Exhibit 99
OPTIONABLE REPORTS RECORD RESULTS FOR THE 2006 FOURTH QUARTER AND FULL YEAR
REVENUE AND NET INCOME INCREASE TO ALL TIME HIGHS
Valhalla, NY (February 06, 2006) ... Optionable, Inc (OTCBB: OPBL), a leading
provider of natural gas and other energy derivatives brokerage services,
announced today record results for its fourth quarter and year ended December
31, 2006. The Company said that revenues increased 310 percent for the fourth
quarter and 177 percent for the full year compared to prior-year periods, and
net income reached all-time highs, increasing 859 percent for the fourth
quarter and 393 percent for the full year compared to prior-year periods.
Revenues for the fourth quarter ended December 31, 2006, were $6.8 million,
with net income of $2.5 million, or $0.05 per diluted share, up from $1.7
million in revenue, and net income of $262,769, or $0.01 per diluted share,
for the fourth quarter of 2005. Operating margin increased to 58 percent for
this year's fourth quarter up from 19 percent for the fourth quarter of 2005.
The weighted average number of diluted common shares used in the computations
was 53,020,901 and 51,750,647 for the fourth quarter of 2006 and of 2005,
respectively.
Commenting on the results, Optionable CEO Kevin Cassidy said, "2006 was a
benchmark year for us, with the launch of our electronic trading platform,
OPEX(R), as well as our Analytics service. We're particularly happy with these
results as they are due almost entirely to our customers' positive response to
the innovative and impeccable service we delivered to them. These results also
demonstrate a very healthy and largely untapped market for our derivative
brokerage services.
"The results for the quarter and the year were driven primarily by our
voice-brokerage and open outcry service; however, OPEX, which we launched in
July 2006, is beginning to add to our overall revenue mix. We expect that the
efficiency of OPEX in executing trades, will cause its contribution to revenue
to become a substantial portion of the mix as we progress into 2007 and even
2008, particularly as we begin to open up the market for our services."
Cassidy continued, "We intend to build on the success we've enjoyed to date,
adding products and services beyond our capabilities in the energy derivative
market and Analytics. We intend to look at expanding our relationship with
NYMEX, and increase the traction of OPEX. In short, there are a number of
strategic opportunities in front of us and we will examine each one thoroughly
and carefully in order to continue building Optionable into a force in the
derivatives brokerage business.
"During the past year we experimented with releasing the number of contracts
traded on a monthly basis, but at this point we feel the information is more
meaningful when it is part of a quarterly earnings release."
Revenues for the year ended December 31, 2006, were $16.1 million, with net
income of $6.2 million, or $0.12 per diluted share, up from $5.8 million in
revenues with net income of $1.3 million, or $0.02 per diluted share.
Operating margin increased to 52 percent for 2006, up from 26 percent for
2005. The weighted average number of diluted common shares used in the
computations was 52,559,445 for 2006 and 51,524,732 for 2005. As of December
31, 2006, the Company had cash and cash equivalents of $7.9 million.
The Company announced in January 2007 that three of its founding stockholders
executed a binding term sheet for an agreement with NYMEX Holdings, Inc.
(NYSE:NMX) ("NYMEX") concerning certain cooperative technology initiatives,
the acquisition of a 19 percent stake in Optionable by NYMEX from its three
founding stockholders and Optionable's issuance to NYMEX of a warrant which
would permit it to increase its ownership in Optionable.
The Company also announced in January 2007 that due to its rapid growth, it
re-located its headquarters to larger facilities in Westchester County.
Webcast of Earnings Conference Call
Optionable Inc's management will host a conference call on Tuesday, February
6, 2007, at 5:00 pm Eastern time, to review its 2006 year end results. This
call will be broadcast live over the Internet simultaneously and may be
accessed at www.optionable.com or www.vcall.com. Web participants are
encouraged to go to either website at least 15 minutes prior to the start of
the call to register, download, and install any necessary audio software. The
online archive will be available shortly after the conclusion of the call and
continue for 30 days.
About Optionable
Optionable, Inc. is a leading provider of natural gas and other energy
derivatives trading and brokerage services, headquartered in Valhalla, NY. The
company provides its services to brokerage firms, financial institutions,
energy traders and hedge funds nationwide. In addition to the traditional
voice brokerage business, Optionable developed an automated derivatives
trading platform. OPEX(R) is a real-time electronic trade matching and brokerage
system designed to improve liquidity and transparency in the energy
derivatives market. For more information about Optionable and OPEX please
visit www.optionable.com.
Safe Harbor Statement
This release contains forward-looking statements which are made pursuant to
the safe harbor provisions of Section 21E of the Securities Exchange Act of
1934. The forward-looking statements in this release do not constitute
guarantees of future performance. Those statements involve a number of factors
that could cause actual results to differ materially, including risks
associated with market acceptance of OPEX, our ability to retain key
employees, reliance of strategic relationships, intense and increasing
competition, concentration of services revenues related to natural gas
derivatives, increased governmental regulations as well as other risks
detailed in the Company's filings with the Securities and Exchange Commission.
Optionable assumes no obligation to update any forward-looking information
contained in this press release or with respect to the announcements described
herein.
OPEX is a servicemark of Optionable, Inc.
Contact Information:
Rudy Barrio (investors)
Allen & Caron Inc
Tel: 212 691 8087
Email: r.barrio@allencaron.com
or
Brian Kennedy (media)
Allen & Caron Inc
Tel: 212 691 8087
Email: brian@allencaron.com
-TABLES FOLLOW-
OPTIONABLE, INC.
RESULTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
----------- ----------- ------------ -----------
2006 2005 2006 2005
----------- ----------- ------------ -----------
Net revenues $ 6,831,884 $ 1,668,156 $ 16,069,511 $ 5,805,414
Cost of revenues 2,372,695 1,089,133 6,221,560 3,120,873
----------- ----------- ------------ -----------
Gross profit 4,459,189 579,023 9,847,951 2,684,541
Total operating
expenses 472,241 259,317 1,504,624 1,146,206
----------- ----------- ------------ -----------
Operating income 3,986,948 319,706 8,343,327 1,538,335
Other (expense)
/income, net (30,299) (56,937) (678,097) (278,771)
----------- ----------- ------------ -----------
Net income before
income tax 3,956,649 262,769 7,665,230 1,259,564
Income tax (1,435,000) - (1,459,052) -
----------- ----------- ------------ -----------
Net income $ 2,521,649 $262,769 $ 6,206,178 $ 1,259,564
=========== =========== ============ ===========
Basic earnings per
common share $ 0.05 $ 0.01 $ 0.12 $ 0.02
=========== =========== ============ ===========
Diluted earnings
per common share $ 0.05 $ 0.01 $ 0.12 $ 0.02
=========== =========== ============ ===========
Basic weighted
average common
shares outstanding 51,623,374 51,406,431 51,478,354 51,406,431
=========== =========== ============ ===========
Diluted weighted
average common
shares outstanding 53,020,901 51,750,647 52,559,445 51,524,732
=========== =========== ============ ===========
OPTIONABLE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2006 2005
----------------- -----------------
Current Assets:
Cash $7,913,393 $ 1,811,453
Accounts receivable, net 2,283,143 352,332
Other receivables 1,796,132 458,355
Other current assets 64,162 -
----------------- -----------------
Total current assets 12,056,830 2,622,140
Other assets 227,401 240,274
----------------- -----------------
Total assets $ 12,284,231 $ 2,862,414
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued expenses $ 3,539,124 $ 465,540
Due to related parties 1,855,210 2,233,771
----------------- -----------------
Total liabilities 5,394,334 2,699,311
Stockholders' Equity: 6,889,897 163,103
----------------- -----------------
Total liabilities and
stockholders' equity $ 12,284,231 $ 2,862,414
================= =================
END-END-END