KCG Announces Consolidated Earnings Of $2.19 Per Diluted Share For The First Quarter Of 2015 

KCG

KCG Holdings, INC. has issued a press release to inform for the company’s first quarter 2015 results.

  • From first quarter 2015 results and the sale of KCG Hotspot, KCG’s tangible book value rises to $13.86 per share, book value increases to $15.10 per share, and stockholders’ equity rises to $1.78 billion
  • KCG announces plans to launch a modified Dutch auction tender offer for up to $330 million of its common stock

KCG Holdings, Inc. (NYSE: KCG) reported consolidated earnings of $249.3 million, or $2.19 per diluted share, for the first quarter of 2015. Included in these results is a pre-tax gain of $373.8 million from the sale of KCG Hotspot net of professional fees and compensation costs related to the sale. Excluding these items, on a non-GAAP basis, first quarter 2015 pre-tax income from continuing operations was $32.4 million. A reconciliation of GAAP to non-GAAP results is included in Exhibit 4.

First Quarter Highlights

  • Market making grew the percentage of consolidated U.S. equity share and dollar volume on both a quarter over quarter and year over year basis
  • KCG BondPoint grew trade volumes across Corporates, Municipals and CDs on both a quarter over quarter and year over year basis
  • Completed the sale of KCG Hotspot to BATS Global Markets, Inc.
  • Raised $500 million in 6.875% Senior Secured Notes due in 2020, repaid $117 million in Convertible Notes upon maturity in March 2015, and, subsequent to the quarter, redeemed $305 million in 8.250% Senior Secured Notes due in 2018
  • Subsequent to the quarter, announced plans to launch a modified Dutch auction tender offer for up to $330 million of its common stock as part of an expanded share repurchase program

“During the first quarter, we accomplished a great deal. On the cost front, we’ve relentlessly focused on operating expenses. On the client front, we continue to develop strategic relationships. In addition, we closed the sale of KCG Hotspot to BATS and initiated a process to rationalize our long-term debt. We’ve done all this while continuing to build out and optimize our trading businesses to position them for future revenue growth,” said CEO Daniel Coleman. “Notwithstanding all of this, we believe we can do more. We can support our firm’s ability to grow with regard to improving returns on equity and optimizing our capital structure. To that end, we announced a planned $330 million tender offer at a range of $13.50 to $14.00 per share. The offer is a premium to current and historical prices our shares have traded at since the merger. We believe this is an appropriate recognition of our stockholders’ patience as we have worked through the integration and we believe this is the right use of capital as we invest in our future as a new breed of independent securities firm.”

Source: KCG – KCG Announces Consolidated Earnings Of $2.19 Per Diluted Share For The First Quarter Of 2015

 

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