CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except per share data)
(unaudited)
December 31,
December 31,
2020
2019
Assets
Cash and cash equivalents
$ 593,646
$ 415,379
Cash segregated under regulatory requirements
257,031
220,735
Securities owned
58,572
57,525
Marketable securities
349
14,228
Receivables from broker-dealers, clearing organizations, customers and related broker-dealers
304,022
551,445
Accrued commissions and other receivables, net
739,009
788,284
Loans, forgivable loans and other receivables from employees and partners, net
408,142
315,590
Fixed assets, net
214,782
204,841
Investments
38,008
40,349
Goodwill
556,211
553,745
Other intangible assets, net
287,157
303,224
Receivables from related parties
11,953
14,273
Other assets
480,418
447,296
Total assets
$ 3,949,300
$ 3,926,914
Liabilities, Redeemable Partnership Interest, and Equity
Short-term borrowings
$ 3,849
$ 4,962
Securities loaned
-
13,902
Accrued compensation
220,726
215,085
Payables to broker-dealers, clearing organizations, customers and related broker-dealers
179,716
416,566
Payables to related parties
36,252
72,497
Accounts payable, accrued and other liabilities
1,363,919
1,312,609
Notes payable and other borrowings
1,315,935
1,142,687
Total liabilities
3,120,397
3,178,308
Redeemable partnership interest
20,674
23,638
Equity
Stockholders' equity:
Class A common stock, par value $0.01 per share; 750,000 shares authorized; 373,545 and 358,440 shares
issued at December 31, 2020 and December 31, 2019, respectively; and 323,018 and 307,915 shares
outstanding at December 31, 2020 and December 31, 2019, respectively
3,735
3,584
Class B common stock, par value $0.01 per share; 150,000 shares authorized; 45,884 shares issued and
outstanding at each of December 31, 2020 and December 31, 2019, convertible into Class A common stock
459
459
Additional paid-in capital
2,354,492
2,272,103
Treasury stock, at cost: 50,527 and 50,525 shares of Class A common stock at
(315,313)
(315,308)
December 31, 2020 and December 31, 2019, respectively
Retained deficit
(1,265,504)
(1,253,089)
Accumulated other comprehensive income (loss)
(28,930)
(33,102)
Total stockholders' equity
748,939
674,647
Noncontrolling interest in subsidiaries
59,290
50,321
Total equity
808,229
724,968
Total liabilities, redeemable partnership interest and equity
$ 3,949,300
$ 3,926,914
US GAAP P&L
BGC PARTNERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31,
Year Ended December 31,
Revenues:
2020
2019
2020
2019
Commissions
$ 377,146
$ 382,897
$ 1,567,668
$ 1,645,818
Principal transactions
73,687
71,725
351,633
321,923
Total brokerage revenues
450,833
454,622
1,919,301
1,967,741
Fees from related parties
4,857
8,218
25,754
29,442
Data, software and post-trade
20,860
18,151
81,920
73,166
Interest and dividend income
(783)
2,865
12,332
18,319
Other revenues
3,659
3,300
17,413
15,563
Total revenues
479,426
487,156
2,056,720
2,104,231
Expenses:
Compensation and employee benefits
258,687
268,696
1,131,650
1,125,911
Equity-based compensation and allocations of net income to limited partnership units and FPUs
80,515
69,389
183,545
170,625
Total compensation and employee benefits
339,202
338,085
1,315,195
1,296,536
Occupancy and equipment
45,723
47,387
189,268
183,207
Fees to related parties
4,954
2,858
23,193
19,365
Professional and consulting fees
18,072
27,553
73,470
92,167
Communications
30,470
29,715
121,603
119,982
Selling and promotion
6,891
21,432
38,167
81,645
Commissions and floor brokerage
13,646
16,377
59,376
63,617
Interest expense
21,811
16,354
76,607
60,246
Other expenses
21,574
29,487
88,933
118,449
Total non-compensation expenses
163,141
191,163
670,617
738,678
Total expenses
502,343
529,248
1,985,812
2,035,214
Other income (losses), net:
Gains (losses) on divestitures and sale of investments
403
(14)
394
18,421
Gains (losses) on equity method investments
1,354
1,064
5,023
4,115
Other income (loss)
1,687
11,642
1,580
30,511
Total other income (losses), net
3,444
12,692
6,997
53,047
Income (loss) from operations before income taxes
(19,473)
(29,400)
77,905
122,064
Provision (benefit) for income taxes
(6,729)
4,075
21,303
49,811
Consolidated net income (loss)
$ (12,744)
$ (33,475)
$ 56,602
$ 72,253
Less: Net income (loss) attributable to noncontrolling interest in subsidiaries
(10,406)
(12,914)
7,694
24,691
Net income (loss) available to common stockholders
$ (2,338)
$ (20,561)
$ 48,908
$ 47,562
Per share data:
Basic earnings (loss) per share
Net income (loss) available to common stockholders
$ (2,338)
$ (20,561)
$ 48,908
$ 47,562
Basic earnings (loss) per share
$ (0.01)
$ (0.06)
$ 0.14
$ 0.14
Basic weighted-average shares of common stock outstanding
365,259
351,431
361,736
344,332
Fully diluted earnings (loss) per share
Net income (loss) for fully diluted shares
$ (2,338)
$ (20,561)
$ 70,430
$ 62,054
Fully diluted earnings (loss) per share
$ (0.01)
$ (0.06)
$ 0.13
$ 0.13
Fully diluted weighted-average shares of common stock outstanding
365,259
351,431
546,848
459,743
Recon of GAAP to AE
BGC PARTNERS, INC.
RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES TO ADJUSTED EARNINGS AND GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS
(in thousands, except per share data)
(unaudited)
Q4 2020
Q4 2019
FY 2020
FY 2019
GAAP income (loss) from operations before income taxes
$ (19,473)
$ (29,400)
$ 77,905
$ 122,064
Pre-tax adjustments:
Compensation adjustments:
Equity-based compensation and allocations of net income to limited partnership units and FPUs (1)
80,515
69,389
183,545
170,625
Other Compensation charges (2)
3,658
10,897
37,209
14,868
Total Compensation adjustments
84,173
80,286
220,754
185,493
Non-Compensation adjustments:
Amortization of intangibles (3)
6,536
5,964
28,251
29,085
Acquisition related costs
353
(408)
2,880
1,941
Certain rent charges (4)
-
3,603
-
10,292
Impairment charges
4,158
3,168
9,397
4,450
Other (5)
3,892
20,126
18,150
58,959
Total Non-Compensation adjustments
14,939
32,453
58,678
104,727
Other income (losses), net adjustments:
Losses (gains) on divestitures
(403)
14
(394)
(18,421)
Fair value adjustment of investments (6)
(605)
(4,594)
431
(20,324)
Other net (gains) losses (7)
1,463
(5,519)
(3,909)
(4,169)
Total other income (losses), net adjustments
455
(10,099)
(3,872)
(42,914)
Total pre-tax adjustments
99,567
102,640
275,560
247,306
Adjusted Earnings before noncontrolling interest in subsidiaries and taxes
$ 80,094
$ 73,240
$ 353,465
$ 369,370
GAAP net income (loss) available to common stockholders
$ (2,338)
$ (20,561)
$ 48,908
$ 47,562
Allocation of net income (loss) to noncontrolling interest in subsidiaries (8)
(9,534)
(16,880)
8,459
19,278
Total pre-tax adjustments (from above)
99,567
102,640
275,560
247,306
Income tax adjustment to reflect adjusted earnings taxes (9)
(14,101)
(2,834)
(17,507)
8,848
Post-tax adjusted earnings
$ 73,594
$ 62,365
$ 315,420
$ 322,994
Per Share Data
GAAP fully diluted earnings (loss) per share
$ (0.01)
$ (0.06)
$ 0.13
$ 0.13
Less: Allocations of net income (loss) to limited partnership units, FPUs, and noncontrolling interest in subsidiaries, net of tax
(0.01)
-
(0.02)
-
Total pre-tax adjustments (from above)
0.18
0.19
0.50
0.47
Income tax adjustment to reflect adjusted earnings taxes
(0.03)
(0.01)
(0.03)
0.02
Post-tax adjusted earnings per share
0.13
0.12
0.58
0.62
Fully diluted weighted-average shares of common stock outstanding
553,611
532,017
546,848
524,550
Dividends declared per share of common stock
$ 0.01
$ 0.14
$ 0.17
$ 0.56
Dividends declared and paid per share of common stock
$ 0.01
$ 0.14
$ 0.17
$ 0.56
(1) The components of equity-based compensation and allocations of net income to limited partnership units and FPUs are as follows (in thousands):
Q4 2020
Q4 2019
FY 2020
FY 2019
Issuance of common stock and grants of exchangeability
$ 56,016
$ 47,783
$ 84,966
$ 105,961
Allocations of net income
1,854
892
14,006
20,491
LPU amortization
19,994
18,558
74,282
36,708
RSU amortization
2,651
2,156
10,291
7,465
Equity-based compensation and allocations of net income to limited partnership units and FPUs
$ 80,515
$ 69,389
$ 183,545
$ 170,625
(2) GAAP expenses in the fourth quarter of 2020 and 2019 included certain one-off costs associated with the cost reduction program of $0.9 million and $2.0 million, respectively. For the full years 2020 and 2019, these amounts were $22.8 million and $2.0 million, respectively. The fourth quarter of 2020 also included certain loan impairments related to the cost reduction program of $0.7 million. For the full year 2020, these amounts were $10.6 million. GAAP expenses in the fourth quarter of 2020 and 2019 included certain acquisition-related compensation expenses of $1.9 million and $11.5 million, respectively. For the full years 2020 and 2019, these amounts were $3.1 million and $14.9 million, respectively.
(3) Includes non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions.
(4) Includes certain rent charges incurred by the Company during the build-out phase of the Company's new UK based headquarters.
(5) Includes various other GAAP items. Pre-tax Adjusted Earnings in each presented period of 2020 and 2019 exclude the impact of the employee theft of funds, including penalties and interest, and other immaterial revisions that have been made to previously issued financial statements. Adjusted Earnings for the full year of 2019 also exclude the impact of certain GAAP charges recorded in the third quarter of 2019 as part of "Other expenses", primarily related to litigation matters such as the Company's settlement with the Commodity Futures Trading Commission and the New York Attorney General's Office. Each of the above-referenced items are consistent with BGC's normal practice of excluding certain GAAP gains and charges from Adjusted Earnings that management believes do not best reflect the ordinary results of the Company, including with respect to non-recurring or unusual gains or losses, as well as resolutions of litigation.
(6) Includes non-cash gains of $0.6 million and $4.6 million, respectively, related to fair value adjustments of investments held by BGC in the fourth quarters of 2020 and 2019. For the full years 2020 and 2019, these amounts were ($0.4) million and $20.3 million, respectively.
(7) For the fourth quarters of 2020 and 2019, includes non-cash gains of $1.4 million and $1.1 million, respectively, related to BGC's investments accounted for under the equity method. For the full years 2020 and 2019, these amounts were $5.0 million and $4.1 million, respectively. The fourth quarter of 2020 also includes a net loss of $2.8 million related to an investment impairment of $1.2 million as well as various other GAAP items, while the fourth quarter of 2019 also included a net gain of $4.4 million for various other GAAP items. For the full years 2020 and 2019, these amounts were a net gain of $2.8 million and a net gain of $0.1 million, respectively. The full year 2020 also included a net loss of $3.9 million related to investment impairment.
(8) Primarily represents Cantor's pro-rata portion of net income.
(9) BGC's GAAP provision for income taxes is calculated based on an annualized methodology. The Company's GAAP provision for income taxes was $(6.7) million and $4.1 million for the fourth quarters of 2020 and 2019, respectively. For the full years 2020 and 2019, these amounts were $21.3 million and $49.8 million, respectively. The Company includes additional tax-deductible items when calculating the provision for taxes with respect to Adjusted Earnings using an annualized methodology. These include tax-deductions related to equity-based compensation with respect to limited partnership unit exchange, employee loan amortization, and certain net-operating loss carryforwards. The non-GAAP provision for income taxes was adjusted ($14.1) million and ($2.8) million for the fourth quarters of 2020 and 2019, respectively. For the full years 2020 and 2019, these adjustment amounts were ($17.5) million and $8.8 million, respectively. As a result, the provision for income taxes with respect to Adjusted Earnings was $7.4 million and $6.9 million for the fourth quarters of 2020 and 2019, respectively. For the full years 2020 and 2019, these amounts were $38.8 million and $41.0 million, respectively. The calculation of taxes for Adjusted Earnings excluded the effect of the 2017 U.S. Tax Cuts and Jobs Act.
Note: Certain numbers may not add due to rounding.
Note: BGC will update the trend table for FY 2018 as well as full quarterly data for 2018 - 2020 contemporaneous with our 10-K filing
FD WASO GAAP to AE
BGC PARTNERS, INC.
FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT
UNDER GAAP AND FOR ADJUSTED EARNINGS
(in thousands)
(unaudited)
Q4 2020
Q4 2019
FY 2020
FY 2019
Common stock outstanding
365,259
351,431
361,736
344,332
Limited partnership units
-
-
118,459
114,006
Cantor units
-
-
52,363
-
Founding partner units
-
-
12,308
-
RSUs
-
-
737
38
Other
-
-
1,245
1,367
Fully diluted weighted-average share count under GAAP
365,259
351,431
546,848
459,743
Non-GAAP Adjustments:
Limited partnership units
120,667
113,629
-
-
Cantor units
52,363
52,363
-
52,363
Founding partner units
12,292
12,351
-
12,444
RSUs
1,971
1,204
-
-
Other
1,059
1,039
-
-
Fully diluted weighted-average share count for Adjusted Earnings
553,611
532,017
546,848
524,550
Note: BGC's fully diluted weighted-average share count under GAAP may differ from the fully diluted weighted-average share count for Adjusted Earnings in order to avoid anti-dilution in certain periods.
Liquidity Analysis
BGC PARTNERS, INC.
LIQUIDITY ANALYSIS
(in thousands)
(unaudited)
December 31, 2020
December 31, 2019
Cash and cash equivalents
$ 593,646
$ 415,379
Securities owned
58,572
57,525
Marketable securities (1)
349
326
Total Liquidity
$ 652,567
$ 473,230
(1) As of December 31, 2019, $13.9 million of Marketable securities on our balance sheet had been lent in a Securities loaned transaction and, therefore, are not included in this Liquidity Analysis.
EBITDA
BGC PARTNERS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
(in thousands)
(unaudited)
Q4 2020
Q4 2019
FY 2020
FY 2019
GAAP net income (loss) available to common stockholders
$ (2,338)
$ (20,561)
$ 48,908
$ 47,562
Add back:
Provision (benefit) for income taxes
(6,729)
4,075
21,303
49,811
Net income (loss) attributable to noncontrolling interest in subsidiaries (1)
(10,406)
(12,914)
7,694
24,691
Interest expense
21,811
16,354
76,607
60,246
Fixed asset depreciation and intangible asset amortization
21,040
20,478
84,115
79,188
Impairment of long-lived assets
4,158
3,243
9,396
4,638
Equity-based compensation and allocations of net income to limited partnership units and FPUs (2)
80,515
69,389
183,545
170,625
(Gains) losses on equity method investments (3)
(125)
(1,064)
(1,091)
(4,115)
Other non-cash GAAP items (4)
-
2,294
-
5,443
Adjusted EBITDA
$ 107,926
$ 81,294
$ 430,477
$ 438,089
(1) Primarily represents Cantor's pro-rata portion of net income.
(2) Represents BGC employees' pro-rata portion of net income and non-cash and non-dilutive charges relating to equity-based compensation. See Footnote 1 to the table titled "Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to Adjusted Earnings and GAAP Fully Diluted EPS to Post-Tax Adjusted EPS" for more information.
(3) For the fourth quarters of both 2020 and 2019, includes non-cash gains of $1.4 million and $1.1 million, respectively, related to BGC's investments accounted for under the equity method. For the full years 2020 and 2019, these amounts were $5.0 million and $4.1 million, respectively. The fourth quarter of 2020 also includes a net loss of $1.2 million related to an investment impairment. The full year 2020 also included a net loss of $3.9 million related to investment impairment.
(4) Non-cash charges of amortized rents incurred by the Company during the build-out phase of the Company's new UK based headquarters.
Note: BGC will update the trend table for FY 2018 as well as full quarterly data for 2018 - 2020 contemporaneous with our 10-K filing
Fenics Revenues
BGC PARTNERS, INC.
Revenues from Fenics are presented in the table below. "Brokerage revenues" include revenues from Fenics Integrated from the second quarter of 2020 onward.
Desks are categorized as "Fenics Integrated" if they utilize sufficient levels of technology such that significant amounts of their transactions can be or
are executed without broker intervention and have expected pre-tax Adjusted Earnings margins of at least 25 percent.
Inter-company revenues represent the amount that Fenics charges certain desks for the use of its technology and are eliminated upon consolidation.
2020
2019
Q4
Q3
Q2
Q1
FULL YEAR
Q4
Q3
Q2
Q1
FULL YEAR
Fenics Revenues (in thousands)
Rates
31,422
27,151
29,731
25,097
113,401
20,780
22,704
24,333
26,221
94,038
Credit
13,114
14,559
17,690
20,509
65,872
14,488
16,458
18,801
23,250
72,997
F/X
16,998
15,421
9,412
8,894
50,725
7,525
8,035
8,291
7,663
31,514
Energy & Commodities
35
41
74
185
335
116
43
148
102
409
Equity derivatives and cash equities
876
843
1,489
1,380
4,588
1,381
1,220
1,474
1,594
5,669
Brokerage revenues
62,445
58,015
58,396
56,065
234,921
44,290
48,460
53,047
58,830
204,627
Data, software, and post-trade
20,860
21,523
20,139
19,398
81,920
18,151
18,364
18,741
17,910
73,166
Fenics net revenues
83,305
79,538
78,535
75,463
316,841
62,441
66,824
71,788
76,740
277,793
Data, software, and post-trade (inter-company)
17,366
14,068
21,653
25,950
79,037
21,393
20,245
21,161
16,694
79,493
Total Fenics revenues
100,671
93,606
100,188
101,413
395,878
83,834
87,069
92,949
93,434
357,286
Note: Certain other reclassifications may have been made to previously reported amounts to conform to the current presentation and to show results on a consistent basis across periods.
Revenues after reclassification
BGC PARTNERS, INC.
The table below shows historical revenues after the reclassification of certain insurance revenues from other revenues to insurance brokerage revenues.
The reclassification took place within insurance and total revenues were unchanged.
2020
2019
2018
Q4
Q3
Q2
Q1
FULL YEAR
Q4
Q3
Q2
Q1
FULL YEAR
Q4
Q3
Q2
Q1
FULL YEAR
Revenues (in thousands):
Rates
124,495
119,325
133,034
167,240
544,094
129,549
156,765
152,959
155,611
594,884
128,874
121,984
141,400
157,567
549,825
Credit
68,882
68,053
95,780
97,189
329,904
70,438
72,382
78,166
85,727
306,713
67,484
67,111
75,526
82,050
292,171
Foreign exchange
73,213
73,281
74,393
94,366
315,253
80,369
86,492
101,899
101,558
370,318
94,706
96,988
102,307
102,255
396,256
Energy and commodities
71,706
65,871
71,326
83,738
292,641
71,456
73,012
73,887
70,342
288,697
54,048
58,213
56,658
60,202
229,121
Insurance
48,819
43,269
45,783
44,836
182,707
43,277
39,692
41,417
31,404
155,790
15,155
19,211
17,792
16,779
68,937
Equity derivatives and cash equities
63,718
47,410
61,777
81,797
254,702
59,533
56,958
65,078
69,770
251,339
74,890
62,145
70,014
81,216
288,265
Total brokerage revenues
450,833
417,209
482,093
569,166
1,919,301
454,622
485,301
513,406
514,412
1,967,741
435,157
425,652
463,697
500,069
1,824,575
Data, software and post-trade
20,860
21,523
20,139
19,398
81,920
18,151
18,364
18,741
17,910
73,166
18,169
16,547
15,370
15,099
65,185
Fees from related parties, interest and dividend income and other revenues
7,733
16,307
16,856
14,603
55,499
14,383
17,472
19,040
12,429
63,324
13,025
13,443
11,976
9,606
48,050
Total revenues
479,426
455,039
519,088
603,167
2,056,720
487,156
521,137
551,187
544,751
2,104,231
466,351
455,642
491,043
524,774
1,937,810
Insurance GAAP Pre-Tax Income
BGC PARTNERS, INC.
Insurance Business GAAP Pre-tax Income (loss)
(in thousands)
Q4 2020
Q3 2020
Q2 2020
Q1 2020
FY 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
FY 2019
Income (loss) from operations before income taxes
(1,622)
(8,185)
(7,338)
(8,490)
(25,635)
(9,697)
(1,623)
(3,656)
(3,008)
(17,984)
US GAAP P&L (Q419 FY19)
BGC PARTNERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
As Reported
As Revised
As Reported
As Revised
Q4 2019
Adjustments
Q4 2019
FY 2019
Adjustments
FY 2019
Revenues:
Commissions
$ 382,897
$ -
$ 382,897
$ 1,645,818
$ -
$ 1,645,818
Principal transactions
71,725
-
71,725
321,923
-
321,923
Total brokerage revenues
454,622
-
454,622
1,967,741
-
1,967,741
Fees from related parties
8,218
-
8,218
29,442
-
29,442
Data, software and post-trade
18,151
-
18,151
73,166
-
73,166
Interest and dividend income
2,865
-
2,865
18,319
-
18,319
Other revenues
3,300
-
3,300
15,563
-
15,563
Total revenues
487,156
-
487,156
2,104,231
-
2,104,231
Expenses:
Compensation and employee benefits
271,296
(2,600)
268,696
1,127,911
(2,000)
1,125,911
Equity-based compensation and allocations of net income to limited partnership units and FPUs
69,389
-
69,389
165,612
5,013
170,625
Total compensation and employee benefits
340,685
(2,600)
338,085
1,293,523
3,013
1,296,536
Occupancy and equipment
48,987
(1,600)
47,387
184,807
(1,600)
183,207
Fees to related parties
2,858
-
2,858
19,365
-
19,365
Professional and consulting fees
27,553
-
27,553
92,167
-
92,167
Communications
29,715
-
29,715
119,982
-
119,982
Selling and promotion
21,432
-
21,432
81,645
-
81,645
Commissions and floor brokerage
16,377
-
16,377
63,617
-
63,617
Interest expense
15,636
718
16,354
59,077
1,169
60,246
Other expenses
18,886
10,601
29,487
107,423
11,026
118,449
Total non-compensation expenses
181,444
9,719
191,163
728,083
10,595
738,678
Total expenses
522,129
7,119
529,248
2,021,606
13,608
2,035,214
Other income (losses), net:
Gains (losses) on divestitures and sale of investments
(14)
-
(14)
18,421
-
18,421
Gains (losses) on equity method investments
1,064
-
1,064
4,115
-
4,115
Other income (loss)
9,462
2,180
11,642
32,953
(2,442)
30,511
Total other income (losses), net
10,512
2,180
12,692
55,489
(2,442)
53,047
Income (loss) from operations before income taxes
(24,461)
(4,939)
(29,400)
138,114
(16,050)
122,064
Provision for income taxes
2,095
1,980
4,075
53,171
(3,360)
49,811
Consolidated net income (loss)
$ (26,556)
$ (6,919)
$ (33,475)
$ 84,943
$ (12,690)
$ 72,253
Less: Net income (loss) attributable to noncontrolling interest in subsidiaries
(10,313)
(2,601)
(12,914)
29,236
(4,545)
24,691
Net income (loss) available to common stockholders
$ (16,243)
$ (4,318)
$ (20,561)
$ 55,707
$ (8,145)
$ 47,562
US GAAP Balance Sheet (DEC 19)
BGC PARTNERS, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except per share data)
(unaudited)
As Reported
As Revised
December 31, 2019
Adjustments
December 31, 2019
Assets
Cash and cash equivalents
$ 415,379
$ -
$ 415,379
Cash segregated under regulatory requirements
220,735
-
220,735
Securities owned
57,525
-
57,525
Marketable securities
14,228
-
14,228
Receivables from broker-dealers, clearing organizations, customers and related broker-dealers
551,445
-
551,445
Accrued commissions and other receivables, net
778,415
9,869
788,284
Loans, forgivable loans and other receivables from employees and partners, net
315,590
-
315,590
Fixed assets, net
204,841
-
204,841
Investments
40,349
-
40,349
Goodwill
553,745
-
553,745
Other intangible assets, net
303,224
-
303,224
Receivables from related parties
14,273
-
14,273
Other assets
446,371
925
447,296
Total assets
$ 3,916,120
$ 10,794
$ 3,926,914
Liabilities, Redeemable Partnership Interest, and Equity
Short-term borrowings
$ 4,962
$ -
$ 4,962
Accrued compensation
215,085
-
215,085
Securities loaned
13,902
-
13,902
Payables to broker-dealers, clearing organizations, customers and related broker-dealers
416,566
-
416,566
Payables to related parties
72,497
-
72,497
Accounts payable, accrued and other liabilities
1,283,046
29,563
1,312,609
Long-term debt
1,142,687
-
1,142,687
Total liabilities
3,148,745
29,563
3,178,308
Redeemable partnership interest
23,638
-
23,638
Equity
Stockholders' equity:
Class A common stock, par value $0.01 per share; 750,000 shares authorized; 358,440 shares
issued at December 31, 2019; and 307,915 shares outstanding at December 31, 2019
3,584
-
3,584
Class B common stock, par value $0.01 per share; 150,000 shares authorized; 45,884 shares issued and
outstanding at December 31, 2019, convertible into Class A common stock
459
-
459
Additional paid-in capital
2,271,947
156
2,272,103
Treasury stock, at cost: 50,525 shares of Class A common stock at December 31, 2019
(315,308)
-
(315,308)
Retained deficit
(1,241,754)
(11,335)
(1,253,089)
Accumulated other comprehensive income (loss)
(33,102)
-
(33,102)
Total stockholders' equity
685,826
(11,179)
674,647
Noncontrolling interest in subsidiaries
57,911
(7,590)
50,321
Total equity
743,737
(18,769)
724,968
Total liabilities, redeemable partnership interest and equity
$ 3,916,120
$ 10,794
$ 3,926,914
Rec GAAP to AE (Q419 & FY19
BGC PARTNERS, INC.
RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES TO ADJUSTED EARNINGS AND GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS
(in thousands, except per share data)
As Reported
As Revised
As Reported
As Revised
Q4 2019
Adjustments
Q4 2019
FY 2019
Adjustments
FY 2019
GAAP income (loss) before income taxes
$ (24,461)
$ (4,939)
$ (29,400)
$ 138,114
$ (16,050)
$ 122,064
Pre-tax adjustments:
Compensation adjustments:
Equity-based compensation and allocations of net income to limited partnership units and FPUs
$ 69,389
$ -
$ 69,389
$ 165,612
$ 5,013
$ 170,625
Other Compensation charges
13,497
(2,600)
10,897
16,868
(2,000)
14,868
Total Compensation adjustments
82,886
(2,600)
80,286
182,480
3,013
185,493
Non-Compensation adjustments:
Amortization of intangibles
5,964
-
5,964
29,085
-
29,085
Acquisition related costs
(408)
-
(408)
1,941
-
1,941
Certain rent charges
3,603
-
3,603
10,292
-
10,292
Impairment charges
3,168
-
3,168
4,450
-
4,450
Other
10,407
9,719
20,126
48,364
10,595
58,959
Total Non-Compensation adjustments
22,734
9,719
32,453
94,132
10,595
104,727
Other income (losses), net adjustments:
Losses (gains) on divestitures
$ 14
$ -
$ 14
$ (18,421)
$ -
$ (18,421)
Fair value adjustment of investments
(2,414)
(2,180)
(4,594)
(22,766)
2,442
(20,324)
Other net (gains) losses
(5,519)
-
(5,519)
(4,169)
-
(4,169)
Total other income (losses), net adjustments
(7,919)
(2,180)
(10,099)
(45,356)
2,442
(42,914)
Total pre-tax adjustments
97,701
4,939
102,640
231,256
16,050
247,306
Pre-tax adjusted earnings
$ 73,240
$ -
$ 73,240
$ 369,370
$ -
$ 369,370
GAAP net income (loss) available to common stockholders
(16,243)
(4,318)
(20,561)
55,707
(8,145)
47,562
Allocation of net income (loss) to noncontrolling interest in subsidiaries
(14,279)
(2,601)
(16,880)
23,823
(4,545)
19,278
Total pre-tax adjustments (from above)
97,701
4,939
102,640
231,256
16,050
247,306
Income tax adjustment to reflect adjusted earnings taxes
(5,775)
2,941
(2,834)
11,247
(2,399)
8,848
Post-tax adjusted earnings
$ 61,404
$ 961
$ 62,365
$ 322,033
$ 961
$ 322,994
Per Share Data
GAAP fully diluted earnings (loss) per share
$ (0.05)
$ (0.01)
$ (0.06)
$ 0.16
$ (0.03)
$ 0.13
Less: Allocations of net income (loss) to limited partnership units, FPUs, and noncontrolling interest in subsidiaries, net of tax
-
-
-
(0.01)
0.01
-
Total pre-tax adjustments (from above)
0.18
0.01
0.19
0.44
0.03
0.47
Income tax adjustment to reflect adjusted earnings taxes
(0.01)
0.00
(0.01)
0.02
(0.00)
0.02
Post-tax adjusted earnings per share
0.12
0.00
0.12
0.61
0.01
0.62
Fully diluted weighted-average shares of common stock outstanding
532,017
532,017
524,550
524,550
EBITDA (Q419 & FY19)
BGC PARTNERS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
(in thousands)
(unaudited)
As Reported
As Revised
As Reported
As Revised
Q4 2019
Adjustments
Q4 2019
FY 2019
Adjustments
FY 2019
GAAP net income (loss) available to common stockholders
$ (16,243)
$ (4,318)
$ (20,561)
$ 55,707
$ (8,145)
$ 47,562
Add back:
Provision (benefit) for income taxes
2,095
1,980
4,075
53,171
(3,360)
49,811
Net income (loss) attributable to noncontrolling interest in subsidiaries (1)
(10,313)
(2,601)
(12,914)
29,236
(4,545)
24,691
Interest expense
15,636
718
16,354
59,077
1,169
60,246
Fixed asset depreciation and intangible asset amortization
20,478
-
20,478
79,188
-
79,188
Impairment of long-lived assets
3,243
-
3,243
4,638
-
4,638
Equity-based compensation and allocations of net income to limited partnership units and FPUs (2)
69,389
-
69,389
165,612
5,013
170,625
(Gains) losses on equity method investments (3)
(1,064)
-
(1,064)
(4,115)
-
(4,115)
Other non-cash GAAP items (4)
2,294
-
2,294
5,443
-
5,443
Adjusted EBITDA
$ 85,515
$ (4,221)
$ 81,294
$ 447,957
$ (9,868)
$ 438,089
(1) Primarily represents Cantor's pro-rata portion of net income.
(2) Represents BGC employees' pro-rata portion of net income and non-cash and non-dilutive charges relating to equity-based compensation. See Footnote 1 to the table titled "Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to Adjusted Earnings and GAAP Fully Diluted EPS to Post-Tax Adjusted EPS" for more information.
(3) For the fourth quarter of 2019, includes non-cash gains of $1.1 million, related to BGC's investments accounted for under the equity method. For the full year 2019, this amount was $4.1 million.
(4) Non-cash charges of amortized rents incurred by the Company during the build-out phase of the Company's new UK based headquarters.
Note: Beginning in the first quarter of 2019, when calculating Adjusted EBITDA, BGC will add all charges relating to equity-based compensation and will no
longer exclude GAAP charges with respect to employee loan amortization and reserves on employee loans.
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BGC Partners Inc. published this content on 24 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2021 13:04:01 UTC.
BGC Group, Inc. is a global brokerage and financial technology company servicing the financial markets. The Company, through its affiliates, specializes in the brokerage of a range of products, including fixed income, foreign exchange, equities, energy and commodities, shipping, and futures. It also provides a variety of services, including trade execution, brokerage, clearing, trade compression, post-trade, information, and other back-office services to a range of financial and non-financial institutions. Through its brands, including Fenics, FMX, FMX Futures Exchange, Fenics Markets Xchange, Fenics Digital, Fenics UST, Fenics FX, Fenics Repo, Fenics Direct, Fenics MID, Fenics Market Data, Fenics GO, Fenics PortfolioMatch, BGC, BGC Trader, KACE and Lucera, it offers financial technology solutions, market data, and analytics related to numerous financial instruments and markets. It serves banks, broker-dealers, investment banks, trading firms, hedge funds, governments and corporations.