Broadpoint Securities Group Inc. (BPSG, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $780.32 million; its shares were traded at around $6.62 with a P/E ratio of 16.97 and P/S ratio of 5.38.
Net revenue in the third quarter of 2009 was $97.3 million, an increase of $65.0 million, or 201 percent, compared to $32.3 million in the third quarter of 2008. Revenues from principal transactions and commissions were $71.9 million in the third quarter of 2009, an increase of $46.9 million, or 187 percent, compared to $25.0 million in the third quarter of 2008, due to increased revenues in the Broadpoint Descap division of $27.9 million, the Debt Capital Markets division of $14.4 million and the Equities division of $4.4 million. Investment Banking revenues increased $8.4 million over the third quarter of 2008 to $12.4 million, primarily due to an increase in advisory fees. Investment gains of $2.7 million increased $3.3 million compared to a loss of $0.6 million the third quarter of 2008 due to an increase in the value of the Companys investment in the FATV fund. Net interest income increased by $5.4 million over the third quarter of 2008 to $8.6 million in the third quarter of 2009, primarily due to coupon interest generated on higher inventory levels at Broadpoint Descap and lower financing costs. Fees and other revenues of $1.6 million increased by $1.0 million over the third quarter of 2008, primarily due to an increase in payments received for equity research.
Non-Compensation expenses of $12.1 million increased by $0.1 million, or 1 percent, compared to $12.0 million in the third quarter of 2008. An increase in most of the Companys non-compensation expense categories in the third quarter of 2009 was offset by the $2.3 million in restructuring expense that was incurred in the third quarter of 2008. The $0.5 million increase in Clearing, settlement, and brokerage expense was primarily driven by increased levels of trading volume in the Broadpoint Descap and Debt Capital Markets segments. Communications and data processing expense decreased by $0.6 million primarily due to excess costs incurred in the third quarter of 2008 as a result of the shutdown of the Companys legacy equity business, which exceeded the increase in expense that was a direct result of increased demand for market data and technology connections due to increased headcount in our Broadpoint Descap and Debt Capital Markets segments. Selling expense increased by $0.7 million primarily due to an increase in activity in the Investment Banking, Debt Capital Markets and Broadpoint Descap segments. Occupancy and depreciation expense increased $0.5 million due to the leasing of additional office space for the Companys Investment Banking and Equities segments. Other expense increased $1.2 million primarily due to the amortization of intangibles related to the Broadpoint AmTech and Gleacher Partners acquisitions and a new SIPC assessment fee, which were partially offset by a decrease in legal expense. The Company completed its restructuring in the third quarter of 2008. There were no restructuring expenses incurred during the third quarter of 2009 compared to the $2.3 million of restructuring expenses incurred during the third quarter of 2008.
Broadpoint Descap net revenues of $44.4 million in the third quarter of 2009 increased $30.8 million, or 226 percent, compared to the third quarter of 2008. Commissions and principal transactions revenue increased $27.9 million, or 265 percent, to $38.4 million due to increased trading volumes and an overall widening of bid/ask spreads in its markets. Net interest income increased $2.7 million to $5.8 million due to higher inventory levels and higher coupon paying securities in the portfolio.
Debt Capital Markets net revenues of $31.9 million in the third quarter of 2009 increased $16.5 million, or 108 percent, compared to $15.3 million in the third quarter of 2008. The $14.4 million increase in commissions and principal transactions revenue was due to widening bid/ask spreads and increased trading volume. Investment banking revenues increased due to an increase in advisory fees.
Net revenues for the first nine months of 2009 were $260.6 million, an increase of $176.9 million, or 211 percent, from $83.7 million reported in the first nine months of 2008. The Company reported a pre-tax profit from continuing operations of $47.4 million compared to a pre-tax loss of $16.7 million in the first nine months of 2008. The Company reported a net profit of $45.1 million, or diluted earnings per share of $0.47, for the first nine months of 2009, compared to a net loss of $19.2 million, or $0.28 loss per common share, for the first nine months of 2008.
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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 $780.32 million; its shares were traded at around $6.62 with a P/E ratio of 16.97 and P/S ratio of 5.38.
Highlight of Business Operations:
Net revenues for the third quarter of 2009 were $97.3 million, an increase of $65.0 million, or 201 percent, from $32.3 million in the third quarter of 2008. The Company reported a pre-tax profit from continuing operations of $19.1 million compared to a pre-tax loss of $7.9 million in the prior year quarter. The Company reported a net profit of $24.0 million, or diluted earnings per common share of $0.20, for the third quarter of 2009, compared to a net loss of $8.8 million, or $0.13 loss per common share, for the third quarter of 2008.Net revenue in the third quarter of 2009 was $97.3 million, an increase of $65.0 million, or 201 percent, compared to $32.3 million in the third quarter of 2008. Revenues from principal transactions and commissions were $71.9 million in the third quarter of 2009, an increase of $46.9 million, or 187 percent, compared to $25.0 million in the third quarter of 2008, due to increased revenues in the Broadpoint Descap division of $27.9 million, the Debt Capital Markets division of $14.4 million and the Equities division of $4.4 million. Investment Banking revenues increased $8.4 million over the third quarter of 2008 to $12.4 million, primarily due to an increase in advisory fees. Investment gains of $2.7 million increased $3.3 million compared to a loss of $0.6 million the third quarter of 2008 due to an increase in the value of the Companys investment in the FATV fund. Net interest income increased by $5.4 million over the third quarter of 2008 to $8.6 million in the third quarter of 2009, primarily due to coupon interest generated on higher inventory levels at Broadpoint Descap and lower financing costs. Fees and other revenues of $1.6 million increased by $1.0 million over the third quarter of 2008, primarily due to an increase in payments received for equity research.
Non-Compensation expenses of $12.1 million increased by $0.1 million, or 1 percent, compared to $12.0 million in the third quarter of 2008. An increase in most of the Companys non-compensation expense categories in the third quarter of 2009 was offset by the $2.3 million in restructuring expense that was incurred in the third quarter of 2008. The $0.5 million increase in Clearing, settlement, and brokerage expense was primarily driven by increased levels of trading volume in the Broadpoint Descap and Debt Capital Markets segments. Communications and data processing expense decreased by $0.6 million primarily due to excess costs incurred in the third quarter of 2008 as a result of the shutdown of the Companys legacy equity business, which exceeded the increase in expense that was a direct result of increased demand for market data and technology connections due to increased headcount in our Broadpoint Descap and Debt Capital Markets segments. Selling expense increased by $0.7 million primarily due to an increase in activity in the Investment Banking, Debt Capital Markets and Broadpoint Descap segments. Occupancy and depreciation expense increased $0.5 million due to the leasing of additional office space for the Companys Investment Banking and Equities segments. Other expense increased $1.2 million primarily due to the amortization of intangibles related to the Broadpoint AmTech and Gleacher Partners acquisitions and a new SIPC assessment fee, which were partially offset by a decrease in legal expense. The Company completed its restructuring in the third quarter of 2008. There were no restructuring expenses incurred during the third quarter of 2009 compared to the $2.3 million of restructuring expenses incurred during the third quarter of 2008.
Broadpoint Descap net revenues of $44.4 million in the third quarter of 2009 increased $30.8 million, or 226 percent, compared to the third quarter of 2008. Commissions and principal transactions revenue increased $27.9 million, or 265 percent, to $38.4 million due to increased trading volumes and an overall widening of bid/ask spreads in its markets. Net interest income increased $2.7 million to $5.8 million due to higher inventory levels and higher coupon paying securities in the portfolio.
Debt Capital Markets net revenues of $31.9 million in the third quarter of 2009 increased $16.5 million, or 108 percent, compared to $15.3 million in the third quarter of 2008. The $14.4 million increase in commissions and principal transactions revenue was due to widening bid/ask spreads and increased trading volume. Investment banking revenues increased due to an increase in advisory fees.
Net revenues for the first nine months of 2009 were $260.6 million, an increase of $176.9 million, or 211 percent, from $83.7 million reported in the first nine months of 2008. The Company reported a pre-tax profit from continuing operations of $47.4 million compared to a pre-tax loss of $16.7 million in the first nine months of 2008. The Company reported a net profit of $45.1 million, or diluted earnings per share of $0.47, for the first nine months of 2009, compared to a net loss of $19.2 million, or $0.28 loss per common share, for the first nine months of 2008.
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