[FBR LOGO APPEARS HERE]
For Immediate Release
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Media Contact: Michael W. Robinson (703)-312-1830 or mrobinson@fbr.com
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Investor Contact: Kurt Harrington (703)-312-9647 or kharrington@fbr.com
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Friedman, Billings, Ramsey Group Reports
$0.11 Per Share Second Quarter Earnings
ARLINGTON, Va., August 1, 2000 - Friedman, Billings, Ramsey Group, Inc. (NYSE:
FBR) today reported net income of $5.3 million, or $0.11 (diluted) per share for
the second quarter ended June 30, 2000, versus net income of $5.8 million, or
$0.12 (diluted) per share for the same quarter a year ago. Revenue for the
second quarter was $43.5 million, compared with $40.4 million for the second
quarter of 1999.
For the first six months of the year, FBR had earnings of $0.24 (basic), and
$0.23 (diluted) per share on revenue of $109.8 million, versus earnings of $0.12
(basic) and $0.12 (diluted) per share on revenue of $62.4 million for the same
period in 1999.
"In the second quarter, FBR saw solid earnings across the entire company,
building on our robust results last quarter and continuing to demonstrate steady
returns in key areas" said Chairman and Co-Chief Executive Officer Emanuel J.
Friedman. "The on-going expansion and diversification of our businesses over
the last two years continued to bear fruit in the quarter as our broadened base
enabled FBR to generate revenues from a wide variety of sources," Friedman said.
In the quarter, FBR's institutional brokerage unit recorded $17.4 million in
revenue, more than $6.8 million, or 65 percent, ahead of the second quarter a
year ago. "Our institutional brokerage success is a testament to the depth and
breadth of our research department, as well as the skill of our traders. As we
saw in the second quarter, it's in times of increased market volatility that the
value of institutional-quality research is fully appreciated," Friedman said.
In June, one of FBR's senior Internet analysts, David Hilal, was named the
number one "stock picker" in the Internet sector by TheStreet.Com.
In the second quarter, FBR's investment banking business turned in more than
$9.9 million in revenue, despite a slowdown in new equity offerings. FBR
engaged in private placements and mergers and acquisitions assignments in deals
totaling $394.5 million.
Additionally, the company continued to report strong results from its venture
capital and private equity businesses. "We were particularly pleased that FBR
Financial Services Partners closed its first sale," Friedman said. In the
second quarter, FBR Financial Services Partners (Financial Fund II) sold its
investment in Auction Finance Group, Inc. (AFG) to ADESA Corporation, a
subsidiary of Minnesota Power, Inc. (NYSE: MPL) in a
cash transaction. AFG, based in Miami, owns Canadian Auction Group, the largest
auto auction operation in Canada. FBR's six managed funds have investments in 59
companies.
"Looking forward, our investment banking pipeline is already showing signs of
strength ahead of last quarter. Technology remains strong, and we have two
lead-managed deals filed in other areas - energy and components. We also have
seven co-managed transactions filed," Friedman said. "Additionally, we will
continue to expand our areas of strength, including institutional research and
mergers and acquisitions advisory services, in the coming months."
Friedman added that FBR continues to implement its high net worth retail
strategy, including using its online platform at fbr.com to leverage every facet
of the business. "Closing the pending acquisition of Rushmore Trust and
Savings, FSB, and Money Management Associates LP will offer us a host of
additional products for individual investors," he said.
FBR had 49.2 million common shares outstanding, shareholders' equity of $203.6
million, and book value per share of $4.14 as of June 30, 2000.
A live webcast of FBR's conference call on today's results will be available at
9 a.m. (Eastern Time) at http://www.vcall.com/NASApp/VCall/EventPage?ID=29762.
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Replays of the webcast will be available afterward.
Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) is a holding company for
investment banking, institutional brokerage, venture capital, and other
specialized asset management products and services. Headquartered in Northern
Virginia, home to an array of leading global Internet companies, and with its
proprietary online capabilities, FBR provides capital and financial expertise
throughout a company's lifecycle. FBR has offices in Arlington and Reston, Va.,
Irvine, Ca., Boston, Charlotte, Chicago, Portland, Seattle, London, and Vienna.
For more information, see www.fbr.com.
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# # #
Statements concerning future performance, developments, negotiations or
events, expectations or plans and objectives for future operations or for
growth and market forecasts, and any other guidance on present and future
periods, constitute forward-looking statements that are subject to a number
of factors risks and uncertainties that might cause actual results to
differ materially from stated expectations or current circumstances. These
factors include but are not limited to competition among venture capital
firms and the high degree of risk associated with venture capital
investments, the effect of demand for public offerings, activity in the
secondary securities markets, available technologies, competition for
business and personnel, and general economic, political and market
conditions.
Note to Editors: 2 pages of financial information follow this page.
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FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
June 30,
2000 % 1999 %
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REVENUES:
Investment banking $ 9,946 22.8% $17,213 42.6%
Institutional brokerage 17,415 40.0% 10,553 26.1%
Asset management 13,823 31.8% 9,507 23.5%
Interest, dividends and other 2,352 5.4% 3,106 7.7%
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Total revenues 43,536 100.0% 40,379 100.0%
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EXPENSES:
Compensation and benefits 25,209 57.9% 22,109 54.8%
Business development and professional services 4,391 10.1% 5,908 14.6%
Interest 319 0.7% 494 1.2%
Other 7,552 17.3% 6,019 14.9%
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Total expenses 37,471 86.1% 34,530 85.5%
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Net income before 6,065 13.9% 5,849 14.5%
income taxes
Provision for income taxes 785 1.8% - 0.0%
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Net income $ 5,280 12.1% $ 5,849 14.5%
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Basic earnings per share $ 0.11 $ 0.12
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Diluted earnings per share $ 0.11 $ 0.12
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Weighted average shares - basic 49,106 48,692
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Weighted average shares - diluted 50,065 49,703
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FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Six Months Ended
June 30,
2000 % 1999 %
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REVENUES:
Investment banking $ 26,642 24.3% $23,261 37.2%
Institutional brokerage 29,092 26.5% 19,433 31.1%
Asset management 49,700 45.3% 14,105 22.6%
Interest, dividends and other 4,345 4.0% 5,649 9.0%
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Total revenues 109,779 100.0% 62,448 100.0%
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EXPENSES:
Compensation and benefits 71,432 65.1% 36,347 58.2%
Business development and professional services 9,008 8.2% 8,502 13.6%
Interest 541 0.5% 1,001 1.6%
Other 14,177 12.9% 10,704 17.1%
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Total expenses 95,158 86.7% 56,554 90.6%
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Net income before 14,621 13.3% 5,894 9.4%
income taxes
Provision for income taxes 2,924 2.7% - 0.0%
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Net income $ 11,697 10.7% $ 5,894 9.4%
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Basic earnings per share $ 0.24 $ 0.12
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Diluted earnings per share $ 0.23 $ 0.12
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Weighted average shares - basic 49,064 48,862
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Weighted average shares - diluted 50,996 49,564
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