8-KFinancial Events

Interactive Brokers Group, Inc. 8-K Report, Financial Restatement (Apr 3, 2008)

Filed April 3, 2008For Securities:IBKR

Summary

Interactive Brokers Group, Inc. (IBKR) filed a Form 8-K on April 2, 2008, to announce that its previously issued unaudited condensed consolidated financial statements for the period ending September 30, 2007, included in its Form 10-Q filed on November 9, 2007, should no longer be relied upon. The restatement pertains to a misclassification of certain cash flows within the statement of cash flows, specifically related to its holding company structure. Importantly, management noted that these cash flow classification errors did not impact the net change in cash for the period or the company's results of operations. In addition to the cash flow restatement, the filing addresses an understatement of IBKR's deferred tax asset and a related payable to IBG Holdings LLC as of September 30, 2007. This understatement, also identified in connection with the preparation of the 2007 Form 10-K, resulted in a ~$20 million understatement of additional paid-in capital and total stockholders' equity. IBKR intends to file an amended Form 10-Q to reflect these corrections. Investors should be aware that the prior financial reporting for that period is considered unreliable until the amended filing is made.

Key Highlights

  • 1Interactive Brokers Group, Inc. (IBKR) is retracting reliance on its previously issued unaudited financial statements for the nine months ended September 30, 2007, as reported in its Form 10-Q.
  • 2The primary issue involves the misclassification of certain cash flows related to IBKR's holding company structure within the statement of cash flows.
  • 3Management confirmed that these cash flow classification errors did not affect the total net change in cash for the period or the company's reported results of operations.
  • 4An understatement of approximately $20 million in additional paid-in capital and stockholders' equity as of September 30, 2007, was also identified.
  • 5This understatement is linked to IBKR's deferred tax asset and a related payable to IBG Holdings LLC, stemming from the company's May 2007 IPO.
  • 6IBKR plans to file an amended Form 10-Q to correct these financial reporting issues.
  • 7The company's Audit Committee and independent auditor, Deloitte & Touche LLP, have been informed of these matters.

Frequently Asked Questions