FXCM Announces Fourth Quarter and Full Year 2010 Results, to acquire GCI Japan

Fourth Quarter Highlights: 2010 fourth quarter revenues of $96.1 million, up 29% versus the same period in 2009 Adjusted Pro

Fourth Quarter Highlights:

  • 2010 fourth quarter revenues of $96.1 million, up 29% versus the same period in 2009
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  • Adjusted Pro Forma EBITDA of $32.3 million, up 42% versus the same period in 2009
  • Adjusted Pro Forma net income of $18.1 million or $0.24 per fully diluted share, up 37% versus the same period in 2009
  • Customer equity of $641.2 million, up 81% from same period in 2009
  • Tradeable accounts of 175,240, up 25% from the same period in 2009
  • Completed acquisition of ODL Group Ltd., a U.K. – based FX broker
  • Completed initial public offering of $242.5 million on New York Stock Exchange
  • Total trading volume was $3,178 billion, down 9% the same period in 2009

Full-Year Highlights:

  • Full year revenues of $360.3 million, up 12% compared to 2009
  • Adjusted Pro Forma EBITDA of $120.5 million, up 16% compared to 2009
  • Adjusted Pro Forma net income of $69.6 million or $0.92 per fully diluted share, up 13% compared to 2009
  • Entered into a Memorandum of Understanding to acquire the retail FX business of GCI Capital of Japan, a FX provider with over 20,000 tradeable accounts and $100 million in customer equity
  • Declaring a quarterly dividend of $0.06 per share of Class A common stock

FXCM Inc (NYSE: FXCM), a leading online provider of foreign exchange, or FX, trading and related services, today announced for the quarter ended December 31, 2010, revenues increased $21.5 million or 29% to $96.1 million, compared to $74.6 million for the corresponding prior year quarter. Adjusted Pro Forma EBITDA for the quarter was $32.3 million, an increase of $9.5 million or 42%, compared to $22.8 million, for the prior year quarter. Adjusted Pro Forma Net Income was $18.1 million, or $0.24 per share on a fully exchanged, fully diluted basis, compared to $13.2 million, or $0.18 per share, for the corresponding prior year quarter, an increase of 37%.

Adjusted Pro Forma results assume the conversion and exchange of all FXCM Holdings, LLC units into FXCM Inc. Class A shares, resulting in the elimination of the non-controlling interest and the corresponding adjustment to the entity’s tax provision. In addition, Adjusted Pro Forma results eliminate certain non-recurring compensation charges relating to FXCM Inc.’s initial public offering.

For the year ended December 31, 2010, revenues increased $37.6 million or 12% to $360.3 million, compared to $322.7 million for the corresponding prior year. Adjusted Pro Forma EBITDA for the year was $120.5 million, an increase of $16.9 million or 16%, compared to $103.6 million, for the prior year. Adjusted Pro Forma Net Income was $69.6 million, or $0.92 on a fully exchanged, fully diluted basis, compared to $61.4 million, or $0.82 per share, for the corresponding prior year, an increase of 13%.

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U.S. GAAP net income for the fourth quarter 2010 was $20.8 million of which $0.2 million or $0.01 per fully diluted share was attributable to FXCM Inc. for the post-IPO period of December 7, 2010 through December 31, 2010. Following the completion of FXCM Inc.’s initial public offering on December 7, 2010, FXCM Holdings, LLC is consolidated into the results of FXCM Inc. Prior to the initial public offering, FXCM Inc. did not engage in any business or activities except in connection with its formation.

“FXCM delivered strong growth in the quarter – growing tradeable accounts by 25%, revenues by 29% and Adjusted Pro Forma EBITDA by 42% versus the fourth quarter 2009,” said Drew Niv, Chief Executive Officer.

“We also expanded our presence geographically with the acquisition of ODL Group, the third largest FX operator in the U.K. which gives us a much stronger position in Europe,” he continued. “And we are pleased to announce today that we have entered into a Memorandum of Understanding to acquire the retail FX business of GCI Capital of Japan with over 20,000 active accounts and $100 million in customer equity. We intend to merge this business with the Japanese subsidiary of ODL, which would provide FXCM with a major presence in Japan – the world’s largest retail FX market.”

“Lastly, we are pleased to have completed our initial public offering on the New York Stock Exchange in the fourth quarter. We believe that being a public company will give our customers greater comfort in trading through FXCM and further demonstrate that our agency model differentiates us from our competition.”

More info can be found here.

 

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