Beruflich Dokumente
Kultur Dokumente
May 5, 2015
Delivered double digit growth in quarterly revenue, net income and adjusted
EBITDA on a year-over-year basis
Operating Metrics(1)(5)
Retail volume: $798.6 billion (ADV: $12.6 billion) (up 40%)
GTX volume: $1.2 trillion (ADV: $19.6 billion) (up 2%)
Institutional volume: $1.3 trillion (down 1%)
104.7
7.4
107.6
8.6
97.3
99.0
69.2
6.6
62.6
Q1 13
Q1 14
Retail OTC
$457
$165
$117
$340
Q1 13
$464
$496
Q1 14
Q1 15
Retail OTC
Q1 15
Futures
Futures
$9.1
$6.7
Q1 13
Q1 14
Q1 15
5
Note: Definitions for all our operating metrics are available in the appendix to this presentation.
GTX Revenue
$ 9 .9
$ 8 .8
$ 6 .2
Q1 13
Q1 14
Futures Revenue
$ 1 0.4
Q1 15
$ 6 .5
$ 4 .6
Q1 13
Q1 14
Q1 15
Net Income, Adjusted Net Income(2) & Cash Net Income (3)
Adjusted EBITDA
$100
Net Income
$92.9
$90
$14
$81.4
$12.0
$12
$80
$70
$10
$60
$8
$10.3
$8.3
$6.7
$50
$5.5
$6
$40
$30
$4
$19.7
$20
$12.1
$3.8
$2
$10
$0
$0
Q1 2014
Q1 2014
Q1 2015
Institutional
Q1 2015
Futures
Quarterly
Trailing 12 Months
$140
$99.0
$100
$84.5
$80
$71.7
$60
$6.4
$7.8
$46.1
$40
$6.2
$20
$35.3
$57.5
$5.4
$63.6
$17.7
$5.7
$7.0
$50.9
$10.0
$81.0
$6.5
$23.3
$68.8
$94.3
$10.4
$22.7
$95
$100
$80
$89
$80
$15.4
$83
$60
$8.9
$23.5
$61.4
$98
$7.3
$19.7
$113
$120
$115.0
$120
$40
$88.0
$68.5
$66.3
$51.2
$20
$36.4
$0
$0
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
$90
$80.7
$80
$74.8
$75.3
$33.0
$33.1
$8.0
$8.5
$80.0
$70
$60
$40.6
$46.4
$41.7
$50
$40
$9.1
$10.1
$30
$20
$10.8
$33.8
$33.7
$31.0
$30.1
$27.5
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
$10
$0
Variable Expenses
Full achievement of GFT synergies has driven reduction in fixed operating expenses
demonstrating focus on expense management
Core fixed operating expenses in the quarter of $27.5 million down 9% and 19% versus
last quarter and the first quarter a year ago (1), respectively
Total fixed operating expenses down 5% and 9% compared to last quarter and the first
quarter of 2014(2), respectively
Cash: $36mm
Stock: 5.3mm shares
Value at closing: $52mm
Breakdown of Synergies
$250
$ 2 12.4
$ 2 06.9
$ 2 02.0
17%
$200
Overlapping Functions
$ 7 7.5
$ 7 8.3
$150
$ 7 9.7
Consolidation of Office
Locations
13%
Trading Efficiencies
5%
$100
66%
Reduced Software
Development Costs
$ 1 34.9
$ 1 28.6
$ 1 22.3
TTM 9/30/14
LTM 12/31/14
TTM 3/31/15
$50
$0
GAIN
City Index
11
$600
$507.8
$1,200
$1,161
$1,196
$1,184
$1,127
$1,068
$500
$1,000
$360
$356
$334
$300
$308
$400
$800
$300
$600
$200
$130.1
$400
$91.4
$100
$0
Net Revenue
$840
$850
Q1 14
Q2 14
Q3 14
$827
$0
Q1 2015
Adjusted EBITDA
GAIN
Q4 14
Q1 15
City Index
$1,200
180,000
$1,085
160,000
$1,002
$1,000
$286
$800
$760
$200
$21.7
TTM 3/31/2015
$801
$825
$807
148,422
149,235
47,963
46,865
46,156
104,650
101,508
101,557
103,079
107,579
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
140,000
$271
50,853
$220
$235
153,540
149,471
120,000
$724
45,961
100,000
$202
$600
155,503
80,000
$400
$731
$572
$799
$605
$522
60,000
40,000
$200
20,000
$0
Q1 14
Q2 14
Q3 14
GAIN
Q4 14
Q1 15
City Index
Note: Pro forma represents the simple addition of GAIN and City Index results.
(1) Reconciliation of net income to adjusted EBITDA is available in the appendix to this presentation.
GAIN
City Index
12
Closing Remarks
Solid Q1 performance demonstrates ability to grow the retail OTC
business organically
Strengthened competitive position helps drive positive operating
metrics
Successful execution on product and revenue diversification strategies
Addition of City Index adds further scale, diversification and potential for
significant operating expense synergies
13
Appendix
14
Market Conditions
Overall currency volatility improved in the first quarter driven by a range of geo-political and economic
factors coupled with increasing sentiment of interest rate divergence
30
25
20
15
10
0
2008
2009
2010
2011
2012
2013
2014
2015
15
Scale: Pro forma for the City Index acquisition, GAIN Capitals asset base has nearly
tripled in the past 2 years and increased by >4x since IPO
New business lines: Futures, Sales Traders, retail advisory services
Diversification of products: CFDs, spread-bets, futures
Positioned to take on additional acquisitions as consolidator of choice
City Index
(Retail Forex)
Pre-IPO
Post-IPO
FX Solutions
(Retail
Forex)
Fortune Capital
(Retail Forex)
Mar. 18,
2008
MG
Financial
(Retail
Forex)
April 21,
2011
2010
Client Assets:
$257mm
GAA and
Top Third
(Futures)
GFT U.S.
(Retail Forex)
Oct. 30,
2014
March
13, 2014
Feb. 22,
2013
2008
Client Assets:
$124mm
(1)
CMS
(Retail
Forex)
dbFX
(Retail Forex)
Open E Cry
(Futures)
GFT
(Retail Forex
&
Institutional)
Galvan
Research
(Advisory)
Sept. 6,
2012
Dec. 6,
2012
2012
Client Assets:
$446mm
Sept. 24,
2013
April 7,
2014
12/31/14(1)
Client Assets:
$1.1bn
2013
Client Assets:
$739mm
16
66.1
28.2
(1.4)
92.9
0.3
0.3
92.9
22.1
4.6
26.6
7.0
9.3
2.0
2.2
2.8
3.3
0.1
80.0
12.9
1.5
1 1 .4
2.8
8.6
0.3
8 .3
51.2
29.8
0.1
81.1
0.4
0.1
0.3
81.4
21.8
6.1
20.7
6.9
9.2
2.2
1.0
4.0
0.6
0.4
0.4
1.5
74.8
6.6
1.4
5 .2
1.3
3.9
0.1
3 .8
$0.19
$0.10
$0.18
$0.09
43,206,628
39,543,586
44,150,505
42,627,628
17
Note: Dollars in millions, except per share data.
$
$
$
Decem ber 3 1 ,
2014
90.1
826.8
0.2
176.2
17.9
3.0
33.7
58.5
33.0
1,239.4
826.8
5.8
54.4
0.9
69.0
956.9
10.5
272.0
1,239.4
139.4
759.6
0.2
134.9
18.8
2.5
34.6
60.8
35.1
1,185.9
759.6
16.9
64.4
1.5
68.4
910.8
10.2
264.9
1,185.9
18
Current Liquidity
As of
3 /3 1 /1 5
1 2 /3 1 /1 4
$90.1
$139.4
826.8
759.6
0.2
0.2
176.2
134.9
$1,093.3
$1,034.1
(826.8)
(759.6)
$266.5
$274.5
(63.3)
(76.3)
(80.0)
(80.0)
$ 1 2 3 .2
$ 1 1 8 .2
19
Net Revenue
Operating Expenses
Adjusted EBITDA(1)
Net Income
Cash EPS (Diluted) (2)
Adjusted EPS (Diluted) (3)
EPS (Diluted)
Adjusted EBITDA Margin %(1)(3)
Net Income Margin %
$8.3
$0.27
$0.23
$0.18
21%
9%
$3.8
$0.16
$0.13
$0.09
15%
5%
1 5 v '1 4
% C hange
14%
6%
63%
118%
69%
77%
100%
6 pts
4 pts
20
9 2 .9
2014
$
8 1 .4
Net Income
8.3
3.8
9%
5%
N et Incom e
8 .3
3 .8
2.0
2.2
2.2
1.0
Interest expense
1.5
1.4
2.8
1.3
Acquisition costs
0.4
Restructuring
0.4
Integration costs
0.1
1.5
2.5
0.3
0.1
Adjusted EBITDA
Adjusted EBITDA Margin %
$
(1)
1 9 .7
21%
1 2 .1
15%
21
N et Incom e
Depreciation & amortization, net of tax
Purchase intangible amortization, net of tax
Non-cash interest expense, net of tax
C ash N et Incom e
Cash Earnings per Common Share:
Basic
Diluted
$
$
$
$
$
$
$
3 M onths Ende
0.17
0.16
3 M onths Ende
22
N et Incom e
Acquisition costs, net of tax
Restructuring, net of tax
Integration costs, net of tax
Other non-recurring items
Adjusted N et Incom e
Adjusted Earnings per Common Share:
Basic
Diluted
$
$
$
$
$
$
$
3 M onths Ende
0.14
0.13
3 M onths Ende
23
2014
R e ve nue
$37. 2
$27. 9
Ne t I nco me
($3. 7)
($8. 3)
5.5
6.9
One-Time Expenses
0.2
2.5
$2. 0
$1. 1
5%
4%
24
Q1 2 0 1 4
Total Expenses
Less: Referral Fees & Bad Debt
Less: Depreciation & Amortization
Less: Purchased Intangible Amortization
Less: One-time Expenses(1)
Less: Direct expenses from new businesses
Less: Variable Compensation(2)
F ix ed Operating Ex penses
Q2 2 0 1 4
Q3 2 0 1 4
Q4 2 0 1 4
Q1 2 0 1 5
$74.8
(21.3)
(2.2)
(1.0)
$75.3
(21.1)
(1.8)
(1.6)
$80.7
(26.2)
(1.7)
(2.3)
$86.6
(26.2)
(1.4)
(3.3)
$80.0
(29.9)
(2.0)
(2.2)
(2.3)
(8.0)
(0.7)
(8.5)
(1.3)
(9.1)
(3.1)
(10.1)
(0.1)
(10.8)
(6.2)
$ 3 3 .8
(7.9)
$ 3 3 .7
(9.1)
$ 3 1 .0
(12.4)
$ 3 0 .1
(7.5)
$ 2 7 .5
25
GAIN
$369.5
294.9
$ 7 4 .6
20%
CY 2014
C ity Index
Pro F orm a
$129.0
113.1
$ 1 5 .8
12%
$498.5
408.0
$ 9 0 .4
18%
Operating M etrics
Trading Volume
Active Accounts
Client Assets
$2,430.5
103,079
$759.6
$926.9
46,156
$308.2
GAIN
|
|
|
|
|
|
|
$3,357.4 |
149,235 |
$1,067.8 |
$92.9
73.2
$ 1 9 .7
21%
$798.6
107,579
$826.8
Note: Dollars in millions. Pro forma represents the simple addition of GAIN and City Index results.
Q1 2 0 1 5
C ity Index
Pro F orm a
$37.2
35.2
$ 2 .0
5%
$130.1
108.4
$ 2 1 .7
17%
$286.1
45,961
$300.1
LTM M arch 3 1 , 2 0 1 5
GAIN
C ity Index Pro F orm a
|
|
|
|
|
|
|
$369.5
294.9
$ 7 4 .6
20%
$1,084.7 | $2,656.8
153,540 | 107,579
$1,126.9 |
$826.8
$138.3
121.5
$ 1 6 .8
12%
$978.3
45,961
$300.1
$507.8
416.4
$ 9 1 .4
18%
$3,635.1
153,540
$1,126.9
26
($ in m illions)
Total Expenses
Less: Referral Fees & Bad Debt
Less: Depreciation & Amortization
Less: Purchased Intangible Amortization
Less: One-time Expenses(1)
Less: Other Costs of Sales
Less: Direct expenses from new businesses
Less: Variable Compensation(2)
F ix ed Operating Ex penses
(5.5)
$ 7 8 .3
Note: Dollars in millions. Pro forma represents the simple addition of GAIN and City Index results.
(1) Includes acquisition costs, restructuring costs, integration costs and impairment on investment.
(2) Includes sales commissions paid to employees and the variable portion of bonus expense.
(41.1)
$ 2 0 6 .9
GAIN
$80.0
(29.9)
(2.0)
(2.2)
(0.1)
(10.8)
Q1 2 0 1 5
C ity Index
$40.9
(10.1)
(5.5)
(0.2)
(1.4)
-
Pro F orm a
$120.9
(40.0)
(7.5)
(2.2)
(0.3)
(1.4)
(10.8)
(7.5)
$ 2 7 .5
(3.9)
$ 1 9 .7
(11.4)
$ 4 7 .2
27
M ar-1 4
Jun-1 4
3 M onths Ended,
Sep-1 4
Dec-1 4
M ar-1 5
Retail M etrics
OTC Trading Volume
Average Daily Volume
$572.3
$9.1
$522.2
$8.0
$605.4
$9.2
$730.6
$11.2
$798.6
$12.6
97,253
94,261
93,777
94,895
99,017
Customer Assets
$635.3
$663.6
$641.3
$562.9
$599.0
$1,353.6
$21.4
$1,348.7
$20.7
$1,181.0
$17.9
$1,234.7
$19.0
$1,328.3
$21.1
GTX Volume
Average Daily GTX Volume
$1,212.4
$19.2
$1,237.0
$19.0
$1,089.0
$16.5
$1,143.9
$17.6
$1,232.3
$19.6
1,572,465
24,960
1,710,944
26,322
1,764,586
26,736
1,979,013
30,446
2,381,073
39,034
7,397
7,247
7,780
8,184
8,562
$165.4
$176.4
$208.4
$196.7
$227.8
Institutional M etrics
Note: Definitions for all our operating metrics are available on page 29.
28
Definition of Metrics
Active Accounts
Retail accounts who traded in the trailing 12 months
Trading Volume
Represents the U.S. dollar equivalent of notional amounts
traded
Futures Contracts
Represents the total contracts transacted by customers of
GAINs futures division
Client Assets
Represents amounts due to clients, including customer
deposits and unrealized gains or losses arising from open
positions
29