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INTL FCStone Inc. Reports Fiscal 2012 Third Quarter Financial Results

Stocks in this article: INTL

Record Adjusted Operating Revenues of $124.7 Million

Adjusted Net Income Up 39% From Second Quarter

NEW YORK, Aug. 8, 2012 (GLOBE NEWSWIRE) -- INTL FCStone Inc. (the 'Company') (Nasdaq:INTL) today announced its financial results for the fiscal year 2012 third quarter ended June 30, 2012. Certain financial metrics discussed in this press release are non-GAAP, reflecting marked-to-market differences in the Company's Commodity & Risk Management Services segment. A reconciliation of those metrics to GAAP equivalents is provided in the table below, and further discussion of the use of non-GAAP metrics will be provided in the Company's Form 10-Q to be filed with the Securities and Exchange Commission ("SEC").

Scott Branch, Chief Operating Officer of INTL FCStone stated "While not yet in line with our objectives, continuing improvement in net income resulted from revenue growth in new initiatives, cost control and mildly improved market conditions."

INTL FCStone Inc. Summary Financials

Consolidated financial statements for the Company will be included in the Company's quarterly report on Form 10-Q to be filed with the SEC. The Form 10-Q will also be made available on the Company's website at www.intlfcstone.com.

             
   Three Months Ended June 30,   Nine Months Ended June 30, 
(Unaudited) (in millions, except share and per share amounts) 2012 2011   % Change  2012 2011   % Change 
Operating revenues   $ 123.8  $ 105.4 17 %  $ 339.7  $ 315.1 8 %
Interest expense   2.6  2.0 30 %  8.3  9.1 (9) %
Net revenues   121.2  103.4 17 %  331.4  306.0 8 %
Compensation and benefits   54.6  44.0 24 %  155.5  129.6 20 %
Clearing and related expenses   30.6  18.0 70 %  80.4  58.4 38 %
Introducing broker commissions   7.9  6.3 25 %  21.7  17.7 23 %
Other non-interest expenses   22.2  17.8 25 %  65.0  53.8 21 %
Total non-interest expenses   115.3  86.1 34 %  322.6  259.5 24 %
Income from continuing operations, before tax   5.9  17.3 (66) %  8.8  46.5 (81) %
Income tax expense  1.2  7.0 (83) %  2.2  17.1 (87) %
Income from continuing operations   4.7  10.3 (54) %  6.6  29.4 (78) %
Income from discontinued operations, net of tax   --   --     --   0.2 (100) %
Net income   4.7  10.3 (54) %  6.6  29.6 (78) %
Add: Net loss attributable to noncontrolling interests   --   0.1 (100) %  0.1  0.2 (50) %
Net income attributable to INTL FCStone Inc. common stockholders   $ 4.7  $ 10.4 (55) %  $ 6.7  $ 29.8 (78) %
             
Earnings per share:             
Basic             
Income from continuing operations   $ 0.24  $ 0.58 (59) %  $ 0.35  $ 1.67 (79) %
Income from discontinued operations   --   --     --   0.01 (100) %
Net income attributable to INTL FCStone Inc. common stockholders   $ 0.24  $ 0.58 (59) %  $ 0.35  $ 1.68 (79) %
             
Diluted             
Income from continuing operations   $ 0.23  $ 0.55 (58) %  $ 0.33  $ 1.56 (79) %
Income from discontinued operations   --   --     --   0.01 (100) %
Net income attributable to INTL FCStone Inc. common stockholders   $ 0.23  $ 0.55 (58) %  $ 0.33  $ 1.57 (79) %
             
Weighted average number of common shares outstanding:             
Basic   18,392,823  17,901,613 3 %  18,286,308  17,714,916 3 %
Diluted   19,098,667  19,280,696 (1) %  19,156,471  19,308,661 (1) %
             
Segment operating revenues (non-GAAP) reconciliation:             
Operating revenues, as reported (GAAP)   $ 123.8  $ 105.4 17%  $ 339.7  $ 315.1 8 %
Marked-to-market adjustment   0.9  (1.9) (a)  --   (3.8) (100) %
Adjusted operating revenues (non-GAAP) (b)   $ 124.7  $ 103.5 20 %  $ 339.7  $ 311.3 9 %
             
Represented by:             
Commodity and risk management services   $ 67.9  $ 63.6 7 %  $ 182.7  $ 185.3 (1) %
Foreign exchange   16.5  14.3 15 %  47.4  41.8 13 %
Securities   8.6  5.5 56 %  28.8  23.2 24 %
Clearing and execution services   27.7  15.9 74 %  70.8  51.3 38 %
Other   3.8  3.3 15 %  10.5  9.2 14 %
Corporate unallocated   0.2  0.9 (a)  (0.5)  0.5 (a)
Adjusted operating revenues (non-GAAP) (b)   $ 124.7  $ 103.5 20 %  $ 339.7  $ 311.3 9 %
             
Net income attributable to INTL FCStone Inc. common stockholders (non-GAAP) reconciliation:         
Net income attributable to INTL FCStone Inc. common stockholders, as reported (GAAP)   $ 4.7  $ 10.4 (55) %  $ 6.7  $ 29.8 (78 )%
Exclude income from discontinued operations   --   --     --   (0.2) (100) %
Marked-to-market adjustment (non-GAAP)   0.9  (1.9) (a)  --   (3.8) (100) %
Tax effect on marked-to-market adjustment at blended rate of 37.5%  (non-GAAP)   (0.3)  0.7 (a)  --   1.4 (100) %
Adjusted net income attributable to INTL FCStone Inc. common stockholders from continuing operations (non-GAAP) (c)   $ 5.3  $ 9.2 (42) %  $ 6.7  $ 27.2 (75) %
             
(a) Comparison not meaningful.
(b) Adjusted operating revenue is a non-GAAP measure that represents operating revenues adjusted by marked-to-market differences in the Company's Commodity & Risk Management Services segment, as shown in the table. The table above reflects all reconciling items between the GAAP operating revenues and non-GAAP adjusted operating revenues. For a full discussion of management's reasons for disclosing these adjustments, see 'Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations' in the Form 10-K for the fiscal year ended September 30, 2011.
(c) Adjusted net income attributable to INTL FCStone Inc. common stockholders from continuing operations is a non-GAAP measure that represents net income attributable to INTL FCStone Inc. common stockholders adjusted by the after-tax marked-to-market differences in the Company's Commodity & Risk Management Services segment and the income from discontinued operations, net of tax. The table above reflects all reconciling items between the GAAP net income attributable to INTL FCStone Inc. common stockholders and non-GAAP adjusted net income attributable to INTL FCStone Inc. common stockholders from continuing operations.
             

Conference Call & Web Cast

A conference call will be held tomorrow, Thursday, August 9, 2012 at 9:00 a.m. ET. A live webcast of the conference call as well as additional information to review during the call will be made available in PDF form on-line on the Company's corporate web site at http://www.intlfcstone.com. Participants can also access the call by dialing 1-888-300-2343 (within the United States and Canada), or 1-719-457-2716 (international callers) approximately ten minutes prior to the start time.

A replay of the call will be available at http://www.intlfcstone.com approximately two hours after the call has ended and will be available through August 23, 2012. To access the replay, dial 1-888-203-1112 (within the United States and Canada), or 1-719-457-0820 (international callers) and enter the replay passcode 541 1795.

About INTL FCStone Inc.

INTL FCStone Inc. (INTL) provides execution and advisory services in commodities, currencies and international securities. INTL's businesses, which include the commodities advisory and transaction execution firm FCStone Group, serve more than 20,000 commercial customers in more than 100 countries through a network of offices in twelve countries around the world.

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