Announces Quarterly Cash Dividend NEW YORK, Nov. 10
/PRNewswire-FirstCall/ -- Pink OTC Markets Inc. (Pink Sheets: PINK)
today announced strong revenues and net income for the three months
and nine months ended September 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20090708/NY43125LOGO) For the
three months ended September 30, 2009, revenues totaled $5.7
million, an increase of $0.7 million, or 13.4%, compared to the
prior year's third quarter results of $5.1 million. Net Income for
the third quarter of 2009 rose 143.5% to $1.0 million from $0.4
million in the third quarter of 2008. Net Income per weighted
average basic share increased 138% to $0.093 and net income per
weighted average fully diluted share increased 136% to $0.092,
respectively, compared to the third quarter of 2008 of $0.039 per
weighted average basic and fully-diluted share. "Our quarterly and
year-to-date growth in revenues and net income is primarily due to
solid revenue growth in our Issuer Services and Market Data
Licensing businesses, a stabilizing of activities in the
broker-dealer community for our Trading Services business, and
strong expense management," stated R. Cromwell Coulson, President
and Chief Executive Officer. Third Quarter Results Third quarter
revenues increased 13.4% to $5.7 million compared to $5.1 million
in the three months ended September 30, 2008. Trading Services
revenues increased to $2.8 million, or 6.6%, and accounted for
49.0% of total revenues compared to $2.6 million and 52.1% of total
revenues for the third quarter of 2008. The revenue growth is
attributable to increased Pink Quote(TM) usage, partially offset by
a lesser number of broker-dealers subscribing to the Trading
Services suite of products and services. Market Data Licensing
revenues posted a strong 19.5% increase to $2.1 million, or 36.6%
of total revenues, in the third quarter of 2009 compared to $1.8
million, or 34.7% of total revenues for the same period in 2008.
The increase in Market Data revenues was due to an increased level
of market data redistributors subscribing to the various enterprise
and subscriber market data licenses offered. Issuer Services
revenues for the quarter grew by $0.2 million, or 35.8%, to $0.7
million and accounted for 12.7% of total revenues compared to $0.5
million, and 10.6% of total revenues, for the same period in 2008.
The growth in Issuer Services revenues was attributable to both new
OTCQX® listing fees and new and greater renewal subscription fees
associated with one or more of the Issuer Services suite of
products and services. Website Advertising revenues in the third
quarter of 2009 decreased by 23.4% to $0.1 million, or 1.7% of
total revenues, compared to $0.1 million, or 2.5% of total revenues
in the third quarter of 2008. "During the quarter we saw increased
activity in the OTC markets as the global capital markets situation
began to stabilize," continued Mr. Coulson. "Our OTCQX listed
companies grew by 77% year-to-year, as 30 new investor-focused
companies chose to list their OTC securities on the
quality-controlled OTCQX marketplace and offer investors trading
transparency and superior information. As well, the combination of
a greater number of OTC securities, heightened investor interest in
such securities, and the breadth and depth of our OTC security
information resulted in greater Market Data Licensing revenues.
Finally, during all of 2009, we achieved significant cost
efficiencies in several variable-based expense areas that also
contributed to our quarterly and year-to-date results." Operating
expenses decreased 5.9% during the third quarter to $4.1 million,
or 71% of revenues, from $4.3 million, or 85.4% of revenues, in the
third quarter of 2008. Operating income in the third quarter rose
143.0%, or $1.0 million, to $1.6 million compared to $0.7 million
in the third quarter of 2008 and operating margin increased to
28.4% compared to 13.3% for the third quarter 2008. In both cases,
the growth was attributable to greater revenues across the three
main businesses and lower operating expenses. "We believe the OTCQX
marketplace has evolved from development stage to market acceptance
stage in 2009," stated Mr. Coulson. "With world-leading issuers
traded on OTCQX and the opening of the OTCQX Market Center in New
York, we have been able to reduce our advertising and travel and
entertainment expenses associated with OTCQX business development."
Weighted average basic shares outstanding for the third quarter
were 10,320,950, an increase of 2.4%, compared to 10,080,309 basic
shares for the third quarter of 2008. Weighted average fully
diluted shares outstanding for the third quarter were 10,525,176,
an increase of 3.1%, compared to 10,206,714 fully diluted shares
for the third quarter of 2008. Nine Months Results Revenues for the
nine months ended September 30, 2009 totaled $16.0 million, an
increase of $1.1 million, or 7.3%, compared to $14.9 million in the
first nine months of 2008. Trading Services revenues decreased 1.4%
to $8.0 million, or 49.8% of firm revenues, from $8.1 million, or
54.2% of firm revenues, for the first nine months of 2008, due to a
decline in the number of broker-dealers and traders subscribing to
our products and services; however, the rate of decline was lower
than the rate of decline we experienced in prior quarters, and
partially offset by increased Pink Quote usage. As with the third
quarter results in Issuer Services and Market Data Licensing, both
businesses posted year-to-year revenue growth due to increased
subscribers and market data distributors, respectively. Market Data
Licensing posted revenues of $5.8 million for the period,
representing 36.2% of total revenues, and an increase of $0.8
million, or 16.6%, from the $5.0 million, or 33.3% of total
revenues posted in the first nine months of 2008. Issuer Services
recorded revenues for the first nine months of 2008 of $2.0
million, 12.2% of total revenues, and up by $0.5 million, or 37.5%,
from the first nine months of 2008 results of $1.4 million, or 9.5%
of total revenues. Operating expenses totaled $12.0 million, or
75.0% of revenues, for the nine months ended September 30, 2009,
representing a decrease of $0.1 million, or 1.0%, from $12.1
million, or 81.3% of revenues, for the comparable period in 2008.
Operating income rose $1.2 million, or 48.2%, to $3.8 million for
the first nine months of 2009 compared to $2.6 million for the same
period last year. Operating margin rose to 23.7% for the first nine
months of 2009 compared to 17.2% for the same period in 2008, due
to increased revenues in Issuer Services and Market Data Licensing
and reductions in operating expenses, partially offset by lower
comparable revenues in Trading Services and Website Advertising.
Net Income for the first nine months of 2009 totaled $2.2 million,
an increase of $0.7 million, or 47.1%, compared to the pro-forma
Net Income results of $1.5 million for the first nine months of
2008. Net Income per weighted average basic share increased 45% to
$0.218 and net income per weighted average fully diluted share
increased 45% to $0.215 compared to the first nine months of 2008
of $0.151 per weighted average basic and $0.149 per weighted
average fully diluted share. Weighted average basic shares
outstanding for the first nine months of 2009 were 10,203,543, or
an increase of 1.6%, compared to 10,040,397 basic shares for the
first nine months of 2008. Weighted average fully diluted shares
outstanding for the third quarter were 10,346,669, or an increase
of 1.6%, compared to 10,183,651 fully diluted shares for the first
nine months third of 2008. Pink OTC Markets' Quarterly Report for
the period ending September 30, 2009 is available publicly at:
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=PINK&tabValue=4#getFilin
gs. Dividend Declaration - Quarterly Cash Dividend Contemporaneous
with the announcement of earnings for the three and nine month
periods ended September 30, 2009, Pink OTC Markets announced today
that its Board of Directors authorized a quarterly cash dividend on
its Class A common stock of $0.04 per share. The dividend is
payable on January 8, 2010 to stockholders of record on December
22, 2009. The ex-dividend date is December 18, 2009. This dividend
payment represents an increase in the quarterly cash dividend of
$.01 per share, or 33% from the prior dividend rate of $.03 per
share. R. Cromwell Coulson, President and Chief Executive Officer
stated, "The Board of Directors declared the first dividend payable
to shareholders in February 2009. Since then Pink OTC Markets has
paid two additional dividends to our shareholders. The Board and I
believe that it is in the best interests of our shareholders pay an
attractive dividend; in recognition of the strong revenue and
earnings growth in 2009, we are pleased to share these result with
our shareholders by increasing the quarterly cash dividend by $.01
per share to $.04 per share." On September 16, 2009, Pink OTC
Markets' Class A Common Stock began to be quoted in the U.S.
over-the-counter markets, on the Pink Sheets' Current Information
tier, under the ticker symbol PINK. About Pink OTC Markets Inc.
Pink OTC Markets Inc. (Pink Sheets: PINK) is a financial
information and technology services company that operates the
leading electronic quotation and trading system in the
Over-the-Counter, or OTC, securities market. The OTCQX and Pink
Sheets® marketplaces that we operate constitute, by dollar volume,
the third largest U.S. liquidity pool for trading public company
shares, after The NASDAQ Stock Market, Inc. and The New York Stock
Exchange. Our technology platform provides a comprehensive suite of
information products and trading services for OTC market
participants. Our products and services promote market
transparency, improve price discovery, facilitate regulatory
compliance, and increase the quality of issuer disclosure, to the
benefit of all OTC market participants. To learn more about how
Pink OTC Markets' products and services make OTC markets more
transparent, informed, and efficient, please visit our websites at
http://www.pinkotc.com/, http://www.pinksheets.com/ and
http://www.otcqx.com/ or contact us at . Pink OTC Markets is
headquartered in New York City. About OTCQX The OTCQX marketplace
is the premier tier of the U.S. Over-the-Counter market.
Investor-focused companies use the quality controlled OTCQX listing
platform to offer investors transparent trading, superior
information, and easy access through their regulated U.S.
broker-dealers. The innovative OTCQX platform offers companies and
their shareholders a level of marketplace services formerly
available only on a U.S. exchange. For more about OTCQX, visit
http://www.otcqx.com/. Forward-Looking Statements Information set
forth in this news release contains forward-looking statements,
which involve a number of risks and uncertainties that could cause
our actual results to differ materially from those reflected in the
forward-looking statements. Forward-looking statements can be
identified by use of the words "expect," "project," "may," "might,"
potential," and similar terms. Pink OTC Markets Inc. ("Pink OTC",
"we" or the "Company") cautions readers that any forward-looking
information is not a guarantee of future performance and that
actual results could differ materially from those contained in the
forward-looking information. Forward-looking statements involve a
number of risks, uncertainties or other factors beyond Pink OTC's
control. These factors include, but are not limited to, our ability
to implement our strategic initiatives, economic, political and
market conditions and price fluctuations, government and industry
regulation, U.S. and global competition and other factors. We
undertake no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.
Factors that could cause or contribute to such differences include,
but are not limited to, those discussed under the heading "Risk
Factors" in Item VIII of our Initial Company Information and
Disclosure Statement for the year ended December 31, 2008. We
undertake no obligation to revise or publicly release the results
of any revision to these forward-looking statements. Given these
risks and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. PINK OTC MARKETS INC.
and PINK SHEETS LLC CONDENSED STATEMENTS OF INCOME (in thousands,
except per share data) Three Months Ended Nine Months Ended
September 30, September 30, ------------------- -------------------
2009 (1) 2008 (1) 2009 (1) 2008 (2) ------- ------- ------- -------
Revenues from services $5,737 $5,059 $16,025 $14,940 Cost of
revenues 42 67 200 234 Operating expenses 4,064 4,320 12,023 12,141
----- ----- ------ ------ Income from operations 1,631 671 3,801
2,565 Other income (expense) (22) (9) (73) (16) --- -- --- ---
Income before provision for income taxes 1,609 662 3,728 2,549
Provision for income taxes Corporate income tax 645 266 1,499 659
LLC unincorporated business tax - - - 49 -- -- -- -- Net income
(historical) $963 $396 $2,229 $1,842 ==== ==== ====== ======
Historical income before provision for income taxes as reported
above N/A N/A 3,728 2,549 Pro-forma adjustments to reflect
corporate income taxes * Corporate income taxes: Historical N/A N/A
1,499 659 Pro-forma for LLC period* N/A N/A - 376 ------- -------
-- --- Total provision for corporate income taxes (pro-forma)* N/A
N/A 1,499 1,035 ------- ------- ----- ----- Net income (pro-forma)*
N/A N/A $2,229 $1,515 ======= ======= ====== ====== Net income per
share (pro-forma)* Basic* $0.093 $0.039 $0.218 $0.151
Fully-diluted* $0.092 $0.039 $0.215 $0.149 Weighted-average shares
outstanding (pro-forma)* Basic* 10,320,950 10,080,309 10,203,543
10,040,397 Fully-diluted* 10,525,176 10,206,714 10,346,669
10,183,651 (1) Unaudited (2) Includes the audited results for Pink
Sheets LLC for the three months ended March 31, 2008. PINK OTC
MARKETS INC. and PINK SHEETS LLC CONDENSED BALANCE SHEETS (in
thousands, except per share data) September 30, December 31, 2009
(1) 2008 (2) ------------ ----------- ASSETS Cash and cash
equivalents $2,895 $2,827 Other current assets 6,337 4,820 Property
and equipment, net 4,099 3,113 Intangible assets 401 435 Other
assets 525 238 --- --- Total assets $14,258 $11,433 ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities $5,314
$4,344 Long-term liabilities 2,418 2,708 Stockholder's' Equity
6,526 4,381 ----- ----- Total liabilities and stockholders' equity
$14,258 $11,433 ======= ======= (1) Unaudited (2) Audited
http://www.newscom.com/cgi-bin/prnh/20090708/NY43125LOGODATASOURCE:
Pink OTC Markets CONTACT: Media: Matt Sheldon of CCG Investor
Relations, +1-310-954-1346, , for Pink OTC Markets; or John Kallop,
CFO of Pink OTC Markets, +1-212-896-4420, Web Site:
http://www.pinkotc.com/ http://www.pinksheets.com/
http://www.otcqx.com/
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