First Albany Companies Inc. (NASDAQ: FACT) reported its
financial results for the fourth quarter and year ended December 31,
2005, and will hold a conference call today at 4:30 P.M., EST (see
dial-in information below).
First Albany's 2005 fourth quarter net revenues from continuing operations were $63.8 million, compared to $56.5 million for the fourth quarter of 2004. The Company reported net income from continuing operations of $3.5 million, or $0.24 per diluted share, for the 2005 fourth quarter, compared to $2.6 million, or $0.19 per diluted share, for the same period in 2004. Diluted earnings per share on a consolidated basis for the 2005 fourth quarter were $0.20 per share compared to $0.15 for the fourth quarter of 2004.
For the year ended December 31, 2005, First Albany's net revenues from continuing operations were $166.1 million compared to $176.6 million for 2004. The Company reported a net loss from continuing operations of $9.4 million, or $0.68 per diluted share, for 2005 compared to a net loss from continuing operations of $1.9 million, or $0.15 per diluted share, for 2004. Included in the loss from continuing operations for 2005, is a $9.7 million charge taken to establish a deferred tax asset valuation allowance. Consolidated diluted earnings per share for 2005 was a net loss of $0.74 compared to a net loss of $0.29 for 2004.
2005 Business Highlights
-- The Company recorded a $31.0 million gain from the initial public offering of iRobot Corporation (Nasdaq: IRBT) in the fourth quarter of 2005.
-- Public Finance achieved record revenues in 2005 of $28.8 million.
-- Total Investment Banking achieved a fifth consecutive year of revenue growth to $47.6 million, up from $23.0 million in 2001.
-- FA Technology Ventures invested an additional $10.8 million in six existing and two new portfolio companies.
"While 2005 was a challenging year, we did make some significant progress," said Alan Goldberg, President and Chief Executive Officer of First Albany Companies. "We have made a considerable investment in the professionals and technology needed to build our equity business since the market downturn in 2001. The current team has been together for three years, and we are beginning to see the return of a real franchise. Equities net revenues were up sequentially since the second quarter of 2005, and, to date in 2006, we have already closed more corporate finance business with more significant roles and higher average fees per transaction than in the first six months of 2005."
"In 2006, we plan to build on these accomplishments and position First Albany for growth and profitability," said Goldberg. "We want to maintain our strong team and grow our investment banking revenues as a percentage of our total business, which occurred in 2005 because of the record revenues from Public Finance. We intend to continue to monetize our investment portfolio to increase our capital base, as seen in transactions such as the IPO of iRobot Corporation, which was co-managed by our corporate finance department. And we will continue to focus on cost containment, so that as we work to increase our revenue levels, we will more easily achieve profitability through our improved operating leverage."
Net Revenues
Investment Banking
Investment Banking net revenue was $15.1 million for the 2005 fourth quarter, compared to $15.4 million for the 2004 fourth quarter. For the year ended December 31, 2005, Investment Banking net revenue was $47.6 million compared to $45.2 million for the same period in 2004.
-- A strong quarter in Public Finance helped drive Fixed Income Investment Banking net revenue to $8.5 million for the 2005 fourth quarter compared to $6.8 million for the 2004 fourth quarter. Public Finance led or co-led six transactions with an average deal size of $110.6 million compared to four transactions in the fourth quarter of 2004 at an average size of $57.0 million. For the year ended December 31, 2005, Fixed Income Investment Banking net revenue was $29.5 million compared to $19.3 million for 2004, due primarily to an increase in underwriting revenue.
-- Equity Investment Banking net revenue was $6.6 million for the 2005 fourth quarter compared to $8.6 million for the 2004 fourth quarter as a result of lower advisory fee revenue. The Company completed nine transactions during the quarter, acting as a co-manager on five public offerings, a placement agent on three private transactions, and an advisor on one acquisition. For the year ended December 31, 2005, Investment Banking net revenue was $18.1 million compared to $25.9 million for 2004, primarily from a decline in underwriting activity and advisory fee revenue.
Institutional Sales & Trading
Institutional Sales & Trading net revenue was $20.2 million for the 2005 fourth quarter, compared to $26.6 million for the 2004 fourth quarter. For the year ended December 31, 2005, Institutional Sales & Trading net revenue was $89.5 million, compared to $114.7 million for the same period in 2004.
-- Equity Sales & Trading net revenue of $10.3 million for the 2005 fourth quarter was unchanged from the same period a year ago. A three percent gain in NASDAQ net revenue for the 2005 fourth quarter was offset by a six percent drop in Listed net revenue. For the year ended December 31, 2005, equity sales and trading net revenue was $41.9 million compared to $50.8 million for the same period in 2004, due primarily to a decline in customer activity.
-- Municipal Sales & Trading net revenue was $3.9 million for the 2005 fourth quarter, compared to $4.2 million for the 2004 fourth quarter. For the year ended December 31, 2005, municipal sales and trading net revenue was $13.4 million compared to $16.5 million for the same period in 2004. The drop in net revenue was due primarily to a decline in principal transaction revenue.
-- Mortgage-backed net revenue was $3.9 million for the 2005 fourth quarter compared to $3.5 million for the 2004 fourth quarter. For the twelve months ended December 31, 2005, mortgage-backed net revenue was up $3.7 million to $17.9 million, compared to $14.2 million for the same period in 2004. Descap Securities, Inc., which the Company acquired in May 2004, accounted for the year-over-year increase.
-- Corporate bond net revenue for the 2005 fourth quarter was $1.5 million compared to $6.6 million for the 2004 fourth quarter. For the year ended December 31, 2005, corporate bond net revenue was $11.3 million compared to $24.5 million for 2004, as spread compression continued to negatively impact secondary corporate bond activity.
Other
-- Other net revenue was $28.9 million for the 2005 fourth quarter compared to $13.5 million for the 2004 fourth quarter, primarily due to a $31.0 million gain from the initial public offering of iRobot Corporation (Nasdaq: IRBT). For the year ended December 31, 2005, gains on the Company's investment portfolio totaled $21.6 million versus $10.1 million in 2004.
-- FA Technology Ventures, the Companies' venture fund, invested an additional $10.8 million in 2005 in six existing and two new portfolio companies in the fund's targeted fields of information and energy technologies.
Expenses
-- Non-interest operating expenses were $42.1 million in the 2005 fourth quarter, 20.0 percent lower than in the fourth quarter of 2004. For the year ended December 31, 2005, non-interest operating expenses were $167.1 million, 9.9 percent lower than in 2004. Total headcount was down 12.8 percent at the end of 2005 compared to the end of 2004.
-- Compensation and benefits expenses in the 2005 fourth quarter were $30.2 million, down 23.6 percent from $39.5 million in the 2004 fourth quarter, primarily due to a decline in incentive compensation as a result of the decline in equities net revenue and a drop in fixed income sales and trading revenue. For the year ended December 31, 2005, compensation and benefits expenses were $118.1 million, down 10.1 percent from 2004. Included in the 2005 results is $3.2 million in severance costs related to the Company's ongoing program to reduce headcount and operating costs.
-- Non-compensation expenses in the 2005 fourth quarter were $11.9 million, down 9.3 percent from $13.1 million in the 2004 fourth quarter. In the fourth quarter of 2004, costs related to documenting compliance with section 404 of Sarbanes-Oxley totaled $0.7 million. For the year ended December 31, 2005, non-compensation expenses were $49.0 million, down 9.2 percent from 2004. Non-compensation expenses in 2005 include $2.1 million in expenses incurred as part of the Company's plans to consolidate its offices. Results for 2004 were negatively impacted by $7.7 million in unusual items, including litigation expenses, restructuring charges, an asset impairment, and costs related to documenting compliance with Section 404 of Sarbanes-Oxley.
-- Income Tax Expense from continuing operations for the 2005 fourth quarter was $18.3 million, reflecting a $9.7 million charge as a result of a valuation allowance related to the Company's deferred tax asset. The valuation allowance was established as a result of uncertainties as to its realization and cumulative taxable losses which have occurred over the past two years. -0- First Albany Companies Operational Highlights (Unaudited) Three Months Ended Twelve Months Ended December 31 December 31 2005 2005 V V 2005 2004 2004 2005 2004 2004 ------- ------- ----- -------- -------- ----- (Dollars in Thousands) Net Revenues: Equities $16,874 $18,879 -11% $ 60,047 $ 77,000 -22% Fixed Income 18,068 24,085 -25% 78,507 86,002 -9% Other 28,868 13,522 113% 27,595 13,633 102% ------- ------- ----- -------- -------- ----- Total $63,810 $56,486 13% $166,149 $176,635 -6% ------- ------- ----- -------- -------- ----- Pre-Tax Operating Income (Loss): Equities $ 476 $ 297 60% $ (4,712) $ 4,234 -211% Fixed Income 470 4,048 -88% 6,458 13,948 -54% Other 20,810 (427) n/m (2,694) (26,932) 90% ------- ------- ----- -------- -------- ----- Total $21,756 $ 3,918 455% $ (948) $ (8,750) 89% ======= ======= ===== ======== ======== ===== Capital Markets (Fixed Income & Equities) Three Months Ended Twelve Months Ended December 31 December 31 2005 2005 V V 2005 2004 2004 2005 2004 2004 ------- ------- ----- -------- -------- ----- (Dollars in Thousands) Net Revenues: Institutional Sales & Trading Equities $10,278 $10,262 0% $ 41,883 $ 50,801 -18% Fixed Income 9,875 16,358 -40% 47,588 63,912 -26% ------- ------- ----- -------- -------- ----- Total Institutional Sales & Trading 20,153 26,620 -24% 89,471 114,713 -22% ------- ------- ----- -------- -------- ----- Investment Banking Equities 6,591 8,555 -23% 18,099 25,948 -30% Fixed Income 8,539 6,811 25% 29,489 19,265 53% ------- ------- ----- -------- -------- ----- Total Investment Banking 15,130 15,366 -2% 47,588 45,213 5% ------- ------- ----- -------- -------- ----- Net Interest Income (358) 909 -139% 1,402 2,764 -49% Other Income 17 69 -75% 93 312 -70% ------- ------- ----- -------- -------- ----- Total Net Revenues $34,942 $42,964 -19% $138,554 $163,002 -15% ------- ------- ----- -------- -------- ----- Note: Does not include Discontinued Operations
Other
As of March 14, 2006 the Company entered into a loan agreement with a financial institution and will be using the proceeds of that loan to repay the senior debt.
Shareholders' Equity
Shareholders' equity as of December 31, 2005 was $87.7 million, compared to $79.7 million on September 30, 2005. Book value per share as of December 31, 2005 was $6.28, as compared to $5.96 on September 30, 2005.
Conference Call Information
First Albany Companies will hold a conference call today, Tuesday, March 14, 2006, at 4:30 P.M. (EST). This call will be webcast and can be accessed on the Investor Relations portion of the First Albany Companies website at www.firstalbany.com, as well as being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site. To participate on the call, please dial 800.362.0571 and request the First Albany earnings call. A recording of the call will be available for seven days by dialing 800.283.7928.
About First Albany
Founded in 1953, First Albany is a leading institutionally focused independent investment bank that serves the institutional market, the growing corporate middle market and public institutions by providing clients with strategic, research-based, innovative investment opportunities. First Albany offers a diverse range of products through its Equities division, Fixed Income division and Venture Capital division, FA Technology Ventures Inc. First Albany is traded on NASDAQ under the symbol FACT with offices in major business and commercial markets.
This press release contains "forward-looking statements," which are subject to various risks and uncertainties, including the conditions of the securities markets, generally, and acceptance of the Company's services within those markets and other risks and factors identified from time to time in the Company's filings with the Securities and Exchange Commission. These statements are not historical facts but instead represent only the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. -0- FIRST ALBANY COMPANIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) THREE MONTHS ENDED TWELVE MONTHS ENDED December 31 December 31 ---------------------------------------------------------------------- (In thousands of dollars except for per share amounts and shares outstanding) 2005 2004 2005 2004 ---------------------------------------------------------------------- Revenues: Commissions $ 4,008 $ 3,871 $ 17,594 $ 19,992 Principal transactions 16,157 23,895 72,495 93,511 Investment banking 15,132 14,302 47,745 46,485 Investment gains 27,839 12,410 21,591 10,070 Interest 3,895 3,500 15,380 10,395 Fees and other 613 552 4,178 2,345 ---------------------------------------------------------------------- Total revenues 67,644 58,530 178,983 182,798 Interest expense 3,834 2,043 12,834 6,163 ---------------------------------------------------------------------- Net revenues 63,810 56,487 166,149 176,635 ---------------------------------------------------------------------- Expenses (excluding interest): Compensation and benefits 30,201 39,505 118,120 131,421 Clearing, settlement and brokerage costs 1,857 1,637 9,038 6,648 Communications and data processing 3,113 3,429 14,078 14,797 Occupancy and depreciation 3,362 2,615 12,505 9,597 Selling 1,626 2,067 6,860 7,739 Impairment - - - 1,375 Restructuring - 525 - 1,275 Other 1,895 2,791 6,496 12,533 ---------------------------------------------------------------------- Total expenses (excluding interest) 42,054 52,569 167,097 185,385 ---------------------------------------------------------------------- Income (loss) before income taxes 21,756 3,918 (948) (8,750) ---------------------------------------------------------------------- Income tax expense (benefit) 18,259 1,322 8,467 (6,866) ---------------------------------------------------------------------- Income (loss) from continuing operations 3,497 2,596 (9,415) (1,884) ---------------------------------------------------------------------- Income (loss) from discontinued operations, net of taxes (553) (555) (802) (1,703) ---------------------------------------------------------------------- Net income (loss) $ 2,944 $ 2,041 $(10,217) $ (3,587) ====================================================================== Per share data: Basic earnings: Continued operations $ 0.25 $ 0.19 $ (0.68) $ (0.15) Discontinued operations (0.04) (0.04) (0.06) (0.14) ---------------------------------------------------------------------- Net Income (Loss) $ 0.21 $ 0.15 $ (0.74) $ (0.29) ====================================================================== Diluted earnings: Continued operations $ 0.24 $ 0.19 $ (0.68) $ (0.15) Discontinued operations (0.04) (0.04) (0.06) (0.14) ---------------------------------------------------------------------- Net Income (Loss) $ 0.20 $ 0.15 $ (0.74) $ (0.29) ====================================================================== Weighted average common and common equivalent shares outstanding: Basic 14,197,648 13,286,484 13,824,217 12,528,136 Dilutive (a) 14,913,053 14,069,743 14,679,596 13,621,366 ====================================================================== (a) Amount includes, for the twelve months of 2005, 0.9 million, and for the twelve months of 2004, 1.1 million, common equivalent shares that were excluded from the computation of dilutive earnings per share because they were anti-dilutive.
First Albany's 2005 fourth quarter net revenues from continuing operations were $63.8 million, compared to $56.5 million for the fourth quarter of 2004. The Company reported net income from continuing operations of $3.5 million, or $0.24 per diluted share, for the 2005 fourth quarter, compared to $2.6 million, or $0.19 per diluted share, for the same period in 2004. Diluted earnings per share on a consolidated basis for the 2005 fourth quarter were $0.20 per share compared to $0.15 for the fourth quarter of 2004.
For the year ended December 31, 2005, First Albany's net revenues from continuing operations were $166.1 million compared to $176.6 million for 2004. The Company reported a net loss from continuing operations of $9.4 million, or $0.68 per diluted share, for 2005 compared to a net loss from continuing operations of $1.9 million, or $0.15 per diluted share, for 2004. Included in the loss from continuing operations for 2005, is a $9.7 million charge taken to establish a deferred tax asset valuation allowance. Consolidated diluted earnings per share for 2005 was a net loss of $0.74 compared to a net loss of $0.29 for 2004.
2005 Business Highlights
-- The Company recorded a $31.0 million gain from the initial public offering of iRobot Corporation (Nasdaq: IRBT) in the fourth quarter of 2005.
-- Public Finance achieved record revenues in 2005 of $28.8 million.
-- Total Investment Banking achieved a fifth consecutive year of revenue growth to $47.6 million, up from $23.0 million in 2001.
-- FA Technology Ventures invested an additional $10.8 million in six existing and two new portfolio companies.
"While 2005 was a challenging year, we did make some significant progress," said Alan Goldberg, President and Chief Executive Officer of First Albany Companies. "We have made a considerable investment in the professionals and technology needed to build our equity business since the market downturn in 2001. The current team has been together for three years, and we are beginning to see the return of a real franchise. Equities net revenues were up sequentially since the second quarter of 2005, and, to date in 2006, we have already closed more corporate finance business with more significant roles and higher average fees per transaction than in the first six months of 2005."
"In 2006, we plan to build on these accomplishments and position First Albany for growth and profitability," said Goldberg. "We want to maintain our strong team and grow our investment banking revenues as a percentage of our total business, which occurred in 2005 because of the record revenues from Public Finance. We intend to continue to monetize our investment portfolio to increase our capital base, as seen in transactions such as the IPO of iRobot Corporation, which was co-managed by our corporate finance department. And we will continue to focus on cost containment, so that as we work to increase our revenue levels, we will more easily achieve profitability through our improved operating leverage."
Net Revenues
Investment Banking
Investment Banking net revenue was $15.1 million for the 2005 fourth quarter, compared to $15.4 million for the 2004 fourth quarter. For the year ended December 31, 2005, Investment Banking net revenue was $47.6 million compared to $45.2 million for the same period in 2004.
-- A strong quarter in Public Finance helped drive Fixed Income Investment Banking net revenue to $8.5 million for the 2005 fourth quarter compared to $6.8 million for the 2004 fourth quarter. Public Finance led or co-led six transactions with an average deal size of $110.6 million compared to four transactions in the fourth quarter of 2004 at an average size of $57.0 million. For the year ended December 31, 2005, Fixed Income Investment Banking net revenue was $29.5 million compared to $19.3 million for 2004, due primarily to an increase in underwriting revenue.
-- Equity Investment Banking net revenue was $6.6 million for the 2005 fourth quarter compared to $8.6 million for the 2004 fourth quarter as a result of lower advisory fee revenue. The Company completed nine transactions during the quarter, acting as a co-manager on five public offerings, a placement agent on three private transactions, and an advisor on one acquisition. For the year ended December 31, 2005, Investment Banking net revenue was $18.1 million compared to $25.9 million for 2004, primarily from a decline in underwriting activity and advisory fee revenue.
Institutional Sales & Trading
Institutional Sales & Trading net revenue was $20.2 million for the 2005 fourth quarter, compared to $26.6 million for the 2004 fourth quarter. For the year ended December 31, 2005, Institutional Sales & Trading net revenue was $89.5 million, compared to $114.7 million for the same period in 2004.
-- Equity Sales & Trading net revenue of $10.3 million for the 2005 fourth quarter was unchanged from the same period a year ago. A three percent gain in NASDAQ net revenue for the 2005 fourth quarter was offset by a six percent drop in Listed net revenue. For the year ended December 31, 2005, equity sales and trading net revenue was $41.9 million compared to $50.8 million for the same period in 2004, due primarily to a decline in customer activity.
-- Municipal Sales & Trading net revenue was $3.9 million for the 2005 fourth quarter, compared to $4.2 million for the 2004 fourth quarter. For the year ended December 31, 2005, municipal sales and trading net revenue was $13.4 million compared to $16.5 million for the same period in 2004. The drop in net revenue was due primarily to a decline in principal transaction revenue.
-- Mortgage-backed net revenue was $3.9 million for the 2005 fourth quarter compared to $3.5 million for the 2004 fourth quarter. For the twelve months ended December 31, 2005, mortgage-backed net revenue was up $3.7 million to $17.9 million, compared to $14.2 million for the same period in 2004. Descap Securities, Inc., which the Company acquired in May 2004, accounted for the year-over-year increase.
-- Corporate bond net revenue for the 2005 fourth quarter was $1.5 million compared to $6.6 million for the 2004 fourth quarter. For the year ended December 31, 2005, corporate bond net revenue was $11.3 million compared to $24.5 million for 2004, as spread compression continued to negatively impact secondary corporate bond activity.
Other
-- Other net revenue was $28.9 million for the 2005 fourth quarter compared to $13.5 million for the 2004 fourth quarter, primarily due to a $31.0 million gain from the initial public offering of iRobot Corporation (Nasdaq: IRBT). For the year ended December 31, 2005, gains on the Company's investment portfolio totaled $21.6 million versus $10.1 million in 2004.
-- FA Technology Ventures, the Companies' venture fund, invested an additional $10.8 million in 2005 in six existing and two new portfolio companies in the fund's targeted fields of information and energy technologies.
Expenses
-- Non-interest operating expenses were $42.1 million in the 2005 fourth quarter, 20.0 percent lower than in the fourth quarter of 2004. For the year ended December 31, 2005, non-interest operating expenses were $167.1 million, 9.9 percent lower than in 2004. Total headcount was down 12.8 percent at the end of 2005 compared to the end of 2004.
-- Compensation and benefits expenses in the 2005 fourth quarter were $30.2 million, down 23.6 percent from $39.5 million in the 2004 fourth quarter, primarily due to a decline in incentive compensation as a result of the decline in equities net revenue and a drop in fixed income sales and trading revenue. For the year ended December 31, 2005, compensation and benefits expenses were $118.1 million, down 10.1 percent from 2004. Included in the 2005 results is $3.2 million in severance costs related to the Company's ongoing program to reduce headcount and operating costs.
-- Non-compensation expenses in the 2005 fourth quarter were $11.9 million, down 9.3 percent from $13.1 million in the 2004 fourth quarter. In the fourth quarter of 2004, costs related to documenting compliance with section 404 of Sarbanes-Oxley totaled $0.7 million. For the year ended December 31, 2005, non-compensation expenses were $49.0 million, down 9.2 percent from 2004. Non-compensation expenses in 2005 include $2.1 million in expenses incurred as part of the Company's plans to consolidate its offices. Results for 2004 were negatively impacted by $7.7 million in unusual items, including litigation expenses, restructuring charges, an asset impairment, and costs related to documenting compliance with Section 404 of Sarbanes-Oxley.
-- Income Tax Expense from continuing operations for the 2005 fourth quarter was $18.3 million, reflecting a $9.7 million charge as a result of a valuation allowance related to the Company's deferred tax asset. The valuation allowance was established as a result of uncertainties as to its realization and cumulative taxable losses which have occurred over the past two years. -0- First Albany Companies Operational Highlights (Unaudited) Three Months Ended Twelve Months Ended December 31 December 31 2005 2005 V V 2005 2004 2004 2005 2004 2004 ------- ------- ----- -------- -------- ----- (Dollars in Thousands) Net Revenues: Equities $16,874 $18,879 -11% $ 60,047 $ 77,000 -22% Fixed Income 18,068 24,085 -25% 78,507 86,002 -9% Other 28,868 13,522 113% 27,595 13,633 102% ------- ------- ----- -------- -------- ----- Total $63,810 $56,486 13% $166,149 $176,635 -6% ------- ------- ----- -------- -------- ----- Pre-Tax Operating Income (Loss): Equities $ 476 $ 297 60% $ (4,712) $ 4,234 -211% Fixed Income 470 4,048 -88% 6,458 13,948 -54% Other 20,810 (427) n/m (2,694) (26,932) 90% ------- ------- ----- -------- -------- ----- Total $21,756 $ 3,918 455% $ (948) $ (8,750) 89% ======= ======= ===== ======== ======== ===== Capital Markets (Fixed Income & Equities) Three Months Ended Twelve Months Ended December 31 December 31 2005 2005 V V 2005 2004 2004 2005 2004 2004 ------- ------- ----- -------- -------- ----- (Dollars in Thousands) Net Revenues: Institutional Sales & Trading Equities $10,278 $10,262 0% $ 41,883 $ 50,801 -18% Fixed Income 9,875 16,358 -40% 47,588 63,912 -26% ------- ------- ----- -------- -------- ----- Total Institutional Sales & Trading 20,153 26,620 -24% 89,471 114,713 -22% ------- ------- ----- -------- -------- ----- Investment Banking Equities 6,591 8,555 -23% 18,099 25,948 -30% Fixed Income 8,539 6,811 25% 29,489 19,265 53% ------- ------- ----- -------- -------- ----- Total Investment Banking 15,130 15,366 -2% 47,588 45,213 5% ------- ------- ----- -------- -------- ----- Net Interest Income (358) 909 -139% 1,402 2,764 -49% Other Income 17 69 -75% 93 312 -70% ------- ------- ----- -------- -------- ----- Total Net Revenues $34,942 $42,964 -19% $138,554 $163,002 -15% ------- ------- ----- -------- -------- ----- Note: Does not include Discontinued Operations
Other
As of March 14, 2006 the Company entered into a loan agreement with a financial institution and will be using the proceeds of that loan to repay the senior debt.
Shareholders' Equity
Shareholders' equity as of December 31, 2005 was $87.7 million, compared to $79.7 million on September 30, 2005. Book value per share as of December 31, 2005 was $6.28, as compared to $5.96 on September 30, 2005.
Conference Call Information
First Albany Companies will hold a conference call today, Tuesday, March 14, 2006, at 4:30 P.M. (EST). This call will be webcast and can be accessed on the Investor Relations portion of the First Albany Companies website at www.firstalbany.com, as well as being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site. To participate on the call, please dial 800.362.0571 and request the First Albany earnings call. A recording of the call will be available for seven days by dialing 800.283.7928.
About First Albany
Founded in 1953, First Albany is a leading institutionally focused independent investment bank that serves the institutional market, the growing corporate middle market and public institutions by providing clients with strategic, research-based, innovative investment opportunities. First Albany offers a diverse range of products through its Equities division, Fixed Income division and Venture Capital division, FA Technology Ventures Inc. First Albany is traded on NASDAQ under the symbol FACT with offices in major business and commercial markets.
This press release contains "forward-looking statements," which are subject to various risks and uncertainties, including the conditions of the securities markets, generally, and acceptance of the Company's services within those markets and other risks and factors identified from time to time in the Company's filings with the Securities and Exchange Commission. These statements are not historical facts but instead represent only the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. -0- FIRST ALBANY COMPANIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) THREE MONTHS ENDED TWELVE MONTHS ENDED December 31 December 31 ---------------------------------------------------------------------- (In thousands of dollars except for per share amounts and shares outstanding) 2005 2004 2005 2004 ---------------------------------------------------------------------- Revenues: Commissions $ 4,008 $ 3,871 $ 17,594 $ 19,992 Principal transactions 16,157 23,895 72,495 93,511 Investment banking 15,132 14,302 47,745 46,485 Investment gains 27,839 12,410 21,591 10,070 Interest 3,895 3,500 15,380 10,395 Fees and other 613 552 4,178 2,345 ---------------------------------------------------------------------- Total revenues 67,644 58,530 178,983 182,798 Interest expense 3,834 2,043 12,834 6,163 ---------------------------------------------------------------------- Net revenues 63,810 56,487 166,149 176,635 ---------------------------------------------------------------------- Expenses (excluding interest): Compensation and benefits 30,201 39,505 118,120 131,421 Clearing, settlement and brokerage costs 1,857 1,637 9,038 6,648 Communications and data processing 3,113 3,429 14,078 14,797 Occupancy and depreciation 3,362 2,615 12,505 9,597 Selling 1,626 2,067 6,860 7,739 Impairment - - - 1,375 Restructuring - 525 - 1,275 Other 1,895 2,791 6,496 12,533 ---------------------------------------------------------------------- Total expenses (excluding interest) 42,054 52,569 167,097 185,385 ---------------------------------------------------------------------- Income (loss) before income taxes 21,756 3,918 (948) (8,750) ---------------------------------------------------------------------- Income tax expense (benefit) 18,259 1,322 8,467 (6,866) ---------------------------------------------------------------------- Income (loss) from continuing operations 3,497 2,596 (9,415) (1,884) ---------------------------------------------------------------------- Income (loss) from discontinued operations, net of taxes (553) (555) (802) (1,703) ---------------------------------------------------------------------- Net income (loss) $ 2,944 $ 2,041 $(10,217) $ (3,587) ====================================================================== Per share data: Basic earnings: Continued operations $ 0.25 $ 0.19 $ (0.68) $ (0.15) Discontinued operations (0.04) (0.04) (0.06) (0.14) ---------------------------------------------------------------------- Net Income (Loss) $ 0.21 $ 0.15 $ (0.74) $ (0.29) ====================================================================== Diluted earnings: Continued operations $ 0.24 $ 0.19 $ (0.68) $ (0.15) Discontinued operations (0.04) (0.04) (0.06) (0.14) ---------------------------------------------------------------------- Net Income (Loss) $ 0.20 $ 0.15 $ (0.74) $ (0.29) ====================================================================== Weighted average common and common equivalent shares outstanding: Basic 14,197,648 13,286,484 13,824,217 12,528,136 Dilutive (a) 14,913,053 14,069,743 14,679,596 13,621,366 ====================================================================== (a) Amount includes, for the twelve months of 2005, 0.9 million, and for the twelve months of 2004, 1.1 million, common equivalent shares that were excluded from the computation of dilutive earnings per share because they were anti-dilutive.
© 2006 Business Wire
