FX Alliance Q2 2012: Revenues up 7%, Net Income flat, volume up 6.5%
Comparing to Q1 2012 FXAll's volume rose 6.5% and Revenues increase by 4.7% while Net Income was up as much as 35%.
FX Alliance Inc. ("FXall") (NYSE: FX), the leading independent global provider of electronic foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading solutions, today reported financial results for the second quarter of 2012.
For the second quarter of 2012, revenues increased 7% to $31.4 million from $29.4 million in the second quarter of 2011. Adjusted Net Income decreased 3% to $6.9 million, or $0.23 per share, from $7.1 million or $0.25 per share for the same period last year. Net Income of $6.2 million was consistent with the same period last year. For the six months ended June 30, 2012, revenues increased 8% to $61.4 million from $56.8 million in the same period in 2011. Adjusted Net Income decreased 7% to $12.0 million for the six months ended June 30, 2012, compared to $13.0 million in the same period last year. Net Income for the six months ended June 30, 2012 decreased 5% to $10.8 million from $11.4 million in the same period last year. A full reconciliation of GAAP to non-GAAP financial measures is included with this release.
Total average daily volume (counting one side of each trade) was $92.4 billion, an increase of 8% from the second quarter of 2011, driven by growth across both Relationship and Active trading. Average daily volume for Relationship Trading was $71.5 billion, 5% higher than the second quarter of 2011, while average daily volume for Active Trading increased 18% from the second quarter of 2011 to $20.8 billion. The average transaction fee per million in the second quarter of 2012 was $4.06, reflecting $3.51 for Relationship Trading and $5.94 for Active Trading.
Operating expenses were $20.9 million, 13% higher than Q2 2011. Adjusted EBITDA was $14.2 million, down from $14.8 million in Q2 2011. The Adjusted EBITDA margin was 45% compared to 50% in the second quarter of 2011.
The effective tax rate for the second quarter was 39.8% compared to 42.8% in the second quarter of 2011.
Capital expenditures for the quarter ended June 30, 2012 were $3.9 million, consistent with the same period in 2011.
At June 30, 2012, cash, cash equivalents and investments available-for-sale were $68.8 million.
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| Three Months Ended June 30 | Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Revenues | ||||
| Transaction fees | $23,987 | $22,821 | $46,792 | $43,336 |
| User, Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term, and license fees | 7,409 | 6,608 | 14,625 | 13,477 |
| Total revenues | 31,396 | 29,429 | 61,417 | 56,813 |
| Operating Expenses | ||||
| Salaries and benefits | 12,703 | 12,460 | 26,814 | 24,590 |
| Technology | 1,940 | 1,448 | 3,838 | 3,032 |
| General and administrative | 1,989 | 1,523 | 4,100 | 2,992 |
| Marketing | 355 | 356 | 696 | 789 |
| Professional fees | 1,295 | 351 | 2,640 | 778 |
| Depreciation and amortization | 2,657 | 2,434 | 5,227 | 4,866 |
| Total operating expenses | 20,939 | 18,572 | 43,315 | 37,047 |
| Operating income | 10,457 | 10,857 | 18,102 | 19,766 |
| Interest and other income (expense), net | (122) | 51 | (80) | 141 |
| Income before income taxes | 10,335 | 10,908 | 18,022 | 19,907 |
| Provision for income taxes | 4,116 | 4,673 | 7,179 | 8,527 |
| Net income | 6,219 | 6,235 | 10,843 | 11,380 |
| Accretion and allocated earnings of preferred stock | - | 2,954 | 1,276 | 5,604 |
| Net income allocated to common stockholders | $6,219 | $3,281 | $9,567 | $5,776 |
| Earnings per common share: | ||||
| Basic | $0.22 | $0.16 | $0.36 | $0.27 |
| Diluted | $0.21 | $0.15 | $0.35 | $0.27 |
| Weighted-average common shares outstanding: | ||||
| Basic | 28,336,566 | 21,043,899 | 26,769,958 | 21,043,899 |
| Diluted | 29,433,797 | 21,582,989 | 27,712,678 | 21,517,390 |
| Net Income per common share including | ||||
| conversion of preferred at beginning of period: | ||||
| Basic[1] | $0.22 | $0.22 | $0.38 | $0.40 |
| Diluted[1] | $0.21 | $0.22 | $0.37 | $0.40 |
| Adjusted Net Income per common share | ||||
| including conversion of preferred at beginning of period: | ||||
| Basic[1] | $0.24 | $0.25 | $0.43 | $0.46 |
| Diluted[1] | $0.23 | $0.25 | $0.41 | $0.45 |
| Adjusted Weighted-average common shares outstanding | ||||
| including conversion of preferred at beginning of period: | ||||
| Basic[1] | 28,336,566 | 28,284,637 | 28,321,545 | 28,284,637 |
| Diluted[1] | 29,433,797 | 28,823,727 | 29,264,265 | 28,758,128 |
| [1] Figures reflect non-GAAP financial measures |
Comparing to Q1 2012 FXAll's volume rose 6.5% and Revenues increase by 4.7% while Net Income was up as much as 35%.
FX Alliance Inc. ("FXall") (NYSE: FX), the leading independent global provider of electronic foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading solutions, today reported financial results for the second quarter of 2012.
For the second quarter of 2012, revenues increased 7% to $31.4 million from $29.4 million in the second quarter of 2011. Adjusted Net Income decreased 3% to $6.9 million, or $0.23 per share, from $7.1 million or $0.25 per share for the same period last year. Net Income of $6.2 million was consistent with the same period last year. For the six months ended June 30, 2012, revenues increased 8% to $61.4 million from $56.8 million in the same period in 2011. Adjusted Net Income decreased 7% to $12.0 million for the six months ended June 30, 2012, compared to $13.0 million in the same period last year. Net Income for the six months ended June 30, 2012 decreased 5% to $10.8 million from $11.4 million in the same period last year. A full reconciliation of GAAP to non-GAAP financial measures is included with this release.
Total average daily volume (counting one side of each trade) was $92.4 billion, an increase of 8% from the second quarter of 2011, driven by growth across both Relationship and Active trading. Average daily volume for Relationship Trading was $71.5 billion, 5% higher than the second quarter of 2011, while average daily volume for Active Trading increased 18% from the second quarter of 2011 to $20.8 billion. The average transaction fee per million in the second quarter of 2012 was $4.06, reflecting $3.51 for Relationship Trading and $5.94 for Active Trading.
Operating expenses were $20.9 million, 13% higher than Q2 2011. Adjusted EBITDA was $14.2 million, down from $14.8 million in Q2 2011. The Adjusted EBITDA margin was 45% compared to 50% in the second quarter of 2011.
The effective tax rate for the second quarter was 39.8% compared to 42.8% in the second quarter of 2011.
Capital expenditures for the quarter ended June 30, 2012 were $3.9 million, consistent with the same period in 2011.
At June 30, 2012, cash, cash equivalents and investments available-for-sale were $68.8 million.
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| Three Months Ended June 30 | Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Revenues | ||||
| Transaction fees | $23,987 | $22,821 | $46,792 | $43,336 |
| User, Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term, and license fees | 7,409 | 6,608 | 14,625 | 13,477 |
| Total revenues | 31,396 | 29,429 | 61,417 | 56,813 |
| Operating Expenses | ||||
| Salaries and benefits | 12,703 | 12,460 | 26,814 | 24,590 |
| Technology | 1,940 | 1,448 | 3,838 | 3,032 |
| General and administrative | 1,989 | 1,523 | 4,100 | 2,992 |
| Marketing | 355 | 356 | 696 | 789 |
| Professional fees | 1,295 | 351 | 2,640 | 778 |
| Depreciation and amortization | 2,657 | 2,434 | 5,227 | 4,866 |
| Total operating expenses | 20,939 | 18,572 | 43,315 | 37,047 |
| Operating income | 10,457 | 10,857 | 18,102 | 19,766 |
| Interest and other income (expense), net | (122) | 51 | (80) | 141 |
| Income before income taxes | 10,335 | 10,908 | 18,022 | 19,907 |
| Provision for income taxes | 4,116 | 4,673 | 7,179 | 8,527 |
| Net income | 6,219 | 6,235 | 10,843 | 11,380 |
| Accretion and allocated earnings of preferred stock | - | 2,954 | 1,276 | 5,604 |
| Net income allocated to common stockholders | $6,219 | $3,281 | $9,567 | $5,776 |
| Earnings per common share: | ||||
| Basic | $0.22 | $0.16 | $0.36 | $0.27 |
| Diluted | $0.21 | $0.15 | $0.35 | $0.27 |
| Weighted-average common shares outstanding: | ||||
| Basic | 28,336,566 | 21,043,899 | 26,769,958 | 21,043,899 |
| Diluted | 29,433,797 | 21,582,989 | 27,712,678 | 21,517,390 |
| Net Income per common share including | ||||
| conversion of preferred at beginning of period: | ||||
| Basic[1] | $0.22 | $0.22 | $0.38 | $0.40 |
| Diluted[1] | $0.21 | $0.22 | $0.37 | $0.40 |
| Adjusted Net Income per common share | ||||
| including conversion of preferred at beginning of period: | ||||
| Basic[1] | $0.24 | $0.25 | $0.43 | $0.46 |
| Diluted[1] | $0.23 | $0.25 | $0.41 | $0.45 |
| Adjusted Weighted-average common shares outstanding | ||||
| including conversion of preferred at beginning of period: | ||||
| Basic[1] | 28,336,566 | 28,284,637 | 28,321,545 | 28,284,637 |
| Diluted[1] | 29,433,797 | 28,823,727 | 29,264,265 | 28,758,128 |
| [1] Figures reflect non-GAAP financial measures |