Pinnacle Global Group, Inc. is a holding company that provides a broad range of financial services through its wholly owned operating entities, which include Harris Webb & Garrison, Inc., Pinnacle Management & Trust Company, and Spires Financial L.P. Pinnacle's financial services include investment banking, merchant banking, institutional and retail brokerage, investment management, secondary market loan and loan servicing placement and trust related services. Pinnacle serves a diverse group of institutional, corporate and individual clients predominantly located within the southwestern United States. However, its fixed-income securities business is conducted for clients throughout the United States, Europe and Japan, and its loan and servicing placement business is conducted on a national basis.
At September 30, 1999, the Company had $112 million in total assets, including $21.3 million of goodwill. The Company's cash, cash equivalents and liquid assets (including securities available for sale, receivables from broker-dealers and clearing organizations, deposits with clearing brokers and securities owned) represented about 74% of the Company's total assets, or $83 million. Shareholders' equity was $62.5 million, resulting in a book value of $8.75 per share.
Revenues for the nine months ended September 30, 1999 were $15.2 million compared to $1.2 million in 1998. For the nine month period, income from continuing operations was $887,000, or $0.13 per share, compared to $59,000, or $0.02 per share, in the same period last year. Income from continuing operations, plus goodwill amortization, totaled $0.22 per share, compared to $0.02 per share in 1998. During the first nine months of 1999, the Company incurred approximately $400,000 of non-recurring legal, accounting and insurance expenses.
Mr. Garrison added, "As part of our strategy to expand our financial services business, we announced on October 13 a merger between Harris Webb & Garrison, Inc., our investment banking subsidiary, and Sanders Morris Mundy, a privately owned investment bank also based in Houston. The merger is expected to be completed early in 2000, following shareholder and regulatory approvals. We are excited about the new firm, to be known as Sanders Morris Harris, and expect the accretive effect on our earnings growth to immediately benefit Pinnacle shareholders."
Book Value (mrq*) $8.78
Cash (mrq*) $10.47
Total Cash (mrq) $74.6M
Market Capitalization $26.7M
Shares Outstanding 7.12M
Float 5.30M
HOUSTON, Jan. 31 /PRNewswire/ -- Pinnacle Global Group, Inc. (Nasdaq: PING) today announced that it has completed the merger of Harris Webb & Garrison, Inc., its investment banking subsidiary, with Sanders Morris Mundy Inc., a privately owned investment bank. The new company will be known as Sanders Morris Harris Inc., a wholly owned operating subsidiary of Pinnacle Global Group, Inc. and the largest Texas-based investment bank.
Momentum Traders Network believes that PING share value will increase by a significant amount in the very short term in order to reflect the current post merger value of the company.
In addition, there is a high potential for further service upgrade/expansion into the Internet sevices platform.
