GFI Group Inc.

CIK:0001292426|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Agency commissions	$ 101,565	$ 112,303	$ 323,796	$ 343,410
Principal transactions	34,279	41,453	122,357	139,090
Total brokerage revenues	135,844	153,756	446,153	482,500
Clearing services revenues		26,373	21,338	89,139
Interest income from clearing services		579	297	1,679
Equity in net earnings of unconsolidated businesses	829	639	3,072	4,686
Software, analytics and market data	26,676	26,095	77,603	77,455
Other income, net	5,911	2,859	25,942	13,686
Total revenues	169,260	210,301	574,405	669,145
Interest and transaction-based expenses
Transaction fees on clearing services		24,786	20,495	84,362
Transaction fees on brokerage services	4,722	4,330	15,487	14,488
Interest expense from clearing services		206	128	560
Total interest and transaction-based expenses	4,722	29,322	36,110	99,410
Revenues, net of interest and transaction-based expenses	164,538	180,979	538,295	569,735
Expenses
Compensation and employee benefits	106,551	122,720	373,279	390,420
Communications and market data	10,445	13,335	33,172	40,202
Travel and promotion	6,156	7,184	18,562	22,924
Rent and occupancy	6,545	7,835	20,284	23,811
Depreciation and amortization	7,200	8,480	21,329	25,873
Professional fees	3,246	13,650	25,131	29,928
Interest on borrowings	7,066	8,466	22,925	24,393
Impairment of goodwill				121,619
Merger termination fees			24,728
Other expenses	5,942	6,825	18,752	21,526
Total other expenses	153,151	188,495	558,162	700,696
Income (loss) before provision for (benefit from) income taxes	11,387	(7,516)	(19,867)	(130,961)
Provision for (benefit from) income taxes	381	(56)	(9,933)	(30,239)
Net income (loss) before attribution to non-controlling stockholders	11,006	(7,460)	(9,934)	(100,722)
Less: Net (loss) income attributable to non-controlling interests	(183)	231	579	762
GFI's net income (loss)	$ 11,189	$ (7,691)	$ (10,513)	$ (101,484)
Earnings (loss) per share available to common stockholders
Basic (in dollars per share)	$ 0.07	$ (0.06)	$ (0.07)	$ (0.82)
Diluted (in dollars per share)	$ 0.07	$ (0.06)	$ (0.07)	$ (0.82)
Weighted average shares outstanding
Basic (in shares)	170,814,812	125,407,225	152,068,906	124,237,643
Diluted (in shares)	170,814,812	125,407,225	152,068,906	124,237,643
Dividends declared per share of common stock (in dollars per share)	$ 0	$ 0	$ 0	$ 0.10

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) before attribution to non-controlling stockholders	$ (9,934)	$ (100,722)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	21,329	25,873
Deferred Compensation	32,835	19,024
Tax (benefit) expense related to share-based compensation	(8)	821
Amortization of prepaid bonuses and forgivable loans	14,334	17,893
Benefit from deferred taxes	(21,274)	(44,135)
Gains on foreign exchange derivative contracts, net	(3,108)	(3,389)
Earnings (losses) from equity method investments, net	(1,121)	473
Amortization of deferred financing fees	1,554	1,376
Mark-to-market of contingent consideration liabilities	115	(2,832)
Impairment charges		122,230
Other non-cash charges, net	(497)	560
(Increase) decrease in operating assets:
Cash and securities segregated under federal and other regulations	9,491	7,956
Accounts receivable	1,689	(17,609)
Receivables from brokers, dealers and clearing organizations	92,300	(428,142)
Receivables from related parties	(3,349)
Other assets	(18,797)	(9,302)
Increase (decrease) in operating liabilities:
Accrued compensation	(48,375)	(10,618)
Accounts payable and accrued expenses	11,847	10,853
Payables to brokers, dealers and clearing organizations	(108,073)	459,893
Payables to clearing services customers	10,244	(42,565)
Other liabilities	7,953	3,054
Cash (used in) provided by operating activities	(10,845)	10,692
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash delivered in disposition of consolidated subsidiaries, net of cash received	(5,633)
Proceeds from disposition of interests in unconsolidated businesses		8,140
Return of capital from unconsolidated businesses		413
Proceeds from disposition of available-for-sale securities		5,882
Purchases of interests in unconsolidated businesses	(600)
Purchases of property, equipment and leasehold improvements	(3,659)	(5,842)
Cash used for loans to related parties	(134,250)
Capitalization of internally developed software	(5,267)	(6,232)
Proceeds on foreign exchange derivative contracts	4,980	2,605
Payments on foreign exchange derivative contracts	(1,669)	(550)
Other, net	(12)	58
Cash (used in) provided by investing activities	(146,110)	4,474
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term borrowings	115,000	160,000
Repayment of short-term borrowings	(50,000)	(160,000)
Proceeds from loans from related parties	10,000
Repayment of loans from related parties	(6,500)
Cash dividends paid to common stockholders		(12,482)
Shares withheld for taxes on vested restricted stock units	(572)	(9,114)
Tax benefit (expense) related to share-based compensation	8	(821)
Other, net	(503)	25
Cash provided by (used in) financing activities	67,433	(22,392)
Effects of exchange rate changes on cash and cash equivalents	(3,154)	(1,530)
Decrease in Cash and cash equivalents classified as Held for sale	38,130
DECREASE IN CASH AND CASH EQUIVALENTS	(54,546)	(8,756)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	183,432	174,606
CASH AND CASH EQUIVALENTS, END OF PERIOD	128,886	165,850
SUPPLEMENTAL DISCLOSURE:
Cash paid for interest	28,219	29,663
Cash paid for income taxes	10,259	11,667
Cash received from income tax refunds	542	899
Non-Cash Investing and Financing Activities:
Purchase of property and equipment through seller financing arrangement	570	$ 1,229
Issuance of common stock for Note receivable	$ 250,000

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 128,886	$ 183,432
Cash and securities segregated under federal and other regulations	145	163
Accounts receivable, net of allowance for doubtful accounts of $1,329 and $1,900 at September 30, 2015 and December 31, 2014, respectively	79,440	82,748
Receivables from brokers, dealers and clearing organizations	390,214	507,601
Property, equipment and leasehold improvements, net of depreciation and amortization of $209,719 and $196,237 at September 30, 2015 and December 31, 2014, respectively	50,806	55,897
Goodwill	134,434	134,542
Intangible assets, net	25,688	30,905
Receivables from related parties	134,047	232
Other assets	193,096	172,721
Assets held for sale		193,701
TOTAL ASSETS	1,136,756	1,361,942
LIABILITIES
Accrued compensation	93,324	88,590
Accounts payable and accrued expenses	38,350	31,791
Payables to brokers, dealers and clearing organizations	355,170	463,243
Short-term borrowings	75,000	10,000
Long-term debt	240,000	240,000
Other liabilities	76,962	70,270
Liabilities held for sale		161,914
Total Liabilities	$ 878,806	$ 1,065,808
Commitments and contingencies (Note 12)
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; 5,000,000 shares authorized, none outstanding at September 30, 2015 and December 31, 2014
Common stock, $0.01 par value; 400,000,000 shares authorized; 187,509,724 and 144,290,612 shares issued at September 30, 2015 and December 31, 2014, respectively, net of $430 for issuance of common stock for Note receivable	$ 1,444	$ 1,442
Additional paid in capital, net of $249,570 for issuance of common stock for Note receivable	379,069	399,774
Retained deficit	(41,563)	(31,050)
Treasury stock, 16,694,912 and 16,724,843 shares of common stock at cost, at September 30, 2015 and December 31, 2014, respectively	(73,367)	(73,445)
Accumulated other comprehensive loss	(9,749)	(2,493)
Total Stockholders' Equity	255,834	294,228
Non-controlling interests	2,116	1,906
Total Equity	257,950	296,134
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,136,756	$ 1,361,942