Global Brokerage Inc., formerly FXCM before the CFTC decision to ban the company and its leaders from operating in the US market, has released its Q4 2016 earnings report.
The firm made a repayment of $30 million on the Leucadia Credit Agreement in March 2017, cutting its outstanding debt by 19% to $128 million. The financial package was provided by Leucadia National Corp following the SNB flash crash in January 2015, which resulted in negative equity balances on FXCM customer accounts and significant losses to the company, then unable to meet regulatory capital requirements.
The net gain/loss on derivative liabilities consists of non-cash changes in the value of embedded derivatives associated with the Leucadia Letter and Credit Agreements.
Net revenues from continuing operations of $80.6 million in Q4 2016, and $8.7 million from discontinued operations. Discontinued operations accounted for a net loss of $11.1 million – $1.97 per diluted share – in Q4 2016, compared to $19.3 million – $3.54 per diluted share – in Q4 2015.
Combining continuing and discontinued operations, the adjusted EBITDA amounted to $30.8 million, up from $12.6 million in Q4 2015. The operating cash position totaled $226.2 million by the end of 2016, compared to $239.6 million in 2015. For the full year of 2016, the same indicator is of $58.4 million, up from $38.2 million in 2015.
Trading revenue from continuing operations in Q4 2016 increased to $79.5 million, compared to $65.4 million in Q4 2015. Global Brokerage, Inc. incurred in net income from continuing operations of $10.7 million (including a $6.4 million gain on derivative liabilities) in Q4 2016, which is a strong recovery from the net loss in Q4 2015, of $85.7 million (including a $99.9 million loss on derivative liabilities).
For the full year of 2016, Global Brokerage Inc. reached $276 million in trading revenue from continuing operations, up from $250.0 million in 2015. Net income from continuing operations was $96.7 million (including a $206.8 million net gain on derivative liabilities) in 2016, compared to a net loss of $513.6 million (including a $354.7 million loss on derivative liabilities) in 2015.