Comparing to Q1 2012 FXAll’s volume rose 6.5% and Revenues increase by 4.7% while Net Income was up as much as 35%.
FX Alliance Inc. (“FXall”) (NYSE: FX), the leading independent global provider of electronic foreign exchange trading solutions, today reported financial results for the second quarter of 2012.
For the second quarter of 2012, revenues increased 7% to $31.4 million from $29.4 million in the second quarter of 2011. Adjusted Net Income decreased 3% to $6.9 million, or $0.23 per share, from $7.1 million or $0.25 per share for the same period last year. Net Income of $6.2 million was consistent with the same period last year. For the six months ended June 30, 2012, revenues increased 8% to $61.4 million from $56.8 million in the same period in 2011. Adjusted Net Income decreased 7% to $12.0 million for the six months ended June 30, 2012, compared to $13.0 million in the same period last year. Net Income for the six months ended June 30, 2012 decreased 5% to $10.8 million from $11.4 million in the same period last year. A full reconciliation of GAAP to non-GAAP financial measures is included with this release.
Total average daily volume (counting one side of each trade) was $92.4 billion, an increase of 8% from the second quarter of 2011, driven by growth across both Relationship and Active trading. Average daily volume for Relationship Trading was $71.5 billion, 5% higher than the second quarter of 2011, while average daily volume for Active Trading increased 18% from the second quarter of 2011 to $20.8 billion. The average transaction fee per million in the second quarter of 2012 was $4.06, reflecting $3.51 for Relationship Trading and $5.94 for Active Trading.
Operating expenses were $20.9 million, 13% higher than Q2 2011. Adjusted EBITDA was $14.2 million, down from $14.8 million in Q2 2011. The Adjusted EBITDA margin was 45% compared to 50% in the second quarter of 2011.
The effective tax rate for the second quarter was 39.8% compared to 42.8% in the second quarter of 2011.
Capital expenditures for the quarter ended June 30, 2012 were $3.9 million, consistent with the same period in 2011.
At June 30, 2012, cash, cash equivalents and investments available-for-sale were $68.8 million.
| Three Months Ended June 30 | Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Revenues | ||||
| Transaction fees | $23,987 | $22,821 | $46,792 | $43,336 |
| User, settlement, and license fees | 7,409 | 6,608 | 14,625 | 13,477 |
| Total revenues | 31,396 | 29,429 | 61,417 | 56,813 |
| Operating Expenses | ||||
| Salaries and benefits | 12,703 | 12,460 | 26,814 | 24,590 |
| Technology | 1,940 | 1,448 | 3,838 | 3,032 |
| General and administrative | 1,989 | 1,523 | 4,100 | 2,992 |
| Marketing | 355 | 356 | 696 | 789 |
| Professional fees | 1,295 | 351 | 2,640 | 778 |
| Depreciation and amortization | 2,657 | 2,434 | 5,227 | 4,866 |
| Total operating expenses | 20,939 | 18,572 | 43,315 | 37,047 |
| Operating income | 10,457 | 10,857 | 18,102 | 19,766 |
| Interest and other income (expense), net | (122) | 51 | (80) | 141 |
| Income before income taxes | 10,335 | 10,908 | 18,022 | 19,907 |
| Provision for income taxes | 4,116 | 4,673 | 7,179 | 8,527 |
| Net income | 6,219 | 6,235 | 10,843 | 11,380 |
| Accretion and allocated earnings of preferred stock | - | 2,954 | 1,276 | 5,604 |
| Net income allocated to common stockholders | $6,219 | $3,281 | $9,567 | $5,776 |
| Earnings per common share: | ||||
| Basic | $0.22 | $0.16 | $0.36 | $0.27 |
| Diluted | $0.21 | $0.15 | $0.35 | $0.27 |
| Weighted-average common shares outstanding: | ||||
| Basic | 28,336,566 | 21,043,899 | 26,769,958 | 21,043,899 |
| Diluted | 29,433,797 | 21,582,989 | 27,712,678 | 21,517,390 |
| Net Income per common share including | ||||
| conversion of preferred at beginning of period: | ||||
| Basic[1] | $0.22 | $0.22 | $0.38 | $0.40 |
| Diluted[1] | $0.21 | $0.22 | $0.37 | $0.40 |
| Adjusted Net Income per common share | ||||
| including conversion of preferred at beginning of period: | ||||
| Basic[1] | $0.24 | $0.25 | $0.43 | $0.46 |
| Diluted[1] | $0.23 | $0.25 | $0.41 | $0.45 |
| Adjusted Weighted-average common shares outstanding | ||||
| including conversion of preferred at beginning of period: | ||||
| Basic[1] | 28,336,566 | 28,284,637 | 28,321,545 | 28,284,637 |
| Diluted[1] | 29,433,797 | 28,823,727 | 29,264,265 | 28,758,128 |
| [1] Figures reflect non-GAAP financial measures |
