|MARCH 31, 2003|
|Knight Trading Group Identifies 2003 Charges Disclosed in AnnualReport on SEC Form 10-K for Fiscal Year 2002, Filed Today|
The company expects to take charges of approximately ($0.10) per share in the first quarter ended March 31, 2003 related to severance costs, excess real estate capacity and writedown of strategic investment
Excluding the charges, the company expects to report first quarter 2003 operating results in the range of $0.01 earnings per share to ($0.03) loss per share; including the charges, the company expects GAAP results of ($0.09) to ($0.13) loss per share
First quarter results enhanced by strength in Asset Management business; Equity Markets business continues to be impacted by difficult trading environment
Knight to close market-making operation in Japan in May 2003 and take up to a $0.03 charge per share in the second quarter
JERSEY CITY, N.J., Mar 31, 2003 /PRNewswire-FirstCall via COMTEX/ -- Knight Trading Group, Inc. (Nasdaq: NITE) today announced that it has filed its Annual Report on Form 10-K with the Securities & Exchange Commission for the year ended December 31, 2002. In that report, the company disclosed certain charges it anticipates will be reflected in the first quarter results for the three months ending March 31, 2003. These first quarter charges total approximately $0.10 per share.
The company also disclosed in its Form 10-K that Knight Securities Japan Ltd., a joint venture with Nikko Cordial Group, will cease its trading operations in May 2003. As a result, Knight expects to take a charge of up to $0.03 per share in the second quarter.
Description of Charge Estimated Per Share Effect First Quarter 2003 Severance and other separation payments relating to a workforce reduction $0.02 Charge for excess real estate capacity $0.05 Writedown of investment in Nasdaq $0.03 ----------- Total Estimated Charge for First Quarter $0.10 =========== Second Quarter 2003 Closure of market-making operation in Japan Up to $0.03
Knight today also announced that it expects to report operating results in the range of $0.01 earnings per share to ($0.03) loss per share for the first quarter ending March 31, 2003. This projected range does not include the expected charges of approximately $0.10 per share for the first quarter. Under GAAP, the company expects to report a first quarter net loss in the range of ($0.09) per share to ($0.13) per share, including all charges.
Significant investor apprehension over geopolitical events has impacted the trading environment during the first quarter, adversely affecting Knight's revenue capture opportunities for the company's Equity Markets operations. In contrast, Knight's Asset Management segment performance was solid.
Knight will release its official first quarter 2003 results on Wednesday, April 16, 2003 at 6:00 a.m. Eastern Time (EDT). The company will conduct its first quarter earnings conference call for analysts, investors and the media at 9:00 a.m. (EDT) that same day. The conference call will be Webcast live at 9:00 a.m. (EDT) for all investors and interested parties on Knight's Web site (http://www.knighttradinggroup.com).
More information can be found in Knight's Form 10-K which is expected to be processed and made available by the SEC today through its Web site (http://www.sec.gov). The Form 10-K also will be accessible through Knight's Web site (http://www.knighttradinggroup.com).
Knight is focused on meeting the needs of institutional and broker-dealer clients by providing comprehensive trade execution services in cash equities and options. A leading execution specialist, Knight offers capital commitment and access to a deep pool of liquidity across the depth and breadth of the market as it strives to provide superior client service. Knight also maintains a $1 billion asset management business for institutions and high net worth individuals. More information about Knight can be obtained at www.knighttradinggroup.com.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Since such statements involve risks and uncertainties, the actual results and performance of the Company may turn out to be materially different from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made herein; however, readers should carefully review reports or documents the Company files from time to time with the Securities and Exchange Commission.
SOURCE Knight Trading Group, Inc.Margaret Wyrwas
Senior Vice President, Corporate Communications & Investor Relations
Vice President, Corporate Communications
Judy Pirro, Manager
Investor and Shareholder Relations
All of Knight Trading Group, Inc.