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ITG Reports First Quarter 2005 EPS of $0.31

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NEW YORK, NY, April 28, 2005 - Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology-based equity trading services and transaction research, today announced that for the first quarter ended March 31, 2005, net income was $13.2 million, representing 60 percent growth compared to the first quarter of 2004, and diluted earnings per share were $0.31, an increase of 63 percent versus the first quarter of last year.

ITG's total revenues for the first quarter of 2005 were $91.7 million, 18 percent higher than total revenue of $77.6 million for the first quarter of 2004. Pre-tax margins were 24.2 percent, up from 17.9 percent in the first quarter of 2004.

"Our strong performance reflects several significant innovations we have made to our competitive offering in the past few quarters," stated Ray Killian, ITG's Chairman, President and Chief Executive Officer. "ITG continues to offer a broad range of advanced technologies that no other electronic trading firm can match and a level of client service and consulting that competes very successfully against the bulge bracket trading firms."

Domestically, ITG's trading volume for the first quarter of 2005 was 5.8 billion shares (averaging 96 million shares per trading day) compared to 5.6 billion shares in the fourth quarter of 2004 (averaging 87 million shares per trading day) and 4.8 billion in the first quarter of 2004 (averaging 81 million shares per trading day).

ITG's International business posted a record quarter with revenues of $22.1 million, an increase of 13 percent over the fourth quarter of 2004, and 31 percent higher than the first quarter of 2004. The International business reported a pre-tax profit of $1.9 million, compared to a $0.1 million loss in the first quarter of 2004 and $0.4 million profit in the fourth quarter of 2004, while net income was $1.0 million versus losses of $0.7 million and $0.2 million in the first and fourth quarters of 2004.

"Internationally, our global business solutions are demonstrating traction," stated Mr. Killian. "The investments made over the past several years have had a major impact on revenues, and our international business is now positioned to make an increasing contribution to earnings."

Conference Call

ITG has scheduled a conference call today at 11:00 a.m. ET to discuss first quarter results. Those wishing to listen to the call should dial 1-800-569-5033 at least 10 minutes prior to the start of the call to ensure connection. A listen-only webcast will also be available on ITG's website at http://www.itginc.com/investor. For those unable to listen to the live broadcast of the call, a replay will be available for one week by dialing 1-888-203-1112 and entering the pass code 3483000. A replay will be available for two weeks on ITG's website. Both methods of listening to the replay will be available starting approximately two hours after the completion of the conference call.

About ITG

ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, Hong Kong, London, Melbourne, Sydney, Tel Aviv and Toronto. As a leading provider of technology-based equity-trading services and transaction research to institutional investors and brokers, ITG helps clients to access liquidity, execute trades more efficiently, and make better trading decisions. ITG generates superior trading results for its clients through three lines of business. POSIT, the world's largest equity matching system, allows clients to trade confidentially. The Electronic Trading Desk is recognized as one of the leading program trading operations in the U.S. ITG's leading-edge Client-Site Trading Products allow users to implement their own trading strategies by providing direct electronic access to most sources of market liquidity. For additional information, visit http://www.itginc.com.

In addition to historical information, this press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include the company's ability to achieve expected future levels of sales; the actions of both current and potential new competitors; rapid changes in technology; financial market volatility; general economic conditions in the United States and elsewhere; evolving industry regulation; cash flows into or redemption from equity funds; effects of inflation; customer trading patterns; and new products and services. These and other risks are described in greater detail in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, and other documents filed with the Securities and Exchange Commission and available on the company's web site.

Click Here for Financial Information

Contacts:
Howard C. Naphtali
Chief Financial Officer
(212) 444-6160

Maureen Murphy
Investor Relations
(212) 444-6323

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