Slide 1: BGC Partners, Inc. Earnings Presentation 3Q2019
BGC PARTNERS, INC. NASDAQ: BGCP Earnings Presentation 3Q2019
Slide 2: Disclaimer
DISCLAIMER 2 Discussion of Forward-Looking Statements about BGC Statements in this document regarding BGC that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statem
Slide 3: Disclaimer (Continued)
DISCLAIMER (CONTINUED) 3 Unless otherwise stated, all results provided in this document compare the third quarter of 2019 with the year-earlier periods. Certain reclassifications may have been made to previously reported amounts to conform to the current presentation and to show results on a consist
Slide 4: Disclaimer (Continued)
DISCLAIMER (CONTINUED) 4 Non-GAAP Financial Measures This document contains non-GAAP financial measures that differ from the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). Non-GAAP financial measur
Slide 5: General Overview
ml BGC PARTNERS, INC. 7 bge (5 %F' Fenics GENERAL OVERVIEW
Slide 6: Select Consolidated Adjusted Earnings Financial Results
SELECT CONSOLIDATED ADJUSTED EARNINGS FINANCIAL RESULTS 6 Highlights of Consolidated Adjusted Earnings Results from Continuing Operations (USD 3Q2019 3Q2018 Change (%) thousands, except per share data) Revenues $521,137 $455,642 14.4% Pre-tax Adjusted Earnings 87,660 89,473 (2.0)% Post-tax Adjusted
Slide 7: Revenue Breakdown by Geography
REVENUE BREAKDOWN BY GEOGRAPHY 7 3Q 2019 Global Revenues were $521.1 million APAC 16% Americas 29% 3Q2019 EMEA 55% ▪ Asia Pacific revenue up 20% in 3Q2019 ▪ Europe, Middle East & Africa revenue up 17% in 3Q2019 ▪ Total Americas revenue up 7% in 3Q2019 ▪ 3Q2019 revenues would have been approximately
Slide 8: 3Q2019 Revenue Breakdown by Asset Class
3Q2019 REVENUE BREAKDOWN BY ASSET CLASS 8 3Q2019 total revenues were $521.1 million BGC’s Businesses at a Glance ▪ BGC maintains a highly diverse revenue base ▪ Revenues increased across rates, Data, software and equities, insurance, and other post-trade and other , Rates , 30% asset classes, credit
Slide 9: BGC's Front Office Headcount & Productivity
BGC’S FRONT OFFICE HEADCOUNT & PRODUCTIVITY 9 FRONT OFFICE HEADCOUNT FRONT OFFICE PRODUCTIVITY (as of period-end) (period-average, USD Thousands) 748 721 756 2,923 2,927 2,940 676 2,486 2,654 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 TTM TTM FY 2017 FY 2018 3Q18 3Q19 ▪ Average revenue per front office
Slide 10: Business Overview 3Q2019 vs. 3Q2018
BUSINESS OVERVIEW 3Q2019 VS. 3Q2018 10 Revenue Highlights Revenue Breakdown (USD $000s) ▪ Total revenues increased 14% YoY $521,137 $18,155 $455,642 $18,364 ▪ Rates revenues up 29% $13,766 $96,644 $81,272 $16,547 ▪ Energy and commodities revenues increased 25% Other $72,335 $57,974 ▪ Revenues from e
Slide 11: Business Overview: Fenics
BUSINESS OVERVIEW: FENICS 11 Fenics Net Revenue Growth1 3Q2019 Fenics Revenue Breakdown (USD millions) $279 $261 $223 $209 Data, software and Data, software $192 post trade (inter- and post trade company) 20% Equities and 23% other 1% $101 $81 FX $71 $78 9% $48 Rates 26% Credit 19% FY10 FY11 FY12 FY
Slide 12: BGC's Fenics (Fully Electronic) Revenue Growth
BGC’S FENICS (FULLY ELECTRONIC) REVENUE GROWTH 12 Fenics (Fully Electronic) Revenues (USD 000s) 350,000 $325,385 300,000 64,278 $276,866 250,000 54,015 Fenics net revenues up 12% YoY 65,185 Fenics total revenues up 16% YoY 200,000 54,557 150,000 100,000 195,922 $75,062 $87,069 168,294 20,245 15,135
Slide 13: Outlook
ml BGC PARTNERS, INC. OUTLOOK
Slide 14: Outlook
OUTLOOK 14 Metric Guidance Actual 4Q19 4Q18 Revenues (USD millions) $465 to $505 $466.4 Adjusted Earnings before noncontrolling interest in subsidiaries $63 to $79 $86.3 and taxes (USD millions) FY 2019 FY 2018 Adjusted Earnings Tax Rate (%) 11% to12% 11.7% Year-end Fully Diluted Spot Share Count Gr
Slide 15: GAAP Financial Results
ml BGC PARTNERS, INC. GAAP FINANCIAL RESULTS
Slide 16: Condensed Consolidated Statements of Financial Condition
BGC PARTNERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) September 30, December 31, 16 2019 2018 Assets Cash and cash equivalents $ 413,951 $ 336,535 Cash segregated under regulatory requirements 223,529 80,243 Securit
Slide 17: Condensed Consolidated Statements of Operations
BGC PARTNERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) Three Months Ended September 30, Nine Months Ended September 30, 17 Revenues: 2019 2018 2019 2018 Commissions $ 409,082 $ 351,969 $ 1,259,571 $ 1,138,313 Principal transa
Slide 18: Condensed Consolidated Statements of Operations - Continued
BGC PARTNERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - CONTINUED (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) 18 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Per share data: Basic earnings (loss) per share from continuing operat
Slide 19: Appendix
ml BGC PARTNERS, INC. APPENDIX
Slide 20: Strongly Capitalized; Investment Grade Credit Profile
STRONGLY CAPITALIZED; INVESTMENT GRADE CREDIT PROFILE 20 (USD $000s) BGC Partners, Inc. As of 9/30/2019 Cash and Cash Equivalents $413,951 Repurchase Agreements (1,895) Securities Owned 60,398 Marketable Securities (net) 220 Total Liquidity 1 $472,674 Maturity Unsecured senior revolving credit agree
Slide 21: BGC's Fully Diluted Share Count Summary as of September 30, 2019
BGC’S FULLY DILUTED SHARE COUNT SUMMARY AS OF SEPTEMBER 30, 2019 21 (share count in millions) BGC Partners, Inc. Fully Diluted Share Count Summary Fully-diluted Ownership (as of September 30, 2019) Shares (MN) (%) Class A owned by Public 284.1 54% Class A owned by executives, board members and emplo
Slide 22: Fenics Revenues
FENICS REVENUES 22 Quarterly Fenics Revenues1 (3Q2016-3Q2019) 100 93 93 (USD millions) 87 90 86 85 80 80 73 75 71 70 67 66 61 60 53 59 48 60 53 53 46 43 50 46 45 40 38 36 35 40 30 19 18 15 15 17 18 18 20 13 13 13 13 14 14 10 18 16 17 21 20 13 12 14 13 13 14 15 15 0 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017
Slide 23: 3Q2019 Industry Volumes Were Generally Up
3Q2019 INDUSTRY VOLUMES WERE GENERALLY UP 23 4Q2019TD Change in Capital Markets Activity 3Q2019: Yr/Yr Change in Capital Markets Activity1,2 (10/1/19-10/18/19)2,3 (ADV excl. Eurex Equity Derivatives) (ADV excl. European Equities) FX Futures (CME) (10%) European Equities (26%) Refinitiv (Thomson Reut
Slide 24: Average Exchange Rates
AVERAGE EXCHANGE RATES 24 Currency 3Q2019 3Q2018 October 1 – October 15, 2019 October 1 – October 15, 2018 US Dollar 1.000 1.000 1.000 1.000 British Pound 1.233 1.303 1.244 1.310 Euro 1.112 1.163 1.099 1.153 Hong Kong Dollar 0.128 0.127 0.128 0.128 Singapore Dollar 0.727 0.731 0.726 0.725 Japanese Y
Slide 25: Differences Between Non-GAAP and GAAP Consolidated Results
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 25 Non-GAAP Financial Measures This document contains non-GAAP financial measures that differ from the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United State
Slide 26: Differences Between Non-GAAP and GAAP Consolidated Results [Continued]
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS [CONTINUED] 26 The amount of certain quarterly equity-based compensation charges are based upon the Company’s estimate of such expected charges during the annual period, as described further below under “Methodology for Calculating Adjusted
Slide 27: Differences Between Non-GAAP and GAAP Consolidated Results [Continued]
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS [CONTINUED] 27 Methodology for Calculating Adjusted Earnings Taxes Although Adjusted Earnings are calculated on a pre-tax basis, BGC also reports post-tax Adjusted Earnings to fully diluted shareholders. The Company defines post-tax Adjusted
Slide 28: Differences Between Non-GAAP and GAAP Consolidated Results [Continued]
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS [CONTINUED] 28 Calculations of Pre- and Post-Tax Adjusted Earnings per Share BGC’s pre- and post-tax Adjusted Earnings per share calculations assume either that: ▪ The fully diluted share count includes the shares related to any dilutive ins
Slide 29: Differences Between Non-GAAP and GAAP Consolidated Results [Continued]
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS [CONTINUED] 29 Adjusted EBITDA Defined BGC also provides an additional non-GAAP financial performance measure, “Adjusted EBITDA”, which it defines as GAAP “Net income (loss) from continuing operations available to common stockholders”, adjus
Slide 30: Differences Between Non-GAAP and GAAP Consolidated Results [Continued]
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS [CONTINUED] 30 ▪ Certain equity-based compensation charges that may be determined at the discretion of management throughout and up to the period-end; ▪ Unusual, one-time, non-ordinary, or non-recurring items; ▪ The impact of gains or losses
Slide 31: Reconciliation of GAAP Income to Adjusted Earnings
RECONCILIATION OF GAAP INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES TO ADJUSTED EARNINGS FROM CONTINUING OPERATIONS AND GAAP FULLY DILUTED EPS FROM CONTINUING OPERATIONS TO POST- TAX ADJUSTED EPS FROM CONTINUING OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) 31 Q3 2019
Slide 32: Reconciliation of GAAP Income to Adjusted Earnings (Notes)
RECONCILIATION OF GAAP INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES TO ADJUSTED EARNINGS FROM CONTINUING OPERATIONS AND GAAP FULLY DILUTED EPS FROM CONTINUING OPERATIONS TO POST- TAX ADJUSTED EPS FROM CONTINUING OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) 32 (1) GAAP
Slide 33: Reconciliation of GAAP Net Income to Adjusted EBITDA
RECONCILIATION OF GAAP NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS (IN THOUSANDS) (UNAUDITED) 33 Q3 2019 Q3 2018 GAAP net income (loss) from continuing operations available to common stockholders $ (3,529) $ 31,610 Add back: Provision (benefit) for inco
Slide 34: Liquidity Analysis from Continuing Operations
LIQUIDITY ANALYSIS FROM CONTINUING OPERATIONS (IN THOUSANDS) (UNAUDITED) 34 September 30, 2019 December 31, 2018 Cash and cash equivalents $ 413,951 $ 336,535 Repurchase agreements (1,895) (986) Securities owned 60,398 58,408 Marketable securities (1) 220 16,924 Total Liquidity $ 472,674 $ 410,881 (
Slide 35: Fully Diluted Weighted-Average Share Count Under GAAP and Adjusted Earnings
FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT UNDER GAAP AND FOR ADJUSTED EARNINGS FROM CONTINUING OPERATIONS (IN THOUSANDS) (UNAUDITED) 35 Q3 2019 Q3 2018 Common stock outstanding 346,060 327,932 Limited partnership units - 95,406 Founding partner units - 12,149 RSUs - 301 Other - 1,300 Fully diluted
Slide 36: Media and Investor Contacts
36 36 Media Contact: Karen Laureano-Rikardsen +1 212-829-4975 Investor Contact: Ujjal Basu Roy or Jason McGruder ir.bgcpartners.com twitter.com/bgcpartners +1 212-610-2426 linkedin.com/company/bgc-partners