EXHIBIT 99.1
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NEWS RELEASE DMC
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Contacts: James K. Mitchell Stephen D. Martino
Chairman and CEO Chief Financial Officer
(858) 450-0055 (617) 747-0154
Detwiler, Mitchell & Co. Reports Third Quarter 2001 Results
BOSTON, MA (November 6, 2001) - Detwiler, Mitchell & Co.
(NASDAQ: DMCO; PCX: DEM) today reported net loss for the three
months ended September 30, 2001 of $173,000, or $0.07 per share
- basic and diluted, on 2.6 million basic and diluted weighted
average shares outstanding. Net income for the three months
ended September 30, 2000 was $151,000, or $0.06 per share - basic
and diluted, on 2.7 million basic and diluted weighted average
shares outstanding.
Net loss for the nine months ended September 30, 2001 was
$138,000, or $0.05 per share - basic and diluted, on 2.6 million
basic and diluted weighted average shares outstanding. Net
income for the nine months ended September 30, 2000 was $530,000,
or $0.18 per share - basic and $0.17 per share diluted, on 2.9
million basic and 3.0 million diluted weighted average shares
outstanding.
Revenues for the three months ended September 30, 2001 were
$4,005,000, a decrease of $518,000 or 11%, compared to $4,523,000
for the same period in 2000. Revenues for the nine months ended
September 30, 2001 were $15,734,000, an increase of $801,000, or
5%, compared to $14,933,000 for the same period in 2000.
Earnings before interest, taxes, depreciation and
amortization ("EBITDA") were $228,000 for the nine months ended
September 30, 2001 compared to $1,415,000 for the same period in
2000.
"The Company continues its efforts to identify revenue
enhancements and cost reductions," said James Mitchell, Chairman
and CEO. "Market conditions, however, have been difficult during
2001 and as a result, revenue growth and profitability have not
met our expectations on all of our lines of business."
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Detwiler, Mitchell & Co.
225 Franklin Street, 20th Floor
Boston, Massachusetts 02110
(617) 451-0100
Detwiler, Mitchell & Co. Reports Third Quarter 2001 Results (continued)
November 6, 2001
"In mid October, Andrew Detwiler, President of the Company
and CEO of Fechtor Detwiler, and several members of the
institutional sales, research and trading departments resigned.
While there will be an initial, adverse impact on revenues and
earnings, steps have been taken to build and expand these
departments. Because of current weaknesses in the financial
service and technology industries, experienced and talented
industry professionals are available to augment our staff
recruiting efforts," Mr. Mitchell concluded.
* * * * *
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
DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
SEPTEMBER 30, DECEMBER 31,
2001 2000
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(UNAUDITED)
ASSETS
Cash and cash equivalents $ 1,373,925 $ 2,737,434
Deposits with clearing organizations 868,804 415,194
Receivables from brokers, dealers and clearing
organizations 156,971 535,836
Due from customers 4,481,816 3,598,699
Securities borrowed 518,500 3,279,900
Marketable investments, at fair value 128,284 15,681
Non-marketable investments, at fair value 564,545 510,000
Fixed assets, net 613,086 437,850
Intangible assets, net 1,587,385 123,385
Other 2,124,207 1,688,817
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Total Assets $ 12,417,523 $ 13,342,796
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Notes payable $ 2,400,000 $ -
Payable to brokers, dealers and clearing
organizations 139,657 117,811
Due to customers 1,744,102 4,035,739
Salaries and commissions payable 623,226 1,329,837
Accounts payable and accrued liabilities 1,065,311 1,300,947
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Total Liabilities 5,972,296 6,784,334
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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 September 30, 2001 and
December 31, 2000, respectively 26,023 25,893
Paid-in-capital 4,679,487 4,655,273
Retained earnings 1,739,717 1,877,296
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Total Stockholders' Equity 6,445,227 6,558,462
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Total Liabilities and Stockholders'
Equity $ 12,417,523 $ 13,342,796
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DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
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2001 2000 2001 2000
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(unaudited)
REVENUES
Commissions $ 2,838,639 $ 2,740,942 $ 10,395,248 $ 8,434,041
Principal transactions 898,813 1,389,224 4,153,888 4,556,669
Investment banking 98,500 44,420 619,111 743,762
Gain on sale of investments - 30,615 - 113,665
Interest 85,167 205,918 286,878 722,630
Other 83,942 111,386 278,432 362,521
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Total revenues 4,005,061 4,522,505 15,733,557 14,933,288
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EXPENSES
Compensation and benefits 2,254,922 2,723,358 9,432,436 8,878,436
General and administrative 692,935 381,069 1,963,713 1,692,996
Execution costs 751,924 586,577 3,229,806 1,578,736
Occupancy, communications and systems 415,288 290,438 1,090,635 846,116
Interest 6,000 37,191 31,901 207,544
Amortization of intangibles 19,500 1,500 58,500 4,500
Impairment of non-marketable securities - 250,000 - 750,000
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Total expenses 4,140,569 4,270,133 15,806,991 13,958,328
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Income (loss) before income taxes (135,508) 252,372 (73,434) 974,960
Income tax expense (37,392) (100,949) (64,145) (444,485)
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Net income (loss) $ (172,900) $ 151,423 $ (137,579) $ 530,475
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NET INCOME (LOSS) PER SHARE:
Basic $ (0.07) $ 0.06 $ (0.05) $ 0.18
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Diluted $ (0.07) $ 0.06 $ (0.05) $ 0.17
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WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,602,313 2,723,375 2,604,591 2,999,769
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Diluted 2,602,313 2,725,707 2,607,402 3,034,506
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