TradeStation reports 4th quarter
15 February 2011 Florida
Image: Shutterstock
TradeStation Group has reported 2010 fourth quarter net revenues of $28.9 million, net income of $770,000, and earnings per share (diluted) of 2 cents, compared to 2009 fourth quarter net revenues of $31.2 million, net income of $2.7 million, and earnings per share (diluted) of 7 cents.
The primary reason for the year-over-year difference in net revenues was lower brokerage commissions and fees caused mainly by lower daily average revenue trades (DARTs). For the 2010 fourth quarter, brokerage commissions and fees (the largest component of the company's net revenues) were $24.9 million, as compared to 2009 fourth quarter brokerage commissions and fees of $27.8 million. Lower DARTs were caused, the company believes, primarily by reduced market volatility in the 2010 fourth quarter as compared to the 2009 fourth quarter. The primary reasons for the year-over-year difference in net income were the lower brokerage commissions and fees and higher total expenses, including an increase in depreciation and amortization of $925,000 attributable mainly to two software technology acquisitions and capital expenditures for hardware made by the company in 2010.
"We are focused on several exciting growth initiatives in 2011," said Salomon Sredni, the company's Chairman and CEO. "We plan to launch a superior forex brokerage service, as well as a new marketing campaign that emphasizes the value of TradeStation to the entire active trader market – not just rules-based traders – and to grow our recently-launched securities lending and prime services business and Eurex trading offering. We expect to launch both the new forex offering and the new marketing campaign by the end of the 2011 first quarter."
"At the 2010 year end, our client assets were at an all-time high, average client margin balances had increased 40% since the 2009 fourth quarter, we had cash and cash equivalents and marketable securities of $105.1 million, no debt, total shareholders' equity of $173.4 million, and had produced positive net income for the 35th consecutive quarter," said David Fleischman, the company's Chief Financial Officer. "With interest rates having only one direction to move, and the implementation of our new growth initiatives, we remain excited about our prospects for long-term earnings growth."
The primary reason for the year-over-year difference in net revenues was lower brokerage commissions and fees caused mainly by lower daily average revenue trades (DARTs). For the 2010 fourth quarter, brokerage commissions and fees (the largest component of the company's net revenues) were $24.9 million, as compared to 2009 fourth quarter brokerage commissions and fees of $27.8 million. Lower DARTs were caused, the company believes, primarily by reduced market volatility in the 2010 fourth quarter as compared to the 2009 fourth quarter. The primary reasons for the year-over-year difference in net income were the lower brokerage commissions and fees and higher total expenses, including an increase in depreciation and amortization of $925,000 attributable mainly to two software technology acquisitions and capital expenditures for hardware made by the company in 2010.
"We are focused on several exciting growth initiatives in 2011," said Salomon Sredni, the company's Chairman and CEO. "We plan to launch a superior forex brokerage service, as well as a new marketing campaign that emphasizes the value of TradeStation to the entire active trader market – not just rules-based traders – and to grow our recently-launched securities lending and prime services business and Eurex trading offering. We expect to launch both the new forex offering and the new marketing campaign by the end of the 2011 first quarter."
"At the 2010 year end, our client assets were at an all-time high, average client margin balances had increased 40% since the 2009 fourth quarter, we had cash and cash equivalents and marketable securities of $105.1 million, no debt, total shareholders' equity of $173.4 million, and had produced positive net income for the 35th consecutive quarter," said David Fleischman, the company's Chief Financial Officer. "With interest rates having only one direction to move, and the implementation of our new growth initiatives, we remain excited about our prospects for long-term earnings growth."
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