, Sept. 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 real estate markets, today updated its financial outlook for the third quarter ending
September 30, 2012
The Company's financial results are expected to be within the range of its previously stated guidance for the third quarter of 2012. BGC expects distributable earnings revenues to be around the high-end of this range and for pre-tax distributable earnings to be around the mid-point. The Company's third quarter outlook was first published in its financial results press release dated
July 26, 2012
, and was as follows:
Third Quarter 2012 Outlook Compared with Third Quarter 2011 Results
- The Company expected to generate distributable earnings revenues of between $415 million and $450 million, an increase of approximately 9 percent to 18 percent compared with $380.5 million.
- BGC Partners expected pre-tax distributable earnings to be between approximately $41 million and $52 million versus $62.6 million.
- BGC Partners anticipated its effective tax rate for distributable earnings to be approximately 14.5 percent compared with 15.0 percent.
The above outlook included between
$110 million and $125 million
in revenues from Real Estate Services. The Company now expects this figure to be above the high-end of this range.
Distributable Earnings Defined
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.