StoneX Group Inc. Reports Fiscal 2021 Fourth Quarter Financial Results
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Three Months Ended September 30, | Year Ended September 30, | |||||||||||
(Unaudited) (in millions, except share and per share amounts) | 2021 | 2020 |
% Change | 2021 | 2020 |
% Change | ||||||
Revenues: | ||||||||||||
Sales of physical commodities | $ | 11,487.9 | $ | 13,959.8 | (18) | % | $ | 40,961.6 | $ | 52,899.2 | (23) | % |
Principal gains, net | 191.3 | 180.2 | 6 | % | 892.0 | 622.2 | 43 | % | ||||
Commission and clearing fees | 114.0 | 103.7 | 10 | % | 487.2 | 403.6 | 21 | % | ||||
Consulting, management, and account fees | 23.6 | 20.4 | 16 | % | 91.0 | 83.7 | 9 | % | ||||
Interest income | 30.0 | 20.8 | 44 | % | 102.4 | 130.9 | (22) | % | ||||
Total revenues | 11,846.8 | 14,284.9 | (17) | % | 42,534.2 | 54,139.6 | (21) | % | ||||
Cost of sales of physical commodities | 11,456.7 | 13,942.8 | (18) | % | 40,861.1 | 52,831.3 | (23) | % | ||||
Operating revenues | 390.1 | 342.1 | 14 | % | 1,673.1 | 1,308.3 | 28 | % | ||||
Transaction-based clearing expenses | 64.4 | 57.1 | 13 | % | 271.7 | 222.5 | 22 | % | ||||
Introducing broker commissions | 39.7 | 34.0 | 17 | % | 160.5 | 113.8 | 41 | % | ||||
Interest expense | 14.1 | 10.0 | 41 | % | 49.6 | 80.4 | (38) | % | ||||
Interest expense on corporate funding | 10.2 | 14.8 | (31) | % | 41.3 | 23.6 | 75 | % | ||||
Net operating revenues | 261.7 | 226.2 | 16 | % | 1,150.0 | 868.0 | 32 | % | ||||
Compensation and other expenses: | ||||||||||||
Variable compensation and benefits | 85.0 | 81.1 | 5 | % | 377.7 | 296.8 | 27 | % | ||||
Fixed compensation and benefits | 78.2 | 64.4 | 21 | % | 301.4 | 221.9 | 36 | % | ||||
Trading systems and market information | 15.9 | 12.9 | 23 | % | 58.8 | 46.3 | 27 | % | ||||
Professional fees | 13.1 | 13.4 | (2) | % | 40.9 | 30.2 | 35 | % | ||||
Non-trading technology and support | 13.2 | 9.6 | 38 | % | 46.0 | 28.4 | 62 | % | ||||
Occupancy and equipment rental | 8.4 | 8.2 | 2 | % | 34.2 | 23.5 | 46 | % | ||||
Selling and marketing | 9.9 | 6.1 | 62 | % | 33.3 | 12.2 | 173 | % | ||||
Travel and business development | 1.7 | 0.5 | 240 | % | 4.5 | 8.9 | (49) | % | ||||
Communications | 2.3 | 2.2 | 5 | % | 9.3 | 7.0 | 33 | % | ||||
Depreciation and amortization | 9.8 | 7.2 | 36 | % | 36.5 | 19.7 | 85 | % | ||||
Bad debts, net of recoveries and impairment | 6.7 | 12.5 | (46) | % | 10.4 | 18.7 | (44) | % | ||||
Other | 12.4 | 10.0 | 24 | % | 46.3 | 29.6 | 56 | % | ||||
Total compensation and other expenses | 256.6 | 228.1 | 12 | % | 999.3 | 743.2 | 34 | % | ||||
Gain on acquisitions and other gains (losses) | (0.2) | 81.8 | n/m | 3.4 | 81.9 | (96) | % | |||||
Income before tax | 4.9 | 79.9 | (94) | % | 154.1 | 206.7 | (25) | % | ||||
Income tax (benefit) expense | (2.4) | 2.5 | (196) | % | 37.8 | 37.1 | 2 | % | ||||
Net income | $ | 7.3 | $ | 77.4 | (91) | % | $ | 116.3 | $ | 169.6 | (31) | % |
Earnings per share: | ||||||||||||
Basic | $ | 0.37 | $ | 4.00 | (91) | % | $ | 5.90 | $ | 8.78 | (33) | % |
Diluted | $ | 0.36 | $ | 3.90 | (91) | % | $ | 5.74 | $ | 8.61 | (33) | % |
Weighted-average number of common shares outstanding: | ||||||||||||
Basic | 19,214,912 | 18,867,530 | 2 | % | 19,130,643 | 18,824,328 | 2 | % | ||||
Diluted | 19,759,984 | 19,358,907 | 2 | % | 19,678,168 | 19,180,479 | 3 | % | ||||
n/m = not meaningful to present as a percentage
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Three Months Ended September 30, | Year Ended September 30, | |||||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||
Segment operating revenues represented by: | ||||||||||||
Commercial | $ | 132.7 | $ | 107.8 | 23 | % | $ | 534.8 | $ | 431.5 | 24 | % |
Institutional | 138.3 | 136.2 | 2 | % | 668.4 | 624.1 | 7 | % | ||||
Retail | 86.4 | 68.5 | 26 | % | 348.0 | 140.0 | 149 | % | ||||
Global Payments | 34.4 | 29.2 | 18 | % | 137.3 | 117.4 | 17 | % | ||||
Corporate Unallocated | 3.0 | 3.1 | (3) | % | 1.7 | 14.6 | (88) | % | ||||
Eliminations | (4.7) | (2.7) | 74 | % | (17.1) | (19.3) | (11) | % | ||||
Operating revenues | $ | 390.1 | $ | 342.1 | 14 | % | $ | 1,673.1 | $ | 1,308.3 | 28 | % |
Three Months Ended September 30, | Year Ended September 30, | |||||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||
Segment income represented by: | ||||||||||||
Commercial | $ | 44.1 | $ | 34.3 | 29 | % | $ | 192.2 | $ | 141.9 | 35 | % |
Institutional | 24.4 | 22.4 | 9 | % | 167.7 | 152.9 | 10 | % | ||||
Retail | 11.9 | 18.0 | (34) | % | 67.8 | 31.7 | 114 | % | ||||
Global Payments | 18.4 | 16.6 | 11 | % | 78.5 | 68.6 | 14 | % | ||||
Total segment income | $ | 98.8 | $ | 91.3 | 8 | % | $ | 506.2 | $ | 395.1 | 28 | % |
Reconciliation of segment income to income before tax: | ||||||||||||
Segment income | $ | 98.8 | $ | 91.3 | 8 | % | $ | 506.2 | $ | 395.1 | 28 | % |
Net costs not allocated to operating segments | (93.7) | (93.2) | 1 | % | (355.5) | (270.3) | 32 | % | ||||
Gain on acquisitions and other gains (losses) | (0.2) | 81.8 | n/m | 3.4 | 81.9 | (96) | % | |||||
Income before tax | $ | 4.9 | $ | 79.9 | (94) | % | $ | 154.1 | $ | 206.7 | (25) | % |
All $ amounts are U.S. dollar or U.S. dollar equivalents | Three Months Ended September 30, | Year Ended September 30, | ||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||
Operating Revenues (in millions): | ||||||||||
Listed derivatives | $ | 89.7 | $ | 82.6 | 9% | $ | 387.6 | $ | 328.5 | 18% |
OTC derivatives | 34.4 | 22.6 | 52% | 143.4 | 111.2 | 29% | ||||
Securities | 112.1 | 100.8 | 11% | 533.6 | 458.3 | 16% | ||||
FX / Contract For Difference ("CFD") contracts | 55.7 | 48.6 | 15% | 242.0 | 66.9 | 262% | ||||
Global payments | 33.3 | 28.4 | 17% | 133.8 | 114.6 | 17% | ||||
Physical contracts | 42.1 | 39.2 | 7% | 152.6 | 122.4 | 25% | ||||
Interest / fees earned on client balances | 7.9 | 4.8 | 65% | 26.0 | 42.7 | (39)% | ||||
Other | 16.6 | 14.7 | 13% | 69.5 | 68.4 | 2% | ||||
Corporate Unallocated | 3.0 | 3.1 | (3)% | 1.7 | 14.6 | (88)% | ||||
Eliminations | (4.7) | (2.7) | 74% | (17.1) | (19.3) | (11)% | ||||
$ | 390.1 | $ | 342.1 | 14% | $ | 1,673.1 | $ | 1,308.3 | 28% | |
Volumes and Other Select Data (all $ amounts are U.S. dollar or U.S. dollar equivalents): | ||||||||||
Listed derivatives (contracts, 000's) | 36,004 | 35,353 | 2% | 146,101 | 154,652 | (6)% | ||||
Listed derivatives, average rate per contract (1)
| $ | 2.41 | $ | 2.24 | 8% | $ | 2.55 | $ | 1.98 | 29% |
Average client equity - listed derivatives (millions) | $ | 4,164 | $ | 3,331 | 25% | $ | 3,842 | $ | 2,765 | 39% |
Over-the-counter ("OTC") derivatives (contracts, 000's) | 667 | 475 | 40% | 2,557 | 2,113 | 21% | ||||
OTC derivatives, average rate per contract | $ | 51.25 | $ | 47.34 | 8% | $ | 55.70 | $ | 52.19 | 7% |
Securities average daily volume ("ADV") (millions) | $ | 3,040 | $ | 1,681 | 81% | $ | 2,776 | $ | 1,729 | 61% |
Securities rate per million ("RPM") (2)
| $ | 427 | $ | 727 | (41)% | $ | 610 | $ | 845 | (28)% |
Average money market / FDIC sweep client balances (millions) | $ | 1,592 | $ | 1,320 | 21% | $ | 1,471 | $ | 1,130 | 30% |
FX / CFD contracts ADV (millions) (3)
| $ | 11,063 | $ | 9,586 | 15% | $ | 10,636 | $ | 9,679 | 10% |
FX / CFD contracts RPM | $ | 77 | $ | 111 | (31)% | $ | 89 | $ | 97 | (8)% |
Global Payments ADV (millions) | $ | 54 | $ | 42 | 29% | $ | 54 | $ | 45 | 20% |
Global Payments RPM | $ | 9,573 | $ | 10,524 | (9)% | $ | 9,921 | $ | 10,092 | (2)% |
(1)
| Give-up fees as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract. |
(2)
| Interest income related to securities lending is excluded from the calculation of Securities RPM. |
(3)
|
The ADV for the three months and year ended September 30, 2020 was reflective of the ADV of post-acquisition of Gain, and is calculated based on 43 trading days with the activities of Gain, acquired effective August 1, 2020. FX/CFD Contracts ADV from Gain is included in our Retail segment and our pre-existing FX activities, which are shown in our Institutional segment, had 260 trading days during the year ended September 30, 2020.
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Three Months Ended September 30, | Year Ended September 30, | |||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | ||||
As reported, GAAP: | ||||||||
Income before tax | $ | 4.9 | $ | 79.9 | $ | 154.1 | $ | 206.7 |
Income tax (benefit) expense | (2.4) | 2.5 | 37.8 | 37.1 | ||||
Net income | $ | 7.3 | $ | 77.4 | $ | 116.3 | $ | 169.6 |
Return on equity | 3.2 | % | 42.5 | % | 13.9 | % | 24.9 | % |
Adjusted (non-GAAP)(a):
| ||||||||
Adjusted income before tax | $ | 7.6 | $ | 13.2 | $ | 165.9 | $ | 141.8 |
Adjusted income tax (benefit) expense | (2.0) | 7.0 | 41.6 | 42.1 | ||||
Adjusted net income | $ | 9.6 | $ | 6.2 | $ | 124.3 | $ | 99.7 |
Adjusted return on equity | 4.2 | % | 3.4 | % | 14.9 | % | 14.6 | % |
Three Months Ended September 30, | Year Ended September 30, | |||||||||||||||
(in millions) | 2021 |
% of Total | 2020 |
% of Total | 2021 |
% of Total | 2020 |
% of Total | ||||||||
Variable compensation and benefits | $ | 85.0 | 23 | % | $ | 81.1 | 25 | % | $ | 377.7 | 26 | % | $ | 296.8 | 27 | % |
Transaction-based clearing expenses | 64.4 | 18 | % | 57.1 | 18 | % | 271.7 | 19 | % | 222.5 | 21 | % | ||||
Introducing broker commissions | 39.7 | 11 | % | 34.0 | 11 | % | 160.5 | 11 | % | 113.8 | 11 | % | ||||
Total variable expenses | 189.1 | 52 | % | 172.2 | 54 | % | 809.9 | 56 | % | 633.1 | 59 | % | ||||
Fixed compensation and benefits | 78.2 | 22 | % | 64.4 | 20 | % | 301.4 | 21 | % | 221.9 | 20 | % | ||||
Other fixed expenses | 86.7 | 24 | % | 70.1 | 22 | % | 309.8 | 22 | % | 205.8 | 19 | % | ||||
Bad debts, net of recoveries and impairment | 6.7 | 2 | % | 12.5 | 4 | % | 10.4 | 1 | % | 18.7 | 2 | % | ||||
Total non-variable expenses | 171.6 | 48 | % | 147.0 | 46 | % | 621.6 | 44 | % | 446.4 | 41 | % | ||||
Total non-interest expenses | $ | 360.7 | 100 | % | $ | 319.2 | 100 | % | $ | 1,431.5 | 100 | % | $ | 1,079.5 | 100 | % |
Three Months Ended September 30, | Year Ended September 30, | |||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||
Revenues: | ||||||||||
Sales of physical commodities | $ | 10,940.9 | $ | 13,863.8 | (21)% | $ | 39,420.3 | $ | 52,593.9 | (25)% |
Principal gains, net | 58.5 | 51.5 | 14% | 245.5 | 194.1 | 26% | ||||
Commission and clearing fees | 42.1 | 35.8 | 18% | 178.3 | 140.1 | 27% | ||||
Consulting, management and account fees | 4.9 | 4.5 | 9% | 19.7 | 18.8 | 5% | ||||
Interest income | 6.4 | 2.7 | 137% | 20.2 | 23.2 | (13)% | ||||
Total revenues | 11,052.8 | 13,958.3 | (21)% | 39,884.0 | 52,970.1 | (25)% | ||||
Cost of sales of physical commodities | 10,920.1 | 13,850.5 | (21)% | 39,349.2 | 52,538.6 | (25)% | ||||
Operating revenues | 132.7 | 107.8 | 23% | 534.8 | 431.5 | 24% | ||||
Transaction-based clearing expenses | 13.7 | 10.1 | 36% | 54.0 | 40.8 | 32% | ||||
Introducing broker commissions | 8.5 | 6.3 | 35% | 34.7 | 24.0 | 45% | ||||
Interest expense | 3.2 | 2.6 | 23% | 13.0 | 13.3 | (2)% | ||||
Net operating revenues | 107.3 | 88.8 | 21% | 433.1 | 353.4 | 23% | ||||
Variable direct compensation and benefits | 33.1 | 27.7 | 19% | 133.4 | 111.2 | 20% | ||||
Net contribution | 74.2 | 61.1 | 21% | 299.7 | 242.2 | 24% | ||||
Fixed compensation and benefits | 12.6 | 12.3 | 2% | 49.9 | 48.5 | 3% | ||||
Other fixed expenses | 11.6 | 9.7 | 20% | 49.1 | 43.5 | 13% | ||||
Bad debts, net of recoveries and impairment | 5.9 | 4.8 | 23% | 8.5 | 8.3 | 2% | ||||
Non-variable direct expenses | 30.1 | 26.8 | 12% | 107.5 | 100.3 | 7% | ||||
Segment income | $ | 44.1 | $ | 34.3 | 29% | $ | 192.2 | $ | 141.9 | 35% |
Three Months Ended September 30, | Year Ended September 30, | |||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||
Operating revenues (in millions): | ||||||||||
Listed derivatives | $ | 53.7 | $ | 43.2 | 24% | $ | 223.5 | $ | 176.9 | 26% |
OTC derivatives | 34.5 | 22.6 | 53% | 143.4 | 111.0 | 29% | ||||
Physical contracts | 34.5 | 35.4 | (3)% | 132.2 | 109.6 | 21% | ||||
Interest / fees earned on client balances | 4.9 | 1.9 | 158% | 14.6 | 14.5 | 1% | ||||
Other | 5.1 | 4.7 | 9% | 21.1 | 19.5 | 8% | ||||
$ | 132.7 | $ | 107.8 | 23% | $ | 534.8 | $ | 431.5 | 24% | |
Select data (all $ amounts are U.S. dollar or U.S. dollar equivalents): | ||||||||||
Listed derivatives (contracts, 000's) | 7,019 | 6,763 | 4% | 30,904 | 29,255 | 6% | ||||
Listed derivatives, average rate per contract (1)
| $ | 7.42 | $ | 6.03 | 23% | $ | 6.92 | $ | 5.48 | 26% |
Average client equity - listed derivatives (millions) | $ | 1,791 | $ | 1,112 | 61% | $ | 1,648 | $ | 1,019 | 62% |
Over-the-counter ("OTC") derivatives (contracts, 000's) | 667 | 475 | 40% | 2,557 | 2,113 | 21% | ||||
OTC derivatives, average rate per contract | $ | 51.25 | $ | 47.34 | 8% | $ | 55.70 | $ | 52.19 | 7% |
(1)
| Give-up fees as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract. |
Three Months Ended September 30, | Year Ended September 30, | |||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||
Revenues: | ||||||||||
Sales of physical commodities | $ | - | $ | - | -% | $ | - | $ | - | -% |
Principal gains, net | 51.7 | 58.3 | (11)% | 312.0 | 273.6 | 14% | ||||
Commission and clearing fees | 55.9 | 54.2 | 3% | 246.0 | 211.1 | 17% | ||||
Consulting, management and account fees | 4.2 | 4.4 | (5)% | 18.0 | 23.3 | (23)% | ||||
Interest income | 26.5 | 19.3 | 37% | 92.4 | 116.1 | (20)% | ||||
Total revenues | 138.3 | 136.2 | 2% | 668.4 | 624.1 | 7% | ||||
Cost of sales of physical commodities | - | - | -% | - | - | -% | ||||
Operating revenues | 138.3 | 136.2 | 2% | 668.4 | 624.1 | 7% | ||||
Transaction-based clearing expenses | 43.5 | 40.9 | 6% | 184.1 | 168.7 | 9% | ||||
Introducing broker commissions | 4.9 | 6.4 | (23)% | 27.5 | 19.9 | 38% | ||||
Interest expense | 10.7 | 7.9 | 35% | 37.4 | 71.7 | (48)% | ||||
Net operating revenues | 79.2 | 81.0 | (2)% | 419.4 | 363.8 | 15% | ||||
Variable direct compensation and benefits | 30.6 | 27.9 | 10% | 158.5 | 114.9 | 38% | ||||
Net contribution | 48.6 | 53.1 | (8)% | 260.9 | 248.9 | 5% | ||||
Fixed compensation and benefits | 11.2 | 12.7 | (12)% | 46.1 | 47.2 | (2)% | ||||
Other fixed expenses | 12.9 | 10.9 | 18% | 46.5 | 39.0 | 19% | ||||
Bad debts, net of recoveries and impairment | 0.1 | 7.1 | (99)% | 0.6 | 9.8 | (94)% | ||||
Non-variable direct expenses | 24.2 | 30.7 | (21)% | 93.2 | 96.0 | (3)% | ||||
Segment income | $ | 24.4 | $ | 22.4 | 9% | $ | 167.7 | $ | 152.9 | 10% |
Three Months Ended September 30, | Year Ended September 30, | |||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||
Operating revenues (in millions): | ||||||||||
Listed derivatives | $ | 36.0 | $ | 39.4 | (9)% | $ | 164.1 | $ | 151.6 | 8% |
OTC derivatives | (0.1) | - | n/m | - | 0.2 | (100)% | ||||
Securities | 86.0 | 79.7 | 8% | 436.0 | 376.1 | 16% | ||||
FX contracts | 3.9 | 5.7 | (32)% | 16.1 | 24.0 | (33)% | ||||
Interest / fees earned on client balances | 2.7 | 2.6 | 4% | 10.2 | 26.5 | (62)% | ||||
Other | 9.8 | 8.8 | 11% | 42.0 | 45.7 | (8)% | ||||
$ | 138.3 | $ | 136.2 | 2% | $ | 668.4 | $ | 624.1 | 7% | |
Select data (all $ amounts are U.S. dollar or U.S. dollar equivalents): | ||||||||||
Listed derivatives (contracts, 000's) | 28,985 | 28,590 | 1% | 115,197 | 125,397 | (8)% | ||||
Listed derivatives, average rate per contract (1)
| $ | 1.19 | $ | 1.34 | (11)% | $ | 1.38 | $ | 1.17 | 18% |
Average client equity - listed derivatives (millions) | $ | 2,372 | $ | 2,220 | 7% | $ | 2,195 | $ | 1,746 | 26% |
Securities ADV (millions) | $ | 3,040 | $ | 1,681 | 81% | $ | 2,776 | $ | 1,729 | 61% |
Securities RPM (2)
| $ | 427 | $ | 727 | (41)% | $ | 610 | $ | 845 | (28)% |
Average money market / FDIC sweep client balances (millions) | $ | 1,592 | $ | 1,320 | 21% | $ | 1,471 | $ | 1,130 | 30% |
FX contracts ADV (millions) | $ | 2,144 | $ | 1,229 | 74% | $ | 1,647 | $ | 1,322 | 25% |
FX contracts RPM | $ | 27 | $ | 70 | (61)% | $ | 38 | $ | 72 | (47)% |
(1)
| Give-up fee revenues are excluded from the calculation of listed derivatives, average rate per contract. |
(2)
| Interest income related to securities lending is excluded from the calculation of Securities RPM. |
Three Months Ended September 30, | Year Ended September 30, | |||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||
Revenues: | ||||||||||
Sales of physical commodities | $ | 547.0 | $ | 96.0 | 470% | $ | 1,541.3 | $ | 305.3 | 405% |
Principal gains, net | 48.8 | 42.1 | 16% | 212.7 | 42.3 | 403% | ||||
Commission and clearing fees | 14.5 | 12.8 | 13% | 58.9 | 49.8 | 18% | ||||
Consulting, management and account fees | 12.4 | 9.5 | 31% | 45.5 | 34.6 | 32% | ||||
Interest income | 0.3 | 0.4 | (25)% | 1.5 | 0.7 | 114% | ||||
Total revenues | 623.0 | 160.8 | 287% | 1,859.9 | 432.7 | 330% | ||||
Cost of sales of physical commodities | 536.6 | 92.3 | 481% | 1,511.9 | 292.7 | 417% | ||||
Operating revenues | 86.4 | 68.5 | 26% | 348.0 | 140.0 | 149% | ||||
Transaction-based clearing expenses | 5.3 | 4.4 | 20% | 25.7 | 6.4 | 302% | ||||
Introducing broker commissions | 26.6 | 20.8 | 28% | 98.2 | 69.0 | 42% | ||||
Interest expense | 0.8 | 0.8 | -% | 1.7 | 0.8 | 113% | ||||
Net operating revenues | 53.7 | 42.5 | 26% | 222.4 | 63.8 | 249% | ||||
Variable direct compensation and benefits | 5.3 | 3.8 | 39% | 18.0 | 5.0 | 260% | ||||
Net contribution | 48.4 | 38.7 | 25% | 204.4 | 58.8 | 248% | ||||
Fixed compensation and benefits | 12.6 | 7.2 | 75% | 51.6 | 10.2 | 406% | ||||
Other fixed expenses | 23.4 | 12.9 | 81% | 83.9 | 16.3 | 415% | ||||
Bad debts | 0.5 | 0.6 | (17)% | 1.1 | 0.6 | 83% | ||||
Non-variable direct expenses | 36.5 | 20.7 | 76% | 136.6 | 27.1 | 404% | ||||
Segment income | $ | 11.9 | $ | 18.0 | (34)% | $ | 67.8 | $ | 31.7 | 114% |
Three Months Ended September 30, | Year Ended September 30, | |||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||
Operating revenues (in millions): | ||||||||||
Securities | $ | 26.1 | $ | 21.1 | 24% | $ | 97.6 | $ | 82.2 | 19% |
FX / CFD contracts | 51.8 | 42.9 | 21% | 225.9 | 42.9 | 427% | ||||
Physical contracts | 7.6 | 3.8 | 100% | 20.4 | 12.8 | 59% | ||||
Interest / fees earned on client balances | 0.3 | 0.3 | -% | 1.2 | 1.7 | (29)% | ||||
Other | 0.6 | 0.4 | 50% | 2.9 | 0.4 | 625% | ||||
$ | 86.4 | $ | 68.5 | 26% | $ | 348.0 | $ | 140.0 | 149% | |
Select data (all $ amounts are U.S. dollar or U.S. dollar equivalents): | ||||||||||
FX / CFD contracts ADV (millions) (1)
| $ | 8,918 | $ | 8,357 | 7% | $ | 8,989 | $ | 8,357 | 8% |
FX / CFD contracts RPM | $ | 89 | $ | 120 | (26)% | $ | 98 | $ | 120 | (18)% |
(1)
| The ADV for the three months and year ended September 30, 2020 is reflective of the ADV post-acquisition of Gain, and was calculated based on 43 trading days with the activities of Gain, acquired effective August 1, 2020. |
Three Months Ended September 30, | Year Ended September 30, | |||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||
Revenues: | ||||||||||
Sales of physical commodities | $ | - | $ | - | -% | $ | - | $ | - | -% |
Principal gains, net | 31.9 | 27.4 | 16% | 128.8 | 110.8 | 16% | ||||
Commission and clearing fees | 1.4 | 1.2 | 17% | 5.2 | 4.1 | 27% | ||||
Consulting, management, account fees | 1.1 | 0.6 | 83% | 3.3 | 2.5 | 32% | ||||
Interest income | - | - | -% | - | - | -% | ||||
Total revenues | 34.4 | 29.2 | 18% | 137.3 | 117.4 | 17% | ||||
Cost of sales of physical commodities | - | - | -% | - | - | -% | ||||
Operating revenues | 34.4 | 29.2 | 18% | 137.3 | 117.4 | 17% | ||||
Transaction-based clearing expenses | 1.6 | 1.2 | 33% | 6.5 | 5.1 | 27% | ||||
Introducing broker commissions | 0.4 | 0.3 | 33% | 0.8 | 0.7 | 14% | ||||
Interest expense | - | - | -% | 0.1 | 0.1 | -% | ||||
Net operating revenues | 32.4 | 27.7 | 17% | 129.9 | 111.5 | 17% | ||||
Variable compensation and benefits | 7.0 | 5.4 | 30% | 26.2 | 21.9 | 20% | ||||
Net contribution | 25.4 | 22.3 | 14% | 103.7 | 89.6 | 16% | ||||
Fixed compensation and benefits | 4.0 | 3.1 | 29% | 14.7 | 11.8 | 25% | ||||
Other fixed expenses | 2.8 | 2.6 | 8% | 10.3 | 9.2 | 12% | ||||
Bad debts | 0.2 | - | n/m | 0.2 | - | n/m | ||||
Total non-variable direct expenses | 7.0 | 5.7 | 23% | 25.2 | 21.0 | 20% | ||||
Segment income | $ | 18.4 | $ | 16.6 | 11% | $ | 78.5 | $ | 68.6 | 14% |
Three Months Ended September 30, | Year Ended September 30, | |||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||
Operating revenues (in millions): | ||||||||||
Payments | $ | 33.3 | $ | 28.4 | 17% | $ | 133.8 | $ | 114.6 | 17% |
Other | 1.1 | 0.8 | 38% | 3.5 | 2.8 | 25% | ||||
$ | 34.4 | $ | 29.2 | 18% | $ | 137.3 | $ | 117.4 | 17% | |
Select data (all $ amounts are U.S. dollar or U.S. dollar equivalents): | ||||||||||
Global Payments ADV (millions) | $ | 54 | $ | 42 | 29% | $ | 54 | $ | 45 | 20% |
Global Payments RPM | $ | 9,573 | $ | 10,524 | (9)% | $ | 9,921 | $ | 10,092 | (2)% |
Three Months Ended September 30, | Year Ended September 30, | |||||||||||
(in millions) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||
Compensation and benefits: | ||||||||||||
Variable compensation and benefits | $ | 7.9 | $ | 15.3 | (48) | % | 37.6 | 40.5 | (7) | % | ||
Fixed compensation and benefits | 32.7 | 24.5 | 33 | % | 119.1 | 86.8 | 37 | % | ||||
40.6 | 39.8 | 2 | % | 156.7 | 127.3 | 23 | % | |||||
Other expenses: | ||||||||||||
Occupancy and equipment rental | 8.1 | 8.2 | (1) | % | 33.1 | 23.4 | 41 | % | ||||
Non-trading technology and support | 9.8 | 7.5 | 31 | % | 31.8 | 22.2 | 43 | % | ||||
Professional fees | 7.2 | 8.8 | (18) | % | 23.0 | 22.0 | 5 | % | ||||
Depreciation and amortization | 5.9 | 4.7 | 26 | % | 19.0 | 16.5 | 15 | % | ||||
Communications | 1.7 | 2.0 | (15) | % | 6.5 | 6.2 | 5 | % | ||||
Selling and marketing | 0.7 | 0.3 | 133 | % | 1.7 | 4.1 | (59) | % | ||||
Trading systems and market information | 1.7 | 0.5 | 240 | % | 4.2 | 2.6 | 62 | % | ||||
Travel and business development | 0.1 | 0.1 | - | % | 1.3 | 2.3 | (43) | % | ||||
Other | 7.0 | 7.5 | (7) | % | 23.4 | 19.2 | 22 | % | ||||
42.2 | 39.6 | 7 | % | 144.0 | 118.5 | 22 | % | |||||
Total compensation and other expenses | $ | 82.8 | $ | 79.4 | 4 | % | $ | 300.7 | $ | 245.8 | 22 | % |
(Unaudited) (in millions, except for share and per share amounts) | September 30, 2021 | September 30, 2020 | ||
Summary asset information: | ||||
Cash and cash equivalents | $ | 1,109.6 | $ | 952.6 |
Cash, securities and other assets segregated under federal and other regulations | $ | 2,274.4 | $ | 1,920.2 |
Securities purchased under agreements to resell | $ | 2,239.9 | $ | 1,696.2 |
Securities borrowed | $ | 2,163.1 | $ | 1,440.0 |
Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net | $ | 5,292.9 | $ | 3,629.9 |
Receivables from clients, net and notes receivable, net | $ | 467.2 | $ | 413.1 |
Financial instruments owned, at fair value | $ | 4,354.6 | $ | 2,727.7 |
Physical commodities inventory, net | $ | 447.5 | $ | 281.1 |
Property and equipment, net | $ | 93.3 | $ | 62.1 |
Operating right of use assets | $ | 125.3 | $ | 101.5 |
Goodwill and intangible assets, net | $ | 100.8 | $ | 109.5 |
Other | $ | 171.0 | $ | 141.0 |
Summary liability and stockholders' equity information: | ||||
Accounts payable and other accrued liabilities | $ | 305.1 | $ | 272.6 |
Operating lease liabilities | $ | 146.6 | $ | 118.7 |
Payables to clients | $ | 7,835.9 | $ | 5,689.0 |
Payables to broker-dealers, clearing organizations and counterparties | $ | 613.5 | $ | 537.5 |
Payables to lenders under loans | $ | 248.6 | $ | 268.1 |
Senior secured borrowings, net | $ | 507.0 | $ | 515.5 |
Income taxes payable | $ | 13.2 | $ | 22.6 |
Securities sold under agreements to repurchase | $ | 4,340.9 | $ | 3,155.5 |
Securities loaned | $ | 2,153.6 | $ | 1,441.9 |
Financial instruments sold, not yet purchased, at fair value | $ | 1,771.2 | $ | 686.0 |
Stockholders' equity | $ | 904.0 | $ | 767.5 |
Common stock outstanding - shares | 19,823,910 | 19,376,594 | ||
Net asset value per share | $ | 45.60 | $ | 39.61 |
Three Months Ended September 30, | Year Ended September 30, | |||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | ||||
Reconciliation of income before tax to adjusted non-GAAP amounts: | ||||||||
Income before tax, as reported (GAAP) | $ | 4.9 | $ | 79.9 | $ | 154.1 | $ | 206.7 |
Gains on acquisitions: | ||||||||
Attributable to tangible assets acquired | - | (46.1) | (3.3) | (46.2) | ||||
Attributable to intangible assets acquired | - | (35.7) | - | (35.7) | ||||
Total gains on acquisition | - | (81.8) | (3.3) | (81.9) | ||||
Acquisition related transaction costs and other expenses: | ||||||||
Amortization of intangible assets acquired | 2.7 | 1.7 | 10.6 | 1.7 | ||||
Investment banking | - | 3.3 | - | 5.2 | ||||
Financing fees | - | 4.4 | - | 4.4 | ||||
Trade system impairment | - | 5.7 | - | 5.7 | ||||
FX loss, net on internal merger (1)
| - | - | 4.5 | - | ||||
Total acquisition related transaction costs and other expenses | 2.7 | 15.1 | 15.1 | 17.0 | ||||
Adjusted income before tax, (non-GAAP) | $ | 7.6 | $ | 13.2 | $ | 165.9 | $ | 141.8 |
Reconciliation of income tax expense to adjusted non-GAAP amounts: | ||||||||
Income tax (benefit) expense, as reported (GAAP) | $ | (2.4) | $ | 2.5 | $ | 37.8 | $ | 37.1 |
Tax effect of the gains on acquisitions | - | - | - | - | ||||
Tax effect of the acquisition related transaction costs and other expenses | 0.4 | 4.5 | 3.8 | 5.0 | ||||
Adjusted income tax (benefit) expense, (non-GAAP) | $ | (2.0) | $ | 7.0 | $ | 41.6 | $ | 42.1 |
Reconciliation of net income to adjusted non-GAAP amounts: | ||||||||
Net income, as reported (GAAP) | $ | 7.3 | $ | 77.4 | $ | 116.3 | $ | 169.6 |
Total gains on acquisitions, net of tax | - | (81.8) | (3.3) | (81.9) | ||||
Acquisition related transaction costs and other expenses, net of tax | 2.3 | 10.6 | 11.3 | 12.0 | ||||
Adjusted net income (non-GAAP) | $ | 9.6 | $ | 6.2 | $ | 124.3 | $ | 99.7 |
Quarter Ended September 30, | Fiscal Year Ended September 30, | |||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | ||||
Calculation of average stockholders' equity: | ||||||||
Total stockholders' equity - beginning of period, as reported (GAAP) | $ | 901.4 | $ | 688.8 | $ | 767.5 | $ | 594.2 |
Total stockholders' equity - end of period, as reported (GAAP) | 904.0 | 767.5 | 904.0 | $ | 767.5 | |||
Average stockholders' equity | $ | 902.7 | $ | 728.2 | $ | 835.8 | $ | 680.9 |
Calculation of return on equity: | ||||||||
Net income, as reported (GAAP) | $ | 7.3 | $ | 77.4 | $ | 116.3 | $ | 169.6 |
Average stockholders' equity | $ | 902.7 | $ | 728.2 | $ | 835.8 | $ | 680.9 |
Return on equity | 3.2 | % | 42.5 | % | 13.9 | % | 24.9 | % |
Calculation of adjusted return on equity (non-GAAP) | ||||||||
Adjusted net income (non-GAAP) | $ | 9.6 | $ | 6.2 | $ | 124.3 | $ | 99.7 |
Average stockholders' equity | $ | 902.7 | $ | 728.2 | $ | 835.8 | $ | 680.9 |
Adjusted return on equity (non-GAAP) | 4.3 | % | 3.4 | % | 14.9 | % | 14.6 | % |
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StoneX Group Inc. published this content on 29 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 November 2021 21:30:17 UTC.