Van der Moolen Reports a Net Profit of EUR 1.7 Million Attributable to Its Common Shareholders for the First Half Year Of 2006.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. -- 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. Holding NV (NYSE NYSE See: New York Stock Exchange :VDM See Virtual DOS Machine and CGM. 1. VDM - Vienna Definition Method 2. VDM - Virtual Device Metafile. ) (Amsterdam:VDMN): Second quarter Net loss (after 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. and special items) amounts to 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. 9.4 million. --Impairment on brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. business of EUR 10.0 million; --Special items negatively affected second quarter net result by EUR 1.5 million. Excluding impairment charges and special items second quarter 2006 net result amounts to a profit of EUR 2.1 million. Loss per common share EUR 0.21 in the second quarter of 2006. Excluding impairment and special items profit per common shares amounts to EUR 0.04.
Key Figures
---------------------------- ----------- ----------- ----------------
Euros millions 2nd 2nd quarter 1st quarter 6 months
quarter 2005 2006 a)
2006
2006 2005
---------------------------- ----------- ----------- ----------------
Revenues a) 40.5 27.2 49% 39.0 4% 79.5 54.6 46%
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Operating profit
(loss) (5.3) 8.6 -162% 29.3 -118% 24.0 13.0 85%
---------------------------- ----------- ----------- ----------------
Profit (loss) from
continuing
operations (7.7) 3.7 -308% 14.0 -155% 6.3 5.8 9%
---------------------------- ----------- ----------- ----------------
Profit (loss)
attributable to
common equity
holders of the
Company (9.4) 1.8 -622% 11.1 -185% 1.7 3.3 -48%
---------------------------- ----------- ----------- ----------------
Guarantee capital 414.7 413.5 0% 451.1 -8% 414.7 413.5 0%
---------------------------- ----------- ----------- ----------------
Per common share data
(Euros x 1)
---------------------------- ----------- ----------- ----------------
Profit (loss) from
continuing
operations (0.21) 0.05 -549% 0.25 -184% 0.04 0.09 -56%
---------------------------- ----------- ----------- ----------------
Profit (loss) (0.21) 0.05 -545% 0.25 -183% 0.04 0.09 -56%
---------------------------- ----------- ----------- ----------------
---------------------------- ----------- ----------- ----------------
Average US
dollar/Euro rate 0.80 0.79 0% 0.83 -4% 0.81 0.78 5%
---------------------------- ----------- ----------- ----------------
a) Both the Q1 2006 revenues and the Q1 2006 exchange, clearing
and brokerage fees have been grossed up with EUR 2.1 million due to a
reclassification. These fees were previously netted in revenues. This
reclassification had no impact on the operating profit and the profit
attributable to common equity holders of the Company.
Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a den Drijver, 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 Holding NV ("VDM") commented : "The results in the first half of 2006 were strongly influenced by 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. 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. settlements and an impairment on our brokerage business but we are pleased to see that the operating result (after impairment and special items) in the 2nd quarter improved to EUR 2.1 million from EUR 0.8 million Q1. We had to adjust our expectations of our online brokerage business downwards down·ward adv. or down·wards 1. In, to, or toward a lower place, level, or position: floating downward. 2. . Last year we had put forward a growth strategy where we now encounter processing capacity constrains due to in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. quality standards, which will slow down the roll out of Online Trader trader in U. S. income tax law, a person who deals in property as a business, making several purchases and sales within a year as distinguished from a few sales of assets held for investment. to new customers. However, we are confident about the business going forward and we see this as one of our future growth pillars. Our strategy in the United States is diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of revenues. The signing of strategic partnerships with the Chicago Board Options Exchange Chicago Board Options Exchange (CBOE) A securities exchange created in the early 1970s for the public trading of standardized option contracts. Primary place for the trading of stock options, foreign currency options, and index options (S&P 100, 500, and OTC 250 index) and International Securities Exchange, combined the largest options exchange in the world- is the first step to secure that objective. Both options exchanges will start independently a new equity exchange. Although these markets still need to be developed, we, together with other founding partners, are positive on the future business opportunities. We believe that the CBOE CBOE See: Chicago Board Options Exchange CBOE See Chicago Board Options Exchange (CBOE). Stock Exchange plan to utilize their experience in Hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). trading will offer an attractive venue venue In law, the place or county in which the events giving rise to a legal action take place and from which a jury may be drawn to try the case. Venue statutes usually specify that a trial must take place in the district that has jurisdiction over the matter. for execution that will link to Van der Moolen's historic strength as liquidity providers and technological innovators innovators people who will try new things. early innovators important figures in the farming or client community because they are the leaders in the introduction of new techniques and management systems. . Our main objective is to utilize these strategic partnerships through actively participating as liquidity providers and route our natural equity and option liquidity, when possible, to the exchanges we have an alignment Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , International Securities Exchange, Chicago Board Options Exchange and Chicago Stock Exchange Chicago Stock Exchange (CHX) A major exchange trading only stocks, with 90% of trades taking place on an automated execution system, called MAX. . 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). contributed 45% to 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: revenues (HY 2005 18%). The acquisition of Hills Independent 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. in the third quarter, a very experienced options trading team in a market VDM did not cover, fits perfectly within our strategy and will further balance the U.S. and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. revenues. " Van der Moolen announces that it recognized a net loss attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to its common shareholders of EUR 9.4 million in the second quarter 2006 compared with a profit of EUR 11.1 million in the first quarter of 2006 and EUR 1.8 million in the second quarter of 2005. Second quarter 2006 net income has been strongly influenced by the special items that are summarized below. --The purchase price for Curvalue is expected to be settled by a total of 6.7 million shares of Van der Moolen Holding NV and EUR 5.9 million cash. Under IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System the estimated purchase price amounts to EUR 51.2 million (being 6.7 million shares at a price of EUR 6.37 per share and EUR 5.9 million cash plus acquisition costs) resulting in a goodwill of EUR 32 million. Under IFRS we have impaired See assistive technology. EUR 10 million of this goodwill due to revised estimated Revised estimate The third estimate of GDP released about three months after the measurement period. discounted cash flows as a result of anticipated additional investments and marketing expenditure. --Early May, we have joined the so-called so-called adj. 1. Commonly called: "new buildings ... in so-called modern style" Graham Greene. 2. secondary offering of NYSE Group shares. The consideration received amounted to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. EUR 8.6 million ($ 61.50 per share, net of related expenditure) and implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. a net loss that is recognized in the second quarter of approximately EUR 0.4 million. --Recognition of expenses in relation to the settlement reached in respect of the stock loan investigation of the New York Stock Exchange and the settlement of the securities class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax in the United States brought under U.S. securities law by plaintiffs who were holders of VDM Holding's 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. traded on the New York Stock Exchange (see our press releases of July July: see month. 10, and July 24, 2006, respectively for further details). These settlements negatively affected our second quarter 2006 net result by EUR 2.8 million. --The recognition of foreign currency gains, including relating tax benefits of EUR 1.7 million. Excluding these items, second quarter 2006 net result attributable to common shareholders would amount to a profit of EUR 2.1 million. Before amortization and impairment 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. , Curvalue contributed EUR 1.0 million to our second quarter 2006 net income (Q1 2006: EUR 0.2 million); amortization and the impairment of intangible assets related to this acquisition amounted to a net charge of EUR 10.4 million (Q1 2006: EUR 0.5 million). Results for the second quarter 2006 Revenues At EUR 40.5 million, our reported revenues in the second quarter were 4% higher than in the first quarter of 2006 and 49% above those earned in the second quarter of 2005. The factors that determined these comparisons were:
Q2 2006 vs. Q1 2006Q2 2006 vs. Q2 2005
Acquisition Curvalue - % +38 %
U.S. dollar impact -3 % - %
Organic +7 % +11 %
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Total +4 % +49 %
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The acquisition of Curvalue contributed EUR 10.2 million to our second quarter 2006 revenues. Organic growth, due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. trading conditions in Q2, is mainly realized by the success of our trading operations in 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. , Amsterdam and London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. . This is partly offset by a decrease in revenues generated by VDM Specialists of EUR 1.6 million, or 7%, compared to both the first quarter 2006 and the second quarter of 2005. In dollar terms this decrease in revenues of VDM Specialists was 2% and 7%, respectively. First half year 2006 revenue includes EUR 3.7 million which is originated from a 40% interest in our investment in an associate. Other gains and losses - net The EUR 0.9 million loss recognized in the second quarter 2006 fully relates to the secondary offering of our NYSE Group shares that were received in the merger consideration in March 2006. The loss represents the difference between the offering proceeds (net of related expenditure) and the fair value of the shares received on the date of the merger. Net result was affected by EUR 0.4 million as a result of allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as to minority interest and tax effects. We participated in the so-called secondary offering of NYSE Group shares and sold 181,940 shares (159,897 shares plus a greenshoe greenshoe An underwriting agreement provision that permits syndicate members to purchase additional shares at the original offering price. Shares in the greenshoe may consist of additional shares from the issuing company or may come from existing placement of 22,043), out of the 481,062 received as merger consideration. As a result of this secondary offering, the number of shares currently owned, and their restriction restriction - A bug or design error that limits a program's capabilities, and which is sufficiently egregious that nobody can quite work up enough nerve to describe it as a feature. period can be specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. as follows: Restricted until March 2007 3,588 Restricted until March 2008 135,179 Restricted until March 2009 160,355 Total number of shares NYSE Group 299,122 In the first half year of 2006 an amount of EUR 21.1 million has been recognized in relation to the NYSE shares (conversion and secondary offering), hereby increasing net income attributable to common shareholders by approximately EUR 10.1 million. 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. Excluding the impairment charge of EUR 10.0 million, total operating expenses in the second quarter 2006 were EUR 3.2 million higher than those recognized in the first quarter 2006 and EUR 13.9 million higher than the second quarter of 2005. The consolidation of Curvalue accounted for EUR 9.4 million of total expenses recognized in the current quarter (excluding impairment charges), compared to EUR 8.9 million in the first quarter of 2006. First half year 2006 operating expenses include EUR 3.5 million which is originated from a 40% interest in our investment in an associate. Other factors that strongly influenced the comparison with the first quarter 2006 and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. second quarter 2005 on an organic basis (excluding Curvalue) are set out below. --Exchange, clearing and brokerage fees increased by EUR 0.7 million compared to the first quarter 2006 and EUR 1.1 million compared to the second quarter of 2005. This increase is due to higher transaction volume propelled by increased trading opportunity in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , London and Amsterdam as well as listing fees expensed by VDM Specialists in respect of new assignments. --Variable employee compensation and benefit expense decreased by EUR 1.1 million compared to the first quarter 2006 and increased by EUR 0.5 million compared to the second quarter of 2005. The decrease compared to the first quarter is mainly due to the relative contribution of the different bonus arrangements in place throughout the Group, whereby the special items expensed during the second quarter 2006 had a decreasing impact on 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. . In the first quarter 2006, the gain realized on the NYSE merger consideration had an increased impact on variable employee compensation. --G&A expenses includes an amount of EUR 4.1 million in relation to the settlement reached in respect of the stock loan investigation of the New York Stock Exchange and the settlement of the securities class action lawsuit in the United States brought under U.S. securities law by plaintiffs who were holders of VDM Holding's American Depositary Receipts traded on the New York Stock Exchange (see our press releases of July 10, and July 24, 2006, respectively for further details). These settlements negatively affected our second quarter 2006 net result by EUR 2.8 million (after minority interest and tax, where applicable). Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. Excluding the other gains and losses (net), the amortization expense and the impairment of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , operating profit amounted to EUR 6.6 million in the second quarter 2006 compared with EUR 8.3 million in the first quarter 2006 and EUR 6.6 million in the second quarter 2005. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: calculated on this basis was 16.3% in the second quarter 2006, compared to 21.3% and 24.3% in the first quarter 2006 and second quarter 2005, respectively. Finance cost On April 5, 2006, the AGM AGM annual general meeting AGM n abbr (= annual general meeting) → AG f AGM n abbr (= annual general meeting) → JHV f approved the proposed changes to our Articles of Association. Among others, these changes included an amendment of the Articles in relation to our preferred financing shares. These changes have allowed the Company to present the preferred financing capital as an equity instrument under IFRS, whereas it has been treated a monetary liability since the adoption of IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 32 on January January: see month. 1, 2005. In conformity with this treatment the preferred financing dividend is no longer classified as a component of finance cost as from the date of the amendment. Foreign currency result Foreign currency result amounted to a profit of EUR 1.1 million, compared to a loss of EUR 0.3 million in the first quarter 2006 and a gain of EUR 0.5 million recognized in the second quarter 2005. The gain resulted from the strong depreciation of the U.S. dollar against the euro during April 2006, in combination with a temporary long position in euro denominated monetary assets and liabilities Monetary assets and liabilities Assets and liabilities with contractual payoffs. as a result of the change of the presentation of our preferred financing shares. Income tax Income tax in the second quarter 2006 was EUR 1.5 million, representing a consolidated effective tax rate of negative 22%. In the preceding quarter the tax expense was EUR 11.5 million, or 51% (the second quarter 2005: EUR 2.2 million, or 55%). The consolidated effective tax rate in the current quarter mainly reflects the non-tax deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). nature of the EUR 10.0 million impairment charge recognized on our brokerage business and the non-tax deductibility of the settlement amount reached with the NYSE in connection with the stock loan investigation. These factors were partly off-set by non-taxable non-taxable adj → nicht steuerpflichtig non-taxable adj non-taxable income → reddito non imponibile foreign currency gains as a result of the euro still being our functional currency for taxation purposes. The consolidated effective tax rates in the comparative quarters mainly reflected the dominance dominance In genetics, the greater influence by one of a pair of genes (alleles) that affect the same inherited trait. If an individual pea plant that has one allele for tallness and one for shortness is the same height as an individual that has two alleles for tallness, the of our U.S. 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. to total pretax income in combination with the non-tax deductible nature of dividends on financing preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . The tax expense recognized in the first half year of 2006 of EUR 13.0 million is mainly non-cash in nature, given the carry forward losses existing in the applicable United States tax jurisdictions. Minority interest The decrease in minority interest compared to the first quarter of 2006 and the second quarter 2005 is due to the loss recognized on the secondary offering of NYSE Group shares and the recognition of the settlement reached in respect of the stock loan investigation in the current quarter. The first quarter 2006 was among others influenced by the allocation of the gain on the conversion of the NYSE memberships. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. The weighted average number of outstanding shares to calculate basic earnings per share is 45,453,298 for the second quarter 2006 and 45,197,124 for the first half year of 2006, the latter being the number outstanding 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. 2005 (excluding treasury shares) with - in addition - the shares issued on January 2, 2006 in relation to the acquisition of Curvalue and the shares issuable in respect of the earn-out Earn-out Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement. 2005, which are considered to be "earned" at acquisition date, and the number of shares issued as stock dividend in April 2006, adjusted for the average number of shares held by Curvalue in Van der Moolen Holding NV during the periods presented. During the second quarter 2006, the position in shares held by Curvalue and related option positions were fully unwound un·wound v. Past tense and past participle of unwind. unwound unwind . Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS For purposes of the determination of diluted EPS, the weighted average number of common shares outstanding is adjusted for the dilutive impact of the position held by Curvalue in options of Van der Moolen and for the estimated number of shares that are issuable in respect of the Curvalue earn-out arrangement for the year 2006. The dilutive impact of the earn-out arrangement is determined on a quarterly basis (the dilutive impact of contingently con·tin·gent adj. 1. Liable to occur but not with certainty; possible: "All salaries are reckoned on contingent as well as on actual services" Ralph Waldo Emerson. issuable shares are included as of the beginning of the period). Earnings per share Loss per common share was EUR 0.21 in the second quarter 2006, compared to a profit per common share of EUR 0.25 and EUR 0.05 in the first quarter 2006 and second quarter of 2005, respectively. The impairment charge and special items recognized in the second quarter 2006 negatively affected earnings per share by EUR 0.25. Balance sheet Balance sheet total On June June: see month. 30, 2006 our Balance Sheet total was approximately EUR 1.9 billion, almost tripling the EUR 731 million recognized at December December: see month. 31, 2005. This increase is mainly due to the increase of current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. and current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. , related to positions and clearing balances arising from the trading activities of Curvalue. From an economic perspective, the market risk on the security positions of Curvalue is limited. Intangible assets Intangible assets, including goodwill, increased from EUR 70.1 million at December 31, 2005 to EUR 104.9 million at June 30, 2006. This increase is mainly due to the recognition of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. including goodwill in relation to the Curvalue acquisition, partly offset by the impact of the depreciation of the U.S. dollar against the euro. At June 30, 2006, EUR 18 million of other intangible assets relate to Curvalue. Based on renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. estimates for the earn-out 2006, goodwill acquired through the Curvalue business combination is preliminary determined at approximately EUR 32.1 million (based on a measurement price of issued and issuable shares of EUR 6.37 as per January 2, 2006), which was subsequently impaired by an amount of EUR 10.0 million in the second quarter 2006. Guarantee capital Guarantee capital, which consists of total 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. (including financing preferred capital and capital contributions from minority members), increased from EUR 411.4 million to EUR 414.7 million during the half year period under review. This increase is mainly due to the shares issued and issuable under the acquisition agreement with Curvalue, the income contribution during the period and the contribution to the dividend reserve of our preferred financing shares. These factors are partly offset by a depreciation of the U.S. dollar (the U.S. dollar depreciated Depreciated may refer to:
The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of subordinated borrowings and a EUR 4.9 million negative change in fair value reserve. Cash and cash equivalents The Group has approximately EUR 32 million of freely-available cash (including disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of on security positions and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. ) (December 31, 2005: EUR 39 million). Further, it has EUR 15 million available in 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. committed credit lines. Non-current cash and cash equivalents The non-current cash and cash equivalents reflect that part of cash and cash equivalents that is held by VDM Specialists for purposes of compliance with the Net Liquid Asset ("NLA NLA National Library of Australia NLA National Liberation Army (Macedonian rebel group) NLA No Longer Available NLA Network Location Awareness NLA National Lipid Association NLA National Legislative Assembly ") requirement set by the New York Stock Exchange. The total NLA requirement amounts to $ 243 million at June 30, 2006. We refer to the section 'subsequent events' for further details on the reduction of the NLA requirement of VDM Specialists, which will have a significant impact on our freely-available cash. Available-for-sale assets: NYSE Group shares As mentioned above, we currently own 299,122 NYSE Group shares that were acquired through the conversion of the six NYSE memberships in March 2006 less the number that was subsequently sold in the so-called secondary offering. The balance sheet at June 30, 2006, reflects the number of NYSE Group shares owned at the quoted bid price of those shares. Although we have seen a decrease of the average quoted price of the NYSE shares in the period after June 30, 2006, we have determined this not to be a permanent diminution in value diminution in value n. in the event of a breach of contract, the decrease in value of property due to the failure to construct something exactly as specified in the contract. . Cash flow Cash flow from operating activities Cash flow from operating activities amounted to EUR 5.1 million in the first half year of 2006. The positive contribution of income cash flow of EUR 18.1 million, and cash generated by working capital, is partly offset by the EUR 15.3 million addition to non-current cash and cash equivalents. 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 Cash flow from investing activities amounted to EUR 20.8 million, mainly following the cash consideration received in relation to the NYSE merger, the receipt of the proceeds of the secondary offering of NYSE Group shares in May 2006 and the receipt of the proceeds in January 2006 of the sale of four memberships in December 2005. The acquisition of Curvalue contributed EUR 0.4 million to cash flow from investing activities, being the balance of cash held by this entity less the EUR 5.0 million cash consideration paid on January 2, 2006. Cash flow from financing activities Cash Flow from Financing Activities A category in the cash flow statement that accounts for external activities such as issuing cash dividends, adding or changing loans, or issuing and selling more stock. Cash flow from financing activities amounted to EUR 24.6 million negative, mainly as a result of the repayment of 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 March 2006, interest payments, dividend payments made in April 2006, and distributions and capital repayments to (former) members of VDM Specialists. Subsequent events United States NLA reduction The NYSE received the long-awaited approval from the Securities and Exchange Commission for the reduction of Specialist Net Liquid Asset Requirements at the start of August 2006. The reduction will be phased in over a nine months period. For VDM Specialists the result is an immediate reduction in NLA requirement of approximately $ 25 million. Additional reductions of approximately $ 25 million each will be taken three, six and nine months from the original effective date of August 2, 2006 to a total of approximately $ 100 million NLA reduction. Strategic Partnership with the Chicago Board Options Exchange (CBOE) The CBOE is one of the largest options exchanges in the United States and among the leading options exchanges in the world. The CBOE will launch the CBOE Stock Exchange, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (CBSX CBSX Continued Balance System - Expanded ), a new securities trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the market place. The CBSX will feature a Hybrid market model that will combine elements of both screen and floor-based trading and provide a new venue for trading of NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. , American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. listed securities Listed Security Securities that have been accepted for trading purposes by a recognized and regulated exchange. Notes: Listed securities have the advantage of higher liquidity within a regulated environment. and New York Stock Exchange products. VDM will participate in this new Stock Exchange and made a strategic investment of $ 9 mln (18% equity stake) in the newly formed CBSX. We believe the CBSX plan to utilize their experience in Hybrid trading will offer an attractive venue for execution that links to VDM Specialists' historic strengths as liquidity providers and technological innovators. Strategic Partnership with the International Securities Exchange (ISE Ise (ē`sā), city (1990 pop. 104,164), Mie prefecture, S Honshu, Japan, on Ise Bay. It is one of the foremost religious centers of Shinto, the site of the shrines of Ise. ) The ISE is one of the largest equity options exchanges and is among the leading options exchanges in the world. The ISE Stock Exchange will provide an innovative platform for equity trading In finance, equity trading is the buying and selling of company stock shares. Shares in large publicly-traded companies are bought and sold through one of the major stock exchanges, such as the New York Stock Exchange, London Stock Exchange or Tokyo Stock Exchange, which serve as . VDM has invested an amount of $ 3 million (3% equity stake) in the International Securities Exchange (ISE) which expects to begin operations in the fourth quarter of 2006. ISE is a major factor in options trading and intends to use its proven technology and market structure to extend its reach into the trading of equities. We have faith in the management of the ISE and made this investment with the expectation of becoming an active participant Participant A party of a funding. It usually refers to the lowest rank or smallest level of funding. in this new venture as both an equity owner of the new exchange and a provider of liquidity and order flow. Europe Acquisition of Hills Independent Traders Ltd. (HIT) On July 25, 2006 we announced the acquisition of Hills Independent Traders Ltd. from Binck NV in a business and assets transaction at market value, including the transfer of the employees. HIT has been one of the profitable trading business parts that Binck continued after the 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. of the former AOT AOT Agency of Transportation (Vermont, USA) AOT Ahead-of-Time AOT Assisted Outpatient Treatment AOT Aerosol Optical Thickness AOT All of Them (band) AOT As Opposed To AOT Among Other Things activities in 2004/2005. HIT's activities include proprietary derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. trading on Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] .Liffe and
equity transactions of underlying values on the London Stock Exchange London Stock ExchangeLondon marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . The acquisition of HIT links up seamlessly with VDM's goal to strengthen its position on the derivatives exchanges. HIT will be fully integrated in the offices of VDM by the end of 2006 (see our press release dated 25 July 2006). For more information about Van der Moolen, please visit www.vandermoolen.com or contact Investor Relations/Corporate Communications, telephone +31 (0)20 535 6789. N.B.: Today Van der Moolen will present its half year results in a press and analyst meeting. The meetings can be followed through audio webcasts. For more information and subscription, please check the website of Van der Moolen www.vandermoolen.com. Invitations to participants have been distributed. For more information on the press meeting, please contact ir@nl.vandermoolen.com. For more information on the analyst webcast, please contact Cristina Cristina may refer to:
Noun, pl Austral & NZ slang no rules at all [origin unknown] , telephone: +44 776 969 5098. 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 : This press release contains 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. within the meaning of, and which have been made pursuant to, the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. All statements regarding our future financial condition, results of operations and business strategy, plans and objectives are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . Statements containing the words "anticipate," "believe," "intend," "estimate," "expect," "hope," and words of similar meaning are forward-looking. In particular, the following are forward-looking in nature: statements with regard to strategy and management objectives; pending or potential acquisitions; pending or potential litigation and government investigations, including litigation and investigations concerning specialist trading in the U.S.; future revenue sources; the effects of changes or prospective changes in the regulation or structure of the securities exchanges on which our subsidiaries operate; and trends in results, performance, achievements or conditions in the markets in which we operate. These forward-looking statements involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our results, performance, achievements or conditions in the markets in which we operate to differ, possibly materially, from those expressed or implied in these forward-looking statements. We describe certain important factors to consider in connection with these forward-looking statements under "Key Information - Risk Factors" and elsewhere in our annual filing with the U.S. Securities and Exchange Commission on Form 20-F. We caution you not to place undue reliance on these forward-looking statements, which reflect our management's view only as of the date of this Report. We have no obligation to update these forward-looking statements.
Van der Moolen Holding N.V.
Consolidated Profit and Loss Account
(IFRS, Unaudited)
(amounts in millions of Euros, except Q2 Q2
per share data) %
2006 2005
--------------------------------------- ----------- ----------- -----
Revenues a) 40.5 27.2 49%
Other gains and losses - net (0.9) 2.4 -138%
Exchange, clearing and brokerage fees
a) (11.0) (5.1) 116%
Fixed employee benefit expense (8.0) (7.2) 11%
Variable employee benefit expense (3.3) (1.4) 136%
Lease of exchange memberships/ trading
licenses (0.7) (1.0) -30%
Information and communication expense (1.5) (0.8) 88%
Depreciation expenses (0.5) (0.3) 67%
Amortization expenses (1.0) (0.4) 150%
Impairment of intangible assets (10.0) -
General and administrative expenses (8.9) (4.8) 85%
Total operating expenses (44.9) (21.0) 114%
Operating profit (loss) (5.3) 8.6 -162%
Finance cost of financing preferred
shares - (0.8)
Interest on minority members' capital (0.3) (0.3)
Foreign currency result - net 1.1 0.5
Other finance costs - net (1.7) (2.1)
Profit (loss) before income tax from
continuing operations (6.2) 5.9 -205%
Income tax benefit / (expense) (1.5) (2.2)
Profit (loss) from continuing
operations (7.7) 3.7 -308%
Profit (loss) from discontinued
operations before income tax - -
Income tax benefit / (expense) - -
Profit (loss) from discontinued
operations - -
Profit (loss) for the period (7.7) 3.7 -308%
Profit attributable to minority
interest 0.7 1.9
Preferred financing dividend 1.0 -
Profit (loss) attributable to common
equity holders of the Company (9.4) 1.8 -622%
--------------------------------------- ----------- ----------- -----
--------------------------------------- ----------- ----------- -----
Average number of common shares
outstanding 45,453,298 39,106,481 16%
Diluted average number of common shares
outstanding 45,894,242 39,106,481 17%
Per common share data:
Profit (loss) from continuing
operations per common share (0.21) 0.05 -549%
Diluted profit (loss) from continuing
operations per common share (0.20) 0.05 -545%
Profit (loss) per common share (0.21) 0.05 -549%
Diluted profit (loss) per common share (0.20) 0.05 -545%
--------------------------------------- ----------- ----------- -----
(amounts in millions of Euros, except Q1
per share data) %
2006 a)
--------------------------------------- ----------------- ----------
Revenues a) 39.0 4%
Other gains and losses - net 22.0 -104%
Exchange, clearing and brokerage fees
a) (9.9) 11%
Fixed employee benefit expense (8.4) -5%
Variable employee benefit expense (4.2) -21%
Lease of exchange memberships/ trading
licenses (0.6) 17%
Information and communication expense (1.5) 0%
Depreciation expenses (0.6) -17%
Amortization expenses (1.0) 0%
Impairment of intangible assets -
General and administrative expenses (5.5) 62%
Total operating expenses (31.7) 42%
Operating profit (loss) 29.3 -118%
Finance cost of financing preferred
shares (1.1)
Interest on minority members' capital (0.3)
Foreign currency result - net (0.3)
Other finance costs - net (2.1)
Profit (loss) before income tax from
continuing operations 25.5 -124%
Income tax benefit / (expense) (11.5)
Profit (loss) from continuing
operations 14.0 -155%
Profit (loss) from discontinued
operations before income tax -
Income tax benefit / (expense) -
Profit (loss) from discontinued
operations -
Profit (loss) for the period 14.0 -155%
Profit attributable to minority
interest 2.9
Preferred financing dividend -
Profit (loss) attributable to common
equity holders of the Company 11.1 -185%
--------------------------------------- ----------------- ----------
--------------------------------------- ----------------- ----------
Average number of common shares
outstanding 44,970,390 1%
Diluted average number of common shares
outstanding 44,987,662 2%
Per common share data:
Profit (loss) from continuing
operations per common share 0.25 -184%
Diluted profit (loss) from continuing
operations per common share 0.25 -183%
Profit (loss) per common share 0.25 -184%
Diluted profit (loss) per common share 0.25 -183%
--------------------------------------- ----------------- ----------
(amounts in millions of Euros, except 6 months 6 months
per share data) %
2006 2005
---------------------------------------- ------------ ----------------
Revenues a) 79.5 54.6 46%
Other gains and losses - net 21.1 (0.2) 10650%
Exchange, clearing and brokerage fees a) (20.9) (9.9) 111%
Fixed employee benefit expense (16.4) (14.1) 16%
Variable employee benefit expense (7.5) (2.5) 200%
Lease of exchange memberships/ trading
licenses (1.3) (2.4) -46%
Information and communication expense (3.0) (1.4) 114%
Depreciation expenses (1.1) (0.7) 57%
Amortization expenses (2.0) (0.8) 150%
Impairment of intangible assets (10.0) -
General and administrative expenses (14.4) (9.6) 50%
Total operating expenses (76.6) (41.4) 85%
Operating profit (loss) 24.0 13.0 85%
Finance cost of financing preferred
shares (1.1) (1.5)
Interest on minority members' capital (0.6) (0.6)
Foreign currency result - net 0.8 2.8
Other finance costs - net (3.8) (3.9)
Profit (loss) before income tax from
continuing operations 19.3 9.8 97%
Income tax benefit / (expense) (13.0) (4.0)
Profit (loss) from continuing operations 6.3 5.8 9%
Profit (loss) from discontinued
operations before income tax - -
Income tax benefit / (expense) - -
Profit (loss) from discontinued
operations - -
Profit (loss) for the period 6.3 5.8 9%
Profit attributable to minority interest 3.6 2.5
Preferred financing dividend 1.0 -
Profit (loss) attributable to common
equity holders of the Company 1.7 3.3 -48%
---------------------------------------- ------------ ----------------
---------------------------------------- ------------ ----------------
Average number of common shares
outstanding 45,197,124 38,713,971 17%
Diluted average number of common shares
outstanding 45,638,068 38,713.971 18%
Per common share data:
Profit (loss) from continuing operations
per common share 0.04 0.09 -56%
Diluted profit (loss) from continuing
operations per common share 0.04 0.09 -56%
Profit (loss) per common share 0.04 0.09 -56%
Diluted profit (loss) per common share 0.04 0.09 -56%
---------------------------------------- ------------------- ---------
a) Both the Q1 2006 revenues and the Q1 2006 exchange, clearing
and brokerage fees have been grossed up with EUR 2.1 million due to a
reclassification. These fees were previously netted in revenues. This
reclassification had no impact on the operating profit and the profit
attributable to common equity holders of the Company.
---------------------------------------------- -------- ------- -----
Van der Moolen Holding N.V. Q2 Q2 %
Revenue breakdown in millions of Euros 2006 2005
---------------------------------------------- -------- ------- -----
VDM Specialists 21.0 22.6 -7%
Net gain on principal transactions 13.9 15.9 -13%
Commissions 5.0 5.3 -6%
Other 2.1 1.4 50%
European Trading 9.2 4.6 100%
Curvalue Principal Trading 6.4 -
Curvalue Brokerage a) 3.8 -
Unallocated and Holding 0.1 -
---------------------------------------------- -------- ------- -----
Total revenues 40.5 27.2 49%
---------------------------------------------- -------- ------- -----
---------------------------------------------- -------- ------- -----
Van der Moolen Holding N.V. Q2 Q2 %
Operating profit before other gains and losses 2006 2005
(net), before amortization of intangible fixed
assets and before impairment, breakdown in
millions of Euros
------------------------------------------------------- ------- -----
VDM Specialists 8.3 9.0 -8%
European Trading 2.5 0.1 2400%
Curvalue Principal Trading 1.7 -
Curvalue Brokerage (0.2) -
Unallocated and Holding (5.7) (2.5) -128%
---------------------------------------------- -------- ------- -----
Total operating profit before other gains and
losses (net), before amortization of
intangible fixed assets and before impairment 6.6 6.6 0%
------------------------------------------------------- ------- -----
---------------------------------------------- -------- ------- -----
VDM Specialists (VDMS) Q2 Q2
Key figures (IFRS) 2006 2005
---------------------------------------------- -------- ------- -----
VDM Specialists revenues ($ million) 26.5 28.5
Net gain on principal transactions 17.8 20.1
Commissions 6.3 6.7
Other 2.4 1.7
Total share volume of trading on NYSE
(million) 109,152 96,581
Share volume of trading in VDMS assignments
(million) 13,307 11,998
VDMS market share in share volume NYSE b) 12.2% 12.4%
VDMS share volume of principal shares traded
(million) 1,683 2,077
Participation rate b) 12.6% 17.3%
VDMS value of principal shares traded ($
billion) 76 81
VDMS net gain on principal transactions ($
million) 17.8 20.1
Realization rate (basis points) 2.3 2.5
---------------------------------------------- -------- ------- -----
-------------------------------- -------- ---- -------- -------- ----
Van der Moolen Holding N.V. Q1 % 6 months 6 months %
Revenue breakdown in millions of 2006 a)
Euros 2006 2005
-------------------------------- -------- ---- -------- -------- ----
VDM Specialists 22.6 -7% 43.6 44.8 -3%
Net gain on principal
transactions 14.9 -7% 28.8 31.8 -9%
Commissions 5.5 -10% 10.5 10.7 -2%
Other 2.2 -5% 4.3 2.3 87%
European Trading 7.9 16% 17.1 9.8 74%
Curvalue Principal Trading 5.1 25% 11.5 -
Curvalue Brokerage a) 3.4 12% 7.2 -
Unallocated and Holding - 0.1 -
-------------------------------- -------- ---- -------- -------- ----
Total revenues 39.0 4% 79.5 54.6 46%
-------------------------------- -------- ---- -------- -------- ----
-------------------------------- -------- ---- -------- -------- ----
Van der Moolen Holding N.V. Q1 % 6 months 6 months %
Operating profit before other gains 2006 2006 2005
and losses (net), before
amortization of intangible fixed
assets and before impairment,
breakdown in millions of Euros
----------------------------------------- ---- -------- -------- ----
VDM Specialists 9.1 -9% 17.4 18.8 -7%
European Trading 2.0 25% 4.5 0.6 650%
Curvalue Principal Trading 0.8 113% 2.5 -
Curvalue Brokerage (0.3) 33% (0.5) -
Unallocated and Holding (3.3) -73% (9.0) (5.4) -67%
-------------------------------- -------- ---- -------- -------- ----
Total operating profit before other
gains and losses (net), before
amortization of intangible fixed
assets and before impairment 8.3 -20% 14.9 14.0 6%
----------------------------------------- ---- -------- -------- ----
-------------------------------- -------- ---- -------- -------- ----
VDM Specialists (VDMS) Q1 6 months 6 months
Key figures (IFRS) 2006 2006 2005
-------------------------------- -------- ---- -------- -------- ----
VDM Specialists revenues ($
million) 27.1 53.6 57.6
Net gain on principal
transactions 17.2 35.0 40.9
Commissions 6.6 12.9 13.8
Other 3.3 5.7 2.9
Total share volume of trading on
NYSE (million) 104,614 213,766 193,067
Share volume of trading in VDMS
assignments (million) 12,813 26,120 23,962
VDMS market share in share
volume NYSE b) 12.2% 12.2% 12.4%
VDMS share volume of principal
shares traded (million) 1,908 3,591 4,185
Participation rate b) 14.9% 13.7% 17.5%
VDMS value of principal shares
traded ($ billion) 82 158 160
VDMS net gain on principal
transactions ($ million) 17.2 35.0 40.9
Realization rate (basis points) 2.1 2.2 2.6
-------------------------------- -------- ---- -------- -------- ----
Source: NYSE, Van der Moolen
a) Both the Q1 2006 revenues and the Q1 2006 exchange, clearing
and brokerage fees have been grossed up with EUR 2.1 million due to a
reclassification. These fees were previously netted in revenues.This
reclassification had no impact on the operating profit and the profit
attributable to common equity holders of the Company.
b) The determination of the market share and participation rate is
based on share volume transacted on the NYSE as provided by the NYSE
to the specialist community. Last years' calculations were originally
based on the dollar value of those transactions. Comparative figures
have been adjusted accordingly.
Van der Moolen Holding N.V.
Consolidated Balance Sheet
(IFRS, unaudited)
----------------------------------------------------------------------
(amounts in millions of Euros) June 30, 2006 December 31, 2005
----------------------------------------------------------------------
Assets
Non-current assets
Goodwill 45.1 24.8
Other intangible assets 59.8 45.3
Property, plant and equipment 5.3 4.0
Deferred income tax assets 69.4 80.8
Retirement benefit plans and other
long-term benefits 4.1 3.4
Loans and receivables 0.4 -
Available-for-sale financial assets 16.0 18.0
Cash and cash-equivalents 189.1 188.5
--------- ---------
389.2 364.8
Current assets
Securities owned 980.4 91.8
Due from clearing organizations and
professional parties 362.9 127.6
Loans and receivables - 5.0
Current income tax receivables 11.9 8.9
Other current assets and prepaid
expenses 5.9 17.4
Cash and cash-equivalents 131.2 115.8
--------- ---------
1,492.3 366.5
----------------------------------------------------------------------
Total assets 1,881.5 731.3
----------------------------------------------------------------------
Equity and liabilities
Capital and reserves attributable
to the Company's equity holders 294.3 221.2
Minority interest 10.0 10.9
--------- ---------
Total equity 304.3 232.1
Non-current liabilities
Financing preferred shares - 51.4
Capital of minority members 15.8 16.3
Subordinated borrowings 94.6 111.6
Long-term borrowings 1.0 1.4
Deferred income tax liabilities 10.1 1.1
--------- ---------
121.5 181.8
Current liabilities
Securities sold, not yet purchased 920.3 77.7
Due to clearing organizations and
professional parties 343.5 65.9
Due to customers 5.5 -
Short-term borrowings 30.8 33.8
Bank overdrafts 127.5 114.2
Current income tax liabilities 2.2 4.3
Provisions 6.3 3.1
Other current liabilities and
accrued expenses 19.6 18.4
--------- ---------
1,455.7 317.4
----------------------------------------------------------------------
Total equity and liabilities 1,881.5 731.3
----------------------------------------------------------------------
----------------------------------------------------------------------
Guarantee capital 414.7 411.4
----------------------------------------------------------------------
Van der Moolen Holding N.V.
Consolidated statement of cash flow/ Movement schedule
of shareholders'equity
(IFRS, unaudited)
Consolidated statement of cash flow
----------------------------------------- ------------- --------------
(Amounts in millions of Euros) 6 months 6 months
2006 2005 (1)
----------------------------------------- ------------- --------------
Cash flow from operating activities
Profit attributable to common equity
holders of the parent 1.7 3.3
Profit attributable to minority interest 3.6 2.5
Income tax expense 13.0 4.0
Depreciation and amortization of fixed
assets 3.1 1.5
Impairment of intangibles 10.0 -
Preferred financing dividend (non-cash
expense) 2.1 1.5
Foreign currency result - net (0.8) (2.8)
Finance cost- other, net 4.4 4.5
Gain on NYSE memberships (21.1) -
Fair value loss on interest-rate swaps - 0.2
Movement in provisions 3.5 -
NYSE/SEC settlement - (3.2)
Income tax received, net (1.4) 1.3
------- --------
18.1 12.8
(Increase)/ decrease in non-current cash
and cash equivalents (15.3) 3.6
(Increase)/ decrease in working capital 2.3 (28.8)
------ ------
5.1 (12.4)
Cash flow from investing activities
Investments in tangible fixed assets, net
of divestments (1.7) (0.3)
Investments in intangible fixed assets (1.0) -
Acquisition group companies, less cash
balances held 0.4 -
Proceeds from NYSE memberships 22.5 -
Interest received 0.6 0.1
------ ------
20.8 (0.2)
Cash flow from financing activities
Repayments of subordinated borrowings and
long-term borrowings (8.7) (7.9)
Sale of treasury shares 0.7 -
Interest paid (6.2) (6.0)
Dividend payment (2.3) (3.2)
Preferred financing dividend (2.9) (2.9)
Distributions paid to minority members,
net of capital contributed (2.1) (2.3)
Capital repayment former members of VDM
Specialists (3.1) (3.1)
------ ------
(24.6) (25.4)
Currency exchange differences on cash and cash-
equivalents, net of bank overdrafts 0.8 (2.0)
Change in cash and cash-equivalents, net
of amounts of bank overdrafts 2.1 (40.0)
Cash and cash-equivalents, net of amounts
of bank overdrafts at January 1, 1.6 40.1
------ ------
Cash and cash-equivalents, net of amounts
of bank overdrafts at June 30, 3.7 0.1
----------------------------------------------------------------------
(1) adjusted for presentation purposes
Movement in shareholders'equity
----------------------------------------- ------------- --------------
(Amounts in millions of euros) 6 months 6 months
2006 2005
----------------------------------------- ------------- --------------
Shareholders' equity at January 1 221.2 234.4
Preferred financing shares 51.4 -
Issued common shares and issuable shares
(Curvalue acquisition), net of shares
held in treasury 42.1 -
Change in accounting principles due to
adoption IAS 32 / IAS 39 - (51.5)
Cash dividend (2.3) (3.2)
Currency exchange differences (17.7) 20.6
Profit attributable to common
shareholders for the period 1.7 3.3
Contribution to dividend reserve
financing preferred shareholders 2.1
Sale of treasury shares 0.7 -
Fair value change available-for-sale
assets, net of taxation (4.9) 0.3
------ ------
73.1 (30.5)
------ ------
Shareholders' equity at June 30 294.3 203.9
----------------------------------------- ------------- --------------
Basis of presentation This interim report for the six months ended 30 June 2006 is prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with IAS 34 - Interim Financial Reporting. It does not include all of the information required for full annual financial statements, and should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge of Van der Moolen Holding NV for the year ended 31 December 2005 as included in the Annual Report 2005. Van der Moolen's 2005 consolidated financial statements are prepared in accordance with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). ('IFRS') as adopted by the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community ('EU'). In preparing this interim financial report, the same accounting principles and methods of computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. are applied as in the consolidated financial statements for the year ended 31 December 2005. This interim financial report is unaudited. Explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan notes Explanatory notes to the financial data reported are included in the front part of this interim report. To avoid duplication duplication /du·pli·ca·tion/ (doo-pli-ka´shun) 1. the act or process of doubling, or the state of being doubled. 2. of data this information is not repeated. |
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