UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended December 31, 2000 Commission File Number 001-12629
OLYMPIC CASCADE FINANCIAL CORPORATION
(Exact name of registrant as specified)
DELAWARE 36-4128138
- ------------------------- ------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
875 NORTH MICHIGAN AVENUE, SUITE 1560, CHICAGO, IL 60611
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (312) 751-8833
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X No
The number of shares outstanding of registrant's Common stock, par value $0.02
per share, at February 9, 2001 was 2,220,449.
OLYMPIC CASCADE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
ASSETS
December 31, September 29,
2000 2000
(unaudited) (audited)
--------------- ---------------
CASH, subject to immediate withdrawal $ 1,563,000 $ 3,020,000
CASH, CASH EQUIVALENTS AND SECURITIES 42,328,000 29,517,000
DEPOSITS 4,017,000 1,792,000
RECEIVABLES
Customers 35,839,000 54,243,000
Brokers and dealers 773,000 1,994,000
Other 695,000 394,000
SECURITIES HELD FOR RESALE, at market 1,106,000 376,000
FIXED ASSETS, net 1,063,000 1,112,000
GOODWILL, net 65,000 74,000
OTHER ASSETS 1,035,000 393,000
--------------- ---------------
$ 88,484,000 $ 92,915,000
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
PAYABLES
Customers $ 69,663,000 $ 74,183,000
Brokers and dealers 4,192,000 5,329,000
SECURITIES SOLD, BUT NOT YET PURCHASED,
at market 141,000 192,000
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND
OTHER LIABILITIES 2,937,000 3,976,000
REVOLVING CREDIT LINE 3,000,000 -
NOTES PAYABLE 614,000 614,000
CAPITAL LEASE PAYABLE 513,000 582,000
--------------- ---------------
81,060,000 84,876,000
--------------- ---------------
CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value,
100,000 shares authorized,
none issued and outstanding - -
Common stock, $.02 par value, 6,000,000
shares authorized, 2,163,846 and
2,153,846 shares issued and outstanding,
respectively 43,000 43,000
Additional paid-in capital 8,868,000 8,810,000
Accumulated deficit (1,487,000) (814,000)
--------------- ---------------
7,424,000 8,039,000
--------------- ---------------
$ 88,484,000 $ 92,915,000
=============== ===============
2
The accompanying notes are an integral part of these financial statements.
OLYMPIC CASCADE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
--------Quarter Ended---------
December 31, December 31,
2000 1999
---------------- ----------------
REVENUES:
Commissions $ 6,240,000 $ 9,382,000
Net dealer inventory gains 5,131,000 1,782,000
Interest 1,757,000 1,661,000
Transfer fees 275,000 292,000
Investment banking 584,000 1,216,000
Other 444,000 138,000
---------------- ----------------
TOTAL REVENUES 14,431,000 14,471,000
---------------- ----------------
EXPENSES:
Commissions 8,127,000 8,528,000
Salaries 2,219,000 1,606,000
Clearing fees 1,010,000 622,000
Communications 564,000 326,000
Occupancy costs 1,167,000 716,000
Interest 976,000 953,000
Professional fees 438,000 506,000
Taxes, licenses, registration 247,000 208,000
Other 355,000 601,000
---------------- ----------------
TOTAL EXPENSES 15,103,000 14,066,000
---------------- ----------------
NET INCOME (LOSS) $ (672,000) $ 405,000
================ ================
EARNINGS (LOSS) PER COMMON SHARE
Basic Earnings (loss) Per Share $ (0.31) $ 0.24
================ ================
Diluted Earnings (loss) Per Share $ (0.31) $ 0.23
================ ================
BASIC COMMON SHARES OUTSTANDING
FOR THE PERIOD 2,159,760 1,701,794
================ ================
DILUTED SHARE OUTSTANDING
FOR THE PERIOD 2,159,760 1,778,455
================ ================
The accompanying notes are an integral part of these financial statements.
3
OLYMPIC CASCADE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
--------------Quarter Ended---------------
December 31, December 31,
2000 1999
------------------ ------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (672,000) $ 405,000
Adjustments to reconcile net income (loss) to net
cash used in operating activities
Depreciation and amortization 160,000 113,000
Compensation related to issuance of stock options 22,000 20,000
Changes in assets and liabilities
Cash, cash equivalents and securities (12,811,000) (3,208,000)
Deposits (2,225,000) (1,180,000)
Receivables 19,324,000 (5,979,000)
Securities held for resale (730,000) (38,000)
Other assets (661,000) (356,000)
Payables (6,681,000) 13,785,000
Securities sold, but not yet purchased (51,000) 71,000
------------------ ------------------
(4,325,000) 3,633,000
------------------ ------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (84,000) (78,000)
------------------ ------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on line of credit 3,000,000 (1,900,000)
Payments on capital lease (85,000) (85,000)
Exercise of stock options and warrants 37,000 224,000
------------------ ------------------
2,952,000 (1,761,000)
------------------ ------------------
INCREASE (DECREASE) IN CASH (1,457,000) 1,794,000
CASH BALANCE
Beginning of the period 3,020,000 384,000
------------------ ------------------
End of the period $ 1,563,000 $ 2,178,000
================== ==================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for
Interest $ 968,000 $ 953,000
================== ==================
Income taxes $ 324,000 $ -
================== ==================
The accompanying notes are an integral part of these financial statements.
4
OLYMPIC CASCADE FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND DECEMBER 31, 1999
THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS OF OLYMPIC CASCADE FINANCIAL
CORPORATION ("OLYMPIC" OR THE "COMPANY") HAVE BEEN PREPARED IN ACCORDANCE WITH
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR INTERIM FINANCIAL STATEMENTS AND
WITH THE INSTRUCTIONS TO FORM 10-Q AND RULE 10-01 OF REGULATION S-X.
ACCORDINGLY, THEY DO NOT INCLUDE ALL OF THE INFORMATION AND DISCLOSURES REQUIRED
FOR ANNUAL FINANCIAL STATEMENTS. IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS
(CONSISTING OF NORMAL RECURRING ACCRUALS) CONSIDERED NECESSARY FOR A FAIR
PRESENTATION HAVE BEEN INCLUDED. THE CONSOLIDATED FINANCIAL STATEMENTS AS OF AND
FOR THE PERIODS ENDED DECEMBER 31, 2000 AND DECEMBER 31, 1999 ARE UNAUDITED. THE
RESULTS OF OPERATIONS FOR THE INTERIM PERIODS ARE NOT NECESSARILY INDICATIVE OF
THE RESULTS OF OPERATIONS FOR THE FISCAL YEAR. THESE FINANCIAL STATEMENTS SHOULD
BE READ IN CONJUNCTION WITH THE CONSOLIDATED FINANCIAL STATEMENTS AND RELATED
FOOTNOTES INCLUDED THERETO IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE
FISCAL YEAR ENDED SEPTEMBER 29, 2000.
NOTE 1 - OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF BUSINESS - The Company is a financial services
organization, operating through its three wholly owned subsidiaries, National
Securities Corporation ("National"), WestAmerica Investment Group
("WestAmerica") and Canterbury Securities Corporation ("Canterbury"). Olympic is
committed to establishing a significant presence in the financial services
industry by providing financing options for emerging, small and middle
capitalization companies both in the United States and abroad through (i)
research, financial advisory services and sales, (ii) investment banking
services for both public offerings and private placements and (iii) retail
brokerage and trade clearance operations. In April 2000, the Company commenced
online trading services for its customers on the Internet through NSCdirect
(www.nscdirect.com).
EARNINGS (LOSS) PER SHARE - Basic earnings (loss) per common
share is based upon the net income (loss) for the quarter divided by the
weighted average number of common shares outstanding during the quarter. For the
first quarter of fiscal 2001 and 2000, the number of shares used in the basic
earnings (loss) per share calculation was 2,159,760 and 1,701,794, respectively.
Diluted earnings (loss) per common share assumes that all common stock
equivalents have been converted to common shares using the treasury stock method
at the beginning of the quarter. For the first quarter of fiscal 2001 and 2000,
the number of shares used in the diluted earnings (loss) per share calculation
was 2,159,760 and 1,778,455, respectively.
NOTE 2 - LINE OF CREDIT
At December 31, 2000, National had a secured line of credit of $3,000,000.
During January 2001, National consummated a new secured line of credit of
$5,000,000. The line is subject to renewal on December 31, 2001. Borrowings bear
interest at the call money rate plus 1%. Interest is payable monthly. The line
is secured by certain assets of National excluding items prohibited from being
pledged and assets included in the SEC Customer Protection Rule 15c3-3 formula.
These borrowings are short-term and generally do not extend beyond a few days.
At December 31, 2000, National had $3,000,000 in borrowings outstanding.
NOTE 3 - NOTES PAYABLE
Subsequent to December 31, 2000, the Company executed two promissory notes each
in the amount of $1,000,000. The notes bear interest annually at 9% with
interest paid quarterly. The principal of each note matures on January 25, 2004.
In connection with each note, warrants were issued for the purchase of 100,000
shares of the Company's common stock at an exercise price of $5.00 per share.
The warrants, which expire on January 25, 2004, were valued at $50,000 each, and
have been recorded as a discount to the respective notes.
Additionally, on February 1, 2001, National executed a secured demand note
collateral agreement with an employee of the Company, to borrow securities as
collateral to be pledged through an unrelated broker-dealer, which have a
borrowing value totaling $1,000,000. This note bears interest annually at 5%
with interest paid monthly. The demand note matures on February 1, 2004. In
connection with the note, a warrant was issued for the purchase of 75,000 shares
of the Company's common stock at an exercise price of $5.00 per share. The
warrant, which expires on February 1, 2004, was valued at $37,500 and has been
recorded as a discount to the note.
NOTE 4 - COMMITMENTS
During the quarter the Company entered into two employment agreements. The term
of both of these agreements is two years, expiring in October 2002, with an
annual salary of $300,000 plus bonus based upon operating results of the Company
as defined in the agreement. Additionally, as part of each agreement, 100,000
options to acquire the Company's common stock were granted, with vesting over
two years, at an exercise price of $5.75 per share.
NOTE 5 - CONTINGENCIES
In June 1997, a Trust and three individuals, commenced a lawsuit against Olympic
and National. The action against Olympic was subsequently dismissed. The
plaintiffs' alleged the defendants' failure to purchase securities from them
constitutes, among other things, breach of contract, securities rule violations
and fraud. On February 16, 1999, the District Court dismissed the plaintiffs'
remaining claims against National in their entirety and granted National's
motion for summary judgment. A final judgment was issued by the court on April
26, 1999. The plaintiffs filed a notice of appeal on May 4, 1999. The United
States Court of Appeals for the Ninth Circuit affirmed the District Court's
dismissal on December 20, 2000.
The Company has been named together with others as a defendant in a consolidated
class action lawsuit filed against Complete Management, Inc. No specific amount
of damages has been sought against National in the complaint. In June 2000,
National filed to dismiss this action.
The Company is a defendant in various other arbitrations and administrative
proceedings, lawsuits and claims, which in the aggregate seek general and
punitive damages. The Company believes that the resolution of these matters will
not have a material adverse effect. These matters arise out of the normal course
of business.
6
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES A SAFE HARBOR FOR
FORWARD-LOOKING STATEMENTS. THIS QUARTERLY REPORT MAY CONTAIN CERTAIN STATEMENTS
OF A FORWARD-LOOKING NATURE RELATING TO FUTURE EVENTS OR FUTURE BUSINESS
PERFORMANCE. ANY SUCH STATEMENTS THAT REFER TO THE COMPANY'S ESTIMATED OR
ANTICIPATED FUTURE RESULTS OR OTHER NON-HISTORICAL FACTS ARE FORWARD-LOOKING AND
REFLECT THE COMPANY'S CURRENT PERSPECTIVE OF EXISTING TRENDS AND INFORMATION.
THESE STATEMENTS INVOLVE RISKS AND UNCERTAINTIES THAT CANNOT BE PREDICTED OR
QUANTIFIED AND, CONSEQUENTLY, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND
UNCERTAINTIES INCLUDE, AMONG OTHERS, RISKS AND UNCERTAINTIES DETAILED IN THE
COMPANY'S REGISTRATION STATEMENT ON FORM S-3 (REGISTRATION NO. 333-80247), FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 9, 1999 AND THE COMPANY'S
OTHER SECURITIES AND EXCHANGE COMMISSION FILINGS, INCLUDING THE COMPANY'S ANNUAL
REPORT ON FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q. ANY FORWARD-LOOKING
STATEMENTS CONTAINED IN OR INCORPORATED INTO THIS QUARTERLY REPORT SPEAK ONLY AS
OF THE DATE OF THIS QUARTERLY REPORT. THE COMPANY UNDERTAKES NO OBLIGATION TO
UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENT, WHETHER AS A RESULT OF NEW
INFORMATION, FUTURE EVENTS OR OTHERWISE.
QUARTER ENDED DECEMBER 31, 2000 COMPARED TO QUARTER ENDED DECEMBER 31, 1999
The Company's first quarter of fiscal 2001 resulted in little change in total
revenues, but an increase in expenses compared with the same period of fiscal
2000. During the first quarter of fiscal 2001, the Company, through National,
expanded by adding a significant branch office in New York, New York and a
retail office in Boca Raton, Florida. As part of this expansion, National
realized non-recurring expenses of approximately $500,000.
The office in New York City consists of employee traders, independent retail
brokers, back office employees and compliance personnel. The office focuses on
principal mark-ups and mark-downs as well as agency trading of fixed income
products, OTC and Listed equities to various institutional clients.
Additionally, this office engages in proprietary trading of Listed equities and
retail brokerage. Beginning in February 2001, National expanded its
market-making activities through this office. The office in Boca Raton, consists
of independent contractor retail brokers.
Revenues were virtually unchanged at $14,431,000 in fiscal 2001 as compared to
$14,471,000 in fiscal 2000. Although total revenues did not change, the mix of
commission revenue, net dealer inventory gains, investment banking and other
revenue did change from the first quarter of fiscal year 2000.
Commission revenue decreased $3,142,000 or 33% to $6,240,000 from $9,382,000 due
to the weaker overall market compared with the strong market during the first
quarter of fiscal 2000. Net dealer inventory gains increased $3,349,000 or 188%
to $5,131,000 from $1,782,000 due to the additional of traders in the New York
City office and the addition of an institutional trader in Seattle during the
second quarter of fiscal 2000.
Investment banking revenue decreased $632,000 or 52% to $584,000 in fiscal 2001
from $1,216,000 in fiscal 2000. National participated in two private placements
raising approximately $1 million in gross proceeds during the first quarter of
fiscal 2001. During the same period in fiscal 2000, National participated in
five private placements raising approximately $10 million in gross proceeds for
clients.
7
Other revenues increased $306,000 or 222% to $444,000 from $138,000. The main
reason for this increase is income from trading activities attributable to the
New York City office and increased asset management fees.
As a result of the increased expansion at National, total expenses increased
$1,037,000 or 7% to $15,103,000 in fiscal 2001 from $14,066,000 in fiscal 2000.
Commission expense, which includes expenses related to commission revenue, net
dealer inventory gains and investment banking, decreased $401,000 or 5% to
$8,127,000 in fiscal 2001 from $8,528,000 in fiscal 2000. This is consistent
with the 3% decrease in combined revenues from commissions, net dealer inventory
gains and investment banking during the same period. Salaries increased $613,000
or 38% to $2,219,000 from $1,606,000. This increase was due to the increased
number of employees in New York City, the addition of new employees in the
latter part of fiscal 2000 and annual raises given during the first quarter of
fiscal 2001. Overall, combined commissions and salaries as a percentage of
revenue increased 2% to 72% from 70% in the first quarter of fiscal 2001 and
2000, respectively.
As anticipated with the increased expansion, expenses regarding communications,
occupancy, clearing fees, taxes, licenses and registration have increased from
the first quarter fiscal 2000 to the first quarter fiscal 2001. The most
significant expense increases were clearing fees, communications and occupancy
costs.
Clearing fees increased $388,000 or 62% to $1,010,000 from $622,000, mainly
relating to the increased business generated from the New York City office.
Communication expenses increased $238,000 to $564,000 or 73% from $326,000 due
to the New York City office as well as costs associated with NSCdirect.
Occupancy costs increased $451,000 or 63% to $1,167,000 from $716,000, again
mainly relating to the New York City office.
Other expenses decreased $246,000 or 41% to $355,000 from $601,000 in the first
quarter of fiscal 2001 and 2000, respectively. In the first quarter of fiscal
2001, the most significant change was the decrease in customer write-offs of
$370,000 from the first quarter of fiscal 2000.
Interest expense increased modestly during the first quarter of fiscal 2001 as
compared with the first quarter of fiscal 2000. Interest expense increased
$23,000 or 2% to $976,000 from $953,000. The interest expense increase was more
than offset by increased interest revenue of $96,000 or 6% to $1,757,000 from
$1,661,000.
Due to the increased costs associated with this expansion and the continued
slumping markets the Company reported a net loss of $672,000 compared to net
income of $405,000 for fiscal 2000. Overall, diluted earnings were a net loss of
$.31 per share as compared with net income of $.23 per share for the first
quarter ended December 31, 2000 and December 31, 1999, respectively.
8
LIQUIDITY AND CAPITAL RESOURCES
As with most financial firms, substantial portions of the Company's assets are
liquid, consisting mainly of cash or assets readily convertible into cash. These
assets are financed primarily by National's interest bearing and non-interest
bearing customer credit balances, other payables and equity capital.
Occasionally, National utilizes short-term bank financing to supplement its
ability to meet day-to-day operating cash requirements. Such financing has been
used to maximize cash flow and is regularly repaid. At December 31, 2000,
National had a $3,000,000 revolving secured credit facility with Bank of
America. During January 2001, National consummated a new secured line of credit
of $5,000,000 with American National Bank and Trust Company of Chicago, which is
guaranteed by the Company. The line is subject to renewal on December 31, 2001.
Borrowings bear interest at the call money rate plus 1%. Interest is payable
monthly. These borrowings are short-term and generally do not extend beyond a
few days. At December 31, 2000, National had $3,000,000 in borrowings
outstanding. Additionally, National may borrow up to 70% of the market value of
eligible securities pledged through an unrelated broker-dealer.
Subsequent to December 31, 2000, the Company executed two promissory notes each
in the amount of $1,000,000. The notes bear interest annually at 9% with
interest paid quarterly. The principal of each note matures on January 25, 2004.
In connection with each note, warrants were issued for the purchase of 100,000
shares of the Company's common stock at an exercise price of $5.00 per share.
The warrants, which expire on January 25, 2004, were valued at $50,000 each, and
have been recorded as a discount to the respective notes.
Additionally, on February 1, 2001, National executed a secured demand note
collateral agreement with an employee of the Company, to borrow securities as
collateral to be pledged through an unrelated broker-dealer, which have a
borrowing value totaling $1,000,000. This note bears interest annually at 5%
with interest paid monthly. The demand note matures on February 1, 2004. In
connection with the note, a warrant was issued for the purchase of 75,000 shares
of the Company's common stock at an exercise price of $5.00 per share. The
warrant, which expires on February 1, 2004, was valued at $37,500 and has been
recorded as a discount to the note.
National, as a registered broker-dealer is subject to the SEC's Uniform Net
Capital Rule 15c3-1, which requires the maintenance of minimum net capital.
National has elected to use the alternative standard method permitted by the
rule. This requires that National maintain minimum net capital equal to the
greater of $250,000 or 2% of aggregate debit items. At December 31, 2000,
National's net capital exceeded the requirement by $3,648,000.
WestAmerica, as a registered broker-dealer is also subject to the SEC's Net
Capital Rule 15c3-1, which, under the standard method, requires that the company
maintain minimum net capital equal to the greater of $100,000 or 6 2/3% of
aggregate indebtedness. At December 31, 2000, WestAmerica's net capital exceeded
the requirement by $186,000.
Canterbury, as a registered broker-dealer, is also subject to the SEC's Net
Capital Rule 15c3-1, which, under the standard method, requires that Canterbury
maintain minimum net capital equal to $5,000. At December 31, 2000, Canterbury's
net capital exceeded the requirement by $3,877.
Advances, dividend payments and other equity withdrawals from National,
WestAmerica or Canterbury are restricted by the regulations of the SEC, and
9
other regulatory agencies. These regulatory restrictions may limit the amounts
that these subsidiaries may dividend or advance to Olympic.
The objective of liquidity management is to ensure that the Company has ready
access to sufficient funds to meet commitments, fund deposit withdrawals and
efficiently provide for the credit needs of customers.
The Company believes its internally generated liquidity, together with access to
external capital and debt resources will be sufficient to satisfy existing
operations. The $3,000,000 of additional capital raised by the Company,
subsequent to the first quarter of fiscal 2001, will be used primarily to
support its expanded market making activities. Additionally, as the Company
further expands its operations, or acquires other businesses, the Company will
likely require additional capital.
PART II
ITEM 1 - LEGAL PROCEEDINGS
During the quarter, there was a development in the following proceeding:
THE MAXAL TRUST, ET AL. V. NATIONAL SECURITIES CORPORATION ET AL., United States
District Court, Central District of California, Case No. CV-97-4392 ABC (Shx).
See disclosure in the Company's Form 10-Q for the quarter ended December 31,
1998 and Form 10-K for the fiscal year ended September 24, 1999.
On February 16, 1999, the District Court dismissed the plaintiffs' remaining
claims against National in their entirety and granted National's motion for
summary judgment. A final judgment was issued by the court on April 26, 1999.
The plaintiffs filed a notice of appeal on May 4, 1999. The United States Court
of Appeals for the Ninth Circuit affirmed the District Court's dismissal on
December 20, 2000.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
10.25 Loan and security agreement January 2001.
27. Financial Data Schedule
b) Reports on Form 8-K (None)
10
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OLYMPIC CASCADE FINANCIAL CORPORATION AND SUBSIDIARIES
February 12, 2001 By: Steven A. Rothstein
Date Steven A. Rothstein, Chairman and
Chief Executive Officer
February 12, 2001 By: Robert H. Daskal
Date Robert H. Daskal, Senior Vice
President, Chief Financial Officer,
Secretary and Treasurer
February 12, 2001 By: David M. Williams
Date David M. Williams, Corporate Controller
and Chief Accounting Officer
000