RYE BROOK, N.Y., Feb. 9, 2001 (PRIMEZONE) -- Hoenig Group Inc., (Nasdaq:HOEN) today reported strong financial results for the fourth quarter and year ended December 31, 2000, including record revenues and earnings for the year.
Year Ended December 31, 2000
Basic earnings per share for the year 2000 increased 91% to $1.41, as compared to $0.74 for 1999. Diluted earnings per share increased 88% to $1.26, as compared to $0.67 in 1999. Net income for the year ended December 31, 2000 increased 79% to a record $11.4 million from $6.4 million in 1999.
Included in net income for the year 2000 is a special charge of $0.6 million (after taxes) related to the closing of the Company's Tokyo brokerage office in June 2000 and investment income of $3.7 million (after taxes) related to the value of shares of the Hong Kong Exchange and Clearing Limited (the Hong Kong Shares) and the London Stock Exchange (the London Shares). The Company received these shares during the second and third quarter 2000 in connection with the Company's ownership of seats on these exchanges. The Company values the Hong Kong and London Shares at market.
Net income before the special charge and excluding the value of the Hong Kong and London Shares was $8.4 million, representing a 31% increase from 1999. Basic and diluted earnings per share for 2000 before the special charge and excluding the value of the Hong Kong and London Shares were $1.03 and $0.93, respectively, as compared to $0.74 and $0.67 in 1999.
Operating revenues for the year ended December 31, 2000 increased 9% to a record $100.1 million, as compared to $91.8 million in 1999. Commission revenues increased 5% to $87.7 million from $83.4 million in 1999. Investment management fees increased 44% to $12.0 million in 2000, as compared to $8.3 million in 1999.
Operating income in 2000 increased 13% to $9.9 million from $8.7 million in 1999. Operating income before the special charge ($1.0 million before taxes) increased 25% to $10.9 million.
Net investment income increased to $7.8 million in 2000, as compared to $2.3 million in 1999. Net investment income includes $4.6 million (before taxes) related to the value of the Hong Kong and London Shares.
Three Months Ended December 31, 2000
Net income for the fourth quarter increased 12% to $2.0 million from $1.8 million during the same period in 1999, notwithstanding net investment losses of $0.6 million (after taxes) on the Hong Kong and London Shares. Net income excluding these losses was $2.5 million, which represents a 43% increase from the fourth quarter 1999.
Basic earnings per share for the quarter ended December 31, 2000 increased 19% to $0.25, as compared to $0.21 for the same period in 1999. Diluted earnings per share increased 22% to $0.22, as compared to $0.18 in the fourth quarter 1999. Basic and diluted earnings per share, excluding investment losses on the Hong Kong and London Shares, were $0.32 and $0.28, respectively.
Operating revenues for the fourth quarter ended December 31, 2000 increased 7% to $26.7 million, as compared to $24.9 million for the same period in 1999. Commission revenues increased 6% to $23.9 million from $22.5 million, and investment management fees increased 12% to $2.7 million, as compared to $2.4 million for the same period in 1999.
Operating income for the fourth quarter 2000 increased 37% to $3.2 million from $2.3 million for the same period in 1999. Net investment income in the fourth quarter decreased to $0.2 million from $0.7 million during the same period in 1999, primarily due to net investment losses of $0.9 million on the Hong Kong and London Shares.
At December 31, 2000, the Company had cash, U.S. government obligations, net accounts receivables and other investments of $61.1 million, as compared to $54.8 million as of December 31, 1999.
For thirty years, Hoenig Group Inc. has provided high quality trade execution, independent research and premier client service to professional money managers and alternative investment funds throughout the world. Hoenig Group Inc. operates through its brokerage subsidiaries in the United States, United Kingdom and Hong Kong. Hoenig Group's U.S. asset management subsidiary, Axe-Houghton Associates, Inc., provides investment management services to public and corporate employee benefit plans, investment partnerships and other institutional investors.
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.
Financial Data Year Ended December 31,
2000 2000* 1999
Operating Revenues 100,111,284 100,111,284 91,786,053
Operating Income 9,858,047 10,871,566 8,732,502
Net Investment Income
and other 7,817,561 3,171,134 2,296,146
Income before
Income Taxes 17,675,608 14,042,700 11,028,648
Net Income 11,430,155 8,367,263 6,377,320
Earnings Per Share
Basic 1.41 1.03 74
Diluted 1.26 .93 .67
Weighted average
shares - Basic 8,096,469 8,096,469 8,570,396
Weighted average
shares - Diluted 9,036,827 9,036,827 9,495,464
Financial Data Three Months Ended December 31,
2000 2000* 1999
Operating Revenues 26,701,754 26,701,754 24,912,124
Operating Income 3,166,018 3,162,546 2,316,678
Net Investment
Income and other 195,649 1,081,823 670,983
Income before Income Taxes 3,361,667 4,244,369 2,987,661
Net Income 1,958,859 2,517,386 1,755,018
Earnings Per Share
Basic .25 .32 .21
Diluted .22 .28 .18
Weighted average
shares - Basic 7,981,966 7,981,966 8,470,031
Weighted average
shares - Diluted 9,009,676 9,009,676 9,498,412
* 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 Share