• Virtu Announces Fourth Quarter 2021 Results

    Source: Nasdaq GlobeNewswire / 08 Feb 2022 06:00:02   America/Chicago

    NEW YORK, Feb. 08, 2022 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the fourth quarter ended December 31, 2021.

    Fourth Quarter and Full Year Selected Highlights

    Fourth Quarter 2021:

    • Net income of $186.0 million; Normalized Adjusted Net Income1 of $220.6 million
    • Basic and diluted earnings per share of $0.90 and $0.89 respectively; Normalized Adjusted EPS1 of $1.19
    • Total revenues of $705.6 million; Trading income, net, of $513.4 million; Adjusted Net Trading Income1 of $485.6 million
    • Adjusted EBITDA1 of $328.4 million; Adjusted EBITDA Margin1 of 67.6%
    • Share buybacks of $101.6 million, or 3.7 million shares, under the Share Repurchase Program2

    Full Year 2021:

    • Net income of $827.2 million; Normalized Adjusted Net Income1 of $876.6 million
    • Basic and diluted earnings per share of $3.95 and $3.91 respectively; Normalized Adjusted EPS1 of $4.57
    • Total revenues of $2,811.5 million; Trading income, net of $2,105.2 million; Adjusted Net Trading Income1 of $1,909.9 million
    • Adjusted EBITDA1 of $1,301.2 million; Adjusted EBITDA Margin1 of 68.1%
    • Share buybacks of $405.2 million, or 14.7 million shares, under the Share Repurchase Program2

    The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on March 15, 2022 to shareholders of record as of March 1, 2022.

    Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
    Note 2: Shares repurchased calculated on a settlement date basis.

    Financial Results

    Fourth Quarter 2021:

    Total revenues increased 4.3% to $705.6 million for this quarter, driven primarily by higher trading volumes in U.S. equities, compared to $676.7 million for the same period in 2020. Trading income, net, increased 1.6% to $513.4 million for this quarter, compared to $505.5 million for the same period in 2020. Net income totaled $186.0 million for this quarter, compared to net income of $197.7 million in the prior year quarter.

    Basic and diluted earnings per share for this quarter were $0.90 and $0.89, compared to a basic and diluted earnings per share of $0.89 and $0.88, respectively, for the same period in 2020.

    Adjusted Net Trading Income increased 6.5% to $485.6 million for this quarter, compared to $455.9 million for the same period in 2020. Adjusted EBITDA decreased 4.5% to $328.4 million for this quarter, compared to $343.9 million for the same period in 2020.

    Normalized Adjusted Net Income, removing one-time integration costs and non-cash items, decreased 5.7% to $220.6 million for this quarter, compared to $234.0 million for the same period in 2020.

    Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $1.19 for this quarter, compared to $1.18 for the same period in 2020.

    Full Year 2021:

    Total revenues decreased 13.2% to $2,811.5 million for this year, also impacted by lower volatility and volumes across global markets, compared to $3,239.3 million for 2020, which had high volatility in the first and fourth quarters. Trading income, net, decreased 15.6% to $2,105.2 million for this year, compared to $2,493.2 million for 2020. There was net income of $827.2 million for this year, compared to net income of $1,120.9 million for 2020.

    Basic and diluted earnings per share were $3.95 and $3.91 for 2021, compared to basic and diluted earnings per share of $5.19 and $5.16, respectively, for the same period in 2020.

    Adjusted Net Trading Income decreased 15.9% to $1,909.9 million for this year, compared to $2,271.4 million for 2020. Adjusted EBITDA decreased 21.0% to $1,301.2 million for this year, compared to $1,648.0 million for 2020. Normalized Adjusted Net Income decreased 22.8% to $876.6 million for this year, compared to $1,135.1 million for 2020.

    Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $4.57 for 2021, compared to $5.76 for 2020.

    Operating Segment Information

    The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

    Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.

    Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company's capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

    Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

    The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three months and full years ended December 31, 2021 and 2020.


    Total revenues by segment
    (in thousands, unaudited)

      Three Months Ended December 31, 2021 Three Months Ended December 31, 2020
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $508,306 $5,048 $  $513,354  $466,006 $39,486 $  $505,492
    Commissions, net and technology services  8,844  134,958     143,802   42,926  105,250     148,176
    Interest and dividends income  49,137  1     49,138   15,269  62     15,331
    Other, net  1,204  290  (2,185)  (691)  4,841  4,725  (1,869)  7,697
    Total Revenues $567,491 $140,297 $(2,185) $705,603  $529,042 $149,523 $(1,869) $676,696


                     
      Year Ended December 31, 2021 Year Ended December 31, 2020
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $2,079,653 $25,541 $ $2,105,194 $2,455,182 $38,006 $  $2,493,188
    Commissions, net and technology services  40,955  573,534    614,489  52,453  548,057     600,510
    Interest and dividends income  75,311  73    75,384  61,485  634     62,119
    Other, net  7,127  1,067  8,224  16,418  24,222  63,386  (4,154)  83,454
    Total Revenues $2,203,046 $600,215 $8,224 $2,811,485 $2,593,342 $650,083 $(4,154) $3,239,271

    Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
    (in thousands, unaudited)

      Three Months Ended December 31, 2021 Three Months Ended December 31, 2020
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $508,306  $5,048  $ $513,354  $466,006  $39,486  $ $505,492 
    Commissions, net and technology services  8,844   134,958     143,802   42,926   105,250     148,176 
    Interest and dividends income  49,137   1     49,138   15,269   62     15,331 
    Brokerage, exchange, clearance fees and
    payments for order flow, net
      (131,955)  (24,594)    (156,549)  (175,760)  (9,314)    (185,074)
    Interest and dividends expense  (62,679)  (1,440)    (64,119)  (27,653)  (340)    (27,993)
    Adjusted Net Trading Income $371,653  $113,973  $ $485,626  $320,788  $135,144  $ $455,932 


                     
      Year Ended December 31, 2021 Year Ended December 31, 2020
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $2,079,653  $25,541  $ $2,105,194  $2,455,182  $38,006  $ $2,493,188 
    Commissions, net and technology services  40,955   573,534     614,489   52,453   548,057     600,510 
    Interest and dividends income  75,311   73     75,384   61,485   634     62,119 
    Brokerage, exchange, clearance fees and
    payments for order flow, net
      (634,783)  (110,651)    (745,434)  (662,994)  (95,849)    (758,843)
    Interest and dividends expense  (133,584)  (6,120)    (139,704)  (123,715)  (1,934)    (125,649)
    Adjusted Net Trading Income $1,427,552  $482,377  $ $1,909,929  $1,782,411  $488,914  $ $2,271,325 

    Financial Condition

    As of December 31, 2021, Virtu had $1,121.0 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,631.3 million.

    Share Repurchase Program

    Since inception of the program in November 2020 through January 31, 2022, the Company repurchased approximately 17.6 million shares of Class A Common Stock and Virtu Financial Units for approximately $482.8 million. Including the additional $750 million authorization from Virtu Financial Inc's Board of directors in the fourth quarter, 2021, the Company has approximately $737.2 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

    Earnings Conference Call Information

    Virtu Financial will host a conference call to review its fourth quarter 2021 financial performance today, February 8th, at 8:30 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

    Website Information

    We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

    Non-GAAP Financial Measures and Other Items

    To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), we use the following non-GAAP measures of financial performance:

    • "Adjusted Net Trading Income", which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our market making activities.

    • "EBITDA", which measures our operating performance by adjusting Net Income to exclude financing interest expense on our long-term borrowings, debt issue cost related to debt refinancing, prepayment, and commitment fees, depreciation and amortization, amortization of purchased intangibles and acquired capitalized software, and income tax expense, and "Adjusted EBITDA", which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share based compensation and other expenses, which includes reserves for legal matters, COVID-19 one-time costs and donations and Other net, and “Adjusted EBITDA Margin”, which compares Adjusted EBITDA to Adjusted Net Trading Income.

    • “Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items and other non-cash items, assuming that all vested and unvested non-voting common interest units in Virtu Financial LLC have been exchanged for shares of our Class A common stock, and applying an effective tax rate, which was approximately 24%.

    • “Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

    • they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
    • our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
    • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
    • they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
    • they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
    • they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

    Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Comprehensive Income (Unaudited)

      Three Months Ended
    December 31,
     Year Ended
    December 31,
    (in thousands, except share and per share data)  2021   2020   2021   2020 
             
    Revenues:        
    Trading income, net $513,354  $505,492  $2,105,194  $2,493,248 
    Interest and dividends income  49,138   15,331   75,384   62,119 
    Commissions, net and technology services  143,802   148,176   614,489   600,510 
    Other, net  (691)  7,697   16,418   83,454 
    Total revenues  705,603   676,696   2,811,485   3,239,331 
             
    Operating Expenses:        
    Brokerage, exchange, clearance fees and payments for order flow, net  156,549   185,074   745,434   758,843 
    Communication and data processing  52,164   51,414   211,988   213,750 
    Employee compensation and payroll taxes  103,110   66,445   376,282   393,536 
    Interest and dividends expense  64,119   27,993   139,704   125,649 
    Operations and administrative  22,513   21,079   88,149   94,558 
    Depreciation and amortization  18,052   16,013   67,816   66,741 
    Amortization of purchased intangibles and acquired capitalized software  16,580   18,077   69,668   74,254 
    Termination of office leases  23,011   9,265   28,138   9,608 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,609   1,597   6,590   28,879 
    Transaction advisory fees and expenses  694   205   843   2,941 
    Financing interest expense on long-term borrowings  20,185   19,971   79,969   87,735 
    Total operating expenses  478,586   417,133   1,814,581   1,856,494 
             
    Income before income taxes and noncontrolling interest  227,017   259,563   996,904   1,382,837 
    Provision for income taxes  41,059   61,880   169,670   261,924 
    Net income $185,958  $197,683  $827,234  $1,120,913 
             
    Noncontrolling interest  (81,902)  (85,405)  (350,356)  (471,716)
             
    Net income available for common stockholders $104,056  $112,278  $476,878  $649,197 
             
    Earnings per share:        
    Basic $0.90  $0.89  $3.95  $5.19 
    Diluted $0.89  $0.88  $3.91  $5.16 
             
    Weighted average common shares outstanding        
    Basic  111,971,432   122,775,185   117,339,539   121,692,443 
    Diluted  112,639,792   123,500,713   118,423,928   122,332,190 
             
    Comprehensive income:        
    Net income $185,958  $197,683  $827,234  $1,120,913 
    Other comprehensive income        
    Foreign exchange translation adjustment, net of taxes  (1,018)  11,458   (12,470)  15,318 
    Net change in unrealized cash flow hedges gains (losses), net of taxes  19,596   5,406   37,794   (59,019)
    Comprehensive income $204,536  $214,547  $852,558  $1,077,212 
    Less: Comprehensive income attributable to noncontrolling interest  (88,836)  (92,554)  (360,389)  (452,855)
    Comprehensive income available for common stockholders $115,700  $121,993  $492,169  $624,357 


    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.

      Three Months Ended
    December 31,
     Year Ended
    December 31,
    (in thousands, except percentages)  2021   2020   2021   2020 
             
    Reconciliation of Trading income, net to Adjusted Net Trading Income        
    Trading income, net $513,354  $505,492  $2,105,194  $2,493,248 
    Commissions, net and technology services  143,802   148,176   614,489   600,510 
    Interest and dividends income  49,138   15,331   75,384   62,119 
    Brokerage, exchange, clearance fees and payments for order flow, net  (156,549)  (185,074)  (745,434)  (758,843)
    Interest and dividends expense  (64,119)  (27,993)  (139,704)  (125,649)
    Adjusted Net Trading Income $485,626  $455,932  $1,909,929  $2,271,385 
             
    Reconciliation of Net Income to EBITDA and Adjusted EBITDA        
    Net income (loss)  185,958   197,683   827,234   1,120,913 
    Financing interest expense on long-term borrowings  20,185   19,971   79,969   87,735 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,609   1,597   6,590   28,879 
    Depreciation and amortization  18,052   16,013   67,816   66,741 
    Amortization of purchased intangibles and acquired capitalized software  16,580   18,077   69,668   74,254 
    Provision for income taxes  41,059   61,880   169,670   261,924 
    EBITDA $283,443  $315,221  $1,220,947  $1,640,446 
    Severance  1,535   3,094   6,112   10,286 
    Transaction advisory fees and expenses  694   205   843   2,941 
    Termination of office leases  23,011   9,265   28,138   9,608 
    Gain on sale of MATCHNow           (58,652)
    Other  2,270   (6,257)  (10,558)  (16,418)
    Share based compensation  17,491   22,328   55,751   59,838 
    Adjusted EBITDA $328,444  $343,856  $1,301,233  $1,648,049 
             
    Selected Operating Margins        
    Net Income Margin (1)  38.3%  43.4%  43.3%  49.3%
    EBITDA Margin (2)  58.4%  69.1%  63.9%  72.2%
    Adjusted EBITDA Margin (3)  67.6%  75.4%  68.1%  72.6%
             
    1 Calculated by dividing net income by Adjusted Net Trading Income.        
    2 Calculated by dividing EBITDA by Adjusted Net Trading Income.        
    3 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.        


    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)
    (Continued)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.

      Three Months Ended
    December 31,
     Year Ended
    December 31,
    (in thousands, except share and per share data)  2021  2020   2021   2020 
             
    Reconciliation of Net Income to Normalized Adjusted Net Income        
    Net income $185,958 $197,683  $827,234  $1,120,913 
    Provision for income taxes  41,059  61,880   169,670   261,924 
    Income before income taxes and noncontrolling interest $227,017 $259,563  $996,904  $1,382,837 
    Amortization of purchased intangibles and acquired capitalized software  16,580  18,077   69,668   74,254 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,609  1,597   6,590   28,879 
    Severance  1,535  3,094   6,112   10,286 
    Transaction advisory fees and expenses  694  205   843   2,941 
    Termination of office leases  23,011  9,265   28,138   9,608 
    Gain on sale of MATCHNow          (58,652)
    Other  2,270  (6,257)  (10,558)  (16,418)
    Share based compensation  17,491  22,328   55,751   59,838 
    Normalized Adjusted Net Income before income taxes $290,207 $307,872  $1,153,448  $1,493,573 
    Normalized provision for income taxes (1)  69,649  73,889   276,827   358,458 
    Normalized Adjusted Net Income $220,558 $233,983  $876,621  $1,135,115 
             
    Weighted Average Adjusted shares outstanding (2)  186,110,956  197,503,595   191,958,870   196,929,673 
             
    Normalized Adjusted EPS $1.19 $1.18  $4.57  $5.76 
             
    (1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
    (2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company's Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company's Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company's Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan and the Amended and Restated ITG 2007 Equity Plan during the three months and full years ended December 31, 2021 and 2020 as well as warrants issued in connection with the Founder Member Loan during the three months and full year ended December 31, 2020.


    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Financial Condition (Unaudited)

    (in thousands, except share data) December 31,
    2021
     December 31,
    2020
         
    Assets    
    Cash and cash equivalents $1,071,463 $889,559 
    Cash and securities segregated under regulations and other  49,490  117,446 
    Securities borrowed  1,349,322  1,425,016 
    Securities purchased under agreements to resell  119,453  22,866 
    Receivables from broker-dealers and clearing organizations  1,026,807  1,684,006 
    Receivables from customers  146,476  214,478 
    Trading assets, at fair value  4,256,955  3,115,731 
    Property, equipment and capitalized software, net  89,595  113,590 
    Operating lease right-of-use assets  225,328  268,864 
    Goodwill  1,148,926  1,148,926 
    Intangibles (net of accumulated amortization)  386,332  454,499 
    Deferred taxes  158,518  193,070 
    Other assets  291,306  317,747 
    Total assets  10,319,971  9,965,798 
         
    Liabilities and equity    
    Liabilities    
    Short-term borrowings, net  61,510  64,686 
    Securities loaned  1,142,048  948,256 
    Securities sold under agreements to repurchase  514,325  461,235 
    Payables to broker-dealers and clearing organizations  571,526  876,446 
    Payables to customers  54,999  118,826 
    Trading liabilities, at fair value  3,510,779  2,923,708 
    Tax receivable agreement obligations  259,282  271,165 
    Accounts payable and accrued expenses and other liabilities  457,942  491,818 
    Deferred tax liabilities  65   
    Operating lease liabilities  278,745  315,340 
    Long-term borrowings, net  1,605,132  1,639,280 
    Total liabilities  8,456,353  8,110,760 
         
    Total equity  1,863,618  1,855,038 
         
    Total liabilities and equity $10,319,971 $9,965,798 
         
      As of December 31, 2021
    Ownership of Virtu Financial LLC Interests: Interests %
    Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units  116,612,326  62.7%
    Non-controlling Interests (Virtu Financial LLC)  69,450,805  37.3%
    Total Virtu Financial LLC Interests  186,063,131  100.0%


    About Virtu Financial, Inc.

    Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

    Cautionary Note Regarding Forward-Looking Statements

    This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic and governmental and other responses thereto; fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

    CONTACT

            Investor & Media Relations
            Andrew Smith
            investor_relations@virtu.com


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