Exhibit 99.1
[LOGO]
FBR
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 R. Harrington 703.312.9647 or kharrington@fbr.com
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Friedman, Billings, Ramsey Group Reports
Second Quarter 2001 Results
Net Income of $5.1 Million or $0.10 Per Share Reported
ARLINGTON, Va., July 26, 2001 - Friedman, Billings, Ramsey Group, Inc. (NYSE:
FBR) today reported net income of $5.1 million, or $0.10 (diluted) per share,
for the quarter ended June 30, 2001, versus net income of $5.3 million, or $0.11
(diluted) per share, for the same quarter last year. Revenues were $55.2 million
for the second quarter, compared with $43.5 million for the same quarter a year
ago.
"FBR's core operating business has continued to strengthen throughout the first
half of the year," Vice Chairman and Co-Chief Executive Officer Eric F. Billings
said. "The full magnitude of this improvement is obscured by the $44.5 million
in incentive allocation revenue (carried interest), primarily from our
technology venture capital portfolio, that we recorded during the first six
months of last year. Excluding such unusual gains, our results for the quarter
just ended and for the first six months of the year were significantly higher
than the year-ago periods."
For the first six months of the year, FBR reported a loss of $(0.02) (diluted)
per share on revenues of $77.6 million, versus earnings of $0.23 (diluted) per
share on revenues of $109.8 million for the same period in 2000.
In its capital markets business, FBR reported investment banking revenue for the
quarter of $32.8 million, up from $9.9 million in the second quarter of 2000.
The Company reported quarterly institutional brokerage revenue of $11.3 million,
essentially flat versus the second quarter of 2000, net of more than $6.0
million in proprietary trading gains (the Company reported $17.4 million in
institutional brokerage revenue in the second quarter of 2000).
In its asset management business, the Company reported fee revenue of $5.5
million for the quarter, reflecting the organic growth in several of FBR's
existing asset management vehicles, as well as the addition of managed assets
from the acquisition of Money Management Associates LP (MMA) and the addition of
mutual fund administration fee revenue from the acquisition of Rushmore Bank &
Trust. Base fees were $5.2 million in the second quarter of 2001 versus $2.2
million in the second quarter of 2000.
"During the second quarter we continued to add recurring revenues in our asset
management business," Chairman and Co-Chief Executive Officer Emanuel J.
Friedman said. "In the quarter, we finalized our acquisition of MMA/Rushmore,
closed on new alternative asset management products, and saw the assets in
several existing vehicles increase." Mr. Friedman added that at the end of the
quarter, FBR's mutual fund and money market fund assets under management stood
at $1.15 billion, which includes $870 million in assets from MMA, as well as a
133 percent increase in the assets of FBR's family of existing mutual funds
since the beginning of the year. Following the MMA acquisition, FBR now has
three equity mutual funds and six money market, index, and fixed income funds
and total assets under management of more than $1.8 billion.
In addition to asset management fees, the MMA/Rushmore acquisition also provided
FBR with other sources of recurring revenues through Rushmore's banking platform
and mutual fund processing services. During the quarter, the total revenue from
the acquired businesses (base asset management fees, spread income, and mutual
fund processing services) was $2.6 million.
During the quarter, the Company also announced it had opened an office in
Cleveland staffed by seven investment banking professionals focused on financial
institutions and diversified industries in the Midwest, as well as adding
institutional brokers and research analysts in London and New York.
Mr. Billings added: "We've been able to attract very talented people across our
research, sales, and investment banking platforms during the last several
months. While we continue to actively recruit institutional and high net worth
sales personnel, we are nearing completion of the hiring plan we announced at
the beginning of this year."
"Indeed, the on-going rotation of capital into the financial institutions and
real estate sectors - key areas of expertise for us - combined with a
competitive landscape that offers opportunities for a company like ours, helped
us execute more than $1 billion in transactions for our investment banking
clients through the first six months of the year."
FBR had 46.1 million common shares outstanding, shareholders' equity of $200.3
million, and book value per share of $4.35 as of June 30, 2001, including the
effect of the employee stock purchase and loan program that was announced on
June 27, 2001. Total assets as of June 30, 2001, were $299.3 million.
Investors who want to listen to the Company's 9 a.m. (Eastern Time) conference
call may do so via the web at: http://dmg.activate.com/dmgi.dll?1548&ikzw.
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Replays of the webcast will be available afterward.
Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) is a financial holding
company for businesses that provide investment banking, institutional brokerage,
specialized asset management, and banking products and services. FBR provides
capital and financial expertise throughout a company's lifecycle and affords
investors access to a range of proprietary financial products and services.
Headquartered in the Washington metropolitan area, FBR has offices in Arlington
and Reston, Va., Atlanta, Bethesda, Md., Boston, Charlotte, Chicago, Cleveland,
Dallas, Irvine, Ca., New York City, Portland, Seattle, London, and Vienna. Bank
products and services are offered by FBR National
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Bank & Trust, member FDIC and an Equal Housing Lender. For more information, see
www.fbr.com.
# # #
Statements concerning future performance, developments, 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
and advisory services, 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.
[LOGO] CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FBR (Dollars in thousands, except per share amounts)
(Unaudited)
Three months ended
June 30,
2001 % 2000 %
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REVENUES:
Investment banking $ 32,811 59.5% $ 9,946 22.8%
Institutional brokerage 11,345 20.6% 17,415 40.0%
Asset management 8,990 16.3% 13,823 31.8%
Interest, dividends and other 2,006 3.6% 2,352 5.4%
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Total revenues 55,152 100.0% 43,536 100.0%
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EXPENSES:
Compensation and benefits 32,756 59.4% 25,209 57.9%
Business development and professional services 8,205 14.9% 4,391 10.1%
Interest 334 0.6% 319 0.7%
Other 8,747 15.8% 7,552 17.4%
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Total expenses 50,042 90.7% 37,471 86.1%
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Net income before income taxes 5,110 9.3% 6,065 13.9%
Provision for income taxes - 0.0% 785 1.8%
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Net income $ 5,110 9.3% $ 5,280 12.1%
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Basic earnings per share $ 0.10 $ 0.11
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Diluted earnings per share $ 0.10 $ 0.11
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Weighted average shares - basic 49,209 49,106
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Weighted average shares - diluted 49,230 50,065
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FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
[LOGO] CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FBR (Dollars in thousands, except per share amounts)
(Unaudited)
Six months ended
June 30,
2001 % 2000 %
--------------- --------------- -------------- --------------
REVENUES:
Investment banking $ 42,709 55.0% $ 26,642 24.3%
Institutional brokerage 23,882 30.8% 29,092 26.5%
Asset management 6,768 8.7% 49,700 45.3%
Interest, dividends and other 4,246 5.5% 4,345 3.9%
--------------- --------------- -------------- --------------
Total revenues 77,605 100.0% 109,779 100.0%
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EXPENSES:
Compensation and benefits 49,007 63.2% 71,432 65.1%
Business development and professional services 13,531 17.4% 9,008 8.2%
Interest 415 0.5% 541 0.5%
Other 15,681 20.2% 14,177 12.9%
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Total expenses 78,634 101.3% 95,158 86.7%
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Net (loss) income before income taxes (1,029) -1.3% 14,621 13.3%
Provision for income taxes - 0.0% 2,924 2.6%
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Net (loss) income $ (1,029) -1.3% $ 11,697 10.7%
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Basic (loss) earnings per share $ (0.02) $ 0.24
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Diluted (loss) earnings per share $ (0.02) $ 0.23
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Weighted average shares - basic 49,298 49,064
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Weighted average shares - diluted 49,298 50,996
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