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KCG Announces Consolidated Earnings Of $2.19 Per Diluted Share For The First Quarter Of 2015
From first quarter 2015 results and the sale of KCG Hotspot, KCG's tangible book value rises to $13.86 per share, book value increases to $15.10 per share, and stockholders' equity rises to $1.78 billion
KCG announces plans to launch a modified Dutch auction tender offer for up to $330 million of its common stock

JERSEY CITY, N.J., May 1, 2015 /PRNewswire/ -- KCG Holdings, Inc. (NYSE: KCG) today reported consolidated earnings of $249.3 million, or $2.19 per diluted share, for the first quarter of 2015. Included in these results is a pre-tax gain of $373.8 million from the sale of KCG Hotspot net of professional fees and compensation costs related to the sale. Excluding these items, on a non-GAAP basis, first quarter 2015 pre-tax income from continuing operations was $32.4 million. A reconciliation of GAAP to non-GAAP results is included in Exhibit 4.

Select Financial Results

($ in thousands, except EPS)

From Continuing Operations

1Q15


4Q14


1Q14

Revenues

696,156


346,139


383,657

Non-GAAP revenues*

311,130


344,023


374,013

   Trading revenues, net

208,795


221,415


258,297

   Commissions and fees

99,961


117,326


112,257

GAAP pre-tax income

406,128


26,531


59,384

GAAP EPS

2.19


0.23


0.31

Non-GAAP pre-tax income*

32,427


30,532


57,563

* See Exhibit 4 for a reconciliation of GAAP to non-GAAP results.

First Quarter Highlights

  • Market making grew the percentage of consolidated U.S. equity share and dollar volume on both a quarter over quarter and year over year basis
  • KCG BondPoint grew trade volumes across Corporates, Municipals and CDs on both a quarter over quarter and year over year basis
  • Completed the sale of KCG Hotspot to BATS Global Markets, Inc.
  • Raised $500 million in 6.875% Senior Secured Notes due in 2020, repaid $117 million in Convertible Notes upon maturity in March 2015, and, subsequent to the quarter, redeemed $305 million in 8.250% Senior Secured Notes due in 2018
  • Subsequent to the quarter, announced plans to launch a modified Dutch auction tender offer for up to $330 million of its common stock as part of an expanded share repurchase program

"During the first quarter, we accomplished a great deal. On the cost front, we've relentlessly focused on operating expenses. On the client front, we continue to develop strategic relationships. In addition, we closed the sale of KCG Hotspot to BATS and initiated a process to rationalize our long-term debt. We've done all this while continuing to build out and optimize our trading businesses to position them for future revenue growth," said CEO Daniel Coleman. "Notwithstanding all of this, we believe we can do more. We can support our firm's ability to grow with regard to improving returns on equity and optimizing our capital structure. To that end, we announced a planned $330 million tender offer at a range of $13.50 to $14.00 per share. The offer is a premium to current and historical prices our shares have traded at since the merger. We believe this is an appropriate recognition of our stockholders' patience as we have worked through the integration and we believe this is the right use of capital as we invest in our future as a new breed of independent securities firm."

Market Making
The Market Making segment encompasses direct-to-client and non-client, exchange-based market making across multiple asset classes and is an active participant in all major cash, options and futures markets in the U.S., Europe and Asia. During the first quarter of 2015, the segment generated total revenues of $224.5 million and pre-tax income of $39.3 million.

During the first quarter of 2015, consolidated U.S equity share and dollar volume posted modest declines quarter over quarter despite the continued rise of leading market indexes. Retail investors remained engaged as evidenced by the sustained average daily SEC Rule 605 share volume and net flows into stocks during the quarter. Market volumes for fixed income, currencies and commodities during the quarter were mixed, punctuated by heightened trading activity from macro events.

Mr. Coleman commented, "KCG's market making results reflect lower consolidated U.S. equity market volumes compared to the previous quarter and similar levels of realized volatility. Anecdotally, we saw improvement in market making in European equities to European clients, offset by a more difficult quarter in U.S. options. During the quarter, KCG continued to make progress building out direct-to-client market making in FX across regions."

In the fourth quarter of 2014, the segment generated total revenues of $238.7 million and pre-tax income of $42.7 million. In the first quarter of 2014, the segment generated total revenues of $277.3 million and pre-tax income of $76.0 million.

Select Trade Statistics: U.S. Equity Market Making


1Q15


4Q14


1Q14

Average daily dollar volume traded ($ millions)

31,025


31,621


27,321

Average daily trades (thousands)

3,947


4,036


3,958

Average daily shares traded (millions)

5,048


5,241


14,907

   NYSE and NASDAQ shares traded

933


933


862

   OTC Bulletin Board and OTC Market shares traded

4,115


4,308


14,045

Average revenue capture per U.S. equity dollar value traded (bps)

0.92


0.93


1.26

 

Global Execution Services
The Global Execution Services segment comprises agency execution services and trading venues. During the first quarter of 2015, the segment generated total revenues of $464.3 million and pre-tax income of $381.1 million. Excluding the gain on the sale of KCG Hotspot and related professional and compensation expenses, the segment generated total revenues of $79.2 million and pre-tax income of $7.2 million.

During the first quarter of 2015, KCG's algorithmic trading continued to add leading institutions as clients. The ETF trading team posted a strong quarter by developing existing clients and converting additional prospects. KCG BondPoint generated record average daily par value traded with growth in volumes of Corporates, Municipals and CDs.

Mr. Coleman commented, "We believe algorithmic trading is a real, emerging strength at KCG. The product development process blends the firm's deep intellectual capital with our advanced technologies. Client orders benefit from access to KCG's naturally occurring liquidity from retail and institutional clients. We continue to focus on growing our business with buyside clients. During the first quarter, 10 asset management clients began using KCG algorithms, and we onboarded an additional 16 new asset management clients. The decline in volume quarter over quarter reflects a decrease in low margin order routing flow, which had a minimal impact on revenues."

As previously announced, during the quarter, KCG completed the sale of KCG Hotspot to BATS Global Markets. First quarter 2015 financial results for the Global Execution Services segment includes contributions from KCG Hotspot encompassing 50 trading days until the completion of the sale on March 13, 2015.

In the fourth quarter of 2014, the segment generated total revenues of $93.4 million and pre-tax income of $10.0 million. Excluding a gain of $2.1 million from the sale of KCG's futures commodity merchant (FCM), the segment generated total revenues of $91.3 million and pre-tax income for the quarter of $7.9 million. In the first quarter of 2014, the segment generated total revenues of $87.2 million and pre-tax income of $2.0 million.

 

Select Trade Statistics: Agency Execution and Trading Venues


1Q15


4Q14


1Q14

Average daily KCG algorithmic trading and order routing

U.S. equities shares traded (millions)

299.0


334.3


281.0

Average daily KCG BondPoint fixed income par value

traded ($ millions)

145.8


130.8


144.2

Average daily KCG Hotspot notional foreign exchange

dollar value traded ($ billions)*

31.1


31.6


32.2

* Represents KCG Hotspot ADV from January 1, 2015 to March 12, 2015.

 

Corporate and Other
The Corporate and Other segment includes strategic investments and corporate overhead expenses. During the first quarter of 2015, the segment generated total revenues of $7.3 million and pre-tax loss of $14.3 million.

In the fourth quarter of 2014, the segment generated total revenues of $14.0 million and a pre-tax loss of $26.1 million. Excluding net lease loss accruals of $6.1 million, the pre-tax loss for the quarter was $20.0 million. In the first quarter of 2014, the segment generated total revenues of $19.1 million and a pre-tax loss of $18.7 million. Excluding revenue of $9.6 million from the merger of BATS and Direct Edge and a write down of $7.6 million in capitalized debt costs and net lease loss benefit of $0.1 million, the pre-tax loss for the quarter was $20.8 million.

Financial Condition
As of March 31, 2015, KCG had $990.5 million in cash and cash equivalents. Total outstanding debt was $799.8 million (See Debt below). The Company had $1.78 billion in stockholders' equity, equivalent to a book value of $15.10 per share and tangible book value of $13.86 per share based on total shares outstanding of 118.1 million, including restricted stock units.

KCG's headcount at March 31, 2015 was 1,038 full-time employees as compared to 1,093 full-time employees at December 31, 2014, which included 40 full-time employees of KCG Hotspot.

During the first quarter of 2015, KCG did not repurchase any shares of KCG Class A Common Stock.

Debt
On March 13, 2015, KCG provided 30 days' notice that it would call its 8.250% $305.0 million Senior Secured Notes due 2018 ("8.250% Notes"), effective April 13, 2015. KCG funded $330.2 million, an amount sufficient to redeem the outstanding aggregate principal amount of the 8.250% Notes plus accrued interest, a make whole premium and other costs into an escrow account. As the 8.250% Notes were redeemed in April, the $305.0 million remained on the Consolidated Statement of Financial Condition as of March 31, 2015. The charges for the make-whole premium of $16.5 million and the acceleration of capitalized debt costs of $8.8 million will be recorded in the second quarter of 2015. In addition, upon maturity on March 16, 2015, KCG repaid all of its outstanding $117.3 million aggregate principal amount of 3.50% Cash Convertible Senior Subordinated Notes.

Modified Dutch Auction Tender Offer
Subsequent to the first quarter of 2015, on April 2, 2015, KCG's board of directors authorized an expanded share repurchase program of up to $400 million of KCG common stock and warrants (including the $55 million of remaining capacity under the previously authorized repurchase program). As part of this authority, KCG expects to commence, on May 4, 2015, a "modified Dutch auction" tender offer that will remain open for at least 20 business days. Under the proposed terms of the tender offer, stockholders will have the opportunity to sell stock to KCG at a specified price per share not less than $13.50 and not greater than $14.00. Upon expiration of the tender offer, and based on the number of shares tendered and the prices specified by the tendering stockholders, KCG will determine the lowest price within the range that will allow it to repurchase up to $330 million of KCG's Class A common stock (or all Shares properly tendered and not properly withdrawn if the tender offer is not fully subscribed). All shares purchased by KCG in the tender offer will be purchased at the same price. If the aggregate purchase price for shares tendered at or below the specified purchase price exceeds $330 million, allocations will be made on a pro rata basis from stockholders tendering at or below the purchase price, except as otherwise specified in the Offer to Purchase. The tender offer range represents a premium of 5 percent to 9 percent above the closing price of KCG's common stock on the New York Stock Exchange of $12.84 on April 30, 2015. Assuming the offer is fully subscribed, KCG will repurchase a minimum of 23.6 million shares, or 22 percent of its total shares outstanding excluding restricted stock units (RSUs) as of April 29, 2015. Assuming the tender offer is fully subscribed, approximately $70 million in authority will remain in the share repurchase program.

Additional Information Regarding the Tender Offer
The tender offer described in this press release has not yet commenced. This press release is for informational purposes only, is not a recommendation to buy or sell KCG common stock, and does not constitute an offer to buy or the solicitation to sell shares of KCG common stock. The tender offer will be made only pursuant to the Offer to Purchase, Letter of Transmittal and related materials that KCG expects to file Monday, May 4th with the Securities and Exchange Commission. Stockholders should read carefully the Offer to Purchase, Letter of Transmittal and related materials because they contain important information, including the various terms of, and conditions to, the tender offer. Once the tender offer is commenced, stockholders will be able to obtain a free copy of the tender offer statement on Schedule TO, the Offer to Purchase, Letter of Transmittal and other documents that KCG will be filing with the Securities and Exchange Commission at the Commission's website at www.sec.gov or the investor information section of KCG's website at www.kcg.com.

Conference Call
KCG will hold a conference call to discuss first quarter 2015 financial results starting at 9:00 a.m. Eastern Time today, May 1, 2015. To access the call, dial 888-820-9418 (domestic) or 913-312-0399 (international) and enter passcode 2590902. In addition, the call will be webcast at http://www.media-server.com/m/acs/60eea8e00b3e41855fa9a4e355bdce2f. Following the conclusion of the call, a replay will be available by selecting a number based on country of origin from a list posted at: https://replaynumbers.conferencinghub.com/index.aspx?confid=7898269&passcode=7898269 and entering passcode 2590902.

Additional information for investors, including a presentation of the first quarter financial results, can be found at http://investors.kcg.com.

Non-GAAP Financial Presentations
KCG believes that certain non-GAAP financial presentations, when taken into consideration with the corresponding GAAP financial presentations, are important in understanding operating results. Selected financial information is included in the non-GAAP financial presentations for the three months ended March 31, 2015, December 31, 2014 and March 31, 2014. KCG believes the presentations provide a meaningful summary of revenues and results of operations for each of the three month periods. Reconciliations of GAAP to non-GAAP results are included in the schedules in Exhibit 4.

About KCG
KCG is a leading independent securities firm offering investors and clients a range of services designed to address trading needs across asset classes, product types and time zones. The firm combines advanced technology with exceptional client service across market making, agency execution and venues. KCG has multiple access points to trade global equities, fixed income, currencies and commodities via voice or automated execution. www.kcg.com

Certain statements contained herein may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," "positions," "prospects" or "potential," by future conditional verbs such as "will," "would," "should," "could" or "may," or by variations of such words or by similar expressions. These "forward-looking statements" are not historical facts and are based on current expectations, estimates and projections about KCG's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Any forward-looking statement contained herein speaks only as of the date on which it is made. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, risks associated with: (i) the strategic business combination (the "Mergers") of Knight Capital Group, Inc. ("Knight") and GETCO Holding Company, LLC ("GETCO"), including, among other things, (a) difficulties and delays in integrating the Knight and GETCO businesses or fully realizing cost savings and other benefits, (b) the inability to sustain revenue and earnings growth, and (c) customer and client reactions to the Mergers; (ii) the August 1, 2012 technology issue that resulted in Knight's broker-dealer subsidiary sending numerous erroneous orders in NYSE-listed and NYSE Arca securities into the market and the impact to Knight's business as well as actions taken in response thereto and consequences thereof; (iii) the sale of KCG's reverse mortgage origination and securitization business, sale of KCG's futures commission merchant and the sale of KCG Hotspot; (iv) changes in market structure, legislative, regulatory or financial reporting rules, including the increased focus by regulators, the New York Attorney General, Congress and the media on market structure issues, and in particular, the scrutiny of high frequency trading, alternative trading systems, market fragmentation, colocation, access to market data feeds, and remuneration arrangements such as payment for order flow and exchange fee structures; (v) past or future changes to organizational structure and management; (vi) KCG's ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by KCG's customers and potential customers; (vii) KCG's ability to keep up with technological changes; (viii) KCG's ability to effectively identify and manage market risk, operational and technology risk, legal risk, liquidity risk, reputational risk, counterparty and credit risk, international risk, regulatory risk, and compliance risk; (ix) the cost and other effects of material contingencies, including litigation contingencies, and any adverse judicial, administrative or arbitral rulings or proceedings; (x) the effects of increased competition and KCG's ability to maintain and expand market share; and (xi) the commencement and completion of the proposed tender offer. The list above is not exhaustive. Readers should carefully review the risks and uncertainties disclosed in KCG's reports with the SEC, including, without limitation, those detailed under "Risk Factors" in KCG's Annual Report on Form 10-K for the year-ended December 31, 2014, and other reports or documents KCG files with, or furnishes to, the SEC from time to time.

 

 

KCG HOLDINGS, INC.








Exhibit 1 

CONSOLIDATED STATEMENTS OF OPERATIONS








(Unaudited)












For the three months ended 





March 31, 2015



December 31, 2014



March 31, 2014




(In thousands, except per share amounts)












Revenues










Trading revenues, net

$

208,795


$

221,415


$

258,297


Commissions and fees


99,961



117,326



112,257


Interest, net


(23)



(177)



948


Investment income and other, net


387,423



7,575



12,155



Total revenues


696,156



346,139



383,657












Expenses










Employee compensation and benefits


106,718



116,214



122,319


Execution and clearance fees


68,473



82,377



75,501


Communications and data processing


33,764



36,945



36,796


Depreciation and amortization


20,615



21,224



20,103


Payments for order flow


15,221



14,698



22,032


Professional fees


11,181



5,695



5,402


Debt interest expense 


8,463



7,721



9,524


Collateralized financing interest 


8,456



7,973



6,162


Occupancy and equipment rentals


7,340



8,514



8,285


Business development


1,857



2,308



1,683


Lease loss accrual, net


132



6,117



266


Writedown of capitalized debt costs 


-



-



7,557


Other


7,808



9,822



8,643



Total expenses


290,028



319,608



324,273












Income from continuing operations before income taxes


406,128



26,531



59,384

Income tax expense


156,827



562



22,467

Income from continuing operations, net of tax


249,301



25,969



36,917

Income (loss) from discontinued operations, net of tax


-



165



(1,253)












Net Income

$

249,301


$

26,134


$

35,664























Basic earnings per share from continuing operations

$

2.25


$

0.24


$

0.32












Diluted earnings per share from continuing operations

$

2.19


$

0.23


$

0.31












Basic loss per share from discontinued operations

$

-


$

-


$

(0.01)












Diluted loss per share from discontinued operations

$

-


$

-


$

(0.01)












Basic earnings per share

$

2.25


$

0.24


$

0.31












Diluted earnings per share

$

2.19


$

0.23


$

0.30












Shares used in computation of basic earnings (loss) per share


110,782



109,654



115,569












Shares used in computation of diluted earnings (loss) per share


113,615



112,224



117,898












 

KCG HOLDINGS, INC.




Exhibit 2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION




(Unaudited)





















March 31, 2015



December 31, 2014






(In thousands)

ASSETS








Cash and cash equivalents


$

990,542


$

578,768


Cash and cash equivalents segregated under federal and other regulations



3,000



3,361


Funds held in escrow



330,163



-


Financial instruments owned, at fair value:









Equities



2,366,225



2,479,910



Listed options



87,412



144,586



Debt securities



187,314



82,815



Other financial instruments



-



60


Total financial instruments owned, at fair value



2,640,951



2,707,371


Collateralized agreements:









Securities borrowed 



1,685,850



1,632,062


Receivable from brokers, dealers and clearing organizations



822,248



1,188,833


Fixed assets and leasehold improvements, 







              less accumulated depreciation and amortization



129,171



134,051


Investments



105,624



100,726


Goodwill and Intangible assets, less accumulated amortization



146,539



152,594


Deferred tax asset, net



164,298



154,759


Assets of business held for sale



-



40,484


Other assets



217,408



137,645










Total assets


$

7,235,794


$

6,830,654










LIABILITIES & EQUITY 







Liabilities








Financial instruments sold, not yet purchased, at fair value:









Equities


$

1,950,860


$

2,069,342



Listed options



78,427



115,362



Debt securities



112,763



101,003



Other financial instruments



234



-


Total financial instruments sold, not yet purchased, at fair value



2,142,284



2,285,707


Collateralized financings:









Securities loaned  



792,887



707,744



Financial instruments sold under agreements to repurchase



905,567



933,576


Total collateralized financings 



1,698,454



1,641,320











Payable to brokers, dealers and clearing organizations



442,586



676,089


Payable to customers



12,126



22,110


Accrued compensation expense



41,831



114,559


Accrued expenses and other liabilities



161,850



136,977


Income taxes payable



148,481



-


Capital lease obligations 



5,080



6,700


Liabilities of business held for sale 



-



2,356


Debt



799,847



422,259










Total liabilities



5,452,539



5,308,077










Equity









Class A Common Stock



1,296



1,275



Additional paid-in capital



1,391,368



1,369,298



Retained earnings



522,081



272,780



Treasury stock, at cost



(133,188)



(122,909)



Accumulated other comprehensive income 



1,698



2,133

Total equity



1,783,255



1,522,577










Total liabilities and equity


$

7,235,794


$

6,830,654



















 

 

KCG HOLDINGS, INC.









Exhibit 3

PRE-TAX EARNINGS (LOSS) FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT*


(In thousands)










(Unaudited)






















For the three months ended  




March 31, 2015



December 31, 2014



March 31, 2014

Market Making










Revenues


$

224,548


$

238,740


$

277,346

Expenses



185,208



196,030



201,314

Pre-tax earnings



39,340



42,710



76,032











Global Execution Services










Revenues



464,266



93,369



87,220

Expenses



83,208



83,401



85,204

Pre-tax earnings



381,058



9,968



2,016











Corporate and Other










Revenues



7,342



14,030



19,091

Expenses



21,612



40,177



37,755

Pre-tax loss



(14,270)



(26,147)



(18,664)











Consolidated










Revenues



696,156



346,139



383,657

Expenses



290,028



319,608



324,273

Pre-tax earnings


$

406,128


$

26,531


$

59,384











* Totals may not add due to rounding.




















 

KCG HOLDINGS, INC.








Exhibit 4

Regulation G Reconciliation of Non-GAAP financial measures (Continuing operations)*














(in thousands)









(Unaudited)









Three months ended March 31, 2015


Market Making


Global Execution Services


Corporate and Other


Consolidated

Reconciliation of GAAP Revenues  to Non-GAAP Revenues:           









GAAP Revenues 


$            224,548


$            464,266


$                7,342


$            696,156

Gain on sale of KCG Hotspot


-


(385,026)


-


(385,026)

Non- GAAP Revenues 


$            224,548


$              79,240


$                7,342


$            311,130












Market Making


Global Execution Services


Corporate and Other


Consolidated

Reconciliation of GAAP Pre-Tax to Non-GAAP Pre-Tax:           









GAAP Income (loss) from continuing operations before income taxes


$              39,340


$            381,058


$            (14,270)


$            406,128

Gain on sale of KCG Hotspot


-


(385,026)


-


(385,026)

Professional fees related to the sale of KCG Hotspot


-


6,736


-


6,736

Compensation expense related to the sale of KCG Hotspot


-


4,457


-


4,457

Lease loss accrual, net


-


-


132


132

Non-GAAP Income (loss) from continuing operations before income taxes


$              39,340


$                7,225


$            (14,138)


$              32,427










Three months ended December 31, 2014


Market Making


Global Execution Services


Corporate and Other


Consolidated

Reconciliation of GAAP Revenues  to Non-GAAP Revenues:           









GAAP Revenues 


$            238,740


$              93,369


$              14,030


$            346,139

Gain on sale of FCM


-


(2,116)


-


(2,116)

Non- GAAP Revenues 


$            238,740


$              91,253


$              14,030


$            344,023












Market Making


Global Execution Services


Corporate and Other


Consolidated

Reconciliation of GAAP Pre-Tax to Non-GAAP Pre-Tax:           









GAAP Income (loss) from continuing operations before income taxes


$              42,710


$                9,968


$            (26,147)


$              26,531

Gain on sale of FCM


-


(2,116)


-


(2,116)

Lease loss accrual, net


-


-


6,117


6,117

Non-GAAP Income (loss) from continuing operations before income taxes


$              42,710


$                7,852


$            (20,030)


$              30,532










Three months ended March 31, 2014


Market Making


Global Execution Services


Corporate and Other


Consolidated

Reconciliation of GAAP Revenues  to Non-GAAP Revenues:           









GAAP Revenues 


$            277,346


$              87,220


$              19,091


$            383,657

Income resulting from the merger of BATS and Direct Edge, net


-


-


(9,644)


(9,644)

Non- GAAP Revenues 


$            277,346


$              87,220


$                9,447


$            374,013












Market Making


Global Execution Services


Corporate and Other


Consolidated

Reconciliation of GAAP Pre-Tax to Non-GAAP Pre-Tax:           









GAAP Income (loss) from continuing operations before income taxes


$              76,032


$                2,016


$            (18,664)


$              59,384

Writedown of capitalized debt costs


-


-


7,557


7,557

Income resulting from the merger of BATS and Direct Edge, net


-


-


(9,644)


(9,644)

Lease loss accrual, net


359


-


(93)


266

Non-GAAP Income (loss) from continuing operations before income taxes


$              76,391


$                2,016


$            (20,844)


$              57,563










* Totals may not add due to rounding


















 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kcg-announces-consolidated-earnings-of-219-per-diluted-share-for-the-first-quarter-of-2015-300075789.html

SOURCE KCG Holdings, Inc.

Sophie Sohn, Communications & Marketing, 312-931-2299, media@kcg.com; Jonathan Mairs, Investor Relations, 201-356-1529, jmairs@kcg.com