GLOBAL BROKERAGE, INC. Consolidated Statement of Financial Condition
As of March 31, 2022
(In thousands, except share data)
(Unaudited)
Assets
Current assets
Cash and cash equivalents | $ | 67,409 |
Cash and cash equivalents, held for customers | 283,192 | |
Due from brokers | 1,955 | |
Accounts receivable, net | 4,600 | |
Other assets - Current | 4,641 | |
Tax receivable | 268 | |
Total current assets | 362,065 | |
Deferred tax asset | 165 | |
Office, communication and computer equipment, net | 21,541 | |
Operating lease right-of-use-assets | 10,154 | |
Other intangible assets, net | 1,007 | |
Other assets - Non-current | 2,966 | |
Total assets | $ | 397,898 |
Liabilities, Redeemable non-controlling interest and Stockholders' deficit | ||
Current liabilities | ||
Customer account liabilities | $ | 283,192 |
Accounts payable and accrued expenses | 19,475 | |
Due to brokers | 605 | |
Operating lease liabilities - current | 5,393 | |
Credit Agreement | 71,634 | |
New Secured Notes | 202,185 | |
Other liabilities - current | 263 | |
Total current liabilities | 582,747 | |
Operating lease liabilities - Non-current | 9,954 | |
Other liabilities - Non-current | 1,149 | |
Total liabilities | 593,850 | |
Redeemable non-controlling interest | 7,128 | |
Stockholders' deficit | ||
Class A common stock, par value $0.01 per share; 3,000,000,000 shares authorized, | ||
8,247,997 shares issued and outstanding | 82 | |
Additional paid-in-capital | 361,197 | |
Accumulated deficit | (561,977) | |
Accumulated other comprehensive loss | (2,475) | |
Total stockholders' deficit Global Brokerage, Inc. | (203,173) | |
Other non-controlling interests | 93 | |
Total stockholders' deficit | (203,080) | |
Total liabilities, Redeemable non-controlling interest and Stockholders' deficit | $ | 397,898 |
Consolidated Statement of Operations For the Three Months Ended March 31, 2022
(In thousands, except per share data)
(Unaudited)
Revenues
Trading revenue | $ | 30,574 |
Interest income | 21 | |
Other income | 520 | |
Total net revenues | 31,115 | |
Operating Expenses | ||
Compensation and benefits | 12,447 | |
Referring broker fees | 2,019 | |
Advertising and marketing | 4,768 | |
Communication and technology | 3,580 | |
Trading costs, prime brokerage and clearing fees | 536 | |
General and administrative | 6,913 | |
Depreciation | 2,645 | |
Total operating expenses | 32,908 | |
Operating Loss | (1,793) | |
Other Expense | ||
Interest on borrowings | 10,355 | |
Loss from continuing operations before income taxes | (12,148) | |
Income tax provision | 389 | |
Loss from continuing operations | (12,537) | |
Income from discontinued operations, net of tax | 682 | |
Net loss | (11,855) | |
Net loss attributable to redeemable non-controlling interest in FXCM Group, LLC | (2,790) | |
Net income attributable to other non-controlling interests | 285 | |
Net loss attributable to Global Brokerage, Inc. | $ | (9,350) |
Loss from continuing operations attributable to Global Brokerage, Inc. | $ | (8,897) |
Loss from discontinued operations attributable to Global Brokerage, Inc. | (453) | |
Net loss attributable to Global Brokerage, Inc. | $ | (9,350) |
Weighted average shares of Class A common stock outstanding - Basic and Diluted | 8,248 | |
Net (loss) income per share attributable to stockholders of Class A common stock of Global | ||
Brokerage, Inc. - Basic and Diluted: | ||
Continuing operations | $ | (1.08) |
Discontinued operations | (0.05) | |
Net loss attributable to Global Brokerage, Inc. | $ | (1.13) |
Consolidated Statement of Comprehensive Income
For the Three Months Ended March 31, 2022
(In thousands, unaudited)
Net loss | $ | (11,855) |
Other comprehensive loss | ||
Foreign currency translation loss, net of tax | (164) | |
Other comprehensive income, net of tax | (164) | |
Comprehensive loss | (12,019) | |
Comprehensive loss attributable to redeemable non-controlling interest in FXCM Group, | ||
LLC | (2,872) | |
Comprehensive income attributable to other non-controlling interests | 285 | |
Comprehensive loss attributable to Global Brokerage, Inc. | $ | (9,432) |
Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2022
(In thousands, unaudited)
Cash Flows From Operating Activities
Net loss | $ | (11,855) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation | 2,645 | |
Right-of-use assets amortization | 1,193 | |
Deferred tax expense | 3 | |
Amortization of discount - New Secured Notes | 6,378 | |
Amortization of issuance cost - New Secured Notes | 58 | |
Paid-in-kind interest - New Secured Notes | 7,682 | |
Changes in operating assets and liabilities: | ||
Due from brokers | (1,184) | |
Accounts receivable, net | 692 | |
Tax receivable | 178 | |
Other assets - Current | (842) | |
Other assets - Non-current | 557 | |
Customer account liabilities | (7,431) | |
Accounts payable and accrued expenses | (7,195) | |
Lease liabilities | (1,798) | |
Other liabilities - Current | 4 | |
Other liabilities - Non-current | (50) | |
Due to brokers | (229) | |
Foreign currency remeasurement loss | 146 | |
Net cash used in operating activities | (11,048) | |
Cash Flows From Investing Activities | ||
Purchases of office, communication and computer equipment | (156) | |
Payments for software development costs | (1,770) | |
Net cash used in investing activities | (1,926) | |
Cash Flows From Financing Activities | ||
Distributions to non-controlling members | (228) | |
Contributions from redeemable non-controlling interest | 10,000 | |
Net cash provided by financing activities | 9,772 | |
Effect of foreign currency exchange rate changes on Cash and cash equivalents and Cash and | ||
cash equivalents, held for customers | (1,091) | |
Net decrease in Cash and cash equivalents and Cash and cash equivalents, held for | ||
customers | (4,293) | |
Cash and cash equivalents and Cash and cash equivalents, held for customers: | ||
Beginning of period | 354,894 | |
End of period | $ | 350,601 |
Consolidated Statement of Cash Flows - (continued)
For the Three Months Ended March 31, 2022
(In thousands, unaudited)
Cash and cash equivalents | $ | 67,409 |
Cash and cash equivalents, held for customers | 283,192 | |
Cash and cash equivalents and Cash and cash equivalents, held for customers - End of | ||
period | $ | 350,601 |
Supplemental disclosures of cash flow activities | ||
Net cash paid for taxes | $ | 132 |
Supplemental disclosure of non-cash investing activities | ||
Non-cash recognition of lease right-of-use assets | $ | 2,027 |
Supplemental disclosure of non-cash financing activities | ||
Paid-in-kind interest - New Secured Notes | $ | 7,682 |
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Global Brokerage Inc. published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 14:36:09 UTC.
