GAIN Capital Reports Record Fourth Quarter and Full Year Results
Fourth Quarter 2014
-Record net revenue of $114.7 million, up 37%
-Net income of $17.6 million, up 309%
-Earnings per diluted share of $0.41, up 273%
-Adjusted EBITDA of $35.9 million, up 164%
-Retail OTC trading volume of $730.6 billion, up 42%
Full Year 2014
-Net revenue of $369.5 million, up 38%
-Adjusted EBITDA of $74.6 million, up 23%
-Retail OTC trading volume of $2.4 trillion, up 35%
-Institutional trading volume of $5.1 trillion, up 29%
BEDMINSTER, N.J., February 26, 2015 /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 2014.
“We ended 2014 with an exceptionally strong quarter, as we capitalized on improved market conditions to increase customer engagement across our businesses, boost trading volumes and attract new customers. Retail OTC trading volume and revenue both grew by more than 35%, and we ended the year with record funded accounts. Our focus on growing our commission-based businesses also continues to deliver results, with commission-based revenue up by 30% from a year ago,” said Glenn Stevens, CEO of GAIN Capital. “This positive growth, combined with our disciplined management of fixed operating expenses allowed us to deliver record quarterly revenue and net income of $114.7 million and $17.6 million, respectively,” continued Mr. Stevens.
“Throughout 2014, we continued to execute on our strategy of growing our business both organically and through M&A and diversifying our revenues across products, customer types and geographies. We delivered record net revenue of $369.5 million, which was up 38% for the year; I am especially proud that due to their continued successful development, our commission-based businesses comprised 34% of our annual net revenue, up from 23% in 2013 and 14% in 2012,” Mr. Stevens continued. “On the M&A side, in October we announced the acquisition of London-based City Index, our second large-scale acquisition in two years, following our successful acquisition and integration of GFT. City Index will continue the process of diversifying our retail OTC volume, giving us further exposure to non-fx asset classes such as equity, energy and precious metals via CFDs. These transactions demonstrate our position as an industry consolidator and our expertise in realizing substantial operating expense synergies, while also providing a platform to continue to grow and diversify our businesses,” Mr. Stevens added.
“We enter 2015 with solid momentum, with robust client engagement and trading volumes continuing in the initial weeks of the first quarter,” Mr. Stevens continued. “As a result of our strong risk management capabilities, we successfully navigated the Swiss franc event on January 15, 2015 and since then we’ve seen a strong increase in new accounts, up significantly in January versus our monthly average in the fourth quarter. With strong momentum in organic growth coupled with our acquisition of City Index, which we expect to close in early Q2, we believe we are well-positioned to deliver growth and value for our stakeholders in 2015 and beyond,” Mr. Stevens concluded.
Fourth Quarter Highlights
(Comparisons below are referenced to the three months ending December 31, 2013)
Net revenue of $114.7 million, up 37%
Net income of $17.6 million, up 309%
Earnings per diluted share of $0.41, up 273%
Adjusted EBITDA* of $35.9 million, up 164%
Retail OTC trading volume of $730.6 billion, up 42%
Institutional trading volume of $1.2 trillion, up 11%
Average Daily Futures Contracts of 30,446, up 41%
The following information was filed by Gain Capital Holdings, Inc. (GCAP) on Thursday, February 26, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.