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GAIN Capital Announces Monthly Metrics for May 2019

BEDMINSTER, N.J., June 5, 2019 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP) ("GAIN" or "the Company") today reported certain operating metrics for the month of May 2019.


May-19

Apr-19

May-18

Sequential
Change

Year-over-
year change

Retail Segment






OTC Trading Volume(1)

$

180.3


$

146.3


$

243.3


23.2%


(25.9)%


OTC Average Daily Volume

$

7.8


$

6.7


$

11.1


16.4%


(29.7)%


12 Month Trailing Active OTC Accounts(2)

119,020


120,515


131,036


(1.2)%


(9.2)%


3 Month Trailing Active OTC Accounts(2)

69,858


68,908


77,603


1.4%


(10.0)%








Futures Segment






Number of Futures Contracts

796,899


522,132


694,481


52.6%


14.7%


Futures Average Daily Contracts

36,223


24,863


31,567


45.7%


14.7%


12 Month Trailing Active Futures Accounts(2)

7,404


7,307


7,929


1.3%


(6.6)%








All volume figures reported in billions.






1 US dollar equivalent of notional amounts traded.




2 Accounts that executed a transaction during the relevant period.




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

 

Historical metrics and financial information can be found on the Company's investor relations website http://ir.gaincapital.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of GAIN's financial performance. GAIN undertakes no obligation to publicly update or review previously reported operating data.

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.

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/gain-capital-announces-monthly-metrics-for-may-2019-300862260.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 Participate in the Sandler O'Neill 2019 Global Exchange and Brokerage Conference

BEDMINSTER, N.J., May 29, 2019 /PRNewswire/ -- GAIN Capital Holdings, Inc. ("the Company") (NYSE: GCAP), a leading global provider of online trading services, today announced that Glenn Stevens, CEO, is scheduled to speak at the Sandler O'Neill Global Exchange and Brokerage Conference at the Parker New York Hotel in New York City on Wednesday, June 5, 2019 at 9:00 AM ET.  The company will also hold one-on-one and small group meetings with investors at the conference. Interested investors should contact their Sandler O'Neill representative.

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

A live audio webcast of the presentation will be available on the Investor Relations section of the GAIN Capital website (http://ir.gaincapital.com), with a replay of the webcast accessible for 90 days following the presentation.

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.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/gain-capital-to-participate-in-the-sandler-oneill-2019-global-exchange-and-brokerage-conference-300857839.html

SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact: Lauren Tarola Scott, 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 Announces Monthly Metrics for April 2019

BEDMINSTER, N.J., May 9, 2019 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP) ("GAIN" or "the Company") today reported certain operating metrics for the month of April 2019.

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


Apr-19

Mar-19

Apr-18

Sequential
Change

Year-over-
year change

Retail Segment






OTC Trading Volume(1)

$

146.3


$

168.9


$

222.4


(13.4)

%

(34.2)

%

OTC Average Daily Volume

$

6.7


$

8.0


$

10.6


(16.3)

%

(36.8)

%

12 Month Trailing Active OTC Accounts(2)

120,515


120,641


130,808


(0.1)

%

(7.9)

%

3 Month Trailing Active OTC Accounts(2)

68,908


70,051


75,680


(1.6)

%

(8.9)

%







Futures Segment






Number of Futures Contracts

522,132


622,194


753,943


(16.1)

%

(30.7)

%

Futures Average Daily Contracts

24,863


29,628


35,902


(16.1)

%

(30.7)

%

12 Month Trailing Active Futures Accounts(2)

7,307


7,387


7,955


(1.1)

%

(8.1)

%

____________________

All volume figures reported in billions.

1 US dollar equivalent of notional amounts traded.

2 Accounts that executed a transaction during the relevant period.

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

Historical metrics and financial information can be found on the Company's investor relations website http://ir.gaincapital.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of GAIN's financial performance. GAIN undertakes no obligation to publicly update or review previously reported operating data.

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.

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/gain-capital-announces-monthly-metrics-for-april-2019-300847490.html

SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact: Lauren Tarola Scott, 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 2019 Results

BEDMINSTER, N.J., April 25, 2019 /PRNewswire/ -- GAIN Capital Holdings, Inc. ("GAIN") (NYSE: GCAP), a leading global provider of online trading services, announced financial results for the first quarter of 2019.

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

Key Financial Results for the First Quarter 2019 (all amounts reflect continuing operations)

  • GAAP net loss of $28.4 million, or a loss of $0.76 per share
  • GAAP net revenue of $38.4 million, down 61% year-over-year
  • Adjusted net loss of $28.4 million, or a loss of $0.76 per share
  • Adjusted EBITDA of $(23.5) million

Operating Highlights

  • New direct accounts increased 38% year-over-year and 27% quarter-over-quarter
  • RPM impacted by extremely tight range-bound markets and market volatility well below historical averages

A summary of GAIN's financial highlights is included in the chart below (all amounts are from continuing operations).


Three Months Ended March 31,


2019


2018

Net (Loss)/Income

$

(28.4)



$

11.9


Adjusted Net (Loss)/Income (1)

$

(28.4)



$

11.6






Net Revenue

$

38.4



$

98.4


Operating Expenses(2)

(61.9)



(66.6)


Adjusted EBITDA(1)

$

(23.5)



$

31.8






Diluted GAAP EPS

$

(0.76)



$

0.25


Adjusted EPS(1)

$

(0.76)



$

0.26


___________________________________

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.

2Operating Expenses excludes Depreciation and Amortization, Purchased Intangible Amortization, and certain one-off costs

"Despite unfavorable market conditions impacting our volume and RPM for the quarter, including the CVIX reaching a five year low with Eurodollar trading in its narrowest quarterly range on record, growth initiatives are beginning to bear fruit," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "Our increased marketing investment delivered robust growth in new direct accounts, which were up 38%, even amid the challenging macro environment."

"We remain focused on our long-term goals and plan to invest in new client acquisition and retention, leveraging our powerful brand assets, innovating the trading experience and increasing our focus on our top clients. We are confident that we are well positioned to benefit upon the return of more normal market conditions."

Quarterly Operating Metrics


Q1 19


Q1 18


Year-over-year Change

Retail Segment






OTC Trading Volume (1) (2)

$

487.3



$

795.4



(38.7)

%

OTC Average Daily Volume

$

7.7



$

12.4



(37.9)

%

12 Month Trailing Active OTC Accounts (3)

120,641



131,764



(8.4)

%

3 Month Trailing Active OTC Accounts (3)

70,051



78,681



(11.0)

%







Futures Segment






Number of Futures Contracts

1,755,873



2,160,231



(18.7)

%

Futures Average Daily Contracts

28,785



35,414



(18.7)

%

12 Month Trailing Active Futures Accounts (3)

7,387



7,959



(7.2)

%

_______________________________________

All volume figures reported in billions.

1 US dollar equivalent of notional amounts traded.

2 For the quarter, indirect volume represented 22% of total retail OTC trading volume.

3 Accounts that executed a transaction during the relevant period.

 

Condensed Consolidated Statements of Operations


(unaudited)


Three Months Ended


March 31,


2019


2018

REVENUE:




Retail revenue

$

24.3



$

84.1


Futures revenue

8.0



10.6


Other revenue

2.5



1.9


Total non-interest revenue

34.8



96.7


Interest revenue

4.3



2.1


Interest expense

0.6



0.4


Total net interest revenue

3.7



1.7


Net revenue

$

38.4



$

98.4


EXPENSES:




Employee compensation and benefits

$

20.3



$

24.3


Selling and marketing

10.2



6.0


Referral fees

7.1



11.4


Trading expenses

5.5



5.8


General and administrative

12.8



12.5


Depreciation and amortization

4.3



5.4


Purchased intangible amortization

3.3



3.7


Communications and technology

5.7



5.4


Bad debt provision

0.4



1.1


Impairment of investment

0.0



(0.1)


Total operating expense

$

69.5



$

75.4


OPERATING (LOSS)/PROFIT

(31.1)



22.9


Interest expense on long term borrowings

3.3



3.3


(LOSS)/INCOME BEFORE INCOME TAX

(34.4)



19.6


Income tax (benefit)/expense

(6.1)



7.7


Net (loss)/income from continuing operations

(28.4)



11.9


Income from discontinued operations

0.0



4.3


NET (LOSS)/INCOME

(28.4)



16.3


Less (loss)/income attributable to non-controlling interest

0.0



0.2


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

$

(28.4)



$

16.1


 _________________________

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

 

 

Condensed Consolidated Balance Sheet

(unaudited)



March 31,


December 31,


2019


2018

ASSETS:




Cash and cash equivalents

$

218.0



$

278.9


Cash and securities held for customers

869.7



842.5


Receivables from brokers

98.7



84.3


Property and equipment, net

29.9



30.6


Intangible assets, net

29.4



32.2


Goodwill

28.0



27.8


Other assets

50.5



36.4


          Total assets

$

1,324.3



$

1,332.5


LIABILITIES AND SHAREHOLDERS' EQUITY:




Payables to customers

$

869.7



$

842.5


Payables to brokers

0.0



1.6


Accrued compensation & benefits

3.3



11.2


Accrued expenses and other liabilities

46.9



41.6


Income tax payable

1.2



5.8


Convertible senior notes

133.7



132.1


          Total liabilities

$

1,054.8



$

1,034.8


Shareholders' equity

269.5



297.8


          Total liabilities and shareholders' equity

$

1,324.3



$

1,332.5


_________________________

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

 

 

Income Statement of Discontinued Operations



Three Months Ended March 31,


2019


2018

REVENUE:




Institutional revenue

$

0.0



$

8.5


Total non-interest revenue

0.0



8.5


Net revenue

$

0.0



$

8.5


EXPENSES:




Employee compensation and benefits

$

0.0



$

3.4


Trading expenses

0.0



2.7


Other expenses

0.0



2.1


Total operating expense

0.0



8.1


OPERATING PROFIT

0.0



0.4


INCOME BEFORE INCOME TAX BENEFIT

0.0



0.4


Income tax benefit

0.0



(4.0)


NET INCOME FROM DISCONTINUED OPERATIONS

$

0.0



$

4.3


_________________________

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

 

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

Adjusted net (loss)/income is a non-GAAP financial measure and represents our net (loss)/income excluding certain one-time costs and benefits. Adjusted EPS is calculated using adjusted net (loss)/income. These non-GAAP financial measures have certain limitations, including not having standardized meanings and, therefore, our definitions 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 of other companies. We believe our reporting of these measures assists investors in evaluating our operating performance. However, because they are not a measure of financial performance or income tax expense calculated in accordance with GAAP, such measures should be considered in addition to, not as a substitute for, other measures reported in accordance with GAAP.

 

 

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


(unaudited)


Three Months Ended


March 31,


2019


2018

Net (loss)/income from continuing operations

$

(28.4)



$

11.9


Income tax (benefit)/expense

(6.1)



7.7


Pre-tax (loss)/income

$

(34.4)



$

19.6


Adjustments:




Impairment of investment

0.0



(0.1)


Adjusted pre-tax (loss)/income

$

(34.4)



$

19.5


 Adjusted income tax benefit/(expense)1

6.1



(7.7)


 Income attributable to non-controlling interest

0.0



(0.2)


Adjusted net (loss)/income

$

(28.4)



$

11.6






Adjusted (loss)/earnings per common share




Basic

$

(0.76)



$

0.26


Diluted

$

(0.76)



$

0.26






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




Basic

37,525,073



45,017,716


Diluted

37,525,073



45,523,766


_____________________________

1Adjusted income tax (expense)/benefit reflects the Company's GAAP income tax (expense)/benefit adjusted for (a) taxable or deductible items affecting income tax (expense)/benefit that are unrelated to pre-tax income in the period and (b) the tax effect of other taxable adjustments made to the Company's pre-tax income. The tax effect of the adjustments to pre-tax income are calculated using the tax rate applicable for the jurisdiction within which each of the adjustments arose. The Company believes that this non-GAAP financial measure provides investors with a more consistent and stable basis for determining the impact of taxes on the Company's core continuing operations


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

 

 

 

Adjusted Income Tax Reconciliation


(unaudited)



Three Months Ended March 31,


2019


2018





GAAP pre-tax (loss)/income

$

(34.4)



$

19.6


GAAP Tax Rate

17.6

%


39.2

%

Initial adjusted tax benefit/(expense)(1)

6.1



(7.7)


Adjusted tax benefit/(expense)

$

6.1



$

(7.7)






Adjusted pre-tax (loss)/income

$

(34.4)



$

19.5


Adjusted tax rate(2)

17.6

%


39.5

%


1Initial adjusted tax benefit/(expense) calculated as GAAP pre-tax income multiplied by the YTD GAAP Tax Rate

2Adjusted tax rate calculated as Adjusted tax benefit/(expense) divided by Adjusted pre tax (loss)/income

 

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

Adjusted EBITDA is a non-GAAP financial measure that represents our (loss)/earnings before interest, taxes, depreciation and amortization, purchased intangible amortization, convertible note interest, non-controlling interest, and certain one-time costs and benefits. This non-GAAP financial measure has certain limitations, including not having 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 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, not as a substitute for, other measures of our financial performance reported in accordance with GAAP, such as net (loss)/income.

 

 

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


(unaudited)



Three Months Ended


March 31,


2019


2018

Net revenue

$

38.4



$

98.4


Net (loss)/income from continuing operations

(28.4)



11.9


Net (loss)/income margin %

(74)

%


12

%





Net (loss)/income from continuing operations

$

(28.4)



$

11.9


Depreciation and amortization

4.3



5.4


Purchased intangible amortization

3.3



3.7


Interest expense on long term borrowings

3.3



3.3


Income tax (benefit)/expense

(6.1)



7.7


Impairment of investment

0.0



(0.1)


Adjusted EBITDA

$

(23.5)



$

31.8


Adjusted EBITDA Margin(1)

(61)

%


32

%

_________________________

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

1 Adjusted 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. Based on the Company's management strategies, and common production, marketing, development and client coverage teams, the Company has concluded that it operates in two operating segments: Retail and Futures.

 

Retail



Three Months Ended
March 31,


2019


2018

Trading Revenue

$

24.3



$

84.1


Other Retail Revenue

3.9



1.6


Total Revenue

28.2



85.7






 Employee Compensation & Benefits

13.0



15.4


Selling and Marketing

10.0



5.7


Referral Fees

4.4



7.7


Other Operating Expenses

18.2



17.7


Segment (Loss)/Profit

$

(17.4)



$

39.2


 Segment (Loss)/Profit Margin %

(62)

%


46

%

_________________________

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

 

 

Futures



Three Months Ended
March 31,


2019


2018

Trading Revenue

$

8.0



$

10.6


Other Futures Revenue

1.4



0.8


Total Revenue

9.4



11.5






Employee Compensation & Benefits

2.2



2.5


Selling and Marketing

0.3



0.2


Referral Fees

2.7



3.7


Other Operating Expenses

3.2



3.8


Segment Profit

$

1.1



$

1.2


Segment Profit Margin %

11

%


10

%

____________________________

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

 

 

Corporate and Other



Three Months Ended
March 31,


2019


2018

Revenue

$

0.9



$

1.2






Employee Compensation & Benefits

5.1



6.4


Selling and Marketing

0.0



0.1


Other Operating Expenses

2.9



3.3


Loss

$

(7.2)



$

(8.5)


____________________

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

 

 

Reconciliation of Segment (Loss)/Profit to (Loss)/Income Before Income Tax (Benefit)/Expense



Three Months Ended
March 31,


2019


2018

Retail segment

$

(17.4)



$

39.2


Futures segment

1.1



1.2


Corporate and other

(7.2)



(8.5)


Segment (Loss)/Profit

(23.5)



31.8






Depreciation and amortization

4.3



5.4


Purchased intangible amortization

3.3



3.7


Impairment of investment

0.0



(0.1)


Operating (loss)/profit

$

(31.1)



$

22.9


Interest expense on long term borrowings

3.3



3.3


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

$

(34.4)



$

19.6


____________________

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, 2018, as filed with the Securities and Exchange Commission on March 11, 2019, 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 to download multimedia:http://www.prnewswire.com/news-releases/gain-capital-reports-first-quarter-2019-results-300838646.html

SOURCE GAIN Capital Holdings, Inc.

Investor Relations Contact, Lauren Tarola Scott, 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 Announces Monthly Metrics for March 2019

BEDMINSTER, N.J., April 8, 2019 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP) ("GAIN" or "the Company") today reported certain operating metrics for the month of March 2019.


Mar-19

Feb-19

Mar-18

Sequential
Change

Year-over-
year change

Retail Segment






OTC Trading Volume(1)

$

168.9


$

134.4


$

262.8


25.7

%

(35.7)

%

OTC Average Daily Volume

$

8.0


$

6.7


$

11.9


19.4

%

(32.8)

%

12 Month Trailing Active OTC Accounts(2)

120,641


121,787


131,764


(0.9)

%

(8.4)

%

3 Month Trailing Active OTC Accounts(2)

70,051


70,071


78,681


--

%

(11.0)

%







Futures Segment






Number of Futures Contracts

622,194


542,556


771,749


14.7

%

(19.4)

%

Futures Average Daily Contracts

29,628


28,556


36,750


3.8

%

(19.4)

%

12 Month Trailing Active Futures Accounts(2)

7,387


7,437


7,959


(0.7)

%

(7.2)

%








_________________________________________

All volume figures reported in billions.

1 US dollar equivalent of notional amounts traded.

2 Accounts that executed a transaction during the relevant period.

<

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

Management Commentary

"The first quarter saw unusually tight range-bound markets with CVIX at a 5 year low and close to its 2007 low, impacting client volumes and resulting in retail revenue per million (RPM) of approximately $51 for the quarter. On a trailing 12-month basis, however, RPM remains in line with historical averages, at $104," said Glenn Stevens, Chief Executive Officer. "Despite the challenging market conditions, we saw positive traction in several key operating metrics, including stable active accounts and a record number of new accounts in the first quarter.  This represents the third consecutive quarter of new account growth, against an approximately 20% lower marketing spend than the prior quarter," continued Mr. Stevens.  "Looking ahead, we continue to have confidence in our long-term outlook and, with an expanding client base and diversified product offering and geographic footprint, believe we are well positioned upon the return of more normalized market conditions."

This operating data is preliminary and subject to revision and should not be taken as an indication of GAIN's financial performance. GAIN undertakes no obligation to publicly update or review previously reported operating data.

Additional Tax Rate and Share Count Assumption Update

The Company has updated its tax rate assumptions and expects its tax rate for full year 2019 to be approximately 17%-19% and estimates its weighted-average common shares outstanding for the first quarter 2019 to be approximately 37.5 million shares.

Historical metrics and financial information can be found on the Company's investor relations website http://ir.gaincapital.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of GAIN's financial performance. GAIN undertakes no obligation to publicly update or review previously reported operating data.

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.

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/gain-capital-announces-monthly-metrics-for-march-2019-300825832.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 Announces Monthly Metrics for February 2019

BEDMINSTER, N.J., March 11, 2019 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP) ("GAIN" or "the Company") today reported certain operating metrics for the month of February 2019.


Feb-19

Jan-19

Feb-18

Sequential
Change

Year-over-
year change

Retail Segment






OTC Trading Volume(1)

$

134.4


$

184.0


$

283.5


(27.0)%

(52.6)%

OTC Average Daily Volume

$

6.7


$

8.4


$

14.2


(20.2)%

(52.8)%

12 Month Trailing Active OTC Accounts(2)

121,787


122,581


133,545


(0.6)%

(8.8)%

3 Month Trailing Active OTC Accounts(2)

70,071


70,150


80,681


(0.1)%

(13.2)%







Futures Segment






Number of Futures Contracts

542,556


591,123


714,322


(8.2)%

(24.0)%

Futures Average Daily Contracts

28,556


28,149


37,596


1.4%

(24.0)%

12 Month Trailing Active Futures Accounts(2)

7,437


7,673


7,972


(3.1)%

(6.7)%







_________________________________________

All volume figures reported in billions. 

1 US dollar equivalent of notional amounts traded.  

2 Accounts that executed a transaction during the relevant period. 

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

Management Commentary
"Market conditions in February were lackluster, with muted volatility in the major currency and equity markets as evidenced by the GVIX, GAIN's product-weighted measure of market volatility, which was down over 50% year-over-year and nearly 25% on a sequential basis," stated Glenn Stevens, GAIN Capital CEO. "Within this backdrop, we are encouraged by our trailing 3 month active customers for February as well as our continued success attracting new accounts, with over 22,000 new accounts opened in the first two months of 2019. We expect trading activity to rebound in the months ahead, upon the return of more interesting market conditions."

Historical metrics and financial information can be found on the Company's investor relations website http://ir.gaincapital.com.

This operating data is preliminary and subject to revision and should not be taken as an indication of GAIN's financial performance. GAIN undertakes no obligation to publicly update or review previously reported operating data.

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 to download multimedia:http://www.prnewswire.com/news-releases/gain-capital-announces-monthly-metrics-for-february-2019-300809731.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 Fourth Quarter and Full Year 2018 Results

BEDMINSTER, N.J., Feb. 28, 2019 /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 2018.

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

Key Full Year 2018 Financial Results (all amounts reflect continuing operations)

  • GAAP net income of $28.0 million, or $0.60 per share, yielding an 8% margin, compared to a net loss of $14.9 million, or $(0.29) per share
  • GAAP net revenue of $358.0 million, up 29% year-over-year
  • Adjusted net income of $29.1 million, or $0.66 per share, compared to a loss of $11.3 million, or $(0.24) per share in 2017
  • Adjusted EBITDA of $86.5 million, compared to $29.7 million in 2017, yielding a 24% adjusted EBITDA margin

Quarterly and Annual Operating Highlights

  • Fourth quarter new direct Retail accounts increased 12% year-over-year, with full year growing 16% over 2017
  • Fourth quarter Retail average daily volume (ADV) increased 10% year-over-year and 24% sequentially
  • Full year 2018 ADV improved 5% year-over-year
  • Futures segment margin almost doubled to 14% in full year 2018 as compared to 8% for full year 2017
  • In November 2018, GAIN completed a "modified Dutch auction" tender offer to purchase $50 million of its shares

Three Months Ended December 31,


Fiscal Year Ended December 31,


2018


2017


2018


2017

Net Income/(Loss)

$

(0.7)



$

(6.8)



$

28.0



$

(14.9)


Adjusted Net Income/(Loss)(1)

$

(4.6)



$

(4.8)



$

29.1



$

(11.3)










Net Revenue

$

79.9



$

62.7



$

358.0



$

278.2


Class Action Settlement

(5.4)



0.0



(5.4)



0.0


Operating Expenses

(69.3)



(56.8)



(266.1)



(248.5)


Adjusted EBITDA(1)

$

5.2



$

5.9



$

86.5



$

29.7










Diluted GAAP EPS

$

(0.02)



$

(0.16)



$

0.60



$

(0.29)


Adjusted EPS(1)

$

(0.11)



$

(0.11)



$

0.66



$

(0.24)


___________________________________

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.

 

"2018 was a solid year for GAIN Capital, with positive results in several key metrics.  We delivered year-over-year revenue growth of 29% to $358 million, net income of $28 million on adjusted EBITDA of $87 million.  New direct accounts increased 12% year-over-year, while client trading volumes increased 6% year-over-year," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "In addition, we returned more than $80 million to our investors during the year via buybacks, repurchases and dividends.

"Looking ahead, we are well positioned to drive robust business growth over the next several years.  We are embarking on a three-year strategic plan designed to power the next phase of GAIN's success, which involves leveraging our considerable brand assets, further increasing our investment in marketing and building a best in class client proposition tailored to the needs of experienced traders and retail investors.  We will deploy our strong balance sheet and profits to fund these strategic initiatives, while maintaining our focus on operational excellence and cost discipline, to deliver significant revenue growth and improved earnings over the next several years."

Quarterly Operating Metrics







Year-over-


Q4 18


Q4 17


year Change

Retail Segment






OTC Trading Volume (1) (2)

$

631.0



$

563.1



12.1

%

OTC Average Daily Volume

$

9.7



$

8.8



10.2

%

12 Month Trailing Active OTC Accounts (3)

123,171



132,262



(6.9)

%

3 Month Trailing Active OTC Accounts (3)

68,696



80,122



(14.3)

%







Futures Segment






Number of Futures Contracts

2,109,516



1,623,656



29.9

%

Futures Average Daily Contracts

32,961



25,772



27.9

%

12 Month Trailing Active Futures Accounts (3)

7,717



7,838



(1.5)

%

_______________________________________

All volume figures reported in billions.

1 US dollar equivalent of notional amounts traded.

2 For the quarter, indirect volume represented 24% 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 buybacks, the modified Dutch auction, and dividends which amounted to approximately $54.2 million.

For the full year 2018, excluding the modified Dutch auction, GAIN repurchased 1,839,060 shares of stock at an average price of $7.33.

Including the modified Dutch auction, during the full year GAIN repurchased 8,216,611 shares of stock at an average price of $7.73.

For the twelve months ended 2018, GAIN returned a total of $73.8 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 March 29, 2019 to shareholders of record as of the close of business on March 26, 2019.

2021 Long-Term Operating and Financial Targets
Through the Company's commitment to organic growth initiatives and delivering shareholder value, GAIN is introducing long-term financial targets for 2021. The following expectations assume average long-term RPM of $106.


FY 2018 Performance

FY 2021 Outlook

Operational

New Direct Accounts

87.6K

38% to 42% growth

Retail Volume

$2.6 trillion

30% to 35% growth

Financial

Revenue

$353 million

$420 to $460 million

Overhead Costs

$190 million

$190 to $200 million

EBITDA Margin

25%

30% to 35%

EPS

$0.66

$2.15 to $2.40

 

Conference Call
GAIN will host a conference call February 28, 2019 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 10128382#.

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,


2018


2017


2018


2017

REVENUE:








Retail revenue

$

61.1



$

50.9



$

300.2



$

231.1


Futures revenue

9.3



8.8



39.7



38.0


Other revenue

5.8



1.4



7.4



4.5


Total non-interest revenue

76.2



61.2



347.3



273.5


Interest revenue

4.3



1.9



12.5



5.6


Interest expense

0.6



0.3



1.9



0.9


Total net interest revenue

3.7



1.6



10.6



4.7


Net revenue

$

79.9



$

62.7



$

358.0



$

278.2


EXPENSES:








Employee compensation and benefits

$

19.4



$

18.3



$

89.1



$

82.7


Selling and marketing

13.5



8.0



36.5



31.1


Referral fees

10.0



11.0



40.0



53.7


Trading expenses

5.8



4.3



22.9



19.4


General and administrative

16.3



11.2



55.2



43.5


Depreciation and amortization

4.3



4.7



19.7



17.0


Purchased intangible amortization

3.4



3.6



14.2



14.0


Communications and technology

5.6



5.1



22.0



19.2


Bad debt provision

0.8



(0.3)



2.5



(0.2)


Restructuring expenses

0.7



0.0



0.8



0.0


Legal settlement

0.3



0.0



5.3



0.0


Impairment of investment

0.0



0.6



(0.1)



0.6


Total operating expense

80.1



66.5



307.9



281.0


OPERATING PROFIT/(LOSS)

(0.2)



(3.8)



50.0



(2.8)


Interest expense on long term borrowings

3.4



3.5



13.5



11.8


Loss on extinguishment of debt

0.0



0.0



$

0.0



4.9


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

(3.6)



(7.3)



36.5



(19.5)


Income tax expense/(benefit)

(2.9)



(0.7)



8.5



(5.0)


Equity in net loss of affiliate

0.0



(0.2)



0.0



(0.3)


Net income/(loss) from continuing operations

(0.7)



(6.8)



28.0



(14.9)


Income from discontinued operations, including gain on

sale of $69,292, net of income tax of $4,756

(1.7)



3.3



65.6



4.3


NET INCOME/(LOSS)

(2.4)



(3.5)



93.6



(10.6)


Net income attributable to non-controlling interest

0.1



0.2



0.7



0.6


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

$

(2.5)



$

(3.7)



$

92.9



$

(11.2)


_________________________

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)



December 31,


December 31,


2018


2017

ASSETS:




Cash and cash equivalents

$

278.9



$

209.7


Cash and securities held for customers

842.5



978.8


Receivables from brokers

84.3



78.5


Property and equipment, net

30.6



40.7


Intangible assets, net

32.2



62.0


Goodwill

27.8



33.0


Other assets

36.4



45.9


Total assets

$

1,332.5



$

1,448.6


LIABILITIES AND SHAREHOLDERS' EQUITY:




Payables to customers

$

842.5



$

978.8


Payables to brokers

1.6



2.8


Accrued compensation and benefits

11.2



10.1


Accrued expenses and other liabilities

41.6



33.9


Income tax payable

5.8



0.6


Convertible senior notes

132.1



132.2


Total liabilities

$

1,034.8



$

1,158.5


Redeemable non-controlling interests

$

0.0



$

4.4


Shareholders' equity

297.8



285.7


Total liabilities and shareholders' equity

$

1,332.5



$

1,448.6


_________________________

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

 

 

Income Statement of Discontinued Operations



Three Months Ended


Twelve Months Ended


December 31,


December 31,


2018


2017


2018


2017

REVENUE:








Institutional revenue

$

0.0



$

6.8



$

16.4



$

30.1


Total non-interest revenue

0.0



6.8



16.4



30.1


Interest revenue

0.0



0.2



0.1



0.3


Total net interest revenue

0.0



0.2



0.1



0.3


Net revenue

$

0.0



$

7.0



$

16.5



$

30.4


EXPENSES:








Employee compensation and benefits

$

0.0



$

2.5



$

6.0



$

12.5


Trading expenses

0.0



2.3



5.4



9.6


Other expenses

0.0



1.5



4.0



5.8


Total operating expense

0.0



6.3



15.4



28.0


OPERATING PROFIT/(LOSS)

0.0



0.6



1.1



2.4


Gain/(loss) on sale of discontinued operations

(0.1)



0.0



69.3



0.0


INCOME/(LOSS) BEFORE INCOME TAX












EXPENSE/(BENEFIT)

(0.1)



0.6



70.4



2.4


Income tax expense/(benefit)

1.5



(2.7)



4.8



(1.8)


NET INCOME FROM DISCONTINUED

OPERATIONS

$

(1.7)



$

3.3



$

65.6



$

4.3


_________________________

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

 

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

Adjusted net income/(loss) is a non-GAAP financial measure and represents our net income/(loss) excluding certain one-time costs and benefits.  Adjusted EPS is calculated using adjusted net income/(loss).  These non-GAAP financial measures have certain limitations, including that they do not have standardized meanings and, therefore, our definitions 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 these measures assists investors in evaluating our operating performance. However, because they are not a measure of financial performance or income tax expense calculated in accordance with GAAP, such measures should be considered in addition to, but not as a substitute for, other measures reported in accordance with GAAP.

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

(unaudited)



Three Months Ended


Twelve Months Ended


December 31,


December 31,


2018


2017


2018


2017

Net Income/(Loss) from continuing operations

$

(0.7)



$

(6.8)



$

28.0



$

(14.9)


Income Tax Expense/(Benefit)

(2.9)



(0.7)



8.5



(5.0)


Equity in Net Loss of Affiliate

0.0



0.2



0.0



0.3


Pre-Tax Income/(Loss)

$

(3.6)



$

(7.3)



$

36.5



$

(19.5)


Plus: Adjustments

(2.2)



1.4



2.6



6.4


Adjusted Pre-Tax Income/(Loss)

$

(5.8)



$

(5.8)



$

39.1



$

(13.1)


Adjusted Income Tax Expense/(Benefit)(1)

1.4



1.5



(9.3)



2.8


Equity in Net Loss of Affiliate

0.0



(0.2)



0.0



(0.3)


Non-controlling Interest

(0.1)



(0.2)



(0.7)



(0.6)


Adjusted Net Income/(Loss)

$

(4.6)



$

(4.8)



$

29.1



$

(11.3)










Adjusted Earnings/(Loss) per Common Share:








Basic

$

(0.11)



$

(0.11)



$

0.67



$

(0.24)


Diluted

$

(0.11)



$

(0.11)



$

0.66



$

(0.24)










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








Basic

40,598,334



45,090,984



43,731,881



46,740,097


Diluted

40,598,334



45,090,984



44,189,324



46,740,097


_____________________________


1Adjusted income tax (expense)/benefit reflects the Company's GAAP income tax (expense)/benefit adjusted for (a) taxable or deductible items affecting income tax (expense)/benefit that are unrelated to pre-tax income in the period and (b) the tax effect of other taxable adjustments made to the Company's pre-tax income. The tax effect of the adjustments to pre-tax income are calculated using the tax rate applicable for the jurisdiction within which each of the adjustments arose. The Company believes that this non-GAAP financial measure provides investors with a more consistent and stable basis for determining the impact of taxes on the Company's core continuing operations.


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

 

 

Adjusted Income Tax (Expense)/ Benefit Reconciliation

(unaudited)




Three Months Ended


Twelve Months Ended



December 31,


 December 31,



2018


2017


2018


2017










GAAP pre-tax income/(loss)


$

(3.6)



$

(7.3)



$

36.5



$

(19.5)


YTD GAAP Tax Rate


23.3

%


25.7

%


23.3

%


25.7

%

Initial adjusted tax (expense)/benefit (1)


0.8



1.9



(8.5)



5.0











Uncertain tax position(2)


0.0



0.0



(0.2)



(4.6)


Tax reform(3)


0.0



0.0



0.0



4.5


One off adjustments(4)


0.5



(0.4)



(0.5)



(2.1)


Adjusted tax (expense)/benefit


1.4



1.5



(9.3)



2.8











Adjusted pre tax income/(loss)


$

(5.8)



$

(5.8)



$

39.1



$

(13.1)


Adjusted tax rate(5)


23.1

%


25.1

%


23.6

%


21.2

%


1Initial adjusted tax (expense)/benefit calculated as GAAP pre-tax income multiplied by the YTD GAAP Tax Rate

2Represents adjustment caused by a favorable U.S. tax ruling of $(0.2) million in 2018; prior year adjustments for release of interest and penalties associated with deemed dividends based on amended prior year filings and IRS approved change in accounting method of $4.6 million in 2017

3Tax adjustments required under the Tax Cuts and Jobs Act (TCJA)

4Represents adjustments to tax relating to a legal settlement of $0.3 million taxed at 21%, restructuring of $0.7 million taxed at 19%, a PP&E write off of $1.3 million taxed at 19%, fees associated with the share tender of $0.8 million taxed at 21% and a class action settlement of $(5.4) million taxed at 21% during Q4 2018; other corporate expenses of $0.8 million taxed at 35% and an impairment of investment expense of $0.6 million taxed at 19% in  Q4 2017; a legal settlement of $5.3 million taxed at 21%, restructuring of $0.7 million taxed at 19%, a PP&E write off of $1.3 million taxed at 19%, fees associated with the share tender of $0.8 million taxed at 21%, a class action settlement of $(5.4) million taxed at 21% and an impairment adjustment of $(0.1) million taxed at 19% during 2018; loss on extinguishment of debt expense of $4.9 million taxed at 35%, other corporate expenses of $0.8 million taxed at 35% and an impairment of investment expense of $0.6 million taxed at 19% in 2017

5Adjusted tax rate calculated as Adjusted tax (expense)/benefit divided by Adjusted pre tax income/(loss)


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, convertible note interest, contingent provision, non-controlling interest and debt extinguishment. 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

Twelve Months Ended


December 31,

December 31,


2018


2017

2018


2017

Net Revenue

$

79.9



$

62.7


$

358.0



$

278.2


Net Income/(Loss)

(0.7)



(6.8)


28.0



(14.9)


Net Income/(Loss) Margin %

(1)

%


(11)

%

8

%


(5)

%








Net Income/(Loss)

$

(0.7)



$

(6.8)


$

28.0



$

(14.9)


Depreciation and amortization

4.3



4.7


19.7



17.0


Purchased intangible amortization

3.4



3.6


14.2



14.0


Interest on long term borrowings

3.4



3.5


13.5



11.8


Income tax expense/(benefit)

(2.9)



(0.7)


8.5



(5.0)


Legal settlement

0.3



0.0


5.3



0.0


Restructuring

0.7



0.0


0.8



0.0


Impairment of investment

0.0



0.6


(0.1)



0.6


Equity in net loss of affiliates

0.0



0.2


0.0



0.3


Loss on extinguishment of debt

0.0



0.0


0.0



4.9


Class action settlement

(5.4)



0.0


(5.4)



0.0


PP&E write-off

1.3



0.0


1.3



0.0


Dutch auction fees

0.8



0.0


0.8



0.0


Operational strategy review fees

0.0



0.8


0.0



0.8


Adjusted EBITDA

$

5.2



$

5.9


$

86.5



$

29.7


Adjusted EBITDA Margin %(1)

7

%


9

%

24

%


11