This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

IFMI Reports Fourth Quarter And Full Year 2011 Financial Results

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 year ended December 31, 2011.

Adjusted operating income was $0.3 million, or $0.02 per diluted share, for the three months ended December 31, 2011, as compared to adjusted operating loss of $4.0 million, or $0.25 per diluted share, for the three months ended September 30, 2011, and adjusted operating income of $4.7 million, or $0.30 per diluted share, for the three months ended December 31, 2010. Adjusted operating income was $3.5 million, or $0.22 per diluted share, for the year ended December 31, 2011, as compared to $25.4 million, or $1.62 per diluted share, for the year ended December 31, 2010. Adjusted operating income (loss) is not a measure recognized under generally accepted accounting principles (“GAAP”). See Note 1 on page 2.

“We’re proud of the progress IFMI has made on its strategic growth initiatives in 2011, including the acquisition and successful integration of our PrinceRidge and JVB subsidiaries, especially considering the difficult market conditions that persisted throughout the year,” said Daniel G. Cohen, Chairman and Chief Executive Officer of IFMI. “While difficult decisions to significantly reduce our fixed expenses and overhead had to be made, we believe these actions have enhanced our competitive position and will enable us to take advantage of eventual market improvement. As we look ahead to 2012, we continue to believe we are well capitalized and staffed to advance our growth strategies and deliver enhanced value to our stockholders.”

The Company noted that, given IFMI’s financial results of the past year, Mr. Cohen and John Costas, Chairman of PrinceRidge, will not receive incentive-based compensation for 2011.

The current-year periods include revenue from the PrinceRidge Holdings LP and JVB Financial Holdings, LLC consolidated subsidiaries, which were acquired in 2011; however, continued weakness in the current capital markets significantly reduced the positive impact of these acquisitions. Revenue was $23.7 million for the three months ended December 31, 2011, compared to revenue of $20.9 million for the three months ended September 30, 2011, and revenue of $24.9 million for the three months ended December 31, 2010. The increase in revenue in the fourth quarter of 2011 as compared to the third quarter of 2011 was primarily due to modestly higher net trading and advisory revenue in the PrinceRidge and European capital markets operations. The fourth quarter year-over-year decrease in revenue was the result of a reduction in gains on principal transactions of $1.5 million and a reduction in asset management revenue of $1.1 million. In the fourth quarter of 2010, IFMI recognized gains on its investment in Star Asia of $2.4 million, compared to losses of $0.1 million in the fourth quarter of 2011. The year-over-year decline in quarterly asset management revenue was due to the sale of management contracts related to the Deep Value funds in mid-2011, as well as continued deterioration in assets under management in the Company’s managed collateralized debt obligations.

1 of 4

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,886.73 -89.58 -0.50%
S&P 500 2,078.14 -8.10 -0.39%
NASDAQ 4,925.0860 -22.3550 -0.45%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs