GFI Group Inc. Announces Third Quarter 2012 Results; Declares Quarterly Cash Dividend

 GFI Group Inc. Announces Third Quarter 2012 Results; Declares Quarterly Cash
                                   Dividend

- GAAP Total Revenues: $219.4 Million; Non-GAAP Total Revenues: $219.6 Million

- GAAP Net Revenues: $184.2 Million; Non-GAAP Net Revenues: $184.4 Million

- GAAP Net Loss: $8.7 Million or a loss of $0.08 per Diluted Share

- Non-GAAP Net Income: $0.7 Million or $0.01 per Diluted Share

- Cash Earnings: $21.0 Million or $0.17 per Diluted Share

- Quarterly Cash Dividend Declared of $0.05 per Share

PR Newswire

NEW YORK, Oct. 25, 2012

NEW YORK, Oct. 25, 2012 /PRNewswire/ -- GFI Group Inc. (NYSE: GFIG), a leading
provider of wholesale brokerage services, clearing services, and electronic
execution and trading support products for global financial markets, reported
today its financial results for the third quarter ended September 30, 2012.

Highlights

  oGAAP net revenues were $184.2 million for the third quarter of 2012, a
    decrease of 22.8% from $238.5 million in the third quarter of 2011. On a
    non-GAAP basis, net revenues decreased 21.7% to $184.4 million in the
    third quarter of 2012, from $235.4 million in the third quarter of 2011.
  oBrokerage revenues for the third quarter of 2012 declined 23.8% to $162.5
    million compared with $213.2 million in the third quarter of 2011.
  oRevenues from trading software, analytics and market data products for the
    third quarter of 2012 were $21.2 million, up 12.6% from the third quarter
    of 2011.
  oCompensation and employee benefits expense in the third quarter of 2012
    was 70.9% and 70.7% of net revenues on a GAAP and non-GAAP basis,
    respectively. This compares with 67.1% and 68.0% of net revenues on a
    GAAP and non-GAAP basis, respectively, in the third quarter of 2011.
  oNon-compensation expenses were 33.0% of net revenues on a GAAP basis and
    29.7% on a non-GAAP basis in the third quarter of 2012. This compares
    with 29.1% of net revenues on a GAAP basis and 24.7% on a non-GAAP basis
    in the third quarter of 2011.
  oNet loss for the third quarter of 2012 was $8.7 million on a GAAP basis,
    or a loss of $0.08 per diluted share, compared with net income of $6.1
    million, or $0.05 per diluted share, in the third quarter of 2011. On a
    non-GAAP basis, net income was $0.7 million, or $0.01 per diluted share,
    for the third quarter of 2012, compared with net income of $11.6 million,
    or $0.09 per diluted share, in the third quarter of 2011.
  oCash earnings for the three month period ended September 30, 2012 were
    $21.0 million, or $0.17 per diluted share, compared with $32.0 million, or
    $0.26 per diluted share, for the same period in 2011.
  oFor the nine months ended September 30, 2012, GAAP net revenues were
    $613.6 million, down 9.3%, compared with $676.2 million for the same
    period in 2011. Net income on a GAAP basis for the nine months of 2012
    was $1.4 million, or $0.01 per diluted share, compared to $19.0 million,
    or $0.15 per diluted share, in the first nine months of 2011. On a
    non-GAAP basis, net revenues for the nine months ended September 30, 2012
    were $606.6 million, down 11.0%, compared with $681.9 million for the same
    period in 2011, while non-GAAP basis net income for the first nine months
    of 2012 was $11.8 million, or $0.10 per diluted share, compared with $34.0
    million, or $0.27 per diluted share, for the first nine months of 2011.

Michael Gooch, Chairman and Chief Executive Officer of GFI, commented:
"Trading conditions remained challenging due to sluggish global economic
conditions, regulatory, fiscal, tax, political and market uncertainty and the
ongoing sovereign debt issues in the Eurozone. The risk averse trading
environment and broad uncertainty continue to depress trading volumes. We
believe that markets will remain subdued into 2013 until there is greater
regulatory certainty, the problems in Europe dissipate and/or investor risk
appetite improves. 

GFI's software, analytics and market data revenues, which are largely
subscription based and are less immediately affected by trading volumes, were
up 12.6% in the third quarter of 2012 over the same period in the prior year,
with growth from both Trayport and FENICS. We continue to see growth
opportunities in these subscription-based, higher margin software businesses.


"Despite the slow trading conditions, we remained focused on enhancing and
expanding GFI's electronic execution capabilities with approximately 61% of
third quarter brokerage revenues, excluding Kyte, supported with GFI
proprietary trading technology. Revenues from matching sessions have notably
increased year-to-date in fixed income derivatives globally, and we have made
significant progress in our cash bond businesses in the Americas, with over
30% of third quarter revenues derived from electronic matching sessions. We
have significant electronic capabilities across all regions which, we believe,
positions GFI well in the face of global financial regulatory reform. 

"In addition to expanding GFI's technology footprint, we also continued to
adjust GFI's front and back office cost structure with $21 million in cost
savings year-to-date, largely related to compensation expense, and we expect
to reach our goal of $50 million in cumulative cost savings in 2013, as
compared to 2011 expense levels. We are committed to delivering profitable,
technology enhanced brokerage services.

"We are two weeks into the migration of the U.S. OTC energy swaps markets to
listed energy futures products. We were prepared for this change and, as of
now, have seen no immediate diminishment in our client service or North
American energy brokerage revenues. We are monitoring the situation and
intend to be similarly prepared for further regulatory changes to come.

"Looking at October activity to-date, GFI's preliminary total revenues are
tracking down approximately 3% compared with total revenues for the same month
last year. We believe that GFI's October performance is within the range of
volume declines reported in the broader exchange-traded markets and is
consistent with a lower volatility environment.

Mr. Gooch concluded: "We are pleased to declare a quarterly cash dividend of
$0.05 per share to GFI shareholders."

Revenues

Net revenues were $184.2 million and $184.4 million on a GAAP and non-GAAP
basis, respectively, in the third quarter of 2012, as compared with $238.5
million and $235.4 million on a GAAP and non-GAAP basis, respectively, in the
third quarter of 2011.

Brokerage revenues in the third quarter of 2012 were $162.5 million compared
with $213.2 million in the third quarter of 2011. Revenues from fixed income,
equity, commodity and financial product revenues were down 30.0%, 32.6%, 18.6%
and 13.8%, respectively, compared with the third quarter of 2011. By
geographic region, brokerage revenues for the third quarter of 2012 declined
25.3% in the Americas, 22.4% in Europe, Middle East and Africa and 24.5% in
Asia-Pacific, as compared with the same quarter of 2011.

Revenues from trading software, analytics and market data products for the
third quarter of 2012 were $21.2 million, up 12.6% from the third quarter of
2011.

Expenses

For the third quarter of 2012, compensation and employee benefits expense was
$130.5 million on a GAAP basis and $130.4 million on a non-GAAP basis. This
compares with $160.0 million on a GAAP and non-GAAP basis in the third quarter
of 2011. Compensation and employee benefits expense was 70.9% and 70.7% of
net revenues on a GAAP and non-GAAP basis, respectively, in the third quarter
of 2012 compared with 67.1% and 68.0% of net revenues on a GAAP and non-GAAP
basis, respectively, in the third quarter of 2011.

On a GAAP basis, non-compensation expenses for the third quarter of 2012 were
$60.8 million, or 33.0% of net revenues, compared with $69.5 million, or 29.1%
of net revenues, in the third quarter of 2011. On a non-GAAP basis,
non-compensation expenses for the third quarter of 2012 were $54.7 million, or
29.7% of net revenues, compared with $58.1 million, or 24.7% of net revenues,
in the third quarter of 2011.

Earnings

Net loss on a GAAP basis for the third quarter of 2012 was $8.7 million, or a
loss of $0.08 per diluted share, compared with net income of $6.1 million, or
$0.05 per diluted share, in the third quarter of 2011. On a non-GAAP basis,
net income for the third quarter of 2012 was $0.7 million, or $0.01 per
diluted share, compared with net income of $11.6 million, or $0.09 per diluted
share, for the third quarter of 2011.

Nine Month Results

Net revenues for the nine months ended September 30, 2012 were $613.6 million
on a GAAP basis, compared to net revenues of $676.2 million for the nine
months ended September 30, 2011. Net income was $1.4 million on a GAAP basis,
or $0.01 per diluted share, for the nine months ended September 30, 2012
compared with net income of $19.0 million, or $0.15 per diluted share, for the
same period in 2011. On a non-GAAP basis, net revenues for the nine months
ended September 30, 2012 were $606.6 million compared to $681.9 million for
the same period in 2011. Non-GAAP net income was $11.8 million, or $0.10 per
diluted share, for the nine months ended September 30, 2012 compared with net
income of $34.0 million, or $0.27 per diluted share, for the first nine months
of 2011.

The effective tax rate for the first nine months of 2012 was 82.0% on a GAAP
basis, and 30.0% on a non-GAAP basis, as compared with 28.0% and 30.0% on a
GAAP and non-GAAP basis, respectively, in the first nine months of 2011. For
calendar year 2011, GFI's effective tax rate was 39.0% on a non-GAAP basis.

Dividend Declaration

The Board of Directors of GFI has declared a quarterly cash dividend of $0.05
per share payable on November 30, 2012 to shareholders of record as of
November 15, 2012.

Non-GAAP Financial Measures

To supplement GFI's unaudited financial statements presented in accordance
with GAAP, the Company uses certain non-GAAP measures of financial
performance. The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, as a substitute for, or superior
to, the financial information prepared and presented in accordance with GAAP,
and may be different from non-GAAP financial measures used by other
companies. In addition, these non-GAAP measures have limitations in that they
do not reflect all of the amounts associated with the Company's results of
operations as determined in accordance with GAAP. The non-GAAP financial
measures used by GFI include non-GAAP total revenues, non-GAAP net revenues,
non-GAAP provision for or benefit from income taxes, non-GAAP net income,
non-GAAP diluted earnings per share, cash earnings and cash earnings per
share. These non-GAAP financial measures currently exclude from the Company's
statement of income amortization of acquired intangibles and certain other
items that management views as non-operating, non-recurring or non-cash as
detailed in the reconciliation included in the financial tables attached to
this release.

In addition, GFI may consider whether other significant non-operating,
non-recurring or non-cash items that arise in the future should also be
excluded in calculating the non-GAAP financial measures it uses. The non-GAAP
financial measures also take into account estimated adjustments to income tax
expense with respect to the excluded items.

GFI believes that these non-GAAP financial measures, when taken together with
the corresponding GAAP financial measures, provide meaningful supplemental
information regarding the Company's performance by excluding certain items
that may not be indicative of the Company's core business, operating results
or future outlook. GFI's management uses, and believes that investors benefit
from referring to, these non-GAAP financial measures in assessing the
Company's operating results, as well as when planning, forecasting and
analyzing future periods. These non-GAAP financial measures also facilitate
comparisons of the Company's performance to prior periods.

In addition to the reasons stated above, which are generally applicable to
each of the items GFI excludes from its non-GAAP financial measures, the
Company believes it is appropriate to exclude amortization of acquired
intangibles because when analyzing the operating performance of an acquired
business, GFI's management focuses on the total return provided by the
investment (i.e., operating profit generated from the acquired entity, as
compared to the purchase price paid) without taking into consideration any
charges for allocations made for accounting purposes. Further, because the
purchase price for an acquisition necessarily reflects the accounting value
assigned to intangible assets, when analyzing the operating performance of an
acquisition in subsequent periods, the Company's management excludes the GAAP
impact of acquired intangible assets on its financial results. GFI believes
that such an approach is useful in understanding the long-term return provided
by an acquisition and that investors benefit from a supplemental non-GAAP
financial measure that excludes the accounting expense associated with
acquired intangible assets.

A reconciliation of these non-GAAP financial measures to GAAP is included in
the financial tables attached to this release.

Conference Call

GFI has scheduled an investor conference call to discuss its third quarter
results at 8:30 a.m. (Eastern Time) on Friday, October 26, 2012. Those
wishing to listen to the live conference call via telephone should dial
1-800-860-2442 in North America and +1-412-858-4600 outside of North America,
and ask for "GFI".

A live audio web cast of the conference call will be available on the Investor
Relations section of GFI's Website. For web cast registration information,
please visit: http://www.gfigroup.com. Following the conference call, an
archived recording will be available.

Supplementary Financial Information

GFI has posted details of its historical monthly brokerage revenues on the
Investor Relations page of its web site under the heading Supplementary
Financial Information. The Company currently plans to post this information
quarterly in conjunction with its announcement of earnings, but does not
undertake a responsibility to continue to provide or update such information.

About GFI Group Inc.

GFI Group Inc. (NYSE: "GFIG") is a leading provider of wholesale brokerage
services, clearing services, electronic execution and trading support products
for global financial markets. GFI Group Inc. provides brokerage services,
market data, trading platform and analytics software products to institutional
clients in markets for a range of fixed income, financial, equity and
commodity instruments.

Headquartered in New York, GFI was founded in 1987 and employs more than 2,100
people with additional offices in London, Paris, Nyon, Hong Kong, Seoul,
Singapore, Sydney, Cape Town, Santiago, Bogota, Buenos Aires, Dubai, Dublin,
Tel Aviv, Los Angeles and Sugar Land (TX). GFI Group Inc. provides services
and products to over 2,600 institutional clients, including leading investment
and commercial banks, corporations, insurance companies and hedge funds. Its
brands include GFI^SM, GFInet®, CreditMatch®, GFI ForexMatch®, EnergyMatch®,
FENICS®, Starsupply®, Amerex®, Trayport® and Kyte®.

Forward-looking Statement

Certain matters discussed in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. When used in this press release, the words "anticipate," "believe,"
"estimate," "may," "might," "intend," "expect" and similar expressions
identify such forward-looking statements. Actual results, performance or
achievements could differ materially from those contemplated, expressed or
implied by the forward-looking statements contained herein. These
forward-looking statements are based largely on the expectations of GFI Group
Inc. (the "Company") and are subject to a number of risks and uncertainties.
These include, but are not limited to, risks and uncertainties associated
with: economic, political and market factors affecting trading volumes;
securities prices or demand for the Company's brokerage services; competition
from current and new competitors; the Company's ability to attract and retain
key personnel, including highly-qualified brokerage personnel; the Company's
ability to identify and develop new products and markets; changes in laws and
regulations governing the Company's business and operations or permissible
activities; the Company's ability to manage its international operations;
financial difficulties experienced by the Company's customers or key
participants in the markets in which the Company focuses its brokerage
services; the Company's ability to keep up with technological changes;
uncertainties relating to litigation and the Company's ability to assess and
integrate acquisition prospects. Further information about factors that could
affect the Company's financial and other results is included in the Company's
filings with the Securities and Exchange Commission. The Company does not
undertake to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.

- FINANCIAL TABLES FOLLOW -







 GFI Group Inc. and Subsidiaries
 Consolidated Statements of Operations (unaudited)
 (In thousands except share and per share data)
                            Three Months Ended        Nine Months Ended
                            September 30,             September 30,
                            2012         2011         2012         2011
 Revenues
    Agency commissions     $         $         $         $   
                            112,239     151,446     380,276     435,442
    Principal transactions 50,278       61,711       164,830      186,673
    Total brokerage        162,517      213,157      545,106      622,115
    revenues
    Clearing services       30,545       31,872       88,307       87,222
    revenues
    Interest income from    422          606          1,325        1,618
    clearing services
    Equity in net earnings
    of unconsolidated       2,344        4,260        6,242        9,943
    businesses
    Software, analytics and 21,204       18,837       61,671       54,328
    market data
    Other income            2,356        7,230        14,642       5,917
     Total revenues      219,388      275,962      717,293      781,143
 Interest and
 transaction-based expenses
    Transaction fees on     29,420       30,388       84,988       84,209
    clearing services
    Transaction fees on     5,734        6,673        18,012       19,357
    brokerage services
    Interest expense from   82           439          680          1,382
    clearing services
    Total interest and
    transaction-based       35,236       37,500       103,680      104,948
    expenses
    Revenues, net of
    interest and            184,152      238,462      613,613      676,195
    transaction-based
    expenses
 Expenses
    Compensation and        130,499      159,980      421,927      466,300
    employee benefits
    Communications and      15,269       15,187       46,629       45,364
    market data
    Travel and promotion    7,973        9,723        27,347       30,124
    Rent and occupancy      7,083        6,322        20,759       18,183
    Depreciation and        9,246        9,990        27,502       29,665
    amortization
    Professional fees       5,925        6,866        17,470       19,641
    Interest on borrowings  6,738        12,035       20,080       18,247
    Other expenses          8,586        9,353        23,730       21,559
     Total other expenses 191,319      229,456      605,444      649,083
 (Loss) income before       (7,167)      9,006        8,169        27,112
 provision for income taxes
 Provision for income taxes 1,638        2,884        6,699        7,592
 Net (loss) income before
 attribution to             (8,805)      6,122        1,470        19,520
 non-controlling
 stockholders
 Less: Net (loss) income
 attributable to            (112)        57           51           558
 non-controlling interests
 GFI's net (loss) income    $       $       $       $     
                            (8,693)       6,065       1,419      18,962
 Basic (loss) earnings per  $       $       $       $     
 share                      (0.08)      0.05       0.01       0.16
 Diluted (loss) earnings    $       $       $       $     
 per share                   (0.08)      0.05       0.01       0.15
 Weighted average shares    115,541,373  117,717,234  116,073,488  119,187,808
 outstanding - basic
 Weighted average shares    115,541,373  125,420,736  123,570,110  127,052,814
 outstanding - diluted



GFI Group Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
As a Percentage of Net Revenues
                                         Three Months Ended  Nine Months Ended
                                         September 30,       September 30,
                                         2012       2011     2012      2011
Revenues
   Agency commissions                   60.9%      63.5%    62.0%     64.4%
   Principal transactions               27.3%      25.9%    26.9%     27.6%
   Total brokerage revenues             88.2%      89.4%    88.9%     92.0%
   Clearing services revenues            16.6%      13.4%    14.4%     12.9%
   Interest income from clearing         0.2%       0.3%     0.2%      0.2%
   services
   Equity in net earnings of             1.3%       1.8%     1.0%      1.5%
   unconsolidated businesses
   Software, analytics and market data   11.5%      7.8%     10.0%     8.0%
   Other income                          1.3%       3.0%     2.4%      0.9%
    Total revenues                    119.1%     115.7%   116.9%    115.5%
Interest and transaction-based expenses
   Transaction fees on clearing services 16.0%      12.7%    13.9%     12.4%
   Transaction fees on brokerage         3.1%       2.8%     2.9%      2.9%
   services
   Interest expense from clearing        0.0%       0.2%     0.1%      0.2%
   services
   Total interest and transaction-based  19.1%      15.7%    16.9%     15.5%
   expenses
   Revenues, net of interest and         100.0%     100.0%   100.0%    100.0%
   transaction-based expenses
Expenses
   Compensation and employee benefits    70.9%      67.1%    68.8%     69.0%
   Communications and market data        8.3%       6.4%     7.6%      6.7%
   Travel and promotion                  4.3%       4.1%     4.4%      4.4%
   Rent and occupancy                    3.8%       2.7%     3.4%      2.7%
   Depreciation and amortization         5.0%       4.2%     4.5%      4.4%
   Professional fees                     3.2%       2.9%     2.8%      2.9%
   Interest on borrowings                3.7%       5.0%     3.3%      2.7%
   Other expenses                        4.7%       3.9%     3.9%      3.2%
    Total other expenses               103.9%     96.3%    98.7%     96.0%
(Loss) income before provision for       -3.9%      3.7%     1.3%      4.0%
income taxes
Provision for income taxes               0.9%       1.2%     1.1%      1.1%
Net (loss) income before attribution to  -4.8%      2.5%     0.2%      2.9%
non-controlling stockholders
Less: Net (loss) income attributable to  -0.1%      0.0%     0.0%      0.1%
non-controlling interests
GFI's net (loss) income                  -4.7%      2.5%     0.2%      2.8%





 GFI Group Inc. and Subsidiaries
 Selected Financial Data (unaudited)
 (Dollars in thousands except per share data)
                                  Three Months Ended      Nine Months Ended
                                  September 30,           September 30,
                                  2012       2011         2012       2011
 Brokerage Revenues by Product
 Categories:
     Fixed Income                 $      $        $      $    
                                   43,823   62,585    149,238   187,276
     Financial                    45,303     52,571       143,435    150,673
     Equity                       30,868     45,785       105,046    138,147
     Commodity                    42,523     52,216       147,387    146,019
      Total brokerage           $      $        $      $    
     revenues                     162,517    213,157      545,106   622,115
 Brokerage Revenues by
 Geographic Region:
     Americas                     $      $        $      $    
                                   62,121   83,175    215,327   235,780
     Europe, Middle East, and     81,999     105,604      269,015    310,666
     Africa
     Asia-Pacific                 18,397     24,378       60,764     75,669
      Total brokerage           $      $        $      $    
     revenues                     162,517    213,157      545,106   622,115
                                  September  December
                                  30,        31,
                                  2012       2011
 Consolidated Statement of
 Financial Condition Data:
     Cash and cash equivalents    $      $    
                                  209,759    245,879
     Cash held at clearing
     organizations, net of        26,388     41,646
     customer cash
     GFI's total balance          236,147    287,525
     sheet cash
     Balance sheet cash per       2.00       2.45
     share
     Total assets (1)             1,521,733  1,190,549
     Total debt                   250,000    250,000
     Stockholders' equity         442,358    447,212
 Selected Statistical Data:
     Brokerage personnel          1,214      1,271
     headcount (2)
     Employees                    2,101      2,176
     Broker productivity for the  $      $    
     period (3)                             
                                  133        136
     Total assets include receivables from brokers,
     dealers and clearing organizations of $604.9
     million and $251.8 million at September 30, 2012
     and December 31, 2011, respectively. These
     receivables primarily represent securities
     transactions entered into in connection with our
 (1) matched principal business which have not settled
     as of their stated settlement dates, as well as
     balances with clearing organizations. These
     receivables are substantially offset by
     corresponding payables to brokers, dealers and
     clearing organizations, as well as to clearing
     customers, for these unsettled transactions.
 (2) Brokerage personnel headcount includes brokers,
     traders, trainees and clerks.
     Broker productivity is calculated as brokerage
 (3) revenues divided by average monthly brokerage
     personnel headcount for the quarter.





 GFI Group Inc. and Subsidiaries
 Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
 (In thousands except share and per share data)
                           Three Months Ended        Nine Months Ended
                           September 30,             September 30,
                           2012         2011         2012         2011
 GAAP revenues             $          $          $          $  
                           219,388      275,962      717,293      781,143
 Mark-to-market loss
 (gain) on forward hedges  608          (4,210)      287          1,726
 of future foreign
 currency revenues
 Fair value
 mark-to-market (gain)     (2,081)      1,175        (9,098)      2,738
 loss on future purchase
 commitment
 Fair value
 mark-to-market loss on    1,709        -            1,837        -
 warrants on investee
 shares
 Accounting impact of
 increased ownership       -            -            -            1,863
 stake in an investee
 Recovery of previously    -            -            -            (609)
 reserved balances
 Total Non-GAAP Revenues   219,624      272,927      710,319      786,861
 GAAP interest and
 transaction-based         35,236       37,500       103,680      104,948
 expenses
 Non-GAAP revenues, net
 of interest and           184,388      235,427      606,639      681,913
 transaction-based
 expenses
 GAAP other expenses       191,319      229,456      605,444      649,083
 Amortization of           (2,922)      (3,130)      (8,762)      (9,235)
 intangibles
 Closure of certain desks  (637)        -            (1,578)      -
 in Asia
 Writedown of available    (2,662)      -            (5,362)      -
 for sale securities
 Gain on settlement of
 pre-acquisition           -            -            -            942
 receivable
 Debt redemption costs     -            (5,975)      -            (5,975)
 Writedown of investments
 in unconsolidated         -            (2,255)      -            (2,255)
 affiliates
 Non-GAAP other expenses   185,098      218,096      589,742      632,560
 Non-GAAP pre-tax (loss)   (710)        17,331       16,897       49,353
 income
 Income tax impact on      4,987        2,796        6,265        7,214
 Non-GAAP items
 Plus: Non-operating
 adjustment for the
 recognition of a tax      (5,284)      -            (5,284)      -
 benefit related to the
 repatriation of
 international profits
 Plus: Non-operating
 adjustment for the
 recognition of a tax
 benefit related to        (2,611)      -            (2,611)      -
 interest
 income between
 international affiliates
 Non-GAAP (benefit)
 provision for income      (1,270)      5,680        5,069        14,806
 taxes
 Less: Net (loss) income
 attributable to           (112)        57           51           558
 non-controlling
 interests
 GFI's Non-GAAP net        $       $         $         $   
 income                     672        11,594       11,777       33,989
 Non-GAAP diluted net      $       $       $       $     
 income per share          0.01        0.09        0.10        0.27
 Pre-tax adjustments to
 arrive at cash earnings
 Amortization of RSUs      7,751        7,777        24,633       23,186
 Amortization of prepaid
 sign-on and retention     6,296        5,803        18,932       17,297
 bonuses
 Depreciation and other    6,324        6,860        18,740       20,430
 amortization
 Total pre-tax
 adjustments to cash       20,371       20,440       62,305       60,913
 earnings
 Non-GAAP pre-tax cash
 earnings from ongoing     19,661       37,771       79,202       110,266
 operations
 Non-GAAP (benefit)
 provision for income      (1,270)      5,680        5,069        14,806
 taxes
 Less: Net (loss) income
 attributable to           (112)        57           51           558
 non-controlling
 interests
 GFI's Non-GAAP net cash   $         $         $         $   
 earnings from ongoing     21,043       32,034       74,082       94,902
 operations
 Non-GAAP cash earnings    $       $       $       $     
 per share                 0.17        0.26        0.60        0.75
 Weighted average shares   122,394,648  125,420,736  123,570,110  127,052,814
 outstanding - diluted





GFI Group Inc.
Adjusted EBITDA
($ in '000's,                                                     Last twelve
except share and  3Q11     4Q11       1Q12     2Q12     3Q12      months
per share                                                         (LTM)
amounts)
Net income
(loss) per U.S.   $                $     $   
GAAP before               $                        $   
attribution to    6,122   (22,085)  4,940   5,335   (8,805)
non-controlling
interests
Plus: Net
(income) loss
attributable to   (57)     (58)       (148)    (15)     112
non-controlling
interests
GFI's net income  6,065    (22,143)   4,792    5,320    (8,693)
(loss)
Plus:
Extraordinary
and other
non-recurring     8,325    22,149     5,399    (3,128)  6,457
pretax items
(i.e., non-GAAP
adjustments)
Plus: Interest    6,499    8,008      7,255    6,685    6,820
expense
Less: Interest    (996)    (835)      (680)    (622)    (614)
income
Plus: Income tax
expense           2,884    (4,945)    2,779    2,282    1,638
(benefit)
Plus:
Depreciation and
amortization      6,860    6,302      6,242    6,174    6,324
expense
(excluding
intangibles)
Plus:
Amortization of   7,777    7,645      9,052    7,830    7,751
RSUs
Plus:
Amortization of
prepaid sign-on   5,803    5,984      6,595    6,041    6,296
and retention
bonuses
Adjusted EBITDA   $     $       $     $     $      $    
                  43,217  22,165    41,434  30,582  25,979   120,160
Weighted average
shares                                                            123,570,110
outstanding -
diluted
Adjusted EBITDA                                                   $     
per share                                                           0.97
(pre-tax)







SOURCE GFI Group Inc.

Website: http://www.gfigroup.com
Contact: Investor Relations, Christopher Giancarlo, Executive Vice President,
investorinfo@gfigroup.com, or Chris Ann Casaburri Grimmett, Investor Relations
Manager, +1-212-968-4167, chris.grimmett@gfigroup.com; Media, Patricia
Gutierrez, Vice President - Public Relations, +1-212-968-2964,
patricia.gutierrez@gfigroup.com