Parent Company |
Parent Company VFI is the sole managing member of Virtu Financial, which guarantees the indebtedness of its direct subsidiary under the First Lien Term Loan Facility (see Note 11 "Borrowings"). VFI is limited to its ability to receive distributions (including for purposes of paying corporate and other overhead expenses and dividends) from Virtu Financial under the Credit Agreement. The following financial statements (the “Parent Company Only Financial Statements”) should be read in conjunction with the consolidated financial statements of the Company and the foregoing.
Virtu Financial, Inc. (Parent Company Only) Condensed Statements of Financial Condition | | | | | | | | | | | | (In thousands except interest data) | December 31, 2020 | | December 31, 2019 | Assets | | | | Cash | $ | 71,481 | | | $ | 4,650 | | Deferred tax asset | 183,549 | | | 197,792 | | Investment in subsidiary | 3,126,502 | | | 2,689,026 | | Other assets | 82,917 | | | 33,653 | | Total assets | $ | 3,464,449 | | | $ | 2,925,121 | | | | | | Liabilities, redeemable membership interest and equity | | | | Liabilities | | | | Payable to affiliate | $ | 1,724,046 | | | $ | 1,724,465 | | Accounts payable and accrued expenses and other liabilities | 698 | | | — | | Tax receivable agreement obligations | 271,165 | | | 269,282 | | Total liabilities | 1,995,909 | | | 1,993,747 | | | | | | Virtu Financial Inc. Stockholders' equity | | | | | | | | | | | | Class A common stock (par value $0.00001), Authorized — 1,000,000,000 and 1,000,000,000 shares, Issued — 125,627,277 and 120,435,912 shares, Outstanding — 122,012,180 and 118,257,141 shares at December 31, 2020 and December 31, 2019, respectively | 1 | | | 1 | | Class B common stock (par value $0.00001), Authorized — 175,000,000 and 175,000,000 shares, Issued and Outstanding — 0 and 0 shares at December 31, 2020 and December 31, 2019, respectively | — | | | — | | Class C common stock (par value $0.00001), Authorized — 90,000,000 and 90,000,000 shares, Issued and Outstanding — 10,226,939 and 12,887,178 shares at December 31, 2020 and December 31, 2019, respectively | — | | | — | | Class D common stock (par value $0.00001), Authorized — 175,000,000 and 175,000,000 shares, Issued and Outstanding — 60,091,740 and 60,091,740 shares at December 31, 2020 and December 31, 2019, respectively | 1 | | | 1 | | Treasury stock, at cost, 3,615,097 and 2,178,771 shares at December 31, 2020 and December 31, 2019, respectively | (88,923) | | | (55,005) | | Additional paid-in capital | 1,160,567 | | | 1,075,779 | | Retained earnings (accumulated deficit) | 422,381 | | | (88,755) | | Accumulated other comprehensive income (loss) | (25,487) | | | (647) | | Total Virtu Financial Inc. stockholders' equity | 1,468,540 | | | 931,374 | | | | | | Total liabilities and stockholders' equity | $ | 3,464,449 | | | $ | 2,925,121 | |
Virtu Financial, Inc. (Parent Company Only) Condensed Statements of Comprehensive Income | | | | | | | | | | | | | | | | | | | Years Ended December 31, | (in thousands) | 2020 | | 2019 | | 2018 | Revenues: | | | | | | | | | | | | Other Income | $ | — | | | $ | — | | | $ | — | | | — | | | — | | | — | | | | | | | | Operating Expenses: | | | | | | Operations and administrative | 171 | | | 3 | | | 1 | | | | | | | | Income (loss) before equity in income of subsidiary | (171) | | | (3) | | | (1) | | Equity in income (loss) of subsidiary, net of tax | 1,121,084 | | | (29,416) | | | 620,193 | | Net income (loss) | $ | 1,120,913 | | | $ | (29,419) | | | $ | 620,192 | | | | | | | | Net income (loss) attributable to common stockholders | $ | 1,120,913 | | | $ | (29,419) | | | $ | 620,192 | | Other comprehensive income (loss): | | | | | | Foreign currency translation adjustment, net of taxes | 8,604 | | | (565) | | | (3,073) | | Net change in unrealized cash flow hedges gains (losses), net of taxes | (33,444) | | | — | | | — | | Comprehensive income (loss) | $ | 1,096,073 | | | $ | (29,984) | | | $ | 617,119 | |
Virtu Financial, Inc. (Parent Company Only) Condensed Statements of Cash Flows | | | | | | | | | | | | | | | | | | | Years Ended December 31, | (in thousands) | 2020 | | 2019 | | 2018 | Cash flows from operating activities | | | | | | Net income | $ | 1,120,913 | | | $ | (29,419) | | | $ | 620,192 | | | | | | | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | Equity in income of subsidiary, net of tax | (543,992) | | | 136,878 | | | (305,936) | | Tax receivable agreement obligation reduction | 15,169 | | | 54,879 | | | 79,722 | | Deferred taxes | 14,243 | | | (8,165) | | | (64,996) | | | | | | | | Changes in operating assets and liabilities: | (48,566) | | | 2,339 | | | (25,268) | | Net cash provided by operating activities | 557,767 | | | 156,512 | | | 303,714 | | | | | | | | Cash flows from investing activities | | | | | | | | | | | | Investments in subsidiaries, equity basis | 56,629 | | | 70,762 | | | 34,909 | | Net cash provided by investing activities | 56,629 | | | 70,762 | | | 34,909 | | | | | | | | Cash flows from financing activities | | | | | | | | | | | | Distribution from Virtu Financial to non-controlling interest | (363,919) | | | (99,221) | | | (206,903) | | Dividends | (120,496) | | | (112,414) | | | (100,329) | | | | | | | | Repurchase of Class C common stock | — | | | (196) | | | (8,216) | | Purchase of treasury stock | (49,864) | | | (14,259) | | | (66,218) | | Tax receivable agreement obligations | (13,286) | | | — | | | (12,359) | | | | | | | | | | | | | | Issuance of common stock in connection with secondary offering, net of offering costs | — | | | (375) | | | (950) | | | | | | | | Net cash used in financing activities | (547,565) | | | (226,465) | | | (394,975) | | | | | | | | Net increase (decrease) in Cash | 66,831 | | | 809 | | | (56,352) | | Cash, beginning of period | 4,650 | | | 3,841 | | | 60,193 | | Cash, end of period | $ | 71,481 | | | $ | 4,650 | | | $ | 3,841 | | | | | | | | Supplemental disclosure of cash flow information: | | | | | | Taxes paid | $ | 203,031 | | | $ | 1,332 | | | $ | 73,991 | | | | | | | | Non-cash financing activities | | | | | | Tax receivable agreement described in Note 7 | (1,388) | | | (5,811) | | | (911) | | | | | | | |
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