Southwest Securities Group Reports Sharp Increase In 2nd Quarter Revenues, Earnings

Business Wire, Jan 18, 1996

DALLAS--(BUSINESS WIRE)--Jan. 18, 1996--Southwest Securities Group (SWST-Nasdaq) today reported sharply higher revenues and net income for the quarterly and six-month periods ended Dec. 29, 1995. For the second quarter ended Dec. 29, 1995, net income increased 304 percent to $3,347,000, earnings per share rose 280 percent to 38 cents, and revenues gained 70 percent to $46,313,000, compared with net income of $827,000, earnings per share of 10 cents and revenues of $27,170,000 in the same quarter of fiscal 1995. Net income and earnings per share were also approximately 27 percent higher than in the immediately preceding quarter.

For the six month period ended Dec. 29, net income increased 237 percent to 5,971,000, earnings per share rose 209 percent to 68 cents, and revenues gained 59 percent to $87,236,000, compared with net income of $1,773,000, earnings per share of 22 cents, and revenues of $54,901,000 in the same period of the prior fiscal year. "Revenues increased in substantially all of our primary businesses," said Chief Executive Officer Raymond E. Wooldridge, "and we were able to maintain control on fixed costs. Our core securities clearing business continued to improve with the addition of new correspondents and continuing strong market conditions."

Wooldridge added that the number of securities transactions processed more than doubled from the volume of the second quarter a year ago. He said increased volume and favorable market conditions translated into improved results for the company's retail brokerage and fixed income divisions as well.

Return on equity rose to 18 percent from 5 percent in the year earlier quarter. At Dec. 29, Southwest was providing execution and clearing services for 216 correspondent broker/dealer firms compared with 191 at the same time a year ago. Book value per share increased to $8.77.

Southwest Securities Group, Inc. is a Dallas-based holding company. Through subsidiaries, it provides fully disclosed securities clearing and related services, securities brokerage, investment banking and asset management services. Southwest Securities Group common stock is traded on the Nasdaq National Market System under the symbol "SWST." -0-