RYE BROOK, N.Y., Oct. 18, 2000 (PRIMEZONE) -- Hoenig Group Inc. (Nasdaq:HOEN) today reported financial results for the three- and nine-month periods ended September 30, 2000.
Three Months Ended September 30, 2000
Net income for the quarter increased 243.3% to $5.3 million from $1.5 million in the same period in 1999. Net income includes investment income of $3.4 million related to the ownership of shares of the Hong Kong Exchange and Clearing Limited (the Hong Kong shares) and of the London Stock Exchange (the London shares) which the Company received in connection with its ownership of seats on these exchanges. Net income excluding the appreciation of the market value of, and realized gains on, the Hong Kong and London shares was $1.9 million, representing a 23.6% increase from the third quarter 1999.
Basic earnings per share for the three months ended September 30, 2000 increased 261.1% to $0.65, as compared to $0.18 for the same period in 1999. Diluted earnings per share increased 262.5% to $0.58, as compared to $0.16 in the third quarter 1999. Basic and diluted earnings per share excluding the value of the Hong Kong and London shares were $0.24 and $0.21, respectively.
Operating revenues for the third quarter ended September 30, 2000 increased to $22.5 million, as compared to $21.8 million for the same period in 1999. Commission revenues decreased to $19.4 million from $19.8 million in the third quarter 1999. Investment management fees increased 49.2% to $3.0 million for the three months ended September 30, 2000, as compared to $2.0 million for the same period in 1999.
Operating income for the third quarter was $2.2 million in both 2000 and 1999. Net investment income was $5.6 million in the third quarter 2000, as compared to $0.3 million during the same period in 1999. Net investment income includes $4.7 million, which represents the appreciation of market value of the Hong Kong and London shares and the realized gains on any such shares sold during the quarter ended September 30, 2000. The Company values the Hong Kong and London shares at market.
Nine Months Ended September 30, 2000
Net income for the nine months ended September 30, 2000 increased 104.9% to $9.5 million from $4.6 million in the same period in 1999. Included in net income was a special charge of $0.6 million (after tax) related to the closing of the Company's Tokyo brokerage office in June 2000, and investment income of $4.2 million (after tax) related to the value of the Hong Kong and London shares. Net income before the special charge and excluding the value of the Hong Kong and London shares was $5.8 million, representing a 26.6% increase from the comparable 1999 period.
Basic earnings per share for the nine months ended September 30, 2000 increased 114.8% to $1.16, as compared to $0.54 for the same period in 1999. Diluted earnings per share increased 114.3% to $1.05, as compared to $0.49 in the same period in 1999. Basic and diluted earnings per share before the special charge and excluding the value of the Hong Kong and London shares were $0.72 and $0.65, respectively.
Operating revenues for the nine months ended September 30, 2000 increased 9.8% to $73.4 million, as compared to $66.9 million for the same period in 1999. Commission revenues increased 4.8% to $63.8 million from $60.9 million in the nine months ended September 30, 2000. Investment management fees increased 56.3% to $9.3 million for the nine months ended September 30, 2000, as compared to $6.0 million for the same period in 1999.
Operating income for the nine months ended September 30, 2000 increased 4.3% to $6.7 million, from $6.4 million in the nine months ended 1999. Operating income before the special charge ($1.0 million) was $7.7 million.
Net investment income increased to $7.6 million in the nine months ended September 30, 2000, as compared to $1.6 million during the same period in 1999. Net investment income includes $5.5 million related to the value of the Hong Kong and London shares.
At September 30, 2000, the Company had cash, U.S. government obligations, net accounts receivables and other investments of $58.1 million, as compared to $54.8 million as of December 31, 1999, and $55.3 million as of September 30, 1999.
Hoenig Group Inc. provides global securities brokerage to institutional clients through its wholly-owned subsidiaries in the United States, United Kingdom, and Hong Kong. Hoenig Group Inc.'s wholly-owned subsidiary, Axe-Houghton Associates, Inc., provides professional investment management to public and corporate employee benefit plans, investment partnerships and other institutional clients.
Financial Data Three Months Ended September 30,
2000 2000(a) 1999
---- ---- ----
Operating Revenues $22,529,304 $22,529,304 $21,823,039
Operating Income 2,153,935 2,153,935 2,235,798
Net Investment Income
and other 5,593,630 898,172 345,656
Income before
Income Taxes 7,747,565 3,052,107 2,581,454
Net Income 5,266,521 1,896,458 1,534,308
Earnings Per Share
Basic .65 .24 .18
Diluted .58 .21 .16
Weighted average
shares - Basic 8,064,935 8,064,935 8,611,783
Weighted average
shares - Diluted 9,039,975 9,039,975 9,640,786
Financial Data Nine Months Ended September 30,
2000 2000(a) 1999
---- ---- ----
Operating Revenues $73,409,530 $73,409,530 $66,873,929
Operating Income 6,692,029 7,709,020 6,415,824
Net Investment Income
and other 7,621,912 2,089,311 1,625,163
Income before
Income Taxes 14,313,941 9,798,331 8,040,987
Net Income 9,471,296 5,849,877 4,622,302
Earnings Per Share
Basic 1.16 .72 .54
Diluted 1.05 .65 .49
Weighted average
shares - Basic 8,134,915 8,134,915 8,604,941
Weighted average
shares - Diluted 9,045,059 9,045,059 9,508,886
(a) Financial data before adjusting for the special charge relating
to the June 2000 closing of the Tokyo office and the value of
Hong Kong and London shares
This press release contains forward-looking statements that relate to future plans, events and performance. These forward-looking statements involve risks and uncertainties. These risks and uncertainties are set forth in the Company's periodic reports and other filings with the Securities and Exchange Commission. Forward-looking statements reflect the Company's current views with respect to future events. Actual events and results may vary materially and adversely from those anticipated, believed, estimated or otherwise indicated.