GAIN Capital Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Tax Rate Guidance for the Full Year of 2018
July 27, 2018 at 01:35 am IST
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GAIN Capital Holdings, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net revenue of $84.2 million compared to $90.6 million a year ago. Operating profit was $10 million compared to $17.8 million a year ago. Income before income tax benefit was $6.6 million compared to $15.1 million a year ago. Net income from continuing operations was $6.8 million or $0.13 per basic and diluted share compared to $13.5 million or $0.30 per basic and diluted share a year ago. Net income applicable to the company was $67.1 million or $1.47 per diluted share compared to $13.9 million or $0.31 per basic and diluted share a year ago. Adjusted pre-tax income was $6.6 million against $15.1 million a year ago. Adjusted net income was $4.4 million or $0.10 per basic and diluted share compared to $11.3 million or $0.24 per basic and diluted share a year ago. Adjusted EBITDA was $19 million compared to $25.7 million a year ago.
For the six months period, the company reported net revenue of $182.5 million compared to $141.8 million a year ago. Operating profit was $32.9 million compared to operating loss of $3.9 million a year ago. Income before tax income tax was $26.2 million compared to loss before tax benefit of $9.3 million a year ago. Net income from continuing operations was $18.7 million or $0.38 per diluted share compared to net loss from continuing operations of $4.9 million or $0.09 per basic and diluted share a year ago. Net income applicable to the company was $83.2 million or $1.81 per diluted share compared to net loss applicable to the company of $4.9 million or $0.08 per basic and diluted share a year ago. Adjusted pre-tax income was $26.1 million against adjusted pre-tax loss of $9.3 million a year ago. Adjusted net income was $18.4 million or $0.40 per diluted share compared to adjusted net loss of $7.4 million or $0.15 per basic and diluted share a year ago. Adjusted EBITDA was $50.8 million compared to $11 million a year ago.
For the full year of 2018, the company expects continuing operations to be approximately 27% to 28%. Including the GTX results from the first half of 2018 and accounting for one-off costs related to the sale of the business, the company expects the full year rate for 2018 for the combined business to be approximately 14%.
Bridging from company's previous tax guidance of 18% for full year 2018, the company has adjusted to account for a 9% to 10% increase for 2 reasons: Firstly, the U.S. is turning profitable this year as compared to a previous expectation of a small loss; and secondly, the sale of company's GTX Bermuda operation, which was taxed at 0%.
GAIN Capital Holdings, Inc. (GAIN) provides active traders and institutions with liquidity, technology and service to trade global markets. The Company is a provider of trading services and solutions, specializing in over-the-counter (OTC) and exchange-traded markets. The Company's segments include Retail and Futures. Through its retail segment, the Company provides its retail customers across the world with access to a range of global financial markets, including spot forex, precious metals, spread bets and contracts for difference (CFDs) on commodities, indices, individual equities and interest rate products, as well OTC options on forex. Its futures segment offers execution and risk management services for exchange-traded futures and futures options on the United States and European exchanges.
GAIN Capital Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Tax Rate Guidance for the Full Year of 2018