-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VZVBFo6cDiJFxiQliOTwkvSmtGCueNDjbaqzCg62exuIPV5VD7XEiNJbVn1D1Rj9 9BNRu6/Omhp8DjBL6RBIRA== /in/edgar/work/0000083125-00-000017/0000083125-00-000017.txt : 20001121 0000083125-00-000017.hdr.sgml : 20001121 ACCESSION NUMBER: 0000083125-00-000017 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST MONTAUK FINANCIAL CORP CENTRAL INDEX KEY: 0000083125 STANDARD INDUSTRIAL CLASSIFICATION: [6211 ] IRS NUMBER: 221737915 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-06729 FILM NUMBER: 773706 BUSINESS ADDRESS: STREET 1: 328 NEWMAN SPRINGS RD STREET 2: PKWY 109 OFFICE CTR CITY: RED BANK STATE: NJ ZIP: 07701 BUSINESS PHONE: 7328424700 MAIL ADDRESS: STREET 1: 328 NEWMAN SPRINGS RD STREET 2: PKWY 109 OFFICE CTR CITY: RED BANK STATE: NJ ZIP: 07701 FORMER COMPANY: FORMER CONFORMED NAME: MCC PRESIDENTIAL INC DATE OF NAME CHANGE: 19871203 FORMER COMPANY: FORMER CONFORMED NAME: RENAULT WINERY INC DATE OF NAME CHANGE: 19740725 FORMER COMPANY: FORMER CONFORMED NAME: PRESIDENTIAL APARTMENTS INC DATE OF NAME CHANGE: 19740327 10-Q 1 0001.txt QUARTERLY REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2000 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from --------------- to ------------------- Commission File No. 0-6729 FIRST MONTAUK FINANCIAL CORP (Exact name of registrant as specified in its charter) New Jersey 22-1737915 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) Parkway 109 Office Center, 328 Newman Springs Rd., Red Bank, NJ 07701 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (732) 842-4700 Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the Registrant (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No 9,312,293 Common Shares, no par value, were outstanding as of November 17, 2000. Page 1 of 11 02 FIRST MONTAUK FINANCIAL CORP FORM 10-Q SEPTEMBER 30, 2000 INDEX Page PART I. FINANCIAL INFORMATION: Item 1. Financial Statements Consolidated Statements of Financial Condition as of September 30, 2000 and December 31, 1999 ....... 3 Consolidated Statements of Income for the Nine Months ended September 30, 2000 and 1999 and Nine Months ended September 30, 2000 and 1999 ...... 4 Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2000 and 1999 ...... 5 Notes to Financial Statements .......................... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ......... 7-9 PART II. OTHER INFORMATION: Item 5. Other Information................................ 10 Item 6. Exhibits and Reports on Form 8-K................. 10 Signatures ............................................... 11 03 FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION September 30, December 31, ASSETS 2000 1999 Cash $ 4,658,197 $ 686,980 Due from clearing firm 2,530,976 6,462,346 Trading and investment account securities 3,547,845 3,475,891 Commissions receivable 47,121 345,996 Global leases receivable 297,900 824,313 Notes receivable 258,183 482,531 Employee and broker receivables 986,173 452,285 Property and equipment - net 2,442,489 2,193,506 Due from officers 121,058 132,754 Deferred tax asset-net 554,914 664,256 Other assets 865,451 1,338,326 ----------- ----------- Total assets $ 16,310,307 $ 17,059,184 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Securities sold, but not yet purchased, at market $ 489,065 $ 180,280 Notes payable 625,679 1,477,428 Commissions payable 1,466,516 2,710,736 Accounts payable 549,311 525,809 Accrued expenses 1,084,760 1,072,552 Income taxes payable 858,072 510,226 Other liabilities 777,440 952,015 ----------- ----------- Total liabilities 5,850,843 7,429,046 ----------- ----------- Common stock issued with guaranteed selling price - no par value, 18,000 shares issued and outstanding 36,500 36,500 Commitments and contingencies (See Notes) Stockholders' equity Convertible preferred stock, 5,000,000 shares authorized, $.10 par value, 349,511 shares issued and outstanding respectively; stated at liquidation value. 1,747,555 1,747,555 Common Stock, no par value, 30,000,000 shares authorized, 9,312,293 and 10,035,943 shares issued and outstanding, respectively 5,241,738 5,185,818 Additional paid-in capital 2,569,231 2,368,126 Retained earnings 2,555,070 1,023,057 Less: Deferred compensation (494,289) (508,294) Less: Treasury stock (798,634, and 180,500 shares, respectively) (1,196,341) (222,624) ----------- ----------- Total stockholders' equity 10,422,964 9,593,638 ----------- ----------- Total liabilities and stockholders' equity $ 16,310,307 $ 17,059,184 =========== =========== See notes to financial statements.
04 FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Nine months ended September 30, Three months ended September 30, 2000 1999 2000 1999 Revenues: Commissions $ 37,765,633 $ 28,753,439 $ 10,122,888 $ 8,775,484 Principal transactions 8,031,153 9,073,724 1,226,532 2,533,481 Investment banking 2,448,489 257,264 669,663 75,103 Interest and other income 2,258,924 1,652,030 651,950 762,674 ----------- ----------- ----------- ----------- 50,504,199 39,736,457 12,671,033 12,146,742 ----------- ----------- ----------- ----------- Expenses: Commissions, employee compensation and benefits 38,317,291 29,190,712 10,671,549 8,871,483 Clearing and floor brokerage 3,278,104 3,126,008 878,429 860,232 Communications and occupancy 2,092,461 1,952,921 610,828 662,154 Legal matters and related costs 572,016 947,755 249,156 285,501 (Gain) Loss on Global lease settlements - 600,416 - 600,416 Other operating expenses 3,322,906 2,160,144 817,273 663,585 Interest 146,801 121,866 32,345 39,072 ----------- ----------- ----------- ----------- 47,729,579 38,099,822 13,259,580 11,982,443 ----------- ----------- ----------- ----------- Income (loss) before income taxes 2,774,620 1,636,635 (588,547) 164,299 Income taxes 1,132,626 180,298 (198,374) 65,000 ----------- ----------- ----------- ----------- Net income (loss) before extraordinary items 1,641,994 1,456,337 (390,173) 99,299 Extraordinary loss-extinguishment of debt, net of tax (34,200) - - - ----------- ----------- ----------- ----------- Net income (loss) $ 1,607,794 $ 1,456,337 $ (390,173) $ 99,299 =========== =========== =========== ============ Net income (loss) available to common stockholders $ 1,532,012 $ 1,413,993 $ (414,876) $ 56,955 =========== =========== =========== ============ Per share of Common Stock: Basic: Before extraordinary loss $ 0.16 $ 0.14 $ (0.04) $ 0.01 Extraordinary loss - - - - ----------- ----------- ----------- ------------ Net income (loss) $ 0.16 $ 0.14 $ (0.04) $ 0.01 =========== =========== =========== ============ Diluted: Before extraordinary loss $ 0.15 $ 0.14 $ (0.04) $ 0.01 Extraordinary loss - - - - ----------- ----------- ----------- ------------ Net income (loss) $ 0.15 $ 0.14 $ (0.04) $ 0.01 =========== =========== =========== ============ Weighted average common shares outstanding-basic 9,560,256 9,880,174 9,394,457 9,908,027 =========== =========== =========== ============ Weighted average common shares outstanding-diluted 11,018,623 10,678,523 9,394,457 10,823,564 =========== =========== =========== ============ See notes to financial statements.
05 FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended September 30, 2000 1999 INCREASE (DECREASE) IN CASH Cash flows from operating activities: Net income $ 1,607,794 $ 1,456,337 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 449,202 306,513 Amortization 240,154 139,462 Loss on Global lease settlements - 465,134 Bad debt reserves 149,640 - Increase (decrease) in cash attributable to changes in operating assets and liabilities: due from clearing firm 3,931,370 377,774 Trading and investment account securities (71,954) (2,072,640) Commissions receivable 298,875 83,521 Due from officers 11,696 (5,411) Employee and broker receivables (533,888) (209,100) Other assets 472,875 174,044 Deferred income taxes 109,342 82,315 Securities sold but not yet purchased 308,785 (107,222) Commissions payable (1,244,220) 139,706 Accounts payable 23,504 (117,104) Accrued expenses 12,208 51,120 Income taxes payable 347,846 93,417 Other liabilities (137,260) (269,088) ----------- ----------- Total adjustments 4,368,175 (867,559) ----------- ----------- Net cash provided by operating activities 5,975,969 588,778 ----------- ----------- Cash flows from investing activities: Issuance of notes receivable - (243,616) Collection of notes receivable 74,708 93,884 Collection of Global leases receivable 526,413 447,750 Additions to property and equipment (711,037) (493,381) Dispositions of property and equipment 12,851 - ----------- ----------- Net cash used in investing activities (97,065) (195,363) ----------- ----------- Cash flows from financing activities: Payment of notes payable (773,172) (88,347) Payment of subordinated notes payable (50,000) (50,000) Payment of capital lease payable (90,936) (82,969) Payment of preferred stock dividend (75,782) (42,344) Exercise of stock options 55,920 104,261 Repurchase of common stock (973,717) (51,559) ----------- ----------- Net cash used in financing activities (1,907,687) (210,958) ----------- ----------- Net increase in cash 3,971,217 182,457 Cash at beginning of period 686,980 613,513 ----------- ----------- Cash at end of period $ 4,658,197 $ 795,970 =========== ========== Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 146,801 $ 121,866 =========== ========== Income taxes $ 675,347 $ 2,952 =========== ========== Global lease settlement: Global leases received in settlement transaction $ - $ 1,219,903 =========== ========== Note payable issued $ - $ 625,917 =========== ========== Preferred stock issued $ - $ 1,693,750 =========== ========== See notes to financial statements.
06 FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2000 NOTE 1 - MANAGEMENT REPRESENTATION The accompanying financial statements are unaudited for the interim period, but include all adjustments (consisting only of normal recurring accruals) which management considers necessary for the fair presentation of results at September 30, 2000 and 1999. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could vary from these estimates. These financial statements should be read in conjunction with the Company's Annual Report at, and for the year ended December 31, 1999, as filed with the Securities and Exchange Commission on Form 10-K. The results reflected for the nine-month and three-month periods ended September 30, 2000, are not necessarily indicative of the results for the entire fiscal year to end on December 31, 2000. NOTE 2 - EARNINGS PER SHARE Basic EPS is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution from the exercise of stock options and the deemed conversion of preferred stock and convertible debt. The EPS calculations do not include warrants to purchase approximately 9,240,000 common shares because they are anti-dilutive. NOTE 3 - SHARE REPURCHASE During the nine months ended September 30, 2000, the Company repurchased 618,134 shares of its common stock for $973,717 under a share repurchase program authorized in 1999. NOTE 4 - NEW CLEARING/FINANCIAL AGREEMENT In May 2000, the Company entered into a 10-year clearing agreement with Fiserv Securities, Inc. ('Fiserv') under which Fiserv will act as the Company's primary clearing broker. In connection with the clearing agreement, the Company and Fiserv also entered into a financial agreement under which Fiserv will provide a cash advance of $4,000,000 to the Company upon the date of conversion to Fiserv. In November 2000, the Company completed the conversion of its customer accounts to Fiserv, and received the initial cash advance of $4,000,000. NOTE 5 - DEBT PREPAYMENT In May 2000, the Company repaid $570,000 of convertible notes for 110% of face value, or $627,000. The $57,000 premium was recorded as an extraordinary loss, net of income taxes of $22,800. 07 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Factors Affecting "Forward-Looking Statements" From time to time, the Company may publish "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, or make oral statements that constitute forward-looking statements. These forward-looking statements may relate to such matters as anticipated financial performance, future revenues or earnings, business prospects, projected ventures, new products, anticipated market performance, and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company cautions readers that a variety of factors could cause the Company's actual results to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. These risks and uncertainties, many of which are beyond the Company's control, include, but are not limited to: (i) transaction volume in the securities markets, (ii) the volatility of the securities markets, (iii) fluctuations in interest rates, (iv) changes in regulatory requirements which could affect the cost of doing business, (v) fluctuations in currency rates, (vi) general economic conditions, both domestic and international, (vii) changes in the rate of inflation and related impact on securities markets, (viii) competition from existing financial institutions and other new participants in competition from existing financial institutions and other new participants in the securities markets, (ix) legal developments affecting the litigation experience of the securities industry, and (x) changes in federal and state tax laws which could affect the popularity of products sold by the Company. The Company does not undertake any obligation to publicly update or revise any forward-looking statements. General The Company, through its wholly-owned broker-dealer subsidiary, is primarily engaged in securities brokerage and trading as a principal in equities and fixed income securities. The Company also engages in investment advisory activities, insurance and annuity sales. All of these activities are highly competitive and sensitive to many factors outside the control of the Company, including market volatility, investor confidence and participation in the markets and general economic conditions. Results of Operations Three Months Ended September 30, 2000 (the "2000 Period") vs. September 30, 1999 (the "1999 Period")
Three Months Ended September 2000 1999 (000's) % Change (000's) Revenues: Commissions $ 10,123 15 $ 8,775 Principal transactions 1,226 (52) 2,534 Investment banking 670 793 75 Interest and other income 652 (14) 763 ------ ---- ------ $ 12,671 4 $12,147 Three Months Ended September 2000 1999 (000's) % Change (000's) Expenses: Commissions, compensation and benefits $ 10,672 20 $ 8,871 Clearing and floor brokerage 878 2 860 Communications and occupancy 611 (8) 662 Legal matters and related costs 249 (13) 286 Loss on Global lease settlements - (100) 600 Other operating expenses 817 23 664 Interest 32 (18) 39 ------ ----- ------ $ 13,259 11 $11,982
08 As the financial markets continued to experience significant volatility and uncertainty, the Company's results of operations reflected such conditions. For the three months ended September 30, 2000, the Company recorded revenue of $12,761,000, a slight increase of $525,000 or 4% over the third quarter of 1999. The lack luster performance can be attributed to the industry-wide pullback in market activity during the second and third quarters of 2000 as a result of volatility in the technology sector, the decrease in trading volume and the decrease in overall market values in both the Nasdaq and listed markets. Included in the 2000 Period total revenues, are realized and unrealized losses of $481,000 from market-making and investment activities in Jeremy's MicroBatch Ice Creams, which the Company took public in February 2000. Commission revenue from the sale of listed and over-the-counter securities and other agency transactions increased to $6,534,000 (52% of total revenues) during 2000, from $6,284,000 (52% of total revenues). Commission revenue from the sale of mutual funds, insurance products, and fees from managed accounts rose to $3,589,000 (28% of total revenues) for the 2000 Period from $2,491,000 (21% of total revenues), an increase of 44% over 1999. Revenues from market-making activities and principal trading accounted for the largest decrease in revenues. Revenues for the 2000 Period were $1,227,000, down from $2,533,000 in 1999, a decrease of 52%. The decrease is due to investment and trading losses in Nasdaq securities as well as losses relating to the Company's investment and market-making activities in Jeremy's MicroBatch Ice Creams. Investment banking revenues increased by $595,000, due to one private placement transaction completed during the period, which was introduced to the Company by one of its affiliate brokers. Compensation and benefits for the 2000 Period increased $1,800,000 or 20% over the same period last year. This category includes salaries, commission expense, payroll taxes and fringe benefits for salaried employees. Commissions paid to registered representatives for 2000 were $8,798,000 (69% of total revenues) as compared to $7,281,000 (60% of total revenues) in 1999, an increase of $1,517,000. Commission expense as a percentage of total revenues will fluctuate depending upon the product mix of commission-based versus principal transactions and trading gains and losses. The Company pays out a higher percentage on agency and investment banking transactions, which increased in the 2000 Period when compared with the 1999 Period. In addition, trading and investment losses for the 2000 Period reduced principal transaction revenue, which had the effect of increasing the percentage of commission expense to total revenue. Clearing costs, which is associated with the level of transaction volume, remained fairly constant during the 2000 Period. For the 2000 Period, clearing costs were $878,000 (7% of total revenues) as compared to $860,000 (7% of total revenues) when compared to the 1999 Period. The percentage of clearing costs to gross revenues can fluctuate depending upon the product mix. Certain transactions, such as options and bonds, have a higher execution and clearing cost than others. Subsequent to the 2000 Period, the Company entered into a new clearing arrangement with Fiserv Securities, Inc. Communications and occupancy costs were $611,000 (5% of total revenues) for the 2000 Period as compared to $662,000 (5% of total revenues) for the 1999 Period. Other operating expenses increased by $154,000, to $817,000, during the 2000 Period when compared to the 1999 Period. The increase is due primarily to increased advertising campaigns for its discount brokerage division and registered representative recruiting. The Company continued to benefit from the enhanced supervision and compliance measures it implemented in 1999. Legal settlement costs for the three-month period of 2000 was less than $1,000 compared to $114,000 for the same period last year. The cost of defending certain claims increased by $77,000 during the 2000 Period. The Company is currently a respondent in various customer claims arising in the normal course of its securities business; however, none of these claims is expected to have a material impact on its financial condition. The effective tax rates for the nine months and three months ended September 30, 2000 were 40.8% and (33.7%), respectively, as compared to 11% and 39%, in the respective 1999 periods. Income taxes were accrued on 2000 income to date using regular statutory federal and state tax rates. The tax benefit on the September 2000 quarterly loss was less than expected due to valuation allowances provided on certain subsidiary company state tax losses. 09 For the 2000 Period, the Company reported a net loss of $415,000 or $(.04) per basic and diluted share, as compared to a net income of $57,000, or $.01 per basic and diluted share for the 1999 Period. For the nine months ended September 30, 2000, the Company reported net income available to common stockholders of $1,532,000, or $.16 per basic and $.14 per diluted share, respectively, as compared to net income of $1,414,000, or $.14 per basic and diluted share for the nine months ended September 30, 1999. Liquidity and Capital Resources The Company maintains a highly liquid balance sheet with 66% of the Company's assets consisting of cash and cash equivalents; securities owned, which are marked to market; and receivables from the Company's clearing firm and other broker-dealers. Market-making and other securities dealer activities require the Company to carry significant levels of securities inventory in order to meet customer and internal trading needs. Additionally, the Company's liquidity can fluctuate significantly depending largely upon general economic and market conditions, volume of activity, and investment opportunities. Net cash provided by operating activities for the nine months was $5,976,000. The primary source of this increase was the net income for the nine months of $1,608,000 and the reduction in the receivable due from the clearing firm of $3,931,000. Investing activities required cash of $97,000 over the last nine months. Additions to capital expenditures consumed $711,000; the majority of which was in the first quarter of 2000. The Company projects additional expenditures for infrastructure and technology, particularly for the Company's move to the new clearing firm, to be approximately $100,000 for the remainder of fiscal 2000. Collection of notes receivable and Global leases receivable provided cash of $601,000. Financing activities used cash of $1,908,000 during the first nine months of 2000. A total of $974,000 was used to repurchase 618,134 of the Company's outstanding shares pursuant to a stock repurchase program authorized by the board of directors in August 1999. In addition, the Company made notes and capital lease repayments of $914,000 and dividend payments to preferred shareholders of $76,000. A total of $56,000 was received from the exercise of 57,000 stock options by various individuals during the year. In October 1998, the Company issued a series of Convertible Promissory Notes aggregating $570,000 to a private investor in consideration of $300,000 in cash and an income stream from equipment lease investments with a remaining balance of approximately $270,000. The notes carry interest at the rate of 10% per annum, payable semi-annually on April 1 and October 1 of each year, and are convertible into a maximum of 380,000 shares of the Company's Common Stock at the rate of $1.50 per share. In May 2000, the Company prepaid the note in full for 110% of face value, or $627,000. The $57,000 premium was recorded as an extraordinary loss, net of income taxes of $22,800. In May 2000, the Company entered into a 10-year clearing agreement with Fiserv Securities, Inc. under which Fiserv will act as the Company's primary clearing broker. In connection with the clearing agreement, the Company and Fiserv also entered into a financial agreement under which Fiserv will provide a cash advance of $4,000,000 to the Company, which was received on November 13, 2000. The funds, net of federal and state income taxes, will be used primarily to enable the Company to pay for the cost of conversion to Fiserv and expand the Company's business. For financial reporting purposes, the Company will earn the advance in accordance with an amortization schedule established by the parties; however, the Company will incur an income tax liability at its effective tax rate on the entire advance in the year in which it is received. The Company is required to repay any unearned portion of the $4,000,000 in the event it fails to achieve certain minimum performance criteria or terminates the agreement under certain circumstances prior to the expiration date as well as penalties for early termination. Fiserv has also agreed to provide certain additional advances to the Company in the second, third and fourth years of the agreement under similar conditions provided the Company achieves certain performance criteria and subject to certain other conditions. These advances, if received, will also be amortized to income as earned during the term of the clearing agreement. The Company believes that the advance received net of taxes will be sufficient to pay for the anticipated costs of conversion. Management believes that operating income will satisfy the Company's liquidity needs, at least through the current fiscal year. 10 PART II OTHER INFORMATION Item 5. Other Information. New Clearing Arrangement In May 2000, the Company entered into a 10-year clearing agreement with Fiserv Securities, Inc. ("Fiserv") under which Fiserv will act as the Company's primary clearing broker. In connection with the clearing agreement, the Company and Fiserv also entered into a financial agreement under which Fiserv will provide a cash advance of $4,000,000 to the Company upon the date of conversion to Fiserv. In November 2000, the Company completed the conversion of its customer accounts to Fiserv, and received the initial cash advance of $4,000,000. Stock Repurchase Program During the quarter ended September 30, 2000, the Company repurchased 170,200 shares of its common stock for $201,075 under a share repurchase program authorized in 1999. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits None. (b) Reports on Form 8-K There were no reports on Form 8-K filed. 11 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FIRST MONTAUK FINANCIAL CORP. (Registrant) Dated: November 20, 2000 /s/ William J. Kurinsky ---------------------------------- William J. Kurinsky Secretary/Treasurer Chief Financial Officer and Principal Accounting Officer /s/ Herbert Kurinsky ---------------------------------- Herbert Kurinsky President EXHIBIT INDEX ------------- Exhibit 11 - Computation of Earnings Per Share Exhibit 27 - Financial Data Schedule EX-11 2 0002.txt COMPUTATION OF EARNINGS PER SHARE Exhibit 11 First Montauk Financial Corp. Computation of Earnings Per Share Nine months ended September 30, Three months ended September 30, 2000 1999 2000 1999 Numerator: Basic: Income (loss) before extraordinary loss $ 1,641,994 $ 1,456,337 $ (390,171) $ 99,299 Extraordinary loss (34,200) - - - ---------- ----------- ---------- ----------- Net income (loss) 1,607,794 1,456,337 (390,171) 99,299 Deductions: Preferred stock dividends (75,784) (42,344) (24,705) (42,344) ---------- ----------- ---------- ----------- Net income (loss) for basic computation $ 1,532,010 $ 1,413,993 $ (414,876) $ 56,955 ========== =========== ========== =========== Diluted: Net income (loss) for basic computation $ 1,532,010 $ 1,413,993 $ - $ 56,955 Additions: Preferred stock dividends 75,784 42,344 - 42,344 Interest on convertible debt, net of taxes 16,746 25,650 - 8,550 --------- ----------- ----------- ----------- Net income (loss) for diluted computation $ 1,624,540 $ 1,481,987 $ - $ 107,849 ========== =========== =========== =========== Denominator: Basic: Weighted average common shares outstanding 9,560,256 9,880,174 9,394,457 9,908,027 ========== =========== =========== =========== Diluted: Weighted average common shares outstanding-basic 9,560,256 9,880,174 9,394,457 9,908,027 Additions: Incremental shares from assumed conversion of stock options and warrants using the treasury stock method 245,193 361,891 - 309,726 Incremental shares from assumed conversion of convertible debt and preferred stock using the if-converted method 1,213,174 436,458 - 605,811 ---------- ----------- ----------- ----------- Weighted average common and common equivalent shares outstanding-diluted 11,018,623 10,678,523 9,394,457 10,823,564 ========== =========== =========== =========== Per share: Basic: Before extraordinary loss $ 0.16 $ 0.14 $ (0.04) $ 0.01 Extraordinary loss - - - - ---------- ----------- ----------- ------------- Net income (loss) $ 0.16 $ 0.14 $ (0.04) $ 0.01 ========== =========== =========== ============= Diluted Before extraordinary loss $ 0.15 $ 0.14 $ (0.04) $ 0.01 Extraordinary loss - - - - ---------- ----------- ----------- ------------- Net income (loss) $ 0.15 $ 0.14 $ (0.04) $ 0.01 ========== =========== =========== =============
EX-27 3 0003.txt FDS --
BD This Schedule contains summary financial information extracted from Consolidated Statement of Financial Condition at September 30, 2000 and Consolidated Statement of Income -- Six Months ended September 30, 2000 and is qualified in its entirety by reference to such financial statements included in Form 10-Q for September 30, 2000. 0000083125 First Montauk Financial Corp. 1,000 3-mos Dec-31-2000 Jul-1-2000 Sep-30-2000 4,658 2,578 0 0 3,548 2,442 16,310 0 4,736 0 0 489 626 0 1,748 5,242 3,434 16,310 1,226 652 10,123 670 0 32 10,672 (589) (390) 0 0 (390) (.04) (.04)
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