National Holdings Corporation (NHLD)

[glass99]

1Q2015 Conference call question on credibility.

Question:
I know that management values credibility, and in fact, Mr. Fagenson, you said on the last conference call that the up-listing to the National Exchange will give the Company greater exposure and greater credibility, and given during this conference call you’ve also given us some guidance as to when you’d expect the commissions to recover, perhaps, in the second half,I have to wonder why on your January 12th conference call management did not disclose negative impact to its first quarter revenues from its suspension, which occurred in November, of the issuers alternative product?

Robert Fagenson Answer:
On the credibility issue, the Company has not heretofore issued guidance, and we have in the recent weeks decided that when information such as that becomes more currently available, that we’re going to try and provide that type of information to the street which we’ve never done before on a selective basis. So, insofar as being able to give you exact guidance, because of the lag in reporting what we have in terms of internal accounting, I don't think we appreciated until past that point, the severity of the impact on the bottom line because revenues remained relatively constant.

What I learned in my short period here at National is that a dollar is not a dollar here, that a dollar derived from one source is vastly different to the bottom line than it may be at the top line, and I certainly think in terms of sensitivity that what we see in trends like that in the future, that we will want to reach out to the investment community when we see something unexpected like this which we hadn't faced before. Where we are able to maintain -- don't forget brokers in our network are very, very successful at maintaining the level of sales, and the level of activity within their books, finding other sources of investments for their clients.

The impact on us however, as shareholders of National, becomes more severe when the business mix changes the way it did. So I don't think it's in any way will off the mark for you to question that, and we're certainly going to make an attempt to be more sensitive to that in the future, as I say, it is not something we've faced in the past, and to be perfectly frank, my time here at National has being accompanied only by things getting better and going up. Call it a slap in the face, but whatever it is, we appreciate and accept that criticism, and we'll try and do better with that in the future.





http://seekingalpha.com/article/2942446-national-holdings-nhld-ceo-robert-fagenson-on-q1-2015-results-earnings-call-transcript