Earnings Call Excerpt
Penson Worldwide Inc. (PNSN)
Q4 2008 Earnings Call
February 06, 2009; 10:00 am ET
Executives
Philip Pendergraft - Chief Executive Officer
Kevin McAleer - Chief Financial Officer
Analysts
Chris Donat - Sandler O’Neill
Ken Worthington - JP Morgan
Mike Vinciquerra - BMO Capital Markets
Patrick O’Shaughnessy - Raymond James
Mark Lane - William Blair & Company
David Scharf - JMP Securities
[Ravi Chopra - Sandler Capital]
Jeff Graph - Springhouse Capital
Presentation
Operator
Good morning and welcome to the Penson Worldwide conference call. Before we begin, I’d like to read Penson’s Safe Harbor statement. Please note this presentation contains certain forward-looking statements about the management’s goals, plans, and expectations which are subject to various risks and uncertainties, outlined in the risk factors section of Penson’s Securities and Exchange Commission filings.
Actual results may differ materially from those currently anticipated and we disclaim any obligation to update information disclosed in this call as a result of development, which occur afterwards. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments following the presentation. (Operator Instructions).
I’d now like to turn the floor over to Mr. Philip Pendergraft, Chief Executive Officer. Mr. Pendergraft, you may begin.
Philip Pendergraft
Thank you. Good morning and thank you for joining us today. I am here today with Kevin McAleer, our Chief Financial Officer. We’ll discuss our quarterly results first and then take your questions. I’d like to start by saying that while we would have liked to have done better, we are not displeased with our pro forma results, especially in light of the very difficult market environment during the fourth quarter. On the other hand, we are obviously not pleased with our GAAP results, a loss of $0.43 per share.
This of course included a loss of $0.69 per share from the write-off and expenses associated with Evergreen Capital, which we will discuss more fully in a few minutes. Excluding that, we would have earned $0.26 per diluted share. This includes a negative impact of approximately $0.02 related to significant exchange rate changes between the third and fourth quarter, which primarily impacted the translation of our Canadian results into U.S. dollars.
It also includes a benefit of about $0.05 per diluted share due to a lower effective tax rate, primarily due to tax credits in our Canadian operations. These credits were unrelated to the Evergreen situation. Revenues declined by approximately $10 million on a sequential quarter basis. Of that, $2.9 million was due to the exchange rate differentials. Most of the effect was on our non-interest revenues, clearing and commission fees in particular.
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