BGC Partners (BGCP) Updates its Outlook for Q2

BGC Partners, Inc. (NASDAQ: BGCP) , a leading global brokerage and financial technology company, today announced that it has updated its outlook for the quarter ending June 30, 2020.

Updated OutlookAgainst a backdrop of weaker industry volumes across rates and foreign exchange,1 BGC's revenues for the second quarter of 2020 are now expected to be slightly below the low-end of the range of its previously stated outlook, while its pre-tax Adjusted Earnings are anticipated to be slightly above the low-end of the range. Additionally, BGC's margins benefited from its improved payout ratio related to its Fenics platform.2 The Company's outlook was contained in BGC's financial results press release issued on May 5, 2020, which can be found at http://ir.bgcpartners.com.

Non-GAAP Financial Measures This document contains non-GAAP financial measures that differ from the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"). Non-GAAP financial measures used by the Company include "Adjusted Earnings before noncontrolling interests and taxes", which is used interchangeably with "pre-tax Adjusted Earnings"; "Post-tax Adjusted Earnings to fully diluted shareholders", which is used interchangeably with "post-tax Adjusted Earnings"; "Adjusted EBITDA"; and "Liquidity". The definitions of these terms are below.

Adjusted Earnings DefinedBGC uses non-GAAP financial measures, including "Adjusted Earnings before noncontrolling interests and taxes" and "Post-tax Adjusted Earnings to fully diluted shareholders", which are supplemental measures of operating results used by management to evaluate the financial performance of the Company and its consolidated subsidiaries. BGC believes that Adjusted Earnings best reflect the operating earnings generated by the Company on a consolidated basis and are the earnings which management considers when managing its business.

As compared with "Income (loss) from operations before income taxes" and "Net income (loss) for fully diluted shares", both prepared in accordance with GAAP, Adjusted Earnings calculations primarily exclude certain non-cash items and other expenses that generally do not involve the receipt or outlay of cash by the Company and/or which do not dilute existing stockholders. In addition, Adjusted Earnings calculations exclude certain gains and charges that management believes do not best reflect the ordinary results of BGC. Adjusted Earnings is calculated by taking the most comparable GAAP measures and adjusting for certain items with respect to compensation expenses, non-compensation expenses, and other income, as discussed below.

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