Gain Capital Holdings, Inc. (GCAP) has reported a 90.83 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $20.80 million, or $0.42 a share in the quarter, compared with $10.90 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $20.80 million, or $0.43 a share compared with $7.20 million or $0.15 a share, a year ago.
Revenue during the quarter grew 12.65 percent to $115.80 million from $102.80 million in the previous year period. Total expenses were 74.61 percent of quarterly revenues, down from 97.28 percent for the same period last year. This has led to an improvement of 2266 basis points in operating margin to 25.39 percent.
Operating income for the quarter was $29.40 million, compared with $2.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $36.90 million compared with $21.40 million in the prior year period. At the same time, adjusted EBITDA margin improved 1105 basis points in the quarter to 31.87 percent from 20.82 percent in the last year period.
"GAIN Capital closed out a milestone year with a strong fourth quarter performance, as increased trading volatility and continued progress scaling and diversifying our business helped drive record quarterly adjusted EBITDA," commented Glenn Stevens, chief executive officer of GAIN Capital. "We are pleased that we have completed a successful integration of the City Index business, exceeding our $45 million cost synergy targets, while optimizing the combined business to realize meaningful margin expansion. Looking forward, with our solid balance sheet, strong brands and global reach, we are well positioned to grow the business both organically and inorganically and further our long-term objective of growing market share leadership in our retail, institutional and futures businesses."
Debt moves up marginally
Gain Capital Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $124.80 million as on Dec. 31, 2016, up 2.55 percent or $3.10 million from $121.70 million on Dec. 31, 2015. Total debt was 8.73 percent of total assets as on Dec. 31, 2016, compared with 8.54 percent on Dec. 31, 2015. Debt to equity ratio was at 0.42 as on Dec. 31, 2016, up from 0.40 as on Dec. 31, 2015. Interest coverage ratio improved to 11.31 for the quarter from 1.08 for the same period last year.
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