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GLEACHER & COMPANY REPORTS SECOND QUARTER
2013 FINANCIAL RESULTS
NEW YORK, N.Y., August 8, 2013 Gleacher & Company, Inc. (Nasdaq: GLCH) today reported net loss of $61.5 million for the second quarter of 2013 (including a restructuring charge of $43.6 million) and loss per share of ($10.02).
Gleacher & Company, Inc. (Gleacher or the Company) historically has operated an investment banking business, predominately fixed-income sales and trading and financial advisory services, through three principal business units: Investment Banking, MBS & Rates and Credit Products. The Company also engaged in residential mortgage lending operations through ClearPoint Funding, Inc. (ClearPoint) until this business was discontinued, and the business sold, in February 2013.
The Company has disclosed previously various uncertainties that had adversely impacted counterparty relationships, employee turnover and operating results. Those factors impacted the overall stability of the Companys platform. During the second quarter, the Companys Board of Directors approved plans to discontinue operations in its MBS & Rates and Credit Products divisions (together, Fixed Income or the Fixed Income businesses) as well as, later in the quarter, its Investment Banking Division. As a result of the exits from these businesses, the Company now has no meaningful revenue-producing operations. As of August 8, 2013, the Company had approximately 20 employees.
In connection with exiting Investment Banking and Fixed Income, the Company recognized a charge of approximately $43.6 million. See Results from Discontinued Operations below for additional information.
The Company is evaluating several strategic alternatives in order to preserve and maximize stockholder value. These include:
· pursuing a strategic transaction with a third party, such as a merger or sale of the Company;
· reinvesting the Companys liquid assets into favorable opportunities; and
· continuing the wind-down of the Companys remaining operations and making a distribution of proceeds to stockholders.
On May 31, 2013, the Company appointed Christopher J. Kearns of Capstone Advisory Group, LLC (Capstone) as the Companys Chief Restructuring Officer and Chief Executive Officer. Also, Capstone was retained to assist the Company with its restructuring process.
Also, during the quarter, the Company implemented a 1-for-20 reverse stock split. All share and share-related information in this press release has been adjusted, to the extent necessary, to reflect this reverse stock split. In part as result of this reverse stock split, the Company regained compliance with the listing standards of the Nasdaq Global Market.
The following information was filed by Gleacher Company, Inc. (GLCH) on Thursday, August 8, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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