Penson Worldwide, Inc. (NASDAQ: PNSN) today reported results for the quarter ended September 30, 2011. Penson also reported significant progress in its strategic initiatives to increase capital, improve liquidity and reduce costs.

“Despite disappointing results, we ended the third quarter in a very strong capital position,” said Philip A. Pendergraft, Chief Executive Officer. “We have largely accomplished our goal of improving capital and increasing liquidity by at least $100 million. Our US clearing operation had $185 million of regulatory capital, more than five times the minimum requirement. We reduced short term financing by $750 million, including paying down all short term bank debt, and we ended the quarter with $55.8 million of non-segregated cash.

“We’re in active negotiations to sell Penson Australia and Penson UK, as previously announced. Once this happens, we will have the flexibility to begin focusing on how best to take advantage of what we believe to be attractive prices for our stock, convertible issue and senior secured notes.

“While we are still operating at a loss due to challenging industry conditions, we have a plan in place to achieve approximately $24 million in annualized savings to begin early in 2012. When added to our previously announced $7-10 million in savings, we anticipate achieving a total of $33 million in annualized savings, which we anticipate will significantly improve performance.”

Regulatory Capital

Penson’s continuing operating companies had total excess regulatory capital of $159.5 million at September 30, 2011, up 23% from June 30, 2011. Penson Financial Services, Inc., the Company’s principal and largest subsidiary, ended the quarter with $185.4 million in regulatory capital, of which approximately $152.2 million was in excess of minimum requirements. This represents increases of 16% and 39%, respectively, from June 30, 2011. The increases reflect increases in capital due to (i) the previously completed consolidation of Penson Financial Services Inc. (PFSI) and Penson Futures (PF), and (ii) the previously completed conversion out of certain business of correspondent TD Ameritrade, f/k/a thinkorswim, to self clearing.

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