GLEACHER & COMPANY INC 
By 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 | ||||||||||||
| (In thousands, except for per-share amounts) | March 31, | December 31, | March 31, | |||||||||
| 2014 | 2013 | 2013 | ||||||||||
| Revenue: | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| 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 | |||||||||
Consolidated Statement of Financial Condition (Unaudited) | ||||||||
| (In thousands, except for share and per-share amounts) | March 31, | December 31, | ||||||
| 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 | ||||||
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.
