Refco Group Ltd., LLC has reported total revenues for its quarter ended February 28, 2005 of $1,140.9 million, an increase of $590.1 million, or 107.1%, and $69.5 million, or 6.5%, compared to the quarters ended February 29, 2004 and November 30, 2004, respectively.
Total revenues for the year ended February 28, 2005, were $3,735.5 million, a 99.3% increase from $1,874.3 million for the year ended February 29, 2004. The quarter ended February 28, 2005, was the second full quarter to reflect the increase in expenses resulting from the acquisition of a controlling interest in Refco by Thomas H. Lee Partners, L.P. in a series of related transactions completed on August 5, 2004. Specifically, interest expense and amortization on intangible assets increased significantly as a result of the company’s recapitalization on August 5, 2004.
Consequently, net income for the quarter ended February 28, 2005 was $35.7 million, which represented a decrease of $11.0 million compared to the quarter ended February 29, 2004. While the Company does not believe a comparison of the results for the years ended February 28, 2005, and February 29, 2004, is meaningful because of these increased expenses, both the quarters ended February 28, 2005, and November 30, 2004, included the effect of the transactions for the entire period, and are therefore comparable.
Net income for the fourth quarter decreased $0.4 million, or 1.1%, compared to the quarter ended November 30, 2004. Net income for the year ended February 28, 2005, which included the Transactions expenses, was $176.3 million, a 5.8% decrease from $187.2 million for the year ended February 29, 2004.
Phillip R. Bennett, president and Chief Executive Officer said, “Our results enabled us to voluntarily prepay $150 million of our long-term debt in January 2005 consistent with our previously stated policy of deleveraging. In summary, fiscal 2005’s performance maintained excellent growth in net revenue, net income and cash flow of our business segments. Refco’s global franchise continues to demonstrate the growth consistency of recent years.”