This Day On The Street
Continue to site
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

Non-GAAP net revenues of $11.0 million for the year ended December 31, 2011 increased by $5.7 million, compared to net revenues of $5.3 million in the prior year. This increase was attributable to $2.7 million of higher investment gains from the change in value of the Company’s investment in FATV and a gain of $0.9 million resulting from the sale of an investment security. Net interest income also increased by $1.6 million, primarily due to interest expense no longer being incurred on our mandatorily redeemable preferred stock, which was redeemed in September 2010. Non-GAAP pre-tax loss improved by $17.6 million to $22.9 million for the year ended December 31, 2011, compared to non-GAAP pre-tax loss of $40.5 million in the prior year. This improvement was a result of the higher net revenues, as well as lower variable compensation, including annual compensation expense for members of senior management.

Consolidated Compensation and Benefits Expenses (including Non-GAAP results)

Fourth Quarter 2011 vs. 2010

Compensation and benefits expense of $33.5 million decreased by $29.0 million, compared to non-GAAP compensation and benefits expense of $62.5 million in the fourth quarter of 2010. This was primarily due to lower variable compensation expense as a result of lower net revenues in the MBS/ABS & Rates segment. Variable compensation expense also decreased in the Investment Banking segment resulting from the realignment which occurred in the third quarter of 2011. This action better aligned compensation expense as a percentage of revenue with management’s goals. In addition, annual compensation expense for members of senior management is lower when compared to the prior year, and compensation for certain leaders of the Company’s business segments is weighted more heavily toward stock-based compensation, resulting in expensing awards over the future vesting period rather than immediately. These decreases were partially offset by compensation expense related to ClearPoint.

8 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
YHOO $27.05 -3.29%
AAPL $95.01 1.05%
FB $99.75 -4.15%
GOOG $682.74 -0.12%
TSLA $147.99 -8.99%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs