Market Overview

GAIN Capital Reports Third Quarter 2019 Results

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BEDMINSTER, N.J., Oct. 24, 2019 /PRNewswire/ -- GAIN Capital Holdings, Inc. ("GAIN") (NYSE:GCAP), a leading global provider of online trading services, announced financial results for the third quarter of 2019.

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

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

  • GAAP net loss of $2.1 million, or loss of $0.06 per share
  • GAAP net revenue of $66.7 million
  • Adjusted net loss of $2.8 million, or loss of $0.07 per share
  • Adjusted EBITDA of $6.0 million

Operating Highlights

  • Retail trailing 3-month direct active accounts increased for a third consecutive quarter
  • Marketing investment drove new direct account growth of 97% year-over-year and 32% quarter-over-quarter
  • Pockets of volatility in US equity markets helped grow Futures average daily contracts 24% over the prior year

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


Three Months Ended September 30,


Nine Months Ended September 30,


2019


2018


2019


2018

Net (Loss)/Income

$

(2.1)



$

10.0



$

(29.5)



$

28.7


Adjusted Net (Loss)/Income(1)

$

(2.8)



$

13.8



$

(28.7)



$

31.7










Net Revenue

$

66.7



$

95.5



$

180.6



$

278.1


Operating Expenses(2)

(60.7)



(65.0)



(185.1)



(196.8)


Adjusted EBITDA(1)

$

6.0



$

30.5



$

(4.4)



$

81.3










Diluted GAAP EPS

$

(0.06)



$

0.22



$

(0.79)



$

0.60


Adjusted EPS(1)

$

(0.07)



$

0.31



$

(0.77)



$

0.70


___________________________________

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

 

"The third quarter continued to show positive signs of client engagement as our Retail trailing 3-month direct active accounts increased for a third consecutive quarter, providing evidence that our marketing efforts are helping to grow active accounts, even amid the unusually low volatility environment," stated Glenn Stevens, CEO of GAIN Capital. "In addition, we delivered direct new account growth, which was up 97% over Q3 2018 and 32% sequentially, further evidencing the effectiveness of our marketing. In Futures, average daily contracts increased 24% as we saw pockets of volatility in the US equity markets. With growing interest and activity from our new customers, we feel well positioned to benefit from a return to more normalized market conditions."

Quarterly Operating Metrics


Q3 19


Q3 18


Year-over-
year Change

Retail Segment






OTC Trading Volume (1) (2)

$

463.1



$

506.5



(8.6)

%

OTC Average Daily Volume

$

7.0


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