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Institutional Financial Markets, Inc. (NYSE AMEX: IFMI), a leading investment firm specializing in credit-related fixed income investments, today reported financial results for the quarter and six months ended June 30, 2011.
Adjusted operating income was $3.0 million, or $0.18 per diluted share, for the three months ended June 30, 2011, as compared to $6.4 million, or $0.40 per diluted share, for the three months ended June 30, 2010. Adjusted operating income was $7.2 million, or $0.45 per diluted share, for the six months ended June 30, 2011, as compared to $14.0 million, or $0.90 per diluted share, for the six months ended June 30, 2010. Adjusted operating income is not a measure recognized under generally accepted accounting principles (“GAAP”). See Note 1 on page 3.
On June 1, 2011, IFMI completed its strategic transaction with PrinceRidge Holdings LP (“PrinceRidge”), whereby IFMI contributed its equity interests in a subsidiary comprising a substantial part of its Capital Markets segment to PrinceRidge in exchange for a majority of the equity interest in PrinceRidge. IFMI added 86 capital markets professionals and support staff as a result of the transaction. The combination furthers IFMI’s objective of significantly expanding its Capital Markets business. IFMI’s consolidated financial results for the second quarter of 2011 include one month of PrinceRidge’s operating performance.
“We are disappointed with our results in the second quarter; however, we are optimistic about our future, though we know there is still much work to be done,” said Daniel G. Cohen, Chairman and Chief Executive Officer of IFMI. “Notably, during the quarter we continued to execute on important growth initiatives, including closing our strategic transaction with PrinceRidge and making substantial progress on the integration of the two companies’ platforms. We have already effectuated some of the efficiencies this transaction afforded us, and will continue to seek to both build revenue on the basis of the combination and achieve cost savings, which will make us a more profitable company.”