Broadpoint Securities Group Inc. (BPSG, Financial) filed Quarterly Report for the period ended 2009-06-30.
Broadpoint Gleacher Securities Group Inc. is an independent investment bank that provides corporations and institutional investors with strategic research-based investment opportunities capital raising and financial advisory services. The company also offers mergers and acquisitions advisory services as well as restructuring and recapitalization advisory services to a range of constituents including corporations creditors labor related parties government agencies litigation claimants plan sponsors and stalking horse bidders or other potential acquirers. The Company offers a diverse range of products through the Debt Capital Markets Investment Banking and Broadpoint DESCAP divisions of Broadpoint Capital Inc. its new Investment Banking financial advisory subsidiary Gleacher Partners LLC its Equity Capital Markets subsidiary Broadpoint AmTech and FA Technology Ventures Inc. its venture capital subsidiary. Broadpoint Securities Group Inc. has a market cap of $491 million; its shares were traded at around $6.04 with a P/E ratio of 26.3 and P/S ratio of 3.3.
Net revenue in the second quarter of 2009 was $92.7 million, an increase of $58.7 million, or 172 percent, compared to $34.1 million in the second quarter of 2008. Revenues from principal transactions and commissions were $70.0 million in the second quarter of 2009, an increase of $48.1 million, or 220 percent compared to $21.8 million in the second quarter of 2008, due to increased revenues in the Broadpoint Descap division of $23.3 million, the Debt Capital Markets division of $22.2 million and the Equities division of $2.9 million. Investment Banking revenues of $13.0 million increased $3.8 million, or 40 percent, compared to $9.3 million in the second quarter of 2008, primarily due to an increase in advisory fees. Investment gains of $1.0 million increased $0.8 million compared to $0.2 million in the second quarter of 2008 due to an increase in the value of our investment in our FATV fund. Net interest income of $7.1 million increased by $4.9 million over the second quarter of 2008, primarily due to coupon interest generated on higher inventory levels at Broadpoint Descap and lower financing costs. Fees and other revenues of $1.7 million increased by $1.1 million over the second quarter of 2008, primarily due to an increase in payments received for equity research.
Non-Compensation expenses of $10.2 million increased by $2.0 million, or 24 percent, compared to $8.2 million in the second quarter of 2009. The increase in Clearing, settlement, and brokerage, Communications and data processing, and Selling expenses was primarily driven by increased headcount and activity in the Debt Capital Markets and Broadpoint Descap divisions. The remainder of the increase was in Other expenses and was comprised of expenses associated with the acquisition of Gleacher Partners and the amortization of intangibles related to the Broadpoint AmTech and Gleacher Partners acquisitions. The Company completed its restructuring in the third quarter of 2008. There were no restructuring expenses in the second quarter of 2009 compared to the $0.9 million in restructuring expenses in the second quarter of 2008.
Broadpoint Descap net revenues of $38.3 million in the second quarter of 2009 increased $27.7 million, or 261 percent, compared to the second quarter of 2008. Commissions and principal transactions revenue increased $23.3 million, or 254 percent, to $32.5 million due to increased trading volumes and an overall widening of bid/ask spreads in their markets. Net interest increased $4.1 million to $5.5 million due to higher inventory levels and higher coupon paying securities in the portfolio partially offset by inter-company financing charges during the second quarter of 2009 and decreased funding rates.
Debt Capital Markets net revenues of $36.1 million in the second quarter of 2009 increased $22.1 million, or 159 percent, compared to $13.9 million in the second quarter of 2008. The $22.2 million increase in commissions and principal transactions revenue was due to widening spreads and increased trading volume. Investment banking revenues increased due to advisory fees, which were partially offset by a decrease in placement fees. Net interest decreased $0.7 million due to lower inventory levels.
Net revenues for the first six months of 2009 were $163.3 million, an increase of $111.9 million, or 218 percent, from $51.4 million reported in the first six months of 2008. The Company reported a net profit of $21.1 million or $0.27 per common share for the first six months of 2009 compared to a net loss of $10.3 million or $0.16 loss per common share for the first six months of 2008. Pre-tax income from continuing operations in the first six months of 2009 was $28.4 million compared to a loss of $8.7 million in the prior year period.
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Broadpoint Gleacher Securities Group Inc. is an independent investment bank that provides corporations and institutional investors with strategic research-based investment opportunities capital raising and financial advisory services. The company also offers mergers and acquisitions advisory services as well as restructuring and recapitalization advisory services to a range of constituents including corporations creditors labor related parties government agencies litigation claimants plan sponsors and stalking horse bidders or other potential acquirers. The Company offers a diverse range of products through the Debt Capital Markets Investment Banking and Broadpoint DESCAP divisions of Broadpoint Capital Inc. its new Investment Banking financial advisory subsidiary Gleacher Partners LLC its Equity Capital Markets subsidiary Broadpoint AmTech and FA Technology Ventures Inc. its venture capital subsidiary. Broadpoint Securities Group Inc. has a market cap of $491 million; its shares were traded at around $6.04 with a P/E ratio of 26.3 and P/S ratio of 3.3.
Highlight of Business Operations:
Net revenues for the second quarter of 2009 were $92.7 million, an increase of $58.7 million, or 172 percent, from $34.1 million in the second quarter of 2008. Pre-tax profit from continuing operations in the second quarter was $19.0 million compared to a loss of $0.3 million in the prior year quarter. The Company reported a net profit of $16.1 million, or $0.19 per common share, for the second quarter of 2009, compared to a net loss of $1.1 million, or $0.02 loss per common share, for the second quarter of 2008.Net revenue in the second quarter of 2009 was $92.7 million, an increase of $58.7 million, or 172 percent, compared to $34.1 million in the second quarter of 2008. Revenues from principal transactions and commissions were $70.0 million in the second quarter of 2009, an increase of $48.1 million, or 220 percent compared to $21.8 million in the second quarter of 2008, due to increased revenues in the Broadpoint Descap division of $23.3 million, the Debt Capital Markets division of $22.2 million and the Equities division of $2.9 million. Investment Banking revenues of $13.0 million increased $3.8 million, or 40 percent, compared to $9.3 million in the second quarter of 2008, primarily due to an increase in advisory fees. Investment gains of $1.0 million increased $0.8 million compared to $0.2 million in the second quarter of 2008 due to an increase in the value of our investment in our FATV fund. Net interest income of $7.1 million increased by $4.9 million over the second quarter of 2008, primarily due to coupon interest generated on higher inventory levels at Broadpoint Descap and lower financing costs. Fees and other revenues of $1.7 million increased by $1.1 million over the second quarter of 2008, primarily due to an increase in payments received for equity research.
Non-Compensation expenses of $10.2 million increased by $2.0 million, or 24 percent, compared to $8.2 million in the second quarter of 2009. The increase in Clearing, settlement, and brokerage, Communications and data processing, and Selling expenses was primarily driven by increased headcount and activity in the Debt Capital Markets and Broadpoint Descap divisions. The remainder of the increase was in Other expenses and was comprised of expenses associated with the acquisition of Gleacher Partners and the amortization of intangibles related to the Broadpoint AmTech and Gleacher Partners acquisitions. The Company completed its restructuring in the third quarter of 2008. There were no restructuring expenses in the second quarter of 2009 compared to the $0.9 million in restructuring expenses in the second quarter of 2008.
Broadpoint Descap net revenues of $38.3 million in the second quarter of 2009 increased $27.7 million, or 261 percent, compared to the second quarter of 2008. Commissions and principal transactions revenue increased $23.3 million, or 254 percent, to $32.5 million due to increased trading volumes and an overall widening of bid/ask spreads in their markets. Net interest increased $4.1 million to $5.5 million due to higher inventory levels and higher coupon paying securities in the portfolio partially offset by inter-company financing charges during the second quarter of 2009 and decreased funding rates.
Debt Capital Markets net revenues of $36.1 million in the second quarter of 2009 increased $22.1 million, or 159 percent, compared to $13.9 million in the second quarter of 2008. The $22.2 million increase in commissions and principal transactions revenue was due to widening spreads and increased trading volume. Investment banking revenues increased due to advisory fees, which were partially offset by a decrease in placement fees. Net interest decreased $0.7 million due to lower inventory levels.
Net revenues for the first six months of 2009 were $163.3 million, an increase of $111.9 million, or 218 percent, from $51.4 million reported in the first six months of 2008. The Company reported a net profit of $21.1 million or $0.27 per common share for the first six months of 2009 compared to a net loss of $10.3 million or $0.16 loss per common share for the first six months of 2008. Pre-tax income from continuing operations in the first six months of 2009 was $28.4 million compared to a loss of $8.7 million in the prior year period.
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