FXall announces 2011 as profitable

FX brokers are piling in positive results for trading in 2011. FX Alliance Inc. a leading independent global provider of

FX brokers are piling in positive results for trading in 2011. FX Alliance Inc. a leading independent global provider of electronic foreign exchange trading solutions, today reported financial results for the fourth quarter and full year ended December 31, 2011.

For the fourth quarter of 2011, total revenues increased 15.8% to $29.6 million from $25.5 million for the fourth quarter of 2010. Net income increased 51.2% to $7.8 million, compared with $5.1 million for the same period last year. On a non-GAAP basis, adjusted net income increased 54.4% to $8.6 million, or $0.30 per diluted share, from $5.6 million, or $0.19 per diluted share, for the same period last year. A full reconciliation of GAAP to non-GAAP financial measures is included with this release.

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For the full year 2011, total revenues increased 19.4% to $118.3 million from $99.1 million in 2010. Net income increased 23.2% to $26.1 million compared with $21.2 million in 2010. On a non-GAAP basis, adjusted net income increased 30.8% to $29.4 million, or $1.02 per diluted share, from $22.5 million, or $0.78 per diluted share, in 2010.

“We are pleased with our results for 2011. While our trading volumes in the fourth quarter were impacted by weakness in the overall foreign exchange market, we still generated solid financial results demonstrating the diversity within our business model and scalability of our electronic trading platform,” commented Phil Weisberg, chairman and chief executive officer of FXall. “Looking ahead, we expect to generate continued growth in our business driven by our strong franchise and greater expansion of our client footprint, combined with the secular shift to electronic trading.”

Fourth quarter 2011 total revenues increased 15.8% to $29.6 million from $25.5 million for the same period last year. Total transaction fees grew 19.3% to $22.4 million from $18.7 million in the fourth quarter of 2010. User, settlement, and license fees increased 5.0% to $7.2 million from $6.8 million in the fourth quarter of 2010.

Total average daily volume (counting one side of each trade) was $82.1 billion, an increase of 23.0% from the fourth quarter of 2010 and a decrease of 7.3% from the third quarter of 2011. Average daily volume for relationship trading was $65.8 billion, an increase of 18.3% from the fourth quarter of 2010 and a decrease of 3.4% from the third quarter of 2011. Average daily volume for active trading was $16.3 billion, an increase of 46.6% from the fourth quarter of 2010 and a decrease of 20.2% from the third quarter of 2011.

Adjusted EBITDA increased 19.5% to $14.2 million from $11.9 million in the fourth quarter of 2010. Adjusted EBITDA margin was 48.1% compared to 46.6% in the same period a year ago.

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The effective tax rate for the fourth quarter was 26.0% compared to 40.6% in the fourth quarter of 2010 and the decrease was due to provision to return adjustments, tax credits and changes in the way the Company apportions its income to the states where it conducts business.

Full year 2011 total revenues increased 19.4% to $118.3 million from $99.1 million in 2010. Total transaction fees increased 24.4% to $90.3 million from $72.6 million in 2010. User, settlement, and license fees increased 5.9% to $27.9 million from $26.3 million in 2010.

Total average daily volume (counting one side of each trade) was $83.4 billion, an increase of 34.0% from 2010. Average daily volume for relationship trading and active trading was $66.4 billion and $17.1 billion, an increase of 30.8% and 47.6%, respectively, from 2010.

Adjusted EBITDA increased 24.0% to $57.8 million for 2011 from $46.6 million in 2010. Adjusted EBITDA margin was 48.9% compared to 47.1% in the prior year.

The effective tax rate for the full year 2011 was 38.6% compared to 40.6% in 2010 and the decrease was due to provision to return adjustments, tax credits and changes in the way the Company apportions its income to the states where it conducts business.

Capital expenditures for the year ended December 31, 2011 were $14.3 million, compared with $16.6 million in 2010. At December 31, 2011, cash, cash equivalents and investments available-for-sale were $134.8 million.

Forexmagnates team wrote a detailed report on the institutional FX market, covering major players and daily volumes, available in the latest quarterly report.

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