INTL FCStone 2012 Annual Report Download - page 55
Download and view the complete annual report
Please find page 55 of the 2012 INTL FCStone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.INTL FCSTONE INC.Form10K 39
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
(in millions)
Year Ended September 30,
2012 % Change 2011 % Change 2010
Reconciliation of C&RM net contribution from GAAP
toadjusted, non-GAAP numbers:
Total C&RM net contribution $ 143.0 $ 151.6 $ 70.9
Gross marked-to-market adjustment (non-GAAP) 5.9 (8.4) 6.0
C&RM adjusted net contribution (non-GAAP) $ 148.9 $ 143.2 $ 76.9
Reconciliation of C&RM segment income from GAAP
toadjusted, non-GAAP numbers:
Total C&RM segment income $ 69.7 $ 93.5 $ 32.8
Gross marked-to-market adjustment (non-GAAP) 5.9 (8.4) 6.0
C&RM adjusted segment income (non-GAAP) $ 75.6 $ 85.1 $ 38.8
Reconciliation of Other net contribution from GAAP
toadjusted, non-GAAP numbers:
Total Other net contribution $ 10.3 $ 10.0 $ 7.1
Gross marked-to-market adjustment (non-GAAP) 0.9 — —
Other adjusted net contribution (non-GAAP) $ 11.2 $ 10.0 $ 7.1
Reconciliation of Other segment income from GAAP
toadjusted, non-GAAP numbers:
Total Other segment income $ 5.4 $ 5.6 $ 3.7
Gross marked-to-market adjustment (non-GAAP) 0.9 — —
Other adjusted segment income (non-GAAP) $ 6.3 $ 5.6 $ 3.7
Reconciliation of total operating revenues from GAAP
toadjusted, non-GAAP numbers:
Total operating revenues $ 457.7 $ 423.2 $ 269.0
Gross marked-to-market adjustment (non-GAAP) 6.8 (8.4) 6.0
Operating revenue not assigned to a segment 0.2 (0.4) (0.2)
Adjusted segment operating revenues (non-GAAP) $ 464.7 $ 414.4 $ 274.8
Reconciliation of net contribution from GAAP
toadjusted, non-GAAP numbers:
Total net contribution $ 228.7 $ 229.5 $ 128.1
Gross marked-to-market adjustment (non-GAAP) 6.8 (8.4) 6.0
Adjusted net contribution (non-GAAP) $ 235.5 $ 221.1 $ 134.1
Reconciliation of segment income from GAAP
toadjusted, non-GAAP numbers:
Total net segment income $ 110.1 $ 133.9 $ 65.0
Gross marked-to-market adjustment (non-GAAP) 6.8 (8.4) 6.0
Adjusted net segment income (non-GAAP) $ 116.9 $ 125.5 $ 71.0
2012 vs. 2011 Segment Analysis
e net contribution of all the Company’s business segments
decreased 0% to $228.7 million in 2012 as compared to
$229.5million in 2011. e adjusted net contribution of all the
Company’s business segments increased 7% to $235.5 million
in 2012 as compared with $221.1 million in 2011.
Net contribution is one of the key measures used by management
to assess the performance of each segment and for decisions
regarding the allocation of the Company’s resources. Net
contribution is calculated as revenue less direct cost of sales,
interest expense, clearing and related expenses, introducing broker
commissions and variable compensation. Variable compensation
paid to risk management consultants and traders generally
represents a xed percentage of an amount equal to revenues
generated, and in some cases, revenues produced less clearing
and related charges, base salaries and an overhead allocation.
Total segment income was $110.1 million in 2012, compared
with $133.9 million in 2011. Total adjusted segment income was
$116.9 million in 2012, compared with $125.5 million in 2011.
Segment income is calculated as net contribution less non-
variable direct expenses of the segment. ese non-variable
direct expenses include trader base compensation and bene ts,
operational employee compensation and bene ts, communication
and data services, business development, professional fees, bad
debt expense, trade errors and direct marketing expenses.
Commodity and Risk Management Services – Operating
revenues under U.S. GAAP decreased from $252.6 million in
2011 to $246.0 million in 2012. Adjusted operating revenues