Committee Releases Coates’ Recommendations on Mutual Funds and Other Collective Investments
CAMBRIDGE, Mass., June 10, /PRNewswire/ — The Committee on Capital Markets Regulation (”Committee”), an independent and nonpartisan research organization dedicated to improving the regulation of U.S. capital markets, released a set of recommendations today made by Professor John C. Coates of Harvard Law School. His recommendations and accompanying study focus on tax and regulatory reforms for the domestic mutual fund industry. The Committee has taken no position on these recommendations.
In 2007, U.S. mutual funds held more stock in U.S. companies than did either individuals or any other type of financial institution for the first time. Given the increasing importance of U.S. mutual funds for individuals and the global economy, several changes are needed to ensure the industry’s continued growth and long-term stability.
Most Americans invest through mutual funds and U.S. tax policy imposes unjustified burdens on these most cost effective, safest, and highly regulated investment vehicles. Further, although the U.S. mutual fund industry continues to be the world’s largest, its growth-rate now lags behind domestic and foreign competitors.
Professor Coates’ comparison of U.S. and E.U. tax and securities laws governing mutual funds reveals key features of the U.S. regime that are anti-competitive.
Harvard Professor Hal S. Scott, the Committee’s President and Director, said: “Compared to E.U. counterparts, U.S. mutual funds are taxed less favorably and regulated less intelligently.” He added that “the 70-year-old structure of U.S. regulation, unlike the more modernized E.U. system, makes the success of U.S. mutual funds dependent on the resources, responsiveness, and flexibility of an under-funded, under-resourced, and out-dated SEC.”
Finally, Professor Coates’ study demonstrates that despite tight regulatory constraints in the E.U., competitive pressures have forced supervisors in the E.U. to be more flexible in adopting implementing regulations–unlike their SEC counterparts for whom flexibility is curtailed by both regulatory structure and historical practice.
Professor Coates seeks to correct U.S. taxation of mutual funds by bringing it into line with the tax regime for collective investments in other developed nations. Specifically, he recommends that Congress:
* permit investors owning less than 2% of a U.S. mutual fund’s shares(1) to defer capital gains tax until they sell their fund shares–making it possible for U.S. funds to market themselves directly to foreign investors.(2) * allow U.S. mutual fund investors to realize capital losses in the same manner and at the same time as they realize capital gains– re-stimulating investors to invest in U.S. rather than foreign mutual funds; and to * permit U.S. investors to invest in foreign funds in countries that only impose tax on investors when profits and dividends are distributed without incurring any additional U.S. taxes or penalty. This measure would make it practical for U.S. investors to invest directly in foreign funds.
Professor Coates finds that from a regulatory standpoint, the U.S. mutual fund industry has two main problems. First, the Investment Company Act imposes such stringent restrictions and requirements, without clear benefit to investors, that future growth and innovation in the industry depends on the responsiveness, resources, and flexibility of the Investment Management Division (IMD) of the SEC. Second, the IMD’s budget and staff depend on the SEC, which in turn depends on Congress. Unfortunately, the IMD’s resources have not kept pace with the growth of the U.S. fund industry, nor do they come close to matching the funding and resources of the SEC’s counterparts in the E.U.
Professor Coates makes four specific recommendations for regulatory reform. The first is aimed at Congress and the remainder are directed to either Congress or the SEC.
* create a dedicated off-budget funding mechanism for the IMD, such as a fee-based revenue source drawn from the fund industry, which might require spinning it off into a separate entity.(3) This would give the IMD the ability to make long-term investments, such as adding top-level economists, risk analysts and experienced business personnel to its current staff, which consists almost exclusively of lawyers. * review exemptive applications with the same cost/benefit principles that guide regulation generally. Provided the organization is equipped with a broader array of staff specialists proficient in cost-benefit analysis, the IMD’s supervisory capacity will inevitably improve. * grant automatic approval of exemptive requests upon filing, where precedent exists, as certified by counsel in good standing, in order to free up IMD resources for other regulatory and supervisory tasks. * extend mutual recognition from broker-dealers to mutual funds and eliminate the effective current ban on cross-border fund competition. This final measure holds long-term potential for improving the administrative efficiency of the IMD and enhancing cross-border competition, with attendant benefits for U.S. investors.
The Committee is a non-partisan group of independent U.S. business, financial, investor and corporate governance, legal, accounting and academic leaders. It was formed in the fall of 2006 to study and report on ways to improve the regulation of the U.S. capital markets.
For more information about the Committee, please visit: www.capmktsreg.org/.
(1) The reason for the 2% cap is to ensure that mutual funds are not effectively controlled or established by individuals for the purpose of deferring capital gain tax.
(2) This recommendation is substantially similar to the effect of a bi-partisan-sponsored bill in the 110th Congress – H.R. 2796, the Generate Retirement Ownership Through Long-Term Holding Act of 2005 (”the GROWTH Act”).
(3) The Committee has previously recommended that the SEC be consolidated with other financial regulators. If consolidation were to take place, this new entity would be part of the new consolidated agency, e.g. U.S. Financial Services Authority (USFSA), rather than part of the SEC.
SOURCE Committee on Capital Markets Regulation
IIFL-Auerbach Grayson: Mutual Decision to End Partnership
MUMBAI, June 8 /PRNewswire-FirstCall/ — After nearly one and a half years of association, IIFL and Auerbach Grayson have mutually decided to part ways. The partnership will terminate with effect from 10th of June, 2009.
In line with the goal to build a direct presence in US, IIFL has recently hired Anindya Chatterjee to head its efforts in the US. Anindya brings more than fifteen years of capital markets experience to IIFL. Prior to joining IIFL, Anindya has held senior roles as Managing Director at Jefferies & Co, where he headed Emerging Asian (China & India) equity research, as Strategist and Economist focused on Non-Japan Asia for Bear Stearns & Company in Hong Kong, IDEA INC. in New York, and NatWest Markets in Singapore. He also was the Head of Research at ANZ Investment Bank in India.
IIFL is the institutional equities division of India Infoline Ltd. In less than two years, IIFL has already won recognition from a number of clients as a house with top-quality, incisive and timely research. IIFL’s client roster includes leading foreign and domestic institutional investors. India Infoline is a listed multi-services financial services company with a market capitalization of about US$1 billion. IIFL currently has offshore offices at New York, Dubai and Singapore.
About IIFL
IIFL is a premier institutional equities house with activities spanning investment banking, equity research and private equity. Headquartered in the financial hub of Mumbai, India; IIFL has overseas offices in Singapore, Dubai and New York. With a team of 25 research analysts, IIFL provides in-depth analysis of India with plans to extend its presence to other Asia Pacific markets.
IIFL is a part of the India Infoline group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and it’s subsidiaries, which is one of the leading players in the Indian financial services space. India Infoline offers advice and execution platform for the entire gamut of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. It owns and manages the website, http://www.indiainfoline.com, which is one of India’s leading online destinations for personal finance, stock markets, economy and business.
India Infoline has recently been awarded the ‘Best Broker, India’ by FinanceAsia and the ‘Most improved brokerage, India’ in the AsiaMoney polls. India Infoline has also won the ‘Fastest Growing Large Broking House’ award by Dun & Bradstreet. A forerunner in the field of equity research, India Infoline’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’. India Infoline’s research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers.
A network of 1,361 business locations spread over 428 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and at our branches.
India Infoline refers to India Infoline Ltd and its group companies.
For further information, please contact: Anindya Chatterjee, IIFL Inc 28 West, 44th Street, 16th floor, New York – NY 10036 Tel: +1-646-248-0525 Fax: +1-646-429-1495 Email: anindya@iiflcap.com Harshad Apte, India Infoline Ltd.
75, Nirlon Complex, Off: W.E.Highway, Goregaon (East), Mumbai – 400065 Tel: +91-22-4249-9300 Fax: +91-98676-86233 Email: harshad@indiainfoline.com
SOURCE India Infoline Ltd
Do You Pay Taxes? Tax.com is for You
FALLS CHURCH, VA UNITED STATES
New website is sponsored by Tax Analysts, the global provider of tax news and analysis
FALLS CHURCH, Va., June 3 /PRNewswire-USNewswire/ — “Major tax increases are in America’s future” to address surging budget deficits, and the only questions are whether they will come before or after the 2012 presidential elections and whether Obama or a Republican successor will enact them, Martin Sullivan writes today at the new website, Tax.com.
Along with hard-hitting blogs by Sullivan and other tax experts, Tax.com provides recent news about tax policy in Washington and the states, tax advice for average Americans, and even tax forms from the IRS.
Tax.com is for you — whether you’re a CPA, a small business owner, a homemaker, or a student. For a tax professional, it brings you relevant and provocative opinions on today’s tax issues and provides a forum to discuss the practical impact of tax policy decisions. For the citizen taxpayer, it offers useful information on the tax implications of life events and on how to minimize your tax burden — all in a way that keeps you entertained as well as educated.
Do you want to know what taxes Congress may raise to finance health care reform? Are you interested in the taxes that states are raising to balance their budgets? Do you want a peak at the tax returns of recent Presidents, including Barack Obama? If there’s a conversation taking place on the latest developments in tax policy, you’ll find it on Tax.com.
Tax.com is part of Tax Analysts, the global provider of tax news and analysis for the last 40 years. Tax Analysts publishes Tax Notes, Tax Notes Today, State Tax Notes, State Tax Today, Tax Notes International, and Worldwide Tax Daily, and it offers research products for tax professionals.
Along with Sullivan, a leading economist and contributing editor for Tax Analysts, bloggers include Joseph Thorndike, a noted tax historian and another contributing editor, as well as the organization’s president and publisher, Chris Bergin.
To join the conversation, please go to www.tax.com.
CONTACT: Wendy Lewis, 703 533-4404 Wendy_Lewis@tax.org
Lawrence Haas, 202 257-9592 larry@larryhaasonline.com
SOURCE Tax Analysts
The Mattress Wallet – New Financial Tool
Financial comfort in an uncertain economy
SEATTLE, June 12 /PRNewswire/ — As the global economic crisis continues, investors are looking for the next sure thing. It’s well known that the safest place to put your hard earned money is in a mattress. But a mattress can be very difficult to carry around and sometimes your loved ones throw them away. The Mattress Wallet, introduced today, addresses these issues.
The Mattress Wallet provides savvy investors with a secure and comfortable place to put their money. The Mattress Wallet measures approximately 3.5″ x 4″ when folded, the same size as a standard wallet and is well-suited for international currencies as well as U.S. dollars. No detail has been overlooked down to the ubiquitous warning tag that should not be removed under penalty of law. Its cream-colored quilting features a subtle paisley pattern, bordered with fine satin trim that conforms to the shape of your body. No box spring wallet is required.
Debt is a critical part of most American’s financial planning, which is why The Mattress Wallet can hold at least 8 credit cards. The interior pockets are made of waterproof latex with satin detail and come with a supply of Mattress Wallet Deposit Slips. The Mattress Wallet packaging includes plenty of money-wise advice including, comparison graphs – The Mattress Wallet vs. The Stock Market, The Mattress Wallet vs. Traditional Ponzi Scheme. It also includes other sound investing parables such as “The money you put in, is the money you take out.” Phil Converse, J.D., President of Balanced Accounts Company and a Mattress Wallet enthusiast, notes, “I consider this to be a quick and easy fix to at least one aspect of the financial crisis. Maybe two.”
Available exclusively at www.themattresswallet.com, The Mattress Wallet sells for $19.95 plus shipping and can be mailed anywhere in the world.
Media contacts: Limelight Partners Charlotte Wayte charlotte@limelightpartners.com 206.261.4963
Mary Douglas mary@limelightpartners.com 425.454.1552
SOURCE The Mattress Wallet
Aberdeen Global Income Fund, Inc. Announces Payment of Monthly Distribution
PHILADELPHIA, June 12 /PRNewswire-FirstCall/ — Aberdeen Global Income Fund, Inc. (NYSE Amex: FCO) (the “Fund”), a closed-end bond fund, today announced that it paid on June 12, 2009, a monthly distribution of US 7.0 cents per share to all shareholders of record as of May 29, 2009. For the 12 months to May 31, 2009, the Fund has paid total distributions amounting to US $1.59 per share.
The policy of the Fund’s Board of Directors is to provide investors with a stable monthly distribution out of current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital.
The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax accounting rules, the amount of distributable income for each fiscal period depends on the actual exchange rates during the entire year between the U.S. dollar and the currencies in which Fund assets are denominated and on the aggregate gains and losses realized by the Fund during the entire year. Therefore the exact amount of distributable income for each fiscal year can only be determined as of the end of the Fund’s fiscal year, October 31. However, under the Investment Company Act of 1940, the Fund may be required to indicate the sources of certain distributions to shareholders.
The Fund estimates that the distributions for the fiscal year commencing November 1, 2008, including the distribution paid on June 12, 2009, are comprised of 90% net investment income and 10% return of paid-in-capital. This estimated distribution composition may vary from month to month because it may be materially impacted by future realized gains and losses on securities and fluctuations in the value of the currencies in which Fund assets are denominated.
In January 2010, a Form 1099-DIV will be sent to shareholders, which will state the amount and composition of distributions and provide information with respect to their appropriate tax treatment for the 2009 calendar year.
The Fund is managed by Aberdeen Asset Management Asia Limited and advised by Aberdeen Asset Management Limited. The Fund’s shares trade on the NYSE AMEX under the symbol “FCO”.
If you wish to receive this information electronically, please contact InvestorRelations@aberdeen-asset.com
www.aberdeeninvestments.com
Aberdeen Asset Management Asia Limited and Aberdeen Asset Management Limited are registered investment advisers under the Investment Advisers Act of 1940.
SOURCE Aberdeen Global Income Fund, Inc.
NIA Supports Peter Schiff for Senate
FORT LEE, N.J., June 09 /PRNewswire-USNewswire/ — The National Inflation Association today released the following statement to its http://inflation.us members:
“The National Inflation Association is not a political organization, but it is our belief that we must support Peter Schiff and encourage him to run for Senate in the State of Connecticut.
The U.S. is on a path towards hyperinflation that will wipe out the wealth of all Americans who don’t prepare now. The Obama administration along with Congress have adopted a policy of endless bailouts and stimulus plans that won’t ever produce an economic recovery, but will instead lead to a currency crisis and a worthless U.S. Dollar.
Today in Congress, Ron Paul is the only man who supports a true free market economy and a sound currency that is backed by gold. We need Peter Schiff to join Ron Paul in Washington and help spread the message that we can’t solve an economic crisis that was created by too much government spending and debt; by spending more, increasing the size of government and expanding the national debt.
Peter Schiff understands that if our government does not reverse course immediately and drastically cut government spending, eliminate Wall Street bailouts, and let the free market work for itself; hyperinflation will be unavoidable and the U.S. will become the next Zimbabwe.
Peter Schiff is our only hope to achieve real change in Washington. President Obama campaigned for change, but instead took Bush’s mistakes and multiplied them. Bush passed a wasteful $200 billion stimulus plan, so Obama wasted $800 billion on his own stimulus plan. Bush had a budget deficit of nearly $500 billion, now Obama’s budget deficit this year will likely surpass $2 trillion.
Both the Democrats and Republicans are responsible for getting us to a point where it is impossible to pay back our $11.4 trillion national debt. Sure, the U.S. has a GDP of $14 trillion, but more than 70% of it is consumer spending. Our largest exports, besides U.S. Treasuries, are scrap metal and paper we send back to China so that they can produce more junk for us to consume with the money they lend us.
Up until today, the U.S. Treasury has been able to pay back its old debt plus interest by issuing larger amounts of new debt to an increasing supply of foreign lenders. Peter Schiff equates this to a ponnzi scheme and believes the U.S. will either default on its debt or monetize it by having the Federal Reserve print trillions of dollars out of thin air, which will destroy the savings of hundreds of millions of Americans.
We must allow the current recession to run its course and rebuild a real economy from the ground floor. In order for the U.S. to once again prosper, Americans need to save their money and produce real things to export to the rest of the world. However, we can’t achieve this until we have a sound currency that is backed by gold; and we will never have a sound currency without people like Peter Schiff in Washington.”
Please spread the word about NIA and have your friends subscribe for free at http://inflation.us
About us:
The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.
SOURCE National Inflation Association
U.S. Dollar Strength – Who Cares? -
CHICAGO, IL UNITED STATES
CHICAGO, June 8 /PRNewswire/ — Currency and Futures Analyst for ONN.tv’s Mark2Market, looks at the debate over the strength and stability of the U.S. dollar. Taking opposition with proponents of the idea that the dollar must remain strong and stable for the U.S. economy to recover, Cook gives ten arguments against the “Kudlow thesis.” He addresses typical concerns about deficits and inflation, explains the sell-off in the dollar that began in March, and highlights why we can’t always have a strong currency and strong equity markets.
Mark2Market programming is exclusively sponsored by Mirus Futures.
About the Options News Network:
The Options News Network provides top quality options news, education, trading ideas and strategies, and expert commentary on the options market, targeting options traders of all skill and experience levels.
About Mirus Futures:
Mirus Futures is the leading provider of commodity trading brokerage services. As the first full-service firm to launch the Zen-Fire network, Mirus has been able to revolutionize trading experiences worldwide. Clients experience the art of acceleration with the ultimate trading solution; NinjaTrader powered by Zen-Fire. Envision the fastest connection and unfiltered tick data with the strongest available support team and see Mirus. http://mirusfutures.com.
SOURCE www.ONN.tv
Guess?, Inc. Reports First Quarter Fiscal Year 2010 Results
Q1 EPS Reached $0.35 Compared to $0.50 Last Year
Provides Q2 EPS Guidance in the Range of $0.42 to $0.45
First Quarter Fiscal 2010 Highlights
- Global revenues reached $441 million, flat in constant dollars and down 10% in US dollars compared to last year.
- Operating income reached $48 million, down 37% compared to last year.
- Cash position increased $52 million from last year. Balance sheet remains strong.
LOS ANGELES, June 4 /PRNewswire-FirstCall/ — Guess?, Inc. (NYSE: GES) today reported financial results for the first quarter of its 2010 fiscal year, which ended May 2, 2009.
First Quarter Fiscal 2010 Results
For the first quarter of fiscal 2010, the Company reported net earnings of $32.5 million, a decrease of 31.9% compared to net earnings of $47.8 million for the first quarter of fiscal 2009. Diluted earnings per share decreased 30.0% to $0.35 in the current quarter, compared to $0.50 in the prior-year quarter. The Company has reduced the current and prior year quarter’s reported diluted earnings per share by $0.01 to reflect the impact of a new accounting pronouncement related to certain participating shares.
Paul Marciano, Chief Executive Officer, commented, “Our first quarter financial results exceeded our expectations. We managed our business effectively, reducing inventory levels and capital spending. We also aggressively cut costs, which resulted in an improved SG&A rate, even with lower sales. As a result, we generated solid operating cash flows, further strengthening our capital structure.”
Mr. Marciano continued, “We expect the challenging economic conditions to persist for some time. However, we believe that the strength of our product lines and our diversified business model position us well in this environment. We remain committed to our international expansion strategy, and continue to see opportunities in Europe and Asia where our brand is well known but underpenetrated. We will continue to run the business prudently and build the capabilities and infrastructure to support our growth objectives in the future. Through these efforts, we expect to emerge in an even stronger position when conditions ultimately improve.”
Total net revenue for the first quarter of fiscal 2010 decreased 9.8% to $441.2 million from $489.2 million in the prior-year quarter. In constant dollars, total net revenue was essentially flat. The Company’s retail stores in North America generated revenue of $207.6 million in the first quarter of fiscal 2010, a 2.0% decrease from $211.9 million in the same period a year ago. Comparable store sales decreased 6.0% in local currency and 10.0% in US dollars for the first quarter of fiscal 2010, compared to the same period a year ago. The Company operated 429 retail stores in the U.S. and Canada at the end of the first quarter of fiscal 2010 versus 391 stores a year earlier.
Net revenue from the Company’s wholesale segment, which includes the Company’s Asian operations, decreased 12.3% to $65.9 million in the first quarter of fiscal 2010, from $75.1 million in the prior-year period.
Net revenue from the Company’s European segment decreased 18.5% to $145.7 million in the first quarter of fiscal 2010, compared to $178.7 million in the prior-year period.
Licensing segment net revenue decreased 6.0% to $22.1 million in the first quarter of fiscal 2010, from $23.5 million in the prior-year period.
Operating earnings for the first quarter of fiscal 2010 decreased 36.7% to $48.0 million from $75.9 million in the prior-year period. Operating margin in the first quarter decreased 460 basis points to 10.9%, compared to the prior-year’s quarter. This margin contraction was due to lower European product margins, partially attributable to the impact of the stronger US dollar, lower product margins in North America and occupancy deleverage due to the negative comparable store sales, partially offset by SG&A leverage resulting from strong expense management.
The Company’s effective tax rate declined to 33.0% for the first quarter of fiscal 2010, from 36.0% for the first quarter of the prior year.
Share Repurchase
During the first quarter of fiscal 2010, the Company repurchased approximately 400,000 shares of its common stock at an average purchase price of $13.00, totaling $5.3 million. As of May 2, 2009, the Company had remaining approval under its existing repurchase program to purchase $134.2 million of its common stock.
Outlook
The Company’s expectations for the second quarter of fiscal 2010 ending August 1, 2009, are as follows:
* Consolidated net revenues are expected to range from $465 million to $485 million. * Operating margin is expected to be around 14%. * Diluted earnings per share are expected to be in the range of $0.42 to $0.45.
The continued volatility in the global economy presents a substantial challenge to forecasting future consumer behavior and future financial results. Due to its limited visibility, the Company is not providing specific revenue, operating margin or diluted earnings per share guidance for the full fiscal year 2010.
Dividend
The Company also announced today that its Board of Directors has approved a quarterly cash dividend of $0.10 per share on the Company’s common stock. The dividend will be payable on July 2, 2009 to shareholders of record at the close of business on June 17, 2009.
The Company will hold a conference call at 4:30 pm (ET) on June 4, 2009 to discuss the news announced in this press release. A live webcast of the conference call will be accessible at www.guessinc.com via the “Investor’s Info” link. The webcast will be archived on the website for 30 days.
Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, footwear and other related consumer products. As of May 2, 2009, the Company operated 429 retail stores in the United States and Canada and 706 retail stores outside of North America, of which 103 were directly owned. The Company also distributes its products through better department and specialty stores around the world. For more information about the Company, please visit www.guessinc.com.
Except for historical information contained herein, certain matters discussed in this press release, including statements concerning the Company’s future prospects and guidance for the second quarter of fiscal 2010 are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are only expectations, and involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from what is currently anticipated. Factors which may cause actual results in future periods to differ materially from current expectations include, among other things, domestic and international economic conditions, including economic and other events leading to a reduction in consumer confidence and discretionary consumer spending; our ability to, among other things, anticipate consumer preferences, effectively operate our various retail concepts, effectively manage inventories and successfully execute our strategies, including our supply chain and international growth strategies; and risks associated with changes in economic, political, social and other conditions affecting our foreign operations, including currency fluctuations. In addition to these factors, the economic, litigation-related and other risks identified in the Company’s most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission, including but not limited to the risk factors discussed therein, could cause actual results to differ materially from current expectations.
Contact: Guess?, Inc. Investor Relations (213) 765-5578
Guess?, Inc. and Subsidiaries Condensed Consolidated Statements of Income (dollars in thousands, except per share data)
Three Months Ended ———————————- May 2, May 3, 2009 2008 $ % $ % ———————————-
Net revenue Product sales $419,127 95.0% $465,735 95.2% Net royalties 22,074 5.0% 23,485 4.8% —— — —— — 441,201 100.0% 489,220 100.0%
Cost of product sales 263,698 59.8% 267,981 54.8% ——- —- ——- —-
Gross profit 177,503 40.2% 221,239 45.2%
Selling, general and administrative expenses 129,469 29.3% 145,314 29.7% ——- —- ——- —-
Earnings from operations 48,034 10.9% 75,925 15.5%
Other (income) expense: Interest expense 606 0.1% 1,025 0.2% Interest income (737) (0.2%) (1,533) (0.3%) Other, net (1,266) (0.2%) 908 0.2% —— —- — —
Earnings before income taxes 49,431 11.2% 75,525 15.4%
Income taxes 16,312 3.7% 27,189 5.5% —— — —— —
Net earnings 33,119 7.5% 48,336 9.9%
Net earnings attributable to noncontrolling interests in subsidiaries 577 0.1% 535 0.1% — — — —
Net earnings attributable to Guess?, Inc. $32,542 7.4% $47,801 9.8% ======= === ======= ===
Earnings per common share attributable to common stockholders:
Basic (1) $0.35 $0.51
Diluted (1) $0.35 $0.50
Weighted average common shares outstanding attributable to common stockholders:
Basic 90,631 92,950
Diluted (1) 91,158 93,806
(1) The company adopted a new accounting pronouncement in the first quarter of fiscal 2010 that requires the company to exclude certain earnings and shares related to participating securities from the computation of earnings per common share. The net earnings attributable to participating securities were approximately $532 and $766 in the first quarter of fiscal 2010 and fiscal 2009, respectively, and the amount of participating shares for the same periods were 237 and 233, respectively. The effect of the new accounting pronouncement on diluted earnings per common share is to reduce both the current quarter and the prior year quarter by approximately $0.01 per share. The prior year’s earnings per share has been adjusted to reflect the change.
Guess?, Inc. and Subsidiaries Consolidated Segment Data (dollars in thousands)
Three Months Ended ———————— May 2, May 3, % 2009 2008 chg ——– ——– —-
Net revenue: Retail operations $207,560 $211,937 -2% Wholesale operations 65,869 75,134 -12% European operations 145,698 178,664 -18% Licensing operations 22,074 23,485 -6% —— —— $441,201 $489,220 -10% ======== ========
Earnings (loss) from operations: Retail operations $18,007 $22,844 -21% Wholesale operations 7,422 12,554 -41% European operations 23,139 39,961 -42% Licensing operations 19,015 20,247 -6% Corporate overhead (19,549) (19,681) -1% ——- ——- $48,034 $75,925 -37% ======= =======
Operating margins: Retail operations 8.7% 10.8% Wholesale operations 11.3% 16.7% European operations 15.9% 22.4% Licensing operations 86.1% 86.2%
Total Company 10.9% 15.5%
Guess?, Inc. and Subsidiaries Selected Condensed Consolidated Balance Sheet Data (in thousands)
May 2, January 31, May 3, 2009 2009 2008 ———- ———- ———-
ASSETS
Cash and cash equivalents $312,630 $294,118 $260,390
Receivables, net 277,436 262,349 315,598
Inventories 203,395 239,675 202,804
Other current assets 92,696 98,047 52,247
Property and equipment, net 235,607 221,416 237,193
Other assets 137,502 130,961 151,361
———- ———- ———- Total Assets $1,259,266 $1,246,566 $1,219,593 ========== ========== ==========
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of borrowings and capital lease obligations $30,645 $24,018 $47,562
Other current liabilities 276,531 311,866 309,083
Borrowings and capital lease obligations 14,327 14,586 18,453
Other long-term liabilities 114,979 110,592 124,946
Guess?, Inc. stockholders’ equity 808,720 777,032 711,074
Noncontrolling interests in subsidiaries 14,064 8,472 8,475
———- ———- ———- Total Liabilities and Stockholders’ Equity $1,259,266 $1,246,566 $1,219,593 ========== ========== ==========
Guess?, Inc. and Subsidiaries Condensed Consolidated Cash Flow Data (in thousands)
Three Months Ended —————— May 2, May 3, 2009 2008 —- —-
Net cash provided by operating activities $43,067 $2,505
Net cash used in investing activities (18,265) (26,573)
Net cash (used in)/ provided by financing activities (7,603) 7,626
Effect of exchange rates on cash 1,313 1,237 —– —–
Net increase/ (decrease) in cash and cash equivalents 18,512 (15,205)
Cash and cash equivalents at the beginning of the year 294,118 275,595 ——– ——– Cash and cash equivalents at the end of the period $312,630 $260,390 ======== ========
Supplemental information:
Depreciation and amortization $14,547 $13,813
Rent 41,691 37,513
Guess?, Inc. and Subsidiaries Retail Store Data U.S. and Canada
Three Months Ended ——————– May 2, May 3, 2009 2008 ——— ———
Number of stores at the beginning of the year 425 373
Store openings 6 19
Store closures (2) (1)
— — Number of stores at the end of the period 429 391 === ===
Total store square footage at the end of the period 1,969,000 1,817,000 ========= =========
SOURCE Guess?, Inc.
Standish Mellon Asset Management to Launch TALF Strategies
Sees advantage to early investors in program
BOSTON, June 4 /PRNewswire-FirstCall/ — Standish Mellon Asset Management Company LLC, the fixed income specialist for BNY Mellon Asset Management, will offer investment strategies that will enable its clients to invest in securities related to the Term Asset-Backed Securities Loan Facility (TALF). Standish said it is initiating these strategies because of strong expressions of interest from its clients. It expects to begin investing client money by early July.
“We believe that investors who are the early buyers of asset-backed securities (ABS) in the TALF Program have the potential for the biggest gains,” said Desmond Mac Intyre, president and chief executive officer of Standish. “As more money flows into these investments, the overall spreads should tighten and the opportunities for strong returns will diminish. However, it is important to remember the TALF program is essentially a buy-and-hold strategy which is dependent on strong upfront securities selection and price discovery. That is why our strong research team will be invaluable as we determine which securities are most attractive for our investors.”
Standish will create two separate investment strategies. The first will target new issues of consumer ABS and commercial mortgaged-backed securities (CMBS). The second is designated as an Expanded TALF strategy that will include legacy assets such as non-agency CMBS, consumer ABS and non-agency residential mortgaged-backed securities (RMBS).
“We view the TALF initiative as having the potential to be the most successful of the government programs aimed at resuscitating financial markets,” said Tom Graf, managing director of structured products and global workout solutions. “It is among the least expensive programs, has already established strong momentum, and continues to have growing participation. We stand ready to structure strategies to meet various client needs as they seek to invest in this program.”
All information source BNY Mellon Asset Management as of 31 March 2009 except where noted. The views represented in this document are those of Standish Mellon Asset Management and do not necessarily represent the views of the BNY Mellon Asset Management umbrella organization. This press release is qualified for issuance in the US and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Asset Management to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance.
A Bank of New York Mellon Company(SM)
Notes to Editors:
Standish Mellon Asset Management Company LLC, with $55 billion of assets under management, (as of April 1, 2009), provides investment management services across a broad spectrum of fixed income asset classes. These include corporate credit (investment-grade and high-yield), emerging markets debt (dollar-denominated and local currency), core / core plus and opportunistic (U.S. and global) strategies. The firm also includes assets managed by Standish personnel acting as dual officers of The Dreyfus Corporation and The Bank of New York Mellon, each a subsidiary of The Bank of New York Mellon Corporation.
BNY Mellon Asset Management is the umbrella organization for The Bank of New York Mellon Corporation’s affiliated investment management firms and global distribution companies.
The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $19.5 trillion in assets under custody and administration, $881 billion in assets under management, services more than $11 trillion in outstanding debt and processes global payments averaging $1.8 trillion per day. Additional information is available at www.bnymellon.com.
SOURCE The Bank of New York Mellon Corporation
ICE Reports 11% Increase in Futures ADV for May 2009; CDS Clearing Surpasses $730 Billion in Notional Value
ATLANTA, June 2 /PRNewswire-FirstCall/ — IntercontinentalExchange(R) (NYSE: ICE), a leading operator of regulated global futures exchanges and over-the-counter (OTC) markets, today reported total futures volume of 20.1 million contracts in May 2009, an increase of 6% from May 2008. Average daily volume (ADV) was 967,182 contracts for the month, up 11% over May 2008 ADV.
Year-to-date through May 31, ADV across ICE’s futures exchanges was 989,795 contracts, an increase of 4% compared to the same period of 2008. ADV for ICE Futures Europe(R) was flat compared to the first five months of 2008 and up 12% at ICE Futures U.S.(R)
European Futures Volume and RPC
ICE Futures Europe is ICE’s London-based energy futures exchange. ICE Futures Europe reported total volume of 12,402,248 contracts in May, a 12% decrease from 14,145,967 in May 2008. ADV was 590,583, a decline of 8% compared to the year-ago month.
The three-month average rate per contract (RPC) for May 2009 was $1.61. RPC averaged $1.61 and $1.57 for the three months ended April and March, respectively. RPC is calculated by dividing transaction revenues by contract volume, and can vary based on pricing, customer and product mix.
Open interest for ICE Futures Europe was a record 2,620,898 contracts on May 31, 2009, compared to 2,102,574 contracts on December 31, 2008.
North American Futures Volume and RPC
ICE’s agricultural, soft commodity, financial and index futures trade on ICE’s North American futures exchanges. Total volume at ICE Futures U.S. was 7,391,418 contracts during the month of May, 61% higher than 4,598,435 contracts in May 2008. ADV was 362,047 for the month, an increase of 66% from May 2008.
The three-month average RPC for May 2009 was $2.23 for ICE Futures U.S. agricultural contracts. RPC averaged $2.33 and $2.34 for the three months ended April and March, respectively. RPC for ICE Futures U.S. financial contracts averaged $0.77 for the three months ended May 2009. RPC averaged $0.77 and $0.78 for the three months ended April and March, respectively.
Open interest for ICE Futures U.S. was 3,109,377 contracts on May 31, 2009, compared to 3,028,877 contracts on December 31, 2008.
ICE Futures Canada(R) recorded total monthly volume of 291,030 contracts in May 2009, an increase of 25% from May 2008. ADV was 14,552, up 31% from May 2008. Open interest for ICE Futures Canada was 125,476 as of May 31, 2009, compared to 97,673 contracts on December 31, 2008.
ICE Futures: Rolling Three-Month Average Rate per Contract
Three Months Three Months Three Months Product Line Ending Ending Ending May 2009 April 2009 March 2009
ICE Futures Europe $1.61 $1.61 $1.57 ICE Futures U.S. Ag $2.23 $2.33 $2.34 ICE Futures U.S. Fin $0.77 $0.77 $0.78
Additional May 2009 Information:
* Through May 29, ICE Trust(TM) has cleared $731 billion in notional value of CDS index contracts, resulting in $118 billion of open interest. * The Royal Bank of Scotland plc and HSBC Bank USA became operational as clearing members of ICE Trust, bringing the total to 12 clearing members. * ICE was named Exchange of the Year for 2009 by Energy Risk magazine. * Trading days in May 2009: o ICE Futures Europe: 21 o ICE Futures U.S. Agricultural: 20 o ICE Futures U.S. Currency and Index: 21 o ICE Futures Canada: 20 * ICE Futures Europe product records achieved in May 2009: o Gas Oil futures achieved record open interest of 522,240. o Brent Crude futures achieved record open interest of 721,844. o Open interest records were established for U.K. natural gas and several coal and emissions contracts.
Financial Guidance Clarification:
* As previously disclosed, ICE Trust entered into a profit sharing arrangement with the former shareholders of The Clearing Corporation (TCC), which was acquired by ICE in March 2009. ICE will retain approximately 86% of profits earned at ICE Trust through December 31, 2009. From January 2010, ICE Trust will retain 50% of the profits, with the remaining 50% distributed to TCC’s former shareholders.
ICE Futures: May 2009 Average Daily Volume by Product
ADV ADV ADV May May % Change Product Line 2009 2008
ICE Brent Crude futures 258,787 304,656 -15.1 ICE WTI Crude futures 160,800 228,719 -29.7 ICE Gas Oil futures 136,249 97,494 39.8 Other contracts (1) 34,747 12,130 186.5 Total ICE Futures Europe 590,583 642,999 -8.2 Russell 2000((R)) mini futures & options 141,206 4,432 3,085.9 Sugar No. 11 futures & options 148,767 122,878 21.1 Other agricultural commodity contracts (2) 62,810 77,916 -19.4 Currency futures (3) 2,185 5,560 -60.7 Index futures (4) 6,818 6,766 0.8 Other contracts (5) 261 595 -56.0 Total ICE Futures U.S. 362,047 218,147 66.0 Total ICE Futures Canada (6) 14,552 11,069 31.5 —— —— —- TOTAL FUTURES CONTRACTS 967,182 872,215 11%
(1) “Other contracts” include ICE Middle East Sour Crude futures; ICE Heating Oil futures; ICE Unleaded Gasoline Blendstock (RBOB) futures; ICE UK Natural Gas futures; ICE ECX EUA futures; ICE ECX CER futures; ICE UK Electricity futures; ICE Coal futures; ICE Brent options; ICE WTI options, ICE Gas Oil options; ICE ECX EUA options and ICE ECX CER options. The ICE ECX EUA futures and options contracts and the ICE ECX CER futures and options contracts are the result of a cooperative relationship between ICE Futures Europe and the Chicago Climate Exchange, Inc. and its subsidiary, the European Climate Exchange. ICE Futures Europe shares in the revenue derived from the ECX EUA and ECX CER futures and options contracts. (2) “Other agricultural commodity contracts” include futures and/or options for Cocoa, Coffee “C”, Cotton No. 2, Orange Juice, Sugar No. 14 and Sugar No. 16. (3) “Currency futures” include futures for foreign exchange products and ICE Millions contracts. (4) “Index futures” include futures for the U.S. Dollar Index(R), Russell 2000 (full size), Russell 1000(R), Russell 1000 mini, the Continuous Commodity Index, the Euro Index, and the NYSE Composite. The transition of the Russell Index futures and options contracts to exclusive trading on ICE occurred in September 2008. (5) “Other contracts” include options on foreign exchange futures and options on index futures, excluding Russell 2000 mini options. (6) “ICE Futures Canada” includes futures and options for Canola and Western Barley.
Monthly RPC and volumes are estimated using best available current information. Final figures are reported in ICE’s quarterly and annual filings with the Securities and Exchange Commission.
Historical futures volume and OTC commission data can be found at:
http://ir.theice.com/supplemental.cfm
About IntercontinentalExchange
IntercontinentalExchange(R) (NYSE: ICE) operates leading regulated exchanges, trading platforms and clearing houses serving the global markets for agricultural, credit, currency, emissions, energy and equity index markets. ICE Futures Europe(R) trades half of the world’s crude and refined oil futures. ICE Futures U.S.(R) and ICE Futures Canada(R) list agricultural, currency and Russell Index markets. ICE offers trade execution and processing for the credit derivatives markets through Creditex and clearing through ICE Trust(TM). A component of the Russell 1000(R) and S&P 500 indexes, ICE(R) serves customers in more than 50 countries and is headquartered in Atlanta, with offices in New York, London, Chicago, Winnipeg, Calgary, Houston and Singapore. www.theice.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding IntercontinentalExchange’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the SEC on February 11, 2009.
SOURCE IntercontinentalExchange
