8-K 1 form8kaug152006.txt FORM 8-K DATE OF REPORT AUGUST 15, 2006 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): August 14, 2006 FIRST MONTAUK FINANCIAL CORP. ----------------------------- (Exact name of registrant as specified in its charter) COMMISSION FILE NUMBER: 0-6729 ------ NEW JERSEY 22-1737915 ---------- ---------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) Parkway 109 Office Center 328 Newman Springs Road Red Bank, NJ 07701 (Address and zip code of principal executive offices) (732) 842-4700 (Registrant's telephone number, including area code) CHECK THE APPROPRIATE BOX BELOW IF THE FORM 8-K FILING IS INTENDED TO SIMULTANEOUSLY SATISFY THE FILING OBLIGATION OF THE REGISTRANT UNDER ANY OF THE FOLLOWING PROVISIONS: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 1 of 2 Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On August 14, 2006, First Montauk Financial Corp. (the "Registrant") issued a press release announcing results for the fiscal quarter ended June 30, 2006. A copy of the press release is attached as exhibit 99.1. The information in this report shall not be deemed to be "filed" for purposes of Section 18 of, or otherwise regarded as filed under, the Securities Exchange Act of 1934, as amended. Unless expressly incorporated into a filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, made after the date hereof, the information contained herein shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing. Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS Exhibit Press Release of First Montauk Financial Corp. 99.1 dated August 14, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized. FIRST MONTAUK FINANCIAL CORP. By: /s/ Victor K. Kurylak ------------------------------ Name: Victor K. Kurylak Title: Chief Executive Officer Date: August 15, 2006 EXHIBIT INDEX Exhibit Description Number ------ 99.1 Press Release of First Montauk Financial Corp. dated August 14, 2006. Exhibit 99.1 FIRST MONTAUK FINANCIAL CORP. ANNOUNCES NET INCOME FOR SECOND QUARTER ENDED JUNE 30, 2006 Red Bank, NJ - August 14, 2006 - First Montauk Financial Corp. (OTC/BB: FMFK), a nationwide provider of investment services through independent financial professionals, today announced that the Company had net income applicable to common stockholders for the quarter ended June 30, 2006 of $1.0 million, or $.06 and $.05 per basic and diluted share, respectively, compared to net income applicable to common stockholders of $4.0 million, or $.28 and $.20 per basic and diluted share, respectively, for the quarter ended June 30, 2005. Revenues for the second quarter decreased 18%, to $13.6 million, compared to $16.6 million for the same period in 2005. For the second quarter ended June 30, 2005, the Company would have reported revenue of $11.7 million exclusive of $4.9 million of revenue resulting from the acceleration of the remaining deferred revenue in connection with the termination of our financial agreement with Fiserv Securities, Inc. ("Fiserv"), our former clearing firm. For the six months ended June 30, 2006, the Company reported net income before taxes of $53,000 on revenues of $26.9 million. Net income before taxes reported for the six months ended June 30, 2005 was $3.5 million on revenues of $32.1 million. For the six months ended June 30, 2005 the Company would have reported a net loss before taxes of ($1,400,000) exclusive of the $4.9 million deferred revenue recorded as a result of the termination of our financial agreement with Fiserv. The Company reported a net loss applicable to common stockholders for the six months ended June 30, 2006 of ($77,000) or $.0 per basic and diluted share, compared to a net income applicable to common stockholders of $3.3 million or $.24 per basic and $.18 per diluted share for the same period in 2005. Montauk Financial Group is a service mark of First Montauk Securities Corp., Member NASD/SIPC. First Montauk Financial Corp. is the parent company of First Montauk Securities Corp., a registered securities broker/dealer headquartered in Red Bank, NJ, with approximately 50,000 retail and institutional accounts. The Company's ability to offer quality support services, research, web-based information systems and a competitive commission payout structure has attracted independent, professional registered representatives across the country. Additional information is available at the Company's website at www.montaukfinancial.com. Statements contained in this news release regarding expected financial results of the Company and First Montauk Securities Corp., are forward-looking statements, subject to uncertainties and risks, many of which are beyond the Company's control, including, but not limited to, market conditions, interest rate and currency fluctuations, dependence on key personnel, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Factors Affecting Forward Looking Statements" in the Company's Form 10-Q for the second quarter ended June 30, 2006, as filed with the Securities and Exchange Commission. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance. FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES SELECTED FINANCIAL DATA In 000's (except for per share amounts) Six months Three months ended June 30, ended June30, (unaudited) (unaudited) 2006 2005 2006 2005 ---- ---- ---- ---- Revenues $26,918 $32,146 $13,606 $16,580 Expenses 26,865 28,613 12,530 12,160 ------ ------ ------ ------ Net income before income taxes $ 53 $ 3,533 $1,076 $ 4,420 ==== ======= ====== ======== Net income (loss) applicable $ (77) $ 3,271 $ 1,009 $ 4,016 ====== ======= ======= ======== to common stockholders Earnings (loss) per share of common stock: Basic $ - $ 0.24 $0.06 $ 0.28 === ====== ===== ====== Diluted $ - $ 0.18 $0.05 $0.20 === ====== ===== ===== Weighted average number of shares of stock outstanding: Basic Diluted 15,594,185 13,421,349 15,842,628 14,411,053 16,515,509 20,251,184 19,363,508 21,251,791 Contact: Montauk Financial Group Victor K. Kurylak President, CEO 732-842-4700, ext. 4230 info@montaukfinancial.com