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Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2017
Segment Reporting  
Summary of the segment financial information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

U.S.

    

Canadian

    

European

    

Asia Pacific

    

 

 

    

 

 

 

 

    

Operations

    

Operations

    

Operations

    

Operations

    

Corporate

    

Consolidated

 

Three Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

47,403

 

$

15,055

 

$

36,256

 

$

15,327

 

$

490

 

$

114,531

 

(Loss) income before income tax (benefit) expense (1)

 

 

(8,994)

 

 

1,405

 

 

8,922

 

 

2,938

 

 

(6,226)

 

 

(1,955)

 

Identifiable assets

 

 

338,000

 

 

75,332

 

 

323,142

 

 

57,571

 

 

 —

 

 

794,045

 

Three Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

48,774

 

$

13,719

 

$

28,894

 

$

12,502

 

$

296

 

$

104,185

 

(Loss) income before income tax (benefit) expense (2) (3) (4) (5)

 

 

(8,528)

 

 

1,496

 

 

4,709

 

 

901

 

 

(26,376)

 

 

(27,798)

 

Identifiable assets

 

 

418,357

 

 

108,647

 

 

328,731

 

 

61,367

 

 

 —

 

 

917,102

 

Nine Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

153,559

 

$

47,521

 

$

111,707

 

$

42,990

 

$

1,170

 

$

356,947

 

(Loss) income before income tax (benefit) expense (1)

 

 

(20,628)

 

 

8,034

 

 

30,950

 

 

6,318

 

 

(17,731)

 

 

6,943

 

Nine Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

173,677

 

$

45,605

 

$

92,236

 

$

34,539

 

$

3,406

 

$

349,463

 

(Loss) income before income tax (benefit) expense (2) (3) (4) (5) (6) (7)

 

 

(9,297)

 

 

7,616

 

 

16,672

 

 

208

 

 

(56,293)

 

 

(41,094)

 

The following notes relate to Corporate activity:

 

(1)

In the third quarter of 2017, the Company deemed the remaining value of a customer intangible asset recorded in ITG Derivatives of $0.3 million fully impaired and incurred legal fees related to the establishment of the Matrix venture of $0.8 million.

 

(2)

In the third quarter of 2016, the Company accrued $22.1 million for a settlement with the SEC with respect to an inquiry involving discontinued activity in pre-released American Depositary Receipts and incurred legal fees related to this matter of $1.6 million.

 

(3)

The Company’s current CEO was granted cash and stock awards upon the commencement of his employment in January 2016, a significant portion of which replaced awards he forfeited at his former employer. The amount expensed for these awards during the three and nine month periods ended September 30, 2016 was $0.5 million and $3.8 million, respectively. Due to U.S. tax regulations, only a small portion of the amount expensed for these awards during the three and nine months ended September 30, 2016 was eligible for a tax deduction.

 

(4)

In the third quarter of 2016, the Company substantially completed the liquidation of its investment in its Israel entity that ceased operations in December 2013. During the Company’s period of ownership and through December 2013, the Company had $1.1 million in accumulated foreign exchange translation gains as a component of equity, which have been reclassified as a gain that reduced other general and administrative expenses in the Condensed Consolidated Statement of Operations.

 

(5)

During the nine month period ended September 30, 2016, the Company incurred a charge of $4.8 million, net of an insurance recovery of $0.5 million, to settle an arbitration case with its former CEO and incurred legal fees of $2.7 million. During the three months ended September 30, 2016, the Company recorded a reimbursement of $0.9 million of these legal fees from its insurance carrier. The Company settled the arbitration case in June 2016.

 

(6)

The Company received insurance proceeds of $2.4 million during the first half of 2016 from its corporate insurance carrier to settle a claim for lost profits arising from an August 2015 outage in its outsourced primary data center in the U.S. Additionally, the Company generated a nominal gain on the completion of the sale of its investment research operations in May 2016.

 

(7)

During the first half of 2016, the Company incurred $4.4 million in restructuring charges related to (a) the reduction in its single stock sales trading and sales organizations and (b) the closing of its U.S. matched-book securities lending operations and its Canadian arbitrage trading desk.

 

Schedule of total revenues for the products and services provided by the company

The table below details the total revenues for the categories of products and services provided by the Company (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

 

2017

    

2016

    

2017

    

2016

 

Revenues:

    

 

    

    

 

    

 

 

    

    

 

    

 

Execution Services

 

$

80,141

 

$

70,240

 

$

253,225

 

$

243,441

 

Workflow Technology

 

 

22,553

 

 

22,723

 

 

69,005

 

 

69,410

 

Analytics

 

 

11,347

 

 

10,926

 

 

33,547

 

 

33,206

 

Corporate (non-product)

 

 

490

 

 

296

 

 

1,170

 

 

3,406

 

Total Revenues

 

$

114,531

 

$

104,185

 

$

356,947

 

$

349,463