NEW YORK, Feb. 11, 2021 (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 fourth quarter ended and full year ended December 31, 2020.

Fourth Quarter 2020:

• Net income of $197.7 million; Normalized Adjusted Net Income¹ of $234.0 million
• Basic earnings per share of $0.89 and diluted earnings per share of $0.88; Normalized Adjusted EPS¹ of $1.18
• Total revenues of $676.7 million; Trading income, net, of $505.5 million; Adjusted Net Trading Income¹ of $455.9 million
• Adjusted EBITDA¹ of $343.9 million; Adjusted EBITDA Margin¹ of 75.4%
• Additional $70 million share repurchase authorized, bringing total to $170 million authorized; $50 million executed to date

Full Year 2020:

• Net income of $1,120.9 million; Normalized Adjusted Net Income¹ of $1,135.1 million
• Basic earnings per share of $5.19 and diluted earnings per share of $5.16; Normalized Adjusted EPS¹ of $5.76
• Total revenues of $3,239.3 million; Trading income, net, of $2,493.2 million; Adjusted Net Trading Income¹ of $2,271.4 million
• Adjusted EBITDA¹ of $1,648.0 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 March 15, 2021 to shareholders of record as of March 1, 2021.

“Capping off a record breaking 2020, we delivered exceptional performance globally in the fourth quarter. I’m extremely proud of the team for their dedication in executing amidst a challenging global situation,” said Douglas Cifu, CEO of Virtu Financial. “Our market making segment played a critical role in the markets by seamlessly executing trades, and ultimately delivering $1.3 billion of price improvement to individual investors. Our Execution Services segment had a record quarter, delivering outstanding service and further enhancements to our best-in-class products that drive value across the entire trade lifecycle and assist our clients in navigating our ever changing market landscape.”

Mr. Cifu continued: “Turning the page on 2020, we enter our next chapter of growth in 2021 stronger than ever with a clear trajectory that includes an optimized expense base and reduced levels of debt, thanks to the meaningful progress we’ve made in integrating our acquisitions and returning excess cash flow to shareholders.”

Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.

Financial Results

Fourth Quarter 2020:

Total revenues increased 69.3% to $676.7 million for this quarter, driven by the heightened levels of volatility, bid-ask spreads and trading volumes across global markets and asset classes due to the COVID-19 pandemic, compared to $399.6 million for the same period in 2019. Trading income, net, increased 121.0% to $505.5 million for this quarter, compared to $228.7 million for the same period in 2019. Net income totaled $197.7 million for this quarter, compared to a net loss of $29.4 million in the prior year quarter, which included costs related to the ITG acquisition.

Basic earnings per share for this quarter was $0.89 and diluted earnings per share was $0.88, compared to a basic and diluted loss per share of $0.16 for the same period in 2019.

Adjusted Net Trading Income increased 77.3% to $455.9 million for this quarter, compared to $257.2 million for the same period in 2019. Adjusted EBITDA increased 200.1% to $343.9 million for this quarter, compared to $114.6 million for the same period in 2019.

Normalized Adjusted Net Income, removing one-time integration costs and non-cash items, increased 355.4% to $234.0 million for this quarter, compared to $51.4 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 $1.18 for this quarter, compared to $0.27 for the same period in 2019.

Full Year 2020:

Total revenues increased 113.5% to $3,239.3 million for this year, also impacted by the heightened levels of volatility, bid-ask spreads and trading volumes across global markets and asset classes due to the COVID-19 pandemic, compared to $1,517.5 million for 2019. Trading income, net, increased 173.3% to $2,493.2 million for this year, compared to $912.3 million for 2019. Net income was $1,120.9 million for this year compared to a net loss of $103.7 million for 2019, which included costs related to the ITG acquisition.

Basic earnings per share for this year was $5.19 and diluted earnings per share was $5.16, compared to a basic and diluted loss per share of $0.53 for 2019.

Adjusted Net Trading Income increased 133.0% to $2,271.4 million for this year, compared to $974.7 million for 2019. Adjusted EBITDA increased 281.6% to $1,648.0 million for this year, compared to $431.9 million for 2019.

Normalized Adjusted Net Income, removing one-time integration costs and non-cash items, increased 511.2% to $1,135.1 million for this year, compared to $185.7 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 $5.76 for 2020, compared to $0.96 for 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 months and years ended December 31, 2020 and 2019.

inancial Condition

As of December 31, 2020, Virtu had $1,007.0 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,670.4 million.

Expansion of Share Repurchase Program

In November 2020, the Virtu Financial, Inc. Board of Directors approved a share repurchase program for $100 million Class A common stock and common units of Virtu Financial LLC by December 31, 2021. Since inception of the program, the Company repurchased approximately 2.1 million shares of Class A Common Stock and Virtu Financial Units for approximately $49.9 million.

In January 2021, the Virtu Financial, Inc. Board of Directors approved the expansion of the share repurchase program, increasing the total amount authorized by $70 million to $170 million.

The Company has approximately $120 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

Website Information

We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.