10,196,936 $8,128,889 Interest
and fees 68,361 84,715 226,430 239,186 Unrealized gain on
non-marketable investments -- 13,000 27,247 38,000 Total revenues
3,421,273 2,901,170 10,450,613 8,406,075 Expenses Compensation and
benefits 2,025,918 1,728,045 6,350,968 5,159,621 General and
administrative 525,069 620,453 1,603,467 1,589,710 Occupancy,
communications and systems 297,102 289,352 995,179 1,015,412
Execution costs 271,910 218,813 803,084 604,019 Impairment of non-
marketable investments -- -- 17,500 -- Loss on transfer of lease
and disposal of fixed assets -- -- -- 385,329 Total expenses
3,119,999 2,856,663 9,770,198 8,754,091 Income (loss) before income
taxes 301,274 44,507 680,415 (348,016) Income tax expense (135,570)
(23,233) (300,933) (190,374) Net income (loss) $165,704 $21,274
$379,482 $(538,390) Income (Loss) Per Share: Basic $0.05 $0.01
$0.12 $(0.17) Diluted $0.05 $0.01 $0.11 $(0.15) Weighted Average
Shares Outstanding: Basic 3,141,836 3,202,356 3,172,764 3,191,986
Diluted 3,492,112 3,209,422 3,513,273 3,562,074 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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