HFF Inc. (HF, Financial) filed Quarterly Report for the period ended 2012-06-30.
Hff, Inc. has a market cap of $550.5 million; its shares were traded at around $13.01 with a P/E ratio of 13.8 and P/S ratio of 2.2.
Personnel expenses that are not directly attributable to providing services to our clients decreased $1.9 million, or 25.7%, to $5.6 million for the three months ended June 30, 2012 from $7.5 million for the same period in 2011. The decrease is primarily related to a decrease in the 2012 performance-based firm and office profit participation plan expense of $1.9 million and the mark-to-market adjustment on the existing restricted stock awards accounted as liability awards which are revalued each quarter and resulted in decreased expense of $0.8 million during the second quarter 2012 as compared to the second quarter 2011. These decreases were partially offset by the continued vesting of the 2011 firm and office profit participation plan awards of $0.6 million of which there was no such comparable expense in 2011. Personnel expenses are impacted quarterly by the adjustments made to accrue for the estimated expense associated with the performance-based firm and office profit participation plans. Both the firm and office profit participation plans allow for payments in the form of both cash and share-based awards based on the decision of the Companys board of directors.
The stock compensation cost included in personnel expenses was $0.2 million and $0.8 million for the three months ended June 30, 2012 and 2011, respectively. This decrease is primarily due to the mark-to-market adjustment and the reversal of expense due to forfeitures on the restricted stock awards accounted for as liability awards which resulted in $0.4 million of income. Partially offsetting this decrease is $0.3 million of expense for the 2011 firm and office profit participation plan stock awards. At June 30, 2012, there was approximately $3.5 million of unrecognized compensation cost related to share based awards. The weighted average remaining contractual term of the unvested restricted stock units is 1.4 years as of June 30, 2012. The weighted average remaining contractual term of the unvested options is 10.6 years as of June 30, 2012.
The cost of services for the six months ended June 30, 2012 increased $4.3 million, or 6.6%, to $69.9 million from $65.5 million for the same period in 2011. The increase is primarily the result of the increase in commissions and other incentive compensation directly related to the increase in capital markets services revenues. Additionally, contributing to the increase in cost of services are higher salary costs from increased headcount to support the increase in production volume. Cost of services as a percentage of capital markets services revenues was approximately 60.5% and 58.2% for the six month periods ended June 30, 2012 and June 30, 2011, respectively. This percentage increase is primarily attributable to the fixed portion of cost of services, such as salaries for our analysts and fringe benefit costs, increasing faster than the revenue base.
Personnel expenses that are not directly attributable to providing services to our clients for the six months ended June 30, 2012 increased $0.6 million, or 4.7%, to $12.4 million from $11.8 million for the same period in 2011. The increase is primarily related to an increase in salary and benefit costs from the increased headcount. Additionally, there was an increase from the continued vesting of the 2011 firm and office profit participation plan awards of $1.1 million ($ 0.5 million in the form of stock compensation) of which there was no such comparable expense in 2011 which was offset by a $1.1 million decrease in the 2012 firm and office profit participation plan expense resulting from the lower operating income during the six months ended June 30, 2012. Personnel expenses are impacted quarterly by the adjustments made to accrue for the estimated expense associated with the performance-based firm and office profit participation plans. Both the firm and office profit participation plans allow for payments in the form of both cash and share-based awards based on the decision of the Companys board of directors.
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Hff, Inc. has a market cap of $550.5 million; its shares were traded at around $13.01 with a P/E ratio of 13.8 and P/S ratio of 2.2.
Highlight of Business Operations:
The cost of services for the three months ended June 30, 2012 decreased $2.6 million, or 6.5%, to $37.5 million from $40.1 million for the same period in 2011. The decrease is primarily the result of the decrease in commissions and other incentive compensation directly related to the 9.9% decrease in capital markets services revenues. Slightly offsetting the decrease in cost of services are higher salary costs from increased headcount. Cost of services as a percentage of capital markets services revenues was approximately 57.8% and 55.7% for the three month periods ended June 30, 2012 and June 30, 2011, respectively.Personnel expenses that are not directly attributable to providing services to our clients decreased $1.9 million, or 25.7%, to $5.6 million for the three months ended June 30, 2012 from $7.5 million for the same period in 2011. The decrease is primarily related to a decrease in the 2012 performance-based firm and office profit participation plan expense of $1.9 million and the mark-to-market adjustment on the existing restricted stock awards accounted as liability awards which are revalued each quarter and resulted in decreased expense of $0.8 million during the second quarter 2012 as compared to the second quarter 2011. These decreases were partially offset by the continued vesting of the 2011 firm and office profit participation plan awards of $0.6 million of which there was no such comparable expense in 2011. Personnel expenses are impacted quarterly by the adjustments made to accrue for the estimated expense associated with the performance-based firm and office profit participation plans. Both the firm and office profit participation plans allow for payments in the form of both cash and share-based awards based on the decision of the Companys board of directors.
The stock compensation cost included in personnel expenses was $0.2 million and $0.8 million for the three months ended June 30, 2012 and 2011, respectively. This decrease is primarily due to the mark-to-market adjustment and the reversal of expense due to forfeitures on the restricted stock awards accounted for as liability awards which resulted in $0.4 million of income. Partially offsetting this decrease is $0.3 million of expense for the 2011 firm and office profit participation plan stock awards. At June 30, 2012, there was approximately $3.5 million of unrecognized compensation cost related to share based awards. The weighted average remaining contractual term of the unvested restricted stock units is 1.4 years as of June 30, 2012. The weighted average remaining contractual term of the unvested options is 10.6 years as of June 30, 2012.
The cost of services for the six months ended June 30, 2012 increased $4.3 million, or 6.6%, to $69.9 million from $65.5 million for the same period in 2011. The increase is primarily the result of the increase in commissions and other incentive compensation directly related to the increase in capital markets services revenues. Additionally, contributing to the increase in cost of services are higher salary costs from increased headcount to support the increase in production volume. Cost of services as a percentage of capital markets services revenues was approximately 60.5% and 58.2% for the six month periods ended June 30, 2012 and June 30, 2011, respectively. This percentage increase is primarily attributable to the fixed portion of cost of services, such as salaries for our analysts and fringe benefit costs, increasing faster than the revenue base.
Personnel expenses that are not directly attributable to providing services to our clients for the six months ended June 30, 2012 increased $0.6 million, or 4.7%, to $12.4 million from $11.8 million for the same period in 2011. The increase is primarily related to an increase in salary and benefit costs from the increased headcount. Additionally, there was an increase from the continued vesting of the 2011 firm and office profit participation plan awards of $1.1 million ($ 0.5 million in the form of stock compensation) of which there was no such comparable expense in 2011 which was offset by a $1.1 million decrease in the 2012 firm and office profit participation plan expense resulting from the lower operating income during the six months ended June 30, 2012. Personnel expenses are impacted quarterly by the adjustments made to accrue for the estimated expense associated with the performance-based firm and office profit participation plans. Both the firm and office profit participation plans allow for payments in the form of both cash and share-based awards based on the decision of the Companys board of directors.
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