The Company has included in this press release “non-GAAP financial results.” A non-GAAP financial result is a numerical measure of financial position or results of operations that includes amounts that are excluded, or excludes amounts that are included, in the most directly comparable result calculated and presented in accordance with generally accepted accounting principles (“GAAP”).
In the financial data included in this press release, the items for which the Company adjusted its GAAP results consist of the following:
- the reversal of certain severance expense in the third quarter of 2012, previously accrued during the first quarter,
- legal, consulting and advisory costs incurred in connection with our strategic alternatives process during the second quarter and third quarter of 2012,
- impairment of goodwill and intangibles recorded during the second quarter of 2012 and the third quarter of 2011, as well as other non-compensation expenses incurred in connection with the Investment Banking realignment,
- valuation allowance on deferred tax assets recorded during the second quarter of 2012,
- severance expense recorded during the first quarter of 2012 and third quarter of 2011,
- compensation expense related to the resignation of the former interim CEO in the second quarter of 2011, and
- the bargain purchase gain related to the ClearPoint acquisition in the first quarter of 2011.
For detailed information on the adjustments made, and a reconciliation of the non-GAAP financial results included in this press release to the most directly comparable GAAP financial metrics, refer to “Non-GAAP Financial Results” below. While the Company believes that the non-GAAP financial results included herein are instructive, they should only be considered together with their corresponding GAAP financial metrics.
|Business Segment Results (including Non-GAAP results)|
|Three Months Ended||Nine Months Ended|
|(In thousands of dollars)||2012||2012||2011||2012||2011|
|MBS & Rates||8,943||5,282||13,714||34,556||89,189|
|Net revenues - operating segments||42,145||43,200||49,253||147,471||190,010|
|Pre-tax (loss)/income from continuing operations:|
|MBS & Rates||1,814||(1,746)||4,247||5,556||29,655|
|Pre-tax income/(loss) - operating segments||3,652||(778)||8,249||7,061||38,919|
*Designates non-GAAP financial results. A reconciliation of the Company’s GAAP results to its non-GAAP financial results is set forth below under the caption “Non-GAAP Financial Results.”