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Rodman & Renshaw Capital Group Announces Certain Highlights For The Two Months Ended February 29, 2012 And 2011 Financial Results

Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM) announced certain preliminary results for the two months ended February 29, 2012 and financial results for the full year and quarter ended December 31, 2011.

Edward Rubin, Rodman’s Chief Executive Officer, stated, “Last year was a difficult period for our industry and for us, and our 2011 results reflect that. In the first two months of 2012 we have seen a marked improvement in our business as a result of being able to monetize a number of transactions from our deal pipeline. With the introduction of the DirectMarkets platform and general improvement in market conditions, we are optimistic about the rest of 2012.”

Highlights for the Two Months Ended February 29, 2012:
  • Introduced DirectMarkets, the first-ever 24/7 automated electronic transaction platform to link issuers with investors for primary offerings of securities by existing publicly traded companies.
  • The Company earned investment banking revenue of approximately $21.5 million and brokerage revenue of approximately $4.3 million for the first two months of 2012, compared to investment banking revenue and brokerage revenue of $7.5 million and $6.2 million, respectively, for the fourth quarter of 2011.During the first two months of 2012, the Company completed 17 financing transactions raising approximately $800 million, including our role as advisor to ZaZa Energy LLC in connection with its merger with Toreador Resources Corporation (Nasdaq: TRGL), and as the exclusive agent for the placement of $100 million of senior secured notes and related warrants in this transaction. The merger and financing of the ZaZa Energy LLC and Toreador Resources Corporation transaction were completed on February 21, 2012.
  • Liquid assets were approximately $28.0 million as of February 29, 2012, compared to approximately $15.5 million as of December 31, 2011. Liquid assets consist of cash and cash equivalents, “Level I” assets less “Level I” liabilities, “Level II” assets less “Level II” liabilities and net current receivables.
  • The increase in liquid assets of approximately $12.5 million since December 31, 2011 is a result of investment banking fees earned and our reduced fixed-cost structure.In March 2012 we expect to pay employees approximately $3.7 million related to 2011 year-end bonuses; this compares to $14.7 million paid in February 2011 for 2010 year-end bonuses. The CEO and our other founder senior executives did not receive a 2011 year-end bonus and a pro-rata portion of restricted stock units (RSUs) previously granted to them, subject to performance, did not vest.
  • These preliminary results are subject to further quarterly review procedures by the Company.

Full Year 2011 Highlights:
  • Investment banking revenue of $57.6 million, compared to $87.2 million in 2010.
  • Revenue, excluding principal transactions, of $82.8 million, compared to $96.2 million in 2010.
  • Net loss of $36.4 million, or ($0.99) per diluted share. Non-GAAP operating net loss of $7.4 million, or ($0.20) per diluted share and a (14%) pre-tax operating margin. A reconciliation between GAAP results and non-U.S. GAAP measures is contained in the tables that accompany this release, under “Non-U.S. GAAP Financial Measures”.
  • 92 financing transactions were completed, raising $2.9 billion in 2011, compared to 116 financing transactions raising $3.0 billion in 2010.
  • The Company was once again ranked the number one investment bank in PIPE and Registered Direct transactions by deal volume for 2011. 1

Fourth Quarter 2011 Highlights:
  • Investment banking revenue of $7.5 million, compared to $22.1 million and $7.9 million in the fourth quarter of 2010 and the third quarter of 2011, respectively.
  • Revenue, excluding principal transactions, of $13.9 million, compared to $23.5 million and $18.0 million in the fourth quarter of 2010 and the third quarter of 2011, respectively.
  • Net loss of $19.3 million, or ($0.52) per diluted share. Non-GAAP operating net loss of $1.8 million, or ($0.05) per diluted share and a (22%) pre-tax operating margin. For the third quarter of 2011, the Company reported non-GAAP operating net loss of $4.2 million, or ($0.11) per diluted share and an (40%) pre-tax operating margin. A reconciliation between GAAP results and non-U.S. GAAP measures is contained in the tables that accompany this release, under “Non-U.S. GAAP Financial Measures”.
  • 19 financing transactions were completed, raising $0.9 billion in the fourth quarter of 2011, compared to 41 financing transactions raising $1.4 billion in the fourth quarter of 2010 and 14 financing transactions raising $0.2 billion in the third quarter of 2011.

The Company will hold a conference call this morning, March 14, 2012, at 10:00 AM Eastern Time to discuss these results (see “Conference Call Information” below).

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