LaBranche Q4 Swings To Loss On A Pro Forma Basis - Update
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26 January 2007, 08:38am ET
(RTTNews) - LaBranche & Co. Inc. (LAB), a registered broker-dealer, on Friday announced fourth quarter financial results, reporting net income and revenues that rose from the year ago period. However, pro forma net income was a loss for the quarter.
The New York City-based company's quarterly net income was $39.07 million or $0.63 per share, compared to $17.37 million or $0.28 per share in the same quarter a year ago.Net income included restructuring charges of $3.7 million and a net benefit of $1.9 million due to a net decrease in tax and legal contingencies.
Mentioned Last Change
LAB 9.21 0.21dollars or (2.33%)
For the quarter, the company reported a pro forma net loss of $1.78 million or $0.03 per share, compared to a net income of $11.96 million or $0.20 per share. The revenues for the quarter included a pre-tax gain of $72.3 million in connection with the increase in fair value of restricted shares of NYSE Group. This has been adjusted to calculate the pro forma earnings. On average, four analysts surveyed by First Call/Thomson Financial expected the company to earn $0.06 per share. Revenues, net of interest expense, increased to $118.56 million for the quarter from $80.56 million recorded in the last quarter of the previous year. The Street estimated revenues of $108.37 million for the period.
Net income for the fiscal year was $136.80 million or $2.22 per share, compared to $37.52 million or $0.61 per share reported in the previous year.
The company's pro forma net income for the year was $1.15 million or $0.02 per share, compared to $32.10 million or $0.53 per share last year. Analysts were looking for earnings of $0.11 per share.
Revenues, net of interest expense, for the year surged to $433.50 million from $250.69 million last year. Wall Street anticipated revenues of $416.51 million for the year.
For the twelve months ended December 31, 2006, revenues, net of interest expense, increased to $433.5 million from $250.7 million in the comparable prior year period.
LAB closed Thursday's trading at $9.00, down $0.36 on a volume of 716K shares.
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