BGC Partners, Inc.: BGC Partners Updates Its Outlook For The Third Quarter Of 2013

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 announced that it has updated its outlook for the quarter ending September 30, 2013.

The Company expects its financial results for the third quarter of 2013 to be towards the low-end of the range of its previously stated guidance for revenues and earnings. The Company's third quarter outlook was first published in its financial results press release dated August 1, 2013, and was as follows:

Third Quarter 2013 Outlook Compared with Third Quarter 2012 Results

The Company expected to generate distributable earnings revenues of between approximately $410 million and $440 million compared with $445.7 million.
BGC Partners expected pre-tax distributable earnings to be between approximately $36 million and $46 versus $46.7 million.
BGC Partners anticipated its effective tax rate for distributable earnings to be approximately 15 percent compared with 14.5 percent.^[1]

The payments associated with BGC's receipt of NASDAQ OMX stock are expected to be included in the Company's calculation of distributable earnings. To make comparisons more meaningful, 25 percent of the annual contingent earn-out amount is expected to be included in the Company's calculation of distributable earnings for each quarter as "other revenues."

BGC's third quarter 2013 financial results announcement is scheduled to be issued prior to the market open on Thursday, October 31, 2013. A conference call to discuss these results is scheduled for 10 AM ET that day. Details about the conference call can be found at http://ir.bgcpartners.com.

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^[1] Although the Company does not guide for earnings per share, investors should note that BGC's post-tax distributable earnings per share calculations assume either that the fully diluted share count includes the shares related to the dilutive instruments, such as the Convertible Senior Notes, but excludes the associated interest expense when the impact would be dilutive, or that the fully diluted share count excludes the shares related to these instruments, but includes the associated interest expense. In the third quarter of 2013, the pre-tax interest expense associated with the Convertible Senior Notes is expected to be $6.2 million while the post-tax interest expense is expected to be $5.3 million, and the associated weighted-average share count is expected to be 39.9 million, all based on distributable earnings.