StoneX(US:SNEX)2023-08-02 21:29Revenue Growth - Operating revenues increased by $248.1 million, or 47%, to $776.9 million for the three months ended June 30, 2023, compared to $528.8 million for the same period in 2022[167]. - Net operating revenues rose by $61.8 million to $435.9 million for the three months ended June 30, 2023, compared to $374.1 million for the same period in 2022[168]. - Interest and fee income on client balances surged by $70.7 million, or 329%, to $92.2 million for the three months ended June 30, 2023, driven by significant increases in short-term interest rates[169]. - Segment income in the Commercial segment increased by $44.5 million compared to the same period in 2022, primarily due to strong growth in interest/fees earned on client balances[171]. - Net income increased by $20.4 million to $69.5 million for the three months ended June 30, 2023, compared to $49.1 million for the same period in 2022[177]. - For the nine months ended June 30, 2023, operating revenues increased by $612.1 million, or 40%, to $2,136.1 million compared to $1,524.0 million for the same period in 2022[193]. Segment Performance - Segment income in the Global Payments segment increased by $4.0 million, driven by a 20% increase in operating revenues[174]. - Net contribution for all business segments increased by $58.9 million, or 21%, to $340.8 million in the three months ended June 30, 2023, compared to $281.9 million in the same period of 2022[243]. - Segment income rose by $36.8 million, or 22%, to $207.9 million in the three months ended June 30, 2023, compared to $171.1 million in the same period of 2022[243]. - Segment income increased by $44.5 million, or 61%, to $117.0 million for the three months ended June 30, 2023, compared to $72.5 million for the same period in 2022[255]. - Segment income for the nine months ended June 30, 2023, increased by $54.3 million, or 11%, to $560.2 million compared to $505.9 million in the same period in 2022[244]. Expense Management - Total compensation and other expenses rose by 13% to $341.4 million for the three months ended June 30, 2023, compared to $303.2 million for the same period in 2022[180]. - Total non-interest expenses for the three months ended June 30, 2023, were $451.5 million, compared to $419.1 million in the prior year[233]. - Compensation and other expenses rose by $109.4 million, or 12%, to $993.2 million for the nine months ended June 30, 2023, compared to $883.8 million in the prior year[221]. - Total compensation and benefits increased by $73.8 million, or 13%, to $658.1 million for the nine months ended June 30, 2023, with variable compensation as a percentage of net operating revenues decreasing from 32% to 30%[222]. - Non-variable salaries increased by $30.1 million, or 18%, primarily due to headcount growth to 3,972 employees, a 14% increase from 3,484 employees[222]. Interest and Financing - Total interest expense increased to $230.9 million in Q2 2023, up 495% from $38.8 million in Q2 2022, primarily due to higher short-term interest rates and increased client balances[203]. - Interest expense attributable to trading activities reached $216.0 million in Q2 2023, a 669% increase from $28.1 million in Q2 2022, driven by significant increases in short-term interest rates[203]. - For the nine months ended June 30, 2023, total interest expense was $593.2 million, up 552% from $91.0 million in the same period in 2022[207]. - Interest and fee income earned on client balances surged by $159.0 million to $175.0 million for the nine months ended June 30, 2023, compared to $16.0 million in the prior year, due to rising short-term interest rates[278]. - Interest expense increased by $472.3 million to $516.8 million for the nine months ended June 30, 2023, compared to $44.5 million in the same period last year[279]. Asset and Equity Management - Total assets increased by 13% to $21.93 billion as of June 30, 2023, compared to $19.41 billion as of June 30, 2022[180]. - As of June 30, 2023, StoneX Financial Inc. reported total equity of $1,329.9 million, with outstanding loans under revolving credit facilities and other payables amounting to $422.6 million[318]. - Approximately 97% of StoneX Financial Inc.'s assets were liquid as of June 30, 2023, including cash, securities, and receivables[319]. - The company had $350 million in aggregate principal amount of 8.625% Senior Secured Notes due 2025, with interest payable semiannually[335][336]. - As of June 30, 2023, StoneX Financial Inc. had four committed bank credit facilities totaling $1,155.0 million, with $392.1 million outstanding[337]. Cash Flow and Liquidity - Net cash used in operating activities during the nine months ended June 30, 2023, was $394.8 million, with $38.9 million used in investing activities and $87.6 million used in financing activities[346]. - The company anticipates that cash flows from operations, available cash, and available borrowings will be adequate to meet future liquidity needs for the following year[352]. - The company has authorized the repurchase of up to 1.0 million shares of its outstanding common stock, commencing on October 1, 2022, and ending on September 30, 2023[351]. - Significant outflows in financing activities included $37.7 million from payables to lenders under 90 days and $35.0 million from payables to lenders greater than 90 days[347]. - The company recorded short positions totaling $2,696.2 million as of June 30, 2023, compared to $2,469.6 million as of September 30, 2022[359].