Yahoo Finance KCG ANNOUNCES THIRD QUARTER 2015 RESULTS
KCG ANNOUNCES CONSOLIDATED EARNINGS OF $0.24 PER DILUTED SHARE FOR THE THIRD QUARTER OF 2015
KCG reports consolidated revenues of $377.0 million
and pre-tax earnings of $35.4 million for the quarter
JERSEY CITY, New Jersey - October 30, 2015 - KCG Holdings, Inc. (KCG) today reported consolidated earnings of $21.9 million, or $0.24 per diluted share, for the third quarter of 2015. Included in the $35.4 million of pre-tax income are asset writedowns and other real estate related charges of $34.0 million. Excluding these items, on a non-GAAP basis, third quarter 2015 pre-tax income was $69.4 million. A reconciliation of GAAP to non-GAAP results is included in Exhibit 4.
Select Financial Results | ($ in thousands, except EPS) | ||||
From Continuing Operations | 3Q15 | 2Q15 | 3Q14 | ||
GAAP Revenues | 377,036 | 261,882 | 272,302 | ||
Non-GAAP revenues* | 377,036 | 261,882 | 257,197 | ||
Trading revenues, net | 277,677 | 170,750 | 150,865 | ||
Commissions and fees | 95,027 | 87,370 | 102,663 | ||
GAAP pre-tax income (loss) | 35,419 | (57,114) | (15,235) | ||
GAAP EPS | 0.24 | (0.18) | (0.09) | ||
Non-GAAP pre-tax income (loss)* | 69,448 | 3,068 | (19,518) | ||
* See Exhibit 4 for a reconciliation of GAAP to non-GAAP results
Third Quarter Highlights
Market making set a new quarterly high for exchange-listed U.S. equity share volume and gained approximately two percentage points in market share of retail SEC Rule 605 U.S. equity share volume from the second quarter 2015
Average daily algorithmic execution U.S. equity share volume attributable to institutional clients grew quarter over quarter and year over year
Consolidated legacy direct-to-client market making brands Knight Link (U.S. equities), Get Direct (U.S. Treasuries) and FXMM (currencies) under the KCG Acknowledge brand
Repurchased 1.2 million shares of KCG Class A Common Stock for $12.2 million
Non-GAAP pre-tax income rose 76 percent year to date compared to the first nine months of 2014 while total shares outstanding declined by approximately 21 percent
Daniel Coleman, Chief Executive Officer of KCG, said, "KCG generated strong financial results in the third quarter of 2015 amid an upturn in market conditions in the U.S. equity market. The performance was driven by KCG market making in U.S. equities as well as agency-based trading on behalf of institutional clients. The results for the quarter were lowered due to writedowns for the consolidation of current real estate as well as expenses attributable to the corporate relocation. Notwithstanding, we produced significant growth in non-GAAP pre-tax income while continuing to reduce our total shares outstanding."
Market Making
The Market Making segment encompasses direct-to-client and non-client, exchange-based market making across multiple asset classes and is an active participant in all major cash, options and futures markets in the U.S., Europe and Asia. During the third quarter of 2015, the segment generated total revenues of $299.8 million and pre-tax income of $85.4 million. Excluding expenses related to asset writedowns of $4.4 million, the segment generated pre-tax income of $89.8 million.
During the third quarter of 2015, consolidated U.S. equity dollar volume and realized volatility for the S&P 500 rose sharply. KCG market making set a new quarterly high for exchange-listed share volume and gained approximately two percentage points in market share of retail SEC Rule 605-eligible U.S. equity share volume in spite of continued strong competition. Spreads in U.S. equities widened during August as a result of the market volatility. The results for the segment were negatively impacted by the modest deterioration in market volumes of Asian and European equities.
Mr. Coleman commented, "The market conditions in U.S. equities drove the performance of KCG direct-to-client and non-client market making. In particular, we witnessed a period of elevated, broad-based, intraday volatility in August, which served as a reminder of the significant operational leverage this firm possesses in active markets. We continue to work to diversify and attain scale in strategic asset classes."
In the second quarter of 2015, the segment generated total revenues of $192.3 million and pre-tax income of $4.4 million. Excluding expenses related to accelerated stock-based compensation of $19.8 million, the segment generated pre-tax income of $24.2 million.
In the third quarter of 2014, the segment generated total revenues of $166.6 million and a pre-tax loss of $8.0 million. Excluding expenses related to a reduction in workforce and other employee separations of $2.8 million, the segment generated a pre-tax loss of $5.2 million.
Select Trade Statistics: U.S. Equity Market Making
3Q15 | 2Q15 | 3Q14 | |||
Average daily dollar volume traded ($ millions) | 31,517 | 27,883 | 24,726 | ||
Average daily trades (thousands) | 4,025 | 3,550 | 3,326 | ||
Average daily shares traded (millions) | 4,823 | 5,785 | 5,787 | ||
NYSE and NASDAQ shares traded | 985 | 885 | 727 | ||
OTC Bulletin Board and OTC Market shares traded | 3,838 | 4,900 | 5,060 | ||
Average revenue capture per U.S. equity dollar value traded (bps) | 1.27 | 0.80 | 0.75 |
Global Execution Services
The Global Execution Services segment comprises agency execution services and trading venues. During the third quarter of 2015, the segment generated total revenues of $69.7 million and a pre-tax loss of $1.1 million.
During the third quarter of 2015, institutional trading activity in U.S. equities increased market-wide. Quarter over quarter, KCG grew algorithmic execution and sales trading volume from institutional clients as well as KCG MatchIt ATS volume.
Mr. Coleman commented, "Algorithmic execution on behalf of clients as well as high-touch sales trading performed well given the heightened institutional trading activity in U.S. equities. Algorithmic execution continued to onboard new institutional clients and generate additive trade volumes and revenues. During the quarter, 13 institutional clients began using KCG algorithms and we onboarded an additional 12 new institutional investors as clients. Algorithmic execution volume from institutional clients rose 7 percent quarter over quarter and 30 percent year over year."
In the second quarter of 2015, the segment generated total revenues of $63.5 million and a pre-tax loss of $9.9 million. Excluding expenses related to accelerated stock-based compensation of $8.2 million, the segment generated a pre-tax loss of $1.7 million.
In the third quarter of 2014, the segment generated total revenues of $79.2 million and a pre-tax loss of $1.7 million. Excluding expenses related to a reduction in workforce and other employee separations of $3.6 million, the segment generated pre-tax income of $1.9 million.
Select Trade Statistics: Agency Execution and Trading Venues
3Q15 | 2Q15 | 3Q14 | |||
Average daily KCG algorithmic trading and order routing | 316.8 | 287.0 | 248.2 | ||
Average daily KCG BondPoint fixed income par value | 130.5 | 138.3 | 126.0 |
Corporate and Other
The Corporate and Other segment includes strategic investments and corporate overhead expenses. During the third quarter of 2015, the segment generated total revenues of $7.6 million and a pre-tax loss of $49.0 million. Excluding writedown of assets and other real estate related charges of $29.7 million, the segment generated a pre-tax loss of $19.3 million.
In the second quarter of 2015, the segment generated total revenues of $6.0 million and a pre-tax loss of $51.6 million. Excluding expenses related to accelerated stock-based compensation of $0.8 million, a debt make-whole premium of $16.5 million, writedown of capitalized debt costs of $8.5 million, and other real estate related charges of $6.3 million, the segment generated a pre-tax loss of $19.4 million.
In the third quarter of 2014, the segment generated total revenues of $26.5 million and a pre-tax loss of $5.5 million. Excluding a net gain related to the tradeMONSTER combination with OptionsHouse of $15.1 million and expenses related to a reduction in workforce and other employee separations of $4.2 million and a lease loss accrual of $0.3 million, the segment generated a pre-tax loss of $16.2 million.
Financial Condition
As of September 30, 2015, KCG had $628.2 million in cash and cash equivalents. Total outstanding debt was $495.4 million. The Company had $1.48 billion in stockholders` equity, equivalent to a book value of $15.95 per share and tangible book value of $14.40 per share based on total shares outstanding of 92.5 million, including restricted stock units.
KCG`s headcount was 1,033 full-time employees at September 30, 2015 compared to 1,045 at June 30, 2015.
During the third quarter of 2015, KCG repurchased 1.2 million shares for approximately $12.2 million under the Company`s stock repurchase program.
Conference Call
KCG will hold a conference call to discuss third quarter 2015 financial results starting at 9:00 a.m. Eastern Time today, October 30, 2015. To access the call, dial 888-801-6507 (domestic) or 913-312-1424 (international) and enter passcode 202677. In addition, the call will be webcast at http://edge.media-server.com/m/p/9d4qz3ey/lan/en. Following the conclusion of the call, a replay will be available by selecting a number based on country of origin from a list posted at: https://replaynumbers.conferencinghub.com/index.aspx?confid=202677&passcode=202677 and entering passcode 202677.
Additional information for investors, including a presentation of the third quarter financial results, can be found at http://investors.kcg.com.
Non-GAAP Financial Presentations
KCG believes that certain non-GAAP financial presentations, when taken into consideration with the corresponding GAAP financial presentations, are important in understanding operating results. Selected financial information is included in the non-GAAP financial presentations for the three months ended September 30, 2015, June 30, 2015 and September 30, 2014 and for the nine months ended September 30, 2015 and September 30, 2014. KCG believes the presentations provide a meaningful summary of revenues and results of operations for each of the three and nine month periods. Reconciliations of GAAP to non-GAAP results are included in the schedules in Exhibit 4.
About KCG
KCG is a leading independent securities firm offering investors and clients a range of services designed to address trading needs across asset classes, product types and time zones. The firm combines advanced technology with exceptional client service across market making, agency execution and venues. KCG has multiple access points to trade global equities, fixed income, currencies and commodities via voice or automated execution. www.kcg.com
Certain statements contained herein may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," "positions," "prospects" or "potential," by future conditional verbs such as "will," "would," "should," "could" or "may," or by variations of such words or by similar expressions. These "forward-looking statements" are not historical facts and are based on current expectations, estimates and projections about KCG`s industry, management`s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Any forward-looking statement contained herein speaks only as of the date on which it is made. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, risks associated with: (i) the strategic business combination (the "Mergers") of Knight Capital Group, Inc. ("Knight") and GETCO Holding Company, LLC ("GETCO"); (ii) difficulties and delays in fully realizing cost savings and other benefits of the Mergers and the inability to manage trading strategy performance and sustain revenue and earnings growth; (iii) the sale of KCG Hotspot; (iv) changes in market structure, legislative, regulatory or financial reporting rules, including the increased focus by Congress, federal and state regulators, the SRO`s and the media on market structure issues, and in particular, the scrutiny of high frequency trading, alternative trading systems, market fragmentation, colocation, access to market data feeds, and remuneration arrangements such as payment for order flow and exchange fee structures; (v) past or future changes to KCG`s organizational structure and management; (vi) KCG`s ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by KCG`s customers and potential customers; (vii) KCG`s ability to keep up with technological changes; (viii) KCG`s ability to effectively identify and manage market risk, operational and technology risk (such as the events that affected Knight on August 1, 2012), legal risk, liquidity risk, reputational risk, counterparty and credit risk, international risk, regulatory risk, and compliance risk; (ix) the cost and other effects of material contingencies, including litigation contingencies, and any adverse judicial, administrative or arbitral rulings or proceedings; (x) the effects of increased competition and KCG`s ability to maintain and expand market share; and (xi) the announced plan to relocate KCG`s global headquarters from Jersey City, NJ to New York, NY. The list above is not exhaustive. Because forward looking statements involve risks and uncertainties, the actual results and performance of KCG may materially differ from the results expressed or implied by such statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, KCG also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made herein. Readers should carefully review the risks and uncertainties disclosed in KCG`s reports with the U.S. Securities and Exchange Commission ("SEC"), including those detailed under "Certain Factors Affecting Results of Operations" in the MD&A and in "Risk Factors" in Part I, Item 1A of KCG `s Annual Report on Form 10-K for the year ended December 31, 2014, and in Part II, Item 1A of the Company`s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, and in other reports or documents KCG files with, or furnishes to, the SEC from time to time. This information should be read in conjunction with KCG`s Consolidated Financial Statements and the Notes thereto contained in the Quarterly Report on Form 10-Q for the quarter-ended June 30, 2015, and in other reports or documents KCG files with, or furnishes to, the SEC from time to time.
CONTACTS
Sophie Sohn | Jonathan Mairs |
Communications & Marketing | Investor Relations |
312-931-2299 | 201-356-1529 |
media@kcg.com | jmairs@kcg.com |
KCG HOLDINGS, INC. | Exhibit 1 | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
For the three months ended | ||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | ||||||
(In thousands, except per share amounts) | ||||||||
Revenues | ||||||||
Trading revenues, net | $ | 277,677 | $ | 170,750 | $ | 150,865 | ||
Commissions and fees | 95,027 | 87,370 | 102,663 | |||||
Interest, net | (1,080) | (596) | 139 | |||||
Investment income and other, net | 5,412 | 4,358 | 18,635 | |||||
Total revenues | 377,036 | 261,882 | 272,302 | |||||
Expenses | ||||||||
Employee compensation and benefits | 121,597 | 109,471 | 95,307 | |||||
Execution and clearance fees | 67,502 | 62,598 | 74,058 | |||||
Communications and data processing | 35,256 | 34,240 | 38,576 | |||||
Depreciation and amortization | 23,813 | 20,726 | 20,298 | |||||
Payments for order flow | 17,121 | 14,935 | 15,377 | |||||
Debt interest expense | 9,117 | 9,989 | 7,714 | |||||
Collateralized financing interest | 8,617 | 8,859 | 7,330 | |||||
Occupancy and equipment rentals | 7,472 | 7,474 | 7,672 | |||||
Professional fees | 4,406 | 5,694 | 7,161 | |||||
Business development | 1,846 | 3,025 | 3,163 | |||||
Debt extinguishment charges | - | 25,006 | - | |||||
Writedown of assets and other real estate related charges | 34,029 | 6,327 | 301 | |||||
Other | 10,841 | 10,652 | 10,580 | |||||
Total expenses | 341,617 | 318,996 | 287,537 | |||||
Income (loss) from continuing operations before income taxes | 35,419 | (57,114) | (15,235) | |||||
Income tax expense (benefit) | 13,482 | (37,952) | (5,796) | |||||
Income (loss) from continuing operations, net of tax | 21,937 | (19,162) | (9,439) | |||||
Loss from discontinued operations, net of tax | - | - | (177) | |||||
Net Income (loss) | $ | 21,937 | $ | (19,162) | $ | (9,616) | ||
Basic earnings (loss) per share from continuing operations | $ | 0.24 | $ | (0.18) | $ | (0.09) | ||
Diluted earnings (loss) per share from continuing operations | $ | 0.24 | $ | (0.18) | $ | (0.09) | ||
Basic loss per share from discontinued operations | $ | - | $ | - | $ | - | ||
Diluted loss per share from discontinued operations | $ | - | $ | - | $ | - | ||
Basic earnings (loss) per share | $ | 0.24 | $ | (0.18) | $ | (0.09) | ||
Diluted earnings (loss) per share | $ | 0.24 | $ | (0.18) | $ | (0.09) | ||
Shares used in computation of basic earnings (loss) per share | 91,134 | 108,588 | 110,376 | |||||
Shares used in computation of diluted earnings (loss) per share | 92,079 | 108,588 | 110,376 | |||||
KCG HOLDINGS, INC. | Exhibit 1 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS | (Continued) | ||||
(Unaudited) | |||||
For the nine months ended | |||||
September 30, 2015 | September 30, 2014 | ||||
(In thousands, except per share amounts) | |||||
Revenues | |||||
Trading revenues, net | $ | 657,222 | $ | 615,942 | |
Commissions and fees | 282,358 | 319,696 | |||
Interest, net | (1,699) | 798 | |||
Investment income and other, net | 397,193 | 33,656 | |||
Total revenues | 1,335,074 | 970,092 | |||
Expenses | |||||
Employee compensation and benefits | 337,786 | 321,056 | |||
Execution and clearance fees | 198,573 | 222,801 | |||
Communications and data processing | 103,260 | 113,651 | |||
Depreciation and amortization | 65,154 | 60,224 | |||
Payments for order flow | 47,277 | 55,485 | |||
Debt interest expense | 27,569 | 24,735 | |||
Collateralized financing interest | 25,932 | 19,887 | |||
Occupancy and equipment rentals | 22,286 | 24,192 | |||
Professional fees | 21,281 | 19,900 | |||
Business development | 6,728 | 7,455 | |||
Debt extinguishment charges | 25,006 | 9,552 | |||
Writedown of assets and other real estate related charges | 40,488 | 2,508 | |||
Other | 29,301 | 29,990 | |||
Total expenses | 950,641 | 911,436 | |||
Income from continuing operations before income taxes | 384,433 | 58,656 | |||
Income tax expense | 132,357 | 22,191 | |||
Income from continuing operations, net of tax | 252,076 | 36,465 | |||
Loss from discontinued operations, net of tax | - | (1,497) | |||
Net Income | $ | 252,076 | $ | 34,968 | |
Basic earnings per share from continuing operations | $ | 2.42 | $ | 0.32 | |
Diluted earnings per share from continuing operations | $ | 2.36 | $ | 0.31 | |
Basic loss per share from discontinued operations | $ | - | $ | (0.01) | |
Diluted loss per share from discontinued operations | $ | - | $ | (0.01) | |
Basic earnings per share | $ | 2.42 | $ | 0.31 | |
Diluted earnings per share | $ | 2.36 | $ | 0.30 | |
Shares used in computation of basic earnings (loss) per share | 104,244 | 113,680 | |||
Shares used in computation of diluted earnings (loss) per share | 106,816 | 117,127 | |||
KCG HOLDINGS, INC. | Exhibit 2 | ||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||
(In thousands) | |||||
(Unaudited) | |||||
September 30, 2015 | December 31, 2014 | ||||
ASSETS | |||||
Cash and cash equivalents | $ | 628,150 | $ | 578,768 | |
Cash and cash equivalents segregated under federal and other regulations | 8,400 | 3,361 | |||
Financial instruments owned, at fair value: | |||||
Equities | 2,440,852 | 2,479,910 | |||
Listed options | 194,068 | 144,586 | |||
Debt securities | 214,695 | 82,815 | |||
Other financial instruments | 284 | 60 | |||
Total financial instruments owned, at fair value | 2,849,899 | 2,707,371 | |||
Collateralized agreements: | |||||
Securities borrowed | 1,619,512 | 1,632,062 | |||
Receivable from brokers, dealers and clearing organizations | 1,010,725 | 1,188,833 | |||
Fixed assets and leasehold improvements, less | |||||
accumulated depreciation and amortization | 99,085 | 134,051 | |||
Investments | 111,733 | 100,726 | |||
Goodwill and Intangible assets, less accumulated amortization | 142,807 | 152,594 | |||
Deferred tax asset, net | 180,558 | 154,759 | |||
Assets of business held for sale | - | 40,484 | |||
Other assets | 199,301 | 137,645 | |||
Total assets | $ | 6,850,170 | $ | 6,830,654 | |
LIABILITIES & EQUITY | |||||
Liabilities | |||||
Financial instruments sold, not yet purchased, at fair value: | |||||
Equities | $ | 1,948,136 | $ | 2,069,342 | |
Listed options | 143,610 | 115,362 | |||
Debt securities | 228,277 | 101,003 | |||
Total financial instruments sold, not yet purchased, at fair value | 2,320,023 | 2,285,707 | |||
Collateralized financings: | |||||
Securities loaned | 769,140 | 707,744 | |||
Financial instruments sold under agreements to repurcahse | 1,113,751 | 933,576 | |||
Total collateralized financings | 1,882,891 | 1,641,320 | |||
Payable to brokers, dealers and clearing organizations | 315,078 | 676,089 | |||
Payable to customers | 20,793 | 22,110 | |||
Accrued compensation expense | 132,057 | 114,559 | |||
Accrued expenses and other liabilities | 143,300 | 136,977 | |||
Income taxes payable | 62,062 | - | |||
Capital lease obligations | 3,221 | 6,700 | |||
Liabilities of business held for sale | - | 2,356 | |||
Debt | 495,372 | 422,259 | |||
Total liabilities | 5,374,797 | 5,308,077 | |||
Equity | |||||
Class A Common Stock | 1,061 | 1,275 | |||
Additional paid-in capital | 1,435,073 | 1,369,298 | |||
Retained earnings | 195,091 | 272,780 | |||
Treasury stock, at cost | (156,159) | (122,909) | |||
Accumulated other comprehensive income | 307 | 2,133 | |||
Total equity | 1,475,373 | 1,522,577 | |||
Total liabilities and equity | $ | 6,850,170 | $ | 6,830,654 | |
KCG HOLDINGS, INC. | Exhibit 3 | ||||||||
PRE-TAX EARNINGS (LOSS) FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT* | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
For the three months ended | |||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||
Market Making | |||||||||
Revenues | $ | 299,755 | $ | 192,328 | $ | 166,620 | |||
Expenses | 214,336 | 187,926 | 174,653 | ||||||
Pre-tax earnings (loss) | 85,419 | 4,402 | (8,033) | ||||||
Global Execution Services | |||||||||
Revenues | 69,713 | 63,522 | 79,218 | ||||||
Expenses | 70,763 | 73,459 | 80,882 | ||||||
Pre-tax loss | (1,050) | (9,937) | (1,664) | ||||||
Corporate and Other | |||||||||
Revenues | 7,568 | 6,032 | 26,464 | ||||||
Expenses | 56,519 | 57,611 | 32,002 | ||||||
Pre-tax loss | (48,951) | (51,579) | (5,538) | ||||||
Consolidated | |||||||||
Revenues | 377,036 | 261,882 | 272,302 | ||||||
Expenses | 341,617 | 318,996 | 287,537 | ||||||
Pre-tax earnings (loss) | $ | 35,419 | $ | (57,114) | $ | (15,235) | |||
* Totals may not add due to rounding. | |||||||||
KCG HOLDINGS, INC. | Exhibit 3 (Continued) | ||||||||
PRE-TAX EARNINGS (LOSS) FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT* | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
For the nine months ended | |||||||||
September 30, 2015 | September 30, 2014 | ||||||||
Market Making | |||||||||
Revenues | $ | 716,631 | $ | 662,412 | |||||
Expenses | 587,471 | 558,409 | |||||||
Pre-tax earnings | 129,160 | 104,003 | |||||||
Global Execution Services | |||||||||
Revenues | 597,502 | 252,341 | |||||||
Expenses | 227,430 | 251,253 | |||||||
Pre-tax earnings | 370,072 | 1,088 | |||||||
Corporate and Other | |||||||||
Revenues | 20,941 | 55,339 | |||||||
Expenses | 135,740 | 101,774 | |||||||
Pre-tax loss | (114,799) | (46,435) | |||||||
Consolidated | |||||||||
Revenues | 1,335,074 | 970,092 | |||||||
Expenses | 950,641 | 911,436 | |||||||
Pre-tax earnings | $ | 384,433 | $ | 58,656 | |||||
* Totals may not add due to rounding. | |||||||||
KCG HOLDINGS, INC. | Exhibit 4 | |||||||||||
Regulation G Reconciliation of Non-GAAP financial measures (Continuing operations)* | ||||||||||||
(in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended September 30, 2015 | Market Making | Global Execution Services | Corporate and Other | Consolidated | ||||||||
Reconciliation of GAAP Pre-Tax to Non-GAAP Pre-Tax: | ||||||||||||
GAAP Income (loss) from continuing operations before income taxes | $ | 85,419 | $ | (1,050) | $ | (48,951) | $ | 35,419 | ||||
Other real estate related charges | - | - | 28,825 | 28,825 | ||||||||
Writedown of assets | 4,379 | - | 825 | 5,204 | ||||||||
Non-GAAP Income (loss) from continuing operations before income taxes | $ | 89,798 | $ | (1,050) | $ | (19,301) | $ | 69,448 | ||||
Three months ended June 30, 2015 | Market Making | Global Execution Services | Corporate and Other | Consolidated | ||||||||
Reconciliation of GAAP Pre-Tax to Non-GAAP Pre-Tax: | ||||||||||||
GAAP Income (loss) from continuing operations before income taxes | $ | 4,402 | $ | (9,937) | $ | (51,579) | $ | (57,114) | ||||
Accelerated stock-based compensation | 19,844 | 8,202 | 803 | 28,849 | ||||||||
Debt make-whole premium | - | - | 16,500 | 16,500 | ||||||||
Writedown of capitalized debt costs | - | - | 8,506 | 8,506 | ||||||||
Other real estate related charges | - | - | 6,327 | 6,327 | ||||||||
Non-GAAP Income (loss) from continuing operations before income taxes | $ | 24,246 | $ | (1,735) | $ | (19,443) | $ | 3,068 | ||||
Three months ended September 30, 2014 | Market Making | Global Execution Services | Corporate and Other | Consolidated | ||||||||
Reconciliation of GAAP Revenues to Non-GAAP Revenues: | ||||||||||||
GAAP Revenues | $ | 166,620 | $ | 79,218 | $ | 26,464 | $ | 272,302 | ||||
Net gain related to tradeMONSTER combination with OptionsHouse | - | - | (15,105) | (15,105) | ||||||||
Non- GAAP Revenues | $ | 166,620 | $ | 79,218 | $ | 11,359 | $ | 257,197 | ||||
Three months ended September 30, 2014 | Market Making | Global Execution Services | Corporate and Other | Consolidated | ||||||||
Reconciliation of GAAP Pre-Tax to Non-GAAP Pre-Tax: | ||||||||||||
GAAP Loss from continuing operations before income taxes | $ | (8,033) | $ | (1,664) | $ | (5,538) | $ | (15,235) | ||||
Net gain related to tradeMONSTER combination with OptionsHouse | - | - | (15,105) | (15,105) | ||||||||
Compensation related to reduction in workforce and other employee separations | 2,786 | 3,577 | 4,158 | 10,521 | ||||||||
Other real estate related charges | - | - | 301 | 301 | ||||||||
Non GAAP (Loss) Income from continuing operations before income taxes | $ | (5,247) | $ | 1,913 | $ | (16,184) | $ | (19,518) | ||||
Nine months ended September 30, 2015 | Market Making | Global Execution Services | Corporate and Other | Consolidated | ||||||||
Reconciliation of GAAP Revenues to Non-GAAP Revenues: | ||||||||||||
GAAP Revenues | $ | 716,631 | $ | 597,502 | $ | 20,941 | $ | 1,335,074 | ||||
Gain on sale of KCG Hotspot | - | (385,026) | - | (385,026) | ||||||||
Non- GAAP Revenues | $ | 716,631 | $ | 212,476 | $ | 20,941 | $ | 950,048 | ||||
Nine months ended September 30, 2015 | Market Making | Global Execution Services | Corporate and Other | Consolidated | ||||||||
Reconciliation of GAAP Pre-Tax to Non-GAAP Pre-Tax: | ||||||||||||
GAAP Income (loss) from continuing operations before income taxes | $ | 129,160 | $ | 370,072 | $ | (114,799) | $ | 384,433 | ||||
Gain on sale of KCG Hotspot | - | (385,026) | - | (385,026) | ||||||||
Accelerated stock-based compensation | 19,844 | 8,202 | 803 | 28,849 | ||||||||
Debt make-whole premium | - | - | 16,500 | 16,500 | ||||||||
Writedown of capitalized debt costs | - | - | 8,506 | 8,506 | ||||||||
Professional fees related to the sale of KCG Hotspot | - | 6,736 | - | 6,736 | ||||||||
Other real estate related charges | - | - | 35,284 | 35,284 | ||||||||
Writedown of assets | 4,379 | - | 825 | 5,204 | ||||||||
Compensation expense related to the sale of KCG Hotspot | - | 4,457 | - | 4,457 | ||||||||
Non-GAAP Income (loss) from continuing operations before income taxes | $ | 153,383 | $ | 4,441 | $ | (52,881) | $ | 104,943 | ||||
Nine months ended September 30, 2014 | Market Making | Global Execution Services | Corporate and Other | Consolidated | ||||||||
Reconciliation of GAAP Revenues to Non-GAAP Revenues: | ||||||||||||
GAAP Revenues | $ | 662,412 | $ | 252,341 | $ | 55,339 | $ | 970,092 | ||||
Net gain related to tradeMONSTER combination with OptionsHouse | - | - | (15,105) | (15,105) | ||||||||
Income resulting from the merger of BATS and Direct Edge, net | - | - | (9,644) | (9,644) | ||||||||
Non- GAAP Revenues | $ | 662,412 | $ | 252,341 | $ | 30,590 | $ | 945,343 | ||||
Nine months ended September 30, 2014 | Market Making | Global Execution Services | Corporate and Other | Consolidated | ||||||||
Reconciliation of GAAP Pre-Tax to Non-GAAP Pre-Tax: | ||||||||||||
GAAP Income (Loss) from continuing operations before income taxes | $ | 104,003 | $ | 1,088 | $ | (46,435) | $ | 58,656 | ||||
Net gain related to tradeMONSTER combination with OptionsHouse | - | - | (15,105) | (15,105) | ||||||||
Income resulting from the merger of BATS and Direct Edge, net | - | - | (9,644) | (9,644) | ||||||||
Compensation related to reduction in workforce and other employee separations | 3,169 | 5,463 | 4,958 | 13,590 | ||||||||
Writedown of capitalized debt costs | - | - | 9,552 | 9,552 | ||||||||
Other real estate related charges | 811 | - | 1,697 | 2,508 | ||||||||
Non GAAP Income (Loss) from continuing operations before income taxes | $ | 107,983 | $ | 6,551 | $ | (54,977) | $ | 59,557 | ||||
* Totals may not add due to rounding | ||||||||||||
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: KCG Holdings, Inc. via GlobeNewswire
HUG#1962669
