Brokerage and financial services firm INTL FCStone Inc. has just announced its financial results for the fiscal year 2019 second quarter ended March 31, 2019.
Highlights include:
- Record Operating Revenues of $271.1 million, up 4%
- Net Income of $23.4 million
- EPS of 1.21 per share, ROE of 17.4%
Sean M. O’Connor, CEO of INTL FCStone Inc., stated:
We continue to build on our record fiscal 2018 performance with another strong quarter in 2019 where we again achieved record operating revenues, EPS a near record of $1.21 and a 17.4% ROE. For the six months to date we saw operating revenues grow 13% and pre-tax income growth of 15% versus the prior year. This market outperformance validates our business model to provide a diverse set of products and capabilities to become more relevant to our growing base of customers.
We continue to take advantage of a consolidating market by aggressively growing our customer base and through strategic acquisitions, leveraging our infrastructure, capital and global footprint.
INTL FCStone Inc. Summary Financials
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||
| (Unaudited) (in millions, except share and per share amounts) | 2019 | 2018 | % Change |
2019 | 2018 | % Change |
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| Revenues: | |||||||||||||||||||||
| Sales of physical commodities | $ | 6,929.5 | $ | 6,255.8 | 11 | % | $ | 13,225.3 | $ | 13,970.2 | (5 | )% | |||||||||
| Principal gains, net | 110.3 | 98.5 | 12 | % | 203.1 | 175.6 | 16 | % | |||||||||||||
| Commission and clearing fees | 85.1 | 106.4 | (20 | )% | 184.6 | 192.9 | (4 | )% | |||||||||||||
| Consulting, management and account fees | 19.1 | 18.4 | 4 | % | 38.2 | 35.0 | 9 | % | |||||||||||||
| Interest income | 48.2 | 27.9 | 73 | % | 93.2 | 51.9 | 80 | % | |||||||||||||
| Total revenues | 7,192.2 | 6,507.0 | 11 | % | 13,744.4 | 14,425.6 | (5 | )% | |||||||||||||
| Cost of sales of physical commodities | 6,921.1 | 6,246.8 | 11 | % | 13,208.6 | 13,952.8 | (5 | )% | |||||||||||||
| Operating revenues | 271.1 | 260.2 | 4 | % | 535.8 | 472.8 | 13 | % | |||||||||||||
| Transaction-based clearing expenses | 42.7 | 50.7 | (16 | )% | 92.8 | 87.6 | 6 | % | |||||||||||||
| Introducing broker commissions | 24.8 | 36.2 | (31 | )% | 57.4 | 67.3 | (15 | )% | |||||||||||||
| Interest expense | 38.4 | 19.0 | 102 | % | 71.4 | 33.3 | 114 | % | |||||||||||||
| Net operating revenues | 165.2 | 154.3 | 7 | % | 314.2 | 284.6 | 10 | % | |||||||||||||
| Compensation and other expenses: | |||||||||||||||||||||
| Compensation and benefits | 97.9 | 88.2 | 11 | % | 187.0 | 165.4 | 13 | % | |||||||||||||
| Trade systems and market information | 9.5 | 8.9 | 7 | % | 18.7 | 17.1 | 9 | % | |||||||||||||
| Occupancy and equipment rental | 5.0 | 4.2 | 19 | % | 9.4 | 8.3 | 13 | % | |||||||||||||
| Professional fees | 5.0 | 3.9 | 28 | % | 10.3 | 8.6 | 20 | % | |||||||||||||
| Travel and business development | 4.0 | 3.0 | 33 | % | 7.8 | 6.5 | 20 | % | |||||||||||||
| Non-trading technology and support | 5.0 | 3.4 | 47 | % | 9.2 | 6.5 | 42 | % | |||||||||||||
| Depreciation and amortization | 3.2 | 2.9 | 10 | % | 6.1 | 5.6 | 9 | % | |||||||||||||
| Communications | 2.0 | 1.4 | 43 | % | 3.3 | 2.8 | 18 | % | |||||||||||||
| Bad debts | 0.7 | 0.2 | 250 | % | 1.0 | 0.3 | 233 | % | |||||||||||||
| (Recovery) bad debt on physical coal | — | — | — | % | (2.4 | ) | 1.0 | n/m | |||||||||||||
| Other | 7.4 | 8.7 | (15 | )% | 13.9 | 14.4 | (3 | )% | |||||||||||||
| Total compensation and other expenses | 139.7 | 124.8 | 12 | % | 264.3 | 236.5 | 12 | % | |||||||||||||
| Other gain | 5.4 | — | n/m | 5.4 | — | n/m | |||||||||||||||
| Income before tax | 30.9 | 29.5 | 5 | % | 55.3 | 48.1 | 15 | % | |||||||||||||
| Income tax expense | 7.5 | 6.8 | 10 | % | 13.7 | 32.3 | (58 | )% | |||||||||||||
| Net income | $ | 23.4 | $ | 22.7 | 3 | % | $ | 41.6 | $ | 15.8 | 163 | % | |||||||||
| Earnings per share: | |||||||||||||||||||||
| Basic | $ | 1.23 | $ | 1.20 | 3 | % | $ | 2.19 | $ | 0.83 | 164 | % | |||||||||
| Diluted | $ | 1.21 | $ | 1.18 | 3 | % | $ | 2.15 | $ | 0.81 | 165 | % | |||||||||
| Weighted-average number of common shares outstanding: | |||||||||||||||||||||
| Basic | 18,753,490 | 18,559,849 | 1 | % | 18,706,104 | 18,502,795 | 1 | % | |||||||||||||
| Diluted | 19,004,793 | 18,859,333 | 1 | % | 18,999,889 | 18,836,213 | 1 | % | |||||||||||||
| n/m = not meaningful to present as a percentage | |||||||||||||||||||||