• StoneX Group Inc. Reports Fiscal 2021 Third Quarter Financial Results

    Source: Nasdaq GlobeNewswire / 09 Aug 2021 15:15:01   America/Chicago

    Quarterly Operating Revenues of $431.5 million, up 34%

    Quarterly Net Income of $34.2 million

    Quarterly Diluted EPS of $1.67 per share, ROE of 15.5%

    NEW YORK, Aug. 09, 2021 (GLOBE NEWSWIRE) -- StoneX Group Inc. (the “Company”; NASDAQ: SNEX), a diversified global brokerage and financial services firm providing execution, risk management and advisory services, market intelligence and clearing services across multiple asset classes and markets around the world, today announced its financial results for the fiscal year 2021 third quarter ended June 30, 2021.

    Sean M. O’Connor, CEO of StoneX Group Inc., stated, “We continued to deliver strong financial results in our fiscal third quarter with a 34% increase in operating revenues and an ROE in excess of our 15% target. I am especially pleased that our year-to-date earnings are up 18% versus last year's exceptional results which were buoyed by the extreme market volatility resulting from the onset of the COVID-19 pandemic in early 2020. The continued growth in our trading volumes across nearly all of our platforms, as well as the increase in our client equity, which now stands at nearly $6 billion, reflect the expansion of our customer footprint and their deeper engagement with StoneX."

    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 SEC. 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)2021 2020  %
    Change    		 2021 2020  %
    Change
    Revenues:           
    Sales of physical commodities$9,785.9  $7,944.5  23 % $29,473.7  $38,939.4  (24)%
    Principal gains, net232.1  161.0  44 % 700.7  442.0  59 %
    Commission and clearing fees124.0  96.1  29 % 373.2  299.9  24 %
    Consulting, management, and account fees22.3  19.4  15 % 67.4  63.3  6 %
    Interest income27.8  22.4  24 % 72.4  110.1  (34)%
    Total revenues10,192.1  8,243.4  24 % 30,687.4  39,854.7  (23)%
    Cost of sales of physical commodities9,760.6  7,920.8  23 % 29,404.4  38,888.5  (24)%
    Operating revenues431.5  322.6  34 % 1,283.0  966.2  33 %
    Transaction-based clearing expenses67.1  55.3  21 % 207.3  165.4  25 %
    Introducing broker commissions41.8  24.0  74 % 120.8  79.8  51 %
    Interest expense14.5  11.5  26 % 35.5  70.4  (50)%
    Interest expense on corporate funding10.1  3.9  159 % 31.1  8.8  253 %
    Net operating revenues298.0  227.9  31 % 888.3  641.8  38 %
    Compensation and other expenses:           
    Variable compensation and benefits102.4  78.5  30 % 292.7  215.7  36 %
    Fixed compensation and benefits74.9  54.0  39 % 223.2  157.5  42 %
    Trading systems and market information14.4  11.8  22 % 42.9  33.4  28 %
    Professional fees9.5  6.1  56 % 27.8  16.8  65 %
    Non-trading technology and support11.3  6.9  64 % 32.8  18.8  74 %
    Occupancy and equipment rental9.7  5.4  80 % 25.8  15.3  69 %
    Selling and marketing8.1  0.5  1,520 % 23.4  6.1  284 %
    Travel and business development1.3  0.7  86 % 2.8  8.4  (67)%
    Communications2.3  1.7  35 % 7.0  4.8  46 %
    Depreciation and amortization9.7  4.4  120 % 26.7  12.5  114 %
    Bad debts1.3  1.8  (28)% 3.7  6.2  (40)%
    Other10.7  7.1  51 % 33.9  19.6  73 %
    Total compensation and other expenses255.6  178.9  43 % 742.7  515.1  44 %
    Gain on acquisitions and other gains3.6  —  n/m   3.6  0.1  n/m  
    Income before tax46.0  49.0  (6)% 149.2  126.8  18 %
    Income tax expense11.8  12.4  (5)% 40.2  34.6  16 %
    Net income$34.2  $36.6  (7)% $109.0  $92.2  18 %
    Earnings per share:           
    Basic$1.72  $1.90  (9)% $5.53  $4.78  16 %
    Diluted$1.67  $1.87  (11)% $5.38  $4.71  14 %
    Weighted-average number of common shares outstanding:           
    Basic19,255,452  18,807,104  2 % 19,102,244  18,809,823  2 %
    Diluted19,855,226  19,103,166  4 % 19,669,397  19,122,681  3 %
    n/m = not meaningful to present as a percentage           
                

    The following table presents our consolidated operating revenues by segment for the periods indicated.

     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020  % Change 2021 2020 % Change
    Segment operating revenues represented by:           
    Commercial$152.2  $104.3  46 % $402.1  $323.7  24 %
    Institutional173.0  169.8  2 % 530.1  487.9  9 %
    Retail77.7  22.1  252 % 261.6  71.5  266 %
    Global Payments35.0  27.4  28 % 102.9  88.2  17 %
    Corporate Unallocated(2.0) 2.3  (187)% (1.3) 11.5  (111)%
    Eliminations(4.4) (3.3) 33 % (12.4) (16.6) (25)%
    Operating revenues$431.5  $322.6  34 % $1,283.0  $966.2  33 %

    The following table presents our consolidated income by segment for the periods indicated.

     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020  % Change 2021 2020 % Change
    Segment income represented by:           
    Commercial$60.4  $37.2  62 % $148.1  $107.6  38%
    Institutional46.5  53.8  (14)% 143.3  130.5  10%
    Retail6.0  3.8  58 % 55.9  13.7  308%
    Global Payments20.3  15.9  28 % 60.1  52.0  16%
    Total segment income$133.2  $110.7  20 % $407.4  $303.8  34%
    Reconciliation of segment income to income before tax:                 
    Segment income$133.2  $110.7  20 % $407.4  $303.8  34%
    Net costs not allocated to operating segments(90.8) (61.7) 47 % (261.8) (177.1) 48%
    Gain on acquisitions and other gains3.6  —  n/m   3.6  0.1  n/m 
    Income before tax$46.0  $49.0  (6)% $149.2  $126.8  18%

    Key Operating Metrics

    The tables below present a disaggregation of consolidated operating revenues and select operating data and metrics used by management in evaluating our performance, for the periods indicated.

    All $ amounts are U.S. dollar or U.S. dollar equivalentsThree Months Ended June 30, Nine Months Ended June 30,
     2021 2020 % Change 2021 2020 % Change
    Operating Revenues (in millions):           
    Listed derivatives$101.8  $75.6  35% $297.9  $245.9  21%
    OTC derivatives49.7  21.4  132% 109.0  88.6  23%
    Securities137.1  136.2  1% 421.5  357.5  18%
    FX / Contract For Difference (“CFD”) contracts51.8  4.8  979% 186.3  18.3  918%
    Global payments34.1  26.8  27% 100.5  86.2  17%
    Physical contracts37.2  39.3  (5)% 110.5  83.2  33%
    Interest / fees earned on client balances7.0  4.6  52% 18.1  37.9  (52)%
    Other19.2  14.9  29% 52.9  53.7  (1)%
    Corporate Unallocated(2.0) 2.3  (187)% (1.3) 11.5  (111)%
    Eliminations(4.4) (3.3) 33% (12.4) (16.6) (25)%
     $431.5  $322.6  34% $1,283.0  $966.2  33%
                
    Volumes and Other Select Data (all $ amounts are U.S. dollar or U.S. dollar equivalents):       
    Listed derivatives (contracts, 000’s)35,756  37,627  (5)% 110,097  119,299  (8)%
    Listed derivatives, average rate per contract (1)$2.75  $1.89  46% $2.59  $1.91  36%
    Average client equity - listed derivatives (millions)$3,967  $3,027  31% $3,735  $2,576  45%
    Over-the-counter (“OTC”) derivatives (contracts, 000’s)771  540  43% 1,889  1,638  15%
    OTC derivatives, average rate per contract$64.17  $39.23  64% $57.27  $53.62  7%
    Securities average daily volume (“ADV”) (millions)$2,901  $1,765  64% $2,687  $1,746  54%
    Securities rate per million (“RPM”) (2)$603  $1,040  (42)% $681  $883  (23)%
    Average money market / FDIC sweep client balances (millions)$1,611  $1,261  28% $1,431  $1,066  34%
    FX / CFD contracts ADV (millions) (3)$9,650  $897  976% $10,490  $1,354  675%
    FX / CFD contracts RPM$83  $84  (1)% $93  $73  27%
    Global Payments ADV (millions)$55  $40  38% $53  $46  15%
    Global Payments RPM$9,786  $10,650  (8)% $10,041  $9,957  1%


    (1)Give-up fees as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract.
    (2)Interest income related to securities lending is excluded from the calculation of Securities RPM.
    (3)The ADV for the three and nine months ended June 30, 2021 includes the ADV of Gain Capital Holdings, Inc. (“Gain”), which was acquired effective August 1, 2020. FX/CFD Contracts ADV from Gain is included in our Retail segment and our pre-existing FX activities are included in our Institutional segment.

    Operating Revenues

    Operating revenues increased $108.9 million, or 34%, to $431.5 million in the three months ended June 30, 2021 compared to $322.6 million in the three months ended June 30, 2020. The table above displays operating revenues disaggregated across the key products we provide to our clients.

    Operating revenues derived from listed derivatives increased $26.2 million, or 35%, to $101.8 million in the three months ended June 30, 2021 compared to $75.6 in the three months ended June 30, 2020. This growth was primarily driven by a 46% increase in the average rate per contract, principally due to an increase in volume from commercial customers, which was partially offset by an overall 5% decline in listed derivative contract volumes.

    Operating revenues derived from OTC transactions increased $28.3 million, or 132%, to $49.7 million in the three months ended June 30, 2021 compared to $21.4 million in the three months ended June 30, 2020. This was the result of growth in OTC contract volumes and the average rate per contract of 43% and 64%, respectively in the three months ended June 30, 2021. This growth was principally driven by increased volatility in both grain and energy markets.

    Operating revenue derived from securities transactions increased $0.9 million, or 1%, to $137.1 million in the three months ended June 30, 2021 compared to $136.2 million in the three months ended June 30, 2020. This growth was principally due to a 64% increase in ADV, which was partially offset by a 42% decline in the RPM as the prior year period benefited from wider spreads due to volatility driven by the onset of the COVID-19 pandemic.

    Operating revenues derived from FX/CFD contracts increased $47.0 million, or 979% to $51.8 million in the three months ended June 30, 2021 compared to $4.8 million in the three months ended June 30, 2020, as a result of an incremental $48.1 million in FX/CFD contracts operating revenues in our Retail segment resulting from the acquisition of Gain which was partially offset by lower FX operating revenues in our Institutional FX prime brokerage business.

    Operating revenues from global payments increased $7.3 million, or 27%, to $34.1 million in the three months ended June 30, 2021 compared to $26.8 million in the three months ended June 30, 2020, principally driven by a 38% increase in ADV.

    Operating revenues derived from physical contracts declined $2.1 million, or 5%, to $37.2 million in the three months ended June 30, 2021 compared to $39.3 million in the three months ended June 30, 2020. This decline was principally due to a decline in precious metals operating revenues, which was partially offset by an increase in agricultural and energy commodity revenues. The three months ended June 30, 2021 and 2020 include unrealized losses on derivative positions held against physical inventories carried at the lower of cost or net realizable value of $2.1 million and $2.5 million, respectively.

    Interest and fee income earned on client balances, which is associated with our listed and OTC derivative, correspondent clearing, and independent wealth management product offerings, increased $2.4 million, or 52%, to $7.0 million in the three months ended June 30, 2021 compared to $4.6 million in the three months ended June 30, 2020. This was principally driven by an increase in average client equity and average FDIC sweep client balances of 31% and 28%, respectively.

    Gain on Acquisitions and Other Gains

    The results of the three months ended June 30, 2021 include a gain of $3.3 million related to the acquisition of Gain in the fourth quarter of fiscal 2020, due to an adjustment to the final liabilities assumed, resulting in an adjustment from the initially determined values as of August 1, 2020. We also recognized a net gain on the disposal of fixed assets in the three months ended June 30, 2021.

    Variable vs. Fixed Expenses
    The table below sets forth our variable expenses and non-variable expenses as a percentage of total non-interest expenses for the periods indicated.

     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 % of
    Total    		 2020 % of
    Total    		 2021 % of
    Total    		 2020 % of
    Total
    Variable compensation and benefits$102.4  28% $78.5  30% $292.7  27% $215.7  29%
    Transaction-based clearing expenses67.1  19% 55.3  22% 207.3  20% 165.4  22%
    Introducing broker commissions41.8  11% 24.0  9% 120.8  11% 79.8  10%
    Total variable expenses211.3  58% 157.8  61% 620.8  58% 460.9  61%
    Fixed compensation and benefits74.9  21% 54.0  21% 223.2  21% 157.5  20%
    Other fixed expenses77.0  21% 44.6  17% 223.1  21% 135.7  18%
    Bad debts1.3  —% 1.8  1% 3.7  —% 6.2  1%
    Total non-variable expenses153.2  42% 100.4  39% 450.0  42% 299.4  39%
    Total non-interest expenses$364.5  100% $258.2  100% $1,070.8  100% $760.3  100%

    Our variable expenses include variable compensation paid to traders and risk management consultants, bonuses paid to operational, administrative, and executive employees, transaction-based clearing expenses and introducing broker commissions. We seek to make non-interest expenses variable to the greatest extent possible, and to keep our fixed costs as low as possible.

    Segment Results

    During the three months ended September 30, 2020, we modified the operating segments we use to evaluate our performance. Our business activities are managed as operating segments and organized into reportable segments consisting of Commercial, Institutional, Retail, and Global Payments. All segment information shown below has been revised to reflect the operating segment reorganization retroactive to October 1, 2019.

    The tables below present the financial performance, a disaggregation of operating revenues, and select operating data and metrics used by management in evaluating the performance of our segments, for the periods indicated. Additional information on the performance of our segments will be included in our Quarterly Report on Form 10-Q to be filed with the SEC.

    Commercial

     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Revenues:           
    Sales of physical commodities$9,315.9  $7,884.5  18% $28,479.4  $38,730.1  (26)%
    Principal gains, net75.6  42.7  77% 187.0  142.6  31%
    Commission and clearing fees47.8  33.1  44% 136.2  104.3  31%
    Consulting, management and account fees4.8  4.6  4% 14.8  14.3  3%
    Interest income5.2  3.2  63% 13.8  20.5  (33)%
    Total revenues9,449.3  7,968.1  19% 28,831.2  39,011.8  (26)%
    Cost of sales of physical commodities9,297.1  7,863.8  18% 28,429.1  38,688.1  (27)%
    Operating revenues152.2  104.3  46% 402.1  323.7  24%
    Transaction-based clearing expenses13.1  10.0  31% 40.3  30.7  31%
    Introducing broker commissions10.7  5.0  114% 26.2  17.7  48%
    Interest expense3.4  2.7  26% 9.8  10.7  (8)%
    Net operating revenues125.0  86.6  44% 325.8  264.6  23%
    Variable direct compensation and benefits38.1  27.4  39% 100.3  83.5  20%
    Net contribution86.9  59.2  47% 225.5  181.1  25%
    Fixed compensation and benefits12.6  12.3  2% 37.3  36.2  3%
    Other fixed expenses12.7  10.3  23% 37.5  33.8  11%
    Bad debts1.2  (0.6) n/m  2.6  3.5  (26)%
    Non-variable direct expenses26.5  22.0  20% 77.4  73.5  5%
    Segment income$60.4  $37.2  62% $148.1  $107.6  38%


     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Operating revenues (in millions):           
    Listed derivatives$60.6 $40.2  51% $169.8  $133.7  27%
    OTC derivatives49.7 21.3  133% 108.9  88.4  23%
    Physical contracts32.5 36.3  (10)% 97.7  74.2  32%
    Interest / fees earned on client balances4.2 1.9  121% 9.7  12.6  (23)%
    Other5.2 4.6  13% 16.0  14.8  8%
     $152.2 $104.3  46% $402.1  $323.7  24%
                
    Select data (all $ amounts are U.S. dollar or U.S. dollar equivalents):  
    Listed derivatives (contracts, 000’s)7,882 6,674  18% 23,885  22,492  6%
    Listed derivatives, average rate per contract (1)$7.44 $5.51  35% $6.77  $5.31  27%
    Average client equity - listed derivatives (millions)$1,780 $1,118  59% $1,600  $989  62%
    Over-the-counter (“OTC”) derivatives (contracts, 000’s)771 540  43% 1,889  1,638  15%
    OTC derivatives, average rate per contract$64.17 $39.23  64% $57.27  $53.62  7%


    (1)Give-up fees as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract.
      

    Institutional

     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Revenues:           
    Sales of physical commodities$—  $—  —% $—  $—  —%
    Principal gains, net82.5  93.3  (12)% 260.3  215.3  21%
    Commission and clearing fees60.6  51.2  18% 190.1  156.9  21%
    Consulting, management and account fees4.3  4.5  (4)% 13.8  18.9  (27)%
    Interest income25.6  20.8  23% 65.9  96.8  (32)%
    Total revenues173.0  169.8  2% 530.1  487.9  9%
    Cost of sales of physical commodities—  —  —% —  —  —%
    Operating revenues173.0  169.8  2% 530.1  487.9  9%
    Transaction-based clearing expenses43.5  43.0  1% 140.6  127.8  10%
    Introducing broker commissions7.2  4.2  71% 22.6  13.5  67%
    Interest expense11.2  9.5  18% 26.7  63.8  (58)%
    Net operating revenues111.1  113.1  (2)% 340.2  282.8  20%
    Variable direct compensation and benefits41.2  35.8  15% 127.9  87.0  47%
    Net contribution69.9  77.3  (10)% 212.3  195.8  8%
    Fixed compensation and benefits10.5  12.6  (17)% 34.9  34.5  1%
    Other fixed expenses12.5  8.5  47% 33.6  28.1  20%
    Bad debts0.4  2.4  (83)% 0.5  2.7  (81)%
    Non-variable direct expenses23.4  23.5  —% 69.0  65.3  6%
    Segment income$46.5  $53.8  (14)% $143.3  $130.5  10%


     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Operating revenues (in millions):           
    Listed derivatives$41.2 $35.4 16% $128.1  $112.2 14%
    OTC derivatives— 0.1 (100)% 0.1  0.2 (50)%
    Securities112.5 117.4 (4)% 350.0  296.4 18%
    FX contracts3.7 4.8 (23)% 12.2  18.3 (33)%
    Interest / fees earned on client balances2.5 2.4 4% 7.5  23.9 (69)%
    Other13.1 9.7 35% 32.2  36.9 (13)%
     $173.0 $169.8 2% $530.1  $487.9 9%
                
    Select data (all $ amounts are U.S. dollar or U.S. dollar equivalents):          
    Listed derivatives (contracts, 000’s)27,874 30,954 (10)% 86,212  96,807 (11)%
    Listed derivatives, average rate per contract (1)$1.42 $1.11 28% $1.44  $1.12 29%
    Average client equity - listed derivatives (millions)$2,188 $1,908 15% $2,135  $1,588 34%
    Securities ADV (millions)$2,901 $1,765 64% $2,687  $1,746 54%
    Securities RPM (2)$603 $1,040 (42)% $681  $883 (23)%
    Average money market / FDIC sweep client balances (millions)$1,611 $1,261 28% $1,431  $1,066 34%
    FX contracts ADV (millions)$1,412 $897 57% $1,477  $1,354 9%
    FX contracts RPM$40 $84 (52)% $43  $73 (41)%


    (1)Give-up fee revenues are excluded from the calculation of listed derivatives, average rate per contract.
    (2)Interest income related to securities lending is excluded from the calculation of Securities RPM.
      

    Retail

     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Revenues:           
    Sales of physical commodities$470.0  $60.0  683% $994.3  $209.3  375%
    Principal gains, net45.4  —  n/m  163.9  0.2  n/m 
    Commission and clearing fees14.7  11.4  29% 44.4  37.0  20%
    Consulting, management and account fees10.8  7.6  42% 33.1  25.1  32%
    Interest income0.3  0.1  200% 1.2  0.3  300%
    Total revenues541.2  79.1  584% 1,236.9  271.9  355%
    Cost of sales of physical commodities463.5  57.0  713% 975.3  200.4  387%
    Operating revenues77.7  22.1  252% 261.6  71.5  266%
    Transaction-based clearing expenses7.7  0.7  1,000% 20.4  2.0  920%
    Introducing broker commissions23.8  14.7  62% 71.6  48.2  49%
    Interest expense0.3  —  n/m  0.9  —  n/m 
    Net operating revenues45.9  6.7  585% 168.7  21.3  692%
    Variable direct compensation and benefits4.0  0.5  700% 12.7  1.2  958%
    Net contribution41.9  6.2  576% 156.0  20.1  676%
    Fixed compensation and benefits13.9  1.0  1,290% 39.0  3.0  1,200%
    Other fixed expenses22.3  1.4  1,493% 60.5  3.4  1,679%
    Bad debts(0.3) —  n/m  0.6  —  n/m 
    Non-variable direct expenses35.9  2.4  1,396% 100.1  6.4  1,464%
    Segment income$6.0  $3.8  58% $55.9  $13.7  308%


     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Operating revenues (in millions):           
    Securities$24.6   $18.8   31% $71.5   $61.1   17%
    FX / CFD contracts48.1   —   n/m 174.1   —   n/m
    Physical contracts4.7   3.0   57% 12.8   9.0   42%
    Interest / fees earned on client balances0.3   0.3   —% 0.9   1.4   (36)%
    Other—   —   —% 2.3   —   n/m
     $77.7   $22.1   252% $261.6   $71.5   266%
                
    Select data (all $ amounts are U.S. dollar or U.S. dollar equivalents):  
    FX / CFD contracts ADV (millions) (1)$8,238   $—   n/m $9,013   $—   n/m
    FX / CFD contracts RPM$90   $—   n/m $101   $—   n/m


    (1)The ADV for the three and nine months ended June 30, 2021 includes the ADV of Gain, which was acquired effective August 1, 2020.

    Global Payments

     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Revenues:           
    Sales of physical commodities$—   $—   —% $—   $—   —%
    Principal gains, net32.7   25.9   26% 96.9   83.4   16%
    Commission and clearing fees1.3   0.9   44% 3.8   2.9   31%
    Consulting, management, account fees1.0   0.6   67% 2.2   1.9   16%
    Interest income—   —   —% —   —   —%
    Total revenues35.0   27.4   28% 102.9   88.2   17%
    Cost of sales of physical commodities—   —   —% —   —   —%
    Operating revenues35.0   27.4   28% 102.9   88.2   17%
    Transaction-based clearing expenses1.8   1.2   50% 4.9   3.9   26%
    Introducing broker commissions0.1   0.1   —% 0.4   0.4   —%
    Interest expense—   0.1   (100)% 0.1   0.1   —%
    Net operating revenues33.1   26.0   27% 97.5   83.8   16%
    Variable compensation and benefits6.6   5.1   29% 19.2   16.5   16%
    Net contribution26.5   20.9   27% 78.3   67.3   16%
    Fixed compensation and benefits3.6   3.1   16% 10.7   8.7   23%
    Other fixed expenses2.6   1.9   37% 7.5   6.6   14%
    Bad debts—   —   —% —   —   —%
    Total non-variable direct expenses6.2   5.0   24% 18.2   15.3   19%
    Segment income$20.3   $15.9   28% $60.1   $52.0   16%


     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Operating revenues (in millions):           
    Payments$34.1  $26.8  27% $100.5  $86.2  17%
    Other0.9  0.6  50% 2.4  2.0  20%
     $35.0  $27.4  28% $102.9  $88.2  17%
                
    Select data (all $ amounts are U.S. dollar or U.S. dollar equivalents):  
    Global Payments ADV (millions)$55  $40  38% $53  $46  15%
    Global Payments RPM$9,786  $10,650  (8)% $10,041  $9,957  1%

    Unallocated Costs and Expenses

    The following table provides information regarding our unallocated costs and expenses. These unallocated costs and expenses include certain shared services such as information technology, accounting and treasury, credit and risk, legal and compliance, and human resources and other activities, which are not included in the results of the operating segments above.

     Three Months Ended June 30, Nine Months Ended June 30,
    (in millions)2021 2020 % Change 2021 2020 % Change
    Compensation and benefits:           
    Variable compensation and benefits$11.6  $8.9  30 % 29.7  25.2  18 %
    Fixed compensation and benefits29.1  20.6  41 % 86.4  62.3  39 %
     40.7  29.5  38 % 116.1  87.5  33 %
    Other expenses:           
    Occupancy and equipment rental9.2  5.3  74 % 25.0  15.2  64 %
    Non-trading technology and support6.2  5.3  17 % 22.0  14.7  50 %
    Professional fees4.9  5.3  (8)% 15.8  13.2  20 %
    Depreciation and amortization4.7  4.1  15 % 13.1  11.8  11 %
    Communications1.5  1.5  — % 4.8  4.2  14 %
    Selling and marketing0.4  0.4  — % 1.0  3.8  (74)%
    Trading systems and market information0.9  0.9  — % 2.5  2.1  19 %
    Travel and business development0.5  0.2  150 % 1.2  2.2  (45)%
    Other4.7  4.7  — % 16.4  11.7  40 %
     33.0  27.7  19 % 101.8  78.9  29 %
    Total compensation and other expenses$73.7  $57.2  29 % $217.9  $166.4  31 %

    Total unallocated costs and other expenses increased $16.5 million to $73.7 million in the three months ended June 30, 2021 compared to $57.2 million in the three months ended June 30, 2020. Compensation and benefits increased $11.2 million, or 38%, to $40.7 million in the three months ended June 30, 2021 compared to $29.5 million in the three months ended June 30, 2020, principally due to the Gain acquisition in the fourth quarter of fiscal 2020. Fixed compensation and benefits during the three months ended June 30, 2021 include severance costs of $3.2 million, principally due to the departure of certain senior officers. During the three months ended June 30, 2020, severance costs were $0.7 million.

    Administrative headcount increased 26% compared to June 2020, principally due to incremental employees as a result of acquisitions. The headcount increases span across all administrative departments, most notably IT, accounting and compliance. Other non-compensation expenses increased $5.3 million, or 19%, to $33.0 million in the three months ended June 30, 2021 compared to $27.7 million in the three months ended June 30, 2020 principally due to the increase in occupancy and equipment rental related to additional leased office space.

    Balance Sheet Summary

    The following table below provides a summary of asset, liability, and stockholders’ equity information for the periods indicated.

    (Unaudited) (in millions, except for share and per share amounts)June 30, 2021 September 30, 2020
    Summary asset information:   
    Cash and cash equivalents$1,075.6  $952.6 
    Cash, securities and other assets segregated under federal and other regulations$2,325.5  $1,920.2 
    Securities purchased under agreements to resell$2,027.2  $1,696.2 
    Securities borrowed$1,697.3  $1,440.0 
    Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net$4,617.7  $3,629.9 
    Receivables from clients, net and notes receivable, net$623.9  $413.1 
    Financial instruments owned, at fair value$3,467.2  $2,727.7 
    Physical commodities inventory, net$484.8  $281.1 
    Property and equipment, net$91.1  $62.1 
    Operating right of use assets$129.9  $101.5 
    Goodwill and intangible assets, net$98.7  $109.5 
    Other$160.9  $141.0 
            
    Summary liability and stockholders’ equity information:       
    Accounts payable and other accrued liabilities$302.7  $272.6 
    Operating lease liabilities$151.7  $118.7 
    Payables to clients$7,177.7  $5,689.0 
    Payables to broker-dealers, clearing organizations and counterparties$375.5  $537.5 
    Payables to lenders under loans$273.7  $268.1 
    Senior secured borrowings, net$508.7  $515.5 
    Income taxes payable$16.3  $22.6 
    Securities sold under agreements to repurchase$3,627.6  $3,155.5 
    Securities loaned$1,700.3  $1,441.9 
    Financial instruments sold, not yet purchased, at fair value$1,764.2  $686.0 
    Stockholders’ equity$901.4  $767.5 
        
    Common stock outstanding - shares19,859,899  19,376,594 
    Net asset value per share$45.39  $39.61 

    Conference Call & Web Cast

    A conference call to discuss the Company’s financial results will be held tomorrow, Tuesday, August 10, 2021 at 9:00 a.m. Eastern time. The call may also include discussion of Company developments, and forward-looking and other material information about business and financial matters. A live webcast of the conference call as well as additional information to review during the call will be made available in PDF form on-line on the Company’s corporate web site at https://www.stonex.com. Participants can also access the call by dialing 1-844-466-4112 (within the United States and Canada), or 1-408-337-0136 (international callers) approximately ten minutes prior to the start time.

    A replay of the call will be available at https://www.stonex.com approximately two hours after the call has ended and will be available through August 17, 2021. To access the replay, dial 1-855-859-2056 (within the United States and Canada), or 1-404-537-3406 (international callers) and enter the replay passcode 2192607.

    About StoneX Group Inc.

    StoneX Group Inc. (formerly INTL FCStone Inc.), through its subsidiaries, operates 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. The Company strives to be the one trusted partner to its clients, providing its network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. A Fortune-500 company headquartered in New York City and listed on the Nasdaq Global Select Market (NASDAQ:SNEX), StoneX Group Inc. and its over 3,000 employees serve more than 35,000 commercial and institutional clients, and more than 340,000 active retail accounts, from more than 40 offices spread across five continents. Further information on the Company is available at www.stonex.com.

    Forward Looking Statements

    This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as those pertaining to the uncertain financial impact of COVID-19 and the company’s financial condition, results of operations, business strategy and financial needs. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words “believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,” “could,” “intend,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms and similar expressions, as they relate to StoneX Group Inc., are intended to identify forward-looking statements.

    These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the company. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the filings made by StoneX Group Inc. with the Securities and Exchange Commission, including those risks set forth under the heading “Risk Factors” in the company’s most recent Annual Report on Form 10-K and, to the extent applicable, subsequent Quarterly Reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the forward-looking statements in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. When you consider these forward-looking statements, you should keep in mind these risk factors and other cautionary statements in this press release.

    These forward-looking statements speak only as of the date of this press release. StoneX Group Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

    StoneX Group Inc.
    Investor inquiries:
    Kevin Murphy
    (212) 403 - 7296
    kevin.murphy@stonex.com 

    SNEX-G


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