UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 11, 2008
International Assets Holding Corporation
(Exact name of registrant as specified in its charter)
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Delaware |
000-23554 |
59-2921318 |
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(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
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220 E. Central Parkway, Suite 2060, Altamonte Springs, FL |
32701 |
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| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: 407-741-5300
________________________________________________________________________________
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
On August 11, 2008 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1. Press release dated August 11, 2008
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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International Assets Holding Corporation
(Registrant) |
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August 11, 2008
(Date) |
/s/ SCOTT J. BRANCH
Scott J. Branch President |
| Exhibit Index | ||
| 99.1 | Press release dated August 11, 2008 | |
EXHIBIT 99.1
International Assets Reports $6.8 Million Earnings for Third Quarter and Nine Month EPS of $3.06
NEW YORK, Aug. 11, 2008 (PRIME NEWSWIRE) -- International Assets Holding Corporation (the 'Company') (Nasdaq:IAAC) today announced its third quarter financial results which are set out in the table below.
Sean O'Connor, CEO, stated, "GAAP operating revenues for the third quarter and nine months to date were over three times higher than those of the comparable periods last year and net income was $6.8 million and $25.7 million for the three months and nine months, compared with losses for the comparable periods last year. Management believes that adjusted marked-to-market (non-GAAP) results are a better reflection of the Company's performance. On a non-GAAP basis, adjusted operating revenues were up 25% and 57% while adjusted pro forma net income was up 1% and 55% for the third quarter and nine months to date, respectively."
Three Months Ended
-----------------------------
(Unaudited) June 30, June 30, %
(In thousands, except per share amounts) 2008 2007 Change
--------- --------- -------
Total operating revenues $ 30,955 $ 9,488 226%
Interest expense 2,415 2,459 (2)%
--------- --------- -------
Net revenues 28,540 7,029 306%
Compensation and benefits 10,024 7,139 40%
Clearing and related expenses 3,651 3,194 14%
Other non-interest expenses 3,260 2,386 37%
--------- --------- -------
Total non-interest expenses 16,935 12,719 33%
--------- --------- -------
Income (loss) before income tax and
minority interest 11,605 (5,690) (a)
Income tax expense (benefit) 4,642 (2,043) (a)
Minority interest in income of
consolidated entities 165 95 74%
--------- --------- -------
Net income (loss) $ 6,798 $ (3,742) (a)
========= ========= =======
Earnings (loss) per share:
Basic $ 0.80 $ (0.46) (a)
Diluted $ 0.72 $ (0.46) (a)
Weighted average number of common shares
outstanding:
Basic 8,482 8,197 3%
Diluted 9,954 8,197 21%
Segmental Operating Revenues (non-GAAP)
reconciliation:
Total operating revenues, as reported
(GAAP) $ 30,955 $ 9,488 226%
Change in unrealized fair market
value gain in physical commodities
inventory (12,286) 10,682 (a)
Other marked-to-market adjustments 4,612 (1,509) (a)
--------- --------- -------
Adjusted operating revenues (non-GAAP)
(b) $ 23,281 $ 18,661 25%
========= ========= =======
Represented by:
International equities market-making $ 7,702 $ 7,020 10%
International debt capital markets 832 1,859 (55)%
Foreign exchange trading 5,032 3,520 43%
Commodities trading (adjusted,
non-GAAP) 4,988 2,336 114%
Asset management 4,142 3,733 11%
Other 585 193 203%
--------- --------- -------
Adjusted operating revenues
(non-GAAP) (b) $ 23,281 $ 18,661 25%
========= ========= =======
Net Income (non-GAAP) reconciliation:
Net income, as reported (GAAP) $ 6,798 $ (3,742) (a)
Change in unrealized fair market
value gain in physical commodities
inventory (12,286) 10,682 (a)
Other marked-to-market adjustments 4,612 (1,509) (a)
--------- --------- -------
Aggregate marked-to-market adjustment (a)
(7,674) 9,173
Pro forma tax effect at 37.5% 2,878 (3,440) (a)
--------- --------- -------
Adjusted, pro forma net income
(non-GAAP) (c) $ 2,002 $ 1,991 1%
========= ========= =======
Adjusted EBITDA (non-GAAP) reconciliation:
Net income, as reported (GAAP) $ 6,798 $ (3,742) (a)
Minority interests 165 95 74%
Income tax 4,642 (2,043) (a)
Depreciation and amortization 285 202 41%
Interest expense 2,415 2,459 (2)%
Interest income (638) (198) 222%
Change in unrealized fair market value
gain in physical commodities inventory (12,286) 10,682 (a)
Other marked-to-market adjustments 4,612 (1,509) (a)
--------- --------- -------
Adjusted EBITDA (non-GAAP) (d) $ 5,993 $ 5,946 1%
========= ========= =======
Nine Months Ended
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(Unaudited) June 30, June 30, %
(In thousands, except per share amounts) 2008 2007 Change
--------- --------- -------
Total operating revenues $ 105,521 $ 33,450 215%
Interest expense 8,251 5,700 45%
--------- --------- -------
Net revenues 97,270 27,750 251%
Compensation and benefits 32,033 20,863 54%
Clearing and related expenses 11,690 8,091 44%
Other non-interest expenses 9,191 5,263 75%
--------- --------- -------
Total non-interest expenses 52,914 34,217 55%
--------- --------- -------
Income (loss) before income tax and
minority interest 44,356 (6,467) (a)
Income tax expense (benefit) 17,140 (2,326) (a)
Minority interest in income of
consolidated entities 1,493 417 258%
--------- --------- -------
Net income (loss) $ 25,723 $ (4,558) (a)
========= ========= =======
Earnings (loss) per share:
Basic 3.06 (0.57) (a)
Diluted 2.69 (0.57) (a)
Weighted average number of common shares
outstanding:
Basic 8,402 8,033 5%
Diluted 9,950 8,033 24%
Segmental Operating Revenues (non-GAAP)
reconciliation:
Total operating revenues, as reported
(GAAP) $ 105,521 $ 33,450 215%
Change in unrealized fair market value
gain in physical commodities invento (26,300) 17,204 (a)
Other marked-to-market adjustments 2,829 1,530 85%
--------- --------- -------
Adjusted operating revenues
(non-GAAP) (b) $ 82,050 $ 52,184 57%
========= ========= =======
Represented by:
International equities market-making $ 25,118 $ 20,181 24%
International debt capital markets 2,947 4,005 (26)%
Foreign exchange trading 16,447 9,002 83%
Commodities trading (adjusted,
non-GAAP) 19,611 9,487 107%
Asset management 16,150 8,958 80%
Other 1,777 551 223%
--------- --------- -------
Adjusted operating revenues
(non-GAAP) (b) $ 82,050 $ 52,184 57%
========= ========= =======
Net Income (non-GAAP) reconciliation:
Net income, as reported (GAAP) $ 25,723 $ (4,558) (a)
Change in unrealized fair market value
gain in physical commodities inventory (26,300) 17,204 (a)
Other marked-to-market adjustments 2,829 1,530 85%
--------- --------- -------
Aggregate marked-to-market adjustment (a)
(23,471) 18,734
Pro forma tax effect at 37.5% 8,802 (7,025) (a)
--------- --------- -------
Adjusted, pro forma net income
(non-GAAP) (c) $ 11,054 $ 7,151 55%
========= ========= =======
Adjusted EBITDA (non-GAAP) reconciliation:
Net income, as reported (GAAP) $ 25,723 $ (4,558) (a)
Minority interests 1,492 417 258%
Income tax 17,140 (2,326) (a)
Depreciation and amortization 818 442 85%
Interest expense 8,251 5,700 45%
Interest income (1,749) (545) 221%
Change in unrealized fair market value
gain in physical commodities inventory (26,300) 17,204 (a)
Other marked-to-market adjustments 2,829 1,530 85%
--------- --------- -------
Adjusted EBITDA (non-GAAP) (d) $ 28,204 $ 17,864 58%
========= ========= =======
Condensed consolidated financial statements will be included in the
Company's Form 10-Q to be filed with the SEC. The Form 10-Q will also be
made available on the Company's website at www.intlassets.com.
(a) Comparison not meaningful.
(b) Adjusted Operating Revenue is a non-GAAP measure that represents
operating revenues adjusted by marked-to-market differences in the
Company's commodities segment, as shown in the table. In addition to
the inventory adjustment disclosed in previous filings, the Company
has now included other marked-to-market adjustments. The table above
reflects all reconciling items between the GAAP Operating Revenues
and non-GAAP Adjusted Operating Revenues. For a full discussion of
management's reasons for disclosing these adjustments, see 'Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of Operation' in the Form 10-Q for the quarter ended
June 30, 2008.
(c) Adjusted, pro forma net income is a non-GAAP measure that represents
net income adjusted by pro forma, after-tax marked-to-market
differences in the Company's commodities segment. The table above
reflects all reconciling items between the GAAP Net Income and non-
GAAP Adjusted Pro Forma Net Income.
(d) Adjusted EBITDA is a non-GAAP measure. The table above shows a
calculation of Adjusted EBITDA.
About International Assets Holding Corporation (Nasdaq:IAAC)
International Assets Holding Corporation and its subsidiaries (the 'Company') form a financial services group focused on select international securities, foreign exchange and commodities markets. We commit our capital and expertise to market-making and trading of international financial instruments, currencies and commodities. The Company's activities are currently divided into five functional areas -- international equities market-making, international debt capital markets, foreign exchange trading, commodities trading and asset management. Additional information regarding the Company is available on the Company's website at www.intlassets.com.
The International Assets Holding Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=5024
Forward-Looking Statements
Certain statements in this document may constitute "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, many of which are beyond the Company's control, including adverse changes in economic, political and market conditions, losses from the Company's market-making and trading activities arising from counterparty failures and changes in market conditions, the possible loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, the possibility of liabilities arising from violations of federal and state securities laws and the impact of changes in technology in the securities and commodities brokerage industries. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reasonable assumptions, there can be no assurances that the act ual results, performance or achievement of the Company will not differ materially from any future results, performance or achievements expressed or implied by such 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. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements.
CONTACT: International Assets Holding Corporation
Scott Branch, President
(888) 345-4685 x 335
New York, NY 10017