GLOBE NEWSWIRE – NEW YORK – ITG (NYSE:ITG), a leading independent broker and financial technology provider, today reported results for the quarter ended June 30, 2016.

Second quarter 2016 highlights included:

• GAAP net loss of $5.2 million, or $0.16 per diluted share compared to GAAP net loss of $10.2 million, or $0.30 per diluted share for the second quarter of 2015. GAAP results for the second quarter of 2016 include the impact of charges and a partial offsetting gain netting to $7.1 million, or $0.14 per diluted share after taxes, for (i) settlement costs and associated legal fees related to the arbitration with ITG’s former CEO, (ii) restructuring charges related to our U.S. high-touch trading and sales organizations and the closing of the U.S. matched-book securities lending operations and the Canadian arbitrage trading desk, (iii) the amount expensed for upfront cash and stock awards granted to ITG’s new CEO, and (iv) a gain primarily related to the receipt of proceeds from a business interruption insurance claim arising from a U.S. data center service interruption in August 2015. The GAAP net loss for the second quarter of 2015 includes a reserve for the Company’s settlement with the SEC and related legal and other fees totaling $22.6 million pre-tax, or $0.62 per diluted share after taxes.
• Adjusted loss of $0.8 million, or $0.02 per share, compared to adjusted net income of $11.4 million, or $0.32 per diluted share in the second quarter of 2015 in each case excluding the charges and gain listed above.
• Revenues of $120.6 million, compared to revenues of $140.5 million in the second quarter of 2015. Adjusted revenues, excluding the gain amount noted above, were $118.2 million.
• GAAP expenses of $130.3 million and adjusted expenses of $120.7 million compared to GAAP expenses of$149.4 million and adjusted expenses of $126.8 million in the second quarter of 2015.  Adjusted expenses exclude the charges listed above.
• Average daily trading volume in the U.S. of 132 million shares versus 183 million shares in the second quarter of 2015. POSIT^® average daily U.S. volume was 50 million shares compared to 93 million shares in the second quarter of 2015. Total average daily U.S. volume traded through POSIT Alert^® was 11 million shares, compared to 15 million shares in the second quarter of 2015.
• In Europe, average daily value traded in POSIT was $1.19 billion compared to $1.25 billion in the second quarter of 2015. Total average daily value traded through POSIT Alert in Europe increased 11% compared to the second quarter of 2015.
• The repurchase of 322,000 shares of common stock for a total of $5.3 million under ITG’s authorized share repurchase program. Repurchases since the first quarter of 2010 have totaled $246.0 million for a total of 16.2 million shares, resulting in a decrease in shares outstanding, net of issuances, of nearly 25%.

Commenting on the results, ITG Chief Executive Officer and President Frank Troise said, “Our performance in the second quarter demonstrates the imperative to invest in our business and in our team as we strive to be the global leader in technology-driven liquidity, execution, analytics and workflow solutions. I believe that with passion, discipline and a commitment to excellence we will capitalize on the significant opportunities available across all of our businesses. Over the last several months, we have conducted an end-to-end business review and developed a plan to grow our revenues and expand our margins. I look forward to sharing the details of how the plan is focused on strengthening our client franchise and delivering greater shareholder value on the earnings call this morning.”

Regional Segment Results

ITG’s North American revenues were $74.4 million in the second quarter of 2016 compared to $92.2 million in the second quarter of 2015. ITG reported a net loss of $0.5 million in North America in the second quarter of 2016, compared to net income of $6.3 million in the second quarter of 2015. U.S. revenues were $58.6 million, compared to $75.5 million in the second quarter of 2015 including the impacts of the sale of the energy research operations inDecember 2015 and the sale of the remaining investment research operations in May 2016. Canada revenues were$15.8 million, compared to $16.7 million in the second quarter of 2015, including the impact of currency translation.

ITG’s Europe and Asia Pacific revenues were $43.5 million in the second quarter of 2016 compared to $48.1 million in the second quarter of 2015, including the impact of currency translation. European revenues were $32.2 million, compared to $33.6 million in the second quarter of 2015. Asia Pacific revenues were $11.3 million, compared to$14.5 million in the second quarter of 2015. ITG’s Europe and Asia Pacific operations reported net income of $5.1 million in the second quarter of 2016 compared to $8.0 million in the second quarter of 2015.

Corporate activity reduced GAAP net income by $9.9 million in the second quarter of 2016, including the (i) settlement costs and associated legal fees related to the arbitration with ITG’s former CEO, (ii) restructuring charges related to the U.S. high-touch trading and sales organizations and the business closures, and (iii) after-tax impact of the amount expensed during the second quarter of 2016 for the upfront cash and stock awards to ITG’s new CEO. These charges were partially offset by a gain primarily related to a business interruption insurance claim. Corporate activity reduced GAAP net income by $24.5 million in the second quarter of 2015, including the reserve for the SECsettlement and related legal and other fees. Corporate activity includes investment income and non-operating gains, as well as costs not associated with operating ITG’s regional and product group business lines including, among others, the costs of being a public company, intangible amortization, interest expense, the costs of maintaining a global transfer pricing structure, foreign exchange gains and losses and certain non-operating items.

Year-to-Date Results

For the first six months of 2016, revenues were $245.3 million and adjusted revenues were $242.8 million. GAAP net loss for the first six months of 2016 was $7.7 million, or $0.23 per diluted share, and adjusted net income was $1.1 million, or $0.03 per diluted share. For the first six months of 2015, revenues were $290.2 million, GAAP net income was $6.5 million, or $0.18 per diluted share, and adjusted net income was $28.1 million, or $0.80 per diluted share.

The discussion of results above includes adjusted revenues, adjusted expenses, adjusted net income and related per share amounts, which are non-GAAP financial measures that are described in the attached tables along with a reconciliation of these non-GAAP financial measures to GAAP results.

Conference Call on 2Q16 Results and Business Review

A conference call to discuss the firm’s results, as well as the findings of the recent end-to-end business review, will be held today at 11:00 am ET. Those wishing to listen to the call should dial 1-844-881-0134 (1-412-317-6722 outside the U.S.) at least 15 minutes prior to the start of the call to ensure connection. The webcast and accompanying slideshow presentation will be available on ITG’s website at investor.itg.com. For those unable to listen to the live broadcast of the call, a replay will be available for one week by dialing 1-877-344-7529 (1-412-317-0088 outside the U.S.) and entering conference number 10089267. The replay will be available starting approximately one hour after the completion of the conference call.

About ITG

ITG applies technology and trading expertise to reduce implementation costs, helping clients improve investment performance. ITG provides liquidity, execution, analytics and workflow solutions to leading asset management and brokerage firms. Investment Technology Group, Inc. (NYSE: ITG) has offices in Asia Pacific, Europe and North Americaand offers trading services in more than 50 countries. For more information go to www.itg.com.