Van Der Moolen Announces Full Year 2004 Net Income of EUR 18.5 Million.AMSTERDAM Amsterdam, city, Netherlands Amsterdam (ăm`stərdăm', Dutch ämstərdäm`), city (1994 pop. 724,096), constitutional capital and largest city of the Kingdom of the Netherlands, North Holland prov. , Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. -- Van der Moolen Van der Moolen is a Dutch equity trading firm, with its headquarters located in Amsterdam. They are mainly active in the United States and in Europe, particularly in the Netherlands, France, Germany, Switzerland and the United Kingdom. (NYSE NYSE See: New York Stock Exchange :VDM See Virtual DOS Machine and CGM. 1. VDM - Vienna Definition Method 2. VDM - Virtual Device Metafile. )(AEX AEX See: Amsterdam Exchange :VDMN): --net income includes a EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2.3 million net impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge (after tax and minority interest), a EUR 1.6 million net charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the NYSE/SEC provision and an exceptional tax benefit of EUR 6.5 million --group equity rose from 27% to 50% of balance sheet total --dividend on common shares EUR 0.22 per share (or by choice in common shares) Van der Moolen announced that it earned net income from ordinary activities of EUR 18.5 million in 2004, compared to a loss of EUR 15.9 million in 2003. Before impairment charges on fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , and exceptional provisions to cover settlement with the NYSE/SEC net income in 2004 was EUR 22.4 million, 13% less than the EUR 25.8 million reported in 2003. The impairment charges consist of write-downs of fixed assets of EUR 2.3 million in 2004 and EUR 19.9 million in 2003, both items after tax and minority interest. Van der Moolen was able to close 257 (or 99%) of its 260 trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. in 2004 with a positive trading result. Van der Moolen's Executive Board proposes that a dividend of EUR 0.22 per share be paid on common shares for 2004 (or by choice in common shares).
Key Figures
----------------------------------------------- ----------- ----------
Euros millions 4th 4th quarter 3rd
quarter 2003 1) quarter
2004 2004
----------------------------------------------- ----------- ----------
Revenues 29.5 35.5 -17% 27.0 9%
----------------------------------------------- ----------- ----------
Operating income 3.8 (78.6)-105% 5.6 -32%
----------------------------------------------- ----------- ----------
Net income from ordinary activities
before impairment charges and before
exceptional expense relating to
provision NYSE/SEC 7.8 5.5 42% 2.6 200%
----------------------------------------------- ----------- ----------
Impairment charges after tax (2.3) (19.9) -
----------------------------------------------- ----------- ----------
Exceptional expense relating to
provision NYSE/SEC after tax - (21.8) -
----------------------------------------------- ----------- ----------
Net income from ordinary activities 5.5 (36.2)-115% 2.6 112%
----------------------------------------------- ----------- ----------
Guarantee capital 355.3 386.2 -8% 400.5 -11%
----------------------------------------------- ----------- ----------
Per common share data (Euros x 1)
----------------------------------------------- ----------- ----------
Net income from ordinary activities
before impairment charges and before
exceptional expense relating to
provision NYSE/SEC 0.19 0.21 -10% 0.05 274%
----------------------------------------------- ----------- ----------
Net income from ordinary activities 0.13 (0.91)-114% 0.05 153%
----------------------------------------------- ----------- ----------
Cash earnings 0.05 0.55 -90% 0.06 -9%
----------------------------------------------- ----------- ----------
1) adjusted for purposes of comparison
Key Figures
------------------------------- ---------------------
Euros millions 12
months
2004 2003 1)
------------------------------- ---------------------
Revenues 123.3 174.7 -29%
------------------------------- ---------------------
Operating income 26.1 (38.3) -168%
------------------------------- ---------------------
Net income from ordinary
activities before impairment
charges and before exceptional
expense relating to provision
NYSE/SEC 22.4 25.8 -13%
------------------------------- ---------------------
Impairment charges after tax (2.3) (19.9)
------------------------------- ---------------------
Exceptional expense relating to
provision NYSE/SEC after tax (1.6) (21.8)
------------------------------- ---------------------
Net income from ordinary
activities 18.5 (15.9) -216%
------------------------------- ---------------------
Guarantee capital 355.3 386.2 -8%
------------------------------- ---------------------
Per common share data (Euros x 1)
------------------------------- ---------------------
Net income from ordinary
activities before impairment
charges and before exceptional
expense relating to provision
NYSE/SEC 0.51 0.68 -25%
------------------------------- ---------------------
Net income from ordinary
activities 0.41 (0.42) -197%
------------------------------- ---------------------
Cash earnings (0.28) 1.25 -123%
------------------------------- ---------------------
1) adjusted for purposes of comparison
Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. . Bottcher, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Van der Moolen, remarked: "2004 was a year of structural change at Van der Moolen, in which we succeeded in earning net income of EUR 18.5 million, compared to a loss in 2003. This under market conditions that were difficult for much of the year in both Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . During the year Van der Moolen retired all
its outstanding bank credit lines, completed its withdrawal from option
trading activities and significantly improved its equity ratio."Results for the Fourth Quarter of 2004 Fourth quarter net income from ordinary operations, before asset impairment and (in 2003) exceptional charges to fund provisions for the NYSE/SEC settlement, was EUR 7.8 million in 2004 and EUR 5.5 million in 2003, a 42% increase. Net income for the fourth quarter 2004 includes a net amount of EUR 1.6 million, which relates to a release of a provision for a loan and an exceptional tax benefit of EUR 2.8 million. The 2004 impairment charge of EUR 2.3 million after tax and minority interest consists of EUR 1.1 million relating to the valuation of our NYSE seats and EUR 1.2 million relating to the capitalized value capitalized value n. anticipated earnings which are discounted (given a lower value) so that they represent a more realistic current value since projected earnings do not always turn out as favorably as expected or hoped. of VDM Specialist's NYSE specialist assignments. Our ten NYSE seats are now carried at a value of $ 1,344,000 each. At net income level, the fourth quarter saw a profit of EUR 5.5 million compared to a loss of EUR 36.2 million in 2003. Income from ordinary activities (before impairment charges and exceptional provisioning for the NYSE/SEC settlement) per common share declined 10% compared with the fourth quarter of 2003, from EUR 0.21 to EUR 0.19. Van der Moolen closed 65 (or 98%) of the 66 trading days during the quarter with a positive trading result. Results for the full year 2004 Revenues came to EUR 123.3 million in 2004, a decrease of 29% compared with the EUR 174.7 million achieved in 2003. The decrease was the result of the combined effects of a 14% organic decline in revenues, a decrease of 6% due to disposal of operations and a 9% negative translation effect due to currency movements. Total 2004 revenues earned in the U.S. declined by 29% relative to 2003 as a result of a lower contribution from VDM Specialists, the depreciation of the US dollar as well as the disposal of the majority of our U.S. option activities at the end of 2003. In 2004, 81% of our revenues were earned in the U.S., the same as in 2003. VDM Specialists' revenues declined by 25% in 2004 compared with 2003, as a result of a 17% decrease in organic revenues and a 8% negative translation effect. Revenues from European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. trading declined by 18%, with pressure on revenues at our operations in Amsterdam and Cologne Cologne (kəlōn`), Ger. Köln, city (1994 pop. 962,500), North Rhine–Westphalia, W Germany, on the Rhine River. It is a commercial, financial, and industrial center, a rail and road junction, and a river port. . Revenue shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. as a result of the extremely low levels of volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the on the exchanges where these units are active contributed 4% of this decrease, while disposal of our London-based bond unit at the end of 2003 contributed the rest. Transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). fell by 25%, from EUR 29.4 million in 2003 to EUR 22.1 million in 2004, but as a percentage of revenues they rose from 17% to 18%. The increase relative to revenues was largely due to the lower revenue productivity of the trades we executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. , while the absolute decline was mainly the consequence of disposals. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. fell by EUR 108.5 million or 59%, from EUR 183.6 million in 2003 to EUR 75.1 million in 2004. Of this decrease, EUR 41.6 million resulted from reduced impairment charges and EUR 41.3 million came about because the majority of the provisioning for the NYSE/SEC settlement fell on 2003 earnings. Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. contributed EUR 17 million to the decline. The remaining decrease of EUR 8.6 million resulted from reduced seat lease expenses, the US dollar depreciation and other cost savings, partly offset by higher legal and other professional fees primarily relating to the NYSE/SEC investigation. All operating cost lines, except for bonus expenses, decreased in 2004. Our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: before amortization of intangible fixed assets, the impairment of fixed assets and exceptional provisioning for the NYSE/SEC settlement was 30% in 2004, compared with 33% in 2003. The effect of declining organic revenues could only be partly compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. by lower cost levels as a result of reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. and other cost saving measures. Amortization of intangible fixed assets was EUR 3.4 million, compared with a EUR 5.8 million charge in 2003. This decline resulted from the impairments recognized in 2003 and the U.S. dollar depreciation. The impairment of fixed assets charged to 2004 earnings was EUR 5.3 million gross, compared with a similar charge of EUR 46.9 million in 2003; after tax effects and minority interest in these assets, the charges were EUR 2.3 million and EUR 19.9 million, respectively. Net interest charges in 2004 were EUR 8.3 million, compared with a EUR 10.6 million charge in 2003. The decrease was mainly the result of reduced indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and the US dollar depreciation. The tax benefit of EUR 7.1 million in 2004 includes an exceptional tax benefit of EUR 6.5 million. The exceptional tax benefit relates to adjustments of tax accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. of previous years as a result of final assessments issued by the tax authorities of the Netherlands, the Netherlands, The officially Kingdom of The Netherlands byname Holland Country, northwestern Europe. Area: 16,034 sq mi (41,528 sq km). Population (2005 est.): 16,300,000. Capital: Amsterdam. Seat of government: The Hague. Most of the people are Dutch. United States and the United Kingdom as well as unwinding part of the Group's financing company. The effective tax rate on our income from ordinary activities (before the impairment of fixed assets and exceptional provisioning for the NYSE/SEC settlement) was 20% in 2004, which compares to 16% in 2003. This comparison excludes the exceptional items mentioned above. This relatively low tax burden mainly arises from the fiscal deductibility of goodwill write downs in the U.S. Including the impairment of fixed assets and the exceptional provisioning charge related to the NYSE/SEC settlement, the tax burden on 2004 earnings was 12% (2003: gain of 59%). Minority interest in our earnings, relating to the portion of our earnings from ordinary activities attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the partners in our American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of subsidiaries, was a charge of EUR 6.4 million compared to a credit of EUR 8.3 million in 2003. The credit recognized in 2003 is mainly explained by the portion of the impairment of fixed assets and of the exceptional provision for settlement with the NYSE/SEC that is attributable to our minority partners. Net income from ordinary activities (excluding the net impact of impairment of fixed assets and exceptional provisioning for the NYSE/SEC settlement) fell 13% from EUR 25.8 million in 2003 toEUR 22.4 million in 2004. The net result for 2004 was a profit of EUR 18.5 million compared to a loss of EUR 15.9 million in 2003. The net income per common share was EUR 0.41 in 2004, calculated on the basis of the weighted average number of common shares outstanding during the year. This compares to a loss of EUR 0.42 in 2003. Excluding the impairment of fixed assets and the exceptional provision for settlement with the NYSE/SEC, earnings per common share were EUR 0.51 in 2004, compared with EUR 0.68 in 2003, a decline of 25%. Dividends on preferred financing shares in 2003 were charged directly to retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. and hence were not included in the determination of earnings per common share. This contributed 12% to the decline. Cash earnings per common share were a negative EUR 0.28 in 2004, compared with a positive EUR 1.25 in 2003, primarily as a result of payment of the NYSE/SEC settlement (see "Cash flows" below). Discontinued operations Our net income for 2004 included the results of our discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: US option trading operations in 2004. The net loss generated by these operations during 2004 amounted to EUR 2.2 million. Cash flows Cash flow from operating activities was EUR 26.2 million in 2004. Freed up working capital and other positive operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. offset the EUR 42.2 million payment of the NYSE/SEC settlement. Working capital needs decreased by EUR 38.8 million, mainly as a result of the receipt of current tax receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and lower working capital needs at the level of our (discontinued) business units. Positive cash flow from investing activities Cash Flow From Investing Activities An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent of EUR 17.6 million mainly relates to repayments on loans due from third parties and the sale of VDM Bonds (proceeds of the sale less cash balances held by VDM Bonds). Negative cash flows of EUR 49.8 million from financing activities were primarily due to repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. loans, partly offset by the proceeds from the sale of treasury shares. Balance sheet Our balance sheet total declined from EUR 884.4 million at the end of 2003 to EUR 474.4 million at December December: see month. 31, 2004. The decrease is largely the result of the sale of our Bond operations in the UK and the closure of option activities in the U.S. The decrease was further influenced by the payment of the major part of the NYSE/SEC settlement, the repayment of debt and the depreciation of the dollar relative to the euro. Group equity divided by the Balance Sheet total rose from 27% on December 31, 2003 to 50% at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2004. Guarantee capital, which consists of Group equity plus the non-current portion of our subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. indebtedness, declined from EUR 386.2 million to EUR 355.3 million in 2004. The decrease is mainly explained by the reduction of our subordinated indebtedness. As a percentage of our Balance Sheet total, guarantee capital rose from 44% at the end of 2003 to 75% at the end of 2004. The accounting policy in respect of the presentation of part of our cash and cash equivalents has been changed to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" international accounting principles. As a result, cash and cash equivalents held by VDM Specialists for fulfilling its NYSE Net Liquid Asset Requirement in the amount of $ 243 million is presented as financial fixed assets. Comparative data for balance sheet and cash flow statement purposes have been adjusted accordingly. Cash and cash equivalents amount to EUR 40.7 million at year-end 2004 of which EUR 31 million is unrestricted (year-end 2003 EUR 11 million). US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). accounts Net result calculated according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. US GAAP for the full year 2004 amounted to a net loss of EUR 11.4 million. This net loss includes a reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of currency exchange losses previously recognized via equity, net of taxation, in the amount of EUR 15.7 million. These currency exchange losses relate to discontinued operations. Furthermore, our US GAAP result includes impairment charges on goodwill relating to our European trading activities. IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System For an overview of the effects of adopting IFRS in comparison with Dutch GAAP, we refer to the press release of the third quarter of 2004. Dividend proposal At the Annual General Meeting of Shareholders on April 14, 2005, it will be proposed that a dividend of EUR 0.22 in cash per common share or by choice in common shares, on 2004 earnings will be paid to holders of common shares of Van der Moolen Holding NV. Outlook Given the structural changes occurring in our markets, both in the US and Europe, VDM is of the opinion that it is inappropriate inappropriate Medtalk adjective A diagnostic or therapeutic procedure proven to be unnecessary for the efficient management of a particular Pt. See Appropriateness, Canadian plan, Practice guidelines Neurology adjective Referring to a response or behavior to give guidance regarding the likely development of its profits for the current year. For further information please contact Investor Relations/Corporate Communications, telephone: +31 (0)20 535 6789 For more information about Van der Moolen, please visit www.vandermoolen.com. N.B.: Today, at 16:00 CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr , Van der Moolen will host a conference call for analysts. This will be webcast over www.vandermoolen.com. Invitations to participants have been distributed. For more information, please contact Jeff Zelkowitz at Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent. Rafferty Rafferty or Rafferty's rules Noun, pl Austral & NZ slang no rules at all [origin unknown] , telephone: +1 (212) 889 4350. Van der Moolen trades on the leading US and European equity, option and fixed income exchanges. The group trades in open outcry Open Outcry A method of trading on a commodity exchange by making verbal bids and offers in the trading pits. Notes: A contract is made if one trader cries out that he wants to sell at a certain price and then another trader yells out that he will buy at that same price. and electronic markets in several time zones. On the NYSE, Van der Moolen currently has a market share of more than 10% of transaction volume for which it acts as specialist. Van der Moolen's traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. worldwide execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution an average of 75,000 trades a day. Turnover and price volatility are the most important factors influencing its results. Van der Moolen's shares are listed on Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] Amsterdam
(VDMN.AS). American Depositary Receipts American Depositary Receipt (ADR)Certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. (ADRs) representing Van der Moolen shares are listed on the NYSE (VDM). Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : Certain statements contained in this press release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ". These statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect", "hope", and words of similar meaning, reflect management's beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements, and are referred to the documents filed by the Company with the US Securities and Exchange Commission, specifically the Company's most recent filing on Form 20-F, which identify important risk factors that could cause actual results to differ, including the outcome of the NYSE inquiry and related civil litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. in U.S. courts against Van der Moolen Holding, Van der Moolen Specialists USA, and the members of the Management Board of the Holding. The Company disclaims any obligation to update its view of such risks and uncertainties or to publicly announce the result of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to the forward-looking statements made herein, except where it would be required to do so under applicable law.
Van der Moolen Holding N.V.
Consolidated Profit and Loss Account
(Dutch GAAP, Unaudited)
--------------------------------------------------- ------------ -----
(amounts in millions of Euros, except per share Q4 Q4
data) %
2004 2003 1)
--------------------------------------------------- ------------ -----
Revenues 29.5 35.5 -17%
Transaction costs 5.0 7.0 -29%
Net revenues 24.5 28.5 -14%
Fixed personnel expenses 7.3 10.1
Bonus expenses 1.3 (4.8)
Seat leases 2.0 3.1
Information and communication expenses 0.7 1.2
Depreciation 0.4 1.3
Amortization of intangible fixed assets 0.8 1.3
Impairment fixed assets 5.3 46.9
Exceptional expense relating to provision NYSE/SEC - 43.5
General and administrative expenses 2.9 4.5
Total operating expenses 20.7 107.1 -81%
Operating income 3.8 (78.6) -105%
Net interest income (expense) (1.9) (2.3)
Gain on disposal of financial fixed assets - -
Income from ordinary activities before tax 1.9 (80.9) -102%
Taxation (4.2) (27.0)
Income from ordinary activities after tax 6.1 (53.9) -111%
Minority interest 0.6 (17.7)
Net income (loss) 5.5 (36.2) -115%
--------------------------------------------------- ------------ -----
Van der Moolen Holding N.V.
Consolidated Profit and Loss Account
(Dutch GAAP, Unaudited)
-------------------------------------- --------- ------- ------- -----
(amounts in millions of Euros, except Q3 12 12
per share data) % months months %
2004 2004 2003 1)
-------------------------------------- --------- ------- ------- -----
Revenues 27.0 9% 123.3 174.7 -29%
Transaction costs 5.4 -7% 22.1 29.4 -25%
Net revenues 21.6 13% 101.2 145.3 -30%
Fixed personnel expenses 7.4 30.9 43.7
Bonus expenses 0.9 5.4 4.6
Seat leases 2.1 8.6 14.7
Information and communication expenses 0.8 3.1 5.3
Depreciation 0.4 1.6 3.3
Amortization of intangible fixed
assets 0.9 3.4 5.8
Impairment fixed assets - 5.3 46.9
Exceptional expense relating to
provision NYSE/SEC - 2.2 43.5
General and administrative expenses 3.5 14.6 15.8
Total operating expenses 16.0 29% 75.1 183.6 -59%
Operating income 5.6 -32% 26.1 (38.3) -168%
Net interest income (expense) (1.7) (8.3) (10.6)
Gain on disposal of financial fixed
assets - - 1.9
Income from ordinary activities before
tax 3.9 -51% 17.8 (47.0) -138%
Taxation (0.2) (7.1) (22.8)
Income from ordinary activities after
tax 4.1 49% 24.9 (24.2) -203%
Minority interest 1.5 6.4 (8.3)
Net income (loss) 2.6 112% 18.5 (15.9) -216%
-------------------------------------- --------- ------- ------- -----
------------- ---------------------- -----
Net income (loss) from ordinary activities
before impairment charges and before
exceptional expense relating to provision
NYSE/SEC 7.8 5.5 42%
Impairment
charges
after tax (2.3) (19.9)
Exceptional
expense
relating to
provision
NYSE/SEC
after tax - (21.8)
Net income
(loss) from
ordinary
activities 5.5 (36.2) -115%
Dividends on
financing
preferred
shares 0.7 (2.2)
Net income
(loss) from
ordinary
activities
attributable
to holders
of common
shares 4.8 (34.0) -114%
Cash earnings
attributable
to holders
of common
shares 2.1 20.7 -90%
Average
number of
common
shares
outstanding 38,317,100 37,539,057 2%
Diluted
average
number of
common
shares
outstanding 38,317,100 37,539,057 2%
Per share
data:
Net income (loss) from ordinary activities
before impairment charges and before
exceptional expense relating to provision
NYSE/SEC per common share 0.19 0.21 -10%
Diluted net income (loss) from ordinary
activities before impairment charges and
before exceptional expense relating to
provision NYSE/SEC per common share 0.19 0.21 -10%
Net income
(loss) from
ordinary
activities
per common
share 0.13 (0.91) -114%
Diluted net
income
(loss) from
ordinary
activities
per common
share 0.13 (0.91) -114%
Cash earnings
per share
(Cash EPS) 0.05 0.55 -90%
Diluted Cash
EPS 0.05 0.55 -90%
------------- ---------------------- -----
1) adjusted
for purposes
of
comparison
------------- ----------- ---- ---------------------- -----
Net income (loss) from
ordinary activities
before impairment
charges and before
exceptional expense
relating to provision
NYSE/SEC 2.6 200% 22.4 25.8 -13%
Impairment
charges
after tax - (2.3) (19.9)
Exceptional
expense
relating to
provision
NYSE/SEC
after tax - (1.6) (21.8)
Net income
(loss) from
ordinary
activities 2.6 112% 18.5 (15.9) -216%
Dividends on
financing
preferred
shares 0.7 2.9 -
Net income
(loss) from
ordinary
activities
attributable
to holders
of common
shares 1.9 153% 15.6 (15.9) -198%
Cash earnings
attributable
to holders
of common
shares 2.3 -9% (10.8) 47.2 -123%
Average
number of
common
shares
outstanding 38,317,100 0% 38,078,411 37,797,329 1%
Diluted
average
number of
common
shares
outstanding 38,317,100 0% 38,078,411 37,797,329 1%
Per share
data:
Net income (loss) from
ordinary activities
before impairment
charges and before
exceptional expense
relating to provision
NYSE/SEC per common
share 0.05 274% 0.51 0.68 -25%
Diluted net income
(loss) from ordinary
activities before
impairment charges and
before exceptional
expense relating to
provision NYSE/SEC per
common share 0.05 274% 0.51 0.68 -25%
Net income
(loss) from
ordinary
activities
per common
share 0.05 153% 0.41 (0.42) -197%
Diluted net
income
(loss) from
ordinary
activities
per common
share 0.05 153% 0.41 (0.42) -197%
Cash earnings
per share
(Cash EPS) 0.06 -9% (0.28) 1.25 -123%
Diluted Cash
EPS 0.06 -9% (0.28) 1.25 -123%
------------- ----------- ---- ---------------------- -----
1) adjusted for purposes of comparison
---------------------------------------- ----- ------- ---- ----- ----
Van der Moolen Holding N.V. Q4 Q4 % Q3 %
Revenue breakdown in millions of Euros 2004 2003 1) 2004
---------------------------------------- ----- ------- ---- ----- ----
VDM Specialists 23.8 27.3 21.3
Net gain on principal transactions 15.4 19.2 -20% 14.5 6%
Commissions 5.9 6.3 -6% 5.2 13%
Other 2.5 1.8 39% 1.6 56%
US Option Business 0.3 0.4 25% 0.1 200%
European Trading 5.3 5.3 0% 5.5 -4%
Unallocated and Holding 0.1 2.5 -96% 0.1 0%
---------------------------------------- ----- ------- ---- ----- ----
Total revenues 29.5 35.5 -17% 27.0 9%
---------------------------------------- ----- ------- ---- ----- ----
------------------------------------------------- ------- ------- ----
Van der Moolen Holding N.V. 12 12
months months %
Revenue breakdown in millions of Euros 2004 2003 1)
------------------------------------------------- ------- ------- ----
VDM Specialists 99.6 133.1
Net gain on principal transactions 68.7 98.5 -30%
Commissions 23.9 27.2 -12%
Other 7.0 7.4 -5%
US Option Business - 4.1 100%
European Trading 23.1 28.1 -18%
Unallocated and Holding 0.6 9.4 -94%
------------------------------------------------- ------- ------- ----
Total revenues 123.3 174.7 -29%
------------------------------------------------- ------- ------- ----
Van der Moolen Holding N.V. Q4 Q4 Q3
2004 2003 1) 2004
% %
Operating income before amortization of
intangible fixed assets, before
impairment and before exceptional
expense relating to provision NYSE/SEC,
breakdown in millions of Euros
--------------------------------------------- ------- ----- ----- ----
VDM
Specialists 9.7 16.1 -40% 8.4 15%
US Option
Business (0.3) (2.6) 88% (0.3) 0%
European
Trading 0.6 (3.0) -120% -
Unallocated
and Holding (0.1) 2.6 -104% (1.6) -94%
------------ ----- ------- ----- ----- ----
Total operating income before
amortization of intangible fixed
assets, before impairment and before
exceptional expense relating to
provision NYSE/SEC 9.9 13.1 -24% 6.5 52%
--------------------------------------------- ------- ----- ----- ----
Van der Moolen Holding N.V. 12 12
months months
2004 2003 1)
%
Operating income before amortization of
intangible fixed assets, before impairment and
before exceptional expense relating to
provision NYSE/SEC , breakdown in millions of
Euros
----------------------------------------------- ------- ------- ------
VDM
Specialists 43.5 67.4 -35%
US Option
Business (2.6) (6.5) 60%
European
Trading 2.2 (2.6) -185%
Unallocated
and Holding (6.1) (0.4) -1425%
------------ ------- ------- ------
Total operating income before amortization of
intangible fixed assets, before impairment and
before exceptional expense relating to
provision NYSE/SEC 37.0 57.9 -36%
----------------------------------------------- ------- ------- ------
VDM Specialists (VDMS) Q4 Q4 Q3
Key figures (Dutch GAAP) 2004 2003 1) 2004
----------------------------------------------- ------ -------- ------
VDM Specialists revenues ($ million) 30.8 32.4 26.1
Net gain on principal transactions 20.0 22.9 17.7
Commissions 7.7 7.4 6.4
Other 3.1 2.1 2.0
Total value of trading on NYSE ($ billion) 3,133 2,546 2,633
Value of trading in VDMS assignments ($
billion) 360 294 290
VDMS market share in dollar value NYSE 11.5% 11.6% 11.0%
VDMS value of principal shares traded ($
billion) 76 76 65
Participation rate 21.2% 26.0% 22.4%
VDMS net gain on principal transactions ($
million) 20.0 22.9 17.7
Realization rate (basis points) 2.6 3.0 2.7
----------------------------------------------- ------ -------- ------
Source: NYSE, Van der Moolen
1) adjusted for purposes of comparison
VDM Specialists (VDMS) 12 12
months months
Key figures (Dutch GAAP) 2004 2003 1)
------------------------------------------------------ ------- -------
VDM Specialists revenues ($ million) 123.8 149.9
Net gain on principal transactions 85.3 110.8
Commissions 29.8 30.7
Other 8.7 8.4
Total value of trading on NYSE ($ billion) 11,618 9,692
Value of trading in VDMS assignments ($ billion) 1,312 1,098
VDMS market share in dollar value NYSE 11.3% 11.3%
VDMS value of principal shares traded ($ billion) 302 309
Participation rate 23.0% 28.1%
VDMS net gain on principal transactions ($ million) 85.3 110.8
Realization rate (basis points) 2.8 3.6
------------------------------------------------------ ------- -------
Source: NYSE, Van der Moolen
1) adjusted for purposes of comparison
Van der Moolen Holding N.V.
Consolidated Balance Sheet
(Dutch GAAP, unaudited)
----------------------------------------------------------------------
(amounts in millions of Euros) December December
31, 31,
2004 2003
----------------------------------------------------------------------
Assets
Fixed assets
Intangible fixed assets 71.0 83.5
Tangible fixed assets 4.1 6.3
Financial fixed assets 257.2 296.5
------ ------
332.3 386.3
Current assets
Long positions securities 43.9 302.0
Clearing organizations and professional
parties 39.9 93.5
Accrued income and other receivables 17.6 33.4
Cash and cash-equivalents 40.7 69.2
------ ------
142.1 498.1
----------------------------------------------------------------------
Total assets 474.4 884.4
----------------------------------------------------------------------
Shareholders' equity and liabilities
Shareholders' equity 208.6 201.5
Minority interest 26.4 33.0
------ ------
Group equity 235.0 234.5
Provisions
Deferred tax liabilities 3.8 4.7
Other provisions 1.6 44.6
------ ------
5.4 49.3
Long-term liabilities
Subordinated debt 120.3 151.7
Long-term debt 1.7 2.0
------ ------
122.0 153.7
Short-term liabilities
Short positions securities 34.6 259.7
Clearing organizations and professional
parties 16.8 77.9
Short-term loans 15.7 48.3
Advanced by clearing organizations 0.7 25.2
Accrued expenses and other liabilities 44.2 35.8
------ ------
112.0 446.9
----------------------------------------------------------------------
Total shareholders' equity and
liabilities 474.4 884.4
----------------------------------------------------------------------
----------------------------------------------------------------------
Guarantee capital 355.3 386.2
----------------------------------------------------------------------
Van der Moolen Holding N.V.
Consolidated statement of cash flow/ Movement
schedule of shareholders'equity
(Dutch GAAP, unaudited)
Consolidated statement of cash flow
----------------------------------------- ------------- --------------
(Amounts in millions of Euros) 12 12
months months
2004 2003 1)
----------------------------------------- ------------- --------------
Cash flow from operating activities
Net income 18.5 (15.9)
Net gain on disposal of financial fixed
assets (2.3) (1.9)
Minority interest 6.4 (8.3)
Depreciation and amortization of fixed
assets 5.0 9.1
Impairment fixed assets 5.3 46.9
Amortization on deferred gain on swaps (3.2) (2.0)
Change deferred taxation and non-cash tax
effects (2.3) (11.7)
Change in provisions 2.2 (0.9)
Settlement NYSE/SEC investigation (42.2) 43.5
Change in working capital 38.8 (52.2)
------ -------
26.2 6.6
Cash flow from investing activities
Investments in tangible fixed assets (1.1) (1.7)
Disposals of tangible fixed assets 1.1 0.3
Divestments group companies, less cash
balances held 2.7 -
Investments in financial fixed assets - (0.1)
Divestments and repayments of financial
fixed assets 14.9 3.3
------ -------
17.6 1.8
Cash flow from financing activities
Net change in subordinated debt and long-
term liabilities (6.6) (7.6)
Net change of short-term loans (41.4) 35.4
Sale / purchase of common shares 5.6 (8.1)
Proceeds from termination of interest
rate swaps (0.2) 13.6
Dividend payment (2.9) (30.2)
Net change in minority interest (4.3) (9.1)
------ -------
(49.8) (6.0)
Currency exchange differences on cash and cash-
equivalents, net of amounts advanced by clearing
organizations 2.0 (18.2)
Change in cash and cash-equivalents, net
of amounts advanced by clearing
organizations (4.0) (15.8)
Cash and cash-equivalents, net of amounts
advanced by clearing organizations at January 1, 44.0 59.8
------ -------
Cash and cash-equivalents, net of amounts
advanced by clearing organizations at
December 31, 40.0 44.0
------------------------------------------------------- --------------
Movement in shareholders'equity
----------------------------------------- ------------- --------------
(Amounts in millions of euros) 12 12
months months
2004 2003
----------------------------------------- ------------- --------------
Shareholders' equity at January 1 201.5 312.2
Cash dividend - (27.3)
Currency exchange differences (14.1) (56.4)
Net income for the period January 1 -
December 31 18.5 (15.9)
Preferred dividend for the period January
1 - December 31 (2.9) (2.9)
Sale / purchase of common shares 5.6 (8.1)
Other - (0.1)
------ -------
7.1 (110.7)
------ -------
Shareholders' equity at December 31 208.6 201.5
----------------------------------------- ------------- --------------
1) adjusted for purposes of comparison: The comparative figures in the cash flow statement are adjusted to reflect the cash flow movements on the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. agreements in connection with our subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". in the USA and herewith-related adjustment of non-cash items included in net income.
Van der Moolen Holding
N.V.
Net income and
shareholders' equity
(US GAAP, unaudited)
----------------------- ---------------------- ----- -----------------
(amounts in millions Q4 Q4 Q3
of Euros) % %
2004 2003 2) 2004
----------------------- ---------------------- ----- -----------------
Net income (loss) in
accordance with Dutch
GAAP 5.5 (36.2) -115% 2.6 112%
Adjustments to reported
net income
Amortization of
intangible fixed
assets (0.6) (0.4) (0.8)
Impairment of
intangible fixed
assets (5.9) (35.8) -
Pensions - 0.1 -
Stock options (0.7) (0.8) (0.6)
Reversal of currency
exchange losses, net
of taxation 1) (15.7) - -
Other 0.4 (2.7) -
Taxation (2.4) 6.2 (0.9)
---------------------- -----------
Net income (loss) in
accordance with US
GAAP (19.4) (69.6) -72% 0.3 -6567%
Dividend on financing
preferred shares (0.7) 2.2 (0.7)
Net income (loss) in
accordance with US
GAAP attributable to
common shares (20.1) (67.4) -70% (0.4) 4925%
Average number of
common shares
outstanding 38,317,100 37,539,057 38,317,100
Diluted average number
of common shares
outstanding 38,317,100 37,539,057 38,317,100
-----------------------
(amounts in euros)
-----------------------
Net income (loss) from
ordinary activities
per common share in
accordance with Dutch
GAAP 0.13 (0.91) -114% 0.05 153%
Basic earnings (loss)
per common share in
accordance with US
GAAP (0.52) (1.80) -71% (0.01) 4925%
Diluted net income
(loss) from ordinary
activities per common
share in accordance
with Dutch GAAP 0.13 (0.91) -114% 0.05 153%
Diluted earnings (loss)
per common share in
accordance with US
GAAP (0.52) (1.80) -71% (0.01) 4925%
----------------------- ---------------------- ----- -----------------
----------------------- ---------------------- ----- -----------------
(amounts in millions of Q4 Q4 Q3
Euros) % %
2004 2003 2) 2004
----------------------- ---------------------- ----- -----------------
Depreciation and
amortization fixed
assets in accordance
with US GAAP
Depreciation 0.4 1.3 0.4
Amortization of
intangible fixed
assets 1.4 1.5 1.5
---------------------- -----------
Total depreciation and
amortization fixed
assets in accordance
with US GAAP 1.8 2.8 -36% 1.9 -5%
----------------------- ---------------------- ----- -----------------
Van der Moolen Holding N.V.
Net income and shareholders' equity
(US GAAP, unaudited)
---------------------------------------- ----------- ----------- -----
(amounts in millions of Euros) 12 months 12 months %
2004 2003 2)
---------------------------------------- ----------- ----------- -----
Net income (loss) in accordance with
Dutch GAAP 18.5 (15.9) -216%
Adjustments to reported net income
Amortization of intangible fixed assets (2.8) (1.6)
Impairment of intangible fixed assets (5.9) (35.8)
Pensions - 0.1
Stock options (2.5) (4.7)
Reversal of currency exchange losses,
net of taxation 1) (15.7) -
Other 2.0 (3.1)
Taxation (5.0) 2.4
----------- -----------
Net income (loss) in accordance with US
GAAP (11.4) (58.6) -81%
Dividend on financing preferred shares (2.9) 0.0
Net income (loss) in accordance with US
GAAP attributable to common shares (14.3) (58.6) -76%
Average number of common shares
outstanding 38,078,411 37,797,329
Diluted average number of common shares
outstanding 38,078,411 37,797,329
----------------------------------------
(amounts in euros)
----------------------------------------
Net income (loss) from ordinary
activities per common share in
accordance with Dutch GAAP 0.41 (0.42) -197%
Basic earnings (loss) per common share
in accordance with US GAAP (0.38) (1.55) -76%
Diluted net income (loss) from ordinary
activities per common share in
accordance with Dutch GAAP 0.41 (0.42) -197%
Diluted earnings (loss) per common share
in accordance with US GAAP (0.38) (1.55) -76%
---------------------------------------- ----------- ----------- -----
---------------------------------------- ----------- ----------- -----
(amounts in millions of Euros) 12 months 12 months %
2004 2003 2)
---------------------------------------- ----------- ----------- -----
Depreciation and amortization fixed
assets in accordance with US GAAP
Depreciation 1.6 3.3
Amortization of intangible fixed assets 5.9 6.6
----------- -----------
Total depreciation and amortization
fixed assets in accordance with US GAAP 7.5 9.9 -24%
---------------------------------------- ----------- ----------- -----
------------------------------------------------------ ------ --------
(amounts in millions of Euros ) Dec. Dec.
31, 31,
2004 2003 2)
------------------------------------------------------ ------ --------
Shareholders' equity in accordance with Dutch GAAP 208.6 201.5
Adjustments to reported shareholders' equity
Goodwill and specialist assignments 139.3 152.7
Pensions 8.0 8.0
Taxation (25.7) (15.3)
Provision NYSE/SEC - (1.6)
Other - 2.8
------------------------------------------------------ ------ --------
Shareholders' equity in accordance with US GAAP 330.2 348.1
------------------------------------------------------ ------ --------
1) Reversal of currency exchange losses net of taxation relate to discontinued operations. These net currency exchange losses were previously recognized via equity and under US GAAP are reversed to the income statement upon disposal. 2) adjusted for purposes of comparison: The reconciliation of shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. as at December 31, 2003 has been adjusted to reflect the final US GAAP numbers as included in the 20f for the year 2003 (adjustment provision NYSE/SEC and preferred dividend preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) ). |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion