U.S. Securities and Exchange Commission
Washington D.C. 20549
Form 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the quarterly period ended June 30, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
Commission File Number 33-70334-A
INTERNATIONAL ASSETS HOLDING CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 59-2921318
- ------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
250 Park Avenue South, Suite 200
Winter Park, FL 32789
(Address of principal executive offices)
(407) 629-1400
(Issuer's telephone number)
NA
(Former name,former address and former fiscal year,if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ].
The number of shares outstanding of Common Stock was 1,415,477 as of August 6,
1997.
Transitional small business disclosure format Yes [ ] No [X]
INDEX
Page No.
Part I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheet as of June 30, 1997 3
Condensed Consolidated Statements of Operations for the
Nine Months ended June 30, 1997, and 1996 5
Condensed Consolidated Statements of Operations for the
Three Months ended June 30, 1997, and 1996 6
Condensed Consolidated Statements of Cash Flows for the
Nine Months ended June 30, 1997, and 1996 7
Notes to Condensed Consolidated Financial Statements 9
Item 2. Management's Discussion and Analysis or Plan of Operation 11
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 16
Signatures 17
2
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
June 30, 1997
(Unaudited)
Assets
Cash $ 445,845
Cash deposits with clearing broker 2,129,735
Investments 1,314,284
Other receivables 81,197
Securities owned, at market value 3,323,070
Deferred income tax benefit 51,232
Property and equipment, at cost:
Leasehold improvements 52,953
Furniture and equipment 829,287
-------------
882,240
Less accumulated depreciation and amortization 426,212
---------------
Net property and equipment 456,028
Other assets, net of accumulated amortization of $78,502 303,313
===============
$ 8,104,704
===============
See accompanying notes to condensed consolidated financial statements.
3
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
June 30, 1997
(Unaudited)
Liabilities and Stockholders' Equity
Liabilities:
Securities sold, but not yet purchased, at market value $ 896,892
Payable to clearing broker 171,435
Accounts payable 144,157
Accrued employee compensation and benefits 893,053
Other accrued expenses 240,348
Income taxes payable 76,238
Deferred income taxes 677
Other 7,638
---------------
Total liabilities 2,430,438
---------------
Stockholders' equity:
Preferred stock, $.01 par value. Authorized 1,000,000
shares; issued and outstanding -0- shares -
Common stock, $.01 par value. Authorized 3,000,000
shares; issued and outstanding 1,419,904 shares 14,199
Additional paid-in capital 3,162,270
Retained earnings 2,497,797
---------------
Total stockholders' equity 5,674,266
===============
$ 8,104,704
===============
See accompanying notes to condensed consolidated financial statements.
4
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Nine Months Ended June 30, 1997 and 1996
(Unaudited)
1997 1996
---- ----
Revenues:
Commissions $ 6,649,876 6,594,941
Net dealer inventory and investment gains 1,932,332 1,783,535
Other revenue 483,953 466,295
---------------- -----------------
Total revenues 9,066,161 8,844,771
---------------- -----------------
Expenses:
Commissions and clearing fees 3,806,636 3,666,213
Employee compensation and benefits 1,976,765 1,906,807
Communications and promotions 1,106,964 1,286,638
Other operating expenses 1,270,755 979,334
---------------- -----------------
Total expenses 8,161,120 7,838,992
---------------- -----------------
Income before income taxes 905,041 1,005,779
Income tax expense 373,013 408,754
---------------- -----------------
Net income $ 532,028 597,025
================ =================
Earnings per common and dilutive common equivalent share:
Primary: $ .313 .326
Fully diluted: $ .313 .326
Weighted average number of common and dilutive common equivalent shares
outstanding:
Primary: 1,915,855 2,155,527
Fully diluted: 1,915,855 2,155,527
See accompanying notes to condensed consolidated financial statements.
5
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Three Months Ended June 30, 1997 and 1996
1997 1996
---- ----
Revenues:
Commissions $ 2,494,030 2,109,340
Net dealer inventory and investment gains 746,598 547,970
Other revenue 182,018 184,335
----------------- -----------------
Total revenues 3,422,646 2,841,645
----------------- -----------------
Expenses:
Commissions and clearing fees 1,425,624 1,171,382
Employee compensation and benefits 721,056 634,599
Communications and promotions 363,442 420,591
Other operating expenses 497,242 354,487
----------------- -----------------
Total expenses 3,007,364 2,581,059
----------------- -----------------
Income before income taxes 415,282 260,586
Income tax expense 166,375 105,247
----------------- -----------------
Net Income $ 248,907 155,339
================= =================
Earnings per common and dilutive common equivalent share:
Primary: $ .159 .086
Fully diluted: $ .159 .086
Weighted average number of common and dilutive common equivalent shares
outstanding:
Primary: 1,605,873 2,226,133
Fully diluted: 1,605,873 2,226,133
See accompanying notes to condensed consolidated financial statements.
6
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended June 30, 1997 and 1996
(Unaudited)
1997 1996
---- ----
Cash flows from operating activities:
Net income $ 532,028 597,025
Adjustments to reconcile net income to net cash provided
by (used for) operating activities:
Net amortization and appreciation of investments (65,096) (70,758)
Depreciation and amortization 121,264 91,946
Deferred income taxes (39,607) 3,184
Cash provided by (used for) changes in:
Receivable from clearing broker 237,136 (292,107)
Receivable from affiliated company 26,542 12,127
Other receivables 26,888 49,463
Securities owned (852,475) (983,747)
Other assets (135,362) (30,012)
Securities sold, but not yet purchased (132,189) 199,305
Payable to clearing broker 171,435 -
Accounts payable 33,124 (8,182)
Accrued employee compensation and benefits 49,109 29,432
Other accrued expenses 84,027 (29,569)
Income taxes payable (45,080) (43,430)
Other liabilities 75 135
----------------- ---------------
Net cash provided by (used for) operating activities 11,819 (475,188)
----------------- ---------------
Cash flows from investing activities:
Disposal of investments 5,800,000 7,729,000
Acquisition of investments (5,730,191) (7,393,001)
Acquisition of property, equipment and other assets (235,388) (191,192)
----------------- ---------------
Net cash provided by (used for) investing activities (165,579) 144,807
----------------- ---------------
(continued)
See accompanying notes to condensed consolidated financial statements.
7
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows, Continued
1997 1996
---- ----
Cash flows from financing activities:
Acquisition of common shares related to repurchase program (32,321) (27,089)
Acquisition of common shares for treasury (67,822) -
----------------- ---------------
Net cash used for financing activities (100,143) (27,089)
----------------- ---------------
Net decrease in cash and cash equivalents (253,903) (357,470)
Cash and cash equivalents at beginning of period 2,829,483 1,604,871
----------------- ---------------
Cash and cash equivalents at end of period $ 2,575,580 1,247,401
================= ===============
Supplemental disclosure of cash flow information:
Cash paid for interest $ 2,166 5,897
================= ===============
Income taxes paid $ 457,700 449,000
================= ===============
See accompanying notes to condensed consolidated financial statements.
8
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
June 30, 1997 and 1996
(1) Basis of Presentation
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with the instructions and requirements
of Form 10-QSB and, therefore, do not include all information and
footnotes necessary for a fair presentation of financial position,
results of operations, and cash flows in conformity with generally
accepted accounting principles. In the opinion of Management, such
financial statements reflect all adjustments necessary for a fair
statement of the results of operations, cash flows and financial position
for the interim periods presented. Operating results for the interim
periods are not necessarily indicative of the results that may be
expected for the full year. It is suggested that these condensed
consolidated financial statements be read in conjunction with the
Company's audited consolidated financial statements for the year ending
September 30, 1996, filed on Form 10-KSB (SEC File Number 33-70334-A).
As used in this Form 10-QSB, the term "Company" refers, unless the
context requires otherwise, to International Assets Holding Corporation
and its five wholly owned subsidiaries; International Assets Advisory
Corp.("IAAC"), Global Assets Advisors, Inc. ("GAA"), International
Financial Products, Inc. ("IFP"), GlobalNet Securities, Inc.
("GNSI") and International Asset Management Corp. ("IAMC"). All
significant intercompany balances and transactions have been eliminated
in consolidation.
(2)
Securities Owned and Securities Sold, But Not Yet Purchased
Securities owned and Securities sold, but not yet purchased at June 30,
1997, consist of trading and investment securities at quoted market
values as follows:
Sold, but not
Owned yet purchased
Obligations of U.S. Government $ 1,048,214 -
Common stock and American Depository Receipts 1,167,883 896,892
Proprietary unit investment trusts 786,695 -
Corporate debt securities 166,857 -
Foreign government obligations 153,421 -
------------ --------
$ 3,323,070 896,892
9
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements, continued
(3) Earnings Per Common Share
Primary and fully diluted earnings per common and dilutive common
equivalent share for the three months and the nine months ended June 30,
1997 and 1996, have been computed by dividing adjusted net income by the
weighted average number of common and dilutive common equivalent shares
outstanding. Common equivalent shares represent shares of common stock
issuable upon the assumed exercise of stock options and warrants.
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings per
Share." Statement 128 supersedes APB Opinion No. 15, "Earnings per
Share," and specifies the computation, presentation, and disclosure
requirements for earnings per share ("EPS") for entities with publicly
held common stock or potential common stock. Statement 128 was issued to
simplify the computation of EPS. It requires dual presentation of basic
and diluted EPS on the face of the statements of operations for all
entities with complex capital structures and requires a reconciliation of
the numerator and denominator of the basic EPS computation to the
numerator and denominator of the diluted EPS computation.
Statement 128 is effective for financial statements for both interim and
annual periods ending after December 15, 1997. Earlier application is not
permitted. After adoption, all prior period EPS data presented shall be
restated to conform to Statement 128. Under Statement 128, basic EPS
would be $.173 and $.107 for the three months ended June 30, 1997 and
1996, respectively, and $.369 and $.409 for the nine months ended June
30, 1997 and 1996, respectively. Diluted EPS would be $.169 and $.100 for
the three months ended June 30, 1997 and 1996, respectively, and $.356
and $.394 for the nine months ended June 30, 1997 and 1996, respectively.
(4) Leases
The Company occupies leased office space of approximately 13,815 square
feet at 250 Park Avenue South, Winter Park, Florida. In December 1996,
the Company executed an amendment to enhance this leased office space and
extend the lease expiration from November 1999 to May 2001.
The Company is obligated under various noncancelable operating leases for
the rental of its office facilities and certain office equipment. Rent
expense associated with operating leases amounted to $230,583 and
$219,822 for the nine months ended June 30, 1997, and 1996, respectively.
The minimum lease payments under noncancelable operating leases as of
June 30, 1997 are as follows:
10
INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements, continued
Fiscal Year (12 month period) Ending September 30,
--------------------------------------------------
1997 $ 308,600
1998 313,400
1999 308,500
2000 320,000
2001 231,300
Thereafter 17,500
Total future minimum lease payments $1,499,300
(5) Stock Repurchase Program
On March 13, 1996, the Board of Directors authorized the Company to
repurchase up to $500,000 in shares of the Company's common stock in the
open market during the remainder of the fiscal year ended September 30,
1996. On October 4, 1996, the Company announced that the Board of
Directors authorized the Company to continue its repurchase of common
stock up to $500,000 in the open market during the remainder of the
fiscal year that ends September 30, 1997. The stock purchases will be
made in the open market from time to time as market conditions permit.
The Company is required to comply with Rule 10b-18 and Regulation M of
the Securities and Exchange Commission which regulate the specific terms
in which shares may be repurchased. As of August 6, 1997, the Company has
repurchased a total of 21,400 shares under this repurchase program at a
total cost of $81,013.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
The Company's assets increased from $7,528,292 at September 30, 1996, to
$8,104,704 at June 30, 1997, or an increase of $576,412. The Company's
liabilities increased from $2,285,911 at September 30, 1996, to $2,430,438
at June 30, 1997, or an increase of $144,527. The increase in the net assets
(assets less liabilities) of $431,885 primarily relates to the $532,028 net
income earned for the nine month fiscal period net of stock repurchase costs
from the stock repurchase program and repurchases from terminated
participants of the Company's Employee Stock Ownership Plan together
totaling $100,143 for the same period.
The Company's condensed consolidated balance sheet at June 30, 1997,
reflects a payable to clearing broker, for trades which had not yet settled
for cash, due to the costs from the purchase of securities exceeding the
proceeds of securities sold.
11
Results of Operations:
The Company's principal activities, securities brokerage and the trading of
and market-making in securities, are highly competitive and extremely
volatile. The earnings of the Company are subject to wide fluctuations since
many factors over which the Company has little or no control, particularly
the overall volume of trading and the volatility and general level of market
prices, may significantly affect its operations.
Nine Months Ended June 30, 1997, as Compared to
the Nine Months Ended June 30, 1996
The Company's revenues are derived primarily from commissions earned on the
sale of securities and trading income in securities purchased or sold for
the Company's account. Total revenues increased by approximately $221,000,
or 3% for the nine months ended June 30, 1997, as compared to the nine
months ended June 30, 1996. For the nine months ended June 30, 1997, and
1996, approximately 73% and 75%, respectively, of the Company's revenues
were derived from commissions earned on the sale of securities. For the nine
months ended June 30, 1997, and 1996, approximately 21% and 20%,
respectively, of the Company's total revenues were from net dealer inventory
and investment gains (trading revenue).
Commission revenue increased by approximately $55,000, or 1% for the nine
months ended June 30, 1997, as compared to the nine months ended June 30,
1996. The average number of account executives increased from 40 as of June
30, 1996, to 42 as of June 30, 1997. During the nine months ended June 30,
1997, the overall volume of customer ticket orders increased by
approximately 8% and the average dollar amount of retail trades decreased by
approximately 6%, as compared to the nine months ended June 30, 1996. This
8% increase in ticket volume is primarily attributable to promotional
activities that included the execution of free trades for new clients during
the first half of the current fiscal year. This promotional activity also
caused the average dollar amount of retail trades to be reduced.
Revenues from net dealer inventory and investment gains increased by
approximately $149,000, or 8% for the nine months ended June 30, 1997, as
compared to the nine months ended June 30, 1996. The increase in trading
revenue is primarily attributable to increases in the Company's fixed income
trading due to the hiring of a new fixed income trader and increases in the
volume of wholesale trading activities. The Company's trading department
primarily concentrates on global securities that it believes are likely to
be traded by the Company's clients. By focusing on these types of
securities, trading revenue is more directly related to commission revenue
and order flow.
Other revenues increased by approximately $18,000 or 4% during the nine
months ended June 30, 1997, as compared to the nine months ended June 30,
1996. The increase in other revenue is primarily due to increases in earned
money management fees, account maintenance fees and subscription fee income.
12
The major expenses incurred by the Company relate to direct costs of
securities operations such as commissions and clearing fees, employee
compensation and benefits and communications and promotions expense. Total
expenses increased by approximately $322,000, or 4% for the nine months
ended June 30, 1997, as compared to the same period in 1996. This increase
in expense is primarily attributable to increases in commissions and
clearing fees, employee compensation and other operating expenses.
Commissions and clearing fees increased approximately $140,000, or 4% during
the nine months ended June 30, 1997, as compared to the same period in 1996.
This increase is directly related to the 1% increase in commission revenue
and the 8% increase in trading revenue for the same period. Employee
compensation and benefits expense increased approximately $70,000, or 4%
during the nine months ended June 30, 1997, as compared to the nine months
ended June 30, 1996. The increase in employee compensation and benefits is
primarily due to the cost of additional employees hired by the company and
increases in employee compensation during the nine months ended June 30,
1997, as compared to the nine months ended June 30, 1996. Partially
offsetting this increase in employee compensation is a decrease in
performance based bonus accruals based on the decrease in income before
income taxes.
Overall communication and promotions expenses decreased by approximately
$180,000, or 14% during the nine months ended June 30, 1997, as compared to
the nine months ended June 30, 1996. This decrease is primarily due to the
elimination of funding from the Company to IFP for promotional activities.
As of October 1996, Company funding for all IFP promotional activities was
ceased due to the unsuccessful efforts of IFP in generating revenues.
Other operating expenses increased approximately $291,000, or 30% during the
nine months ended June 30, 1997, as compared to the nine months ended June
30, 1996. This increase is attributable to increases in expenses incurred
for rental of leased premises, insurance expense, professional fees,
contributions and amortization and depreciation expense.
As a result of the above, income before income taxes decreased by
approximately $101,000 or 10% during the nine months ended June 30, 1997, as
compared to the nine months ended June 30, 1996. The Company's effective
income tax rate was approximately 41% for both the nine months ended June
30, 1997, and 1996.
Three Months Ended June 30, 1997, as Compared to
the Three Months Ended June 30, 1996
Total revenues increased by approximately $581,000, or 20% for the three
months ended June 30, 1997, as compared to the three months ended June 30,
1996. For the three months ended June 30, 1997, and 1996, approximately 73%
and 74%, respectively, of the Company's revenues were derived from
commissions earned on the sale of securities. For the three months ended
June 30, 1997, and 1996, approximately 22% and 19%, respectively, of the
Company's total revenues were derived from net dealer inventory and
investment gains (trading revenue).
13
Commission revenue increased by approximately $385,000, or 18% for the three
months ended June 30, 1997, as compared to the three months ended June 30,
1996. The increase in revenues is related to an 18% increase in ticket
volume and a 1% increase in the average dollar amount of trades during the
three months ended June 30, 1997, as compared to the three months ended June
30, 1996. This increase in commission revenue is also related to an increase
in the number of account executives from 38, as of June 30, 1996, to 46, as
of June 30, 1997, or an increase of 21%.
Revenues from net dealer inventory and investment gains increased by
approximately $199,000, or 36% for the three months ended June 30, 1997, as
compared to the three months ended June 30, 1996. The increase in trading
revenue is primarily attributable to increases in the Company's fixed income
trading due to the hiring of a new fixed income trader and increases in
wholesale trading activities.
Other revenues decreased by approximately $2,000, or 1% during the three
months ended June 30, 1997, as compared to the three months ended June 30,
1996. This decrease is primarily attributable to a decrease in dividend
income, caused by a change in the mix of dividend paying securities held by
the trading department during short term durations, for the three months
ended June 30, 1997, as compared to the same period in 1996. This decrease
in dividend income was partially offset by increases in money management
fees and account maintenance fees.
The major expenses incurred by the Company relate to direct costs of
securities operations such as commissions and clearing fees, employee
compensation and benefits and communications and promotions expense. Total
expenses increased by approximately $426,000, or 17% for the three months
ended June 30, 1997, as compared to the same period in 1996. This increase
in expense is primarily attributable to increases in commissions and
clearing fees, employee compensation and benefits and other operating
expenses.
Commissions and clearing fees increased approximately $254,000, or 22%
during the three months ended June 30, 1997, as compared to the same period
in 1996. This increase is directly related to the 18% increase in commission
revenue and the 36% increase in trading revenue for the same period.
Employee compensation and benefits expense increased approximately $86,000,
or 14% during the three months ended June 30, 1997, as compared to the three
months ended June 30, 1996. This increase in employee compensation and
benefits is primarily due to the cost of additional employees hired by the
Company and increases in employee compensation as well as increases in
performance based bonus accruals based on the increase in income before
income taxes by the Company during the three months ended June 30, 1997, as
compared to the three months ended June 30, 1996.
14
Overall communication and promotions expense decreased approximately
$57,000, or 14% primarily due to decreased promotional activities during the
three months ended June 30, 1997, as compared to the three months ended June
30, 1996. Other operating expenses increased approximately 40% during the
three months ended June 30, 1997, as compared to the three months ended June
30, 1996. This increase is attributable to increases in expenses incurred
for insurance expense, professional fees, contributions and amortization and
depreciation expense.
As a result of the above, income before income taxes increased by
approximately $155,000 during the three months ended June 30, 1997, as
compared to the three months ended June 30, 1996. The Company's effective
income tax rate was approximately 40% for the three months ended June 30,
1997, and 1996.
Liquidity and Capital Resources
Substantial portions of the Company's assets are liquid. At June 30, 1997,
approximately 88% of the Company's assets consisted of cash, cash
equivalents, and marketable securities. All assets are financed by the
Company's equity capital, short-term borrowings from securities lending
transactions and other payables.
The Company's wholly owned registered securities broker/dealer subsidiary
IAAC is subject to the requirements of the SEC and the NASD relating to
liquidity and net capital levels. At June 30, 1997, IAAC had net capital of
approximately $2,535,000, which was approximately $2,413,000 in excess of
its minimum net capital requirement at that date.
In the opinion of management, the Company's existing capital and cash flow
from operations will be adequate to meet the Company's capital needs for at
least the next 12 months in light of known and reasonably estimated trends.
In addition, management believes that the Company will be able to obtain
additional short or medium-term financing that may be desirable in the
ordinary conduct of its business. The Company has no plans for additional
financing and there can be no assurance such financing will be available.
15
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a). Exhibits
(11) The Statements of Computation of Earnings Per Share are attached
hereto as Exhibit 11
(27) Broker-Dealers and Broker Dealer Holding Companies Financial
Data Schedule BD is attached hereto as Exhibit 27
b). Form 8-K
No reports were filed on Form 8-K during the nine months
ended June 30, 1997.
16
Signatures
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
INTERNATIONAL ASSETS HOLDING CORPORATION
Date 08/13/97 /s/ Jerome F. Miceli
Jerome F. Miceli
President and Chief Operating Officer
Date 08/13/97 /s/ Jonathan C. Hinz
Jonathan C. Hinz
Chief Accounting Officer
17
INTERNATIONAL ASSETS HOLDING CORPORATION
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
For the Nine Months Ended June 30, 1997 and 1996
1997 1996
---- ----
Adjustment of shares outstanding:
Weighted average number of actual common shares outstanding 1,442,437 1,459,756
Weighted average number of additional common shares outstanding
assuming the exercise of common stock equivalents (1) 473,418 695,771
Weighted average number of common and dilutive
============== ==============
common equivalent shares outstanding 1,915,855 2,155,527
============== ==============
Adjustment of net income:
Actual net income $532,028 $597,025
Adjustment to net income assuming the investment of
excess proceeds received from the assumed exercise
of common stock equivalents, net of income taxes $67,709 $104,728
============== ==============
Adjusted net income $599,737 $701,753
============== ==============
Earnings per common and dilutive common equivalent share:
Primary: $.313 $.326
Fully diluted (2): $.313 $.326
- -------------------------------------------------------------------------------
(1) This calculation assumes that of all the additional common shares
outstanding, assuming the exercise of all common stock equivalents, 283,981
shares of common stock are re-acquired with the proceeds therefrom as of
October 1, 1996 and 290,857 shares are re-acquired as of October 1, 1995.
(2) In 1997 and 1996 there were no other potentially dilutive securities
present other than the common stock equivalents (common stock warrants and
common stock options), therefore, primary and fully diluted earnings per
share amounts are the same.
18
INTERNATIONAL ASSETS HOLDING CORPORATION
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
For the Three Months Ended June 30, 1997 and 1996
1997 1996
---- ----
Adjustment of shares outstanding:
Weighted average number of actual common shares outstanding 1,434,853 1,457,534
Weighted average number of additional common shares outstanding
assuming the exercise of common stock equivalents (1) 171,020 768,599
Weighted average number of common and dilutive
============== ==============
common equivalent shares outstanding 1,605,873 2,226,133
============== ==============
Adjustment of net income:
Actual net income $248,907 $155,339
Adjustment to net income assuming the investment of
excess proceeds received from the assumed exercise
of common stock equivalents, net of income taxes $6,826 $36,508
============== ==============
Adjusted net income $255,733 $191,847
============== ==============
Earnings per common and dilutive common equivalent share:
Primary: $.159 $.086
Fully diluted (2): $.159 $.086
- -------------------------------------------------------------------------------
(1) This calculation assumes that of all the additional common shares
outstanding, assuming the exercise of all common stock equivalents,
283,981 shares of common stock are re-acquired with the proceeds therefrom
as of April 1, 1997 and 290,857 shares are re-acquired as of April 1,
1996.
(2) In 1997 and 1996 there were no other potentially dilutive securities
present other than the common stock equivalents (common stock warrants and
common stock options), therefore, primary and fully diluted earnings per
share amounts are the same.
19
BD
1
9-MOS
SEP-30-1997
JUN-30-1997
2,575,580
81,197
0
0
4,637,354
456,028
8,104,704
0
1,113,448
0
0
896,892
0
0
0
14,199
5,660,067
8,104,704
1,932,332
202,277
6,649,876
0
185,233
2,166
4,856,699
905,041
905,041
0
0
532,028
.313
.313