Knight Trading Group Announces GAAP Loss of $0.01 per Diluted Share
for Third Quarter 2004 - GAAP loss of $0.01 per diluted share in
third quarter 2004, including earnings from discontinued operations
of $0.05 per diluted share from Derivative Markets JERSEY CITY,
N.J., Oct. 20 /PRNewswire-FirstCall/ -- Knight Trading Group, Inc.
(NASDAQ:NITE) today reported a GAAP loss of $1.1 million for the
third quarter of 2004, or a loss of $0.01 per diluted share. For
the third quarter of 2003, the company reported GAAP earnings of
$23.6 million, or $0.20 per diluted share. As previously announced
on August 9, 2004, the company entered into a definitive agreement
to sell its Derivative Markets business to Citigroup for
approximately $225 million in cash. In accordance with generally
accepted accounting principles, the results of this business
segment have been included within discontinued operations for all
periods presented within both the income statements and balance
sheets. For the third quarter of 2004, the company had a net
operating loss from continuing operations of $6.0 million, or a
loss of $0.05 per diluted share. In addition, the company had net
income from discontinued operations of $5.3 million, or $0.05 per
diluted share, representing the results of the Derivative Markets
business segment. For the third quarter of 2003, the company had
net operating income from continuing operations of $19.8 million,
or $0.17 per diluted share. In addition, the company had net income
from discontinued operations of $3.8 million, or $0.03 per diluted
share, representing the results of the Derivative Markets business
segment. Revenues from continuing operations for the third quarter
of 2004 were $99.4 million, compared to $143.0 million for the
third quarter of 2003. "Like other firms engaged in capital markets
activities, we endured the lackluster market environment that
lasted from the middle of May through September. For the third
quarter, Knight had nominal operating losses of approximately 1
penny in each of our domestic equity markets and asset management
businesses. Our derivatives business returned a solid operating
profit, reflecting healthy volumes in the options market," said
Thomas M. Joyce, Chief Executive Officer and President of Knight
Trading Group. "Throughout this dreary market, we continued to make
long-term investments in our infrastructure that we believe will
better position us to reach our goal of being profitable in every
market environment. We continued to invest in our London operation,
resulting in a loss of 3 cents in the quarter. We expect our
European efforts to be profitable in 2005. Listed market-making,
which has the lowest revenue capture of all equity types, had a
negative impact on domestic equities revenue capture. We also spent
approximately $30 million in cash to repurchase 3.3 million shares
of our company's stock." Q3 2004 Q3 2003 Revenues ($) 99,359,304
143,026,883 Net (loss) income from continuing operations ($)
(6,470,139) 19,800,841 Income from discontinued operations, net of
tax ($) 5,343,961 3,801,711 Net (loss) income ($) (1,126,178)
23,602,552 Net operating (loss) income from continuing operations
per diluted share ($) (0.05) 0.17 Diluted EPS from continuing
operations ($) (0.06) 0.17 Diluted EPS from discontinued operations
($) 0.05 0.03 Diluted EPS ($) (0.01) 0.20 U.S. equity dollar value
traded (in $ millions) 333,103 421,146 U.S. equity trades executed
(in thousands) 41,572 47,780 Average daily U.S. equity trades (in
thousands) 650 747 Nasdaq and Listed equity shares traded (in
millions) 22,546 36,481 OTC Bulletin Board and Pink Sheet shares
traded (in millions) 294,237 82,721 U.S. options contracts traded
(in thousands) 21,953 17,117 YTD 2004 YTD 2003 Revenues ($)
425,432,705 359,468,876 Net (loss) income from continuing
operations ($) (32,106,133) 25,224,863 Income from discontinued
operations, net of tax ($) 14,948,350 3,333,333 Net (loss) income
($) (17,157,783) 28,558,196 Net operating income from continuing
operations per diluted share ($) 0.23 0.30 Diluted EPS from
continuing operations ($) (0.28) 0.22 Diluted EPS from discontinued
operations ($) 0.13 0.03 Diluted EPS ($) (0.15) 0.25 U.S. equity
dollar value traded (in $ millions) 1,254,516 1,081,286 U.S. equity
trades executed (in thousands) 150,222 129,115 Average daily U.S.
equity trades (in thousands) 799 687 Nasdaq and Listed equity
shares traded (in millions) 92,708 101,157 OTC Bulletin Board and
Pink Sheet shares traded (in millions) 990,647 169,038 U.S. options
contracts traded (in thousands) 64,245 46,009 "We continue to play
an important role in the market by providing an unbundled,
competitive execution offering across the breadth of the equity
market. We are encouraged by the 30-percent increase in our
year-over-year equity markets operating income to $21 million for
the first nine months of 2004," Mr. Joyce said. "Our future success
is directly tied to the quality of our offerings and our ability to
meet and satisfy our clients' needs. With this in mind, we continue
to manage our company for the long term to support the ongoing
focus on our Equity Markets and Asset Management businesses."
Continuing Operations Equity Markets During the third quarter of
2004, the Equity Markets business segment, which consists of both
domestic and international equity market-making and institutional
sales operations, generated total revenues of $94.1 million
compared to $124.6 million during the third quarter of 2003. In the
third quarter, the Equity Markets business segment reported an
operating loss of approximately $4.3 million net of taxes, which
represents operating losses of approximately $1.3 million from
domestic equity markets and $3.0 million from our London
operations. The equity markets results include a benefit of
approximately $1.8 million net of taxes, related to an adjustment
to legal reserves. Asset Management During the third quarter of
2004, the Asset Management business segment, Deephaven, generated
$6.8 million in asset management fees, compared to $13.0 million in
the same period a year ago. The decrease in asset management fees
reflects the reduction in incentive fees due to lower returns,
partially offset by higher management fees on greater assets under
management. Asset Management had approximately $3.5 billion under
management at September 30, 2004 compared to $1.4 billion at
September 30, 2003. During the third quarter of 2004, there was a
net inflow of approximately $350 million in assets under
management. The company lost $1.6 million during the third quarter
of 2004 on its investment in the Deephaven funds, down from
earnings of $5.2 million in the third quarter of 2003. The company
had invested $206.3 million in the Deephaven funds at the end of
the third quarter of 2004. Discontinued Operations Derivative
Markets For the third quarter of 2004, the results of the
Derivative Markets business segment were presented net of taxes
within discontinued operations. The business segment principally
consists of options market-making and option specialist operations.
This segment generated total revenues of $47.2 million in the third
quarter 2004 compared to $39.5 million during the third quarter of
2003. In the third quarter, the company had net income from
discontinued operations of $5.3 million, or $0.05 per diluted share
from its Derivative Markets business segment. As of September 30,
2004, the Derivative Markets business segment had 236 employees.
Excluding employees in Derivative Markets, Knight Trading Group had
675 employees at the end of the third quarter of 2004. "During the
third quarter, we entered into a definitive agreement to sell our
derivative markets business to Citigroup," Mr. Joyce said. "We
concluded that Knight's strongest future growth opportunities
remain in our Equity Markets and Asset Management businesses, and
that Derivative Markets has a better opportunity to reach its full
potential as part of a larger company. We expect the deal to close
in the fourth quarter." Liquidity and Stock Repurchase Plan The
company had $753.5 million in stockholders' equity as of September
30, 2004, equivalent to a book value of $6.61 per share. As of
September 30, 2004, the company had $210.0 million in cash and cash
equivalents within its continuing operations and a $206.3 million
investment in funds managed by Deephaven, its Asset Management
business segment. At its August 8, 2004 meeting, the Board of
Directors authorized a $140 million increase in the size of the
company's stock repurchase program to $250 million from $110
million. During the third quarter of 2004, the company repurchased
3.3 million shares for approximately $30 million. To date, the
company has repurchased 18.9 million shares for $120.7 million
under the program. The company cautions that there are no
assurances that any further repurchases may actually occur. As of
September 30, 2004, the company had a $78 million receivable from
its Derivative Markets business segment, which will be repaid on or
before the closing of its sale to Citigroup. Copies of this
earnings release and other information on the company can be
obtained via the Internet at the company's web site. The company
will conduct its third quarter earnings conference call for
analysts, investors and the media at 9:00 a.m. Eastern Daylight
Time (EDT) today, October 20, 2004. The conference call will be
webcast live at 9:00 a.m. (EDT) for all investors and interested
parties on Knight's web site. In addition, the company will release
its monthly volume statistics for September 2004 before the start
of trading today on Knight's web site. On Monday, November 8, 2004,
Knight will provide a live web cast of its semi-annual meeting for
Analysts and Institutional Investors. All interested parties can
access this event through Knight's web site. * * * Knight is
focused on meeting the needs of institutional and broker-dealer
clients by providing comprehensive trade execution services in
equities. A leading execution specialist, Knight offers capital
commitment and access to a deep pool of liquidity across the depth
and breadth of the equity market. Knight also operates an asset
management business for institutions and high net worth
individuals. To be a valued partner, Knight strives to provide
superior client service and will continue to tailor its offering to
meet the needs of its clients. More information about Knight can be
obtained at http://www.knighttradinggroup.com/. Presentation of
Information in this Press Release In an effort to provide investors
with additional information regarding the Company's results as
determined by generally accepted accounting principles (GAAP), the
Company also discloses certain non-GAAP information which
management believes provides useful information to investors.
Within this press release, the Company has disclosed its net income
(loss) amounts for certain reporting periods before charges,
writedowns and discontinued operations to assist the reader in
understanding the impact of these charges, writedowns and
discontinued operations on the Company's financial results, thereby
facilitating more useful period-to-period comparisons of the
Company's businesses. Certain statements contained herein
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current expectations,
estimates and projections about the Company's industry,
management's beliefs and certain assumptions made by management.
Readers are cautioned that any such forward-looking statements are
not guarantees of future performance and are subject to certain
risks, uncertainties and assumptions that are difficult to predict.
Since such statements involve risks and uncertainties, the actual
results and performance of the Company may turn out to be
materially different from the results expressed or implied by such
forward-looking statements. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking
statements. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made herein; however, readers
should carefully review reports or documents the Company files from
time to time with the Securities and Exchange Commission. KNIGHT
TRADING GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS(*)
(Unaudited) For the three months For the nine months ended ended
September 30, September 30, 2004 2003 2004 2003 REVENUES Net
trading revenue $33,448,976 $79,741,797 $183,129,453 $192,332,716
Commissions and fees 58,598,744 41,788,492 203,804,800 108,320,141
Asset management fees 6,804,928 12,994,069 28,843,815 36,985,896
Interest and dividends, net 1,198,974 926,031 2,828,891 2,544,278
Investment income and other (692,318) 7,576,494 6,825,746
19,285,845 Total revenues 99,359,304 143,026,883 425,432,705
359,468,876 EXPENSES Employee compensation and benefits 50,108,698
58,283,201 168,463,224 150,497,162 Execution and clearance fees
19,584,906 19,354,119 73,747,290 54,897,372 Payments for order flow
4,555,323 9,453,223 27,416,779 22,003,659 Soft dollar and
commission recapture expense 14,309,230 1,463,474 44,321,999
3,738,795 Communications and data processing 7,867,254 6,408,166
21,583,633 21,336,416 Depreciation and amortization 3,338,134
4,378,026 10,720,438 15,020,507 Occupancy and equipment rentals
3,981,784 4,100,286 12,817,436 12,723,267 Professional fees
4,257,549 1,656,940 11,561,434 9,012,827 Business development
2,053,578 1,341,802 5,921,960 4,969,847 Writedown of assets and
lease loss accrual 874,275 - 3,498,261 16,712,880 Regulatory
charges and related matters - - 79,200,000 - Other (820,487)
3,165,241 4,118,364 7,032,687 Total expenses 110,110,244
109,604,478 463,370,818 317,945,419 (Loss) income from continuing
operations before income taxes (10,750,940) 33,422,405 (37,938,113)
41,523,457 Income tax (benefit) expense (4,280,801) 13,621,564
(5,831,980) 16,298,594 Net (loss) income from continuing operations
(6,470,139) 19,800,841 (32,106,133) 25,224,863 Income from
discontinued operations, net of tax 5,343,961 3,801,711 14,948,350
3,333,333 Net (loss) income $(1,126,178) $23,602,552 $(17,157,783)
$28,558,196 Basic earnings per share from continuing operations
$(0.06) $0.18 $(0.28) $0.23 Diluted earnings per share from
continuing operations $(0.06) $0.17 $(0.28) $0.22 Basic and diluted
earnings per share from discontinued operations $0.05 $0.03 $0.13
$0.03 Basic earnings per share $(0.01) $0.21 $(0.15) $0.26 Diluted
earnings per share $(0.01) $0.20 $(0.15) $0.25 Shares used in
computation of basic earnings per share 112,012,941 111,086,526
112,816,260 111,903,396 Shares used in computation of diluted
earnings per share 112,012,941 117,698,712 112,816,260 115,984,945
(*) Certain prior period amounts have been reclassified to conform
to the current period presentation. KNIGHT TRADING GROUP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION September 30, 2004
December 31, 2003 ASSETS Cash and cash equivalents $209,990,127
$249,997,693 Securities owned, held at clearing brokers, at market
value 248,581,687 201,238,570 Receivable from brokers and dealers
463,519,109 205,019,632 Receivable from discontinued operations
78,070,984 43,529,819 Investment in Deephaven sponsored funds
206,331,983 197,605,068 Fixed assets and leasehold improvements at
cost, less accumulated depreciation and amortization 45,985,914
28,741,113 Strategic investments 26,017,902 20,496,876 Goodwill
19,182,248 16,665,074 Intangible assets, less accumulated
amortization 11,701,944 11,952,000 Assets within discontinued
operations 3,084,952,066 2,938,222,972 Other assets 93,757,419
87,879,509 Total assets $4,488,091,383 $4,001,348,326 LIABILITIES
& STOCKHOLDERS' EQUITY Liabilities Securities sold, not yet
purchased, at market value $228,722,102 $173,118,793 Payable to
brokers and dealers 293,666,960 26,813,012 Accrued compensation
expense 82,240,779 94,224,406 Liabilities within discontinued
operations 2,986,699,996 2,851,696,563 Accounts payable, accrued
expenses and other liabilities 143,305,605 65,363,774 Total
liabilities 3,734,635,442 3,211,216,548 Stockholders' equity Class
A common shares 1,317,242 1,281,871 Additional paid-in-capital
407,067,359 370,897,405 Retained earnings 481,898,971 499,056,756
Treasury stock, at cost (115,729,941) (68,795,258) Unamortized
stock-based compensation (21,097,690) (12,308,996) Total
stockholders' equity 753,455,941 790,131,778 Total liabilities and
stockholders' equity $4,488,091,383 $4,001,348,326 KNIGHT TRADING
GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP DISCLOSURES(*)
Amounts in millions, except per share data For the three months
ended September 30, 2004 Equity Asset Discontinued Total Markets
Management Operations GAAP NET(LOSS) INCOME $(4.8) $(1.7) $5.3
$(1.1) Adjustments, net of tax: Writedown of assets and lease loss
accrual 0.5 - - 0.5 (Income) from discontinued operations - - (5.3)
(5.3) Net impact of adjustments 0.5 - (5.3) (4.8) NET OPERATING
LOSS FROM CONTINUING OPERATIONS $(4.3) $(1.7) $- $(6.0) GAAP NET
(LOSS) INCOME PER DILUTED SHARE $(0.04) $(0.01) $0.05 $(0.01)
Adjustments, net of tax: Writedown of assets and lease loss accrual
0.00 - - 0.00 (Income) from discontinued operations - - (0.05)
(0.05) Net impact of adjustments 0.00 - (0.05) (0.04) NET OPERATING
LOSS FROM CONTINUING OPERATIONS PER DILUTED SHARE $(0.04) $(0.01)
$- $(0.05) For the three months ended September 30, 2003 Equity
Asset Discontinued Total Markets Management Operations GAAP NET
INCOME $14.0 $5.8 $3.8 $23.6 Adjustments, net of tax: (Income) from
discontinued operations - - (3.8) (3.8) Net impact of adjustments -
- (3.8) (3.8) NET OPERATING INCOME FROM CONTINUING OPERATIONS $14.0
$5.8 $- $19.8 GAAP NET INCOME PER DILUTED SHARE $0.12 $0.05 $0.03
$0.20 Adjustments, net of tax: (Income) from discontinued
operations - - (0.03) (0.03) Net impact of adjustments - - (0.03)
(0.03) NET OPERATING INCOME FROM CONTINUING OPERATIONS PER DILUTED
SHARE $0.12 $0.05 $- $0.17 (*) Totals may not add due to rounding.
KNIGHT TRADING GROUP, INC. RECONCILIATION OF GAAP TO NON-GAAP
DISCLOSURES (*) Amounts in millions, except per share data For the
nine months ended September 30, 2004 Equity Asset Discontinued
Total Markets Management Operations GAAP NET(LOSS) INCOME $(37.5)
$5.4 $14.9 $(17.2) Adjustments, net of tax: Writedown of assets and
lease loss accrual 2.0 - - 2.0 Regulatory charges and related
matters 56.4 - - 56.4 (Income) from discontinued operations - -
(14.9) (14.9) Net impact of adjustments 58.5 - (14.9) 43.5 NET
OPERATING INCOME FROM CONTINUING OPERATIONS $21.0 $5.4 $- $26.4
GAAP NET (LOSS) INCOME PER DILUTED SHARE $(0.33) $0.05 $0.13
$(0.15) Adjustments, net of tax: Writedown of assets and lease loss
accrual 0.02 - - 0.02 Regulatory charges and related matters 0.50 -
- 0.50 (Income) from discontinued operations - - (0.13) (0.13) Net
impact of adjustments 0.52 - (0.13) 0.39 NET OPERATING INCOME FROM
CONTINUING OPERATIONS PER DILUTED SHARE $0.19 $0.05 $- $0.23 For
the nine months ended September 30, 2003 Equity Asset Discontinued
Total Markets Management Operations GAAP NET INCOME $6.3 $19.0 $3.3
$28.6 Adjustments, net of tax: Writedown of assets and lease loss
accrual 9.9 - - 9.9 (Income) from discontinued operations - - (3.3)
(3.3) Net impact of adjustments 9.9 - (3.3) 6.5 NET OPERATING
INCOME FROM CONTINUING OPERATIONS $16.1 $19.0 $- $35.1 GAAP NET
INCOME PER DILUTED SHARE $0.05 $0.16 $0.03 $0.25 Adjustments, net
of tax: Writedown of assets and lease loss accrual 0.08 - - 0.08
(Income) from discontinued operations - - (0.03) (0.03) Net impact
of adjustments 0.08 - (0.03) 0.06 NET OPERATING INCOME FROM
CONTINUING OPERATIONS PER DILUTED SHARE $0.14 $0.16 $- $0.30 (*)
Totals may not add due to rounding. DATASOURCE: Knight Trading
Group CONTACT: Margaret Wyrwas, Senior Managing Director, Corporate
Communications & Investor Relations, +1-201-557-6954, or ; or
Greta Morley Assistant Vice President, Marketing Communications
& Public Relations +1-201-557-6948, or , or Kara Fitzsimmons,
Vice President, Corporate Communications, +1-201-356-1523 or , or
Molly McDowell, Analyst, Corporate Communications & Investor
Relations, +1-201-356-1723 or , all for Knight Trading Group Web
site: http://www.knighttradinggroup.com/
Copyright
Nightstar Therapeutics Plc ADS (NASDAQ:NITE)
Gráfico Histórico do Ativo
De Set 2024 até Out 2024
Nightstar Therapeutics Plc ADS (NASDAQ:NITE)
Gráfico Histórico do Ativo
De Out 2023 até Out 2024