RYE BOOK, N.Y., Aug. 14, 2002 (PRIMEZONE) -- Hoenig Group Inc. (Nasdaq:HOEN) announced today that it has filed its Form 10-Q for the second quarter ended June 30, 2002, reporting a net loss per share, basic and diluted, of $0.71 for second quarter ended June 30, 2002, and a net loss per share, basic and diluted, of $0.25 for the six months ended June 30, 2002. These results differ from the financial results announced by the Company on July 16, 2002 in that they include $1.2 million in professional fees and expenses ($0.7 million after taxes) incurred by the Company through June 30, 2002 in connection with the sale of the Company to Investment Technology Group, Inc. ("ITG"). The Company's stockholders are voting on the proposed merger with ITG at a Special Meeting of Stockholders being held on August 26, 2002. The merger is expected to be completed by the end of the third quarter 2002, subject to the approval of stockholders and regulatory authorities and satisfaction of customary closing conditions.
The financial data for the three-and six-month periods ended June 30, 2002, as reflected in the Company's Form 10-Q, is set forth in the tables below:
Financial Data Three Months Ended June 30,
2002(1) 2001
------------ ------------
Operating Revenues from
Continuing Operations $ 25,551,798 $ 23,488,283
Operating (Loss) Income from
Continuing Operations (8,158,360) 1,616,532
Net Investment Income and Other
from Continuing Operations 295,884 1,306,648
(Loss) Income Before Income
Taxes from Continuing Operations (7,862,476) 2,923,180
Net (Loss) Income from Continuing
Operations (6,895,303) 1,792,385
Net Income from Discontinued
Operations 1,236,757 357,527
Net (Loss) Income $ (5,658,546) $ 2,149,912
Net (Loss) Income Per Share
Basic
(Loss) Income from Continuing
Operations (0.87) 0.23
Income from Discontinued
Operations 0.16 0.04
------------ ------------
Net (Loss) Income Per Share Basic (0.71) 0.27
============ ============
Diluted
(Loss) Income from Continuing
Operations (0.87) 0.20
Income from Discontinued Operations 0.16 0.04
------------ ------------
Net (Loss) Income Per Share Diluted (0.71) 0.24
============ ============
Weighted Average Shares - Basic 7,945,603 7,903,829
Weighted Average Shares - Diluted 7,945,603 8,958,772
(1) Financial data for the three months ended June 30, 2002,
excluding the previously announced $7.1 million loss incurred by
the Company's United Kingdom brokerage subsidiary plus $0.6
million of related expenses ($6.7 million net of tax), would be
as follows: operating loss from continuing operations of
$466,614, loss from continuing operations before income taxes of
$170,730, net loss from continuing operations of $205,568.
Financial Data Six Months Ended June 30,
2002(1) 2001(2)
------------ ------------
Operating Revenues from Continuing
Operations $ 50,547,266 $ 45,927,406
Operating (Loss) Income from
Continuing Operations (6,999,709) 2,763,168
Net Investment Income (Loss) and Other
from Continuing Operations 509,200 (6,350,887)
(Loss) Before Income Taxes from
Continuing Operations (6,490,509) (3,587,719)
Net (Loss) from Continuing
Operations (6,053,732) (1,993,771)
Net Income from Discontinued
Operations 4,081,183 672,454
Net (Loss) $ (1,972,549) $ (1,321,317)
Net (Loss) Income Per Share
Basic and Diluted
(Loss) from Continuing Operations (0.76) (0.25)
Income from Discontinued Operations 0.51 0.08
------------ ------------
Net (Loss) Per Share Basic (0.25) (0.17)
============ ============
Weighted Average Shares -
Basic & Diluted 7,925,055 7,905,304
(1) Financial data for the six months ended June 30, 2002, excluding
the previously announced $7.1 loss incurred by the Company's
United Kingdom brokerage subsidiary plus $0.6 million of related
expenses ($6.7 million net of tax), would be as follows:
operating income from continuing operations of $692,037, income
from continuing operations before income taxes of $1,201,237,
net income from continuing operations of $636,003, basic
earnings per share from continuing operations of $0.08, and
diluted earnings per share from continuing operations of $0.07.
(2) Financial data for the six months ended June 30, 2001, excluding
the $9.2 million ($5.5 million net of tax) impairment write-off
of the Company's investment in InstiPro Group, Inc., would be as
follows: net investment income and other from continuing
operations of $2,941,520, income from continuing operations
before income taxes of $5,704,688, net income from continuing
operations of $3,486,229, basic earnings per share from
continuing operations of $0.44, and diluted earnings per share
from continuing operations of $0.39.
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. For additional information about Hoenig Group, visit www.hoeniggroup.com.
This press release contains forward-looking statements that relate to future plans, events and performance. These forward-looking statements involve risks and uncertainties, including the risk that conditions to the closing of the ITG transaction described herein will not be satisfied and the sale will not be complete and the risk that the Company will not recover on any claims filed with its insurers. These risks and uncertainties are in addition to those 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.