福匯金業

FXCM Group Provides Financial Information for Third Quarter 2017

NEW YORK, November 13, 2017 -- FXCM Group, LLC ("FXCM Group" or “FXCM”),a leading international provider of online foreign exchange trading, CFD trading, spread betting and related services, today provided selected financial information regarding its third quarter 2017 results.

“Despite multi-year low volatility in the currency markets in the third quarter, we were able to generate Adjusted EBITDA of $3.8 million, including a $1.2 million charge for severance expense as we continue to improve our cost structure,” said Brendan Callan, CEO of FXCM. “Additionally, we repaid $55.8 million of our loan with Leucadia and now have $67.6 million of principal outstanding on our original $300.0 million loan.”

FXCM Group, LLC (US Millions) (unaudited)

Selected Income Statement Data

Three Months Ended
September 30, 2017
Nine Months Ended
September 30, 2017
Total Net Revenues $44.0 $139.2
Operating Expenses¹ $40.1 $118.6
Loss from Continuing Operations $(5.8) $(18.1)
Net Income $47.6 $17.0
Adjusted EBITDA — Continuing Operations² $3.8 $21.7

¹Excludes depreciation and amortization of $4.8 million and $14.9 million for the three and nine months ended September 30, 2017, respectively.
²See reconciliation following


Selected Balance Sheet Data

As of September 30, 2017
Cash and Cash Equivalents $121.2
Cash and cash equivalents, held for customers $331.4
Total Assets $554.1
Credit Agreement to Leucadia (net)3 $64.3
Total Members' Capital $66.6

³Net of $3.3 million of unamortized discount.



Selected Customer Trading Metrics for Continuing Operations

Three Months Ended
September 30, 2017
Nine Months Ended
September 30, 2017
Tradeable accounts 104,356 104,356
Active accounts 122,806 122,806
Daily average trades 332,076 366,350
Daily average trades per active account 2.7 3.0
Total trading volume (billions) $616 $1908
Trading revenue per million traded $69 $72
Average customer trading volume per day (billions) $9.5 $9.8
Trading days 65 194


Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA4 — Continuing Operations
(US Millions) (unaudited)

Three Months Ended
September 30, 2017
Nine Months Ended
September 30, 2017
Net Income $47.6 $17.0
Adjustments:
Net loss attributable to non-controlling interests5 (11.0) (21.4)
Income from discontinued operations, net of tax6 (42.4) (13.6)
Income tax provision 0.4 1.2
Interest on borrowings 9.2 29.0
Gain on derivative liability — Leucadia financing7 (4.7) (6.2)
General and administrative8,9 (0.1) 1.0
Depreciation and amortization 4.8 14.9
Gain on sale of equity method investment10 - (0.2)
Total Adjustments (43.8) 4.7
Adjusted EBITDA4 - Continuing Operations $3.8 $21.7

4 - Adjusted EBITDA from Continuing Operations is a Non-GAAP measure that is not prepared under any comprehensive set of accounting rules or principles and does not reflect all of the amounts associated with the Company's results of operations as determined in accordance with U.S. GAAP.
5 - Represents the elimination of the share of net loss allocated among the non-controlling interests to calculate total consolidated net income (loss) from the Company’s operations.
6 - Represents the elimination of the income or loss attributable to discontinued operations, net of tax, in order to calculate income attributable to continuing operations only.
7 - Represents the elimination of the gain or loss attributable to the derivative liability embedded in the Company’s financing agreement with Leucadia, as it is a non-operating, non-cash gain or loss.
8 - For the three months ended September 30, 2017, represents an adjustment to the charges to reserve for restitution related to trade execution practices prior to August 2010.
9 - For the nine months ended September 30, 2017, represents the elimination of charges to reserve for restitution related to trade execution practices prior to August 2010 and client adjustments related to various trading platform issues.
10 - Represents the elimination of a gain on sale of an equity method investment which was impaired in 2016.

NON-GAAP FINANCIAL MEASURES

In addition to financial results reported in accordance with U.S. GAAP, we have provided Adjusted EBITDA, a Non- GAAP financial measure. We believe this Non-GAAP measure, when presented in conjunction with the comparable U.S. GAAP measure, is useful to investors in better understanding our current financial performance as seen through the eyes of management and facilitates comparisons of our historical operating trends across several periods. We believe that investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in our industry that present similar measures, although the methods used by other companies in calculating Adjusted EBITDA may differ from our method, even if similar terms are used to identify such measure.

Adjusted EBITDA provides us with an understanding of the results from the primary operations of our business by excluding the effects of certain gains, losses or other charges that do not reflect the normal earnings of our core operations or that may not be indicative of our future outlook and prospects. Internally, Adjusted EBITDA is used by management for various purposes, including to evaluate our operating performance and operational strategies, and as a basis for strategic planning, forecasting and for compensation purposes.

Adjusted EBITDA does not represent and should not be considered as a substitute for net income or net income attributable to FXCM Group, LLC, each as determined in accordance with U.S. GAAP. Adjusted EBITDA reflects the following adjustments to net income:

Regulatory and Legal Costs. Adjustments have been made to eliminate certain costs or recoveries (including client reimbursements, regulatory fines and settlements from lawsuits) associated with certain regulatory and legal matters. Given the nature of these expenses, they are not viewed by management as expenses incurred in the ordinary course of business and we believe it is useful to show the effects of eliminating these expenses.

Gain on sale of equity method investment. An adjustment has been made to eliminate the gain on the sale of an equity method investment which had previously been impaired in December 2016. Given the nature of this gain, it is not viewed by management as income in the ordinary course of business and we believe it is useful to show the effects of eliminating this gain.

About FXCM Group, LLC
FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading, spread betting and related services. The company's mission is to provide global traders with access to the world's largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on FX trading and provides trading tools proprietary data and premium resources. FXCM Pro provides retail brokers, small hedge funds and emerging market banks access to wholesale execution and liquidity, while providing high and medium frequency funds access to prime brokerage services via FXCM Prime.

Trading foreign exchange and CFDs on margin carries a high level of risk, which may result in losses that could exceed your deposits, therefore may not be suitable for all investors.Read full disclaimer.

FXCM Group is a holding company of Forex Capital Markets Limited, inclusive of all EU branches (FXCM UK) ,FXCM Australia Pty. Limited,(FXCM AU) ,and all affiliates of aforementioned firms, or other firms under the FXCM group of companies [collectively "FXCM"].

Jaclyn Sales, 646-432-2463 
Vice-President, Corporate Communications
jsales@fxcm.com

FXCM Group, LLC and Subsidiaries
Consolidated Statement of Financial Condition
As of September 30, 2017
(In thousands, unaudited)

Assets
Current assets:
Cash and cash equivalents $121,232
Cash and cash equivalents, held for customers 331,447
Due from brokers 33
Accounts receivable, net 16,255
Tax receivable 221
Assets held for sale 40,649
Total current assets 509,837
   
Deferred tax asset 887
Office, communication and computer equipment, net 27,921
Other intangible assets, net 1,475
Other assets 14,029
Total assets $554,149
Liabilities and members' capital
Current liabilities:
Customer account liabilities $331,447
Accounts payable and accrued expenses 27,169
Due to related party 2,483
Due to brokers 1,948
Credit Agreement – Related Party 64,329
Other liabilities 400
Liabilities held for sale 2,976
Total current liabilities 430,752
   
Deferred tax liability 282
Other liabilities 7,034
Total liabilities 438,068
Redeemable non-controlling interest (Leucadia) 49,454
Members’ capital:
Members’ capital – Global Brokerage Holdings, LLC 49,454
Non-controlling interests 17,173
Total members’ capital 66,627
Total liabilities, Redeemable non-controlling interest (Leucadia) and Members' capital $554,149


FXCM Group, LLC and Subsidiaries
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2017
(In thousands, unaudited)

For the Three
Months Ended
September 30, 2017
Year to Date
Period Ended
September 30, 2017
Revenues:
Trading revenue $ 42,785 $ 136,664
Net interest revenue 382 870
Other income 804 1,682
Total net revenues 43,971 139,216
Operating Expenses:
Compensation and benefits 14,762 40,316
Referring broker fees 5,443 18,710
Advertising and marketing 4,017 11,644
Communication and technology 5,494 17,027
Trading costs, prime brokerage and clearing fees 996 2,511
General and administrative 8,542 25,680
Management fee 848 2,662
Depreciation and amortization 4,770 14,908
Total operating expenses 44,872 133,458
Operating (loss) income (901) 5,758
Other Expense
Gain on derivative liability – Credit Agreement (4,668) (6,172)
Gain on equity method investments, net - (170)
Interest on borrowings 9,169 28,981
Loss from continuing operations before income taxes (5,402) (16,881)
Income tax provision 383 1,171
Loss from continuing operations (5,785) (18,052)
Income from discontinued operations, net of tax 42,364 13,613
Net income (loss) 36,579 (4,439)
Net loss attributable to non-controlling interests (11,028) (21,407)
Net income attributable to FXCM Group, LLC $47,607 $16,968

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