ITG year-end profits jump 65%; Europe rebounds in Q4

Earnings were $0.50 per diluted share, an increase of 67 percent versus earnings of $0.30 per diluted share in the fourth quarter of last year. ITG's total revenue for the fourth quarter of 2005 was a record $112.1 million, 25 percent higher than total revenue of $89.6 million for the fourth quarter of 2004. Net income for the fourth quarter of 2005 included $1.9 million, or $0.05 per share, of tax benefits pertaining to the favorable resolution of certain 2001 matters.

Excluding the impact of non-recurring items in the fourth quarter of 2004, revenues increased by 28 percent from fourth quarter 2004 revenues of $87.6 million. Earnings per diluted share of $0.50 in the fourth quarter of 2005 increased 85 percent versus operating earnings of $0.27 per diluted share in the fourth quarter of last year. Pre-tax operating margins in the fourth quarter of 2005 were 28 percent, up from 19 percent in the fourth quarter of 2004. For the full year 2005, pre-tax operating margins were 26 percent, up from 19 percent in 2004.

For the year ended December 31, 2005, revenues were $408.2 million, net income was $67.7 million, and diluted earnings per share were $1.60. Compared to the year ago period, revenues increased by 22 percent, net income increased by 65 percent and diluted earnings per share increased 67 percent. Excluding non-recurring items, revenues increased 24 percent, and net income increased 68 percent, while earnings per share increased 70 percent.

"In 2005, ITG saw significant growth across all product lines resulting from our increased focus on sales, marketing and product development both domestically and internationally," said Ray Killian, ITG's Chairman, President and Chief Executive Officer. "In the fourth quarter we have seen continued strength in our volume and market share in an extremely competitive market environment."

ITG's International revenues were $24.5 million in the fourth quarter of 2005, 24 percent higher than revenues of $19.7 million in the fourth quarter of 2004. For the full year, international revenues were $92 million, representing 23 percent growth over 2004. International pre-tax operating profits of $0.4 million were flat in the fourth quarter of 2005 as compared to the year-ago period. In 2005, international pre-tax operating profits were $5.1 million, more than triple the $1.6 million earned in 2004.

"ITG's European volumes were strong in the fourth quarter, rebounding from a slow third quarter and posting solid gains. We are pleased with the growth in Europe and plan to continue the globalization of our product line," said Mr. Killian.