Exhibit 99.1
FIRST MONTAUK ANNOUNCES A RETURN TO PROFITABILITY IN 2004
Red Bank, NJ - March 11, 2005 - First Montauk Financial Corp. (OTC/BB:
FMFK), a nationwide provider of investment services through independent
financial professionals, today announced earnings marked by a return to
profitability for the fiscal year ended December 31, 2004.
Total revenues for 2004 rose to $59.2 million compared to $58.2 million in
2003. For 2004, the Company reported net income applicable to common
shareholders of $640,000 or $.07 per basic share, or $.04 per diluted share,
compared to net loss of $(3.5) million or ($.40) per basic and diluted share for
2003.
Victor K. Kurylak, President and CEO of First Montauk Financial Corp.,
commented, "We are pleased to announce that 2004 marked a return to
profitability for First Montauk, and that our continued efforts to improve
margins and manage risk have begun to show a positive return."
Kurylak continued, "We are excited about the Company's growth prospects for
2005. We continue to focus our efforts on being more efficient and improving the
support and controls related to our outstanding network of investment
professionals. We believe that Montauk is well positioned to attract additional
financial professionals to our network, and further solidify our position in the
independent affiliate brokerage business."
Last month the Company announced a proposed merger with Olympic Cascade
Financial Corporation. Mr. Kurylak stated, "Our combined firms will have over
750 registered representatives operating in over 30 states. Based on the
combined revenues for the trailing twelve months of approximately $120 million,
we will rank as one of the top 25 largest independent contractor based brokerage
firms in the United States."
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,
research, web-based information systems and a competitive commission payout
structure has attracted approximately 370 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-K for
the year ended December 31, 2004, 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 STATEMENTS OF INCOME (LOSS)
In 000's (except per share amounts)
Years ended December 31,
2004 2003
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Revenues $59,187 $58,227
Expenses 58,470 61,246
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Net income (loss) before tax $ 717 $(3,019)
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Income taxes (benefit) (13) 499
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Net income (loss) $ 730 $(3,518)
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Net income (loss) $ 640 $(3,543)
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applicable to common
stockholders
Earnings (loss)
per share:
Basic $ 0.07 $ (0.40)
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Diluted $ 0.04 $ (0.40)
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Weighted average
number of shares of
stock outstanding
Basic 9,270,350 8,784,103
Diluted 15,629,920 8,784,103
CONTACT:
Victor K. Kurylak Katy Paul
President, CEO Shareholder Relations
732-842-4700, ext. 4230 732-842-4700, ext.4220
info@montaukfinancial.com
www.montaukfinancial.com