EX-99.1 2 a14-2497_6ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

GLEACHER & COMPANY REPORTS FIRST QUARTER

2014 FINANCIAL RESULTS

 

ALBANY, NEW YORK, May 9, 2014 — Gleacher & Company, Inc. (Nasdaq: GLCH) today announced its financial results for the first quarter.  The Company reported a net loss of $4.8 million for the first quarter of 2014 and a loss per share of ($0.78).

 

Separately, during the quarter the Company announced that its Board of Directors determined that it is in the best interests of the Company’s stockholders for the Company to dissolve, liquidate and distribute to stockholders its available assets.  The dissolution is subject to stockholder approval.  The Company intends to present this proposal to its stockholders of record as of April 21, 2014 at the Company’s 2014 Annual Stockholders Meeting, currently scheduled for May 29, 2014.

 

Consolidated Statements of Operations (Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

(In thousands, except for per-share amounts)

 

2014

 

2013

 

2013

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Revenue:

 

 

 

 

 

 

 

Investment gains, net

 

$

587

 

$

1,605

 

$

172

 

Fees and other

 

205

 

170

 

169

 

Total revenue

 

792

 

1,775

 

341

 

Expenses:

 

 

 

 

 

 

 

Compensation and benefits

 

1,444

 

1,446

 

2,523

 

Professional fees

 

2,745

 

2,026

 

2,510

 

Communications and data processing

 

164

 

207

 

406

 

Occupancy, depreciation and amortization

 

158

 

240

 

307

 

Other

 

551

 

1,351

 

794

 

Total expenses

 

5,062

 

5,270

 

6,540

 

Loss from continuing operations before income taxes and discontinued operations

 

(4,270

)

(3,495

)

(6,199

)

Income tax expense/(benefit)

 

14

 

(1,175

)

39

 

Loss from continuing operations

 

(4,284

)

(2,320

)

(6,238

)

Loss from discontinued operations, net of taxes

 

(517

)

(600

)

(11,733

)

Net loss

 

$

(4,801

)

$

(2,920

)

$

(17,971

)

 

 

 

 

 

 

 

 

Loss per share:

 

 

 

 

 

 

 

Basic loss per share

 

 

 

 

 

 

 

Continuing operations

 

$

(0.69

)

$

(0.37

)

$

(1.04

)

Discontinued operations

 

(0.09

)

(0.10

)

(1.97

)

Net loss per share

 

$

(0.78

)

$

(0.47

)

$

(3.01

)

 

 

 

 

 

 

 

 

Diluted loss per share

 

 

 

 

 

 

 

Continuing operations

 

$

(0.69

)

$

(0.37

)

$

(1.04

)

Discontinued operations

 

(0.09

)

(0.10

)

(1.97

)

Net loss per share

 

$

(0.78

)

$

(0.47

)

$

(3.01

)

 

 

 

 

 

 

 

 

Weighted average number of shares of common stock:

 

 

 

 

 

 

 

Basic

 

6,181

 

6,185

 

5,976

 

Diluted

 

6,181

 

6,185

 

5,976

 

 

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Consolidated Statement of Financial Condition (Unaudited)

 

 

 

March 31,

 

December 31,

 

(In thousands, except for share and per-share amounts)

 

2014

 

2013

 

Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

57,466

 

$

51,353

 

Cash and securities segregated for regulatory and other purposes

 

5,000

 

6,000

 

Receivables from

 

 

 

 

 

Brokers, dealers and clearing organizations

 

2,586

 

9,173

 

Related parties

 

872

 

856

 

Other

 

845

 

908

 

Financial instruments owned, at fair value

 

683

 

664

 

Investments

 

19,476

 

18,889

 

Office equipment and leasehold improvements, net

 

102

 

115

 

Income taxes receivable

 

438

 

4,116

 

Other assets

 

3,556

 

3,890

 

Total Assets

 

$

91,024

 

$

95,964

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables to:

 

 

 

 

 

Related parties

 

$

474

 

$

475

 

Others

 

1,498

 

1,868

 

Accrued compensation

 

2,023

 

1,907

 

Restructuring reserve

 

1,932

 

2,491

 

Accounts payable and accrued expenses

 

2,346

 

1,629

 

Income taxes payable

 

3,392

 

3,331

 

Subordinated debt

 

409

 

409

 

Total Liabilities

 

12,074

 

12,110

 

Stockholders’ Equity

 

 

 

 

 

Common stock ($.01 par value; authorized 10,000,000 shares)

 

1,337

 

1,337

 

Additional paid-in capital

 

455,591

 

455,910

 

Deferred compensation

 

101

 

101

 

Accumulated deficit

 

(367,910

)

(363,109

)

Treasury stock, at cost

 

(10,169

)

(10,385

)

Total Stockholders’ Equity

 

78,950

 

83,854

 

Total Liabilities and Stockholders’ Equity

 

$

91,024

 

$

95,964

 

 

 

 

 

 

 

Common stock (in shares)

 

 

 

 

 

Shares issued

 

6,688,387

 

6,688,387

 

Less: Treasury stock

 

(504,898

)

(513,397

)

Shares outstanding

 

6,183,489

 

6,174,990

 

 

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About Gleacher & Company

 

Gleacher & Company, Inc. (Nasdaq: GLCH) is incorporated under the laws of the State of Delaware.  The Company’s common stock is traded on The NASDAQ Global Market under the symbol “GLCH.”

 

Forward Looking Statements

 

This press release contains “forward-looking statements.”  These statements are not historical facts but instead represent the Company’s belief or plans regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control.  The Company’s forward-looking statements are subject to various risks and uncertainties, including the risks and other factors identified herein and in other public disclosures made by the Company from time to time, including in the Company’s periodic and current reports and other filings made by the Company with the Securities and Exchange Commission.  As a result, the Company’s actual results may differ materially from those expressed or implied by these forward-looking statements.  Readers are cautioned that these forward-looking statements, including, without limitation, statements regarding the proposed dissolution and liquidation of the Company, involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from our expectations of future results, performance or achievements expressed or implied by such forward-looking statements.  Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future events or results. Except as may be required under federal law, we undertake no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur.

 

For Additional Information Please Contact:

 

Gleacher & Company, Inc.

 

Investor Relations

 

212.273.7100

 

 

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