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Gain Capital Reports Revenues of $75.8 Million in Q1 2014 - 52% up YoY

GAIN Capital Holdings, Inc. ("GAIN") (NYSE: GCAP), the leading global provider of online trading services, operating Forex.com, announced financial results for the first quarter ended March 31, 2014. Below is a quick comparison of Gain Capital and the other NYSE listed forex broker - FXCM

 

Gain Capital vs. FXCM

 

 

 Gain Capital   FXCM
 - Net revenue of $75.8 million, up 52% from $49.8 million
 
      

 -  US GAAP revenues of $115.0 million, down 6% versus the same period in 2013 

 

 

 

      

 - Net income of $1.6 million, or $0.04 per diluted share, compared with net income of $4.3 million, or $0.11 per diluted share

 

  

 -  US GAAP net income attributable to FXCM Inc. of $2.1 million or $0.05 per fully diluted share down 0% and 79% respectively versus the same period in 2013 

 

- Adjusted net income* of $3.3 million, or $0.08 per diluted share

 

 

-  Adjusted Pro Forma net income of $5.2 million or $0.07 per fully exchanged, diluted share down 70% and 70% respectively versus the same period in 2013

 

 - Adjusted EBITDA* of $9.5 million, up 27% from $7.5 million    -  Adjusted Pro Forma EBITDA of $24.6 million, down 44% versus the same period in 2013 

 

 

"Trading conditions in the first quarter, particularly the major currencies' narrow trading ranges, resulted in a challenging quarter for our retail OTC business, which muted our overall first quarter financial results," said Glenn Stevens, Chief Executive Officer.  "However, our operating metrics remain strong, with trading volume, active and funded accounts, client assets and futures contracts all experiencing double-digit growth over the first quarter of 2013 and strong sequential growth.  We are very pleased with our ability to continue to attract customers and provide them with world-class service, which we expect will translate into growth in our financial results when trading conditions improve," added Mr. Stevens.
 
"Our commission-based business, which includes our institutional and exchange-traded futures businesses, showed strong growth in the quarter and continue to drive our revenue diversification efforts.  These complementary businesses represented 39% of our overall revenue for the quarter," Mr. Stevens continued.  "The completed acquisitions of Global Asset Advisors and Top Third Ag Marketing and pending acquisition of Galvan Research will contribute to the further expansion of our commission-based revenue, and we expect these transactions to be accretive in 2014," added Mr. Stevens.
 
"In addition, we continue to make progress achieving our target cost synergies arising from our acquisition of GFT late last year and expect the realization of those cost savings to ramp significantly in the remaining quarters of 2014.  Moreover, we have initiated additional cost-cutting actions that we expect will further reduce our expense base in the coming quarters. With strong client engagement, successful M&A activities which deliver revenue growth and diversification and a continued focus on expense management, we are confident in our ability to deliver long-term shareholder value," concluded Mr. Stevens.
 
Retail OTC Business
 
In the first quarter of 2014, GAIN's retail OTC trading business generated revenue of $47.0 million, compared to $35.3 million in the first quarter of 2013.  Total retail OTC trading volume during the quarter was $566.3 billion, compared to $431.8 billion for the same period in 2013.  
 
Commission Business
 
In the first quarter of 2014, GAIN's commission-based business, which includes institutional forex and exchange traded futures, generated total revenue of $29.8 million, compared to $10.9 million in the first quarter of 2013.  The institutional business generated total revenue of $23.3 million in the quarter, compared to $6.2 million for the same period in 2013. Institutional trading volume was $1.3 trillion in the first quarter of 2014, compared to $889.9 billion a year earlier.  The exchange-traded futures business generated revenue of $6.5 million in the first quarter of 2014, compared to $4.7 million in the same period in 2013.  Total contracts in the first quarter of 2014 were 1,609,796, compared to 1,282,066 in the same period in 2013.   
 
First Quarter Metrics
 
(Comparisons below are referenced to results for the first quarter 2013)
 
 - Net revenue of $75.8 million, up 52% from $49.8 million
 - Net income of $1.6 million, or $0.04 per diluted share, compared with net income of $4.3 million, or $0.11 per diluted share
 - Adjusted net income* of $3.3 million, or $0.08 per diluted share
 - Adjusted EBITDA* of $9.5 million, up 27% from $7.5 million
 - Retail OTC trading volume of $566.3 billion, up 31% from $431.8 billion
 - Institutional trading volume of $1.3 trillion, up 46% from $889.9 billion
 - Futures contracts of 1,609,796, up 26% from 1,282,066
 - Total retail client assets of $805.9 million, up 76% from $456.9 million
 
(*See below for reconciliation of non-GAAP financial measures)
 
Dividend
 
GAIN's Board of Directors declared a quarterly dividend of $0.05 per share, to be paid to be paid on June 20, 2014 to shareholders of record as of June 12, 2014.
 
Conference Call
 
GAIN will host a conference call today, Thursday May 8, 2014 at 5:00 p.m. ET.  Participants may access the live call by dialing +1-877-317-6789 (U.S. domestic), or +1-412-317-6789 (international).
 
A live audio webcast of the call and a copy of the accompanying presentation will also be available on the Investor Relations section of the GAIN website (http://ir.gaincapital.com).  A PDF copy of the earnings presentation will also be available on the Investor Relations website.
 
An audio replay will be made available for one month starting approximately two hours after the call by dialing +1-877-344-7529 in the U.S. or +1-412-317-0088 from abroad, and entering passcode 10045277#.
 
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 to a diverse client base of retail and institutional investors.
GAIN's businesses include FOREX.com, which provides retail traders around the world access to a variety of global OTC financial markets, including forex, precious metals and CFDs on commodities and indices; GTX, a fully independent FX ECN for hedge funds and institutions and OEC, an innovative online futures broker.
 
GAIN 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.  

 

TAGS: Gain Capital  results  q1 2014  comparison 

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