MF Global Holdings Ltd. (NYSE: MF), a broker-dealer providing trading and hedging solutions, today reported financial results for its fourth quarter and fiscal year ended March 31, 2011.

Fourth Quarter and Year-End Highlights

  • Net revenue growth of 22 percent for the quarter. The growth reflects expanding principal trading and client facilitation activities as well as a 20 percent increase in client volumes.Revenue, net of interest and transaction-based expenses (net revenue), was $292.5 million for the fourth quarter versus $240.5 million for the same period last year; fiscal year 2011 net revenues were $1,069.1 million, versus $1,015.0 million last year.
  • Employee productivity increases 38 percent. Net revenue per employee for the fourth quarter increased 38 percent from the same period last year and increased 11 percent for the full year. Growth in productivity reflects the repositioning and upgrade of personnel in the fiscal year as 969 employees have left the firm and 588 have joined the company.
  • Client payables expand 13 percent over the last 12 months. Client payables were $13.6 billion at year end, up 13 percent from $12.0 billion at March 31, 2010.
  • Balance sheet de-levered. Total assets were $40.5 billion at year end, compared with $51.0 billion at March 31, 2010.
  • GAAP results reflect strategic restructuring as well as legal reserves. GAAP net loss applicable to common shareholders was $51.5 million or $0.31 per basic and diluted share for the fourth quarter, compared with a net loss of $96.5 million or $0.78 per basic and diluted share for the same period last year. GAAP net loss applicable to common shareholders for fiscal year 2011 was $154.4 million, or $1.00 per basic and diluted share, versus a net loss of $167.7 million or $1.36 per basic and diluted share for the same period last year. 2
  • Adjusted earnings per fully diluted share increased for the quarter and the full fiscal year. Adjusted earnings per fully diluted share were $0.05 for the fourth quarter, versus an adjusted loss of $0.17 for the same period last year. For fiscal year 2011, adjusted earnings per fully diluted share were $0.25 versus an adjusted loss of $0.11 for fiscal year 2010. 3 The increasein adjusted earnings per share reflects improved diversity of revenue, a lower cost structure and improved productivity due to realignment of the strategy.

"During the last year, MF Global has been undergoing a strategic restructuring and our results reflect that transformative effort," said Jon S. Corzine, chairman and CEO, MF Global. "While our financial performance does not yet demonstrate our full potential, significant progress has been achieved and operating leverage has been put in place. Considerable effort to implement our new strategy will be ongoing in the year ahead."

Mr. Corzine continued, "Most importantly, we have dramatically repositioned and upgraded our staff to meet the requirements of our strategic plan. The reset of personnel has been accompanied by a reformulated compensation philosophy and structure that reflects pay-for-firm performance."

"We are committed to generating GAAP earnings and entering a path toward double-digit returns on equity."