19. Parent Company

VFI is a managing member of Virtu Financial, which guarantees the indebtedness of its direct subsidiary under the senior secured facility (Note 8). VFI is limited to its ability to receive distributions (including for purposes of paying corporate and other overhead expenses and dividends) from Virtu Financial under the credit agreement. The following financial statements (the “Parent Company Only Financial Statements”) should be read in conjunction with the consolidated financial statements of the Company and the foregoing.

The financial statements as of December 31, 2015 and for the year then ended relate to VFI for the period following the commencement of its IPO on April 16, and to Virtu Financial for period preceding. The condensed statement of financial condition as of December 31, 2015 reflects the financial condition of VFI and the condensed statement of financial condition as of December 31, 2014 reflects the financial condition of Virtu Financial. The condensed statements of comprehensive income and of cash flows for the year ended December 31, 2015 reflect the condensed operating results and cash flows of Virtu Financial prior to April 15, 2015 and reflect the condensed operating results and cash flows of VFI from April 16, 2015 through December 31, 2015.

Virtu Financial, Inc.

(Parent Company Only)

Condensed Statements of Financial Condition


	As of December 31,
(In thousands except interest data)	2015		2014
Assets
Cash	$	187	$	25,939
Deferred tax asset		193,153		—
Investment in subsidiary		157,887		768,423
Other assets		1		29
Receivable from subsidiaries		15		12,865
Total assets	$	351,243	$	807,256

Liabilities, redeemable membership interest and equity
Liabilities
Payable to affiliate	$	—	$	291,444
Accounts payable and accrued expenses and other liabilities		2,136		9,114
Tax receivable agreement obligations		218,399		—
Total liabilities	$	220,535	$	300,558

Class A-1 redeemable membership interest		—		294,433

Stockholders' / Members' equity
Class A-1 — Authorized and Issued — 0 and 1,964,826 interests, Outstanding — 0 and 1,964,826 interests, at December 31, 2015 and 2014, respectively		—		19,648
Class A-2 — Authorized and Issued — 0 and 101,381,332 interests, Outstanding — 0 and 99,855,666 interests, at December 31, 2015 and 2014, respectively		—		287,705
Class A common stock (par value $0.00001), Authorized — 1,000,000,000 and 0 shares, Issued — 38,379,858 and 0 shares, Outstanding — 38,210,209 and 0 shares at December 31, 2015 and 2014, respectively		—		—
Class B common stock (par value $0.00001), Authorized — 175,000,000 and 0 shares, Issued and Outstanding — 0 and 0 shares at December 31, 2015 and 2014, respectively		—		—
Class C common stock (par value $0.00001), Authorized — 90,000,000 and 0 shares, Issued and Outstanding — 20,976,598 and 0 shares at December 31, 2015 and 2014, respectively		—		—
Class D common stock (par value $0.00001), Authorized — 175,000,000 and 0 shares, Issued and Outstanding — 79,610,490 and 0 shares at December 31, 2015 and 2014, respectively		1		—
Treasury stock, at cost, 169,649 and 0 shares at December 31, 2015 and 2014, respectively		(3,819)		—
Additional paid-in capital		130,902		—
Retained Earnings (Accumulated deficit)		3,525		(91,383)
Accumulated other comprehensive income (loss)		99		(3,705)
Total stockholders' / members' equity	$	130,708	$	212,265

Total liabilities, redeemable membership interest and equity	$	351,243	$	807,256

Virtu Financial, Inc.

(Parent Company Only)

Condensed Statements of Comprehensive Income


	For the Years Ended
	December 31,
(in thousands)	2015		2014		2013
Revenues:
Service fee revenue	$	445	$	13,492	$	2,089

Operating Expenses:
Operations and administrative		447		13,492		2,089

Income (loss) before equity in income of subsidiary		(2)		—		—
Equity in income of subsidiary, net of tax		104,036		190,057		182,203
Net income	$	104,034	$	190,057	$	182,203
Net income attributable to common stockholders		20,887		—		—
Other comprehensive income (loss):
Foreign currency translation adjustment, net of taxes		(4,534)		(5,032)		1,382
Comprehensive income	$	16,353	$	185,025	$	183,585

Virtu Financial, Inc.

(Parent Company Only)

Condensed Statements of Cash Flows


	For the Years Ended
	December 31,
(in thousands)	2015		2014		2013
Cash flows from operating activities
Net income	$	104,034	$	190,057	$	182,203

Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of subsidiary, net of tax		(18,237)		(24,469)		244,854
Deferred taxes		3,392		—		—
Changes in operating assets and liabilities:		5,900		(14,056)		(6,529)
Net cash provided by (used in) operating activities		95,089		151,532		420,528

Cash flows from investing activities
Investments in subsidiaries, equity basis		64,624		15,953		13,441
Net cash provided by investing activities		64,624		15,953		13,441

Cash flows from financing activities
Distribution to members through April 15, 2015		(130,000)		(140,652)		(433,400)
Distribution from Virtu Financial to non-controlling interest, after April 15, 2015		(81,377)		—		—
Dividends to Class A shareholders		(17,362)		—		—
Proceeds from issuance of Class A-2 interests in connection with the Temasek transaction described in Note 13		—		3,048		—
Repurchase of Class A-2 interests in connection with the Temasek transaction described in Note 13		—		(3,048)		—
Repurchase of Class A-2 interests		(2,097)		(916)		(573)
Purchase of treasury stock		(3,819)		—		—
Issuance of common stock, net of offering costs		327,366		—		—
Repurchase of Virtu Financial Units and corresponding number of Class A and C common stock in connections with IPO		(277,153)		—		—
Issuance of common stock in connection with secondary offering, net of offering costs		7,782		—		—
Repurchase of Virtu Financial Units and corresponding number of Class A and C common stock in connection with secondary offering		(8,805)		—		—
Net cash used in financing activities	$	(185,465)	$	(141,568)	$	(433,973)

Net increase (decrease) in Cash	$	(25,752)	$	25,917	$	(4)
Cash, beginning of period		25,939		22		26
Cash, end of period	$	187	$	25,939	$	22

Supplemental disclosure of cash flow information:
Taxes paid	$	5,615	$	—	$	—

Non-cash financing activities
Tax receivable agreement described in Note 4		(21,854)		-		-
Secondary offering described in Note 13		-		-		-
Temasek transaction described in Note 13		-		-		-
Repurchase of Class A-2 interests		-		(6,000)		-