GHL » Topics » Note 14 - Business Information

This excerpt taken from the GHL 10-K filed Mar 11, 2005.

Note 14 – Business Information

     The Company’s activities as an investment banking firm constitute a single business segment, with two principal sources of revenue:

  • Financial advisory, which includes advice on mergers, acquisitions, restructuring and similar corporate finance matters; and
  • Merchant banking, which includes the management of outside capital invested in GCP and the Company’s principal investments in such fund.

     The Company has principally earned its revenues from advisory fees earned from clients in large part upon the successful completion of the client’s transaction or restructuring. Financial advisory revenues represented approximately 86%, 96% and 95%, of the Company’s total revenues for the years ended December 31, 2004, 2003 and 2002 respectively.

     The Company had separate clients in 2004 and 2003 which comprised 10% and 17% of total revenue, respectively. The Company’s revenues attributable to these clients related to an engagement similar in nature to all of the Company’s other advisory engagements.

     The Company’s financial advisory and merchant banking activities are closely aligned and have similar economic characteristics. Generally, the Company’s professionals and employees are treated as a common pool of available resources and the related compensation and other Company costs are not directly attributable to either particular revenue source. In reporting to management, the Company distinguishes the sources of its investment banking revenues between financial advisory and merchant banking. However, management does not evaluate other financial data or operating results such as operating expenses, profit and loss or assets by its financial advisory and merchant banking activities.

     Since the financial markets are global in nature, the Company generally manages its business based on the operating results of the enterprise taken as whole, not by geographic region. The Company’s investment banking

F-17






activities are conducted out of its offices in New York, London and Frankfurt. For reporting purposes, the geographic regions are the locations in which the Company retains its employees, the United States and Europe.

     The following table presents information about the Company by geographic region, after elimination of all significant inter-company accounts and transactions:

  As of or for the Years Ended December 31,  
 
 
  2004     2003     2002  
 

 

 

 
 
(in thousands)
 
Total Revenues                  
   United States $ 95,332   $ 76,484   $ 84,080  
   Europe   56,521     50,195     28,528  
 

 

 

 
   Total $ 151,853   $ 126,679   $ 112,608  
 

 

 

 
Income before Minority Interest and Tax                  
   United States $ 38,894   $ 43,054   $ 57,868  
   Europe   24,614     37,607     17,945  
 

 

 

 
   Total $ 63,508   $ 80,661   $ 75,813  
 

 

 

 
Total Assets                  
   United States $ 134,025   $ 33,892   $ 50,689  
   Europe   42,991     26,746     13,105  
 

 

 

 
   Total $ 177,016   $ 60,638   $ 63,794  
 

 

 

 
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki