Van der Moolen Announces Second Quarter Results.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. ) reports 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. 7.7 million net income from ordinary activities for the second quarter of 2004, including an exceptional tax benefit of EUR 3.7 million. --Group equity divided by balance sheet total rose from 27% 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. 2003 to 47% on June June: see month. 30, 2004 --Significant repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities : on June 30, 2004 EUR 5.8 million is drawn under facilities, compared to EUR 36.3 million at year-end 2003 --Unrestricted cash increased from EUR 11 million at year-end 2003 to EUR 33 million on June 30, 2004 (March 31, 2004 was EUR 20 million). Van der Moolen announces that it earned net income from ordinary activities of EUR 7.7 million in the second quarter of 2004, including an exceptional tax benefit of EUR 3.7 million. Excluding that benefit, net income from ordinary activities of EUR 4.0 million represented a decline of 7% compared with net income of EUR 4.3 million before exceptional charge to top up the provision for NYSE/SEC settlement in the first quarter of 2004 and a decline of 42% compared with net income of EUR 6.9 million in the second quarter of 2003. Net income from ordinary activities per common share (including exceptional items in all periods) was EUR 0.18 in the second quarter of 2004, which compares with EUR 0.05 in the first quarter 2004 and EUR 0.16 in the second quarter of 2003. Van der Moolen closed 61 (or 97%) of its 63 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 the second quarter with a positive trading result. Our NYSE participation rate was 23.2%, compared to 25.3% in the first quarter of 2004 and 27.7% in the second quarter last year. Our realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. rates were 3.0, 3.0 and 3.6 basis points, respectively.
Key Figures
--------------------------- ---------------------- -----------------
Euros millions 2nd 6 months
quarter 2nd quarter 1st quarter
2004 2003 (a) 2004 (a) 2004 2003 (a)
----------------------------------------------------------------------
Revenues 30.9 47.5 -35% 35.9 -14% 66.8 95.9 -30%
--------------------------- ---------------------- -----------------
Operating income 8.4 14.7 -43% 8.3 1% 16.7 27.6 -39%
--------------------------- ---------------------- -----------------
Net income from
ordinary activities
before impairment
charges and before
exceptional expense
relating to
provision NYSE/SEC 7.7 6.9 12% 4.3 79% 12.0 14.8 -19%
--------------------------- ---------------------- -----------------
Exceptional expense
relating to
provision NYSE/SEC
after tax - - (1.6) (1.6) -
--------------------------- ---------------------- -----------------
Net income from
ordinary activities 7.7 6.9 12% 2.7 185% 10.4 14.8 -30%
--------------------------- ---------------------- -----------------
Guarantee capital 410.1 495.0 -17%392.5 4% 410.1 495.0 -17%
--------------------------- ---------------------- -----------------
Per common share
data (Euros x 1)
--------------------------- ---------------------- -----------------
Net income from
ordinary activities
before impairment
charges and before
exceptional expense
relating to
provision NYSE/SEC 0.18 0.16 12% 0.10 89% 0.28 0.35 -21%
--------------------------- ---------------------- -----------------
Net income from
ordinary activities 0.18 0.16 12% 0.05 240% 0.24 0.35 -33%
--------------------------- ---------------------- -----------------
Cash earnings (0.54) 0.24 -322% 0.14 -475% (0.40) 0.52 -177%
--------------------------- ---------------------- -----------------
(a) adjusted for purposes of comparison
F.M.J. (Fred (Friendly Rollabout Engineered for Doctors) A mobile medical conferencing unit. See videoconferencing. 1. FRED - Robert Carr. Language used by Framework, Ashton-Tate. 2. ) Boettcher, Van der Moolen's 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. , remarked, "Van der Moolen significantly reduced costs and strengthened its financial position during the second quarter of 2004. Operating costs operating costs npl → gastos mpl operacionales declined 33% year on year and 20% compared to the first quarter. Our financial condition - both liquidity and debt ratios - not only stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. but returned to comfortable position even as we paid the NYSE/SEC settlement provision and applied disposal proceeds to debt reduction. Improved market conditions at the start of the year reversed themselves in the second quarter. Consequently, revenue capture deteriorated and reduced expenses could only partly compensate for this. We expect an eventual recovery in our trading environment, but the return to poor trading conditions we saw in the second quarter has stimulated stim·u·late v. stim·u·lat·ed, stim·u·lat·ing, stim·u·lates v.tr. 1. To rouse to activity or heightened action, as by spurring or goading; excite. See Synonyms at provoke. 2. us to renew our efforts to cut our cost base and to find new revenue sources, either in our existing activities or by acquisition." Results for the second quarter of 2004 After a strong start to the year, in the second quarter of 2004 turnover declined on most of the equity exchanges we trade. Efforts are made, and continue to make, to shift our activity toward trading strategies In finance, a trading strategy (see also trading system) is a predefined set of rules to apply. Usually, this refers to a means used to replicate an option in order to give it an arbitrage free value in the sense that the cost of buying some financial assets to give the same such as arbitrage arbitrage: see foreign exchange. arbitrage Business operation involving the purchase of foreign currency, gold, financial securities, or commodities in one market and their almost simultaneous sale in another market, in order to profit from price that are somewhat less dependent on volumes, but this could only partially offset the negative influence of lower turnover.
Change in turnover on the principal equity exchanges where Van der
Moolen is active
----------------------------------------------------------------------
Q2 2004 vs. Q2 2004 vs.
Q1 2004 Q1 2004
----------------------------------------------------------------------
Borsa Italiana n.a. London Stock Exchange -10.8%
Deutsche Boerse -18.9% New York Stock Exchange -3.0%
Euronext -6.5% SWX Swiss Exchanges +1.0%
----------------------------------------------------------------------
local currencies; source: individual exchanges
----------------------------------------------------------------------
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 again developed inconsistently in·con·sis·tent adj. 1. Displaying or marked by a lack of consistency, especially: a. Not regular or predictable; erratic: inconsistent behavior. b. between markets, but dropped off noticeably no·tice·a·ble adj. 1. Evident; observable: noticeable changes in temperature; a noticeable lack of friendliness. 2. Worthy of notice; significant. in all of them during June.
Change in Average Intraday Price Ranges, Q2 2004 vs. Q1 2004
---------------------------------------------------------------------
AEX Index (Netherlands) -15.3% FTSE 100 Index (U.K.) -5.5%
CAC 40 Index (France) -4.3% MIB Index (Italy) -2.6%
DAX Index (Germany) NYSE Composite Index
+2.6% (U.S.) +3.7%
Swiss Market Index -6.6%
---------------------------------------------------------------------
source: Bloomberg
---------------------------------------------------------------------
At EUR 30.9 million, our reported revenues in the second quarter were 14% lower than in the first quarter of 2004 and 35% below those earned in the second quarter of 2003. The factors that drove these comparisons were as follows:
Influences on Q2 2004 Revenue Development
-------------------------------------------------------------------
Q2 2004 vs. Q2 2004 vs.
Q2 2003 Q1 2004
-------------------------------------------------------------------
Organic change in revenues -19% - 15%
U.S. dollar effects - 9% + 1%
Discontinued operations (including VDM
Bonds) - 7% -
-------------------------------------------------------------------
Net change in revenues -35% - 14%
-------------------------------------------------------------------
On a like-for-like basis, second quarter revenues decreased by 15% compared with the first quarter of 2004. All operations except Amsterdam equities and U.S. options experienced a decline in revenues. 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). declined by 14% compared to the preceding quarter, and 26% compared with the second quarter of 2003. The decrease relative to the preceding quarter was largely the result of reduced levels of activity and the first benefits of Euronext's new tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic structure, partially offset by currency effects. In addition to these factors, sale or closure of operations and reduced SEC fee rates at the level of VDM Specialists had a substantial effect on the year-over-year comparison. 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. were 20% less than in the first quarter of 2004. All cost lines except seat leases and amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. decreased. These two items, which were essentially unchanged in dollar terms, increased as a result of currency movements. The largest cost reduction was due to the absence of a provisioning charge in the first quarter of EUR 2.2 million, and as a result of reduced legal and advisory fees related to the NYSE/SEC investigation, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. declined by EUR 1.6 million. Compared to the second quarter of 2003, operating expenses decreased by 33%, primarily as a result of cost savings achieved in the intervening in·ter·vene intr.v. in·ter·vened, in·ter·ven·ing, in·ter·venes 1. To come, appear, or lie between two things: You can't see the lake from there because the house intervenes. 2. period (including the effect of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ), lower bonus 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. and the depreciation of the U.S. dollar. Compared with the first quarter of 2004, second quarter bonus expenses declined less than revenues. Our bonus calculations are largely determined by our revenue capture, after taking cost items into account: decreased revenue in the second quarter would normally have resulted in a lower accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. . However, the first quarter 2004 included charges in relation to the provision for NYSE/SEC settlement and related legal advice that had the effect of lowering bonus accruals. Interest expense declined by 32% or EUR 0.9 million in the second quarter of 2004 compared to the first, as we repaid the major part of our short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. . This happened over the course of the quarter, so a further reduction in interest expenses can be expected in the third quarter. Corporate taxation (excluding the exceptional tax benefit) in the second quarter was EUR 0.3 million, representing an effective tax rate of 7%, compared with 14% and 22% in the first quarter of 2004 and the second quarter of 2003, respectively (these rates exclude the effects of all exceptional items). The exceptional tax benefit in the amount of EUR 3.7 million relates to the adjustment of tax accruals 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 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. and United Kingdom. On July July: see month. 1, 2004, our Dutch financing company converted a substantial part of its intra group loan base into capital. This conversion will reduce the future tax benefits obtained from the concern financing entity, and consequently our consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: effective tax rate is expected to increase by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 8 percentage points (assuming pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. at second quarter 2004 level and composition). We are currently reviewing alternatives to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the consequences of the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the
concern financing regime in the Netherlands as of December December: see month. 31, 2007.Minority interest was a EUR 2.2 million charge in the second quarter, compared with charges of EUR 2.1 million and EUR 3.1 million in the first quarter of 2004 and second quarter of 2003, respectively. The decline compared to the first quarter 2004 is primarily explained by the lower pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income earned by VDM Specialists, partially offset by currency effects. Minority interest in 2003 still included the participation in the loss of one of our option units by minority members. Net income from ordinary activities in the second quarter of 2004 was EUR 7.7 million (or EUR 0.18 per common share), a 185% increase from the first quarter (including the exceptional provisioning charged to that quarter) and a 12% increase from the second quarter of the prior year. Excluding the exceptional tax adjustment in the second quarter as well as the exceptional provisioning charge in the first, second quarter net income was EUR 4.0 million (or EUR 0.08 per common share), a 7% decrease from the first quarter and a 42% decline year-on-year. Cash earnings per common share were a negative EUR 0.54, compared with positive cash earnings of EUR 0.14 and EUR 0.24 in the first quarter 2004 and second quarter of 2003, respectively. The negative cash earnings in the second quarter of 2004 mainly reflect the cash payments to settle with the NYSE/SEC in an amount equivalent to EUR 0.77 per common share. Balance Sheet Our Balance Sheet continued to strengthen during the second quarter of 2004. Proceeds from the sale of VDM Bonds (and the working capital that was thereby freed up), 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 as well as other cash inflows were used to repay short-term debt. On June 30, 2004 our Balance Sheet total was EUR 565.5 million; a EUR 319 million or 36% decrease from December 31, 2003. The decrease is largely due to the sale of VDM Bonds, payment of the NYSE/SEC settlement, reduced inventory and clearing positions on Balance Sheet date and repayments on 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 appreciation of the US dollar. Group equity divided by the Balance Sheet total rose from 27% on December 31, 2003 to 47% on June 30, 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 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. , rose from EUR 386.2 million to EUR 410.1 million during the first six months of 2004. The half-year's income contribution, translation effects and proceeds from the sale of 780,000 treasury shares in April 2004 accounted for most of this. As a percent of our Balance Sheet total, guarantee capital rose from 44% at the end of 2003 to 73% at the end of the second quarter 2004. Cash and cash equivalents amounted to EUR 229.9 million on June 30, 2004. Of this approximately EUR 33 million is unrestricted compared to the year-end 2003 unrestricted amount of EUR 11 million and the March 31, 2004 amount of EUR 20 million. As of June 30, 2004, the amount drawn on our credit lines was EUR 5.8 million (all drawn on Facility B), and the portion of our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. indebtedness that is due for repayment during 2004 and the first half of 2005 was EUR 15.8 million. On July 13, 2004 we cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. the unused portion of Facility B. Facility A was fully repaid in the second quarter of 2004 and hereby cancelled. On June 30, 2004 we carry ten NYSE seats on our Balance Sheet at an average cost price of $1.6 million each. The most recent seat transaction, on July 8, 2004, was at $1.4 million. We will continue to monitor the value of seat transactions in relation to our carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. . Cash flow and investment Cash flow from operating activities was EUR 7.4 million in the first six months of 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 39.1 million payment of the NYSE/SEC settlement. Working capital needs decreased by EUR 23.9 million, mainly as a result of the receipt of current tax receivables and lower working capital needs at the level of some of our business units. Cash flows from investing activities were a positive EUR 6.7 million, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc repayments on loans outstanding to third parties and the sale of VDM Bonds (proceeds of the sale less cash balances held by VDM Bonds). Negative cash flows of EUR 33.7 million from financing activities were primarily due to repayment of short-term loans, partly offset by the proceeds from the sale of treasury shares. Including the effect of currency exchange differences, net of amounts advanced by clearing organizations, cash decreased by EUR 9.6 million compared to December 31, 2003. U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). accounts Earnings 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 in the second quarter of 2004 amounted to EUR 5.6 million. 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 15:00 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. Our next scheduled press release, announcing our results for the third quarter of 2004, will be published on Thursday Thursday: see week. , October October: see month. 21, 2004. Van der Moolen trades on the leading US and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. 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 data) Q2 Q2 Q1
2004 2003 (a) % 2004 (a) %
---------------------- ----------- ----------- ----- ----------- -----
Revenues 30.9 47.5 -35% 35.9 -14%
Transaction costs 5.4 7.3 -26% 6.3 -14%
Net revenues 25.5 40.2 -37% 29.6 -14%
Fixed personnel
expenses 8.0 11.6 8.2
Bonus expenses 1.5 2.7 1.7
Seat leases 2.3 3.8 2.2
Information and
communication
expenses 0.8 1.4 0.8
Depreciation 0.3 0.7 0.5
Amortization of
intangible fixed
assets 0.9 1.5 0.8
Exceptional expense
relating to provision
NYSE/SEC - - 2.2
General and
administrative
expenses 3.3 3.8 4.9
Total operating
expenses 17.1 25.5 -33% 21.3 -20%
Operating income 8.4 14.7 -43% 8.3 1%
Net interest income
(expense) (1.9) (2.8) (2.8)
Gain on disposal of
financial fixed
assets - - -
Income from ordinary
activities before tax 6.5 11.9 -45% 5.5 18%
Taxation (3.4) 1.9 0.7
Group income after
taxation 9.9 10.0 -1% 4.8 106%
Minority interest 2.2 3.1 2.1
Net income (loss) 7.7 6.9 12% 2.7 185%
---------------------- ----------- ----------- ----- ----------- -----
Net income (loss) from
ordinary activities
before impairment
charges and before
exceptional expense
relating to provision
NYSE/SEC 7.7 6.9 12% 4.3 79%
Exceptional expense
relating to provision
NYSE/SEC after tax - - (1.6)
Net income (loss) from
ordinary activities 7.7 6.9 12% 2.7 185%
Dividends on financing
preferred shares 0.8 0.8 0.7
Net income (loss) from
ordinary activities
attributable to
holders of common
shares 6.9 6.1 13% 2.0 245%
Cash earnings
attributable to
holders of common
shares (20.6) 9.2 -324% 5.4 -481%
Average number of
common shares
outstanding 38,137,100 37,748,417 1% 37,537,100 2%
Diluted average number
of common shares
outstanding 38,137,100 37,748,417 1% 37,537,100 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 0.18 0.16 12% 0.10 89%
Diluted net income
(loss) from ordinary
activities before
impairment charges and
before exceptional
expense relating to
provision NYSE/SEC per
common share 0.18 0.16 12% 0.10 89%
Net income (loss) from
ordinary activities
per common share 0.18 0.16 12% 0.05 240%
Diluted net income
(loss) from ordinary
activities per common
share 0.18 0.16 12% 0.05 240%
Cash earnings per
share (Cash EPS) (0.54) 0.24 -322% 0.14 -475%
Diluted Cash EPS (0.54) 0.24 -322% 0.14 -475%
---------------------- ----------- ----------- ----- ----------- -----
(a) adjusted for
purposes of
comparison
Van der Moolen Holding N.V.
Consolidated Profit and Loss Account
(Dutch GAAP, Unaudited)
---------------------------------------- ----------- ----------- -----
(amounts in millions of Euros, except 6 months 6 months
per share data) %
2004 2003 1)
---------------------------------------- ----------- ----------- -----
Revenues 66.8 95.9 -30%
Transaction costs 11.7 14.9 -21%
Net revenues 55.1 81.0 -32%
Fixed personnel expenses 16.2 23.3
Bonus expenses 3.2 6.5
Seat leases 4.5 8.1
Information and communication expenses 1.6 2.7
Depreciation 0.8 1.4
Amortization of intangible fixed assets 1.7 3.0
Exceptional expense relating to
provision NYSE/SEC 2.2 -
General and administrative expenses 8.2 8.4
Total operating expenses 38.4 53.4 -28%
Operating income 16.7 27.6 -39%
Net interest income (expense) (4.7) (5.6)
Gain on disposal of financial fixed
assets - 1.9
Income from ordinary activities before
tax 12.0 23.9 -50%
Taxation (2.7) 2.8
Group income after taxation 14.7 21.1 -30%
Minority interest 4.3 6.3
Net income (loss) 10.4 14.8 -30%
---------------------------------------- ----------- ----------- -----
Net income (loss) from ordinary
activities before impairment charges
and before exceptional expense relating
to provision NYSE/SEC 12.0 14.8 -19%
Exceptional expense relating to
provision NYSE/SEC after tax (1.6) -
Net income (loss) from ordinary
activities 10.4 14.8 -30%
Dividends on financing preferred shares 1.5 1.5
Net income (loss) from ordinary
activities attributable to holders of
common shares 8.9 13.3 -33%
Cash earnings attributable to holders of
common shares (15.2) 19.8 -177%
Average number of common shares
outstanding 37,837,100 37,985,558 0%
Diluted average number of common shares
outstanding 37,837,100 37,985,558 0%
Per share data:
Net income (loss) from ordinary
activities before impairment charges
and before exceptional expense relating
to provision NYSE/SEC per common share 0.28 0.35 -21%
Diluted net income (loss) from ordinary
activities before impairment charges
and before exceptional expense relating
to provision NYSE/SEC per common share 0.28 0.35 -21%
Net income (loss) from ordinary
activities per common share 0.24 0.35 -33%
Diluted net income (loss) from ordinary
activities per common share 0.24 0.35 -33%
Cash earnings per share (Cash EPS) (0.40) 0.52 -177%
Diluted Cash EPS (0.40) 0.52 -177%
---------------------------------------- ----------- ----------- -----
(a) adjusted for purposes of comparison
---------------------------------- ----- -------- ----- -------- -----
Van der Moolen Holding N.V. Q2 Q2 % Q1 %
Revenue breakdown in millions of
Euros 2004 2003 (a) 2004 (a)
---------------------------------- ----- -------- ----- -------- -----
VDM Specialists 25.7 34.7 28.8
Net gain on principal transactions 18.0 25.3 -29% 20.8 -13%
Commissions 6.3 7.1 -11% 6.5 -3%
Other 1.4 2.3 -39% 1.5 -7%
US Option Business (0.2) 2.0 110% (0.2) 0%
European Trading 5.4 7.2 -25% 6.9 -22%
Unallocated and Holding - 3.6 -100% 0.4 -100%
---------------------------------- ----- -------- ----- -------- -----
Total revenues 30.9 47.5 -35% 35.9 -14%
---------------------------------- ----- -------- ----- -------- -----
------------------------------------------------ ------- -------- ----
Van der Moolen Holding N.V. 6
months 6 months %
Revenue breakdown in millions of Euros 2004 2003 (a)
------------------------------------------------ ------- -------- ----
VDM Specialists 54.5 72.7
Net gain on principal transactions 38.8 54.8 -29%
Commissions 12.8 14.1 -9%
Other 2.9 3.8 -24%
US Option Business (0.4) 2.2 118%
European Trading 12.3 15.7 -22%
Unallocated and Holding 0.4 5.3 -92%
------------------------------------------------ ------- -------- ----
Total revenues 66.8 95.9 -30%
------------------------------------------------ ------- -------- ----
Van der Moolen Holding N.V. Q2 Q2 % Q1 %
Operating income before amortization
of intangible fixed assets, before
impairment and before exceptional
expense relating to provision
NYSE/SEC , breakdown in millions of
Euros 2004 2003 (a) 2004 (a)
------------------------------------------ -------- ---- -------- ----
VDM Specialists 11.9 16.2 -27% 13.5 -12%
US Option Business (0.8) (0.8) 0% (1.2) 33%
European Trading 0.3 0.8 -63% 1.3 -77%
Unallocated and Holding (2.1) - (2.3)
------------------------------------------ -------- ---- -------- ----
Total operating income before
amortization of intangible fixed
assets, before impairment and before
exceptional expense relating to
provision NYSE/SEC 9.3 16.2 -43% 11.3 -18%
------------------------------------------ -------- ---- -------- ----
Van der Moolen Holding N.V. 6 6 months
months %
Operating income before amortization of
intangible fixed assets, before impairment and
before exceptional expense relating to
provision NYSE/SEC , breakdown in millions of
Euros 2004 2003 (a)
----------------------------------------------- ------- -------- -----
VDM Specialists 25.4 34.7 -27%
US Option Business (2.0) (3.3) 39%
European Trading 1.6 1.2 33%
Unallocated and Holding (4.4) (2.0) -120%
----------------------------------------------- ------- -------- -----
Total operating income before amortization of
intangible fixed assets, before impairment and
before exceptional expense relating to
provision NYSE/SEC 20.6 30.6 -33%
----------------------------------------------- ------- -------- -----
VDM Specialists (VDMS) Q2 Q2 Q1
Key figures (Dutch GAAP) 2004 2003 (a) 2004 (a)
--------------------------------------------- ------ -------- --------
VDM Specialists revenues ($ million) 30.9 39.6 36.0
Net gain on principal transactions 21.6 28.9 26.0
Commissions 7.6 8.0 8.1
Other 1.7 2.7 1.9
Total value of trading on NYSE ($ billion) 2,881 2,497 2,971
Value of trading in VDMS assignments ($
billion) 316 289 346
VDMS market share in dollar value NYSE 11.0% 11.6% 11.6%
VDMS value of principal shares traded ($
billion) 73 80 88
Participation rate 23.2% 27.7% 25.3%
VDMS net gain on principal transactions ($
million) 21.6 28.9 26.0
Realization rate (basis points) 3.0 3.6 3.0
--------------------------------------------- ------ -------- --------
Source: NYSE, Van der Moolen
(a) adjusted for purposes of comparison
VDM Specialists (VDMS) 6 months 6 months
Key figures (Dutch GAAP) 2004 2003 (a)
---------------------------------------------------- ------- --------
VDM Specialists revenues ($ million) 66.9 80.3
Net gain on principal transactions 47.6 60.5
Commissions 15.7 15.5
Other 3.6 4.3
Total value of trading on NYSE ($ billion) 5,852 4,670
Value of trading in VDMS assignments ($ billion) 662 527
VDMS market share in dollar value NYSE 11.3% 11.3%
VDMS value of principal shares traded ($ billion) 161 156
Participation rate 24.3% 29.5%
VDMS net gain on principal transactions ($ million) 47.6 60.5
Realization rate (basis points) 3.0 3.9
---------------------------------------------------- ------- --------
Source: NYSE, Van der Moolen
(a) adjusted for purposes of comparison
Van der Moolen Holding N.V.
Consolidated Balance Sheet
(Dutch GAAP, unaudited)
-------------------------------------- ------ ------ ------ ---------
(amounts in millions of Euros) June 30, 2004 December 31, 2003
-------------------------------------- ------------- -----------------
Assets
Fixed assets
Intangible fixed assets 84.9 83.5
Tangible fixed assets 4.9 6.3
Financial fixed assets 94.3 104.1
------ ------
184.1 193.9
Current assets
Long positions securities 78.0 302.0
Clearing organizations and
professional parties 51.9 93.5
Accrued income and other receivables 21.6 33.4
Cash and cash-equivalents 229.9 261.6
------ ------
381.4 690.5
-------------------------------------- ------ ------ ------ ---------
Total assets 565.5 884.4
-------------------------------------- ------ ------ ------ ---------
Shareholders' equity and liabilities
Shareholders' equity 226.5 201.5
Minority interest 37.3 33.0
------ ------
Group equity 263.8 234.5
Provisions
Deferred tax liabilities 4.7 4.7
Other provisions 1.1 44.6
------ ------
5.8 49.3
Long-term liabilities
Subordinated debt 146.3 151.7
Long-term debt 1.7 2.0
------ ------
148.0 153.7
Short-term liabilities
Short positions securities 79.1 259.7
Clearing organizations and
professional parties 9.0 77.9
Short-term loans 21.6 48.3
Advanced by clearing organizations 3.1 25.2
Accrued expenses and other liabilities 35.1 35.8
------ ------
147.9 446.9
-------------------------------------- ------ ------ ------ ---------
Total shareholders' equity and
liabilities 565.5 884.4
-------------------------------------- ------ ------ ------ ---------
-------------------------------------- ------ ------ ------ ---------
Guarantee capital 410.1 386.2
-------------------------------------- ------ ------ ------ ---------
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) 6 months 6 months
2004 2003 (a)
--------------------------------------- -------------- ---------------
Cash flow from operating activities
Net income 10.4 14.8
Net gain on disposal of financial fixed
assets - (1.9)
Minority interest 4.3 6.3
Depreciation and amortization of fixed
assets 2.5 4.4
Amortization on deferred gain on swaps (1.6) (0.3)
Change deferred taxation and non-cash
tax effects 4.8 2.9
Change in provisions 2.2 (0.1)
Settlement NYSE/SEC investigation (39.1) -
Change in working capital 23.9 (30.9)
------ ------
7.4 (4.8)
Cash flow from investing activities
Investments in tangible fixed assets (0.7) (0.9)
Disposals of tangible fixed assets 1.0 0.1
Divestments group companies, less cash
balances held 2.7 -
Divestments and repayments of financial
fixed assets 3.7 3.0
------ ------
6.7 2.2
Cash flow from financing activities
Net change in subordinated debt and
long-term liabilities 0.6 (4.9)
Net change of short-term loans (35.6) 31.7
Sale / purchase of common shares 5.6 (6.7)
Proceeds from termination of interest
rate swaps (0.2) 13.6
Dividend payment (2.9) (30.2)
Net change in minority interest (1.2) (6.9)
------ ------
(33.7) (3.4)
Currency exchange differences on cash and cash-
equivalents, net of amounts advanced by
clearing organizations 10.0 (31.4)
Change in cash and cash-equivalents, net of
amounts advanced by clearing organizations (9.6) (37.4)
Cash and cash-equivalents, net of amounts
advanced by clearing organizations at January
1, 236.4 291.5
------ ------
Cash and cash-equivalents, net of amounts
advanced by clearing organizations at June 30, 226.8 254.1
----------------------------------------------- ------ -------- ------
Movement in shareholders'equity
--------------------------------------- ------- ------ -------- ------
(Amounts in millions of euros) 6 6 months
months
2004 2003
--------------------------------------- ------- ------ -------- ------
Shareholders' equity at January 1 201.5 312.2
Cash dividend - (27.3)
Currency exchange differences 10.5 (30.3)
Net income for the period January 1 -
June 30 10.4 14.8
Preferred dividend for the period
January 1 - June 30 (1.5) (1.5)
Sale / purchase of common shares 5.6 (6.7)
------ ------
25.0 (51.0)
------ ------
Shareholders' equity at June 30 226.5 261.2
--------------------------------------- ------- ------ -------- ------
(a) adjusted for purposes of comparison:
The comparative figures in the cash flow statement are adjusted to
reflect the cash flow movements on the termination of interest rate
swap agreements in connection with our subordinated debt in the USA
and herewith-related adjustment of non-cash items included
in net income. Furthermore, dividends on financing preferred shares
have been adjusted to reflect the actual period of payment.
Van der Moolen Holding N.V.
Net income and shareholders' equity
(US GAAP, unaudited)
------------------------ ----------- ----------- ---- ----------- ----
(amounts in millions Q2 Q2 Q1
of Euros) 2004 2003 % 2004 (a) %
Net income (loss) in
accordance with Dutch
GAAP 7.7 6.9 12% 2.7 185%
Adjustments to reported
net income
Amortization of
intangible fixed assets (0.7) (0.4) (0.7)
Stock options (0.6) (1.3) (0.6)
Other - 1.7 1.6
Taxation (0.8) (1.8) (0.9)
----------- ----------- -----------
Net income (loss) in
accordance with US GAAP 5.6 5.1 10% 2.1 167%
Dividend on financing
preferred shares (0.8) (0.8) (0.7)
Net income (loss) in
accordance with US GAAP
attributable to common
shares 4.8 4.3 12% 1.4 243%
Average number of common
shares outstanding 38,137,100 37,748,417 37,537,100
Diluted average number
of common shares
outstanding 38,137,100 37,748,417 37,537,100
------------------------
(amounts in euros)
------------------------
Net income (loss) from
ordinary activities per
common share in
accordance with Dutch
GAAP 0.18 0.16 12% 0.05 240%
Basic earnings (loss)
per common share in
accordance with US GAAP 0.13 0.11 10% 0.04 237%
Diluted net income
(loss) from ordinary
activities per common
share in accordance
with Dutch GAAP 0.18 0.16 12% 0.05 240%
Diluted earnings (loss)
per common share in
accordance with US GAAP 0.13 0.11 10% 0.04 237%
------------------------ ----------- ----------- ---- ----------- ----
------------------------ ----------- ----------- ---- ----------- ----
(amounts in millions of Q2 Q2 Q1
Euros) % %
2004 2003 2004 1)
------------------------ ----------- ----------- ---- ----------- ----
Depreciation and
amortization fixed
assets in accordance
with US GAAP
Depreciation 0.3 0.7 0.5
Amortization of
intangible fixed assets 1.6 1.7 1.4
----------- ----------- -----------
Total depreciation and
amortization fixed
assets in accordance
with US GAAP 1.9 2.4 -21% 1.9 0%
------------------------ ----------- ----------- ---- ----------- ----
------------------------ ----------- ----------- ----
(amounts in millions of June 30, Dec. 31,
Euros )
2004 2003 1)
------------------------ ----------- ----------- ----
Shareholders' equity in
accordance with Dutch
GAAP 226.5 201.5
Adjustments to reported
shareholders' equity
Goodwill and specialist
assignments 158.0 152.7
Pensions 8.0 8.0
Taxation (19.0) (15.3)
Provision NYSE/SEC - (1.6)
Other - 2.8
------------------------ ----------- ----------- ----
Shareholders' equity in
accordance with US GAAP 373.5 348.1
------------------------ ----------- ----------- ----
(a) adjusted for purposes of comparison
The reconciliation of net income for the 1st quarter 2004 as well as
the shareholders' equity reconciliation as at December 31, 2003 have
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).
Van der Moolen Holding N.V.
Net income and shareholders' equity
(US GAAP, unaudited)
---------------------------------------- ----------- ----------- ----
(amounts in millions of Euros) 6 months 6 months %
2004 2003
---------------------------------------- ----------- ----------- ----
Net income (loss) in accordance with
Dutch GAAP 10.4 14.8 -30%
Adjustments to reported net income
Amortization of intangible fixed assets (1.4) (0.8)
Stock options (1.2) (2.6)
Other 1.6 0.7
Taxation (1.7) (3.0)
----------- -----------
Net income (loss) in accordance with US
GAAP 7.7 9.1 -15%
Dividend on financing preferred shares (1.5) (1.5)
Net income (loss) in accordance with US
GAAP attributable to common shares 6.2 7.6 -18%
Average number of common shares
outstanding 37,837,100 37,985,558
Diluted average number of common shares
outstanding 37,837,100 37,985,558
----------------------------------------
(amounts in euros)
----------------------------------------
Net income (loss) from ordinary
activities per common share in
accordance with Dutch GAAP 0.24 0.35 -33%
Basic earnings (loss) per common share
in accordance with US GAAP 0.16 0.20 -18%
Diluted net income (loss) from ordinary
activities per common share in
accordance with Dutch GAAP 0.24 0.35 -33%
Diluted earnings (loss) per common share
in accordance with US GAAP 0.16 0.20 -18%
---------------------------------------- ----------- ----------- ----
---------------------------------------- ----------- ----------- ----
(amounts in millions of Euros) 6 months 6 months %
2004 2003
---------------------------------------- ----------- ----------- ----
Depreciation and amortization fixed
assets in accordance with US GAAP
Depreciation 0.8 1.4
Amortization of intangible fixed assets 3.0 3.4
----------- -----------
Total depreciation and amortization
fixed assets in accordance with US GAAP 3.8 4.8 -21%
---------------------------------------- ----------- ----------- ----
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