National Investment Managers Inc. Reports 2009 Earnings
Revenue Increases 15.5% to $48 Million; EBITDA SBC Increases 14% to $9.1 Million; Agreements With Lenders and Recapitalization Initiative Also Announced

DUBLIN, OH -- (Marketwire) -- 05/03/10 -- National Investment Managers Inc. (OTCBB: NIVME) (OTCBB: NIVM), a nationally-based and regionally-operated retirement plan administration and investment management company, with over $10 billion of assets under administration, today reported its 2009 revenue and earnings.

Financial highlights for 2009 include:

  • 2009 annual revenues of $48.1 million in 2009 compared with revenues of $41.7 million for the same period of 2008, an increase of $6.4 million, or 15.5%;
  • Full year EBITDA SBC (earnings before interest, taxes, dividends, depreciation, amortization, change in derivative financial instruments and stock-based compensation) of $9.1 million compared with EBITDA SBC of $8.0 million in the same period in 2008, an increase of approximately $1.1 million, or 14%;
  • Net Operating Income for 2009 of $1.4 million compared to approximately $62 thousand for the full year 2008.

Net loss for the year ended December 31, 2009 increased to approximately $476 thousand with preferred dividends of approximately $2.0 million, resulting in a net loss available to common shareholders of approximately $2.5 million, or $0.06 per fully diluted share. For the same period in 2008, the net loss stood at approximately $130 thousand with approximately $2.0 million in preferred dividends, resulting in a net loss available to common shareholders of approximately $2.1 million, or $0.06 per fully diluted share. The weighted average number of common shares outstanding stood at roughly 39.6 million at the end of 2009 and 37.3 million at the end of 2008.

The Company announced that its senior bank lender has extended the maturity of its loans to the Company from July 2010 until January 2011 and has also increased the maximum availability of revolving credit borrowings to the Company from $2.5 million to $4.0 million. In addition, the Company's senior and senior subordinated lenders have agreed to forbear from exercising their rights and remedies with respect to existing financial covenant defaults until January 2011. Further information regarding these agreements can be found in today's Form 10-K filing with the Securities and Exchange Commission.

The Company also announced that it has engaged Carl Marks Advisory Group to advise and assist it in exploring, evaluating and implementing one or more strategic alternatives for the recapitalization of the Company, including refinancing its current debt, raising capital and/or selling the Company to a third party.

Steven J. Ross, Chief Executive Officer of NIVM, said, "We are encouraged by the Company's financial performance in 2009 and the trends we see in 2010. The new agreements with our principal lenders should allow us time to accomplish a refinancing or sale that will strengthen the Company and its business going forward."

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
                        Consolidated Balance Sheets
                         December 31, 2009 and 2008

                                                     2009          2008
                                                 ------------  ------------
ASSETS
Current assets:
  Cash (includes restricted cash of $33,263 and
   $411,299)                                     $    274,956  $    531,446
  Accounts receivable, net                          5,128,127     4,886,329
  Prepaid expenses and other current assets           893,864     1,265,431
                                                 ------------  ------------

    Total current assets                            6,296,947     6,683,206
                                                 ------------  ------------

Property and equipment, net                         1,550,058     1,034,047
                                                 ------------  ------------

Other assets:
  Goodwill                                         28,826,173    28,474,114
  Customer lists/relationships, net                24,697,027    27,118,405
  Other intangibles, net                            4,258,586     7,732,504
  Deferred financing costs                            611,838       979,455
                                                 ------------  ------------

    Total other assets                             58,393,624    64,304,478
                                                 ------------  ------------

    Total assets                                 $ 66,240,629  $ 72,021,731
                                                 ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Revolving line of credit                       $  2,500,000  $    327,992
  Long-term debt, current portion                   3,352,743     5,560,800
  Accounts payable                                  1,602,125       918,748
  Unearned revenue                                  4,331,108     5,464,992
  Accrued expenses and other current liabilities    3,851,586     5,602,819
                                                 ------------  ------------

    Total current liabilities                      15,637,562    17,875,351
                                                 ------------  ------------

Long-term liabilities:
  Long-term debt, less current portion             23,116,367    23,710,830
  Preferred dividends payable                       7,849,920     5,872,320
  Derivative financial instruments                  1,724,219     2,510,864
  Deferred tax liability                            5,589,839     7,708,914
                                                 ------------  ------------

    Total long-term liabilities                    38,280,345    39,802,928
                                                 ------------  ------------

    Total liabilities                              53,917,907    57,678,279
                                                 ------------  ------------

Commitments and contingencies (see Note 10)

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 December 31, 2009 and December
 31, 2008 (liquidation preference $2,420,000 as
 of December 31, 2009 and December 31, 2008);
 4,000,000 designated as Series B shares -
 3,615,000 shares issued and outstanding as of
 December 31, 2009 and December 31, 2008
 (liquidation preference $7,230,000 as of
 December 31, 2009 and December 31, 2008);
 1,000,000 designated as Series C shares -
 770,834 shares issued and outstanding as of
 December 31, 2009 and December 31, 2008
 (liquidation preference $9,250,008 as of
 December 31, 2009 and December 31, 2008);
 500,000 designated as Series D shares - 409,500
 shares issued and outstanding as of December 31,
 2009 and December 31, 2008 (liquidation
 preference $8,190,000 as of December 31, 2009
 and December 31, 2008); and 60,000 designated as
 Series E shares - 29,350 shares issued and
 outstanding as of December 31, 2009 and December
 31, 2008 (liquidation preference $5,870,000 as
 of December 31, 2009 and December 31, 2008)            7,245         7,245
Common stock, $.001 par value, 100,000,000 shares
 authorized, 39,656,669 shares issued and
 outstanding as of December 31, 2009 and
 39,556,669 shares issued and outstanding as of
 December 31, 2008.                                    39,657        39,557
Additional paid-in capital                         35,840,231    35,407,205
Accumulated deficit                               (23,564,411)  (21,110,555)
                                                 ------------  ------------

    Total stockholders' equity                     12,322,722    14,343,452
                                                 ------------  ------------

    Total liabilities and stockholders' equity   $ 66,240,629  $ 72,021,731
                                                 ============  ============






             National Investment Managers Inc. and Subsidiaries
                   Consolidated Statements of Operations
                   Years Ended December 31, 2009 and 2008


                                                     2009          2008
                                                 ------------  ------------


Revenues:                                        $ 48,149,363  $ 41,680,122
                                                 ------------  ------------

Operating expenses
  Selling, general and administrative expenses     39,038,488    33,703,829
  Depreciation and amortization                     7,250,168     6,911,995
  Stock-based compensation                            433,126     1,002,599
                                                 ------------  ------------

Total operating expenses                           46,721,782    41,618,423
                                                 ------------  ------------

Net operating income (loss)                         1,427,581        61,699
                                                 ------------  ------------

Other income (expenses):
  Change in fair value of derivative financial
   instruments                                        786,645     1,865,033
  Interest expense                                 (4,593,641)   (4,018,743)
  Debt and other restructuring charges                (60,000)            -
  Interest, dividend and rental income                 28,769        48,301
                                                 ------------  ------------

Total other income (expense), net                  (3,838,227)   (2,105,409)
                                                 ------------  ------------

Net income (loss) before income tax benefit
 (expense)                                         (2,410,646)   (2,043,710)

  Income tax benefit (expense)                      1,934,390     1,913,685
                                                 ------------  ------------

Net income (loss) before preferred stock
 dividends                                           (476,256)     (130,025)

  Preferred stock dividends                        (1,977,600)   (1,979,900)
                                                 ------------  ------------

Net income (loss) available to common
 stockholders                                    $ (2,453,856) $ (2,109,925)
                                                 ============  ============


Net income (loss) per common share - basic and
 diluted                                         $      (0.06) $      (0.06)
                                                 ============  ============


Weighted average common shares outstanding -
 basic and diluted                                 39,557,000    37,269,000
                                                 ============  ============



NATIONAL INVESTMENT MANAGERS INCORPORATED
Steven J. Ross
CEO
(614) 923-8822


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