For:
Gilman + Ciocia, Inc.
11 Raymond Avenue
Poughkeepsie, New York 12603
Contact:
Michael Ryan
(845) 471-8600
Gilman + Ciocia, Inc. Reports Operating Income Increase of $1,750,000 for
Quarter Ended March 31, 2004
Poughkeepsie, NY, May 13, 2004- Gilman + Ciocia, Inc. (Nasdaq NM:GTAX.PK), a
leading provider of federal and state income tax preparation and financial
services, today announced its results for the third quarter ended March 31,
2004. Total revenues increased by more than $3,500,000 to $18,256,000 for the
quarter ended March 31, 2004 from $14,724,000 for the quarter ended March 31,
2003. Operating income increased by $1,750,000 to $1,982,000 for the quarter
ending March 31, 2004 from $232,000 for the quarter ended March 31, 2003. Net
income for the quarter ended March 31, 2004 was $.18 per share as compared to
$.07 per share for the quarter ended March 31, 2003. The number of common shares
included in the weighted average calculation of earnings per share was 8,832,724
on March 31, 2004 and 9,666,747 on March 31, 2003.
Revenues for the nine months ended March 31, 2004 increased to $45,389,000 from
$42,085,000 compared to the same period a year ago. Net income from continuing
operations increased to $498,000 for the nine months ended March 31, 2004 from a
loss of $3,910,000 for the nine months ended March 31, 2003. Net income,
including discontinued operations, for the nine months ended March 31,2004 was
$4,805,000 or $.51 per share as compared to a loss of ($8,738,273) or ($.94) per
share for the nine months ended March 31, 2003. The number of common shares
included in the weighted average calculation of earnings per share was 9,370,918
on March 31, 2004 and 9,338,851 on March 31, 2003.
Michael P. Ryan, president and chief executive officer of Gilman + Ciocia, Inc.
stated, "Our impressive third quarter earnings are the direct result of our
continued focus on building our full service tax business while continuing to
control fixed expenses."
About Gilman + Ciocia, Inc.
Gilman + Ciocia, Inc. is the first publicly traded company to combine financial
planning and tax preparation services. The Company augments its tax preparation
services by offering clients financial planning services including securities
brokerage, life insurance and annuity brokerage, and mortgage brokerage
services. Headquartered in Poughkeepsie, New York, the Company prepares some
26,000 tax returns annually, predominantly to middle and upper income tax
brackets clients and has 39 offices in 5 states.
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Statements in this Press release may constitute "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
section 21E of the Securities Act of 1934, as amended. Any statements contained
herein which are not statements of historical facts and that address activities,
events or developments that the company expects, believes or anticipates will or
may occur in the future shall be deemed to be forward-looking statements.
Forward-looking statements are inherently subject to risks and uncertainties,
many of which cannot be predicted with accuracy and some of which might not be
even be anticipated. Future events, actual results and performance, financial
and otherwise, could differ materially from those set forth in or contemplated
by the forward-looking statements herein. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof. The Company undertakes no obligation to release publicly any
revisions to these forward looking statements that may be made to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this release does not
constitute an admission by the Company or any other person that the events or
circumstances described in such statement are material. Factors that could cause
actual results to differ materially from those in forward-looking statements
include, without limitation, various risk factors listed from time to time in
the Company's SEC reports.
Tables Follow
Gilman + Ciocia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Three Months For the Nine Months
Ended March 31, Ended March 31,
---------------------------------------------------------------
2004 2003 2004 2003
---------------------------------------------------------------
Revenues:
Financial planning services $ 14,090,700 $ 10,996,139 $ 40,337,794 $ 37,379,645
Tax preparation fees 4,165,396 3,728,017 5,050,941 4,705,114
---------------------------------------------------------------
Total revenues 18,256,096 14,724,156 45,388,735 42,084,759
---------------------------------------------------------------
Operating Expenses:
Salaries and commissions 12,228,226 10,837,454 34,562,227 34,629,769
General and administrative 2,166,089 1,871,735 5,631,479 6,032,697
Advertising 685,924 397,127 807,502 453,986
Brokerage fees and licenses 343,777 215,181 1,198,612 1,104,579
Rent 506,144 689,009 1,621,359 2,333,173
Depreciation and amortization 343,707 482,125 1,069,897 1,355,039
Loss on sale of equipment -- -- -- 85,326
---------------------------------------------------------------
Total operating expenses 16,273,867 14,492,631 44,891,077 45,994,569
---------------------------------------------------------------
Income (loss) from
continuing operations before other ---------------------------------------------------------------
income and expenses 1,982,229 231,525 497,658 (3,909,810)
---------------------------------------------------------------
Other Income (Expenses):
Interest and investment income $ 552.00 66,860 28,578 71,299
Interest expense (372,225) (344,704) (822,280) (1,546,997)
Other income (expense), net -- --
---------------------------------------------------------------
Total other income (expense) (371,673) (277,844) (793,702) (1,475,698)
---------------------------------------------------------------
Loss from continuing operations ---------------------------------------------------------------
before income taxes 1,610,556 (46,319) (296,044) (5,385,508)
---------------------------------------------------------------
-- -- -- --
---------------------------------------------------------------
Income taxes (benefit) 18,428 15,000 19,598 66,500
---------------------------------------------------------------
-- -- -- --
---------------------------------------------------------------
Loss from continuing operations 1,592,128 (61,319) (315,642) (5,452,008)
---------------------------------------------------------------
Discontinued Operations:
Income (loss) from discontinued operations 10,342 (404,004) (147,019) (1,736,774)
-- -- -- --
Loss on disposal of -- -- -- --
discontinued operations $ 0.00 1,137,089 5,388,566 (1,542,991)
-- -- -- --
Income taxes (benefit) -- -- 121,359 6,500
-- -- --
---------------------------------------------------------------
Income (loss) from discontinued operations -- 733,085 5,120,188 (3,286,265)
---------------------------------------------------------------
-- -- -- --
Net income (loss) $ 1,602,470 $ 671,766 $ 4,804,546 $ (8,738,273)
===============================================================