EXHIBIT 99
_______________________________________________________________
NEWS RELEASE DMC
_______________________________________________________________
Contacts: James K. Mitchell Stephen D. Martino
Chairman and CEO Chief Financial Officer
(617) 747-0180 (617) 747-0154
Detwiler, Mitchell & Co. Reports First Quarter 2001 Results
BOSTON, MA (April 17, 2001) - Detwiler, Mitchell & Co.
(NASDAQ: DMCO; PCX: DEM) (formerly Fechtor, Detwiler, Mitchell &
Co.) today reported net income for the quarter ended March 31,
2001 of $139,000, or $0.05 per share - basic and diluted, on 2.6
million diluted weighted average shares outstanding. Net income
for the quarter ended March 31, 2000 was $165,000, or $0.05 per
share - basic and diluted, on 3.3 million diluted weighted
average shares outstanding.
Total revenues for the quarter ended March 31, 2001 were
$6,480,000, an increase of $555,000 or 9%, compared to $5,926,000
for the same period of 2000. The increase in revenues primarily
results from commissions on higher institutional sales at the
Company's primary operating subsidiary, Fechtor, Detwiler & Co.,
Inc. and principal transaction revenues from operations of the
Company's newest subsidiary, K. & S., Inc.
"The Company's profitable results for the first quarter of
2001 are noteworthy considering the weaknesses in the financial
markets and lower trading volumes," said James K. Mitchell,
Chairman and CEO. "In particular, institutional sales have
significantly increased due to the strength of our highly
regarded research capabilities. Also, our K&S subsidiary
contributed $1 million in new revenue in the first quarter.
However, this was partially offset by reductions in our retail
and investment banking operations and by $200,000 in initial
expenses associated with our new UK subsidiary which has not
begun sales activities."
Mitchell continued, "We have accomplished a number of
strategic goals since the merger to better position our Company
to be more competitive in the financial marketplace. We believe
the new investments in K&S and Detwiler, Mitchell (UK) will
spread our risk while at the same time expand our revenue
generating activities through a distribution network that will
soon include both Europe and Canada. The next challenge will be
to ensure that each of our revenue platforms work together to
cross sell our products and services as one cohesive business
unit."
Page 1 of 4
[DMC LOGO]
Detwiler, Mitchell & Co.
225 Franklin Street, 20th Floor
boston, massachusetts 02110
(617) 451-0100
Detwiler, Mitchell & Co. Reports First Quarter 2001 Results (continued)
April 17, 2001
The Company also reported that since the recent reverse
split of the Company's common stock, it was informed by Nasdaq
that it was in compliance with the listing requirements for the
SmallCap Market and would continue to be listed.
Detwiler, Mitchell & Co. ("DMC") is the holding company for
its principal operating subsidiaries, Fechtor, Detwiler & Co.,
Inc., an investment banking, merchant banking and brokerage
company headquartered in Boston, MA; K. & S., Inc., a specialist
firm with operations on the Boston Stock Exchange and James
Mitchell & Co., a financial services company located in San
Diego, CA. Additionally, DMC has formed Detwiler, Mitchell & Co.
(UK) Limited, located in London, UK, to conduct institutional
sales and investment banking throughout the UK, Europe, and
Canada and is expected to commence operations shortly, upon
receipt of regulatory approval in the UK.
* * * * *
Cautionary Statement Regarding Forward-Looking Statements:
Certain statements in this news release may contain forward-
looking statements within the meaning of the Federal securities
laws. Such statements should be considered in light of the risks
and uncertainties associated with Detwiler, Mitchell & Co. and
its operating subsidiaries, including those economic and market
risks contained in the Company's Annual Report on Form 10-K, and
other risks prevailing from time to time; all of which are
subject to material changes and may cause actual results to vary
materially from what had been anticipated.
Page 2 of 4
[DMC LOGO]
Detwiler, Mitchell & Co.
225 Franklin Street, 20th Floor
boston, massachusetts 02110
(617) 451-0100
DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
MARCH 31, DECEMBER 31,
2001 2000
------------- --------------
(Unaudited)
ASSETS
Cash and cash equivalents $ 1,539,710 $ 2,737,434
Deposits with clearing organizations 718,604 415,194
Receivables from brokers, dealers and clearing
organizations 224,179 535,836
Due from customers 2,568,963 3,598,699
Securities borrowed 929,700 3,279,900
Marketable investments, at fair value 410,498 15,681
Non-marketable investments, at fair value 560,000 510,000
Fixed assets, net 587,180 437,850
Intangible assets, net 1,626,385 123,385
Other 1,667,564 1,688,817
------------- --------------
Total Assets $ 10,832,783 $ 13,342,796
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Due to customers $ 1,585,461 $ 4,035,739
Salaries and commissions payable 1,208,682 1,329,837
Accounts payable and accrued liabilities 985,362 1,300,947
Payable to brokers, dealers and clearing
organizations 30,985 117,811
Notes payable 300,000 -
------------- --------------
Total Liabilities 4,110,490 6,784,334
------------- --------------
Contingencies (Note 5)
Stockholders' Equity:
Preferred stock, no par value; 5,000,000
shares authorized, none issued - -
Common stock, $0.01 par value;
20,000,000 shares authorized;
2,602,313 and 2,589,313 shares
outstanding at March 31, 2001 and
December 31, 2000, respectively 26,023 25,893
Paid-in-capital 4,679,487 4,655,273
Retained earnings 2,016,783 1,877,296
------------- --------------
Total Stockholders' Equity 6,722,293 6,558,462
------------- --------------
Total Liabilities and Stockholders' Equity $ 10,832,783 $ 13,342,796
============= ==============
Page 3 of 4
DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31,
------------------------------------
2001 2000
-------------- ---------------
(UNAUDITED)
REVENUES:
Commissions $ 3,899,189 $ 2,976,869
Principal transactions 2,295,886 2,008,782
Investment banking 71,384 525,419
Interest 112,218 276,866
Other 101,756 137,583
-------------- --------------
Total revenues 6,480,433 5,925,519
-------------- --------------
EXPENSES:
Compensation and benefits 3,835,910 3,602,586
Execution costs 1,418,746 443,472
General and administrative 638,809 742,586
Occupancy, communications and systems 320,449 270,272
Interest 19,317 90,489
Amortization of intangibles 19,500 1,500
Impairment of non-marketable investment - 500,000
-------------- --------------
Total expenses 6,252,731 5,650,905
-------------- --------------
Income before income taxes 227,702 274,614
Income tax expense (88,215) (109,845)
-------------- --------------
Net income $ 139,487 $ 164,769
============== ==============
Net income per share-basic and diluted $ 0.05 $ 0.05
============== ==============
Weighted average shares outstanding:
Basic 2,609,146 3,195,313
============== ==============
Diluted 2,646,910 3,268,695
============== ==============
Page 4 of 4