NEW YORK, Jan. 08, 2019 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (VIRT) (“Virtu”), a leading technology-enabled market maker and liquidity provider to the global financial markets, in connection with the planned marketing of its institutional term loan in connection with the acquisition of Investment Technology Group, Inc. (“ITG”), today announced preliminary estimates of its results of operations for the quarter ended December 31, 2018. The closing of ITG is expected to occur in the first half of 2019, subject to the approval of ITG’s shareholders, receipt of all required regulatory approvals and the satisfaction of other customary closing conditions.
Actual results for the quarter are expected to be reported in early February.
On a preliminary estimated basis, Virtu expects its results of operations for the quarter ended December 31, 2018 to reflect:
Net income between $100 million and $129 million and Adjusted EBITDA* between $180 million and $195 million
Total revenues between $424 million and $447 million; Trading income, net between $350 million and $364 million; Adjusted Net Trading Income* between $285 million and $298 million
“These preliminary results reflect the strong market conditions that prevailed in the fourth quarter, as well as the continued integration of Virtu and KCG businesses. We will report full results in early February, however, these preliminary results reflect strong performance across all business lines and asset classes,” said Douglas Cifu, Chief Executive Officer of Virtu Financial.
* Non-GAAP financial measures. Please see “Non-GAAP Financial Measures and Other Items” for more information.
Trading income, net, is expected to be between $350 million and $364 million, representing an increase of 22.1% to 27.0% from trading income, net of $286.4 million for the same period in 2017. Adjusted Net Trading Income is expected to be between $285 million and $298 million, representing an increase of 20.1% to 25.6% from Adjusted Net Trading Income of $237.3 million for the same period in 2017. Total revenues are expected to be between $424 million and $447 million, representing a decrease of 3.8% to 8.7% from revenues of $464.5 million for the same period in 2017. The expected decrease is attributable to the reversal of a tax liability in the fourth quarter 2017 in the amount of $86.6 million resulting from the Tax Cuts and Jobs Act of 2017. Excluding the impact of the reversals on the results of the prior period, revenues are expected to increase 12.2% to 18.3%. The expected increases in total revenues adjusted for the impact of the tax liability reversal, Adjusted Net Trading Income and trading income, net were attributable to an increase in volumes and overall volatility in certain of the markets in which we participate.
Adjusted EBITDA for the three months ended December 31, 2018 is expected to be between $180 million and $195 million, representing an increase of between 66.8% and 80.7% compared to Adjusted EBITDA of $107.9 million for the same period in 2017. Net income is expected to be between $100 million and $129 million for this quarter, compared to $33.4 million for the same period in 2017, for an increase of 199% to 286%. The expected increases in Adjusted EBITDA and net income were attributable to an increase in volumes and overall volatility in certain of the markets in which we participate as well as the continued integration and realization of expense synergies in relation to our acquisition of KCG Holdings, Inc. on July 20, 2017.