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Paulson Capital Corp. (PLCC) filed Quarterly Report for the period ended 2011-09-30.
Paulson Capital Corp. has a market cap of $4.6 million; its shares were traded at around $0.79 with and P/S ratio of 0.2.
This is the annual revenues and earnings per share of PLCC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of PLCC.
Highlight of Business Operations:
Because we operate in the financial services industry, our revenues and earnings are substantially affected by general conditions in financial markets. Further, past performance is not necessarily indicative of results to be expected in future periods. In our securities brokerage business, the amount of our revenues depends on levels of market activity requiring the services we provide. Our corporate finance activity, which consists of acting as the managing underwriter of initial and follow-on public offerings, private investments in public equity (“PIPEs”) and private placements for smaller companies, is similarly affected by the strength of the market for new equity offerings, which has historically experienced substantial cyclical fluctuation. During the first nine months of 2011, global IPO volume fell slightly to 280 offerings for proceeds of $116 billion compared to 305 IPO's for proceeds of $129 billion in the first nine months of 2010. The steepest declines occurred in the third quarter of 2011 as recent public market volatility, concerns about Europe and a heightened sense of economic uncertainly created some turbulence in the financial markets. In the third quarter, there were 59 IPO's globally for proceeds of $23 billion, which was down from the 125 global IPO's which raised $56 billion in the second quarter. In the U.S., there were 96 IPO's in the first nine months of 2011 for proceeds of $29.2 billion compared to 97 IPO's with proceeds totaling $14.6 billion in the first nine months of 2010. Although the near-term predictions for the U.S. economy remain weak, and the European debt crisis remains unsettled, the outlook for global IPO's is encouraging as the filing activity suggests a large number of private companies are interested in moving forward with the IPO process and are optimistic that conditions will improve. There are currently 336 companies in the global pipeline, which are targeting to raise $180 billion in gross proceeds. Although we attempt to match operating costs with activity levels, many of our expenses are either fixed or difficult to change on short notice. Accordingly, fluctuations in brokerage and corporate finance revenues tend to result in sharper fluctuations, on a percentage basis, in net income or loss.Commissions declined 8.6% during the third quarter ended September 30, 2011 compared to the third quarter of 2010, but declined only 2.7% for the nine-month period ended September 30, 2011 compared to the nine-month period ended September 30, 2010. The declines in commission revenue reflect the ongoing weaknesses in the U.S. markets and the heightened sense of overall economic uncertainty, combined with a decrease in our number of registered representatives. We had 98 registered representatives at September 30, 2011, compared to 104 at September 30, 2010.
Commissions and salaries decreased $294,000 in the third quarter of 2011 compared to the third quarter of 2010. The decrease is consistent with the decline in commission revenue from those same periods. Commission and salaries increased $125,000 in the first nine months of 2011 compared to the first nine months of 2010. The increase was primarily due to start-up costs for the Paulson Wealth Advisors division.
Deferred revenue of $268,000 at September 30, 2011 was related to amounts received from our clearing firm pursuant to a five-year agreement with two, one-year extensions, and is being amortized at the rate of $12,755 per month through June 2013.
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