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PHILADELPHIA and NEW YORK, Aug. 6, 2013 (GLOBE NEWSWIRE) -- Institutional Financial Markets, Inc. (NYSE MKT:IFMI), a financial services firm specializing in credit-related fixed income investments, today reported financial results for the quarter ended June 30, 2013.
Adjusted operating loss was $5.1 million, or $0.30 per diluted share, for the three months ended June 30, 2013, as compared to adjusted operating loss of $5.6 million, or $0.34 per diluted share, for the three months ended March 31, 2013, and adjusted operating income of $2.8 million, or $0.17 per diluted share, for the three months ended June 30, 2012. Adjusted operating loss was $10.7 million, or $0.64 per diluted share, for the six months ended June 30, 2013, compared to adjusted operating loss of $1.3 million, or $0.08 per diluted share, for the six months ended June 30, 2012. The Company's first and second quarters of 2013 were unfavorably impacted by mark-to-market losses on the Company's Star Asia investment of $6.0 million and $3.6 million, respectively, primarily driven by weakening of the Japanese Yen during the first half of 2013. Adjusted operating income (loss) is not a measure recognized under generally accepted accounting principles ("GAAP"). See Note 1.
"We continued to experience significant weakness in trading volumes and mark-to-market losses on our trading book, both of which negatively impacted IFMI's second quarter results, and were further compounded by an unfavorable mark-to-market loss on our Star Asia investment," said Daniel G. Cohen, Chairman and Chief Executive Officer of IFMI. "We believe that investor concern over the tapering of the Federal Reserve's Quantitative Easing Programs contributed to subdued fixed income secondary volumes and, consequently, fewer opportunities for smaller trading operations like IFMI's. While we are not pleased with our second quarter results, we believe our expanded leadership team, prudent cost management, and the capital investment from Mead Park and Cohen Bros. Financial will increase our ability to grow shareholder value over the long term."