Northern Financial Corporation

[kraftdinner]

Northern Financial cuts Q3 loss to $113,302


2006-02-03 07:43 MT - News Release

Ms. Ann Krallisch reports

NORTHERN FINANCIAL REPORTS THIRD QUARTER OF FISCAL 2006 RESULTS

Northern Financial Corp. has released results for its third quarter ended Dec. 31, 2005, of its 2006 fiscal year. Revenue in the third quarter of fiscal 2006 was $4,478,293, a modest increase compared with $4,463,719 in the third quarter of fiscal 2005. The company's net loss in the third quarter of fiscal 2006 was $113,302, a substantial improvement compared with a net loss of $835,813 in the third quarter of fiscal 2005.

In the third quarter of fiscal 2006, the company reported underwriting and advisory revenue of $1,524,425, representing a 34-per-cent decrease from underwriting and advisory revenue of $2,293,258 in the third quarter of the previous year. The company reported commission revenue of $1,383,427 in the third quarter of fiscal 2006, an increase of 16 per cent compared with commission revenue of $1,193,256 in the third quarter of the previous year. The company reported net trading revenue of $1,238,046, an improvement of approximately 100 per cent over net trading revenue of $621,010 in the third quarter of the previous year.

As at Dec. 31, 2005, the company had cash, deposits and securities (including long-term investments in publicly listed securities) of $13,870,240 compared with $12,134,272 as at Dec. 31, 2004.

Revenue for the nine-month period in the current fiscal year was $13,388,977, compared with revenue of $9,047,386 for the nine-month period in the prior year. The company's net loss in the nine-month period in the 2006 fiscal year was $392,980, compared with a net loss of $3,543,173 in the same period in the previous year.

"We experienced solid private client commission growth in the quarter which we attribute to the expansion of our private client group under the leadership of George Garner. Our strategy is to continue to expand this side of our business and we are very pleased with the pace and quality of new hires to date," commented Vic Alboini, chairman and chief executive officer. "Our Capital Markets platform also continues to improve. Our goal is to continue to increase the level of underwriting revenue and substantially increase the level of institutional commission revenue in coming quarters by building on the investment we have made in our investment banking, research, institutional sales and trading teams in recent quarte," said Mr. Alboini.

We seek Safe Harbor.