NITE Nightstar Therapeutics Plc ADS

In Continuing Operations, Global Markets reported strong first quarter pre-tax income of $67 million while pre-tax margins were impacted by continuing investment in geographic and asset class expansion, infrastructure and new talent JERSEY CITY, N.J., April 22 /PRNewswire-FirstCall/ -- - Knight Capital Group, Inc. (NASDAQ:NITE) today reported earnings from continuing operations of $29.9 million, or $0.33 per diluted share, and a loss from discontinued operations, net of tax, of $20.5 million, or $0.23 loss per diluted share. On a consolidated basis, the company reported earnings of $9.4 million, or $0.10 per diluted share, for the first quarter of 2009. For the first quarter of 2008, the company reported earnings from continuing operations of $35.1 million, or $0.38 per diluted share, and a loss from discontinued operations, net of tax, of $2.6 million, or $0.03 loss per diluted share. On a consolidated basis, the company reported earnings of $32.5 million, or $0.35 per diluted share, for the first quarter of 2008. Revenues from continuing operations for the first quarter of 2009 were $245.4 million, compared to $194.0 million from continuing operations for the first quarter of 2008. "Knight reported a solid first quarter while investing in strategic growth initiatives and managing the firm's exit from the asset management business," said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "Our performance is attributable to the dynamic and adaptable nature of our hybrid model and the success of our strategic decision to expand our non-equity businesses, particularly fixed income. Global Markets revenues advanced due to ongoing diversification across clients, order flow, products and services, asset classes and geographies. Pre-tax margins were affected by increased costs associated with opportunistic hiring, investments in trading technology and infrastructure expenses for our geographic expansion." "Continuing operations" includes the company's Global Markets and Corporate operating segments. Amounts reported as "discontinued operations" include the company's Asset Management segment, which, on March 31, 2009, closed the sale of substantially all of Deephaven's assets to affiliates of Stark & Roth, Inc. As of that date, Deephaven was replaced as the investment adviser for the Deephaven funds, and the company has exited from the asset management business. "Looking ahead, we will continue to make investments in expanding our offering across asset classes, enhancing our trading technology and selectively hiring new talent," said Mr. Joyce. "We remain focused on exceeding our goal of 20% pre-tax margins across all market cycles and further strengthening our position on the new Wall Street." Q1 2009 Q1 2008 ------- ------- Revenues ($ thousands) 245,354 193,978 Income from continuing operations, net of tax ($ thousands) 29,881 35,097 Loss from discontinued operations, net of tax ($ thousands) (20,514) (2,594) Net income ($ thousands) 9,367 32,503 Diluted EPS from continuing operations ($) 0.33 0.38 Diluted EPS from discontinued operations ($) (0.23) (0.03) Average daily U.S. equity dollar value traded ($ billions) 19.9 16.8 Average daily U.S. equity trades (thousands) 3,842.3 1,755.7 Nasdaq and Listed equity shares traded (billions) 79.3 33.7 OTC Bulletin Board and Pink Sheet shares traded (billions) 259.2 165.1 Average revenue capture per U.S. equity dollar value traded (bps) 1.5 1.5 Average month-end balance of assets under management ($ millions) 1,545.6 3,577.6 Quarterly fund return to investors* -6.0% -8.0% * Quarterly fund return represents the blended quarterly return across all assets under management in the Deephaven funds. Global Markets During the first quarter of 2009, Global Markets generated total revenues of $250.4 million, compared to $202.2 million in the first quarter of 2008. In the first quarter of 2009, Global Markets reported pre-tax income of $67.0 million, compared to pre-tax income of $78.9 million in the first quarter of 2008. Global Markets had pre-tax margins of 27% in the first quarter of 2009, compared to pre-tax margins of 39% in the first quarter of 2008. "In Global Markets, our quantitative trading models performed well despite a challenging equity market environment of concentrated trading activity in low-priced stocks, resulting in an increase in transaction-related fees," said Mr. Joyce. "Institutional equity sales and trading remained focused on clients while we expanded our electronic capabilities in Europe. For the quarter, equity revenues were supported by gains in U.S. equities market share and increased dollar volumes from the prior year's first quarter. "In a period when investors were searching for yield over equity appreciation, Knight Libertas experienced dramatic growth due to a strong fixed income market, strategic hires and addition of new products. Global Markets' 60% increase in total commissions was fueled largely by the rapid expansion of Knight Libertas which we acquired in the third quarter of 2008," Mr. Joyce added. Corporate In the first quarter of 2009, the corporate segment reported a pre-tax loss of $16.0 million, compared to a pre-tax loss of $19.0 million in the first quarter of 2008. The company's corporate investment in the Deephaven funds recorded a pre-tax loss of $3.9 million during the first quarter of 2009, compared to a pre-tax loss of $7.0 million during the first quarter of 2008. Headcount in continuing operations at the end of March 31, 2009 was 966 full-time employees, as compared to 778 full-time employees at the end of March 31, 2008, reflecting personnel additions from acquisitions and new products throughout the year. Discontinued Operations In the first quarter of 2009, the discontinued Asset Management segment reported a pre-tax loss of $31.1 million, or $20.5 million net of tax, which includes approximately $23 million in pre-tax charges associated with the wind-down of the business. The Asset Management segment reported a pre-tax loss of $4.1 million, or $2.6 million net of tax, in the first quarter of 2008. Assets under management averaged approximately $1.5 billion in the first quarter of 2009, compared to an average of approximately $3.6 billion during the first quarter of 2008. "Knight has exited the asset management business with the completion of the sale of Deephaven's assets and replacement as investment adviser," said Mr. Joyce. "A small transition team at Deephaven is now winding down operations. As of the close of business on March 31, 2009, Deephaven is a discontinued operation for financial reporting purposes." As of March 31, 2009, the company had $336.9 million in cash and cash equivalents from continuing operations as well as a $31.6 million corporate investment in funds formerly managed by Deephaven. The company had $1.1 billion in stockholders' equity as of March 31, 2009, equivalent to a book value of $11.50 per diluted share. The company had a book value of $10.05 per diluted share as of March 31, 2008. During the first quarter of 2009, the company did not repurchase any shares under its $1.0 billion stock repurchase program. To date, the company has repurchased 67.1 million shares for $750.4 million. The company has approximately $249.6 million available to repurchase shares under the program. The company cautions that there are no assurances that any further repurchases may actually occur. Copies of this earnings release and other company information can be obtained on Knight's website, http://www.knight.com/. The company will conduct its first quarter of 2009 earnings conference call for analysts, investors and the media at 9:00 a.m. Eastern Time (ET) today, April 22, 2009. To access Knight's earnings conference call, please dial 877-874-1563 for domestic callers or 719-325-4748 for international callers. When prompted, provide the passcode, which is 4027675. The conference call will be webcast live at 9:00 a.m. ET for all investors and interested parties on Knight's website. In addition, the company will release its monthly volume statistics for March 2009 on its website at http://www.knight.com/ourfirm/volumestats.asp before the start of trading today. About Knight Knight Capital Group, Inc. (NASDAQ:NITE) is a leading financial services firm that provides electronic and voice access to the global capital markets across multiple asset classes for buy-side, sell-side and corporate clients. In Global Markets, we provide market access and trade execution services in nearly every U.S. equity security and a large number of global equities and fixed income, foreign exchange, futures and options. Our approach to trading combines deep liquidity with robust trading technology and capital facilitation, when necessary, to deliver high quality trade executions consistent with client defined measures. We recently exited the Asset Management business, which consists of our 51% ownership of Deephaven Holdings, the parent company of Deephaven, formerly a global multi-strategy alternative investment manager. For information regarding our exit from our Asset Management segment, refer to the Form 8-K's furnished by the Company on April 1, 2009 and January 27, 2009, and the Form 8-K filed by the Company on February 26, 2009. More information about Knight can be found at http://www.knight.com/. Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, 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 including, without limitation, risks associated with (i) the costs, integration, performance and operation of businesses recently acquired, or that may be acquired in the future, by the Company, and (ii) the closing of the sale of the assets of the Asset Management business and costs and expenses associated with the Company's exit from the Asset Management business. 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. Readers should carefully review the risks and uncertainties disclosed in the Company's reports with the U.S. Securities and Exchange Commission (SEC), including, without limitation, those detailed under the headings "Certain Factors Affecting Results of Operations" and "Risk Factors" in the Company's Annual Report on Form 10-K for the year-ended December 31, 2008, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time. This information should also be read in conjunction with the Company's Consolidated Financial Statements and the Notes thereto contained in the Company's Annual Report on Form 10-K for the year-ended December 31, 2008, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time. KNIGHT CAPITAL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the three months ended March 31, ------------- 2009 2008 ---- ---- (In thousands, except per share amounts) Revenues Commissions and fees $150,710 $94,300 Net trading revenue 99,460 101,517 Interest, net (597) 3,764 Investment loss and other, net (4,219) (5,603) ------ ------ Total revenues 245,354 193,978 ------- ------- Expenses Employee compensation and benefits 109,187 72,494 Execution and clearance fees 29,091 25,224 Payments for order flow 17,027 8,926 Communications and data processing 13,788 9,466 Depreciation and amortization 8,187 5,520 Occupancy and equipment rentals 5,361 3,813 Business development 4,346 3,611 Professional fees 2,902 3,664 Interest expense 981 1,057 Writedown of assets 699 - Other 2,756 269 ----- --- Total expenses 194,325 134,044 ------- ------- Income from continuing operations before income taxes 51,029 59,934 Income tax expense 21,148 24,837 ------ ------ Income from continuing operations, net of tax 29,881 35,097 Loss from discontinued operations, net of tax (20,514) (2,594) ------- ------ Net income $9,367 $32,503 ====== ======= Basic earnings per share from continuing operations $0.34 $0.39 ===== ===== Diluted earnings per share from continuing operations $0.33 $0.38 ===== ===== Basic earnings per share from discontinued operations $(0.24) $(0.03) ====== ====== Diluted earnings per share from discontinued operations $(0.23) $(0.03) ====== ====== Basic earnings per share $0.11 $0.36 ===== ===== Diluted earnings per share $0.10 $0.35 ===== ===== Shares used in computation of basic earnings per share 86,911 89,810 ====== ====== Shares used in computation of diluted earnings per share 91,309 92,445 ====== ====== KNIGHT CAPITAL GROUP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) --------- ------------ March 31, December 31, 2009 2008 --------- ------------ (In thousands) ASSETS Cash and cash equivalents $336,862 $416,957 Securities owned, held at clearing brokers, at fair value 819,102 476,111 Receivable from brokers and dealers 402,133 341,350 Receivable from discontinued operations 35,866 10,851 Investment in Deephaven sponsored funds 31,620 47,152 Fixed assets and leasehold improvements, at cost, less accumulated depreciation and amortization 81,500 81,237 Strategic investments 83,610 83,697 Goodwill 232,197 232,197 Intangible assets, less accumulated amortization 87,641 90,477 Deferred compensation investments 42,712 41,637 Assets within discontinued operations 58,746 84,868 Other assets 108,538 118,892 ------- ------- Total assets $2,320,527 $2,025,426 ========== ========== LIABILITIES & STOCKHOLDERS' EQUITY Liabilities Securities sold, not yet purchased, at fair value $598,468 $385,003 Payable to brokers and dealers 280,099 98,138 Accrued compensation expense 88,720 171,392 Accrued expenses and other liabilities 88,591 132,369 Liabilities within discontinued operations 74,290 63,988 Long term debt 140,000 140,000 ------- ------- Total liabilities 1,270,168 990,890 --------- ------- Stockholders' equity Knight Capital Group, Inc. stockholders' equity Class A common stock 1,577 1,544 Additional paid-in capital 670,095 648,716 Retained earnings 1,121,377 1,112,010 Treasury stock, at cost (743,449) (734,912) -------- -------- Total Knight Capital Group, Inc. stockholders' equity 1,049,600 1,027,358 Noncontrolling interest 759 7,178 --- ----- Total stockholders' equity 1,050,359 1,034,536 --------- --------- Total liabilities and stockholders' equity $2,320,527 $2,025,426 ========== ========== KNIGHT CAPITAL GROUP, INC. PRE-TAX EARNINGS FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT* Amounts in millions (Unaudited) For the three months ended March 31, ------------- 2009 2008 ---- ---- Global Markets Revenues $250.4 $202.2 Expenses 183.3 123.2 ----- ----- Pre-tax earnings 67.0 78.9 ---- ---- Corporate Revenues (5.0) (8.2) Expenses 11.0 10.8 ---- ---- Pre-tax earnings (16.0) (19.0) ----- ----- Consolidated Revenues 245.4 194.0 Expenses 194.3 134.0 ----- ----- Pre-tax earnings $51.0 $59.9 ===== ===== * Totals may not add due to rounding. DATASOURCE: Knight Capital Group, Inc. CONTACT: Margaret Wyrwas, Senior Managing Director, Communications, Marketing & Investor Relations, +1-201-557-6954, ; Kara Fitzsimmons, Director, Media Relations, +1-201-356-1523, ; or Jonathan Mairs, Vice President, Corporate Communications, +1-201-356-1529, Web Site: http://www.knight.com/

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