Institutional Financial Markets, Inc. (NYSE AMEX: IFMI), an investment firm specializing in credit-related fixed income investments, today reported financial results for the quarter and nine months ended September 30, 2011.
Adjusted operating loss was $4.3 million, or $0.27 per diluted share, for the three months ended September 30, 2011, as compared to adjusted operating income of $6.6 million, or $0.42 per diluted share, for the three months ended September 30, 2010. Adjusted operating income was $2.9 million, or $0.18 per diluted share, for the nine months ended September 30, 2011, as compared to $20.7 million, or $1.32 per diluted share, for the nine months ended September 30, 2010. Adjusted operating income / (loss) is not a measure recognized under generally accepted accounting principles (“GAAP”). See Note 1 on page 3.
Throughout the third quarter, IFMI implemented significant initiatives designed to reduce expenses, streamline operations, and reduce risk and balance sheet positions. These initiatives included the elimination of duplicative costs arising from the PrinceRidge transaction, as well as net reductions in overall costs to address adverse market conditions. IFMI has eliminated 31 positions and reduced compensation and benefits for certain of the remaining staff. Additional cost savings were generated by subleasing and terminating duplicative leases, lowering subscription costs, and other measures. These efforts are expected to generate in excess of $10 million in annual cost savings. In the third quarter, IFMI incurred costs of $1.8 million related to these initiatives, which included employee severance and termination payments of $1.2 million, lease termination costs of $0.5 million, and other contract termination costs of $0.1 million. These expenses were included as a component of operating expenses for the three months ended September 30, 2011.
“Our entire industry has been impacted by difficult market conditions that have persisted throughout 2011, and that we expect to continue in the near-term. Our results this quarter were negatively affected by the continued deterioration of trading volumes within the fixed income market,” said Daniel G. Cohen, Chairman and Chief Executive Officer of IFMI. “While IFMI’s balance sheet remains healthy, we are glad that we have taken steps to adjust to the current business environment, and believe we have made real progress in reducing our fixed expenses and overhead and preserving our franchise. These initiatives will help to ensure that we preserve our capital and are in the best possible position to take advantage of eventual market improvement.”
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV