May 14, 2010 at 15:47 PM EDT
National Investment Managers Inc. Reports on First Quarter
Q1 Revenue $11.2 Million; Q1 EBITDA SBC at $1.5 Million; Carl Marks Advisory Group Launches Investment Banking Process; Lenders Extend Debt Maturities and Increase Credit Facilities

DUBLIN, OH -- (Marketwire) -- 05/14/10 -- National Investment Managers Inc. (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 first quarter 2010 results and subsequent events.

The Company 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.

The Company previously 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 subordinated lender has agreed to surrender for cancellation the approximately 11.5 million common stock warrants they currently hold. Further information regarding these agreements can be found in today's Form 10-Q filing with the Securities and Exchange Commission.

First quarter revenue and earnings were up sequentially from fourth quarter 2009, but down from the same period in 2009. EBITDA SBC (earnings before interest, taxes, dividends, depreciation, amortization, change in derivative financial instruments and stock-based compensation) for the first quarter of 2010 was approximately $1.5 million compared to about $2.0 million for first quarter 2009. Revenue for the quarter ended March 31, 2010 was approximately $11.2 million, down from approximately $12.6 million in the same period of 2009. Net loss before preferred stock dividends for the quarter ended March 31, 2010 increased to approximately $838 thousand with preferred dividends of approximately $492 thousand, resulting in a net loss available to common shareholders of approximately $1.3 million, or $0.03 per fully diluted share. For the same period in 2009, the net loss before preferred stock dividends stood at approximately $268 thousand with approximately $494 thousand in preferred dividends, resulting in a net loss available to common shareholders of approximately $763 thousand, or $0.02 per fully diluted share. The weighted average number of common shares outstanding stood at roughly 39.8 million at the end of the first quarter 2010 and 39.6 million at the end of the same period in 2009.

Steven J. Ross, Chief Executive Officer of NIVM, said, "Our focus during the first quarter was to reach new agreements with our lenders that should allow us time to accomplish a refinancing or sale that will strengthen the Company and its business going forward. Despite the significant time and expense associated with successfully concluding that process and the launching of our investment banking initiatives, we are pleased with our first quarter performance."

John Davis, President and Chief operating Officer, added, "I am encouraged by our first quarter financial results. Although, compared to last year, the first quarter was negatively impacted by the winding down of document restatement activity associated with EGTRRA for defined contribution plans, our results were in line with our operating plan and general expectations for the period."

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


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