Delaware | 001-35008 | 20-4568600 | ||
(State of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
As of December 31, 2014 | ||||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | As Restated | |||||||||||||
ASSETS: | ||||||||||||||||
Cash and cash equivalents | $ | 139,403 | $ | — | $ | (52 | ) | $ | 139,351 | |||||||
Goodwill | 34,567 | (988 | ) | — | 33,579 | |||||||||||
Other assets, net of allowance for doubtful accounts(1) | 35,311 | 917 | (2,463 | ) | 33,765 | |||||||||||
Total assets | $ | 1,185,887 | $ | (71 | ) | $ | (2,515 | ) | $ | 1,183,301 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||||||||||
Liabilities | ||||||||||||||||
Accrued expenses and other liabilities | 64,476 | 12,170 | — | (451 | ) | 76,195 | ||||||||||
Income tax payable | 1,470 | 1,603 | — | (2,063 | ) | 1,010 | ||||||||||
Total liabilities | $ | 910,784 | $ | 13,773 | $ | (2,514 | ) | $ | 922,043 | |||||||
Redeemable non-controlling interests | 10,209 | — | 1,129 | 11,338 | ||||||||||||
Shareholders’ equity | ||||||||||||||||
Accumulated other comprehensive loss | (2,054 | ) | 541 | — | (1,513 | ) | ||||||||||
Additional paid-in capital | 152,684 | (4,306 | ) | — | 148,378 | |||||||||||
Retained earnings | 130,984 | (10,079 | ) | (1,130 | ) | 119,775 | ||||||||||
Total shareholders’ equity | 264,894 | (13,844 | ) | (1,130 | ) | 249,920 | ||||||||||
Total liabilities and shareholders’ equity | $ | 1,185,887 | $ | (71 | ) | $ | (2,515 | ) | $ | 1,183,301 |
For the Fiscal Year Ended December 31, 2014 | |||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | ||||||||||||
REVENUE: | |||||||||||||||
Retail revenue | $ | 293,122 | $ | — | $ | (344 | ) | $ | 292,778 | ||||||
Institutional revenue | 34,518 | — | — | 34,518 | |||||||||||
Futures revenue | 36,160 | — | — | 36,160 | |||||||||||
Total non-interest revenue | 368,704 | — | (344 | ) | 368,360 | ||||||||||
Net revenue | $ | 369,533 | $ | — | $ | (344 | ) | $ | 369,189 | ||||||
EXPENSES: | |||||||||||||||
Employee compensation and benefits | $ | 99,485 | $ | — | $ | (252 | ) | $ | 99,233 | ||||||
Referral fees | 91,092 | — | (120 | ) | 90,972 | ||||||||||
Trading expenses | 26,285 | — | (117 | ) | 26,168 | ||||||||||
General and administrative | 38,509 | — | 142 | 38,651 | |||||||||||
Depreciation and amortization | 7,125 | — | (515 | ) | 6,610 | ||||||||||
Restructuring expenses | 1,214 | — | 1,120 | 2,334 | |||||||||||
Total operating expense | 317,334 | — | 258 | 317,592 | |||||||||||
OPERATING PROFIT | 52,199 | — | (602 | ) | 51,597 | ||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 46,052 | — | (602 | ) | 45,450 | ||||||||||
Income tax (benefit)/expense | 12,993 | 6,200 | (53 | ) | 19,140 | ||||||||||
NET INCOME | 33,059 | (6,200 | ) | (549 | ) | 26,310 | |||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 31,626 | (6,200 | ) | (549 | ) | 24,877 | |||||||||
Other comprehensive (loss)/income: | |||||||||||||||
Foreign currency translation adjustment | (4,630 | ) | 541 | (4,089 | ) | ||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 26,996 | $ | (5,659 | ) | $ | (549 | ) | $ | 20,788 | |||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.76 | $ | (0.16 | ) | $ | (0.04 | ) | $ | 0.56 | |||||
Diluted | $ | 0.71 | $ | (0.14 | ) | $ | (0.04 | ) | $ | 0.53 |
For the Fiscal Year Ended December 31, 2013 | |||||||||||||||
As Reported | Tax Adjustment | Other Adjustments | As Restated | ||||||||||||
REVENUE: | |||||||||||||||
Retail revenue | $ | 215,667 | $ | — | $ | 67 | $ | 215,734 | |||||||
Institutional revenue | 28,005 | — | — | 28,005 | |||||||||||
Futures revenue | 22,188 | — | — | 22,188 | |||||||||||
Total non-interest revenue | 266,959 | — | 67 | 267,026 | |||||||||||
Net revenue | $ | 267,624 | $ | — | $ | 67 | $ | 267,691 | |||||||
EXPENSES: | |||||||||||||||
Employee compensation and benefits | $ | 74,185 | $ | — | $ | 422 | $ | 74,607 | |||||||
Referral fees | 52,503 | — | 120 | 52,623 | |||||||||||
General and administrative | 26,813 | — | (255 | ) | 26,558 | ||||||||||
Depreciation and amortization | 7,768 | — | 515 | 8,283 | |||||||||||
Restructuring expenses | 1,570 | — | (1,120 | ) | 450 | ||||||||||
Total operating expense | 223,286 | — | (318 | ) | 222,968 | ||||||||||
OPERATING PROFIT | 44,338 | — | 385 | 44,723 | |||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 45,105 | — | 385 | 45,490 | |||||||||||
Income tax (benefit)/expense | 13,794 | 3,589 | — | 17,383 | |||||||||||
NET INCOME | 31,311 | (3,589 | ) | 385 | 28,107 | ||||||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | 31,311 | (3,589 | ) | 385 | 28,107 | ||||||||||
NET COMPREHENSIVE INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 32,638 | $ | (3,589 | ) | $ | 385 | $ | 29,434 | ||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.85 | $ | (0.10 | ) | $ | 0.01 | $ | 0.76 | ||||||
Diluted | $ | 0.79 | $ | (0.09 | ) | $ | 0.01 | $ | 0.71 |
Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total | ||||||||||||||||||||||||||||
As Reported | As Restated | As Reported | As Restated | As Reported | As Restated | As Reported | As Restated | ||||||||||||||||||||||||
BALANCE—January 1, 2013 | $ | 85,089 | $ | 85,009 | $ | 84,772 | $ | 84,590 | $ | 1,249 | $ | 1,249 | $ | 162,830 | $ | 162,568 | |||||||||||||||
BALANCE—January 1, 2014 | $ | 138,691 | $ | 134,399 | $ | 108,603 | $ | 105,217 | $ | 2,576 | $ | 2,576 | $ | 234,401 | $ | 226,723 | |||||||||||||||
BALANCE—December 31, 2014 | $ | 152,684 | $ | 148,378 | $ | 130,984 | $ | 119,775 | $ | (2,054 | ) | $ | (1,513 | ) | $ | 264,894 | $ | 249,920 |
For the Fiscal Year Ended December 31, 2014 | |||||||||||
As Reported | Adjustments | As Restated | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 33,059 | $ | (6,749 | ) | $ | 26,310 | ||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | |||||||||||
Depreciation and amortization | 16,367 | (1,677 | ) | 14,690 | |||||||
Non-cash integration costs | — | 1,162 | 1,162 | ||||||||
Deferred tax (benefit)/expense | 2,536 | 2,572 | 5,108 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Cash and securities held for customers | (9,679 | ) | 419 | (9,260 | ) | ||||||
Receivables from brokers | 94,657 | 276 | 94,933 | ||||||||
Prepaid assets | 2,729 | 1 | 2,730 | ||||||||
Other assets | (11,536 | ) | 3,041 | (8,495 | ) | ||||||
Payables to customers | 9,679 | (419 | ) | 9,260 | |||||||
Accrued compensation and benefits | 3,671 | 826 | 4,497 | ||||||||
Accrued expenses and other liabilities | (8,565 | ) | 6,143 | (2,422 | ) | ||||||
Income tax payable | (2,832 | ) | (6,980 | ) | (9,812 | ) | |||||
Cash provided by / (used for) operating activities | 138,173 | (1,385 | ) | 136,788 | |||||||
INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS | 99,532 | (52 | ) | 99,480 | |||||||
CASH AND CASH EQUIVALENTS—End of year | $ | 139,403 | $ | (52 | ) | $ | 139,351 | ||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Adjustment to redemption value of non-controlling interests | $ | (978 | ) | $ | (1,129 | ) | $ | (2,107 | ) |
For the Fiscal Year Ended December 31, 2013 | |||||||||||
As Reported | Adjustments | Restated | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 31,311 | $ | (3,204 | ) | $ | 28,107 | ||||
Adjustments to reconcile net income to cash provided by / (used for) operating activities | |||||||||||
Depreciation and amortization | 11,837 | (648 | ) | 11,189 | |||||||
Non-cash integration costs | — | 1,163 | 1,163 | ||||||||
Deferred tax (benefit)/expense | 39 | (5,470 | ) | (5,431 | ) | ||||||
Stock compensation expense | 2,896 | 79 | 2,975 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Cash and securities held for customers | (74,608 | ) | (161 | ) | (74,769 | ) | |||||
Receivables from brokers | (78,336 | ) | (220 | ) | (78,556 | ) | |||||
Prepaid assets | 318 | — | 318 | ||||||||
Other assets | (383 | ) | (692 | ) | (1,075 | ) | |||||
Payables to customers | 74,608 | 161 | 74,769 | ||||||||
Accrued compensation and benefits | 7,118 | (743 | ) | 6,375 | |||||||
Accrued expenses and other liabilities | 973 | 6,894 | 7,867 | ||||||||
Income tax payable | 2,131 | 2,283 | 4,414 |
For the Three Months Ended Sept 30, 2015 | ||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | |||||||||
REVENUE: | ||||||||||||
Retail revenue | $ | 106,315 | $ | — | $ | 180 | $ | 106,495 | ||||
Total non interest revenue | 127,865 | — | 180 | 128,045 | ||||||||
Net revenue | $ | 127,931 | $ | — | $ | 180 | $ | 128,111 | ||||
EXPENSES: | ||||||||||||
Employee Compensation and benefits | $ | 29,088 | $ | — | $ | (203 | ) | $ | 28,885 | |||
Trading expenses | 8,779 | — | 180 | 8,959 | ||||||||
Total operating expense | 116,146 | — | (23 | ) | 116,123 | |||||||
OPERATING PROFIT | 11,785 | — | 203 | 11,988 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 9,215 | — | 203 | 9,418 | ||||||||
Income tax expense | 328 | 7,534 | — | 7,862 | ||||||||
NET INCOME | 8,887 | (7,534 | ) | 203 | 1,556 | |||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 8,304 | $ | (7,534 | ) | $ | 203 | $ | 973 | |||
Earnings per common share: | ||||||||||||
Basic | $ | 0.20 | $ | 0.05 | ||||||||
Diluted | $ | 0.20 | $ | 0.05 | ||||||||
Weighted average common shares outstanding used in computing earnings per common share: | ||||||||||||
Basic | 49,174,102 | 49,149,102 | ||||||||||
Diluted | 49,891,101 | 49,918,707 |
For the Three Months Ended June 30, 2015 | ||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | |||||||||
REVENUE: | ||||||||||||
Retail revenue | $ | 86,529 | $ | — | $ | (107 | ) | $ | 86,422 | |||
Total non interest revenue | 111,559 | — | (107 | ) | 111,452 | |||||||
Net revenue | $ | 111,564 | $ | — | $ | (107 | ) | $ | 111,457 | |||
EXPENSES: | ||||||||||||
Employee Compensation and benefits | $ | 30,473 | $ | — | $ | 203 | $ | 30,676 | ||||
Trading expenses | 8,226 | — | (107 | ) | 8,119 | |||||||
Total operating expense | 121,548 | — | 96 | 121,644 | ||||||||
OPERATING (LOSS) | (9,984 | ) | — | (203 | ) | (10,187 | ) | |||||
LOSS BEFORE INCOME TAX BENEFIT | (12,538 | ) | — | (203 | ) | (12,741 | ) | |||||
Income tax benefit | (4,124 | ) | (1,915 | ) | — | (6,039 | ) | |||||
NET LOSS | (8,414 | ) | 1,915 | (203 | ) | (6,702 | ) | |||||
NET LOSS APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | (8,830 | ) | $ | 1,915 | $ | (203 | ) | $ | (7,118 | ) | |
Loss per common share: | ||||||||||||
Basic | $ | (0.23 | ) | $ | (0.16 | ) | ||||||
Diluted | $ | (0.23 | ) | $ | (0.16 | ) | ||||||
Weighted average common shares outstanding used in computing earnings per common share: | ||||||||||||
Basic | 49,070,783 | 49,070,387 | ||||||||||
Diluted | 49,070,783 | 49,070,387 |
For the Three Months Ended March 31, 2015 | ||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | |||||||||
REVENUE: | ||||||||||||
Retail revenue | $ | 72,908 | $ | — | $ | 34 | $ | 72,942 | ||||
Total non interest revenue | 92,933 | — | 34 | 92,967 | ||||||||
Net revenue | $ | 92,952 | $ | — | $ | 34 | $ | 92,986 | ||||
EXPENSES: | ||||||||||||
Trading expenses | 7,048 | — | (73 | ) | 6,975 | |||||||
General and administrative | 9,320 | — | 51 | 9,371 | ||||||||
Total operating expense | 79,952 | — | (22 | ) | 79,930 | |||||||
OPERATING PROFIT | 13,000 | — | 56 | 13,056 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 11,498 | — | 56 | 11,554 | ||||||||
Income tax expense | 2,818 | 2,927 | — | 5,745 | ||||||||
NET INCOME | 8,680 | (2,927 | ) | 56 | 5,809 | |||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 8,336 | $ | (2,927 | ) | $ | 56 | $ | 5,465 | |||
Earnings per common share: | ||||||||||||
Basic | $ | 0.19 | $ | 0.11 | ||||||||
Diluted | $ | 0.18 | $ | 0.11 | ||||||||
Weighted average common shares outstanding used in computing earnings per common share: | ||||||||||||
Basic | 43,206,628 | 43,206,628 | ||||||||||
Diluted | 44,150,505 | 44,150,505 |
For the Three Months Ended Dec 31, 2014 | ||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | |||||||||
REVENUE: | ||||||||||||
Retail revenue | $ | 97,254 | $ | — | $ | 432 | $ | 97,686 | ||||
Total non interest revenue | 114,725 | — | 432 | 115,157 | ||||||||
Interest expense | 280 | — | (92 | ) | 188 | |||||||
Total net interest revenue/(expense) | (2 | ) | — | 92 | 90 | |||||||
Net revenue | $ | 114,723 | $ | — | $ | 524 | $ | 115,247 | ||||
EXPENSES: | ||||||||||||
Trading expenses | 6,196 | — | (119 | ) | 6,077 | |||||||
General and administrative | 10,396 | — | (52 | ) | 10,344 | |||||||
Total operating expense | 86,510 | — | (171 | ) | 86,339 | |||||||
OPERATING PROFIT | 28,213 | — | 695 | 28,908 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 26,456 | — | 695 | 27,151 | ||||||||
Income tax expense | 8,398 | 728 | (53 | ) | 9,073 | |||||||
NET INCOME | 18,058 | (728 | ) | 748 | 18,078 | |||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 17,612 | $ | (728 | ) | $ | 748 | $ | 17,632 | |||
Earnings per common share: | ||||||||||||
Basic | $ | 0.44 | $ | 0.42 | ||||||||
Diluted | $ | 0.42 | $ | 0.40 | ||||||||
Weighted average common shares outstanding used in computing earnings per common share: | ||||||||||||
Basic | 41,506,205 | 41,506,205 | ||||||||||
Diluted | 43,684,324 | 43,684,324 |
For the Three Months Ended Sept 30, 2014 | ||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | |||||||||
REVENUE: | ||||||||||||
Retail revenue | $ | 80,668 | $ | — | $ | (602 | ) | $ | 80,066 | |||
Total non interest revenue | 103,388 | — | (602 | ) | 102,786 | |||||||
Interest Expense | 97 | — | 92 | 189 | ||||||||
Total net interest revenue/(expense) | 262 | — | (92 | ) | 170 | |||||||
Net revenue | $ | 103,650 | $ | — | $ | (694 | ) | $ | 102,956 | |||
EXPENSES: | ||||||||||||
General and administrative | 9,056 | — | (111 | ) | 8,945 | |||||||
Total operating expense | 80,684 | — | (111 | ) | 80,573 | |||||||
OPERATING PROFIT | 22,966 | — | (583 | ) | 22,383 | |||||||
INCOME BEFORE INCOME TAX EXPENSE | 21,470 | — | (583 | ) | 20,887 | |||||||
Income tax expense | 5,340 | 3,866 | — | 9,206 | ||||||||
NET INCOME | 16,130 | (3,866 | ) | (583 | ) | 11,681 | ||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 15,345 | $ | (3,866 | ) | $ | (583 | ) | $ | 10,896 | ||
Earnings per common share: | ||||||||||||
Basic | $ | 0.35 | $ | 0.22 | ||||||||
Diluted | $ | 0.33 | $ | 0.21 | ||||||||
Weighted average common shares outstanding used in computing earnings per common share: | ||||||||||||
Basic | 41,038,782 | 41,038,782 | ||||||||||
Diluted | 43,523,862 | 43,523,862 |
For the Three Months Ended June 30, 2014 | ||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | |||||||||
REVENUE: | ||||||||||||
Retail revenue | $ | 51,252 | $ | — | $ | 501 | $ | 51,753 | ||||
Total non interest revenue | 69,504 | — | 501 | 70,005 | ||||||||
Net revenue | $ | 69,763 | $ | — | $ | 501 | $ | 70,264 | ||||
EXPENSES: | — | — | ||||||||||
General and administrative | 9,850 | — | 74 | 9,924 | ||||||||
Purchased intangible amortization | 1,574 | — | (165 | ) | 1,409 | |||||||
Total operating expense | 75,314 | — | (91 | ) | 75,223 | |||||||
OPERATING LOSS | (5,551 | ) | — | 592 | (4,959 | ) | ||||||
LOSS BEFORE INCOME TAX (BENEFIT)/EXPENSE | (7,013 | ) | — | 592 | (6,421 | ) | ||||||
Income tax (benefit) /expense | (2,021 | ) | 95 | — | (1,926 | ) | ||||||
NET LOSS | (4,992 | ) | (95 | ) | 592 | (4,495 | ) | |||||
NET LOSS APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | (5,156 | ) | $ | (95 | ) | $ | 592 | $ | (4,659 | ) | |
Loss per common share: | ||||||||||||
Basic | $ | (0.13 | ) | $ | (0.12 | ) | ||||||
Diluted | $ | (0.13 | ) | $ | (0.12 | ) | ||||||
Weighted average common shares outstanding used in computing earnings per common share: | ||||||||||||
Basic | 40,135,820 | 40,135,820 | ||||||||||
Diluted | 40,135,820 | 40,135,820 |
For the Three Months Ended March 31, 2014 | ||||||||||||
As Reported | Tax Adjustment | Other Adjustments | Restated | |||||||||
REVENUE: | ||||||||||||
Retail revenue | $ | 63,948 | $ | — | $ | (675 | ) | $ | 63,273 | |||
Total non interest revenue | 81,087 | — | (675 | ) | 80,412 | |||||||
Net revenue | $ | 81,397 | $ | — | $ | (675 | ) | $ | 80,722 | |||
EXPENSES: | ||||||||||||
Employee Compensation and benefits | $ | 21,842 | $ | — | $ | (252 | ) | $ | 21,590 | |||
Referral Fees | 20,688 | — | (120 | ) | 20,568 | |||||||
General and administrative | 9,207 | — | 234 | 9,441 | ||||||||
Depreciation and Amortization | 2,210 | — | (515 | ) | 1,695 | |||||||
Purchased intangible amortization | 1,039 | — | 165 | 1,204 | ||||||||
Restructuring | 359 | — | 1,119 | 1,478 | ||||||||
Total operating expense | 74,799 | — | 631 | 75,430 | ||||||||
OPERATING PROFIT | 6,598 | — | (1,306 | ) | 5,292 | |||||||
Interest Expense on Notes Payable | 1,459 | — | — | 1,459 | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 5,139 | — | (1,306 | ) | 3,833 | |||||||
Income tax (benefit) /expense | 1,276 | 1,511 | — | 2,787 | ||||||||
NET INCOME | 3,863 | (1,511 | ) | (1,306 | ) | 1,046 | ||||||
NET INCOME APPLICABLE TO GAIN CAPITAL HOLDINGS, INC. | $ | 3,825 | $ | (1,511 | ) | $ | (1,306 | ) | $ | 1,008 | ||
Earnings per common share: | ||||||||||||
Basic | $ | 0.10 | $ | 0.02 | ||||||||
Diluted | $ | 0.09 | $ | 0.02 | ||||||||
Weighted average common shares outstanding used in computing earnings per common share: | ||||||||||||
Basic | 39,543,586 | 39,543,586 | ||||||||||
Diluted | 42,627,628 | 42,627,628 |
GAIN CAPITAL HOLDINGS, INC. | ||
By: | /s/ Nigel Rose | |
Nigel Rose | ||
Chief Financial Officer |