AUSTIN, Texas, April 2 /PRNewswire-FirstCall/ -- Tejas Incorporated (BULLETIN BOARD: TEJS) today announced its fourth quarter and year end 2006 financial results.
Fourth quarter 2006 total revenues were $6.8 million as compared to total revenues of $(155,000) for the fourth quarter 2005. The Company reported a pre-tax loss from continued operations of $131,000 for the fourth quarter 2006 as compared to a pre-tax loss from continued operations of $5.9 million for the fourth quarter 2005. The Company reported an after-tax loss from continued operations of $470,000 for the fourth quarter 2006 as compared to an after-tax loss from continued operations of $3.8 million for the fourth quarter 2005. The Company reported a total net loss of $470,000 for the fourth quarter 2006 as compared to a total net loss of $4.6 million for the fourth quarter 2005, which included a net loss of $830,000 from discontinued operations for the fourth quarter 2005. The Company reported a total loss of $0.10 per share of common stock on a basic and fully diluted basis for the fourth quarter 2006, compared to a total loss of $0.59 per share of common stock on a basic and fully diluted basis for the fourth quarter 2005.
2006 total revenues were $18.9 million compared to total revenues of $28.4 million for 2005. The Company reported a pre-tax loss from continued operations of $8.4 million for 2006 as compared to a pre-tax loss from continued operations of $6.0 million for 2005. The Company reported an after- tax loss from continued operations of $5.6 million for 2006 as compared to an after-tax loss from continued operations of $3.8 million for 2005. The Company reported a total net loss of $43.4 million for 2006, which included a net loss of $37.7 million from discontinued operations as compared to a total net loss of $4.5 million for 2005, which included a net loss of $662,000 from discontinued operations. The Company reported a loss from continued operations of $0.80 per share of common stock on a basic and fully diluted basis for 2006, compared to a loss from continued operations of $0.63 per share of common stock on a basic and fully diluted basis for 2005. The Company reported a total net loss of $6.05 per share of common stock on a basic and fully diluted basis for 2006, which included a loss from discontinued operations of $5.25 per share of common stock on a basic and fully diluted basis, compared to a total net loss of $0.74 per share of common stock on a basic and fully diluted basis for 2005, which included a loss from discontinued operations of $0.11 per share of common stock on a basic and fully diluted basis.
Kurt Rechner, President, Chief Operating Officer and interim Chief Financial Officer, commented "2006 was a difficult year for Tejas Incorporated. After substantial consideration, we sold the Capital & Technology Advisors, Inc. segment of our business in October 2006, recording goodwill impairment charges and losses which substantially affected our overall financial performance for the year."
Mark Salter, Chief Executive Officer, added, "We faced adversity in 2006 and we believe we are a better, stronger organization for it. We have returned our focus to expanding and growing our core competencies in the investment banking, brokerage and trading, and research areas."
For the fourth quarter 2006, investment banking segment revenues were $560,000 as compared to $545,000 for the fourth quarter 2005. Total investment banking revenues for 2006 were $1.9 million as compared to $16.4 million for 2005.
Total brokerage segment revenues were $6.2 million for the fourth quarter 2006 as compared to a total brokerage segment loss of $699,000 for the fourth quarter 2005. Total brokerage segment revenues were $16.9 million for 2006 as compared to total brokerage segment revenues of $11.9 million for 2005.
Mr. Rechner added, "We have a renewed focus on the strengths that represent the foundation of our organization and are mindful of the work that lies ahead to effectively grow our franchise over the long-term."
Company Information
Tejas Incorporated is a holding company whose primary operating subsidiary is Tejas Securities Group, Inc., a Texas corporation ("Tejas Securities"). Tejas Securities is a full service brokerage and investment banking firm that focuses on the following: (i) proprietary research on distressed debt, emerging growth equities and special situation securities, (ii) trading and other brokerage services to value-based institutional and retail investors active in fixed income and equity instruments, and (iii) corporate finance and strategic advisory services to middle-market companies within our target industries. To learn more about Tejas Incorporated or Tejas Securities, please visit their web sites at http://www.tejs.com/ or http://www.tejassec.com/.
Safe Harbor Statement
This press release contains forward looking statements within the meaning of federal securities laws. Actual results are subject to risks and uncertainties, including both those specific to the Company and those specific to the industry, which could cause results to differ materially from those contemplated. The risks and uncertainties include, but are not limited to, general economic conditions, actions of competitors, changes in legislation, and technology changes. Undue reliance should not be placed on the forward- looking statements, which speak only as of the date of this press release. Important factors that could cause actual results to differ materially from such forward-looking statements are described as "Risk Factors" in the Company's most recent Form 10-K and the Company's other SEC filings. The Company does not undertake any obligation to publicly update any forward- looking statements.
Earnings Conference Call:
A conference call has been scheduled to discuss fourth quarter and year end 2006 financial results for Wednesday, April 4, 2007 at 7:30am CDT.
You may access the webcast of our call by visiting the Tejas Incorporated website (http://www.tejs.com/). A direct link to the call will be found on the Tejas home page.
If you choose to participate via telephone, the dial-in number is 1-800- 374-0113 for domestic callers, and 1-706-758-9607 for international callers. Should you miss the call, you may access an archived copy at the Tejas Incorporated website (in the Investor Relations section), or via a replay at 1-800-642-1687- passcode 4223530 for domestic callers, or 1-706-645-9291- passcode 4223530 for international callers. The teleconference replay will be available for one week after the conference call.
TEJAS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
For the Three Months Ended For the Year Ended
December 31, December 31,
2006 2005 2006 2005
Revenue:
Commissions from
agency transactions $870,588 1,182,709 4,928,381 6,218,258
Commissions from
principal
transactions 1,936,716 1,681,981 10,263,826 10,921,230
Underwriting and
investment banking
income 559,025 544,796 1,914,720 16,436,706
Net dealer inventory
and investment income
(loss) 3,262,503 (3,787,906) 1,090,273 (5,800,745)
Other income 147,192 223,883 656,584 608,046
Total revenue 6,776,024 (154,537) 18,853,784 28,383,495
Expenses:
Commissions, employee
compensation
and benefits 4,783,226 3,325,142 18,782,596 22,756,977
Clearing and floor
brokerage 159,718 154,133 929,981 741,817
Communications and
occupancy 435,486 526,466 1,685,574 2,068,129
Professional fees 526,582 937,678 1,891,098 3,202,822
Interest 65,977 66,146 262,693 289,093
Other 936,312 707,692 3,703,014 5,318,668
Total expenses 6,907,301 5,717,257 27,254,956 34,377,506
Income (loss) before
income tax expense
(benefit) from
continued operations $(131,277) (5,871,794) (8,401,172) (5,994,011)
Income tax expense
(benefit) from
continued
operations 338,542 (2,106,515) (2,760,679) (2,171,990)
Net income (loss) from
continued operations $(469,819) (3,765,279) (5,640,493) (3,822,021)
Loss before income tax
expense (benefit) from
discontinued
operations $--- (1,273,371) (36,444,683) (931,322)
Income tax expense
(benefit) from
discontinued
operations $--- (443,634) 1,269,734 (269,424)
Net loss from
discontinued
operations available
to common
stockholders $--- (829,737) (37,714,417) (661,898)
Total net income (loss) $(469,819) (4,595,016) (43,354,910) (4,483,919)
Less:
Dividends on Series A
convertible preferred
stock (25,000) (25,000) (100,000) (26,370)
Net income (loss) from
continued operations
available to
common stockholders $(494,819) (3,790,279) (5,740,493) (3,848,391)
Total net income (loss)
available to common
stockholders $(494,819) (4,620,016) (43,454,910) (4,510,289)
Earnings (loss) from
continued operations
per share of
common stock:
Basic $(0.10) (0.48) (0.80) (0.63)
Diluted $(0.10) (0.48) (0.80) (0.63)
Earnings (loss) from
discontinued
operations per share
of
common stock:
Basic $--- (0.11) (5.25) (0.11)
Diluted $--- (0.11) (5.25) (0.11)
Total Earnings (loss)
per share of common
stock:
Basic $(0.10) (0.59) (6.05) (0.74)
Diluted $(0.10) (0.59) (6.05) (0.74)
Weighted average common
shares outstanding:
Basic 4,825,613 7,860,367 7,181,060 6,097,903
Diluted 4,825,613 7,860,367 7,181,060 6,097,903
Contact:
Craig Biddle
Investor Relations
