JERSEY CITY, N.J., May 1, 2013 /PRNewswire/ -- Knight
Capital Group, Inc. (NYSE Euronext: KCG) today reported a GAAP
consolidated loss of $9.4 million, or
$0.03 per diluted share, for the
first quarter of 2013.
The first quarter 2013 GAAP net loss includes net income from
continuing operations of $11.0
million, or $0.03 per diluted
share, as well as a net loss from discontinued operations of
$20.4 million, or a loss of
$0.06 per diluted share. Included in
the net income from continuing operations are professional fees
related to the announced merger and August
1st technology issue and compensation expenses related to a
reduction in workforce. Excluding these expenses, on a non-GAAP
basis, the first quarter 2013 net income from continuing operations
was $22.3 million, or $0.06 per diluted share. A reconciliation of GAAP
to non-GAAP results is included below.
For the first quarter of 2012, the company reported GAAP
consolidated earnings of $33.1
million, or $0.36 per diluted
share.
Revenues from continuing operations for the first quarter of
2013 were $285.2 million, compared to
$302.5 million for the first quarter
of 2012.
At March 31, 2013, the company had
$439.2 million in cash and cash
equivalents. The company had $1.5
billion in stockholders' equity as of March 31, 2013, equivalent to a book value of
$3.96 per share. The company had
$1.5 billion in stockholders' equity
as of December 31, 2012, equivalent
to a book value of $4.07 per share
(which included preferred shares on an as-converted basis).
Tangible book value as of March 31,
2013 was $3.25 per share as
compared to $3.30 at December 31, 2012 (which included preferred
shares on an as-converted basis).
"In the first quarter of 2013, Knight's teams proved determined
and our core competencies resilient," said Thomas M. Joyce, Chairman and Chief Executive
Officer, Knight Capital Group. "Knight's comeback from the
August 1st technology issue remains
impressive. During the first quarter, revenues from continuing
operations were strong despite a decline in consolidated U.S.
equity volume year over year and the lowest quarterly market
volatility in more than five years. Knight combined the full
service and electronic institutional equities sales teams,
announced the sale of institutional fixed income, and merged the
Institutional Sales and Trading and Electronic Execution Services
reporting segments. At the same time, the firm was engaged in
planning for the announced merger with GETCO."
In the first quarter of 2013, to better reflect the company's
client offering, changes in senior management, the combination of
the institutional equities sales teams and how the businesses are
managed, the company changed its reporting segments from (i) Market
Making, (ii) Institutional Sales and Trading, (iii) Electronic
Execution Services, and (iv) Corporate and Other to (i) Market
Making, (ii) Global Execution Services and (iii) Corporate and
Other. Market Making consists of all global market making including
Knight Link and the company's activities as a Designated Market
Maker at the NYSE. Global Execution Services includes Knight
Direct, equity sales and trading, Knight Hotspot FX, Knight
BondPoint, futures, reverse mortgage origination and securitization
and asset management. Corporate and Other includes strategic
investments primarily in financial services-related ventures,
clearing and settlement activity, corporate overhead expenses and
all other expenses that are not attributable to the other reporting
segments.
During the first quarter of 2013, the company agreed to sell
institutional fixed income sales and trading to Stifel, Nicolaus
& Company, Inc. As a result, these businesses are considered to
be held for sale and the results of operations have been reported
as discontinued operations. Discontinued operations also include
the company's correspondent clearing business, which the company
announced that it was closing in the first quarter of 2013.
|
|
|
|
|
|
|
|
|
Q1
2013
|
|
Q1
2012
|
|
|
|
|
|
|
Revenues
($ thousands)
|
|
285,156
|
|
302,472
|
Income
from continuing operations, net of tax ($ thousands)
|
|
11,014
|
|
31,220
|
(Loss)
income from discontinued operations, net of tax ($
thousands)
|
|
(20,371)
|
|
1,886
|
Net (loss)
income ($ thousands)
|
|
(9,357)
|
|
33,106
|
Diluted
EPS from continuing operations - GAAP basis ($)
|
|
0.03
|
|
0.34
|
Diluted
EPS from discontinued operations - GAAP basis ($)
|
|
(0.06)
|
|
0.02
|
Diluted
EPS - GAAP basis($)
|
|
(0.03)
|
|
0.36
|
Diluted
EPS from continuing operations - Non-GAAP basis($)*
|
|
0.06
|
|
0.34
|
U.S.
equity Market Making statistics:
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|
|
|
Average
daily dollar value traded ($ billions)
|
|
22.2
|
|
21.9
|
|
Average
daily trades (thousands)
|
|
2,973.3
|
|
3,334.6
|
|
Nasdaq and
Listed shares traded (billions)
|
|
43.0
|
|
47.3
|
|
FINRA OTC
Bulletin Board and Other shares traded (billions)
|
|
183.1
|
|
171.2
|
|
Average
revenue capture per U.S. equity dollar value traded
(bps)
|
|
1.00
|
|
0.99
|
Average
daily Knight Direct equity shares (millions) (U.S. exchange listed
shares)
|
184.6
|
|
182.7
|
Average
daily Knight Hotspot FX notional dollar value traded ($
billions)**
|
|
27.8
|
|
27.8
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
A
reconcilation of GAAP to non-GAAP results is included
below
|
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|
|
**
|
In the
second quarter of 2012, Knight modified the reporting of Knight
Hotspot FX notional dollar value traded volume to count
one side of the transaction. The company previously counted total
client volume to include both sides of the transaction. The company posts Knight Hotspot FX
volume statistics each month to its web site, which has been
updated to show one-sided volume statistics dating
back to the beginning of 2011.
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Market Making
During the first
quarter of 2013, the Market Making segment generated total revenues
of $150.7 million and pre-tax income
of $36.6 million. In the first
quarter of 2012, Market Making reported total revenues of
$152.2 million and pre-tax income of
$45.1 million. Market Making had
pre-tax margins of 24 percent in the first quarter of 2013 compared
to pre-tax margins of 30 percent in the first quarter of 2012. The
results were impacted by a decrease in our volumes, increases in
payments for order flow, as well as the 26% decrease in volatility
as measured by the VIX.
"In the Market Making segment, Knight continued to execute,"
said Mr. Joyce. "Knight maintained a decisive lead in market share
of retail U.S. equity volume, which helped offset a year-over-year
decline in retail trading activity. In aggregate, Knight's average
daily U.S. equity dollar value traded and market share of
consolidated U.S. equity notional value traded increased slightly
compared to a year ago. Nevertheless, financial results were
impacted by the subdued volatility and trading expenses."
Global Execution Services
During
the first quarter of 2013, the Global Execution Services segment
generated total revenues of $122.4
million and pre-tax income of $10.7
million. In the first quarter of 2012, Global Execution
Services generated total revenues of $140.3
million and pre-tax income of $23.8
million. Global Execution Services had pre-tax margins of 9
percent in the first quarter of 2013 compared to pre-tax margins of
17 percent in the first quarter of 2012. The results were impacted
by a decline in client volumes as compared to the first quarter of
2012 as well as $4.4 million in
additional compensation expense related to workforce reductions
associated with the combination of the full service and electronic
institutional equities sales teams. These decreases were partially
offset by increased earnings from Urban.
"In the Global Execution Services segment, Knight performed well
amid the reconfiguring of assets and resources," said Mr. Joyce.
"Knight received diverse contributions from the electronic trading
products and sales and trading teams. Urban made a strong
contribution from origination and securitization activities.
Financial results from continuing operations for the segment, it's
worth noting, included additional expenses primarily related to the
consolidation of institutional equities sales."
Corporate and Other
During
the first quarter of 2013, the Corporate and Other segment reported
a pre-tax loss of $29.4 million,
which included $9.3 million in
professional fees related to the announced merger and the
August 1st technology issue as well
as $4.3 million in
additional compensation costs related to the workforce reductions.
In the first quarter of 2012, the Corporate and Other segment
reported a pre-tax loss of $17.9
million.
"Despite all the activities in the first quarter, Knight's
attention never wavered from our clients," said Mr. Joyce. "The
pending merger with GETCO is continuing on track. Upon the close,
the combined firm will enjoy a leading position in the U.S.
equities market as well as a decided edge in understanding the
potential for all securities markets to better serve
participants."
Headcount at March 31, 2013 was
1,269 full-time employees, which excludes employees affected by the
announced sale of institutional fixed income, compared to 1,418
full-time employees at March 31,
2012. The decrease in headcount year over year is primarily
due to a reduction in workforce completed during the first
quarter.
During the first quarter of 2013, the company did not repurchase
any shares under the company's existing stock repurchase program.
To date, the company has repurchased 76.7 million shares for
$879.1 million. The company has
approximately $120.9 million of
availability to repurchase shares under the program. The company
cautions that there are no assurances that any further repurchases
may actually occur.
Non-GAAP Financial
Presentations
The company believes
that certain non-GAAP financial presentations, when taken into
consideration with the corresponding GAAP financial presentations,
are important in understanding the company's operating results.
Selected financial information is included in the company's
non-GAAP financial presentations for the three months ended
March 31, 2013. The adjustments
incorporate the effects of professional fees related to the
announced merger with GETCO and the August
1st technology issue and compensation expenses related to a
reduction in workforce. We believe this presentation provides
meaningful information to stockholders and investors as it provides
comparability for our results of operations for the three months
ended March 31, 2013 with the results
for the three months ended March 31,
2012. See schedules below for a full reconciliation of GAAP
to non-GAAP financial presentations.
Copies of this earnings release and other company information
can be obtained on Knight's website, http://www.knight.com. In
addition, historical volume statistics are available at
http://www.knight.com/ourfirm/volumestats.asp. Due to the announced
merger with GETCO LLC, Knight will not host a conference call on
the first quarter of 2013.
About Knight
Knight Capital
Group (NYSE Euronext: KCG) is a global financial services firm that
provides access to the capital markets across multiple asset
classes to a broad network of clients, including broker-dealers,
institutions and corporations. Knight is headquartered in
Jersey City, N.J. with a global
presence across the Americas, Europe, and the Asia
Pacific regions. For further information about Knight,
please visit www.knight.com.
Certain statements contained herein may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are typically identified by words such as "believe,"
"expect," "anticipate," "intend," "target," "estimate," "continue,"
"positions," "prospects" or "potential," by future conditional
verbs such as "will," "would," "should," "could" or "may", or by
variations of such words or by similar expressions. These
"forward-looking statements" are not historical facts and are based
on current expectations, estimates and projections about the
parties' industry, management beliefs and certain assumptions made
by management, many of which, by their nature, are inherently
uncertain and beyond our control. Accordingly, readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict
including, without limitation, risks associated with the
August 1, 2012 technology issue at
Knight that resulted in Knight sending numerous erroneous orders in
NYSE-listed and NYSE Arca securities into the market and the impact
to Knight's capital structure and business as well as actions taken
in response thereto and consequences thereof, costs and risks
associated with the Company's sale of its institutional fixed
income sales and trading business , risks associated with Knight's
ability to recover all or a portion of the damages that are
attributable to the manner in which NASDAQ OMX handled the Facebook
IPO, risks associated with changes in market structure,
legislative, regulatory or financial reporting rules, risks
associated with past or future changes to organizational structure
and management and the costs, integration, performance and
operation of businesses previously acquired or developed
organically, or that may be acquired or developed organically in
the future. Readers should carefully review the risks and
uncertainties disclosed in Knight's reports with the SEC,
including, without limitation, those detailed under "Certain
Factors Affecting Results of Operations" and "Risk Factors" in the
Company's Annual Report on Form 10-K/A for the year-ended
December 31, 2012 and in the other
reports or documents Knight or the new Knight/GETCO holding company
files with, or furnishes to, the SEC from time to time.
In addition to factors previously disclosed in Knight's
reports filed with the SEC and those identified elsewhere in this
filing, the following factors among others, could cause actual
results to differ materially from forward-looking statements or
historical performance: ability to obtain regulatory approvals and
meet other closing conditions to the mergers, including approval by
Knight and GETCO stockholders, on the expected terms and schedule;
delay in closing the mergers; difficulties and delays in
integrating the Knight and GETCO businesses or fully realizing cost
savings and other benefits; business disruption following the
mergers; the inability to sustain revenue and earnings growth;
customer and client actions; and the inability to realize cost
savings or revenues or to implement integration plans and other
consequences associated with mergers, acquisitions and
divestitures.
KNIGHT
CAPITAL GROUP, INC.
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|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended March 31,
|
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
(In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Commissions and fees
|
$
|
125,225
|
|
$
|
141,295
|
|
|
|
Net
trading revenue
|
|
148,838
|
|
|
153,134
|
|
|
|
Interest,
net
|
|
6,390
|
|
|
5,611
|
|
|
|
Investment
income and other, net
|
|
4,703
|
|
|
2,432
|
|
|
|
|
Total
revenues
|
|
285,156
|
|
|
302,472
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Employee
compensation and benefits
|
|
107,823
|
|
|
112,269
|
|
|
|
Execution
and clearance fees
|
|
50,450
|
|
|
52,330
|
|
|
|
Payments
for order flow
|
|
35,093
|
|
|
21,688
|
|
|
|
Communications and data processing
|
|
22,225
|
|
|
20,284
|
|
|
|
Interest
|
|
13,052
|
|
|
13,154
|
|
|
|
Professional fees
|
|
13,030
|
|
|
4,948
|
|
|
|
Depreciation and amortization
|
|
9,709
|
|
|
11,577
|
|
|
|
Occupancy
and equipment rentals
|
|
5,398
|
|
|
5,388
|
|
|
|
Business
development
|
|
3,973
|
|
|
4,214
|
|
|
|
Other
|
|
6,499
|
|
|
5,522
|
|
|
|
|
Total
expenses
|
|
267,252
|
|
|
251,374
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations before income taxes
|
|
17,904
|
|
|
51,098
|
|
|
Income tax
expense
|
|
6,890
|
|
|
19,878
|
|
|
Income
from continuing operations, net of tax
|
|
11,014
|
|
|
31,220
|
|
|
(Loss)
income from discontinued operations, net of tax
|
|
(20,371)
|
|
|
1,886
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income
|
$
|
(9,357)
|
|
$
|
33,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share from continuing operations
|
$
|
0.04
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations
|
$
|
0.03
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
(loss) earnings per share from discontinued operations
|
$
|
(0.08)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
(loss) earnings per share from discontinued
operations
|
$
|
(0.06)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
(loss) earnings per share
|
$
|
(0.04)
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
(loss) earnings per share
|
$
|
(0.03)
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
used in computation of basic (loss) earnings per share
|
|
253,007
|
|
|
89,764
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
used in computation of diluted (loss) earnings per share
|
|
361,053
|
|
|
92,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KNIGHT
CAPITAL GROUP, INC.
|
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, 2013
|
|
|
December 31, 2012
|
|
|
|
|
|
(In
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
439,182
|
|
$
|
413,926
|
|
Cash and
securities segregated under federal and other
regulations
|
|
|
172,962
|
|
|
166,992
|
|
Financial
instruments owned, at fair value:
|
|
|
|
|
|
|
|
Equities
|
|
|
|
1,538,856
|
|
|
1,463,916
|
|
Debt
securities
|
|
|
|
146,518
|
|
|
111,157
|
|
Listed equity
options
|
|
|
|
231,044
|
|
|
202,091
|
|
Loan
inventory
|
|
|
|
152,349
|
|
|
191,712
|
|
Other financial
instruments
|
|
|
|
3,778
|
|
|
237
|
|
Securitized HECM loan
inventory
|
|
|
|
4,792,350
|
|
|
4,054,905
|
|
Total
financial instruments owned, at fair value
|
|
|
6,864,895
|
|
|
6,024,018
|
|
Collateralized agreements:
|
|
|
|
|
|
|
|
Securities
borrowed
|
|
|
|
1,414,794
|
|
|
1,008,720
|
|
Receivable
from brokers, dealers and clearing organizations
|
|
|
1,107,202
|
|
|
868,805
|
|
Fixed
assets and leasehold improvements,
|
|
|
|
|
|
|
|
at
cost, less accumulated depreciation and amortization
|
|
|
92,277
|
|
|
94,226
|
|
Investments
|
|
|
79,052
|
|
|
78,348
|
|
Goodwill
|
|
|
213,900
|
|
|
213,900
|
|
Intangible
assets, less accumulated amortization
|
|
|
53,234
|
|
|
55,654
|
|
Income
taxes receivable
|
|
|
122,980
|
|
|
152,576
|
|
Assets of
business held for sale
|
|
|
145,674
|
|
|
449,509
|
|
Other
assets
|
|
|
206,628
|
|
|
251,773
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
10,912,780
|
|
$
|
9,778,447
|
|
|
|
|
|
|
|
|
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK &
EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Financial
instruments sold, not yet purchased, at fair value:
|
|
|
|
|
|
|
|
Equities
|
|
|
$
|
1,490,972
|
|
$
|
1,164,999
|
|
Debt
securities
|
|
|
|
56,478
|
|
|
118,991
|
|
Listed equity
options
|
|
|
|
179,404
|
|
|
155,942
|
|
Other financial
instruments
|
|
|
|
-
|
|
|
5,505
|
|
Total
financial instruments sold, not yet purchased, at fair
value
|
|
|
1,726,854
|
|
|
1,445,437
|
|
Collateralized
financings:
|
|
|
|
|
|
|
|
Securities
loaned
|
|
|
|
687,012
|
|
|
504,082
|
|
Financial instruments
sold under agreements to repurchase
|
|
|
|
555,000
|
|
|
355,000
|
|
Other secured
financings
|
|
|
|
104,461
|
|
|
146,330
|
|
Liability to GNMA
trusts, at fair value
|
|
|
|
4,742,776
|
|
|
4,002,704
|
|
Total
collateralized financings
|
|
|
6,089,249
|
|
|
5,008,116
|
|
|
|
|
|
|
|
|
|
|
Payable to
brokers, dealers and clearing organizations
|
|
|
403,998
|
|
|
378,724
|
|
Payable to
customers
|
|
|
462,028
|
|
|
388,676
|
|
Accrued
compensation expense
|
|
|
64,891
|
|
|
141,794
|
|
Accrued
expenses and other liabilities
|
|
|
201,663
|
|
|
186,746
|
|
Liabilities of business held for
sale
|
|
|
85,618
|
|
|
357,661
|
|
Long-term
debt
|
|
|
392,470
|
|
|
388,753
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
9,426,771
|
|
|
8,295,907
|
|
|
|
|
|
|
|
|
|
Convertible Preferred Stock
|
|
|
-
|
|
|
229,857
|
Equity
|
|
|
|
|
|
|
|
Class A
common stock
|
|
|
|
4,493
|
|
|
2,748
|
|
Additional
paid-in capital
|
|
|
|
1,647,895
|
|
|
1,400,317
|
|
Retained
earnings
|
|
|
|
701,264
|
|
|
710,621
|
|
Treasury
stock, at cost
|
|
|
|
(864,437)
|
|
|
(858,907)
|
|
Accumulated other comprehensive loss
|
|
|
|
(3,206)
|
|
|
(2,096)
|
Total
equity
|
|
|
1,486,009
|
|
|
1,252,683
|
|
|
|
|
|
|
|
|
|
Total
liabilities, convertible preferred stock and equity
|
|
$
|
10,912,780
|
|
$
|
9,778,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KNIGHT
CAPITAL GROUP, INC.
|
|
|
|
|
|
|
|
|
PRE-TAX
EARNINGS FROM CONTINUING OPERATIONS BY BUSINESS
SEGMENT*
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended
March 31,
|
|
|
|
|
|
|
2013
|
|
|
2012
(1)
|
|
|
|
Market
Making
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
150,729
|
|
$
|
152,166
|
|
|
|
Expenses
|
|
|
114,178
|
|
|
107,035
|
|
|
|
Pre-tax
earnings
|
|
|
36,551
|
|
|
45,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
Execution Services
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
122,373
|
|
|
140,270
|
|
|
|
Expenses
|
|
|
111,656
|
|
|
116,425
|
|
|
|
Pre-tax
earnings
|
|
|
10,717
|
|
|
23,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
12,054
|
|
|
10,036
|
|
|
|
Expenses
|
|
|
41,417
|
|
|
27,914
|
|
|
|
Pre-tax
loss
|
|
|
(29,363)
|
|
|
(17,878)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
285,156
|
|
|
302,472
|
|
|
|
Expenses
|
|
|
267,252
|
|
|
251,374
|
|
|
|
Pre-tax
earnings
|
|
$
|
17,904
|
|
$
|
51,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Totals
may not add due to rounding.
|
|
|
|
|
|
|
|
(1) -
Prior period amounts have been recast to conform with current
period segment presentation.
|
KNIGHT
CAPITAL GROUP, INC.
|
|
|
|
|
|
|
|
Regulation G Reconciliation of Non-GAAP financial
measures (Continuing operations)
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31, 2013
|
|
Market
Making
|
|
Global
Execution
Services
|
|
Corporate
and Other
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Pre-Tax to Non-GAAP
Pre-Tax:
|
|
|
|
|
|
|
|
|
GAAP Income (Loss) from continuing
operations before income taxes
|
|
$
36,551
|
|
$
10,717
|
|
$
(29,363)
|
|
$
17,904
|
Professional fees related to merger and August 1st
technology issue
|
|
-
|
|
-
|
|
9,252
|
|
9,252
|
Compensation expenses related to reduction in
workforce
|
|
230
|
|
4,410
|
|
4,277
|
|
8,917
|
Non
GAAP Income (Loss) from continuing operations before income
taxes
|
|
$
36,781
|
|
$
15,127
|
|
$
(15,834)
|
|
$
36,073
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31, 2013
|
|
|
$
|
|
Diluted
EPS
|
Reconciliation of GAAP Net Loss to Non - GAAP Net
Income :
|
|
|
|
|
Net
loss - GAAP
|
|
$
(9,357)
|
|
$
(0.03)
|
Add
back:
|
|
|
|
|
Loss from
discontinued operations, net of tax
|
|
20,371
|
|
0.06
|
Professional fees related to merger and August 1st
technology issue, net of tax
|
|
5,736
|
|
0.02
|
Compensation expenses related to reduction in
workforce, net of tax
|
|
5,529
|
|
0.02
|
Net
income - Non-GAAP
|
|
$
22,279
|
|
$
0.06
|
|
|
|
|
|
Shares
used in computation of diluted earnings per share
|
|
|
|
361,053
|
|
|
|
|
|
*
Totals may not add due to rounding
|
|
|
|
|
SOURCE Knight Capital Group, Inc.