NEW YORK, Aug. 07, 2020 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the second quarter ended June 30, 2020.
Second Quarter 2020 Selected Highlights
- Net income of $335.3 million; Normalized Adjusted Net Income1 of $340.0 million
- Basic earnings per share of $1.59 and diluted earnings per share of $1.58; Normalized Adjusted EPS1 of $1.73
- Total revenues of $905.9 million; Trading income, net of $744.0 million; Adjusted Net Trading Income1 of $668.7 million
- Adjusted EBITDA1 of $485.8 million; Adjusted EBITDA Margin1 of 72.6%
The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on September 15, 2020 to shareholders of record as of September 1, 2020.
“We delivered solid results in the second quarter, with both Market Making and Execution Services performing well, reflecting the strong progress we are making in our organic growth initiatives as well as higher trading volumes across global asset classes and sustained levels of retail engagement,” said Doug Cifu, Chief Executive Officer. “Our progress to date is a testament to both the commitment and dedication of our teams and the strength of our client relationships. Our results this quarter demonstrate our focus on delivering best-in-class products and services across the entire trade-lifecycle as well as the competitiveness of our global liquidity offerings.”
Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
Financial Results
Second Quarter 2020:
Total revenues increased 141.5% to $905.9 million for this quarter, driven by heightened levels of volatility, bid-ask spreads and trading volumes across global markets and asset classes due to the COVID-19 pandemic, compared to $375.1 million for the same period in 2019. Trading income, net, increased 261.3% to $744.0 million for this quarter, compared to $205.9 million for the same period in 2019. Net income totaled $335.3 million for this quarter, compared to a net loss of $55.5 million in the prior year quarter, which included costs related to the ITG acquisition.
Basic earnings per share for this quarter was $1.59 and diluted earnings per share was $1.58, compared to a basic and diluted loss per share of $0.27 for the same period in 2019.
Adjusted Net Trading Income increased 179.9% to $668.7 million for this quarter, compared to $238.9 million for the same period in 2019. Adjusted EBITDA increased 444.8% to $485.8 million for this quarter, compared to $89.2 million for the same period in 2019.
Normalized Adjusted Net Income, removing one-time integration costs and non-cash items, increased 1,027.7% to $340.0 million for this quarter, compared to $30.1 million for the same period in 2019.
Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $1.73 for this quarter, compared to $0.16 for the same period in 2019.
Operating Segment Information
The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.
Market Making principally consists of market making in the cash, futures and options markets across global equities, options, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.
Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. Legacy ITG’s operations are included within the Execution Services segment.
Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.
The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and six months ended June 30, 2020 and 2019.
Financial Condition
As of June 30, 2020, Virtu had $748.0 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,768.9 million.
