EXHIBIT 99.1
__________________________________________________________________________
NEWS RELEASE DMC
__________________________________________________________________________
Contacts:
James Mitchell - Chairman and CEO - (617) 747-0180
Stephen Martino - Chief Financial Officer - (617) 747-0154
Detwiler, Mitchell & Co. Reports First Quarter 2003 Results
BOSTON, MA (May 14, 2003) - Detwiler, Mitchell & Co. (NASDAQ:
DMCO; PCX: DEM) today reported a net loss for the three-month
period ended March 31, 2003 of $433,000 or $0.14 per share basic
and $0.12 per share diluted on 3,171,000 basic and 3,539,000
diluted weighted average shares outstanding. Net loss was
$1,708,000 for the three-month period ended March 31, 2002 or
$0.65 per share - basic and $0.64 diluted on 2,652,000 basic and
2,684,000 diluted weighted average shares outstanding.
Loss from continuing operations for the three-month period ended
March 31, 2002 was $446,000 or $0.17 basic and diluted. Loss
from discontinued operations for the three-month period ended
March 31, 2002 was $1,262,000 or $0.48 per share basic and $0.47
per share diluted.
Total revenues of $2,353,000 for the three-month period ended
March 31, 2003 increased $443,000 or 23% compared to total
revenues of $1,910,000 for the same period last year. The
increase primarily results from greater institutional commission
revenues, partially offset by lower retail revenues from adverse
market conditions and sharply reduced investment banking
revenues.
"The first quarter of 2003 was difficult for our retail sales and
independent representative lines of business," said James
Mitchell, Chairman and CEO. He continued, "Our institutional
sales have continued to progress despite less than favorable
market conditions from international events all of which have
negatively impacted trading volumes, and therefore potential new
and/or enhanced revenues.
"In the first quarter of 2003 and the months of April and May
2003, management completed several major transactions to reduce
recurring fixed costs of the Company and, as a result, increase the
potential for longer-term profitability," said James Mitchell.
"With the completion of these adjustments, we can now devote our
efforts to continue to strengthen core revenues. We continue to believe
that once confidence and transaction volume return to the financial
markets, together with the recent cost reductions, our Company is
well positioned to enhance its revenues from additional research
verticals and the employment of seasoned retail brokers.
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Detwiler, Mitchell & Co. Reports First Quarter 2003 Results
(continued)
May 14, 2003
"Looking to more recent indications, April of 2003, on a pro
forma basis, was a profitable month, excluding non-recurring
charges recorded from the sale of the DMC UK lease, the write-off
of certain fixed assets at DMC UK, and the establishment of
certain early retirement accruals. Considering these events, the
Company's cash position remains strong," he said. "Additionally, the
inability of the Company to record any current income tax benefit
from operating losses incurred in 2003, due to certain accounting
rules, has had a negative impact on 2003 results when compared to
the loss reported for 2002, which reflected an income tax
benefit."
Mr. Mitchell concluded, "While management continues to take
aggressive steps to return the Company to profitability, we must
caution that there can be no assurance that revenues can be
significantly increased or even sustained or that costs can be
reduced during continuing uncertain financial market conditions."
* * * * *
Detwiler, Mitchell & Co. ("DMC") is the holding company for its
three principal operating subsidiaries: Fechtor, Detwiler & Co.,
Inc., a channel research, institutional sales and private client
group headquartered in Boston, MA; James Mitchell & Co., a
financial services company headquartered in San Diego, CA and
Detwiler, Mitchell & Co. (UK) Limited, an institutional sales
firm headquartered in London, England.
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 and Quarterly Reports on
Form 10-K and 10-Q, 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.
(Tables Follow)
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DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
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<caption>
MARCH 31, DECEMBER 31,
2003 2002
------------ -------------
(UNAUDITED)
ASSETS
<s> <c> <c>
Cash and cash equivalents $ 1,182,935 $ 1,243,655
Security deposits 199,679 199,679
Deposits with clearing organizations 256,000 256,000
Commissions, current income taxes and other receivables 973,439 1,027,377
Non-marketable investments, at fair value 110,000 110,000
Deferred income taxes, net 61,200 190,000
Fixed assets, net 387,458 389,374
Prepaid expenses and other 298,186 339,105
Goodwill 117,385 117,385
------------ ------------
Total Assets $ 3,586,282 $ 3,872,575
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Note payable $ 49,516 $ 99,032
Salaries and commissions payable 665,054 621,200
Accounts payable and accrued liabilities 306,061 379,400
------------ ------------
Total Liabilities 1,020,631 1,099,632
------------ ------------
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, 3,202,356 and 3,002,356 shares
outstanding at March 31, 2003 and
December 31, 2002, respectively 32,023 30,023
Paid-in-capital 5,401,487 5,177,487
Retained deficit (2,867,859) (2,434,567)
------------ ------------
Total Stockholders' Equity 2,565,651 2,772,943
------------ ------------
Total Liabilities and Stockholders' Equity $ 3,586,282 $ 3,872,575
============ ============
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DETWILER, MITCHELL & CO.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31,
------------------------------------
2003 2002
-------------- --------------
(UNAUDITED)
<s> <c> <c>
REVENUES:
Commissions $ 2,281,188 $ 1,612,013
Principal transactions - 20,835
Investment banking - 162,102
Interest and fees 72,224 114,731
-------------- --------------
Total revenues 2,353,412 1,909,681
-------------- --------------
EXPENSES:
Compensation and benefits 1,560,685 1,378,516
General and administrative 535,746 526,442
Occupancy, communication and systems 396,748 393,123
Execution 171,246 157,460
Interest 1,986 31,054
-------------- --------------
Total expenses 2,666,411 2,486,595
-------------- --------------
Loss from continuing operations
before income taxes (312,999) (576,914)
Income tax (expense) benefit, net (120,293) 130,962
-------------- --------------
Loss from continuing operations (433,292) (445,952)
-------------- --------------
Discontinued operations:
Cumulative effect of change in
accounting principle - (1,150,500)
Loss from operations - (168,775)
Income tax benefit - 57,001
Loss from discontinued operations - (1,262,274)
-------------- --------------
Net loss $ (433,292) $ (1,708,226)
============== ==============
Net loss per share:
Continuing operations:
Basic $ (0.14) $ (0.17)
Diluted $ (0.12) $ (0.17)
Discontinued operations:
Basic $ - $ (0.48)
Diluted $ - $ (0.47)
Weighted average shares outstanding:
Basic 3,171,245 2,652,357
Diluted 3,539,211 2,684,039
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