FXCM Announces Third Quarter 2014 Results
FXCM Inc. (NYSE:FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended September 30, 2014, U.S. GAAP revenues of $116.1 million, compared to $113.2 million for the quarter ended September 30, 2013, an increase of 3%. U.S. GAAP net income attributable to FXCM Inc. was $2.4 million for the Third Quarter 2014 or $0.05 per diluted share, compared to U.S. GAAP net loss of $5.1 million or $0.15 per diluted share for the Third Quarter 2013.
For the nine months ended September 30, 2014, U.S. GAAP revenues were $329.1 million, compared to $376.2 million for the nine months ended September 30, 2013, a decrease of 13%. U.S. GAAP net income attributable to FXCM Inc. was $1.4 million for the nine months ended September 30, 2014 or $0.03 per diluted share, compared to U.S. GAAP net income of $11.9 million or $0.37 per diluted share for the nine months ended September 30, 2013, a decrease of 88% and 92% respectively.
“At the beginning of this quarter, volatility in the currency markets hit all-time lows but conditions notably improved in September,” said Drew Niv, Chief Executive Officer. “The improvement continued into October and we are pleased to announce that October is our second consecutive month of record retail and institutional volumes.”
“With our client equity increasing by 12% year-to-date to over $1.3 billion and with overwhelming positive feedback from clients on our new retail forex pricing model which we recently announced,” continued Niv, “we believe we are well positioned for the future even if trading conditions were to moderate.”
Adjusted EBITDA for the Third Quarter 2014 was $28.4 million, compared to $33.0 million for the Third Quarter 2013, a decrease of 14%. Net income on an adjusted basis was $8.4 million or $0.11 per diluted, fully exchanged share for the Third Quarter 2014, compared to Net income on an adjusted basis of $9.7 million or $0.13 per diluted, fully exchanged share for the Third Quarter 2013, a decrease of 13% and 15% respectively.
Adjusted EBITDA for the nine months ended September 30, 2014 was $66.5 million, compared to $131.2 million for the nine months ended September 30, 2013, a decrease of 49%. Net income on an adjusted basis was $12.1 million or $0.15 per diluted, fully exchanged share for the nine months ended September 30, 2014, compared to $50.5 million or $0.66 per diluted, fully exchanged share for the nine months ended September 30, 2013, a decrease of 76% and 77% respectively.
Adjusted EBITDA, Net income on an adjusted basis and Net income on an adjusted basis per diluted, fully exchanged 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 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 operating metrics for October 2014 for its retail and institutional foreign exchange businesses. Monthly activities included:
October 2014 Operating Metrics
Retail Trading Metrics
Retail customer trading volume(1) of $509 billion in October 2014, 23% higher than September 2014 and 62% higher than October 2013.
Average retail customer trading volume(1) per day of $22.1 billion in October 2014, 18% higher than September 2014 and 61% higher than October 2013.
An average of 584,080 retail client trades per day in October 2014, 21% higher than September 2014 and 54% higher than October 2013.
Tradeable accounts(2) of 220,180 as of October 31, 2014, an increase of 8,161, or 4%, from September 2014, and an increase of 31,366,or 17%, from October 2013.
Institutional Trading Metrics
Institutional customer trading volume(1) of $393 billion in October 2014, 9% higher than September 2014 and 123% higher than October 2013.
Average institutional trading volume(1) per day of $17.1 billion in October 2014, 4% higher than September 2014 and 122% higher than October 2013.
An average of 41,098 institutional client trades per day in October 2014, 4% higher than September 2014 and 41% higher than October 2013.
Source: businesswire-FXCM Announces Third Quarter 2014 Results
