Westech Capital Corp. Announces Year End 2012 Financial Results

21 Aug, 2013, 16:30 ET from Westech Capital Corp.

AUSTIN, Texas, Aug. 21, 2013 /PRNewswire/ -- Westech Capital Corp. (Pink Sheets: WTEC) today announced its audited consolidated Year End 2012 financial results.

2012 total revenues were $22.4 million compared to total revenues of $20.3 million for 2011. The Company reported a pre-tax loss of $4.9 million for 2012 as compared to a pre-tax loss of $3.2 million for 2011. The Company reported an after-tax net loss of $5.0 million for 2012 as compared to an after-tax net loss of $3.3 million for 2011. The Company reported a net loss available to common stockholders of $5.6 million for 2012 as compared to a net loss available to common stockholders of $3.4 million for 2011. The Company reported a net loss of $1.38 per share of common stock on a basic and fully diluted basis for 2012, compared to a net loss of $0.85 per share of common stock on a basic and fully diluted basis for 2011.  

Company Information

Westech Capital Corp. (Pink Sheets: WTEC) is a holding company whose primary operating subsidiary is Tejas Securities Group, Inc., ("Tejas Securities").  Tejas Securities is a full service brokerage and investment banking firm that focuses on the following: (i) proprietary research on distressed debt and special situation securities, (ii) trading and other brokerage services to value-based institutional and retail investors active in fixed income and equity instruments, and (iii) corporate finance and strategic advisory services to middle-market companies within our target industries. 

WESTECH CAPITAL CORP. AND SUBSIDIARIES

Consolidated Statements of Financial Condition

December 31,

Assets

2012

2011

Cash and cash equivalents

$       819,415

$     1,444,106

Receivable from clearing organization

2,110,079

2,730,309

Receivables from employees, current

372,303

252,451

Securities owned, at fair value

1,005,922

6,413,002

Prepaid expenses and other assets

677,758

680,867

Total current assets

4,985,477

11,520,735

Property and equipment, net

3,625,518

3,844,440

Receivables from employees, non-current

167,519

350,467

Total assets

$     8,778,514

$   15,715,642

Liabilities, Redeemable Preferred Stock and Stockholders' Equity (Deficit)

Accounts payable, accrued expenses and other liabilities

$     3,033,245

$     2,901,948

Securities sold, not yet purchased, at fair value

179,599

2,211,689

Current portion of long term debt

101,112

117,564

Total current liabilities

3,313,956

5,231,201

Long term debt

1,931,878

2,074,074

Total liabilities

5,245,834

7,305,275

Redeemable preferred stock

Preferred stock, $0.001 par value, 400 shares authorized

Current Series A redeemable, convertible preferred stock ("Current Preferred Stock"), 338 and 339 shares issued and outstanding at December 31, 2012 and 2011, respectively, including unpaid accrued dividends of $746,627 and $160,913 at December 31, 2012 and 2011, respectively, and net of issuance costs of $247,084

8,949,543

8,388,829

Note receivable from former director and executive officer (Note 18)

(1,000,000)

(1,000,000)

Total redeemable preferred stock

7,949,543

7,388,829

Commitments and contingencies

Stockholders' equity (deficit):

Common stock, $0.001 par value, 30,000,000 shares authorized, 8,198,508 issued at December 31, 2012 and 2011

8,199

8,199

Additional paid in capital

69,633,850

69,502,296

Accumulated deficit

(62,687,416)

(57,108,615)

Treasury stock, 

Common stock, at cost, 4,166,776 shares at December 31, 2012 and 2011

(11,248,244)

(11,248,244)

Accumulated other comprehensive loss

(123,252)

(132,098)

Total stockholders' equity (deficit)

(4,416,863)

1,021,538

Total liabilities, redeemable preferred stock and stockholders' equity (deficit)

$     8,778,514

$   15,715,642

 

WESTECH CAPITAL CORP. AND SUBSIDIARIES

Consolidated Statements of Operations

Years Ended December 31,

2012

2011

Revenue:

Commissions from principal transactions

$ 14,708,622

$ 16,024,668

Commissions from agency transactions

1,947,146

643,697

Underwriting and investment banking revenue

104,807

1,754,237

Net dealer inventory and investment revenue, net of trading interest expense of $4,617 and $11,735, respectively

5,428,934

1,824,774

Other revenue

251,110

88,304

         Total revenue

22,440,619

20,335,680

Expenses:

Commissions, employee compensation and benefits

17,318,973

15,883,169

Floor brokerage and clearing organization charges

1,076,453

287,963

Communications and occupancy

3,404,564

1,950,340

Professional fees

1,977,773

1,585,061

Interest

149,078

202,778

Other

3,427,376

3,652,816

         Total expenses

27,354,217

23,562,127

Loss before income tax expense

(4,913,598)

(3,226,447)

         Income tax expense

79,489

24,282

Net loss

(4,993,087)

(3,250,729)

Less:

Dividends on Current Preferred Stock

585,714

160,913

Net loss available to common stockholders

$ (5,578,801)

$ (3,411,642)

Net loss per share of common stock:

Basic and diluted

$ (1.38)

$ (0.85)

Weighted average common shares outstanding:

Basic and diluted

4,031,732

4,031,732

Contact: Craig Biddle cbiddle@westechcapital.com  512-306-5281

SOURCE Westech Capital Corp.