NEW YORK, June 27, 2012 /PRNewswire/ -- BGC Partners, Inc. (NASDAQ: BGCP) ("BGC Partners," "BGC," or "the Company"), a leading global brokerage company primarily servicing the wholesale financial and property markets, today updated its financial outlook for the second quarter ending June 30, 2012.
The Company's financial results are expected to remain within the range of its previously stated guidance for the second quarter of 2012. BGC expects distributable earnings revenues to be above the mid-point of this range and distributable earnings to be below the mid-point. The Company's second quarter outlook was first published in its financial results press release dated May 3, 2012, and was as follows:
- The Company expected to generate distributable earnings revenues of between $440 million and $470 million, compared with $364.8 million a year earlier.
- BGC expected pre-tax distributable earnings to be between approximately $54 million and $62 million versus $62.4 million in the second quarter of 2011.
- The Company anticipated its effective tax rate for distributable earnings to be approximately 14 percent for the second quarter of 2012 compared with 15.0 percent in the prior year period.
- BGC expected post-tax distributable earnings to be between approximately $46 million and $53 million versus $52.0 million in the second quarter of 2011.
The above outlook included at least $110 million in distributable earnings revenues from Real Estate. The Company now expects this figure to be at least $125 million.Distributable Earnings BGC Partners uses non-GAAP financial measures including "Revenues for distributable earnings," "pre-tax distributable earnings" and "post-tax distributable earnings," which are supplemental measures of operating performance that are used by management to evaluate the financial performance of the Company and its subsidiaries. BGC Partners believes that distributable earnings best reflects the operating earnings generated by the Company on a consolidated basis and are the earnings which management considers available for distribution to BGC Partners, Inc. and its common stockholders, as well as to holders of BGC Holdings partnership units during any period.