DUBLIN, Ohio - (Business Wire) National Investment Managers Inc. (OTC BB: NIVM), a nationally-based and regionally-operated retirement plan administration and investment management company, announced its financial results for the quarter ended March 31, 2008. Financial highlights for first quarter of 2008 include: - Revenues of $8.9 million compared with revenues of $6.7 million in 2007, an increase of 34%.
- EBITDA SBC of $1.0 million compared with EBITDA SBC of ($53,568) in the same period 2007, an improvement of nearly $1.1 million.
- NIVM closed on the acquisition of California Investment Annuity Sales, Inc. (CIAS), effective March 31, 2008, adding $81 million to assets under management.
Revenues for the three months ended March 31, 2008, increased to a first-quarter record $8.9 million compared to $6.7 million for the same period in 2007, an increase of 34%. The Company’s earnings before interest, taxes, depreciation, amortization, change in derivative financial instruments and stock-based compensation (EBITDA SBC) was $1,003,203 for the first quarter 2008, up from an EBITDA SBC loss of ($53,568) in the same period 2007, an improvement of $1,056,771. Net loss for the quarter ended March 31, 2008, was approximately $1.2 million with preferred dividends of approximately $0.5 million, resulting in a net loss available to common shareholders of approximately $1.7 million, or $0.05 per fully diluted share. For the same period in 2007, the net loss stood at approximately $3.2 million with approximately $0.5 million in preferred dividends, resulting in a net loss available to common shareholders of approximately $3.7 million, or $0.14 per fully diluted share. The weighted average number of common shares outstanding stood at roughly 36.3 million at the end of first quarter 2008 and 25.9 million at the end of first quarter 2007. Steven Ross, CEO of National Investment Managers, said, “The first quarter is seasonally our weakest quarter from a revenue standpoint, so the record results in the first quarter of 2008 are especially satisfying. The record revenues and significant year-over-year improvement in operating results are clear indicators of the progress we have made in building our business.” He continued, “As we have previously stated, we believe that the most precise measure of our progress is the EBITDA SBC figure, which shows significant growth in the first quarter 2008. What is particularly noteworthy is the $1,056,771 improvement in our EBITDA SBC from the first quarter of 2007. Focusing on EBITDA is important because purchase accounting rules require us to book a significant portion of the acquisition cost to amortizing Balance Sheet accounts. It is the accounting consequence of a strategy to acquire services businesses (i.e., businesses without significant tangible assets). In fact, as we continue our strategy of adding profitable and cash flow positive field operations through acquisition, our non-cash expenses will increase.” John Davis, President and Chief Operating Officer added, “I am extremely pleased with this quarter’s results. We continue to exceed our aggressive growth plans by almost all financial metrics, including the increase in assets under administration and assets under management, which we grew both organically and through acquisitions. All of our acquisitions have demonstrated stable revenue growth and cash flow with low client attrition rates. And, our organic growth continued this quarter despite the uncertainty in the financial markets, which is an indicator of the continued strong demand for retirement plan services. Also, as we’ve indicated in the past, we are recession-resistant to a degree because our business is focused on long-term investment and our administration fees are essentially fixed in nature and don’t fluctuate with variable asset levels.” About National Investment Managers Inc. National Investment Managers Inc. is a holding company and a consolidator of pension plan administration, investment management and insurance businesses. Its strategy includes a custom-tailored acquisition formula for each acquired business, which allows local and regional entities to retain their autonomy while benefiting from the reach that a national presence offers. In addition, the Company’s approach offers entrepreneurs in these businesses an exit strategy suited to their specific needs. National Investment Managers targets businesses with stable cash flows and high operating margins to ensure successful integration of operations once a sale is concluded. Acquired companies continue to operate under their own brands, usually with minimal staff turnover to ensure that relationships of many years’ standing are not disrupted. At the same time, these formerly small businesses can cross-sell related financial services under the National Investment Managers umbrella and enjoy administrative and other support from around the country. The member firms of National Investment Managers provide pension administration services, retirement planning, defined benefit services, asset preservation, general insurance and asset management services. Wholly-owned subsidiaries of National Investment Managers are based in Southington, CT; Marina Del Rey, CA; Jacksonville, FL; Orlando, FL; North Attleboro, MA; Cherry Hill, NJ; Haddonfield, NJ; New York City, NY; White Plains, NY; Bend, OR; Portland, OR; Harrisburg, PA; Horsham, PA; Wayne, PA; Providence, RI; Houston, TX; and Seattle, WA. Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company’s future prospects. They are based on the Company’s current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to raise capital, identify and complete acquisitions, integrate the acquired businesses, improve upon the operations of the acquired business units and generate cash and profits. Further information about these and other relevant risks and uncertainties may be found in the Company’s filings with the Securities and Exchange Commission. | National Investment Managers Inc. and Subsidiaries | | Condensed Consolidated Statements of Operations | | (Unaudited) | | | | | | | | Three Months Ended | | Three Months Ended | | | March 31, 2008 | | March 31, 2007 | | | | | | | | | | | | Revenues: | | $ | 8,940,459 | | | $ | 6,660,961 | | | | | | | | Operating Expenses | | | | | | Selling, General and Administrative Expenses | | | 7,957,291 | | | | 6,770,043 | | | Depreciation and Amortization | | | 1,739,387 | | | | 1,402,137 | | | Stock-Based Compensation | | | 511,023 | | | | 170,655 | | | | | | | | Total Operating Expenses | | | 10,207,701 | | | | 8,342,835 | | | | | | | | Operating Loss | | | (1,267,242 | ) | | | (1,681,874 | ) | | | | | | | Other Income (Expenses): | | | | | | Change in Fair Value of Derivative Financial Instruments | | | 376,157 | | | | (495,905 | ) | | Interest Expense | | | (663,703 | ) | | | (1,181,953 | ) | | Interest, Dividend and Rental Income | | | 13,346 | | | | 44,191 | | | | | | | | Total Other Expense, net | | | (274,200 | ) | | | (1,633,667 | ) | | | | | | | Loss before deferred income tax benefit | | | (1,541,442 | ) | | | (3,315,541 | ) | | | | | | | Deferred income tax benefit | | | 371,397 | | | | 157,950 | | | | | | | | Net loss before preferred stock dividends | | | (1,170,045 | ) | | | (3,157,591 | ) | | | | | | | Less: Preferred stock dividends | | | (497,400 | ) | | | (518,050 | ) | | | | | | | Net loss available to common stockholders | | $ | (1,667,445 | ) | | $ | (3,675,641 | ) | | | | | | | | | | | | | | | | | Loss per common share - basic and diluted | | $ | (0.05 | ) | | $ | (0.14 | ) | | | | | | | | | | | | | | | | | Weighted average common shares outstanding - basic and diluted | | | 36,280,000 | | | | 25,879,000 | | | National Investment Managers Inc. and Subsidiaries | | Condensed Consolidated Balance Sheet | | (Unaudited) | | | | | | | | March 31, 2008 | | December 31, 2007 | | ASSETS | | | | | | Current assets: | | | | | | Cash | | $ | 3,911,185 | | | $ | 3,254,759 | | | Accounts receivable, net | | | 4,015,483 | | | | 3,383,396 | | | Prepaid expenses and other current assets | | | 697,132 | | | | 797,605 | | | | | | | | Total current assets | | | 8,623,800 | | | | 7,435,760 | | | | | | | | Property and equipment, net | | | 1,040,165 | | | | 1,078,523 | | | | | | | | Other assets: | | | | | | Goodwill | | | 23,146,651 | | | | 20,705,032 | | | Customer lists/relationships, net | | | 22,835,481 | | | | 23,515,497 | | | Other intangibles, net | | | 5,124,699 | | | | 5,796,615 | | | Deferred financing costs | | | 1,305,805 | | | | 1,424,413 | | | | | | | | Total other assets | | | 52,412,637 | | | | 51,441,557 | | | | | | | | Total assets | | $ | 62,076,603 | | | $ | 59,955,840 | | | | | | | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | Current liabilities: | | | | | | Short-term debt | | $ | 1,000,000 | | | $ | 1,000,000 | | | Long-term debt, current portion | | | 1,051,018 | | | | 1,512,477 | | | Accounts payable | | | 461,290 | | | | 632,109 | | | Unearned revenue | | | 6,866,210 | | | | 5,012,156 | | | Accrued expenses and other current liabilities | | | 5,086,405 | | | | 3,976,498 | | | | | | | | Total current liabilities | | | 14,464,923 | | | | 12,133,240 | | | | | | | | Long-term liabilities: | | | | | | Long-term debt, less current portion | | | 19,409,140 | | | | 15,894,875 | | | Preferred dividends payable | | | 4,389,819 | | | | 3,892,419 | | | Derivative financial instruments | | | 4,999,740 | | | | 7,990,613 | | | Deferred tax liability | | | 5,922,407 | | | | 5,254,930 | | | | | | | | Total long-term liabilities | | | 34,721,107 | | | | 33,032,837 | | | | | | | | Total liabilities | | | 49,186,029 | | | | 45,166,077 | | | | | | | | Commitments and contingencies | | | | | | | | | | | Stockholders' equity: | | | | | | Preferred stock, $.001 par value, 10,000,000 shares authorized; 4,000,000 designated as Series A shares of which 2,420,000 shares issued and outstanding (liquidation preference $2,420,000); 4,000,000 designated as Series B shares of which 3,615,000 shares issued and outstanding (liquidation preference $7,230,000); 1,000,000 designated as Series C shares of which 770,834 shares issued and outstanding (liquidation preference $9,250,000); 500,000 designated as Series D shares of which 409,500 shares issued and outstanding (liquidation preference $8,190,000); and 60,000 designated as Series E shares of which 29,350 shares issued and outstanding (liquidation preference $5,870,000). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,245 | | | | 7,345 | | | Common stock, $.001 par value, 100,000,000 shares authorized, 36,239,620 and 35,539,620 shares issued and outstanding as of March 31, 2008 and December 31, 2007, respectively. | | | | | | | 36,440 | | | | 35,540 | | | Additional paid-in capital | | | 33,514,965 | | | | 33,004,741 | | | Accumulated deficit | | | (20,668,076 | ) | | | (18,257,863 | ) | | | | | | | Total stockholders' equity | | | 12,890,573 | | | | 14,789,763 | | | | | | | | Total liabilities and stockholders' equity | | $ | 62,076,603 | | | $ | 59,955,840 | | National Investment Managers Inc.
Steven J. Ross, CEO, 614-923-8822
or
Porter, LeVay & Rose, Inc.
Marlon Nurse, VP – Investor Relations
Jeffrey Myhre, VP – Editorial
212-564-4700
Fax: 212-244-3075
www.plrinvest.com
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