EXHIBIT 99.1
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NEWS RELEASE DMC
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CONTACTS: JAMES MITCHELL - CHAIRMAN AND CHIEF EXECUTIVE OFFICER -
(858) 450-0055
JAMES GRAVES - VICE CHAIRMAN AND CHIEF OPERATING OFFICER -
(617) 451-0100
DETWILER, MITCHELL & CO. ANNOUNCES
DEREGISTRATION, VOLUNTARY DELISTING AND PRELIMINARY
FINANCIAL DATA FOR THE SECOND QUARTER OF 2003
BOSTON, MA (July 1, 2003) - Detwiler, Mitchell & Co.
(NASDAQ: DMCO; PCX: DEM) announced that its Board of Directors
has voted unanimously to begin the process for the immediate
deregistration of the Company's common stock with the Securities
and Exchange Commission ("SEC"). Additionally, the Company has
requested that its listings on the NASDAQ SmallCap market and the
Pacific Stock Exchange be voluntarily withdrawn. The
deregistration decision was based in part on the significant
costs and managerial resources required to comply with SEC
regulations and the recurring costs necessary to maintain the
listing of its common stock on the NASDAQ and Pacific exchanges
when compared to the relatively thin trading market for the
common stock on those markets.
The deregistration process is being initiated by the filing
with the SEC of a certification on Form 15. Upon removal from
listing on the SmallCap market, any NASD broker-dealer who
currently makes a market in the Company's common stock may
continue to quote the Company's common stock on the Pink Sheets
Electronic Quotation Service. The Company will also continue to
make its financial statements available to stockholders with
continued board oversight.
The Company reported unaudited consolidated revenues of
$2,353,000 and loss before income taxes of $313,000 for the
quarter ended March 31, 2003. The Company expects unaudited
consolidated revenues of approximately $3,000,000 and income
before income taxes of approximately $250,000 for the quarter
ended June 30, 2003. These anticipated results for the second
quarter of 2003 exclude $480,000 of one-time costs associated
with cost reduction initiatives and also excludes the receipt of
$220,000 from defendants in settlement of two separate legal
claims made by the Company. The sharp increases in both revenues
and income before income taxes, as compared to the first quarter
of 2003, reflect greater institutional and retail commission
revenues, continued market acceptance of the Company's Channel
Research data (the principal source of revenues), recent strength
in the equity markets and cost reductions, which have also
lowered the breakeven point of operations.
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DETWILER, MITCHELL & CO.
225 FRANKLIN STREET, 20TH FLOOR
BOSTON, MA 02110
(617) 451-0100
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DETWILER, MITCHELL & CO.
JULY 1, 2003
The Board of Directors, in reaching their conclusions,
believes that deregistering the Company's common stock is in the
long-term best interests of its stockholders. Deregistration is
expected to improve operating results and profitability by
avoiding the dramatically rising costs of remaining an SEC
reporting company coupled with the limited benefit of a very
illiquid, volatile market for our common stock. Management
projects annual hard-dollar cost savings of deregistration to
approximate $125,000 to $200,000 from lower audit, Sarbanes-Oxley
reporting matters, and other listing and SEC reporting related
costs. The Company cautioned, however, there can be no
assurances that such increases in revenues, profits or cost
reduction initiatives can be sustained.
* * * * *
Detwiler, Mitchell & Co. is the holding company for its
three principal operating subsidiaries: Fechtor, Detwiler & Co.,
Inc., a channel research, institutional sales, private client
group and independent agent platform 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.
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DETWILER, MITCHELL & CO.
225 FRANKLIN STREET, 20TH FLOOR
BOSTON, MA 02110
(617) 451-0100
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