RYE BROOK, N.Y., July 25, 2000 (PRIMEZONE) -- Hoenig Group Inc. (Nasdaq:HOEN) today reported record earnings per share for the three- and six-month periods ended June 30, 2000. Diluted earnings per share increased 35% to $0.27 for the three months and increased 39% to $0.46 for the six months.
Three Months Ended June 30, 2000
Net income for the quarter increased 28% to $ 2.4 million from $1.9 million during the same period in 1999. Included in net income is a special charge of $0.6 million related to the closing of the Company's Tokyo brokerage office and investment income of $0.8 million related to the market value of shares of the Hong Kong Exchanges and Clearing Limited which the Company received in June 2000 in connection with its ownership of its seat on The Stock Exchange of Hong Kong. Net income before the special charge and excluding the value of the Hong Kong Exchanges shares was $2.1 million, representing a 15% increase over net income in the second quarter 1999.
Basic earnings per share for the three months ended June 30, 2000 increased 32% to $0.29, as compared to $0.22 for the same period in 1999. Diluted earnings per share increased 35% to $0.27, as compared to $0.20 in the second quarter 1999. Before adjusting for the special charge and the value of the Hong Kong Exchanges shares, basic and diluted earnings per share were $0.26 and $0.24, respectively.
Operating revenues for the second quarter ended June 30, 2000 were $24.3 million, as compared to $24.4 million for the same period in 1999. Commission revenues decreased 6% to $21.0 million from $22.4 million in the second quarter 1999, and investment management fees increased 59% to $3.2 million from $2.0 million for the same period in 1999.
Operating income, before the special charge of $1.0 million ($0.6 million after tax) related to the closing of the Company's Tokyo brokerage office at the end of June 2000, increased 15% to $3.0 million from the comparable period in 1999. Including the special charge, operating income for the second quarter decreased 24% to $2.0 million from $2.6 million in the second quarter 1999.
Net investment income was $1.5 million in the second quarter, as compared to $0.6 million during the same period in 1999. Net investment income includes $0.8 million related to the Hong Kong Exchanges shares which represents the appreciation of market value of such shares owned as of June 30, 2000 and the realized gain on any such shares sold during the quarter. As of June 30, 2000, the Company owned 679,000 Hong Kong Exchanges shares. In July 2000, the Company also received 100,000 shares of the London Stock Exchange in connection with its ownership of a seat on the London Stock Exchange. These shares began trading on July 24, 2000. The Company values the Hong Kong Exchanges shares and the London Stock Exchange shares at market.
Six Months Ended June 30, 2000
Net income for the six months ended June 30, 2000 increased 36% to $4.2 million from $3.1 million during the same period in 1999. Net income before the special charge and excluding the value of the Hong Kong Exchanges shares was $4.0 million, representing a 28% increase over net income for the same period in 1999.
For the six months, basic earnings per share increased 42% to $0.51, as compared to $0.36 for the same period in 1999. Diluted earnings per share increased 39% to $0.46, as compared to $0.33 for the same period in 1999. Before adjusting for the special charge and the value of the Hong Kong Exchanges shares, basic and diluted earnings per share were $0.48 and $0.44, respectively.
Operating revenues for the six months ended June 30, 2000 increased 13% to $50.9 million, as compared to $45.1 million for the same period in 1999. Commission revenues increased 8% to $44.4 million from $41.1 million during the first six months in 1999. Investment management fees increased 59% to $6.3 million for the six months ended June 30, 2000, as compared to $3.9 million for the same period in 1999.
Operating income before the special charge increased 33% to $5.6 million. Including the special charge, operating income for the six months ended June 30, 2000 increased 9% to $4.5 million from $4.2 million in the six months ended June 30, 1999.
Net investment income was $2.0 million in the six months ended June 30, 2000, as compared to $1.3 million during the same period in 1999. Net investment income includes $0.8 million related to the Hong Kong Exchanges shares.
At June 30, 2000, the Company had cash, U.S. government obligations, net accounts receivable and other investments of $51.0 million, as compared to $54.8 million as of December 31, 1999, and $51.4 million as of June 30, 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 Three Months Ended June 30,
2000 2000* 1999
---- ----- ----
Operating Revenues $24,265,682 $24,265,682 $24,430,177
Operating Income 1,989,346 3,006,337 2,621,738
Net Investment Income
and Other 1,464,857 627,715 582,525
Income Before
Income Taxes 3,454,203 3,634,052 3,204,263
Net Income 2,400,602 2,149,246 1,870,412
Earnings Per Share
Basic .29 .26 .22
Diluted .27 .24 .20
Weighted average
shares - Basic 8,166,039 8,166,039 8,566,919
Weighted average
shares - Diluted 9,027,982 9,027,982 9,485,484
Financial Data Six Months Ended June 30,
2000 2000* 1999
---- ----- ----
Operating Revenues $50,880,226 $50,880,226 $45,050,890
Operating Income 4,538,094 5,555,085 4,180,026
Net Investment Income
and Other 2,028,282 1,191,140 1,279,507
Income Before
Income Taxes 6,566,376 6,746,225 5,459,533
Net Income 4,204,775 3,953,419 3,087,994
Earnings Per Share
Basic .51 .48 .36
Diluted .46 .44 .33
Weighted average
shares - Basic 8,170,290 8,170,290 8,601,464
Weighted average
shares - Diluted 9,050,168 9,050,168 9,433,981
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-- Financial data before adjusting for special charge and value of
Hong Kong shares