Detwiler, Mitchell & Co. Announces Results for the Second
Quarter of 2004 BOSTON, Aug. 11 /PRNewswire-FirstCall/ -- Detwiler,
Mitchell & Co. (OTC Pink Sheets: DMCD) reported net loss for
the three months ended June 30, 2004 of $6,000 or $0.00 per share
basic and diluted on 3,174,000 basic and 3,568,000 diluted weighted
average shares outstanding. Had contingent deferred bonuses of
$206,000 for the quarter ending June 30, 2004 been recorded, income
before income taxes of $13,000 would have been reported as a loss
before income taxes of $193,000. Net loss for the three-months
ended June 30, 2003 was $126,000 or $0.04 per share basic and $0.03
per share diluted on 3,202,000 basic and 3,665,000 diluted weighted
average shares outstanding. Total revenues of $3,213,000 for the
three months ended June 30, 2004 increased $61,000 or 2% compared
to total revenues of $3,151,000 for the same period in 2003. Net
income for the six months ended June 30, 2004 was $214,000 or $0.07
per share basic and $0.06 per share diluted on 3,188,000 basic and
3,596,000 diluted weighted average shares outstanding. Had
contingent deferred bonuses of $424,000 for the six month period
ending June 30, 2004 been recorded, income before income taxes of
$379,000 would have been reported as a loss before income taxes of
$45,000. Net loss for the six-month period ended June 30, 2003 was
$560,000 or $0.18 per share basic and $0.16 per share diluted on
3,187,000 basic and 3,602,000 diluted weighted average shares
outstanding. Total revenues of $7,029,000 for the six months ended
June 30, 2004 increased $1,524,000 or 28% compared to total
revenues of $5,505,000 for the same period in 2003. The increase
primarily results from greater institutional and private client
commission revenues from more and larger customers. Stockholders'
equity of $2,672,000 does not give effect to the unrecorded
contingent deferred bonuses payable of $1,481,000 as of June 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 June 30, December 31, 2004 2003 (unaudited) ASSETS Cash
and cash equivalents $3,273,365 $2,084,114 Deposit with clearing
organization 250,000 250,000 Security deposits 15,394 199,709
Commissions and other receivables 797,198 781,752 Non-marketable
investments, at fair value 19,500 37,000 Fixed assets, net 336,085
356,487 Prepaid expenses and other 137,516 257,852 Goodwill 117,385
117,385 Total Assets $4,946,443 $4,084,299 LIABILITIES AND
STOCKHOLDERS' EQUITY Liabilities: Salaries, bonuses and commissions
payable $1,734,165 $1,208,654 Accounts payable and accrued
liabilities 374,858 341,766 Income taxes payable 165,413 -- Total
Liabilities 2,274,436 1,550,420 Contingencies - principally
unrecorded contingent deferred bonuses and lease obligations
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 June 30, 2004 and December 31, 2003, respectively
31,418 32,023 Paid-in-capital 5,337,242 5,412,287 Retained deficit
(2,696,653) (2,910,431) Total Stockholders' Equity 2,672,007
2,533,879 Total Liabilities and Stockholders' Equity $4,946,443
$4,084,299 DETWILER, MITCHELL & CO. CONSOLIDATED STATEMENT OF
OPERATIONS For the Three Months For the Six Months Ended June 30,
Ended June 30, 2004 2003 2004 2003 (unaudited) Revenues Commissions
$3,140,193 $3,044,246 $6,844,024 $5,325,434 Interest and fees
72,472 82,247 158,069 154,471 Unrealized gain on non-marketable
investments -- 25,000 27,247 25,000 Total revenues 3,212,665
3,151,493 7,029,340 5,504,905 Expenses Compensation and benefits -
exclusive of contingent deferred bonuses 2,101,707 1,870,891
4,325,050 3,431,576 General and administrative 517,232 431,525
1,078,398 969,257 Occupancy, communications and systems 332,875
329,312 698,077 726,060 Execution costs 247,721 213,960 531,174
385,206 Impairment of non-marketable investments -- -- 17,500 --
Loss on transfer of lease and disposal of fixed assets -- 385,329
-- 385,329 Total expenses 3,199,535 3,231,017 6,650,199 5,897,428
Income (loss) before income taxes 13,130 (79,524) 379,141 (392,523)
Income tax expense (18,959) (46,848) (165,363) (167,141) Net income
(loss) $(5,829) $(126,372) $213,778 $(559,664) Income (Loss) Per
Share: Basic $(0.00) $(0.04) $0.07 $(0.18) Diluted $(0.00) $(0.03)
$0.06 $(0.16) Weighted Average Shares Outstanding: Basic 3,173,759
3,202,356 3,188,057 3,186,800 Diluted 3,567,865 3,665,108 3,595,642
3,602,478 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/
Copyright
