International Assets Holding Corporation Reports Fiscal Fourth Quarter and Full Year 2010 Financial Results
15 December 2010 - 10:22AM
International Assets Holding Corporation (the 'Company')
(Nasdaq:IAAC) today announced its fiscal year 2010 financial
results. 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-K to be filed
with the Securities and Exchange Commission ("SEC").
Sean O'Connor, CEO of International Assets, stated, "During the
fiscal year we accelerated our strategic plans and now have a
comprehensive and unmatched set of capabilities to service our
growing and diverse customer base. We have yet to fully realize the
benefits of this strategic vision but are confident that this
approach will result in attractive returns and good growth
prospects for our company."
International Assets Holding Corporation Summary
Financials
|
Three
Months Ended September 30, |
Fiscal Year
Ended September 30, |
(Unaudited) (in millions, except
share and per share amounts) |
2010 |
2009 |
%
Change |
2010 |
2009 |
%
Change |
Total operating revenues |
$ 65.9 |
$ 13.4 |
392 % |
$ 269.0 |
$ 90.6 |
197 % |
Interest expense |
2.4 |
1.7 |
41 % |
9.9 |
8.0 |
24 % |
Net revenues |
63.5 |
11.7 |
443 % |
259.1 |
82.6 |
214 % |
Compensation and benefits |
31.2 |
8.6 |
263 % |
104.2 |
40.2 |
159 % |
Clearing and related expenses |
16.5 |
3.0 |
450 % |
68.2 |
16.0 |
326 % |
Other non-interest expenses |
20.5 |
3.9 |
426 % |
68.8 |
13.1 |
425 % |
Total non-interest expenses |
68.2 |
15.5 |
340 % |
241.2 |
69.3 |
248 % |
Income from operations, before
tax |
(4.7) |
(3.8) |
24 % |
17.9 |
13.3 |
35 % |
Income tax expense |
(1.7) |
(2.2) |
(23)% |
6.4 |
2.6 |
146 % |
Net income before discontinued
operations |
(3.0) |
(1.6) |
88 % |
11.5 |
10.7 |
7 % |
Loss from discontinued operations, net of
taxes |
(1.3) |
0.2 |
(a) |
(0.6) |
1.1 |
(a) |
Income before extraordinary
loss |
(1.7) |
(1.8) |
(6)% |
12.1 |
9.6 |
26 % |
Extraordinary loss |
2.8 |
(18.5) |
(a) |
7.0 |
(18.5) |
(a) |
Net income |
(4.5) |
16.7 |
(a) |
5.1 |
28.1 |
(82)% |
Less: Net income (loss) attributable to
noncontrolling interests |
-- |
-- |
(a) |
(0.3) |
0.5 |
(a) |
Net income attributable to IAHC common
shareholders |
$ (4.5) |
$ 16.7 |
(a) |
$ 5.4 |
$ 27.6 |
(80)% |
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
Net income before discontinued
operations |
$ (0.18) |
$ (0.18) |
0 % |
$ 0.68 |
$ 1.16 |
(41)% |
Loss from discontinued
operations |
$ 0.07 |
$ (0.02) |
(a) |
$ 0.03 |
$ (0.13) |
(a) |
Extraordinary loss |
$ (0.15) |
$ 2.07 |
(a) |
$ (0.40) |
$ 2.08 |
(a) |
Net income attributable to IAHC common
shareholders |
$ (0.26) |
$ 1.87 |
(a) |
$ 0.31 |
$ 3.11 |
(90)% |
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
Net income before discontinued
operations |
$ (0.18) |
$ (0.13) |
38 % |
$ 0.66 |
$ 1.10 |
(40)% |
Loss from discontinued
operations |
$ 0.07 |
$ (0.02) |
(a) |
$ 0.03 |
$ (0.12) |
(a) |
Extraordinary loss |
$ (0.15) |
$ 1.79 |
(a) |
$ (0.39) |
$ 1.82 |
(a) |
Net income attributable to IAHC common
shareholders |
$ (0.26) |
$ 1.64 |
(a) |
$ 0.30 |
$ 2.80 |
(89)% |
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding: |
|
|
|
|
|
|
Basic |
17,358,689 |
8,946,275 |
94 % |
17,306,019 |
8,895,697 |
95 % |
Diluted |
17,358,689 |
10,339,157 |
68 % |
17,883,233 |
10,182,586 |
76 % |
|
|
|
|
|
|
|
Segmental operating revenues
(non-GAAP) reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues, as reported
(GAAP) |
$ 65.9 |
$ 13.4 |
392 % |
$ 269.0 |
$ 90.6 |
197 % |
Marked-to-market adjustment |
10.8 |
4.1 |
163 % |
6.0 |
6.9 |
(13)% |
Adjusted operating revenues
(non-GAAP) (b) |
$ 76.7 |
$ 17.5 |
338 % |
$ 275.0 |
$ 97.5 |
182 % |
|
|
|
|
|
|
|
Represented by: |
|
|
|
|
|
|
Commodity and risk management
services |
$ 41.0 |
$ 5.0 |
720 % |
$ 135.8 |
$ 26.1 |
420 % |
Foreign exchange |
11.7 |
6.4 |
83 % |
47.5 |
30.3 |
57 % |
Securities |
6.2 |
5.2 |
19 % |
20.8 |
39.1 |
(47)% |
Clearing and execution
services |
14.3 |
-- |
(a) |
61.8 |
-- |
(a) |
Other |
2.1 |
1.0 |
110 % |
8.9 |
3.4 |
162 % |
Corporate unallocated |
1.4 |
(0.1) |
(a) |
0.2 |
(1.4) |
(a) |
Adjusted operating revenues
(non-GAAP) (b) |
$ 76.7 |
$ 17.5 |
338 % |
$ 275.0 |
$ 97.5 |
182 % |
|
|
|
|
|
|
|
Net income (non-GAAP)
reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported
(GAAP) |
$ (4.5) |
$ 16.7 |
(a) |
$ 5.4 |
$ 27.6 |
(80)% |
Exclude loss from discontinued
operations |
(1.3) |
0.2 |
(a) |
(0.6) |
1.1 |
(a) |
Exclude extraordinary loss |
2.8 |
(18.5) |
(a) |
7.0 |
(18.5) |
(a) |
Marked-to-market adjustment |
10.8 |
4.1 |
163 % |
6.0 |
6.9 |
(13)% |
Tax effect at blended rate of
37.5% |
(4.1) |
(1.5) |
173 % |
(2.3) |
(2.5) |
(8)% |
Adjusted net income before
discontinued operations (non-GAAP) (c) |
$ 3.7 |
$ 1.0 |
270 % |
$ 15.5 |
$ 14.6 |
6 % |
|
|
|
|
|
|
|
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 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations' in
the Form 10-K for the year ended September 30, 2010. |
(c) Adjusted net income
before discontinued operations is a non-GAAP measure that
represents net income adjusted by the 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, Wednesday, December 15,
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 1-888-215-7027 (within the United
States), or 1-913-312-9305 (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 December 25,
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 1917609.
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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