UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
FORM
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(Mark One) | |||
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| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
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For the quarterly period ended
OR | |||
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| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
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For the transition period from to |
Commission File Number:
(Exact name of registrant as specified in its charter)
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(Address of principal executive office)
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(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
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Accelerated filer o | Non-accelerated filer o | Smaller reporting company | Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o
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Title of each class | Trading Symbol | Name of the exchange on which registered |
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As of May 6, 2022, there were
QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2022
Table of Contents
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PART I | FINANCIAL INFORMATION |
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ITEM 1. | Financial Statements (Unaudited) |
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ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 37 | |
ITEM 3. | 55 | ||
ITEM 4. | 60 | ||
PART II. | OTHER INFORMATION |
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ITEM 1. | 61 | ||
ITEM 1A. | 61 | ||
ITEM 2. | 61 | ||
ITEM 3. | 61 | ||
ITEM 5. | 61 | ||
ITEM 6. | 62 | ||
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Interactive Brokers Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition
(Unaudited)
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| March 31, |
| December 31, | ||
(in millions, except share amounts) |
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| 2021 | ||
Assets |
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Cash and cash equivalents |
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Cash - segregated for regulatory purposes |
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Securities - segregated for regulatory purposes |
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Securities borrowed |
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Securities purchased under agreements to resell |
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Financial instruments owned, at fair value |
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Financial instruments owned |
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Financial instruments owned and pledged as collateral |
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Total financial instruments owned, at fair value |
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Receivables |
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Customers, less allowance for credit losses of $ |
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Brokers, dealers, and clearing organizations |
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Interest |
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Total receivables |
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Other assets |
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Total assets |
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Liabilities and equity |
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Short-term borrowings |
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Securities loaned |
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Securities sold under agreements to repurchase |
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Financial instruments sold, but not yet purchased, at fair value |
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Payables |
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Customers |
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Brokers, dealers, and clearing organizations |
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Affiliate |
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Accounts payable, accrued expenses and other liabilities |
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Interest |
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Total payables |
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Total liabilities |
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Commitments, contingencies and guarantees (see Note 13) |
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Equity |
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Stockholders’ equity |
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Common stock, $ |
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Class A – Authorized - |
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Class B – Authorized, Issued and Outstanding – |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive income, net of income taxes of $ |
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Treasury stock, at cost, |
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Total stockholders’ equity |
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Noncontrolling interests |
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Total equity |
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Total liabilities and equity |
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See accompanying notes to the condensed consolidated financial statements.
Interactive Brokers Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
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| Three Months Ended March 31, | ||||
(in millions, except share or per share amounts) |
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Revenues |
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Commissions |
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Other fees and services |
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Other income (loss) |
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Total non-interest income |
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Interest income |
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Interest expense |
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Total net interest income |
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Total net revenues |
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Non-interest expenses |
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Execution, clearing and distribution fees |
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Employee compensation and benefits |
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Occupancy, depreciation and amortization |
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Communications |
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General and administrative |
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Customer bad debt |
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Total non-interest expenses |
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Income before income taxes |
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Income tax expense |
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Net income |
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Less net income attributable to noncontrolling interests |
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Net income available for common stockholders |
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Earnings per share |
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Basic |
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Diluted |
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Weighted average common shares outstanding |
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Basic |
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Diluted |
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Comprehensive income |
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Net income available for common stockholders |
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Other comprehensive income |
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Cumulative translation adjustment, before income taxes |
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Income taxes related to items of other comprehensive income |
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Other comprehensive income (loss), net of tax |
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Comprehensive income available for common stockholders |
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Comprehensive income attributable to noncontrolling interests |
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Net income attributable to noncontrolling interests |
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Other comprehensive income - cumulative translation adjustment |
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Comprehensive income attributable to noncontrolling interests |
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See accompanying notes to the condensed consolidated financial statements.
Interactive Brokers Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
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| Three Months Ended March 31, | ||||
(in millions) |
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Cash flows from operating activities |
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Net income |
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Adjustments to reconcile net income to net cash from operating activities |
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Deferred income taxes |
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Depreciation and amortization |
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Amortization of right-of-use assets |
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Employee stock plan compensation |
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Unrealized gain on other investments, net |
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Bad debt expense |
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Shares distributed to customers under IBKR Promotions |
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Change in operating assets and liabilities |
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Securities - segregated for regulatory purposes |
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Securities borrowed |
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Securities purchased under agreements to resell |
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Financial instruments owned, at fair value |
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Receivables from customers |
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Other receivables |
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Other assets |
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Securities loaned |
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Securities sold under agreement to repurchase |
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Financial instruments sold, but not yet purchased, at fair value |
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Payable to customers |
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Other payables |
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Net cash provided by operating activities |
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Cash flows from investing activities |
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Purchases of other investments |
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Distributions received and proceeds from sales of other investments |
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Purchase of property, equipment and intangible assets |
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Net cash used in investing activities |
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Cash flows from financing activities |
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Short-term borrowings, net |
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Dividends paid to stockholders |
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Distributions from IBG LLC to noncontrolling interests |
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Issuances of senior notes |
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Redemptions of senior notes |
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Net cash used in financing activities |
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Effect of exchange rate changes on cash, cash equivalents and restricted cash |
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Net increase in cash, cash equivalents and restricted cash |
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Cash, cash equivalents and restricted cash at beginning of period |
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Cash, cash equivalents and restricted cash at end of period |
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Cash, cash equivalents and restricted cash |
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Cash and cash equivalents |
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Cash segregated for regulatory purposes |
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Cash, cash equivalents and restricted cash at end of period |
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Supplemental disclosures of cash flow information |
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Cash paid for interest |
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Cash paid for taxes, net |
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Cash paid for amounts included in lease liabilities |
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Non-cash financing activities |
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Adjustments to additional paid-in capital for changes in proportionate ownership in IBG LLC |
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Adjustments to noncontrolling interests for changes in proportionate ownership in IBG LLC |
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See accompanying notes to the condensed consolidated financial statements.
Interactive Brokers Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Changes in Equity
Three Months Ended March 31, 2022
(Unaudited)
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| Class A Common Stock |
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| Accumulated |
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| Additional |
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| Other |
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| Non- |
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| Issued |
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| Paid-In |
| Treasury |
| Retained |
| Comprehensive |
| Stockholders' |
| controlling |