EXHIBIT 99
FOR IMMEDIATE RELEASE
FIRST ALBANY REPORTS FIRST QUARTER 2003 RESULTS
Consolidated Net Revenues Grow 19% Over Prior Year Quarter
ALBANY, NEW YORK, April 17, 2003 - First Albany Companies Inc.
(NASDAQ: FACT) today reported its financial results for the first
quarter ended March 31, 2003.
For the quarter, consolidated net revenues for First Albany
Companies was $45.7 million, compared to $38.3 million for the same
period in 2002, an increase of 19%. The Company reported
consolidated net income of $2.2 million for the first quarter 2003,
compared to a net loss of ($2.0) million for the same period in
2002. First quarter 2003 net income was $0.21 per diluted share
compared to a net loss of ($0.21) per diluted share in the first
quarter of 2002.
Net revenues from the Company's brokerage operations, First Albany
Corporation, was $39.3 million for the first quarter ended March
31, 2003, compared to $37.5 million for the same period in 2002, an
increase of 5%. First Albany Corporation had income of $1.0
million for the first quarter 2003, compared to $0.8 million for
the same period in 2002.
Commenting on the Company's results, Alan Goldberg, President of
First Albany Companies Inc. said, "Our performance over this past
quarter continues our trend of delivering consistent and stable
revenue growth. We are beginning to see the tangible results from
our investments in Equity Capital Markets and First Albany Asset
Management. In addition, our fixed income and municipals
operations continue to provide a profitable base from which we can
grow our various businesses. We are excited by our progress and we
are well positioned to seize the opportunity to be a leading middle
market investment bank."
First Albany Companies Inc.
(Dollars in Thousands)
Net Revenue
THREE MONTHS ENDED
March 31, March 31,
2003 2002
First Albany Corporation $39,289 $37,516
Parent & Affiliates including 6,419 735
FAAM and Investments
- ---------------------------------------------------
Total Consolidated $45,708 $38,251
===================================================
Net Income
THREE MONTHS ENDED
March 31, March 31,
2003 2002
First Albany Corporation $1,037 $ 823
Parent & Affiliates including 1,186 (2,831)
FAAM and Investments
- ----------------------------------------------------
Total Consolidated $2,223 $(2,008)
====================================================
Major Segment Operating Results
-------------------------------
First Albany Corporation
------------------------
First Albany Corporation is the brokerage operations of the
Company.
Taxable Fixed Income net revenues were $15.7 million for the first
quarter of 2003, down 5% from the $16.6 million for the comparable prior
year quarter. The decrease in net revenues in the Taxable Fixed Income
division was due to lower revenues from principal transactions compared
to the prior period.
Municipal Capital Markets net revenues were $9.0 million, down 11%
from $10.2 million reported for the quarter ended March 31, 2002. The
decreased net revenues in the Municipal Capital Markets division were
due to lower revenues from principal transactions compared to the prior
period.
Equity Capital Markets net revenues were $9.7 million for the first
quarter of 2003, up 91% from the $5.1 million for the first quarter of
2002. The increase in net revenue was primarily due to significantly
higher trading volume and activity, slightly offset by lower investment
banking revenues as the capital markets continue to operate in a very
challenging environment.
Parent & Affiliates
-------------------
First Albany Asset Management net revenues were $1.4 million for the
quarter ended March 31, 2003, up 125% from the comparable quarter last
year. The increase in net revenues was due in large part to the
acquisition of Noddings Investments, a convertible bond arbitrage
manager, which contributed approximately $300 million in assets under
management and $0.7 million in net revenues in the quarter.
Investment gains for the quarter ended March 31, 2003 were $4.8
million due to an increase in fair market value of the investment
portfolio held by First Albany Companies. As previously announced, as of
December 31, 2002, First Albany Companies Inc. changed its method of
accounting for its investment in Mechanical Technology Inc.
(NASDAQ: MKTY) from the equity method of accounting to the fair value
method. As a result, the Company no longer recognizes equity income
or loss from its proportionate share of Mechanical Technology's
financial results. For the quarter ended March 31,2002, the Company
recognized a $4.5 million equity loss related to its investment in
Mechanical Technology.
Shareholders' Equity
--------------------
Shareholders' equity as of March 31, 2003 was $69.7 million
compared to $66.6 million at December 31, 2002. Book value per
share as of March 31, 2003 was $6.78 compared to $6.62 as of
December 31, 2002. All per share figures have been restated to
reflect stock dividends declared.
Guidance
--------
The following information is based on current information as of
April 17, 2003. The Company does not expect to update guidance
until next quarter's earnings release; however, the Company may
update its full business outlook or any portion thereof at any time
for any reason. The guidance given here assumes no further
fluctuation in the value of the investments held in First Albany
Companies' portfolio. This guidance is also subject to risks and
uncertainties associated with general economic conditions that may
cause actual results to differ materially from the guidance given.
First Albany Companies expects total consolidated revenue for the
full year ending December 31, 2003 to be between $195 million and
$205 million. 2003 full year net income is expected to be between
$0.85 per diluted share and $0.95 per diluted share.
About First Albany
------------------
Founded in 1953, First Albany Companies Inc. is a leading
institutionally focused independent investment bank and asset management
firm. Through its Taxable Fixed-Income, Municipal and Equity Capital
Markets Divisions, the firm focuses on serving the growing middle market
and major government agencies and public institutions by providing its
clients with strategic, research-based, innovative investment
opportunities. It offers a diverse range of products and advisory
services in the areas of corporate and municipal finance and fixed-
income and equity sales and trading. First Albany Asset Management
currently has approximately $1 billion under management for
institutional and high net worth clients. FA Technology Ventures, its
venture capital fund, invests in early and expansion stage information
technology (IT) and new energy technology (ET) companies. First Albany
is traded on NASDAQ under the symbol FACT and today has 18 offices in 11
states.
This news release contains forward-looking statements, which are
subject to various risks and uncertainties, including the
conditions of the securities markets, generally, and acceptance of
the Company's services within those markets and other risks and
factors identified from time to time in the Company's filings with
the Securities and Exchange Commission. Actual results could
differ materially from those currently anticipated.
FOR ADDITIONAL INFORMATION
PLEASE CONTACT:
Steven R. Jenkins (Investors)
Chief Financial Officer
(518) 447-8500
Whit Clay (Media)
Sloane & Company
(212) 446-1864