Penson Worldwide, Inc. Closes On Sale Of Australian Subsidiary; Receives $33 Million Payment
Penson Worldwide, Inc. (NASDAQ: PNSN) today announced that it has closed
on the previously announced sale of its Australian operation to BNY
Mellon Company (NYSE: BK), and received approximately $33 million,
Penson Worldwide, Inc. (NASDAQ: PNSN) today announced that it has closed on the previously announced sale of its Australian operation to BNY Mellon Company (NYSE: BK), and received approximately $33 million, successfully completing another step in Penson’s strategic initiatives to improve performance. “Receipt of these funds further strengthens our balance sheet and we are continuing to make good progress with our other initiatives, which involve selling non-core assets, reducing debt and cutting costs,” said Philip A. Pendergraft, Chief Executive Officer. “Plans to achieve approximately $24 million in annualized savings in 2012 have already begun to be realized in the current fourth quarter. When added to a previously announced $7-10 million in savings, Penson anticipates achieving a total of $33 million in annualized savings.” Penson Financial Services, Inc., the Company’s US subsidiary and its largest, ended the third quarter with a total of $185 million of net capital, more than five times the minimum requirement. It also reduced short term financing by $750 million, paying down all short term bank debt. Penson Worldwide ended the quarter with $55.8 million of non-segregated cash. About Penson Worldwide: www.penson.com The Penson Worldwide group of companies provides execution, clearing, custody, settlement and technology infrastructure products and services to financial services firms and others servicing the global financial services industry. The Penson Worldwide group of companies includes Penson Financial Services, Inc., Penson Financial Services Canada Inc., Penson Financial Services Ltd., Nexa Technologies, Inc., Penson Asia Limited, and Penson Financial Services Australia Pty Ltd, among other companies. Headquartered in Dallas, Texas, Penson has served the clearing needs of the global financial services industry since 1995. Penson Worldwide - Building the Best Clearing and Execution Services Firm in the World.Penson Financial Services, Inc. is a member of FINRA, New York Stock Exchange, NYSE Arca Exchange, NYSE Amex Equities, NYSE Amex Options, BATS Exchange, Direct Edge Exchanges (EDGA and EDGX), Chicago Board Options Exchange (CBOE), Chicago Stock Exchange, International Securities Exchange (ISE), NASDAQ OMX BX, NASDAQ OMX PHLX, NASDAQ Stock Market, NASDAQ LIFFE, LLC, National Stock Exchange, Options Clearing Corp. (OCC), Fixed Income Clearing Corp. (FICC), MSRB, National Securities Clearing Corp. (NSCC), DTC, ICMA, Euroclear, and SIPC. Penson Financial Services, Inc. is also a registered Futures Commission Merchant and clearing member at the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, Comex, Kansas City Board of Trade, Minneapolis Grain Exchange, NYSE Liffe US, NYSE Euronext LIFFE, ONEChicago, ICE CLEAR Europe and ICE Futures USA. Penson Financial Services Canada Inc. is a participating organization with the Toronto Stock Exchange, the Montreal Exchange, the CNSX Exchange and the TSX Venture Exchange, is regulated by the Investment Industry Regulatory Organization of Canada, is a member of the CIPF, CDCC and CDS and subscribes to various Canadian Alternative Trading Systems. Penson Financial Services Ltd. is a member of the London Stock Exchange, Chi-X Europe, BATS Europe, NYSE Arca, NYSE Euronext, and SmartPool, and is authorized and regulated by the Financial Services Authority. Forward-Looking Statements: Statements contained in this news release that are not based on current or historical fact are forward-looking in nature. Such forward-looking statements are based on current plans, estimates and expectations. Forward-looking statements are based on known and unknown risks, assumptions, uncertainties and other factors. Actual results, performance, or achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. Penson undertakes no obligation to publicly update or revise any forward-looking statement.