SOURCE: National Investment Managers Inc.

August 14, 2009 08:00 ET

National Investment Managers Inc. Sets Revenue and Earnings Records

Net Income Approaches $2.0 Million in Second Quarter; Second Quarter Revenue Increases 20% to $14.1 Million; Second Quarter EBITDA SBC Rises 21% to $4.7 Million

DUBLIN, OH--(Marketwire - August 14, 2009) - National Investment Managers Inc. (OTCBB: NIVM), a nationally-based and regionally-operated retirement plan administration and investment management company, announced its financial results for the quarter and half year ended June 30, 2009.

Financial highlights for second quarter and first half of 2009 include:

--  Second quarter revenues of $14.1 million in 2009 compared with
    revenues of $11.8 million in 2008, an increase of 19.7%;
--  Second quarter EBITDA SBC of $4.7 million in 2009 against EBITDA SBC
    of $3.8 million in the same period 2008, an increase of approximately $0.9
    million or 21%;
--  First half revenues of $26.7 million in 2009 compared with revenues of
    $20.7 million in 2008, an increase of 29.1%;
--  First half EBITDA SBC of $6.7 million in 2009 against EBITDA SBC of
    $4.9 million in the same period 2008, an increase of approximately $1.8
    million, or 37%;
--  Net Income of approximately $2.0 million in the second quarter of 2009
    compared to net income of approximately $0.3 million in the same period of
--  Continued positive cash flow from operations in the second quarter of
    approximately $1.6 million, bringing cash flow from operations year-to-date
    to approximately $3.4 million;
--  EBITDA Operating Margins improved to 33.1% in the second quarter of
    2009, and 24.9% for the first half of 2009, compared to 32.7% and 23.4%
    respectively, for the same periods in 2008.

Revenues for the three months ended June 30, 2009, increased to a second-quarter record $14.1 million compared to $11.8 million for the same period in 2008, an increase of 19.7%. The Company's earnings before interest, taxes, depreciation, amortization, change in derivative financial instruments and stock-based compensation (EBITDA SBC) was $4.7 million for the second quarter 2009, up from $3.8 million from the same period in 2008.

Net income for the quarter ended June 30, 2009, was approximately $2.5 million with preferred dividends of approximately $494,000, resulting in a net income available to common shareholders of approximately $2.0 million, or $0.03 per fully diluted share. For the same period in 2008, net income was approximately $833,000, with approximately $494,000 in preferred dividends, resulting in net income available to common shareholders of approximately $340,000, or $0.01 per fully diluted share. The weighted average number of common shares outstanding stood at roughly 39.6 million basic and 73.5 million diluted at June 30, 2009 and 36.8 million basic and 75.1 million diluted at June 30, 2008.

Steven Ross, CEO of National Investment Managers, said, "Our record performance in the second quarter and first half of 2009 was driven by continued organic growth and operating improvements in our retirement plan administration business. Despite a difficult economy, our field operations posted significant gains in revenue, earnings, operating margins and cash flow. These results clearly demonstrate the strength and stability of our business model, and are a credit to the exceptional capabilities of our organization. Through our strategy of building a national retirement services business based upon acquiring best-in-class Third Party Administrators (TPAs), we are able to provide exceptional retirement plan design, consulting and administration services to our local clients. The resulting long-term and trusted customer relationships have allowed us to grow our revenues even in a challenging economic environment."

John Davis, President and Chief Operating Officer, added, "I am very pleased with this quarter's financial results and proud of our people that drove this record performance. As a team, we continue to meet or exceed our aggressive growth plans by almost all financial metrics. Our firms have demonstrated consistent and predictable growth with strong cash flows and low client attrition rates despite a difficult economy, which is an indicator of the continued strong demand for retirement plan services."

He concluded, "We continue to stay on track with our strategic and operational plans toward the development and implementation of our national technology platform and administrative business model across the country. We have significant momentum across the organization and I believe we are rapidly establishing NIVM as a premier retirement services company on a national level and I look forward to continued growth."

About National Investment Managers Inc.

National Investment Managers Inc. is a holding company and a consolidator of pension plan administration, investment management and insurance businesses. Its strategy includes a custom-tailored acquisition formula for each acquired business, which allows local and regional entities to retain their autonomy while benefiting from the reach that a national presence offers. In addition, the Company's approach offers entrepreneurs in these businesses an exit strategy suited to their specific needs. National Investment Managers targets businesses with stable cash flows and high operating margins to ensure successful integration of operations once a sale is concluded. Acquired companies continue to operate under their own brands, usually with minimal staff turnover to ensure that relationships of many years' standing are not disrupted. At the same time, these formerly small businesses can cross-sell related financial services under the National Investment Managers umbrella and enjoy administrative and other support from around the country.

The member firms of National Investment Managers provide pension administration services, retirement planning, defined benefit services, asset preservation, general insurance and asset management services. Wholly-owned subsidiaries of National Investment Managers are based in Anchorage, AK; Laguna Hills, CA; Marina Del Rey, CA; Greenwood Village, CO; Southington, CT; Lake Mary, FL; Pikesville, MD; North Attleboro, MA; Haddonfield, NJ; New York City, NY; Yorktown Heights, NY; Beaverton, OR; Harrisburg, PA; Horsham, PA; Wayne, PA; Warwick, RI; Houston, TX; and Seattle, WA. NIVM's corporate headquarters are located in Dublin, OH.

Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. They are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to raise capital, identify and complete acquisitions, integrate the acquired businesses, improve upon the operations of the acquired business units and generate cash and profits. Further information about these and other relevant risks and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.

Contact Information

    Steven J. Ross
    (614) 923-8822