NEW YORK, Feb. 13, 2014 /PRNewswire/ -- GFI Group Inc. (NYSE: GFIG), a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets, reported today its financial results for the fourth quarter and full year ended December 31, 2013.



    Highlights of Results                      Three months
                                                   ended        Year ended

                                               December 31,    December 31,
    ---                                        ------------    ------------

                                $ in millions   2013   2012   2013   2012
                                -------------   ----   ----   ----   ----

    Total revenues                            $202.3        $207.3          $901.5  $924.6
    --------------                              ----          ----            ----    ----

    Net revenues                               170.8         173.4           747.0   787.0
    ------------                               -----         -----           -----   -----

    Brokerage revenues                         143.5         150.4           645.4   695.5
    ------------------                         -----         -----           -----   -----

    Software, analytics and
     market data revenue                        24.1          22.5            90.5    84.2
    -----------------------                     ----          ----            ----    ----

    Compensation ratio (1)                      71.9%         73.2%           69.2%   70.2%
    ---------------------                       ----          ----            ----    ----

    Non-compensation ratio (1)                  31.1%         30.5%           28.7%   28.4%
    -------------------------                   ----          ----            ----    ----
     Non-GAAP net (loss) income
      (1)
                                               $(6.6)        $(2.9)           $9.1    $8.9
    ---                                         ----          ----            ----    ----

    Cash earnings (1)                           12.4          18.0            87.4    92.1
    ----------------                            ----          ----            ----    ----


    (1)       Item represents a non-GAAP
              financial measure; see
              discussion below, as well
              as a reconciliation to
              GAAP in the financial
              tables attached to this
              release.

Colin Heffron, Chief Executive Officer commented: "Challenging trading conditions remained in the fourth quarter due to continued regulatory change, modest trading volumes and low market volatility. Net revenues and brokerage revenues were down 1.5% and 4.6%, respectively. However, GFI's software, analytics and market data revenues were up 7.2%.

"We continue to invest in our electronic trading and Swaps Execution Facility ("SEF") platforms to provide effective trading solutions for our customers. In October of 2013, following the creation of SEFs, the swaps markets began their transformation to more regulated, transparent and centrally cleared marketplaces. This transformation is ongoing, as customers seek clarification of certain rules and await the mandated SEF trading deadlines for certain interest rate and fixed income derivative products. We believe that the uncertain impact of ongoing regulatory change continued to negatively impact trading volumes across derivative markets.

"GFI's electronic matching sessions continued to provide substantial revenues in the fourth quarter. In the Americas and EMEA, matching session revenues represented approximately 46% and 21% of fixed income product revenues, respectively. In fixed income products globally, matching session revenues nearly tripled in derivatives and more than doubled in cash products, year over year.

"GFI's Trayport and FENICS businesses had record revenues and profits in 2013 as they leveraged their customer base and expanded their products and services. Trayport's software revenues grew 7% in the fourth quarter and 9% for the full year 2013.

"We remain focused on reducing GFI's overall cost structure and are pleased with the lower, performance-based compensation arrangements implemented over the past eighteen months. GFI's non-GAAP compensation ratio improved despite lower revenues in the fourth quarter, year over year.

"Through the second week in February, GFI's preliminary total revenues are tracking down approximately 4% year over year.

"GFI's fourth quarter cash earnings were $0.10 per diluted share, or approximately $12.4 million. We are pleased to declare a quarterly cash dividend to GFI shareholders of $0.05 per share."

GAAP Results: Fourth Quarter 2013

Net revenues were $170.8 million, compared to $173.4 million in the prior year. Our net loss was $30.9 million, or $(0.25) per diluted share, compared with a net loss of $11.4 million, or $(0.10) per diluted share. Compensation and employee benefits expense was 72.3% of net revenues, as compared with 71.8% in the prior year. Non-compensation expenses were $75.2 million, or 44.0% of net revenues, compared to $58.3 million, or 33.6% of net revenues in the prior year.

The fourth quarter 2013 GAAP results include a $19.6 million charge relating to impairment of goodwill and intangibles, which includes $18.9 million at Kyte. At the time of acquisition, a $19.3 million liability was recorded related to a potential earn out payment to Kyte's selling shareholders, which resulted in a corresponding increase to goodwill. Over time, the $19.3 million estimated earn out liability was written down to $0.8 million through the GAAP results and was removed from non-GAAP results, as this was a non-cash and non-operating item. The impairment of goodwill and intangibles recorded in this quarter likewise has no cash impact and was excluded from non-GAAP results.

Also in the fourth quarter we established a valuation allowance against deferred tax assets in certain overseas jurisdictions. The total valuation allowance taken on these items was $4.9 million of which $3.4 million related to deferred tax assets recognized in prior years.

Non-GAAP Results: Fourth Quarter 2013

Revenues

Net revenues were $171.4 million, as compared to $174.9 million.

Brokerage revenues were $143.5 million, compared to $151.0 million. Revenues from fixed income, financial, commodity and equity products were down 1.2%, 2.0%, 4.5% and 14.3%, respectively. By geographic region, brokerage revenues decreased 0.3%, 8.7% and 4.1% in the Americas, EMEA and Asia-Pacific, respectively.

Revenues from trading software, analytics and market data products were $24.1 million, up 7.2% from $22.5 million, in the prior year.

Expenses

Our compensation and employee benefit expenses were $123.3 million, or 71.9% of net revenues, compared with $128.0 million, or 73.2% in fourth quarter 2012. Non-compensation expenses were $53.2 million, or 31.1% of net revenues, compared with $53.3 million, or 30.5% in the prior year.

Earnings

GFI's net loss was $6.6 million, or $(0.05) per diluted share, compared with a loss of $2.9 million, or $(0.02) per diluted share.

The effective tax rate for 2013 was approximately 36.0%, as compared to 11.9% in 2012. The increase was primarily driven by valuation allowances recognized in the fourth quarter of 2013 on certain non-U.S. deferred tax assets, as well as the release of a tax liability in 2012 which reduced that year's effective rate.

GAAP Results: Full Year 2013

GAAP net revenues were $747.0 million for the full year 2013, compared with $787.0 million in 2012. GAAP net loss was $20.0 million, or $(0.17) per diluted share for 2013, compared with a loss of $10.0 million, or $(0.09) per diluted share in 2012. The compensation and employee benefits ratio in 2013 was 69.1%, down from 69.4% in 2012. Non-compensation expenses, for the full year 2013 were $252.1 million, or 33.7% compared with $241.8 million, or 30.7% in 2012. Non-compensation expenses include a $19.6 million non-cash, pre-tax charge for the impairment of goodwill and intangible assets, primarily relating to GFI's Kyte subsidiary.

Non-GAAP Results: Full Year 2013

On a non-GAAP basis, net revenues for the full year 2013 were $745.5 million, compared to $781.5 million in 2012. Net income was $9.1 million, or $0.07 per diluted share, for the full year 2013, compared with net income of $8.9 million, or $0.07 per diluted share, in 2012.

Dividend Declaration

The Board of Directors of GFI has declared a quarterly cash dividend of $0.05 per share payable on March 28, 2014 to shareholders of record as of March 14, 2014.

Non-GAAP Financial Measures

To supplement GFI's unaudited financial statements presented in accordance with GAAP, the Company uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by GFI include non-GAAP total revenues, non-GAAP net revenues, non-GAAP provision for or benefit from income taxes, non-GAAP net income, non-GAAP diluted earnings per share, cash earnings and cash earnings per share. These non-GAAP financial measures currently exclude from the Company's statement of income amortization of acquired intangibles and certain other items that management views as non-operating, non-recurring or non-cash as detailed in the reconciliation included in the financial tables attached to this release.

In addition, GFI may consider whether other significant non-operating, non-recurring or non-cash items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses. The non-GAAP financial measures also take into account estimated adjustments to income tax expense with respect to the excluded items.

GFI believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company's performance by excluding certain items that may not be indicative of the Company's core business, operating results or future outlook. GFI's management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing the Company's operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company's performance to prior periods.

In addition to the reasons stated above, which are generally applicable to each of the items GFI excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude amortization of acquired intangibles because when analyzing the operating performance of an acquired business, GFI's management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity, as compared to the purchase price paid) without taking into consideration any charges for allocations made for accounting purposes. Further, because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets, when analyzing the operating performance of an acquisition in subsequent periods, the Company's management excludes the GAAP impact of acquired intangible assets on its financial results. GFI believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

A reconciliation of these non-GAAP financial measures to GAAP is included in the financial tables attached to this release.

Conference Call

GFI has scheduled an investor conference call to discuss its fourth quarter results at 8:30 a.m. (Eastern Time) on Friday, February 14, 2014. Those wishing to listen to the live conference call via telephone should dial 1-877-870-4263 in North America and +1-412-317-0790 outside of North America, and ask for "GFI".

A live audio web cast of the conference call will be available on the Investor Relations section of GFI's Website. For web cast registration information, please visit: http://www.gfigroup.com. Following the conference call, an archived recording will be available.

Supplementary Financial Information

GFI has posted details of its historical monthly brokerage revenues on the Investor Relations page of its web site under the heading Supplementary Financial Information. The Company currently plans to post this information quarterly in conjunction with its announcement of earnings, but does not undertake a responsibility to continue to provide or update such information.

About GFI Group Inc.

GFI Group Inc. (NYSE: GFIG) is a leading intermediary in the global OTC and Listed markets offering an array of sophisticated trading technologies and products to a broad range of financial market participants. More than 2,600 institutional clients benefit from GFI's know-how and experience in operating electronic and hybrid markets for cash and derivative products across multiple asset classes, including fixed income, interest rates, foreign exchange, equities, energy and commodities. GFI's brands include Trayport®, a leading provider of trading solutions for energy markets worldwide and FENICS ®, a market leader in FX options software.

Founded in 1987 and headquartered in New York, GFI employs over 2,000 people globally, with additional offices in London, Paris, Nyon, Dublin, Madrid, Sugar Land (TX), Hong Kong, Tel Aviv, Dubai, Manila, Seoul, Tokyo, Singapore, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Lima and Mexico City.

Forward-looking Statement

Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "might," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of GFI Group Inc. (the "Company") and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company's brokerage services; competition from current and new competitors; the Company's ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company's ability to identify and develop new products and markets; changes in laws and regulations governing the Company's business and operations or permissible activities; the Company's ability to manage its international operations; financial difficulties experienced by the Company's customers or key participants in the markets in which the Company focuses its brokerage services; the Company's ability to keep up with technological changes; uncertainties relating to litigation and the Company's ability to assess and integrate acquisition prospects. Further information about factors that could affect the Company's financial and other results is included in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

- FINANCIAL TABLES FOLLOW -



                                     GFI Group Inc. and Subsidiaries

                            Consolidated Statements of Operations (unaudited)

                              (In thousands except share and per share data)



                                                               Three Months Ended          Twelve Months Ended

                                                                  December 31,               December 31,
                                                                  ------------               ------------

                                                                  2013            2012         2013            2012
                                                                  ----            ----         ----            ----

    Revenues

      Agency commissions                                      $103,278        $104,110     $461,691        $484,386

      Principal transactions                                    40,246          46,329      183,714         211,159
                                                                ------          ------      -------         -------

       Total brokerage revenues                                143,524         150,439      645,405         695,545

      Clearing services revenues                                28,911          29,704      139,136         118,011

      Interest income from clearing services                       570             639        2,193           1,964

      Equity in net earnings of
       unconsolidated businesses                                 1,241           2,327        8,166           8,569

      Software, analytics and market data                       24,100          22,482       90,538          84,153

      Other income, net                                          4,001           1,703       16,012          16,345

          Total revenues                                       202,347         207,294      901,450         924,587


    Interest and transaction-based expenses

      Transaction fees on clearing services                     27,213          28,738      134,165         113,726

      Transaction fees on brokerage services                     4,183           4,831       19,755          22,843

      Interest expense from clearing
       services                                                    180             293          570             973
                                                                   ---             ---          ---             ---

      Total interest and transaction-based
       expenses                                                 31,576          33,862      154,490         137,542
                                                                ------          ------      -------         -------

      Revenues, net of interest and
       transaction-based expenses                              170,771         173,432      746,960         787,045
                                                               -------         -------      -------         -------


    Expenses

      Compensation and employee benefits                       123,485         124,574      516,222         546,501

      Communications and market data                            12,798          14,131       53,875          60,760

      Travel and promotion                                       7,555           8,503       30,853          35,850

      Rent and occupancy                                         6,228           2,908       28,380          23,667

      Depreciation and amortization                              8,333           9,122       33,295          36,624

      Professional fees                                          5,703           5,768       24,527          23,238

      Interest on borrowings                                     7,822           6,805       30,297          26,885

      Impairment of goodwill and intangibles                    19,602               -       19,602               -

      Other expenses                                             7,116          11,047       31,254          34,777
                                                                 -----          ------       ------          ------

         Total other expenses                                  198,642         182,858      768,305         788,302
                                                               -------         -------      -------         -------


    Loss before provision for (benefit
     from) income taxes                                        (27,871)         (9,426)     (21,345)         (1,257)


    Provision for (benefit from) income
     taxes                                                       2,994           1,688       (2,273)          8,387
                                                                 -----           -----       ------           -----


    Net loss before attribution to non-
     controlling stockholders                                  (30,865)        (11,114)     (19,072)         (9,644)


    Less: Net income attributable to non-
     controlling interests                                          37             258          926             309
                                                                   ---             ---          ---             ---

    GFI's net loss                                            $(30,902)       $(11,372)    $(19,998)        $(9,953)
                                                              ========        ========     ========         =======



    Basic loss per share                                        $(0.25)         $(0.10)      $(0.17)         $(0.09)
                                                                ======          ======       ======          ======

    Diluted loss per share                                      $(0.25)         $(0.10)      $(0.17)         $(0.09)
                                                                ======          ======       ======          ======


    Weighted average shares outstanding -
     basic                                                 121,765,553     115,837,632  119,052,908     116,014,202


    Weighted average shares outstanding -
     diluted                                               121,765,553     115,837,632  119,052,908     116,014,202






                          GFI Group Inc. and Subsidiaries

                 Consolidated Statements of Operations (unaudited)

                          As a Percentage of Net Revenues



                                         Three Months Ended         Twelve Months Ended

                                           December 31,            December 31,
                                           ------------            ------------

                                           2013          2012        2013           2012
                                           ----          ----        ----           ----

    Revenues

      Agency
       commissions                         60.5%         60.0%       61.8%          61.5%

      Principal
       transactions                        23.6%         26.7%       24.6%          26.8%
                                           ----          ----        ----           ----

       Total
        brokerage
        revenues                           84.1%         86.7%       86.4%          88.3%

      Clearing
       services
       revenues                            16.9%         17.1%       18.6%          15.0%

      Interest
       income from
       clearing
       services                             0.3%          0.4%        0.3%           0.2%

      Equity in net
       earnings of
       unconsolidated
       businesses                           0.7%          1.3%        1.1%           1.1%

      Software,
       analytics
       and market
       data                                14.1%         13.0%       12.1%          10.7%

      Other income,
       net                                  2.4%          1.0%        2.2%           2.1%

          Total
           revenues                       118.5%        119.5%      120.7%         117.4%


    Interest and transaction-based
     expenses

      Transaction
       fees on
       clearing
       services                            15.9%         16.6%       18.0%          14.4%

      Transaction
       fees on
       brokerage
       services                             2.5%          2.8%        2.6%           2.9%

      Interest
       expense from
       clearing
       services                             0.1%          0.1%        0.1%           0.1%

      Total
       interest and
       transaction-
       based
       expenses                            18.5%         19.5%       20.7%          17.4%
                                           ----          ----        ----           ----

      Revenues, net
       of interest
       and
       transaction-
       based
       expenses                           100.0%        100.0%      100.0%         100.0%
                                          -----         -----       -----          -----


    Expenses

      Compensation
       and employee
       benefits                            72.3%         71.8%       69.1%          69.4%

       Communications
       and market
       data                                 7.5%          8.1%        7.2%           7.7%

      Travel and
       promotion                            4.4%          4.9%        4.1%           4.6%

      Rent and
       occupancy                            3.6%          1.7%        3.8%           3.0%

      Depreciation
       and
       amortization                         4.9%          5.3%        4.5%           4.7%

      Professional
       fees                                 3.3%          3.3%        3.3%           3.0%

      Interest on
       borrowings                           4.6%          3.9%        4.1%           3.4%

      Impairment of
       goodwill and
       intangibles                         11.5%          0.0%        2.6%           0.0%

      Other
       expenses                             4.2%          6.4%        4.2%           4.4%

         Total other
          expenses                        116.3%        105.4%      102.9%         100.2%
                                          -----         -----       -----          -----


    Loss before
     provision
     for (benefit
     from) income
     taxes                                -16.3%         -5.4%       -2.9%          -0.2%


    Provision for
     (benefit
     from) income
     taxes                                  1.8%          1.0%       -0.3%           1.1%
                                            ---           ---        ----            ---


    Net loss
     before
     attribution
     to non-
     controlling
     stockholders                         -18.1%         -6.4%       -2.6%          -1.3%


    Less: Net
     income
     attributable
     to non-
     controlling
     interests                              0.0%          0.2%        0.1%           0.0%

    GFI's net
     loss                                 -18.1%         -6.6%       -2.7%          -1.3%
                                          =====          ====        ====           ====


                                                                                                                                                                                                                                               
                                                                                                     GFI Group Inc. and Subsidiaries
                                                                                                                                                                                                                                               
                                                                                                   Selected Financial Data (unaudited)
                                                                                                                                                                                                                                               
                                                                                               (Dollars in thousands except per share data)
                                                                                                                                                                                                                                               
                                                                                                                                                                                                               
                                                                                                                                                                               
                                                                                                       Three Months Ended                              Twelve Months
                                                                                                                                                           Ended
                                                                                                                                                                               
                                                                                                          December 31,                                 December 31,
                                                                                                          ------------                                 ------------
                                                                                                                                                                                                                                               
                                                                                                                            2013                                         2012                            2013                            2012
                                                                                                                            ----                                         ----                            ----                            ----
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
    Brokerage Revenues by Product Categories:
                                                                                                                                                                                                               
                                                   Fixed Income                        $38,788                                                                        $39,090                        $175,691                        $188,328
                                                                                                                                                                                                               
                                                   Financial                            40,806                                       41,627                                     191,836                         185,062
                                                                                                                                                                                                               
                                                   Equity                               26,391                                       30,780                                     116,579                         135,826
                                                                                                                                                                                                               
                                                   Commodity                            37,539                                       38,942                                     161,299                         186,329
                                                   ---------
                                                                                                                                                                                                                                               
                                                                                                                                                                                                               
                                                      Total brokerage
                                                       revenues                       $143,524                                     $150,439                                    $645,405                        $695,545
                                                   =============
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
    Brokerage Revenues by Geographic Region:
                                                                                                                                                                                                               
                                                   Americas                            $58,985                                                                        $59,171                        $260,503                        $274,498
                                                                                                                                                                                                               
                                                    Europe, Middle East,
                                                    and Africa                          69,950                                       76,054                                     314,417                         345,069
                                                                                                                                                                                                               
                                                   Asia-Pacific                         14,589                                       15,214                                      70,485                          75,978
                                                   ------------
                                                                                                                                                                                                                                               
                                                                                                                                                                                                               
                                                      Total brokerage
                                                       revenues                       $143,524                                     $150,439                                    $645,405                        $695,545
                                                   =============
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                          December 31,                                 December 31,
                                                                                                                                                                                                                                               
                                                                                                                            2013                                         2012
                                                                                                                            ----                                         ----
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
    Consolidated Statement of Financial Condition Data:
                                                                                                                                                                                                               
                                                    Cash and cash
                                                    equivalents                       $174,606                                     $227,441
                                                                                                                                                                                                               
                                                    Cash held at clearing
                                                    organizations, net of
                                                    customer cash                       52,414                                       19,636
                                                   -------------
                                                                                                                                                                                                               
                                                    GFI's total balance
                                                    sheet cash                         227,020                                      247,077
                                                                                                                                                                                                               
                                                    Balance sheet cash per
                                                    share                                 1.84                                         2.11
                                                                                                                                                                                                                                               
                                                                                                                                                                                                               
                                                   Total assets (1)                  1,161,542                                    1,180,061
                                                                                                                                                                                                               
                                                   Total debt                          250,000                                      250,000
                                                                                                                                                                                                               
                                                   Stockholders' equity                407,276                                      425,082
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
    Selected Statistical Data:
                                                                                                                                                                                                               
                                                    Brokerage personnel
                                                    headcount (2)                        1,121                                        1,188
                                                                                                                                                                                                               
                                                   Employees                             2,087                                        2,062
                                                                                                                                                                                                               
                                                    Broker productivity
                                                    for the period (3)                    $127                                                                           $125
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                
                                              (1)   Total assets include receivables from brokers, dealers and
                                                    clearing organizations of $295.7 million and $252.7 million at
                                                    December 31, 2013 and December 31, 2012, respectively. These
                                                    receivables primarily represent securities transactions entered
                                                    into in connection with our matched principal business which
                                                    have not settled as of their stated settlement dates, as well
                                                    as balances with clearing organizations. These receivables are
                                                    substantially offset by corresponding payables to brokers,
                                                    dealers and clearing organizations and to clearing customers,
                                                    for these unsettled transactions.
                                                                                                
                                              (2)   Brokerage personnel headcount includes brokers, traders,
                                                    trainees and clerks.
                                                                                                
                                              (3)   Broker productivity is calculated as brokerage revenues divided
                                                    by average monthly brokerage personnel headcount for the
                                                    quarter.



                                             GFI Group Inc. and Subsidiaries

                            Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)

                                     (In thousands except share and per share data)



                       Three Months Ended           Twelve Months Ended

                          December 31,                  December 31,
                          ------------                  ------------

                                        2013                          2012                          2013         2012
                                        ----                          ----                          ----         ----


    GAAP revenues                   $202,347                      $207,294                      $901,450     $924,587

    Mark-to-
     market loss on
     forward hedges
     of future
     foreign
     currency
     revenues                            590                           734                           744        1,021

    Fair value
     mark-to-
     market gain on
     future
     purchase
     commitment                            -                          (447)                       (2,203)      (9,545)

    Fair value
     mark-to-
     market loss on
     warrants on
     investee
     shares                                -                           638                            22        2,475

    Trading losses
     from start-up
     operations                            -                           539                             -          539

    Total Non-GAAP
     Revenues                        202,937                       208,758                       900,013      919,077


    GAAP interest
     and
     transaction-
     based expenses                   31,576                        33,862                       154,490      137,542
                                      ------                        ------                       -------      -------


    Non-GAAP
     revenues, net
     of interest
     and
     transaction-
     based expenses                  171,361                       174,896                       745,523      781,535
                                     -------                       -------                       -------      -------


    GAAP other
     expenses                        198,642                       182,858                       768,305      788,302

    Amortization of
     intangibles                      (2,332)                       (2,531)                       (9,640)     (11,293)

    Impairment of
     goodwill and
     intangibles                     (19,602)                            -                       (19,602)           -

    Modification of
     stock awards
     for departing
     executive                          (227)                            -                          (227)           -

    Expenses from
     start-up
     operations                            -                        (4,803)                       (8,573)      (4,803)

    Duplicate rent                         -                             -                          (345)           -

    Writedown of
     available for
     sale
     securities                            -                             -                             -       (5,362)

    Adjustment of
     sublease loss
     accrual                               -                         3,215                             -        3,215

    Costs
     associated
     with Hurricane
     Sandy                                 -                          (904)                            -         (904)

    Closure of
     certain desks
     in Asia                               -                             -                             -       (1,578)

    Change in
     estimate -
     Kyte opening
     balance sheet
     liability                             -                         3,474                             -        3,474

    Non-GAAP other
     expenses                        176,481                       181,309                       729,918      771,051
                                     -------                       -------                       -------      -------


    Non-GAAP pre-
     tax (loss)
     income                           (5,120)                       (6,413)                       15,605       10,484
                                      ------                        ------                        ------       ------


    Income tax
     impact on Non-
     GAAP items                           64                        (3,649)                        6,821        2,616

    Plus:
     Valuation
     allowance on
     prior year
     non-U.S.
     deferred tax
     assets                           (3,413)                            -                        (3,413)           -

    Plus:
     Adjustment to
     acquisition-
     related
     deferred tax
     liabilities                       1,820                             -                         1,820            -

    Plus: Non-
     operating      international
     adjustment for affiliates
     the
     recognition of
     a tax
     (benefit)
     provision
     related to
     interest
     income between                        -                           (44)                        2,655       (2,655)

    Plus: Non-
     operating
     adjustment for
     the
     recognition of
     a tax benefit
     related to the
     repatriation
     of
     international
     profits                               -                        (1,813)                            -       (7,097)

    Non-GAAP
     provision for
     (benefit from)
     income taxes                      1,465                        (3,818)                        5,610        1,251


    Less: Net
     income
     attributable
     to non-
     controlling
     interests                            37                           258                           926          309
                                         ---                           ---                           ---          ---


    GFI's Non-GAAP
     net (loss)
     income                          $(6,622)                      $(2,853)                       $9,069       $8,924
                                     =======                       =======                        ======       ======


    Non-GAAP
     diluted net
     (loss) income
     per share                        $(0.05)                       $(0.02)                        $0.07        $0.07
                                      ======                        ======                         =====        =====


    Pre-tax
     adjustments to
     arrive at cash
     earnings

    Amortization of
     RSUs                              6,951                         7,732                        29,323       32,365

    Amortization of
     prepaid sign-
     on and
     retention
     bonuses                           6,038                         6,540                        25,366       25,472

    Depreciation
     and other
     amortization                      6,001                         6,591                        23,655       25,331
                                       -----                         -----                        ------       ------

    Total pre-tax
     adjustments to
     cash earnings                    18,990                        20,863                        78,344       83,168


    Non-GAAP pre-
     tax cash
     earnings from
     ongoing
     operations                       13,870                        14,450                        93,949       93,652
                                      ------                        ------                        ------       ------


    Non-GAAP
     provision for
     (benefit from)
     income taxes                      1,465                        (3,818)                        5,610        1,251


    Less: Net
     income
     attributable
     to non-
     controlling
     interests                            37                           258                           926          309
                                         ---                           ---                           ---          ---


    GFI's Non-GAAP
     net cash
     earnings from
     ongoing
     operations                      $12,368                       $18,010                       $87,413      $92,092
                                     =======                       =======                       =======      =======


    Non-GAAP cash
     earnings per
     share                             $0.10                         $0.16                         $0.69        $0.75
                                       =====                         =====                         =====        =====


    Weighted
     average shares
     outstanding -
     diluted                     121,765,553                   115,837,632                   127,418,193  123,455,160



    GFI Group Inc.

    Adjusted EBITDA


    ($ in
     '000's,
     except
     share and
     per share
     amounts)       4Q12          1Q13        2Q13        3Q13         4Q13          Last twelve months (LTM)
                    ----          ----        ----        ----         ----           -----------------------


    Net (loss)
     income per
     U.S. GAAP
     before
     attribution
     to non-
     controlling
     interests          $(11,114)     $4,954      $6,868         $(29)     $(30,865)


    Plus: Net
     income
     attributable
     to non-
     controlling
     interests              (258)       (280)       (177)        (432)          (37)
                            ----        ----        ----         ----           ---

    GFI's net
     (loss)
     income              (11,372)      4,674       6,691         (461)      (30,902)


    Plus:
     Extraordinary
     and other
     non-
     recurring
     pretax
     items
     (i.e., non-
     GAAP
     adjustments)          3,013       9,220       1,491        3,488        22,751


    Plus:
     Interest
     expense               7,098       7,848       7,262        7,755         8,002


    Less:
     Interest
     income                 (849)       (928)       (579)        (630)         (773)


    Plus: Income
     tax expense
     (benefit)             1,688      (4,859)        719       (1,127)        2,994


    Plus:
     Depreciation
     and
     amortization
     expense
     (excluding
     intangibles)          6,591       5,810       5,863        5,981         6,001


    Plus:
     Amortization
     of RSUs               7,732       8,142       7,360        6,870         6,951


    Plus:
     Amortization
     of prepaid
     sign-on
     and
     retention
     bonuses               6,540       6,112       7,278        5,938         6,038
                           -----       -----       -----        -----         -----


    Adjusted
     EBITDA              $20,441     $36,019     $36,085      $27,814       $21,062                   $120,980
                         -------     -------     -------      -------       -------                   --------


    Weighted
     average
     shares
     outstanding
     -diluted                                                                                      127,418,193


    Adjusted
     EBITDA per
     share (pre-
     tax)                                                                                                $0.95

SOURCE GFI Group Inc.