MINOT, N.D., March 28, 2011 (GLOBE NEWSWIRE) -- Capital Financial Holdings, Inc. (OTCBB:CPFH), a financial services company, reports revenues for the fourth quarter of 2010 of $4,986,360, a 9% increase from revenues of $4,584,615 for the fourth quarter of 2009. Revenues for the year ended December 31, 2010 were $19,391,807, an 8% increase from revenues of $17,902,774 for the year ended December 31, 2009.
The Company reported a net loss of $778,792, or $0.05 per diluted share, for the fourth quarter of 2010, compared to a net loss of $62,560, or $0.01 per diluted share, for the fourth quarter of 2009. The net loss for the year ended December 31, 2010 was $994,782, or $0.07 per diluted share, compared to a net loss of $193,698, or $0.02 per diluted share, for the year ended December 31, 2009.
As a result of ongoing volatility in the financial industry and a reduction in the calculated fair market value of its wholly owned subsidiary, Capital Financial Services, Inc., the Company performed an interim goodwill impairment test for the quarter ended December 31, 2010. The Company determined that it would incur a goodwill impairment charge for the fourth quarter of the fiscal year ended December 31, 2010 of $753,518 in the Broker-Dealer segment. The fair value of the reporting unit was estimated by using an independent third-party appraisal.
The decrease in earnings was due primarily to the goodwill impairment loss explained in the paragraph above.
Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve a number of risks and uncertainties. The Company cautions that various factors, including the factors described under the caption forward-looking statements in the Company's annual report on Form 10-K, could cause actual results to differ materially from the statements contained herein. These factors include the following: business conditions and growth in the financial services industry, regulatory changes; general economic conditions; competitive factors including compressed net profit margins; changes in product mix; labor strikes; fluctuations in foreign currency exchange rates; income tax legislation; and the risk factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.
Capital Financial Holdings, Inc. is publicly traded over the OTC Bulletin Board under the symbol CPFH.OB. The Company continues to operate as a Broker-Dealer with its wholly owned subsidiary Capital Financial Services, Inc., a full-service brokerage firm that specializes in providing investment products and services to independent investment advisors and financial planners throughout the United States. More information is available at http://capitalfinancialholdings.com or by calling (877) 814-6379.