LaBranche & Co. Reports First Quarter Results - EPS $0.40 vs. $0.44 Year Earlier - - Revenues Increase 24% to $98 Million, Cash Earnings $0.55 vs. $0.51 Year Earlier -

Apr 23, 2001, 01:00 ET from LaBranche & Co. Inc.

    NEW YORK, April 23 /PRNewswire/ -- LaBranche & Co Inc. (NYSE:   LAB), parent
 of one of the leading Specialist firms on the New York Stock Exchange, today
 reported financial results for the first quarter ended March 31, 2001.
     Revenues for the first quarter were $98 million, a 24% increase compared
 to $79 million for the first quarter last year.  Net income increased slightly
 to $21 million.  Fully diluted earnings per share were $0.40 compared to $0.44
 in the same quarter of 2000 on five million additional shares outstanding.
 Cash earnings grew 19% to $28 million from $24 million in the comparable
 period last year.  Cash earnings per diluted share were $0.55, an 8% increase
 from the $0.51 reported in the first quarter of 2000.
     Michael LaBranche, Chairman and CEO stated, "Our financial performance was
 respectable given the difficult market environment.  We had a solid quarter
 despite the challenges presented by the full implementation of trading in
 decimals and the substantial decline in the market.  We achieved these results
 while maintaining the highest possible market quality for our listed
 companies.  Our cash earnings of $28 million, or $0.55 per share, were our
 second highest ever."
     Mr. LaBranche added, "We continue to believe that market structure changes
 will lead to lower shareholder transaction costs, higher volumes and an
 increased role for the Specialist.  In addition, we remain actively committed
 to pursuing strategic opportunities to expand our business and leverage our
 technology.  Our acquisition of Robb Peck McCooey, which we completed on
 March 15, 2001 has strengthened our position and gives us greater flexibility
 to execute our growth strategy going forward."
 
     Founded in 1924, LaBranche is one of the leading Specialist firms on the
 New York Stock Exchange in terms of capital, number of stocks traded and
 dollar and share volume traded.  With more than 100 seats on the NYSE, the
 Company is the Specialist for over 500 issues, nine of which are in the Dow
 Jones Industrial Average and 94 of which are in the S&P 500 Index.
 
     Certain statements contained in this release, including without
 limitation, statements containing the words "believes", "intends", "expects",
 "anticipates", and words of similar import, constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  Readers are cautioned that any such forward-looking statements are
 not guarantees of future performance, and since such statements involve risks
 and uncertainties, the actual results and performance of LaBranche and the
 industry may turn out to be materially different from the results expressed or
 implied by such forward-looking statements.  Given these uncertainties,
 readers are cautioned not to place undue reliance on such forward-looking
 statements.  LaBranche also disclaims any obligation to update its view of any
 such risks or uncertainties or to publicly announce the result of any
 revisions to the forward-looking statements made in this release.
 
     TABLES TO FOLLOW
 
                              LaBranche & Co Inc.
                Condensed Consolidated Statements of Operations
                 (all data in thousands, except per share data)
 
                                                        Three Months Ended
                                                              March 31,
                                                         2001           2000
                                                   (unaudited)    (unaudited)
     REVENUES:
     Net gain on principal transactions               $81,460        $65,391
     Commissions                                       11,820          9,185
     Other                                              4,480          4,114
 
       Total revenues                                  97,760         78,690
 
     EXPENSES:
     Employee compensation and related benefits        24,592         22,782
     Interest                                          12,145          6,447
     Depreciation & amortization of intangibles         6,133          2,754
     Lease of exchange memberships                      3,855          2,557
     Exchange, clearing and brokerage fees              3,037          1,033
     Other                                              3,314          2,684
       Total expenses before provision
         for income taxes                              53,076         38,257
 
       Income before provision for income taxes        44,684         40,433
 
     PROVISION FOR INCOME TAXES                        23,760         19,878
 
       Net income                                     $20,924        $20,555
 
     Diluted Weighted Average Shares Outstanding       51,202         46,640
 
     Diluted Earnings per share                         $0.40          $0.44
 
     EBITDA                                           $62,962        $49,634
 
     Diluted Cash Earnings per share                    $0.55          $0.51
 
 
                              LaBranche & Co Inc.
            Condensed Consolidated Statements of Financial Condition
                            (all data in thousands)
 
                                                    March 31,   December 31,
                                                         2001           2000
     ASSETS                                        (unaudited)      (audited)
     CASH AND CASH EQUIVALENTS                       $174,551       $152,220
 
     CASH SEGREGATED UNDER FEDERAL REGULATIONS         91,554          3,610
 
     SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL  101,793        134,111
 
     RECEIVABLE FROM BROKERS, DEALERS AND
     CLEARING ORGANIZATIONS                           214,222         63,468
 
     RECEIVABLE FROM CUSTOMERS                         11,401            912
 
     SECURITIES OWNED, at market value                108,808        141,053
 
     COMMISSIONS RECEIVABLE                             4,972          4,007
 
     EXCHANGE MEMBERSHIPS CONTRIBUTED
       FOR USE, at market value                        28,000         24,000
 
     EXCHANGE MEMBERSHIPS OWNED, at cost
       (market value of $77,090 and
         $52,000 respectively)                         75,315         50,300
 
     INTANGIBLE ASSETS                                838,847        402,893
 
     OTHER ASSETS                                      73,498         27,548
 
         Total assets                              $1,722,961     $1,004,122
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     LIABILITIES:
     Payable to brokers and dealers                   $16,162         $4,068
     Payable to customers                              83,073          4,051
     Securities sold, but not yet purchased,
       at market value                                 70,288         60,726
     Accrued compensation                              44,836         29,240
     Accounts payable and other accrued expenses       38,494         28,319
     Income taxes payable                                  --         10,329
                                                      252,853        136,733
 
     DEFERRED TAX LIABILITIES                         172,540         74,660
 
     LONG TERM DEBT                                   370,304        355,893
 
     SUBORDINATED LIABILITIES
       Exchange memberships, at market value           28,000         24,000
       Other subordinated indebtedness                 50,935         41,935
                                                       78,935         65,935
 
     STOCKHOLDERS' EQUITY                             848,329        370,901
 
         Total liabilities and
           stockholders' equity                    $1,722,961     $1,004,122
 
 
                              LaBranche & Co Inc.
                                    Key Data
                             For the Quarters Ended
                            March 31, 2001 and 2000
 
                                                       Quarter Ended March 31,
                                                         2001           2000
     LaBranche & Co. LLC:
     NYSE average daily share volume (millions)       1,249.1        1,088.6
 
     LAB share volume on NYSE (billions)                 19.1           14.3
 
     LAB dollar volume on NYSE (billions)              $738.8         $666.7
 
     LAB number of principal trades (millions)            3.9            2.8
 
     LAB principal shares traded (billions)               5.7            4.2
 
     LAB dollar value of principal
       shares traded (billions)                          $227           $206
 
     LAB billed agency volume (millions)                1,401          1,116
 
     LAB total common stock listings                      511            411
 
 

SOURCE LaBranche & Co. Inc.
    NEW YORK, April 23 /PRNewswire/ -- LaBranche & Co Inc. (NYSE:   LAB), parent
 of one of the leading Specialist firms on the New York Stock Exchange, today
 reported financial results for the first quarter ended March 31, 2001.
     Revenues for the first quarter were $98 million, a 24% increase compared
 to $79 million for the first quarter last year.  Net income increased slightly
 to $21 million.  Fully diluted earnings per share were $0.40 compared to $0.44
 in the same quarter of 2000 on five million additional shares outstanding.
 Cash earnings grew 19% to $28 million from $24 million in the comparable
 period last year.  Cash earnings per diluted share were $0.55, an 8% increase
 from the $0.51 reported in the first quarter of 2000.
     Michael LaBranche, Chairman and CEO stated, "Our financial performance was
 respectable given the difficult market environment.  We had a solid quarter
 despite the challenges presented by the full implementation of trading in
 decimals and the substantial decline in the market.  We achieved these results
 while maintaining the highest possible market quality for our listed
 companies.  Our cash earnings of $28 million, or $0.55 per share, were our
 second highest ever."
     Mr. LaBranche added, "We continue to believe that market structure changes
 will lead to lower shareholder transaction costs, higher volumes and an
 increased role for the Specialist.  In addition, we remain actively committed
 to pursuing strategic opportunities to expand our business and leverage our
 technology.  Our acquisition of Robb Peck McCooey, which we completed on
 March 15, 2001 has strengthened our position and gives us greater flexibility
 to execute our growth strategy going forward."
 
     Founded in 1924, LaBranche is one of the leading Specialist firms on the
 New York Stock Exchange in terms of capital, number of stocks traded and
 dollar and share volume traded.  With more than 100 seats on the NYSE, the
 Company is the Specialist for over 500 issues, nine of which are in the Dow
 Jones Industrial Average and 94 of which are in the S&P 500 Index.
 
     Certain statements contained in this release, including without
 limitation, statements containing the words "believes", "intends", "expects",
 "anticipates", and words of similar import, constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  Readers are cautioned that any such forward-looking statements are
 not guarantees of future performance, and since such statements involve risks
 and uncertainties, the actual results and performance of LaBranche and the
 industry may turn out to be materially different from the results expressed or
 implied by such forward-looking statements.  Given these uncertainties,
 readers are cautioned not to place undue reliance on such forward-looking
 statements.  LaBranche also disclaims any obligation to update its view of any
 such risks or uncertainties or to publicly announce the result of any
 revisions to the forward-looking statements made in this release.
 
     TABLES TO FOLLOW
 
                              LaBranche & Co Inc.
                Condensed Consolidated Statements of Operations
                 (all data in thousands, except per share data)
 
                                                        Three Months Ended
                                                              March 31,
                                                         2001           2000
                                                   (unaudited)    (unaudited)
     REVENUES:
     Net gain on principal transactions               $81,460        $65,391
     Commissions                                       11,820          9,185
     Other                                              4,480          4,114
 
       Total revenues                                  97,760         78,690
 
     EXPENSES:
     Employee compensation and related benefits        24,592         22,782
     Interest                                          12,145          6,447
     Depreciation & amortization of intangibles         6,133          2,754
     Lease of exchange memberships                      3,855          2,557
     Exchange, clearing and brokerage fees              3,037          1,033
     Other                                              3,314          2,684
       Total expenses before provision
         for income taxes                              53,076         38,257
 
       Income before provision for income taxes        44,684         40,433
 
     PROVISION FOR INCOME TAXES                        23,760         19,878
 
       Net income                                     $20,924        $20,555
 
     Diluted Weighted Average Shares Outstanding       51,202         46,640
 
     Diluted Earnings per share                         $0.40          $0.44
 
     EBITDA                                           $62,962        $49,634
 
     Diluted Cash Earnings per share                    $0.55          $0.51
 
 
                              LaBranche & Co Inc.
            Condensed Consolidated Statements of Financial Condition
                            (all data in thousands)
 
                                                    March 31,   December 31,
                                                         2001           2000
     ASSETS                                        (unaudited)      (audited)
     CASH AND CASH EQUIVALENTS                       $174,551       $152,220
 
     CASH SEGREGATED UNDER FEDERAL REGULATIONS         91,554          3,610
 
     SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL  101,793        134,111
 
     RECEIVABLE FROM BROKERS, DEALERS AND
     CLEARING ORGANIZATIONS                           214,222         63,468
 
     RECEIVABLE FROM CUSTOMERS                         11,401            912
 
     SECURITIES OWNED, at market value                108,808        141,053
 
     COMMISSIONS RECEIVABLE                             4,972          4,007
 
     EXCHANGE MEMBERSHIPS CONTRIBUTED
       FOR USE, at market value                        28,000         24,000
 
     EXCHANGE MEMBERSHIPS OWNED, at cost
       (market value of $77,090 and
         $52,000 respectively)                         75,315         50,300
 
     INTANGIBLE ASSETS                                838,847        402,893
 
     OTHER ASSETS                                      73,498         27,548
 
         Total assets                              $1,722,961     $1,004,122
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     LIABILITIES:
     Payable to brokers and dealers                   $16,162         $4,068
     Payable to customers                              83,073          4,051
     Securities sold, but not yet purchased,
       at market value                                 70,288         60,726
     Accrued compensation                              44,836         29,240
     Accounts payable and other accrued expenses       38,494         28,319
     Income taxes payable                                  --         10,329
                                                      252,853        136,733
 
     DEFERRED TAX LIABILITIES                         172,540         74,660
 
     LONG TERM DEBT                                   370,304        355,893
 
     SUBORDINATED LIABILITIES
       Exchange memberships, at market value           28,000         24,000
       Other subordinated indebtedness                 50,935         41,935
                                                       78,935         65,935
 
     STOCKHOLDERS' EQUITY                             848,329        370,901
 
         Total liabilities and
           stockholders' equity                    $1,722,961     $1,004,122
 
 
                              LaBranche & Co Inc.
                                    Key Data
                             For the Quarters Ended
                            March 31, 2001 and 2000
 
                                                       Quarter Ended March 31,
                                                         2001           2000
     LaBranche & Co. LLC:
     NYSE average daily share volume (millions)       1,249.1        1,088.6
 
     LAB share volume on NYSE (billions)                 19.1           14.3
 
     LAB dollar volume on NYSE (billions)              $738.8         $666.7
 
     LAB number of principal trades (millions)            3.9            2.8
 
     LAB principal shares traded (billions)               5.7            4.2
 
     LAB dollar value of principal
       shares traded (billions)                          $227           $206
 
     LAB billed agency volume (millions)                1,401          1,116
 
     LAB total common stock listings                      511            411
 
 SOURCE  LaBranche & Co. Inc.