November 16, 2009 at 16:16 PM EST
National Investment Managers Inc. Reports Third Quarter Earnings
Revenue up 18.4% Year to Date; EBITDA SBC up 12.6% Year to Date; Third Quarter EBITDA SBC Exceeds $2.0 Million

DUBLIN, OH -- (Marketwire) -- 11/16/09 -- National Investment Managers Inc. (OTCBB: NIVM), a nationally-based and regionally-operated retirement plan administration and investment management company, announced its financial results for the quarter and nine months ended September 30, 2009.

Financial highlights for the first nine months of 2009 include:

--  Revenues of $37.7 million compared with revenues of $31.9 million in
    2008, an increase of 18.4%.

--  EBITDA SBC was approximately $8.7 million, up from $7.7 million in the
    first nine months of 2008, an increase of 12.6%.

--  Net Operating Income of $2.7 million compared with approximately $1.9
    million for the same period in 2008, an increase of 39.3%.

--  Continued positive cash flow from operations in the third quarter of
    approximately $1.1 million, bringing cash flow from operations year-to-date
    to approximately $4.5 million.
    

Revenues for the three months ended September 30, 2009, were $11.0 million compared to approximately $11.2 million for the same period in 2008. The Company's earnings before interest, taxes, depreciation, amortization, change in derivative financial instruments and stock-based compensation (EBITDA SBC) was $2.0 million for the third quarter 2009, compared with approximately $2.8 million from the same period in 2008.

Net loss for the quarter ended September 30, 2009, was approximately $1.1 million with preferred dividends of approximately $494,000, resulting in a net loss available to common shareholders of approximately $1.6 million, or $0.04 per fully diluted share. For the same period in 2008, net income was approximately $2.0 million, with approximately $494,000 in preferred dividends, resulting in net income available to common shareholders of approximately $1.5 million, or $0.03 per fully diluted share. The weighted average number of common shares outstanding stood at roughly 39.6 million basic and diluted at September 30, 2009 and 37.2 million basic and 73.6 million diluted at September 30, 2008.

Steven Ross, CEO of National Investment Managers, said, "Our performance in the third quarter continued our progress toward significant year over year improvements in revenue and earnings. Despite a difficult economic climate, with our third quarter performance we have already exceeded our 2008 results. Although our third quarter earnings were negatively impacted relative to the same period in 2008 by the timing effect of some plan administration revenue moving from the third to fourth quarter of 2009, we expect our fourth quarter 2009 results to be much stronger than fourth quarter 2008."

He continued, "Our net income in the third quarter was largely affected by a change in the fair value of derivative financial instruments, which accounted for a $2.0 million decrease in year over year third quarter results. The impact on earnings per share of non-cash and non-operating charges is why we believe that EBITDA SBC is the best measure of our overall progress. Focusing on earnings before interest, taxes, dividends, depreciation, amortization, change in derivative financial instruments and stock-based compensation (i.e., EBITDA SBC) is important because purchase accounting rules also require us to book a significant portion of acquisition costs to amortizing Balance Sheet accounts. Our associated non-cash expenses actually increased as we added profitable and cash flow positive field operations through acquisitions in 2008. The resulting impact on net income, along with market-based derivative calculations, produces non-cash losses such as those reported in the third quarter that are not indicative of operating performance."

John Davis, President and Chief Operating Officer, added, "I am encouraged by the progress we continue to see in our field operations. In this environment especially, clients value the unmatched experience and expertise resident in our businesses. Although taking the extra time to advise and assist our clients' retirement planning in this economy presented us with some revenue timing challenges in the third quarter, by doing so we reinforced our role as trusted advisors to our approximately 11,000 plan sponsors and their associates."

He concluded, "We continue to stay on track with our strategic and operational plans toward the development and implementation of our national technology platform and administrative business model across the country. We have significant momentum across the organization and I believe we are rapidly establishing NIVM as a premier retirement services company on a national level and I look forward to continued growth."

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 Anchorage, AK; Laguna Hills, CA; Marina Del Rey, CA; Denver, CO; Southington, CT; Lake Mary, FL; Pikesville, MD; North Attleboro, MA; Haddonfield, NJ; New York City, NY; Yorktown Heights, NY; Beaverton, OR; Harrisburg, PA; Horsham, PA; Wayne, PA; Warwick, RI; Houston, TX; and Seattle, WA. NIVM's corporate headquarters are located in Dublin, OH.

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 Balance Sheets


                                                (Unaudited)    (Audited)
                                                September 30, December 31,
                                                    2009          2008
                                                ------------  ------------
ASSETS
Current assets:
     Cash (includes restricted cash of $189,396
      and $411,299)                             $    393,860  $    531,446
     Accounts receivable, net                      5,897,100     4,886,329
     Prepaid expenses and other current assets       912,487     1,262,981
                                                ------------  ------------

          Total current assets                     7,203,447     6,680,756
                                                ------------  ------------

Property and equipment, net                        1,480,335     1,036,497
                                                ------------  ------------

Other assets:
     Goodwill                                     28,735,819    28,474,114
     Customer lists/relationships, net            24,816,799    27,118,405
     Other intangibles, net                        4,934,174     7,732,504
     Deferred financing costs                        777,678       979,455
                                                ------------  ------------

          Total other assets                      59,264,470    64,304,478
                                                ------------  ------------

          Total assets                          $ 67,948,252  $ 72,021,731
                                                ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
     Revolving line of credit                   $  2,296,000  $    327,992
     Long-term debt, current portion              25,433,066     5,560,800
     Accounts payable                              1,931,544       918,748
     Unearned revenue                              3,687,548     5,464,992
     Accrued expenses and other current
      liabilities                                  3,268,482     5,603,997
                                                ------------  ------------

          Total current liabilities               36,616,640    17,876,529
                                                ------------  ------------

Long-term liabilities:
     Long-term debt, less current portion          1,321,091    23,710,830
     Preferred dividends payable                   7,355,520     5,872,320
     Derivative financial instruments              2,303,277     2,510,864
     Deferred tax liability                        6,038,122     7,708,914
                                                ------------  ------------

          Total long-term liabilities             17,018,010    39,802,928
                                                ------------  ------------

          Total liabilities                       53,634,650    57,679,457
                                                ------------  ------------

Commitments and contingencies

Stockholders' equity:
Preferred stock, $.001 par value, 10,000,000
 shares authorized; 4,000,000 designated as
 Series A shares - 2,420,000 shares issued and
 outstanding as of September 30, 2009 and
 December 31, 2008 (liquidation preference
 $2,420,000 as of September 30, 2009 and
 December 31, 2008); 4,000,000 designated as
 Series B shares - 3,615,000 shares issued and
 outstanding as of September 30, 2009 and December
 31, 2008 (liquidation preference $7,230,000 as of
 September 30, 2009 and December 31, 2008);
 1,000,000 designated as Series C shares - 770,834
 shares issued and outstanding as of September 30,
 2009 and December 31, 2008 (liquidation
 preference $9,250,008 as of September 30, 2009
 and December 31, 2008); 500,000 designated as
 Series D shares - 409,500 shares issued and
 outstanding as of September 30, 2009 and December
 31, 2008 (liquidation preference $8,190,000 as of
 September 30, 2009 and December 31, 2008); and
 60,000 designated as Series E shares - 29,350
 shares issued and outstanding as of September 30,
 2009 and December 31, 2008 (liquidation
 preference $5,870,000 as of September 30, 2009
 and December 31, 2008)                                7,245         7,245
Common stock, $.001 par value, 100,000,000
 shares authorized, 39,556,669 shares issued
 and outstanding as of September 30, 2009 and
 December 31, 2008.                                   39,557        39,557
Additional paid-in capital                        35,743,057    35,406,027
Accumulated deficit                              (21,476,257)  (21,110,555)
                                                ------------  ------------

          Total stockholders' equity              14,313,602    14,342,274
                                                ------------  ------------

          Total liabilities and stockholders'
           equity                               $ 67,948,252  $ 72,021,731
                                                ============  ============

See accompanying notes to condensed consolidated interim financial
statements.




            National Investment Managers Inc. and Subsidiaries
              Condensed Consolidated Statements of Operations
                                (Unaudited)

                                                Nine Months    Nine Months
                                                   Ended          Ended
                                               September 30,  September 30,
                                                    2009           2008
                                                ------------  ------------


Revenues:                                       $ 37,729,784  $ 31,853,174
                                                ------------  ------------

Operating expenses
     Selling, general and administrative
      expenses                                    29,080,526    24,186,372
     Depreciation and amortization                 5,605,675     4,818,729
     Stock-based compensation                        337,030       904,538
                                                ------------  ------------

Total operating expenses                          35,023,231    29,909,639
                                                ------------  ------------

Net operating income (loss)                        2,706,553     1,943,535
                                                ------------  ------------

Other income (expenses):
     Change in fair value of derivative
      financial instruments                          207,587     1,211,291
     Interest expense                             (3,345,630)   (2,909,806)
     Interest, dividend and rental income             21,162        34,915
                                                ------------  ------------

Total other expense, net                          (3,116,881)   (1,663,600)
                                                ------------  ------------

Net income (loss) before income tax benefit
 (expense)                                          (410,328)      279,935

     Income tax benefit (expense)                  1,527,826     1,359,833
                                                ------------  ------------

Net income (loss) before preferred stock
 dividends                                         1,117,498     1,639,768

     Less: preferred stock dividends              (1,483,200)   (1,485,500)
                                                ------------  ------------

Net income (loss) available to common
 stockholders                                   $   (365,702) $    154,268
                                                ============  ============


Net income (loss) per common share - basic      $      (0.01) $       0.00
                                                ============  ============


Net income (loss) per common share - diluted    $      (0.01) $       0.00
                                                ============  ============


Weighted average common shares outstanding -
 basic                                            39,557,000    36,760,000
                                                ============  ============


Weighted average common shares outstanding -
 diluted                                          39,557,000    41,311,000
                                                ============  ============


See accompanying notes to condensed consolidated interim financial
statements.




            National Investment Managers Inc. and Subsidiaries
              Condensed Consolidated Statements of Operations
                                (Unaudited)

                                                Three Months  Three Months
                                                    Ended         Ended
                                                September 30, September 30,
                                                    2009          2008
                                                ------------  ------------


Revenues:                                       $ 11,009,341  $ 11,151,645
                                                ------------  ------------

Operating Expenses
     Selling, general and administrative
      expenses                                     9,010,806     8,306,617
     Depreciation and amortization                 1,847,722     1,757,151
     Stock-based compensation                        122,351        97,474
                                                ------------  ------------

Total operating expenses                          10,980,879    10,161,242
                                                ------------  ------------

Net operating income (loss)                           28,462       990,403
                                                ------------  ------------

Other income (expenses):
     Change in fair value of derivative
      financial instruments                         (515,297)    1,469,952
     Interest expense                             (1,163,785)   (1,016,732)
     Interest, dividend and rental income              5,361         3,852
                                                ------------  ------------

Total other expense, net                          (1,673,721)      457,072
                                                ------------  ------------

Net income (loss) before income tax benefit
 (expense)                                        (1,645,259)    1,447,475

     Income tax benefit (expense)                    553,863       528,956
                                                ------------  ------------

Net income (loss) before preferred stock
 dividends                                        (1,091,396)    1,976,431

     Less: preferred stock dividends                (494,400)     (494,400)
                                                ------------  ------------

Net income (loss) available to common
 stockholders                                   $ (1,585,796) $  1,482,031
                                                ============  ============


Net income (loss) per common share - basic      $      (0.04) $       0.04
                                                ============  ============


Net income (loss) per common share - diluted    $      (0.04) $       0.03
                                                ============  ============


Weighted average common shares outstanding -
 basic                                            39,557,000    37,201,000
                                                ============  ============


Weighted average common shares outstanding -
 diluted                                          39,557,000    73,554,000
                                                ============  ============


See accompanying notes to condensed consolidated interim financial
statements.

National Investment Managers Incorporated
Steven J. Ross
CEO
(614) 923-8822

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