JMP Group Inc. (NYSE: JMP), an investment banking and alternative asset management firm, reported financial results today for the quarter and full fiscal year ended December 31, 2011.
- Operating net income was $3.2 million, or $0.14 per diluted share, for the quarter, compared to $8.7 million, or $0.38 per diluted share, for the fourth quarter of 2010. For the year, operating net income was $17.1 million, or $0.76 per diluted share, versus $20.2 million, or $0.90 per diluted share, for 2010.
- Excluding the financial impact of gains recognized by JMP Credit Corporation on the sale or payoff of loans initially acquired in April 2009, adjusted operating net income was $0.14 per share and $0.56 per share for the quarter and year ended December 31, 2011, respectively, compared to $0.19 per share and $0.39 per share for the quarter and year ended December 31, 2010, respectively. For more information on operating net income and adjusted operating net income, on a consolidated and a segment basis, including a reconciliation to net income, please see the section below titled “Non-GAAP Financial Measures.”
- The net loss attributable to JMP Group under generally accepted accounting principles, or GAAP, was $5.9 million, or $0.26 per share, for the quarter, compared to net income of $3.9 million, or $0.17 per share, for the fourth quarter of 2010. For the year, the net loss was $2.5 million, or $0.11 per share, versus net income of $9.6 million, or $0.43 per share, for 2010.
- Adjusted net revenues, which exclude certain non-cash items and noncontrolling interests, were $25.7 million for the quarter, compared to $46.6 million for the fourth quarter of 2010. For the year, adjusted net revenues were $135.3 million, versus $152.5 million for 2010. Further excluding net gains on the sale or payoff of acquired loans, adjusted net revenues would have been $122.2 million for 2011, up 6.9% from $114.3 million for 2010. For more information on adjusted net revenues, including a reconciliation to net revenues, please see the section below titled “Non-GAAP Financial Measures.”
- Total net revenues on a GAAP basis were $19.6 million for the quarter, compared to $44.0 million for the fourth quarter of 2010. For the year, total net revenues were $111.4 million, versus $144.7 million for 2010.
“2011 turned out to be a much more difficult year for U.S. financial markets than originally expected,” said Chairman and Chief Executive Officer Joe Jolson. “Nevertheless, JMP produced record adjusted operating EPS, a metric which excludes acquired loan sale profits, of $0.56 for the full year—up over 40% from the $0.39 earned for 2010 and representing a return on adjusted tangible book value of 11.8%, well above our stated goal of 10%. JMP Credit enjoyed another record year, generating earnings of $0.59 per share excluding acquired loan sale profits. Harvest Capital Strategies earned $0.11 per share, an increase of 57% from $0.07 for 2010, thanks to growth of almost 21% in hedge fund assets under management and good performance from our largest fund, Harvest Small Cap Partners. JMP Securities had a challenging year due to severe industry-wide headwinds, contributing $0.08 of operating EPS, versus $0.13 last year. However, underlying this result was a substantial increase in equity underwriting market share as well as the stabilization of commission revenues in the second half of 2011.”