8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

July 10, 2008

Date of Report (Date of earliest event reported)

FCStone Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-33363	42-1091210
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

10330 NW Prairie View Road, Kansas City, Missouri 64153

(Address of principal executive offices) (Zip Code)

(800) 255- 6381

Registrant’s telephone number, including area code

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 10, 2008, FCStone Group, Inc. announced its results of operations and financial condition for the quarter ended May 31, 2008. The public announcement was made by means of a press release, the text of which is set forth in Exhibit 99.1 hereto.

The information in this Item of this current report on Form 8-K, including the exhibit, is being furnished and shall not be deemed “filed” for the purposes of or otherwise subject to liabilities under Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

Number	Description
99.1	Press Release, dated July 10, 2008

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FCSTONE GROUP, INC.
Dated: July 10, 2008
	By:	/s/ William J. Dunaway
		William J. Dunaway
		Chief Financial Officer

3

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press Release, dated July 10, 2008

4

EX-99.1

Exhibit 99.1

Investor Inquiries:

Bill Dunaway, 816-457-6246

billd@fcstone.com

FCStone Group, Inc. Reports Strong Third Quarter Revenues

Kansas City, Mo., July 10, 2008 – FCStone Group, Inc. (NASDAQ: FCSX), a commodity risk management firm, today announced higher year-over-year revenues and net income from continuing operations for its third fiscal quarter ending May 31, 2008.

Third Quarter Results

Revenues, net of cost of commodities sold, a non-GAAP financial measure, were $83.4 million in the three months ended May 31, 2008, compared to $64.5 million in the prior year quarter, an increase of 29%. Net income decreased slightly to $8.0 million, or $0.28 per diluted share, for the third quarter, compared to $8.1 million, or $0.29 per diluted share, in the prior year quarter.

Net income from continuing operations increased to $8.4 million, or $0.29 per diluted share for the third quarter, compared to $8.2 million, or $0.29 per diluted share, in the prior year quarter.

Results for the three months ended May 31, 2008 includes an after tax reduction in net income of $4.2 million, or $0.14 per diluted share. This after tax reduction in net income included a $1.1 million net bad debt write off primarily related to the consequences of unprecedented synthetic settlement pricing in the cotton market, and a $3.1 million decline in the fair value of interest rate derivative hedge instruments which had the effect of reversing previously recognized unrealized gains. These derivative instruments were liquidated during the three months ended May 31, 2008 and were entered into to manage FCStone’s consolidated exposure to short term interest rates. Excluding these items, net income for the three months ended May 31, 2008 would have been $12.2 million, or $0.42 per diluted share.

The following table presents results on a total and per share basis.

Financial Highlights

(In thousands, except per share amounts)

	Three Months Ended May 31,					Nine Months Ended May 31,
	2007		2008			2007			2008
NON GAAP-Revenues, net of cost of commodities sold	$	64,469	$	83,384		$	182,003		$	248,230
Income from continuing operations before income tax expense	$	13,044	$	13,221		$	34,291		$	62,791
Net income from continuing operations	$	8,169	$	8,371		$	21,491		$	39,291
Loss from discontinued operations, net of tax	$	100	$	364		$	188		$	6,083
Net income	$	8,069	$	8,007		$	21,303		$	33,208
Diluted weighted average shares outstanding		27,938		29,059			23,771			28,968
Diluted earnings per share, continuing operations	$	0.29	$	0.29		$	0.90		$	1.36
Diluted earnings (loss) per share, discontinued operations		—		(0.01	)		(0.01	)		(0.21	)
Diluted earnings per share	$	0.29	$	0.28		$	0.89		$	1.15

The increase in third quarter revenues, net of cost of commodities sold, from the prior year third quarter was driven by significantly higher exchange traded and over-the-counter (OTC) volumes. This growth was primarily related to continued volatility in the grain, energy, metals, and soft commodity markets and higher OTC volumes from the company’s energy, renewable fuels and Brazilian customers. These increases have been partially offset by lower interest income due to both significantly lower short term interest rates and the fair value decline of interest derivative hedge instruments, although interest income was positively influenced by higher customer segregated and over-the-counter deposits.

Costs and expenses, exclusive of cost of commodities sold, were higher compared to the prior year primarily due to higher volume-related costs of broker commissions and pit brokerage and clearing fees.

Commission and clearing fees revenues, and service, consulting and brokerage fees for the three months ended May 31, 2008 increased by 65% over the prior year quarter and 9% over the quarter ended February 29, 2008 driven by continued growth in both the Commodity and Risk Management and Clearing and Execution segments.

“Despite a continuing difficult macroeconomic environment, FCStone experienced continued growth in our core business segments during our third fiscal quarter,” said Pete Anderson, President and Chief Executive Officer of FCStone. “This positive business momentum is most evident in our continued transactional and consulting fee revenue growth for the Commodity and Risk Management segment. This cornerstone of our business continues to show strong growth as a result of our consultants and their industry expertise. Given the increasingly volatile environment, we are encouraged by the progress to date and continue to anticipate growth through assistance to our customers in managing market risks.”

Year-To-Date Results

Revenues, net of cost of commodities sold, a non-GAAP financial measure, were $248.2 million for the first nine months of fiscal year 2008, compared to $182.0 million during the same period of fiscal year 2007, an increase of 36%. Net income increased 56% to $33.2 million for the first nine months of fiscal year 2008, or $1.15 per diluted share, compared to $21.3 million, or $0.89 per diluted share during the same period of fiscal year 2007.

Net income from continuing operations increased to $39.3 million, or $1.36 per diluted share for the first nine months of fiscal year 2008, compared to $21.5 million, or $0.90 per diluted share during the same period of fiscal year 2007.

“As anticipated, the market interest rate environment continued to move downward during our third fiscal quarter,” said Bill Dunaway, Chief Financial Officer. “We believe that this recent quarter has realized the most severe effects from those changing rates. Despite this challenging interest rate environment, we are pleased to report continued strong growth in both over-the-counter and exchange based revenues, as well as significant increases in investable assets. We believe this core business momentum will continue to deliver strong growth for FCStone going forward.”

Operating Segments

FCStone’s income (loss) from continuing operations before minority interest and income tax expense by segment and certain other data are outlined below for the periods noted.

	Three Months Ended May 31,						Nine Months Ended May 31,
	2007			2008			2007			2008
	($ in thousands)
Segment Data:
Income (loss) from continuing operations before minority interest and income tax expense:
Commodity and Risk Management Services	$	9,921		$	15,351		$	26,638		$	54,278
Clearing and Execution Services		3,801			1,260			10,841			15,072
Financial Services		557			656			1,004			1,183
Grain Merchandising		670			—			2,130			—
Corporate and Other		(1,704	)		(4,096	)		(5,683	)		(7,792	)
	$	13,245		$	13,171		$	34,930		$	62,741
Other Data:
EBITDA (1)	$	16,080		$	15,219		$	44,696		$	68,531
Exchange contract trading volume (in millions)		14.2			26.6			40.5			77.1
Customer Segregated Assets, end of period	$	913,584		$	1,386,595		$	913,584		$	1,386,595

In the Commodity and Risk Management Services segment, revenues, net of cost of commodities sold, were $44.4 million in the third quarter ended May 31, 2008, compared to $28.9 million in the prior year quarter, an increase of 54%. Segment income before minority interest and income tax for the third quarter 2008 increased to $15.4 million, compared to $9.9 million in the prior year quarter.

For the Clearing and Execution Services segment, revenues, net of cost of commodities sold, were $36.5 million in the third quarter ended May 31, 2008, compared to $27.5 million in the prior year quarter, an increase of 33%. The segment made $1.3 million in the third quarter, compared to a net income of $3.8 million in the prior year quarter.

The Financial Services segment reported revenues, net of cost of commodities sold, of $2.4 million in the third quarter ended May 31, 2008, compared to $2.6 million in the prior year quarter, a decrease of 8%. Segment income increased to $656 thousand for the third quarter, compared to $557 thousand in the prior year quarter.

Our Corporate and Other segment includes income from our minority interest in a grain merchandising business, which amounted to $0.4 million for the three months ended May 31, 2008 and $2.3 million for the nine months ended May 31, 2008.

Business Outlook

Commenting on the Company’s year to date results and expectations, Anderson said, “Our customers’ need for prudent risk management programs has never been greater, particularly as stress points continue to build across virtually every commodity market. We continue to advise and provide increased value for our customers amidst market conditions of increased volatility and more stringent credit conditions. We recognize the headwinds for all of our customers and continue to manage the business in a method to increase shareholder value while further allowing for adequate financing in the agricultural and energy markets.”

Conference Call & Web Cast

A conference call will be held today, Thursday, July 10, 2008 at 11:00 a.m. (ET). A live web cast of the conference call as well as a replay will be available online on the Company’s corporate web site at http://www.fcstone.com. Participants can also access the call by dialing 800-257-6607 (within the United States and Canada), or 303-262-2053 (international callers). A replay of the call will be available approximately two hours after the call has ended and will be available until 11:59 p.m. (CT) on Saturday, August 9, 2008. To access the replay, dial 800-405-2236 (within the United States and Canada), or 303-590-3000 (international callers) and enter the conference ID number: 11116686#.

About FCStone Group, Inc.

FCStone Group, Inc., along with its affiliates, is an integrated commodity risk management company providing risk management consulting and transaction execution services to commercial commodity intermediaries, end-users and producers. The firm assists primarily middle market customers in optimizing their profit margins and mitigating exposure to commodity price risk. In addition to risk management consulting services, FCStone, LLC, operates one of the leading independent clearing and execution platforms for exchange-traded futures and options contracts. FCStone Group, Inc., serves more than 7,500 customers and in the 12 months ended May 31, 2008, executed 98.8 million derivative contracts in the exchange-traded and over-the-counter markets. The FCStone Group companies work in all the major commodity areas including agriculture, energy, renewable fuels, foods, forestry, cotton and textile, dairy and currency exchange. Headquartered in the Midwest, it has offices located throughout the world and is a clearing member of all major North American Futures exchanges. FCStone Group, Inc., trades on the NASDAQ Global Select Market under the symbol “FCSX.”

Forward Looking Statements

This press release may include forward-looking statements regarding, among other things, our plans, strategies and prospects, both business and financial. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words “believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,” “could,” “intend,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms and similar expressions, as they relate to FCStone Group, Inc., are intended to identify forward-looking statements.

We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the Company’s filings with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the forward-looking statements in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. When you consider these forward-looking statements, you should keep in mind these risk factors and other cautionary statements in this press release.

Our forward-looking statements speak only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of NON-GAAP Financial Information

In this press release we disclose “revenues, net of cost of commodities sold”, and “EBITDA”, both of which are non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure, calculated and prepared in accordance with generally accepted accounting principles in the United Sates (GAAP). Revenues, net of cost of commodities sold, is not a substitute for the GAAP measure of total revenues. EBITDA is not a substitute for the GAAP measure of net income or cash flows. Such non-GAAP financial measures are reconciled to its closest GAAP measure, in accordance with the Securities and Exchange Commission rules, and are included in the attached supplemental data. Management believes that these non-GAAP financial measures are useful to both management and its stockholders in their analysis of the company’s business and operating performance.

Financial Statements to Follow

FCSTONE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share amounts)

	Three Months Ended May 31,						Nine Months Ended May 31,
	2007			2008			2007			2008
Revenues:
Commissions and clearing fees	$	35,291		$	49,426		$	101,547		$	134,876
Service, consulting and brokerage fees		10,743			26,627			29,152			66,629
Interest		12,045			5,296			31,172			37,535
Other		1,046			1,632			2,580			8,267
Sales of commodities (1)		303,866			608			1,101,752			1,958
Total revenues		362,991			83,589			1,266,203			249,265
Costs and expenses:
Cost of commodities sold		298,522			205			1,084,200			1,035
Employee compensation and broker commissions		11,469			18,098			34,624			46,542
Pit brokerage and clearing fees		17,640			27,385			47,182			73,562
Introducing broker commissions		8,832			8,818			25,208			24,893
Employee benefits and payroll taxes		2,883			3,882			8,252			9,812
Interest		2,579			1,394			9,069			4,404
Depreciation and amortization		457			604			1,336			1,336
Bad debt expense		92			1,721			1,632			1,905
Other expenses		7,272			8,311			19,770			23,035
Total costs and expenses		349,746			70,418			1,231,273			186,524
Income from continuing operations before income tax expense and minority interest		13,245			13,171			34,930			62,741
Minority interest		201			(50	)		639			(50	)
Income from continuing operations before income tax expense		13,044			13,221			34,291			62,791
Income tax expense		4,875			4,850			12,800			23,500
Net income from continuing operations		8,169			8,371			21,491			39,291
Loss from discontinued operations, net of tax		(100	)		(364	)		(188	)		(6,083	)
Net income	$	8,069		$	8,007		$	21,303		$	33,208
Basic shares outstanding		26,892			27,894			23,516			27,676
Diluted shares outstanding		27,938			29,059			23,771			28,968
Basic earnings (loss) per share:
Continuing operations	$	0.30		$	0.30		$	0.91		$	1.42
Discontinued operations		—			(0.01	)		—			(0.22	)
Net income	$	0.30		$	0.29		$	0.91		$	1.20
Diluted earnings (loss) per share:
Continuing operations	$	0.29		$	0.29		$	0.90		$	1.36
Discontinued operations		—			(0.01	)		(0.01	)		(0.21	)
Net income	$	0.29		$	0.28		$	0.89		$	1.15

(1) On June 1, 2007 the Company sold a majority interest in FGDI, LLC, which represented our entire Grain Merchandising segment. Subsequent to such sale, the company retained a 25% interest in FGDI, LLC which is now accounted for on the equity method and included in other revenues. Sales of commodities included $298.8 million and $1,077.9 million from FGDI, LLC during the three and nine months ended May 31, 2007, respectively.

FCSTONE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(in thousands, except share amounts)

	August 31, 2007			May 31, 2008
				(Unaudited)
ASSETS
Cash and cash equivalents:
Unrestricted	$	90,053		$	56,317
Segregated		14,250			9,229
Commodity deposits and receivables:
Commodity exchanges and clearing organizations—customer segregated		686,441			1,431,836
Proprietary commodity accounts		77,690			205,433
Receivables from customers, net of allowance for doubtful accounts		16,868			52,743
Total commodity deposits and receivables		780,999			1,690,012
Marketable securities, at fair value—customer segregated and other		307,828			12,868
Counterparty deposits and trade accounts receivable, net of allowance for doubtful accounts		20,746			129,637
Open contracts receivable		120,219			392,280
Notes receivable and advances		49,291			73,978
Exchange memberships and stock		10,366			6,961
Plant, equipment, furniture, software and improvements, net of accumulated depreciation		4,763			6,965
Assets held for sale		—			5,712
Other assets		21,679			42,309
Total assets	$	1,420,194		$	2,426,268
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Commodity and customer regulated accounts payable	$	935,515		$	1,447,459
Trade accounts payable and advances		115,145			218,227
Open contracts payable		121,101			402,193
Accrued expenses		38,632			43,883
Notes payable and repurchase obligations		35,133			91,312
Subordinated debt		1,000			1,000
Total liabilities		1,246,526			2,204,074
Minority interest		—			4,950
Stockholders’ equity:
Common stock, $0.0001 par value, authorized 40,000,000 at August 31, 2007 and May 31, 2008, respectively; issued and outstanding 27,416,567 and 27,997,127 shares at August 31, 2007 and May 31, 2008, respectively		104,267			107,918
Additional paid-in capital		1,115			9,557
Treasury stock		(376	)		(387	)
Accumulated other comprehensive loss		(3,620	)		(5,042	)
Retained earnings		72,282			105,198
Total stockholders’ equity		173,668			217,244
Commitments and contingencies
Total liabilities and stockholders’ equity	$	1,420,194		$	2,426,268

FCSTONE GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

	Nine Months Ended May 31,
	2007			2008
Cash flows from operating activities:
Net income	$	21,303		$	33,208
Plus: Loss from discontinued operations		188			6,083
Income from continuing operations		21,491			39,291
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		1,336			1,336
Amortization of discount on note receivable		(41	)		(9	)
Loss on cancellation of warrants		—			110
Gain on sale of exchange memberships and stock		(105	)		(3,162	)
Gain on sale of other assets		—			(923	)
Stock compensation		—			1,227
Equity in earnings of affiliates, net of distributions		96			(1,770	)
Minority interest		639			(50	)
Excess tax benefit of stock option exercises		—			(7,632	)
Change in commodity accounts receivable/payable, marketable securities, customer segregated funds, counterparty deposits and advances, net		(5,150	)		(97,956	)
Change in open contracts receivable/payable, net		(1,542	)		9,031
Decrease in trade accounts receivable and advances on grain		5,218			708
Increase in other assets		(32,452	)		(6,007	)
Decrease in trade accounts payable		(509	)		(5,121	)
(Decrease) increase in accrued expenses		(5,302	)		8,250
Net cash used in operating activities	$	(16,321	)		(62,677	)
Cash flows from investing activities:
Purchase of equipment, furniture, software and improvements		(1,982	)		(3,538	)
Purchase of marketable securities		(25,000	)		—
Acquisitions of businesses		—			(6,725	)
Issuance of notes receivable, net		(23,588	)		(20,683	)
Proceeds from the sale of exchange memberships and stock		378			4,180
Purchase of exchange memberships and stock		(1,855	)		—
Proceeds from the sale of other intangibles		—			1,958
Purchase of other intangibles		—			(1,049	)
Net cash used in investing activities		(52,047	)		(25,857	)
Cash flows from financing activities:
Decrease in checks written in excess of bank balance		(1,656	)		—
Proceeds from notes payable, net		39,815			37,569
Proceeds from exercises of stock options		—			3,651
Proceeds from initial public offering, net		129,670			—
Proceeds from issuance of common stock		550			—
Proceeds from issuance of subsidiary stock, net of costs		—			4,583
Excess tax benefit of stock option exercises		—			7,632

Treasury stock acquired		—			(11	)
Payment for redemption of common stock		(48,486	)		—
Dividends paid		(6,057	)		—
Payments under capital lease held for sale		(412	)		—
Proceeds from subordinated debt		8,000			15,000
Payments on subordinated debt		(14,000	)		(15,000	)
Monies released from escrow		(54	)		—
Monies deposited in escrow		2,526			—
Net cash provided by financing activities		109,896			53,424
Cash flows used for discontinued operations:
Net cash from operating activities		—			3,085
Net cash used in investing activities		—			(1,711	)
Net cash from discontinued operations		—			1,374
Net decrease in cash and cash equivalents – unrestricted		41,528			(33,736	)
Cash and cash equivalents – unrestricted – beginning of period		51,659			90,053
Cash and cash equivalents – unrestricted – end of period	$	93,187		$	56,317
Supplemental disclosures of cash flow information:
Interest paid	$	8,663		$	4,437
Income taxes paid	$	13,371		$	20,457

Non-GAAP Financial Measures

The following table reconciles revenues, net of cost of commodities sold, with our total revenues.

	Three Months Ended				Nine Months Ended
	May 31, 2007		May 31, 2008		May 31, 2007		May 31, 2008
	($ in thousands)
Revenues:
Commissions and clearing fees	$	35,291	$	49,426	$	101,547	$	134,876
Service, consulting and brokerage fees		10,743		26,627		29,152		66,629
Interest		12,045		5,296		31,172		37,535
Other		1,046		1,632		2,580		8,267
Sales of commodities		303,866		608		1,101,752		1,958
Total revenues		362,991		83,589		1,266,203		249,265
Less: Cost of commodities sold		298,522		205		1,084,200		1,035
Revenues, net of cost of commodities sold	$	64,469	$	83,384	$	182,003	$	248,230

The following table reconciles EBITDA with our net income.

	Three Months Ended				Nine Months Ended
	May 31, 2007		May 31, 2008		May 31, 2007		May 31, 2008
	($ in thousands)
Net income:	$	8,069	$	8,007	$	21,303	$	33,208
Plus: interest expense		2,579		1,394		9,069		4,404
Plus: depreciation and amortization		457		604		1,336		1,336
Plus: income tax expense		4,875		4,850		12,800		23,500
Plus: loss on discontinued operations, net of tax		100		364		188		6,083
EBITDA	$	16,080	$	15,219	$	44,696	$	68,531

Commodity and Risk Management Services Segment:

The following table provides the financial performance for this segment.

	Three Months Ended May 31,				Nine Months Ended May 31,
	2007		2008		2007		2008
	($ in thousands)
Sales of commodities	$	1,265	$	608	$	3,807	$	1,958
Cost of commodities sold		1,262		205		3,722		1,035
Gross profit on commodities sold		3		403		85		923
Commissions and clearing fees		12,151		16,062		38,090		42,379
Service, consulting and brokerage fees		10,873		26,733		29,548		66,940
Interest		5,793		1,140		14,181		14,788
Other revenues (1)		41		24		147		3,103
Revenues, net of cost of commodities sold		28,861		44,362		82,051		128,133
Other costs and expenses:
Expenses (excluding interest expense)		18,853		28,735		55,129		73,522
Interest expense		87		276		284		333
Total costs and expenses (excluding cost of commodities sold)		18,940		29,011		55,413		73,855
Segment income before minority interest and income taxes (1)	$	9,921	$	15,351	$	26,638	$	54,278
Exchange contract trading volume (millions)		0.8		0.9		2.2		2.4
OTC Contract volume		176,266		294,041		462,510		965,636

(1) Amounts for the nine months ended May 31, 2008, includes $2.9 million from the gain on the sale of exchange stock and trading rights.

Clearing and Execution Segment:

The following table provides the financial performance for this segment.

	Three Months Ended May 31,				Nine Months Ended May 31,
	2007		2008		2007		2008
	($ in thousands)
Sales of commodities	$	—	$	—	$	—	$	—
Cost of commodities sold		—		—		—		—
Gross profit on commodities sold		—		—		—		—
Commissions and clearing fees		23,254		33,527		63,953		93,179
Service, consulting and brokerage fees		—		—		—		—
Interest		4,237		2,515		11,722		16,849
Other revenues		5		425		105		425
Revenues, net of cost of commodities sold		27,496		36,467		75,780		110,453
Other costs and expenses:
Expenses (excluding interest expense)		23,587		35,193		64,367		95,326
Interest expense		108		14		572		55
Total costs and expenses (excluding cost of commodities sold)		23,695		35,207		64,939		95,381
Segment income before minority interest and income taxes	$	3,801	$	1,260	$	10,841	$	15,072
Exchange contract trading volume (millions)		13.4		25.7		38.2		74.6

Financial Services Segment:

The following table provides the financial performance for this segment.

	Three Months Ended May 31,				Nine Months Ended May 31,
	2007		2008		2007		2008
	($ in thousands)
Sales of commodities	$	3,849	$	—	$	20,006	$	—
Cost of commodities sold		3,835		—		19,904		—
Gross profit on commodities sold		14		—		102		—
Commissions and clearing fees		—		—		—		—
Service, consulting and brokerage fees		—		—		—		—
Interest		1,903		1,569		6,061		5,469
Other revenues		653		806		1,335		2,372
Revenues, net of cost of commodities sold		2,570		2,375		7,498		7,841
Other costs and expenses:
Expenses (excluding interest expense)		542		596		1,621		2,500
Interest expense		1,471		1,123		4,873		4,158
Total costs and expenses (excluding cost of commodities sold)		2,013		1,719		6,494		6,658
Segment income (loss) before minority interest and income taxes	$	557	$	656	$	1,004	$	1,183

Quarterly Financial Highlights:

The following table provides summary financial highlights

Trending by quarter for fiscal year 2008.

	Three Months Ended
	November 30, 2007		February 29, 2008		May 31, 2008
	($ in thousands)
NON GAAP-Revenues, net of cost of commodities sold	$	73,634	$	91,212	$	83,384
Income from continuing operations before income tax expense (1)	$	21,081	$	28,489	$	13,221
Net income from continuing operations (1)	$	13,131	$	17,789	$	8,371
Loss from discontinued operations, net of tax	$	46	$	5,673	$	364
Net income (1)	$	13,085	$	12,116	$	8,007

(1) The three months ended November 30, 2007 included a pre-tax gain on the sale of exchange stock and trading rights of $2.9 million. The three months ended November 30, 2007 and February 29, 2008 included pre-tax gains related to interest rate derivative contracts of $0.7 million and $4.4 million, respectively. The three months ended May 31, 2008 included pre-tax losses related to interest rate derivative contracts of $5.0 million.

Without these items, our first quarter income from continuing operations before income tax expense would have been $17.5 million, net income from continuing operations would have been $11.0 million and net income would have been $10.9 million.

Without these items, our second quarter income from continuing operations before income tax expense would have been $24.1 million, net income from continuing operations would have been $15.2 million and net income would have been $9.5 million.

Without these items, our third quarter income from continuing operations before income tax expense would have been $18.2 million, net income from continuing operations would have been $11.5 million and net income would have been $11.1 million.