JERSEY CITY, N.J., June 26 /PRNewswire-FirstCall/ -- Hudson Holding Corporation (BULLETIN BOARD: HDHL.OB) announced that it filed its results for the year ended March 31, 2009 with the Securities and Exchange Commission today.
"We're pleased with the steady annual revenue growth that Hudson achieved despite a disappointing fourth quarter, which saw a decline in revenues, due to overall market conditions," said Marty Cunningham, Hudson's Chairman and Chief Executive Officer. "While the market environment is difficult," Mr. Cunningham continued "we're fortunate to be seeing more opportunities to add seasoned producers and/or complementary business lines. Our loss is largely driven by recruitment and retention costs due to expansion."
Years Ended March 31, 2009 2008 Sales and trading $ 23,285,148 $ 15,541,702 Commissions and fees 13,735,660 10,070,068 Interest and other income 951,703 1,157,073 Total revenues $ 37,972,511 $ 26,768,843 Net loss $ (3,611,999) $ (1,602,290) Basic and diluted EPS $ (0.08) $ (0.04)
Total revenues increased 42% for the year ended March 31, 2009, to approximately $38 million from $26.8 million during the same period in the prior fiscal year. Sales and trading revenues increased to approximately $23.3 million from approximately $15.5 million during the prior fiscal year, due to the addition of sales traders and a significant customer which comprised 18% of total revenues during fiscal 2009. Commissions and fee revenues increased to $13.7 million from $10.1 million during the prior fiscal year, due to an expansion of our institutional sales effort. Interest and other income decreased to $1.0 million from $1.2 million during fiscal 2009, primarily due to a decrease in introductory brokerage services revenues.
The pre-tax loss was $4.3 million as compared to a $2.6 million pre-tax loss during the prior year, as expenses increased by $12.9 million, primarily as a result of a $7.8 million increase in variable costs (commissions, execution, and clearing costs) and a $3.3 million increase in salaries and related costs, due to an increase in recruitment and retention costs. Recruitment and retention costs (stock-based compensation and other recruiting incentives) increased to approximately $3.7 million during fiscal 2009, from $1.0 million during the prior fiscal year, primarily due to costs associated with hiring additional sales traders. Income taxes were a benefit of $0.7 million as compared to a benefit of $1.0 million during the prior year, which included a current year increase in the deferred tax valuation allowance. The net loss increased to approximately $3.6 million during fiscal 2009, from net loss of $1.6 million during the prior fiscal year.
March 31, March 31, 2009 2008 Hudson Holding Corporation Stockholders' equity $13,637,690 $12,075,398 Total assets $17,106,940 $17,323,538 Hudson Securities, Inc. Net capital $6,109,286 $4,870,737 Excess net capital $5,109,286 $3,870,737
Hudson Holding Corporation is a publicly traded company on the OTC Bulletin Board under the symbol "HDHL" and is the parent of Hudson Securities, Inc. and Hudson Technologies, Inc. Hudson Securities, Inc. is dedicated to meeting the liquidity needs of its clients -- institutions, hedge funds, asset managers, and broker dealers -- by providing execution solutions and making markets in over 15,000 U.S. and foreign securities and ADRs. As a registered broker-dealer under the Securities Exchange Act of 1934, Hudson Securities is a member of the Financial Industry Regulatory Authority ("FINRA") and has been in business since 1984. 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.
HUDSON HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended March 31, 2009 2008 Revenues: Sales and trading $23,285,148 $15,541,702 Commissions and fees 13,735,660 10,070,068 Net interest and other income 951,703 1,157,073 37,972,511 26,768,843 Expenses: Salaries and related costs 8,590,451 5,266,839 Commissions, execution and clearing charges 22,598,246 14,781,058 Communications 5,820,328 5,012,413 Occupancy 1,200,317 1,388,005 Professional fees 1,696,264 1,063,603 Business development 845,623 773,788 Other 1,496,319 1,055,706 42,247,548 29,341,412 Loss before income tax benefit (4,275,037) (2,572,569) Income tax benefit (663,038) (970,279) Net loss $(3,611,999) $(1,602,290) Loss per share - basic and diluted $(0.08) $(0.04) Weighted average number of shares outstanding - basic and diluted 43,939,810 36,725,185 HUDSON HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION As of March 31, 2009 2008 ASSETS Cash and cash equivalents $ 6,694,914 $ 6,172,348 Cash - restricted 252,408 245,505 Receivable from clearing brokers 1,294,689 2,475,575 Securities owned, at fair value 2,246,488 2,423,257 Income taxes receivable 75,040 419,041 Furniture, equipment, capitalized software and leasehold improvements, net 1,182,028 959,733 Deferred tax assets 1,515,000 705,000 Prepaid expenses and other assets 866,027 409,289 Prepaid compensation, net 1,869,167 2,402,611 Goodwill 1,111,179 1,111,179 $17,106,940 $17,323,538 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable, accrued expenses and other liabilities $ 1,461,774 $ 1,374,548 Commissions payable 1,259,987 1,070,511 Securities sold, but not yet purchased, at fair value 637,829 2,778,081 Income taxes payable 60,827 25,000 Payable to clearing brokers 48,833 - Total liabilities 3,469,250 5,248,140 Commitments and contingencies Stockholders' equity: Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued - - Common stock, $0.001 par value; 200,000,000 shares authorized; 47,794,537 shares issued and outstanding at March 31, 2009 and 36,725,185 shares issued and outstanding at March 31, 2008 47,795 36,725 Additional paid-in capital 17,794,521 12,631,300 Accumulated deficit (4,204,626) (592,627) Total stockholders' equity 13,637,690 12,075,398 $17,106,940 $17,323,538 Contacts: Martin C. Cunningham Keith R. Knox Chairman & CEO President 201-216-0100 201-216-0100
Hudson Holding Corporation
CONTACT: Martin C. Cunningham, Chairman & CEO, or Keith R. Knox,
President, both of Hudson Holding Corporation +1-201-216-0100
Web Site: http://www.hudsonsecurities.com/
