GFI Group Dry Freight Adds Matching to Trade Execution Offer

Group’s leading screen EnergyMatch® Europe expands execution choice

New York, August 9, 2011 – GFI Group Inc. (NYSE: “GFIG”) announced today that it has conducted the first matching* of dry freight forward freight agreements “FFAs” trades on its premier electronic platform EnergyMatch® Europe.

EnergyMatch Europe is GFI Group’s leading electronic trading platform for energy and commodities and the market leader for the trading of Dry Freight FFAs. The screen allows for trading in co-mingled markets (co-mingling is the ability to clear trades with different clearing houses) and provides customers with the choice of CCP (Central Counter Party Clearing House) for clearing.

Along with Dry Freight FFAs, UK and European power and gas, coal, fuel oil, emissions and wet freight FFAs can be traded electronically on EnergyMatch Europe. Iron ore will be added to the offering imminently.

Dorian Benson, Head of GFI Dry Freight Group said: “We are continuing to seek fresh and innovative tools for the dry FFA markets to enable customers alternative and efficient trading opportunities and execution. The introduction of co-mingling, JTT and Matching builds upon the great success that we have enjoyed on our screen release over the past few years and is indicative of GFI’s hybrid broking model. We believe that this should allow us to remain at the forefront of the electronic market within freight”.

GFI Dry Freight offers its clients alternatives in their method of execution: voice brokered, hybrid (voice & electronic) and fully electronic via matching and Join-the-Trade “JTT”**.

*Matching is a process run on various GFI electronic trading platforms which allows traders to anonymously contribute and trade at mid-market levels on specific contracts during periodic sessions. Sessions are carried out during set times in the day and have short durations of a few minutes. GFI Matching sessions help create concentrated and deep liquidity pools that allow large volume trades to be transacted at mid-market levels.

**JTT is a workup functionality that allows market participants to anonymously trade large volumes for a pre-defined period of time, at the prevailing market price without the risk of distorting the market. GFI introduced Join-the-Trade for the UK Gas market and for Dry Freight in November 2010.

About GFI Group Inc.

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage services, clearing services, 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 fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,000 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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.

GFI Group Inc. Announces Second Quarter 2011 Results; Declares Quarterly Cash Dividend

— GAAP Total Revenues: $243.7 Million; Non-GAAP Total Revenues: $245.5 Million

NEW YORK,  July 28, 2011 /PRNewswire/ — GFI Group Inc. (NYSE: GFIG), a leading provider of wholesale brokerage services, clearing services, electronic execution and trading support products for global financial markets, reported today its financial results for the second quarter ended June 30, 2011.

Highlights

  • GAAP net revenues were $210.3 million for the second quarter of 2011, an increase of 4.1% from $201.9 million in the second quarter of 2010.  On a non-GAAP basis, net revenues increased 5.6% to $212.0 million from $200.8 million in the second quarter of 2010.  
  • Brokerage revenues for the second quarter of 2011 were $191.0 million compared with $194.2 million in the second quarter of 2010, a decrease of 1.6%.  
  • Compensation and employee benefits expense in the second quarter of 2011 was 69.8% and 69.3% of net revenues on a GAAP and non-GAAP basis, respectively. This compares with 69.9% and 70.3% of net revenues on a GAAP and non-GAAP basis, respectively, in the second quarter of 2010.  
  • Non-compensation expenses were 26.4% of net revenues on a GAAP basis and 25.2% on a non-GAAP basis in the second quarter of 2011.  This compares with 23.0% of net revenues on a GAAP basis and 21.5% on a non-GAAP basis in the second quarter of 2010.
  • GAAP Net income for the second quarter of 2011 was $6.2 million, or $0.05 per diluted share, compared with $10.4 million, or $0.08 per diluted share, in the second quarter of 2010.  On a non-GAAP basis, net income was $8.7 million, or $0.07 per diluted share, for the second quarter of 2011, compared with $12.0 million, or $0.10 per diluted share, in the second quarter of 2010.
  • For the six months ended June 30, 2011, GAAP net revenues were $437.7 million, up 5.4%, compared with $415.4 million for the same period in 2010.  Net income on a GAAP basis for the first half of 2011 was $12.9 million or $0.10 per diluted share compared to $23.8 million or $0.19 per diluted share in the first half of 2010.  On a non-GAAP basis, net revenues for the six months ended June 30, 2011 were $446.5 million, up 7.7%, compared with $414.4 million in the same period in 2010, while net income for the first half of 2011 was $22.4 million or $0.18 per diluted share compared with $26.3 million or $0.21 per diluted share in 2010.

Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “The quarter ended strongly with brokerage revenues up 18% in June year over year, offsetting a slow start to the quarter.  Net revenues were up 5.6% on a non-GAAP basis in the second quarter of 2011 year over year, due to growth in software, analytics and market data revenues, as well as the addition of Kyte.

“The largest positive contributor to brokerage revenues in the second quarter came from emerging markets in Latin America, Eastern Europe and Asia, which drove a 26.8% increase in financial product revenues over the second quarter of 2010.  Equity, commodity and fixed income product revenues were down 5.1%, 7.6% and 12.5%, respectively, in the second quarter of 2011 year over year.

“Compensation and employee benefits expense was up from the second quarter of 2010, but showed improvement as a percentage of net revenues on a GAAP and a non-GAAP basis.  Non-compensation expenses were also higher than the second quarter of 2010, due to a number of factors, including higher travel and promotion expenses, professional fees, technology investment, data and communication costs, and expenses incurred by Kyte.  However, non-compensation expenses were down slightly in the second quarter of 2011 on a non-GAAP basis compared to the first quarter of 2011.

“Looking at the third quarter of 2011 to date, our preliminary brokerage revenues for July are tracking up 11% compared with brokerage revenues for the same month last year.  This July performance follows an active June, which was our best month in the second quarter.  We believe that markets will remain active in the latter half of 2011.  Additionally, our software, analytics and market data revenues for the third quarter are tracking up 22% compared to the same period last year.  

“We continue to work with regulators in the U.S. and Europe as OTC derivative market rules are developed that will define certain aspects of how our business is conducted in the future.  We believe that the final rules will promote enhanced regulatory transparency, centralized clearing and efficient execution; all factors that we believe will benefit and eventually grow the global derivative markets.  We also continue to invest in our technology and infrastructure to allow for a seamless transition to the new market landscape post-regulation.

“In July, we completed an offering of $250 million of 8.375% senior notes that mature in 2018.  The proceeds from the offering were used to pay down our existing credit facility and our senior notes that were due in 2013.  The offering will also provide us with additional capital for acquisitions and other corporate purposes.  

Mr. Gooch concluded:  “We are pleased to declare a quarterly cash dividend of $0.05 per share to our shareholders.”

Revenues

Total revenues were $243.7 million and $245.5 million on a GAAP and non-GAAP basis, respectively, in the second quarter of 2011, as compared with $209.5 million and $208.4 million on a GAAP and non-GAAP basis in the second quarter of 2010.  Net revenues were $210.3 million and $212.0 million on a GAAP and non-GAAP basis, respectively, in the second quarter of 2011, as compared with $201.9 million and $200.8 million on a GAAP and non-GAAP basis in the second quarter of 2010.  Non-GAAP net revenues in the second quarter of 2011 excluded a $1.5 million mark-to-market loss on forward hedges of future foreign currency revenues, a $0.8 million loss related to a future purchase commitment and a gain of $0.6 million related to the recovery of certain previously reserved balances.  

Brokerage revenues in the second quarter of 2011 were $191.0 million compared with $194.2 million in the second quarter of 2010.  By geographic region, brokerage revenues for the second quarter of 2011 increased 10.0% in Asia-Pacific and 4.3% in the Americas, while decreasing 8.2% in Europe, the Middle East and Africa, compared with the second quarter of 2010.  

Revenues from trading software, analytics and market data products for the second quarter of 2011 were $18.4 million, up 26.8% from the second quarter of 2010.  Our Trayport subsidiary’s software revenues grew 39.1% year over year due to continued growth from new and existing customers, as well as from new products.  

Expenses

For the second quarter of 2011, compensation and employee benefits expense was $146.8 million on a GAAP and non-GAAP basis. This compares with $141.1 million on a GAAP and non-GAAP basis in the second quarter of 2010.  Compensation and employee benefits expense decreased to 69.8% and 69.3% of net revenues on a GAAP and non-GAAP basis, respectively, in the second quarter of 2011 from 69.9% and 70.3% of net revenues on a GAAP and non-GAAP basis in 2010.  

On a GAAP basis, non-compensation expenses for the second quarter of 2011 were $55.6 million or 26.4% of net revenues, compared with $46.5 million, or 23.0% of net revenues, in the second quarter of 2010.  On a non-GAAP basis, non-compensation expenses for the second quarter of 2011 were $53.5 million, or 25.2% of net revenues, compared with $43.2 million, or 21.5% of net revenues, in the second quarter of 2010.

The effective tax rate for the six months ended June 30, 2011 was 26.0% on a GAAP basis and 28.5% on a non-GAAP basis, as compared with 31.0% on both a GAAP and a non-GAAP basis in the first half of 2010.

Earnings

Net income on a GAAP basis for the second quarter of 2011 was $6.2 million, or $0.05 per diluted share, compared with net income of $10.4 million, or $0.08 per diluted share, in the second quarter of 2010.  On a non-GAAP basis, net income for the second quarter of 2011 was $8.7 million, or $0.07 per diluted share, compared with $12.0 million, or $0.10 per diluted share, for the second quarter of 2010.

Six Month Results

Net revenues for the six months ended June 30, 2011 were $437.7 million on a GAAP basis, compared to net revenues of $415.4 million for the six months ended June 30, 2010.  Net income was $12.9 million, or $0.10 per diluted share, for the six months ended June 30, 2011 compared with net income of $23.8 million, or $0.19 per diluted share, for the same period in 2010.

On a non-GAAP basis, net revenues for the six months ended June 30, 2011 were $446.5 million compared to $414.4 million for the same period in 2010.  Net income was $22.4 million, or $0.18 per diluted share, for the six months ended June 30, 2011 compared with net income of $26.3 million, or $0.21 per diluted share, for the first six months of 2010.

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 total revenues, non-GAAP net revenues, non-GAAP net income, non-GAAP diluted earnings per share and adjusted EBITDA. 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 in the reconciliation included in the financial tables attached to this release.

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.

A reconciliation of the non-GAAP amounts to GAAP amounts is included in the financial tables attached to this release.

Dividend Declaration

The Board of Directors of GFI Group has declared a quarterly cash dividend of $0.05 per share payable on August 31, 2011 to shareholders of record on August 17, 2011.

Conference Call

GFI has scheduled an investor conference call to discuss its second quarter results at 8:30 a.m. (Eastern Time) on Friday, July 29, 2011. Those wishing to listen to the live conference call via telephone should dial 1-800-860-2442 in North America and +1-412-858-4600 in Europe, and ask for “GFI”.

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. (NYSE: GFIG) is a leading provider of wholesale brokerage services, clearing services, 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 fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,000 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(SM), GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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

 

Six Months Ended

 
 

June 30,

 

June 30,

 
 

2011

 

2010

 

2011

 

2010

 

Revenues

               
 

Agency commissions

$      136,513

 

$      137,624

 

$      283,996

 

$      281,454

 
 

Principal transactions

54,475

 

56,526

 

124,962

 

116,822

 
 

Total brokerage revenues

190,988

 

194,150

 

408,958

 

398,276

 
 

Clearing services revenues

27,680

 

 

55,350

 

 
 

Interest income from clearing services

670

 

 

1,012

 

 
 

Equity in net earnings (losses) of unconsolidated businesses

4,757

 

(92)

 

5,683

 

11

 
 

Software, analytics and market data

18,403

 

14,519

 

35,491

 

29,419

 
 

Other income (loss)

1,233

 

919

 

(1,313)

 

2,668

 
 

   Total revenues

243,731

 

209,496

 

505,181

 

430,374

 
                 

Interest and transaction-based expenses

               
 

Transaction fees on clearing services

26,752

 

 

53,821

 

 
 

Transaction fees on brokerage services

6,079

 

7,554

 

12,684

 

14,978

 
 

Interest expense from clearing services

617

 

 

943

 

 
 

Total interest and transaction-based expenses

33,448

 

7,554

 

67,448

 

14,978

 
 

Revenues, net of interest and transaction-based expenses

210,283

 

201,942

 

437,733

 

415,396

 
                 

Expenses

               
 

Compensation and employee benefits

146,839

 

141,109

 

306,320

 

285,772

 
 

Communications and market data

15,106

 

10,695

 

30,177

 

22,581

 
 

Travel and promotion

10,198

 

9,341

 

20,401

 

18,234

 
 

Rent and occupancy

5,988

 

5,255

 

11,861

 

10,686

 
 

Depreciation and amortization

9,801

 

7,844

 

19,675

 

16,028

 
 

Professional fees

5,672

 

6,247

 

12,775

 

12,844

 
 

Interest on borrowings

3,276

 

2,730

 

6,212

 

5,305

 
 

Other expenses

5,573

 

4,342

 

12,206

 

9,453

 
 

  Total other expenses

202,453

 

187,563

 

419,627

 

380,903

 
                 

Income before provision for income taxes

7,830

 

14,379

 

18,106

 

34,493

 
                 

Provision for income taxes

2,036

 

3,955

 

4,708

 

10,693

 
                 

Net income before attribution to non-controlling shareholders

5,794

 

10,424

 

13,398

 

23,800

 
                 

Less: Net (loss) income attributable to non-controlling interests

(357)

 

 

501

 

 

GFI’s net income

$          6,151

 

$        10,424

 

$        12,897

 

$        23,800

 
                 
                 

Basic earnings per share

$            0.05

 

$            0.09

 

$            0.11

 

$            0.20

 

Diluted earnings per share

$            0.05

 

$            0.08

 

$            0.10

 

$            0.19

 
                 

Weighted average shares outstanding – basic

120,341,423

 

119,593,107

 

119,935,282

 

119,102,754

 
                 

Weighted average shares outstanding – diluted

127,559,237

 

123,750,775

 

127,882,378

 

123,308,715

 
                 

GFI Group Inc. and Subsidiaries

 

Consolidated Statements of Income (unaudited)

 

As a Percentage of Net Revenues

 
         
         
 

Three Months

Ended

 

Six Months

Ended

 
 

June 30,

 

June 30,

 
 

2011

 

2010

 

2011

 

2010

 

Revenues

               
 

Agency commissions

64.9%

 

68.1%

 

64.9%

 

67.8%

 
 

Principal transactions

25.9%

 

28.0%

 

28.5%

 

28.1%

 
 

Total brokerage revenues

90.8%

 

96.1%

 

93.4%

 

95.9%

 
 

Clearing services revenues

13.2%

 

 

12.7%

 

 
 

Interest income from clearing services

0.3%

 

 

0.2%

 

 
 

Equity in net earnings (losses) of unconsolidated businesses

2.3%

 

-0.1%

 

1.3%

 

 
 

Software, analytics and market data

8.7%

 

7.2%

 

8.1%

 

7.1%

 
 

Other income (loss)

0.6%

 

0.5%

 

-0.3%

 

0.6%

 
 

   Total revenues

115.9%

 

103.7%

 

115.4%

 

103.6%

 
                 

Interest and transaction-based expenses

               
 

Transaction fees on clearing services

12.7%

 

 

12.3%

 

 
 

Transaction fees on brokerage services

2.9%

 

3.7%

 

2.9%

 

3.6%

 
 

Interest expense from clearing services

0.3%

 

 

0.2%

 

 
 

Total interest and transaction-based expenses

15.9%

 

3.7%

 

15.4%

 

3.6%

 
 

Revenues, net of interest and transaction-based expenses

100.0%

 

100.0%

 

100.0%

 

100.0%

 
                 

Expenses

               
 

Compensation and employee benefits

69.8%

 

69.9%

 

70.0%

 

68.8%

 
 

Communications and market data

7.2%

 

5.3%

 

6.9%

 

5.4%

 
 

Travel and promotion

4.8%

 

4.6%

 

4.7%

 

4.4%

 
 

Rent and occupancy

2.8%

 

2.6%

 

2.7%

 

2.6%

 
 

Depreciation and amortization

4.7%

 

3.9%

 

4.5%

 

3.9%

 
 

Professional fees

2.7%

 

3.1%

 

2.9%

 

3.1%

 
 

Interest on borrowings

1.6%

 

1.4%

 

1.4%

 

1.3%

 
 

Other expenses

2.7%

 

2.1%

 

2.8%

 

2.2%

 
 

  Total other expenses

96.3%

 

92.9%

 

95.9%

 

91.7%

 
                 

Income before provision for income taxes

3.7%

 

7.1%

 

4.1%

 

8.3%

 
                 

Provision for income taxes

1.0%

 

2.0%

 

1.1%

 

2.6%

 
                 

Net income before attribution to non-controlling shareholders

2.7%

 

5.1%

 

3.0%

 

5.7%

 
                 

Less: Net (loss) income attributable to non-controlling interests

-0.2%

 

 

0.1%

 

 

GFI’s net income

2.9%

 

5.1%

 

2.9%

 

5.7%

 
                 

GFI Group Inc. and Subsidiaries

 

Selected Financial Data (unaudited)

 

(Dollars in thousands)

 
         
         
 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
 

2011

 

2010

 

2011

 

2010

 
                 

Brokerage Revenues by Product Categories:

               
 

Fixed Income

$    53,184

 

$          60,810

 

$ 124,691

 

$ 132,294

 
 

Financial

49,597

 

39,123

 

98,102

 

77,233

 
 

Equity

44,205

 

46,587

 

92,362

 

94,153

 
 

Commodity

44,002

 

47,630

 

93,803

 

94,596

 
                 
 

  Total brokerage revenues

$  190,988

 

$        194,150

 

$ 408,958

 

$ 398,276

 
                 
                 

Brokerage Revenues by Geographic Region:

               
 

Americas

$    75,584

 

$          72,483

 

$ 152,605

 

$ 149,884

 
 

Europe, Middle East, and Africa

93,170

 

101,462

 

205,062

 

209,339

 
 

Asia-Pacific

22,234

 

20,205

 

51,291

 

39,053

 
                 
 

  Total brokerage revenues

$  190,988

 

$        194,150

 

$ 408,958

 

$ 398,276

 
                 
                 
                 
                 
 

June 30,

 

December 31,

         
 

2011

 

2010

         
                 

Consolidated Statement of Financial Condition Data:

               
 

Cash and cash equivalents

$  257,992

 

$        313,875

         
 

Deposits with clearing organizations

42,836

 

26,845

         
 

Total balance sheet cash on hand

300,828

 

340,720

         
 

Balance sheet cash per share

2.47

 

2.79

         
                 
 

Total assets (1)

1,662,506

 

1,271,024

         
 

Total debt, including current portion

192,632

 

192,446

         
 

Stockholders’ equity

489,925

 

490,711

         
                 
                 

Selected Statistical Data:

               
 

Brokerage personnel headcount (2)

1,228

 

1,161

         
 

Employees

2,089

 

1,990

         
 

Broker productivity for the period (3)

$         160

 

$               156

         
                 
                 
                 

(1) Total assets include receivables from brokers, dealers and clearing organizations of $640.4  million and $243.8 million at June 30, 2011 and December 31, 2010, 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, as well as balances with clearing organizations. These receivables are substantially offset by corresponding payables to brokers, dealers and clearing organizations for these unsettled transactions.

 

(2)  Brokerage personnel headcount includes brokers, traders, 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

 

Six Months Ended

 
 

June 30,

 

June 30,

 
 

2011

 

2010

 

2011

 

2010

 
                 

GAAP revenues

$      243,731

 

$      209,496

 

$      505,181

 

$      430,374

 

Mark-to-market loss (gain) on forward hedges

               

of future foreign currency revenues

1,496

 

(1,095)

 

5,936

 

(997)

 

Fair value mark-to-market on future purchase commitment

832

 

 

1,563

 

 

Recovery of previously reserved balances

(609)

 

 

(609)

 

 

Accounting impact of increased ownership stake in an investee

 

 

1,863

 

 

Total Non-GAAP revenues

245,450

 

208,401

 

513,934

 

429,377

 
                 

GAAP interest and transaction-based expenses

33,448

 

7,554

 

67,448

 

14,978

 
                 

Non-GAAP revenues, net of interest and transaction based expenses

212,002

 

200,847

 

446,486

 

414,399

 
                 

GAAP other expenses

202,453

 

187,563

 

419,627

 

380,903

 

Amortization of intangibles

(3,073)

 

(1,430)

 

(6,105)

 

(2,827)

 

Professional & other fees for business development activities

 

(1,860)

 

 

(1,860)

 

Gain on settlement of pre-acquisition receivable

942

 

 

942

 

 

Non-GAAP other expenses

200,322

 

184,273

 

414,464

 

376,216

 
                 

Income tax impact on Non-GAAP items

1,293

 

642

 

4,418

 

1,143

 

Non-GAAP provision for income taxes

3,329

 

4,597

 

9,126

 

11,836

 
                 

Net (loss) income attributable to non-controlling interests

(357)

 

 

501

 

 
                 

GFI’s Non-GAAP net income

$          8,708

 

$        11,977

 

$        22,395

 

$        26,347

 
                 

Non-GAAP diluted net income per share

$            0.07

 

$            0.10

 

$            0.18

 

$            0.21

 
                 

Weighted average Non-GAAP shares outstanding – diluted

127,559,237

 

123,750,775

 

127,882,378

 

123,308,715

 
               

GFI Group Inc.

 

Adjusted EBITDA

 
               

($ in ‘000’s, except share and per share amounts)

2Q10

3Q10

4Q10

1Q11

2Q11

Last twelve

months (LTM)

 
               

Net Income (loss) per U.S. GAAP before attribution to non-controlling interests

$ 10,424

$ (2,335)

$   4,454

$   7,604

$   5,794

   
               

Plus: Net (income) loss attributable to non-controlling interests

(151)

(153)

(858)

357

   

GFI’s Net Income (Loss)

10,424

(2,486)

4,301

6,746

6,151

   
               

Plus/Less: Extraordinary and other non-recurring (gains)

             

and losses (i.e., non-GAAP adjustments)

2,195

9,012

746

10,066

3,850

   
               

Plus: Interest expense

2,730

3,204

2,981

3,262

3,893

   
               

Less: Interest income

(77)

(914)

(774)

(690)

(1,090)

   
               

Plus: Income tax expense (benefit)

3,955

(1,050)

(3,759)

2,672

2,036

   
               

Plus: Depreciation and amortization expense (excluding intangibles)

6,414

6,737

6,678

6,842

6,728

   
               

Plus: Amortization of RSU’s

6,511

6,894

6,485

7,492

7,917

   
               

Plus: Amortization of cash sign-on bonuses

8,344

5,070

5,823

5,998

5,496

   
               

Adjusted EBITDA

$ 40,496

$ 26,467

$ 22,481

$ 42,388

$ 34,981

$         126,317

 
               

Weighted average shares outstanding – diluted

         

127,559,237

 
               

Adjusted EBITDA per share (pre-tax)

         

$               0.99

 
             

SOURCE GFI Group Inc.

GFI Group and Ener-G enter into Data Agreement

GFI Market Data to supply power and gas data to UK clean tech solutions provider

New York, July 6, 2011 – GFI Market Data, a division of GFI Group Inc., announced today that it has entered into an agreement with ENER-G Procurement Ltd, a specialist consultancy in energy purchase and management, to provide its European power and gas market data. GFI will supply ENER-G Procurement with historical data as well as streaming updates.

Satish Pandey, ENER-G Procurement’s Head of Strategy & Risk Management said: “A leading broker like GFI offers a great deal of liquidity on the range of prices on the forward curve and this offers us greater confidence in our knowledge of the current state of the market. This knowledge helps us to better manage our supplier and client relationships” and added, “Accessing pricing is important but it is key that the liquidity behind those prices comes from a leading energy broker like GFI“.

Shai Popat, Head of European Sales at GFI Market Data commented: “We are delighted to have ENER-G Procurement as a client. It is pleasing to see a leading procurement company turning to GFI for an independent and comprehensive view of the energy markets. Our energy brokers are world class as is EnergyMatch®, our electronic trading platform and sourcing the pricing directly from this platform makes our market data of the highest quality.”

Sourced directly from GFI EnergyMatch®, GFI Group’s energy and commodities electronic  trading platform, GFI Market Data provides a comprehensive view of executable and executed prices in the Power, Gas, Emissions, Coal and Freight markets.

ENER-G Procurement Ltd is a consulting firm that works with companies from a wide range of sectors to develop optimum purchasing strategies. As an independent broker of electricity and natural gas, the company uses its purchasing expertise and market knowledge to secure the best procurement terms possible, while providing specialist services to manage an energy portfolio.

About GFI Market Data
GFI is uniquely positioned to provide the capital markets with specific suites of data. GFI Market Data refers to actual market prices and trade information, reflecting real market sentiment not just indications gleaned through consensus pricing. GFI Market Data’s product suite includes CDS, bonds, FX options, equities, interest rates and energy and commodities data.

GFI Market Data is the brand under which Fenics Software Limited operates its market data business.

 

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage, clearing services, 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 fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,900 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogotá, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

 

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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.

 

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

GFI FENICSSM Adds BofA Merrill Lynch to FENICS Trader™

BofA Merrill Lynch joins 5 top banks providing FX options liquidity to FENICS Trader

New York, June 20, 2011 – GFI FENICSSM, part of GFI Group Inc. (NYSE: GFIG), announced today that BofA Merrill Lynch has gone live as a liquidity provider on its FX options platform FENICS Trader. The bank will initially support options across 44 currency pairs.  

FENICS Trader, the pioneering e-Commerce solution for FX options, provides users with multi-bank FX options liquidity from a single user interface. Launched in February 2011 after a successful test period, trade volumes & notional amounts continue to increase as the product is rolled out.

Liam Hudson, Global Head of E-FX Trading at BofA Merrill Lynch, said, “We are pleased to support FENICS Trader with liquidity. Our aim is to provide our clients with a combination of high quality price support and the best possible service experience”. He added, “BofA Merrill Lynch liquidity will further enhance the value of FENICS Trader for our clients. Expanding our eFX options capability is a key part of BofA Merrill Lynch’s strategy to grow the FX franchise”.

Richard Brunt, Global Head of GFI FENICS stated, “We are delighted that a bank of the stature of BofA Merrill Lynch has agreed to support FENICS Trader and our many mutual clients with its liquidity. This will help maintain the very encouraging growth we have seen in trade volumes since our launch.”

BofA Merrill Lynch joins a growing liquidity pool on FENICS Trader, including BNP Paribas, Commonwealth Bank of Australia, Credit Suisse, UBS and Unicredit Bank AG.

Brunt added: “FENICS Trader continues to be well supported by the market-making banks, with other banks to go live in the coming months. The breadth of market coverage on FENICS Trader is very compelling and provides our clients very competitive prices in a single interface”.

FENICS Trader is available to clients via the FENICS Professional™ platform. FENICS Professional is a suite of pricing, trading, risk management and STP components allowing customers to control, monitor and oversee every aspect of FX option trading and lifecycle management from a single interface.

GFI FENICS has been providing leading FX derivatives software since 1987. Its products are licensed to over 350 client firms worldwide – financial institutions and corporations – with thousands of users benefiting from its solutions.

 

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage, clearing services, 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 fixed income, financial, equity and commodity instruments.

Fenics Software Limited is a subsidiary of GFI Group Inc.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,000 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogotá, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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.

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com 

 

GFI Group Signs Cambridge Mercantile Corp. For Fenics Professional™

Leading provider of global payment services and FX chooses GFI FENICSSM for FX options business

New York, June 14th, 2011 – GFI FENICSSM announced it has entered an agreement with Cambridge Mercantile Corporation of Toronto, Canada for the licensing of FENICS Professional™ 12.1 to support its new FX options business.

Bernard Heitner, CEO, Cambridge Mercantile Corp. said, “We evaluated several systems for FX options pricing, risk management, and transaction processing. FENICS Professional provides risk reporting that is easily tailored to the specific requirements of our FX options workflow making it the best platform to suit our needs. The GFI FENICS customer support team provides in-depth training and ongoing support to help us get the most out of FENICS Professional.”

Sue Poulin, Commercial Head of GFI FENICS for the Americas commented, “We are delighted that Cambridge Mercantile Corp. has selected FENICS Professional to assist in building its FX options business. FENICS Professional allows us to cater to the needs of clients in many different market segments as it provides a robust solution for FX options analysis, pricing and reporting” and added, “GFI FENICS has seen strong growth in the Americas over the last year as it continues to prove itself as a market-leading solution in FX options.”

FENICS Professional is a suite of pricing, trading, risk management and STP (straight-through processing) components allowing customers to control, monitor and oversee every aspect of FX option trading and lifecycle management from one single interface.

GFI FENICS has been providing leading FX derivatives software since 1987. Its products are licensed to over 350 institutions worldwide with thousands of users benefiting from its solutions. Clients include banks, multinational corporations, brokers, and hedge funds.

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage, clearing services, 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 fixed income, financial, equity and commodity instruments.

Fenics Software Limited is a subsidiary of GFI Group Inc.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,000 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogotá, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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.

For any queries or additional information please contact:

Patricia Gutierrez

Vice President – Public Relations

GFI Group Inc.

55 Water Street, 28th Floor

New York, NY 10041

Tel: (212) 968 2964

Mob: (646) 717 4379

patricia.gutierrez@gfigroup.com

GFI Group ranked no. 1 overall inter-dealer broker in the Credit category

2nd year running GFI achieves top spot in IDB Rankings

New York, May 17, 2011 – GFI Group, Inc (NYSE: “GFIG”) a leading provider of wholesale brokerage, electronic execution and trading support products for global financial markets, has been ranked 2011 No.1 overall inter-dealer broker in the credit category by Credit magazine.

The rankings are based on a poll of European credit traders actively trading fixed income with inter-dealer brokers as counterparties. Respondents were asked to vote across five categories: investment grade, high yield cash and CDS and index trading. GFI Group was voted number 1 in three out of 5 categories.

Colin Heffron, President of GFI Group said, “Over the last couple of years the credit markets have been extremely challenging. To be recognized as a consistent number one during this period is very gratifying,” and added, “I believe the continued integration of our cash and derivatives businesses has been a key to our success.”

Voters clearly stated the Group’s strength as a source of liquidity amongst other driving factors when evaluating GFI Group.

 

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage, clearing services, 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 fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,900 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogot?, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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.

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com
 

GFI Group Sets up New STiRs Desk

Offering Listed Fixed Income Futures and Options Trading in Chicago and New York

New York, May 10, 2011 ? GFI Group Inc. (NYSE: “GFIG”) today announced the launch of its Short Term Interest Rate Futures and Options desk*. The new desk will execute a variety of contracts including Eurodollar Futures and Options, US Treasury Futures and Options, 30 Day Fed Funds and the execution of UK and European short and long end derivatives.

The new desk, with operations in Chicago and New York will be run by John Wagner and Simon Gittins. The group has a combined experience of over 50 years in brokering Eurodollar and Treasury futures and options.

The Chicago team will be led by John Wagner. John will be joined by Robert Smearman. The team will be located directly on the floor of the Chicago Mercantile Exchange. John has participated in Eurodollar markets for the past 25 years spending the majority as an independent pit broker (WGZ) covering a diverse client base. Prior to joining GFI, Robert Smearman worked for First Boston, Credit Suisse and NewEdge Group where he covered swap/swaption trading desks as well as several premier hedge funds. 

The New York operation is to be run by Simon Gittins. Simon joins GFI from Mako Financial Markets LLC, where he was running the New York Sales trading team executing equity, commodity and fixed income derivatives.

Richard Giles, Managing Director at GFI Group and Head of Energy and Commodities Brokerage in North America said:” We are very happy to have John, Simon and Bob join us in developing our listed fixed income business. We are confident their experience and knowledge of these markets will enable us to provide a unique and specialized service to our customers.”

John Wagner, head of the Chicago team stated: “We are excited to join GFI and to have such an excellent opportunity within this highly competitive space. We will provide our clients with floor sentiment, market trends and relative values,  key data sets that will be used with integrity in the process of efficient price discovery.” 

Simon Gittins, head of the New York team commented: “This is a unique opportunity for us. Joining GFI we allow us to provide real value added to our client base. Together with the Chicago team, we will offer our clients our experience, our insights and our ability to maximize opportunities when they arise”. 

The new desk will offer its clients a customized service that will include idea generation, short, medium, long-term strategy recommendations and technical analysis support.   

*The StiRs desk conducts business through GFI Securities LLC a subsidiary of GFI Group Inc.

 

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage, clearing services, 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 fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,900 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogot?, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet?, CreditMatch?, GFI ForexMatch?, EnergyMatch?, FENICS?, Starsupply?, Amerex?, Trayport? and Kyte?.

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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.

 

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

GFI FENICSSM & Market Data Expand Team In Asia

Success of FENICS ProfessionalTM and growing client base drives team expansion

New York, May 4, 2011 – GFI Group (NYSE: “GFIG”) announced today that GFI FENICS has further expanded its commercial team in Asia Pacific with four new hires across the region.

Patrick Gassner, will take on the role of Head of Market Data Sales, Asia based in GFI’s Hong Kong office. Gassner joins GFI from Thomson Reuters, where he held the position of Data Solution Specialist. 

Barry Moore will serve as the Commercial Head for Australia and New Zealand, based in the GFI Sydney office. Prior to joining GFI FENICS, Moore worked as an FX Option Trader at St George Bank and more recently at Westpac.

Lionel Chan joins the GFI FENICS team in Hong Kong as a Product Specialist and will head up the GFI FENICS Implementation Group in North Asia. Mr. Chan was previously working at BNP Paribas Hong Kong as a Systems Analyst.

John Betts will become Head of GFI FENICS Account Management for Asia, a newly created position based in Singapore. Mr. Betts has been with GFI FENICS in its London office for 3 years. He will be responsible for managing the regional client services team.

Richard Brunt, Global Head of FENICS & Market Data at GFI said: “We continue to invest in the team in Asia, as a direct response to our growing client based throughout the region. What is very pleasing is that the business is able to hire directly from the market, thus bringing in-depth market knowledge to our business” and added, “This experience is critical to meet the needs of our clients as they implement regional deployments of the FENICS Professional solution”.

Brunt continued: “Patrick’s experience in Market Data Systems and Data Licensing reflects the impressive growth in GFI’s Market Data business in the Region to date, and our growing suite of unique data products in the region” added Brunt. .

 

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NYSE “GFIG”) 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 fixed income, financial, equity and commodity instruments.

Fenics Software Limited is a subsidiary of GFI Group Inc.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,800 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogotá, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport®, and Kyte®.

 

 

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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.

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com

GFI Group Inc. Announces First Quarter 2011 Results; Declares Quarterly Cash Dividend

— GAAP Net Revenues: $228.9 Million: Non-GAAP Net Revenues $234.1 Million

NEW YORK, April 28, 2011 /PRNewswire/ — GFI Group Inc. (NYSE: GFIG), a leading provider of wholesale brokerage services, clearing services, electronic execution and trading support products for global financial markets, reported today its financial results for the first quarter ended March 31, 2011.

Highlights

  • GAAP net revenues were $228.9 million for the first quarter of 2011, an increase of 7.3% from $213.4 million in the first quarter of 2010. On a non-GAAP basis, net revenues increased 9.7% to $234.1 million from $213.4 million in the first quarter of 2010.

  • Brokerage revenues for the first quarter of 2011 rose 6.8% to $218.0 million compared with $204.1 million in the first quarter of 2010.

  • Compensation and employee benefits expense in the first quarter of 2011 was 69.7% and 68.1% of net revenues on a GAAP and non-GAAP basis, respectively. This compares with 67.8% of net revenues on both a GAAP and non-GAAP basis in the first quarter of 2010.

  • Non-compensation expenses were 25.8% of net revenues on a GAAP basis and 23.2% on a non-GAAP basis in the first quarter of 2011. This compares with 22.8% of net revenues on a GAAP basis and 22.1% on a non-GAAP basis in the first quarter of 2010.

  • Net income for the first quarter of 2011 was $6.7 million, or $0.05 per diluted share, compared with $13.4 million, or $0.11 per diluted share, in the first quarter of 2010. On a non-GAAP basis, net income was $13.7 million, or $0.11 per diluted share, for the first quarter of 2011, compared with $14.4 million, or $0.12 per diluted share, in the first quarter of 2010.

Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “Our revenue growth in the first quarter of 2011 was driven by a more favorable trading environment across all our geographic regions and product areas, especially in emerging markets, and through the addition of Kyte

“Our fixed income product revenues were flat with the first quarter of 2010. Revenues from fixed income derivatives were 2.9% higher than the prior year quarter due, in part, to the strong performance of our CreditMatch® trading platform and the addition of Kyte, while our revenues from cash fixed income products were down 2.5% from the first quarter of 2010.

“Equity product revenues were 1.2% higher than the first quarter of 2010 as improvement in our European and Asia-Pacific equity businesses offset lower revenues in the U.S.

“Emerging markets in the Americas and Asia-Pacific contributed to strong growth in our financial product revenues, which increased 27.3% over the first quarter of 2010. This growth reflected increases across all regions, as well as the contribution from new desks.

“Commodity product revenues rose 6.0% year-over-year, reflecting growth in our existing energy businesses in Europe and the Americas, volatility in the energy markets and the contribution from new desks.

“Compensation and employee benefits expense was up from the first quarter of 2010 but improved, as a percentage of net revenues, when compared with the fourth quarter of 2010. The year-over-year increase reflects our investments in brokerage and technology staff and our Kyte acquisition. Non-compensation expense was higher than the first quarter of 2010, but was also an improvement, as a percentage of net revenues, when compared to the fourth quarter of 2010.

“Looking at the second quarter of 2011 to date, our preliminary brokerage revenues for April, excluding Kyte, are tracking down 19% compared with brokerage revenues for the same month last year. This month-to-date performance in April follows an active March, which was our best month in over two years. We believe our April performance is in line with broader market volumes and volatility levels, and there were an unusually large number of holidays falling within the month.

“Following a strong first quarter and despite a sluggish April, we are encouraged by the increasing usage of GFI’s electronic trading technology and believe that it positions GFI well in the changing financial landscape. We believe that enhanced regulatory transparency, central clearing and efficient execution will benefit and eventually grow global derivative markets, and we remain confident that GFI will qualify in the U.S. as a Swap Execution Facility, and in Europe as an Organized Trading Facility. We expect that our hybrid electronic trading platforms will continue to build upon their past successes, becoming more engrained in customer work-flows and in the framework of the swaps markets.

Mr. Gooch concluded: “We are pleased to declare a quarterly cash dividend of $0.05 per share to our shareholders.”

Revenues

Net revenues were $228.9 million and $234.1 million on a GAAP and non-GAAP basis, respectively, in the first quarter of 2011, as compared with $213.4 million on a GAAP and non-GAAP basis in the first quarter of 2010. Non-GAAP net revenue in the first quarter of 2011 excluded $4.4 million in mark-to-market loss on forward hedges of future foreign currency revenues and $0.7 million related to a future purchase commitment.

Brokerage revenues in the first quarter of 2011 were $218.0 million compared with $204.1 million in the first quarter of 2010. Revenues from financial products increased 27.3%, commodity product revenues increased 6.0% and equity product revenues increased 1.2%, while fixed income product revenues were flat, compared with the first quarter of 2010. By geographic region, excluding Kyte, brokerage revenues for the first quarter of 2011 increased 20% in Asia-Pacific and 2% in EMEA, while decreasing 1% in the Americas, compared with the first quarter of 2010.

Revenues from trading software, analytics and market data products for the first quarter of 2011 were $17.1 million, up 14.7% from the first quarter of 2010.

Expenses

For the first quarter of 2011, compensation and employee benefits expense was $159.5 million on a GAAP and non-GAAP basis. This compares with $144.7 million on a GAAP and non-GAAP basis in the first quarter of 2010. Compensation and employee benefits expense increased to 69.7% and 68.1% of net revenues on a GAAP and non-GAAP basis, respectively, in the first quarter of 2011 from 67.8% of net revenues on a GAAP and non-GAAP basis, in the first quarter of 2010.

On a GAAP basis, non-compensation expenses for the first quarter of 2011 were $59.1 million or 25.8% of net revenues compared with $48.6 million or 22.8% of net revenues in the first quarter of 2010. On a non-GAAP basis, non-compensation expenses for the first quarter of 2011 were $54.2 million or 23.2% of net revenues, compared with $47.2 million or 22.1% of net revenues in the first quarter of 2010.

The effective tax rate for the first quarter of 2011 was 26.0% on a GAAP basis and 28.5% on a non-GAAP basis, as compared with 33.5% on both a GAAP and non-GAAP basis in the first quarter of 2010.

Earnings

Net income on a GAAP basis for the first quarter of 2011 was $6.7 million, or $0.05 per diluted share, compared with net income of $13.4 million, or $0.11 per diluted share, in the first quarter of 2010. On a non-GAAP basis, net income for the first quarter of 2011 was $13.7 million, or $0.11 per diluted share, compared with $14.4 million or $0.12 per diluted share for the first quarter of 2010.

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 total revenues, non-GAAP net revenues, non-GAAP net income, non-GAAP diluted earnings per share and adjusted EBITDA. 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 in the reconciliation included in the financial tables attached to this release.

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.

A reconciliation of the non-GAAP amounts to GAAP amounts is included in the financial tables attached to this release.

Dividend Declaration

The Board of Directors of GFI Group has declared a quarterly cash dividend of $0.05 per share payable on May 31, 2011 to shareholders of record on May 17, 2011.

Conference Call

GFI has scheduled an investor conference call to discuss its first quarter results at 8:30 a.m. (Eastern Time) on Friday, April 29, 2011. Those wishing to listen to the live conference call via telephone should dial 1-800-860-2442 in North America and +1-412-858-4600 in Europe, and ask for “GFI”.

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. (NYSE: “GFIG”) is a leading provider of wholesale brokerage services, clearing services, 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 fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,000 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(SM), GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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

 
   

March 31,

 
   

2011

 

2010

 

Revenues

       
 

Agency commissions

$ 147,483

 

$ 143,830

 
 

Principal transactions

70,487

 

60,296

 
 

Total brokerage revenues

217,970

 

204,126

 
 

Clearing services revenues

27,670

 

 
 

Interest income from clearing services

342

 

 
 

Equity in earnings of unconsolidated brokerage businesses

2,374

 

 
 

Software, analytics and market data

17,088

 

14,900

 
 

Other income/(loss)

(2,546)

 

1,749

 
 

Total revenues

262,898

 

220,775

 
           

Interest and transaction-based expenses

       
 

Transaction fees on clearing services

27,069

 

 
 

Transaction fees on brokerage services

6,605

 

7,424

 
 

Interest expense from clearing services

326

 

 
 

Total interest and transaction-based expenses

34,000

 

7,424

 
 

Revenues, net of interest and transaction-based expenses

228,898

 

213,351

 
           

Expenses

       
 

Compensation and employee benefits

159,481

 

144,663

 
 

Communications and market data

15,071

 

11,886

 
 

Travel and promotion

10,203

 

8,893

 
 

Rent and occupancy

5,873

 

5,431

 
 

Depreciation and amortization

9,874

 

8,184

 
 

Professional fees

7,103

 

6,597

 
 

Interest on borrowings

2,936

 

2,575

 
 

Other expenses

8,081

 

5,008

 
 

Total other expenses

218,622

 

193,237

 
           

Income before provision for income taxes

10,276

 

20,114

 
           

Provision for income taxes

2,672

 

6,738

 
           

Net income before attribution to non-controlling shareholders

7,604

 

13,376

 
           

Less: Net income attributable to non-controlling interests

858

 

 

GFI’s net income

$ 6,746

 

$ 13,376

 
           
           

Basic earnings per share

$ 0.06

 

$ 0.11

 

Diluted earnings per share

$ 0.05

 

$ 0.11

 
           

Weighted average shares outstanding – basic

119,524,627

 

118,606,954

 
           

Weighted average shares outstanding – diluted

128,209,107

 

122,861,743

 
           
           
           

GFI Group Inc. and Subsidiaries

 

Consolidated Statements of Income (unaudited)

 

As a Percentage of Net Revenues

 
           
           
   

Three Months Ended

 
   

March 31,

 
   

2011

 

2010

 

Revenues

       
 

Agency commissions

64.4%

 

67.4%

 
 

Principal transactions

30.8%

 

28.3%

 
 

Total brokerage revenues

95.2%

 

95.7%

 
 

Clearing services revenues

12.1%

 

 
 

Interest income from clearing services

0.1%

 

 
 

Equity in earnings of unconsolidated brokerage businesses

1.0%

 

 
 

Software, analytics and market data

7.5%

 

7.0%

 
 

Other income/(loss)

-1.1%

 

0.8%

 
 

Total revenues

114.8%

 

103.5%

 
           

Interest and transaction-based expenses

       
 

Transaction fees on clearing services

11.8%

 

 
 

Transaction fees on brokerage services

2.9%

 

3.5%

 
 

Interest expense from clearing services

0.1%

 

 
 

Total interest and transaction-based expenses

14.8%

 

3.5%

 
 

Revenues, net of interest and transaction-based expenses

100.0%

 

100.0%

 
           

Expenses

       
 

Compensation and employee benefits

69.7%

 

67.8%

 
 

Communications and market data

6.6%

 

5.6%

 
 

Travel and promotion

4.4%

 

4.2%

 
 

Rent and occupancy

2.6%

 

2.5%

 
 

Depreciation and amortization

4.3%

 

3.8%

 
 

Professional fees

3.1%

 

3.1%

 
 

Interest on borrowings

1.3%

 

1.2%

 
 

Other expenses

3.5%

 

2.4%

 
 

Total other expenses

95.5%

 

90.6%

 
           

Income before provision for income taxes

4.5%

 

9.4%

 
           

Provision for income taxes

1.2%

 

3.1%

 
           

Net income before attribution to non-controlling shareholders

3.3%

 

6.3%

 
           

Less: Net income attributable to non-controlling interests

0.4%

 

 

GFI’s net income

2.9%

 

6.3%

 
         

GFI Group Inc. and Subsidiaries

 

Selected Financial Data (unaudited)

 

(Dollars in thousands)

 
               
               
       

Three Months Ended

 
       

March 31,

 
       

2011

 

2010

 
               

Brokerage Revenues by Product Categories:

       
 

Fixed Income

 

$ 71,507

 

$ 71,484

 
 

Financial

   

48,505

 

38,110

 
 

Equity

   

48,157

 

47,566

 
 

Commodity

   

49,801

 

46,966

 
               
 

Total brokerage revenues

$ 217,970

 

$ 204,126

 
               
               

Brokerage Revenues by Geographic Region:

       
 

Americas

   

$ 77,021

 

$ 77,401

 
 

Europe, Middle East, and Africa

111,892

 

107,877

 
 

Asia-Pacific

   

29,057

 

18,848

 
               
 

Total brokerage revenues

$ 217,970

 

$ 204,126

 
               
               
               
               
       

March 31,

 

December 31,

 
       

2011

 

2010

 
               

Consolidated Statement of Financial Condition Data:

       
 

Cash and cash equivalents

$ 276,809

 

$ 313,875

 
 

Deposits with clearing organizations

40,633

 

26,845

 
 

Total balance sheet cash on hand

317,442

 

340,720

 
 

Balance sheet cash per share

2.57

 

2.79

 
               
 

Total assets (1)

 

1,427,373

 

1,271,024

 
 

Total debt, including current portion

217,384

 

192,446

 
 

Stockholders’ equity

 

491,655

 

490,711

 
               
               

Selected Statistical Data:

         
 

Brokerage personnel headcount (2)

1,207

 

1,161

 
 

Employees

   

2,059

 

1,990

 
 

Broker productivity for the period (3)

$ 182

 

$ 156

 
               
               
               

(1) Total assets include receivables from brokers, dealers and clearing organizations of $397.1 million and $243.8 million at March 31, 2011 and December 31, 2010, 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, as well as balances with clearing organizations. These receivables are substantially offset by corresponding payables to brokers, dealers and clearing organizations for these unsettled transactions.

 

(2) Brokerage personnel headcount includes brokers, traders, 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

 
 

March 31,

 
 

2011

 

2010

 
         

GAAP revenues

$ 262,898

 

$ 220,775

 

Mark-to-market loss on forward hedges

       

of future foreign currency revenues

4,440

 

98

 

Fair value mark-to-market on future purchase commitment

731

 

 

Total Non-GAAP revenues

268,069

 

220,873

 
         

GAAP Interest and transaction-based expenses

34,000

 

7,424

 
         

Non-GAAP revenues, net of interest and transaction based expenses

234,069

 

213,449

 
         

GAAP other expenses

218,622

 

193,237

 

Amortization of intangibles

(3,032)

 

(1,397)

 

Accounting impact of increased ownership stake in an investee

(1,863)

 

 

Non-GAAP other expenses

213,727

 

191,840

 
         

Income tax impact on Non-GAAP items

3,125

 

501

 

Non-GAAP provision for income taxes

5,797

 

7,239

 
         

Net income attributable to non-controlling interests

858

 

 
         

GFI’s Non-GAAP net income

$ 13,687

 

$ 14,370

 
         

Non-GAAP diluted net income per share

$ 0.11

 

$ 0.12

 
         

Weighted average Non-GAAP shares outstanding – diluted

128,209,107

 

122,861,743

 
       

GFI Group Inc.

             

Adjusted EBITDA

             
               

($ in ‘000’s, except per share amounts)

1Q10

2Q10

3Q10

4Q10

1Q11

Last twelve months (LTM)

 
               

Net Income (loss) per U.S. GAAP before attribution to non-controlling interests

$ 13,376

$ 10,424

$ (2,335)

$ 4,454

$ 7,604

   
               

Plus: Net (income) loss attributable to non-controlling interests

(151)

(153)

(858)

   

GFI’s Net Income/(Loss)

13,376

10,424

(2,486)

4,301

6,746

   
               

Plus/Less: Extraordinary and other non-recurring

             

(gains) and losses (i.e., non-GAAP adjustments)

1,495

2,195

9,012

746

10,066

   
               

Plus: Interest expense

2,575

2,730

3,204

2,981

3,262

   
               

Less: Interest income

(240)

(77)

(914)

(774)

(690)

   
               

Plus: Income tax expense (benefit)

6,738

3,955

(1,050)

(3,759)

2,672

   
               

Plus: Depreciation and amortization expense (excluding intangibles)

6,787

6,414

6,737

6,678

6,842

   
               

Plus: Amortization of RSU’s

6,784

6,511

6,894

6,485

7,492

   
               

Plus: Amortization of cash sign-on bonuses

5,192

8,344

5,070

5,823

5,998

   
               

Adjusted EBITDA

$ 42,707

$ 40,496

$ 26,467

$ 22,481

$ 42,388

$ 131,832

 
               

Weighted average shares outstanding – diluted

         

128,209,107

 
               

Adjusted EBITDA per share (pre-tax)

         

$ 1.03

 
             

SOURCE GFI Group Inc.

GFI Group Launches US Coal Desk

To offer US and European cleared coal swaps on Trayport’s® technology

New York, April 20, 2011 – GFI Group Inc. (NYSE: “GFIG”) today announced it has set up a US Coal Desk in its New York office. The new desk will broker US and European centrally-cleared coal swaps for domestic clients using a single screen. Working closely with GFI’s existing coal desk in London, the US desk will add to the already strong position GFI holds in the global coal markets by now offering U.S. clients the possibility to trade US and European centrally-cleared coal swaps using GFI’s Trayport®-powered hybrid trading technology.

Richard Giles, GFI Group Managing Director and Head of Commodities and Energy Brokerage North America said: “We are very excited to be able to respond to our clients’ demand by adding this new desk to our commodities offering worldwide. We are the first to provide US coal traders with one single point for the trading for European and domestic cleared swaps”, and added, “Our clients will have the ability to trade using Trayport’s technology, which integrates GFI’s voice and electronic capabilities.”.

The desk is staffed by three brokers: Geoffrey Puzzi, Larry LaCosta and Nicholas Stefans, who bring to GFI over 35 years of combined experience in the commodities sector, twelve of them in the coal markets. Geoffrey Puzzi started his career at CBOT and NYMEX and worked for MF Global before joining GFI Group. Larry LaCosta is a member of the New York Coal Trade Association and a member of its board of governors. Larry has over 30 years institutional brokering experience and, before joining GFI Group, owned and operated LGL Energy Market Services, LLC, brokering coal and renewable energy credits.  Nicholas Stefans started his career at GFI Group’s London office where he joined the European coal desk.

Trayport is a leading provider of software to the global commodity trading community. It develops, deploys and supports quality, resilient software for trading in any asset class worldwide in cleared or OTC markets.

 

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage, clearing services, 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 fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,900 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogotá, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

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 GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: 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; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. 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.

 

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379


patricia.gutierrez@gfigroup.com