Me neither! But in IAAC 10.65 +1.51 on super earnings and in new 52wk high territory with only 3.74mil in float and 7.46mil OS plus $10.45 in cash with some debt: International Assets Reports Record Revenues and 71% Increase in First Quarter Earnings Tuesday February 14, 5:45 pm ET
NEW YORK--(BUSINESS WIRE)--Feb. 14, 2006--International Assets Holding Corporation (the "Company") (NASDAQ:IAAC - News) today announced net income of $1,046,000 for the quarter ended December 31, 2005 ("Q1 2006"), compared to $612,000 for the quarter ended December 31, 2004 ("Q1 2005"), an increase of 71%. Earnings per share for Q1 2006 increased to $0.14 per share ($0.13 diluted) from $0.09 per share ($0.08 diluted) for Q1 2005. Operating revenues for Q1 2006 increased by 37% to a record $8,330,000 from $6,085,000 for Q1 2005. Total non-interest expenses for Q1 2006 increased by 25% to $6,119,000 from $4,915,000 for Q1 2005. ADVERTISEMENT
The weighted average number of shares outstanding increased from 7,085,836 for Q1 2005 to 7,438,507 for Q1 2006 (7,998,299 for Q1 2005 to 8,127,099 for Q1 2006, on a diluted basis).
Operating revenues for Q1 2006 increased $2,245,000 or 37% over Q1 2005. This was due largely to the commodities trading and international equities market-making segments. Commodities trading, disclosed for the first time as a separate segment, recorded an increase from $471,000 to $1,445,000, or 207%, following commencement of a new base metals trading business in October 2005 and as a result of increased volatility in precious metals prices. International equities market-making, benefiting from increased activity, recorded a 34% increase from $2,517,000 to $3,361,000.
The revenues of the base metals trading business referred to above, which provides physical delivery of metal to its customers, are reported on a gross basis, showing total sales and, separately, cost of sales. All other revenues of the Company are reported on a net basis. The Company has introduced the term 'Operating revenues' for the first time to denote total revenues after deduction of cost of sales and to provide a revenue amount that is comparable with revenue shown in prior periods.
Total non-interest expenses for Q1 2006 increased by 25% over Q1 2005. The increase was attributable mainly to an increase in total employees in the intervening year and, to a lesser extent, administrative infrastructure to support continued growth. Interest expense increased by $352,000, from $177,000 for Q1 2005 to $529,000 for Q1 2006. Income before income taxes and minority interest increased by 69% from $993,000 for Q1 2005 to $1,682,000 for Q1 2006.
In comparison with the quarter ended September 30, 2005 ("Q4 2005"), operating revenues for Q1 2006 were a record $8,330,000, 9% greater than total revenues for Q4 2005 of $7,615,000. Reductions in operating revenues in international equities market-making and foreign exchange trading were more than compensated for by significant increases in operating revenues in commodities trading and international debt capital markets. Non-interest expenses increased 13% from $5,422 ,000 for Q4 2005 to $6,119,000 for Q1 2006, due largely to increased compensation and benefits. Net income and diluted earning per share for both Q1 2006 and Q4 2005 were $1,046,000 and $0.13, respectively.
Sean O'Connor, CEO stated, "With the commencement of our new base metals trading business during the quarter we continue to follow our strategy of diversification into select non-correlated markets. As a result, we have been able to produce record earnings for the second consecutive quarter. We remain focused on building a durable, growing business that will produce acceptable returns in weaker periods and superior returns in the long term."
Scott Branch, President, stated, "We continue to focus on improving efficiencies in our infrastructure so that we may take advantage of growth opportunities as they arise, and have further expanded the bank financing available to us. We are confident that we can continue to grow the Company from a position of strength."
Fiscal 2005: First Quarter Results - Unaudited (a):
Three Months Three Months %Change Ended Ended Three Dec. 31, '05 Dec. 31, '04 Months ("Q1 2006") ("Q1 2005")
(in $'000) Operating revenues 8,330 6,085 37% Interest expense 529 177 199% Net revenues 7,801 5,908 32% Non-interest expenses 6,119 4,915 25% Income before income taxes and minority interest 1,682 993 69% Income tax expense 636 375 70% Minority interest - 6 (b) Net income 1,046 612 71%
Earnings per share (in $): Basic 0.14 0.09 63% Diluted 0.13 0.08 68% Weighted average number of common shares outstanding: Basic 7,438,507 7,085,836 5% Diluted 8,127,099 7,998,299 2%
(a) Condensed consolidated financial statements will be included in the Company's Form 10-QSB to be filed today with the SEC. The Form 10-QSB will also be made available on the Company's web site at http://www.intlassets.com.
(b) Comparison not meaningful.
About International Asset Holding Corporation (NASDAQ:IAAC - News)
International Assets Holding Corporation and its subsidiaries (the "Company") form a financial services group focused on select international securities, foreign exchange and commodities markets. We commit our capital and expertise to market-making and trading of international financial instruments, currencies and commodities. The Company's activities are currently divided into five functional areas -- international equities market-making, international debt capital markets, foreign exchange trading, commodities trading and asset management. Additional information regarding the Company is available on the Company's web site at http://www.intlassets.com.
Certain statements in this document may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company's control, including adverse changes in economic, political and market conditions, losses from the Company's market-making and trading activities arising from counterparty failures and changes in market conditions, the possible loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, the possibility of liabilities arising from violations of federal and state securities laws and the impact of changes in technology in the securities and commodities brokerage industries. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reasonable assumptions, there can be no assurances that the actual results, performance or achievement of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements.
Contact: International Assets Holding Corporation, New York Scott Branch, 888-345-4685 x 335
-------------------------------------------------------------------------------- Source: International Assets Holding Corporation
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