RYE BROOK, N.Y., Feb. 12, 2002 (PRIMEZONE) -- Hoenig Group Inc. (Nasdaq:HOEN) today reported financial results for the fourth quarter and year ended December 31, 2001.
Three Months Ended December 31, 2001
Operating revenues for the three months ended December 31, 2001 increased 5.3% to $28.1 million, as compared to $26.7 million for the same period in 2000. Global brokerage revenues for the quarter increased 9.6% to $26.4 million from $24.1 million during the same period last year, based on a 6.0% increase in domestic brokerage revenues to $23.1 million from $21.8 million, and a 43.8% increase in international brokerage revenues to $3.2 million from $2.3 million, for the same period in 2000. Investment management fees decreased 33.7% in the fourth quarter 2001 to $1.8 million, as compared to $2.7 million for the same period in 2000.
The Company also announced today, that it has signed agreements to sell its remaining asset management operations. These sales are expected to close, subject to the receipt of client consents and satisfaction of customary closing conditions, by April 30, 2002.
Operating income for the fourth quarter 2001 decreased 12.4% to $2.8 million from $3.2 million during the same period in 2000. This decline resulted primarily from a 34.2% decrease in the operating income of the Company's asset management operations. In addition, global brokerage operating income decreased 9.3% to $3.5 million from $3.9 million in the fourth quarter 2000, as a result of a 20.9% decrease in the operating income of the domestic brokerage operations, partially offset by the international brokerage operations, which earned $0.05 million of operating income in the fourth quarter 2001, as compared to an operating loss of $0.5 million in the fourth quarter 2000.
Net investment income and other was $1.0 million for the fourth quarter 2001, as compared to $0.2 million during the same period in 2000. Net investment income for the fourth quarter 2001 includes investment income of $0.6 million relating to the Company's ownership of publicly traded shares of the Hong Kong Exchanges and Clearing Limited and of the London Stock Exchange. Investment income and other for the fourth quarter 2000 includes a $0.9 million investment loss on the Hong Kong and London shares.
Net income for the fourth quarter 2001 increased 26.5% to $2.5 million from $2.0 million during the same period in 2000.
The Company's basic earnings per share for the fourth quarter ended December 31, 2001 increased to $0.32, as compared to $0.25 for the same period in 2000. Diluted earnings per share increased to $0.28 in the fourth quarter 2001, as compared to $0.22 in the fourth quarter 2000.
Year Ended December 31, 2001
Operating revenues for the year ended December 31, 2001 increased 1.5% to $101.6 million from $100.1 million for the same period in 2000. Global brokerage revenues increased 6.7% to $94.0 million in 2001 from $88.1 million in 2000. The Company's domestic brokerage revenues increased 10.1% to $82.8 million in 2001, as compared to $75.2 million in 2000. This increase was partially offset by a 13.5% decrease in international brokerage revenues from $13.0 million to $11.2 million. Investment management fees for the year ended December 31, 2001 decreased 36.9% to $7.6 million, as compared to $12.0 million in 2000.
Operating income for the year ended December 31, 2001 decreased 20.2% to $7.9 million, as compared to $9.9 million during 2000. Operating income for the year ended December 31, 2000 includes a $1.0 million one-time charge related to the closing of the Company's Tokyo brokerage office in June 2000. The decrease in operating income for the year ended December 31, 2001 is primarily attributable to a 55.2% decline in operating income from the Company's asset management operations. In addition, global brokerage operating income remained at $10.1 million in both 2001 and 2000, based upon a 4.2% decrease in the operating income of the Company's domestic brokerage operations, offset by a 39.2% lower operating loss in international brokerage operations.
The Company had a net investment loss of $5.0 million for the year ended December 31, 2001, as compared to net investment income of $7.8 million in 2000, due to the first quarter 2001 pre-tax write-off of $9.3 million relating to the Company's investment in InstiPro Group, Inc. and decreased investment income from the Hong Kong and London shares. Net investment income before the write-off was $4.3 million for the year ended December 31, 2001. Net investment income related to the Company's Hong Kong and London shares decreased to $1.9 million for the year ended December 31, 2001, from $4.6 million in 2000.
Net income for the year ended December 31, 2001 decreased 83.2% to $1.9 million, as compared to net income of $11.4 million in 2000, due to the $5.6 million after tax write-off of the InstiPro Group investment in the first quarter 2001, decreased investment income from the Hong Kong and London shares, and decreased operating income. Net income for the year ended December 31, 2001 before the InstiPro Group write-off was $7.5 million.
The Company's basic earnings per share for the year ended December 31, 2001 decreased to $0.24 from $1.41 in 2000, and diluted earnings per share decreased to $0.22 from $1.26 in 2000. Excluding the first quarter 2001 InstiPro Group write-off, the Company's basic earnings per share was $0.95, and the diluted earnings per share was $0.84, for the year ended December 31, 2001.
At December 31, 2001, the Company had cash, U.S. government obligations, net accounts receivables and other investments of $63.9 million, as compared to $61.1 million as of December 31, 2000.
For over 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., the remainder of which is in the process of being sold, 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 Three
Months Ended December 31,
--------------------------
2001 2000
---- ----
Operating Revenues $28,107,528 $26,701,754
Operating Income 2,773,878 3,166,018
Net Investment Income and
other(1) 989,275 195,649
Income Before Income Taxes 3,763,153 3,361,667
Net Income 2,477,356 1,959,859
Earnings Per Share
Basic 0.32 0.25
Diluted 0.28 0.22
Weighted average shares -
Basic 7,858,405 7,981,966
Weighted average shares -
Diluted 8,812,811 9,009,676
1. For the three months ended December 31, 2001, includes investment
income of $0.6 million related to the ownership of publicly
traded shares of the Hong Kong Exchanges and Clearing Limited and
of the London Stock Exchange. For the three months ended December
31, 2000, includes investment loss of $0.9 million related to the
Hong Kong and London shares.
Financial Data Year
Ended December 31,
-------------------
2001
2001 Adjusted(1) 2000
---- -------- ----
Operating Revenues $101,562,365 $101,562,365 $100,111,284
Operating Income 7,865,013 7,865,013 9,858,047(2)
Net Investment (Loss)
Income and Other(3) (4,955,543) 4,336,865 7,817,561
Income before Income
Taxes 2,909,470 12,201,877 17,675,608
Net Income 1,916,979 7,512,488 11,430,155
Earnings Per Share
Basic 0.24 0.95 1.41
Diluted 0.22 0.84 1.26
Weighted average
shares - Basic 7,873,253 7,873,253 8,096,469
Weighted average
shares - Diluted 8,894,984 8,894,984 9,036,827
1. Represents financial results for the year ended December 31, 2001,
excluding the $9.3 million ($5.6 million after tax) impairment
write-off of the Company's investment in InstiPro Group, Inc.
2. Included in the financial results for the year ended December 31,
2000 is a $1.0 million ($0.6 million after tax) one-time charge
related to the closing of the Company's Tokyo brokerage office.
3. For the year ended December 31, 2001, includes investment income
of $1.9 million related to the Hong Kong and London shares. For
the year ended December 31, 2000, includes investment income of
$4.6 million related to the Hong Kong and London shares.