IFMI Reports Third Quarter 2016 Financial Results

Third Quarter Operating Income of $2.7 million

Third Quarter Net Income of $1.5 million, or $0.09 per Diluted Share

Board Declares Dividend of $0.02 per Share

PHILADELPHIA and NEW YORK, Nov. 01, 2016 (GLOBE NEWSWIRE) -- Institutional Financial Markets, Inc. (NYSE MKT:IFMI), a financial services firm specializing in fixed income markets, today reported financial results for its third quarter ended September 30, 2016. 
  • Operating income was $2.7 million for the three months ended September 30, 2016, compared to $2.2 million for the three months ended June 30, 2016, and $0.6 million for the three months ended September 30, 2015. Operating income was $6.1 million for the nine months ended September 30, 2016, compared to $1.4 million for the nine months ended September 30, 2015.  
  • Net income was $1.5 million, or $0.09 per diluted share, for the three months ended September 30, 2016, compared to net income of $1.2 million, or $0.07 per diluted share, for the three months ended June 30, 2016 and net loss of $0.6 million, or $0.03 per diluted share, for the three months ended September 30, 2015. Net income was $3.0 million, or $0.17 per diluted share, for the nine months ended September 30, 2016, compared to net loss of $1.9 million, or $0.09 per diluted share, for the nine months ended September 30, 2015. 
  • Revenue was $14.1 million for the three months ended September 30, 2016, compared to $14.4 million for the three months ended June 30, 2016 and $12.9 million for the three months ended September 30, 2015. Revenue was $42.2 million for the nine months ended September 30, 2016, compared to $36.8 million for the nine months ended September 30, 2015. 
  • Total operating expenses were $11.4 million for the quarter ended September 30, 2016, compared to $12.2 million for the quarter ended June 30, 2016 and $12.4 million for the quarter ended September 30, 2015. Total operating expenses were $36.1 million for the nine months ended September 30, 2016, compared to $35.4 million for the nine months ended September 30, 2015. 
  • Compensation as a percentage of revenue was 53% for the three months ended September 30, 2016, compared to 58% for the three months ended June 30, 2016 and 54% for the three months ended September 30, 2015. Compensation as a percentage of revenue was 58% for the nine months ended September 30, 2016, compared to 57% for the nine months ended September 30, 2015. The number of IFMI employees was 83 as of September 30, 2016, compared to 80 as of June 30, 2016, and 93 as of September 30, 2015. 
  • Non-compensation operating expenses, excluding depreciation and amortization, were $3.9 million for the three months ended September 30, 2016, compared to $3.7 million for the three months ended June 30, 2016 and $5.2 million for the three months ended September 30, 2015. Non-compensation operating expenses, excluding depreciation and amortization, were $11.5 million for the nine months ended September 30, 2016, compared to $14.0 million for the nine months ended September 30, 2015, representing a decrease of 18%.

Lester Brafman, Chief Executive Officer of IFMI, said, "We remain pleased with IFMI's performance, especially as we report our third consecutive quarter of profitability. We continue to successfully execute on our business strategy with an eye towards stockholder value. Going forward, we will remain focused on growing our mortgage and SBA groups, adding revenue and growing businesses where our clients' needs are no longer addressed by larger financial institutions. We are also pleased to further enhance stockholder value through our share repurchase program and continuing to pay a quarterly dividend."

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