GAIN Capital Reports Fourth Quarter and Full Year 2015 Results
GAIN Capital has issued a press release to inform in relation with Fourth Quarter and Full Year 2015 Results.
The company reports the below results:
Fourth Quarter 2015
Net revenue of $102.8 million
Net income of $15.5 million
Adjusted EBITDA of $21.5 million
Earnings per diluted share of $0.32
Adjusted earnings per share1 of $0.42
Full Year 2015
Net revenue of $ 435.4 million
Net income of $10.2 million
Adjusted EBITDA1 of $80.5 million
Earnings per diluted share of $0.22
Adjusted earnings per share1 of $0.71
Net revenue for fiscal year 2015 was $435.4 million, up from $369.2 million in fiscal year 2014. Adjusted EBITDA for the year was $80.5 million, up from $74.7 million in 2014. GAIN’s financial highlights for the three months and fiscal year ended December 31, 2015 are included in the chart below.
“This year reflects GAIN’s continued success in executing its strategy, particularly relating to the scaling and diversification of our retail business, while also growing our other business segments,” commented Glenn Stevens, CEO of GAIN Capital. “We successfully closed on the acquisition of City Index in Q2 and are seeing the benefits of the cost synergies reflected in our financial results. Our achievement of approximately $45 million in run-rate cost synergies by Q4 2016 will drive continued expansion in our operating margins,” continued Mr. Stevens. “This marks the first earnings release that GAIN has disclosed segment reporting which provides a comprehensive picture of the results and profitability of each of GAIN’s business lines and, as a result, greater transparency regarding the value of the enterprise,” concluded Mr. Stevens.
Retail Segment
In the fourth quarter of 2015, GAIN’s retail segment generated net revenue of $82.8 million and adjusted EBITDA of $24.8 million, reflecting a margin of 30%.
For the fiscal year ended December 31, 2015, the retail segment generated net revenue of $351.5 million and adjusted EBITDA of $94.3 million, reflecting a margin of 27%.
Average daily retail trading volume was $12.5 billion in the fourth quarter of 2015, down 1% from $12.6 billion in the fourth quarter of 2014 and $15.4 billion in fiscal year 2015, up 39% from $11.1 billion in the previous year.
Institutional Segment
In the fourth quarter of 2015, GAIN’s institutional segment generated net revenue of $7.4 million and adjusted EBITDA of $2.1 million, reflecting a margin of 28%.
For the fiscal year ended December 31, 2015, the institutional segment generated net revenue of $35.1 million and adjusted EBITDA of $10.1 million, reflecting a margin of 29%.
Average daily trading volume on the ECN and for the Swap Dealer was $6.4 billion and $2.8 billion, respectively, in the fourth quarter of 2015 and $7.2 billion and $3.1 billion, respectively, in fiscal year 2015.
Futures Segment
In the fourth quarter of 2015, GAIN’s futures segment generated net revenue of $10.9 million and adjusted EBITDA of $0.7 million, reflecting a margin of 6%.
For the fiscal year ended December 31, 2015, the futures segment generated net revenue of $45.8 million and adjusted EBITDA of $3.9 million, reflecting a margin of 9%.
Average daily futures contracts were 31,476 in the fourth quarter of 2015 and 34,356 in fiscal year 2015.
Capital Return and Dividend
In the fourth quarter, GAIN repurchased 388,095 shares at an average price of $7.57. For the year, GAIN repurchased 654,362 shares at an average price of $7.76.
GAIN’s Board of Directors declared a quarterly cash dividend of $0.05 per share of the Company’s common stock. The dividend is payable on March 29, 2016 to shareholders of record as of the close of business March 25, 2016.
February Operating Metrics
Retail Metrics
OTC average daily volume1 of $13.2 billion, a decrease of 17.4% from January 2016 and an increase of 7.7% from February 2015.2
OTC trading volume1 of $276.3 billion, a decrease of 13.3% from January 2016 and an increase of 13.1% from February 2015.3
Active OTC accounts4 of 143,673, a decrease of 0.1% from January 2016 and an increase of 47.9% from February 2015.5
Futures average daily contracts of 36,993, a decrease of 13.5% from January 2016 and 0.9% from February 2015.
Futures contracts of 739,859, a decrease of 8.9% from January 2016 and an increase of 4.3% from February 2015.
Institutional Metrics
ECN average daily volume1 of $8.3 billion, a decrease of 12.1% from January 2016 and an increase of 25.0% from February 2015.
ECN volume1 of $174.0 billion, a decrease of 7.7% from January 2016 and an increase of 31.3% from February 2015.
Swap Dealer average daily volume1 of $3.0 billion, an increase of 4.5% from January 2016 and a decrease of 3.0% from February 2015.
Swap Dealer volume1 of $64.0 billion, an increase of 9.7% from January 2016 and 1.9% from February 2015.
1 US dollar equivalent of notional amounts traded.
2 OTC average daily volume decreased 18.3% from February 2015 on a pro forma basis (simple pro forma addition of GAIN and City Index).
3 OTC trading volume decreased 14.1% from February 2015 on a pro forma basis (simple pro forma addition of GAIN and City Index).
4 OTC accounts that executed a transaction during the last 12 months.
5 Active OTC accounts decreased 5.4% from February 2015 on a pro forma basis (simple pro forma addition of GAIN and City Index).
Source: Gain Capital – GAIN Capital Reports Fourth Quarter and Full Year 2015 Results
