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SECURITY: LAB (Common)
EXCHANGE: New York Stock Exchange CURRENCY: US Dollar
Founded in 1924, LaBranche
& Co Inc. operates primarily as a New York Stock Exchange Specialist
firm. It is one of the oldest and largest NYSE Specialists, in terms of
capital, number of stocks and dollar and share volume traded. As a Specialist,
the role of LaBranche is to ensure that the market for each of the stocks
it represents remains fair and orderly. LaBranche accomplishes this by
connecting buyers to sellers, helping to find the best available bids and
offers. In addition, LaBranche adds liquidity, reduces volatility and stabilizes
prices by committing capital when buyers or sellers outnumber each other.
LaBranche has over 100 seats on the NYSE and is the Specialist for more
than 650 common stocks, nine of which are on the Dow Jones Industrial Average,
30 of which are in the S&P 100 Index and 101 of which are in the S&P
500 Index. LaBranche & Co Inc., through its subsidiaries, also provides
clearing services to individual and institutional clients, including traders,
professional investors, institutions and broker-dealers, and acts as the
Specialist in the options of over 125 common stocks traded on the American
Stock Exchange.
LaBranche
& Co Inc. Reports First Quarter 2008 Results
NEW
YORK--(BUSINESS WIRE)--April 22, 2008--LaBranche & Co Inc. (NYSE: LAB)
today reported financial results for the first quarter ended March 31,
2008. Included in these results are a pre-tax unrealized loss on the Company's
shares of NYSE Euronext, Inc. common stock (the "NYX shares") of $79.2
million and a $0.9 million pre-tax loss on early extinguishment of $80.8
million of our public debt. As a result, the Company reported an after-tax
net loss of $40.2 million, or $0.65 per share, for the 2008 first quarter.
This compares to a net loss of $5.6 million, or $0.09 per share, for the
2007 first quarter, which also includes a $4.2 million pre-tax unrealized
loss on the Company's NYX shares.
On
a pro-forma basis, the Company reported net income for the first quarter
of 2008 of $7.8 million, or $0.13 per diluted share, compared to a pro-forma
net loss of $3.2 million, or $0.05 per share, for the first quarter of
2007. The Company also reported higher pro-forma revenues, net of interest
expense, of $56.6 million in the first quarter of 2008, compared to pro-forma
revenues, net of interest expense, of $42.1 million in the first quarter
of 2007. Included in these results are pre-tax, non-cash charges of $1.9
million and $5.5 million in the first quarter of 2008 and 2007, respectively.
These pro-forma results exclude the unrealized loss on the NYX shares in
each period and the loss on early extinguishment of debt in the first quarter
of 2008.
LaBranche
also announced today that its Board of Directors has approved a redemption
of all of its remaining outstanding 9 1/2% Senior Notes due 2009, in the
aggregate principal amount of $169.1 million, at a redemption price of
102.375%, plus accrued and unpaid interest thereon, pursuant to the optional
redemption provisions of the indenture governing the notes. The Company
expects the redemption to be completed on or about May 23, 2008. Following
the redemption, approximately $210.0 million of the Company's 11% Senior
Notes due 2012 will remain outstanding under the indenture.
LaBranche
also announced that its Board of Directors has approved a share repurchase
program to purchase an aggregate of up to $40.0 million in shares of its
outstanding common stock. This program may be implemented from time to
time in the open market, in privately negotiated transactions or otherwise,
in compliance with applicable state and federal securities laws. The timing
and amounts of any purchases will be based on market conditions and other
factors, including price, regulatory requirements, debt covenant compliance
and capital availability. The indenture governing the Company's outstanding
senior notes currently limits repurchases of our stock to $15.0 million.
However, upon our redemption of the outstanding 9 1/2% Senior Notes due
2009, that limitation will be increased to an amount in excess of $40.0
million. The share repurchase program may be suspended, modified or discontinued
at any time.
LaBranche
& Co Inc. is the parent of LaBranche & Co. LLC, one of the largest
Specialists in exchange-listed securities. LaBranche is also the parent
of LaBranche Structured Holdings, Inc., whose subsidiaries are specialists
and market-makers in options, exchange-traded funds and futures on various
exchanges domestically and internationally. Another subsidiary of the Company,
LaBranche Financial Services, LLC, provides mainly securities execution
and brokerage services to institutional investors.
LaBranche
& Co Inc. Reports Fourth Quarter and Full Year 2007 Results
NEW YORK, Jan 18, 2008
(BUSINESS WIRE) -- LaBranche & Co Inc. (NYSE: LAB) today reported financial
results for the fourth quarter and twelve months ended December 31, 2007.
Revenues, net of interest
expense, for the fourth quarter of 2007 were $67.1 million, which included
a pre-tax gain of $26.2 million in connection with the increase in fair
value of shares of NYSE Euronext, Inc. common stock held by the Company
("NYX shares"), compared to revenues, net of interest expense, of $118.6
million for the fourth quarter of 2006, which included a pre-tax gain of
$72.3 million related to the increase in fair value of the Company's NYX
shares. On an after-tax basis, the Company reported net income of $18.0
million, or $0.29 per diluted share, for the 2007 fourth quarter, compared
to net income of $39.1 million, or $0.63 per diluted share, for the 2006
fourth quarter.
Excluding the net gain
attributable to the NYX shares in each period, the Company's pro-forma
net income for the fourth quarter of 2007 was $2.3 million, or $0.04 per
diluted share, compared to a pro-forma net loss of $1.8 million, or $0.03
per share, for the fourth quarter of 2006.
For the twelve months
ended December 31, 2007, revenues, net of interest expense, were $145.6
million, which included a pre-tax loss of $15.8 million in connection with
the decline in fair value of the Company's NYX shares, compared to revenues,
net of interest expense, of $433.5 million in the comparable prior year
period, which included a pre-tax gain of $238.6 million related to the
increase in fair value of the Company's NYX shares. On an after-tax basis,
the Company reported a net loss of $350.5 million, or $5.71 per share,
for the year ended December 31, 2007, compared to net income of $136.8
million, or $2.22 per diluted share, for the year ended December 31, 2006.
The 2007 results include a non-cash pre-tax impairment charge related to
the Company's goodwill and stock listing rights of $164.1 million and $335.3
million, respectively. After taxes, these non-cash impairment charges are
$155.7 million and $189.0 million, respectively. These 2007 results also
include a tax benefit of $4.6 million, or $0.07 per diluted share, in connection
with a reduction of the Company's estimated tax-rate due to the enactment
of a tax law change, which reduced the Company's income tax accrual rate
from 43.5% to approximately 40%. However, the effective rate for 2007 is
approximately 33% mainly due to nondeductible impairment charges for goodwill
net of the tax rate change.
Excluding the gains or
losses on the Company's NYX shares in each period and the non-cash goodwill
and stock listing rights impairment charges in 2007, the Company's pro-forma
net income for the year ended December 31, 2007 was $1.6 million, or $0.03
per diluted share, compared to pro-forma net income of $1.1 million, or
$0.02 per diluted share, for the year ended December 31, 2006. The 2007
full-year results also include the tax benefit described above.
LaBranche & Co Inc.
is the parent of LaBranche & Co. LLC, one of the largest Specialists
in exchange-listed securities. LaBranche is also the parent of LaBranche
Structured Holdings, Inc., whose subsidiaries are specialists and market-makers
in options, exchange-traded funds and futures on various exchanges domestically
and internationally. Another subsidiary of the Company, LaBranche Financial
Services, LLC, provides mainly securities execution and brokerage services
to institutional investors.
Certain statements contained
in this release, including without limitation, statements containing the
words "believes", "intends", "expects", "anticipates", and words of similar
import, constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Readers are cautioned
that any such forward-looking statements are not guarantees of future performance,
and since such statements involve risks and uncertainties, the actual results
and performance of LaBranche and the industry may turn out to be materially
different from the results expressed or implied by such forward-looking
statements. Given these uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. LaBranche also disclaims
any obligation to update its view of any such risks or uncertainties or
to publicly announce the result of any revisions to the forward-looking
statements made in this release.
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