JERSEY CITY, N.J., Aug. 12 /PRNewswire-FirstCall/ -- Hudson Holding Corporation (BULLETIN BOARD: HDHL.OB-News) announced that it filed its results for the fiscal quarter ended June 30, 2008 with the Securities and Exchange Commission today.
Three Months Ended June 30, (unaudited) 2008 2007 Commissions and fees $4,245,453 $905,526 Trading gains, net 3,517,887 5,397,962 Interest and other income 300,353 121,913 Total revenues $8,063,693 $6,425,401 Net loss $(842,654) $(155,418) Basic and diluted EPS $(0.02) $ (0.00)
Total revenues increased 25% for the three months ended June 30, 2008, to approximately $8.1 million from $6.4 million during the same period in the prior fiscal year. Commission revenues increased 369% for the three months ended June 30, 2008, to approximately $4.2 million from $0.9 million during the same period in the prior fiscal year, primarily due to a significant expansion of our institutional sales effort. Net trading gains decreased 35% for the three months ended June 30, 2008, to approximately $3.5 million from $5.4 million during the same period in the prior fiscal year, due to a general decline in market activity associated with recent economic and market conditions. The net loss increased to approximately $0.8 million for the three months ended June 30, 2008, from a $0.2 million loss during the same period in the prior fiscal year. The results for the three months ended June 30, 2008 include approximately $1.0 million of pre-tax charges associated with the recruitment and retention of certain employees, directors and consultants, compared to a negligible amount for the same period in the prior year.
June 30, March 31, 2008 2008 (unaudited) Hudson Holding Corporation Stockholders' equity $15,619,443 $12,075,398 Total assets $21,671,478 $17,323,538 Hudson Securities, Inc. Net capital $7,177,095 $4,870,737 Excess net capital $6,177,095 $3,870,737
The Company previously announced that on June 20, 2008 it closed on a private placement of $4 million of securities, with net proceeds to Hudson of approximately $3.9 million after deducting offering costs. In connection with the financing, Hudson issued 8,000,000 shares of common stock plus a warrant to purchase an additional 4,000,000 shares of common stock anytime during the succeeding five years at a price of $0.75 per share. The Company intends to use the proceeds to further strengthen its balance sheet and regulatory capital, plus to facilitate incremental revenue generation, through the acquisition of complementary businesses and/or additional recruitment. See our Form 8-K filed on June 24, 2008 for additional details.
"We're pleased to have completed this private placement," said Marty Cunningham, Hudson's Chairman and Chief Executive Officer. "This reserve of capital will permit us to take advantage of strategic opportunities that may arise in this difficult market environment," Mr. Cunningham continued. "Our goal continues to be to grow revenues and eventually generate profits by reaching a certain critical mass and achieving economies of scale."
Hudson Holding Corporation is a holding company and is the parent of Hudson Securities, Inc. and Hudson Technologies Inc. Hudson Securities is a registered broker-dealer under the Securities Exchange Act of 1934, a member of the National Association of Securities Dealers, Inc. and. meets the liquidity needs of brokers, dealers, institutions, and asset managers, including by making markets in over 9,000 Nasdaq, non-Nasdaq OTC, listed and foreign securities, with particular expertise in trading mid cap, small cap, and micro cap stocks. Hudson Technologies provides technology services to Hudson Securities and client companies.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
Contacts: Martin C. Cunningham Keith R. Knox Chairman & CEO President 201-216-0100 201-216-0100 HUDSON HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended June 30, 2008 2007 Revenues: Commissions and fees $4,245,453 $905,526 Trading gains, net 3,517,887 5,397,962 Interest and other income 300,353 121,913 8,063,693 6,425,401 Expenses: Salaries and related costs (1) 2,161,560 1,130,459 Commissions, execution and clearing charges 4,461,577 3,286,916 Communications 1,371,365 1,235,172 Occupancy 277,257 366,461 Professional fees (2) 573,514 268,830 Business development 204,147 136,856 Other 340,140 196,016 9,389,560 6,620,710 Loss before income tax benefit (1,325,867) (195,309) Income tax benefit (483,213) (39,891) Net loss $(842,654) $(155,418) Loss per share - basic and diluted $(0.02) $(0.00) Weighted average number of shares outstanding - basic and diluted 37,942,768 36,725,185 Three Months Ended June 30, 2008 2007 (1) Includes the following amounts related to the recruitment and retention of employees: Stock-based compensation $261,037 $45,341 Recruitment incentives 583,375 - $844,412 $45,341 (2) Includes the following amounts related to the retention of directors and consultants: Stock-based compensation $166,292 $- $166,292 $0 HUDSON HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL CONDITION June 30, March 31, 2008 2008 (unaudited) ASSETS Cash and cash equivalents $5,086,709 $6,172,348 Cash - restricted 247,489 245,505 Receivable from clearing broker 5,600,584 2,475,575 Securities owned, at fair value 3,882,203 2,423,257 Income taxes receivable 419,040 419,041 Furniture, equipment, capitalized software and leasehold improvements, net 1,056,960 959,733 Deferred tax assets 1,224,000 705,000 Other assets 524,078 409,289 Prepaid compensation 2,519,236 2,402,611 Goodwill 1,111,179 1,111,179 $21,671,478 $17,323,538 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Securities sold, but not yet purchased, at fair value $3,291,282 $2,778,081 Commissions payable 1,046,186 1,070,511 Accrued expenses and other liabilities 1,714,567 1,399,548 Total liabilities 6,052,035 5,248,140 Commitments and contingencies Stockholders' equity: Preferred stock, $.001 par value; 1,000,000 shares authorized, none issued - - Common stock, $.001 par value; 100,000,000 shares authorized; 53,486,851 shares issued (includes 8,361,666 unvested restricted shares) and 45,125,185 shares outstanding at June 30, 2008, and 45,086,851 shares issued (includes 8,361,666 unvested restricted shares) and 36,725,185 shares outstanding at March 31, 2008 45,125 36,725 Additional paid-in capital 17,009,599 12,631,300 Accumulated deficit (1,435,281) (592,627) Total stockholders' equity 15,619,443 12,075,398 $21,671,478 $17,323,538
