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TheStreet Open House

JMP Group Reports Second Quarter 2012 Financial Results

JMP Group Inc. (NYSE: JMP), an investment banking and alternative asset management firm, reported financial results today for the quarter and six months ended June 30, 2012.

  • Operating net income was $3.0 million, or $0.13 per diluted share, compared to $4.9 million, or $0.22 per share, for the second quarter of 2011. For the six months ended June 30, 2012, operating net income was $7.5 million, or $0.33 per share, compared to $11.2 million, or $0.49 per share, for the six months ended June 30, 2011.
  • 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 $0.13 per diluted share, an increase of 8.3% from $0.12 per share for the second quarter of 2011. For the six months ended June 30, 2012, adjusted operating net income was a record $0.32 per share, an increase of 3.2% from $0.31 for the six months ended June 30, 2011. For more information on operating net income and adjusted operating net income, 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 $1.6 million, or $0.07 per diluted share, compared to net income of $1.5 million, or $0.07 per share, for the second quarter of 2011. For the six months ended June 30, 2012, the net loss was $1.3 million, or 0.06 per share, compared to net income of $5.1 million, or $0.22 per share, for the six months ended June 30, 2012.
  • Adjusted net revenues, which exclude certain non-cash items and non-controlling interests, were $27.7 million, compared to $36.6 million for the second quarter of 2011. For the six months ended June 30, 2012, adjusted net revenues were $62.9 million, compared to $81.5 million for the six months ended June 30, 2011. Further excluding net gains or losses on the sale or payoff of acquired loans, adjusted net revenues would have been $27.9 million and $62.4 million for the quarter and six months ended June 30, 2012, respectively, and $30.4 million and $69.6 million for the quarter and six months ended June 30, 2011, respectively. 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 $26.6 million and $58.0 million for the quarter and six months ended June 30, 2012, respectively, compared to $31.5 million and $74.4 million for the quarter and six months ended June 30, 2011, respectively.

“Our second quarter results reflected the negative impact of investors’ renewed global-macro concerns on the U.S. equity capital markets, which led to a decline in our investment banking and institutional brokerage revenues and hurt the overall investment performance of our hedge fund strategies,” said Chairman and Chief Executive Officer Joe Jolson. “Nevertheless, JMP produced adjusted operating EPS, which excludes acquired loan sale profits, of $0.13 for the second quarter and a record $0.32 for the first half. The better-than-expected quarter was partially due to unusual income of roughly $0.03 per share related to the ending of our advisory agreement with New York Mortgage Trust. Challenged by limited underwriting activity and declining institutional equity trading volumes, JMP Securities still managed to contribute a penny to adjusted operating EPS for the quarter, while Harvest Capital Strategies contributed $0.05 (including the aforementioned $0.03 of unusual income). JMP Credit, which includes net interest income from Harvest Capital Credit, once again posted strong results, adding $0.14 per share on an adjusted operating earnings basis.”

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