Diluted Earnings Per Share of $0.43, Adjusted Diluted Earnings Per Share1 of $0.78.

Pretax Income of $234 Million on $464 Million in Net Revenues.

Adjusted Pretax Income of $420 Million on $650 Million in Adjusted Net Revenues1.

Declares Quarterly Dividend of $0.10 Per Share.

Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, reported diluted earnings per share of $0.43 for the quarter ended September 30, 2021 compared to $0.58 for the same period in 2020, and adjusted diluted earnings per share of $0.78 for this quarter compared to $0.53 for the year-ago quarter.

Net revenues were $464 million and income before income taxes was $234 million for this quarter, compared to net revenues of $548 million and income before income taxes of $334 million for the same period in 2020. Adjusted net revenues were $650 million and adjusted income before income taxes was $420 million for this quarter, compared to adjusted net revenues of $518 million and adjusted income before income taxes of $304 million for the same period in 2020.

Financial Highlights

  • Commission revenue increased $32 million, or 11%, from the year-ago quarter on higher customer stock and options trading volumes.
  • Net interest income increased $79 million, or 41%, from the year-ago quarter on higher margin loan balances and strong securities lending activity.
  • Other income decreased $199 million from the year-ago quarter. This decrease was mainly comprised of (1) $191 million related to our strategic investment in Up Fintech Holding Limited (“Tiger Brokers”), which decreased to a $185 million mark-to-market loss this quarter from a $6 million mark-to-market gain in the same period in 2020; and (2) $30 million related to our currency diversification strategy, which lost $3 million this quarter compared to a gain of $27 million in the same period in 2020; partially offset by (3) the non-recurrence of a $13 million impairment loss on our investment in OneChicago Exchange recognized in the year-ago quarter.
  • 50% pretax profit margin for this quarter, down from 61% in the year-ago quarter. 65% adjusted pretax profit margin for this quarter, up from 59% in the year-ago quarter.
  • Total equity of $10.0 billion.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.10 per share. This dividend is payable on December 14, 2021 to shareholders of record as of December 1, 2021.

Business Highlights

  • Customer accounts increased 57% from the year-ago quarter to 1.54 million.
  • Customer equity grew 52% from the year-ago quarter to $353.8 billion.
  • Total DARTs2 increased 24% from the year-ago quarter to 2.26 million.
  • Cleared DARTs increased 24% from the year-ago quarter to 2.02 million.
  • Customer credits increased 22% from the year-ago quarter to $86.2 billion.
  • Customer margin loans increased 67% from the year-ago quarter to $50.2 billion.

Effects of Foreign Currency Diversification

In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $43 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.41%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $3 million) and (2) Other Comprehensive Income (loss of $40 million).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, October 19, 2021, at 4:30 p.m. ET to discuss its quarterly results. Investors who would like to listen to the conference call live should dial 877-324-1965 (U.S. domestic) and 631-291-4512 (international). The number should be dialed approximately ten minutes prior to the start of the conference call. Ask for the “Interactive Brokers Conference Call.” The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its February 26, 2021, Best Online Broker Review.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

______________________

1 See the reconciliation of non-GAAP financial measures starting on page 9.

2 Daily average revenue trades (DARTs) are based on customer orders.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

          Three Months   Nine Months          Ended September 30,   Ended September 30,        

2021

 

2020

 

2021

 

2020

        (in millions, except share and per share data)                               Revenues:                           Commissions   $

311

  $

279

  $

1,030

  $

824

  Other fees and services  

49

 

45

 

160

 

123

  Other income (loss)    

(170)

   

29

   

68

   

25

    Total non-interest income    

190

   

353

   

1,258

   

972

                                Interest income    

325

   

240

   

1,022

   

853

  Interest expense    

(51)

   

(45)

   

(169)

   

(206)

    Total net interest income    

274

   

195

   

853

   

647

    Total net revenues     

464

   

548

   

2,111

   

1,619

                              Non-interest expenses:                           Execution, clearing and distribution fees    

61

   

74

   

183

   

227

  Employee compensation and benefits    

98

   

77

   

291

   

239

  Occupancy, depreciation and amortization    

19

   

17

   

58

   

51

  Communications    

8

   

6

   

24

   

19

  General and administrative     

44

   

37

   

138

   

206

  Customer bad debt    

                        -

   

3

   

3

   

13

    Total non-interest expenses     

230

   

214

   

697

   

755

Income before income taxes    

234

   

334

   

1,414

   

864

Income tax expense    

28

   

32

   

116

   

65

Net income    

206

   

302

   

1,298

   

799

Net income attributable to noncontrolling interests    

164

   

256

   

1,057

   

675

Net income available for common stockholders   $

42

  $

46

  $

241

  $

124

                              Earnings per share:                           Basic    $

0.44

  $

0.59

  $

2.60

  $

1.60

  Diluted   $

0.43

  $

0.58

  $

2.58

  $

1.58

                              Weighted average common shares outstanding:                           Basic     

96,229,958

   

78,509,625

   

92,814,767

   

77,543,008

  Diluted    

96,989,968

   

79,120,548

   

93,671,689

   

78,243,699

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

          Three Months   Nine Months          Ended September 30,   Ended September 30,        

2021

 

2020

 

2021

 

2020

          (in millions, except share and per share data)                               Comprehensive income:                           Net income available for common stockholders   $

42

  $

46

  $

241

  $

124

  Other comprehensive income:                             Cumulative translation adjustment, before income taxes    

                     (9)

   

                       8

   

                   (21)

   

                       5

    Income taxes related to items of other comprehensive income    

                        -

   

                        -

   

                        -

   

                        -

  Other comprehensive income (loss), net of tax    

                     (9)

   

                       8

   

                   (21)

   

                       5

Comprehensive income available for common stockholders   $

33

  $

54

  $

220

  $

129

                              Comprehensive earnings per share:                           Basic    $

0.34

  $

0.69

  $

2.37

  $

1.67

  Diluted    $

0.34

  $

0.69

  $

2.35

  $

1.65

                              Weighted average common shares outstanding:                           Basic     

96,229,958

   

78,509,625

   

92,814,767

   

77,543,008

  Diluted     

96,989,968

   

79,120,548

   

93,671,689

   

78,243,699

                                                            Comprehensive income attributable to noncontrolling interests:                           Net income attributable to noncontrolling interests   $

164

  $

256

  $

1,057

  $

675

  Other comprehensive income - cumulative translation adjustment    

(31)

   

37

   

(74)

   

24

Comprehensive income attributable to noncontrolling interests   $

133

  $

293

  $

983

  $

699

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

            September 30,2021   December 31,2020       (in millions)                 Assets                 Cash and cash equivalents       $

                  2,838

  $

                  4,292

Cash - segregated for regulatory purposes        

                23,125

   

                15,903

Securities - segregated for regulatory purposes        

                14,400

   

                27,821

Securities borrowed        

                  3,811

   

                  4,956

Securities purchased under agreements to resell        

                  6,108

   

                     792

Financial instruments owned, at fair value        

                     659

   

                     630

Receivables from customers, net of allowance for credit losses        

                50,503

   

                39,333

Receivables from brokers, dealers and clearing organizations        

                  4,038

   

                  1,254

Other assets        

                     800

   

                     698

                 Total assets       $

106,282

  $

95,679

                  Liabilities and equity                                   Liabilities                 Short-term borrowings       $

                       28

  $

                     118

Securities loaned        

                10,535

   

                  9,838

Financial instruments sold but not yet purchased, at fair value        

                     233

   

                     153

Other payables:                 Customers        

                84,087

   

                75,882

Brokers, dealers and clearing organizations        

                     781

   

                     182

Other payables        

                     607

   

                     503

       

                85,475

   

                76,567

                Total liabilities        

                96,271

   

                86,676

                Equity                 Stockholders' equity        

                  2,331

   

                  1,951

Noncontrolling interests        

                  7,680

   

                  7,052

 Total equity        

                10,011

   

                  9,003

                  Total liabilities and equity       $

106,282

  $

95,679

                                September 30,2021   December 31,2020 Ownership of IBG LLC Membership Interests

Interests

 

 %

 

Interests

   

 %

                IBG, Inc.

98,175,951

 

23.5%

 

90,780,444

   

21.8%

Noncontrolling interests (IBG Holdings LLC)

319,880,492

 

76.5%

 

325,960,034

   

78.2%

                Total IBG LLC membership interests

418,056,443

 

100.0%

 

416,740,478

   

100.0%

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA

  TRADE VOLUMES:                                 (in 000's, except %)                                   Cleared        Non-Cleared                       Avg. Trades   Customer   %   Customer   %   Principal   %   Total   %   per U.S. Period Trades   Change   Trades   Change   Trades   Change   Trades   Change   Trading Day

2018

               328,099

     

       21,880

     

       18,663

     

     368,642

     

             1,478

2019

               302,289

 

 (8%)

 

       26,346

 

20%

 

       17,136

 

 (8%)

 

     345,771

 

 (6%)

 

             1,380

2020

               620,405

 

105%

 

       56,834

 

116%

 

       27,039

 

58%

 

     704,278

 

104%

 

             2,795

 

                                 

3Q2020

               160,015

     

       14,701

     

         7,453

     

     182,169

     

             2,846

3Q2021

               193,218

 

21%

 

       18,106

 

23%

 

         8,228

 

10%

 

     219,552

 

21%

 

             3,431

 

                                 

2Q2021

               196,659

     

       16,130

     

         7,975

     

     220,764

     

             3,504

3Q2021

               193,218

 

 (2%)

 

       18,106

 

12%

 

         8,228

 

3%

 

     219,552

 

 (1%)

 

             3,431

CONTRACT AND SHARE VOLUMES:                 (in 000's, except %)                                                 TOTAL   Options   %   Futures1   %   Stocks   % Period   (contracts)   Change   (contracts)   Change   (shares)   Change

2018

 

     408,406

     

     151,762

     

   210,257,186

   

2019

 

     390,739

 

 (4%)

 

     128,770

 

 (15%)

 

   176,752,967

 

 (16%)

2020

 

     624,035

 

60%

 

     167,078

 

30%

 

   338,513,068

 

92%

 

                       

3Q2020

 

     163,972

     

       39,186

     

     87,514,614

   

3Q2021

 

     214,988

 

31%

 

       36,940

 

 (6%)

 

   172,828,874

 

97%

 

                       

2Q2021

 

     196,715

     

       35,061

     

   172,099,915

   

3Q2021

 

     214,988

 

9%

 

       36,940

 

5%

 

   172,828,874

 

0%

                          ALL CUSTOMERS Options   %   Futures1   %   Stocks   % Period   (contracts)   Change   (contracts)   Change   (shares)   Change

2018

 

     358,852

     

     148,485

     

   198,909,375

   

2019

 

     349,287

 

 (3%)

 

     126,363

 

 (15%)

 

   167,826,490

 

 (16%)

2020

 

     584,195

 

67%

 

     164,555

 

30%

 

   331,263,604

 

97%

 

                       

3Q2020

 

     153,612

     

       38,685

     

     85,893,357

   

3Q2021

 

     205,797

 

34%

 

       36,473

 

 (6%)

 

   172,082,316

 

100%

 

                       

2Q2021

 

     189,073

     

       34,635

     

   171,417,373

   

3Q2021

 

     205,797

 

9%

 

       36,473

 

5%

 

   172,082,316

 

0%

                          CLEARED CUSTOMERS Options   %   Futures1   %   Stocks   % Period   (contracts)   Change   (contracts)   Change   (shares)   Change

2018

 

     313,795

     

     146,806

     

   194,012,882

   

2019

 

     302,068

 

 (4%)

 

     125,225

 

 (15%)

 

   163,030,500

 

 (16%)

2020

 

     518,965

 

72%

 

     163,101

 

30%

 

   320,376,365

 

97%

 

                       

3Q2020

 

     137,660

     

       38,405

     

     83,246,086

   

3Q2021

 

     186,656

 

36%

 

       36,245

 

 (6%)

 

   169,002,045

 

103%

 

                       

2Q2021

 

     170,902

     

       34,355

     

   168,601,027

   

3Q2021

 

     186,656

 

9%

 

       36,245

 

6%

 

   169,002,045

 

0%

                          1 Includes options on futures

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA, CONTINUED

  PRINCIPAL TRANSACTIONS   Options   %   Futures1   %   Stocks   % Period   (contracts)   Change   (contracts)   Change   (shares)   Change

2018

 

       49,554

     

         3,277

     

     11,347,811

   

2019

 

       41,452

 

 (16%)

 

         2,407

 

 (27%)

 

       8,926,477

 

 (21%)

2020

 

       39,840

 

 (4%)

 

         2,523

 

5%

 

       7,249,464

 

 (19%)

 

                       

3Q2020

 

       10,360

     

            501

     

       1,621,257

   

3Q2021

 

         9,191

 

 (11%)

 

            467

 

 (7%)

 

          746,558

 

 (54%)

 

                       

2Q2021

 

         7,642

     

            426

     

          682,542

   

3Q2021

 

         9,191

 

20%

 

            467

 

10%

 

          746,558

 

9%

                          1 Includes options on futures                     CUSTOMER STATISTICS                               Year over Year  

3Q2021

   

3Q2020

  % Change    Total Accounts (in thousands)  

                1,536

   

                   981

 

57%

   Customer Equity (in billions)1 $

353.8

  $

232.7

 

52%

                   Cleared DARTs (in thousands)  

                2,017

   

                1,629

 

24%

   Total Customer DARTs (in thousands)  

                2,263

   

                1,832

 

24%

                Cleared Customers                   Commission per Cleared Commissionable Order2 $

2.46

  $

2.69

 

 (9%)

   Cleared Avg. DARTs per Account (Annualized)  

                   343

   

                   442

 

 (22%)

                Consecutive Quarters  

3Q2021

   

2Q2021

  % Change    Total Accounts (in thousands)  

                1,536

   

                1,414

 

9%

   Customer Equity (in billions)1 $

353.8

  $

363.5

 

 (3%)

                   Cleared DARTs (in thousands)  

                2,017

   

                2,082

 

 (3%)

   Total Customer DARTs (in thousands)  

                2,263

   

                2,304

 

 (2%)

                Cleared Customers                   Commission per Cleared Commissionable Order2 $

2.46

  $

2.38

 

3%

   Cleared Avg. DARTs per Account (Annualized)  

                   343

   

                   382

 

 (10%)

                1 Excludes non-customers.               2 Commissionable Order - a customer order that generates commissions.        

Three Months

 

Nine Months

       

Ended September 30,

 

Ended September 30,

       

2021

 

2020

 

2021

 

2020

                                      (in millions) Average interest-earning assets                           Segregated cash and securities   $

                37,239

  $

                43,589

  $

                41,212

  $

                41,283

  Customer margin loans    

                46,636

   

                28,490

   

                43,611

   

                27,052

  Securities borrowed    

                  3,567

   

                  4,477

   

                  3,836

   

                  4,448

  Other interest-earning assets    

                  7,426

   

                  5,075

   

                  6,751

   

                  5,288

  FDIC sweeps1    

                  2,707

   

                  2,982

   

                  2,758

   

                  2,864

        $

                97,575

  $

                84,613

  $

                98,168

  $

                80,935

                              Average interest-bearing liabilities                           Customer credit balances   $

                78,625

  $

                68,867

  $

                78,063

  $

                65,716

  Securities loaned    

                10,489

   

                  5,756

   

                10,891

   

                  5,304

  Other interest-bearing liabilities    

                        -  

   

                     251

   

                     145

   

                     313

        $

                89,114

  $

                74,874

  $

                89,099

  $

                71,333

                              Net interest income                           Segregated cash and securities, net   $

                        (4)

  $

                       14

  $

                        (4)

  $

                     159

  Customer margin loans2    

                     141

   

                       83

   

                     386

   

                     287

  Securities borrowed and loaned, net    

                     123

   

                       86

   

                     434

   

                     228

  Customer credit balances, net2    

                         8

   

                         8

   

                       25

   

                      (55)

  Other net interest income1/3    

                         9

   

                       10

   

                       25

   

                       47

    Net interest income3   $

                     277

  $

                     201

  $

                     866

  $

                     666

                              Net interest margin ("NIM")    

1.13%

   

0.94%

   

1.18%

   

1.10%

                              Annualized yields                           Segregated cash and securities    

-0.04%

   

0.13%

   

-0.01%

   

0.51%

  Customer margin loans    

1.20%

   

1.16%

   

1.18%

   

1.41%

  Customer credit balances    

-0.04%

   

-0.05%

   

-0.04%

   

0.11%

                             

1

Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.                              

2

Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).     

3

Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s consolidated statements of comprehensive income. For the three and nine months ended September 30, 2021 and 2020, $2 million, $6 million, $14 million, and $14 million were reported in other fees and services, respectively. For the three and nine months ended September 30, 2021 and 2020, $0 million, $0 million, -$1 million, and $5 million were reported in other income, respectively.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

        Three Months   Nine Months       Ended September 30,   Ended September 30,      

2021

 

2020

 

2021

 

2020

                                  (in millions)                             Adjusted net revenues1                         Net revenues - GAAP   $

464

  $

548

  $

2,111

  $

1,619

                            Non-GAAP adjustments                           Currency diversification strategy, net    

3

   

(27)

   

14

   

6

  Mark-to-market on investments2    

184

   

                     (3)

   

(28)

   

                     (3)

  Remeasurement of TRA liability3    

(1)

   

                        -

   

(1)

   

                        -

Total non-GAAP adjustments    

186

   

(30)

   

(15)

   

3

Adjusted net revenues   $

650

  $

518

  $

2,096

  $

1,622

                            Adjusted income before income taxes1                         Income before income taxes - GAAP   $

234

  $

334

  $

1,414

  $

864

                            Non-GAAP adjustments                           Currency diversification strategy, net    

3

   

(27)

   

14

   

6

  Mark-to-market on investments2    

                   184

   

                     (3)

   

                   (28)

   

                     (3)

  Remeasurement of TRA liability3    

                     (1)

   

                        -

   

                     (1)

   

                        -

  Customer compensation expense4    

                        -

   

                        -

   

                        -

   

                   103

  Bad debt expense5    

                        -

   

                        -

   

                        -

   

                       1

Total non-GAAP adjustments    

                   186

   

                   (30)

   

                   (15)

   

                   107

Adjusted income before income taxes   $

420

  $

304

  $

1,399

  $

971

                            Adjusted pre-tax profit margin    

65%

   

59%

   

67%

   

60%

      Three Months   Nine Months       Ended September 30,   Ended September 30,      

2021

 

2020

 

2021

 

2020

                                  (in millions) Adjusted net income available for common stockholders1                         Net income available for common stockholders - GAAP   $

42

  $

46

  $

241

  $

124

                            Non-GAAP adjustments                           Currency diversification strategy, net    

                       1

   

(5)

   

3

   

1

  Mark-to-market on investments2    

                     43

   

                     (1)

   

                     (6)

   

(1)

  Remeasurement of TRA liability3    

                     (1)

   

                        -

   

                     (1)

   

                        -

  Customer compensation expense4    

                        -

   

                        -

   

                        -

   

                     19

  Bad debt expense5    

                        -

   

                        -

   

                        -

   

0

  Income tax effect of above adjustments6    

                   (10)

   

                       1

   

                       1

   

(4)

  Remeasurement of deferred income taxes7    

                       1

   

                        -

   

                       1

   

                        -

Total non-GAAP adjustments    

                     33

   

                     (4)

   

                     (2)

   

                     16

Adjusted net income available for common stockholders   $

75

  $

42

  $

239

  $

140

                            Note: Amounts may not add due to rounding.                                                           Three Months   Nine Months       Ended September 30,   Ended September 30,      

2021

 

2020

 

2021

 

2020

                                  (in dollars) Adjusted diluted EPS1                         Diluted EPS - GAAP   $

0.43

  $

0.58

  $

2.58

  $

1.58

                            Non-GAAP adjustments                           Currency diversification strategy, net    

0.01

   

(0.06)

   

0.03

   

0.02

  Mark-to-market on investments2    

0.44

   

(0.01)

   

(0.06)

   

(0.01)

  Remeasurement of TRA liability3    

(0.01)

   

0.00

   

(0.01)

   

0.00

  Customer compensation expense4    

0.00

   

0.00

   

0.00

   

0.24

  Bad debt expense5    

0.00

   

0.00

   

0.00

   

0.00

  Income tax effect of above adjustments6    

(0.10)

   

0.02

   

0.01

   

(0.05)

  Remeasurement of deferred income taxes7    

0.01

   

0.00

   

0.01

   

0.00

Total non-GAAP adjustments    

0.34

   

(0.05)

   

(0.02)

   

0.20

Adjusted diluted EPS   $

0.78

  $

0.53

  $

2.55

  $

1.79

                            Diluted weighted average common shares outstanding    

96,989,968

   

79,120,548

   

93,671,689

   

78,243,699

                            Note: Amounts may not add due to rounding.                        

Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.

1 Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share (“EPS”) are non-GAAP financial measures as defined by SEC Regulation G.

  • We define adjusted net revenues as net revenues adjusted to remove the effect of our GLOBAL currency diversification strategy, our net mark-to-market gains (losses) on investments2, and the remeasurement of our Tax Receivable Agreement (“TRA”) liability3.
  • We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our GLOBAL currency diversification strategy, our net mark-to-market gains (losses) on investments, the remeasurement of our TRA liability, customer compensation expenses4, and unusual bad debt expense5.
  • We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our GLOBAL currency diversification strategy, our mark-to-market gains (losses) on investments, the remeasurement of our TRA liability, customer compensation expenses, unusual bad debt expense, and the remeasurement of certain deferred tax assets7.

Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our GLOBAL currency diversification strategy, our mark-to-market on investments, the remeasurement of our TRA liability, customer compensation expenses, unusual bad debt expense, and the remeasurement of certain deferred tax assets are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS.

2 Mark-to-market on investments represents the net mark-to-market gains (losses) on our U.S. government securities portfolio, which are typically held to maturity, investments in equity securities that do not qualify for equity method accounting which are measured at fair value, and certain other investments, including equity securities taken over by the Company from customers related to losses on margin loans.

3 Remeasurement of our TRA liability represents the change in the amount payable to IBG Holdings LLC under the TRA, primarily due to changes in the Company’s effective tax rates. For further information refer to Note 4 – Equity and Earnings per Share under Part II, Item 8 – Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10 K filed with the Securities Exchange Commission (“SEC”) on February 26, 2021.

4 Customer compensation expenses were incurred to compensate certain affected customers in connection with their losses on West Texas Intermediate Crude Oil contracts on April 20, 2020, as previously disclosed.

5 Unusual bad debt expense includes material losses on margin loans resulting from unusual events that occur in the marketplace. For the nine months ended September 30, 2020, unusual bad debt expense reflects losses incurred by customers in excess of the equity in their accounts, related to the West Texas Intermediate Crude Oil event, as previously disclosed.

6 The income tax effect is estimated using the corporate income tax rates applicable to the Company.

7 Remeasurement of certain deferred tax assets represents the change in the unamortized balance of deferred tax assets related to the step-up in basis arising from the acquisition of interests in IBG LLC, primarily due to changes in the Company’s effective tax rates. For further information refer to Note 4 – Equity and Earnings per Share under Part II, Item 8 – Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10 K filed with the Securities Exchange Commission (“SEC”) on February 26, 2021.

For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, investor-relations@ibkr.com or Media: Rob Garfield, media@ibkr.com

Grafico Azioni Interactive Brokers (NASDAQ:IBKR)
Storico
Da Ott 2021 a Nov 2021 Clicca qui per i Grafici di Interactive Brokers
Grafico Azioni Interactive Brokers (NASDAQ:IBKR)
Storico
Da Nov 2020 a Nov 2021 Clicca qui per i Grafici di Interactive Brokers