Amendment: Interactive Brokers Group Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

REVISED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

				Three Months						Nine Months
				Ended September 30,						Ended September 30,
				2024			2023			2024			2023
				(in millions, except share and per share data)
Revenues:
	Commissions			$	435		$	333		$	1,220		$	1,012
	Other fees and services				72			52			199			142
	Other income (loss)				56			27			38			(17)
		Total non-interest income			563			412			1,457			1,137
	Interest income				1,888			1,643			5,476			4,535
	Interest expense				(1,086)			(910)			(3,135)			(2,471)
		Total net interest income			802			733			2,341			2,064
		Total net revenues			1,365			1,145			3,798			3,201
Non-interest expenses:
	Execution, clearing and distribution fees				116			98			332			286
	Employee compensation and benefits				145			127			436			391
	Occupancy, depreciation and amortization				26			25			77			74
	Communications				9			10			29			29
	General and administrative				153			45			255			166
	Customer bad debt				7			-			14			2
		Total non-interest expenses			456			305			1,143			948
Income before income taxes					909			840			2,655			2,253
Income tax expense					75			68			217			180
Net income					834			772			2,438			2,073
Net income attributable to noncontrolling interests					650			605			1,900			1,633
Net income available for common stockholders				$	184		$	167		$	538		$	440
Earnings per share:
	Basic			$	1.68		$	1.57		$	4.98		$	4.22
	Diluted			$	1.67		$	1.56		$	4.94		$	4.19
Weighted average common shares outstanding:
	Basic				108,757,991			106,233,557			107,852,597			104,271,921
	Diluted				109,536,360			107,011,427			108,774,195			105,184,572

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

REVISED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

				Three Months						Nine Months
				Ended September 30,						Ended September 30,
				2024			2023			2024			2023
				(in millions, except share and per share data)
Comprehensive income:
	Net income available for common stockholders			$	184		$	167		$	538		$	440
	Other comprehensive income:
		Cumulative translation adjustment, before income taxes			39			(19)			11			(7)
		Income taxes related to items of other comprehensive income			-			-			-			-
	Other comprehensive income (loss), net of tax				39			(19)			11			(7)
Comprehensive income available for common stockholders				$	223		$	148		$	549		$	433
Comprehensive earnings per share:
	Basic			$	2.05		$	1.39		$	5.08		$	4.15
	Diluted			$	2.03		$	1.38		$	5.04		$	4.12
Weighted average common shares outstanding:
	Basic				108,757,991			106,233,557			107,852,597			104,271,921
	Diluted				109,536,360			107,011,427			108,774,195			105,184,572
Comprehensive income attributable to noncontrolling interests:
	Net income attributable to noncontrolling interests			$	650		$	605		$	1,900		$	1,633
	Other comprehensive income - cumulative translation adjustment				114			(57)			30			(19)
Comprehensive income attributable to noncontrolling interests				$	764		$	548		$	1,930		$	1,614

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

REVISED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

					September 30, 2024			December 31, 2023
					(in millions)
Assets
Cash and cash equivalents					$	3,595		$	3,753
Cash - segregated for regulatory purposes						35,216			28,840
Securities - segregated for regulatory purposes						31,103			35,386
Securities borrowed						7,513			5,835
Securities purchased under agreements to resell						8,176			5,504
Financial instruments owned, at fair value						2,949			1,488
Receivables from customers, net of allowance for credit losses						56,006			44,472
Receivables from brokers, dealers and clearing organizations						2,210			1,643
Other assets						1,758			1,502
	Total assets				$	148,526		$	128,423
Liabilities and equity
Liabilities
Short-term borrowings					$	33		$	17
Securities loaned						16,818			11,347
Financial instruments sold but not yet purchased, at fair value						381			193
Other payables:
	Customers					112,579			101,012
	Brokers, dealers and clearing organizations					1,202			590
	Other payables					1,508			1,197
						115,289			102,799
	Total liabilities					132,521			114,356
Equity
Stockholders' equity						4,145			3,584
Noncontrolling interests						11,860			10,483
	Total equity					16,005			14,067
	Total liabilities and equity				$	148,526		$	128,423
		September 30, 2024				December 31, 2023
Ownership of IBG LLC Membership Interests		Interests		%		Interests			%
IBG, Inc.		108,879,779		25.8%		107,049,483			25.4%
Noncontrolling interests (IBG Holdings LLC)		313,643,354		74.2%		313,976,354			74.6%
Total IBG LLC membership interests		422,523,133		100.0%		421,025,837			100.0%

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

REVISED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

			Three Months						Nine Months
			Ended September 30,						Ended September 30,
			2024			2023			2024			2023
			(in millions)
Adjusted net revenues1
Net revenues - GAAP			$	1,365		$	1,145		$	3,798		$	3,201
Non-GAAP adjustments
	Currency diversification strategy, net			(25)			17			(3)			71
	Mark-to-market on investments2			(13)			(23)			38			(54)
Total non-GAAP adjustments				(38)			(6)			35			17
Adjusted net revenues			$	1,327		$	1,139		$	3,833		$	3,218
Adjusted income before income taxes1
Income before income taxes - GAAP			$	909		$	840		$	2,655		$	2,253
Non-GAAP adjustments
	Currency diversification strategy, net			(25)			17			(3)			71
	Mark-to-market on investments2			(13)			(23)			38			(54)
Total non-GAAP adjustments				(38)			(6)			35			17
Adjusted income before income taxes			$	871		$	834		$	2,690		$	2,270
Adjusted pre-tax profit margin				66%			73%			70%			71%

			Three Months						Nine Months
			Ended September 30,						Ended September 30,
			2024			2023			2024			2023
			(in millions)
Adjusted net income available for common stockholders1
Net income available for common stockholders - GAAP			$	184		$	167		$	538		$	440
Non-GAAP adjustments
	Currency diversification strategy, net			(6)			4			(1)			18
	Mark-to-market on investments2			(3)			(6)			10			(14)
	Income tax effect of above adjustments3			2			1			(2)			(0)
Total non-GAAP adjustments				(8)			(1)			7			4
Adjusted net income available for common stockholders			$	176		$	166		$	545		$	444
Note: Amounts may not add due to rounding.

			Three Months						Nine Months
			Ended September 30,						Ended September 30,
			2024			2023			2024			2023
			(in dollars)
Adjusted diluted EPS1
Diluted EPS - GAAP			$	1.67		$	1.56		$	4.94		$	4.19
Non-GAAP adjustments
	Currency diversification strategy, net			(0.06)			0.04			(0.01)			0.17
	Mark-to-market on investments2			(0.03)			(0.05)			0.09			(0.13)
	Income tax effect of above adjustments3			0.02			0.01			(0.02)			(0.00)
Total non-GAAP adjustments				(0.07)			(0.01)			0.06			0.04
Adjusted diluted EPS			$	1.61		$	1.55		$	5.00		$	4.22
Diluted weighted average common shares outstanding				109,536,360			107,011,427			108,774,195			105,184,572
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.

•	We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments2.

•	We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments.

•	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 currency diversification strategy and our net mark-to-market gains (losses) on investments.

•	We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.

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 currency diversification strategy and our mark-to-market on investments 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 investments in equity securities that do not qualify for equity method accounting, which are measured at fair value; on our U.S. government and municipal securities portfolios, which are typically held to maturity; and on certain other investments, including equity securities taken over by the Company as a customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024.

³ The income tax effect is estimated using the statutory income tax rates applicable to the Company.