-----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, PCXpe89DXXQdtH4klY9y9/kN01HXGaBwZKHQD5arzrG5BcqtKAeeygh/1sNJWwUa il3PN+5FUKNwphSBehfmhA== 0001044560-97-000005.txt : 19971127 0001044560-97-000005.hdr.sgml : 19971127 ACCESSION NUMBER: 0001044560-97-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971113 DATE AS OF CHANGE: 19971126 SROS: NASD 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: 97728347 BUSINESS ADDRESS: STREET 1: 328 NEWMAN SPRINGS RD STREET 2: PKWY 109 OFFICE CTR CITY: RED BANK STATE: NJ ZIP: 07701 BUSINESS PHONE: 9088424700 MAIL ADDRESS: STREET 1: PKWY 109 OFFICE CTR STREET 2: 328 NEWMAN SPRINGS RD 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 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, 1997 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 9,218,354 Common Shares, no par value were outstanding as of November 13, 1997. Page 1 of 13 02 FIRST MONTAUK FINANCIAL CORP. FORM 10-Q SEPTEMBER 30, 1997 INDEX Page PART I. FINANCIAL INFORMATION: Item 1. Financial Statements Consolidated Statement of Financial Condition as of September 30, 1997 and December 31, 1996 ................. 3 Consolidated Statement of Income for the Nine Months ended September 30, 1997 and 1996 and Three months ended September 30, 1997 and 1996 .............. 4 Consolidated Statement of Cash Flows for the Nine Months ended September 30, 1997 and 1996 .................. 5 Notes to Financial Statements ................................... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations .....................7-8 PART II. OTHER INFORMATION: Item 5. Other Information.......................................... 9 Item 6. Exhibits and Reports on Form 8-K........................... 9 Signatures......................................................... 10 03 FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL CONDITION September 30, December 31, ASSETS 1997 1996 Cash $ 910,808 $ 1,069,548 Securities owned, at market 2,748,318 2,129,435 Commissions receivable 781,576 720,381 Due from clearing firm 1,953,509 1,301,457 Income tax refund receivable 203,480 - Employee and broker receivables 751,515 741,603 Fixed assets-net 1,186,191 1,200,933 Due from officers 142,742 171,978 Other assets 1,254,046 854,536 Deferred tax asset 466,498 552,168 ------------- --------------- Total assets $ 10,398,683 $ 8,742,039 ============= =============== LIABILITIES AND STOCKHOLDERS' EQUITY Securities sold, but not yet purchased, at market $ 165,677 $ 127,627 Loans payable-bank 366,911 458,305 Commissions payable 1,876,488 1,552,218 Accounts payable 442,208 494,697 Accrued expenses 442,321 1,811,897 Other liabilities 232,602 180,516 Liabilities subordinated to claims of general creditors 250,000 - ------------- --------------- Total liabilities 3,776,207 4,625,260 ------------- --------------- Common stock issued with guaranteed selling price - no par value, 173,000 and 210,500 shares issued and outstanding, respectively 346,500 421,500 Commitments and contingencies (See Notes) Stockholders' equity Preferred Stock, 5,000,000 shares authorized, $.10 par value, no shares issued and outstanding - - Common Stock, no par value, 30,000,000 shares authorized, 9,202,354 and 8,222,481 shares issued and outstanding, respectively 4,187,892 3,588,273 Additional paid-in capital 911,871 243,961 Retained earnings 1,176,213 93,551 ------------- --------------- 6,275,976 3,925,785 Less: 196,802 shares in treasury, at cost - (230,506) ------------- --------------- Total stockholders' equity 6,275,976 3,695,279 ------------- --------------- Total liabilities and stockholders' equity $ 10,398,683 $ 8,742,039 ============= ===============
See notes to financial statements. 04 FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME Nine months ended Three months ended September 30, September 30, 1997 1996 1997 1996 Revenues: Commissions $ 19,508,612 $ 19,299,827 $ 7,345,703 $ 5,478,920 Principal transactions 5,270,309 6,663,900 2,393,556 1,143,117 Investment banking 314,549 482,663 89,403 213,247 Insurance recovery 650,000 - - - Interest and other income 880,263 735,389 325,437 233,853 ------------ ------------ ------------ ------------- 26,623,733 27,181,779 10,154,099 7,069,137 ------------ ------------ ------------ ------------- Expenses: Commissions, employee compensation and benefits 18,969,519 19,333,288 7,241,558 5,156,889 Clearing and floor brokerage 2,143,341 2,484,658 862,363 544,460 Communications and occupancy 1,379,534 1,150,870 497,140 431,887 Legal matters and related costs 935,448 1,381,077 268,107 1,112,073 Other operating expenses 1,303,776 1,558,927 396,968 368,890 Interest 72,230 80,436 18,407 22,358 ------------ ------------ ------------ ------------- 24,803,848 25,989,256 9,284,543 7,636,557 ------------ ------------ ------------ ------------- Income (loss) before income taxes 1,819,885 1,192,523 869,556 (567,420) Income taxes (benefit) 737,223 486,852 352,110 (233,225) ------------ ------------ ------------ ------------- Net income (loss) $ 1,082,662 705,671 $ 517,446 $ (334,195) ============ ============ ============ ============= Per share of Common Stock: Net income (loss) $ 0.11 $ 0.08 $ 0.05 $ (0.04) ============ ============ ============ ============= Number of shares 10,241,383 8,553,032 10,517,729 7,943,339 ============ ============ ============ =============
See notes to financial statements. 05 FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS Nine months ended September 30, 1997 1996 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Net income $ 1,082,662 $ 705,671 Adjustments to reconcile net income to net cash used in operating activities: Common stock issued with guaranteed selling price 28,125 335,000 Depreciation and amortization 236,450 168,800 Due from clearing firm (652,052) - Commissions receivable (61,195) (528,207) Securities owned - at market (618,883) 3,076,791 Income tax refund receivable (203,480) - Other assets ( 52,606) (573,615) Deferred income taxes 753,580 369,173 Due to clearing firm - (1,331,406) Securities sold but not yet purchased 38,050 31,201 Commissions payable 324,270 24,184 Accounts payable (52,489) (107,122) Accrued expenses (1,119,576) (426,342) Income taxes payable - (607,172) Other liabilities 52,086 (67,135) ------------- ------------ Total adjustments (1,327,720) 364,150 ------------- ------------ Net cash provided by (used in) operating activities (245,058) 1,069,821 ------------- ------------ Cash flows from investing activities: Due from officers 29,236 (30,007) Employee and broker receivables (9,912) (456,572) Investment in ECM - (24,000) Other assets (257,500) - Capital expenditures (221,708) (440,974) ------------- ------------ Net cash used in investing activities (459,884) (951,553) ------------- ------------ Cash flows from financing activities: Other assets (89,404) - Proceeds from bank loan - 179,625 Purchase of common stock - 28,731 Repurchase of common stock - (147,016) Proceeds from exercise of common stock options 727,000 - Payment of loans payable (91,394) (43,400) ------------- ------------ Net cash provided by financing activities 546,202 17,940 ------------- ------------ Net increase (decrease) in cash (158,740) 136,208 Cash at beginning of year 1,069,548 845,471 ------------- ------------ Cash at end of period $ 910,808 $ 981,679 ============= ============ Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 72,230 $ 80,436 Income taxes $ - $ 1,019,000 Noncash transactions: Shares issued with guaranteed resale price $ 28,125 $ 335,000 Tax benefit from exercise of stock options $ 667,910 $ - Liabilities subordinated to claims of general creditors $ 250,000 -
See notes to financial statements. 06 FIRST MONTAUK FINANCIAL CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEM*ENTS SEPTEMBER 30, 1997 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, 1997 and 1996. 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 audited financial statements at, and for the year ended December 31, 1996. The results reflected for the nine-month period ended September 30, 1997, are not necessarily indicative of the results for the entire fiscal year to end on December 31, 1997. NOTE 2 - EARNINGS PER SHARE Earnings per share is computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding during the period. Common stock equivalents include shares issuable upon the exercise of options. The difference between primary and fully diluted earnings per share is not material. NOTE 3 - STOCK OPTIONS During the nine-month period ended September 30, 1997, a total of 836,175 options issued under the Company's stock option plans were exercised. The Company received proceeds of $564,500 from these transactions. The exercise of the options have also produced benefits to the Company in the form of tax deductible compensation expense totalling $1,581,000. In connection with these deductions, the Company has recorded a deferred tax asset of $668,000 with an offsetting credit to additional paid-in capital as provided by applicable accounting rules. The Company also issued a total of 1,429,500 stock options during the nine-month period. NOTE 4 - NET CAPITAL REQUIREMENTS FMSC is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires FMSC to the maintenance of minimum net capital, as defined. At September 30, 1997, FMSC had net capital and minimum net capital requirements of $2,424,041 and $250,000, respectively. FMSC's ratio of aggregate indebtedness to net capital was 1.26 to 1. NOTE 5 - LEGAL MATTERS In January 1997, the Company and its broker-dealer subsidiary, FMSC, entered into an agreement to settle a customer lawsuit for a total of $750,000. A payment of $500,000 was made upon settlement; FMSC has issued a five-year note for the $250,000 balance, payable in installments of $50,000 per year plus interest at the rate of 8% per annum. The NASD recently approved FMSC's application to subordinate the loan for net capital purposes. The Securities and Exchange Commission has accepted an Offer of Settlement submitted by FMSC relating to the activities of a former affiliate office. The settlement involves the payment of a $50,000 fine, the disgorgement of profits amounting to $175,000 plus interest, and the censure and suspension of one of the Company's principals. The SEC has informally agreed to credit the disgorgement against amounts already due in settlement of related civil litigation. The Offer also requires FMSC to engage an independent compliance examiner to audit the firm's compliance procedures. FMSC has agreed to implement recommendations contained in the examiner's report. In January 1997, the Company and FMSC settled a pending customer arbitration for $500,000 in cash. The Company further agreed to issue to the customer and her counsel a total of 150,000 five-year warrants to purchase the Company's Common Stock for $1.25 per share. The warrantholders have exercised a total of 130,000 warrants to date. The Company is presently reviewing the extent to which settled and pending claims may be covered under its insurance policies. In January 1997, the Company negotiated a $650,000 settlement with one of its insurance carriers in consideration of a general release from coverage on various matters. Discussions with other carriers are continuing. There can be no assurance that the Company will be successful in its efforts to recover additional funds from its insurers on claims filed to date. 07 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Operating results for the quarter ended September 30, 1997 showed a strong improvement over the comparable 1996 quarter as well as over the first half of the current fiscal year. The Company reported total revenues of $10,154,000 for the 1997 quarter against $7,069,000 in 1996, increasing 1997 year-to-date revenues to $26,624,000 versus $27,182,000 in the 1996 nine-month period. Revenues had dropped off from 1996 levels earlier in the year partially as a result of management's decision to terminate certain brokers as part of a program to reduce legal and regulatory exposure. Revenues gained in the two key categories of commissions and principal transactions during the three months ended September 30, 1997. Quarterly commissions increased by 34% in 1997 to $7,346,000 as compared to $5,479,000 in 1996 due to a particularly strong contribution from agency sales of listed and over-the-counter equity securities. The Company clearly benefited from the continued record gains and volume levels generated by the U.S. stock markets during the 1997 quarter. The Company has also begun to reap the benefits of affiliate recruitment efforts that began earlier in the year. Revenues from principal transactions increased by $1,250,000, or 109%, in the 1997 quarter versus the 1996 quarter. The increase was due to a combination of higher transactions volume in the 1997 quarter as well as to a recovery in the performance of the Company's equity trading portfolio. Nine month revenues in 1997 of $5,270,000 remained below 1996 levels of $6,664,000 due to the exceptional gains reported in the first half of 1996 and the disappointing results from market-making and trading activities in the first half of 1997. During the nine months ended September 30, 1997, the Company incurred commissions, employee compensation and fringe benefits of $18,970,000 (71% of total revenues) as compared to $19,333,000 (71% of total revenues) in the comparable 1996 period. Commissions paid to registered representatives for 1997 were $15,889,000 (60% of total revenues) versus $16,692,000 (61% of total revenues) in 1996. Commission compensation is directly related to the level of revenues generated from firm trading, agency and investment banking activities, as well as the relative production of affiliates and in-house brokers during a given period. Affiliates generally receive higher payouts than in-house brokers but are responsible for their own overhead costs. Salaries for management, operations and clerical personnel totalled $2,510,000 for the nine months ended September 30, 1997 as compared to $2,062,000 for the comparable 1996 period. Staff salaries have been trending upward due to overall business expansion. The Company added personnel to its marketing, compliance and operations departments during the 1997 quarter. Clearing and floor brokerage costs declined from $2,485,000 in 1996 (9% of revenues) to $2,143,000 in 1997 (8% of total revenues) due primarily to above average business activity in the first half of 1996. The Company also negotiated a more favorable fee structure with its clearing firm in late 1996. On a quarterly basis, however, these costs increased from $544,000 in 1996 to $862,000 in 1997 due to the increase in transaction volume in the September 1997 quarter. The percentage of clearing and floor brokerage costs to total revenue will fluctuate somewhat depending upon the mix of agency and principal business, as well as the average revenue per ticket in a given period. Communications and occupancy costs rose by $229,000 to $1,380,000 for the nine months ended September 30, 1997. The increase is due to higher telephone charges, market data services, and occupancy expenses resulting from the addition of trading personnel, in-house brokers, and an expansion of operating facilities. The growth in this category is expected to moderate somewhat due to recently negotiated lower telephone rates, and with the impending discontinuation of the Compan's wide area network. The Company does, however, expect occupancy costs to increase with the continuing expansion of its home office. Legal matters and related costs decreased by $446,000 to $935,000 and by $844,000 to $268,000 in the nine-month and three-month periods ended September 30, 1997. This category includes payments to settle customer claims, professional fees and other defense costs, and provisions for pending litigation. The Company settled significant claims relating to its securities business in 1996 and early 1997. In March 1997, the Company received a $650,000 cash settlement from one of its insurance carriers. The Company is presently reviewing the extent to which settled and pending claims may be covered under other insurance policies. There can be no assurance that the Company will be successful in its efforts to recover additional funds from these insurers. Other operating expenses decreased from $1,559,000 (6% of revenues) in 1996 to $1,304,000 (5% of revenues) in 1997. The decrease was due primarily to a temporary reduction in marketing and advertising costs associated with the Company's affiliate recruitment program. Management has recently embarked on a new recruitment campaign, the costs of which will begin to appear in the next quarter. The Company's securities business continues to be sensitive to general economic conditions, particularly the interest rate and corporate earnings environment, as well as the outlook of retail investors on global financial markets. These markets have recently become more uncertain and volatile. 08 Liquidity and Capital Resources The balances in the Company's cash, clearing firm and securities inventory accounts can, and do fluctuate significantly from day to day, depending on market conditions, daily trading activity and investment opportunities. Cash decreased by $158,000 from December 31, 1996 to September 30, 1997. Net cash used in operations was $245,000. Net income of $1,083,000 and depreciation expense and other noncash charges of $265,000 were more than offset by increases in securities inventories of $581,000 and reductions in current liabilities of $848,000. Cash used in investing activities totalled $460,000 in the first nine months of 1997. The Company has purchased approximately $222,000 of fixed assets since the beginning of the fiscal year. In the current quarter, the Company's leasing subsidiary, Montauk Advisors, Inc. ("MAI") made loans of $258,000 to Global Financial Corp., the financing company which packages and sells leasing contracts through MAI. The purpose of the loans was to assist Global with its short-term cash flow requirements. The loans carry interest at 8% per annum and are due in full on April 1, 1998. Global may seek additional loans from MAI in the short-term, which requests will be considered by the Company on a case-by-case basis. In October, the Company loaned an additional $112,000 to Global. This loan also matures in April 1998. Financing activities provided cash of $546,000 in the nine-month period. The Company has received proceeds of $565,000 to date from the exercise of common stock options. During the current quarter, the Company also received $162,000 from the exercise of common stock purchase warrants issued in settlement of a customer complaint. During the second quarter, the National Association of Securities Dealers Regulation, Inc. approved a subordinated loan agreement between the Company and a creditor in the amount of $250,000. The five year loan carries interest of 8% per annum and is payable in five annual installments of $50,000 plus accrued interest on April 1 of each of the next five years. The principal amount had originally been recorded as an accrued expense in 1996. The Company is planning a rights offering of Units to holders of record of its common stock on a date to be determined during the fourth quarter of 1997. Each Unit will consist of three Redeemable Common Stock Purchase Warrants exercisable at prices of $3.00, $5.00, and $7.00 per share, respectively. If fully subscribed, the offering of Units will raise gross proceeds of approximately $1,382,000 based on a Unit subscription price of $.45 and the issuance of approximately 3,071,000 Units. The Company cannot give assurance that the offering will occur, or that if it does occur, that it will be fully subscribed. The Company believes that its current liquidity, together with the cash flows expected to be generated by operations will be sufficient to meet its cash needs for working capital and capital expenditures for the foreseeable future. 09 PART II OTHER INFORMATION Item 5. Other Information. None. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits Exhibit 11. Computation of Earnings Per Share for the Nine Months Ended September 30, 1997 and 1996 and the Three Months Ended September 30, 1997 and 1996. (b) Reports on Form 8-K There were no reports on Form 8-K filed. 10 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 13, 1997 /s/ William J. Kurinsky ------------------------ William J. Kurinsky Secretary/Treasurer Chief Financial Officer and Principal Accounting Officer /s/ Herbert Kurinsky ----------------------- Herbert Kurinsky President 11 EXHIBIT INDEX Exhibit 11. Computation of Earnings Per Share for the Nine Months Ended September 30, 1997 and 1996 and the Three Months Ended September 30, 1997 and 1996. Exhibit 27 - Financial Data Schedule 12 FIRST MONTAUK FINANCIAL CORP. COMPUTATION OF EARNINGS PER SHARE Exhibit 11 Nine Months Three Months Ended September 30, Ended September 30, 1997 1996 1997 1996 Primary Net income (loss) (a) $ 1,082,662 $ 705,671 $ 517,446 $ (334,195) =========== ========== ========== =========== Weighted average number of common shares outstanding 8,860,543 7,943,171 9,091,749 7,943,339 Assuming exercise of options reduced by the number of shares which could have been purchased with the proceeds from the exercise of such options 1,380,840 609,861 1,425,980 0 ----------- ---------- ---------- ----------- Weighted average number of common shares outstand- ing, as adjusted 10,241,383 8,553,032 10,517,729 7,943,339 =========== ========== =========== =========== Primary earnings per share (a) $ 0.11 $ 0.08 $ 0.05 $ (0.04) =========== =========== =========== =========== Additional primary - - ------------------ computation - - ----------- Net income (loss), per primary computa- tion above $ (334,195) =========== Additional adjustment to weighted average number of shares outstanding: Weighted average number of shares outstanding, as adjusted per primary computation above 7,943,339 Add-Dilutive effect of outstanding options and warrants (as determined by the application of the treasury stock method) 1,082,562 ----------- Weighted average number of shares outstanding, as adjusted 9,025,901 =========== Primary earnings per share, as adjusted (b) $ (0.04) =========== 13 Exhibit 11 Nine Months Three Months Ended September 30, Ended September 30, 1997 1996 1997 1996 Fully diluted - - ------------- Net income, as above $ 1,082,662 $ 705,671 $ 517,446 $ (334,195) ============ =========== ============= =========== Reconciliation of weighted average number of shares out- standing, as adjusted per primary computation above, to amount used for fully diluted computation Weighted average number of shares outstanding, as adjusted per primary above 10,241,383 8,553,032 10,517,729 7,943,339 Additional dilutive effect of outstanding options and warrants (as determined by the application of the treasury stock method) 46,018 81,108 0 0 ------------ ---------- ------------ ----------- 10,287,401 8,634,140 10,517,729 7,943,339 ============ ========== ============ =========== Net income (loss)(c) $ 0.11 $ 0.08 $ 0.05 $ (0.04) ============ =========== ============= =========== (a) These figures agree with the related amounts in the Statement of Income. (b) This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although it is contrary to paragraph 40 of APB Opinion No. 15 because it produces an anti-dilutive result. (c) This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%. EX-27 2 FDS --
BD (Replace this text with the legend) 0000083125 First Montauk Financial Corp. 1,000 3-mos Dec-31-1997 Jul-1-1997 Sep-30-1997 911 2,735 0 0 2,748 1,186 10,399 0 2,993 0 0 166 617 0 0 4,188 2,088 10,399 2,394 325 7,346 89 0 18 7,242 870 870 0 0 517 .05 .05
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