INTL FCStone 2014 Annual Report Download - page 8

The Company earned $19.3 million on $322 million
of net operating revenues, and ended the year with
shareholders’ equity of $345 million. Net operating
revenues for our fourth quarter of 2014, as well as
the full scal year, established new records for the
company as well as for the Global Payments and
Securities segments.
Excluding the one-time gain in FY2013 of $9.2 million
($5.8 million after-tax) that was recognized from the
sale of our LME and Kansas City Board of Trade shares,
net operating revenues were up 7% and net income
from continuing operations were up 53%, while costs
were held to a modest 3% increase.
The Company’s
improved net operating
revenues were driven
by our largest segment,
Commercial Hedging, as
well as by strong growth
in our Global Payments
segment, which
increased 31%, and
continued growth in our
Securities business. The
Clearing and Execution
segment showed
slightly lower revenues,
although net segment
income increased as we
focused on margins and
costs in this business. Finally, net operating revenue
from Physical Commodities, which is our smallest
segment, declined as we restructured this business.
During the past year, we also continued to expand
our capabilities and range of services. Toward that
end, following the conclusion of the scal year,
we completed the acquisition of G.X. Clarke & Co.,
an institutional xed income business. The G.X.
Clarke team is experienced and well-respected, has
demonstrated expertise in this marketplace and
shares our philosophy of providing a value-added
service to clients. This acquisition rounds out our
securities product offering and also brings with it deep
relationships with more than 800 institutional clients,
many of whom may be interested in taking advantage
of our other capabilities.
OUR PHILOSOPHY
In 2003, the current management team recongured
the Company as a provider of nancial services
focused on underserved clients in niche markets.
From the outset, we have had to earn our way into
relationships by means of deep and specialized
knowledge of our clients’ markets, high-touch, value-
added service and a total, unwavering
commitment to serving our clients’
best interests. As we have continued
to grow, our client-rst philosophy and
culture has become deeply embedded
in all that we do. Please take the time
to read our Corporate Vision statement
on our website, which sets out the
deeply held values and principles that
we as an organization stand for.
Our common sense approach has
allowed us to grow and prosper as
the nancial markets have endured
wrenching change. From the original
group of less than 10 professionals
12 years ago, we now employ more
than 1,100 professionals serving some
20,000 accounts located in nearly every country across
the globe. Since the onset of the nancial crisis, many
of our competitors have disappeared or have had
to re-assess their outdated business models, while
others have chosen to retreat into a narrower product
offering as regulations became more complex and
costly to implement. The INTL FCStone management
team took a different route. We expanded our
capabilities; acquired attractive franchises that had
a similar client-focused philosophy and helped to
position us in key markets, products or verticals;
Chief Executive’s Report
INTL FCStone’s performance in FY2014 was substantially improved at almost
every level over last year’s disappointing results.
“Operating revenues
for FY2014 and for our
fourth quarter established
records for the company”