KCG ANNOUNCES
CONSOLIDATED EARNINGS OF $0.38 PER DILUTED SHARE FOR THE SECOND
QUARTER OF 2016
KCG reports consolidated revenues of $319.9
million
and pre-tax earnings of $54.6
million for the quarter
KCG increases book value to $16.79 per share
and
tangible book value to $15.63 per
share
JERSEY CITY, New Jersey - July
21, 2016 - KCG Holdings, Inc. (NYSE: KCG) today reported
consolidated earnings of $33.6 million, or $0.38 per diluted share,
for the second quarter of 2016. Pre-tax income of $54.6 million
includes a gain of $33.4 million from the sale of a portion of the
company's investment in Bats Global Markets, Inc. ("Bats").
Select Financial Results |
($ in thousands, except EPS) |
|
2Q16 |
|
1Q16 |
|
2Q15 |
Total
Revenues |
319,914 |
|
345,424 |
|
261,882 |
Trading revenues, net |
186,882 |
|
223,938 |
|
170,750 |
Commissions and fees |
94,961 |
|
106,101 |
|
87,370 |
Net
Revenues(1) |
190,076 |
|
249,972 |
|
175,490 |
Pre-tax
income (loss) |
54,565 |
|
59,965 |
|
(57,114) |
EPS |
0.38 |
|
0.41 |
|
(0.18) |
(1)
See Exhibit 4 for a reconciliation of Total
revenues to Net revenues. Net revenues is a non-GAAP measure the
company uses to measure its performance as well as make certain
strategic decisions.
Second Quarter Highlights
-
KCG grew its market share of retail SEC Rule 605
U.S. equity share volume among the leading market makers by more
than two percentage points
-
KCG BondPoint set a new quarterly record for
average daily fixed income par value traded
-
KCG recorded a pre-tax gain of $33.4 million
from the sale of a portion of its investment in Bats
-
KCG grew consolidated revenues 22.2 percent year
over year or 9.4 percent after adjusting for the gain from the sale
of a portion of its Bats shares
-
KCG repurchased 3.5 million shares of KCG Class
A Common Stock for $46.5 million and warrants for $14.2
million
Daniel Coleman, Chief Executive Officer of KCG,
said, "Despite relatively poor market conditions for most of the
second quarter, KCG produced reasonable financial results. KCG
market making in U.S. equities had another strong quarter with a
revenue capture of 1.07 basis points. In addition, our
franchise ETF desk and KCG BondPoint both showed continued growth
in revenues and market share. The results were further lifted by a
sizeable gain from the sale of a portion of the company's
investment in Bats, a part of the proceeds from which went toward
funding more than $60 million in stock and warrant repurchases
during the quarter."
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 second
quarter of 2016, the segment generated total revenues of $211.8
million and pre-tax income of $40.5 million.
In the second quarter of 2016, market volumes of
U.S. equities were muted due to uncertainty over impending market
events and the macroeconomic outlook. For the quarter, average
daily consolidated U.S. equity dollar volume rose just 1 percentage
point year over year. Average daily retail SEC Rule 605 dollar
volume declined approximately 8 percentage points over the same
period. A rise in market volatility was largely confined to the
final week of the quarter. The lack of conviction extended to
market volumes of U.S. equity futures and options contracts.
Outside of U.S. equities, market-wide trading activity also
declined in European equities, U.S. Treasuries and currencies from
a year ago.
Mr. Coleman commented, "Although the market for
U.S. equities was relatively quiet until the tail end of the
quarter, KCG Market Making produced strong results. The performance
of quantitative trading models and market share gains of retail
order flow drove the performance. Notwithstanding, lower realized
volatility constrained results as did the broad declines in market
volumes for certain asset classes and products year over year."
In 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 second quarter of 2015, the segment
generated total revenues of $192.3 million and pre-tax income of
$4.4 million, which included accelerated stock-based compensation
expense of $19.8 million resulting from stockholder-approved
changes made during the quarter related to outstanding equity
awards.
Select Trade Statistics: U.S.
Equity Market Making
|
2Q16 |
|
1Q16 |
|
2Q15 |
Average daily dollar
volume traded ($ millions) |
26,046 |
|
30,888 |
|
27,883 |
Average daily trades
(thousands) |
3,577 |
|
4,236 |
|
3,550 |
Average daily shares
traded (millions) |
4,680 |
|
4,816 |
|
5,785 |
NYSE and NASDAQ
shares traded |
972 |
|
1,109 |
|
885 |
OTC Bulletin
Board and OTC Market shares traded |
3,708 |
|
3,707 |
|
4,900 |
Average revenue
capture per U.S. equity dollar value traded (bps) |
1.07 |
|
1.13 |
|
0.80 |
Global Execution
Services
The Global Execution Services segment comprises agency execution
services and trading venues. During the second quarter of 2016, the
segment generated total revenues of $68.1 million and pre-tax
income of $1.7 million.
In the second quarter of 2016, institutional
trading activity was tempered in anticipation of the June Federal
Open Market Committee meeting and the "Brexit" referendum in the
U.K., affecting U.S. and European equity market volumes.
Market-wide trade volume of ETFs rose just 1 percentage point year
over year. Conversely, the retail bond market was particularly
active as corporate bond transactions under 250 bonds rose 31
percentage points year over year.
Mr. Coleman commented, "The subdued institutional
trading activity affected KCG Institutional Equities in both
algorithmic trading and sales trading. Despite only a modest rise
in market volumes of ETFs, however, the franchise ETF desk
performed well. KCG BondPoint set another new record for trade
volumes in part on the strength of recent market share gains in
municipals."
In the first quarter of 2016, the segment
generated total revenues of $76.4 million and pre-tax income of
$6.3 million.
In the second quarter of 2015, the segment
generated total revenues of $63.5 million and a pre-tax loss of
$9.9 million, which included accelerated stock-based compensation
expense of $8.2 million resulting from stockholder-approved changes
related to outstanding equity awards in the second quarter of
2015.
Select Trade Statistics: Agency
Execution and Trading Venues
|
2Q16 |
|
1Q16 |
|
2Q15 |
Average daily KCG
Institutional Equities U.S. equities shares traded (millions)
(1) |
217.5 |
|
271.8 |
|
215.4 |
Average daily KCG
BondPoint fixed income par value
traded ($ millions) |
203.3 |
|
192.4 |
|
138.3 |
-
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 second quarter of 2016, the
segment generated total revenues of $40.0 million and pre-tax
income of $12.4 million. Included in these results is a gain of
$33.4 million from the sale of a portion of the company's
investment in Bats. Following the sale, KCG retained a 13.7 percent
ownership stake in Bats.
In 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
related to a distribution from an investment.
In the second quarter of 2015, the segment
generated total revenues of $6.0 million and a pre-tax loss of
$51.6 million. Included in these results is accelerated stock-based
compensation expense of $0.8 million. Also included in these
results are charges related to the early redemption of the $305
million 8.25% Senior Secured Notes comprising a debt make-whole
premium of $16.5 million and writedown of capitalized debt costs of
$8.5 million, as well as other real estate related charges of $6.3
million.
Financial Condition
As of June 30, 2016, KCG had $492.5 million in cash and cash
equivalents and total outstanding debt of $452.7 million. KCG had
$1.46 billion in stockholders' equity, equivalent to a book value
of $16.79 per share and tangible book value, which includes the
value of its assets of businesses held for sale, of $15.63 per
share based on total shares outstanding of 86.9 million, including
restricted stock units.
During the second quarter of 2016, KCG repurchased
3.5 million shares for approximately $46.5 million and warrants for
$14.2 million.
KCG's headcount was 942 full-time employees at
June 30, 2016, compared to 972 at March 31, 2016.
Subsequent Events
KCG announced today that Mike Blum, who joined the firm in January
as Global Head of Client Technology, has been named Chief
Technology Officer ("CTO"), effective October 1, 2016. Jon Ross,
KCG's CTO, will be leaving the company to pursue a variety of
personal projects in the technology space, unrelated to trading and
markets. Blum has nearly 25 years of industry experience designing
and developing systems and managing global teams within high
frequency, ECN, ATS and execution service spaces. Most recently,
Blum was CTO at Teza Technologies. Ross will remain at KCG as CTO
through the transition period.
Conference Call
KCG will hold a conference call to discuss second quarter 2016
financial results starting at 9:00 a.m. Eastern Time today, July
21, 2016. To access the call, dial 800-753-0487 (domestic) or
913-312-4373 (international) and enter passcode 3402400. In
addition, the call will be webcast at
http://edge.media-server.com/m/p/9wqdm557. 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=3402400&passcode=3402400
and entering passcode 3402400.
Additional information for investors, including a
presentation of the second quarter financial results, can be found
at http://investors.kcg.com.
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 receipt of additional
payments from the sale of KCG Hotspot 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, Quarterly Report on Form
10-Q for the quarter-ended March 31, 2016, 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 |
|
June 30, 2016 |
|
|
March 31, 2016 |
|
|
June 30, 2015 |
|
(In
thousands, except per share amounts) |
Revenues |
|
|
|
|
|
|
|
|
|
|
Trading revenues, net |
$ |
186,882 |
|
|
$ |
223,938 |
|
|
$ |
170,750 |
Commissions and fees |
|
94,961 |
|
|
|
106,101 |
|
|
|
87,370 |
Interest, net |
|
267 |
|
|
|
117 |
|
|
|
(596) |
Investment income and other, net |
|
37,804 |
|
|
|
15,268 |
|
|
|
4,358 |
Total revenues |
|
319,914 |
|
|
|
345,424 |
|
|
|
261,882 |
Expenses |
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
76,092 |
|
|
|
97,586 |
|
|
|
109,471 |
Execution and clearance fees |
|
73,742 |
|
|
|
73,634 |
|
|
|
62,598 |
Communications and data processing |
|
36,376 |
|
|
|
35,657 |
|
|
|
34,240 |
Depreciation and amortization |
|
22,234 |
|
|
|
21,905 |
|
|
|
20,726 |
Payments for order flow |
|
13,090 |
|
|
|
12,655 |
|
|
|
14,935 |
Debt interest expense |
|
9,191 |
|
|
|
9,492 |
|
|
|
10,911 |
Collateralized financing interest |
|
9,609 |
|
|
|
9,163 |
|
|
|
8,859 |
Occupancy and equipment rentals |
|
9,829 |
|
|
|
8,990 |
|
|
|
7,474 |
Professional fees |
|
5,301 |
|
|
|
6,057 |
|
|
|
5,694 |
Business development |
|
1,960 |
|
|
|
1,119 |
|
|
|
3,025 |
Debt extinguishment charges |
|
- |
|
|
|
- |
|
|
|
25,006 |
Writedown of assets and other real estate related
charges |
|
- |
|
|
|
- |
|
|
|
6,327 |
Other |
|
7,925 |
|
|
|
9,201 |
|
|
|
9,730 |
Total expenses |
|
265,349 |
|
|
|
285,459 |
|
|
|
318,996 |
Income (loss) before income taxes |
|
54,565 |
|
|
|
59,965 |
|
|
|
(57,114) |
Income tax expense (benefit) |
|
21,011 |
|
|
|
22,800 |
|
|
|
(37,952) |
Net income (loss) |
$ |
33,554 |
|
|
$ |
37,165 |
|
|
$ |
(19,162) |
Basic earnings (loss) per share |
$ |
0.39 |
|
|
$ |
0.42 |
|
|
$ |
(0.18) |
Diluted earnings (loss) per share |
$ |
0.38 |
|
|
$ |
0.41 |
|
|
$ |
(0.18) |
Shares used in computation of basic earnings (loss)
per share |
|
86,138 |
|
|
|
88,458 |
|
|
|
108,588 |
Shares used in computation of diluted earnings
(loss) per share |
|
88,214 |
|
|
|
89,605 |
|
|
|
108,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
six months ended |
|
|
|
|
|
|
June 30, 2016 |
|
|
|
June 30, 2015 |
|
|
|
|
|
(In
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
Trading revenues, net |
$ |
410,820 |
|
|
$ |
379,545 |
|
|
|
|
Commissions and fees |
|
201,062 |
|
|
|
187,331 |
|
|
|
|
Interest, net |
|
384 |
|
|
|
(619) |
|
|
|
|
Investment income and other, net |
|
53,072 |
|
|
|
391,781 |
|
|
|
|
Total revenues |
|
665,338 |
|
|
|
958,038 |
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
173,678 |
|
|
|
216,189 |
|
|
|
|
Execution and clearance fees |
|
147,376 |
|
|
|
131,071 |
|
|
|
|
Communications and data processing |
|
72,033 |
|
|
|
68,004 |
|
|
|
|
Depreciation and amortization |
|
44,139 |
|
|
|
41,341 |
|
|
|
|
Payments for order flow |
|
25,745 |
|
|
|
30,156 |
|
|
|
|
Debt interest expense |
|
18,683 |
|
|
|
20,308 |
|
|
|
|
Collateralized financing interest |
|
18,772 |
|
|
|
17,315 |
|
|
|
|
Occupancy and equipment rentals |
|
18,819 |
|
|
|
14,814 |
|
|
|
|
Professional fees |
|
11,358 |
|
|
|
16,875 |
|
|
|
|
Business development |
|
3,079 |
|
|
|
4,882 |
|
|
|
|
Debt extinguishment charges |
|
- |
|
|
|
25,006 |
|
|
|
|
Writedown of assets and other real estate related
charges |
|
- |
|
|
|
6,459 |
|
|
|
|
Other |
|
17,126 |
|
|
|
16,604 |
|
|
|
|
Total expenses |
|
550,808 |
|
|
|
609,024 |
|
|
|
|
Income before income taxes |
|
114,530 |
|
|
|
349,014 |
|
|
|
|
Income tax expense |
|
43,811 |
|
|
|
118,875 |
|
|
|
|
Net income |
$ |
70,719 |
|
|
$ |
230,139 |
|
|
|
|
Basic earnings per share |
$ |
0.81 |
|
|
$ |
2.08 |
|
|
|
|
Diluted earnings per share |
$ |
0.79 |
|
|
$ |
2.02 |
|
|
|
|
Shares used in computation of basic earnings per
share |
|
87,326 |
|
|
|
110,890 |
|
|
|
|
Shares used in computation of diluted earnings per
share |
|
89,125 |
|
|
|
113,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KCG HOLDINGS,
INC. |
|
|
Exhibit
2 |
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
|
|
|
(In thousands) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
492,497 |
|
$ |
581,313 |
Cash and cash equivalents segregated under federal
and other regulations |
|
3,000 |
|
|
3,000 |
Financial instruments owned, at fair value: |
|
|
|
|
|
Equities |
|
2,556,172 |
|
|
2,129,208 |
Listed options |
|
20,991 |
|
|
178,360 |
Debt securities |
|
228,887 |
|
|
136,387 |
Other financial instruments |
|
15 |
|
|
445 |
Total financial instruments owned, at fair
value |
|
2,806,065 |
|
|
2,444,400 |
Collateralized agreements: |
|
|
|
|
|
Securities borrowed |
|
1,888,295 |
|
|
1,636,284 |
Receivable from brokers, dealers and clearing
organizations |
|
1,318,607 |
|
|
681,211 |
Fixed assets and leasehold improvements,
less |
|
|
|
|
|
accumulated depreciation and amortization |
|
105,863 |
|
|
94,858 |
Investments |
|
90,329 |
|
|
98,943 |
Goodwill and Intangible assets, less accumulated
amortization |
|
101,326 |
|
|
100,471 |
Deferred tax asset, net |
|
151,058 |
|
|
151,225 |
Assets of businesses held for sale |
|
8,194 |
|
|
25,999 |
Other assets |
|
226,873 |
|
|
222,831 |
Total assets |
$ |
7,192,107 |
|
$ |
6,040,535 |
LIABILITIES
& EQUITY |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Financial instruments sold, not yet purchased, at
fair value: |
|
|
|
|
|
Equities |
$ |
2,011,163 |
|
$ |
1,856,171 |
Listed options |
|
25,501 |
|
|
151,893 |
Debt securities |
|
324,858 |
|
|
105,340 |
Total financial instruments sold, not yet
purchased, at fair value |
|
2,361,522 |
|
|
2,113,404 |
Collateralized financings: |
|
|
|
|
|
Securities loaned |
|
1,011,288 |
|
|
463,377 |
Financial instruments sold under agreements to
repurchase |
|
895,899 |
|
|
954,902 |
Total collateralized financings |
|
1,907,187 |
|
|
1,418,279 |
Payable to brokers, dealers and clearing
organizations |
|
682,826 |
|
|
273,805 |
Payable to customers |
|
83,680 |
|
|
17,387 |
Accrued compensation expense |
|
87,017 |
|
|
154,547 |
Accrued expenses and other liabilities |
|
158,445 |
|
|
134,026 |
Debt |
|
452,694 |
|
|
484,989 |
Total liabilities |
|
5,733,371 |
|
|
4,596,437 |
Equity |
|
|
|
|
|
Class A Common Stock |
|
1,090 |
|
|
1,060 |
Additional paid-in capital |
|
1,458,752 |
|
|
1,436,671 |
Retained earnings |
|
262,839 |
|
|
192,120 |
Treasury stock, at cost |
|
(263,729) |
|
|
(186,103) |
Accumulated other comprehensive income |
|
(216) |
|
|
350 |
Total equity |
|
1,458,736 |
|
|
1,444,098 |
Total liabilities and
equity |
$ |
7,192,107 |
|
$ |
6,040,535 |
KCG HOLDINGS, INC. |
|
|
|
|
|
|
|
|
Exhibit
3 |
PRE-TAX
EARNINGS (LOSS) BY BUSINESS SEGMENT |
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended |
|
|
June 30, 2016 |
|
March 31, 2016 |
|
June 30, 2015 |
Market Making |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
211,824 |
|
$ |
258,918 |
|
$ |
192,328 |
Expenses |
|
|
171,314 |
|
|
183,429 |
|
|
187,926 |
Pre-tax earnings |
|
|
40,510 |
|
|
75,489 |
|
|
4,402 |
|
|
|
|
|
|
|
|
|
|
Global Execution Services |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
68,138 |
|
|
76,394 |
|
|
63,522 |
Expenses |
|
|
66,454 |
|
|
70,133 |
|
|
73,459 |
Pre-tax earnings (loss) |
|
|
1,684 |
|
|
6,261 |
|
|
(9,937) |
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
39,952 |
|
|
10,112 |
|
|
6,032 |
Expenses |
|
|
27,581 |
|
|
31,897 |
|
|
57,611 |
Pre-tax earnings (loss) |
|
|
12,371 |
|
|
(21,785) |
|
|
(51,579) |
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
319,914 |
|
|
345,424 |
|
|
261,882 |
Expenses |
|
|
265,349 |
|
|
285,459 |
|
|
318,996 |
Pre-tax earnings (loss) |
|
$ |
54,565 |
|
$ |
59,965 |
|
$ |
(57,114) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended |
|
|
|
|
|
June 30, 2016 |
|
June 30, 2015 |
|
|
|
Market Making |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
470,742 |
|
$ |
416,876 |
|
|
|
Expenses |
|
|
354,743 |
|
|
373,134 |
|
|
|
Pre-tax earnings |
|
|
115,999 |
|
|
43,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Execution Services |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
144,532 |
|
|
527,788 |
|
|
|
Expenses |
|
|
136,587 |
|
|
156,667 |
|
|
|
Pre-tax earnings |
|
|
7,945 |
|
|
371,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
50,064 |
|
|
13,374 |
|
|
|
Expenses |
|
|
59,478 |
|
|
79,223 |
|
|
|
Pre-tax loss |
|
|
(9,414) |
|
|
(65,849) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
665,338 |
|
|
958,038 |
|
|
|
Expenses |
|
|
550,808 |
|
|
609,024 |
|
|
|
Pre-tax earnings |
|
$ |
114,530 |
|
$ |
349,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
KCG HOLDINGS, INC. |
|
|
|
|
|
|
|
|
Exhibit
4 |
RECONCILIATION OF TOTAL REVENUES
TO NET REVENUES |
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended |
|
|
June 30, 2016 |
|
March 31, 2016 |
|
June 30, 2015 |
Total revenues per Consolidated
Statements of Operations |
|
$ |
319,914 |
|
$ |
345,424 |
|
$ |
261,882 |
Less: |
|
|
|
|
|
|
|
|
|
Execution and clearance fees |
|
|
73,742 |
|
|
73,634 |
|
|
62,598 |
Payments for order flow |
|
|
13,090 |
|
|
12,655 |
|
|
14,935 |
Collaterlaized financing interest |
|
|
9,609 |
|
|
9,163 |
|
|
8,859 |
Gain from the sale of a portion of the Company's
investment in Bats |
|
|
33,397 |
|
|
- |
|
|
- |
Net revenues |
|
$ |
190,076 |
|
$ |
249,972 |
|
$ |
175,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended |
|
|
|
|
|
June 30, 2016 |
|
June 30, 2015 |
|
|
|
Total revenues per Consolidated
Statements of Operations |
|
$ |
665,338 |
|
$ |
958,038 |
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
Execution and clearance fees |
|
|
147,376 |
|
|
131,071 |
|
|
|
Payments for order flow |
|
|
25,745 |
|
|
30,156 |
|
|
|
Collaterlaized financing interest |
|
|
18,772 |
|
|
17,315 |
|
|
|
Gain from the sale of a portion of the Company's
investment in Bats |
|
|
33,397 |
|
|
- |
|
|
|
Gain on sale of KCG Hotspot |
|
|
- |
|
|
385,026 |
|
|
|
Net revenues |
|
$ |
440,048 |
|
$ |
394,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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#2029796
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