 NEW YORK, Aug. 13, 2020 GLOBE NEWSWIRE -- National Holdings Corporation NASDAQ: NHLD National or the Company, a leading full service independent brokerage, investment banking, trading and asset management firm providing diverse services including tax preparation, today announced its financial results for the 2020 fiscal third quarter. Financial Highlights: Record revenue of 61.7 million versus 50.8 million for the fiscal 2019 third quarter. Loss before other income and income taxes was 0.6 million versus a profit of 1.2 million in the prior-year quarter. Net loss of 0.4 million compared to net income of 1.1 million recorded in the prior-year quarter. The current quarter was negatively impacted by several expense items. The net loss narrowed substantially from the 2.5 million recorded in the fiscal 2020 second quarter. Quarterly adjusted EBITDA of 2.2 million, up from the 2.0 million recorded in the third quarter of fiscal 2019. Cash of 30.6 million and no term debt as of June 30, 2020, versus cash of 30.4 million and no term debt as of September 30, 2019. Total stockholders equity of 47.8 million as of June 30, 2020, versus 51.6 million as of September 30, 2019.Management CommentaryMichael Mullen, Chief Executive Officer of National stated, Despite the disruption brought on by the COVID-19 pandemic, we finished the quarter with a record 61.7 million in revenue. Commissions and related revenue was particularly strong at 34 million, as the market volatility increased trading volume. Banking and private shares revenue began the quarter non-existent, as the market volatility caused by the pandemic forced issuers to the sidelines and delayed other opportunities. However, both of these important business lines rebounded in the last five weeks of the quarter to finish at 14.7 million. Investment advisory revenue continues to grow due to our successful recruiting and onboarding of high caliber advisors with large books of advisory business. We finished the quarter with 8.7 million in investment advisory revenue, which is up 43 over the prior years quarter, not including the carried interest from the successful liquidation of one of our private shares special purpose vehicles. In addition, the Winslow Evans Crocker business is now recognized in our financial statements, which contributed as well to our advisory growth. Tax revenue continues to grow, and due to the tax filing deadline having been extended to July 15, we expect the contribution of tax services to our fiscal fourth quarter will exceed normal revenue levels.He continued, We finished the quarter with a loss of 0.4 million and an increase in adjusted EBITDA to 2.2 million. Our profitability was impacted by the pandemic causing lower revenue contribution of our banking and private shares businesses, which contribute our highest margins, and certain expense items not related to our core operating performance.Lastly, I am pleased to announce that FINRA has approved the Continuing Membership Application CMA or 1017 for our United Advisors acquisition. We expect that deal to close in our fiscal fourth quarter and to be accretive to our business in Fiscal 2021.RevenueMarket volatility drove another strong brokerage commission revenue quarter. This combined with a positive recovery in investment banking and private shares, and continuing growth in our investment management business, all helped to produce a record revenue quarter totaling 61.7 million. Commissions and related revenue increased by 9.6 million, or 40, from the third quarter of fiscal 2019, to 34 million on market volatility induced increases in trading volume, and the consolidation of Winslow, Evans Crocker Winslow in fiscal 2020. The prior-year period was weaker than normal due to lingering negative economic pressures from early in the year including trade negotiations and the U.S. Government shutdown. For the nine-month period, revenue of 94.7 million increased 19.9 million, or 27, from 74.9 million in the prior-year period. The Winslow consolidation, pandemic induced market volatility over the last two quarters, and positive registered representative recruiting all contributed to the increase versus the weaker prior year period. Investment banking revenue decreased by 1.1 million to 14.7 million compared to the third quarter of fiscal 2019, down 7. This business recovered nicely however from the very weak fiscal second quarter of 2020 7.6 million. The emergence of the Coronavirus during this period has had a significant impact on the number of deals and therefore revenue generating capability of this business. For the nine-month period, investment banking revenue decreased 15.2 million to 37.5 million, down 29. We anticipate a recovery occurring in this business as our pipeline continues to strengthen, however the declines in year-to-date revenue have had a negative impact on our gross margins as this is our most profitable revenue category. Revenue from investment advisory increased by 1.1 million to 8.7 million, a 15 increase from the prior quarter. Excluding carried interest recognition in the prior-year quarter, revenue growth on operating revenue in this category increased 43 during the quarter. Our strategy of encouraging more balanced portfolios and continuing to recruit high quality registered representatives is working, as assets under management and therefore recurring revenue continued to grow in the quarter. The addition of Winslow in fiscal 2020 has also contributed to AUM and revenue growth. For the nine-month period, revenue increased to 25.4 million from 18.9 million, up 6.4 million, or 34 from the prior-year period. Excluding carried interest in the year-to-date period, revenue increased 45 over the nine months. Tax preparation and accounting revenue increased by 0.1 million in the quarter, up 5 from the same quarter of fiscal 2019. We continue to acquire small firms and expect continued growth on this new client acquisition. We also expect our fiscal fourth quarter tax preparation revenue to exceed normal revenue generation as the extended IRS deadline to July 15 will push revenue in to our fiscal fourth quarter. For the nine-month period, revenue increased to 8.0 million from 7.6 million a year ago, up 6 from the prior-year period. Net dealer inventory gains of 1.4 million in the current quarter were the result of approximately 0.5 million of unrealized gains recorded on the value of the companys investment holdings, and the impact of Winslows trading and overall client trading flow. For the nine-month period, revenue increased 0.5 million to 1.4 million.ExpensesTotal expenses increased to 62.4 million in the current fiscal year quarter, up 12.8 million or 26 over the comparative-year quarter. In addition to the inclusion of Winslow in the current year, sales costs were responsible for the remaining increase as the companys revenue has increased in the lower margin commission and advisory businesses. Professional fees for services to the company primarily associated with the recent B. Riley proposal were offset by lower other administrative expenses, primarily arbitration fees, when compared to the prior-year quarter. For the nine-month period, total expenses increased 16.7 million to 173.6 million, from 157.0 million a year ago. Consistent with the current quarter, sales costs accounted for the majority of the increase over the period. Combined with sales costs, the inclusion of Winslows operating costs this year accounted for the overall increase. Professional fees increased on costs associated with the B. Riley proposal and business acquisition and other matters, however these increases were offset by lower arbitration and litigation expenses recognized versus the prior-year period.EarningsThe loss before other income and income taxes totaled 0.6 million, versus income of 1.2 million in the fiscal 2019 third quarter. For the nine months, the loss before other income and income taxes was 6.2 million versus a loss of 1.4 million in the prior-year nine-month period.The net loss attributable to common shareholders was 0.7 million in the fiscal third quarter, compared to income of 0.2 million in the prior-year quarter, and a loss of 4.1 million for the nine-month period in the current year, versus a loss of 1.6 million for the prior-year nine-month period. These results produced a net loss per share attributable to common shareholders of 0.05 in the current quarter versus income of 0.02 per share in the prior-year quarter, both basic and fully diluted. For the nine-month period, a net loss per share attributable to common shareholders of 0.31 per share, both basic and fully diluted, versus a loss of 0.13 per share in the prior year-to-date period.Adjusted EBITDA increased to 2.2 million from the 2.0 million recorded in the prior-year quarter, but declined 2.4 million to 1.8 million from the 4.2 million reported in the year-to-date period in fiscal 2019. Balance Sheet As of June 30, 2020 National had 30.6 million of cash, versus 30.4 million as of September 30, 2019. The Companys balance sheet remains free of any term debt. Non-GAAP MeasuresThe Company considers earnings before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, an important indicator in evaluating our business on a consistent basis across various periods. EBITDA, as adjusted, enables our Board and management to monitor and evaluate our core operating performance on a consistent basis. The Company uses EBITDA, as adjusted, as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions regarding future operating investments and potential acquisitions. 