Market Overview

GAIN Capital Reports Second Quarter 2019 Results

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

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

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

  • GAAP net income of $0.9 million, or earnings of $0.02 per share
  • GAAP net revenue of $75.5 million
  • Adjusted net income of $3.6 million, or earnings of $0.10 per share
  • Adjusted EBITDA of $13.0 million

Operating Highlights

  • New direct accounts increased 83% year-over-year and 5% quarter-over-quarter; fourth consecutive quarter of new growth
  • Pockets of volatility in the British Pound and major indices increased in revenue capture to $130 per million, 18% above the trailing twelve month average of $110 per million

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


Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Net Income/(Loss)

$

0.9



$

6.8



$

(27.4)



$

18.7


Adjusted Net Income/(Loss) (1)

$

3.6



$

4.4



$

(26.5)



$

17.9










Net Revenue

$

75.5



$

84.2



$

113.9



$

182.5


Operating Expenses(2)

(62.5)



(65.3)



(124.4)



(131.7)


Adjusted EBITDA(1)

$

13.0



$

18.9



$

(10.4)



$

50.8










Diluted GAAP EPS

$

0.02



$

0.13



$

(0.73)



$

0.38


Adjusted EPS(1)

$

0.10



$

0.10



$

(0.71)



$

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.

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

 

"Q2 results, while mixed, showed positive signs of increased client engagement which will benefit GAIN and drive trading revenue upon the return of market volatility," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "Market conditions remained challenging during the second quarter and the Eurodollar, our most traded product, was even more tightly range-bound than the previous quarter's record, impacting overall client activity and volume. Despite these headwinds, pockets of volatility across the British Pound and major indices helped drive Q2 revenue per million of $130, improving the trailing twelve month average by 6% to $110. Looking ahead, we are well-positioned to drive future trading revenue upon the return of volatility as we've seen an increase in open client positions and continued growth in new direct accounts and direct active accounts."

Quarterly Operating Metrics



Q2 19


Q2 18


Year-over-year
Change

Retail Segment






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