FXCM, a leading online provider of foreign Exchange , or FX, trading and related services, today announced for the quarter ended September 30, 2012, revenues under US GAAP of $115.0 million, compared to $109.0 million for the quarter ended September 30, 2011, an increase of 5%. Adjusted Pro Forma EBITDA for the Third Quarter 2012 was $37.2 million, compared to $31.4 million for the Third Quarter 2011, an increase of 18%.
Adjusted Pro Forma Net Income was $12.5 million for the Third Quarter 2012, compared to $17.1 million for the Third Quarter 2011, a decrease of 27%. Adjusted Pro Forma Cash Net Income was $22.9 for the Third Quarter 2012, compared to $27.4 million for the Third Quarter 2011, a decrease of 16%. Adjusted Pro Forma fully diluted earnings per share for the Third Quarter 2012 was $0.17 on a fully exchanged, fully diluted basis compared to $0.23 for the Third Quarter 2011, a decrease of 26%. Adjusted Pro Forma fully diluted cash earnings per share for the Third Quarter 2012 was $0.31 on a fully exchanged, fully diluted basis compared to $0.37 for the Third Quarter 2011, a decrease of 16%. U.S. GAAP net income was $4.5 million for the Third Quarter 2012, compared to $3.4 million for the Third Quarter 2011, an increase of 33%. U.S. GAAP earnings per share for the Third Quarter 2012 was $0.17 per fully diluted Class A share, compared to $0.21 per fully diluted Class A share for the Third Quarter 2011, a decrease of 19%.
Third Quarter 2012 Highlights:
· Revenues of $115.0 million, up 5% versus the same period in 2011
· US GAAP net income $4.5 million or $0.17 per fully diluted share
· Adjusted Pro Forma EBITDA of $37.2 million, up 18% versus the same period in 2011
· Adjusted Pro Forma net income of $12.5 million or $0.17 per fully diluted share
· Record customer equity of $1,278 million, up 54% from same period in 2011 and up 22% from December 2011
· Retail revenue per million of $99/million
“FXCM turned in a solid quarter despite the continued low Volatility of the global FX markets and subdued trading environment,” said Drew Niv, Chief Executive Officer. “In addition, our cash generation in the quarter was particularly strong and we earned $37.2 million in EBITDA and $0.31 in cash earnings per share.”
Drew Niv, Chief Executive Officer, FXCM
Adjusted Pro Forma results assume the conversion and exchange of all FXCM Holdings, LLC Units into FXCM Inc. Class A common stock, resulting in the elimination of the non-controlling interest and the corresponding adjustment to the entity’s tax provision. In addition, Adjusted Pro Forma results eliminate certain non-recurring charges and equity based compensation expense regarding a grant of stock options at the time of FXCM’s initial public offering (“IPO”) in December 2010.
Adjusted Pro Forma Cash results further adjusts Adjusted Pro Forma results to eliminate certain non-cash items, including the further elimination of equity based compensation expense unrelated to the IPO as well as depreciation and amortization. In addition, Adjusted Pro Forma Cash results adjusts the tax provision of Adjusted Pro Forma results to reflect only the provision for taxes expected to be paid in the following twelve months.
FXCM Inc. today announced that it has received additional commitments from a group of banks and has increased its credit facility to $155 million. In addition, certain of the terms of the credit facility were modified to among other things provide additional flexibility regarding financing and investment initiatives.
“We are pleased with being able to increase the size of our credit facility,” said Niv, “We now have seven banks in the facility and received a great deal of demand as we sought to increase its size. The increased size of the facility will allow us to conduct our current initiatives on a larger scale.”
FXCM Inc. today announced certain key operating metrics for October 2012 for its retail and institutional foreign exchange business. Monthly activities included:
October 2012 Operating Metrics
Retail Trading Metrics
· Retail customer trading volume(1) of $324 billion in October 2012, 7% higher than September 2012 and 5% lower than October 2011.
· Average retail customer trading volume(1) per day of $14.1 billion in October 2012, 7% lower than September 2012 and 13% lower than October 2011.
· An average of 341,293 retail client trades per day in October 2012, 6% lower than September 2012 and 26% lower than October 2011.
· Tradable accounts(2) of 203,714 as of October 31, 2012, an increase 1,320, or 1% from September 2012, and an increase of 12,139,or 6%, from October 2011.
Institutional Trading Metrics
· Institutional customer trading volume(1) of $53 billion in October 2012, 16% higher than September 2012 and 69% lower than October 2011.
· Average institutional trading volume(1) per day of $2.3 billion in October 2012, flat with September 2012 and 72% lower than October 2011.
· An average of 5,850 institutional client trades per day in October 2012, 3% higher than September 2012 and 86% lower than October 2011.
“FXCM showed continued progress in October despite the low volatility in the FX markets,” stated Niv. “In addition, we look forward to our organic initiatives for growth such as our recently launched product to attract smaller clients as well as the migration of our institutional customers to our in-house platform which we believe will become more material in the near future.”
More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company'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) Volume that FXCM customers traded in period is translated into US dollars.
(2) A Tradeable Account is an account with sufficient funds to place a trade in accordance with FXCM trading policies.
Non-GAAP Financial Measures
Adjusted Pro Forma EBITDA, Adjusted Pro Forma Net Income, Adjusted Pro Forma Cash Net Income, Adjusted Pro Forma Net Income per fully diluted share and Adjusted Pro Forma Cash Net Income per fully diluted share are non-GAAP financial measures. These measures do 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 GAAP, and our calculations of these measures may not be comparable to similarly entitled measures reported by other companies. See “Adjusted Pro Forma Results” beginning on A-3 of this release for additional information regarding these non-GAAP financial measures and for reconciliations of such measure to the most directly comparable measures calculated in accordance with GAAP.
Declaration of Quarterly Dividend
The company also announced today that its board of directors has declared a quarterly dividend of $0.06 per share on its outstanding Class A common stock. The dividend is payable on December 31st, 2012 to Class A stockholders of record at the close of business on December 19th, 2012.
FXCM's Drew Niv is speaking at the forthcoming Forex Magnates Summit in London.
