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 4, 2005
FIRST MONTAUK FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER: 0-6729
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NEW JERSEY 22-1737915
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(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
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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))
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Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 3, 2005, First Montauk Financial Corp. (the "Registrant") issued
a press release announcing results for the fiscal quarter ended June 30, 2005. 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 3, 2005.
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
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Name: Victor K. Kurylak
Title: Chief Executive Officer
Date: August 4, 2005
EXHIBIT INDEX
Exhibit Description
Number
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99.1 Press Release of First Montauk Financial Corp. dated
August 3, 2005.
Exhibit 99.1
[GRAPHIC OMITTED]
FIRST MONTAUK ANNOUNCES SECOND QUARTER
AND SIX MONTH EARNINGS FOR 2005
Red Bank, NJ - August 3, 2005 - First Montauk Financial Corp. (OTC/BB: FMFK), a
nationwide provider of investment services through independent financial
professionals, today announced financial results for the second quarter and six
months ended June 30, 2005.
Revenues for the second quarter of 2005 increased 16% to $16.6 million, compared
to $14.2 million for the second quarter of 2004. Included in the total revenue
for the second quarter of 2005 is a one-time recognition of deferred revenue of
$4.9 million in connection with the termination of Montauk's financial agreement
with Fiserv Securities, Inc., our prior clearing firm. The Company also reported
an increase in net income applicable to common stockholders of $3,989,000, or
$0.28 per basic share and $0.20 per diluted share for the second quarter. This
compares to $2,000 or $0.00 per basic and diluted share for the second quarter
of 2004.
The Company's revenues for the first half of 2005 decreased 3% to $32.1 million,
compared to $33 million for the same six-month period in 2004. The Company
reported a net income applicable to common stockholders of $3,578,000, or $0.27
per basic share and $0.19 per diluted share during the first six months of 2004.
This compares to a net income applicable to common stockholders of $217,000, or
$.02 per basic and diluted share during the same period in 2004.
Victor K. Kurylak, President and CEO of Montauk Financial Group, commented,
"Despite investor uncertainties about rising interest rates and higher oil
prices, our performance for the second quarter and first half of 2005 continues
to reflect positively on our efforts to return Montauk Financial Group to
sustained profitability. We continue to focus on cost containment, business risk
management and alternative revenue streams while we expand our efforts to
attract new affiliates to our brokerage network. We have seen dramatic
improvement in our financial condition during 2005 resulting from our core
profitability, reduction in our outstanding debt and conversion to our new
clearing firm."
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 advanced networked
information systems and a competitive commission payout structure has attracted
approximately 330 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 first quarter ended June 30, 2005 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 June 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues $32,146 $33,063 $16,581 $14,242
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Expenses 28,306 32,778 12,028 14,221
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Net income $ 3,821 $ 263 $ 4,197 $ 25
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Net income $ 3,578 $ 217 $ 3,989 $ 2
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applicable to common
stockholders
Per share of common stock:
Basic $ 0.27 $ 0.02 $ 0.28 $ (0.00)
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Diluted $ 0.19 $ 0.02 $ 0.20 $ (0.00)
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Number of common shares used
net income per share:
Basic 13,421,349 9,598,100 14,411,053 9,587,133
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Diluted 20,251,184 16,048,897 21,251,791 9,738,345
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Contacts:
Montauk Financial Group Montauk Financial Group
Victor K. Kurylak Katy Paul
President and CEO Corporate Communications
732-842-4700, ext. 4230 732-842-4700, ext. 4220
info@montaukfinancial.com