BEDMINSTER, N.J., July 23, 2020 /PRNewswire/ -- GAIN Capital
Holdings, Inc. ("GAIN") (NYSE: GCAP), a leading global provider of
online trading services, announced financial results for the second
quarter of 2020.
Key Financial Results for the Second Quarter 2020
- GAAP net income of $14.3 million,
or $0.37 per diluted share
- GAAP net revenue of $101.0
million
- Adjusted net income of $15.2
million, or $0.40 per diluted
share
- Adjusted EBITDA of $28.9
million
Operating Highlights
- Another quarter of high volatility due to the ongoing economic
concerns over COVID-19 affecting Retail performance
- Trailing 3-month direct active accounts increased 34% over
prior year to a quarterly record 93,433
- RPM of $150, with average daily
volume of $9.1 billion, 28% above the
same quarter in the prior year
A summary of GAIN's financial results is included in the chart
below.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
Income/(Loss)
|
$
|
14.3
|
|
|
$
|
0.9
|
|
|
$
|
91.6
|
|
|
$
|
(27.4)
|
|
|
Adjusted Net
Income/(Loss)(1)
|
$
|
15.2
|
|
|
$
|
3.6
|
|
|
$
|
94.1
|
|
|
$
|
(26.5)
|
|
|
|
|
|
|
|
|
|
|
Net
Revenue
|
$
|
101.0
|
|
|
$
|
75.5
|
|
|
$
|
286.7
|
|
|
$
|
113.9
|
|
|
Operating
Expenses(2)
|
(72.1)
|
|
|
(62.5)
|
|
|
(143.4)
|
|
|
(124.4)
|
|
|
Adjusted
EBITDA(1)
|
$
|
28.9
|
|
|
$
|
13.0
|
|
|
$
|
143.3
|
|
|
$
|
(10.4)
|
|
|
|
|
|
|
|
|
|
|
Diluted GAAP
EPS
|
$
|
0.37
|
|
|
$
|
0.02
|
|
|
$
|
2.42
|
|
|
$
|
(0.73)
|
|
|
Adjusted diluted
EPS(1)
|
$
|
0.40
|
|
|
$
|
0.10
|
|
|
$
|
2.48
|
|
|
$
|
(0.71)
|
|
|
|
|
|
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
|
"A second quarter of high volatility, due in part to the ongoing
economic concerns over the COVID-19 virus, allowed Gain to continue
to benefit from high daily volumes, up 28% year on year, revenue
capture of $150 plus improved
operational leverage arising from a successful focus on cost
efficiency over the past 2 years. Adjusted EBITDA was more than
double the prior year's at $29m, a
margin of 29% compared to last year's 17%, with adjusted EPS of
$0.40 taking the half year to
$2.48 earnings per share," stated
Glenn Stevens, CEO of GAIN
Capital.
"Client metrics in the second quarter further improved over the
strong first quarter, as 42% more clients placed their first trade
compared to the first quarter, an increase of 141% over prior year.
These new clients, together with increased engagement from the
large client base who opened accounts with us in 2019, helped
improved our 3-month trailing active accounts by 34% over last year
to a new record level. In addition, we look forward to the closing
of the acquisition by StoneX Group (formerly INTL FCStone Inc.),
which remains on track to complete later this quarter," added Mr.
Stevens.
Quarterly Operating Metrics
|
Q2
20
|
|
Q2
19
|
|
Year-over-
year Change
|
|
Retail
Segment
|
|
|
|
|
|
|
OTC Trading Volume
(1) (2)
|
$
|
589.7
|
|
|
$
|
464.3
|
|
|
27.0
|
%
|
|
OTC Average Daily
Volume
|
$
|
9.1
|
|
|
$
|
7.1
|
|
|
28.2
|
%
|
|
12 Month Trailing
Active OTC Accounts (3)
|
149,432
|
|
|
118,320
|
|
|
26.3
|
%
|
|
3 Month Trailing
Active OTC Accounts (3)
|
93,433
|
|
|
69,556
|
|
|
34.3
|
%
|
|
|
|
|
|
|
|
Futures
Segment
|
|
|
|
|
|
|
Number of Futures
Contracts
|
1,710,863
|
|
|
1,978,251
|
|
|
(13.5)
|
%
|
|
Futures Average Daily
Contracts
|
27,157
|
|
|
31,401
|
|
|
(13.5)
|
%
|
|
12 Month Trailing
Active Futures Accounts (3)
|
7,197
|
|
|
7,406
|
|
|
(2.8)
|
%
|
|
|
|
|
All retail volume
figures reported in billions.
|
|
1 US
dollar equivalent of notional amounts traded.
|
|
2 For
the quarter, indirect volume represented 18% of total retail OTC
trading volume.
|
|
3 Accounts that executed a
transaction during the relevant period.
|
Acquisition by StoneX Group Inc. (formerly INTL FCStone,
Inc.)
Acquisition by StoneX Group Inc. remains on track to complete later
this quarter.
Financial Statements for the Second Quarter 2020
The financial statements for the second quarter 2020 have not been
subjected to audit or review procedures by our independent
registered accounting firm.
For more corporate information or to sign up for alerts, please
visit: http://ir.gaincapital.com.
About GAIN
GAIN Capital Holdings, Inc. provides innovative trading technology
and execution services to retail and institutional investors
worldwide, with multiple access points to OTC markets and global
exchanges across a wide range of asset classes, including foreign
exchange, commodities, and global equities. 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.
|
Condensed
Consolidated Statements of Operations
|
|
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
Retail
revenue
|
$
|
88.5
|
|
|
$
|
60.4
|
|
|
$
|
261.6
|
|
|
$
|
84.7
|
|
|
Futures
revenue
|
8.3
|
|
|
10.2
|
|
|
17.7
|
|
|
18.2
|
|
|
Other
revenue
|
3.6
|
|
|
1.0
|
|
|
4.6
|
|
|
3.5
|
|
|
Total non-interest
revenue
|
100.5
|
|
|
71.7
|
|
|
283.9
|
|
|
106.4
|
|
|
Interest
revenue
|
0.7
|
|
|
4.4
|
|
|
3.5
|
|
|
8.7
|
|
|
Interest
expense
|
0.2
|
|
|
0.6
|
|
|
0.7
|
|
|
1.2
|
|
|
Total net interest
revenue
|
0.5
|
|
|
3.8
|
|
|
2.8
|
|
|
7.5
|
|
|
Net
revenue
|
$
|
101.0
|
|
|
$
|
75.5
|
|
|
$
|
286.7
|
|
|
$
|
113.9
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
$
|
28.6
|
|
|
$
|
22.6
|
|
|
$
|
52.7
|
|
|
$
|
42.9
|
|
|
Selling and
marketing
|
7.9
|
|
|
10.1
|
|
|
15.0
|
|
|
20.3
|
|
|
Referral
fees
|
9.5
|
|
|
7.5
|
|
|
22.0
|
|
|
14.6
|
|
|
Trading
expenses
|
4.6
|
|
|
5.4
|
|
|
9.5
|
|
|
10.9
|
|
|
General and
administrative
|
16.2
|
|
|
11.7
|
|
|
30.1
|
|
|
24.5
|
|
|
Depreciation and
amortization
|
3.9
|
|
|
4.4
|
|
|
8.2
|
|
|
8.7
|
|
|
Purchased intangible
amortization
|
1.7
|
|
|
1.9
|
|
|
3.5
|
|
|
5.2
|
|
|
Communications and
technology
|
4.3
|
|
|
4.8
|
|
|
8.8
|
|
|
10.5
|
|
|
Bad debt
provision
|
1.0
|
|
|
0.5
|
|
|
5.2
|
|
|
0.9
|
|
|
Restructuring
expenses
|
0.0
|
|
|
0.0
|
|
|
1.5
|
|
|
0.0
|
|
|
Transaction
costs
|
2.6
|
|
|
0.0
|
|
|
3.6
|
|
|
0.0
|
|
|
Total operating
expenses
|
$
|
80.3
|
|
|
$
|
69.0
|
|
|
$
|
160.1
|
|
|
$
|
138.5
|
|
|
OPERATING
PROFIT/(LOSS)
|
20.7
|
|
|
6.5
|
|
|
126.6
|
|
|
(24.5)
|
|
|
Interest expense on
long term borrowings
|
2.3
|
|
|
3.4
|
|
|
5.7
|
|
|
6.7
|
|
|
INCOME/(LOSS) BEFORE
INCOME TAX
|
$
|
18.4
|
|
|
$
|
3.1
|
|
|
$
|
120.8
|
|
|
$
|
(31.3)
|
|
|
Income tax
expense/(benefit)
|
4.2
|
|
|
2.2
|
|
|
29.2
|
|
|
(3.8)
|
|
|
NET
INCOME/(LOSS)
|
$
|
14.3
|
|
|
$
|
0.9
|
|
|
$
|
91.6
|
|
|
$
|
(27.4)
|
|
|
|
|
|
Note: Dollars
in millions, except where noted otherwise. Columns may not add due
to rounding.
|
|
Condensed
Consolidated Balance Sheet
|
|
(unaudited)
|
|
|
June
30,
|
|
December
31,
|
|
2020
|
|
2019
|
|
ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
$
|
283.1
|
|
|
$
|
190.1
|
|
|
Cash and securities
held for customers
|
859.8
|
|
|
929.3
|
|
|
Receivables from
brokers
|
90.1
|
|
|
112.3
|
|
|
Property
and equipment, net
|
28.2
|
|
|
30.6
|
|
|
Intangible assets, net
|
19.4
|
|
|
24.2
|
|
|
Other assets
|
43.0
|
|
|
64.0
|
|
|
Total assets
|
$
|
1,323.6
|
|
|
$
|
1,350.4
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY:
|
|
|
|
|
Payables to
customers
|
$
|
859.8
|
|
|
$
|
929.3
|
|
|
Payables to
brokers
|
2.9
|
|
|
0.0
|
|
|
Accrued compensation
and benefits
|
16.1
|
|
|
5.5
|
|
|
Accrued expenses and
other liabilities
|
43.1
|
|
|
43.1
|
|
|
Income tax
payable
|
8.9
|
|
|
0.6
|
|
|
Convertible senior
notes
|
81.4
|
|
|
137.2
|
|
|
Total liabilities
|
$
|
1,012.3
|
|
|
$
|
1,115.7
|
|
|
Shareholders'
equity
|
311.3
|
|
|
234.7
|
|
|
Total liabilities and shareholders' equity
|
$
|
1,323.6
|
|
|
$
|
1,350.4
|
|
|
|
|
|
Note: Dollars
in millions, except where noted otherwise. Columns may not add due
to rounding.
|
Reconciliation of GAAP Net Income to Adjusted Net Income,
Adjusted EPS and Adjusted Income Tax
Adjusted net income/(loss) is a non-GAAP financial measure
representing our net income/(loss) excluding certain one-time costs
and benefits. Adjusted EPS is calculated using adjusted net
income/(loss). Adjusted income tax expense/(benefit) reflects the
Company's GAAP income tax expense/(benefit) adjusted for (a)
taxable or deductible items affecting income tax expense/(benefit)
that are unrelated to pre-tax income/(loss) in the period and (b)
the tax effect of other taxable adjustments made to the Company's
pre-tax income. The tax effect of the adjustments to pre-tax
income/(loss) are calculated using the tax rate applicable for the
jurisdiction within which each of the adjustments arose. The
Company believes that this non-GAAP financial measure provides
investors with a more consistent and stable basis for determining
the impact of taxes on the Company's core operations. These
non-GAAP financial measures have certain limitations, including not
having standardized meanings. Therefore, our definitions may be
different from similar non-GAAP financial measures used by other
companies and/or analysts. Thus, it may be more difficult to
compare our financial performance to that of other companies. We
believe reporting these measures assists investors in evaluating
our operating performance. However, because they are not measures
of financial performance or income tax expense calculated in
accordance with GAAP, such measures should be considered in
addition to, not as a substitute for, other measures reported in
accordance with GAAP.
|
Net Income/(Loss)
to Adjusted Net Income/(Loss) and Adjusted EPS
|
|
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
income/(loss)
|
$
|
14.3
|
|
|
$
|
0.9
|
|
|
$
|
91.6
|
|
|
$
|
(27.4)
|
|
|
Income tax
expense/(benefit)
|
4.2
|
|
|
2.2
|
|
|
29.2
|
|
|
(3.8)
|
|
|
Pre-tax
income/(loss)
|
$
|
18.4
|
|
|
$
|
3.1
|
|
|
$
|
120.8
|
|
|
$
|
(31.3)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Restructuring
expenses(1)
|
0.0
|
|
|
0.0
|
|
|
1.5
|
|
|
0.0
|
|
|
Contingent
provision(2)
|
0.0
|
|
|
0.2
|
|
|
0.0
|
|
|
0.2
|
|
|
Transaction
costs(3)
|
2.6
|
|
|
0.0
|
|
|
3.6
|
|
|
0.0
|
|
|
Adjusted pre-tax
income/(loss)
|
21.1
|
|
|
3.3
|
|
|
125.9
|
|
|
(31.1)
|
|
|
Adjusted income
tax expense/(benefit)
|
5.9
|
|
|
(0.3)
|
|
|
31.9
|
|
|
(4.5)
|
|
|
Adjusted net
income/(loss)
|
$
|
15.2
|
|
|
$
|
3.6
|
|
|
$
|
94.1
|
|
|
$
|
(26.5)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings/(loss) per common share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.40
|
|
|
$
|
0.10
|
|
|
$
|
2.49
|
|
|
$
|
(0.71)
|
|
|
Diluted
|
$
|
0.40
|
|
|
$
|
0.10
|
|
|
$
|
2.48
|
|
|
$
|
(0.71)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding used in computing earnings/(loss) per
common share
|
|
|
|
|
|
|
|
|
Basic
|
37,981,765
|
|
|
37,187,060
|
|
|
37,768,172
|
|
|
37,355,133
|
|
|
Diluted
|
38,124,690
|
|
|
37,243,495
|
|
|
37,855,249
|
|
|
37,355,133
|
|
|
|
|
|
1Represents expenses for reducing global
headcount as part of our long-term strategic objective of reducing
fixed overheads.
|
|
2Represents a contingency related to a
legacy US regulatory matter
|
|
3Represents transaction-related expenses
with respect to the sale to StoneX Group Inc. (formerly INTL
FCStone, Inc.), which include legal, accounting and investment
banking fees.
|
|
|
Note: Dollars
in millions, except per share data and where noted otherwise.
Columns may not add due to rounding.
|
|
Adjusted Income
Tax Reconciliation
|
|
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
GAAP pre-tax
income/(loss)
|
$
|
18.4
|
|
|
$
|
3.1
|
|
|
$
|
120.8
|
|
|
$
|
(31.3)
|
|
|
GAAP tax
rate
|
24.2
|
%
|
|
12.1
|
%
|
|
24.2
|
%
|
|
12.1
|
%
|
|
Initial adjusted
tax expense/(benefit)(1)
|
4.5
|
|
|
0.4
|
|
|
29.2
|
|
|
(3.8)
|
|
|
|
|
|
|
|
|
|
|
Tax law
changes(3)
|
0.0
|
|
|
0.0
|
|
|
0.7
|
|
|
0.0
|
|
|
Uncertain tax
position(4)
|
0.0
|
|
|
(0.2)
|
|
|
0.0
|
|
|
(0.2)
|
|
|
One off
adjustments(5)
|
0.5
|
|
|
0.0
|
|
|
1.0
|
|
|
0.0
|
|
|
Basis
adjustment(6)
|
0.0
|
|
|
(0.5)
|
|
|
0.0
|
|
|
(0.5)
|
|
|
Tax rate
changes(7)
|
0.9
|
|
|
0.0
|
|
|
0.9
|
|
|
0.0
|
|
|
Adjusted tax
expense/(benefit)
|
$
|
5.9
|
|
|
$
|
(0.3)
|
|
|
$
|
31.9
|
|
|
$
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
income/(loss)
|
$
|
21.1
|
|
|
$
|
3.3
|
|
|
$
|
125.9
|
|
|
$
|
(31.1)
|
|
|
Adjusted tax
rate(2)
|
27.9
|
%
|
|
(9.1)
|
%
|
|
25.3
|
%
|
|
14.5
|
%
|
|
|
|
|
1Initial
adjusted tax expense/(benefit) calculated as GAAP pre-tax
income/(loss) multiplied by the YTD GAAP Tax Rate
|
|
2Adjusted
tax rate calculated as adjusted tax expense/(benefit) divided by
adjusted pre tax income/(loss)
|
|
3Represents a tax benefit of $0.7 million
due to NOL carry-back arising from the CARES Act for H1
20
|
|
4Represents an adjustment of $0.2 million
caused by a prior year's tax audit
|
|
5Represents the tax effect of the
adjustments to pre-tax income/(loss), which were transaction costs
of $2.6 million taxed at 20.9% for Q2 20, derived from the weighted
average of the tax rates for the jurisdictions where the costs were
incurred; H1 20 consisted of transaction costs of $3.6 million
taxed at 21.0% and $1.5 million of restructuring expenses taxed at
a hybrid rate of 19.4%
|
|
6Represents a basis adjustment to deferred
taxes of $0.5 million relating to a prior year
|
|
7Represents a tax rate change in the
United Kingdom, resulting in a tax benefit and increase to deferred
tax assets
|
Reconciliation of GAAP Net Income to Adjusted EBITDA and
Adjusted EBITDA Margin
Adjusted EBITDA is a non-GAAP financial measure that represents
our earnings/(loss) before interest, taxes, depreciation and
amortization, purchased intangible amortization, convertible note
interest, non-controlling interest, and certain one-time costs and
benefits. This non-GAAP financial measure has certain limitations,
including not having a standardized meaning. Therefore, our
definition may be different from similar non-GAAP financial
measures used by other companies and/or analysts. Thus, it may be
difficult to compare our financial performance to other companies'.
We believe reporting adjusted EBITDA and credit EBITDA assists
investors in evaluating our operating performance. However, because
neither adjusted EBITDA nor credit EBITDA are measures of financial
performance calculated in accordance with GAAP, they should be
considered in addition to, not as a substitute for, other measures
of our financial performance reported in accordance with GAAP, such
as net income/(loss).
|
Reconciliation of
GAAP Net Income/(Loss) to Adjusted EBITDA and Adjusted EBITDA
Margin
|
|
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
revenue
|
$
|
101.0
|
|
|
$
|
75.5
|
|
|
$
|
286.7
|
|
|
$
|
113.9
|
|
|
Net
income/(loss)
|
14.3
|
|
|
0.9
|
|
|
91.6
|
|
|
(27.4)
|
|
|
Net income/(loss)
margin %
|
14
|
%
|
|
1
|
%
|
|
32
|
%
|
|
(24)
|
%
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$
|
14.3
|
|
|
$
|
0.9
|
|
|
$
|
91.6
|
|
|
$
|
(27.4)
|
|
|
Depreciation and
amortization
|
3.9
|
|
|
4.4
|
|
|
8.2
|
|
|
8.7
|
|
|
Purchased intangible
amortization
|
1.7
|
|
|
1.9
|
|
|
3.5
|
|
|
5.2
|
|
|
Interest expense on
long term borrowings
|
2.3
|
|
|
3.4
|
|
|
5.7
|
|
|
6.7
|
|
|
Income tax
expense/(benefit)
|
4.2
|
|
|
2.2
|
|
|
29.2
|
|
|
(3.8)
|
|
|
Restructuring
expenses
|
0.0
|
|
|
0.0
|
|
|
1.5
|
|
|
0.0
|
|
|
Contingent
provision
|
0.0
|
|
|
0.2
|
|
|
0.0
|
|
|
0.2
|
|
|
Transaction
costs
|
2.6
|
|
|
0.0
|
|
|
3.6
|
|
|
0.0
|
|
|
Adjusted
EBITDA
|
$
|
28.9
|
|
|
$
|
13.0
|
|
|
$
|
143.3
|
|
|
$
|
(10.4)
|
|
|
Adjusted EBITDA
Margin(1)
|
29
|
%
|
|
17
|
%
|
|
50
|
%
|
|
(9)
|
%
|
|
Shared-based
compensation expense
|
1.6
|
|
|
2.1
|
|
|
3.6
|
|
|
3.8
|
|
|
Credit
EBITDA
|
$
|
30.5
|
|
|
$
|
15.2
|
|
|
$
|
146.9
|
|
|
$
|
(6.6)
|
|
|
|
|
|
Note: Dollars
in millions, except where noted otherwise. Columns may not
add due to rounding.
|
|
1 Adjusted EBITDA Margin is
calculated as Adjusted EBITDA divided by net revenue.
|
Segment Information:
ASC 280, Disclosures about Segments of an Enterprise and
Related Information, establishes standards for reporting
information about operating segments. Operating segments are
defined as components of an enterprise about which separate
financial information is available that is evaluated regularly by
the chief operating decision-maker, or decision making group, in
deciding how to allocate resources and in assessing performance.
Reportable segments are defined as operating segments that either
(a) exceed 10% of revenue, or (b) reported profit or loss
in absolute amount exceed 10% of profit of all operating segments
that did not report a loss or (c) exceed 10% of the combined
assets of all operating segments. Based on the Company's management
strategies, and common production, marketing, development and
client coverage teams, the Company has concluded that it operates
in two operating segments: Retail and Futures.
Retail
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Trading
revenue
|
$
|
88.5
|
|
|
$
|
60.4
|
|
|
$
|
261.6
|
|
|
$
|
84.7
|
|
|
Other retail
revenue
|
2.7
|
|
|
4.3
|
|
|
5.9
|
|
|
8.2
|
|
|
Total
revenue
|
$
|
91.3
|
|
|
$
|
64.7
|
|
|
$
|
267.6
|
|
|
$
|
92.9
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation and benefits
|
17.8
|
|
|
13.5
|
|
|
32.2
|
|
|
26.4
|
|
|
Selling and
marketing
|
7.8
|
|
|
9.9
|
|
|
14.7
|
|
|
19.8
|
|
|
Referral
fees
|
6.4
|
|
|
4.4
|
|
|
15.9
|
|
|
8.8
|
|
|
Other operating
expenses
|
21.6
|
|
|
16.1
|
|
|
43.7
|
|
|
34.4
|
|
|
Segment
profit
|
$
|
37.7
|
|
|
$
|
20.9
|
|
|
$
|
161.1
|
|
|
$
|
3.6
|
|
|
Segment Profit
Margin %
|
41
|
%
|
|
32
|
%
|
|
60
|
%
|
|
4
|
%
|
|
|
|
|
Note: Dollars
in millions, except where noted otherwise. Columns may not
add due to rounding.
|
Futures
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Trading
revenue
|
$
|
8.3
|
|
|
$
|
10.2
|
|
|
$
|
17.7
|
|
|
$
|
18.2
|
|
|
Other futures
revenue
|
0.2
|
|
|
1.4
|
|
|
1.0
|
|
|
2.8
|
|
|
Total
revenue
|
$
|
8.6
|
|
|
$
|
11.7
|
|
|
$
|
18.7
|
|
|
$
|
21.0
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation and benefits
|
2.6
|
|
|
2.8
|
|
|
5.4
|
|
|
5.0
|
|
|
Selling and
marketing
|
0.1
|
|
|
0.2
|
|
|
0.4
|
|
|
0.5
|
|
|
Referral
fees
|
3.1
|
|
|
3.1
|
|
|
6.2
|
|
|
5.8
|
|
|
Other operating
expenses
|
2.4
|
|
|
3.4
|
|
|
5.5
|
|
|
6.7
|
|
|
Segment
profit
|
$
|
0.3
|
|
|
$
|
2.1
|
|
|
$
|
1.2
|
|
|
$
|
3.1
|
|
|
Segment Profit
Margin %
|
4
|
%
|
|
18
|
%
|
|
6
|
%
|
|
15
|
%
|
|
|
|
|
Note: Dollars
in millions, except where noted otherwise. Columns may not
add due to rounding.
|
Corporate and Other
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Revenue/(loss)
|
$
|
1.2
|
|
|
$
|
(0.9)
|
|
|
$
|
0.4
|
|
|
$
|
0.0
|
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
8.2
|
|
|
6.3
|
|
|
15.1
|
|
|
11.5
|
|
|
Other operating
expenses
|
2.1
|
|
|
2.9
|
|
|
4.3
|
|
|
5.8
|
|
|
Loss
|
$
|
(9.1)
|
|
|
$
|
(10.1)
|
|
|
$
|
(19.0)
|
|
|
$
|
(17.4)
|
|
|
|
|
|
Note: Dollars
in millions, except where noted otherwise. Columns may not
add due to rounding.
|
Reconciliation of Segment Profit/(Loss) to Income/(Loss)
Before Income Tax Expense/(Benefit)
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Retail
segment
|
$
|
37.7
|
|
|
$
|
20.9
|
|
|
$
|
161.1
|
|
|
$
|
3.6
|
|
|
Futures
segment
|
0.3
|
|
|
2.1
|
|
|
1.2
|
|
|
3.1
|
|
|
Corporate and
other
|
(9.1)
|
|
|
(10.1)
|
|
|
(19.0)
|
|
|
(17.4)
|
|
|
Segment
profit/(loss)
|
$
|
28.9
|
|
|
$
|
12.8
|
|
|
$
|
143.3
|
|
|
$
|
(10.6)
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
3.9
|
|
|
4.4
|
|
|
8.2
|
|
|
8.7
|
|
|
Purchased intangible
amortization
|
1.7
|
|
|
1.9
|
|
|
3.5
|
|
|
5.2
|
|
|
Restructuring
expense
|
0.0
|
|
|
0.0
|
|
|
1.5
|
|
|
0.0
|
|
|
Transaction
costs
|
2.6
|
|
|
0.0
|
|
|
3.6
|
|
|
0.0
|
|
|
Operating
profit/(loss)
|
$
|
20.7
|
|
|
$
|
6.5
|
|
|
$
|
126.6
|
|
|
$
|
(24.5)
|
|
|
Interest expense on
long term borrowings
|
2.3
|
|
|
3.4
|
|
|
5.7
|
|
|
6.7
|
|
|
Income/(loss)
before income tax expense/(benefit)
|
$
|
18.4
|
|
|
$
|
3.1
|
|
|
$
|
120.8
|
|
|
$
|
(31.3)
|
|
|
|
|
|
Note: Dollars
in millions, except where noted otherwise. Columns may not
add due to rounding.
|
Forward-Looking Statements:
In addition to historical information, this earnings release
contains "forward-looking" statements that reflect management's
expectations for the future. A variety of important factors could
cause results to differ materially from such statements.
These factors are noted throughout GAIN Capital's annual report on
Form 10-K for the year ended December 31, 2019, as filed with
the Securities and Exchange Commission on March 16, 2020, and
include, but are not limited to, the actions of both current and
potential new competitors, fluctuations in market trading volumes,
financial market volatility, evolving industry regulations, errors
or malfunctions in GAIN Capital's systems or technology, rapid
changes in technology, effects of inflation, customer trading
patterns, the success of our products and service offerings, our
ability to continue to innovate and meet the demands of our
customers for new or enhanced products, our ability to successfully
integrate assets and companies we have acquired, our ability to
effectively compete, changes in tax policy or accounting rules,
fluctuations in foreign exchange rates and commodity prices,
adverse changes or volatility in interest rates, as well as general
economic, business, credit and financial market conditions,
internationally or nationally, and our ability to continue paying a
quarterly dividend in light of future financial performance and
financing needs. The forward-looking statements included
herein represent GAIN Capital's views as of the date of this
release. GAIN Capital undertakes no obligation to revise or update
publicly any forward-looking statement for any reason unless
required by law.
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SOURCE GAIN Capital Holdings, Inc.