SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2004 |
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OR |
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to
Commission File Number 001-15251
LABRANCHE & CO INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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13-4064735 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
One Exchange Plaza, New York, New York 10006
(Address of principal executive offices)
(212) 425-1144
(Registrant’s telephone number, including area code)
Not Applicable
(Former
name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
The number of shares of the registrant’s common stock outstanding as of May 10, 2004 was 59,821,322.
TABLE OF CONTENTS
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Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
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2
LaBRANCHE & CO INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(000’s omitted except per share data)
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For the
Three Months Ended |
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2004 |
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2003 |
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(unaudited) |
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(unaudited) |
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REVENUES: |
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Net gain on principal transactions |
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$ |
52,298 |
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$ |
51,803 |
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Commissions |
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25,523 |
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22,516 |
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Other |
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2,092 |
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2,315 |
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Total revenues |
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79,913 |
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76,634 |
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EXPENSES: |
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Employee compensation and related benefits |
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27,791 |
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25,819 |
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Interest |
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12,358 |
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11,721 |
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Exchange, clearing and brokerage fees |
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8,894 |
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10,662 |
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Lease of exchange memberships |
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4,143 |
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6,469 |
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Depreciation and amortization of intangibles |
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3,055 |
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3,310 |
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Other |
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10,031 |
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7,380 |
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Total expenses |
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66,272 |
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65,361 |
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Income before minority interest and provision for income taxes |
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13,641 |
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11,273 |
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MINORITY INTEREST |
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175 |
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¾ |
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Income before provision for income taxes |
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13,466 |
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11,273 |
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PROVISION FOR INCOME TAXES |
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5,552 |
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5,746 |
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Net income |
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7,914 |
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5,527 |
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Preferred dividends and discount accretion |
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1,056 |
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1,167 |
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Net income available to common stockholders |
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$ |
6,858 |
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$ |
4,360 |
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Weighted-average common shares outstanding: |
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Basic |
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59,806 |
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59,495 |
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Diluted |
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60,224 |
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60,289 |
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Earnings per share: |
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Basic |
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$ |
0.11 |
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$ |
0.07 |
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Diluted |
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$ |
0.11 |
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$ |
0.07 |
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The accompanying notes are an integral part of these consolidated statements.
3
LaBRANCHE & CO INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
(000’s omitted except per share data)
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As of |
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March 31, 2004 |
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December 31, 2003 |
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(unaudited) |
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(audited) |
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ASSETS |
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Cash and cash equivalents |
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$ |
512,639 |
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$ |
491,885 |
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Cash and securities segregated under federal regulations |
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5,819 |
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3,959 |
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Securities purchased under agreements to resell |
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9,000 |
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13,000 |
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Receivable from brokers, dealers and clearing organizations |
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247,613 |
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142,639 |
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Receivable from customers |
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7,340 |
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3,434 |
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Securities owned, at market value: |
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Corporate equities |
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240,948 |
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265,568 |
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Options |
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96,141 |
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73,694 |
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Exchange-traded funds |
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269,021 |
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102,626 |
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U.S. Government obligations |
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4,043 |
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Commissions receivable |
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4,879 |
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4,613 |
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Exchange memberships contributed for use, at market value |
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13,500 |
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15,000 |
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Exchange memberships owned, at cost (market value of $58,927and $58,870, respectively) |
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77,319 |
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77,319 |
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Office equipment and leasehold improvements, at cost, less accumulated depreciation and amortization of $9,391 and $8,931, respectively |
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4,333 |
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4,659 |
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Intangible assets, net of accumulated amortization: |
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Specialist stock lists |
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368,986 |
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371,580 |
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Trade name |
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25,011 |
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25,011 |
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Goodwill |
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289,593 |
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289,593 |
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Other assets |
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63,381 |
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75,022 |
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Total assets |
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$ |
2,239,566 |
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$ |
1,959,602 |
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