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Fxcm Inc. Announces Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Releases October 2015 Customer Trading Metrics

Third Quarter 2015 Highlights:

U.S. GAAP net revenues from continuing operations of $59.6 million

U.S. GAAP net income attributable to FXCM Inc. from continuing operations of $64.3 million or $12.10

per fully diluted share, including a $137.6 million gain on derivative liability

U.S. GAAP net revenues from discontinued operations of $14.8 million

U.S. GAAP net income attributable to FXCM Inc. from discontinued operations of $9.3 million or $1.76

Adjusted EBITDA from continuing and discontinued operations of $5.2 milli on

Strong combined operating cash position of $254.3 million and regulatory surplus of $85.1 million at September 30, 2015

October 2015 Customer Trading Metrics from Continuing Operations

Highlights:

Retail customer trading volume

of $335 billion in October 2015, 3% higher than September 2015 and 25% lower than October 2014.

Institutional customer trading volume

of $34 billion in October 2015, 28% lower than September 2015 and 63% lower than October 2014.

(NYSE:FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended September 30, 2015, U.S. GAAP trading revenue from continuing operations of $56.3 million, compared to $88.7 million for the quarter ended September 30, 2014. U.S. GAAP net income attributable to FXCM Inc. from continuing operations was $64.3 million for the third quarter 2015 or $12.10

per fully diluted share, compared to U.S. GAAP net income attributable to FXCM Inc. from continuing operations of $2.0 million or $0.45

per fully diluted share for the third quarter 2014.

For the nine months ended September 30, 2015, U.S. GAAP trading revenue from continuing operations was $184.7 million, compared to $245.3 million for the nine months ended September 30, 2014. U.S. GAAP net loss attributable to FXCM Inc. from continuing operations was $427.9 million for the nine months ended September 30, 2015 or $86.13

per fully diluted share, compared to U.S. GAAP net loss attributable to FXCM Inc. from continuing operations of $1.4 million or $0.36

per fully diluted share for the nine months ended September 30, 2014.

Results from operations for the quarter ended September 30, 2015 included a gain on derivative liability of $137.6 million and results from the nine months ended September 30, 2015 included a loss on derivative liability of $254.7 million. In each case, the gain/loss is a non-cash item relating to the increase/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 September 30, 2015 was $13.4 million, compared to $23.5 million for the quarter ended September 30, 2014. U.S. GAAP net income attributable to FXCM Inc. from discontinued operations was $9.3 million for the third quarter 2015 or $1.76

per fully diluted share, which includes a $12.4 million gain on the sale of FXCM Hong Kong, or $2.34

per fully diluted share, compared to U.S. GAAP net income attributable to FXCM Inc. from discontinued operations of $0.4 million or $0.10

per fully diluted share for the third quarter 2014.

U.S. GAAP trading revenue from discontinued operations for the nine months ended September 30, 2015 was $60.2 million, compared to $71.3 million for the nine months ended September 30, 2014. U.S. GAAP net loss attributable to FXCM Inc. from discontinued operations was $21.1 million for the nine months ended September 30, 2015 or $4.24

per fully diluted share, compared to U.S. GAAP net income attributable to FXCM Inc. from discontinued operations of $2.8 million or $0.70

per fully diluted share for the nine months ended September 30, 2014.

Adjusted EBITDA from continuing and discontinued operations for the three months ended September 30, 2015 was $5.2 million, compared to $28.4 million for the three months ended September 30, 2014.

Adjusted EBITDA from continuing and discontinued operations for the nine months ended September 30, 2015 was $25.6 million, compared to $66.5 million for the nine months ended September 30, 2014.

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 October 2015. Monthly activities included:

Retail Customer Trading Metrics

Average retail customer trading volume

per day of $15.2 billion in October 2015, 3% higher than September 2015 and 22% lower than October 2014.

An average of 513,724 retail client trades per day in October 2015, 9% lower than September 2015 and 3% lower than October 2014.

Active accounts

of 178,273 as of October 31, 2015, a decrease of 1,848, or 1%, from September 2015, and an increase of 17,222, or 11%, from October 2014.

Tradeable accounts

of 161,085 as of October 31, 2015, an increase of 735, or 0.5%, from September 2015, and a decrease of 16,891, or 9%, from October 2014.

Institutional Customer Trading Metrics

Average institutional trading volume

per day of $1.6 billion in October 2015, 24% lower than September 2015 and 59% lower than October 2014.

An average of 28,590 institutional client trades per day in October 2015, 4% lower than September 2015 and 104% higher than October 2014.

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

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.

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

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

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

A Tradeable Account is...


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