(Source: PrimeNewswire)
ARLINGTON, Va., Oct. 20, 2009 (GLOBE NEWSWIRE) -- FBR Capital Markets Corporation (Nasdaq:FBCM) (FBR Capital Markets or "the Company") today reported a pre-tax loss of $7.0 million and a net after-tax loss of $7.0 million, or $0.11 per diluted share, for the quarter ended September 30, 2009. These results compare to a pre-tax loss of $46.7 million and a net after-tax loss of $28.6 million, or $0.44 per diluted share, in the third quarter of 2008.
FBR Capital Markets' pre-tax core operating earnings were $1.4 million for the third quarter of 2009 compared to a pre-tax core operating loss of $26.2 million in the third quarter of 2008. This non-GAAP measurement excludes specific non-core items and non-cash expenses, including $5.2 million of stock-based compensation expense. See "Non-GAAP Financial Measures" below for a reconciliation of the Company's non-GAAP pre-tax core operating results to its GAAP pre-tax operating results for the specified 2009 and 2008 periods.
Third quarter 2009 net revenue was up 57% to $71.4 million, compared to $45.6 million in the third quarter of 2008, and up 51% from $47.3 million for the second quarter of 2009. The increased revenue production was primarily due to a meaningful increase in investment banking activity during the third quarter of 2009.
The Company continues its focus on maintaining a reduced cost structure. Third quarter 2009 non-interest expenses were $78.4 million, down 15% compared to the third quarter of 2008, despite the 57% increase in net revenues. Non-compensation expenses in the third quarter of 2009 were $31.3 million, compared with $36.6 million in the third quarter of 2008 and $33.4 million in the second quarter of 2009.
As of September 30, 2009, shareholders' equity totaled $295.8 million, with $244.1 million held in cash, and book value per share was $4.65.
"We have continued to take important steps in broadening our firm and increasing our capabilities to serve middle market issuers. During the third quarter, we launched a credit sales and trading business, onboarded our prime brokerage and listed option leadership teams, and acquired a New York-based corporate advisory firm," said Richard J. Hendrix, President and Chief Executive Officer of FBR Capital Markets. "Even as we have made these and other strategic additions to enhance and diversify our business, we were able to return the company to cash profitability within our core operations. I am confident that through the efforts and commitment of our entire team, we will continue this profit trend through the remainder of the year.
Investors wishing to listen to the earnings call at 8:30 A.M. U.S. EDT, Wednesday, October 21, 2009, may do so via the Web or conference call at:
Webcast link: http://investor.shareholder.com/media/eventdetail.cfm?mediaid=39128&c=FBCM&mediakey=B24792336432B6FD2DEC7C61E86C5B8D&e=0 Conference call dial-in number (domestic, toll-free): 888.477.8284 Conference call dial-in number (international): 201.604.5059 Conference call code: 218055
Replays of the webcast will be available after the call.
FBR Capital Markets Corporation (Nasdaq:FBCM) provides investment banking, merger and acquisition advisory, institutional brokerage, prime brokerage and research services through its subsidiary FBR Capital Markets & Co. FBR Capital Markets focuses capital and financial expertise on seven industry sectors: consumer; diversified industrials; energy & natural resources; financial institutions; insurance; real estate; and technology, media & telecom. Asset management services are provided by FBR Investment Management, Inc., and mutual funds are provided by FBR Fund Advisers, Inc.; both companies are subsidiaries of FBR Capital Markets Corporation. FBR Capital Markets is headquartered in the Washington, D.C. metropolitan area with offices throughout the United States and in London. For more information, please visit www.fbrcapitalmarkets.com.
The FBR Capital Markets Corporation 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 for present or future periods constitute forward-looking statements that 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 offerings, activity in the secondary securities markets, interest rates, costs of borrowing, interest spreads, risks associated with merchant banking investments, the realization of gains and losses on principal investments, available technologies, competition for business and personnel, and general economic, political and market conditions.
