KCG ANNOUNCES
CONSOLIDATED EARNINGS OF $0.41 PER DILUTED SHARE FOR THE FIRST
QUARTER OF 2016
KCG reports consolidated revenues of $345.4
million
and pre-tax earnings of $60.0
million for the quarter
KCG increases book value to $16.42 per share
and
tangible book value to $15.30 per
share
KCG's Board of Directors authorizes expanded share
repurchase program
of up to $200 million of KCG
common stock and warrants
JERSEY CITY, New Jersey - April
21, 2016 - KCG Holdings, Inc. (NYSE: KCG) today reported
consolidated earnings of $37.2 million, or $0.41 per diluted share,
for the first quarter of 2016. Included in these results is $9.5
million of other income primarily related to sales of certain
assets and gains on repurchases of the company's debt.
Select Financial Results |
($ in thousands, except EPS) |
|
1Q16 |
|
4Q15 |
|
1Q15 |
GAAP
Revenues |
345,424 |
|
264,036 |
|
696,156 |
Non-GAAP
revenues* |
345,424 |
|
247,509 |
|
311,130 |
Trading revenues, net |
223,938 |
|
145,959 |
|
208,795 |
Commissions and fees |
106,101 |
|
94,315 |
|
99,961 |
GAAP
pre-tax income (loss) |
59,965 |
|
(4,471) |
|
406,128 |
GAAP
EPS |
0.41 |
|
(0.03) |
|
2.19 |
Non-GAAP
pre-tax income (loss)* |
59,965 |
|
(4,845) |
|
32,427 |
* Effective January 1, 2016, KCG
will no longer adjust GAAP results for writedowns, investment gains
and losses and similar items. See Exhibit 4 for a reconciliation of
GAAP to non-GAAP results for pre-2016 periods.
First Quarter Highlights
-
KCG U.S. equity market making grew revenues 22
percent year over year
-
KCG Institutional Equities grew average daily
U.S. equity share volume 17 percent year over year
-
KCG BondPoint set a new quarterly record for
average daily fixed income par value traded with growth of 32
percent year over year
-
KCG announced an agreement to sell its NYSE
Designated Market Maker (DMM) and completed the sales of assets
related to retail U.S. options market making
-
KCG repurchased 1.8 million shares of KCG Class
A Common Stock for $20.5 million, $1.0 million in warrants and
$35.0 million par value of its 6.875 percent Senior Secured Notes
for $31.2 million
Daniel Coleman, Chief Executive Officer of KCG,
said, "KCG generated strong financial results in the first quarter
of 2016 as a result of the market conditions in U.S.
equities, increased penetration of strategic clients and the
performance of KCG's trading models. KCG U.S. equity market making
posted strong revenues from client and exchange-based activities.
We took further action to streamline and simplify KCG by exiting
certain businesses following a strategic review. In addition, we
utilized free cash to repurchase shares, warrants and debt as
opportunities arose. Subsequent to the first quarter, we monetized
a portion of our stake in Bats Global Markets, which added to free
cash available for deployment."
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 first
quarter of 2016, the segment generated total revenues of $258.9
million and pre-tax income of $75.5 million. Included in first
quarter revenues is a $2.9 million gain from the sale of assets
related to retail U.S. options market making.
In the first quarter of 2016, the market selloff
to start the year contributed to a 7 percent rise in consolidated
U.S. equity dollar volume, a widening of spreads and higher
realized volatility for the S&P 500 year-over-year. In
addition, the market produced seasonally strong retail trading
activity and a 31 percent increase in U.S. equity futures
contracts. Outside of U.S. equities, results were affected by the
rise in market volumes of U.S. Treasuries and Asian equities
year-over-year, offset in part by the declines in market volumes of
European equities and foreign exchange as well as the continued
deterioration in prices of commodities. For the quarter, revenues
for the Market Making segment rose 15.3 percent year over year.
Mr. Coleman commented, "Despite the difficulties
presented by the market selloff in the first half of January and
heightened competition for retail order flow, market making in U.S.
equities generated a substantial contribution to KCG's first
quarter results. We continued to focus on strategic clients as well
as develop the pipeline of new strategies and enhance currently
deployed models. The results from global equities and FICC
rebounded from the previous quarter. KCG Acknowledge FI more than
doubled client market making volume in U.S. Treasuries year over
year. In Asia, trading during the quarter was led by Japan and
Singapore."
In the fourth quarter of 2015, the segment
generated total revenues of $168.2 million and a pre-tax loss of
$5.1 million. Excluding charges related to asset writedowns of
$14.2 million, the segment generated non-GAAP pre-tax income of
$9.1 million.
During the first quarter of 2015, the segment
generated total revenues of $224.5 million and pre-tax income of
$39.3 million.
Select Trade Statistics: U.S.
Equity Market Making
|
1Q16 |
|
4Q15 |
|
1Q15 |
Average daily dollar
volume traded ($ millions) |
30,888 |
|
28,842 |
|
31,025 |
Average daily trades
(thousands) |
4,236 |
|
3,667 |
|
3,947 |
Average daily shares
traded (millions) |
4,816 |
|
4,698 |
|
5,048 |
NYSE and NASDAQ
shares traded |
1,109 |
|
922 |
|
933 |
OTC Bulletin
Board and OTC Market shares traded |
3,707 |
|
3,775 |
|
4,115 |
Average revenue
capture per U.S. equity dollar value traded (bps) |
1.13 |
|
0.77 |
|
0.92 |
Global Execution
Services
The Global Execution Services segment comprises agency execution
services and trading venues. During the first quarter of 2016, the
segment generated total revenues of $76.4 million and pre-tax
income of $6.3 million.
In the first quarter of 2016, institutional
trading activity drove the heightened U.S. equity market volumes
and volatility to start the year. The deleveraging in January
shifted to rebalancing which prolonged the high levels of trading
through February. KCG Institutional Equities grew volumes of U.S.
equities year over year from algorithmic trading and high touch
sales trading in single stocks, ETFs and programs. KCG BondPoint
set a new quarterly record for fixed income par value traded, which
was attributable to market share gains compounded by increased
market volumes of corporate and municipal bonds. The decline in
revenues for the Global Execution Services segment year over year
is attributable to the sale of KCG Hotspot, which was completed on
March 13, 2015.
Mr. Coleman commented, "During the first quarter,
KCG Algorithmic Trading grew U.S. equity share volume from the 25
largest U.S. asset managers 67 percent year over year. KCG's ETF
trading team posted strong results from facilitating standard
orders, risk markets for blocks, NAV-based executions, and
creations and redemptions. In addition, KCG BondPoint grew trade
volumes from a combination of new and existing retail broker
clients."
In the fourth quarter of 2015, the segment
generated total revenues of $70.2 million and a pre-tax loss of
$1.1 million. Excluding a writedown of goodwill of $0.9 million,
the segment generated a non-GAAP pre-tax loss of $0.2 million.
In the first quarter of 2015, excluding the gain
of $385.0 million on the sale of KCG Hotspot and related
professional and compensation expenses totaling $11.2 million, the
segment generated non-GAAP total revenues of $79.2 million and
pre-tax income of $7.2 million.
Select Trade Statistics: Agency
Execution and Trading Venues
|
1Q16 |
|
4Q15 |
|
1Q15 |
Average daily KCG
Institutional Equities U.S. equities shares traded (millions)
(1) |
271.8 |
|
238.4 |
|
231.4 |
Average daily KCG
BondPoint fixed income par value
traded ($ millions) |
192.4 |
|
150.7 |
|
145.8 |
-
KCG Institutional Equities average daily U.S.
National Market System (NMS) equity share volume represents trading
on behalf of clients covering algorithmic trading and high touch
sales trading in single stocks, ETFs and programs. In 2016, KCG
modified the reporting of trading volumes within the Global
Execution Services segment to remove internal volume generated by
KCG trading desks and add volume from sales trading. Prior periods
have been recast for this new presentation.
Corporate and Other
The Corporate and Other segment includes strategic investments and
corporate overhead expenses. During the first quarter of 2016, the
segment generated total revenues of $10.1 million and a pre-tax
loss of $21.8 million. Included in first quarter revenues are a
$3.7 million gain from KCG's repurchase of a portion of its 6.875
percent Senior Secured Notes and a $2.8 million net gain primarily
tied to a distribution from an investment.
In the fourth quarter of 2015, the segment
generated total revenues of $25.6 million and pre-tax income of
$1.8 million. Excluding gains on sales and writedowns of
investments of $19.8 million and $3.2 million, respectively and a
$1.0 million writedown of an intangible asset, the segment
generated a non-GAAP pre-tax loss of $13.7 million.
In the first quarter of 2015, the segment
generated total revenues of $7.3 million and a pre-tax loss of
$14.3 million.
Financial Condition
As of March 31, 2016, KCG had $647.1 million in cash and cash
equivalents. Total outstanding debt was $451.9 million. KCG had
$1.48 billion in stockholders' equity, equivalent to a book value
of $16.42 per share and tangible book value, which includes the
value of its assets of businesses held for sale, of $15.30 per
share based on total shares outstanding of 90.4 million, including
restricted stock units.
During the first quarter of 2016, KCG repurchased
1.8 million shares for approximately $20.5 million, $1.0 million in
warrants and $35.0 million par value of its 6.875 percent Senior
Secured Notes for $31.2 million.
KCG's headcount was 972 full-time employees at
March 31, 2016, compared to 1,006 at December 31, 2015.
Subsequent Events
On April 15, 2016, shares of Bats Global Markets, Inc. common stock
began trading on the BATS BZX Exchange under ticker symbol BATS. As
part of the initial public offering, KCG sold 2.6 million shares
for approximately $46 million after commissions and will recognize
a pre-tax gain of approximately $33 million in the second quarter
of 2016 on this sale. Following the offering, KCG's ownership stake
in Bats was reduced to approximately 13.7 percent.
On April 20, 2016, KCG's Board of Directors
authorized an expanded share repurchase program of up to $200
million of KCG common stock and warrants (including the remaining
capacity under the previously authorized repurchase program),
subject to compliance with the covenants contained in the company's
debt indenture. Under the program, the company may repurchase
shares of common stock or warrants from time to time in open market
transactions, accelerated stock buyback programs, tender offers,
privately-negotiated transactions or by other means. Repurchases of
shares may also be made under a Rule 10b5-1 plan. The timing and
amount of repurchase transactions will be based on market
conditions, share price, legal requirements and other factors. The
program has no expiration date and may be suspended, modified or
discontinued at any time without prior notice. There are no
assurances that any repurchases of shares of common stock or
warrants may actually occur.
Conference Call
KCG will hold a conference call to discuss first quarter 2016
financial results starting at 9:00 a.m. Eastern Time today, April
21, 2016. To access the call, dial 800-344-6698 (domestic) or
785-830-7979 (international) and enter passcode 5948540. In
addition, the call will be webcast at
http://edge.media-server.com/m/p/kbqkwypj. 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=5948540&passcode=5948540
and entering passcode 5948540.
Additional information for investors, including a
presentation of the first 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 December 31,
2015 and March 31, 2015. KCG believes the presentations provide a
meaningful summary of revenues and results of operations for each
of the three 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 a
range of services designed to address trading needs across asset
classes, product types and time zones. The firm combines advanced
technology with specialized client service across market making,
agency execution and venues and also engages in principal trading
via exchange-based market making. KCG has multiple access points to
trade global equities, fixed income, options, currencies and
commodities via voice or automated execution. www.kcg.com
Certain statements contained
herein and the documents incorporated by reference containing the
words "believes," "intends," "expects," "anticipates," and words of
similar meaning, may constitute forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995.
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 inability to manage trading strategy performance and
sustain revenue and earnings growth; (ii) the sale of KCG Hotspot,
including the receipt of additional payments that are subject to
certain contingencies; (iii) changes in market structure,
legislative, regulatory or financial reporting rules, including the
increased focus by Congress, federal and state regulators, the SROs
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; (iv) past or future changes to KCG's
organizational structure and management; (v) 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; (vi) KCG's ability to keep up with
technological changes; (vii) KCG's ability to effectively identify
and manage market risk, operational and technology risk,
cybersecurity risk, legal risk, liquidity risk, reputational risk,
counterparty and credit risk, international risk, regulatory risk,
and compliance risk; (viii) the cost and other effects of material
contingencies, including litigation contingencies, and any adverse
judicial, administrative or arbitral rulings or proceedings; (ix)
the effects of increased competition and KCG's ability to maintain
and expand market share; (x) the announced plan to relocate KCG's
global headquarters from Jersey City, NJ to New York, NY; and (xi)
KCG's ability to complete the sale or disposition of any or all of
the assets or businesses that are classified as held for sale. 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 in "Risk Factors" in Part I, Item 1A of
KCG's Annual Report on Form10-K for the year ended December 31,
2015, "Legal Proceedings" in Part I, Item 3, under "Certain Factors
Affecting Results of Operations" in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in Part
II, Item 7, in "Quantitative and Qualitative Disclosures About
Market Risk" in Part II, Item 7A, 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 its Annual
Report on Form 10-K, 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 |
|
March 31, 2016 |
|
|
December 31, 2015 |
|
|
March 31, 2015 |
|
(In
thousands, except per share amounts) |
Revenues |
|
|
|
|
|
|
|
|
|
|
Trading revenues, net |
$ |
223,938 |
|
|
$ |
145,959 |
|
|
$ |
208,795 |
Commissions and fees |
|
106,101 |
|
|
|
94,315 |
|
|
|
99,961 |
Interest, net |
|
117 |
|
|
|
(429) |
|
|
|
(23) |
Investment income and other, net |
|
15,268 |
|
|
|
24,191 |
|
|
|
387,423 |
Total revenues |
|
345,424 |
|
|
|
264,036 |
|
|
|
696,156 |
Expenses |
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
97,586 |
|
|
|
67,823 |
|
|
|
106,718 |
Execution and clearance fees |
|
73,634 |
|
|
|
66,613 |
|
|
|
68,473 |
Communications and data processing |
|
35,657 |
|
|
|
36,003 |
|
|
|
33,764 |
Depreciation and amortization |
|
21,905 |
|
|
|
25,077 |
|
|
|
20,615 |
Payments for order flow |
|
12,655 |
|
|
|
14,464 |
|
|
|
15,221 |
Debt interest expense |
|
9,492 |
|
|
|
10,025 |
|
|
|
9,397 |
Collateralized financing interest |
|
9,163 |
|
|
|
8,746 |
|
|
|
8,456 |
Occupancy and equipment rentals |
|
8,990 |
|
|
|
7,842 |
|
|
|
7,340 |
Professional fees |
|
6,057 |
|
|
|
5,774 |
|
|
|
11,181 |
Business development |
|
1,119 |
|
|
|
1,751 |
|
|
|
1,857 |
Writedown of assets and other real estate related
charges |
|
- |
|
|
|
16,154 |
|
|
|
132 |
Other |
|
9,201 |
|
|
|
8,235 |
|
|
|
6,874 |
Total expenses |
|
285,459 |
|
|
|
268,507 |
|
|
|
290,028 |
Income (loss) before income taxes |
|
59,965 |
|
|
|
(4,471) |
|
|
|
406,128 |
Income tax expense (benefit) |
|
22,800 |
|
|
|
(1,500) |
|
|
|
156,827 |
Net income (loss) |
$ |
37,165 |
|
|
$ |
(2,971) |
|
|
$ |
249,301 |
Basic earnings (loss) per share |
$ |
0.42 |
|
|
$ |
(0.03) |
|
|
$ |
2.25 |
Diluted earnings (loss) per share |
$ |
0.41 |
|
|
$ |
(0.03) |
|
|
$ |
2.19 |
Shares used in computation of basic earnings (loss)
per share |
|
88,458 |
|
|
|
89,184 |
|
|
|
110,782 |
Shares used in computation of diluted earnings
(loss) per share |
|
89,605 |
|
|
|
89,184 |
|
|
|
113,615 |
KCG HOLDINGS,
INC. |
|
|
Exhibit
2 |
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
|
|
|
(In thousands) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
March 31, 2016 |
|
December 31, 2015 |
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
647,070 |
|
$ |
581,313 |
Cash and cash equivalents segregated under federal
and other regulations |
|
3,000 |
|
|
3,000 |
Financial instruments owned, at fair value: |
|
|
|
|
|
Equities |
|
2,350,324 |
|
|
2,129,208 |
Listed options |
|
11,801 |
|
|
178,360 |
Debt securities |
|
174,222 |
|
|
136,387 |
Other financial instruments |
|
204 |
|
|
445 |
Total financial instruments owned, at fair
value |
|
2,536,551 |
|
|
2,444,400 |
Collateralized agreements: |
|
|
|
|
|
Securities borrowed |
|
1,681,886 |
|
|
1,636,284 |
Receivable from brokers, dealers and clearing
organizations |
|
656,081 |
|
|
681,211 |
Fixed assets and leasehold improvements,
less |
|
|
|
|
|
accumulated depreciation and amortization |
|
93,190 |
|
|
94,858 |
Investments |
|
98,138 |
|
|
98,943 |
Goodwill and Intangible assets, less accumulated
amortization |
|
101,277 |
|
|
100,471 |
Deferred tax asset, net |
|
151,196 |
|
|
151,225 |
Assets of businesses held for sale |
|
24,444 |
|
|
25,999 |
Other assets |
|
203,465 |
|
|
222,831 |
Total assets |
$ |
6,196,298 |
|
$ |
6,040,535 |
LIABILITIES & EQUITY |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Financial instruments sold, not yet purchased, at
fair value: |
|
|
|
|
|
Equities |
$ |
1,743,843 |
|
$ |
1,856,171 |
Listed options |
|
9,635 |
|
|
151,893 |
Debt securities |
|
301,984 |
|
|
105,340 |
Total financial instruments sold, not yet
purchased, at fair value |
|
2,055,462 |
|
|
2,113,404 |
Collateralized financings: |
|
|
|
|
|
Securities loaned |
|
527,358 |
|
|
463,377 |
Financial instruments sold under agreements to
repurchase |
|
909,304 |
|
|
954,902 |
Total collateralized financings |
|
1,436,662 |
|
|
1,418,279 |
Payable to brokers, dealers and clearing
organizations |
|
574,660 |
|
|
273,805 |
Payable to customers |
|
11,640 |
|
|
17,387 |
Accrued compensation expense |
|
55,053 |
|
|
154,547 |
Accrued expenses and other liabilities |
|
126,783 |
|
|
134,026 |
Debt |
|
451,864 |
|
|
484,989 |
Total liabilities |
|
4,712,124 |
|
|
4,596,437 |
Equity |
|
|
|
|
|
Class A Common Stock |
|
1,090 |
|
|
1,060 |
Additional paid-in capital |
|
1,470,284 |
|
|
1,436,671 |
Retained earnings |
|
229,285 |
|
|
192,120 |
Treasury stock, at cost |
|
(216,770) |
|
|
(186,103) |
Accumulated other comprehensive income |
|
285 |
|
|
350 |
Total equity |
|
1,484,174 |
|
|
1,444,098 |
Total liabilities and
equity |
$ |
6,196,298 |
|
$ |
6,040,535 |
KCG HOLDINGS, INC. |
|
|
|
|
|
|
|
|
Exhibit
3 |
PRE-TAX
EARNINGS (LOSS) BY BUSINESS SEGMENT |
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended |
|
|
March 31, 2016 |
|
December 31, 2015 |
|
March 31, 2015 |
Market Making |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
258,918 |
|
$ |
168,227 |
|
$ |
224,548 |
Expenses |
|
|
183,429 |
|
|
173,359 |
|
|
185,208 |
Pre-tax earnings (loss) |
|
|
75,489 |
|
|
(5,132) |
|
|
39,340 |
|
|
|
|
|
|
|
|
|
|
Global Execution Services |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
76,394 |
|
|
70,221 |
|
|
464,266 |
Expenses |
|
|
70,133 |
|
|
71,336 |
|
|
83,208 |
Pre-tax earnings (loss) |
|
|
6,261 |
|
|
(1,115) |
|
|
381,058 |
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
10,112 |
|
|
25,588 |
|
|
7,342 |
Expenses |
|
|
31,897 |
|
|
23,812 |
|
|
21,612 |
Pre-tax (loss) earnings |
|
|
(21,785) |
|
|
1,776 |
|
|
(14,270) |
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
345,424 |
|
|
264,036 |
|
|
696,156 |
Expenses |
|
|
285,459 |
|
|
268,507 |
|
|
290,028 |
Pre-tax earnings (loss) |
|
$ |
59,965 |
|
$ |
(4,471) |
|
$ |
406,128 |
KCG HOLDINGS, INC. |
|
|
|
|
|
|
|
|
|
|
|
Exhibit
4 |
Regulation G Reconciliation of
Non-GAAP financial measures* |
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2015 |
|
Market Making |
|
Global Execution Services |
|
Corporate and Other |
|
Consolidated |
Reconciliation of GAAP
Revenues to Non-GAAP Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Revenues |
|
$ |
168,227 |
|
$ |
70,221 |
|
$ |
25,588 |
|
$ |
264,036 |
Gain on sales of investments |
|
|
- |
|
|
- |
|
|
(19,751) |
|
|
(19,751) |
Writedowns of investments |
|
|
- |
|
|
- |
|
|
3,224 |
|
|
3,224 |
Non- GAAP Revenues |
|
$ |
168,227 |
|
$ |
70,221 |
|
$ |
9,061 |
|
$ |
247,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2015 |
|
Market Making |
|
Global Execution Services |
|
Corporate and Other |
|
Consolidated |
Reconciliation of GAAP Pre-Tax to
Non-GAAP Pre-Tax: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (Loss) income before income
taxes |
|
$ |
(5,132) |
|
$ |
(1,115) |
|
$ |
1,776 |
|
$ |
(4,471) |
Gain on sales of investments |
|
|
- |
|
|
- |
|
|
(19,751) |
|
|
(19,751) |
Writedowns of investments |
|
|
- |
|
|
- |
|
|
3,224 |
|
|
3,224 |
Writedown of goodwill and intangible assets |
|
|
14,016 |
|
|
907 |
|
|
1,014 |
|
|
15,937 |
Writedown of assets |
|
|
216 |
|
|
- |
|
|
- |
|
|
216 |
Non GAAP Income (loss) before
income taxes |
|
$ |
9,100 |
|
$ |
(208) |
|
$ |
(13,737) |
|
$ |
(4,845) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
2015 |
|
Market Making |
|
Global Execution Services |
|
Corporate and Other |
|
Consolidated |
Reconciliation of GAAP
Revenues to Non-GAAP Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Revenues |
|
$ |
224,548 |
|
$ |
464,266 |
|
$ |
7,342 |
|
$ |
696,156 |
Gain on sale of KCG Hotspot |
|
|
- |
|
|
(385,026) |
|
|
- |
|
|
(385,026) |
Non- GAAP Revenues |
|
$ |
224,548 |
|
$ |
79,240 |
|
$ |
7,342 |
|
$ |
311,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
2015 |
|
Market Making |
|
Global Execution Services |
|
Corporate and Other |
|
Consolidated |
Reconciliation of GAAP Pre-Tax to
Non-GAAP Pre-Tax: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income (loss) before income
taxes |
|
$ |
39,340 |
|
$ |
381,058 |
|
$ |
(14,270) |
|
$ |
406,128 |
Gain on sale of KCG Hotspot |
|
|
- |
|
|
(385,026) |
|
|
- |
|
|
(385,026) |
Professional fees related to the sale of KCG
Hotspot |
|
|
- |
|
|
6,736 |
|
|
- |
|
|
6,736 |
Compensation expense related to the sale of KCG
Hotspot |
|
|
- |
|
|
4,457 |
|
|
- |
|
|
4,457 |
Lease loss accrual, net |
|
|
- |
|
|
- |
|
|
132 |
|
|
132 |
Non-GAAP Income (loss) before
income taxes |
|
$ |
39,340 |
|
$ |
7,225 |
|
$ |
(14,138) |
|
$ |
32,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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#2005341
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