LaBranche & Co. Inc.reported financial results for the third quarter ended September 30.
In a press release on 19 October, the company reported a net loss after tax of $ 10.5 million, or $ 0.25 per share, for the third quarter 2010. This compares to a net loss after tax of 8.9 million, or $ 0.17 per share, for the third quarter 2009.
On a pro forma basis, the company reported a net loss from continuing operations for the third quarter of 2010 of $ 10.5 million, or $ 0.25 per share, compared to pro forma net loss from continuing operations of $ 11.4 million, or $ 0.21 per share, for the third quarter of 2009.
The company reported a net loss after tax of $ 24.2 million, or $ 0.54 per share, for the nine months ended September 30, which includes a net cost of 4.3 million, related to the redemption in February 2010 all of its remaining outstanding 11% Senior Notes due 2012. This compares to a net loss after tax of 25.3 million or $ 0.45 per share for the nine months ended September 30, 2009, which includes the net income of $ 0.6 million related to the redemption of a portion of exceptional 11 percent Senior Notes of the company as a result of 2012.
On a pro forma basis, the company reported a net loss after tax from continuing operations for the nine months ended September 30, of $ 23.5 million, or $ 0.52 per share, compared to a net loss of pro-forma after tax from continuing operations of $ 38.1 million, or $ 0.68 per share, for the nine months ended September 30, 2009.These pro-forma results exclude expenditure and income, respectively, on early extinguishment of debt related periods, as well as discontinued operations related to former Designated Market Maker company's business.
The negative results reported for the third quarter of 2010 are primarily attributable to losses in equity options market society split and losses in its institutional mediation. during the third quarter of 2010, the company stopped offering services to be performed in leveraged lending and fixed-income products in its institutional mediation.The company also personalized changes and continued to reduce the positions of options in its equity options market making business that generated a substantial part of the losses in the third quarter.
In October 2010, FINRA approved a merger proposal for structured products LaBranche, LLC (SMP) and LaBranche Financial Services, LLC (IFL) combined in a single entity. the company expects to complete the merger in the fourth quarter of 2010. the entity superstita Fusion will change its name in LaBranche Capital, LLC., the company believes that this merger will deploy its resources, aggregating the capital of LSP and financial statement in a firm and allowing the company to continue to reduce additional layoffs and expenses.
In the third quarter of 2010, the company has continued its efforts to reduce substantially overhead and other operating costs, such as employee compensation, communications and financing of the costs of inventory. the company believes that these cost reduction measures will better align its cost structure with continuing operations.
Continued ...
No comments:
Post a Comment