Exhibit 99.1

 

National Holdings Corporation Reports Financial Results for the Fiscal 2019 Third Quarter

 

NEW YORK, NY, August 15, 2019 – National Holdings Corporation (NASDAQ: NHLD) (“National” or the “Company”), a leading full service independent brokerage, investment banking, trading and asset management firm providing diverse services including tax preparation, today announced its financial results for the 2019 fiscal third quarter.

 

Financial Highlights:

 

 

Revenue of $50.8 million, up $4.1 million, or 9%, from the $46.7 million recorded in the fiscal 2019 second quarter.

 

 

Net income of $0.2 million compared to a net loss of $2.8 million for the 2019 fiscal second quarter.

 

 

Quarterly adjusted EBITDA recovered as expected to $2.0 million from the ($2.1) million adjusted EBITDA recorded in the fiscal 2019 second quarter.

 

 

Cash and cash equivalents of $30.7 million and no debt as of June 30, 2019 versus $33.6 million as of the fiscal year-end 2018.

 

 

Equity of $49.3 million as of June 30, 2019, versus $46.9 million as of September 30, 2018.


Management Commentary

 

Michael Mullen, Chief Executive Officer of National stated, “We are pleased with our results for the quarter, with fiscal Q3 Investment Banking and Investment Advisory revenue rebounding as expected and finishing up strong. Many of our businesses performed extremely well for the quarter, and while legal expenses are currently up, I expect this number to decline thanks to our continued initiatives in Enterprise Risk Management. When it does, the true earning power of our organization will become apparent.”

 

Mr. Mullen added, “We continue to broaden our platform and focus on the long-term success of National, which has allowed us to attract and expand our team with a number of high-quality advisors. Year-to-date, we have added advisors with a total of over $1 billion of represented AUM and have seen growth across our major revenue categories of investment banking, private shares, advisory and tax. Of note this year is the growth we have seen in our private shares business, as we participated in high quality deals such as Airbnb and Slack. Our funds successfully liquidated our Slack holdings at the end of this last fiscal quarter, which generated significant returns for our clients, and we remain focused on this vertical and have built a robust pipeline of future deals. We continue to strive for excellence across the entire platform and remain vigilant on costs as we focus on growing the tangible book value of our company for all of our stakeholders.”

 

Fiscal Third Quarter 2019 and Nine Month Financial Results

 

National reported fiscal third quarter revenue of $50.8 million, up from the $46.7 million recorded in the second quarter of 2019, but down from the $56.2 million recognized in the third quarter of fiscal 2018, which included a $4.5 million banking advisory fee. Most all revenue categories rebounded well from the fiscal second quarter 2019 levels that were directly affected by the U.S. Government shutdown and market volatility. In the fiscal 2019 second quarter, the shutdown impacted banking deal execution, investment management fee levels, and retail investor trading. Despite the revenue increase, expenses were down at $49.6 million versus the current year second quarter and were down $5.1 million from $54.7 million in the comparable fiscal 2018 quarter. The broadening of our platform has kept our variable cost of sales under our target ratios. As a result, net income of $0.2 million and adjusted EBITDA of $2.0 million, rebounded nicely from the ($2.8) million net loss, and ($2.1) million negative adjusted EBITDA in the second quarter of 2019.

 

For the nine month year to date period, total revenue declined $11.1 million, or 7%, to $155.6 million, from the $166.7 million recorded in the year-ago period. All major revenue categories with the exception of brokerage commissions and related fees increased over the prior-year period. The transactions-driven commissions category has declined due to various factors including better enterprise risk management, the redistribution of revenue to other revenue categories, early year Fed action, the December 2018 market correction, the January government shutdown, and what we see as the overall market level driven retail client trading volume reductions.

 

 

The following information was filed by National Holdings Corp (NHLD) on Thursday, August 15, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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