GFI Group Inc. Announces Second Quarter 2011 Results; Declares Quarterly Cash Dividend

— GAAP Total Revenues: $243.7 Million; Non-GAAP Total Revenues: $245.5 Million

NEW YORK,  July 28, 2011 /PRNewswire/ — GFI Group Inc. (NYSE: GFIG), a leading provider of wholesale brokerage services, clearing services, electronic execution and trading support products for global financial markets, reported today its financial results for the second quarter ended June 30, 2011.

Highlights

  • GAAP net revenues were $210.3 million for the second quarter of 2011, an increase of 4.1% from $201.9 million in the second quarter of 2010.  On a non-GAAP basis, net revenues increased 5.6% to $212.0 million from $200.8 million in the second quarter of 2010.  
  • Brokerage revenues for the second quarter of 2011 were $191.0 million compared with $194.2 million in the second quarter of 2010, a decrease of 1.6%.  
  • Compensation and employee benefits expense in the second quarter of 2011 was 69.8% and 69.3% of net revenues on a GAAP and non-GAAP basis, respectively. This compares with 69.9% and 70.3% of net revenues on a GAAP and non-GAAP basis, respectively, in the second quarter of 2010.  
  • Non-compensation expenses were 26.4% of net revenues on a GAAP basis and 25.2% on a non-GAAP basis in the second quarter of 2011.  This compares with 23.0% of net revenues on a GAAP basis and 21.5% on a non-GAAP basis in the second quarter of 2010.
  • GAAP Net income for the second quarter of 2011 was $6.2 million, or $0.05 per diluted share, compared with $10.4 million, or $0.08 per diluted share, in the second quarter of 2010.  On a non-GAAP basis, net income was $8.7 million, or $0.07 per diluted share, for the second quarter of 2011, compared with $12.0 million, or $0.10 per diluted share, in the second quarter of 2010.
  • For the six months ended June 30, 2011, GAAP net revenues were $437.7 million, up 5.4%, compared with $415.4 million for the same period in 2010.  Net income on a GAAP basis for the first half of 2011 was $12.9 million or $0.10 per diluted share compared to $23.8 million or $0.19 per diluted share in the first half of 2010.  On a non-GAAP basis, net revenues for the six months ended June 30, 2011 were $446.5 million, up 7.7%, compared with $414.4 million in the same period in 2010, while net income for the first half of 2011 was $22.4 million or $0.18 per diluted share compared with $26.3 million or $0.21 per diluted share in 2010.

Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: “The quarter ended strongly with brokerage revenues up 18% in June year over year, offsetting a slow start to the quarter.  Net revenues were up 5.6% on a non-GAAP basis in the second quarter of 2011 year over year, due to growth in software, analytics and market data revenues, as well as the addition of Kyte.

“The largest positive contributor to brokerage revenues in the second quarter came from emerging markets in Latin America, Eastern Europe and Asia, which drove a 26.8% increase in financial product revenues over the second quarter of 2010.  Equity, commodity and fixed income product revenues were down 5.1%, 7.6% and 12.5%, respectively, in the second quarter of 2011 year over year.

“Compensation and employee benefits expense was up from the second quarter of 2010, but showed improvement as a percentage of net revenues on a GAAP and a non-GAAP basis.  Non-compensation expenses were also higher than the second quarter of 2010, due to a number of factors, including higher travel and promotion expenses, professional fees, technology investment, data and communication costs, and expenses incurred by Kyte.  However, non-compensation expenses were down slightly in the second quarter of 2011 on a non-GAAP basis compared to the first quarter of 2011.

“Looking at the third quarter of 2011 to date, our preliminary brokerage revenues for July are tracking up 11% compared with brokerage revenues for the same month last year.  This July performance follows an active June, which was our best month in the second quarter.  We believe that markets will remain active in the latter half of 2011.  Additionally, our software, analytics and market data revenues for the third quarter are tracking up 22% compared to the same period last year.  

“We continue to work with regulators in the U.S. and Europe as OTC derivative market rules are developed that will define certain aspects of how our business is conducted in the future.  We believe that the final rules will promote enhanced regulatory transparency, centralized clearing and efficient execution; all factors that we believe will benefit and eventually grow the global derivative markets.  We also continue to invest in our technology and infrastructure to allow for a seamless transition to the new market landscape post-regulation.

“In July, we completed an offering of $250 million of 8.375% senior notes that mature in 2018.  The proceeds from the offering were used to pay down our existing credit facility and our senior notes that were due in 2013.  The offering will also provide us with additional capital for acquisitions and other corporate purposes.  

Mr. Gooch concluded:  “We are pleased to declare a quarterly cash dividend of $0.05 per share to our shareholders.”

Revenues

Total revenues were $243.7 million and $245.5 million on a GAAP and non-GAAP basis, respectively, in the second quarter of 2011, as compared with $209.5 million and $208.4 million on a GAAP and non-GAAP basis in the second quarter of 2010.  Net revenues were $210.3 million and $212.0 million on a GAAP and non-GAAP basis, respectively, in the second quarter of 2011, as compared with $201.9 million and $200.8 million on a GAAP and non-GAAP basis in the second quarter of 2010.  Non-GAAP net revenues in the second quarter of 2011 excluded a $1.5 million mark-to-market loss on forward hedges of future foreign currency revenues, a $0.8 million loss related to a future purchase commitment and a gain of $0.6 million related to the recovery of certain previously reserved balances.  

Brokerage revenues in the second quarter of 2011 were $191.0 million compared with $194.2 million in the second quarter of 2010.  By geographic region, brokerage revenues for the second quarter of 2011 increased 10.0% in Asia-Pacific and 4.3% in the Americas, while decreasing 8.2% in Europe, the Middle East and Africa, compared with the second quarter of 2010.  

Revenues from trading software, analytics and market data products for the second quarter of 2011 were $18.4 million, up 26.8% from the second quarter of 2010.  Our Trayport subsidiary’s software revenues grew 39.1% year over year due to continued growth from new and existing customers, as well as from new products.  

Expenses

For the second quarter of 2011, compensation and employee benefits expense was $146.8 million on a GAAP and non-GAAP basis. This compares with $141.1 million on a GAAP and non-GAAP basis in the second quarter of 2010.  Compensation and employee benefits expense decreased to 69.8% and 69.3% of net revenues on a GAAP and non-GAAP basis, respectively, in the second quarter of 2011 from 69.9% and 70.3% of net revenues on a GAAP and non-GAAP basis in 2010.  

On a GAAP basis, non-compensation expenses for the second quarter of 2011 were $55.6 million or 26.4% of net revenues, compared with $46.5 million, or 23.0% of net revenues, in the second quarter of 2010.  On a non-GAAP basis, non-compensation expenses for the second quarter of 2011 were $53.5 million, or 25.2% of net revenues, compared with $43.2 million, or 21.5% of net revenues, in the second quarter of 2010.

The effective tax rate for the six months ended June 30, 2011 was 26.0% on a GAAP basis and 28.5% on a non-GAAP basis, as compared with 31.0% on both a GAAP and a non-GAAP basis in the first half of 2010.

Earnings

Net income on a GAAP basis for the second quarter of 2011 was $6.2 million, or $0.05 per diluted share, compared with net income of $10.4 million, or $0.08 per diluted share, in the second quarter of 2010.  On a non-GAAP basis, net income for the second quarter of 2011 was $8.7 million, or $0.07 per diluted share, compared with $12.0 million, or $0.10 per diluted share, for the second quarter of 2010.

Six Month Results

Net revenues for the six months ended June 30, 2011 were $437.7 million on a GAAP basis, compared to net revenues of $415.4 million for the six months ended June 30, 2010.  Net income was $12.9 million, or $0.10 per diluted share, for the six months ended June 30, 2011 compared with net income of $23.8 million, or $0.19 per diluted share, for the same period in 2010.

On a non-GAAP basis, net revenues for the six months ended June 30, 2011 were $446.5 million compared to $414.4 million for the same period in 2010.  Net income was $22.4 million, or $0.18 per diluted share, for the six months ended June 30, 2011 compared with net income of $26.3 million, or $0.21 per diluted share, for the first six months of 2010.

Non-GAAP Financial Measures

To supplement GFI’s unaudited financial statements presented in accordance with GAAP, the Company uses certain non-GAAP measures of financial performance.  The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies.  In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP.  The non-GAAP financial measures used by GFI include non-GAAP total revenues, non-GAAP net revenues, non-GAAP net income, non-GAAP diluted earnings per share and adjusted EBITDA. These non-GAAP financial measures currently exclude amortization of acquired intangibles and certain other items that management views as non-operating or non-recurring from the Company’s statement of income as detailed in the reconciliation included in the financial tables attached to this release.

In addition, GFI may consider whether other significant non-operating or non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.  The non-GAAP financial measures also take into account income tax adjustments with respect to the excluded items.

GFI believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook.  GFI’s management uses, and believes that investors benefit from referring to these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing future periods.  These non-GAAP financial measures also facilitate comparisons of the Company’s performance to prior periods.

In addition to the reasons stated above, which are generally applicable to each of the items GFI excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude amortization of acquired intangibles because when analyzing the operating performance of an acquired business, GFI’s management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any charges for allocations made for accounting purposes.  Further, because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets, when analyzing the operating performance of an acquisition in subsequent periods, the Company’s management excludes the GAAP impact of acquired intangible assets on its financial results.  GFI believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

A reconciliation of the non-GAAP amounts to GAAP amounts is included in the financial tables attached to this release.

Dividend Declaration

The Board of Directors of GFI Group has declared a quarterly cash dividend of $0.05 per share payable on August 31, 2011 to shareholders of record on August 17, 2011.

Conference Call

GFI has scheduled an investor conference call to discuss its second quarter results at 8:30 a.m. (Eastern Time) on Friday, July 29, 2011. Those wishing to listen to the live conference call via telephone should dial 1-800-860-2442 in North America and +1-412-858-4600 in Europe, and ask for “GFI”.

A live audio web cast of the conference call will be available on the Investor Relations section of GFI’s Website. For web cast registration information, please visit: http://www.gfigroup.com. Following the conference call, an archived recording will be available at the same site.

Supplementary Financial Information

GFI Group has posted details of its historical monthly brokerage revenues on the Investor Relations page of its web site under the heading Supplementary Financial Information. The Company currently plans to post this information quarterly in conjunction with its announcement of earnings, but does not undertake a responsibility to continue to provide or update such information.

About GFI Group Inc.

GFI Group Inc. (NYSE: GFIG) is a leading provider of wholesale brokerage services, clearing services, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,000 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,600 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(SM), GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

– FINANCIAL TABLES FOLLOW –    

=IR=

GFI Group Inc. and Subsidiaries

 

Consolidated Statements of Income (unaudited)

 

(In thousands except share and per share data)

 
         
         
 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
 

2011

 

2010

 

2011

 

2010

 

Revenues

               
 

Agency commissions

$      136,513

 

$      137,624

 

$      283,996

 

$      281,454

 
 

Principal transactions

54,475

 

56,526

 

124,962

 

116,822

 
 

Total brokerage revenues

190,988

 

194,150

 

408,958

 

398,276

 
 

Clearing services revenues

27,680

 

 

55,350

 

 
 

Interest income from clearing services

670

 

 

1,012

 

 
 

Equity in net earnings (losses) of unconsolidated businesses

4,757

 

(92)

 

5,683

 

11

 
 

Software, analytics and market data

18,403

 

14,519

 

35,491

 

29,419

 
 

Other income (loss)

1,233

 

919

 

(1,313)

 

2,668

 
 

   Total revenues

243,731

 

209,496

 

505,181

 

430,374

 
                 

Interest and transaction-based expenses

               
 

Transaction fees on clearing services

26,752

 

 

53,821

 

 
 

Transaction fees on brokerage services

6,079

 

7,554

 

12,684

 

14,978

 
 

Interest expense from clearing services

617

 

 

943

 

 
 

Total interest and transaction-based expenses

33,448

 

7,554

 

67,448

 

14,978

 
 

Revenues, net of interest and transaction-based expenses

210,283

 

201,942

 

437,733

 

415,396

 
                 

Expenses

               
 

Compensation and employee benefits

146,839

 

141,109

 

306,320

 

285,772

 
 

Communications and market data

15,106

 

10,695

 

30,177

 

22,581

 
 

Travel and promotion

10,198

 

9,341

 

20,401

 

18,234

 
 

Rent and occupancy

5,988

 

5,255

 

11,861

 

10,686

 
 

Depreciation and amortization

9,801

 

7,844

 

19,675

 

16,028

 
 

Professional fees

5,672

 

6,247

 

12,775

 

12,844

 
 

Interest on borrowings

3,276

 

2,730

 

6,212

 

5,305

 
 

Other expenses

5,573

 

4,342

 

12,206

 

9,453

 
 

  Total other expenses

202,453

 

187,563

 

419,627

 

380,903

 
                 

Income before provision for income taxes

7,830

 

14,379

 

18,106

 

34,493

 
                 

Provision for income taxes

2,036

 

3,955

 

4,708

 

10,693

 
                 

Net income before attribution to non-controlling shareholders

5,794

 

10,424

 

13,398

 

23,800

 
                 

Less: Net (loss) income attributable to non-controlling interests

(357)

 

 

501

 

 

GFI’s net income

$          6,151

 

$        10,424

 

$        12,897

 

$        23,800

 
                 
                 

Basic earnings per share

$            0.05

 

$            0.09

 

$            0.11

 

$            0.20

 

Diluted earnings per share

$            0.05

 

$            0.08

 

$            0.10

 

$            0.19

 
                 

Weighted average shares outstanding – basic

120,341,423

 

119,593,107

 

119,935,282

 

119,102,754

 
                 

Weighted average shares outstanding – diluted

127,559,237

 

123,750,775

 

127,882,378

 

123,308,715

 
                 

GFI Group Inc. and Subsidiaries

 

Consolidated Statements of Income (unaudited)

 

As a Percentage of Net Revenues

 
         
         
 

Three Months

Ended

 

Six Months

Ended

 
 

June 30,

 

June 30,

 
 

2011

 

2010

 

2011

 

2010

 

Revenues

               
 

Agency commissions

64.9%

 

68.1%

 

64.9%

 

67.8%

 
 

Principal transactions

25.9%

 

28.0%

 

28.5%

 

28.1%

 
 

Total brokerage revenues

90.8%

 

96.1%

 

93.4%

 

95.9%

 
 

Clearing services revenues

13.2%

 

 

12.7%

 

 
 

Interest income from clearing services

0.3%

 

 

0.2%

 

 
 

Equity in net earnings (losses) of unconsolidated businesses

2.3%

 

-0.1%

 

1.3%

 

 
 

Software, analytics and market data

8.7%

 

7.2%

 

8.1%

 

7.1%

 
 

Other income (loss)

0.6%

 

0.5%

 

-0.3%

 

0.6%

 
 

   Total revenues

115.9%

 

103.7%

 

115.4%

 

103.6%

 
                 

Interest and transaction-based expenses

               
 

Transaction fees on clearing services

12.7%

 

 

12.3%

 

 
 

Transaction fees on brokerage services

2.9%

 

3.7%

 

2.9%

 

3.6%

 
 

Interest expense from clearing services

0.3%

 

 

0.2%

 

 
 

Total interest and transaction-based expenses

15.9%

 

3.7%

 

15.4%

 

3.6%

 
 

Revenues, net of interest and transaction-based expenses

100.0%

 

100.0%

 

100.0%

 

100.0%

 
                 

Expenses

               
 

Compensation and employee benefits

69.8%

 

69.9%

 

70.0%

 

68.8%

 
 

Communications and market data

7.2%

 

5.3%

 

6.9%

 

5.4%

 
 

Travel and promotion

4.8%

 

4.6%

 

4.7%

 

4.4%

 
 

Rent and occupancy

2.8%

 

2.6%

 

2.7%

 

2.6%

 
 

Depreciation and amortization

4.7%

 

3.9%

 

4.5%

 

3.9%

 
 

Professional fees

2.7%

 

3.1%

 

2.9%

 

3.1%

 
 

Interest on borrowings

1.6%

 

1.4%

 

1.4%

 

1.3%

 
 

Other expenses

2.7%

 

2.1%

 

2.8%

 

2.2%

 
 

  Total other expenses

96.3%

 

92.9%

 

95.9%

 

91.7%

 
                 

Income before provision for income taxes

3.7%

 

7.1%

 

4.1%

 

8.3%

 
                 

Provision for income taxes

1.0%

 

2.0%

 

1.1%

 

2.6%

 
                 

Net income before attribution to non-controlling shareholders

2.7%

 

5.1%

 

3.0%

 

5.7%

 
                 

Less: Net (loss) income attributable to non-controlling interests

-0.2%

 

 

0.1%

 

 

GFI’s net income

2.9%

 

5.1%

 

2.9%

 

5.7%

 
                 

GFI Group Inc. and Subsidiaries

 

Selected Financial Data (unaudited)

 

(Dollars in thousands)

 
         
         
 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
 

2011

 

2010

 

2011

 

2010

 
                 

Brokerage Revenues by Product Categories:

               
 

Fixed Income

$    53,184

 

$          60,810

 

$ 124,691

 

$ 132,294

 
 

Financial

49,597

 

39,123

 

98,102

 

77,233

 
 

Equity

44,205

 

46,587

 

92,362

 

94,153

 
 

Commodity

44,002

 

47,630

 

93,803

 

94,596

 
                 
 

  Total brokerage revenues

$  190,988

 

$        194,150

 

$ 408,958

 

$ 398,276

 
                 
                 

Brokerage Revenues by Geographic Region:

               
 

Americas

$    75,584

 

$          72,483

 

$ 152,605

 

$ 149,884

 
 

Europe, Middle East, and Africa

93,170

 

101,462

 

205,062

 

209,339

 
 

Asia-Pacific

22,234

 

20,205

 

51,291

 

39,053

 
                 
 

  Total brokerage revenues

$  190,988

 

$        194,150

 

$ 408,958

 

$ 398,276

 
                 
                 
                 
                 
 

June 30,

 

December 31,

         
 

2011

 

2010

         
                 

Consolidated Statement of Financial Condition Data:

               
 

Cash and cash equivalents

$  257,992

 

$        313,875

         
 

Deposits with clearing organizations

42,836

 

26,845

         
 

Total balance sheet cash on hand

300,828

 

340,720

         
 

Balance sheet cash per share

2.47

 

2.79

         
                 
 

Total assets (1)

1,662,506

 

1,271,024

         
 

Total debt, including current portion

192,632

 

192,446

         
 

Stockholders’ equity

489,925

 

490,711

         
                 
                 

Selected Statistical Data:

               
 

Brokerage personnel headcount (2)

1,228

 

1,161

         
 

Employees

2,089

 

1,990

         
 

Broker productivity for the period (3)

$         160

 

$               156

         
                 
                 
                 

(1) Total assets include receivables from brokers, dealers and clearing organizations of $640.4  million and $243.8 million at June 30, 2011 and December 31, 2010, respectively. These receivables primarily represent securities transactions entered into in connection with our matched principal business which have not settled as of their stated settlement dates, as well as balances with clearing organizations. These receivables are substantially offset by corresponding payables to brokers, dealers and clearing organizations for these unsettled transactions.

 

(2)  Brokerage personnel headcount includes brokers, traders, trainees and clerks.  

 

(3)  Broker productivity is calculated as brokerage revenues divided by average monthly brokerage personnel headcount for the quarter.  

 
                 

GFI Group Inc. and Subsidiaries

 

Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)

 

(In thousands except share and per share data)

 
         
         
 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
 

2011

 

2010

 

2011

 

2010

 
                 

GAAP revenues

$      243,731

 

$      209,496

 

$      505,181

 

$      430,374

 

Mark-to-market loss (gain) on forward hedges

               

of future foreign currency revenues

1,496

 

(1,095)

 

5,936

 

(997)

 

Fair value mark-to-market on future purchase commitment

832

 

 

1,563

 

 

Recovery of previously reserved balances

(609)

 

 

(609)

 

 

Accounting impact of increased ownership stake in an investee

 

 

1,863

 

 

Total Non-GAAP revenues

245,450

 

208,401

 

513,934

 

429,377

 
                 

GAAP interest and transaction-based expenses

33,448

 

7,554

 

67,448

 

14,978

 
                 

Non-GAAP revenues, net of interest and transaction based expenses

212,002

 

200,847

 

446,486

 

414,399

 
                 

GAAP other expenses

202,453

 

187,563

 

419,627

 

380,903

 

Amortization of intangibles

(3,073)

 

(1,430)

 

(6,105)

 

(2,827)

 

Professional & other fees for business development activities

 

(1,860)

 

 

(1,860)

 

Gain on settlement of pre-acquisition receivable

942

 

 

942

 

 

Non-GAAP other expenses

200,322

 

184,273

 

414,464

 

376,216

 
                 

Income tax impact on Non-GAAP items

1,293

 

642

 

4,418

 

1,143

 

Non-GAAP provision for income taxes

3,329

 

4,597

 

9,126

 

11,836

 
                 

Net (loss) income attributable to non-controlling interests

(357)

 

 

501

 

 
                 

GFI’s Non-GAAP net income

$          8,708

 

$        11,977

 

$        22,395

 

$        26,347

 
                 

Non-GAAP diluted net income per share

$            0.07

 

$            0.10

 

$            0.18

 

$            0.21

 
                 

Weighted average Non-GAAP shares outstanding – diluted

127,559,237

 

123,750,775

 

127,882,378

 

123,308,715

 
               

GFI Group Inc.

 

Adjusted EBITDA

 
               

($ in ‘000’s, except share and per share amounts)

2Q10

3Q10

4Q10

1Q11

2Q11

Last twelve

months (LTM)

 
               

Net Income (loss) per U.S. GAAP before attribution to non-controlling interests

$ 10,424

$ (2,335)

$   4,454

$   7,604

$   5,794

   
               

Plus: Net (income) loss attributable to non-controlling interests

(151)

(153)

(858)

357

   

GFI’s Net Income (Loss)

10,424

(2,486)

4,301

6,746

6,151

   
               

Plus/Less: Extraordinary and other non-recurring (gains)

             

and losses (i.e., non-GAAP adjustments)

2,195

9,012

746

10,066

3,850

   
               

Plus: Interest expense

2,730

3,204

2,981

3,262

3,893

   
               

Less: Interest income

(77)

(914)

(774)

(690)

(1,090)

   
               

Plus: Income tax expense (benefit)

3,955

(1,050)

(3,759)

2,672

2,036

   
               

Plus: Depreciation and amortization expense (excluding intangibles)

6,414

6,737

6,678

6,842

6,728

   
               

Plus: Amortization of RSU’s

6,511

6,894

6,485

7,492

7,917

   
               

Plus: Amortization of cash sign-on bonuses

8,344

5,070

5,823

5,998

5,496

   
               

Adjusted EBITDA

$ 40,496

$ 26,467

$ 22,481

$ 42,388

$ 34,981

$         126,317

 
               

Weighted average shares outstanding – diluted

         

127,559,237

 
               

Adjusted EBITDA per share (pre-tax)

         

$               0.99

 
             

SOURCE GFI Group Inc.

GFI Group and Ener-G enter into Data Agreement

GFI Market Data to supply power and gas data to UK clean tech solutions provider

New York, July 6, 2011 – GFI Market Data, a division of GFI Group Inc., announced today that it has entered into an agreement with ENER-G Procurement Ltd, a specialist consultancy in energy purchase and management, to provide its European power and gas market data. GFI will supply ENER-G Procurement with historical data as well as streaming updates.

Satish Pandey, ENER-G Procurement’s Head of Strategy & Risk Management said: “A leading broker like GFI offers a great deal of liquidity on the range of prices on the forward curve and this offers us greater confidence in our knowledge of the current state of the market. This knowledge helps us to better manage our supplier and client relationships” and added, “Accessing pricing is important but it is key that the liquidity behind those prices comes from a leading energy broker like GFI“.

Shai Popat, Head of European Sales at GFI Market Data commented: “We are delighted to have ENER-G Procurement as a client. It is pleasing to see a leading procurement company turning to GFI for an independent and comprehensive view of the energy markets. Our energy brokers are world class as is EnergyMatch®, our electronic trading platform and sourcing the pricing directly from this platform makes our market data of the highest quality.”

Sourced directly from GFI EnergyMatch®, GFI Group’s energy and commodities electronic  trading platform, GFI Market Data provides a comprehensive view of executable and executed prices in the Power, Gas, Emissions, Coal and Freight markets.

ENER-G Procurement Ltd is a consulting firm that works with companies from a wide range of sectors to develop optimum purchasing strategies. As an independent broker of electricity and natural gas, the company uses its purchasing expertise and market knowledge to secure the best procurement terms possible, while providing specialist services to manage an energy portfolio.

About GFI Market Data
GFI is uniquely positioned to provide the capital markets with specific suites of data. GFI Market Data refers to actual market prices and trade information, reflecting real market sentiment not just indications gleaned through consensus pricing. GFI Market Data’s product suite includes CDS, bonds, FX options, equities, interest rates and energy and commodities data.

GFI Market Data is the brand under which Fenics Software Limited operates its market data business.

 

About GFI Group Inc. www.GFIgroup.com

GFI Group Inc. (NYSE: “GFIG”) is a leading provider of wholesale brokerage, clearing services, electronic execution and trading support products for global financial markets. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of fixed income, financial, equity and commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 1,900 people with additional offices in London, Paris, Hong Kong, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogotá, Dubai, Dublin, Tel Aviv, Calgary, Los Angeles, Englewood (NJ) and Sugar Land (TX). GFI Group Inc. provides services and products to over 2,400 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFISM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®, FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

 

Forward-looking statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the “Company”) and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; uncertainties relating to litigation and the Company’s ability to assess and integrate acquisition prospects. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

For any queries or additional information please contact:

Patricia Gutierrez
Vice President – Public Relations
GFI Group Inc.
55 Water Street, 28th Floor
New York, NY 10041
Tel: (212) 968 2964
Mob: (646) 717 4379
patricia.gutierrez@gfigroup.com