KBW Inc. (KBW, Financial) filed Quarterly Report for the period ended 2011-03-31.
Kbw Inc. has a market cap of $797.7 million; its shares were traded at around $21.8 with a P/E ratio of 34 and P/S ratio of 1.9. The dividend yield of Kbw Inc. stocks is 0.9%.
Total revenues were $95.2 million for the three months ended March 31, 2011 compared with $133.3 million for the same period in 2010, a decrease of $38.1 million, or 28.6%. This decrease was primarily due to lower investment banking revenues of $37.6 million for the three months ended March 31, 2011, a decrease of $32.3 million compared with the three months ended March 31, 2010.
Total expenses were $87.4 million for the three months ended March 31, 2011 compared with $113.0 million for the same period in 2010, a decrease of $25.6 million, or 22.7%. This decrease was due to lower compensation and benefits expense and non-compensation expenses of $25.2 million and $0.4 million, respectively.
Investment banking revenue was $ 37.6 million for the three months ended March 31, 2011 compared with $70.0 million for the same period in 2010, a decrease of $32.3 million, or 46.2%. Capital markets revenue was $28.2 million for the three months ended March 31, 2011 compared with a quarterly record of $53.6 million for the same period in 2010, a decrease of $25.4 million, primarily due to a lower number of U.S. equity capital market transactions in 2011 compared with the first quarter of 2010. M&A and advisory revenue was $9.5 million for the three months ended March 31, 2011 compared with $16.4 million for the same period in 2010, a decrease of $6.9 million. This decrease was primarily due to a lower number of M&A and advisory engagements completed in 2011.
Commissions revenue was $34.4 million for the three months ended March 31, 2011 compared with $35.4 million for the same period in 2010, a decrease of $1.0 million, or 2.8%, reflecting lower trading volumes. U.S. equity commissions were $23.8 million for the three months ended March 31, 2011 compared with $25.0 million for the same 2010 period, a decrease of $1.2 million, or 4.8%. Non-U.S. equity commissions were $10.6 million for the three months ended March 31, 2011 compared with $10.4 million for the same period in 2010, an increase of $0.2 million, or 1.9%.
Principal transactions, net resulted in revenue of $17.3 million for the three months ended March 31, 2011 compared with $19.0 million for the same period in 2010, a decrease of $1.7 million, or 9.0%. The decrease was primarily due to lower trading gains in 2011. Fixed income revenue was $12.3 million for the three months ended March 31, 2011 compared with $12.9 million for 2010, a decrease of $0.6 million, or 4.7%. Trading for our own account, including firm investments, resulted in a net gain of $5.5 million for the three months ended March 31, 2011 compared with $7.4 million for the same period in 2010. Equity market making resulted in a net loss of $1.2 million for the three months ended March 31, 2011 compared with a net loss of $0.9 million for the same period in 2010. The realized gains and change in the fair value of our trust preferred backed collateralized debt obligations and related securities owned resulted in a net gain of $0.8 million for the three months ended March 31, 2011 compared with a net loss of $0.4 million for the same period in 2010.
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Kbw Inc. has a market cap of $797.7 million; its shares were traded at around $21.8 with a P/E ratio of 34 and P/S ratio of 1.9. The dividend yield of Kbw Inc. stocks is 0.9%.
Highlight of Business Operations:
We recorded net income of $4.6 million, or $0.13 per diluted share, for the three months ended March 31, 2011 compared with $11.6 million, or $0.32 per diluted share for the three months ended March 31, 2010. After adjusting for the 2006 one-time restricted stock awards granted to employees in connection with our IPO, our non-GAAP operating net income was $13.1 million, or $0.36 per diluted share for the three months ended March 31, 2010. See 2010 Non-GAAP Financial Measures for a reconciliation of our non-GAAP measures to their corresponding GAAP amounts.Total revenues were $95.2 million for the three months ended March 31, 2011 compared with $133.3 million for the same period in 2010, a decrease of $38.1 million, or 28.6%. This decrease was primarily due to lower investment banking revenues of $37.6 million for the three months ended March 31, 2011, a decrease of $32.3 million compared with the three months ended March 31, 2010.
Total expenses were $87.4 million for the three months ended March 31, 2011 compared with $113.0 million for the same period in 2010, a decrease of $25.6 million, or 22.7%. This decrease was due to lower compensation and benefits expense and non-compensation expenses of $25.2 million and $0.4 million, respectively.
Investment banking revenue was $ 37.6 million for the three months ended March 31, 2011 compared with $70.0 million for the same period in 2010, a decrease of $32.3 million, or 46.2%. Capital markets revenue was $28.2 million for the three months ended March 31, 2011 compared with a quarterly record of $53.6 million for the same period in 2010, a decrease of $25.4 million, primarily due to a lower number of U.S. equity capital market transactions in 2011 compared with the first quarter of 2010. M&A and advisory revenue was $9.5 million for the three months ended March 31, 2011 compared with $16.4 million for the same period in 2010, a decrease of $6.9 million. This decrease was primarily due to a lower number of M&A and advisory engagements completed in 2011.
Commissions revenue was $34.4 million for the three months ended March 31, 2011 compared with $35.4 million for the same period in 2010, a decrease of $1.0 million, or 2.8%, reflecting lower trading volumes. U.S. equity commissions were $23.8 million for the three months ended March 31, 2011 compared with $25.0 million for the same 2010 period, a decrease of $1.2 million, or 4.8%. Non-U.S. equity commissions were $10.6 million for the three months ended March 31, 2011 compared with $10.4 million for the same period in 2010, an increase of $0.2 million, or 1.9%.
Principal transactions, net resulted in revenue of $17.3 million for the three months ended March 31, 2011 compared with $19.0 million for the same period in 2010, a decrease of $1.7 million, or 9.0%. The decrease was primarily due to lower trading gains in 2011. Fixed income revenue was $12.3 million for the three months ended March 31, 2011 compared with $12.9 million for 2010, a decrease of $0.6 million, or 4.7%. Trading for our own account, including firm investments, resulted in a net gain of $5.5 million for the three months ended March 31, 2011 compared with $7.4 million for the same period in 2010. Equity market making resulted in a net loss of $1.2 million for the three months ended March 31, 2011 compared with a net loss of $0.9 million for the same period in 2010. The realized gains and change in the fair value of our trust preferred backed collateralized debt obligations and related securities owned resulted in a net gain of $0.8 million for the three months ended March 31, 2011 compared with a net loss of $0.4 million for the same period in 2010.
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