2008-11-08 01:30:01 -
- National Investment Managers Incorporated Steven J. Ross, CEO, 614-923-8822 or Porter LeVay & Rose, Inc. Marlon Nurse, 212-564-4700 VP - Investor Relations FAX: 212-244-3075 www.plrinvest.com plrmail@plrinvest.com National Investment Managers Inc. (OTC BB: NIVM), a nationally-based and regionally-operated company, today announced that Woodside Capital Partners has purchased the Note and Warrants that Lehman Brothers held in National Investment Managers.
In December 2007, Lehman participated in a $27 million debt package, whereby Lehman and Woodside Capital Partners each offered National Investment Managers $6 million in subordinated debt, while Citizens Bank provided $15 million in senior debt. As part of a funding agreement, National Investment Managers issued Lehman and Woodside each Warrants to purchase an aggregate 5,742,789, 3,828,527 and 1,914,262 shares of common stock at $0.50, $1.00 and $1.50 per share, respectively. When Woodside acquires Lehman's stake, it will hold warrants to purchase 11,485,578 shares of National Investment Managers' stock. This is approximately 12% of the Company.
Daphne Firth of Woodside Capital Partners said, "We are doubling the size of our stake in National Investment Managers by purchasing the Note and Warrants held by Lehman Brothers. We are doing so because we are very satisfied with the growth that NIVM has shown over the past several quarters."
Steve Ross, CEO of National Investment Managers, said, "We are very gratified to receive this vote of confidence from Woodside Capital, especially in the current uncertain financial markets. We continue to explore acquisitions in the retirement plan administration and investment management arena, and we anticipate that we expect continued financial growth in the coming months.
Since signing the financing with Woodside, Lehman and Citizens Bank, last December, we have executed four significant acquisitions: California Investment Annuity Sales, Kanter & Associates, Pension Technical Services (Reptech) and Alaska Pension Services. Despite the poor conditions on Wall Street, we expect our revenues to be about $43 million - up 20% year over year. EBIDTA SBC, which we believe is an important measure of our earnings growth, will approach $10 million in 2008, an increase of about 50%."
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, investment and insurance services. Wholly-owned subsidiaries of National Investment Managers are based in Anchorage, AK; Marina Del Rey, CA; Denver, CO; Southington, CT Jacksonville, FL; Orlando, FL; Baltimore, MD; North Attleboro, MA; Cherry Hill, NJ; Haddonfield, NJ; New York City, NY; White Plains, NY; Bend, OR; Portland, OR; Harrisburg, PA; Horsham, PA; Wayne, PA; Providence, 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.
Woodside to Buy Stake Held by Lehman Brothers
NIVM Expects Record Year, Revenues Up Approximately 20%, Earnings
up 50%
