Years Ended 2011 vs. 2010Net revenues declined by $17.2 million to $99.9 million for the year ended December 31, 2011, compared to $117.1 million in the prior year. The decrease in net revenues was attributable to lower commissions and principal transactions revenues of $23.1 million due to net revenue declines of $11.1 million on asset-backed securities, and lower trading volumes in the current year. Net interest income increased $6.1 million due to increased inventory levels, partially offset by lower coupon interest received. Pre-tax income of $31.5 million for the year ended December 31, 2011 declined by $3.4 million, compared to non-GAAP pre-tax income of $34.9 million. This reduction is a direct result of the lower revenues, partially offset by lower variable compensation expense (as a result of the lower revenues). Non-GAAP pre-tax income of $34.9 million for 2010 was also impacted by higher compensation expense recorded in the fourth quarter, resulting from the previously mentioned change in vesting provisions to equity compensation awards expected to be granted as part of year-end compensation for services in 2010.
Gleacher & Company Reports Fourth Quarter And Year End 2011 Financial Results
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