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BGC Partners Updates Its Outlook for the Third Quarter of 2013

NEW YORK, Sept. 30, 2013 /CNW/ - 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. 
(Logo: http://photos.prnewswire.com/prnh/20110720/MM38935LOGO ) 
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.

(Note: If clicking on the above link does not open up a new web page, you may 
need to cut and paste the above url into your browser's address bar.)

_____________________

([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.

About BGC Partners, Inc. BGC Partners is a leading global brokerage company 
primarily servicing the wholesale financial and real estate markets.  Products 
include fixed income securities, interest rate swaps, foreign exchange, 
equities, equity derivatives, credit derivatives, commercial real estate, 
commodities, futures, and structured products. BGC also provides a wide range 
of services, including trade execution, broker-dealer services, clearing, 
processing, information, and other back-office services to a broad range of 
financial and non-financial institutions.  Through its BGC Trader and BGC 
Market Data brands, BGC offers financial technology solutions, market data, 
and analytics related to select financial instruments and markets.  Through 
the NGKF brand, the Company offers a wide range of commercial real estate 
services including leasing and corporate advisory, investment sales and 
financial services, consulting, project and development management, and 
property and facilities management. BGC's customers include many of the 
world's largest banks, broker-dealers, investment banks, trading firms, hedge 
funds, governments, corporations, property owners, real estate developers, and 
investment firms. For more information, please visit www.bgcpartners.com.

BGC, BGC Trader, Grubb & Ellis, Grubb and Newmark Grubb Knight Frank (NGKF) 
are trademarks and service marks of BGC Partners, Inc. and its affiliates.  
Knight Frank is a service mark of Knight Frank Limited Corp., used with 
permission.

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 reflect 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.

As compared with "income (loss) from operations before income taxes," "net 
income (loss) for fully diluted shares," and "fully diluted earnings (loss) 
per share," all prepared in accordance with GAAP, distributable earnings 
calculations primarily exclude certain non-cash compensation and other 
expenses which generally do not involve the receipt or outlay of cash by the 
Company, which do not dilute existing stockholders, and which do not have 
economic consequences, as described below.  In addition, distributable 
earnings calculations exclude certain gains and charges that management 
believes do not best reflect the ordinary operating results of BGC.

Revenues for distributable earnings are defined as GAAP revenues excluding the 
impact of BGC Partners, Inc.'s non-cash earnings or losses related to its 
equity investments, such as in Aqua Securities, L.P. and ELX Futures, L.P., 
and its holding company general partner, ELX Futures Holdings LLC.  Revenues 
for distributable earnings include the collection of receivables which would 
have been recognized for GAAP other than for the effect of acquisition 
accounting.  Revenues for distributable earnings also exclude certain one-time 
or unusual gains that are recognized under GAAP, because the Company does not 
believe such gains are reflective of its ongoing, ordinary operations.

Pre-tax distributable earnings are defined as GAAP income (loss) from 
operations before income taxes excluding items that are primarily non-cash, 
non-dilutive, and non-economic, such as:
    --  Non-cash stock-based equity compensation charges for REUs
        granted or issued prior to the merger of BGC Partners, Inc.
        with and into eSpeed, as well as post-merger non-cash,
        non-dilutive equity-based compensation related to partnership
        unit exchange or conversion.
    --  Allocations of net income to founding/working partner and other
        limited partnership units, including REUs, RPUs, PSUs, LPUs,
        and PSIs.
    --  Non-cash asset impairment charges, if any.

Distributable earnings calculations also exclude charges related to purchases, 
cancellations or redemptions of partnership interests and certain unusual, 
one-time or non-recurring items, if any.

"Compensation and employee benefits" expense for distributable earnings will 
also include broker commission payouts relating to the aforementioned 
collection of receivables.

BGC's definition of distributable earnings also excludes certain gains and 
charges with respect to acquisitions, dispositions, or resolutions of 
litigation. This exclusion pertains to the one-time gain related to the NASDAQ 
OMX transaction.  Management believes that excluding these gains and charges 
best reflects the operating performance of BGC. However, because NASDAQ OMX is 
expected to pay BGC in an equal amount of stock on a regular basis for 15 
years as part of the transaction, the payments associated with BGC's receipt 
of such stock are expected to be included in the Company's calculation of 
distributable earnings.  To make quarter-to-quarter comparisons more 
meaningful, one-quarter of the annual contingent earn-out amount will be 
included in the Company's calculation of distributable earnings each quarter 
as "other revenues."

Since distributable earnings are calculated on a pre-tax basis, management 
intends to also report "post-tax distributable earnings" and "post-tax 
distributable earnings per fully diluted share":
    --  "Post-tax distributable earnings" are defined as pre-tax
        distributable earnings adjusted to assume that all pre-tax
        distributable earnings were taxed at the same effective rate.
    --  "Post-tax distributable earnings per fully diluted share" are
        defined as post-tax distributable earnings divided by the
        weighted-average number of fully diluted shares for the period.

BGC's 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, net of tax, when
        the impact would be dilutive; or
    --  The fully diluted share count excludes the shares related to
        these instruments, but includes the associated interest
        expense, net of tax.

Each quarter, the dividend to common stockholders is expected to be determined 
by the Company's Board of Directors with reference to post-tax distributable 
earnings per fully diluted share.  In addition to the Company's quarterly 
dividend to common stockholders, BGC Partners expects to pay a pro-rata 
distribution of net income to BGC Holdings founding/working partner and other 
limited partnership units, including REUs, RPUs, LPUs, PSUs and PSIs, and to 
Cantor for its noncontrolling interest. The amount of all of these payments is 
expected to be determined using the above definition of pre-tax distributable 
earnings per share.

Certain employees who are holders of RSUs are granted pro-rata payments 
equivalent to the amount of dividends paid to common stockholders. Under GAAP, 
a portion of the dividend equivalents on RSUs is required to be taken as a 
compensation charge in the period paid. However, to the extent that they 
represent cash payments made from the prior period's distributable earnings, 
they do not dilute existing stockholders and are therefore excluded from the 
calculation of distributable earnings.

Distributable earnings is not meant to be an exact measure of cash generated 
by operations and available for distribution, nor should it be considered in 
isolation or as an alternative to cash flow from operations or GAAP net income 
(loss). The Company views distributable earnings as a metric that is not 
necessarily indicative of liquidity or the cash available to fund its 
operations.

Pre- and post-tax distributable earnings are not intended to replace the 
Company's presentation of GAAP financial results. However, management believes 
that they help provide investors with a clearer understanding of BGC Partners' 
financial performance and offer useful information to both management and 
investors regarding certain financial and business trends related to the 
Company's financial condition and results of operations. Management believes 
that distributable earnings and the GAAP measures of financial performance 
should be considered together.

Management does not anticipate providing an outlook for GAAP "revenues," 
"income (loss) from operations before income taxes," "net income (loss) for 
fully diluted shares," and "fully diluted earnings (loss) per share," because 
the items previously identified as excluded from pre-tax distributable 
earnings and post-tax distributable earnings are difficult to forecast. 
Management will instead provide its outlook only as it relates to revenues for 
distributable earnings, pre-tax distributable earnings and post-tax 
distributable earnings.

For more information on this topic, please see the tables in BGC's most recent 
financial results press release entitled "Reconciliation of Revenues Under 
GAAP and Distributable Earnings," and "Reconciliation of GAAP Income to 
Distributable Earnings" which provides a summary reconciliation between pre- 
and post-tax distributable earnings and the corresponding GAAP measures for 
the Company in the periods discussed therein.

Discussion of Forward-Looking Statements by BGC Partners  Statements in this 
document regarding BGC Partners' business that are not historical facts are 
forward-looking statements that involve risks and uncertainties. Except as 
required by law, BGC undertakes no obligation to release any revisions to any 
forward-looking statements.  For a discussion of additional risks and 
uncertainties, which could cause actual results to differ from those contained 
in the forward-looking statements, see BGC's Securities and Exchange 
Commission filings, including, but not limited to, the risk factors set forth 
in our public filings, including our most recent Form 10-K and any updates to 
such risk factors contained in subsequent Form 10-Q or Form 8-K filings.



SOURCE  BGC Partners, Inc. 
Media: Hannah Sloane, 212-294-7938, Sarah Laufer, 212-915-1008; Investors: 
Jason McGruder, 212-829-4988, Jason Chryssicas, 212-915-1987 
http://www.bgcpartners.com 
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To view this news release in HTML formatting, please use the following URL: 
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CO: BGC Partners, Inc.
ST: New York
NI: FIN EST ERN  
-0- Sep/30/2013 20:05 GMT