First Albany Reports First Quarter 2001 Results

Apr 24, 2001, 01:00 ET from First Albany Companies Inc.

    ALBANY, N.Y., April 24 /PRNewswire Interactive News Release/ --
 First Albany Companies Inc. (Nasdaq:   FACT) reported today net revenues from
 its brokerage operations, First Albany Corporation, of $36.2 million for the
 first quarter ended March 31, 2001, compared to $31.1 million for the same
 period in 2000, an increase of 16 percent.  Consolidated net revenues for the
 first quarter were $37.3 million compared to $33.6 million for the same period
 in 2000, an increase of 11 percent.  The increase in net revenues was driven
 by a volatile corporate bond environment, which was partially offset by a
 64 percent decline in corporate investment banking revenues.
     Net income from the brokerage operations for the quarter was $215 thousand
 compared to $767 thousand for the same period in 2000. The decline in earnings
 from the brokerage operations was driven by an adverse shift in business mix
 and a decline in the market value of equity investments held at First Albany
 Corporation.  The net income from the brokerage operations was substantially
 offset by net losses at First Albany Companies Inc., driven primarily by a
 decline in the market value of the Company's investments.  For the first
 quarter the Company reported consolidated net income from continued operations
 of $68 thousand compared to $876 thousand for the same period in 2000, or net
 income of $0.01 per diluted share compared to $0.09 per diluted share,
 respectively.
     Alan Goldberg, President of First Albany Companies Inc., stated, "First
 quarter results reflected an extremely volatile equity market, which
 negatively impacted our investment banking business as well as the market
 value of some of our equity investments.  We are pleased, however, with the
 substantial growth in our taxable fixed income business and despite the
 difficult equity markets, we continue to focus on building our institutional
 businesses.  In our experience, volatile markets provide us with the best
 opportunity to recruit talented professionals.  Our success in recruiting
 should lead to dramatically better returns over the next few years."
 
                            First Albany Companies Inc.
                               Business Line Results
                               (Dollars in Thousands)
 
                                                   Net Revenue
 
                                                 THREE MONTHS ENDED
                                         March 31, 2001     March 31, 2000
 
     First Albany Corporation
      - Continued Operations                 $ 36,220         $ 31,091
     Parent & Affiliates                        1,109            2,511
     Total Continued Operations
      - Consolidated                         $ 37,329         $ 33,602
 
 
                                                   Pretax Income
 
                                                 THREE MONTHS ENDED
                                         March 31, 2001    March 31, 2000
 
     First Albany Corporation
      - Continued Operations                    $ 336          $ 1,261
     Parent & Affiliates                         (223)             272
     Total Continued Operations
      - Consolidated                            $ 113          $ 1,533
 
                                                Net Income After Tax
 
                                                 THREE MONTHS ENDED
                                         March 31, 2001    March 31, 2000
 
     First Albany Corporation
      - Continued Operations                    $ 215            $ 767
     Parent & Affiliates                        (147)              109
     Total Continued Operations
      - Consolidated                             $ 68            $ 876
 
 
     A portion of First Albany Companies Inc.'s investment portfolio is
 accounted for at market value while the remainder is accounted for under the
 equity method.  The aggregate market value of the Firm's investment portfolio
 increased from $46.9 million at December 31, 2000, to $ 56.3 million at
 March 31, 2001, primarily as a result of an increase in the market value of
 its investment in Mechanical Technology Inc. ("MKTY").  The Firm is required
 to account for the MKTY investment under the equity method of accounting
 because it owns in excess of 20% (approximately 33%) of the shares
 outstanding, and does not recognize changes in the market value of this
 investment in the income statement.  Changes in the value of those portions of
 the Company's investment portfolio accounted for at market value may impact
 the financial results of future periods either positively or negatively.
     In October 2000, the Board of Directors authorized a stock repurchase
 program of up to 1.5 million shares of its outstanding common stock.  The
 Company has repurchased approximately 302,000 shares pursuant to this program
 with an aggregate cost of $2.9 million.
     Shareholders' equity as of March 31, 2001 was $68.2 million compared to
 $63.2 million at March 31, 2000.  Book value per share as of March 31, 2001
 was $9.05 compared to $7.45 at March 31, 2000.  All per share figures have
 been restated to reflect stock dividends paid.
 
     First Albany provides investment banking services to corporate and public
 clients, and engages in market-making and trading of corporate, government and
 municipal securities.  The firm also provides venture capital and merchant
 banking services to the investment and corporate communities, and asset
 management services to individuals and institutions.
 
     This news release contains forward-looking statements, which are subject
 to various risks and uncertainties, including the conditions of the securities
 markets, generally, and acceptance of the Company's services within those
 markets and other risks and factors identified from time to time in the
 Company's filings with the Securities and Exchange Commission.  Actual results
 could differ materially from those currently anticipated.
 
     The common shares of First Albany Companies Inc. are traded on NASDAQ
 under the symbol "FACT."
 
 
                          FIRST ALBANY COMPANIES INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
     (In thousands of dollars except                    Three Months Ended
      for per share amounts)                          March 31,     March 31,
                                                        2001           2000
     Revenues
      Commissions                                      $3,851         $4,771
      Principal transactions                           28,109         15,377
      Investment banking                                3,916          8,061
      Investment (losses) gains                         (853)          2,163
      Interest income                                   7,446         19,045
      Fees and other                                    1,566          1,366
 
     Total revenues                                    44,035         50,783
      Interest expense                                  6,706         17,181
 
     Net revenues                                      37,329         33,602
 
     Expenses (excluding interest)
      Compensation and benefits                        28,960         24,407
      Clearing, settlement and brokerage costs            678            798
      Communications and data processing                2,531          2,248
      Occupancy and depreciation                        1,808          1,359
      Selling                                           1,634          1,436
      Other                                             1,503          1,224
 
     Total expenses (excluding interest)               37,114         31,472
 
     Operating income                                     215          2,130
      Equity in losses of affiliates                    (102)          (597)
 
     Income before income taxes                           113          1,533
      Income tax expense                                   45            657
 
     Income from continuing operations                     68            876
      Income from discontinued operations,
       net of taxes                                                    2,187
 
     Net income                                           $68         $3,063
 
 
     Per share data:
      Basic earnings:
       Continued operations                              0.01           0.10
       Discontinued operations                                          0.27
 
      Net income (loss) per share                       $0.01          $0.37
 
      Diluted earnings:
       Continued operations                              0.01           0.09
       Discontinued operations                                          0.22
 
      Net income (loss) per share                       $0.01          $0.31
 
 
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SOURCE First Albany Companies Inc.
    ALBANY, N.Y., April 24 /PRNewswire Interactive News Release/ --
 First Albany Companies Inc. (Nasdaq:   FACT) reported today net revenues from
 its brokerage operations, First Albany Corporation, of $36.2 million for the
 first quarter ended March 31, 2001, compared to $31.1 million for the same
 period in 2000, an increase of 16 percent.  Consolidated net revenues for the
 first quarter were $37.3 million compared to $33.6 million for the same period
 in 2000, an increase of 11 percent.  The increase in net revenues was driven
 by a volatile corporate bond environment, which was partially offset by a
 64 percent decline in corporate investment banking revenues.
     Net income from the brokerage operations for the quarter was $215 thousand
 compared to $767 thousand for the same period in 2000. The decline in earnings
 from the brokerage operations was driven by an adverse shift in business mix
 and a decline in the market value of equity investments held at First Albany
 Corporation.  The net income from the brokerage operations was substantially
 offset by net losses at First Albany Companies Inc., driven primarily by a
 decline in the market value of the Company's investments.  For the first
 quarter the Company reported consolidated net income from continued operations
 of $68 thousand compared to $876 thousand for the same period in 2000, or net
 income of $0.01 per diluted share compared to $0.09 per diluted share,
 respectively.
     Alan Goldberg, President of First Albany Companies Inc., stated, "First
 quarter results reflected an extremely volatile equity market, which
 negatively impacted our investment banking business as well as the market
 value of some of our equity investments.  We are pleased, however, with the
 substantial growth in our taxable fixed income business and despite the
 difficult equity markets, we continue to focus on building our institutional
 businesses.  In our experience, volatile markets provide us with the best
 opportunity to recruit talented professionals.  Our success in recruiting
 should lead to dramatically better returns over the next few years."
 
                            First Albany Companies Inc.
                               Business Line Results
                               (Dollars in Thousands)
 
                                                   Net Revenue
 
                                                 THREE MONTHS ENDED
                                         March 31, 2001     March 31, 2000
 
     First Albany Corporation
      - Continued Operations                 $ 36,220         $ 31,091
     Parent & Affiliates                        1,109            2,511
     Total Continued Operations
      - Consolidated                         $ 37,329         $ 33,602
 
 
                                                   Pretax Income
 
                                                 THREE MONTHS ENDED
                                         March 31, 2001    March 31, 2000
 
     First Albany Corporation
      - Continued Operations                    $ 336          $ 1,261
     Parent & Affiliates                         (223)             272
     Total Continued Operations
      - Consolidated                            $ 113          $ 1,533
 
                                                Net Income After Tax
 
                                                 THREE MONTHS ENDED
                                         March 31, 2001    March 31, 2000
 
     First Albany Corporation
      - Continued Operations                    $ 215            $ 767
     Parent & Affiliates                        (147)              109
     Total Continued Operations
      - Consolidated                             $ 68            $ 876
 
 
     A portion of First Albany Companies Inc.'s investment portfolio is
 accounted for at market value while the remainder is accounted for under the
 equity method.  The aggregate market value of the Firm's investment portfolio
 increased from $46.9 million at December 31, 2000, to $ 56.3 million at
 March 31, 2001, primarily as a result of an increase in the market value of
 its investment in Mechanical Technology Inc. ("MKTY").  The Firm is required
 to account for the MKTY investment under the equity method of accounting
 because it owns in excess of 20% (approximately 33%) of the shares
 outstanding, and does not recognize changes in the market value of this
 investment in the income statement.  Changes in the value of those portions of
 the Company's investment portfolio accounted for at market value may impact
 the financial results of future periods either positively or negatively.
     In October 2000, the Board of Directors authorized a stock repurchase
 program of up to 1.5 million shares of its outstanding common stock.  The
 Company has repurchased approximately 302,000 shares pursuant to this program
 with an aggregate cost of $2.9 million.
     Shareholders' equity as of March 31, 2001 was $68.2 million compared to
 $63.2 million at March 31, 2000.  Book value per share as of March 31, 2001
 was $9.05 compared to $7.45 at March 31, 2000.  All per share figures have
 been restated to reflect stock dividends paid.
 
     First Albany provides investment banking services to corporate and public
 clients, and engages in market-making and trading of corporate, government and
 municipal securities.  The firm also provides venture capital and merchant
 banking services to the investment and corporate communities, and asset
 management services to individuals and institutions.
 
     This news release contains forward-looking statements, which are subject
 to various risks and uncertainties, including the conditions of the securities
 markets, generally, and acceptance of the Company's services within those
 markets and other risks and factors identified from time to time in the
 Company's filings with the Securities and Exchange Commission.  Actual results
 could differ materially from those currently anticipated.
 
     The common shares of First Albany Companies Inc. are traded on NASDAQ
 under the symbol "FACT."
 
 
                          FIRST ALBANY COMPANIES INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
     (In thousands of dollars except                    Three Months Ended
      for per share amounts)                          March 31,     March 31,
                                                        2001           2000
     Revenues
      Commissions                                      $3,851         $4,771
      Principal transactions                           28,109         15,377
      Investment banking                                3,916          8,061
      Investment (losses) gains                         (853)          2,163
      Interest income                                   7,446         19,045
      Fees and other                                    1,566          1,366
 
     Total revenues                                    44,035         50,783
      Interest expense                                  6,706         17,181
 
     Net revenues                                      37,329         33,602
 
     Expenses (excluding interest)
      Compensation and benefits                        28,960         24,407
      Clearing, settlement and brokerage costs            678            798
      Communications and data processing                2,531          2,248
      Occupancy and depreciation                        1,808          1,359
      Selling                                           1,634          1,436
      Other                                             1,503          1,224
 
     Total expenses (excluding interest)               37,114         31,472
 
     Operating income                                     215          2,130
      Equity in losses of affiliates                    (102)          (597)
 
     Income before income taxes                           113          1,533
      Income tax expense                                   45            657
 
     Income from continuing operations                     68            876
      Income from discontinued operations,
       net of taxes                                                    2,187
 
     Net income                                           $68         $3,063
 
 
     Per share data:
      Basic earnings:
       Continued operations                              0.01           0.10
       Discontinued operations                                          0.27
 
      Net income (loss) per share                       $0.01          $0.37
 
      Diluted earnings:
       Continued operations                              0.01           0.09
       Discontinued operations                                          0.22
 
      Net income (loss) per share                       $0.01          $0.31
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X86858079
 
 SOURCE  First Albany Companies Inc.