NITE Nightstar Therapeutics Plc ADS

Continuing operations generated fourth quarter 2009 revenues of $301.6 million and earnings of $42.5 million, or $0.45 per diluted share, which included a non-recurring tax benefit of $11.6 million, or $0.12 per diluted share The Equities segment generated fourth quarter 2009 revenues of $232.0 million amid weaker market conditions, compared to fourth quarter 2008 revenues of $263.3 million The Fixed Income, Currencies and Commodities (FICC) segment generated fourth quarter 2009 revenues of $70.2 million driven primarily by contributions from institutional fixed income as headcount more than doubled, compared to fourth quarter 2008 revenues of $35.2 million Full-year results included a 24% increase in revenues year over year; Pre-tax margins of 20% from continuing operations impacted by ongoing investments in diversification across clients, order flow, products and services, asset classes and geographies JERSEY CITY, N.J., Jan. 21 /PRNewswire-FirstCall/ -- Knight Capital Group, Inc. (NASDAQ:NITE) today reported earnings from continuing operations of $42.5 million, or $0.45 per diluted share, and a loss from discontinued operations, net of tax, of $655,000, or a $0.01 loss per diluted share. On a consolidated basis, the company reported earnings of $41.8 million, or $0.44 per diluted share, for the fourth quarter of 2009. The results include a non-recurring tax benefit of $0.12 per diluted share. For the fourth quarter of 2008, the company reported earnings from continuing operations of $83.3 million, or $0.93 per diluted share, and a loss from discontinued operations, net of tax, of $3.6 million, or a $0.04 loss per diluted share. On a consolidated basis, the company reported earnings of $79.7 million, or $0.89 per diluted share for the fourth quarter of 2008. Revenues from continuing operations for the fourth quarter of 2009 were $301.6 million, compared to $314.3 million for the fourth quarter of 2008. "Knight recorded solid results in the fourth quarter of 2009 despite declining trading activity as the year drew to a close," said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "While the intense trading activity and historic market volatility produced outstanding results in the fourth quarter of 2008, revenues declined only four percent on a consolidated basis in the fourth quarter of 2009. Knight separated the Global Markets segment into two new segments, Equities and FICC, to reflect the growth and diversification of the firm over the past year. In Equities, the decrease in revenues was partially offset by market share gains in Listed and NASDAQ securities. In FICC, we continued to build momentum from new clients and increased trade volumes in fixed income and foreign exchange." "Continuing operations" includes the company's Equities, FICC and Corporate operating segments. Equities includes all global equities market-making and institutional sales and trading, such as Knight Direct and Knight Link. FICC includes all global trade execution services in fixed income, foreign exchange and commodities, such as Knight Libertas, Knight BondPoint and Hotspot FX. Corporate includes strategic investments in financial services-related ventures, corporate overhead expenses and all other expenses that are not attributable to the Equities and FICC segments. Amounts reported as "discontinued operations" primarily include the company's Asset Management segment, which, on March 31, 2009, closed the sale of substantially all of Deephaven's assets to affiliates of Stark & Roth, Inc. As of that date, Deephaven was replaced as the investment adviser for the Deephaven funds and the company exited from the Asset Management business. Q4 2009 Q4 2008 ------- ------- Revenues ($ thousands) 301,611 314,275 Income from continuing operations, net of tax ($ thousands) 42,478 83,257 Loss from discontinued operations, net of tax ($ thousands) (655) (3,555) Net income ($ thousands) 41,823 79,702 Diluted EPS from continuing operations ($) 0.45 0.93 Diluted EPS from discontinued operations ($) (0.01) (0.04) Average daily U.S. equity dollar value traded ($ billions) 24.8 22.5 Average daily U.S. equity trades (thousands) 3,635.7 3,990.3 Nasdaq and Listed equity shares traded (billions) 73.8 75.1 OTC Bulletin Board and Pink Sheet shares traded (billions) 708.1 166.8 Average revenue capture per U.S. equity dollar value traded (bps) 1.2 1.6 Average daily Knight Direct equity trades (millions) 84.6 49.7 Average daily Hotspot FX notional dollar value traded ($ billions) 30.0 16.1 YTD 2009 YTD 2008 -------- -------- Revenues ($ thousands) 1,160,762 938,857 Income from continuing operations, net of tax ($ thousands) 150,796 193,710 Loss from discontinued operations, net of tax ($ thousands) (34,883) (15,799) Net income ($ thousands) 115,913 177,911 Diluted EPS from continuing operations ($) 1.60 2.11 Diluted EPS from discontinued operations ($) (0.37) (0.17) Average daily U.S. equity dollar value traded ($ billions) 23.0 19.2 Average daily U.S. equity trades (thousands) 3,904.5 2,548.0 Nasdaq and Listed equity shares traded (billions) 343.1 195.7 OTC Bulletin Board and Pink Sheet shares traded (billions) 2,170.7 802.7 Average revenue capture per U.S. equity dollar value traded (bps) 1.3 1.5 Average daily Knight Direct equity trades (millions) 69.1 50.6 Average daily Hotspot FX notional dollar value traded ($ billions) 22.8 18.4 "In 2009, Knight successfully increased revenues 24 percent year over year in executing our global growth strategy," said Mr. Joyce. "We extended gains in U.S. equities market share by deepening client relationships and expanding electronic products. Pre-tax margins narrowed due to increased investments across the firm as well as lower volatility, heightened activity in low-priced stocks and higher transaction costs. Knight Libertas added talent globally across research, sales and trading and grew trade volumes across several product areas. We made further investments in Europe and the Asia-Pacific region as well as in developing capital markets, options market-making and self-clearing capabilities. Finally, we closed the Asset Management segment." Equities During the fourth quarter of 2009, Equities generated total revenues of $232.0 million, compared to $263.3 million in the fourth quarter of 2008. In the fourth quarter of 2009, Equities reported pre-tax income of $56.7 million, compared to pre-tax income of $121.6 million in the fourth quarter of 2008. Equities had pre-tax margins of 24% in the fourth quarter of 2009, compared to pre-tax margins of 46% in the fourth quarter of 2008. "In Equities, during the fourth quarter, Knight grew U.S. equity average daily dollar value traded and share volume despite decreased broad market volumes and lower volatility compared to the fourth quarter of 2008," said Mr. Joyce. "The results demonstrate the benefits of the initiatives to diversify revenue sources and our resiliency across market cycles. During the fourth quarter, we gained further market share in trading of Listed and NASDAQ securities. Knight Direct reported record average daily trade volume during the quarter. Knight Link grew average daily share volume and launched in Europe. In addition, we continued to build liquidity in European and Asian equities. Pre-tax margins in Equities declined in comparison to the fourth quarter of 2008 due to investments in new initiatives, weaker market conditions and continued high levels of activity in low-priced stocks." Fixed Income, Currencies and Commodities During the fourth quarter of 2009, FICC generated total revenues of $70.2 million, compared to $35.2 million in the fourth quarter of 2008. In the fourth quarter of 2009, FICC reported pre-tax income of $7.2 million, compared to pre-tax income of $5.7 million in the fourth quarter of 2008. FICC had pre-tax margins of 10% in the fourth quarter of 2009, compared to pre-tax margins of 16% in the fourth quarter of 2008. "In FICC, Knight Libertas, Knight BondPoint and Hotspot FX all achieved growth during the fourth quarter reflected by the increased revenues year over year," said Mr. Joyce. "The aggressive expansion of Knight Libertas is the primary driver of overall revenue growth. During the quarter, Knight Libertas continued to attract talent and add clients while investing in new products. Knight BondPoint benefited from increased efficiencies of scale due to the onboarding of several major clients and enhanced connectivity. In foreign exchange, Hotspot FX reported record average daily volume during the quarter as a result of adding clients and deepening relationships. Pre-tax margins in FICC reflect investments in the growth of Knight Libertas and resulting increase in headcount." Corporate In the fourth quarter of 2009, the Corporate segment reported a pre-tax loss of $14.2 million, compared to pre-tax income of $19.5 million in the fourth quarter of 2008. The company's corporate investment in funds formerly managed by Deephaven recognized a pre-tax loss of $1.7 million during the fourth quarter of 2009, compared to a pre-tax loss of $14.8 million during the fourth quarter of 2008. During the fourth quarter of 2008, the company recorded a pre-tax gain of $51.6 million, or approximately $0.33 per diluted share, from the partial sale of the company's investment in Direct Edge Holdings. Consequently, of the $51.6 million pre-tax gain, $15.9 million is reported as Non-operating gain from subsidiary stock issuance, and $35.7 million is included in Investment income and other, net on the Consolidated Statements of Operations. Headcount from continuing operations at December 31, 2009 was 1,126 full-time employees, as compared to 910 full-time employees at December 31, 2008, reflecting personnel additions related to prior acquisitions, new products, and geographic expansion throughout the year. "Knight is evolving from a leading U.S. equities trade execution firm into a global capital markets firm," said Mr. Joyce. "The diversification of revenue sources as part of the growth strategy has proven successful. We've demonstrated an ability to compete against the larger firms, electronic trading platforms and boutiques. In 2010, we'll invest in new initiatives for future growth, from building liquidity in equities, fixed income, foreign exchange and options, to expanding our global presence and enhancing our overall capabilities." As of December 31, 2009, the company had $427.1 million in cash and cash equivalents. The company had $1.2 billion in stockholders' equity as of December 31, 2009, equivalent to a book value of $12.87 per diluted share. The company had a book value of $11.53 per diluted share as of December 31, 2008. During the fourth quarter of 2009, the company repurchased 1,000,000 shares for approximately $16.8 million under the company's $1.0 billion stock repurchase program. To date, the company has repurchased 68.3 million shares for $770.4 million. The company has approximately $229.6 million of availability to repurchase shares under the program. The company cautions that there are no assurances that any further repurchases may actually occur. Discontinued operations In the fourth quarter of 2009, the company reported a pre-tax loss from discontinued operations of $1.5 million, or $655,000, net of tax, which primarily relates to the wind-down of the Asset Management segment. In the fourth quarter of 2008, the company reported a pre-tax loss from discontinued operations of $5.7 million, or $3.6 million, net of tax. Deephaven was designated a discontinued operation for financial reporting purposes as of the close of business on March 31, 2009. 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 fourth quarter 2009 earnings conference call for analysts, investors and the media at 9:00 a.m. Eastern Time (ET) today, January 21, 2010. To access Knight's earnings conference call, please dial 888-282-4591 for domestic callers or 719-325-2133 for international callers. When prompted, please enter passcode 2442711. A replay of the fourth quarter 2009 earnings conference call will be available by dialing 888-203-1112 for domestic callers or 719-457-0820 for international callers. When prompted, enter passcode 2442711. 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 December 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 global capital markets firm that provides market access and trade execution services across multiple asset classes to buy- and sell-side firms. Knight's hybrid market model features complementary electronic and voice trade execution services in global equities and fixed income as well as foreign exchange, futures and options. The firm is consistently ranked as the leading source of off-exchange liquidity in U.S. equities. Knight also provides capital markets services to corporate issuers. Knight is headquartered in Jersey City, NJ with a growing global presence across North America, Europe and the Asia-Pacific region. For more information, please go to 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 changes in market structure, legislative or regulatory rule changes, the costs, integration, performance and operation of businesses recently acquired or developed organically, or that may be acquired in the future, by the Company and risks related to the 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 December 31, ------------ 2009 2008 ---- ---- (In thousands, except per share amounts) Revenues Commissions and fees $166,874 $153,059 Net trading revenue 132,225 142,927 Interest, net 975 435 Investment income and other, net 1,537 17,854 ----- ------ Total revenues 301,611 314,275 ------- ------- Expenses Employee compensation and benefits 142,890 96,797 Execution and clearance fees 47,852 31,288 Payments for order flow 13,816 16,301 Communications and data processing 17,221 13,109 Depreciation and amortization 9,145 7,862 Occupancy and equipment rentals 5,997 5,306 Business development 5,310 5,328 Professional fees 3,633 2,729 Interest expense 2,108 1,590 Writedown of assets and lease loss accrual (benefit), net 292 592 Other 3,587 2,495 ----- ----- Total expenses 251,851 183,397 ------- ------- Other Income Non-operating gain from subsidiary stock issuance - 15,947 --- ------ Income from continuing operations before income taxes 49,760 146,825 Income tax expense 7,282 63,568 ----- ------ Income from continuing operations, net of tax 42,478 83,257 Loss from discontinued operations, net of tax (655) (3,555) ---- ------ Net income $41,823 $79,702 ======= ======= Basic earnings per share from continuing operations $0.48 $0.97 ===== ===== Diluted earnings per share from continuing operations $0.45 $0.93 ===== ===== Basic earnings per share from discontinued operations $(0.01) $(0.04) ====== ====== Diluted earnings per share from discontinued operations $(0.01) $(0.04) ====== ====== Basic earnings per share $0.47 $0.93 ===== ===== Diluted earnings per share $0.44 $0.89 ===== ===== Shares used in computation of basic earnings per share 89,175 86,025 ====== ====== Shares used in computation of diluted earnings per share 94,255 89,121 ====== ====== For the years ended December 31, ------------ 2009 2008 ---- ---- (In thousands, except per share amounts) Revenues Commissions and fees $670,406 $478,126 Net trading revenue 486,684 446,707 Interest, net (1,712) 7,644 Investment income and other, net 5,384 6,380 ----- ----- Total revenues 1,160,762 938,857 --------- ------- Expenses Employee compensation and benefits 527,025 331,311 Execution and clearance fees 169,805 107,402 Payments for order flow 71,629 43,639 Communications and data processing 61,071 45,359 Depreciation and amortization 34,368 26,535 Occupancy and equipment rentals 23,177 19,642 Business development 18,807 17,279 Professional fees 13,043 14,749 Interest expense 4,777 5,052 Writedown of assets and lease loss accrual (benefit), net (9,704) 1,236 Other 15,326 8,969 ------ ----- Total expenses 929,324 621,173 ------- ------- Other Income Non-operating gain from subsidiary stock issuance - 15,947 --- ------ Income from continuing operations before income taxes 231,438 333,631 Income tax expense 80,642 139,921 ------ ------- Income from continuing operations, net of tax 150,796 193,710 Loss from discontinued operations, net of tax (34,883) (15,799) ------- ------- Net income $115,913 $177,911 ======== ======== Basic earnings per share from continuing operations $1.69 $2.19 ===== ===== Diluted earnings per share from continuing operations $1.60 $2.11 ===== ===== Basic earnings per share from discontinued operations $(0.39) $(0.18) ====== ====== Diluted earnings per share from discontinued operations $(0.37) $(0.17) ====== ====== Basic earnings per share $1.30 $2.01 ===== ===== Diluted earnings per share $1.23 $1.94 ===== ===== Shares used in computation of basic earnings per share 89,095 88,407 ====== ====== Shares used in computation of diluted earnings per share 94,504 91,760 ====== ====== KNIGHT CAPITAL GROUP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) December December 31, 31, 2009 2008 ---- --- (In thousands) ASSETS Cash and cash equivalents $427,106 $416,957 Securities owned, held at clearing brokers, at fair value 926,589 476,111 Securities borrowed 394,417 11,848 Receivable from brokers and dealers 500,143 329,502 Fixed assets and leasehold improvements, at cost, less accumulated depreciation and amortization 98,696 81,237 Strategic investments 65,166 83,697 Goodwill 265,530 232,197 Intangible assets, less accumulated amortization 77,812 90,477 Deferred compensation investments 44,626 41,637 Assets within discontinued operations 12,455 84,868 Other assets 198,906 176,895 ------- ------- Total assets $3,011,446 $2,025,426 ========== ========== LIABILITIES & EQUITY Liabilities Securities sold, not yet purchased, at fair value $639,259 $385,003 Securities loaned 550,226 - Payable to brokers and dealers 155,148 98,138 Accrued compensation expense 204,936 171,392 Accrued expenses and other liabilities 93,858 132,369 Liabilities within discontinued operations 14,328 63,988 Credit facility 140,000 140,000 ------- ------- Total liabilities 1,797,755 990,890 --------- ------- Equity Knight Capital Group, Inc. stockholders' equity Class A common stock 1,587 1,544 Additional paid-in capital 747,770 648,716 Retained earnings 1,227,923 1,112,010 Treasury stock, at cost (764,209) (734,912) -------- -------- Total Knight Capital Group, Inc. stockholders' equity 1,213,071 1,027,358 Noncontrolling interests 620 7,178 --- ----- Total equity 1,213,691 1,034,536 --------- --------- Total liabilities and equity $3,011,446 $2,025,426 ========== ========== KNIGHT CAPITAL GROUP, INC. PRE-TAX EARNINGS BY BUSINESS SEGMENT* Amounts in millions (Unaudited) For the three months ended For the years ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Equities Revenues $232.0 $263.3 $891.0 $851.5 Expenses 175.3 141.8 663.7 505.0 ----- ----- ----- ----- Pre-tax earnings 56.7 121.6 227.3 346.4 ---- ----- ----- ----- Fixed Income, Currencies and Commodities Revenues 70.2 35.2 266.7 79.3 Expenses 63.0 29.4 218.8 67.0 ---- ---- ----- ---- Pre-tax earnings 7.2 5.7 47.8 12.3 --- --- ---- ---- Corporate Revenues (0.7) 15.8 3.1 8.1 Expenses 13.6 12.2 46.8 49.1 Other income - 15.9 - 15.9 --- ---- --- ---- Pre-tax earnings (14.2) 19.5 (43.7) (25.1) ----- ---- ----- ----- Consolidated Revenues 301.6 314.3 1,160.8 938.9 Expenses 251.9 183.4 929.3 621.2 Other income - 15.9 - 15.9 --- ---- --- ---- Pre-tax earnings $49.8 $146.8 $231.4 $333.6 ===== ====== ====== ====== * 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, , or Kara Fitzsimmons, Director, Media Relations, +1-201-356-1523, , or Jonathan Mairs, Vice President, Corporate Communications, +1-201-356-1529, , all of Knight Capital Group, Inc. Web Site: http://www.knight.com/

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