THOMAS WEISEL PARTNERS GROUP, INC. 
By
SAN FRANCISCO, CA--(Marketwire - February 13, 2008) - Thomas Weisel
Partners Group, Inc. (NASDAQ: TWPG) (TSX: TWP) reported net revenues
of $76.9 million in the fourth quarter of 2007 and $289.0 million for
the full year of 2007, an increase of 1% and 5%, respectively, from
the comparable periods in 2006.
Non-GAAP net income and diluted earnings per share were $3.5 million
and $0.13 for the fourth quarter of 2007 compared to $9.8 million and
$0.37 for the fourth quarter of 2006. For the full year of 2007,
non-GAAP net income and diluted earnings per share were $18.0 million
and $0.68 compared to $23.7 million and $0.93 for the full year 2006.
GAAP net income and diluted earnings per share for the fourth quarter
of 2007 were losses of $11.2 million and $0.43 compared to earnings
of $8.7 million and $0.33 for the fourth quarter of 2006. For the
full year of 2007, GAAP net income and diluted earnings per share
were break-even compared to $34.9 million and $1.34 for the full year
2006.
The non-GAAP financial measures described above adjust for certain
one-time events related to our conversion to a corporation and our
initial public offering, as well as one-time compensation expenses in
the fourth quarter of 2007 attributable to the acceleration of the
payment of 2008 mid-year retention bonuses and certain severance
expenses, each of which were related to the integration of Westwind
Partners. A reconciliation between our GAAP results and these
non-GAAP measures is discussed below under "Non-GAAP Financial
Measures."
Business Highlights
-- Revenues and Earnings. Fourth quarter revenues were $76.9 million,
the highest revenue quarter of the year.
"2007 was a year of building," said Thomas Weisel, Chairman and CEO.
"Our fourth quarter earnings were penalized by increasing our
compensation ratio in the second half of the year to even out our
full year compensation ratio. Excluding our investment spending on
Discovery research, Portland growth equity and European sales, and
normalizing our tax rate, earnings were up 12% in 2007."
-- Brokerage. Brokerage revenues increased 20% to $34.8 million in
the fourth quarter of 2007 compared to the fourth quarter of 2006.
The fourth quarter of 2007 was the best performing quarter in two
years. From the third quarter of 2007, brokerage revenues increased
15% mainly due to the performance of our core institutional and
convertible debt trading businesses.
"The investments that we made in the first half of the year showed
results in the second half. Our strategies to diversify and grow our
account coverage through hiring two teams in Europe and a team in the
mid-west contributed to the third and fourth quarter improvements,"
said Paul Slivon, Director of Institutional Sales.
"In 2007, we hired a group to focus on special situations, such as
overnight block trades for investment banking, institutional, private
equity and high net worth clients. In addition, in 2007, we began
marketing our electronic trading platform and commission sharing-soft
dollar program. Both of these investments contributed to the
improvements in the second half of the year," said Tony Stais,
Director of Trading.
-- Investment Banking. Investment banking revenues were $32.8 million
for the fourth quarter of 2007 compared to $37.3 million in the
fourth quarter of 2006. For the full year, investment banking
revenues increased 2% to $127.2 million. We completed 28 transactions
in the fourth quarter and 83 transactions in the full year of 2007.
Our average revenue per transaction increased to $1.5 million in 2007
compared to $1.4 million in 2006.
We raised capital for a diverse group of companies in the fourth
quarter, including sole- and joint-book managed initial public
offerings for Orion Energy Systems, Inc., Internet Brands, Inc.,
Constant Contact, Inc. and SoundBite Communications, Inc. We
book-managed a follow-on offering for Obagi Medical Products and we
were a co-lead for the follow-on offering of Nuance Communications,
Inc. Additionally, we were the sole agent for a private placement
transaction for AngioScore, Inc. and the sole agent on a $69 million
leveraged financing for Selling Source, LLC.
M&A also contributed to fourth quarter results. We advised Symyx
Technologies, Inc. in its $123 million acquisition of MDL Information
Systems from Elsevier, FoxHollow Technologies, Inc. in its $780
million merger with ev3 Inc., IsoTis, Inc. in its sale to Integra
LifeSciences Holdings Corporation and Applied Precision, LLC in the
sale of its semiconductor business to Rudolph Technologies, Inc. for
approximately $74 million.
"Our fourth quarter banking results did not meet our expectations, as
many of our capital raising and M&A transactions scheduled for the
fourth quarter were postponed due to difficult market conditions. We
are cognizant of the near term uncertainty resulting from unfavorable
markets; capital raising transactions and volumes in the market are
down significantly in January. We expect continued uncertainty to
negatively impact our investment banking business in the near term,"
said Thomas Weisel, Chairman and CEO.
"2007 was a building year for our investment banking platform during
which we generated revenues from 55 new clients. We completed 32
initial public offerings versus 27 and 18 in 2006 and 2005,
respectively, and M&A revenues were up 60% in 2007. We expect these
new relationships to materialize into additional revenue streams in
future years. In 2007, we ranked as the number one IPO underwriter
for venture-backed companies. In addition, we were involved in seven
of the ten best performing U.S. technology initial public offerings."
"Entering 2008, the fundamentals of our technology clients continue
to remain strong and the demand for resources and commodities, the
main drivers of our energy and mining clients, continue to grow. We
plan to take advantage of our newly diversified platform to grow our
banking footprint judiciously in 2008," continued Mr. Weisel.
-- Asset Management. Asset management revenues were $6.7 million in
the fourth quarter of 2007 compared to $9.3 million in the fourth
quarter of 2006. For the year, asset management revenues increased
30% compared to 2006. The increase was partially due to recognizing
$17.7 million of private equity gains in 2007 compared to $12.3
million in 2006.
"The underlying drivers of our private equity gains are healthcare
and technology company fundamentals, which remain strong," said Mr.
Weisel. "However, we are not expecting the same level of private
equity gains in 2008 that we experienced in 2007. A significant
amount of our gains in 2007 were preferential returns based on
previously waived management fees, while in 2008 any gains would be
primarily generated by our carried interest. Waived management fee
gains are recognized before returns to investors, while gains from
carried interest would be recognized along with those of fund
investors over the remainder of the life of the fund," continued Mr.
Weisel.
-- Completion of Westwind Partners Acquisition. On January 2, 2008,
we announced the completion of our acquisition of Westwind Partners,
a full service, institutionally oriented, investment bank focused on
the energy and mining sectors. At the same time we announced the
appointment of Lionel F. Conacher, formerly the CEO and President of
Westwind Partners, as President of Thomas Weisel Partners.
"I am delighted to join Thomas Weisel Partners as President," said
Mr. Conacher. "Historically, Thomas Weisel Partners has been a play
on strong venture capital trends and technology, healthcare and
consumer sector performance. With the newly acquired mining and
energy sectors from Westwind Partners, our footprint now spans five
countries with 15 offices, and enhances our overall growth profile."
"The Westwind acquisition has been a transformational event for our
firm. With this acquisition, we have expanded and diversified our
platform and enhanced our growth prospects," said Mr. Weisel.
THOMAS WEISEL PARTNERS GROUP, INC. AND SUBSIDIARIES
(Dollar amounts in thousands, except book value per share)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenue Detail:
Investment banking
Capital raising $ 26,440 $ 22,140 $ 77,634 $ 93,063
M&A 6,349 15,118 49,594 31,073
--------- --------- --------- ---------
Total investment banking 32,789 37,258 127,228 124,136
Brokerage 34,761 28,964 120,187 123,809
Asset management
Management fees 3,956 2,964 15,946 12,420
Private equity gains 3,428 5,838 17,662 12,323
Other securities (681) 491 (194) 1,009
--------- --------- --------- ---------
Total asset management 6,703 9,293 33,414 25,752
Interest income 5,032 4,054 17,718 13,525
Other revenue - - 920 -
--------- --------- --------- ---------
Total revenues 79,285 79,569 299,467 287,222
Interest expense (2,376) (3,083) (10,418) (10,905)
--------- --------- --------- ---------
Net revenues $ 76,909 $ 76,486 $ 289,049 $ 276,317
========= ========= ========= =========
Investment Banking Transactions:
Capital raising 24 23 66 72
M&A 4 5 17 15
--------- --------- --------- ---------
Total transactions 28 28 83 87
--------- --------- --------- ---------
Revenue per transaction $ 1,171 $ 1,331 $ 1,533 $ 1,427
Other Metrics:
Non-GAAP compensation ratio* 58.4% 55.7% 57.8% 55.0%
Non-compensation ratio** 37.3% 33.4% 36.0% 35.5%
IPO equity award expense $ 532 $ 1,862 $ 6,117 $ 6,989
Shareholders' equity $ 273,627 $ 267,054 $ 273,627 $ 267,054
Common shares outstanding 25,235 25,754 25,235 25,754
Book value per share $ 10.84 $ 10.37 $ 10.84 $ 10.37
* The non-GAAP compensation ratio set forth above is the ratio of our
compensation and benefits expense (excluding expenses relating to IPO
equity awards and the one-time fourth quarter of 2007 compensation expenses
described below in the "Non-GAAP Financial Measures" section) to net
revenues (excluding investment gains and losses attributable to investments
in partnerships and other securities). Without excluding these amounts, our
ratio of compensation and benefits expense to net revenues is 88.7% and
53.9% for the three months ended December 31, 2007 and 2006, respectively,
and 65.0% and 55.1% for the year ended December 31, 2007 and 2006,
respectively.
** Our non-compensation ratio is the ratio of all expense (other than
compensation and benefits expense and interest expense) to net revenues.
Non-GAAP Financial Measures
We have reported in this press release our net income for the fourth
quarter and year ended December 31, 2007 on a non-GAAP basis by:
-- excluding $0.3 million and $3.6 million, respectively, of after-tax
non-cash expense associated with the initial grant of restricted stock
units made in connection with our initial public offering; and
-- excluding $14.4 million for both periods of after-tax one-time
compensation expense in the fourth quarter of 2007 attributable to the
acceleration of the payment of 2008 mid-year retention bonuses and certain
severance expenses, each of which were related to the integration of
Westwind Partners.
We have also reported in this press release our net income for the
fourth quarter and year ended December 31, 2006 on a non-GAAP basis
by:
-- in the case of the fourth quarter of 2006, excluding $1.1 million of
after-tax non-cash expense associated with the initial grant of restricted
stock units made in connection with our initial public offering; and
-- in the case of the full year 2006, (i) excluding the effect of
recognizing during the first quarter of 2006 a $13.8 million one-time net
deferred tax benefit resulting from our conversion to a corporation from a
limited liability company (but not excluding subsequent adjustments to the
related valuation allowance), (ii) excluding the $4.1 million after-tax non-
cash expense incurred in 2006 associated with the initial grant of
restricted stock units made in connection with our initial public offering
and (iii) including additional income tax expense of $1.5 million for the
first quarter of 2006, because we estimate that had we converted to a
corporation on January 1, 2006 we would have incurred additional income tax
expense for the period from January 1, 2006 to February 7, 2006 equal to
our net income for the period from January 1, 2006 through February 7, 2006
of $3.6 million multiplied by the applicable federal and state tax rate for
the first quarter of 2006 of 42%.
We have reported in this press release our basic and diluted earnings
per share for the fourth quarter of 2007 on a non-GAAP basis by:
-- using $3.5 million as the numerator of our non-GAAP basic and diluted
earnings per share calculations, which amount is derived by beginning with
our net loss attributable to common shareholders of $11.2 million and
adjusting to exclude after-tax non-cash expense of $0.3 million and the
after-tax expense of $14.4, respectively, associated with (i) our initial
grant of restricted stock units made in connection with our initial public
offering and (ii) expenses in the fourth quarter of 2007 attributable to
the acceleration of the payment of 2008 mid-year retention bonuses and
certain severance expenses, each of which were related to the integration
of Westwind Partners; and
-- using as the denominator of our non-GAAP basic and diluted earnings
per share calculations the basic and diluted weighted average shares used,
respectively, as the denominator of our GAAP basic and diluted earnings per
share calculations.
We have reported in this press release our basic and diluted earnings
per share for full year 2007 on a non-GAAP basis by:
-- using $18.0 million as the numerator of our non-GAAP basic and diluted
earnings per share calculations, which amount is derived by beginning with
net income attributable to common shareholders of $20,000 and adjusting to
exclude after-tax non-cash expense of $3.6 million and the after-tax
expense of $14.4, respectively, associated with (i) our initial grant of
restricted stock units made in connection with our initial public offering
and (ii) expenses in the fourth quarter of 2007 attributable to the
acceleration of the payment of 2008 mid-year retention bonuses and certain
severance expenses, each of which were related to the integration of
Westwind Partners; and
-- using as the denominator of our non-GAAP basic and diluted earnings
per share calculations the basic and diluted weighted average shares used,
respectively, as the denominator of our GAAP basic and diluted earnings per
share calculations.
We have reported in this press release our basic and diluted earnings
per share for the fourth quarter of 2006 on a non-GAAP basis by:
-- using $9.8 million as the numerator of our non-GAAP basic and diluted
earnings per share calculations, which amount is derived by beginning with
net income attributable to common shareholders of $8.7 million and
adjusting to exclude the after-tax non-cash expense associated with our
initial grant of restricted stock units of $1.1 million; and
-- using as the denominator of our non-GAAP basic and diluted earnings
per share calculations the basic and diluted weighted average shares used,
respectively, as the denominator of our GAAP basic and diluted earnings per
share calculations.
We have also reported in this press release our basic and diluted
earnings per share for 2006 on a non-GAAP basis by:
-- using $23.7 million as the numerator of the non-GAAP earnings per
share calculation, which amount is derived by beginning with net income
attributable to common shareholders of $33.3 million for the full year 2006
and adjusting to (i) exclude the effect of the $13.8 million one-time net
deferred tax benefit recognized in the first quarter of 2006 (but not
excluding subsequent adjustments to the related valuation allowance), (ii)
include the additional income tax expense of $1.5 million with respect to
the period from January 1, 2006 through February 7, 2006, (iii) exclude the
after-tax non-cash expense associated with our initial grant of restricted
stock units of $4.1 million for the full year 2006 and (iv) exclude $1.6
million of preferred dividends and accretion with respect to the period
from January 1, 2006 through February 7, 2006; and
-- increasing the weighted average shares used as the denominator of the
non-GAAP earnings per share calculation by 498,893, which is the amount by
which weighted average shares would have increased had the 4,914,440 shares
we issued in our initial public offering been outstanding for all of 2006.
Although we expect to grant restricted stock units and other
share-based compensation in the future, we do not expect to make any
such substantial grants outside of our regular compensation and
hiring process, as we did when we granted restricted stock units in
connection with our initial public offering. Also, in the future we
do not expect that a similar conversion-related deferred tax benefit
will arise and we expect to be subject to state and federal income
tax, in each case, because we do not expect to change our corporate
form again. In addition, the one-time compensation expenses in the
fourth quarter of 2007 attributable to the acceleration of the
payment of 2008 mid-year retention bonuses and certain severance
expenses were related to the integration of Westwind Partners and the
alignment of the compensation practices of the two firms with one
another and with industry practice and are, therefore, regarded by
our management as one-time, non-recurring expense items.
Our management has utilized a non-GAAP calculation of net income and
non-GAAP calculations of basic and diluted earnings per share that
are adjusted in the manner described above as an additional device to
aid in understanding and analyzing our financial results in the
fourth quarter and full year of 2007 and 2006. Our management
believes that these non-GAAP measures will allow for a better
evaluation of the operating performance of our business and
facilitate meaningful comparison of our results in the current period
to those in prior periods and future periods that did not and likely
will not include the adjusted items. Our reference to these measures
should not, however, be considered as a substitute for results that
are presented in a manner consistent with GAAP. These non-GAAP
measures are provided to enhance investors' overall understanding of
our current financial performance and our prospects for the future.
Specifically, our management believes that the non-GAAP measures
provide useful information to both management and investors by
excluding certain items that may not be indicative of our core
operating results and business outlook.
A limitation of utilizing these non-GAAP measures of net income and
basic and diluted earnings per share is that the GAAP accounting
effects of these events do in fact reflect the underlying financial
results of our business and these effects should not be ignored in
evaluating and analyzing our financial results. Therefore, management
believes that both our GAAP measures of net income (loss) and basic
and diluted earnings (loss) per share and these non-GAAP measures of
our financial performance should be considered together.
A reconciliation of our fourth quarter of 2007 and 2006 GAAP net
income (loss) to our fourth quarter of 2007 and 2006 non-GAAP net
income is set forth below.
For Three Months
Ended December 31,
---------------------
2007 2006
(In millions)
Net (loss) income $ (11.2) $ 8.7
Exclusion of the after-tax non-cash expense
associated with initial grant of restricted
stock units 0.3 1.1
Exclusion of the after-tax expense associated with
compensation expenses in the fourth quarter of 2007
attributable to the acceleration of the payment of
2008 mid-year retention bonuses and certain
severance expenses related to the integration of
Westwind Partners 14.4 -
--------- ----------
Non-GAAP net income $ 3.5 $ 9.8
========= ==========
A reconciliation of our 2007 and 2006 GAAP net income to our 2007 and
2006 non-GAAP net income is set forth below.
For Twelve Months
Ended December 31,
---------------------
2007 2006
(In millions)
Net income $ - $ 34.9
Exclusion of the effect of recording net deferred tax
benefit - (13.8)
Inclusion of additional income tax expense - (1.5)
Exclusion of the after-tax non-cash expense
associated with initial grant of restricted
stock units 3.6 4.1
Exclusion of the after-tax expense associated with
compensation expenses in the fourth quarter of 2007
attributable to the acceleration of the payment of
2008 mid-year retention bonuses and certain
severance expenses related to the integration of
Westwind Partners 14.4 -
---------- ---------
Non-GAAP net income $ 18.0 $ 23.7
========== =========
We calculate earnings (loss) per share in accordance with FASB
Statement No. 128, Earnings per Share. Basic earnings (loss) per
share is calculated by dividing net income (loss) attributable to
common shareholders by the weighted average number of common shares
outstanding for the period. Diluted earnings (loss) per share
includes the determinants of basic earnings (loss) per share plus all
dilutive potential common shares that were outstanding during the
period. We use the treasury stock method to reflect the potential
dilutive effect of outstanding unvested restricted stock units, an
outstanding warrant to purchase common stock and outstanding
unexercised stock options. With respect to the fourth quarter and
full year 2007 and 2006, certain outstanding unexercised stock
options were anti-dilutive and not considered in the determination of
diluted earnings per share.
The following table sets forth our GAAP basic and diluted weighted
average shares outstanding and our GAAP basic and diluted earnings
(loss) per share for the fourth quarter and full year 2007 and 2006,
as well as our non-GAAP basic and diluted weighted average shares
outstanding and non-GAAP earnings per share for the fourth quarter
and full year 2007 and 2006, in each case after applying the
adjustments described above:
For Three Months For Twelve Months
Ended December 31, Ended December 31,
------------------ -------------------
2007 2006 2007 2006
Weighted average shares used in
computation of earnings per share:
Basic (in thousands) 26,003 25,770 26,141 23,980
Diluted (in thousands) 26,003 26,528 26,446 24,945
Earnings (loss) per share:
Basic ($ 0.43) $ 0.34 $ 0.00 $ 1.39
Diluted ($ 0.43) $ 0.33 $ 0.00 $ 1.34
Non-GAAP adjusted weighted average
shares used in computation of
non-GAAP earnings per share:
Basic (in thousands) 26,003 25,770 26,141 24,479
Diluted (in thousands) 26,384 26,528 26,446 25,444
Non-GAAP earnings per share:
Basic $ 0.14 $ 0.38 $ 0.69 $ 0.97
Diluted $ 0.13 $ 0.37 $ 0.68 $ 0.93
Further information regarding non-GAAP financial measures has been
included in the Investor Relations/Webcasts section of our website
www.tweisel.com and in our Annual Report on Form 10-K for the full
year ended December 31, 2006, as well as our Quarterly Reports on
Form 10-Q for the three month periods ended March 31, June 30 and
September 30, 2007. Our Annual Reports on Form 10-K and our Quarterly
Reports on Form 10-Q are available to the public from the SEC's
internet site at http://www.sec.gov and from our public internet site
at http://www.tweisel.com. You may also read and copy any Annual
Report on Form 10-K or Quarterly Report on Form 10-Q that we file
with the SEC at the SEC's public reference room located at 100 F
Street, N.E., Washington, D.C. 20549, U.S.A. Please call the SEC at
1-800-SEC-0330 for further information on the public reference room.
Quarterly Earnings Conference Call
Thomas Weisel Partners Group, Inc. will host its fourth quarter
conference call on Wednesday, February 13, 2008 at 5:00 p.m. Eastern
time (2:00 p.m. Pacific time). The conference call may include
forward-looking statements, including guidance as to future results.
All interested parties are invited to listen to Thomas Weisel
Partners' Chairman and Chief Executive Officer, Thomas W. Weisel,
President, Lionel F. Conacher, and Chief Operating Officer and Chief
Financial Officer, David Baylor, by dialing 800/811-8830 (domestic)
or 913/312-4374 (international). The confirmation code for both the
domestic and international lines is: 4320120.
A live web cast of the call, as well as the company's results, will
be available through the investor relations/webcasts section of our
website, www.tweisel.com. To listen to the live call, please go to
the website at least 15 minutes early to register, download, and
install any necessary audio software.
For those who cannot listen to the live broadcast, a replay will be
available on this site one hour after the call through March 31,
2008.
About Thomas Weisel Partners Group, Inc.
Thomas Weisel Partners Group, Inc. is an investment bank, founded in
1998, focused principally on the growth sectors of the economy.
Thomas Weisel Partners Group, Inc. generates revenues from three
principal sources: investment banking, brokerage and asset
management. The investment banking group is comprised of two
disciplines: corporate finance and strategic advisory. The brokerage
group provides equity and convertible debt securities sales and
trading services to institutional investors, and offers brokerage,
advisory and cash management services to high-net-worth individuals
and corporate clients. The asset management group consists of:
private equity, public equity and distribution management. Thomas
Weisel Partners is headquartered in San Francisco with additional
offices in Baltimore, Boston, Calgary, Chicago, Cleveland, Denver,
Montreal, New York, Portland, Silicon Valley, Toronto, London, Mumbai
and Zurich. For more information, please visit www.tweisel.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, which are
subject to risks, uncertainties and assumptions about us. In some
cases, you can identify these statements by forward-looking words
such as "may," "might," "will," "should," "expect," "plan,"
"anticipate," "believe," "estimate," "predict," "optimistic,"
"potential," "future" or "continue," the negative of these terms and
other comparable terminology. These statements are only predictions
based on our current expectations about future events. There are
important factors that could cause actual results, level of activity,
performance or achievements or other events or circumstances to
differ materially from the results, level of activity, performance or
achievements expressed or implied by these forward-looking
statements. These factors include, but are not limited to, Thomas
Weisel Partners' ability to implement its strategic initiatives and
achieve the expected benefits of the acquisition of Westwind
Partners, integrate Westwind Partners' operations and retain its
professionals, as well as competitive, economic, political, and
market conditions and fluctuations, government and industry
regulation, other risks relating to the acquisition, including the
effect of the completion of the transaction on the companies'
business relationships, operating results and business generally and
other factors. Some of the other factors are those that are discussed
in (i) the Proxy Statement relating to the Westwind Partners
acquisition, (ii) Item 1A - "Risk Factors" in our Annual Report on
Form 10-K for the year ended December 31, 2006 and (iii) in our
Quarterly Reports on Form 10-Q filed with the SEC thereafter. We do
not assume responsibility for the accuracy or completeness of any
forward-looking statement and you should not rely on forward-looking
statements as predictions of future events. We are under no duty to
update any of these forward-looking statements to conform them to
actual results or revised expectations.
THOMAS WEISEL PARTNERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenues:
Investment banking $ 32,789 $ 37,258 $ 127,228 $ 124,136
Brokerage 34,761 28,964 120,187 123,809
Asset management 6,703 9,293 33,414 25,752
Interest income 5,032 4,054 17,718 13,525
Other revenue - - 920 -
--------- --------- --------- ---------
Total revenues 79,285 79,569 299,467 287,222
Interest expense (2,376) (3,083) (10,418) (10,905)
--------- --------- --------- ---------
Net revenues 76,909 76,486 289,049 276,317
--------- --------- --------- ---------
Expenses excluding interest:
Compensation and benefits 68,213 41,212 187,902 152,195
Brokerage execution, clearance
and account administration 5,393 5,096 20,363 22,621
Communications and data
processing 5,199 4,125 18,993 16,650
Depreciation and amortization 1,669 1,951 6,450 8,549
Marketing and promotion 4,624 3,036 15,147 11,545
Occupancy and equipment 5,153 4,139 18,988 17,926
Other expense 6,628 7,224 23,979 20,706
--------- --------- --------- ---------
Total expenses excluding
interest 96,879 66,783 291,822 250,192
--------- --------- --------- ---------
Income (loss) before taxes (19,970) 9,703 (2,773) 26,125
Provision for taxes (tax
benefit) (8,787) 963 (2,793) (8,796)
--------- --------- --------- ---------
Net income (loss) (11,183) 8,740 20 34,921
--------- --------- --------- ---------
Preferred dividends and
accretion - - - (1,608)
--------- --------- --------- ---------
Net income (loss) attributable
to common shareholders and to
class A, B and C shareholders $ (11,183) $ 8,740 $ 20 $ 33,313
========= ========= ========= =========
Earnings (loss) per share:
Basic earnings (loss) per
share ($ 0.43) $ 0.34 $ 0.00 $ 1.39
Diluted earnings (loss) per
share ($ 0.43) $ 0.33 $ 0.00 $ 1.34
Weighted average shares used in
computation of per share data:
Basic weighted average shares
outstanding 26,003 25,770 26,141 23,980
Diluted weighted average
shares outstanding 26,003 26,528 26,446 24,945
THOMAS WEISEL PARTNERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED QUARTERLY STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
-----------------------------------------------------
December September June March December
31, 30, 30, 31, 31,
2007 2007 2007 2007 2006
--------- --------- --------- --------- ---------
(In thousands)
Revenues:
Investment banking $ 32,789 $ 25,542 $ 29,605 $ 39,292 $ 37,258
Brokerage 34,761 30,344 26,226 28,856 28,964
Asset management 6,703 6,714 14,282 5,715 9,293
Interest income 5,032 3,799 4,539 4,348 4,054
Other revenue -- -- -- 920 --
--------- --------- --------- --------- ---------
Total revenues 79,285 66,399 74,652 79,131 79,569
Interest expense (2,376) (2,687) (2,913) (2,442) (3,083)
--------- --------- --------- --------- ---------
Net revenues 76,909 63,712 71,739 76,689 76,486
--------- --------- --------- --------- ---------
Expenses excluding
interest:
Compensation and
benefits 68,213 38,304 37,395 43,990 41,212
Brokerage execution,
clearance and
account
administration 5,393 5,287 4,970 4,713 5,096
Communications and
data processing 5,199 4,642 4,441 4,711 4,125
Depreciation and
amortization 1,669 1,536 1,521 1,724 1,951
Marketing and
promotion 4,624 3,868 3,042 3,613 3,036
Occupancy and
equipment 5,153 5,134 4,650 4,051 4,139
Other expense 6,628 7,055 5,291 5,005 7,224
--------- --------- --------- --------- ---------
Total expenses
excluding
interest 96,879 65,826 61,310 67,807 66,783
--------- --------- --------- --------- ---------
Income (loss) before
taxes (19,970) (2,114) 10,429 8,882 9,703
Provision for taxes
(tax benefit) (8,787) (1,314) 3,827 3,481 963
--------- --------- --------- --------- ---------
Net income (loss) $ (11,183) $ (800) $ 6,602 $ 5,401 $ 8,740
========= ========= ========= ========= =========
(Hidden) Investor Relations Contact:
Deborah Lightfoot
415-364-2500
investorrelations@tweisel.com
Media Contact:
Amanda Gaines-Cooke
415-364-2500
amandagainescooke@tweisel.com
Copyright © Hugin AS 2008. All rights reserved.T WEISEL PRTNRS GR : Reports Fourth Quarter Results Led by Continued Momentum in Brokerage
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