EFH Empire Financial Holding

* 2006 Record Revenues up 59% over 2005 LONGWOOD, Fla., April 2 /PRNewswire-FirstCall/ -- Empire Financial Holding Company (AMEX:EFH), a brokerage and investment banking firm serving retail and institutional clients, today reported financial results for the year ended December 31, 2006. Income from operations was $489,938 compared to $112,349 in 2005. Revenues for the year ended December 31, 2006 increased by 59% to $35,642,045 from $22,485,731 in 2005. Net income was $10,651 compared to $2,462,481 in 2005, a year which included a one time tax benefit of $2,117,000 and a one time gain of $452,000 from the sale of a customer list. Net loss applicable to common shareholders, after preferred stock dividends of $231,372, was ($220,721) in 2006 compared to net income applicable to common shareholders of $2,294,969 in 2005 or ($0.03) per basic and diluted share in 2006 and $0.44 and $0.38 during 2005. Shareholder equity improved by 247% in 2006 to $17.96 million from $5.17 million in 2005. Revenues for the fourth quarter ended December 31, 2006 increased by 167% to $12.8 million from $4.8 million in 2005. For the fourth quarter ended December 31, 2006 the Company had a net loss applicable to common shareholders of ($105,041) or ($0.01) per share compared to net income of $441,899, or $0.09 per basic share and $0.08 per diluted share, during the same period in 2005, which included a one time tax benefit of $733,000 and a one time gain of $452,000 from the sale of a customer list during the quarter. For the fourth quarter ended December 31, 2006 the Company incurred non-cash charges approximating $822,000 related primarily to warrant and stock option amortization, compared to $64,000 during the same period in 2005. "We believe 2006 was a seminal year in our growth and development as a company," commented Donald A. Wojnowski Jr., President and CEO. "The Company's merger with Jesup & Lamont, the growth of our Trading and execution business, the first year of Investment Banking revenues and the continued development of infrastructure has laid the base for continued growth in 2007," Wojnowski added, "We believe we are making significant strides in building a model that through varied but symbiotic business lines we can produce systematic revenue and profit growth both organically and through acquisition allowing us to continue to build shareholders value." About Empire Financial Holding Company: Empire Financial Holding Company, through its wholly owned subsidiaries, Empire Financial Group, Inc., and Jesup & Lamont Securities Corporation, provides full-service retail brokerage services through its network of employee and independently owned and operated offices. Through its market-making and trading division, the Company offers securities order execution services for unaffiliated broker dealers and makes markets in domestic and international securities. Empire Financial also provides Investment Banking services for clients as well as turn-key fee based investment advisory and registered investment advisor custodial services through its wholly owned subsidiaries, Empire Investment Advisors, Inc., and Jesup & Lamont Securities Corporation. Forward-Looking Statement Disclaimer This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, without limitation, fluctuations in the volume of transactional services provided by the Company, competition with respect to financial services commission rates, the effect of general economic and market conditions, factors affecting the securities brokerage industry as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. EMPIRE FINANCIAL HOLDING COMPANY CONSOLIDATED STATEMENT OF FINANCIAL CONDITION December 31, 2006 Assets: Cash and cash equivalents ................................ $990,085 Marketable securities owned, at market value ............. 4,893,488 Securities not readily marketable, at estimated fair value .............................................. 882,005 Commissions receivable from clearing organizations ....... 2,081,806 Other receivables ........................................ 1,306,468 Deposits at clearing organizations ....................... 1,533,774 Furniture and equipment, net ............................. 636,621 Prepaid expenses and other assets ........................ 1,352,396 Deferred tax assets ...................................... 2,117,000 Cash in escrow ........................................... 350,000 Notes receivable ......................................... 4,792,578 Intangible assets, net ................................... 12,849,529 ----------- Total assets ......................................... $33,785,750 =========== Liabilities and stockholders' equity Liabilities: Accounts payable, accrued expenses and other liabilities ............................................. $4,790,974 Due to clearing organizations ............................ 2,161,881 Securities sold, but not yet purchased, at market value ............................................ 1,399,230 Notes payable ............................................ 7,473,200 ----------- Total liabilities ................................... $15,825,285 ----------- Commitments and contingencies Stockholders' equity: Convertible preferred stock, series C and F $.01 par value 1,000,000 shares authorized 873,201 issued and outstanding .......................... $8,732 Common stock, $.01 par value 100,000,000 shares authorized 10,365,216 shares issued and outstanding ........................... 103,649 Additional paid-in capital ............................... 23,808,181 Accumulated deficit ...................................... (5,960,097) ----------- Total stockholders' equity ........................... $17,960,465 ----------- Total liabilities and stockholders' equity ........... $33,785,750 =========== EMPIRE FINANCIAL HOLDING COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS TWELVE MONTHS TWELVE MONTHS ENDED ENDED December 31, December 31, 2006 2005 ------------- ------------- Revenues: Commissions and fees .......... $20,373,890 $16,767,506 Trading income ................ 11,724,530 5,451,815 Investment banking income ..... 3,543,625 266,410 ------------- ------------ 35,642,045 22,485,731 ------------ ------------ Expenses: Employee compensation and benefits ................. 10,927,254 4,789,976 Commissions and clearing costs ........................ 19,181,312 15,070,113 General and administrative .... 4,662,492 2,287,449 Communications and data processing ................... 381,049 225,844 ------------ ------------ 35,152,107 22,373,382 ------------ ------------ Income from operations .......... 489,938 112,349 ------------ ------------ Other income (expenses): Interest income ............... 432,949 210,386 Interest expense .............. (912,236) (154,254) Income from sale of customer list ......................... -- 452,000 Provision for SEC settlement .. -- (275,000) ------------ ------------ (479,287) 233,132 ------------ ------------ Income before income taxes ...... 10,651 345,481 Income tax benefit .............. -- 2,117,000 ------------ ------------ Net income ...................... 10,651 2,462,481 Preferred stock dividends ....... (231,372) (167,512) ------------ ------------ Net income (loss) applicable to common shareholders ............ $(220,721) $2,294,969 ============ ============ Basic and diluted earnings (loss) per share applicable to common stockholders: Earnings (loss) per share-basic and diluted .................. $(0.03) $0.44 ============ ============ Earnings (loss) per share diluted ...................... $(0.03) $0.38 ============ ============ Weighted average shares outstanding: Basic ......................... 7,102,379 5,160,133 ============ ============ Diluted ....................... 7,102,379 6,084,538 ============ ============ DATASOURCE: Empire Financial Holding Company CONTACT: Donald A. Wojnowski, Jr., President of Empire Financial Holding Company, +1-407-774-1300, ext. 1141, or fax, +1-407-774-1300,

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