GAAP Revenues: $192.2 Million; Non-GAAP Revenues: $197.5 Million; GAAP Net Income: $2.8 Million or $0.02 per Diluted Share; Non-GAAP Net Income: $6.9 Million or $0.06 per Diluted Share; Declares Quarterly Cash Dividend of $0.05 per Share
NEW YORK, NY–(Marketwire – October 29, 2009) – GFI Group Inc. (NASDAQ: GFIG), a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, today announced financial results for the third quarter ended September 30, 2009.
Highlights
— Total revenues for the third quarter of 2009 were $192.2 million
compared with $243.1 million in the third quarter of 2008. In the third
quarter of 2009, total revenues included a $5.2 million mark-to-market
unrealized loss on forward hedges of future foreign currency revenues. In
the third quarter of 2008, total revenues included a $9.6 million pre-tax
charge related to the bankruptcy of Lehman Brothers. Excluding these items,
revenues declined 22% to $197.5 million for the third quarter of 2009
compared with $252.7 million in the third quarter of 2008 on a non-GAAP
basis.
— Brokerage revenues for the third quarter of 2009 were $184.4 million
compared with $226.4 million on a GAAP basis and $235.9 million on a non-
GAAP basis in the third quarter of 2008.
— In the third quarter of 2009, compensation and employee benefits
expense was 70.3% of total revenues on a GAAP basis and 68.4% on a non-GAAP
basis, compared with 72.6% of total revenues on a GAAP basis and 62.9% on a
non-GAAP basis in the third quarter of 2008.
— Non-compensation expenses as a percentage of revenues were 27.4% of
total revenues on a GAAP basis and 26.0% on a non-GAAP basis in the third
quarter of 2009 compared with 31.8% of total revenues on a GAAP basis and
24.6% on a non-GAAP basis in the third quarter of 2008.
— Net income for the third quarter of 2009 was $2.8 million, or $0.02
per diluted share, compared with a net loss of $6.7 million, or ($0.06) per
diluted share, in the third quarter of 2008, which included a pre-tax
charge of $20.9 million related to restructuring initiatives. On a non-
GAAP basis, net income for the third quarter of 2009 was $6.9 million, or
$0.06 per diluted share, compared with non-GAAP net income of $20.0
million, or $0.17 per diluted share in the third quarter of 2008.
Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “Our third quarter revenues were in line with our expectations as we experienced uneventful trading activity compared to the third quarter last year, which was marked by extreme volatility due to the credit crisis.
“Credit product non-GAAP revenues decreased 2% from the third quarter of 2008 and were down 16% sequentially. Within the credit category, our revenues from credit derivatives declined 48% year over year while our revenues from cash fixed income brokerage operations rose 122% from the third quarter of 2008. However, we saw a change in sequential trend in the third quarter with credit derivative revenues rising 2% over the second quarter of 2009 following several quarters of declines.
“Equity product revenues were down 36% year over year and 9% sequentially due to continued depressed share values in Europe and declines in equity trading volumes in both the U.S. and Europe, as equity market volatility was dramatically lower than in the third quarter of 2008.
“Our financial product revenues declined 27% from the third quarter of 2008 but were approximately level with the second quarter of 2009. While revenues from emerging market products and interest rate derivatives were lower year over year, we saw growth in each category sequentially.
“Commodity product revenues decreased 25% from the third quarter of 2008, but rose 2% sequentially. Dry and wet freight shipping derivatives accounted for the majority of the decline in comparison with last year, but after several quarters of weakness, shipping revenues increased 45% sequentially.
“Compensation and employee benefits expense, which is the largest component of our costs, decreased 15% year-over-year on a non-GAAP basis and 8% from the second quarter of 2009, but increased as a percentage of total revenues in comparison to both prior periods on a non-GAAP basis. The increase in compensation expense as a percentage of revenues in the third quarter of 2009 is due to the active restructuring of our business and product focus as we adjust to changing market dynamics, lower revenues in some historically higher margin derivative markets, and amortization of previously paid sign-on and retention bonuses.
“Looking at the fourth quarter of 2009, we currently expect total revenues to decrease by 3% to 7% versus total non-GAAP revenues in the fourth quarter of 2008.”
Mr. Gooch concluded: “Trading volumes continue to be depressed to some degree due to the uncertainty in the banking and regulatory environment. In a recent favorable development, our core businesses are likely to fall into the category of swap execution facilities under proposed U.S. legislation. Companies such as GFI with proven execution, strong market share and sophisticated trading technology should benefit from increased transparency and clearing of standardized derivatives. GFI, through its association with industry trade groups, has been actively engaged in the discussion amongst regulators and legislators in Washington, London and Brussels. We are optimistic in our belief that the regulatory issues that have clouded the prospects of the derivatives market will be largely resolved over the coming months.”
Revenues
For the third quarter of 2009, total revenues were $192.2 million on a GAAP basis and $197.5 million on a non-GAAP basis. This compares with total revenues of $243.1 million on a GAAP basis and $252.7 million on a non-GAAP basis in the third quarter of 2008.
Brokerage revenues in the third quarter of 2009 were $184.4 million compared with $226.4 million on a GAAP basis and $235.9 million on a non-GAAP basis in the third quarter of 2008. Revenues from financial, equity and commodity products decreased 27%, 36% and 25%, respectively, from the third quarter of 2008. Credit product revenues increased 14% on a GAAP basis but declined 2% on a non-GAAP basis from the prior year period. By geographic region, third quarter 2009 GAAP brokerage revenues decreased 13% in the Americas, 21% in EMEA and 28% in Asia-Pacific compared with the third quarter of 2008. EMEA revenues were down 27% on a non-GAAP basis compared with the third quarter 2008.
Revenues from trading software, analytics and market data products for the third quarter of 2009 were $13.6 million, down 3% from the same period of 2008. Included in the 2009 period was an $8.0 million contribution to software revenue from Trayport Limited. Trayport’s software revenues decreased 2% on a reported basis but increased 14% in its functional currency, the British Pound Sterling, compared with the third quarter of 2008.
Expenses
For the third quarter of 2009, compensation and employee benefits expense was $135.1 million on a GAAP and non-GAAP basis compared with $176.5 million on a GAAP basis and $159.0 million on a non-GAAP basis in the third quarter of 2008. Compensation and employee benefits expense was 70.3% of total revenues on a GAAP basis and 68.4% on a non-GAAP basis in the third quarter of 2009 compared with 72.6% of total revenues on a GAAP basis and 62.9% on a non-GAAP basis, in the third quarter of 2008.
Non-compensation expenses for the third quarter of 2009 on a GAAP basis were $52.7 million or 27.4% of total revenues compared with $77.3 million or 31.8% of total revenues in the third quarter of 2008. On a non-GAAP basis, non-compensation expenses for the third quarter of 2009 were $51.3 million or 26.0% of total revenues compared with $62.3 million or 24.6% of total revenues in the third quarter of 2008.
The effective tax rate for the first nine months of 2009 was 37.0%, compared to 36.5% for the same period of 2008.
Earnings
Net income for the third quarter of 2009 was $2.8 million, or $0.02 per diluted share, compared with a net loss of $6.7 million, or ($0.06) per diluted share, in the third quarter of 2008. On a non-GAAP basis, net income for the third quarter of 2009 was $6.9 million, or $0.06 per diluted share, compared with net income of $20.0 million or $0.17 per diluted share for the third quarter of 2008.
Nine-Month Results
For the nine months ended September 30, 2009, total revenues were $633.1 million and net income was $30.7 million or $0.25 per diluted share, compared with revenues of $819.3 million and net income of $52.9 million or $0.44 per diluted share for the first nine months of 2008. On a non-GAAP basis, total revenues for the first nine months of 2009 were $630.2 million and net income was $34.5 million or $0.28 per diluted share, compared with non-GAAP revenues of $828.9 million and net income of $84.0 million or $0.70 per diluted share for the first nine months of 2008.
Non-GAAP Financial Measures
To supplement GFI’s unaudited financial statements presented in accordance with GAAP, the Company uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by GFI include non-GAAP revenues, non-GAAP net income and non-GAAP diluted earnings per share. These non-GAAP financial measures currently exclude amortization of acquired intangibles and certain other items that management views as non-operating or non-recurring from the Company’s statement of income as detailed below.
In addition, GFI may consider whether other significant non-operating or non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses. The non-GAAP financial measures also take into account income tax adjustments with respect to the excluded items.
GFI believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook. GFI’s management uses, and believes that investors benefit from referring to these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company’s performance to prior periods.
In addition to the reasons stated above, which are generally applicable to each of the items GFI excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude amortization of acquired intangibles because when analyzing the operating performance of an acquired business, GFI’s management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any charges for allocations made for accounting purposes. Further, because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets, when analyzing the operating performance of an acquisition in subsequent periods, the Company’s management excludes the GAAP impact of acquired intangible assets on its financial results. GFI believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.
Set forth below is specific detail regarding items excluded in our non-GAAP financial measures. A reconciliation of the non-GAAP to GAAP figures follows this press release.
In the third quarter of 2009, the difference between GAAP and non-GAAP revenues was $5.2 million and the difference between GAAP and non-GAAP net income was $4.1 million and reflected for non-GAAP purposes:
— The exclusion from revenues of a $5.2 million mark-to-market
unrealized loss on forward hedges of future foreign currency revenues;
— The exclusion of $1.4 million of amortization on all acquired
intangible assets; and
— The effect of adjusting for these items would increase the Company’s
income tax expense by $2.4 million.
In the first nine months of 2009, the difference between GAAP and non-GAAP revenue was $2.9 million and the difference between GAAP and non-GAAP net income was $3.7 million and reflected for non-GAAP purposes:
— The exclusion from revenues of:
— $2.2 million mark-to-market unrealized gains on forward hedges of
future foreign currency revenues; and
— a $0.7 million gain on the Company’s exchange of its investment in
The Clearing Corporation for an investment in a holding company of
ICE Trust;
— The exclusion of $4.1 million of amortization on all acquired
intangible assets;
— The exclusion of $4.6 million related to severance and other
restructuring initiatives, including an $0.8 million charge relating to
the termination of a joint venture; and
— The effect of adjusting for these items would increase the Company’s
income tax expense by $2.1 million.
In the third quarter of 2008, the difference between GAAP and non-GAAP revenues was $9.6 million and the difference between the GAAP net loss and non-GAAP net income was $26.7 million and reflected for non-GAAP purposes:
— The exclusion from revenues of a $9.6 million charge for unsettled
trades directly related to the Lehman Brothers bankruptcy;
— The exclusion of $1.4 million of amortization on all acquired
intangible assets;
— The exclusion of $1.8 million in expenses related to discontinued
merger discussions;
— The exclusion of items related to the relocation of the Company’s New
York offices to larger premises completed in the third quarter of 2008,
including:
— $0.8 million of duplicate rent expense; and
— $7.8 million of costs related to the abandonment of and move from
the Company’s previous headquarters;
— The exclusion of $3.5 million of reduced compensation expenses related
to the Lehman Brothers bankruptcy;
— The exclusion of $20.9 million related to the Company’s restructuring
initiatives, including:
— $14.5 million for costs related to desk closings and other
restructuring charges; and
— $6.4 million adjustment related to deferred compensation expense;
— The exclusion of a $3.1 million write-off of an investment in an
unconsolidated affiliate; and
— The effect of adjusting for these items would increase the Company’s
income tax expense by $15.3 million.
For the nine months ended September 30, 2008, the difference between GAAP and non-GAAP revenues was $9.6 million and the difference between GAAP and non-GAAP net income was $31.1 million and reflected for non-GAAP purposes:
— The exclusion from revenues of a $9.6 million charge for unsettled
trades directly related to the Lehman Brothers bankruptcy;
— The exclusion of $3.9 million of amortization on all acquired
intangible assets;
— The exclusion of $1.8 million in expenses related to discontinued
merger discussions;
— The exclusion of items related to the relocation of the Company’s New
York offices to larger premises completed in the third quarter of 2008,
including:
— $2.5 million of duplicate rent expense;
— $2.7 million of accelerated depreciation expense related to assets
to be abandoned; and
— $7.8 million of costs related to the abandonment of and move from
the Company’s previous headquarters;
— The exclusion of $3.5 million of reduced compensation expenses related
to the Lehman Brothers bankruptcy;
— The exclusion of $20.9 million related to the Company’s restructuring
initiatives, including:
— $14.5 million for costs relating to desk closings and other
restructuring charges; and
— $6.4 million adjustment related to deferred compensation expense;
— The exclusion of a $3.1 million write-off of an investment in an
unconsolidated affiliate; and
— The effect of adjusting for these items would increase the Company’s
income tax expense by $17.9 million.
Dividend Declaration
The Board of Directors of GFI Group has declared a quarterly cash dividend of $0.05 per share payable on November 27, 2009 to shareholders of record on November 13, 2009.
Conference Call
GFI has scheduled an investor conference call to discuss the third quarter results at 8:30 a.m. (Eastern Time) on Friday, October 30. Those wishing to listen to the live conference call via telephone should dial 866-383-8009 in North America, passcode 86671125; and +1 617-597-5342 in Europe, same passcode.
A live audio web cast of the conference call will be available on the Investor Relations section of GFI’s Website. For web cast registration information, please visit: http://www.gfigroup.com. Following the conference call, an archived recording will be available at the same site.
Supplementary Financial Information
GFI Group has posted details of its historical monthly brokerage revenues on the Investor Relations page of its web site under the heading Supplementary Financial Information. The Company currently plans to post this information quarterly in conjunction with its announcement of earnings, but does not undertake a responsibility to continue to provide or update such information.
About GFI Group Inc.
GFI Group Inc. (http://www.GFIgroup.com) is a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.
Headquartered in New York, GFI was founded in 1987 and employs more than 1,700 people with additional offices in London, Dublin, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Dubai, Tel Aviv, Calgary, Englewood (NJ) and Sugar Land (TX). GFI provides services and products to over 2,100 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS® Starsupply®, Amerex®, and Trayport®.
Forward-looking statements
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: acquisitions by us of businesses or technologies; economic, political and market factors affecting trading volumes, securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
– FINANCIAL TABLES FOLLOW ?
=IR=
GFI Group Inc. and Subsidiaries
Consolidated Statements of Income (unaudited)
(In thousands except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
———– ———– ———– ———–
REVENUES:
Brokerage revenues:
Agency commissions $ 119,396 $ 182,591 $ 366,283 $ 613,754
Principal
transactions 64,989 43,771 216,770 156,397
———– ———– ———– ———–
Total brokerage
revenues 184,385 226,362 583,053 770,151
Software, analytics
and market data 13,627 14,034 39,698 38,450
Interest income 172 2,187 895 6,948
Other income (loss) (5,938) 555 9,501 3,718
———– ———– ———– ———–
Total revenues 192,246 243,138 633,147 819,267
———– ———– ———– ———–
EXPENSES:
Compensation and
employee benefits 135,139 176,462 427,262 528,390
Communications and
market data 11,661 12,640 34,399 35,565
Travel and promotion 8,280 11,845 24,310 36,859
Rent and occupancy 6,008 14,969 16,455 28,342
Depreciation and
amortization 7,680 7,192 23,534 23,563
Professional fees 4,508 7,756 13,728 20,119
Clearing fees 7,153 12,026 23,366 33,714
Interest 2,769 3,508 7,895 10,341
Other expenses 4,632 7,317 13,407 19,045
———– ———– ———– ———–
Total expenses 187,830 253,715 584,356 735,938
———– ———– ———– ———–
INCOME (LOSS) BEFORE
PROVISION FOR
(BENEFIT FROM) INCOME ———– ———– ———– ———–
TAXES 4,416 (10,577) 48,791 83,329
———– ———– ———– ———–
PROVISION FOR (BENEFIT
FROM) INCOME TAXES 1,633 (3,861) 18,052 30,415
———– ———– ———– ———–
NET INCOME (LOSS) $ 2,783 $ (6,716) $ 30,739 $ 52,914
=========== =========== =========== ===========
Basic earnings (loss)
per share $ 0.02 $ (0.06) $ 0.26 $ 0.45
=========== =========== =========== ===========
Diluted earnings (loss)
per share $ 0.02 $ (0.06) $ 0.25 $ 0.44
=========== =========== =========== ===========
Weighted average shares
outstanding – basic 118,062,749 118,039,998 118,117,384 117,812,412
Weighted average shares
outstanding – diluted 122,552,882 118,039,998 121,382,317 119,382,347
GFI Group Inc. and Subsidiaries
Consolidated Statements of Income (unaudited)
As a Percentage of Total Revenues
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
———– ———– ———– ———–
REVENUES:
Brokerage revenues:
Agency commissions 62.1% 75.1% 57.9% 74.9%
Principal
transactions 33.8% 18.0% 34.2% 19.1%
———– ———– ———– ———–
Total brokerage
revenues 95.9% 93.1% 92.1% 94.0%
Software, analytics
and market data 7.1% 5.8% 6.3% 4.7%
Interest income 0.1% 0.9% 0.1% 0.8%
Other income (loss) -3.1% 0.2% 1.5% 0.5%
———– ———– ———– ———–
Total revenues 100.0% 100.0% 100.0% 100.0%
———– ———– ———– ———–
EXPENSES:
Compensation and
employee benefits 70.3% 72.6% 67.5% 64.5%
Communications and
market data 6.1% 5.2% 5.4% 4.3%
Travel and promotion 4.3% 4.9% 3.8% 4.5%
Rent and occupancy 3.1% 6.2% 2.6% 3.5%
Depreciation and
amortization 4.0% 3.0% 3.7% 2.9%
Professional fees 2.3% 3.2% 2.2% 2.5%
Clearing fees 3.7% 4.9% 3.7% 4.1%
Interest 1.4% 1.4% 1.2% 1.3%
Other expenses 2.4% 3.0% 2.1% 2.3%
———– ———– ———– ———–
Total expenses 97.6% 104.4% 92.2% 89.9%
———– ———– ———– ———–
INCOME (LOSS) BEFORE
PROVISION FOR
(BENEFIT FROM) INCOME ———– ———– ———– ———–
TAXES 2.4% -4.4% 7.8% 10.1%
———– ———– ———– ———–
PROVISION FOR (BENEFIT
FROM) INCOME TAXES 0.8% -1.6% 3.0% 3.7%
———– ———– ———– ———–
NET INCOME (LOSS) 1.6% -2.8% 4.8% 6.4%
=========== =========== =========== ===========
GFI Group Inc. and Subsidiaries
Selected Financial Data (unaudited)
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
———- ———- ———- ———-
Brokerage Revenues by Product
Categories:
Credit $ 68,235 $ 60,029 $ 223,727 $ 246,999
Financial 33,166 45,542 97,662 143,884
Equity 44,673 69,941 146,920 218,293
Commodity 38,311 50,850 114,744 160,975
———- ———- ———- ———-
Total brokerage
revenues $ 184,385 $ 226,362 $ 583,053 $ 770,151
========== ========== ========== ==========
Brokerage Revenues by
Geographic Region:
Americas $ 74,986 $ 86,677 $ 253,034 $ 297,208
Europe, Middle East,
and Africa 93,406 117,612 282,616 397,467
Asia-Pacific 15,993 22,073 47,403 75,476
———- ———- ———- ———-
Total brokerage
revenues $ 184,385 $ 226,362 $ 583,053 $ 770,151
========== ========== ========== ==========
September December
30, 31,
2009 2008
———- ———-
Consolidated Statement of
Financial Condition Data:
Cash and cash
equivalents $ 316,295 $ 342,375
Total assets (1) 1,302,983 1,085,911
Total debt, including
current portion 188,557 223,823
Stockholders’ equity 504,318 476,963
Selected Statistical Data:
Brokerage personnel
headcount (2) 1,078 1,037
Employees 1,758 1,740
Broker productivity for
the period (3) $ 171 $ 184
(1) Total assets include receivables from brokers, dealers and clearing
organizations of $403.2 million and $149.7 million at September 30,
2009 and December 31, 2008, respectively. These receivables primarily
represent securities transactions entered into in connection with our
matched principal business which have not settled as of their stated
settlement dates. These receivables are substantially offset by
corresponding payables to brokers, dealers and clearing organizations
for these unsettled transactions.
(2) Brokerage personnel headcount includes brokers, trainees and clerks.
(3) Broker productivity is calculated as brokerage revenues divided by
average monthly brokerage personnel headcount for the quarter.
GFI Group Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
(In thousands except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
———– ———– ———– ———–
GAAP revenues $ 192,246 $ 243,138 $ 633,147 $ 819,267
Net charge related to
Lehman unsettled
trades (a) – 9,586 – 9,586
Gain on exchange of
cost-method
investments (a) – – (697) –
Mark-to-market
(gain)/loss on
forward hedges
of future foreign
currency revenues (a) 5,218 – (2,202) –
———– ———– ———– ———–
Total Non-GAAP
Revenues 197,464 252,724 630,248 828,853
GAAP expenses 187,830 253,715 584,356 735,938
Non-operating
adjustments:
Amortization of
intangibles (1,356) (1,378) (4,084) (3,909)
Discontinued merger
discussion costs – (1,832) – (1,832)
Severance and other
restructuring – (14,541) (4,644) (14,541)
Adjustment related to
deferred compensation
expense – (6,408) – (6,408)
Duplicate rent – (849) – (2,547)
Accelerated
depreciation on 100
Wall Street – – – (2,730)
Abandonment of 100
Wall Street – (7,830) – (7,830)
Reduction in
compensation related
to Lehman – 3,469 – 3,469
Write-off investment
in unconsolidated
affiliate – (3,071) – (3,071)
———– ———– ———– ———–
Total Non-GAAP
adjustments (a) (1,356) (32,440) (8,728) (39,399)
———– ———– ———– ———–
Non-GAAP operating
expenses 186,474 221,275 575,628 696,539
GAAP income (loss)
before provision 4,416 (10,577) 48,791 83,329
for income taxes
Sum of Non-GAAP items =
(a) 6,574 42,026 5,829 48,985
———– ———– ———– ———–
Non-GAAP income before
tax provision 10,990 31,449 54,620 132,314
GAAP provision for
(benefit from) income
taxes 1,633 (3,861) 18,052 30,415
Income tax impact on
Non-GAAP items (b) 2,432 15,339 2,116 17,856
———– ———– ———– ———–
Non-GAAP provision for
income taxes 4,065 11,478 20,168 48,271
GAAP net income (loss) 2,783 (6,716) 30,739 52,914
Sum of Non-GAAP
adjustments
[ (a) – (b) ] 4,142 26,687 3,713 31,129
———– ———– ———– ———–
Non-GAAP net income $ 6,925 $ 19,971 $ 34,452 $ 84,043
=========== =========== =========== ===========
GAAP basic net income
(loss) per share $ 0.02 $ (0.06) $ 0.26 $ 0.45
Basic non-operating
income per share 0.04 0.23 0.03 0.26
———– ———– ———– ———–
Non-GAAP basic net
income per share $ 0.06 $ 0.17 $ 0.29 $ 0.71
=========== =========== =========== ===========
GAAP diluted net income
(loss) per share $ 0.02 $ (0.06) $ 0.25 $ 0.44
Diluted non-operating
income per share 0.04 0.23 0.03 0.26
———– ———– ———– ———–
Non-GAAP diluted net
income per share $ 0.06 $ 0.17 $ 0.28 $ 0.70
=========== =========== =========== ===========
Weighted average
Non-GAAP shares
outstanding – basic 118,062,749 118,039,998 118,117,384 117,812,412
Weighted average
Non-GAAP shares
outstanding – diluted 122,552,882 118,903,953 121,382,317 119,382,347
Investor Relations Contact:
GFI Group Inc.
Christopher Giancarlo
Executive Vice President – Corporate Development
212-968-2992
Email Contact
Chris Ann Casaburri
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