|
Article Excerpt
NEW YORK, May 27 /PRNewswire/ -- Refco Group Ltd., LLC today reported total revenues for its quarter ended February 28, 2005 of $1,140.9 million, an increase of $590.1 million, or 107.1%, and $69.5 million, or 6.5%, compared to the quarters ended February 29, 2004 and November 30, 2004, respectively. Total revenues for the year ended February 28, 2005 were $3,735.5 million, a 99.3% increase from $1,874.3 million for the year ended February 29, 2004. The quarter ended February 28, 2005 was the second full quarter to reflect the increase in expenses resulting from the acquisition of a controlling interest in Refco by Thomas H. Lee Partners, L.P. in a series of related transactions completed on August 5, 2004 (the "Transactions"). Specifically, interest expense and amortization on intangible assets increased significantly as a result of the Company's recapitalization on August 5, 2004. Consequently, net income for the quarter ended February 28, 2005 was $35.7 million which represented a decrease of $11.0 million compared to the quarter ended February 29, 2004. While the Company does not believe a comparison of the results for the years ended February 28, 2005 and February 29, 2004 is meaningful because of these increased expenses, both the quarters ended February 28, 2005 and November 30, 2004 included the effect of the Transactions for the entire period, and are therefore comparable. Net income for the fourth quarter decreased $0.4 million, or 1.1%, compared to the quarter ended November 30, 2004. Net income for the year ended February 28, 2005, which included the Transactions expenses, was $176.3 million, a 5.8% decrease from $187.2 million for the year ended February 29, 2004.
In commenting on the quarter's results, Mr. Phillip R. Bennett, President and Chief Executive Officer said, "Refco Group Ltd., LLC's fourth quarter performance concluded a transforming and successful year for Refco, which reported strong performance in its key operating businesses. Refco's transaction volume growth in derivative brokerage, foreign exchange and fixed income equaled or exceeded the strong secular and cyclical growth trends enjoyed by these global markets and drove revenues to record levels. This is indicative of the key attributes of the Company's business model, its financial performance and cash flows. Our results enabled us to voluntarily prepay $150 million of our long-term debt in January 2005 consistent with our previously stated policy of deleveraging. In summary, fiscal 2005's performance maintained excellent growth in net revenue, net income and cash flow of our business segments. Refco's global franchise continues to demonstrate the growth consistency of recent years."
Business Highlights * Derivatives Brokerage & Clearing contract volumes increased by 36 million contracts, or 28.8%, to 161 million contracts for the fourth quarter compared to the same quarter a year ago. * Foreign exchange dollar volumes increased by $111.2 billion, or 37.8%, to $405.2 billion for the fourth quarter compared to the same quarter a year ago, and by $6.2 billion, or 1.6%, compared to the third quarter. * The average net customer securities financing portfolio, or average domestic net repo book, increased by 25.1% for the year ended February 28, 2005 to $31.4 billion from $25.1 billion for the year ended February 29, 2004. Summary of Results * Net revenues represent total revenues less interest expense, excluding interest from long-term borrowings. Net revenues for the fourth quarter increased by 29.5% to $356.2 million from $275.0 million for the same quarter a year ago due to the growth in transaction volumes that reflected broad secular trends across all major market segments that Refco serves. Net revenues for the year ended February 28, 2005 increased by 32.2% to $1,331.9 million from $1,007.7 million for the year ended February 29, 2004. * Total expenses, excluding total interest expense, for the fourth quarter increased by 41.3% to $307.2 million from $217.3 million...
|
