Quarterly Operating Revenues of $776.9 million, up 47%
Quarterly Net Income of $69.5 million, ROE of 21.6%
Quarterly Diluted EPS of $3.25 per share
NEW YORK, Aug. 02, 2023 (GLOBE NEWSWIRE) -- StoneX Group Inc. (the “Company”; SNEX), a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise, today announced its financial results for the fiscal year 2023 third quarter ended June 30, 2023.
Sean M. O’Connor, the Company’s CEO, stated, “We achieved one of the strongest quarters in our history with operating revenues up 47%, diluted EPS up 37% and record adjusted net income of $71.8 million. These excellent results were achieved with solid transactional revenues, despite moderating volatility, and increased interest earnings on our client float. We believe that our financial performance continues to be a positive outlier in our industry and we are well-positioned to continue delivering strong results to our shareholders.”
StoneX Group Inc. Summary Financials
Consolidated financial statements for the Company will be included in our Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission (the “SEC”). Upon filing, the Quarterly Report on Form 10-Q will also be made available on the Company’s website at www.stonex.com.
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||
| (Unaudited) (in millions, except share and per share amounts) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||
| Revenues: | |||||||||||||||||||||
| Sales of physical commodities | $ | 14,319.2 | $ | 18,431.0 | (22 | )% | $ | 42,228.8 | $ | 48,214.1 | (12 | )% | |||||||||
| Principal gains, net | 300.0 | 295.2 | 2 | % | 810.8 | 869.8 | (7 | )% | |||||||||||||
| Commission and clearing fees | 126.8 | 126.9 | — | % | 375.5 | 381.6 | (2 | )% | |||||||||||||
| Consulting, management, and account fees | 39.2 | 27.7 | 42 | % | 119.7 | 77.2 | 55 | % | |||||||||||||
| Interest income | 262.7 | 50.1 | 424 | % | 685.7 | 112.3 | 511 | % | |||||||||||||
| Total revenues | 15,047.9 | 18,930.9 | (21 | )% | 44,220.5 | 49,655.0 | (11 | )% | |||||||||||||
| Cost of sales of physical commodities | 14,271.0 | 18,402.1 | (22 | )% | 42,084.4 | 48,131.0 | (13 | )% | |||||||||||||
| Operating revenues | 776.9 | 528.8 | 47 | % | 2,136.1 | 1,524.0 | 40 | % | |||||||||||||
| Transaction-based clearing expenses | 66.7 | 74.7 | (11 | )% | 203.2 | 222.1 | (9 | )% | |||||||||||||
| Introducing broker commissions | 43.4 | 41.2 | 5 | % | 122.4 | 122.7 | — | % | |||||||||||||
| Interest expense | 216.0 | 28.1 | 669 | % | 549.0 | 57.9 | 848 | % | |||||||||||||
| Interest expense on corporate funding | 14.9 | 10.7 | 39 | % | 44.2 | 33.1 | 34 | % | |||||||||||||
| Net operating revenues | 435.9 | 374.1 | 17 | % | 1,217.3 | 1,088.2 | 12 | % | |||||||||||||
| Compensation and other expenses: | |||||||||||||||||||||
| Variable compensation and benefits | 130.5 | 123.9 | 5 | % | 370.8 | 348.4 | 6 | % | |||||||||||||
| Fixed compensation and benefits | 96.1 | 78.3 | 23 | % | 287.3 | 235.9 | 22 | % | |||||||||||||
| Trading systems and market information | 19.4 | 16.0 | 21 | % | 54.9 | 49.0 | 12 | % | |||||||||||||
| Professional fees | 13.9 | 13.2 | 5 | % | 41.1 | 38.9 | 6 | % | |||||||||||||
| Non-trading technology and support | 13.7 | 12.9 | 6 | % | 44.7 | 38.7 | 16 | % | |||||||||||||
| Occupancy and equipment rental | 10.0 | 9.2 | 9 | % | 29.5 | 26.7 | 10 | % | |||||||||||||
| Selling and marketing | 13.7 | 16.0 | (14 | )% | 40.8 | 41.3 | (1 | )% | |||||||||||||
| Travel and business development | 6.2 | 4.9 | 27 | % | 17.7 | 10.8 | 64 | % | |||||||||||||
| Communications | 2.4 | 2.0 | 20 | % | 6.7 | 6.0 | 12 | % | |||||||||||||
| Depreciation and amortization | 13.8 | 11.7 | 18 | % | 39.6 | 32.1 | 23 | % | |||||||||||||
| Bad debts, net of recoveries | 6.3 | (0.7 | ) | n/m | 10.0 | 11.4 | (12 | )% | |||||||||||||
| Other | 15.4 | 15.8 | (3 | )% | 50.1 | 44.6 | 12 | % | |||||||||||||
| Total compensation and other expenses | 341.4 | 303.2 | 13 | % | 993.2 | 883.8 | 12 | % | |||||||||||||
| Gain on acquisition and other gain | — | — | n/m | 23.5 | 6.4 | 267 | % | ||||||||||||||
| Income before tax | 94.5 | 70.9 | 33 | % | 247.6 | 210.8 | 17 | % | |||||||||||||
| Income tax expense | 25.0 | 21.8 | 15 | % | 59.8 | 56.0 | 7 | % | |||||||||||||
| Net income | $ | 69.5 | $ | 49.1 | 42 | % | $ | 187.8 | $ | 154.8 | 21 | % | |||||||||
| Earnings per share: | |||||||||||||||||||||
| Basic | $ | 3.35 | $ | 2.42 | 38 | % | $ | 9.12 | $ | 7.69 | 19 | % | |||||||||
| Diluted | $ | 3.25 | $ | 2.37 | 37 | % | $ | 8.82 | $ | 7.52 | 17 | % | |||||||||
| Weighted-average number of common shares outstanding: | |||||||||||||||||||||
| Basic | 20,040,167 | ||||||||||||||||||||
