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8-K - FORM 8-K - PENSON WORLDWIDE INC | d82301e8vk.htm |
Exhibit 99.1
Penson Worldwide, Inc. Says Market Activity Related to Non Accrual Receivables
Dallas, TX, May 12, 2011 Penson Worldwide, Inc. (NASDAQ: PNSN) today said it believes that the
recent declines in its stock price appear to be related to its recent Form 10-Q disclosure of a
concentrated collateral position associated with Retama Development
Corporation related receivables.
The Company currently expects to resolve this situation without a loss, but even if a loss were
realized, Penson said it would have no impact on the Companys solid regulatory capital or sound
financial condition.
As reported in the Companys Form 10-Q, as filed with the Securities and Exchange Commission on May
9, 2011, Penson has approximately $42.6 million in non accruing receivables collateralized by
securities related to the Retama Development Authority, which have declined in liquidity.
The $42.6 million of receivables represent only 0.49% of Pensons $8.7 billion in average daily
customer balances during the first quarter of 2011. Penson regularly reviews the value of the
collateral, including a recent third party appraisal of the real estate underlying the Retama
facility.
As of the end of March, Penson operating companies had more than $100 million in excess regulatory
capital, which already reflects the deduction of these illiquid receivables. Penson companies also
held more than $5.8 billion in cash or cash equivalents at the end of the March quarter.
We believe the activity of the Companys stock related to the Retama related collateral is
unwarranted. We hope this news release will aid in putting this issue to rest, said Philip A.
Pendergraft, Chief Executive Officer. Penson Worldwide remains strongly financed, with ample
excess regulatory capital and a solid business, and none of this affects or involves any
correspondents or their customers. We continue to move ahead with our 2011 plan, which calls for
reducing quarterly losses and generating a small profit (excluding first quarter non-operating
items) for the year.
The Company also announced the resignation of Thomas R. Johnson from its Board of Directors. Based
on Mr. Johnsons position as chief executive officer of Call Now, Inc, a holder of a portion of the
Retama related collateral, both Mr. Johnson and the Company felt it appropriate for him to resign
his position at this time.
About Penson Worldwide: www.penson.com
The Penson Worldwide group of companies provides execution, clearing, custody, settlement and
technology infrastructure products and services to financial services firms and others servicing
the global financial services industry. The Penson Worldwide group of companies includes Penson
Financial Services, Inc., Penson Financial Services Canada Inc., Penson Financial Services Ltd.,
Nexa Technologies, Inc., Penson Futures, Penson Asia Limited, and Penson Financial Services
Australia Pty Ltd, among other companies. Headquartered in Dallas, Texas, Penson has served the
clearing needs of the global financial services industry since 1995. Penson Worldwide Building
the Best Clearing and Execution Services Firm in the World.
Penson Financial Services, Inc. is a member of FINRA, New York Stock Exchange, NYSE Arca Exchange,
NYSE Amex Equities, NYSE Amex Options, BATS Exchange, Direct Edge Exchanges (EDGA and EDGX),
Chicago Board Options Exchange (CBOE), Chicago Stock Exchange, International Securities Exchange
(ISE), NASDAQ OMX BX, NASDAQ OMX PHLX, NASDAQ Stock Market, NASDAQ LIFFE, LLC, National Stock
Exchange, Options Clearing Corp. (OCC), Fixed Income Clearing Corp. (FICC), MSRB, National
Securities Clearing Corp. (NSCC), DTC, ICMA, Euroclear, and SIPC. Penson Financial Services Canada
Inc. is a participating organization with the Toronto Stock Exchange, the Montreal Exchange, the
CNQ Exchange and the TSX Venture Exchange, is regulated by the Investment Industry Regulatory
Organization of Canada, is a member of the CIPF, CDCC and CDS and subscribes to various Canadian
Alternative Trading Systems. Penson Financial Services Ltd. is a member of the London Stock
Exchange, Chi-X Europe, BATS
Europe, NYSE Arca, NYSE Euronext, and SmartPool, and is authorized and regulated by the Financial
Services Authority. Penson Financial Services Australia Pty Ltd holds an Australian Financial
Services License and is a Participant of ASX Limited, Australian Clearing House Pty Limited, and
ASX Settlement and Transfer Corporation Pty Limited. Penson Futures is a registered Futures
Commission Merchant and clearing member at the Chicago Mercantile Exchange, Chicago Board of Trade,
New York Mercantile Exchange, Kansas City Board of Trade, Minneapolis Board of Trade, NYSE Liffe
US, NYSE Euronext LIFFE, ONEChicago, ICE Futures Europe and ICE Futures USA.
Forward-Looking Statements
Statements contained in this news release that are not based on current or historical fact are
forward-looking in nature. Such forward-looking statements are based on current plans, estimates
and expectations. Forward-looking statements are based on known and unknown risks, assumptions,
uncertainties and other factors. Actual results, performance, or achievements may differ
materially from any future results, performance, or achievements expressed or implied by such
forward-looking statements. Penson undertakes no obligation to publicly update or revise any
forward-looking statement.
Contacts
Gary Fishman (gary.fishman@anreder.com, Steven Anreder (steven.anreder@anreder.com), or Michael
Shallo (michael.shallo@anreder.com), of Anreder & Company, at +1-212-532-3232