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Forex.com announces its financial results for 2011

Feb 29 2012
By
Forexbrokerz.com

GAIN Capital Holdings, Inc. ("GAIN") (NYSE: GCAP), the leading global provider of online trading services operating Forex.com, announced its results for the fourth quarter and twelve months ended December 31, 2011.

 

"Fourth quarter market conditions reflected an unusual confluence of factors that caused us to report a loss for the period. There was a drop-off in market volatility, spikes of market uncertainty, and very tight trading ranges in major currencies such as the Euro and Yen. These dynamics, which contributed to a 18.2% sequential decrease in retail trading volumes, altered the composition of our order flow and impacted our ability to optimize spread capture. Throughout the quarter, we nonetheless continued to invest in being the best service provider in our asset class. We are confident that our ongoing focus on customers will enable us to continue to drive growth of a loyal client base going forward," said Glenn Stevens, Chief Executive Officer.
 
"Despite these exceptional factors, we achieved a 20.1% EBITDA margin for the full year, and the underlying business remained strong. Retail trading volume was up 18.8% for the full-year, while our institutional business continued to gain momentum and delivered 298.5% trading volume growth in 2011. GAIN GTX is now at an inflection point, and we expect it to become a meaningful contributor in 2012. We continue to pursue several opportunities to further expand GAIN's geographic reach and product offerings in order to drive long-term growth," Mr. Stevens concluded.
 
Full-Year Metrics
 
(Comparisons below are referenced to FY 2010)
 
Net revenue of $181.5 million, compared to $189.1 million
EBITDA* of $36.6 million, compared to adjusted EBITDA* of $58.5 million; EBITDA margin* of 20.1%
Net income of $15.7 million, compared to $37.8 million; net income margin of 8.7%
Adjusted net income* of $21.7 million, compared to $33.9 million
Diluted EPS of $0.40, compared to $1.00
Adjusted diluted EPS* of $0.56, compared to $0.90
Total retail trading volume up 18.8% to $1.6 trillion
Total institutional trading volume up 298.5% to $953.6 billion
Client assets up by 20.9% to $310.4 million as of December 31, 2011
 
Fourth Quarter Metrics
 
(Comparisons below are referenced to Q4 2010)
 
Net revenue of $31.6 million, compared to $40.9 million
EBITDA* of $(3.1) million, compared to adjusted EBITDA* of $7.2 million
Net income/(loss) of $(3.3) million, compared to $56.8 million
Adjusted net income/(loss)* of $(1.6) million, compared to $4.0 million
Diluted EPS of $(0.10), compared to $1.44
Adjusted diluted EPS* of $(0.05), compared to $0.10
Total retail trading volume consistent at $366.4 billion
Total institutional trading volume up 367.9% to $486.2 billion
 
(*See below for reconciliation of non-GAAP financial measures and basis for comparing EBITDA in 2011 to adjusted EBITDA in 2010)
 
Declaration of Quarterly Dividend
 
The Board of Directors approved a quarterly dividend of $0.05 per share, to be paid on March 22, 2012 to shareholders of record as of March 13, 2012.
 
Conference Call
 
GAIN Capital will host a conference call today at 5:00 pm ET. Those wishing to listen to the call should dial +1.866.362.5158 (U.S. domestic) or +1.617.597.5397 (international), and enter the passcode 17272051# at least 10 minutes prior to the start of the call. A live audio webcast of the call, as well as PDF copies of this release and an accompanying presentation, will also be available on the Investor Relations section of the GAIN Capital website.
The audio replay will be available for one week after the call by dialing 1.888.286.8010 (U.S. domestic) or +1.617.801.6888 (international), and entering passcode 99787270#. The replay will be available starting approximately two hours after the completion of the conference call.
 
About GAIN Capital
 
GAIN Capital Holdings, Inc. (NYSE: GCAP) is a global provider of online trading services. GAIN's innovative trading technology provides market access and highly automated trade execution services across multiple asset classes, including foreign exchange (forex or FX), contracts for difference (CFDs) and exchange-based products, to a diverse client base of retail and institutional investors.
A pioneer in online forex trading, GAIN Capital operates FOREX.com®, one of the largest and best-known brands in the retail forex industry. GAIN's other businesses include GAIN GTX, a fully independent FX ECN for hedge funds and institutions, and GAIN Securities, Inc. (member FINRA/SIPC), a licensed U.S. broker-dealer.
 
GAIN Capital and its affiliates have offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo; Singapore; Beijing; and Seoul.
 
For further company information, visit www.gaincapital.com
TAGS: forex.com  retail trading volume  institutional trading volume  2011  results  gain gtx 

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