Gain Capital (Forex.com) reports record Revenues in Q4 of $83M


Full press release for Gain’s Q4 and full year 2013 results follows. Details and analysis to follow…

The complete Gain Capital Q4 press release can be seen here.

GAIN Capital Reports Full Year and Fourth Quarter 2013 Results

For Full Year 2013

  • Net revenue of $266.4 million
  • Net income of $31.3 million
  • EPS of $0.79 per diluted share; Adjusted EPS* of $0.85 per diluted share
  • Adjusted EBITDA* of $61.0 million

For the Fourth Quarter 2013

  • Net revenue of $83.0 million
  • Net income of $4.3 million
  • EPS of $0.10 per diluted share; Adjusted EPS* of $0.13 per diluted share
  • Adjusted EBITDA* of $13.7 million

BEDMINSTER, N.J., Feb. 27, 2014 /PRNewswire/ — GAIN Capital Holdings, Inc. (“GAIN”) (NYSE: GCAP), a leading global provider of online trading services, announced financial results for the fourth quarter and full year ended December 31, 2013.

“2013 was a transformational year for GAIN, thanks to our acquisition of GFT and the successful execution of organic growth initiatives. The GFT acquisition gave our retail OTC business increased scale, and a broader client base and product offering, while expanding our global presence. We also executed on our revenue diversification strategy through the growth of our commission business, driven by an almost three-fold increase in revenue from our institutional business,” said Glenn Stevens, Chief Executive Officer of GAIN Capital.

“In 2014, we will continue to integrate GFT and we are on track to reduce our combined expense base by $35-$45 million, compared to the two companies’ total pre-acquisition expenses, by the fourth quarter of the year. We also continue to invest in organic growth, especially in our commission-based businesses. To sum up, we believe our greater scale, broader client, product and geographical mix coupled with organic growth initiatives position us for continued growth in 2014,” Mr. Stevens concluded.

Retail OTC Business

In the fourth quarter of 2013, GAIN’s retail OTC trading business generated revenue of $61.4 million, compared to $22.9 million in the fourth quarter of 2012. Total trading volume during the quarter was $508.0 billion, compared to $298.8 billion for the same period in 2012.

For 2013, GAIN’s retail OTC trading business generated revenue of $205.1 million, compared to $127.5 million in 2012. Total trading volume in 2013 was $1.8 trillion, compared to $1.3 trillion in 2012.

Commission business

In the fourth quarter of 2013, GAIN’s commission-based business, which includes institutional forex and exchange traded futures, generated total revenue of $23.0 million, compared to $7.8 million in the fourth quarter of 2012.

The institutional business, comprising GTX and sales trader businesses, generated total revenue of $17.7 million in the quarter, compared to $3.6 million for the same period in 2012. Institutional trading volume was $1.1 trillion in the fourth quarter of 2013, compared to $538.4 billion a year earlier.

The exchange-traded futures business generated revenue of $5.3 million in the fourth quarter of 2013, compared to $4.2 million in the same period in 2012. Daily Average Revenue Trades (DARTs) in the fourth quarter of 2013 were 15,049, compared to 13,049 in the same period in 2012.

In 2013, GAIN’s commission-based business posted revenue of $60.8 million, up nearly three times from $21.4 million in 2012.

The institutional business generated total revenue of $38.6 million in 2013 compared to $13.5 million in 2012. Institutional trading volume was $4 trillion, compared to $2 trillion a year earlier.

The exchange-traded futures business generated revenue of $22.2 million for 2013 compared to $7.9 million in 2012. DARTs in 2013 were 13,785, compared to 12,761 in 2012.

Year-to-date highlights

(Comparisons below are referenced to the twelve months ended December 31, 2012)

Net revenue of $266.4 million, up 76% from $151.4 million

Net income of $31.3 million, or $0.79 per diluted share, up from $2.6 million, or $0.07 per diluted share

Adjusted net income* of $33.8 million, or $0.85 per diluted share, up from $4.0 million, or $0.11 per diluted share

Adjusted EBITDA* of $61.0 million, up 450% from $11.1 million

Retail OTC trading volume of $1.8 trillion, up 38% from $1.3 trillion

Institutional trading volume of $4.0 trillion, up 103% from $2.0 trillion

Futures DARTs of 13,785

Fourth Quarter Metrics

(Comparisons below are referenced to fourth quarter 2012)

Net revenue of $83.0 million, up 156% from $32.4 million

Net income of $4.3 million, or $0.10 per diluted share, compared to a net loss of $3.8 million, or $0.11 per diluted share

Adjusted net income* of $5.5 million, or $0.13 per diluted share, compared to an adjusted net loss of $3.8 million, or $0.11 per diluted share

Adjusted EBITDA* of $13.7 million, up significantly from a loss of $4.9 million

Retail OTC trading volume of $508.0 billion, up 70% from $298.8 billion

Institutional trading volume of $1.1 trillion, up 105% from $538.4 billion

Futures DARTs of 15,049, up 15% from 13,049

Total retail client assets of $739.3 million, up 66% from $446.3 million

(*See below for reconciliation of non-GAAP financial measures)

Dividend

GAIN’s Board of Directors has declared a cash dividend of $0.05 per share of the Company’s common stock. The dividend is payable on March 20, 2014 to shareholders of record as of the close of business March 17, 2014.

Conference Call

GAIN will host a conference call today, Thursday February 27, 2014 at 8.30 a.m. ET. Participants may access the live call by dialing +1-877-317-6789 (U.S. domestic), or +1-412-317-6789 (international).

A live audio webcast of the call and a copy of the accompanying presentation will also be available on the Investor Relations section of the GAIN website (https://ir.gaincapital.com). A PDF copy of the earnings presentation will also be available on the Investor Relations website.

An audio replay will be made available for one month starting approximately two hours after the call by dialing +1-877-344-7529 in the U.S. or +1-412-317-0088 from abroad, and entering passcode 10041131#.

About GAIN

GAIN Capital Holdings, Inc. (NYSE: GCAP) is a global provider of online trading services. GAIN’s innovative trading technology provides market access and highly automated trade execution services across multiple asset classes to a diverse client base of retail and institutional investors.

GAIN’s businesses include FOREX.com, which provides retail traders around the world access to a variety of global OTC financial markets, including forex, precious metals and CFDs on commodities and indices; GTX, a fully independent FX ECN for hedge funds and institutions; and OEC an innovative online futures broker.
GAIN is headquartered in Bedminster, New Jersey, with a global presence across North America, Europe and the Asia Pacific regions. For further company information, visit www.gaincapital.com.

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Gain Capital (Forex.com) reports record Revenues in Q4 of $83M

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