THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, August 11, 1994 TAG: 9408110584
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: By TOM SHEAN, STAFF WRITER
LENGTH: Short : 40 lines
Scott & Stringfellow Financial Inc., parent of the securities brokerage firm Scott & Stringfellow Inc., said Wednesday that its net income tumbled 48 percent for the April-through-June quarter.
Blaming reduced revenues from its investment banking and securities trading, the Richmond-based company also reported a 15 percent decline in net income for the fiscal year ended June 24.
Scott & Stringfellow's brokerage subsidiary has 205 investment brokers and 25 offices in Virginia, West Virginia and North Carolina. The company said it earned $501,000 for the April-through-June period, compared with $963,000 in the year-earlier quarter. Its per-share earnings dropped to 24 cents from 45 cents. Revenues for the recent quarter fell 5 percent to $12.43 million from $13.04 million in the 1993 fourth quarter.
The biggest reason for the declines in fourth-quarter and full-year earnings was the rise in interest rates this year, which reduced the company's fees from municipal-bond underwriting and its profits from bond trading, said Steven C. DeLaney, Scott & Stringfellow's chief financial officer.
For the fiscal year, net income fell to $2.96 million from $3.48 million in the previous year. Per-share earnings were $1.40, compared with $1.65 in fiscal 1993.
``We still feel pretty good about the year's results,'' DeLaney said. ``Even though our earnings were down 15 percent, we were coming off a record year'' in fiscal 1993.
Revenues for the latest fiscal year rose 8 percent to $52.12 million from $48.15 million in fiscal 1993. However, expenses climbed 11 percent to $47.44 million, largely because of increases in employee compensation, the company said. by CNB