EXHIBIT 99.2
__________________________________________________________________
NEWS RELEASE DMC
__________________________________________________________________
CONTACTS: JAMES K. MITCHELL STEPHEN D. MARTINO
CHAIRMAN AND CEO CHIEF FINANCIAL OFFICER
(858) 450-0055 (617) 747-0154
DETWILER, MITCHELL & CO. REPORTS SECOND QUARTER 2001 RESULTS
BOSTON, MA (August 2, 2001) - Detwiler, Mitchell & Co.
(NASDAQ: DMCO; PCX: DEM) today reported net loss for the three
months ended June 30, 2001 of $104,000, or $0.04 per share -
basic and diluted, on 2.6 million diluted weighted average shares
outstanding. Net income for the three months ended June 30, 2000
was $214,000, or $0.07 per share - basic and diluted, on 3.1
million diluted weighted average shares outstanding.
Net income for the six months ended June 30, 2001 was
$35,000, or $0.01 per share - basic and diluted, on 2.6 million
diluted weighted average shares outstanding. Net income for the
six months ended June 30, 2000 was $379,000, or $0.12 per share -
basic and diluted, on 3.2 million diluted weighted average shares
outstanding.
Revenues for the three months ended June 30, 2001 were
$5,248,000, an increase of $763,000 or 17%, compared to
$4,485,000 for the same period in 2000. Revenues for the six
months ended June 30, 2001 were $11,728,000, an increase of
$1,317,000 or 13%, compared to $10,411,000 for the same period in
2000.
"We have made significant progress during the first half of
this year to achieve meaningful cost reductions and build our
strategic platforms for the company," said James K. Mitchell,
Chairman and CEO. "We established a floor brokerage operation
on the Boston Stock Exchange in June which should significantly
reduce our execution costs." He continued, "On July 27, 2001,
Detwiler, Mitchell (UK) Limited became licensed and we have now
opened our London office doors. DMC Financial Services, the
independent brokerage division of Fechtor Detwiler, expects to
secure shortly a base of financial planners who will offer
Fidelity Investment's products and services for their clients.
Finally, K & S, Inc., our new specialist firm at the Boston Stock
Exchange, is expected to begin trading over forty NASDAQ stocks
in September. Each of these initiatives broadens our range of
products and services."
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Detwiler, Mitchell & Co.
225 Franklin Street, 20th Floor
Boston, Massachusetts 02110
(617) 451-0100
<page>
Detwiler, Mitchell & Co. Reports Second Quarter 2001 Results
(continued)
August 2, 2001
Andrew Detwiler, President said, "We achieved significant
increases in institutional commissions and investment banking
revenues at Fechtor Detwiler. However, principal transaction
revenue and retail commissions were lower, although still in line
with industry trends. Additionally, the costs of establishing
the London operation of over $300,000 during the first six
months, without the ability to produce revenue prior to receiving
our license, had a major impact on the firm. DMC UK is now
licensed and open for business."
Detwiler, Mitchell & Co. ("DMC") is the holding company for
its four 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; James Mitchell
& Co., a financial services company located in San Diego, CA and
Detwiler, Mitchell & Co. (UK) Limited, an investment banking and
institutional sales firm located in London, 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.
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Detwiler, Mitchell & Co.
225 Franklin Street, 20th Floor
Boston, Massachusetts 02110
(617) 451-0100
<page>
DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
<table>
<caption>
JUNE 30, DECEMBER 31,
2001 2000
------------ ------------
(unaudited)
ASSETS
<s> <c> <c>
Cash and cash equivalents $ 1,281,557 $ 2,737,434
Deposits with clearing organizations 748,604 415,194
Receivables from brokers, dealers and clearing
organizations 153,357 535,836
Due from customers 2,980,668 3,598,699
Securities borrowed 1,007,200 3,279,900
Marketable investments, at fair value 298,096 15,681
Non-marketable investments, at fair value 564,545 510,000
Fixed assets, net 573,568 437,850
Intangible assets, net 1,606,885 123,385
Other 2,092,875 1,688,817
------------ ------------
Total Assets $11,307,355 $13,342,796
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Notes payable $ 800,000 $ -
Payable to brokers, dealers and
clearing organizations - 117,811
Due to customers 1,470,095 4,035,739
Salaries and commissions payable 1,174,861 1,329,837
Accounts payable and accrued liabilities 1,244,272 1,300,947
------------ ------------
Total Liabilities 4,689,228 6,784,334
------------ ------------
Contingencies
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 June 30, 2001 and
December 31, 2000, respectively 26,023 25,893
Paid-in-capital 4,679,487 4,655,273
Retained earnings 1,912,617 1,877,296
------------ ------------
Total Stockholders' Equity 6,618,127 6,558,462
------------ ------------
Total Liabilities and Stockholders' Equity $11,307,355 $13,342,796
============ ============
</table>
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<page>
DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF OPERATIONS
<table>
<caption>
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
-------------------------- --------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
(unaudited)
<s> <c> <c> <c> <c>
REVENUES
Commissions $ 3,654,863 $ 2,716,230 $ 7,556,609 $ 5,693,099
Principal transactions 959,190 1,158,663 3,255,076 3,167,445
Investment banking 451,783 173,923 520,611 699,342
Gain on sale of investment securities - 83,050 - 83,050
Interest 89,493 239,846 201,711 516,712
Other 92,734 113,552 194,490 251,135
------------ ------------ ------------ ------------
Total revenues 5,248,063 4,485,264 11,728,497 10,410,783
------------ ------------ ------------ ------------
EXPENSES
Compensation and benefits 3,341,604 2,552,492 7,177,514 6,155,078
General and administrative 631,970 569,323 1,270,779 1,311,827
Execution costs 1,059,136 548,687 2,477,882 992,159
Occupancy, communications and systems 354,898 285,406 675,347 555,678
Interest 6,585 79,864 25,902 170,353
Amortization of intangibles 19,500 1,500 39,000 3,000
Impairment of non-marketable securities - - - 500,000
------------ ------------ ------------ ------------
Total expenses 5,413,693 4,037,272 11,666,424 9,688,095
------------ ------------ ------------ ------------
Income (loss) before income taxes (165,630) 447,992 62,073 722,688
Income tax (expense) benefit 61,464 (233,691) (26,752) (343,536)
------------ ------------ ------------ ------------
Net income (loss) $ (104,166) $ 214,301 $ 35,321 $ 379,152
============ ============ ============ ============
NET INCOME (LOSS) PER SHARE:
Basic $ (0.04) $ 0.07 $ 0.01 $ 0.12
============ ============ ============ ============
Diluted $ (0.04) $ 0.07 $ 0.01 $ 0.12
============ ============ ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,602,313 3,080,618 2,605,730 3,137,966
============ ============ ============ ============
Diluted 2,608,751 3,080,618 2,628,267 3,154,266
============ ============ ============ ============
</table>
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