EX-99.1 2 a08-13189_1ex99d1.htm EX-99.1

 

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

Investment Technology Group Reports Record First Quarter
2008 Results

 

NEW YORK, NY, May 1, 2008 — Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology-based trading services and transaction research, today announced that for the first quarter ended March 31, 2008, net income was $33.0 million, up 34 percent from net income of $24.7 million in the first quarter of 2007. Earnings were $0.75 per diluted share, an increase of 36 percent versus earnings of $0.55 per diluted share in the first quarter of last year. ITG’s total revenue for the first quarter of 2008 was $204.3 million, 21 percent greater than total revenue of $168.9 million for the first quarter of 2007. Pre-tax margins in the first quarter were 28.9 percent in 2008, a significant increase over the 25.1 percent realized in 2007.

 

“ITG’s revenues showed continued strength in the first quarter of 2008, as our geographical expansion and product diversification became key advantages for the firm,” said Bob Gasser, ITG’s Chief Executive Officer and President. “ITG’s results clearly show that our business has built solid foundations both domestically and internationally and can thrive in various market conditions.”

 

ITG’s non-US revenues were $49.9 million in the first quarter of 2008, a 33 percent increase over revenues of $37.4 million in the first quarter of 2007. Non-US pre-tax income increased to $5.1 million in the first quarter of 2008 from $4.1 million in the first quarter of 2007.

 

“Despite the European and Asian market downturn, ITG continued to make progress on the expansion of its globalization strategy,” said Mr. Gasser.

 

Conference Call

 

ITG has scheduled a conference call today at 11:00 a.m. ET to discuss first quarter results. Those wishing to listen to the call should dial 1-866-356-4123 and enter the pass code 93398330 at least 10 minutes prior to the start of the call to ensure connection.  The conference call and webcast will also be accessible through ITG’s web site at www.itg.com.  For those unable to listen to the live broadcast of the call, a replay will be available for one week by dialing 1-888-286-8010 and entering the pass code 70323593. The replay will be available starting approximately two hours after the completion of the conference call.

 

 


 

 

ABOUT ITG

 

Investment Technology Group, Inc. (ITG), is a specialized brokerage firm that partners with clients globally to provide innovative solutions spanning the entire trading process.  A pioneer in electronic trading, ITG has a unique approach that combines pre-trade, order management, trade execution, and post-trade tools to provide continuous improvements in trading and cost efficiency. The firm is headquartered in New York and maintains offices in North America, Europe and the Asia Pacific regions. For additional information, visit www.itg.com.

 

In addition to historical information, this press release may contain “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995, that reflect management’s expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include the company’s ability to achieve expected future levels of sales; the actions of both current and potential new competitors; rapid changes in technology; financial market volatility; general economic conditions in the United States and elsewhere; evolving industry regulation; cash flows into or redemption from equity funds; effects of inflation; customer trading patterns; and new products and services. These and other risks are described in greater detail in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and other documents filed with the Securities and Exchange Commission and available on the company’s web site.

 

 

 

Investor and Media Relations Contact:
 

Alicia Curran

(212) 444-6130

 

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INVESTMENT TECHNOLOGY GROUP, INC.

Consolidated Statements of Income

(In thousands, except per share amounts)

 

 

 

 

Three Months Ended
March 31,

 

 

 

2008

 

2007

 

Revenues:

 

 

 

 

 

Commissions

 

$

176,227

 

$

143,913

 

Recurring

 

21,645

 

19,182

 

Other

 

6,406

 

5,833

 

Total revenues

 

204,278

 

168,928

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Compensation and employee benefits

 

67,628

 

58,515

 

Transaction processing

 

24,349

 

25,326

 

Occupancy and equipment

 

13,100

 

11,220

 

Telecommunications and data processing services

 

12,750

 

9,134

 

Other general and administrative

 

25,185

 

19,606

 

Interest expense

 

2,213

 

2,785

 

Total expenses

 

145,225

 

126,586

 

Income before income tax expense

 

59,053

 

42,342

 

Income tax expense

 

26,065

 

17,632

 

Net income

 

$

32,988

 

$

24,710

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

Basic

 

$

0.76

 

$

0.56

 

Diluted

 

$

0.75

 

$

0.55

 

 

 

 

 

 

 

Basic weighted average number of common shares outstanding

 

43,629

 

44,074

 

Diluted weighted average number of common shares outstanding

 

44,231

 

44,838

 

 

 

 

 

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INVESTMENT TECHNOLOGY GROUP, INC.

Consolidated Statements of Financial Condition

(In thousands, except share amounts)

 

 

 

 

March 31,
2008

 

December 31,
2007

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

265,811

 

$

183,757

 

Cash restricted or segregated under regulations and other

 

55,145

 

71,300

 

Deposits with clearing organizations

 

41,272

 

43,284

 

Securities owned, at fair value

 

10,992

 

8,022

 

Receivables from brokers, dealers and clearing organizations

 

1,037,109

 

551,059

 

Receivables from customers

 

1,152,371

 

676,522

 

Premises and equipment, net

 

45,834

 

45,886

 

Capitalized software, net

 

55,321

 

50,892

 

Goodwill

 

422,567

 

422,774

 

Other intangibles, net

 

30,631

 

31,318

 

Deferred taxes

 

4,543

 

2,282

 

Other assets

 

12,369

 

13,791

 

Total assets

 

$

3,133,965

 

$

2,100,887

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Liabilities:

 

 

 

 

 

Accounts payable and accrued expenses

 

$

185,154

 

$

186,463

 

Short-term bank loans

 

35,000

 

101,400

 

Payables to brokers, dealers and clearing organizations

 

1,104,551

 

497,124

 

Payables to customers

 

906,778

 

457,105

 

Securities sold, not yet purchased, at fair value

 

551

 

859

 

Income taxes payable

 

34,587

 

18,320

 

Deferred taxes

 

1,977

 

2,821

 

Long term debt

 

123,000

 

132,500

 

Total liabilities

 

2,391,598

 

1,396,592

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding

 

—

 

—

 

Common stock, $0.01 par value; 100,000,000 shares authorized; 51,540,282 and 51,503,221 shares issued at March 31, 2008 and December 31, 2007, respectively and 43,702,060 and 43,462,885 shares outstanding at March 31, 2008 and December 31, 2007, respectively

 

515

 

515

 

Additional paid-in capital

 

212,069

 

210,071

 

Retained earnings

 

684,665

 

651,677

 

Common stock held in treasury, at cost; 7,838,222 and 8,040,336 shares at March 31, 2008 and December 31, 2007, respectively

 

(174,360

)

(177,928

)

Accumulated other comprehensive income (net of tax)

 

19,478

 

19,960

 

Total stockholders’ equity

 

742,367

 

704,295

 

Total liabilities and stockholders’ equity

 

$

3,133,965

 

$

2,100,887

 

 

 

 

 

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