International Assets Holding Corporation Reports 2010 Fiscal Third Quarter Financial Results
August 12 2010 - 5:00PM
International Assets Holding Corporation (the 'Company')
(Nasdaq:IAAC) today announced its fiscal 2010 third quarter
financial results for the three and nine months ended June 30,
2010. 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 is
provided in the Company's Form 10-Q, to be filed with the
Securities and Exchange Commission ("SEC").
Sean O'Connor, CEO of International Assets, stated, "A slight
improvement in market conditions resulted in fully diluted EPS of
$0.48 on continuing operations (adjusted EPS on a marked-to-market
basis of $0.27). During the quarter we believe we made significant
progress in expanding our capabilities with the acquisition of
Hanley Group which, together with our physical and exchange
expertise, gives us a unique product offering for our commercial
customers and should serve to drive profitability in the medium and
long term."
International Assets Holding Corporation Summary
Financials
|
Three
Months Ended June 30, |
Nine Months
Ended June 30, |
(Unaudited) (in millions,
except share and per share amounts) |
2010 |
2009 |
% Change |
2010 |
2009 |
%
Change |
Total operating revenues |
$ 78.1 |
$ 22.9 |
241 % |
$ 203.1 |
$ 77.2 |
163 % |
Interest expense |
2.7 |
1.6 |
69 % |
7.5 |
6.2 |
21 % |
Net revenues |
75.4 |
21.3 |
254 % |
195.6 |
71.0 |
175 % |
Compensation and benefits |
25.9 |
9.3 |
178 % |
73.0 |
31.6 |
131 % |
Clearing and related
expenses |
17.8 |
4.2 |
324 % |
51.7 |
13.0 |
298 % |
Other non-interest expenses |
18.3 |
2.6 |
604 % |
48.3 |
9.2 |
425 % |
Total non-interest
expenses |
62.0 |
16.1 |
285 % |
173.0 |
53.8 |
222 % |
Income from operations, before
tax |
13.4 |
5.2 |
158 % |
22.6 |
17.2 |
31 % |
Income tax expense |
4.8 |
1.4 |
243 % |
8.1 |
4.8 |
69 % |
Net income before discontinued
operations |
8.6 |
3.8 |
126 % |
14.5 |
12.4 |
17 % |
Loss from discontinued operations, net
of taxes |
1.1 |
0.2 |
450 % |
0.7 |
1.0 |
(30)% |
Income before extraordinary
loss |
7.5 |
3.6 |
108 % |
13.8 |
11.4 |
21 % |
Extraordinary loss |
0.8 |
-- |
(a) |
4.2 |
-- |
(a) |
Net income |
6.7 |
3.6 |
86 % |
9.6 |
11.4 |
(16)% |
Less: Net income (loss) attributable to
noncontrolling interests |
-- |
-- |
(a) |
(0.3) |
0.5 |
(a) |
Net income attributable to IAHC
common shareholders |
$ 6.7 |
$ 3.6 |
86 % |
$ 9.9 |
$ 10.9 |
(9)% |
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
Net income before discontinued
operations |
$ 0.50 |
$ 0.43 |
16 % |
$ 0.85 |
$ 1.34 |
(37)% |
Loss from discontinued
operations |
$ (0.06) |
$ (0.02) |
200 % |
$ (0.04) |
$ (0.11) |
(64)% |
Extraordinary loss |
$ (0.05) |
$ -- |
(a) |
$ (0.24) |
$ -- |
(a) |
Net income attributable to IAHC
common shareholders |
$ 0.39 |
$ 0.41 |
(5)% |
$ 0.57 |
$ 1.23 |
(54)% |
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
Net income before discontinued
operations |
$ 0.48 |
$ 0.40 |
20 % |
$ 0.83 |
$ 1.26 |
(34)% |
Loss from discontinued
operations |
$ (0.06) |
$ (0.02) |
200 % |
$ (0.04) |
$ (0.10) |
(60)% |
Extraordinary loss |
$ (0.04) |
$ -- |
(a) |
$ (0.24) |
$ -- |
(a) |
Net income attributable to IAHC
common shareholders |
$ 0.38 |
$ 0.38 |
0 % |
$ 0.55 |
$ 1.16 |
(53)% |
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding: |
|
|
|
|
|
Basic |
17,335,362 |
8,916,665 |
94 % |
17,293,058 |
8,879,649 |
95 % |
Diluted |
18,527,376 |
10,152,526 |
82 % |
17,841,999 |
10,007,526 |
78 % |
|
|
|
|
|
|
|
Segmental operating
revenues (non-GAAP) reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues, as reported
(GAAP) |
$ 78.1 |
$ 22.9 |
241 % |
$ 203.1 |
$ 77.2 |
163 % |
Marked-to-market
adjustment |
(5.6) |
1.0 |
(a) |
(4.8) |
2.8 |
(a) |
Adjusted operating revenues (non-GAAP)
(b) |
$ 72.5 |
$ 23.9 |
203 % |
$ 198.3 |
$ 80.0 |
148 % |
|
|
|
|
|
|
|
Represented by: |
|
|
|
|
|
|
Commodity and risk management
services |
$ 37.1 |
$ 4.5 |
724 % |
$ 94.8 |
$ 21.1 |
349 % |
Foreign exchange |
11.8 |
10.8 |
9 % |
35.8 |
23.9 |
50 % |
Securities |
4.2 |
6.9 |
(39)% |
14.6 |
33.9 |
(57)% |
Clearing and execution
services |
16.9 |
-- |
(a) |
47.5 |
-- |
(a) |
Other |
2.4 |
1.2 |
100 % |
6.8 |
2.4 |
183 % |
Corporate unallocated |
0.1 |
0.5 |
(80)% |
(1.2) |
(1.3) |
(8)% |
Adjusted operating revenues (non-GAAP)
(b) |
$ 72.5 |
$ 23.9 |
203 % |
$ 198.3 |
$ 80.0 |
148 % |
|
|
|
|
|
|
|
Net income (non-GAAP)
reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported
(GAAP) |
$ 6.7 |
$ 3.6 |
86 % |
$ 9.9 |
$ 10.9 |
(9)% |
Exclude loss from discontinued
operations |
1.1 |
0.2 |
450 % |
0.7 |
1.0 |
(30)% |
Exclude extraordinary
loss |
0.8 |
-- |
(a) |
4.2 |
-- |
(a) |
Marked-to-market
adjustment |
(5.6) |
1.0 |
(a) |
(4.8) |
2.8 |
(a) |
Tax effect at blended rate of
37.5% |
2.1 |
(0.4) |
(a) |
1.8 |
(1.0) |
(a) |
Adjusted net income before discontinued
operations (non-GAAP) (c) |
$ 5.1 |
$ 4.4 |
16 % |
$ 11.8 |
$ 13.7 |
(14)% |
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.intlassets.com.
(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 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations' in the Form 10-Q for
the quarter ended June 30, 2010.
(c) Adjusted, net income before discontinued
operations is a non-GAAP measure that represents net income
adjusted by pro forma, after-tax marked-to-market differences in
the Company's Commodity & Risk Management Services segment, the
extraordinary loss related to the decrease in net deferred tax
assets related to the FCStone merger, the extraordinary loss
related to the pre-acquisition contingency and the loss from
discontinued operations, net of tax. The table above reflects all
reconciling items between the GAAP net income (loss) attributable
to IAHC common shareholders and non-GAAP adjusted net income before
discontinued operations.
Conference Call & Web Cast
A conference call will be held tomorrow, Friday, August 13, 2010
at 9:00 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.intlassets.com. Participants can
also access the call by dialing 1-888-240-9299 (within the United
States), or 1-913-312-1485 (international callers) approximately
ten minutes prior to the start time.
A replay of the call will be available approximately two hours
after the call has ended and will be available through Monday,
August 23, 2010. To access the replay, dial 1-888-203-1112 (within
the United States), or 1-719-457-0820 (international callers) and
enter the replay passcode 7409601.
About International Assets Holding
Corporation
International Assets Holding Corporation (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 10,000 commercial customers in more than 100
countries through a network of offices in eleven countries around
the world.
Further information on INTL is available at
www.intlassets.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 International Assets Holding Corporation, 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 combined
company. They can be affected by inaccurate assumptions,
including the risks, uncertainties and assumptions described in the
filings made by International Assets Holding Corporation 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. International Assets Holding Corporation
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.
CONTACT: International Assets Holding Corporation
Investor inquiries:
Bill Dunaway, CFO
866-522-7188
bdunaway@intlassets.com
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