Friedman, Billings, Ramsey Group Reports First Quarter 2001 Results

Apr 26, 2001, 01:00 ET from Friedman, Billings, Ramsey Group, Inc.

    ARLINGTON, Va., April 26 /PRNewswire/ -- Friedman, Billings, Ramsey Group,
 Inc. (NYSE:   FBR) today reported a net loss of $6.1 million, or $(0.12) diluted
 per share for the quarter ended March 31, 2001, versus net income of $6.4
 million, or $0.12 diluted per share for the same quarter last year.
     Revenues (excluding technology venture capital gains and losses) for the
 first quarter were $29.6 million compared with $25.0 million for the first
 quarter of 2000.  Reported revenues were $22.5 million compared with $66.2
 million for the first quarter of 2000.
     "The deterioration of values in the technology sector, specifically in
 some of the private company holdings of our venture funds, contributed $5
 million of the loss in the quarter," said Chairman and Co-Chief Executive
 Officer Emanuel J. Friedman.  "Importantly, we began to see renewed activity
 in our other three sectors -- financial services, real estate and energy -- in
 the first quarter.  We are disappointed with the loss this quarter, however
 since inception our technology venture capital efforts have generated
 excellent returns for our shareholders.  As of March 31, 2001, FBR's
 investment in our technology venture capital funds was $17.4 million."
     The company reported institutional brokerage revenue of $12.5 million, up
 from $11.7 million in the first quarter of 2000; base asset management fee
 revenue of $2.9 million, up from $2.2 million in the first quarter of 2000;
 and interest, dividends, and other revenue of $2.2 million, up from $2.0
 million in the first quarter of 2000.
     "In this quarter we saw continued growth in our predictable revenue
 streams, including institutional brokerage, base asset management fees, and
 spread income," said Vice Chairman and Co-Chief Executive Officer Eric F.
 Billings.  "These revenue streams were running at an annualized run rate of
 $70.4 million in the quarter," he said.
     "We are also encouraged to see the return of capital to sectors such as
 financial institutions, real estate and energy," Mr. Billings continued.  "In
 1998 we were one of the last investment banks to execute transactions in the
 financial and REIT sectors before the market break that virtually closed the
 capital markets to new issues in these sectors.  And we were the first to
 execute transactions again in the first quarter of 2001, with three lead-
 managed mortgage REIT transactions.  Indeed, we are encouraged by the level of
 activity in our investment banking business and by the growth in our
 institutional brokerage and asset management businesses," he said.
     During the quarter, FBR announced the opening of new offices in Dallas and
 New York.  At the end of the quarter, the company also announced the opening
 of an office in Cleveland and the completion of its previously-announced
 acquisition of Money Management Associates (MMA) and Rushmore Trust and
 Savings (now FBR National Bank & Trust).  First quarter results reflect no
 revenues from these new initiatives.
     FBR had 49.4 million common shares outstanding, shareholders' equity of
 $211.0 million, and book value per share of $4.27 as of March 31, 2001.  Total
 assets as of March 31, 2001, were $238.0 million, including cash and liquid
 assets of $84.5 million. ($17.5 million was subsequently used to acquire MMA
 and Rushmore).
     A live webcast of FBR's conference call will be available at 9 a.m.
 (Eastern Time) via: http://www.vcall.com/NASApp/VCall/EventPage?ID=73600 .
 Replays of the webcast will be available afterward.
     Friedman, Billings, Ramsey Group, Inc. (NYSE:   FBR) is a financial holding
 company for investment banking, institutional brokerage, specialized asset
 management, and banking products and services.  FBR provides capital and
 financial expertise throughout a company's lifecycle and affords investors
 access to a range of proprietary financial products and services.
 Headquartered in the Washington metropolitan area, FBR has offices in
 Arlington and Reston, Va., Bethesda, Md., Boston, Charlotte, Chicago,
 Cleveland, Dallas, Irvine, Ca., New York, Portland, Seattle, London, and
 Vienna.  For more information, see http://www.fbr.com .
     Statements concerning future performance, developments, or events,
 expectations or plans and objectives for future operations or for growth and
 market forecasts, and any other guidance on present and future periods,
 constitute forward-looking statements that are subject to a number of factors
 risks and uncertainties that might cause actual results to differ materially
 from stated expectations or current circumstances.  These factors include but
 are not limited to competition among venture capital firms and the high degree
 of risk associated with venture capital investments, the effect of demand for
 public offerings and advisory services, activity in the secondary securities
 markets, available technologies, competition for business and personnel, and
 general economic, political and market conditions.
     Note to Editors:  1 page of financial information follows this page.
 
         FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
         (Dollars in thousands, except per share amounts)
         (Unaudited)
                                               Three months ended
                                                March 31,
                              2001            %          2000            %
     REVENUES:
     Investment banking    $  9,898         44.1%      $16,696         25.2%
     Institutional
      brokerage              12,537         55.8%       11,677         17.6%
     Asset management        (2,222)        -9.9%       35,877         54.2%
     Interest, dividends
      and other               2,240         10.0%        1,993          3.0%
 
         Total revenues      22,453        100.0%       66,243        100.0%
 
     EXPENSES:
     Compensation and
      benefits               16,251         72.4%       46,223         69.8%
     Business development
      and professional
      services                5,326         23.7%        4,617          7.0%
     Interest                    81          0.4%          222          0.3%
     Other                    6,934         30.9%        6,625         10.0%
 
         Total expenses      28,592        127.3%       57,687         87.1%
 
         Net (loss) income
          before income
          taxes              (6,139)       -27.3%        8,556         12.9%
 
     Provision for
      income taxes               --          0.0%        2,139          3.2%
 
         Net (loss) income  $(6,139)       -27.3%      $ 6,417          9.7%
 
 
     Basic (loss) earnings
      per share             $ (0.12)                   $  0.13
     Diluted (loss) earnings
      per share             $ (0.12)                   $  0.12
 
     Weighted average
      shares - basic         49,389                     49,021
     Weighted average
      shares - diluted       49,389                     51,353
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE Friedman, Billings, Ramsey Group, Inc.
    ARLINGTON, Va., April 26 /PRNewswire/ -- Friedman, Billings, Ramsey Group,
 Inc. (NYSE:   FBR) today reported a net loss of $6.1 million, or $(0.12) diluted
 per share for the quarter ended March 31, 2001, versus net income of $6.4
 million, or $0.12 diluted per share for the same quarter last year.
     Revenues (excluding technology venture capital gains and losses) for the
 first quarter were $29.6 million compared with $25.0 million for the first
 quarter of 2000.  Reported revenues were $22.5 million compared with $66.2
 million for the first quarter of 2000.
     "The deterioration of values in the technology sector, specifically in
 some of the private company holdings of our venture funds, contributed $5
 million of the loss in the quarter," said Chairman and Co-Chief Executive
 Officer Emanuel J. Friedman.  "Importantly, we began to see renewed activity
 in our other three sectors -- financial services, real estate and energy -- in
 the first quarter.  We are disappointed with the loss this quarter, however
 since inception our technology venture capital efforts have generated
 excellent returns for our shareholders.  As of March 31, 2001, FBR's
 investment in our technology venture capital funds was $17.4 million."
     The company reported institutional brokerage revenue of $12.5 million, up
 from $11.7 million in the first quarter of 2000; base asset management fee
 revenue of $2.9 million, up from $2.2 million in the first quarter of 2000;
 and interest, dividends, and other revenue of $2.2 million, up from $2.0
 million in the first quarter of 2000.
     "In this quarter we saw continued growth in our predictable revenue
 streams, including institutional brokerage, base asset management fees, and
 spread income," said Vice Chairman and Co-Chief Executive Officer Eric F.
 Billings.  "These revenue streams were running at an annualized run rate of
 $70.4 million in the quarter," he said.
     "We are also encouraged to see the return of capital to sectors such as
 financial institutions, real estate and energy," Mr. Billings continued.  "In
 1998 we were one of the last investment banks to execute transactions in the
 financial and REIT sectors before the market break that virtually closed the
 capital markets to new issues in these sectors.  And we were the first to
 execute transactions again in the first quarter of 2001, with three lead-
 managed mortgage REIT transactions.  Indeed, we are encouraged by the level of
 activity in our investment banking business and by the growth in our
 institutional brokerage and asset management businesses," he said.
     During the quarter, FBR announced the opening of new offices in Dallas and
 New York.  At the end of the quarter, the company also announced the opening
 of an office in Cleveland and the completion of its previously-announced
 acquisition of Money Management Associates (MMA) and Rushmore Trust and
 Savings (now FBR National Bank & Trust).  First quarter results reflect no
 revenues from these new initiatives.
     FBR had 49.4 million common shares outstanding, shareholders' equity of
 $211.0 million, and book value per share of $4.27 as of March 31, 2001.  Total
 assets as of March 31, 2001, were $238.0 million, including cash and liquid
 assets of $84.5 million. ($17.5 million was subsequently used to acquire MMA
 and Rushmore).
     A live webcast of FBR's conference call will be available at 9 a.m.
 (Eastern Time) via: http://www.vcall.com/NASApp/VCall/EventPage?ID=73600 .
 Replays of the webcast will be available afterward.
     Friedman, Billings, Ramsey Group, Inc. (NYSE:   FBR) is a financial holding
 company for investment banking, institutional brokerage, specialized asset
 management, and banking products and services.  FBR provides capital and
 financial expertise throughout a company's lifecycle and affords investors
 access to a range of proprietary financial products and services.
 Headquartered in the Washington metropolitan area, FBR has offices in
 Arlington and Reston, Va., Bethesda, Md., Boston, Charlotte, Chicago,
 Cleveland, Dallas, Irvine, Ca., New York, Portland, Seattle, London, and
 Vienna.  For more information, see http://www.fbr.com .
     Statements concerning future performance, developments, or events,
 expectations or plans and objectives for future operations or for growth and
 market forecasts, and any other guidance on present and future periods,
 constitute forward-looking statements that are subject to a number of factors
 risks and uncertainties that might cause actual results to differ materially
 from stated expectations or current circumstances.  These factors include but
 are not limited to competition among venture capital firms and the high degree
 of risk associated with venture capital investments, the effect of demand for
 public offerings and advisory services, activity in the secondary securities
 markets, available technologies, competition for business and personnel, and
 general economic, political and market conditions.
     Note to Editors:  1 page of financial information follows this page.
 
         FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
         (Dollars in thousands, except per share amounts)
         (Unaudited)
                                               Three months ended
                                                March 31,
                              2001            %          2000            %
     REVENUES:
     Investment banking    $  9,898         44.1%      $16,696         25.2%
     Institutional
      brokerage              12,537         55.8%       11,677         17.6%
     Asset management        (2,222)        -9.9%       35,877         54.2%
     Interest, dividends
      and other               2,240         10.0%        1,993          3.0%
 
         Total revenues      22,453        100.0%       66,243        100.0%
 
     EXPENSES:
     Compensation and
      benefits               16,251         72.4%       46,223         69.8%
     Business development
      and professional
      services                5,326         23.7%        4,617          7.0%
     Interest                    81          0.4%          222          0.3%
     Other                    6,934         30.9%        6,625         10.0%
 
         Total expenses      28,592        127.3%       57,687         87.1%
 
         Net (loss) income
          before income
          taxes              (6,139)       -27.3%        8,556         12.9%
 
     Provision for
      income taxes               --          0.0%        2,139          3.2%
 
         Net (loss) income  $(6,139)       -27.3%      $ 6,417          9.7%
 
 
     Basic (loss) earnings
      per share             $ (0.12)                   $  0.13
     Diluted (loss) earnings
      per share             $ (0.12)                   $  0.12
 
     Weighted average
      shares - basic         49,389                     49,021
     Weighted average
      shares - diluted       49,389                     51,353
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X73749872
 
 SOURCE  Friedman, Billings, Ramsey Group, Inc.