Virtu Financial, Inc. · NYSE:VIRT
Virtu Financial — Q1 2021 Earnings Presentation
21 slides from Virtu Financial's earnings presentation, 2021
Slide 1: First Quarter 2021 Earnings Presentation
Presentation Title in First Quarter 2021 Title Case Earnings Presentation Presentation subtitle in sentence case Presenter Name Event name xx Month 201x © 201X Virtu Financial. All rights reserved. Not to be reproduced or retransmitted without permission. Compliance #XXXX-XXXX © 2021 Virtu Financial
Slide 2: First Quarter Highlights
First Quarter Highlights Share repurchase authorization increased by $300 million Adj. NTI1 Normalized Adj. EPS1 1Q 2021 Highlights $728.0M $2.04 • Record Adj. EBITDA1 margin • All-time high quarterly VES Adj. NTI1 Adj. NTI/day1 Adj. EBITDA1 • Market making continued strong performance driven $11.93
Slide 3: Key Financial Metrics
Key Financial Metrics Sustained performance elevated by growth initiatives and long-term secular trends Full Year 1Q 2021 vs 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 ($M) 2020 4Q 2020 1Q 2020 1 Total Adjusted Net Trading Income $784 $669 $362 $456 $2,271 $728 + 60% - 7% Daily Average Adj. NTI 1 $12.7
Slide 4: Organic Initiatives Contribute to Growth and Strong Performance
Organic Initiatives Contribute to Growth and Strong Performance $942K/day CAGR2 +120% Daily Average Adj. Net Trading Income1 $656K/day of Organic Growth Initiatives $296K/day $160K/day FY 2018 FY 2019 FY 2020 1Q 2021 % of Adj. NTI1 4% 8% 7% 8% $M of Adj. NTI1 $40 $75 $166 $57 Growth in Existing Mark
Slide 5: Capital Management
Capital Management Scaled business model delivers superior return on capital Steady Payout in All Environments Share Buybacks1 Dividends declared per share and adjusted earnings per share per quarter Shares outstanding (million shares) and share repurchases ($ million) per quarter $2.05 $2.04 $140 W
Slide 6: Operating Expenses and Long Term Debt
Operating Expenses and Long Term Debt Disciplined focus on expense management Adj. Operating Expense Forecast Full Year Full Year 1Q FY 2021 ($M) 2019 2020 2021 Guidance Cash Compensation 230 320 90 270 - 280 Comms & Data Processing, Ops & Admin 313 304 73 273 - 298 Adjusted Cash Operating Expenses
Slide 7: GAAP Reconciliations and Other Information
GAAP Reconciliations and Other Information
Slide 8: Virtu Execution Services (VES) Today
Virtu Execution Services (VES) Today Global platform integrates liquidity, execution, workflow & analytics solutions Provides products and services to By the Numbers 41/50 ofbased the largest institutions globally on assets under management 40+ products Engages globally across multiple products of c
Slide 9: Share Count Roll Forward
Share Count Roll Forward Share count roll forward does not include actual or anticipated share (M shares) Total Shares1 repurchases after 4/30/2021 PF shares outstanding as of 9/30/2020 197.1 4Q 20 Shares repurchased (1.4) 4Q 20 Vested shares (netted) (0.1) PF shares outstanding as of 12/31/2020 195
Slide 10: Major Market Metrics
Major Market Metrics 1Q 2021 v 1Q 2021 v 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 Q1 2021 4Q 2020 1Q 2020 Market Metrics (Average Daily) Volume Metrics US Equity Consolidated Volume (mm shares) 10,972 12,352 9,942 10,454 10,924 14,650 + 40% + 34% U.S. OTC Equity Volume (mm $ notional) 1,939 1,729 1,4
Slide 11: GAAP Income Statement
GAAP Income Statement Income Statement FY 2018 FY 20191 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 ($mm) Trading income, net $1,267 $912 $802 $744 $441 $505 $2,493 $813 Commissions, net and technology services 184 499 171 148 134 148 601 192 Interest and dividends income 88 109 27 9 11 15 62 7
Slide 12: GAAP Balance Sheet
GAAP Balance Sheet Assets Liabilities and Equity 3/31/2021 3/31/2021 ($M) ($M) Cash & cash equivalents 899 Short term borrowings 240 Cash and securities segregated under federal regulations 123 Securities loaned 1,192 Securities borrowed 1,384 Securities sold under agreement to repurchase 410 Securi
Slide 13: Adjusted EBITDA & Normalized Adjusted EPS
Adjusted EBITDA & Normalized Adjusted EPS (excludes ITG prior to 3/1/19) Adj. EBITDA / Adj. EPS FY 2018 FY 20191 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 ($M) Income (Loss) Before income taxes $696 ($116) $466 $405 $253 $260 $1,383 $490 (+) Financing interest expense 72 122 26 22 20 20 88 19
Slide 14: Trading Capital and Invested Capital
Trading Capital and Invested Capital Invested Capital ($M) As of: 3/31/191 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 Trading Capital 1,714 1,631 1,637 1,604 1,997 2,141 1,981 2,075 2,266 (-) Cash reserved for operations, taxes payable, and other accrued and (20) (35) (56) (77
Slide 15: Adjusted Net Trading Income Reconciliation
Adjusted Net Trading Income Reconciliation Operating segments Adjusted Net Trading Income Reconciliation Market Making ($M) 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Trading income, net 803 745 442 466 801 Commissions, net and technology services 1 (1) 9 43 14 Brokerage, exchange, clearance fees and p
Slide 16: Adjusted Net Trading Income Reconciliation
Adjusted Net Trading Income Reconciliation Organic growth initiatives Adjusted Net Trading Income Reconciliation Organic Growth Initiatives ($M) 2018 2019 2020 1Q 2021 Trading income, net 36 77 246 62 Commissions, net and technology services 7 11 23 13 Brokerage, exchange, clearance fees and payment
Slide 17: Adjusted Operating Expense Reconciliation
Adjusted Operating Expense Reconciliation Adjusted Operating Expenses Reconciliation 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 FY 20191 FY 2020 ($M) Employee compensation and payroll taxes $170 $121 $36 $66 $105 $384 $394 Operations and administrative $27 $22 $25 $21 $26 $104 $95 Communications and da
Slide 18: Disclaimer
Disclaimer Cautionary Statement Regarding Forward Looking Statements This presentation may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s
Slide 19: End Notes
End Notes These notes refer to metrics and/or defined terms presented on: Slide 2 1. This reflects a non-GAAP measure. Please refer to slides at the end of this presentation for reconciliation to the equivalent GAAP measure. 2. Adj. EBITDA margin is calculated as Adjusted EBITDA / Adj. Net Trading I
Slide 20: End Notes—continued
End Notes—continued These notes refer to metrics and/or defined terms presented on: Slide 5 continued 2. Represents share repurchases, share count, and weighted average share count as of Apr 30, 2021 3. “Return on Invested Capital” is calculated as LTM Pro Forma Adjusted EBITDA divided by the LTM In
Slide 21: End Notes—continued
End Notes—continued These notes refer to metrics and/or defined terms presented on: Slide 11 1. ITG revenues and expenses included in financials beginning on March 1, 2019 close date. Prior period reconciliations available at ir.virtu.com Slide 12 1. Prior period reconciliations available at ir.virt