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GAIN Capital Completes Sale of GTX ECN Business

Proceeds will be used to accelerate growth in leading retail trading business, while continuing to return cash to shareholders

BEDMINSTER, N.J., June 29, 2018 /PRNewswire/ -- GAIN Capital Holdings, Inc. ("GAIN" or "the Company") (NYSE: GCAP), a leading global provider of online trading services, announced today that it completed the previously announced sale of the Company's GTX ECN business to Deutsche Börse Group via its FX unit, 360T for a total purchase price of $100 million. In connection with the closing, the Company received approximately $85 million, net of taxes and transaction-related expenses and fees.

GAIN Capital Holdings, Inc. Logo. (PRNewsFoto/GAIN Capital Holdings, Inc.)

"The sale of GTX marks a pivotal moment for GAIN by allowing us to focus additional attention and resources on the core retail business and setting us on a trajectory for enhanced growth and profitability," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "In addition to investing in organic growth, the proceeds provide us with increased financial flexibility to pursue M&A opportunities that will accelerate our growth strategy, return capital to shareholders via our stock repurchase program, and reduce our debt. We thank Deutche Borse and its 360T Unit for their partnership during and after this transaction closes."

Jefferies LLC served as exclusive financial advisor and Davis Polk & Wardwell LLP served as legal advisor to GAIN Capital.

Detailed financial information concerning the transaction is included in an investor presentation available on the Company's investor relations website at http://ir.gaincapital.com.

About GAIN

GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities.  GAIN Capital 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.

Forward-Looking Statements

In addition to historical information, this earnings release contains "forward-looking" statements that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements.  These factors are noted throughout GAIN Capital's annual report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on March 14, 2018, and include, but are not limited to, the actions of both current and potential new competitors, fluctuations in market trading volumes, financial market volatility, evolving industry regulations, errors or malfunctions in GAIN Capital's systems or technology, rapid changes in technology, effects of inflation, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate assets and companies we have acquired, our ability to effectively compete, changes in tax policy or accounting rules, fluctuations in foreign exchange rates and commodity prices, adverse changes or volatility in interest rates, as well as general economic, business, credit and financial market conditions, internationally or nationally, and our ability to continue paying a quarterly dividend in light of future financial performance and financing needs.  The forward-looking statements included herein represent GAIN Capital's views as of the date of this release. GAIN Capital undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/gain-capital-completes-sale-of-gtx-ecn-business-300674806.html

SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact: Lauren Tarola, Edelman for GAIN Capital, +1 908.731.0737, ir@gaincapital.com; Media Contact: Nicole Briguet, Edelman for GAIN Capital, +1 212-704-8164, pr@gaincapital.com

GAIN Capital to Sell GTX ECN Business to Deutsche Börse Group's FX unit, 360T

Agrees to sell the business for $100 million in cash
Transaction furthers GAIN's focus on growing its leading retail trading business, while continuing to return cash to shareholders

BEDMINSTER, N.J., May 30, 2018 /PRNewswire/ -- GAIN Capital Holdings, Inc. ("GAIN" or "the Company") (NYSE: GCAP), a leading global provider of online trading services, today announced that it reached a definitive agreement to sell the Company's GTX ECN business, an institutional platform for trading foreign exchange, to Deutsche Börse Group, a leading diversified exchange organization providing services to the securities industry, via its FX unit, 360T for a total purchase price of $100 million

GAIN Capital Holdings, Inc. Logo. (PRNewsFoto/GAIN Capital Holdings, Inc.)

"We are very pleased to have built GTX into a successful, high-demand institutional business over the past eight years," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "We have taken this strategic step in order to focus our attention and resources on our core retail business and on using available levers to unlock shareholder value. Proceeds from the sale of GTX provide us with additional financial flexibility to invest in organic growth and M&A opportunities, while providing increased liquidity to accelerate return on capital, which may include increasing the scale of our stock repurchase program and reducing our debt. We are pleased to be able to partner on this transaction with Deutsche Börse Group's FX unit, 360T, a leading global FX venue," Mr. Stevens added.

The transaction is expected to result in proceeds of approximately $85 million for GAIN, net of taxes and transaction-related expenses and fees and is expected to close in the second quarter of 2018, subject to customary closing conditions.

GAIN initially launched GTX in 2010 as a venue for trading in FX and precious metals by institutional investors. Today, the business has over 150 unique clients, including banks, brokers, hedge funds, non-bank market makers, commodities trading advisors, asset managers and retail aggregators, and had over 700 unique users in 2017. For full year 2017, GAIN's institutional business represented approximately 10% of the Company's total revenue and 14% of EBITDA.

"Since our launch in 2010, GTX has grown to become a leading global FX platform serving all corners of the institutional trading community," said Vincent Sangiovanni, GTX CEO. "GAIN has been a wonderful steward over the last eight years and today's transaction highlights our success executing on the business model and continuously delivering exceptional products and support to our clients. Looking ahead, Deutsche Börse Group's FX unit, 360T is an ideal partner for the next phase of GTX's growth with its broad geographic distribution, complementary product set and deep knowledge of the FX space. We look forward to working closely with 360T to continue to deliver our clients with GTX's innovative trading platform and high-quality customer service."

Carlo Kölzer, Head of FX Deutsche Börse Group and 360T CEO said, "We are pleased to announce the acquisition of the GTX ECN business. The highly reputable player in the FX market is a meaningful addition not only to broaden our existing offering but also to complete our holistic value proposition designed to support all clients that operate out of all geographies and client segments based on current or potential future market structure."  

Jefferies LLC served as exclusive financial advisor and Davis Polk & Wardwell LLP served as legal advisor to GAIN Capital.

Detailed financial information concerning the transaction is included in an investor presentation available on the Company's investor relations website at http://ir.gaincapital.com.

About GAIN

GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities.  GAIN Capital 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.

Forward-Looking Statements

In addition to historical information, this earnings release contains "forward-looking" statements that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements.  These factors are noted throughout GAIN Capital's annual report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on March 14, 2018, and include, but are not limited to, the actions of both current and potential new competitors, fluctuations in market trading volumes, financial market volatility, evolving industry regulations, errors or malfunctions in GAIN Capital's systems or technology, rapid changes in technology, effects of inflation, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate assets and companies we have acquired, our ability to effectively compete, changes in tax policy or accounting rules, fluctuations in foreign exchange rates and commodity prices, adverse changes or volatility in interest rates, as well as general economic, business, credit and financial market conditions, internationally or nationally, and our ability to continue paying a quarterly dividend in light of future financial performance and financing needs.  The forward-looking statements included herein represent GAIN Capital's views as of the date of this release. GAIN Capital undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/gain-capital-to-sell-gtx-ecn-business-to-deutsche-borse-groups-fx-unit-360t-300656136.html

SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact, Lauren Tarola, Edelman for GAIN Capital, +1 908.731.0737, ir@gaincapital.com; Media Contact, Nicole Briguet, Edelman for GAIN Capital, +1 212-704-8164, pr@gaincapital.com

GAIN Capital Reports First Quarter 2018 Results

BEDMINSTER, N.J., April 26, 2018 /PRNewswire/ -- GAIN Capital Holdings, Inc. ("GAIN") (NYSE: GCAP), a leading global provider of online trading services, announced financial results for the first quarter of 2018.

GAIN Capital Holdings, Inc. Logo. (PRNewsFoto/GAIN Capital Holdings, Inc.)

Key Financial Results for the First Quarter

  • Net revenue of $106.9 million, up 79.4% year-over-year
  • GAAP net income of $16.1 million, or $0.35 per share
  • Adjusted net income of $16.2 million, or $0.36 per share
  • Adjusted EBITDA of $33.0 million

Operating Highlights

  • Retail average daily volume increased 31% year-over-year to $12.4 billion
  • Institutional ECN average daily volume increased 26% year-over-year to a record high of $14.8 billion
  • New direct accounts increased 24% year-over-year

A summary of GAIN's financial highlights are included in the chart below.


Three Months Ended March 31,


2018


2017

Net Income/(Loss)

$

16.1



$

(18.9)


Adjusted Net Income/(Loss)(1)

$

16.2



$

(18.6)






Net Revenue

$

106.9



$

59.6


Operating Expenses

(73.9)



(73.0)


Adjusted EBITDA(1)

$

33.0



$

(13.4)






Diluted GAAP EPS

$

0.35



$

(0.39)


Adjusted EPS(1)

$

0.36



$

(0.39)



___________________________________

Note:  Dollars in millions, except per share amounts and where noted otherwise.  Columns may not add due to rounding.

1See below for reconciliation of non-GAAP financial measures.








"Our strong first quarter financial results are highlighted by 79 percent revenue growth, margin expansion to 31 percent and robust overall operating metrics, especially within our Retail business," commented Glenn Stevens, CEO of GAIN. "A return to more normalized volatility levels provided a market environment in which GAIN was able to showcase the benefits of our investment in organic initiatives over the past year. Customer engagement was up across the board, with Retail average daily volume up 31% year-over-year and Institutional ECN average daily volume up 26% to reach a record high of $14.8 billion. As we look ahead, we are confident that our strategic priorities will continue to position us for long-term growth."

Quarterly Operating Metrics


Q1 18


Q1 17


Year-over-year
Change

Retail Segment






OTC Trading Volume (1) (2)

$

795.4



$

619.3



28.4

%

OTC Average Daily Volume

$

12.4



$

9.5



30.5

%

12 Month Trailing Active OTC Accounts (3)

131,764



136,829



(3.7)

%

3 Month Trailing Active OTC Accounts (3)

78,681



83,145



(5.4)

%







Institutional Segment






ECN Volume (1)

$

945.6



$

759.6



24.5

%

ECN Average Daily Volume

$

14.8



$

11.7



26.5

%

Swap Dealer Volume (1)

$

166.5



$

225.5



(26.2)

%

Swap Dealer Average Daily Volume

$

2.6



$

3.5



(25.7)

%







Futures Segment






Number of Futures Contracts


2,160,231




2,060,631



4.8

%

Futures Average Daily Contracts

35,414



33,236



6.6

%

12 Month Trailing Active Futures Accounts (3)

7,959



8,201



(3.0)

%


_______________________________________

All volume figures reported in billions.

1 US dollar equivalent of notional amounts traded.

2 For the quarter, indirect volume represented 23% of total retail OTC trading volume.

3 Accounts that executed a transaction during the relevant period.

Capital Return and Dividend

In the first quarter, GAIN:

  • focused on returning capital to shareholders through dividends, which amounted to approximately $2.6 million.
  • repurchased 580,064 shares of stock at an average price of $7.20.
  • returned a total of $6.8 million to shareholders in the form of share repurchases and dividends.

GAIN's Board of Directors declared a quarterly cash dividend of $0.06 per share of the Company's common stock.  The dividend is payable on June 19, 2018 to shareholders of record as of the close of business on June 12, 2018.

Conference Call

GAIN will host a conference call April 26, 2018 at 4:30 p.m. ET.  Participants may access the live call by dialing +1.888.349.0112 (US Domestic), or +1.412.317.6001 (International). Please let the operator know you would like to join the GAIN Capital call.

A live audio webcast of the call, as well as a PDF copy of the earnings presentation, will be available on the Investor Relations section of the GAIN Capital website (http://ir.gaincapital.com).

An audio replay will be made available for one month starting approximately one hour after the call by dialing +1.877.344.7529 from the U.S. or +1.412.317.0088 from abroad, and entering the passcode 10113713#.

For more corporate information or to sign up for alerts, please visit: http://ir.gaincapital.com.

About GAIN

GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities.  GAIN Capital 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.

 

Condensed Consolidated Statements of Operations

(unaudited)



Three Months Ended


March 31,


2018


2017

REVENUE:




Retail revenue

$

84.1



$

38.9


Institutional revenue

8.5



8.4


Futures revenue

10.6



10.6


Other revenue

1.9



1.0


Total non-interest revenue

105.1



58.9


Interest revenue

2.1



0.8


Interest expense

0.4



0.2


Total net interest revenue

1.7



0.7


Net revenue

$

106.9



$

59.6


EXPENSES:




Employee compensation and benefits

$

27.8



$

24.2


Selling and marketing

6.0



9.3


Referral fees

11.9



16.4


Trading expenses

8.5



8.1


General and administrative

13.0



9.7


Depreciation and amortization

5.7



4.0


Purchased intangible amortization

4.2



3.6


Communications and technology

5.5



5.2


Bad debt provision

1.1



0.1


Impairment of investment

(0.1)




Total operating expense

83.6



80.6


OPERATING PROFIT/(LOSS)

23.3



(21.0)


Interest expense on long term borrowings

3.3



2.7


INCOME/(LOSS) BEFORE INCOME TAX EXPENSE/(BENEFIT)

20.0



(23.7)


Income tax expense/(benefit)

3.7



(4.9)


NET INCOME/(LOSS)

16.3



(18.8)


Net income attributable to non-controlling interests

0.2



0.1


NET INCOME/(LOSS) APPLICABLE TO GAIN CAPITAL HOLDINGS, INC.

$

16.1



$

(18.9)


Earnings/(loss) per common share:




Basic

$

0.35



$

(0.39)


Diluted

$

0.35



$

(0.39)


Weighted average common shares outstanding used in computing earnings/(loss) per common share:




Basic


45,017,716




47,894,546


Diluted


45,523,766




47,894,546



_________________________

Note:  Dollars in millions, except share, per share data and where noted otherwise.  Columns may not add due to rounding.

 

 

Condensed Consolidated Balance Sheet

(unaudited)



March 31,


December 31,


2018


2017

ASSETS:




Cash and cash equivalents

$

239.7



$

209.7


Cash and securities held for customers

963.2



978.8


Receivables from brokers

72.0



78.5


Property and equipment - net of accumulated depreciation

40.2



40.7


Intangible assets, net of accumulated amortization

59.2



62.0


Goodwill

33.4



33.0


Other assets

46.9



45.9


          Total assets

$

1,454.6



$

1,448.6


LIABILITIES AND SHAREHOLDERS' EQUITY:




Payables to customers

$

963.2



$

978.8


Payables to brokers



2.8


Accrued compensation & benefits

8.8



10.1


Accrued expenses and other liabilities

37.3



33.9


Income tax payable

3.6



0.6


Convertible senior notes

133.7



132.2


          Total liabilities

$

1,146.7



$

1,158.5


Redeemable non-controlling interests

$

2.0



$

4.4


Shareholders' equity

306.0



285.7


          Total liabilities and shareholders' equity

$

1,454.6



$

1,448.6



_________________________

Note:  Dollars in millions, except where noted otherwise.  Columns may not add due to rounding.

 

Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted EPS

Adjusted net income/(loss) is a non-GAAP financial measure and represents our net income/(loss) excluding restructuring, acquisition and integration related expenses, adjustment to fair value of contingent consideration and other non-recurring items.  This non-GAAP financial measure has certain limitations, including that it does not have a standardized meaning and, therefore, our definition may be different from similar non-GAAP financial measures used by other companies and/or analysts. Thus, it may be more difficult to compare our financial performance to that of other companies. We believe our reporting of adjusted net income/(loss) assists investors in evaluating our operating performance. However, because adjusted net income/(loss) is not a measure of financial performance calculated in accordance with GAAP, such measure should be considered in addition to, but not as a substitute for, other measures of our financial performance reported in accordance with GAAP, such as net income/(loss).

 

Net Income/(Loss) to Adjusted Net Income/(Loss) and Adjusted EPS

(unaudited)



Three Months Ended


March 31,


2018


2017

Net income/(loss) applicable to GAIN Capital Holdings Inc.

$

16.1



$

(18.9)


Income tax expense/(benefit)

3.7



(4.9)


Non-controlling interest

0.2



0.1


Pre-tax income/(loss)

$

20.0



$

(23.7)


Adjustments

(0.1)




Adjusted pre-tax income/(loss)

$

19.9



$

(23.7)


Adjusted income tax

(3.6)



5.2


Non-controlling interest

(0.2)



(0.1)


Adjusted net income/(loss)

$

16.2



$

(18.6)






Adjusted earnings/(loss) per common share




Basic

$

0.36



$

(0.39)


Diluted

$

0.36



$

(0.39)






Weighted average common shares outstanding used in computing earnings/(loss) per common share




Basic


45,017,716




47,894,546


Diluted


45,523,766




47,894,546



_____________________________

Note:  Dollars in millions, except per share data and where noted otherwise.  Columns may not add due to rounding.

 

Reconciliation of GAAP Net Income to Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA is a non-GAAP financial measure that represents our earnings/(loss) before interest, taxes, depreciation and amortization, purchased intangible amortization, restructuring, acquisition and integration-related expenses, legal settlement, and non-controlling interest. This non-GAAP financial measure has certain limitations, including that it does not have a standardized meaning and, therefore, our definition may be different from similar non-GAAP financial measures used by other companies and/or analysts. Thus, it may be more difficult to compare our financial performance to that of other companies. We believe our reporting of adjusted EBITDA assists investors in evaluating our operating performance. However, because adjusted EBITDA is not a measure of financial performance calculated in accordance with GAAP, such measure should be considered in addition to, but not as a substitute for, other measures of our financial performance reported in accordance with GAAP, such as net income/(loss).

 

Reconciliation of GAAP Net Income/(Loss) to Adjusted EBITDA and Adjusted EBITDA Margin

(unaudited)



Three Months Ended


March 31,


2018


2017

Net revenue

$

106.9



$

59.6


Net income/(loss) applicable to GAIN Capital Holdings Inc.

16.1



(18.9)


Net income/(loss) margin %

15

%


(32)

%





Net income/(loss)

$

16.1



$

(18.9)


Depreciation and amortization

5.7



4.0


Purchased intangible amortization

4.2



3.6


Interest expense on long term borrowings

3.3



2.7


Income tax expense/(benefit)

3.7



(4.9)


Impairment of investment

(0.1)




Net income attributable to non-controlling interests

0.2



0.1


Adjusted EBITDA

33.0



(13.4)


Adjusted EBITDA Margin(1)

31

%


(22)

%


_________________________

Note:  Dollars in millions, except where noted otherwise.  Columns may not add due to rounding.

1Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenue.

 

Segment Information:

ASC 280, Disclosures about Segments of an Enterprise and Related Information, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision making group, in deciding how to allocate resources and in assessing performance. Reportable segments are defined as an operating segment that either (a) exceeds 10% of revenue, or (b) reported profit or loss in absolute amount exceeds 10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments. The Company's operations relate to global trading services and solutions. Based on the Company's management strategies, and common production, marketing, development and client coverage teams, the Company has concluded that it operates in three operating segments: Retail Segment, Institutional Segment and Futures Segment.

 

Retail



Three Months Ended
March 31,


2018


2017

Trading Revenue

$

84.1



$

38.9


Other Retail Revenue

1.6



1.2


Total Revenue

85.7



40.1






Employee Comp & Ben

15.4



13.3


Marketing

5.7



8.9


Referral Fees

7.7



12.3


Other Operating Expense

17.7



13.4


Segment Profit

$

39.2



$

(7.9)


 Segment Profit Margin %

46

%


(20)

%



Institutional                           



Three Months Ended
March 31,


2018


2017

ECN

$

7.1



$

6.1


Swap Dealer

1.5



2.5


Total Revenue

8.6



8.6






Employee Comp & Ben

3.7



4.0


Marketing

0.1




Referral Fees

0.5




Other Operating Expense

3.3



3.2


Segment Profit

$

1.0



$

1.3


 Segment Profit Margin %

12

%


15

%


____________________________

Note:  Dollars in millions, except where noted otherwise.  Columns may not add due to rounding.



Futures



Three Months Ended
March 31,


2018


2017

Revenue

$

11.5



$

11.0






Employee Comp & Ben

2.5



2.6


Marketing

0.2



0.3


Referral Fees

3.7



4.1


Other Operating Expense

3.8



3.7


Segment Profit

$

1.2



$

0.3


Segment Profit Margin %

10

%


3

%



Corporate and Other



Three Months Ended
March 31,


2018


2017

Revenue/(loss)

$

1.1



$

(0.1)






Employee Comp & Ben

6.1



4.5


Marketing

0.1



0.1


Other Operating Expense

3.2



2.4


Loss

$

(8.4)



$

(7.1)



____________________

Note:  Dollars in millions, except where noted otherwise.  Columns may not add due to rounding.










Reconciliation of Segment Profit to Income Before Income Tax Expense










Three Months Ended
March 31,


2018


2017

Retail segment

$

39.2



$

(7.9)


Institutional segment

1.0



1.3


Futures segment

1.2



0.3


Corporate and other

(8.4)



(7.1)


Segment Profit

33.0



(13.4)






Depreciation and amortization

5.7



4.0


Purchased intangible amortization

4.2



3.6


Impairment of investment

(0.1)




Operating profit/(loss)

$

23.3



$

(21.0)


Interest expense on long term borrowings

3.3



2.7


Income/(loss) before income tax expense/(benefit)

$

20.0



$

(23.7)



____________________

Note:  Dollars in millions, except where noted otherwise.  Columns may not add due to rounding.

 

Forward-Looking Statements:

In addition to historical information, this earnings release contains "forward-looking" statements that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements.  These factors are noted throughout GAIN Capital's annual report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on March 14, 2018, and include, but are not limited to, the actions of both current and potential new competitors, fluctuations in market trading volumes, financial market volatility, evolving industry regulations, errors or malfunctions in GAIN Capital's systems or technology, rapid changes in technology, effects of inflation, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate assets and companies we have acquired, our ability to effectively compete, changes in tax policy or accounting rules, fluctuations in foreign exchange rates and commodity prices, adverse changes or volatility in interest rates, as well as general economic, business, credit and financial market conditions, internationally or nationally, and our ability to continue paying a quarterly dividend in light of future financial performance and financing needs.  The forward-looking statements included herein represent GAIN Capital's views as of the date of this release. GAIN Capital undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/gain-capital-reports-first-quarter-2018-results-300637481.html

SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact: Lauren Tarola, Edelman for GAIN Capital, +1 908.731.0737, ir@gaincapital.com; Media Contact: Nicole Briguet, Edelman for GAIN Capital, +1 212.704.8164, pr@gaincapital.com

GAIN Capital Expands Cryptocurrency Offering with Launch of Ethereum, Litecoin, Ripple and Bitcoin Cash

BEDMINSTER, N.J., April 5, 2018 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP) ("GAIN" or "the Company"), a global leader in online trading, today announced the continued rollout of the Company's cryptocurrency offering, with the recent launch of Ethereum, Litecoin, Ripple and Bitcoin Cash in the U.K., Europe, Australia and Singapore on the Company's FOREX.com and City Index services. GAIN has also expanded its Bitcoin offering, allowing customers to trade Bitcoin directly against the Euro (BTC/EUR), British pound (BTC/GBP) and Australian dollar (BTC/AUD), in addition to the U.S. dollar.

GAIN Capital Holdings, Inc. Logo. (PRNewsFoto/GAIN Capital Holdings, Inc.)

"The expansion of our cryptocurrency offering provides new opportunities for our clients to trade a variety of digital currencies through an established, regulated firm, without the need for a digital wallet," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "Aligned with our strategy to invest in organic growth and enhance our product offering, the addition of Ethereum, Litecoin, Ripple, Bitcoin Cash and additional Bitcoin pairs enhances our crypto offering to include the most popular digital currencies and further differentiates our service, where traders can access over 12,000 markets, including FX, indices, commodities, equities and rates."

GAIN offers cryptocurrency trading either as an over-the-counter (OTC) derivative or as a future, allowing traders to speculate on price movements without owning the underlying asset. 

The launch of the additional cryptocurrencies follows the initial introduction of Bitcoin trading in the U.K. and Europe in December 2017 across the Company's City Index and FOREX.com services, and in Australia and Singapore in January 2018. GAIN offers Bitcoin futures in the U.S. through its Futures Online and Daniels Trading brands.

About GAIN
GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities. GAIN Capital 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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SOURCE GAIN Capital Holdings, Inc.

Nicole Briguet, Edelman for GAIN Capital, +1 212-704-8164, pr@gaincapital.com

GAIN Capital Responds to ESMA Statement

Company does not expect the new regulations to have a material adverse effect on its overall financial results

BEDMINSTER, N.J., March 27, 2018 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP) ("GAIN", "The Company") notes that the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA) have issued statements announcing regulatory changes in the provision of contracts for difference (CFDs) to retail clients.

GAIN Capital Holdings, Inc. Logo. (PRNewsFoto/GAIN Capital Holdings, Inc.)

The measures on CFDs are being introduced as a temporary intervention on a three-month basis, during which ESMA and FCA will reflect on whether it is necessary extend the intervention measures for a further three months or on a permanent basis, respectively.

While GAIN does not agree with every aspect of ESMA's new rules, the Company is strongly supportive of measures that enhance consumer protection in the FX/CFD market and elevate standards across the sector, including curbing aggressive marketing to inexperienced investors and mandating disclosure requirements that ensure all clients fully understand the risks of FX/CFD trading.

GAIN operates a diversified business, which includes a retail FX/CFD business spanning eight regulatory jurisdictions, a U.S.-based retail futures business and an institutional trading business. As a result of this diversification, as well as due to actions being taken by the business to mitigate the impact of ESMA's proposed regulations, the Company believes that ESMA's new regulations place less than 5% of full year 2018 total revenue at risk, based on an anticipated implementation date of the end of the second quarter of 2018.  

About GAIN
GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities. GAIN Capital 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.

Forward-Looking Statements:
In addition to historical information, this earnings release contains "forward-looking" statements that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors are noted throughout GAIN Capital's annual report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on March 15, 2017, and include, but are not limited to, the actions of both current and potential new competitors, fluctuations in market trading volumes, financial market volatility, evolving industry regulations, errors or malfunctions in GAIN Capital's systems or technology, rapid changes in technology, effects of inflation, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate assets and companies we have acquired, our ability to effectively compete, changes in tax policy or accounting rules, fluctuations in foreign exchange rates and commodity prices, adverse changes or volatility in interest rates, as well as general economic, business, credit and financial market conditions, internationally or nationally, and our ability to continue paying a quarterly dividend in light of future financial performance and financing needs. The forward-looking statements included herein represent GAIN Capital's views as of the date of this release. GAIN Capital undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.

 

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SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact, Lauren Tarola, Edelman for GAIN Capital, +1 908.731.0737, ir@gaincapital.com; Media Contact, Nicole Briguet, Edelman for GAIN Capital, +1 212.704.8164, pr@gaincapital.com

GAIN Capital Clarifies Impact of U.S. Tax Cuts and Jobs Act on Fourth Quarter and Full Year 2017 Results

BEDMINSTER, N.J., March 12, 2018 /PRNewswire/ -- GAIN Capital Holdings, Inc. ("GAIN" or the "Company") (NYSE: GCAP), a leading global provider of online trading services, wishes to clarify its prior statement regarding the impact of the U.S. Tax Cuts and Jobs Act on its net income included in the Company's previously disseminated fourth quarter and full year 2017 earnings release, issued on Thursday, March 8, 2018. The Company's prior statement in the fourth bullet under the "Key Financial Results" section is amended to read, "Removing the impact of the U.S. Tax Cuts and Jobs Act on GAAP net loss, net income in the fourth quarter would have been a net profit of $1.2 million or $0.03 per share, while the full year would have been a net loss of $6.3 million or $0.10 per share."

GAIN Capital Holdings, Inc. Logo. (PRNewsFoto/GAIN Capital Holdings, Inc.)

About GAIN
GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities.  GAIN Capital 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.

Forward-Looking Statements:
In addition to historical information, this earnings release contains "forward-looking" statements that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors are noted throughout GAIN Capital's annual report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on March 15, 2017, and include, but are not limited to, the actions of both current and potential new competitors, fluctuations in market trading volumes, financial market volatility, evolving industry regulations, errors or malfunctions in GAIN Capital's systems or technology, rapid changes in technology, effects of inflation, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate assets and companies we have acquired, our ability to effectively compete, changes in tax policy or accounting rules, fluctuations in foreign exchange rates and commodity prices, adverse changes or volatility in interest rates, as well as general economic, business, credit and financial market conditions, internationally or nationally, and our ability to continue paying a quarterly dividend in light of future financial performance and financing needs. The forward-looking statements included herein represent GAIN Capital's views as of the date of this release. GAIN Capital undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.

 

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SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact: Lauren Tarola, Edelman for GAIN Capital, +1 908.731.0737, ir@gaincapital.com OR Media Contact: Nicole Briguet, Edelman for GAIN Capital, +1 212.704.8164, pr@gaincapital.com

GAIN Capital Reports Fourth Quarter and Full Year 2017 Results

BEDMINSTER, N.J., March 8, 2018 /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 2017.

GAIN Capital Holdings, Inc. Logo. (PRNewsFoto/GAIN Capital Holdings, Inc.)

Key Financial Results

  • Net revenue of $308.6 million for the year and $69.7 million for the fourth quarter 2017
  • GAAP net loss of $11.2 million, or $0.20 per share, for the full year; GAAP net loss of $3.7 million, or $0.08 per share, for the fourth quarter
  • Adjusted net loss of $9.4 million, or $0.20 per share, for the full year; adjusted net loss of $4.5 million, or $0.10 per share, for the fourth quarter
  • The U.S. Tax Cuts and Jobs Act decreased adjusted net income by $3.1 million, or $0.10 per share, for the full year, and $5.7 million, or $0.13 per share, for the fourth quarter
  • Adjusted EBITDA of $35.1 million for the year and $7.3 million for the fourth quarter

Operating Highlights

  • Year-end total retail client assets of $749.6 million, up 25% year-over-year
  • Full year new funded direct accounts increased 12% year-over-year
  • ECN average daily volume increased 37% and 22% year-over-year for the full year and fourth quarter, respectively
  • Achieved $18.6 million in cost savings against $15 million target

A summary of GAIN's financial results is included in the chart below.


Three Months Ended


Fiscal Year Ended


December 31,


December 31,


2017


2016


2017


2016

Net (Loss)/Income

$

(3.7)


$

20.8


$

(11.2)


$

35.3

Adjusted Net (Loss)/Income(1)

$

(4.5)


$

20.8


$

(9.4)


$

45.0









Net Revenue

$

69.7


$

115.8


$

308.6


$

411.8

Operating Expenses

(62.4)


(78.9)


(273.5)


(312.2)

Adjusted EBITDA(1)

$

7.3


$

36.9


$

35.1


$

99.6









Diluted GAAP EPS

$

(0.08)


$

0.42


$

(0.20)


$

0.67

Adjusted EPS(1)

$

(0.10)


$

0.43


$

(0.20)


$

0.92

















Note:  Dollars in millions, except per share amounts and where noted otherwise. Columns may not add due to rounding.

1See below for reconciliation of non-GAAP financial measures.

"Our financial performance in 2017 reflects the considerable headwinds caused by the lowest market volatility levels over the past decade," commented Glenn Stevens, CEO of GAIN. "Despite the macro pressure on our business, we saw areas of growth, particularly in retail client assets and our ECN platform, which has been taking market share and increasing trading volume. In the first two months of 2018, with a resurgence of market volatility, we are seeing positive returns on our efforts to grow client assets and direct accounts in the form of significant increases in client trading volumes and strong revenues in the first part of the year."

Quarterly Operating Metrics









Q4 17


Q4 16


Year-over-year
Change

Retail Segment




OTC Trading Volume (1)(2)

$

563.1


$

637.0


(11.6)%

OTC Average Daily Volume

$

8.8


$

9.8


(10.2)%

12 Month Trailing Active OTC Accounts (3)

132,262


126,528


4.5%

3 Month Trailing Active OTC Accounts (3)

80,122


72,447


10.6%





Institutional Segment




ECN Volume (1)

$

734.3


$

612.2


19.9%

ECN Average Daily Volume

$

11.5


$

9.4


22.3%

Swap Dealer Volume (1)

$

155.8


$

216.6


(28.1)%

Swap Dealer Average Daily Volume

$

2.4


$

3.3


(27.3)%





Futures Segment




Number of Futures Contracts

1,623,656


1,834,393


(11.5)%

Futures Average Daily Contracts

25,772


29,117


(11.5)%

12 Month Trailing Active Futures Accounts (3)

7,838


8,368


(6.3)%







All volume figures reported in billions.






1 US dollar equivalent of notional amounts traded.



2 For the quarter, indirect volume represented 29% of total retail OTC trading volume.

3 Accounts that executed a transaction during the relevant period.



Capital Return and Dividend
In the fourth quarter, GAIN focused on returning capital to shareholders through dividends, which amounted to approximately $2.7 million.

For the full year 2017, excluding the buyback in conjunction with the Convertible Senior Notes offering, GAIN repurchased 1,653,297 shares of stock at an average price of $6.80.

Including the buyback in conjunction with the Convertible Senior Notes offering, during the full year GAIN repurchased 3,776,283 shares of stock at an average price of $6.82.

For the twelve months ended 2017, GAIN returned a total of $37.0 million to shareholders in the form of share repurchases and dividends.

GAIN's Board of Directors declared a quarterly cash dividend of $0.06 per share of the Company's common stock. The dividend is payable on March 30, 2018 to shareholders of record as of the close of business on March 27, 2018.

February Operating Metrics







Feb-18

Jan-18

Feb-17

Sequential
Change


Year-over-year
Change

Retail Segment







OTC Trading Volume (1)

$

283.5


$

249.0


$

170.2


13.9%


66.6%

OTC Average Daily Volume

$

14.2


$

11.3


$

8.5


25.7%


67.1%

12 Month Trailing Active OTC Accounts (2)

133,545


132,783


131,192


0.6%


1.8%

3 Month Trailing Active OTC Accounts (2)

80,681


81,034


76,513


(0.4)%


5.4%








Institutional Segment







ECN Volume (1)

$

322.7


$

305.0


$

221.6


5.8%


45.6%

ECN Average Daily Volume

$

16.1


$

13.9


$

11.1


15.8%


45.0%

Swap Dealer Volume (1)

$

53.8


$

56.0


$

61.5


(3.9)%


(12.5)%

Swap Dealer Average Daily Volume

$

2.7


$

2.5


$

3.1


8.0%


(12.9)%








Futures Segment







Number of Futures Contracts

714,322


674,160


589,538


6.0%


21.2%

Futures Average Daily Contracts

37,596


32,103


31,028


17.1%


21.2%

12 Month Trailing Active Futures Accounts (2)

7,972


7,924


8,221


0.6%


(3.0)%













All volume figures reported in billions.










1 US dollar equivalent of notional amounts traded.








2 Accounts that executed a transaction during the relevant period.






Conference Call
GAIN will host a conference call March 8, 2018 at 4:30 p.m. ET. Participants may access the live call by dialing +1.888.349.0112 (US Domestic), or +1.412.317.6001 (International). Please let the operator know you would like to join the GAIN Capital call.

A live audio webcast of the call, as well as a PDF copy of the earnings presentation, will be available on the Investor Relations section of the GAIN Capital website (http://ir.gaincapital.com).

An audio replay will be made available for one month starting approximately one hour after the call by dialing +1.877.344.7529 from the U.S. or +1.412.317.0088 from abroad, and entering the passcode 10116793#.

For more corporate information or to sign up for alerts, please visit: http://ir.gaincapital.com.

About GAIN
GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities.  GAIN Capital 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.

Condensed Consolidated Statements of Operations

(unaudited)














Three Months Ended


Twelve Months Ended


December 31,


December 31,


2017


2016


2017


2016

REVENUES:







Retail revenue

$

50.9


96.2


$

231.1


$

330.7

Institutional revenue

6.8


8.5


30.1


29.0

Futures revenue

8.8


10.3


38.0


47.4

Other revenue

1.4


0.5


4.5


3.5

Total non-interest revenue

68.0


115.4


303.7


410.7

Interest revenue

2.0


0.5


5.8


1.7

Interest expense

0.3


0.2


0.9


0.6

Total net interest revenue

1.7


0.3


4.9


1.1

Net revenue

$

69.7


115.8


$

308.6


$

411.8

EXPENSES:







Employee compensation and benefits

$

20.9


25.1


$

95.2


$

101.9

Selling and marketing

8.0


10.2


31.2


28.7

Referral fees

11.0


17.3


53.7


70.8

Trading expenses

6.6


8.1


29.0


31.2

General and administrative

11.8


11.2


45.7


55.0

Depreciation and amortization

4.9


3.7


17.9


13.9

Purchased intangible amortization

4.1


3.6


16.1


15.0

Communications and technology

5.2


4.7


19.7


20.5

Bad debt provision

(0.3)


2.2


(0.2)


4.2

Restructuring expenses




1.0

Integration expenses


0.3



2.8

 Legal settlement




9.2

 Impairment of investment

0.6



0.6


Total operating expense

72.9


86.4


308.9


354.2

OPERATING (LOSS)/PROFIT

(3.2)


29.4


(0.3)


57.7

Interest expense on long term borrowings

3.5


2.6


11.8


10.4

Loss on extinguishment of debt



4.9


(LOSS)/INCOME BEFORE INCOME TAX
(BENEFIT)/EXPENSE

(6.7)


26.7


(17.1)


47.2

Income tax (benefit)/expense

(3.4)


5.6


(6.9)


9.8

Equity in net loss of affiliate

(0.2)



(0.3)


(0.1)

NET (LOSS)/INCOME

(3.5)


21.1


(10.6)


37.4

Net income attributable to non-controlling interest

0.2


0.3


0.6


2.1

NET (LOSS)/INCOME APPLICABLE TO GAIN
CAPITAL HOLDINGS, INC.

$

(3.7)


$

20.8


$

(11.2)


$

35.3

(Loss)/earnings per common share:







Basic

$

(0.08)


$

0.42


$

(0.20)


$

0.67

Diluted

$

(0.08)


$

0.42


$

(0.20)


$

0.67

Weighted average common shares outstanding used
in computing (loss)/earnings per common share:







Basic

45,090,984


48,535,293


46,740,097


48,588,917

Diluted

45,090,984


48,763,072


46,740,097


48,785,674









Note:  Dollars in millions, except share, per share data and where noted otherwise. Columns may not add due to rounding.

 

 

Condensed Consolidated Balance Sheets

(unaudited)






December 31,


December 31,


2017


2016

ASSETS:



Cash and cash equivalents

$

209.7


$

234.8

Cash and securities held for customers

978.8


945.5

Receivables from brokers

78.5


61.1

Property and equipment, net of accumulated depreciation

40.7


36.5

Intangible assets, net of accumulated amortization

62.0


67.4

Goodwill

33.0


32.1

Other assets

45.9


52.8

          Total assets

$

1,448.6


$

1,430.1

LIABILITIES AND SHAREHOLDERS' EQUITY:



Payables to customers

$

978.8


$

945.5

Payables to brokers

2.8


Accrued compensation and benefits

10.1


13.6

Accrued expenses and other liabilities

33.9


41.5

Income tax payable

0.6


4.0

Convertible senior notes

132.2


124.8

          Total liabilities

$

1,158.5


$

1,129.3

Redeemable non-controlling interests

$

4.4


$

6.6

Shareholders' equity

285.7


294.2

          Total liabilities and shareholders' equity

$

1,448.6


$

1,430.1







Note:  Dollars in millions, except where noted otherwise. Columns may not add due to rounding.

Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted EPS

Adjusted net income/(loss) is a non-GAAP financial measure and represents our net income/(loss) excluding restructuring, acquisition and integration related expenses, adjustment to fair value of contingent consideration and other non-recurring items. This non-GAAP financial measure has certain limitations, including that it does not have a standardized meaning and, therefore, our definition may be different from similar non-GAAP financial measures used by other companies and/or analysts. Thus, it may be more difficult to compare our non-GAAP financial performance to that of other companies. We believe our reporting of adjusted net income/(loss) assists investors in evaluating our operating performance. However, because adjusted net income/(loss) is not a measure of financial performance calculated in accordance with GAAP, this measure should be considered in addition to, but not as a substitute for, other measures of our financial performance reported in accordance with GAAP, such as net income/(loss).

Net Income/(Loss) to Adjusted Net Income/(Loss) and Adjusted EPS

(unaudited)
















Three Months Ended


Twelve Months Ended


December 31,


December 31,


2017


2016


2017


2016

Net (loss)/income applicable to GAIN Capital Holdings Inc.

$

(3.7)


$

20.8


$

(11.2)


$

35.3

Income tax (benefit)/expense

(3.4)


5.6


(6.9)


9.8

Equity in net loss of affiliate

0.2



0.3


0.1

Non-controlling interest

0.2


0.3


0.6


2.1

Pre-tax (loss)/income

$

(6.7)


$

26.7


$

(17.1)


$

47.2

Adjustments (1)

1.4


0.3


6.4


13.0

Adjusted pre-tax (loss)/income

$

(5.2)


$

27.0


$

(10.7)


$

60.3

Normalized Income Tax

1.1


(5.9)


2.2


(13.3)

Equity in net loss of affiliate

(0.2)



(0.3)


(0.1)

Non-controlling interest

(0.2)


(0.3)


(0.6)


(2.1)

Adjusted net (loss)/income

$

(4.5)


$

20.8


$

(9.4)


$

45.0









Adjusted (loss)/earnings per common share








Basic

$

(0.10)


$

0.43


$

(0.20)


$

0.93

Diluted

$

(0.10)


$

0.43


$

(0.20)


$

0.92









Weighted average common shares outstanding used in
computing adjusted (loss)/earnings per common share








Basic

45,090,984


48,535,293


46,740,097


48,588,917

Diluted

45,090,984


48,763,072


46,740,097


48,785,674









1 Other items include impairment of investment and other corporate expenses

Note:  Dollars in millions, except per share data and where noted otherwise. Columns may not add due to rounding.

Reconciliation of GAAP Net Income to Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA is a non-GAAP financial measure that represents our earnings/(loss) before interest, taxes, depreciation and amortization, purchased intangible amortization, restructuring, acquisition and integration-related expenses, legal settlement, and non-controlling interest. This non-GAAP financial measure has certain limitations, including that it does not have a standardized meaning and, therefore, our definition may be different from similar non-GAAP financial measures used by other companies and/or analysts. Thus, it may be more difficult to compare our non-GAAP financial performance to that of other companies. We believe our reporting of adjusted EBITDA assists investors in evaluating our operating performance. However, because adjusted EBITDA is not a measure of financial performance calculated in accordance with GAAP, this measure should be considered in addition to, but not as a substitute for, other measures of our financial performance reported in accordance with GAAP, such as net income/(loss).

Reconciliation of GAAP Net Income/(Loss) to Adjusted EBITDA and Adjusted EBITDA Margin

(unaudited)


















Three Months Ended


Twelve Months Ended


December 31,


December 31,


2017


2016


2017


2016

Net revenue

$

69.7



$

115.8



$

308.6



$

411.8


Net (loss)/income applicable to GAIN Capital Holdings Inc.

(3.7)



20.8



(11.2)



35.3


Net (loss)/income margin %

(5)

%


18

%


(4)

%


9

%









Net (loss)/income

$

(3.7)



$

20.8



$

(11.2)



$

35.3


Depreciation and amortization

4.9



3.7



17.9



13.9


Purchased intangible amortization

4.1



3.6



16.1



15.0


Interest expense on long term borrowings

3.5



2.6



11.8



10.4


Income tax (benefit)/expense

(3.4)



5.6



(6.9)



9.8


Legal settlement

0.0



0.0



0.0



9.2


Restructuring expenses

0.0



0.0



0.0



1.0


Integration expenses

0.0



0.3



0.0



2.8


Impairment of investment

0.6



0.0



0.6



0.0


Equity in net loss of affiliate

0.2



0.0



0.3



0.1


Net income attributable to non-controlling interest

0.2



0.3



0.6



2.1


Loss on extinguishment of debt

0.0



0.0



4.9



0.0


Other corporate expenses

0.8



0.0



0.8



0.0


Adjusted EBITDA

$

7.3



$

36.9



$

35.1



$

99.6


Adjusted EBITDA Margin(1)

10

%


32

%


11

%


24

%













Note:  Dollars in millions, except where noted otherwise. Columns may not add due to rounding.

1Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net revenue.


Segment Information:

ASC 280, Disclosures about Segments of an Enterprise and Related Information, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision making group, in deciding how to allocate resources and in assessing performance. Reportable segments are defined as an operating segment that either (a) exceeds 10% of revenue, or (b) reported profit or loss in absolute amount exceeds 10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments. The Company's operations relate to global trading services and solutions. Based on the Company's management strategies, and common production, marketing, development and client coverage teams, the Company has concluded that it operates in three operating segments: Retail Segment, Institutional Segment and Futures Segment.

Retail





Three Months Ended
December 31,


Twelve Months Ended
December 31,


2017


2016


2017


2016

Trading Revenue

$

50.9



$

96.2



$

231.1



$

330.7


Other Retail Revenue

1.9



1.3



6.3



5.6


Total Revenue

52.8



97.5



237.4



336.3










Employee Comp & Ben

14.0



14.4



60.9



62.4


Marketing

7.5



9.9



29.9



27.7


Referral Fees

7.8



13.5



39.7



55.1


Other Operating Expense

14.9



18.3



61.7



75.5


Segment Profit

$

8.6



$

41.4



$

45.2



$

115.7


 Segment Profit Margin %

16

%


42

%


19

%


34

%

































Institutional





Three Months Ended
December 31,


Twelve Months Ended
December 31,


2017


2016


2017


2016

ECN

$

5.3



$

5.7



$

23.0



$

20.6


Swap Dealer

1.7



3.0



7.9



9.6


Other Revenue

0.2



0.0



0.2



0.0


Total Revenue

7.1



8.7



31.2



30.2










Employee Comp & Ben

2.8



4.3



13.9



14.5


Marketing





0.1




Other Operating Expense

3.0



3.0



12.3



10.4


Segment Profit

$

1.2



$

1.4



$

4.9



$

5.4


 Segment Profit Margin %

17

%


16

%


16

%


18

%













Note:  Dollars in millions, except where noted otherwise. Columns may not add due to rounding.

































Futures





Three Months Ended
December 31,


Twelve Months Ended
December 31,


2017


2016


2017


2016

Revenue

$

9.5



$

10.5



$

40.3



$

48.1










Employee Comp & Ben

2.0



2.6



9.4



12.0


Marketing

0.2



0.3



0.8



1.0


Referral Fees

3.2



3.8



14.0



15.7


Other Operating Expense

3.1



3.3



12.9



14.8


Segment Profit

$

1.1



$

0.6



$

3.2



$

4.7


Segment Profit Margin %

11

%


6

%


8

%


10

%

































Corporate and Other





Three Months Ended
December 31,


Twelve Months Ended
December 31,


2017


2016


2017


2016

Revenue

$

0.2



$

(1.0)



$

(0.2)



$

(2.8)










Employee Comp & Ben

2.0



3.8



11.1



13.1


Marketing

0.3



0.0



0.4



0.0


Other Operating Expense

1.5



1.6



6.5



10.2


Loss

$

(3.6)



$

(6.4)



$

(18.1)



$

(26.1)


















Note:  Dollars in millions, except where noted otherwise. Columns may not add due to rounding.

 

 

Reconciliation of Segment Profit to Income Before Income Tax Expense






Three Months Ended
December 31,


Twelve Months Ended
December 31,


2017


2016


2017


2016

Retail segment

$

8.6



$

41.4



$

45.2



$

115.7


Institutional segment

1.2



1.4



4.9



5.4


Futures segment

1.1



0.6



3.2



4.7


Corporate and other

(3.6)



(6.4)



(18.1)



(26.1)


Segment Profit

$

7.3



$

36.9



$

35.1



$

99.6










Depreciation and amortization

4.9



3.7



17.9



13.9


Purchased intangible amortization

4.1



3.6



16.1



15.0


Restructuring expenses







1.0


Integration expenses



0.3





2.8


Legal settlement







9.2


Impairment of investment

$

0.6



$



$

0.6



$


Other corporate expenses

$

0.8



$



$

0.8



$


Operating (loss)/profit

$

(3.2)



$

29.4



$

(0.3)



$

57.7


Interest expense on long term borrowings

3.5



2.6



11.8



10.4


Loss on extinguishment of debt

$



$



$

4.9



$


(Loss)/income before income tax (benefit)/expense

$

(6.7)



$

26.7



$

(17.1)



$

47.2


















Note:  Dollars in millions, except where noted otherwise. Columns may not add due to rounding.


Forward-Looking Statements:
In addition to historical information, this earnings release contains "forward-looking" statements that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors are noted throughout GAIN Capital's annual report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on March 15, 2017, and include, but are not limited to, the actions of both current and potential new competitors, fluctuations in market trading volumes, financial market volatility, evolving industry regulations, errors or malfunctions in GAIN Capital's systems or technology, rapid changes in technology, effects of inflation, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate assets and companies we have acquired, our ability to effectively compete, changes in tax policy or accounting rules, fluctuations in foreign exchange rates and commodity prices, adverse changes or volatility in interest rates, as well as general economic, business, credit and financial market conditions, internationally or nationally, and our ability to continue paying a quarterly dividend in light of future financial performance and financing needs. The forward-looking statements included herein represent GAIN Capital's views as of the date of this release. GAIN Capital undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/gain-capital-reports-fourth-quarter-and-full-year-2017-results-300610972.html

SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact - Lauren Tarola, Edelman for GAIN Capital, +1 908.731.0737, ir@gaincapital.com; Media Contact - Nicole Briguet, Edelman for GAIN Capital, +1 212.704.8164, pr@gaincapital.com

GAIN Capital Continues Global Rollout of Bitcoin Trading

Bitcoin offering now available in Australia and Singapore following launch in U.K./Europe and Bitcoin futures in U.S.

Company to further expand cryptocurrency offerings in Q1

BEDMINSTER, N.J. and LONDON, Jan. 8, 2018 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP), a global leader in online trading, today announced the launch of Bitcoin trading in Australia and Singapore on the Company's City Index branded service, which is regulated by ASIC and MAS, respectively.

GAIN Capital's Bitcoin offering enables its customers to trade the value of the cryptocurrency through a highly-regulated, trusted broker, without the need to set up a digital wallet to take delivery of and store tokens. GAIN currently offers Bitcoin trading either as an over-the-counter (OTC) derivative or as a future, both of which allow traders to speculate on Bitcoin price movements without owning the underlying asset. Where permitted by regulation, customers may trade Bitcoin on margin.

"For those who want exposure to Bitcoin, trading the cryptocurrency as a derivative with a regulated brokerage firm offers several key advantages over a Bitcoin exchange," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "We view these benefits as: competitive fees and margin rates, the ability to go long or short, enhanced price discovery via aggregated liquidity from multiple Bitcoin market makers and exchanges, and fast trade execution."

The launch in Australia and Singapore follows the launch of Bitcoin trading to customers in the U.K. and Europe last month across the Company's City Index and FOREX.com brands. The Company's Bitcoin futures offering in the U.S. is available through its Futures Online and Daniels Trading brands.

GAIN plans to complete the global roll out of Bitcoin trading in the coming months, introducing Bitcoin trading to its customers in other markets in Asia and the United States. The Company also plans to expand its cryptocurrency offering to include Ethereum and other digital currencies in early 2018.

About GAIN
GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities. GAIN Capital 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.

View original content with multimedia:http://www.prnewswire.com/news-releases/gain-capital-continues-global-rollout-of-bitcoin-trading-300578755.html

SOURCE GAIN Capital Holdings, Inc.

U.S., Nicole Briguet, Edelman for GAIN Capital, +1 212-704-8164, pr@gaincapital.com; U.K., Alex Nekrassov, New Century Media, + 44 (0) 20 7930 803, pr@gaincapital.com

GAIN Capital Launches AI-Enhanced Trading App, GetGo

New mobile app gives users access to financial market trading via smart signals and easy-to-use interface

BEDMINSTER, N.J. and LONDON, Dec. 13, 2017 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP), a global provider of online trading services, today launched GetGo, an innovative financial trading app. The new mobile-only service uses a smart AI-enhanced algorithm to spot statistical trends in financial markets and provide users with compelling trading signals based on historical data.

"GetGo is an intelligent and engaging way to trade financial markets, especially for those who are interested in taking advantage of shorter-term trading opportunities but are deterred by the apparent complexity and the time commitment associated with traditional trading," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "We’re excited about the significant opportunity this product offers in bringing AI-enhanced trading strategies to new audiences."

GetGo’s proprietary algorithm is the result of several years’ work and tens of millions of back tests by a team of quantitative finance experts. The program uses artificial intelligence and machine learning to analyze millions of data points every hour to signal trading opportunities with strong historic track records.

GetGo will initially cover 40 markets, including FX, indices and gold. When the algorithm spots a pattern it recognizes it sends the user a signal through the app, which they can review, evaluate the potential upside and maximum downside for the trade, and decide whether to execute the trade. Users can also configure the number of signals notifications they receive based on various parameters, including signal strength, opportunity rating of the trade, and time of day.

Lex Webster, SVP Strategy, GAIN Capital added: "With GetGo we wanted to create a product that would generate high-quality trading signals based on data and statistics, while stripping back the complexities of traditional platform trading via a simplified mobile user experience. GetGo doesn’t just identify dozens of new trade opportunities each day, it applies trade management rules to offer a potential upside greater than the maximum downside on each trade. These features include automatic position closure when the trade signal expires and free guaranteed stop losses on every trade. Users also have flexibility to either watch their trades unfold in real time, or set and forget with confidence that GetGo will manage their open positions."

Transparency of performance is a key part of the GetGo offering. The app provides account level performance data as well as overall win/loss rates and best and worst signals. GetGo is now available in the United Kingdom on the Apple App Store and will be available in the Google Play Store in the coming months. The Company has plans to rollout GetGo in additional markets throughout 2018.

Want to tweet about this?
GAIN Capital launches AI-enhanced trading app @GetGoTrade that strips out many of the complexities usually associated with financial markets #trading #fintech #signals http://www.getgo.trade/

About GAIN
GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities. GAIN Capital 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.

About GetGo
GetGo is a unique algorithm-based trading app that delivers a totally new way to trade. It’s the latest offering from GAIN Capital, a global leader in online trading.

GetGo’s algorithms analyse millions of data points every hour to produce trade signals on 40 markets including FX, indices and gold. When GetGo spots a pattern that has historically led to a consistent outcome, it pings the user a signal they can trade in a couple of taps. The trade signals are packaged up with smart risk management rules to deliver a trading experience with protected downside through the use of guaranteed stop losses on every trade.

The GetGo app is designed to be simple and fun to use, and allows new traders to get started with as little as £10. For further information or to register for a GetGo account visit www.getgo.trade

View original content with multimedia:https://www.prnewswire.com/news-releases/gain-capital-launches-ai-enhanced-trading-app-getgo-300570665.html

SOURCE GAIN Capital Holdings, Inc.

U.S., Nicole Briguet, Edelman for GAIN Capital, +1 212-704-8164, pr@gaincapital.com; U.K., Alex Nekrassov, New Century Media, + 44 (0) 20 7930 803, pr@gaincapital.com

GAIN Capital Launches Bitcoin Trading on City Index

BEDMINSTER, N.J. and LONDON, Dec. 1, 2017 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP) ("GAIN" or "the Company"), today announced the launch of Bitcoin trading on City Index, its FCA regulated service in the U.K.

GAIN Capital Holdings, Inc. Logo. (PRNewsFoto/GAIN Capital Holdings, Inc.)

"Cryptocurrencies are one of the most exciting trends shaping today's markets. We are pleased to provide our clients with the ability to trade Bitcoin through an established, regulated firm, without the need to set up a digital wallet or execute through a Bitcoin exchange," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "We are excited to expand our offering for City Index customers, who can now trade cryptocurrencies along with more than 12,000 other markets, including FX, indices, commodities, equities and rates."

City Index U.K. customers can trade Bitcoin either as a spread bet or as a contract for difference (CFD), with access to competitive spreads, margin and financing, as well as the ability to take both long and short positions. GAIN Capital has established liquidity relationships with multiple Bitcoin exchanges and uses these leading exchanges to produce a volume-weighted average price that is reliable and transparent.

The Company plans to roll out Bitcoin trading to its City Index customers globally over the coming quarter, as well as expand the offering to its FOREX.com customers in select markets before the end of the year.

About GAIN
GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities. GAIN Capital 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.

View original content with multimedia:http://www.prnewswire.com/news-releases/gain-capital-launches-bitcoin-trading-on-city-index-300565054.html

SOURCE GAIN Capital Holdings, Inc.

U.S., Nicole Briguet, Edelman for GAIN Capital, +1 212-704-8164, pr@gaincapital.com; U.K., Alex Nekrassov, New Century Media, + 44 (0) 20 7930 803, pr@gaincapital.com