International Assets Holding Corporation Reports 2010 Fiscal Second Quarter Financial Results
May 13 2010 - 3:35PM
International Assets Holding Corporation (the 'Company')
(Nasdaq:IAAC) today announced its fiscal 2010 second quarter
financial results for the quarter ended March 31, 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, "Given the
challenging market conditions during the quarter, we are pleased
that our core commercial client base, flexible cost structure and
diversity of revenue sources underpinned our continuing
profitability. We continue to invest in expanding the depth and
breadth of our customer base and increasing internal product
capabilities to maximize revenue capture."
International Assets Holding Corporation Summary
Financials
|
Three Months Ended March 31
|
Six Months Ended March 31,
|
(Unaudited)
(in millions, except share and per share
amounts)
|
2010
|
2009
|
% Change
|
2010
|
2009
|
% Change
|
Total operating revenues
|
$ 68.0
|
$ 26.4
|
158 %
|
$ 127.6
|
$ 54.8
|
133 %
|
Interest expense
|
2.3
|
2.3
|
0 %
|
4.8
|
4.6
|
4 %
|
Net revenues
|
65.7
|
24.1
|
173 %
|
122.8
|
50.2
|
145 %
|
Compensation and benefits
|
23.1
|
9.8
|
136 %
|
47.8
|
22.7
|
111 %
|
Clearing and related expenses
|
15.4
|
4.4
|
250 %
|
33.8
|
8.8
|
284 %
|
Other non-interest expenses
|
15.2
|
4.1
|
271 %
|
30.9
|
6.9
|
348 %
|
Total non-interest expenses
|
53.7
|
18.3
|
193 %
|
112.5
|
38.4
|
193 %
|
Income from operations, before tax
|
12.0
|
5.8
|
107 %
|
10.3
|
11.8
|
(13)%
|
Income tax expense
|
4.6
|
0.9
|
411 %
|
4.0
|
3.4
|
18 %
|
Net income before discontinued operations
|
7.4
|
4.9
|
51 %
|
6.3
|
8.4
|
(25)%
|
Loss from discontinued operations, net of taxes
|
--
|
0.5
|
(100)%
|
--
|
0.6
|
(100)%
|
Income before extraordinary loss
|
7.4
|
4.4
|
68 %
|
6.3
|
7.8
|
(19)%
|
Extraordinary loss
|
--
|
--
|
(a)
|
3.4
|
--
|
(a)
|
Net income
|
7.4
|
4.4
|
68 %
|
2.9
|
7.8
|
(63)%
|
Less: Net income (loss) attributable to noncontrolling
interests
|
--
|
0.4
|
(a)
|
(0.3)
|
0.5
|
(a)
|
Net income attributable to IAHC common
shareholders
|
$ 7.4
|
$ 4.0
|
85 %
|
$ 3.2
|
$ 7.3
|
(56)%
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
Net income before discontinued operations
|
$ 0.43
|
$ 0.52
|
(17)%
|
$ 0.38
|
$ 0.89
|
(57)%
|
Loss from discontinued operations
|
$ --
|
$ (0.06)
|
(a)
|
$ --
|
$ (0.07)
|
(a)
|
Extraordinary loss
|
$ --
|
$ --
|
(a)
|
$ (0.20)
|
$ --
|
(a)
|
Net income attributable to IAHC common
shareholders
|
$ 0.43
|
$ 0.46
|
(7)%
|
$ 0.18
|
$ 0.82
|
(78)%
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
Net income before discontinued operations
|
$ 0.41
|
$ 0.49
|
(16)%
|
$ 0.37
|
$ 0.84
|
(56)%
|
Loss from discontinued operations
|
$ --
|
$ (0.06)
|
(a)
|
$ --
|
$ (0.06)
|
(a)
|
Extraordinary loss
|
$ --
|
$ --
|
(a)
|
$ (0.19)
|
$ --
|
(a)
|
Net income attributable to IAHC common
shareholders
|
$ 0.41
|
$ 0.43
|
(5)%
|
$ 0.18
|
$ 0.78
|
(77)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding:
|
|
|
|
|
|
Basic
|
17,319,170
|
8,880,338
|
95 %
|
17,271,940
|
8,864,298
|
95 %
|
Diluted
|
18,483,752
|
9,910,130
|
87 %
|
17,821,990
|
9,972,697
|
79 %
|
|
|
|
|
|
|
|
Segmental operating revenues (non-GAAP)
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues, as reported
(GAAP)
|
$ 68.0
|
$ 26.4
|
158 %
|
$ 127.6
|
$ 54.8
|
133 %
|
Gross marked-to-market adjustment
|
(4.8)
|
0.4
|
(a)
|
0.8
|
1.8
|
(56)%
|
Adjusted operating revenues (non-GAAP)
(b)
|
$ 63.2
|
$ 26.8
|
136 %
|
$ 128.4
|
$ 56.6
|
127 %
|
|
|
|
|
|
|
|
Represented by:
|
|
|
|
|
|
|
Commodity and risk management services
|
$ 28.7
|
$ 8.9
|
222 %
|
$ 57.7
|
$ 16.6
|
248 %
|
Foreign exchange
|
10.9
|
7.7
|
42 %
|
24.0
|
13.1
|
83 %
|
Securities
|
5.1
|
7.6
|
(33)%
|
10.4
|
27.0
|
(61)%
|
Clearing and execution services
|
14.5
|
--
|
(a)
|
30.5
|
--
|
(a)
|
Other
|
2.3
|
3.1
|
(26)%
|
4.5
|
1.7
|
165 %
|
Corporate unallocated
|
1.7
|
(0.5)
|
(a)
|
1.3
|
(1.8)
|
(a)
|
Adjusted operating revenues (non-GAAP)
(b)
|
$ 63.2
|
$ 26.8
|
136 %
|
$ 128.4
|
$ 56.6
|
127 %
|
|
|
|
|
|
|
|
Net income (non-GAAP)
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported (GAAP)
|
$ 7.4
|
$ 4.0
|
85 %
|
$ 3.2
|
$ 7.3
|
(56)%
|
Exclude extraordinary loss
|
--
|
--
|
(a)
|
3.4
|
--
|
(a)
|
Gross marked-to-market adjustment
|
(4.8)
|
0.4
|
(a)
|
0.8
|
1.8
|
(56)%
|
Tax effect at 37.5%
|
1.8
|
(0.1)
|
(a)
|
(0.3)
|
(0.6)
|
(50)%
|
Adjusted net income before extraordinary loss
(non-GAAP) (c)
|
$ 4.4
|
$ 4.3
|
2 %
|
$ 7.1
|
$ 8.5
|
(16)%
|
|
|
|
|
|
|
|
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 March 31, 2010.
(c) Adjusted, net income attributable to IAHC 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 and the extraordinary loss
related to the decrease in net deferred tax assets related to the
FCStone merger. The table above reflects all reconciling items
between the GAAP net income (loss) attributable to IAHC and
non-GAAP adjusted net income attributable to IAHC.
Conference Call & Web Cast
A conference call will be held tomorrow, Friday, May 14, 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 1-877-334-0790 (within the United States), or
1-408-427-3728 (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 Tuesday, May
25, 2010. To access the replay, dial 1-800-642-1687 (within the
United States), or 1-706-645-9291 (international callers) and enter
the replay passcode 71291614.
About International Assets Holding
Corporation
International Assets Holdings 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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