Westech Capital Corp. Announces Year End 2012 Financial Results
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 |
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Consolidated Statements of Financial Condition |
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December 31, |
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Assets |
2012 |
2011 |
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Cash and cash equivalents |
$ 819,415 |
$ 1,444,106 |
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Receivable from clearing organization |
2,110,079 |
2,730,309 |
||||||||
Receivables from employees, current |
372,303 |
252,451 |
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Securities owned, at fair value |
1,005,922 |
6,413,002 |
||||||||
Prepaid expenses and other assets |
677,758 |
680,867 |
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Total current assets |
4,985,477 |
11,520,735 |
||||||||
Property and equipment, net |
3,625,518 |
3,844,440 |
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Receivables from employees, non-current |
167,519 |
350,467 |
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Total assets |
$ 8,778,514 |
$ 15,715,642 |
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Liabilities, Redeemable Preferred Stock and Stockholders' Equity (Deficit) |
||||||||||
Accounts payable, accrued expenses and other liabilities |
$ 3,033,245 |
$ 2,901,948 |
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Securities sold, not yet purchased, at fair value |
179,599 |
2,211,689 |
||||||||
Current portion of long term debt |
101,112 |
117,564 |
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Total current liabilities |
3,313,956 |
5,231,201 |
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Long term debt |
1,931,878 |
2,074,074 |
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Total liabilities |
5,245,834 |
7,305,275 |
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Redeemable preferred stock |
||||||||||
Preferred stock, $0.001 par value, 400 shares authorized |
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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 |
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Consolidated Statements of Operations |
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Years Ended December 31, |
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2012 |
2011 |
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Revenue: |
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Commissions from principal transactions |
$ 14,708,622 |
$ 16,024,668 |
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Commissions from agency transactions |
1,947,146 |
643,697 |
||||||
Underwriting and investment banking revenue |
104,807 |
1,754,237 |
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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 |
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Expenses: |
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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 |
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Interest |
149,078 |
202,778 |
||||||
Other |
3,427,376 |
3,652,816 |
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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) |
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Less: |
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Dividends on Current Preferred Stock |
585,714 |
160,913 |
||||||
Net loss available to common stockholders |
$ (5,578,801) |
$ (3,411,642) |
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Net loss per share of common stock: |
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Basic and diluted |
$ (1.38) |
$ (0.85) |
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Weighted average common shares outstanding: |
||||||||
Basic and diluted |
4,031,732 |
4,031,732 |
Contact: Craig Biddle
[email protected]
512-306-5281
SOURCE Westech Capital Corp.
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