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:
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
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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
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Total current assets 6,296,947 6,683,206
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Property and equipment, net 1,550,058 1,034,047
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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
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Total other assets 58,393,624 64,304,478
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Total assets $ 66,240,629 $ 72,021,731
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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
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Total current liabilities 15,637,562 17,875,351
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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
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Total long-term liabilities 38,280,345 39,802,928
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Total liabilities 53,917,907 57,678,279
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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)
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Total stockholders' equity 12,322,722 14,343,452
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Total liabilities and stockholders' equity $ 66,240,629 $ 72,021,731
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National Investment Managers Inc. and Subsidiaries
Consolidated Statements of Operations
Years Ended December 31, 2009 and 2008
2009 2008
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Revenues: $ 48,149,363 $ 41,680,122
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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
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Total operating expenses 46,721,782 41,618,423
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Net operating income (loss) 1,427,581 61,699
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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
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Total other income (expense), net (3,838,227) (2,105,409)
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Net income (loss) before income tax benefit
(expense) (2,410,646) (2,043,710)
Income tax benefit (expense) 1,934,390 1,913,685
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Net income (loss) before preferred stock
dividends (476,256) (130,025)
Preferred stock dividends (1,977,600) (1,979,900)
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Net income (loss) available to common
stockholders $ (2,453,856) $ (2,109,925)
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Net income (loss) per common share - basic and
diluted $ (0.06) $ (0.06)
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Weighted average common shares outstanding -
basic and diluted 39,557,000 37,269,000
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NATIONAL INVESTMENT MANAGERS INCORPORATED
Steven J. Ross
CEO
(614) 923-8822