BGC Partners, Inc. (NASDAQ:BGCP) Files An 8-K Regulation FD Disclosure
Item 7.01. REGULATION FD DISCLOSURE

Pre-Tax Distributable Earnings Following the Berkeley Point Transaction

Following the closing of the Berkeley Point transaction, additional GAAP items are now excluded in order to calculate pre-tax distributable earnings for the Real Estate Services segment and the consolidated Company. The most material items excluded for both historical and future period results are non-cash GAAP gains attributable to originated mortgage servicing rights (“OMSRs”) and non-cash GAAP amortization of mortgage servicing rights (“MSRs”). BPF recognizes OMSR gains equal to the fair value of servicing rights retained on mortgage loans originated and sold. BPF amortizes MSRs in proportion to the net servicing revenue expected to be earned. Subsequent to the initial recording, MSRs are amortized and carried at the lower of amortized cost or fair value. However, it is expected that cash received with respect to these servicing rights, net of associated expenses, will increase pre-tax distributable earnings in future periods.

In addition, pre-tax distributable earnings for the Real Estate Services Business and for the consolidated Company will exclude any non-cash provision or benefit related to risk-sharing obligations, net of charge-offs.

Additional Information about Distributable Earnings

For more information on this topic, please see certain tables in BGC’s most recent quarterly financial results press release including “Reconciliation of GAAP Income (Loss) to Distributable Earnings”. These tables provide summary reconciliations between pre- and post-tax distributable earnings and the corresponding GAAP measures for the Company.

Discussion of Forward-Looking Statements About BGC Partners

Statements in the attached press release regarding BGC that are not historical facts are “forward-looking statements” that involve risks and uncertainties. Except as required by law, BGC undertakes no obligation to update 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 the most recent Form 10-K and any updates to such risk factors contained in subsequent Forms 10-Q or Forms 8-K.

Item 7.01. FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

Exhibit List

to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

[
BGC Partners, Inc. Exhibit
EX-99.1 2 d457855dex991.htm EX-99.1 EX-99.1     Exhibit 99.1 BGC PARTNERS UPDATES ITS OUTLOOK FOR THE THIRD QUARTER OF 2017 Company Expects Record Revenues and Pre-tax Distributable Earnings for the Quarter Financial Results Conference Call Scheduled for October 26,…
To view the full exhibit click here

About BGC Partners, Inc. (NASDAQ:BGCP)

BGC Partners, Inc. (BGC) is a global brokerage company servicing the financial and real estate markets. The Company operates through two segments: Financial Services and Real Estate Services. The Company provides a range of services, including trade execution, broker-dealer services, clearing, processing, information, and other back-office services to a range of financial and non-financial institutions. Its integrated platform is designed to provide flexibility to customers with regard to price discovery, execution and processing of transactions, and enables them to use voice, hybrid, or in various markets, electronic brokerage services in connection with transactions executed either over-the-counter or through an exchange. Through the Company’s FENICS, BGC Trader, BGC Market Data and Capitalab brands, it offers electronic brokerage, financial technology solutions, market data, post-trade services, and analytics related to select financial instruments and markets.