HOUSTON, March 11 /PRNewswire-FirstCall/ -- Sanders Morris Harris Group
Inc. (Nasdaq: SMHG) today announced that its fourth quarter earnings per
diluted share were $0.20, an increase of 43% over the same period in 2002.
Revenues were $31.2 million for the fourth quarter of 2003 versus
$24.9 million for the same period in 2002.
Full year net income was $10.4 million, or $0.59 per diluted share.
Revenue for 2003 was $103.9 million, an increase of 26% over 2002. The
company noted that all of its major operating groups performed well, with
particular growth in its asset management and investment banking divisions.
In addition, its merchant banking activities, consisting of the company's
investment portfolios and investments in limited partnerships, produced net
gains of $5.3 million before taxes in 2003 compared to $1.0 million during
2002.
"Sanders Morris Harris Group had an exceptional year," said Ben T. Morris,
Chief Executive Officer. He added that, "The improved equity markets were
directly beneficial to our merchant banking portfolio and indirectly to our
operating businesses. We successfully contained costs and invested -- we
think carefully -- in expanding our three primary profit centers." Those
areas are asset and wealth management, investment banking/private equity and
institutional sales.
Sanders Morris Harris Group is a diversified financial services holding
company based in Houston, Texas. It is the largest investment banking firm
headquartered in the Southwest. It ended 2003 with assets in excess of
$137 million, cash and equivalents of $32.6 million and no funded debt. Its
operating entities are Sanders Morris Harris, Kissinger Financial Services,
Pinnacle Trust Co., Salient Partners and SMH Capital Advisors, Inc.
Additional information is available at http://www.smhgroup.com .
In addition to the historical information, this press release contains
certain forward-looking statements under federal securities laws, including
statements regarding Sanders Morris Harris Group's expected future business
prospects, revenue and income. These forward-looking statements are based
upon current expectations and involve certain risks and uncertainties that
could cause actual results to differ materially from any such statement.
These risks and uncertainties, many of which are beyond the company's control,
include but are not limited to (1) trading volume in the securities markets;
(2) volatility of the securities markets and interest rates; (3) changes in
regulatory requirements which could affect the demand for the company's
services or the cost of doing business; (4) general economic conditions, both
domestic and foreign, especially in the regions where the company does
business; (5) changes in the rate of inflation and related impact on
securities markets; (6) competition from existing financial institutions and
other new participants in the securities markets; (7) legal developments
affecting the litigation experience of the securities industry; (8) successful
implementation of technology solutions; (9) changes in valuations of the
company's trading and warrant portfolios resulting from mark-to-market
adjustments; (10) dependence on key personnel; and (11) demand for the
company's service. The company does not undertake any obligation to update or
revise any forward-looking statement.
SANDERS MORRIS HARRIS GROUP INC.
Selected Condensed Operating Information
(in thousands, except share and per share amounts)
Twelve Months Ended Three Months Ended
December 31, December 31,
2003 2002 2003 2002
(unaudited)
Net income calculation:
Revenues $103,934 $82,377 $31,208 $24,926
Expenses 90,981 73,531 26,486 20,770
Net 12,953 8,846 4,722 4,156
Equity in income of limited
partnerships 4,305 2,352 1,113 2,423
Minority interests (48) (2,195) 9 (2,225)
Income before income tax 17,210 9,003 5,844 4,354
Provision for income tax (6,794) (3,604) (2,316) (1,860)
Net income $10,416 $5,399 $3,528 $2,494
Earnings per share
Basic earnings per share $0.61 $0.32 $0.20 $0.15
Diluted earnings per
share $0.59 $0.32 $0.20 $0.14
Weighted average shares
outstanding:
Basic 17,095,626 16,621,698 17,237,274 16,726,194
Diluted 17,622,443 16,918,432 17,736,445 17,225,988
Balance sheet data:
Cash and cash equivalents $32,590 $34,890
Other tangible net assets 32,816 18,748
Tangible net assets 65,406 53,638
Shareholders' equity $114,853 $101,311
SOURCE Sanders Morris Harris Group Inc.
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Related links:
http://www.smhgroup.com
CONTACT:
Rick Berry, Chief Financial Officer of
Sanders Morris Harris Group Inc., +1-713-993-4614
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