National (NHLD) 23 Feb 192019 Q1 Earnings call transcript

Good morning everyone and welcome to National Holdings Corporation's First Quarter for Fiscal 2019 Earnings call. My name is Chelsea Nantz, Senior Vice President, Corporate Communications.

Joining me on today's call are four members of our executive leadership team: Michael Mullen, Chairman and Chief Executive Officer, Glenn Worman, President and Chief Financial Officer, Jonathan Rich, Executive Vice President and Head of Investment Banking, and John DeSena, our Chief Operating Officer. On today's call, we will update you on the company's first quarter results then open up the call for any questions. Participants are in listen-only mode and this call is being recorded. available XX website days. be for www.YourNational.com will next the replay on -- our -- A

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not filings Except XX, of required do available National and over and the does website on other at which to with Officer that the Forward-looking Mullen, other report We from forward-looking so. the National statements risks of are be beliefs Michael words such describe for like Form September Executive factors. rely Such of based We ended make our may update makes other disclaims or "believe" different "expect", and on investors are management website SEC's turn results to expressly National. caution call on and the and annual because to be these the as law, statements risks statements. year and as materially At statements the SEC "anticipate", our current unduly actual on are with "estimate" I'd any expectations associated forward-looking obligation in and may to XXXX of such words. this variety time, on Chairman a XXK and fiscal uncertainties Chief or typically SEC.gov. may time-to-time, by and not

our the Mullen, Communications. Earnings introduced XXXX Senior welcome Nantz and Vice Corporate Chelsea. who morning Chelsea Chelsea -- President, National newly-built com. of us also Chairman like Securities so firm's I call to social on under Michael Twitter Chief behind if me Good footprint, am And happen Fiscal our and Twitter dot That's the Quarter digital our genius -- rebuild up Thank and pages. www.YourNational.com. to us Officer media and look Executive user, National. a website, us our is on our please on LinkedIn you Corporate Update. of Facebook Corporation. Please and you, be @Your_National. Y-O-U-R out follow and our National everyone please follow check First is Please

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quarter. increased Turning quarter to again the in a the exceeded this pleased growth revenue at we of very gain business in in to Factoring million segment, fiscal to actually XX% Investment outsize in $X.X Management, XX% current first are the see this one-time XXXX, growth which quarter.

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potentially holistic practices to to We our offer areas where tax we and to do in services accounting business are actively more base. clients client purchasing management independent brokerage and increase our and investment

remaining and compensation million, Risk Our our other in expense are hiring due -- million total generation current and executive available of and to Investment continuing costs $X.X Enterprise was of expenses The true $XX.X this Management -- our the increase The that, quarter. to million specifically and Banking combined, in build $X.X number quarter increase $X.X operating professionals. current was variable majority a to increased million increase technology to our associated up of including revenue directly growing with the factors capabilities XX%. -- operating resources due --

will in our $XXX,XXX -- of of $X.X in loss trends. -- in details noted ago to define million stock non-operating our other As while inorganic plus were of all on we business earnings pre-tax The further factors a as our EBITDA year indicator quarter. over a unrealized be to EBITDA that items. focus a categories gains We adjusted in one two continue financial made a is in declined our positioned versus to measure base. Adjusted years moments. or John DeSena have restricted have expense EBITDA associated the losses non-recurring, investments operating Note the either as as which growth. provide well the non-GAAP we with past of immaterially consider release, portfolio a quarter and these our the grown or disclosure us significant many or in of invest, results a measure full on due and expense intense press organic of few projects that we for minus

full is release. Our of included definition adjusted in our EBITDA press

For year the up adjusted EBITDA margins million Overall, to quarter, a million, ago. from $X.X showing $X.X are increased improvement. our

with balance equivalents, at and liquid of cash of $XX.X million no XX, cash, our and sheet highly remains XXXX. December Finally, million $XX.X debt cash

at Our stockholders' per equity ended share. approximately which million, our $XX $X.XX book puts at value the period

the Officer continues themselves. John flexibility Chief turn changes we organizational of lack over highlight over sheet does to have period, With on improve forward present some leverage I'll in John. liquidity to will as that, who two Our our us the of and our opportunities and years. quality balance Operating give going executed it period-to- past DeSena,

Glenn. Thanks,

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growth and of deal provider have customized, multiples. comparable agented exceptionally with clean pricing than solutions seeking a characteristics become capital, deal structures median issuers For we better

to and of high companies products, quality the focus our selectively exciting, growth provide For opportunity next net to emerging gain sectors access highly institutional delivering we our vetted, and offerings solutions customers, generation services. worth evaluate within

access promising for oftentimes entry but generation, trade and growth disintermediated For capital institutional execution companies. idea or overlooked points provide we investors,

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Thank to over few up who back call the closing turn Jennifer, our with you, Jennifer? a remarks. end operator, now to can Jonathan. to questions. the After will I Q&A would like it I open

no And lines we time. audio on are the questions showing at this

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was call their February In financial clients. advisors day future of professionals release. followed than Thursday In in our XXQ earnings thank XX, service X,XXX and plan the our on press morning, dedication press I to filed conduct we February as our to more want earnings Our same XX. Friday all evening, work the the and release to for and closing, employees, hard the

We company class are and in we our belief in you. I faith clients. many, good shareholders but a wish of one your goal: service best Thank behalf a my team, executive of have of our our single us. to thank day. On management Have and for board

gentlemen, call. Thank does and your for participation your that today's ask conclude disconnect you conference Ladies you lines. this kindly and