Exhibit 99.1
FIRST MONTAUK ANNOUNCES REVENUE
AND EARNINGS FOR 2006
Red Bank, NJ - April 18, 2007 - First Montauk Financial Corp. (OTC/BB: FMFK), a
nationwide provider of investment services through independent financial
professionals, today announced its financial results for the year ended December
31, 2006.
Total revenues for 2006 were $50.9 million compared to $58.1 million in 2005.
The 2005 revenues included recognition of $4.9 million of the remaining deferred
revenue in connection with the termination of our Financial Agreement with
Fiserv Securities, Inc., our prior clearing firm. The Company reported a net
loss applicable to common shareholders of $1,005,000 or ($.06) per basic and
diluted share for 2006, compared to net income applicable to common shareholders
of $2,139,000 or $.15 per basic and $.12 per diluted share for 2005.
Victor K. Kurylak, President and CEO of First Montauk Financial Corp.,
commented, "We saw several financial challenges in 2006, including extraordinary
expenses related to our management restructuring and costs incurred in
connection with our proposed merger. We also recognize the extraordinary
opportunities ahead, and continue our steady and positive progress in improving
our infrastructure by providing the highest quality service to our current
affiliates. We are also strongly committed to introducing new product offerings
in an effort to attract new, highly qualified financial professionals into our
network. As we progress into 2007, we continue our focus to empower each of our
affiliates to grow and manage a successful independent practice, which is the
cornerstone and hallmark of our business strategy."
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 approximately 245
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 in Part I and in
Item 1A in the Company's Form 10-K for the year ended December 31, 2006, 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 OPERATIONS
In 000's (except per share amounts)
Years ended December 31,
2006 2005
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Revenues $50,960 $58,084
Expenses 51,770 55,582
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Net income (loss) before tax (810) 2,502
Income taxes 27 78
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Net income (loss) $ (837) $ 2,424
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Net income (loss) applicable
to common stockholders $ (1,005) $ 2,139
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Earnings (loss) per share:
Basic $ (0.06) $ 0.15
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Diluted $ (0.06) $ 0.12
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Weighted average
number of shares of
stock outstanding
Basic 17,004,254 14,032,057
Diluted 17,004,254 20,109,178
CONTACT:
Victor K. Kurylak
President, CEO
732-842-4700, ext. 4230
info@montaukfinancial.com
www.montaukfinancial.com