Reports Comprehensive Earnings Per Share of
$0.44, Income before Taxes of $240 Million on $387 Million in Net
Revenues, and Earnings Per Share on Net Income of $0.37
Declares Quarterly Dividend of $0.10 Per
Share
Interactive Brokers Group, Inc. (NASDAQ GS:IBKR) an automated
global electronic broker and market maker, today reported diluted
earnings per share on a comprehensive basis of $0.44 for the
quarter ended June 30, 2015, compared to diluted earnings per share
on a comprehensive basis of $0.29 for the same period in 2014.
Excluding other comprehensive income, the Company reported
diluted earnings per share of $0.37 for the quarter ended June 30,
2015, compared to diluted earnings per share of $0.26 for the same
period in 2014.
Net revenues were $387 million and income before income taxes
was $240 million this quarter, compared to net revenues of $309
million and income before income taxes of $174 million for the same
period in 2014.
The Interactive Brokers Group, Inc. Board of Directors declared
a quarterly cash dividend of $0.10 per share. This dividend is
payable on September 14, 2015 to shareholders of record as of
September 1, 2015.
Business Highlights
- 65% Electronic Brokerage pretax profit
margin for this quarter, up from 59% in the year-ago quarter.
- 42% Market Making pretax profit margin
for this quarter, up from 37% in the year-ago quarter.
- Customer equity grew 22% from the
year-ago quarter to $66.0 billion and customer debits increased by
23% to $19.0 billion.
- Customer accounts increased 18% from
the year-ago quarter to 310 thousand.
- Total DARTs increased 16% from year-ago
quarter to 616 thousand.
- Brokerage segment equity was $3.3
billion. Total equity was $5.2 billion.
Segment Overview
Electronic Brokerage
Electronic Brokerage segment income before income taxes
increased 42%, to $188 million, in the quarter ended June 30, 2015
compared to the same period last year, due to higher commissions
revenue and net interest income. Customer accounts grew 18% to 310
thousand and customer equity increased 22% to $66.0 billion from
the year-ago quarter.
Commissions and execution fees increased 27% from the year-ago
quarter, to $157 million. Net interest income grew 34% from the
year-ago quarter, to $106 million. Pretax profit margin was 65% in
quarter ended June 30, 2015, up from 59% in same period last
year.
Total DARTs(1), for cleared and execution-only customers,
increased 16% to 616 thousand from the year-ago quarter. Cleared
DARTs were 565 thousand, 17% higher than the same period last
year.
Market Making
Market Making segment income before income taxes increased 15%,
to $30 million, in the quarter ended June 30, 2015 compared to the
same period last year, driven mainly by slightly higher volatility.
Pretax profit margin increased to 42% in the current quarter from
37% in same period last year.
Effects of Foreign Currency Diversification
In connection with our currency strategy, we have determined to
base our net worth in GLOBALs, a basket of 16 major currencies in
which we hold our equity. In this quarter, our currency
diversification strategy increased our comprehensive earnings by
$53 million, as the U.S. dollar value of the GLOBAL increased by
approximately 1.0%. The effects of the currency diversification
strategy are reported as components of (1) Other Income in the
Corporate segment and (2) Other Comprehensive Income (“OCI”). As
previously disclosed, certain reclassifications have been made to
previously reported amounts to conform to the current presentation
of currency translation gains and losses related to our currency
diversification strategy.
(1) Daily average revenue trades (DARTs) are based on customer
orders.
_____________________
Conference Call Information:
Interactive Brokers Group will hold a conference call with
investors today, July 21, 2015, at 4:30 p.m. ET to discuss its
quarterly results. Investors who would like to listen to the
conference call live should dial 877-324-1965 (U.S. domestic) and
631-291-4512 (international). The number should be dialed
approximately ten minutes prior to the start of the conference
call. Ask for the “Interactive Brokers Conference Call.”
The conference call will also be accessible simultaneously, and
through replays, as an audio webcast through the Investor Relations
section of the Interactive Brokers web site,
www.interactivebrokers.com/ir.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group, Inc., together with its subsidiaries,
is an automated global electronic broker that specializes in
catering to financial professionals by offering state-of-the-art
trading technology, superior execution capabilities, worldwide
electronic access, and sophisticated risk management tools at
exceptionally low costs. The brokerage trading platform utilizes
the same innovative technology as the Company’s market making
business, which specializes in routing orders and executing and
processing trades in securities, futures, foreign exchange
instruments, bonds and funds on more than 100 electronic exchanges
and trading venues around the world. As a market maker, we provide
liquidity at these marketplaces and, as a broker, we provide
professional traders and investors with electronic access to
stocks, options, futures, forex, bonds and mutual funds from a
single IB Universal AccountSM. Employing proprietary software on a
global communications network, Interactive Brokers is continuously
integrating its software with a growing number of exchanges and
trading venues into one automatically functioning, computerized
platform that requires minimal human intervention.
Cautionary Note Regarding Forward-Looking Statements:
The foregoing information contains certain forward-looking
statements that reflect the Company’s current views with respect to
certain current and future events and financial performance. These
forward-looking statements are and will be, as the case may be,
subject to many risks, uncertainties and factors relating to the
Company’s operations and business environment which may cause the
Company’s actual results to be materially different from any future
results, expressed or implied, in these forward-looking statements.
Any forward-looking statements in this release are based upon
information available to the company on the date of this release.
The company does not undertake to publicly update or revise its
forward-looking statements even if experience or future changes
make it clear that any statements expressed or implied therein will
not be realized. Additional information on risk factors that could
potentially affect the Company’s financial results may be found in
the Company’s filings with the Securities and Exchange
Commission.
INTERACTIVE BROKERS GROUP, INC. AND
SUBSIDIARIES
OPERATING DATA
TRADE VOLUMES: (in 000's, except %)
Brokerage
Market Brokerage Non Avg. Trades
Making % Cleared % Cleared
% Total % per U.S.
Period
Trades
Change
Trades
Change
Trades
Change
Trades
Change
Trading
Day
2012 60,421 150,000 16,118 226,540 904 2013 65,320 8% 173,849 16%
18,489 15% 257,658 14% 1,029 2014 64,530 -1% 206,759 19% 18,055 -2%
289,344 12% 1,155 2Q2014 14,897 48,622 4,290 67,809 1,076
2Q2015 14,852 0% 58,458 20% 4,060 -5% 77,370 14% 1,228
1Q2015 15,404 58,208 4,581 78,193 1,282 2Q2015 14,852 -4% 58,458 0%
4,060 -11% 77,370 -1% 1,228
CONTRACT AND SHARE VOLUMES: (in 000's, except %)
TOTAL Options % Futures* %
Stocks %
Period
(contracts)
Change
(contracts)
Change
(shares)
Change
2012 698,140 98,801 65,872,960 2013 659,673 -6% 121,776 23%
95,479,739 45% 2014 631,265 -4% 123,048 1% 153,613,174 61%
2Q2014 144,635 28,774 35,891,325 2Q2015 144,188 0% 34,661 20%
60,255,458 68% 1Q2015 154,289 33,612 35,336,325 2Q2015
144,188 -7% 34,661 3% 60,255,458 71%
MARKET MAKING Options % Futures*
% Stocks %
Period
(contracts)
Change
(contracts)
Change
(shares)
Change
2012 457,384 12,660 9,339,465 2013 404,490 -12% 18,184 44%
12,849,729 38% 2014 344,741 -15% 15,668 -14% 12,025,822 -6%
2Q2014 78,641 4,088 2,836,471 2Q2015 74,533 -5% 3,652 -11%
4,270,738 51% 1Q2015 83,013 3,408 2,969,719 2Q2015 74,533
-10% 3,652 7% 4,270,738 44%
BROKERAGE TOTAL Options % Futures*
% Stocks %
Period
(contracts)
Change
(contracts)
Change
(shares)
Change
2012 240,756 86,141 56,533,495 2013 255,183 6% 103,592 20%
82,630,010 46% 2014 286,524 12% 107,380 4% 141,587,352 71%
2Q2014 65,994 24,686 33,054,854 2Q2015 69,655 6% 31,009 26%
55,984,720 69% 1Q2015 71,276 30,204 32,366,606 2Q2015 69,655
-2% 31,009 3% 55,984,720 73% * Includes options on futures
INTERACTIVE BROKERS GROUP, INC. AND
SUBSIDIARIES
OPERATING DATA, CONTINUED
BROKERAGE CLEARED Options
% Futures* %
Stocks %
Period
(contracts)
Change
(contracts)
Change
(shares)
Change
2012 144,539 84,794 54,371,351 2013 180,660 25% 101,732 20%
78,829,785 45% 2014 225,662 25% 106,074 4% 137,153,132 74%
2Q2014 50,732 24,262 32,041,810 2Q2015 57,867 14% 30,717 27%
55,144,248 72% 1Q2015 58,537 29,824 31,418,644 2Q2015 57,867
-1% 30,717 3% 55,144,248 76% * Includes options on futures
BROKERAGE STATISTICS (in 000's, except %
and where noted)
Year over Year
2Q2015
2Q2014
%
Change
Total Accounts
310
262
18%
Customer Equity (in billions)*
$66.0
$53.9
22%
Cleared DARTs
565
484
17%
Total Customer DARTs
616
529
16%
Cleared Customers (in $'s, except DART
per account)
Commission per DART
$4.31
$4.00
8%
DART per Avg. Account (Annualized)
469
473
-1%
Net Revenue per Avg. Account
(Annualized)
$3,749
$3,360
12%
Consecutive Quarters
2Q2015
1Q2015
%
Change
Total Accounts
310
296
5%
Customer Equity (in billions)*
$66.0
$61.2
8%
Cleared DARTs
565
590
-4%
Total Customer DARTs
616
648
-5%
Cleared Customers (in $'s, except DART per
account)
Commission per DART
$4.31
$4.05
6%
DART per Avg. Account (Annualized)
469
513
-9%
Net Revenue per Avg. Account
(Annualized)
$3,749
$4,079
-8% * Excludes non-customers.
INTERACTIVE BROKERS GROUP, INC. AND
SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
(UNAUDITED)
Three Months Six Months
Ended June 30, Ended June 30, 2015
2014 2015 2014 (in millions)
Electronic Brokerage Net revenues (1) $288 $222 $578
$446 Non-interest expenses 100 90 339 179 Income before
income taxes $188 $132 $239 $267 Pre-tax profit margin 65%
59% 41% 60%
Market Making Net revenues (1) $72 $71
$139 $182 Non-interest expenses 42 45 82 90 Income before
income taxes $30 $26 $57 $92 Pre-tax profit margin 42% 37%
41% 51%
Corporate (2) Net revenues (1) $27 $16
$(158) $36 Non-interest expenses 5
0
9 3 Income (loss) before income taxes $22 $16 $(167) $33 `
Total Net revenues (1) $387 $309 $559 $664
Non-interest expenses 147 135 430 272 Income before income
taxes $240 $174 $129 $392 Pre-tax profit margin 62% 56% 23%
59% (1) To provide meaningful comparisons, all prior period
amounts have been revised for the changes in presentation of
currency translation classifications. (2) Corporate includes
corporate related activities as well as inter-segment eliminations.
INTERACTIVE BROKERS GROUP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(UNAUDITED)
Three Months Six Months Ended
June 30, Ended June 30, 2015 2014
2015 2014 (in millions, except share and
per share data) Revenues: Trading gains (1) $67
$64 $129 $169 Commissions and execution fees 157 124 306 261
Interest income (1) 126 96 234 183 Other income (loss) (1) 55 37
(77) 77 Total revenues 405 321 592 690 Interest
expense 18 12 33 26
Total net revenues 387 309 559
664
Non-interest expenses: Execution and clearing 59
52 114 106 Employee compensation and benefits 58 53 115 107
Occupancy, depreciation and amortization 11 10 21 20 Communications
7 6 13 12 General and administrative 13 14 29 26 Customer bad debt
(1)
0
138 1
Total non-interest expenses 147 135 430 272
Income before income taxes 240 174 129 392
Income tax expense 19 13 17 30
Net income 221 161 112
362 Net income attributable to noncontrolling interests 198
146 102 328
Net income available for common
stockholders $23 $15 $10 $34
Earnings per share :
Basic $0.38 $0.27 $0.17 $0.62 Diluted $0.37 $0.26 $0.17 $0.60
Weighted average common shares outstanding: Basic
59,481,778 56,079,813 58,980,348 55,375,929 Diluted 61,038,926
57,300,230 60,436,915 56,674,666
Comprehensive
income: Net income available for common stockholders $23 $15
$10 $34 Other comprehensive income: Cumulative translation
adjustment, before income taxes 4 2 3 2 Income taxes related to
items of other comprehensive income
0
0
0
0
Other comprehensive income (loss), net of tax 4 2 3 2
Comprehensive income available for common stockholders $27
$17 $13 $36
Comprehensive income attributable to
noncontrolling interests: Net income attributable to
noncontrolling interests $198 $146 $102 $328 Other comprehensive
income - cumulative translation adjustment 24 9 15 12
Comprehensive income attributable to noncontrolling
interests $222 $155 $117 $340 (1) To provide meaningful
comparisons, all prior period amounts have been revised for the
changes in presentation of currency translation classifications.
INTERACTIVE BROKERS GROUP, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30,
December 31,
2015
2014
(in millions) Assets Cash and cash equivalents
$1,041 $1,269 Cash and securities - segregated for regulatory
purposes 16,762 15,404 Securities borrowed 2,834 3,660 Securities
purchased under agreements to resell 148 386 Trading assets, at
fair value 3,613 3,934 Receivables from customers, net of allowance
19,002 17,051 Receivables from brokers, dealers and clearing
organizations 1,205 1,131 Other assets 554 550
Total
assets $45,159 $43,385
Liabilities and equity
Liabilities Short-term borrowings $9 $34 Securities
loaned 3,141 3,199 Trading liabilities - financial instruments sold
but not yet purchased, at fair value 2,183 2,561 Other payables:
Customers 33,837 31,796 Brokers, dealers and clearing organizations
376 234 Other payables 379 377 34,592 32,407
Equity
Stockholders' equity 774 766 Noncontrolling interests 4,460 4,418
Total equity 5,234 5,184
Total liabilities and equity
$45,159 $43,385
June 30, 2015 December 31,
2014 Ownership of IBG LLC Membership Interests
Interests
%
Interests
%
IBG, Inc. 60,944,432 15.0% 58,473,186 14.5% Noncontrolling
interests (IBG Holdings LLC) 346,062,282 85.0% 346,062,282 85.5%
Total IBG LLC membership interests 407,006,714 100.0%
404,535,468 100.0%
INTERACTIVE BROKERS GROUP, INC. AND
SUBSIDIARIES
EARNINGS PER SHARE ON COMPREHENSIVE
INCOME
(UNAUDITED)
Three Months Six Months Ended
June 30, Ended June 30, 2015 2014
2015 2014 (in millions, except share and
per share data) Comprehensive income available for
common stockholders, net of tax $27 $17 $13 $36
Comprehensive income per share: Basic $0.45 $0.30 $0.22
$0.65 Diluted $0.44 $0.29 $0.21 $0.64
Weighted
average common shares outstanding: Basic 59,481,778 56,079,813
58,980,348 55,375,929 Diluted 61,038,926 57,300,230 60,436,915
56,674,666
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150721006521/en/
For Interactive Brokers Group,
Inc.Media:Caitlin Duffy,
203-913-1369orInvestors:Patrick Brennan,
203-618-4070
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