I guess no one else is on this thread but I thought I'd post this anyways. I think it is about the only positive news for my portfolio on this unrelentlessly tough day for the market.
Wednesday July 22, 7:04 am Eastern Time
Company Press Release
Knight/Trimark Group Reports Second Quarter Results
JERSEY CITY, N.J.--(BUSINESS WIRE)--July 22, 1998--Knight/Trimark Group, Inc. (NASDAQ: NITE - news), a leading market maker in NASDAQ
securities and in the over-the-counter ''third'' market in exchange-listed securities, today reported financial results for the second quarter and six month periods
ending June 30, 1998.
Revenues for the 1998 second quarter rose 60.8% to $80,547,000 compared with $50,091,000 during the second quarter of 1997. Pro forma net income, after
the effect of pro forma income taxes, for the 1998 second quarter rose 130.0% to $11,660,000 compared with $5,068,000 during the same period last year. Pro
forma income taxes relate to the Company's reorganization from a limited liability company to a C corporation in connection with the Company's initial public
offering on July 8, 1998. Pro forma basic and diluted net income per share for the second quarter of 1998, after the effect of pro forma income taxes and the
Company's reorganization and initial public offering, increased 130.0% to $0.23 from $0.10 in the second quarter of 1997. The number of shares used in the pro
forma basic and diluted calculations for both the June 30, 1998 and 1997 quarters was 51,504,882 and reflect the Company's reorganization and the issuance of
10,000,000 shares of the Company's Class A Common Stock in an initial public offering. The reorganization and the initial public offering are described in the
Company's Prospectus dated July 8, 1998 as filed with the Securities and Exchange Commission.
Revenues for the six month period ended June 30, 1998 increased 42.6% to $144,079,000 from $101,070,000 during the first six months of 1997. Pro forma net
income, after the effect of pro forma income taxes, rose 82.5% to $20,087,000 compared with $11,008,000 during the same period last year. Pro forma basic and
diluted net income per share for the six months ended June 30, 1998, after the effect of pro forma income taxes and the Company's reorganization and initial public
offering, increased 82.5% to $0.39 from $0.21 in the comparable 1997 period.
In addition to the improvements in year-over-year results, Knight/Trimark also achieved sequential quarterly gains as revenues for the June 30, 1998 quarter rose
approximately 26.8% over those for the quarter ended March 31, 1998, while pro forma net income increased 38.4% period-to-period.
Knight/Trimark attributed its improved financial performance primarily to higher trading volumes. Trades executed for the quarter ended June 30, 1998 increased
117.7% to 9,016,000 from 4,141,000 during the comparable 1997 period. Shares traded for the three month period ended June 30, 1998 increased 163.7% to
9,477,318,000 shares traded from 3,594,245,000 during the comparable 1997 period. Net trading revenue for the quarter ended June 30, 1998 increased 61.6%
to $80,250,000 from $49,656,000 during the comparable 1997 period.
The following table highlights key quarterly statistics on
Knight/Trimark's trading operations:
Three Months Ended June 30,
1998 1997
Net trading revenue $80,250,000 $49,656,000
Trades executed 9,016,000 4,141,000
Averaged daily net
trading revenue $1,274,000 $776,000
Average daily trades 143,000 65,000
Shares traded 9,477,318,000 3,594,245,000
Knight/Trimark Group, Inc., through its Knight Securities subsidiary, which was founded in 1995, is a leading market maker in NASDAQ securities and, through its
Trimark Securities subsidiary, is a leader in the over the counter ''third'' market in exchange listed securities. The Company has attained its leadership position by
providing superior execution services to broker-dealers and institutional customers through its sophisticated trading systems and proprietary methods, and a
commitment to providing value-added execution methodologies that emphasize automated execution and rule compliance, real-time information, access to
customers and pricing, as well as liquidity advantages.
KNIGHT/TRIMARK GROUP, INC.
Consolidated Statements of Financial Condition
(in thousands)
(unaudited)
June 30, 1998 June 30, 1998
pro forma(a)
Assets
Cash and cash equivalents $6,690 $108,727
Securities owned, at market value 78,089 78,089
Receivable from clearing brokers 39,429 39,429
Fixed assets and leasehold improvements,
at cost, less accumulated depreciation
and amortization 10,282 10,282
Goodwill, less accumulated amortization 14,725 14,725
Other assets 2,509 2,509
Total assets $151,724 $253,761
Liabilities and Members' (Pro Forma Stockholders') Equity
Liabilities
Securities sold, not yet
purchased, at market value $51,659 $51,659
Short term borrowings 30,000 30,000
Accrued compensation expense 10,309 10,309
Accrued execution and clearance fees 2,734 2,734
Accrued payments for order flow 5,001 5,001
Accounts payable, accrued expenses
and other liabilities 3,975 3,975
Interest payable on Preferred Units 230 230
Subordinated note 500 -
Mandatorily Redeemable Preferred B Units 13,847 -
Total liabilities 118,255 103,908
Members' equity
Common units 7,345 -
Undistributed income 26,124 -
Pro forma stockholders' equity
Class A Common Stock - 475
Class B Common Stock - 39
Additional paid-in capital - 149,339
Total members' (pro forma stockholders')
equity 33,469 149,853
Total liabilities and members'
(pro forma stockholders') equity $151,724 $253,761
(a) The pro forma amounts reflect adjustments related to the Company's
reorganization from a limited liability company to a C corporation
and the related initial public offering of 10,000,000 shares of
Class A Common Stock, as described in the Company's Prospectus
dated July 8, 1998 as filed with the Securities and Exchange
Commission. Such amounts assume that the 30-day option to purchase
an additional 1,500,000 shares of Class A Common Stock granted to
the underwriters of the Company's initial public offering, as
described in the Company's Prospectus, will not be exercised.
KNIGHT/TRIMARK GROUP, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Total revenues $80,547 $50,091 $144,079 $101,070
Expenses
Employee compensation
and benefits 23,323 12,492 39,491 24,505
Payments for order flow 19,503 16,841 35,759 34,969
Execution and clearance
fees 10,189 6,873 20,429 13,283
Communications and
data processing 2,470 1,721 4,640 3,040
Depreciation and
amortization 1,344 1,062 2,635 1,999
Occupancy and equipment
rentals 1,314 565 2,395 1,102
Business development 612 432 989 676
Interest on Preferred Units 262 477 678 1,081
Other 1,073 737 1,822 1,102
Total expenses 60,090 41,200 108,838 81,757
Net income 20,457 8,891 35,241 19,313
Pro forma adjustments:
Pro forma income
tax expense (a) 8,797 3,823 15,154 8,305
Pro forma net income (a) $11,660 $5,068 $20,087 $11,008
Pro forma net income
per share -
basic and diluted (b) $0.23 $0.10 $0.39 $0.21
Common shares
outstanding (b) 51,505 51,505 51,505 51,505
(a) The pro forma income tax expense and net income amounts reflect
adjustments related to the Company's reorganization from a limited
liability company to a C corporation , as described in the
Company's Prospectus dated July 8, 1998 as filed with the
Securities and Exchange Commission.
(b) The pro forma net income per share amounts and common shares
outstanding reflect adjustments related to the Company's
reorganization from a limited liability company to a C corporation
and the related initial public offering of 10,000,000 shares of
Class A Common Stock, as described in the Company's Prospectus
dated July 8, 1998 as filed with the Securities and Exchange
Commission. Such amounts assume that the 30-day option to purchase
an additional 1,500,000 shares of Class A Common Stock granted to
the underwriters of the Company's initial public offering, as
described in the Company's Prospectus, will not be exercised.
Contact:
Robert I. Turner
Executive Vice President,
Chief Financial Officer and Treasurer
Knight/Trimark Group, Inc.
201/557-6845 |
