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| FBR Reports First Quarter Financial Results |
ARLINGTON, Va., Apr 24, 2012 (GlobeNewswire via COMTEX) --FBR & Co. (Nasdaq:FBRC) ("FBR" or the "Company"), a leading investment bank serving the middle market, today reported net after-tax earnings of $0.4 million, or $0.01 per share, for the first quarter 2012 compared to a net after-tax loss of $1.9 million, or $0.03 per share, in the first quarter 2011. These results compare to a net after-tax loss of $18.9 million, or $0.33 per share, for the quarter ended December 31, 2011. First quarter 2012 revenue was $39.1 million compared to $50.1 million in the first quarter 2011 and $27.7 million for the fourth quarter 2011. First quarter 2012 total expenses were $38.6 million, compared to $52.1 million in the first quarter 2011 and $46.9 million in the fourth quarter 2011. Non-compensation fixed expenses in the first quarter 2012 totaled $12.4 million, compared to $15.2 million in the first quarter 2011 and $14.3 million in the fourth quarter 2011. First Quarter Overview
-- Investment banking revenue was $16.2 million compared to $16.6 million
in the first quarter 2011 and $6.5 million in the fourth quarter 2011.
The Company was bookrunner on two IPOs and one private placement during
the quarter.
-- Institutional brokerage generated net revenue of $16.1 million compared
to $23.1 million in the first quarter 2011 and $14.9 million in the
fourth quarter 2011. Results in brokerage were impacted by continued
industry-wide pressure on equity commissions.
-- Mutual fund assets under management as of March 31, 2012 rose to $1.9
billion compared to $1.7 billion as of March 31, 2011 and $1.7 billion
at the end of 2011. Asset management revenue was $4.0 million in the
first quarter 2012, compared to $4.0 million in the first quarter 2011
and $3.5 million in the fourth quarter 2011.
-- The Company ended the first quarter with 281 employees, down from 465 at
the end of the first quarter 2011 and 295 at the beginning of 2012.
The Company periodically repurchased shares of its common stock during the quarter. For the quarter ended March 31, 2012, the Company repurchased 500,000 shares at an average price of $2.55 per share. The Company continues to have authority to repurchase 2.6 million shares. During the first quarter, shareholders' equity was relatively unchanged since year end 2011 and as of March 31, 2012, it totaled $225.3 million. As of March 31, 2012, the Company held $168.5 million in cash and its book value per share was $4.01. "An improved capital markets environment in the first quarter allowed us to complete several important transactions from our backlog," said Richard J. Hendrix, President and Chief Executive Officer of FBR. "This activity, combined with significantly lower expenses as a result of our recent restructuring, enabled us to deliver meaningfully improved results relative to a very difficult second half of 2011." Investors wishing to listen to the earnings call at 9:00 A.M. U.S. EDT, Wednesday, April 25, 2012, may do so via the Web or conference call at: Webcast link: http://investor.shareholder.com/media/eventdetail.cfm?eventid=106511&CompanyID=FBCM&e=1&mediaKey=A638ADF35B185A230531194DBE6AEB85 Conference call dial-in number (domestic, toll-free): 877.303.6433 Conference call dial-in number (international): 224.357.2198 Conference call code: 33390461 Replays of the earnings call will be available via webcast following the call. FBR & Co. (Nasdaq:FBRC) provides investment banking, merger and acquisition advisory, institutional brokerage, and research services through its subsidiary FBR Capital Markets & Co. FBR focuses capital and financial expertise on the following industry sectors: consumer; diversified industrials; energy & natural resources; financial institutions; insurance; real estate; and technology, media & telecom. FBR Fund Advisers, Inc., a subsidiary of FBR & Co., provides clients with a range of investment choices through The FBR Funds, a family of mutual funds. FBR is headquartered in the Washington, D.C. metropolitan area with offices throughout the United States. For more information, please visit www.fbr.com. The FBR & Co. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6405 Statements in this release concerning future performance, developments, events, market forecasts, revenues, expenses, earnings, run rates and any other guidance on present or future periods constitute forward-looking statements. These forward-looking statements are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include, but are not limited to, the effect of demand for public and private securities offerings, activity in the secondary securities markets, interest rates, the realization of gains and losses on principal investments, available technologies, competition for business and personnel, and general economic, political and market conditions. For a discussion of these and other risks and important factors that could affect FBR's future results and financial condition, see "Risk Factors" in Part I, Item 1A and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011; and other items throughout the Company's Form 10-K, and Current Reports on Form 8-K. Financial data follow.
FBR & CO.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Dollars in thousands,
except per share amounts)
(Unaudited)
Quarter ended
March 31,
------------------------
2012 2011
--------- ----------
REVENUES:
Investment banking:
Capital raising $ 14,174 $ 15,110
Advisory 2,006 1,460
Institutional brokerage:
Principal transactions 6,502 5,836
Agency commissions 9,550 17,255
Asset management fees 4,023 3,981
Net investment income 2,009 5,599
Interest, dividends & other 814 857
--------- ----------
Total revenues 39,078 50,098
EXPENSES:
Compensation and benefits 19,529 29,001
Professional services 2,983 3,955
Business development 2,877 3,646
Clearing and brokerage fees 2,384 2,674
Occupancy and equipment 4,310 5,105
Communications 3,668 4,351
Other operating expenses 2,866 3,336
--------- ----------
Total expenses 38,617 52,068
--------- ----------
Income (loss) before income
taxes 461 (1,970)
Income tax provision
(benefit) 23 (65)
--------- ----------
Net income (loss) $ 438 $ (1,905)
========= ==========
Basic earnings (loss) per
share $ 0.01 $ (0.03)
========= ==========
Diluted earnings (loss) per
share $ 0.01 $ (0.03)
========= ==========
Weighted average shares -
basic 56,380 63,510
========= ==========
Weighted average shares -
diluted 57,479 63,510
========= ==========
FBR & CO.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)
December
March 31, 31,
ASSETS 2012 2011
----------- -----------
Cash and cash equivalents $ 168,511 $ 135,792
Receivables:
Due from brokers, dealers and
clearing organizations 9,481 6,048
Customers 5,631 3,937
Other 3,200 6,854
Financial instruments owned, at
fair value 90,417 100,634
Other investments, at cost 25,621 25,744
Intangible assets, net 2,005 2,121
Furniture, equipment and
leasehold improvements, net 5,583 6,162
Prepaid expenses and other
assets 7,439 10,791
----------- -----------
Total assets $ 317,888 $ 298,083
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Securities sold but not yet
purchased, at fair value $ 43,371 $ 35,496
Accrued compensation and
benefits 10,054 15,760
Accounts payable, accrued
expenses and other liabilities 16,908 15,280
Due to brokers, dealers and
clearing organizations 22,282 6,250
----------- -----------
Total liabilities 92,615 72,786
----------- -----------
Shareholders' equity:
Common stock 55 55
Additional paid-in capital 417,442 412,551
Restricted stock units 23,661 29,013
Accumulated other comprehensive
income 18 19
Accumulated deficit (215,903) (216,341)
----------- -----------
Total shareholders' equity 225,273 225,297
----------- -----------
Total liabilities and
shareholders' equity $ 317,888 $ 298,083
=========== ===========
Book Value per Share $4.01 $3.99
Shares Outstanding (in
thousands) 56,167 56,490
FBR & CO.
Financial & Statistical Supplement - Operating Results
(Dollars in thousands)
(Unaudited)
Q-1 12 Q-4 11 Q-3 11 Q-2 11 Q-1 11
---------- ----------- ----------- ---------- ----------
Revenues $ 39,078 $ 27,737 $ 20,134 $ 49,182 $ 50,098
Expenses:
Variable 9,946 6,262 10,272 14,974 15,860
Fixed 28,671 34,801 35,625 37,146 36,208
Impairment of goodwill -- 5,882 -- -- --
---------- ----------- ----------- ---------- ----------
Income (loss) before income
taxes 461 (19,208) (25,763) (2,938) (1,970)
Income tax provision
(benefit) 23 (327) 373 (211) (65)
---------- ----------- ----------- ---------- ----------
Net income (loss) $ 438 $ (18,881) $ (26,136) $ (2,727) $ (1,905)
========== =========== =========== ========== ==========
Fixed expenses $ 28,671 $ 34,801 $ 35,625 $ 37,146 $ 36,208
Less: Non-cash expenses1 1,980 1,523 1,927 2,459 2,352
Corporate transaction
costs2 429 567 -- 986 --
Severance 38 3,496 442 -- 806
---------- ----------- ----------- ---------- ----------
Core fixed costs3 $ 26,224 $ 29,215 $ 33,256 $ 33,701 $ 33,050
========== =========== =========== ========== ==========
Statistical Data
Revenues per employee
(annualized) $ 556 $ 376 $ 189 $ 444 $ 431
========== =========== =========== ========== ==========
Employee count 281 295 426 443 465
========== =========== =========== ========== ==========
Net assets under management
(in millions)
Mutual funds $ 1,937.3 $ 1,684.8 $ 1,358.9 $ 1,635.3 $ 1,689.4
1 Non-cash expenses include compensation costs associated with stock-based awards and
amortization of intangible assets.
2 Corporate transaction costs include costs related to reductions in
physical space and restructuring costs.
3 Core fixed costs is a non-GAAP measurement used by management to analyze and assess
the Company's fixed operating costs. Management believes that this non-GAAP
measurement assists investors in understanding the impact of the items noted in
footnotes 1 and 2 and severance costs on the performance of the Company.
A limitation of utilizing this non-GAAP measure is that the GAAP accounting effects of
these items do in fact reflect the underlying financial results of the Company and
these effects should not be ignored in evaluating and analyzing the Company's
financial results. Therefore, management believes fixed expenses on a GAAP basis and
core fixed costs on a non-GAAP basis should be considered together.
This news release was distributed by GlobeNewswire, www.globenewswire.com SOURCE: FBR & Co. (Logo: http://media.primezone.com/cache/8973/int/7132.jpg) CONTACT: Media: Shannon Small at 703.469.1190 or ssmall@fbr.com Investors: Bradley J. Wright at 703.469.1080 or fbrcir@fbr.com |
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