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FXCM Inc. Announces First Quarter 2016 Results

First Quarter 2016 Highlights:

  • U.S. GAAP net revenues from continuing operations of $71.5 million
  • U.S. GAAP net income attributable to FXCM Inc. from continuing operations of $61.3 million or $10.94 per fully diluted share, including a $110.8 million gain on derivative liability
  • U.S. GAAP net revenues from discontinued operations of $6.5 million
  • U.S. GAAP net loss attributable to FXCM Inc. from discontinued operations of $11.5 million or $2.06 per fully diluted share
  • Adjusted EBITDA from continuing and discontinued operations of $10.3 million
  • Strong combined operating cash position of $235.7 million and regulatory surplus of $107.2 million at March 31, 2016

April 2016 Customer Trading Metrics from Continuing Operations(2) Highlights:

  • Retail customer trading volume(3) of $287 billion in April 2016, 1% lower than March 2016 and 6% lower than April 2015.
  • Institutional customer trading volume(3) of $75 billion in April 2016, 10% lower than March 2016 and 83% higher than April 2015.

Presentation slides for the quarter are available at http://ir.fxcm.com/.

NEW YORK, May 06, 2016 (GLOBE NEWSWIRE) -- FXCM Inc. (FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended March 31, 2016, U.S. GAAP trading revenue from continuing operations of $69.7 million, compared to $69.2 million for the quarter ended March 31, 2015. U.S. GAAP net income attributable to FXCM Inc. from continuing operations was $61.3 million for the quarter ended March 31, 2016, or $10.94 per fully diluted share, compared to U.S. GAAP net loss attributable to FXCM Inc. from continuing operations of $393.3 million, or $83.45(1) per fully diluted share, for the quarter ended March 31, 2015.

Results from operations for the quarter ended March 31, 2016 included a gain on derivative liability of $110.8 million. The gain is a non-cash item relating to the decrease in value of the Leucadia Letter Agreement. The Letter Agreement is a component of the financing package provided by Leucadia National Corp. (“Leucadia”). On January 15, 2015, FXCM’s customers suffered negative equity balances due to the unprecedented move in the Swiss Franc after the Swiss National Bank (“SNB”) discontinued its peg of the Swiss Franc to the Euro. On January 16, 2015, FXCM entered into a financing agreement with Leucadia that permitted FXCM’s regulated subsidiaries to meet their regulatory capital requirements and continue normal operations after significant losses were incurred resulting from the events of January 15, 2015.

U.S. GAAP trading revenue from discontinued operations for the quarter ended March 31, 2016 was $6.3 million, compared to $26.3 million for the quarter ended March 31, 2015. U.S. GAAP net loss attributable to FXCM Inc. from discontinued operations was $11.5 million for the quarter ended March 31, 2016, or $2.06 per fully diluted share compared to U.S. GAAP net loss attributable to FXCM Inc. from discontinued operations of $33.5 million, or $7.11(1) per fully diluted share, for the quarter ended March 31, 2015.

Adjusted EBITDA from continuing and discontinued operations for the quarter ended March 31, 2016 was $10.3 million, compared to $14.5 million for the quarter ended March 31, 2015.

Adjusted EBITDA from continuing operations was $9.3 million for the quarter ended March 31, 2016 compared to $3.4 million for the quarter ended March 31, 2015.

Adjusted EBITDA is a Non-GAAP financial measure. This measure does not represent and should not be considered as a substitute for net income, net income attributable to FXCM Inc. or net income per Class A share or as a substitute for cash flow from operating activities, each as determined in accordance with U.S. GAAP, and our calculations of these measures may not be comparable to similarly entitled measures reported by other companies. See “Non-GAAP Financial Measures” beginning on A-3 of this release for additional information regarding these Non-GAAP financial measures and for reconciliations of such measures to the most directly comparable measures calculated in accordance with U.S. GAAP.

FXCM Inc. today announced certain key customer trading metrics for April 2016. Monthly activities included:

April 2016 Customer Trading Metrics from Continuing Operations (2)

Retail Customer Trading Metrics

  • Retail customer trading volume(3) of $287 billion in April 2016, 1% lower than March 2016 and 6% lower than April 2015.
  • Average retail customer trading volume(3) per day of $13.7 billion in April 2016, 8% higher than March 2016 and 1% lower than April 2015.
  • An average of 584,753 retail client trades per day in April 2016, 4% higher than March 2016 and 15% higher than April 2015.
  • Active accounts(4) of 176,812 as of April 30, 2016, an increase of 1,076, or 1%, from March 31, 2016, and an increase of 3,780, or 2%, from April 30, 2015.
  • Tradeable accounts(5) of 169,168 as of April 30, 2016, an increase of 1,804, or 1%, from March 31, 2016, and a decrease of 19,053, or 10%, from April 30, 2015.

Institutional Customer Trading Metrics

  • Institutional customer trading volume(3) of $75 billion in April 2016, 10% lower than March 2016 and 83% higher than April 2015.
  • Average institutional trading volume(3) per day of $3.5 billion in April 2016, 3% lower than March 2016 and 84% higher than April 2015.
  • An average of 53,743 institutional client trades per day in April 2016, 2% higher than March 2016 and 383% higher than April 2015.

More information, including historical results for each of the above metrics, can be found on the investor relations page of FXCM's corporate website www.fxcm.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company’s corporate website www.fxcm.com.

(1) Earnings per share have been adjusted to reflect the impact of the one-for-ten reverse stock split of the Corporation’s issued and outstanding Class A common stock that became effective on October 1, 2015.

(2) Customer Trading Metrics from Continuing Operations excludes discontinued operations of FXCM Japan and FXCM Hong Kong.

(3) Volume that FXCM customers traded in period is translated into US dollars.

(4) An Active Account represents an account that has traded at least once in the previous twelve months.

(5) A Tradeable Account is an account...


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