GFI Group Inc. Announces Record First Quarter 2008 Results; Declares Quarterly Cash Dividend
biz.yahoo.com
Monday April 28, 4:15 pm ET
- GAAP Revenues: Up 31% to $314.6 Million
- GAAP Net Income: Up 46% to $36.0 Million or $0.30 per Diluted Share
- Non-GAAP Net Income: Up 51% to $38.1 Million or $0.32 per Diluted Share
- Board of Directors Declares Quarterly Cash Dividend of $0.03 per Share
NEW YORK, April 28 /PRNewswire-FirstCall/ -- GFI Group Inc. (Nasdaq: GFIG - News), an inter-dealer brokerage, market data, trading platform and analytical software provider for global cash and derivative markets, today announced financial results for the first quarter ended March 31, 2008.
Highlights
* Total revenues for the first quarter of 2008 increased 31% to a record
of $314.6 million. In the first quarter of 2007, total revenues were
$240.3 million.
* Brokerage revenues for the first quarter of 2008 rose 28% over the
first quarter of 2007, with strong growth in all product categories --
credit, financial, equity and commodity, which increased 31%, 16%, 40%
and 22%, respectively. Brokerage revenues year over year for the first
quarter increased in all geographic regions, with growth particularly
strong in Europe and Asia-Pacific, which rose 39% and 60%,
respectively, with an increase in North America of 11%.
* There were 1,048 brokerage personnel at the end of the first quarter of
2008, representing a net increase of 58 brokerage personnel from the
first quarter of 2007.
* Compensation and employee benefits expense was 61.4% of total revenues
in the first quarter of 2008 compared with 63.0% in the first quarter
of 2007.
* Non-compensation expense as a percentage of revenues was 20.3% for the
first quarter of 2008 compared with 19.8% in first quarter of 2007. On
a non-GAAP basis, non-compensation expense as a percentage of revenues
was 19.2% in the first quarter of 2008 compared with 19.4% in the first
quarter of 2007.
* Net income for the first quarter of 2008 increased 46% to $36.0
million, or $0.30 per diluted share, compared with $24.7 million, or
$0.21 per diluted share, in the first quarter of 2007. On a non-GAAP
basis, net income for the first quarter of 2008 rose 51% to $38.1
million, or $0.32 per diluted share, compared with $25.3 million, or
$0.21 per diluted share, for the first quarter of 2007. Per share
amounts have been adjusted to reflect the Company's 4-for-1 stock split
effective March 31, 2008.
Michael Gooch, Chairman and Chief Executive Officer of GFI, commented: "The first quarter was a record for GFI. GFI performed well in all product areas. Equity markets remained active in the first quarter of 2008, leading to a 40% year-over-year increase in our revenues from equity products following their record growth in the fourth quarter. This was accompanied by a 31% increase in credit product revenues over the first quarter of 2007, which reached a record $111 million, and demonstrated a 52% increase sequentially. Our European desks made a major contribution to the increases in both product categories, supported by growth from other regions.
"Commodity product revenues increased 22% over the first quarter of 2007. We saw continued strong growth in dry freight derivatives in Europe and Asia-Pacific and metals in Europe. This was accompanied by increases in electric power and natural gas products in North America.
"Financial product revenues rose 16% from the first quarter of 2007, with the Asia-Pacific region leading the growth due to increases in emerging market currency and interest rate derivatives. Recently we have expanded our presence in the Middle East with the addition of our new offices in Dubai and Tel Aviv.
"Our electronic trading initiatives continue to be a focus of management, as we continue to add functionality and scale to our ForexMatch(TM), CreditMatch® and EnergyMatch® platforms. Our trading platforms continue to gain traction with increased electronic trading activity year over year. We remain committed to fostering customer relationships through our hybrid strategy of 'melding man and machine,' as well as introducing electronic trading, STP and analytics wherever possible with a goal of increasing market share and broker productivity.
"Looking forward, we expect our growth to continue in the second quarter of 2008, with brokerage revenues expected to increase between 18% and 23% compared with the second quarter of 2007. Our forecast takes into account the competitive forces we are confronting for our brokerage personnel amidst the departure of a number of credit product brokers from our New York office."
Mr. Gooch concluded: "Ultimately, we believe that our economic and strategic model is the only viable course for success in our markets over the longer term. We will continue to execute our plan to provide our brokerage personnel with sophisticated technology to further their success and that of our customers. We also will remain fully focused on building shareholder value and are pleased to declare a cash dividend of 3 cents a share for the quarter." |
