Key points for the nine months include:
- Investment banking revenue was $73.6 million compared with $84.9 million for the first nine months of 2011, a decrease of $11.3 million, or 13.3%, primarily due to lower capital markets revenue partially offset by higher M&A and advisory revenue.
- Commissions revenue was $74.9 million compared with $101.7 million for the first nine months of 2011, a decrease of $26.9 million, or 26.4%, on lower traded volume.
- Principal transactions revenue increased $8.2 million, or 87.9% to $17.6 million compared with $9.4 million for the first nine months of 2011. Trading revenue, including investments, was $4.4 million compared with negative $9.0 million for the first nine months of 2011.
- Non-GAAP operating total expenses (excludes restructuring charges) decreased $47.9 million, or 20.7%, for the first nine months of 2012 compared with the same period in 2011, primarily due to a decrease in non-compensation expenses excluding restructuring charges of 28.5%. Compensation and benefits expense as a percentage of revenue was 67.0%.
Restructuring and Additional Information
Commencing in the third quarter of 2011, the Company undertook significant steps to reduce our workforce and certain other costs to better align our resources to the current business environment. These efforts continued through the third quarter of 2012 with further headcount reductions (see “Non-GAAP Financial Measures” below).
The following table sets forth certain statistical and financial information reflecting our efforts at reducing operating expenses and our strong equity capital position.
|(Dollars in thousands)|
|As of and for the Three Months Ended|
|September 30, 2012||June 30, 2012||September 30, 2011|
|Number of employees||448||458||593|
|Common stockholders' equity||$381,176||$380,381||$399,134|
|*excludes restructuring charges|
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