INTL FCStone Inc. (NASDAQ:INTL) Q4 2017 Earnings Conference Call Transcript
Dec 14, 2017 • 09:00 am ET
Good day, ladies and gentlemen and welcome to the INTL FCStone Fourth Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.
As a reminder, today's conference is being recorded. I would now like to turn the call over to Mr. Bill Dunaway, CFO. Sir, you may begin.
Good morning. My name is Bill Dunaway. Welcome to the earnings conference call for our fiscal fourth quarter ended September 30, 2017. After the market closed yesterday, we issued a press release reporting our results for the fiscal fourth quarter. This release is available on our website, as well as a slide presentation which we will refer to on this call, in our discussions of the quarterly and year-to-date results. You'll need to sign on to the live webcast in order to view the presentation. Both the presentation and an archive of the webcast will also be available on our website, after the call's conclusion.
Before getting underway, we are required to advise you and all participants should know that the following discussion should be taken in conjunction with the most recent financial statements and notes thereto, as well as the Form 10-K filed with the SEC. This discussion may contain forward-looking statements within the meaning of Section 27A of Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
(Forward-Looking Cautionary Statements)
With that, I'll now turn the call over to Sean O'Connor, our CEO.
Thanks, Bill. Good morning, everyone and thanks for joining our fiscal 2017 fourth quarter earnings call. I'd like to start by discussing our significance in unexpected bad debt charge, which overshadows our otherwise strong fourth quarter results. We recognized that this is an unacceptable outcome.
For the better part of 15 years, my executive team and I, have worked to run a credible professional business that we believe can grow into a large and meaningful financial franchise. We have prided ourselves on using common sense, putting strong controls in place and always trying to do the right thing rather than the easy thing. We have to run the Company like this because we believe it earns us trust and credibility with all our key stakeholders, our investors, our customers, our banks and our stock.
In our business, you simply won't succeed without trust and credibility. We understand the seriousness of this unexpected loss and we take it very personally. That's why the executive team is committed to redoubling our efforts to ensure that this type of situation will not be repeated. The executive team will be receiving zero incentive bonus under the Executive Performance Plan for fiscal 2017.
This bad debt occurred in our relatively new physical coal trading business based in Singapore. We were acting as an intermediary between a supplier of coal from Indonesian mines and large international coal buying customers. We paid for and took delivery of coal on barges