This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gleacher & Company Reports Fourth Quarter And Year End 2011 Financial Results

Years Ended 2011 vs. 2010

Net revenues declined by $12.2 million to $68.5 million for the year ended December 31, 2011, compared to $80.7 million in the prior year. The decrease in net revenues was attributable to lower commissions and principal transaction revenues of $12.7 million, primarily due to decreased spreads during the year, partially offset by higher volumes. Pre-tax income of $8.5 million for the year ended December 31, 2011 increased by $4.0 million, compared to non-GAAP pre-tax income of $4.5 million in the prior year. This increase is the result of a larger portion of compensation expense expected to be paid in stock-based compensation compared to the prior year. Non-GAAP pre-tax income of $4.5 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.

Investment Banking

Fourth Quarter 2011 vs. 2010

Net revenues declined by $8.4 million to $3.3 million for the fourth quarter of 2011, compared to $11.7 million in the fourth quarter of 2010. Advisory revenues decreased $4.9 million to $3.0 million, compared to $7.9 million for the prior-year quarter. Capital markets revenues decreased $3.5 million to $0.3 million for the fourth quarter of 2011, compared to $3.8 million for the prior-year quarter. Pre-tax loss of $1.1 million decreased by $3.7 million, compared to non-GAAP pre-tax loss of $4.8 million in the prior-year quarter. This improvement was a result of lower variable compensation expense recorded in the fourth quarter of 2011 as compared to the prior-year quarter resulting from the realignment of the division, which occurred in the third quarter of 2011. This action better aligned compensation expense as a percentage of revenue with management’s goals. Non-GAAP pre-tax loss for the fourth quarter of 2010, of $4.8 million was also impacted by higher compensation expense resulting from a change in vesting provisions to equity compensation awards expected to be granted as part of year-end compensation for services in 2010 which is further described below as part of the “Consolidated Compensation and Benefits Expenses” discussion.

6 of 13

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs