Rodman & Renshaw Capital Group Announces 1st Quarter 2012 Financial Results

Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM) (“the Company”) announced financial results for the quarter ended March 31, 2012.

First Quarter 2012 Highlights:
  • Investment banking revenue of $23.5 million, compared to $27.5 million and $7.5 million in the first quarter of 2011 and the fourth quarter of 2011, respectively.
  • Revenue, excluding principal transactions, of $25.2 million, compared to $29.7 million and $13.9 million in the first quarter of 2011 and the fourth quarter of 2011, respectively.
  • Net income of $2.0 million, or $0.05 per diluted share. Non-GAAP operating net income of $1.8 million, or $0.05 per diluted share and a 7% pre-tax operating margin. For the fourth quarter of 2011, the Company reported non-GAAP operating net loss of $1.8 million, or ($0.05) per diluted share and a (22%) pre-tax operating margin. A reconciliation between GAAP results and non-U.S. GAAP measures is contained in the tables that accompany this release, under “Non-U.S. GAAP Financial Measures”.
  • 22 financing transactions were completed, raising $1.1 billion in the first quarter of 2012, compared to 33 financing transactions raising $1.1 billion in the first quarter of 2011 and 19 financing transactions raising $0.9 billion in the fourth quarter of 2011.
  • Rodman & Renshaw, LLC was once again ranked the number one investment bank in PIPE and Registered Direct transactions by deal volume for the first quarter of 2012. 1

The Company will hold a conference call this morning, May 15, 2012, at 10:00 AM Eastern Time to discuss these results and provide a business update (see “Conference Call Information” below).

BUSINESS HIGHLIGHTS

Investment Banking

Investment banking revenue was $23.5 million for the first quarter of 2012, which included $1.0 million related to warrants received as compensation for activities as underwriter or placement agent valued using Black-Scholes, compared to $27.5 million in investment banking revenue, which included $4.3 million related to warrants received, for the first quarter of 2011 and $7.5 million in investment banking revenue, which included $1.0 million related to warrants received, for the fourth quarter of 2011. Private placement and underwriting revenue for the first quarter of 2012 was $15.7 million, compared to $25.7 million for the first quarter of 2011 and $7.0 million for the fourth quarter of 2011. Strategic advisory fees for the first quarter of 2012 were $7.7 million, compared to $1.8 million for the first quarter of 2011 and $0.5 million for the fourth quarter of 2011.

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