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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

FBR Reports First Quarter Financial Results

Stocks in this article: FBRC

ARLINGTON, Va., April 23, 2013 (GLOBE NEWSWIRE) -- FBR & Co. (Nasdaq:FBRC) ("FBR" or the "Company"), a leading investment bank serving the middle market, today reported net after-tax earnings of $35.3 million, or $2.65 per diluted share, for the first quarter of 2013 compared to net after-tax earnings of $0.4 million, or $0.03 per diluted share, in the first quarter of 2012 and net after-tax earnings of $32.1 million, or $2.40 per diluted share, for the most recent quarter ended December 31, 2012.

Net income from continuing operations was $34.4 million in the first quarter of 2013 compared to a net loss of $34,000 in the first quarter of 2012 and net income of $9.0 million in the fourth quarter of 2012.

First quarter 2013 revenue was $117.9 million compared to $34.9 million in the first quarter of 2012 and $58.9 million in the most recent quarter.  The Company's revenue total was the highest since the fourth quarter of 2009 and pre-tax earnings were at the highest level since the second quarter of 2007.

Compensation and benefits were 56% of net revenue during the first quarter of 2013, which compares to 51% in the year earlier period and 56% in the prior quarter. Non-compensation fixed expenses in the first quarter of 2013 totaled $11.1 million, compared to $11.6 million and $11.8 million in the first and fourth quarters of 2012, respectively.

First Quarter Overview

  • Investment banking revenue was $101.3 million compared to $16.2 million in the first quarter of 2012 and $44.8 million in the fourth quarter of 2012.  This revenue was generated from 18 client transactions with contributions from each of our industry groups. It is important to note that included in those transactions was one capital raise which generated $38.3 million of revenue that was executed in the second quarter of 2012, but where the revenue was not able to be recognized until final regulatory approvals this quarter.
  • Institutional brokerage generated net revenue of $13.7 million compared to $16.1 million in the first quarter of 2012 and $12.8 million in the fourth quarter of 2012. Significantly lower market volatility during the quarter resulted in lower equity-linked product revenues versus a year ago. Equity commissions were essentially flat in the first quarter of 2013 compared to the first quarter of 2012, but importantly, were up for the second consecutive quarter.
  • The Company earned $2.1 million of net investment income from principal investing activities during the quarter.  
  • A 1-for-4 reverse stock split was completed effective on February 28, 2013. Shares outstanding on March 31, 2013 were 12.3 million, and all historical per share amounts have been adjusted to give effect to the completed reverse split.

The Company periodically repurchased shares of its common stock during the quarter.  For the quarter ended March 31, 2013, FBR repurchased 565 thousand shares at an average price of $16.16 per share.  Since the second quarter of 2010, the Company has repurchased 5.3 million shares at an average price of $13.08 per share, for a total of $69.2 million. The Company continues to have authority to repurchase 928 thousand shares. 

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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