FCStone posts third-quarter loss, lower revenue - Kansas City Business Journal:

aleksanovlsys.blogspot.com
In a Thursday release, the Kansas City-basesd commodity risk-management firm (Nasdaq: FCSX) reported a loss of $8.1 or 29 cents a share, for the quartert that ended May 31. This compares with profit of $8 million, or 28 centd a share, last year. Revenue for the quarterd was $57.5 million, down from $83. million last year. The company said in the releasdthat exchange-traded and over-the-counte r contract trading volumes decreased significantly from last year, mainly from customerss in the agricultural, financial and energy markets. • A final bad debt provisiohn of $3.
5 million, or 13 cents a share, related to a previously reported energuy trading customer account that had experiencedsignificant losses. The company said Marcn 12 that it transferred to a thirsd party substantially all of the positions and remaining obligations related tothe • Higher professional fees and expensess of $1.3 million, or 5 centsz a share, related to the disposition of the energuy trading account and the review of equity alternatives for the • Severance charges of $1.3 million, or 5 centw a share, related to a separationh agreement with a former executive • A loss of $2.
4 million, or 9 centds a share, from the company’s minority investmenft in grain merchandiser , which resulted from the settlement in June by FGDI of a contractualp dispute through litigation. FCStone said it has no operational control of FGDI and had no direcy involvement in the disputed commodityh contracts orthe settlement, which eliminates any furthefr potential exposure to the commodity contracts. FCStone said it is exploring a possible sale of its remaininf 25 percent investment in FGDI and has signed a nonbinding letter of intent to sell the investment to themajority owner. Excluding these items, FCStone said third-quarteer earnings would have been $500,000, or 2 centz a share.
FCStone with (Nasdaq: through a stock swap, which woulf create a combined entity with a market capitalization ofabout $260 million that would server more than 10,000 customers and have an employer base of 650 people, annuao revenue of about $411 million and combinedx assets of $2.3 billion.