FXCM Group Provides Financial Information for Third Quarter 2017
(Thomson Reuters ONE) -
NEW YORK, Nov. 14, 2017 (GLOBE NEWSWIRE) -- FXCM Group, LLC ("FXCM Group" or
"FXCM"), a leading international provider of online foreign exchange trading,
CFD trading, spread betting and related services, today provided selected
financial information regarding its third quarter 2017 results.
"Despite multi-year low volatility in the currency markets in the third quarter,
we were able to generate Adjusted EBITDA of $3.8 million, including a $1.2
million charge for severance expense as we continue to improve our cost
structure," said Brendan Callan, CEO of FXCM. "Additionally, we repaid $55.8
million of our loan with Leucadia and now have $67.6 million of principal
outstanding on our original $300.0 million loan."
FXCM Group, LLC (US Millions) (unaudited)
Selected Income Statement Data
Three Months Nine Months
Ended Ended
September September
30, 2017 30, 2017
---------------- ---------------
Total Net Revenues $ 44.0 $ 139.2
Operating Expenses(1) $ 40.1 $ 118.6
Loss from Continuing Operations $ (5.8 ) $ (18.1 )
Net Income $ 47.6 $ 17.0
Adjusted EBITDA - Continuing Operations(2) $ 3.8 $ 21.7
(1) Excludes depreciation and amortization of $4.8 million and $14.9 million for
the three and nine months ended September 30, 2017, respectively.
(2) See reconciliation following
Selected Balance Sheet Data
As of
September 30, 2017
---------------------
Cash and Cash Equivalents $ 121.2
Cash and cash equivalents, held for customers $ 331.4
Total Assets $ 554.1
Credit Agreement to Leucadia (net)(3) $ 64.3
Total Members' Capital $ 66.6
(3) Net of $3.3 million of unamortized discount.
Selected Customer Trading Metrics for Continuing Operations
Three Months Nine Months
Ended Ended
September September
30, 2017 30, 2017
------------------ ---------------
Tradeable accounts 104,356 104,356
Active accounts 122,806 122,806
Daily average trades 332,076 366,350
Daily average trades per active account 2.7 3.0
Total trading volume (billions) $ 616 $ 1,908
Trading revenue per million traded $ 69 $ 72
Average customer trading volume per day
(billions) $ 9.5 $ 9.8
Trading days 65 194
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA(4) - Continuing
Operations
(US Millions) (unaudited)
Three Months Nine Months
Ended Ended
September September
30, 2017 30, 2017
---------------- ---------------
Net Income $ 47.6 $ 17.0
Adjustments:
Net loss attributable to non-controlling
interests(5) (11.0 ) (21.4 )
Income from discontinued operations, net of
tax(6) (42.4 ) (13.6 )
Income tax provision 0.4 1.2
Interest on borrowings 9.2 29.0
Gain on derivative liability - Leucadia
financing(7) (4.7 ) (6.2 )
General and administrative(8), (9) (0.1 ) 1.0
Depreciation and amortization 4.8 14.9
Gain on sale of equity method investment(10) - (0.2 )
---------------- ---------------
Total Adjustments (43.8 ) 4.7
---------------- ---------------
Adjusted EBITDA(4) - Continuing Operations $ 3.8 $ 21.7
---------------- ---------------
(4) Adjusted EBITDA from Continuing Operations is a Non-GAAP measure that is not
prepared under any comprehensive set of accounting rules or principles and does
not reflect all of the amounts associated with the Company's results of
operations as determined in accordance with U.S. GAAP.
(5) Represents the elimination of the share of net loss allocated among the non-
controlling interests to calculate total consolidated net income (loss) from the
Company's operations.
(6) Represents the elimination of the income or loss attributable to
discontinued operations, net of tax, in order to calculate income attributable
to continuing operations only.
(7) Represents the elimination of the gain or loss attributable to the
derivative liability embedded in the Company's financing agreement with
Leucadia, as it is a non-operating, non-cash gain or loss.
(8) For the three months ended September 30, 2017, represents an adjustment to
the charges to reserve for restitution related to trade execution practices
prior to August 2010.
(9) For the nine months ended September 30, 2017, represents the elimination of
charges to reserve for restitution related to trade execution practices prior to
August 2010 and client adjustments related to various trading platform issues.
(10) Represents the elimination of a gain on sale of an equity method investment
which was impaired in 2016.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with U.S. GAAP, we have
provided Adjusted EBITDA, a Non- GAAP financial measure. We believe this Non-
GAAP measure, when presented in conjunction with the comparable U.S. GAAP
measure, is useful to investors in better understanding our current financial
performance as seen through the eyes of management and facilitates comparisons
of our historical operating trends across several periods. We believe that
investors use Adjusted EBITDA as a supplemental measure to evaluate the overall
operating performance of companies in our industry that present similar
measures, although the methods used by other companies in calculating Adjusted
EBITDA may differ from our method, even if similar terms are used to identify
such measure.
Adjusted EBITDA provides us with an understanding of the results from the
primary operations of our business by excluding the effects of certain gains,
losses or other charges that do not reflect the normal earnings of our core
operations or that may not be indicative of our future outlook and prospects.
Internally, Adjusted EBITDA is used by management for various purposes,
including to evaluate our operating performance and operational strategies, and
as a basis for strategic planning, forecasting and for compensation purposes.
Adjusted EBITDA does not represent and should not be considered as a substitute
for net income or net income attributable to FXCM Group, LLC., each as
determined in accordance with U.S. GAAP. Adjusted EBITDA reflects the following
adjustments to net income:
Regulatory and Legal Costs. Adjustments have been made to eliminate certain
costs or recoveries (including client reimbursements, regulatory fines and
settlements from lawsuits) associated with certain regulatory and legal matters.
Given the nature of these expenses, they are not viewed by management as
expenses incurred in the ordinary course of business and we believe it is useful
to show the effects of eliminating these expenses.
Gain on sale of equity method investment. An adjustment has been made to
eliminate the gain on the sale of an equity method investment which had
previously been impaired in December 2016. Given the nature of this gain, it is
not viewed by management as income in the ordinary course of business and we
believe it is useful to show the effects of eliminating this gain.
About FXCM Group, LLC
FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading,
spread betting and related services. The company's mission is to provide global
traders with access to the world's largest and most liquid market by offering
innovative trading tools, hiring excellent trading educators, meeting strict
financial standards and striving for the best online trading experience in the
market. Clients have the advantage of mobile trading, one-click order execution
and trading from real-time charts. In addition, FXCM offers educational courses
on FX trading and provides trading tools proprietary data and premium
resources. FXCM Pro provides retail brokers, small hedge funds and emerging
market banks access to wholesale execution and liquidity, while providing high
and medium frequency funds access to prime brokerage services via FXCM Prime.
Trading foreign exchange and CFDs on margin carries a high level of risk, which
may result in losses that could exceed your deposits, therefore may not be
suitable for all investors. Read full disclaimer.
FXCM Group is a holding company of Forex Capital Markets Limited, inclusive of
all EU branches (FXCM UK), FXCM Australia Pty. Limited (FXCM AU), and all
affiliates of aforementioned firms, or other firms under the FXCM group of
companies [collectively "FXCM"].
Jaclyn Sales, 646-432-2463
Vice-President, Corporate Communications
jsales(at)fxcm.com
FXCM Group, LLC and Subsidiaries
Consolidated Statement of Financial Condition
As of September 30, 2017
(In thousands, unaudited)
Assets
Current assets:
Cash and cash equivalents $ 121,232
Cash and cash equivalents, held for customers 331,447
Due from brokers 33
Accounts receivable, net 16,255
Tax receivable 221
Assets held for sale 40,649
------------
Total current assets 509,837
Deferred tax asset 887
Office, communication and computer equipment, net 27,921
Other intangible assets, net 1,475
Other assets 14,029
------------
Total assets $ 554,149
------------
Liabilities and members' capital
Current liabilities:
Customer account liabilities $ 331,447
Accounts payable and accrued expenses 27,169
Due to related party 2,483
Due to brokers 1,948
Credit Agreement - Related Party 64,329
Other liabilities 400
Liabilities held for sale 2,976
------------
Total current liabilities 430,752
Deferred tax liability 282
Other liabilities 7,034
------------
Total liabilities 438,068
Redeemable non-controlling interest (Leucadia) 49,454
Members' capital:
Members' capital - Global Brokerage Holdings, LLC 49,454
Non-controlling interests 17,173
------------
Total members' capital 66,627
------------
Total liabilities, Redeemable non-controlling interest (Leucadia)
and Members' capital $ 554,149
------------
FXCM Group, LLC and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2017
(In thousands, unaudited)
For the Three Year to Date
Months Ended Period Ended
September September
30, 2017 30, 2017
---------------- ---------------
Revenues:
Trading revenue $ 42,785 $ 136,664
Net interest revenue 382 870
Other income 804 1,682
---------------- ---------------
Total net revenues 43,971 139,216
Operating Expenses:
Compensation and benefits 14,762 40,316
Referring broker fees 5,443 18,710
Advertising and marketing 4,017 11,644
Communication and technology 5,494 17,027
Trading costs, prime brokerage and clearing
fees 996 2,511
General and administrative 8,542 25,680
Management fee 848 2,662
Depreciation and amortization 4,770 14,908
---------------- ---------------
Total operating expenses 44,872 133,458
Operating (loss) income (901 ) 5,758
Other Expense
Gain on derivative liability - Credit
Agreement (4,668 ) (6,172 )
Gain on equity method investments, net - (170 )
Interest on borrowings 9,169 28,981
---------------- ---------------
Loss from continuing operations before income
taxes (5,402 ) (16,881 )
Income tax provision 383 1,171
---------------- ---------------
Loss from continuing operations (5,785 ) (18,052 )
Income from discontinued operations, net of
tax 42,364 13,613
---------------- ---------------
Net income (loss) 36,579 (4,439 )
Net loss attributable to non-controlling
interests (11,028 ) (21,407 )
---------------- ---------------
Net income attributable to FXCM Group, LLC $ 47,607 $ 16,968
---------------- ---------------
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FXCM, Inc. via GlobeNewswire
Datum: 14.11.2017 - 20:00 Uhr
Sprache: Deutsch
News-ID 568189
Anzahl Zeichen: 19858
contact information:
Town:
New York
Kategorie:
Business News
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"FXCM Group Provides Financial Information for Third Quarter 2017"
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