Duff & Phelps income down in 3rd quarter

NEW YORK - Duff & Phelps Corp. on Thursday reported a decline in net income in the third quarter but higher overall revenue despite weakness in its investment banking business.

The financial advisory and investment banking firm posted net income of $153,000, or a penny a share, down from $10.7 million in the July-September quarter of 2007.

Third-quarter revenue rose to $99.1 million from $87.6 million a year earlier. Revenue from investment banking declined, however, to $16.1 million from $20.5 million, in a climate of financial strain.

Analysts polled by Thomson Reuters had forecast, on average, income of 27 cents a share in the latest quarter. Analysts' estimates typically exclude one-time items.

Duff & Phelps' adjusted earnings before interest, taxes, depreciation, amortization and share-based compensation, known as EBITDA, fell to $15.8 million from $17.1 million in the third quarter of 2007.

Because of the company's recent acquisitions and related capital investments, and its having gone public in September 2007, Duff & Phelps said it believes the adjusted EBITDA measure provides a useful benchmark for assessing financial performance.

The New York-based company agreed last summer to acquire the consulting firm Lumin Expert Group and Kane Reece Associates Inc., a valuation consultant, for undisclosed amounts. Prior to that, Duff & Phelps said it had established presences in Shanghai, Hong Kong and Beijing, marking its entry into the Chinese market.

Duff & Phelps shares dropped $2.71, or 16.9 percent, to end at $13.36 in trading Thursday. They have traded between $10.62 and $22.76 over the past 52 weeks.

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