INTL FCStone Inc. (NASDAQ:INTL) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 09:00 am ET


INTL FCStone Inc. (NASDAQ:INTL) Q1 2019 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to INTL FCStone First Quarter Fiscal Year 2019 Earnings 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. (Operator Instructions). As a reminder, today's conference is being recorded.

I would now like to turn the call over to Bill Dunaway, CFO. Mr. Dunaway you may begin.

William J. Dunaway

Good morning. My name is Bill Dunaway. Welcome to our earnings conference call for our fiscal first quarter ended December 31, 2018. After the market closed yesterday, we issued a press release reporting our results for the first fiscal quarter of 2019.

This release is available on our website at as well as a slide presentation which we will refer to on this call in our discussions of our quarterly results. You will need to sign on to the live webcast in order to view the presentation. 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 note that the following discussion should be taken in conjunction with the most recent financial statements and notes thereto as well as the Form 10-Q filed with the SEC. This discussion may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

These forward-looking statements involve known and unknown risks and uncertainties which are detailed in our filings with the SEC. Although the Company believes that its forward-looking statements are based upon reasonable assumptions regarding its business and future market conditions there can be no assurances that the Company's actual results will not differ materially from any results expressed or implied by the Company's forward-looking statements.

The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Participants are cautioned that any forward-looking statements are not guarantees of future performance.

With that I'll now turn the call over to Sean O'Connor the Company's CEO.

Sean M. O'Connor

Thanks Bill. Good morning everyone and thanks for joining our fiscal 2019 first quarter earnings call. Our strong earnings and momentum from 2018 continued into our first quarter of fiscal 2019. Despite most banks reporting a decline in trading revenues in the December quarter, we reported a 25% increase in operating revenues from a year ago and up 9% sequentially from Q4.

All of our businesses recorded strong increases in transactional volumes with the only exception being FX Prime Brokerage. All of our segments except Commercial Hedging showed double-digit growth in both; operating revenue and segment income. Commercial Hedging had stronger transactional volume growth, but reduced revenues.

Segment income was a record in our Global Payments and Clearing & Execution Services segment as well as in our Equity Capital Markets business because of increased volatility and market share.