EXHIBIT 99.1
INTL FCStone Inc. Reports Fiscal Fourth Quarter and Full Year 2012 Financial Results |
Record quarterly adjusted operating revenues and net income
Annual adjusted operating revenues up 12%
New York, NY – December 12, 2012 – INTL FCStone Inc. (the ‘Company’; NASDAQ: INTL) today announced its financial results for the fiscal fourth quarter and year ended September 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 and Other segments. 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-K to be filed with the Securities and Exchange Commission (“SEC”).
Sean O’Connor, CEO of INTL FCStone Inc., stated, “This was a difficult year for the industry but one where we continued to invest in our growing franchise through significant additions to our capabilities. Our efforts culminated in record fourth quarter earnings where we achieved close to a 16% adjusted ROE. This result is continued validation of our commitment to provide high quality customer facilitation and execution in the commodities and financial markets.”
INTL FCStone Inc. Summary Financials
Consolidated financial statements for the Company will be included in the Company’s annual report on Form 10-K to be filed with the SEC. The Form 10-K will also be made available on the Company’s website at www.intlfcstone.com.
Three Months Ended September 30, | Fiscal Year Ended September 30, | ||||||||||||||||||||
(Unaudited) (in millions, except share and per share amounts) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | |||||||||||||||
Operating revenues | $ | 118.0 | $ | 108.1 | 9 | % | $ | 457.7 | $ | 423.2 | 8 | % | |||||||||
Interest expense | 3.3 | 2.2 | 50 | % | 11.6 | 11.3 | 3 | % | |||||||||||||
Net revenues | 114.7 | 105.9 | 8 | % | 446.1 | 411.9 | 8 | % | |||||||||||||
Compensation and benefits | 46.9 | 47.0 | — | % | 202.4 | 176.6 | 15 | % | |||||||||||||
Clearing and related expenses | 26.8 | 19.0 | 41 | % | 107.2 | 77.4 | 39 | % | |||||||||||||
Introducing broker commissions | 9.3 | 6.3 | 48 | % | 31.0 | 24.0 | 29 | % | |||||||||||||
Other non-interest expenses | 21.2 | 20.6 | 3 | % | 86.2 | 74.4 | 16 | % | |||||||||||||
Total non-interest expenses | 104.2 | 92.9 | 12 | % | 426.8 | 352.4 | 21 | % | |||||||||||||
Income from continuing operations, before tax | 10.5 | 13.0 | (19 | )% | 19.3 | 59.5 | (68 | )% | |||||||||||||
Income tax expense | 2.2 | 5.4 | (59 | )% | 4.4 | 22.5 | (80 | )% | |||||||||||||
Income from continuing operations | 8.3 | 7.6 | 9 | % | 14.9 | 37.0 | (60 | )% | |||||||||||||
Income from discontinued operations, net of tax | — | — | — | 0.2 | (a) | ||||||||||||||||
Net income | 8.3 | 7.6 | 9 | % | 14.9 | 37.2 | (60 | )% | |||||||||||||
Add: Net (income) loss attributable to noncontrolling interests | — | (0.1 | ) | (a) | 0.1 | 0.1 | — | % | |||||||||||||
Net income attributable to INTL FCStone Inc. common stockholders | $ | 8.3 | $ | 7.5 | 11 | % | $ | 15.0 | $ | 37.3 | (60 | )% | |||||||||
Earnings per share: | |||||||||||||||||||||
Basic | |||||||||||||||||||||
Income from continuing operations | $ | 0.44 | $ | 0.41 | 7 | % | $ | 0.79 | $ | 2.06 | (62 | )% | |||||||||
Income from discontinued operations | — | — | — | 0.01 | (a) | ||||||||||||||||
Net income attributable to INTL FCStone Inc. common stockholders | $ | 0.44 | $ | 0.41 | 7 | % | $ | 0.79 | $ | 2.07 | (62 | )% | |||||||||
Diluted | |||||||||||||||||||||
Income from continuing operations | $ | 0.42 | $ | 0.39 | 8 | % | $ | 0.75 | $ | 1.95 | (62 | )% | |||||||||
Income from discontinued operations | — | — | — | 0.01 | (a) | ||||||||||||||||
Net income attributable to INTL FCStone Inc. common stockholders | $ | 0.42 | $ | 0.39 | 8 | % | $ | 0.75 | $ | 1.96 | (62 | )% | |||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||
Basic | 18,285,504 | 17,789,967 | 3 | % | 18,282,939 | 17,618,085 | 4 | % | |||||||||||||
Diluted | 19,026,758 | 18,696,536 | 2 | % | 19,156,899 | 18,567,454 | 3 | % | |||||||||||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | ||||||||||||||||||||
(In millions, except share and per share amounts) | 2012 | 2011 | % Change | 2012 | 2011 | % Change | |||||||||||||||
Segmental operating revenues (non-GAAP) reconciliation: | |||||||||||||||||||||
Operating revenues, as reported (GAAP) | $ | 118.0 | $ | 108.1 | 9 | % | $ | 457.7 | $ | 423.2 | 8 | % | |||||||||
Marked-to-market adjustment | 6.8 | (4.6 | ) | (a) | 6.8 | (8.4 | ) | (a) | |||||||||||||
Adjusted operating revenues (non-GAAP) (b) | $ | 124.8 | $ | 103.5 | 21 | % | $ | 464.5 | $ | 414.8 | 12 | % | |||||||||
Represented by: | |||||||||||||||||||||
Commodity and risk management services | $ | 69.2 | $ | 58.9 | 17 | % | $ | 251.9 | $ | 244.2 | 3 | % | |||||||||
Foreign exchange | 15.2 | 17.5 | (13 | )% | 62.6 | 59.3 | 6 | % | |||||||||||||
Securities | 11.1 | 7.3 | 52 | % | 39.9 | 30.5 | 31 | % | |||||||||||||
Clearing and execution services | 23.0 | 14.8 | 55 | % | 93.8 | 66.1 | 42 | % | |||||||||||||
Other | 6.0 | 5.1 | 18 | % | 16.5 | 14.3 | 15 | % | |||||||||||||
Corporate unallocated | 0.3 | (0.1 | ) | (a) | (0.2 | ) | 0.4 | (a) | |||||||||||||
Adjusted operating revenues (non-GAAP) (b) | $ | 124.8 | $ | 103.5 | 21 | % | $ | 464.5 | $ | 414.8 | 12 | % | |||||||||
Net income attributable to INTL FCStone Inc. common stockholders (non-GAAP) reconciliation: | |||||||||||||||||||||
Net income attributable to INTL FCStone Inc. common stockholders, as reported (GAAP) | $ | 8.3 | $ | 7.5 | 11 | % | $ | 15.0 | $ | 37.3 | (60 | )% | |||||||||
Exclude income from discontinued operations | — | — | — | (0.2 | ) | (a) | |||||||||||||||
Marked-to-market adjustment (non-GAAP) | 6.8 | (4.6 | ) | (a) | 6.8 | (8.4 | ) | (a) | |||||||||||||
Tax effect on marked-to-market adjustment at blended rate of 37.5% (non-GAAP) | (2.6 | ) | 1.8 | (a) | (2.6 | ) | 3.2 | (a) | |||||||||||||
Adjusted net income attributable to INTL FCStone Inc. common stockholders from continuing operations (non-GAAP) (c) | $ | 12.5 | $ | 4.7 | 166 | % | $ | 19.2 | $ | 31.9 | (40 | )% | |||||||||
(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 and Other segments, 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, 2012. |
(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 and Other segments 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, December 13, 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 1-866-516-1003 (within the United States), or 1-973-200-3083 (international callers) approximately ten minutes prior to the start time.
A replay of the call will be available at http://www.intlfcstone.com approximately three hours after the call has ended and will be available through December 20, 2012. To access the replay, dial 1-800-585-8367 (within the United States), or 1-404-537-3406 (international callers) and enter the replay passcode 789 252 97.
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.
Further information on INTL is available at www.intlfcstone.com.
Forward Looking Statements
This press release includes forward-looking statements including statements regarding the combined company. 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 INTL FCStone Inc., are intended to identify forward-looking statements.
These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the company. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the filings made by INTL FCStone Inc. 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.
These forward-looking statements speak only as of the date of this press release. INTL FCStone Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements.
INTL FCStone Inc.
Investor inquiries:
Bill Dunaway, CFO
1-866-522-7188
bill.dunaway@intlfcstone.com