RODM...10-22-09...Rodman & Renshaw Capital Group, Inc. Announces Record Revenue
Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM) (“Rodman”) today announced its results for the third quarter of 2009, with revenue of $65.6 million and net income of $15.5 million or $0.40 per diluted share. Adjusting for certain events related to non-cash principal transactions, conference related revenue and expenses, non-recurring legal fees and the impairment of goodwill, the Company reported net income on a non-U.S. GAAP basis of $16.3 million, or $0.42 per diluted share, compared to net income on a non-U.S. GAAP basis of $11.3 million, or $0.30 per share, for the second quarter of 2009. A reconciliation between GAAP results and non-GAAP measures is contained in the tables that accompany this release, under “Non-GAAP Financial Measures.” Rodman will hold a conference call this morning, October 22, 2009 at 10 A.M. (EDT) (see Conference Call Information below) to discuss these results
Financial Highlights: Third Quarter Revenue
Revenue was $65.6 million, compared to $33.4 million in the second quarter of 2009
Investment banking revenue was $31.3 million, compared to $27.0 million in the second quarter of 2009
Merchant banking revenue of $28.6 million was triggered by a valuation, as required by GAAP, of the assets of the Company’s Aceras Biomedical joint venture. The valuation was performed by an independent valuation firm
Merchant banking revenue, net of non-controlling interest of $15.0 million, was $13.6 million
Revenue excluding principal transactions was $63.2 million, compared to $27.8 million in the second quarter of 2009
The Company completed 32 financing transactions raising $634.7 million, compared to 25 financing transactions raising $399.4 million, in the second quarter. The Company was once again ranked the number one investment bank in PIPE transactions by volume for the third quarter and the first nine months of 2009.1
Third Quarter Net Income
Net income was $15.5 million, or $0.40 per diluted share, compared to net income of $15.9 million, or $0.42 per diluted share, for the second quarter of 2009
Adjusting for certain events related to non-cash principal transactions, conference related revenue and expenses, non-recurring legal fees and the impairment of goodwill, the Company reported net income on a non-U.S. GAAP basis of $16.3 million, or $0.42 per diluted share, compared to net income of $11.3 million on a non-U.S. GAAP basis, or $0.30 per diluted share, for the second quarter of 2009
A reconciliation between GAAP results and non-GAAP measures is contained in the tables that accompany this release, under “Non-GAAP Financial Measures.”
1 Source: Sagient Research Systems, a leading publisher of independent research for the financial services and institutional investment communities
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