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8-K - 8-K - GFI Group Inc.a13-17234_18k.htm

Exhibit 99.1

 

GFI Group Inc. Announces Second Quarter 2013 Results; Declares Quarterly Cash Dividend

 

·                 GAAP Total Revenues: $242.3 Million; Non-GAAP Total Revenues: $241.1 Million

·                 GAAP Net Revenues: $198.4 Million; Non-GAAP Net Revenues: $197.3 Million

·                 Software, Analytics and Market Data revenues: $21.8 Million, up 6.5% year-over-year

·                 GAAP Net Income: $6.7 Million or $0.05 per Diluted Share

·                 Non-GAAP Net Income: $7.1 Million or $0.06 per Diluted Share

·                 Cash Earnings: $27.6 Million or $0.22 per Diluted Share

 

New York, July 25, 2013GFI Group Inc. (NYSE: GFIG), a leading provider of wholesale brokerage services, clearing services, and electronic execution and trading support products for global financial markets,  reported today its financial results for the second quarter ended June 30, 2013.

 

Highlights

 

·                  Non-GAAP net revenues increased 0.8% to $197.3 million in the second quarter of 2013, from $195.8 million in the second quarter of 2012.

 

·                  Brokerage revenues for the second quarter of 2013 declined 0.8% to $174.0 million, from $175.4 million in the second quarter of 2012.  Revenues from trading software, analytics and market data products for the second quarter of 2013 were $21.8 million, up 6.5% from $20.5 million in the second quarter of 2012.

 

·                  Compensation and employee benefits expense in the second quarter of 2013 was 68.2% of net revenues on a non-GAAP basis, as compared to 68.8% in the second quarter of 2012.

 

·                  Non-compensation expenses were 27.2% on a non-GAAP basis in the second quarter of 2013 compared with 28.9% in the second quarter of 2012.

 

·                  Net income for the second quarter of 2013 was $7.1 million, or $0.06 per diluted share, on a non-GAAP basis compared with $2.7 million or $0.02 per diluted share, in the second quarter of 2012.

 

·                  Cash earnings for the three month period ended June 30, 2013 were $27.6 million, or $0.22 per diluted share, compared with $22.8 million, or $0.19 per diluted share, for the same period in 2012.

 

·                  For the six months ended June 30, 2013, non-GAAP net revenues decreased 6.0% to $397.1 million, from $422.3 million in 2012.  Net income on a non-GAAP basis was $14.3 million, or $0.11 per diluted share, for the six months ended June 30, 2013, compared to $11.1 million, or $0.09 per diluted share, for the same period in 2012.

 

Colin Heffron, Chief Executive Officer commented: “GFI’s non-GAAP net revenues increased over the previous year for the first time since the fourth quarter of 2011 aided by heightened market volatility, strength in emerging markets and fixed income products, continued growth in non-brokerage revenues and increased activity on GFI’s hybrid-electronic trading platforms.  These growth areas offset weakness in equity and commodity product revenues.

 

“We remain focused on reducing GFI’s cost base and expect our cost initiatives to continue to improve GFI’s profitability in future periods.   We are on track to reach in excess of $60 million in total 2013 cost savings, as compared to 2011 expense levels.

 

1



 

“Last week we filed our application with the Commodities Futures Trading Commission (“CFTC”) to become a multi-asset Swap Execution Facility (“SEF”) under the CFTC’s recently announced SEF rules.  Our commitment to technology innovation and investment enabled us to be one of the first to file for SEF designation with the CFTC.

 

“GFI’s preliminary July 2013 total revenues are tracking down approximately 5% compared with July last year.

 

“GFI’s cash earnings were $0.22 per diluted share or approximately $28 million in the second quarter of 2013.  We are pleased to declare a quarterly cash dividend to GFI shareholders of $0.05 per share.”

 

GAAP Results

 

GAAP net revenues were $198.4 million in the second quarter of 2013, compared with $202.8 million in the second quarter of 2012.  GAAP net income was $6.7 million, or $0.05 per diluted share, in the second quarter of 2013, compared with $5.3 million, or $0.04 per diluted share, in the second quarter of 2012.  Compensation and employee benefits expense in the second quarter of 2013 was 67.8% on a GAAP basis, as compared with 66.9% in the second quarter of 2012.  Non-compensation expenses, on a GAAP basis, for the second quarter of 2013 were $56.2 million, or 28.3% of net revenues, compared with $59.5 million, or 29.4% of net revenues, in the second quarter of 2012.

 

Revenues

 

Net revenues were $197.3 million on a non-GAAP basis in the second quarter of 2013, as compared with $195.8 million in the second quarter of 2012.

 

Brokerage revenues were $174.0 million compared with $175.4 million in the second quarter of 2012.  Revenues from fixed income and financial products were up 10.6% and 13.4%, respectively, compared with the second quarter of 2012, while equity and commodity product revenues were down 15.1% and 14.8%, respectively, over the same period.  By geographic region, brokerage revenues for the second quarter of 2013 increased 2.2% in the Americas and 7.7% in Asia-Pacific, while decreasing 5.3% in Europe, Middle East and Africa, as compared with the same quarter of 2012.

 

Revenues from trading software, analytics and market data products for the second quarter of 2013 were $21.8 million, up 6.5% from $20.5 million in the second quarter of 2012.

 

Expenses

 

For the second quarter of 2013, non-GAAP compensation and employee benefits expense was $134.6 million compared with $134.7 million in the second quarter of 2012.  Compensation and employee benefits expense was 68.2% of net revenues on a non-GAAP basis in the second quarter of 2013, compared with 68.8% of net revenues in the second quarter of 2012.   Non-compensation expenses, on a non-GAAP basis, for the second quarter of 2013 were $53.6 million, or 27.2% of net revenues, compared with $56.6 million, or 28.9% of net revenues, in the second quarter of 2012.

 

2



 

Earnings

 

Non-GAAP net income for the second quarter of 2013 was $7.1 million, or $0.06 per diluted share, compared with $2.7 million, or $0.02 per diluted share, in the second quarter of 2012.

 

GFI’s effective non-GAAP tax rate for the first half of 2013 was 20.0% as compared to a full year rate of 11.9% for 2012.  The increase is primarily driven by a release of a tax liability in 2012, creating an unusually low rate for that year.

 

Six Month Results

 

GAAP net revenues were $399.9 million for the six months ended June 30, 2013, compared with $429.5 million for the same period 2012.   GAAP net income was $11.4 million, or $0.09 per diluted share, in the first half of 2013, compared with $10.1 million, or $0.08 per diluted share, in the prior year period.  Compensation and employee benefits expense in the first half of 2013 was 67.9% on a GAAP basis, in-line with the prior year results for the same period.  Non-compensation expenses, on a GAAP basis, for the six months ended June 30, 2013 were $120.6 million, or 30.2% of net revenues, compared with $122.7 million, or 28.6% of net revenues, in the first half of 2012.

 

On a non-GAAP basis, net revenues for the six months ended June 30, 2013 were $397.1 million, compared to $422.3 million for the same period in 2012.  Net income was $14.3 million on a non-GAAP basis, or $0.11 per diluted share, for the six months ended June 30, 2013, compared with net income of $11.1 million, or $0.09 per diluted share, for the same period in 2012.

 

Dividend Declaration

 

The Board of Directors of GFI has declared a quarterly cash dividend of $0.05 per share payable on August 30, 2013 to shareholders of record as of August 15, 2013.

 

Non-GAAP Financial Measures

 

To supplement GFI’s unaudited financial statements presented in accordance with GAAP, the Company uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies.  In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by GFI include non-GAAP total revenues, non-GAAP net revenues, non-GAAP provision for or benefit from income taxes, non-GAAP net income, non-GAAP diluted earnings per share, cash earnings and cash earnings per share.  These non-GAAP financial measures currently exclude from the Company’s statement of income amortization of acquired intangibles and certain other items that management views as non-operating, non-recurring or non-cash as detailed in the reconciliation included in the financial tables attached to this release.

 

In addition, GFI may consider whether other significant non-operating, non-recurring or non-cash items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.  The non-GAAP financial measures also take into account estimated adjustments to income tax expense with respect to the excluded items.

 

3



 

GFI believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook. GFI’s management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company’s performance to prior periods.

 

In addition to the reasons stated above, which are generally applicable to each of the items GFI excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude amortization of acquired intangibles because when analyzing the operating performance of an acquired business, GFI’s management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity, as compared to the purchase price paid) without taking into consideration any charges for allocations made for accounting purposes. Further, because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets, when analyzing the operating performance of an acquisition in subsequent periods, the Company’s management excludes the GAAP impact of acquired intangible assets on its financial results. GFI believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

 

A reconciliation of these non-GAAP financial measures to GAAP is included in the financial tables attached to this release.

 

Conference Call

 

GFI has scheduled an investor conference call to discuss its second quarter results at 8:30 a.m. (Eastern Time) on Friday, July 26, 2013. Those wishing to listen to the live conference call via telephone should dial 1-800-860-2442 in North America and +1-412-858-4600 outside of North America, and ask for “GFI”.

 

A live audio web cast of the conference call will be available on the Investor Relations section of GFI’s Website. For web cast registration information, please visit: http://www.gfigroup.com. Following the conference call, an archived recording will be available.

 

Supplementary Financial Information

 

GFI has posted details of its historical monthly brokerage revenues on the Investor Relations page of its web site under the heading Supplementary Financial Information. The Company currently plans to post this information quarterly in conjunction with its announcement of earnings, but does not undertake a responsibility to continue to provide or update such information.

 

About GFI Group Inc.

 

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage services, clearing services, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of fixed income, financial, equity and commodity instruments.

 

4



 

Headquartered in New York, GFI was founded in 1987 and employs more than 2,000 people with additional offices in London, Paris, Nyon, Hong Kong, Seoul, Singapore, Manila, Tokyo, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Lima, Mexico City, Dubai, Dublin, Tel Aviv, and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

 

Forward-looking Statement

 

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Investor Relations Contacts:

 

Christopher Giancarlo

Executive Vice President

investorinfo@gfigroup.com

 

Chris Ann Casaburri Grimmett

Investor Relations Manager

212-968-4167

chris.grimmett@gfigroup.com

 

Media Contact:

Patricia Gutierrez

Vice President - Public Relations

212-968-2964

patricia.gutierrez@gfigroup.com

 

- FINANCIAL TABLES FOLLOW -

 

5



 

GFI Group Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

(In thousands except share and per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues

 

 

 

 

 

 

 

 

 

Agency commissions

 

$

122,476

 

$

123,457

 

$

249,048

 

$

268,037

 

Principal transactions

 

51,562

 

51,964

 

101,627

 

114,552

 

Total brokerage revenues

 

174,038

 

175,421

 

350,675

 

382,589

 

Clearing services revenues

 

39,439

 

29,635

 

77,503

 

57,762

 

Interest income from clearing services

 

431

 

382

 

1,168

 

903

 

Equity in net earnings of unconsolidated businesses

 

2,300

 

2,478

 

5,359

 

3,898

 

Software, analytics and market data

 

21,808

 

20,468

 

43,966

 

40,467

 

Other income

 

4,262

 

9,346

 

7,999

 

12,286

 

Total revenues

 

242,278

 

237,730

 

486,670

 

497,905

 

 

 

 

 

 

 

 

 

 

 

Interest and transaction-based expenses

 

 

 

 

 

 

 

 

 

Transaction fees on clearing services

 

38,424

 

28,606

 

75,332

 

55,568

 

Transaction fees on brokerage services

 

5,335

 

6,153

 

11,142

 

12,278

 

Interest expense from clearing services

 

87

 

158

 

247

 

598

 

Total interest and transaction-based expenses

 

43,846

 

34,917

 

86,721

 

68,444

 

Revenues, net of interest and transaction-based expenses

 

198,432

 

202,813

 

399,949

 

429,461

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

134,613

 

135,650

 

271,628

 

291,428

 

Communications and market data

 

13,743

 

15,694

 

27,330

 

31,360

 

Travel and promotion

 

7,857

 

9,285

 

15,918

 

19,374

 

Rent and occupancy

 

7,039

 

6,884

 

14,251

 

13,676

 

Depreciation and amortization

 

8,334

 

9,108

 

16,642

 

18,256

 

Professional fees

 

6,385

 

5,377

 

13,112

 

11,545

 

Interest on borrowings

 

7,175

 

6,527

 

14,863

 

13,342

 

Other expenses

 

5,699

 

6,671

 

18,523

 

15,144

 

Total other expenses

 

190,845

 

195,196

 

392,267

 

414,125

 

 

 

 

 

 

 

 

 

 

 

Income before provision for (benefit from) income taxes

 

7,587

 

7,617

 

7,682

 

15,336

 

 

 

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

719

 

2,282

 

(4,140

)

5,061

 

 

 

 

 

 

 

 

 

 

 

Net income before attribution to non-controlling stockholders

 

6,868

 

5,335

 

11,822

 

10,275

 

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interests

 

177

 

15

 

457

 

163

 

GFI’s net income

 

$

6,691

 

$

5,320

 

$

11,365

 

$

10,112

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.06

 

$

0.05

 

$

0.10

 

$

0.09

 

Diluted earnings per share

 

$

0.05

 

$

0.04

 

$

0.09

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

118,646,703

 

117,186,760

 

117,024,375

 

116,342,469

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

126,603,146

 

122,978,459

 

126,080,497

 

124,164,300

 

 



 

GFI Group Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

As a Percentage of Net Revenues

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenues

 

 

 

 

 

 

 

 

 

Agency commissions

 

61.7

%

60.9

%

62.3

%

62.4

%

Principal transactions

 

26.0

%

25.6

%

25.4

%

26.7

%

Total brokerage revenues

 

87.7

%

86.5

%

87.7

%

89.1

%

Clearing services revenues

 

19.9

%

14.6

%

19.4

%

13.4

%

Interest income from clearing services

 

0.2

%

0.2

%

0.3

%

0.2

%

Equity in net earnings of unconsolidated businesses

 

1.2

%

1.2

%

1.3

%

0.9

%

Software, analytics and market data

 

11.0

%

10.1

%

11.0

%

9.4

%

Other income

 

2.1

%

4.6

%

2.0

%

2.9

%

Total revenues

 

122.1

%

117.2

%

121.7

%

115.9

%

 

 

 

 

 

 

 

 

 

 

Interest and transaction-based expenses

 

 

 

 

 

 

 

 

 

Transaction fees on clearing services

 

19.4

%

14.1

%

18.8

%

12.9

%

Transaction fees on brokerage services

 

2.7

%

3.0

%

2.8

%

2.9

%

Interest expense from clearing services

 

0.0

%

0.1

%

0.1

%

0.1

%

Total interest and transaction-based expenses

 

22.1

%

17.2

%

21.7

%

15.9

%

Revenues, net of interest and transaction-based expenses

 

100.0

%

100.0

%

100.0

%

100.0

%

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

67.8

%

66.9

%

67.9

%

67.9

%

Communications and market data

 

6.9

%

7.7

%

6.8

%

7.3

%

Travel and promotion

 

4.0

%

4.6

%

4.0

%

4.5

%

Rent and occupancy

 

3.5

%

3.4

%

3.6

%

3.2

%

Depreciation and amortization

 

4.2

%

4.5

%

4.2

%

4.2

%

Professional fees

 

3.2

%

2.7

%

3.3

%

2.7

%

Interest on borrowings

 

3.6

%

3.2

%

3.7

%

3.1

%

Other expenses

 

2.9

%

3.3

%

4.6

%

3.5

%

Total other expenses

 

96.1

%

96.3

%

98.1

%

96.4

%

 

 

 

 

 

 

 

 

 

 

Income before provision for (benefit from) income taxes

 

3.9

%

3.7

%

1.9

%

3.6

%

 

 

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

0.4

%

1.1

%

-1.0

%

1.2

%

 

 

 

 

 

 

 

 

 

 

Net income before attribution to non-controlling stockholders

 

3.5

%

2.6

%

2.9

%

2.4

%

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interests

 

0.1

%

0.0

%

0.1

%

0.0

%

GFI’s net income

 

3.4

%

2.6

%

2.8

%

2.4

%

 



 

GFI Group Inc. and Subsidiaries

Selected Financial Data (unaudited)

(Dollars in thousands except per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Brokerage Revenues by Product Categories:

 

 

 

 

 

 

 

 

 

Fixed Income

 

$

48,578

 

$

43,904

 

$

95,320

 

$

105,415

 

Financial

 

54,414

 

47,977

 

106,330

 

98,132

 

Equity

 

31,106

 

36,645

 

64,322

 

74,178

 

Commodity

 

39,940

 

46,895

 

84,703

 

104,864

 

 

 

 

 

 

 

 

 

 

 

Total brokerage revenues

 

$

174,038

 

$

175,421

 

$

350,675

 

$

382,589

 

 

 

 

 

 

 

 

 

 

 

Brokerage Revenues by Geographic Region:

 

 

 

 

 

 

 

 

 

Americas

 

$

72,704

 

$

71,130

 

$

141,483

 

$

153,206

 

Europe, Middle East, and Africa

 

79,912

 

84,408

 

169,254

 

187,016

 

Asia-Pacific

 

21,422

 

19,883

 

39,938

 

42,367

 

 

 

 

 

 

 

 

 

 

 

Total brokerage revenues

 

$

174,038

 

$

175,421

 

$

350,675

 

$

382,589

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Condition Data:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

179,123

 

$

227,441

 

 

 

 

 

Cash held at clearing organizations, net of customer cash

 

53,661

 

19,636

 

 

 

 

 

GFI’s total balance sheet cash

 

232,784

 

247,077

 

 

 

 

 

Balance sheet cash per share

 

1.93

 

2.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (1)

 

1,629,489

 

1,180,061

 

 

 

 

 

Total debt

 

250,000

 

250,000

 

 

 

 

 

Stockholders’ equity

 

426,707

 

425,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Statistical Data:

 

 

 

 

 

 

 

 

 

Brokerage personnel headcount (2)

 

1,162

 

1,188

 

 

 

 

 

Employees

 

2,053

 

2,062

 

 

 

 

 

Broker productivity for the period (3)

 

$

150

 

$

125

 

 

 

 

 

 


(1)                                 Total assets include receivables from brokers, dealers and clearing organizations of $722.3 million and $252.7 million at June 30, 2013 and December 31, 2012, respectively. These receivables primarily represent securities transactions entered into in connection with our matched principal business which have not settled as of their stated settlement dates, as well as balances with clearing organizations. These receivables are substantially offset by corresponding payables to brokers, dealers and clearing organizations and to clearing customers, for these unsettled transactions.

 

(2)                                 Brokerage personnel headcount includes brokers, traders, trainees and clerks.

 

(3)                                 Broker productivity is calculated as brokerage revenues divided by average monthly brokerage personnel headcount for the quarter.

 



 

GFI Group Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)

(In thousands except share and per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

GAAP revenues

 

$

242,278

 

$

237,730

 

$

486,670

 

$

497,905

 

Mark-to-market loss (gain) on forward hedges of future foreign currency revenues

 

319

 

(1,625

)

(650

)

(321

)

Fair value mark-to-market gain on future purchase commitment

 

(1,459

)

(5,190

)

(2,203

)

(7,017

)

Fair value mark-to-market (gain) loss on warrants on investee shares

 

 

(188

)

22

 

128

 

Total Non-GAAP Revenues

 

241,138

 

230,727

 

483,839

 

490,695

 

 

 

 

 

 

 

 

 

 

 

GAAP interest and transaction-based expenses

 

43,846

 

34,917

 

86,721

 

68,444

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP revenues, net of interest and transaction-based expenses

 

197,292

 

195,810

 

397,118

 

422,251

 

 

 

 

 

 

 

 

 

 

 

GAAP other expenses

 

190,845

 

195,196

 

392,267

 

414,125

 

Amortization of intangibles

 

(2,471

)

(2,934

)

(4,969

)

(5,840

)

Closure of certain desks in Asia

 

 

(941

)

 

(941

)

Writedown of available for sale securities

 

 

 

 

(2,700

)

Expenses from start-up operations

 

(160

)

 

(8,573

)

 

Non-GAAP other expenses

 

188,214

 

191,321

 

378,725

 

404,644

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP pre-tax income

 

9,078

 

4,489

 

18,393

 

17,607

 

 

 

 

 

 

 

 

 

 

 

Income tax impact on Non-GAAP items

 

1,097

 

(534

)

5,164

 

1,278

 

Plus: Non-operating adjustment for the recognition of a tax benefit related to interest income between international affiliates

 

 

 

2,655

 

 

Non-GAAP provision for income taxes

 

1,816

 

1,748

 

3,679

 

6,339

 

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interests

 

177

 

15

 

457

 

163

 

 

 

 

 

 

 

 

 

 

 

GFI’s Non-GAAP net income

 

$

7,085

 

$

2,726

 

$

14,257

 

$

11,105

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted net income per share

 

$

0.06

 

$

0.02

 

$

0.11

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

Pre-tax adjustments to arrive at cash earnings

 

 

 

 

 

 

 

 

 

Amortization of RSUs

 

7,360

 

7,830

 

15,502

 

16,882

 

Amortization of prepaid sign-on and retention bonuses

 

7,278

 

6,041

 

13,390

 

12,636

 

Depreciation and other amortization

 

5,863

 

6,174

 

11,673

 

12,416

 

Total pre-tax adjustments to cash earnings

 

20,501

 

20,045

 

40,565

 

41,934

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP pre-tax cash earnings from ongoing operations

 

29,579

 

24,534

 

58,958

 

59,541

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP provision for income taxes

 

1,816

 

1,748

 

3,679

 

6,339

 

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interests

 

177

 

15

 

457

 

163

 

 

 

 

 

 

 

 

 

 

 

GFI’s Non-GAAP net cash earnings from ongoing operations

 

$

27,586

 

$

22,771

 

$

54,822

 

$

53,039

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP cash earnings per share

 

$

0.22

 

$

0.19

 

$

0.43

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

126,603,146

 

122,978,459

 

126,080,497

 

124,164,300

 

 



 

GFI Group Inc.

Adjusted EBITDA

 

($ in ‘000’s, except share and per share amounts)

 

2Q12

 

3Q12

 

4Q12

 

1Q13

 

2Q13

 

Last twelve
months (LTM)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per U.S. GAAP before attribution to non-controlling interests

 

$

5,335

 

$

(8,805

)

$

(11,114

)

$

4,954

 

$

6,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Net (income) loss attributable to non-controlling interests

 

(15

)

112

 

(258

)

(280

)

(177

)

 

 

GFI’s net income (loss)

 

5,320

 

(8,693

)

(11,372

)

4,674

 

6,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Extraordinary and other non-recurring pretax items (i.e., non-GAAP adjustments)

 

(3,128

)

6,457

 

3,013

 

9,220

 

1,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Interest expense

 

6,685

 

6,820

 

7,098

 

7,848

 

7,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Interest income

 

(622

)

(614

)

(849

)

(928

)

(579

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Income tax expense (benefit)

 

2,282

 

1,638

 

1,688

 

(4,859

)

719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Depreciation and amortization expense (excluding intangibles)

 

6,174

 

6,324

 

6,591

 

5,810

 

5,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Amortization of RSUs

 

7,830

 

7,751

 

7,732

 

8,142

 

7,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: Amortization of prepaid sign-on and retention bonuses

 

6,041

 

6,296

 

6,540

 

6,112

 

7,278

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

30,582

 

$

25,979

 

$

20,441

 

$

36,019

 

$

36,085

 

$

118,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

 

 

 

 

 

 

 

 

 

 

126,080,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA per share (pre-tax)

 

 

 

 

 

 

 

 

 

 

 

$

0.94