SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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) April 2, 2004
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FIRST MONTAUK FINANCIAL CORP.
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(Exact name of Registrant as specified in charter)
New Jersey 0-6729 22-1737915
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(State or other jurisdic- (Commission (IRS Employer
tion of incorporation) File Number) Identification No.)
Parkway 109 Office Center, 328 Newman Springs Road, Red Bank, N.J. 07701
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Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (732) 842-4700
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(Former name or former address, if changed since last report.)
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.
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(c) Exhibits.
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The following exhibit is filed herewith.
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Exhibit No. Description
99.1 Press release issued by First Montauk Financial Corp. dated
April 2, 2004.
Item 12: Results of Operations and Financial Condition.
On April 2, 2004, First Montauk Financial Corp. (the "Registrant") issued a
press release announcing results for the fiscal year ended December 31, 2003. 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.
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.
Dated: April 2, 2004 First Montauk Financial Corp.
(Registrant)
By /s/ Victor K. Kurylak
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Victor K. Kurylak, President
FOR IMMEDIATE RELEASE
FIRST MONTAUK REPORTS FINANCIAL RESULTS FOR FISCAL 2003
Red Bank, NJ - April 2, 2004 - First Montauk Financial Corp. (OTC/BB: FMFK), a
nationwide provider of investment services through independent financial
professionals, today announced financial results for the year ended December 31,
2003.
Total revenues for the fiscal year increased by 21%, to $58.2 million, compared
to $48 million for the year ended December 31, 2002. The Company credits this
substantial increase in revenues to a stronger volume of transaction business.
The Company also reported a net loss applicable to common stockholders of $3.5
million or $.40 per basic and diluted share for fiscal 2003, compared to a net
loss applicable to common stockholders of $3.1 million or $.36 per basic and
diluted share for fiscal 2002. The Company primarily attributes this loss to
ongoing litigation expenses.
Victor K. Kurylak, President and COO of Montauk Financial Group, commented,
"Improved economic conditions and increased investor participation in the equity
markets led to a significant growth in revenues in 2003. Although we are pleased
with the increase in revenue, we are disappointed by the losses, which were
attributed mainly to litigation expenses. We have improved our compliance and
supervisory controls and revised our litigation management procedures. We are
hopeful that these measures will lead to improved control of our risks and
litigation costs going forward."
"The economic rebound in 2003 has boosted confidence and encouraged many
entrepreneurs to start their own businesses. First Montauk's business model -
the financial professional as an independent affiliate - lends itself well to
this entrepreneurial spirit. To that end, our efforts to recruit additional
qualified financial professionals are yielding positive results as we seek to
expand our affiliate branches and our revenue in 2004," continued Kurylak.
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 60,000 retail and institutional accounts. The
Company's ability to offer quality support services, in-house and third party
research, advanced networked information systems and a competitive commission
payout structure has attracted approximately 450 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., and other planned events 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-K for the year ended December 31, 2003 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
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
In 000's (except for per share amounts)
Year ended December 31,
2003 2002
Revenues $58,227 $47,967
Expenses 61,246 50,633
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Loss before income taxes (3,019) (2,666)
Provision for income taxes 499 294
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Net loss (3,518) (2,960)
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Net loss applicable
to common stockholders (3,543) (3,060)
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Per share of common stock:
Basic and diluted (0.40) (0.36)
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Number of common shares 8,784,103 8,551,932
used in basic and diluted ========= =========
loss per share
Contact:
Katy Paul
Montauk Financial Group Shareholder Relations
William J. Kurinsky, Vice Chairman, CEO 732-842-4700, ext. 4220
(800) 876-3672 info@montaukfinancial.com