INTL FCStone 2011 Annual Report Download - page 50

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INTL FCSTONE INC.Form10K36
PARTII
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Segment Information
e Company reports its operating segments based on services provided to customers. e following table shows information
concerning the Company’s principal business segments.
(in millions)
Year Ended September30,
2011
%
Change 2010
%
Change 2009
SEGMENT RESULTS
Commodityand Risk Management Services (C&RM)
Operating revenues $ 252.6 95% $ 129.8 576% $ 19.2
Gross marked-to-market adjustment (non-GAAP) (8.4) n/m 6.0 n/m 6.9
Adjusted operating revenues (non-GAAP) 244.2 80% 135.8 420% 26.1
Interest expense 8.4 35% 6.2 170% 2.3
Variable direct expenses 92.6 76% 52.7 675% 6.8
Adjusted net contribution (non-GAAP) 143.2 86% 76.9 352% 17.0
Non-variable direct expenses 58.1 52% 38.1 354% 8.4
Adjusted segment income (non-GAAP) 85.1 119% 38.8 351% 8.6
Foreign Exchange
Operating revenues $ 59.3 25% $ 47.5 57% $ 30.3
Interest expense 1.0 43% 0.7 75% 0.4
Variable direct expenses 21.2 13% 18.8 96% 9.6
Net contribution 37.1 33% 28.0 38% 20.3
Non-variable direct expenses 9.1 47% 6.2 11% 5.6
Segment income 28.0 28% 21.8 48% 14.7
Securities
Operating revenues $ 30.5 47% $ 20.8 (47)% $ 39.1
Interest expense 0.4 (20)% 0.5 n/m —
Variable direct expenses 13.6 53% 8.9 (45)% 16.2
Net contribution 16.5 45% 11.4 (50)% 22.9
Non-variable direct expenses 14.6 152% 5.8 35% 4.3
Segment income 1.9 (66)% 5.6 (70)% 18.6
Clearing& Execution Services (CES)
Operating revenues $ 66.1 7% $ 61.8 n/m $ —
Interest expense 0.9 (50)% 1.8 n/m —
Variable direct expenses 50.9 3% 49.3 n/m —
Net contribution 14.3 34% 10.7 n/m —
Non-variable direct expenses 9.4 (2)% 9.6 n/m —
Segment income 4.9 345% 1.1 n/m —
Other
Operating revenues $ 14.3 61% $ 8.9 162% $ 3.4
Interest expense 1.3 550% 0.2 n/m 1.2
Variable direct expenses 3.0 88% 1.6 60% 1.0
Net contribution 10.0 41% 7.1 492% 1.2
Non-variable direct expenses 4.4 29% 3.4 79% 1.9
Segment income 5.6 51% 3.7 n/m (0.7)
Total Segment Results
Operating revenues $ 422.8 57% $ 268.8 192% $ 92.0
Gross marked-to-market adjustment (non-GAAP) (8.4) n/m 6.0 (13)% 6.9
Adjusted operating revenues (non-GAAP) 414.4 51% 274.8 178% 98.9
Interest expense 12.0 28% 9.4 141% 3.9
Variable direct expenses 181.3 38% 131.3 291% 33.6