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Rodman & Renshaw Capital Group Inc. (RODM) filed Quarterly Report for the period ended 2011-09-30.
Rodman & Renshaw Capital Group Inc. has a market cap of $23.89 million; its shares were traded at around $0.6873 with and P/S ratio of 0.29.
This is the annual revenues and earnings per share of RODM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of RODM.
Highlight of Business Operations:
Total revenue for the three months ended September 30, 2011 was $10.9 million, representing a decrease of 37% from $17.3 million in the comparable period of 2010. The decrease was primarily due to a $7.2 million decrease in investment banking revenues and a $5.8 million decrease in principal transactions revenues, partially offset by a $6.2 million increase in brokerage revenues.Employee compensation and benefits expense for the third quarter of 2011 was $12.1 million, compared to $13.5 million for the third quarter of 2010 and $15.2 million for the second quarter of 2011. Employee compensation and benefits expense for the three months ended September 30, 2011, excluding the $0.6 million in severance expense from compensation and excluding the $6.8 million principal transactions loss from revenue, represented 64% of transaction related revenue (revenue excluding principal transactions), compared to 74% in the comparable 2010 period. The Company targets a compensation ratio of 60% of transaction related revenue on an annualized basis.
Total revenue for the nine months ended September 30, 2011 was $53.6 million, representing a decrease of 11% from $60.2 million in the comparable period of 2010. The decrease was primarily due to a $15.1 million decrease in investment banking revenues and a $3.2 million decrease in principal transactions revenues, partially offset by an $11.8 million increase in brokerage revenues.
Employee compensation and benefits expense for the nine months ended September 30, 2011 was $45.2 million, compared to $40.5 million for the comparable 2010 period. Employee compensation and benefits expense for the nine months ended September 30, 2011, excluding the $1.3 million in severance expense from compensation and excluding the $14.4 million principal transactions loss from revenue, represented 64% of transaction related revenue (revenue excluding principal transactions), compared to 56% in the comparable 2010 period. The Company targets a compensation ratio of 60% of transaction related revenue on an annualized basis.
Based upon our current expense structure giving effect to the cost savings initiatives described above, it is estimated that for the Company to be cash-flow positive in 2012 it will need to generate approximately $43 million in investment banking cash revenue and approximately $30 million in brokerage revenue. Investment banking revenue for the first nine months of 2011 was approximately $50 million (approximately $41 million in cash and $9 million representing the value of warrants received) and our brokerage revenue since the Hudson acquisition is annualizing at an approximate $28 million run rate. If we cannot achieve positive cash-flow from operations during 2012, then we may need to satisfy our capital and liquidity requirements though cash inflows from financing activities.
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