INTL FCStone 2005 Annual Report Download - page 24

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In fiscal 2004, 76% of the Company’s revenues were generated by international equity market-making.
However, the acquisition in July 2004 of INTL Global Currencies and growth in other areas have helped the
Company to have a more balanced and diversified revenue stream. In fiscal 2005, 46% of the Company’s
revenues were generated by international equity market-making and 40% by foreign exchange/commodities
trading. The Company believes that it is now less vulnerable to cycles in individual product areas and that its
strategy of linking expenses to revenues also helps to lessen the negative impact of adverse market conditions
which occur periodically in international securities and financial markets.
The Company’s activities are currently divided into international equities market-making, international debt
capital markets, foreign exchange/commodities trading and asset management. In fiscal 2006, the commodities
trading business will be reported as a separate segment. The Company is focused on increasing revenue and
market share for each of its established business activities. The Company anticipates a greater rate of growth in
the debt capital markets, commodities trading, and asset management businesses than in the Company’s other
business activities, given the lower base from which they are developing.
Fiscal Year 2005 Compared to Fiscal Year 2004
The following table reflects the principal components of the Company’s revenue as a percentage of total
revenue for fiscal year 2005 and fiscal year 2004.
Fiscal Year
Revenue
Percentage of
Total
Revenue
Fiscal Year
Revenue
Percentage of
Total
Revenue
Percentage
Change in
Revenue
2004-20052005 2005 2004 2004
Trading revenue (Net dealer inventory
and investment gains) ............. $24,851,000 95% $21,407,000 97% 16%
Commissions ...................... 513,000 2% 904,000 4% -43%
Interest income .................... 636,000 2% 167,000 Less than 1% 280%
Dividendexpense,net ............... (89,000) Less than -1% (400,000) -2% 78%
Equity in income (loss) from asset
managementjointventure.......... 217,000 Less than 1% (41,000) Less than -1% n.m.
Other ............................ 12,000 Lessthan1% 1,000 n.m. n.m.
Total revenue ..................... $26,140,000 100% $22,038,000 100% 19%
n.m. = not meaningful
The following table reflects the sources of the Company’s revenues as a percentage of the Company’s total
revenue for fiscal year 2005 and fiscal year 2004.
Fiscal Year
Revenue
Percentage of
Total
Revenue
Fiscal Year
Revenue
Percentage of
Total
Revenue
Percentage
Change in
Revenue
2004-20052005 2005 2004 2004
Equitymarketmaking................. $12,052,000 46% $16,709,000 76% -28%
Debt capital markets .................. 2,414,000 9% 2,622,000 12% -8%
Foreign exchange/commodities ......... 10,526,000 40% 2,560,000 12% 311%
Other .............................. 1,148,000 5% 147,000 n.m. 681%
Total Revenue ...................... $26,140,000 100% $22,038,000 100% 19%
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