FCStone Group, Inc. Reports Record Second Quarter Revenues


KANSAS CITY, Mo., April 10, 2008 (PRIME NEWSWIRE) -- FCStone Group, Inc. (Nasdaq:FCSX), a commodity risk management firm, today announced record quarterly revenues and net income from continuing operations for its second fiscal quarter ending February 29, 2008.

Second Quarter Results

Revenues, net of cost of commodities sold, a non-GAAP financial measure, were $91.2 million in the three months ended February 29, 2008, compared to $60.1 million in the prior year quarter, an increase of 52%. Net income increased to $12.1 million, or $0.42 per diluted share, for the second quarter, compared to $6.9 million, or $0.32 per diluted share, in the prior year quarter.

Net income from continuing operations increased to $17.8 million, or $0.61 per diluted share for the second quarter, compared to $7.0 million, or $0.32 per diluted share, in the prior year quarter.

The following table presents results on a total and per share basis.



                         Financial Highlights
               (In thousands, except per share amounts)

                          Three Months Ended       Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
 NON GAAP-Revenues,
  net of cost of
  commodities sold(1)   $   60,157  $   91,212  $  117,534  $  164,846
 Income from continuing
  operations before
  income tax expense(1) $   11,104  $   28,489  $   21,247  $   49,570
 Net income from
  continuing
  operations(2)         $    6,979  $   17,789  $   13,322  $   30,920
 Loss from discontinued
  operations, net of
  tax                   $       59  $    5,673  $       88  $    5,719
 Net income(2)          $    6,920  $   12,116  $   13,234  $   25,201
 Diluted weighted
  average shares
  outstanding(1)            21,800      29,104      21,800      28,940
 Diluted earnings per
  share, continuing
  operations            $     0.32  $     0.61  $     0.61  $     1.07
 Diluted earnings
  (loss) per share,
  discontinued
  operations                    --       (0.19)         --       (0.20)
 Diluted earnings per
  share                 $     0.32  $     0.42  $     0.61  $     0.87

 (1) Amounts for the six months ended February 29, 2008 include a net
     amount of $2.9 million for special or one-time items, which
     include a $0.5 million gain on the sale of Chicago Board Option
     Exchange (CBOE) trading rights and a $2.4 million gain on the
     sale of CME common stock.

 (2) Amounts for the six months ended February 29, 2008 include after
     tax effect of the items noted in (1) above of approximately
     $1.8 million.

The increase in second quarter revenues, net of cost of commodities sold, from the prior year second quarter, was driven by significantly higher exchange traded and over-the-counter (OTC) volumes. This growth was primarily related to continued volatility in the grain, energy, metals, and soft commodity markets and higher OTC volumes from our energy, renewable fuels and Brazilian customers. Additionally, these volumes along with increased margin requirements have driven higher interest income from additional investable segregated and OTC customer margin funds.

Costs and expenses, exclusive of cost of commodities sold, were higher compared to the prior year primarily due to higher volume-related costs of broker commissions and pit brokerage and clearing fees.

During the three months ended February 29, 2008, the Company undertook extensive engineering design and production tests related to the manufacturing of biodiesel at Green Diesel's developmental stage plant in Houston, Texas. Based on the testing results, current industry economic conditions and additional capital required to complete the project, it was decided to cease construction and development of the bio-diesel facility and pursue an immediate sale of the plant assets and inventory. In connection with the plan of disposal, it was determined that the carrying value of the underlying plant asset exceeded its fair value. Consequently, an impairment loss of $10.8 million was recorded, of which $2.2 million was allocated to the unaffiliated third party minority interest holder. The impairment loss is included in loss on discontinued operations, net of tax, reflected during the three months ended February 29, 2008.

"Despite a tough macroeconomic environment, FCStone continued along the path of steady revenue and earnings growth during our second fiscal quarter," said Pete Anderson, President and Chief Executive Officer of FCStone. "This growth across all market segments of the Company is being driven by unprecedented volatility in virtually every commodity and financial market around the world. During a period of tightening credit access, this has fostered an atmosphere which has increased the necessity to manage volatility through conservative risk management services, products, platforms and structures offered by FCStone."

Year-To-Date Results

Revenues, net of cost of commodities sold, a non-GAAP financial measure, were $164.8 million for the first six months of fiscal year 2008, compared to $117.5 million during the same period of fiscal year 2007, an increase of 40%. Net income increased 90% to $25.2 million for the first six months of fiscal year 2008, or $0.87 per diluted share, compared to $13.2 million, or $0.61 per diluted share during the same period of fiscal year 2007.

Net income from continuing operations increased to $30.9 million, or $1.07 per diluted share for the first six months of fiscal year 2008, compared to $13.3 million, or $0.61 per diluted share during the same period of fiscal year 2007.

"In addition to driving strong growth in our traditional market segments of agriculture and energy, FCStone continues to address new and developing products as well as additional industries that have growth potential," said Bill Dunaway, Chief Financial Officer. "We have created a new Cotton and Textile Division through the acquisition of Globecot, Inc. and The Jernigan Group, LLC. This is a highly complementary business which will provide expertise in the global cotton and textile segment for both current and potential FCStone customers around the world. This deal, along with the recently completed Downes O'Neill LLC acquisition, exemplifies a continued commitment to our stated acquisition growth strategy."

Operating Segments

FCStone's income (loss) from continuing operations before minority interest and income tax expense by segment and certain other data are outlined below for the periods noted.



                          Three Months Ended      Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
 Segment Data:                         ($ in thousands)
 Income (loss) from
  continuing
  operations before
  minority interest
  and income tax
  expense:
 Commodity and Risk
  Management
  Services(1)           $    9,153  $   21,764  $   16,717  $   38,927
 Clearing and
  Execution Services         3,431       8,656       7,040      13,812
 Financial Services            419         471         447         527
 Grain Merchandising           340          --       1,460          --
 Corporate                  (2,137)     (2,402)     (3,979)     (3,696)
                        ----------  ----------  ----------  ----------
                        $   11,206  $   28,489  $   21,685  $   49,570
                        ==========  ==========  ==========  ==========
 Other Data:
 EBITDA(1)              $   15,798  $   30,674  $   28,616  $   53,312
 Exchange contract
  trading volume (in
  millions)                   12.9        27.2        26.3        50.5
 Customer Segregated
  Assets, end of
  period                $  861,780  $1,452,861  $  861,780  $1,452,861

 (1) Amounts for the six months ended February 29, 2008 include the
     special or one-time items of a $2.4 million gain from the sale
     of CME stock and a $0.5 million gain on the sale of CBOE trading
     rights included in the Commodity and Risk Management Services
     segment.

In the Commodity and Risk Management Services segment, revenues, net of cost of commodities sold, were $46.5 million in the second quarter ended February 29, 2008, compared to $27.3 million in the prior year quarter, an increase of 70%. Segment income before minority interest and income tax for the second quarter 2008 increased to $21.8 million, compared to $9.2 million in the prior year quarter.

For the Clearing and Execution Services segment, revenues, net of cost of commodities sold, were $40.9 million in the second quarter ended February 29, 2008, compared to $24.3 million in the prior year quarter, an increase of 69%. The segment made $8.7 million in the second quarter, compared to a net income of $3.4 million in the prior year quarter.

The Financial Services segment reported revenues, net of cost of commodities sold, of $3.5 million in the second quarter ended February 29, 2008, compared to $3.4 million in the prior year quarter, an increase of 3%. Segment income increased to $471 thousand for the second quarter, compared to $419 thousand in the prior year quarter.

As previously announced on June 1, 2007, the Company sold a portion of its stake in the Grain Merchandising segment business and retains a 25% minority interest in this business instead of the previous 70% majority interest. Therefore, such business is no longer consolidated in our financial statements. Our 25% share of FGDI's income is accounted for under the equity method, and included in the Corporate and Other segment and amounted to $0.6 million for the three months ended February 29, 2008 and $1.9 million for the six months ended February 29, 2008.

Business Outlook

Commenting on the Company's year to date results and expectations, Anderson said, "FCStone historically has prided itself in being an innovator in the risk management industry, making substantial investments to develop specific programs, products and market segments for the benefit of our clientele and the Company. The most recent example of this innovation is our direct investment in Agora-X, in which we are partnering with NASDAQ to create a new electronic communications platform to provide liquidity, transparency and trading efficiency for FCStone, our clients, and other qualified institutional participants. We believe that this traditional commitment to our clients' best interest, combined with the strength of the FCStone consultants' experience and expertise, our alternative platforms to manage our clients' risk, and the unprecedented volatility in the agriculture and energy markets will continue to drive the growth and development of FCStone."

Conference Call & Web Cast

A conference call will be held today, Thursday, April 10, 2008 at 11:00 a.m. (ET). A live web cast of the conference call as well as a replay will be available online on the Company's corporate web site at http://www.fcstone.com. Participants can also access the call by dialing 800-257-7087 (within the United States and Canada), or 303-262-2053 (international callers). A replay of the call will be available approximately two hours after the call has ended and will be available until 11:59 p.m. (CT) on Monday, April 28, 2008. To access the replay, dial 800-405-2236 (within the United States and Canada), or 303-590-3000 (international callers) and enter the conference ID number: 11111811#.

About FCStone Group, Inc.

FCStone Group, Inc., along with its affiliates, is an integrated commodity risk management company providing risk management consulting and transaction execution services to commercial commodity intermediaries, end-users and producers. The firm assists primarily middle market customers in optimizing their profit margins and mitigating exposure to commodity price risk. In addition to risk management consulting services, FCStone, LLC, operates one of the leading independent clearing and execution platforms for exchange-traded futures and options contracts. FCStone Group, Inc., serves more than 7,500 customers and in the 12 months ended February 29, 2008, executed 86.3 million derivative contracts in the exchange-traded and over-the-counter markets. The FCStone Group companies work in all the major commodity areas including agriculture, energy, renewable fuels, foods, forestry, cotton and textile, dairy and currency exchange. Headquartered in the Midwest, it has offices located throughout the world and is a clearing member of all major North American Futures exchanges. FCStone Group, Inc., trades on the NASDAQ Global Select Market under the symbol "FCSX."

Forward-Looking Statements

This press release may include forward-looking statements regarding, among other things, our plans, strategies and prospects, both business and financial. 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 FCStone Group, Inc., are intended to identify forward-looking statements.

We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the Company's filings with the Securities and Exchange Commission. 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.

Our forward-looking statements speak only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of NON-GAAP Financial Information

In this press release we disclose "revenues, net of cost of commodities sold", and "EBITDA", both of which are non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure, calculated and prepared in accordance with generally accepted accounting principles in the United Sates (GAAP). Revenues, net of cost of commodities sold, is not a substitute for the GAAP measure of total revenues. EBITDA is not a substitute for the GAAP measure of net income or cash flows. Such non-GAAP financial measures are reconciled to its closest GAAP measure, in accordance with the Securities and Exchange Commission rules, and are included in the attached supplemental data. Management believes that these non-GAAP financial measures are useful to both management and its stockholders in their analysis of the company's business and operating performance.



                 FCSTONE GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)
               (in thousands, except per share amounts)

                          Three Months Ended      Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
 Revenues:
   Commissions and
    clearing fees       $   33,353  $   46,068  $   66,256  $   85,450
   Service, consulting
    and brokerage fees       9,314      23,728      18,409      40,002
   Interest                 10,729      18,858      19,127      32,239
   Other                     1,013       2,038       1,534       6,635
   Sales of
    commodities(1)         349,098       1,350     797,886       1,350
                        ----------  ----------  ----------  ----------
 Total revenues            403,507      92,042     903,212     165,676
                        ----------  ----------  ----------  ----------
 Costs and expenses:
   Cost of commodities
    sold                   343,350         830     785,678         830
   Employee
    compensation and
    broker commissions      11,364      15,197      23,155      28,444
   Pit brokerage and
    clearing fees           14,678      25,392      29,542      46,177
   Introducing broker
    commissions              9,007       8,747      16,376      16,075
   Employee benefits
    and payroll taxes        2,722       2,913       5,369       5,930
   Interest                  4,251       1,809       6,490       3,010
   Depreciation                443         376         879         732
   Bad debt expense            120         109       1,540         184
   Other expenses            6,366       8,180      12,498      14,724
                        ----------  ----------  ----------  ----------
 Total costs and
  expenses                 392,301      63,553     881,527     116,106
                        ----------  ----------  ----------  ----------
 Income from continuing
  operations before
  income tax expense
  and minority interest     11,206      28,489      21,685      49,570
 Minority interest             102          --         438          --
                        ----------  ----------  ----------  ----------
 Income from continuing
  operations before
  income tax expense        11,104      28,489      21,247      49,570
 Income tax expense          4,125      10,700       7,925      18,650
                        ----------  ----------  ----------  ----------
 Net income from
  continuing operations      6,979      17,789      13,322      30,920
 Loss from discontinued
  operations, net of tax        59       5,673          88       5,719
                        ----------  ----------  ----------  ----------
 Net income             $    6,920  $   12,116  $   13,234  $   25,201
                        ==========  ==========  ==========  ==========

 Basic shares
  outstanding               21,800      27,709      21,800      27,565
 Diluted shares
  outstanding               21,800      29,104      21,800      28,940

 Basic earnings (loss)
  per share:
   Continuing
    operations          $     0.32  $     0.64  $     0.61  $     1.12
   Discontinued
    operations                  --       (0.20)         --       (0.21)
                        ----------  ----------  ----------  ----------
   Net income           $     0.32  $     0.44  $     0.61  $     0.91
                        ==========  ==========  ==========  ==========

 Diluted earnings
  (loss) per share:
   Continuing
    operations          $     0.32  $     0.61  $     0.61  $     1.07
   Discontinued
    operations                  --       (0.19)         --       (0.20)
                        ----------  ----------  ----------  ----------
   Net income           $     0.32  $     0.42  $     0.61  $     0.87
                        ==========  ==========  ==========  ==========

 (1) On June 1, 2007 the Company sold a majority interest in FGDI,
     LLC, which represented our entire Grain Merchandising segment.
     Subsequent to such sale, the company retained a 25% interest in
     FGDI, LLC which is now accounted for on the equity method and
     included in other revenues. In the six months ended February
     28, 2007, sales of commodities, included $779.2 million from
     FGDI, LLC.


                 FCSTONE GROUP, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 (in thousands, except share amounts)

                                                 Aug. 31,    Feb. 29,
                                                   2007        2008
                                                ----------  ----------
                                                            (Unaudited)
                    ASSETS
 Cash and cash equivalents:
   Unrestricted                                 $   90,053  $   60,774
   Segregated                                       14,250      56,109
 Commodity deposits and receivables:
   Commodity exchanges and clearing
    organizations -- customer segregated           686,441   1,198,933
   Proprietary commodity accounts                   77,690     159,013
   Receivables from customers, net of
    allowance for doubtful accounts                 16,868      26,396
                                                ----------  ----------
     Total commodity deposits and receivables      780,999   1,384,342
                                                ----------  ----------
 Marketable securities, at fair value --
  customer segregated and other                    307,828     265,931
 Counterparty deposits and trade accounts
  receivable, net of allowance for doubtful
  accounts                                          20,746      83,886
 Open contracts receivable                         120,219     393,375
 Notes receivable and advances                      49,291     149,698
 Exchange memberships and stock                     10,366       7,410
 Plant, equipment, furniture, software and
  improvements, net of accumulated depreciation      4,763       6,819
 Assets held for sale                                   --       7,836
 Other assets                                       21,679      41,749
                                                ----------  ----------
     Total assets                               $1,420,194  $2,457,929
                                                ==========  ==========

     LIABILITIES AND STOCKHOLDERS' EQUITY
 Liabilities:
 Commodity and customer regulated accounts
  payable                                       $  935,515  $1,412,721
 Trade accounts payable and advances               115,145     255,921
 Open contracts payable                            121,101     396,686
 Accrued expenses                                   38,632      44,085
 Notes payable and repurchase obligations           35,133     142,173
 Subordinated debt                                   1,000       1,000
                                                ----------  ----------
     Total liabilities                           1,246,526   2,252,586
                                                ----------  ----------
 Minority interest                                      --          --

 Stockholders' equity:
 Common stock, $0.0001 par value, authorized
  40,000,000 at August 31, 2007 and
  February 29, 2008, respectively; issued and
  outstanding 27,416,567 and 27,792,140 shares
  at August 31, 2007 and February 29, 2008,
  respectively                                     104,267     106,332
 Additional paid-in capital                          1,115       7,249
 Treasury stock                                       (376)       (387)
 Accumulated other comprehensive loss               (3,620)     (5,042)
 Retained earnings                                  72,282      97,191
                                                ----------  ----------
     Total stockholders' equity                    173,668     205,343
                                                ----------  ----------
 Commitments and contingencies
     Total liabilities and stockholders'
      equity                                    $1,420,194  $2,457,929
                                                ==========  ==========


                 FCSTONE GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)
                            (in thousands)

                                                   Six Months Ended
                                                ----------------------
                                                 Feb. 28,    Feb. 29,
                                                   2007        2008
                                                ----------  ----------
 Cash flows from operating activities:
   Net income                                   $   13,234  $   25,201
   Plus: Loss from discontinued operations              88       5,719
                                                ----------  ----------
   Income from continuing operations                13,322      30,920
   Adjustments to reconcile net income to net
    cash flows from operating activities:
     Depreciation                                      879         732
     Amortization of discount on note
      receivable                                       (28)         (9)
     Loss on cancellation of warrants                   --         110
     Gain on sale of exchange memberships and
      stock                                           (100)     (2,930)
     Gain on sale of other assets                       --        (520)
     Stock compensation                                 --         753
     Equity in earnings of affiliates, net of
      distributions                                     45      (1,398)
     Minority interest                                 438          --
     Excess tax benefit of stock option
      exercises                                         --      (5,381)
     Change in commodity accounts receivable/
      payable, marketable securities and
      customer segregated funds, net                 6,231    (126,099)
     Change in open contracts receivable/
      payable, net                                 (43,513)      2,429
     (Increase) decrease in trade accounts
      receivable and advances on grain              (3,028)        525
     Increase in counterparty deposits and
      accounts receivable                           (9,875)    (63,665)
     Increase in other assets                      (32,452)     (7,511)
     (Decrease) increase in trade accounts
      payable and advances                         (10,722)    141,196
     (Decrease) increase in accrued expenses        (2,522)      7,753
                                                ----------  ----------
     Net cash used in operating activities      $  (81,325)    (23,095)
                                                ----------  ----------
 Cash flows from investing activities:
   Additions to furniture, equipment, software
    and improvements                                (1,054)     (2,788)
   Acquisitions of businesses                           --      (6,725)
   Issuance of notes receivable, net               (79,760)    (93,390)
   Proceeds from the sale of exchange
    memberships and stock                              378       3,498
   Purchase of exchange memberships and stock       (1,430)         --
   Proceeds from the sale of other intangible
    assets                                              --       1,350
   Purchase of other intangible assets                  --      (1,049)
                                                ----------  ----------
     Net cash used in investing activities         (81,866)    (99,104)
                                                ----------  ----------
 Cash flows from financing activities:
   Increase in checks written in excess of bank
    balance                                           (866)         --
   Proceeds from note payable, net                 151,162      86,018
   Proceeds from exercises of stock options             --       2,065
   Excess tax benefit of stock option exercises         --       5,381
   Treasury stock acquired                              --         (11)
   Dividends paid                                   (6,057)         --
   Payments under capital lease                       (275)         --
   Proceeds from subordinated debt                   8,000          --
   Monies released from escrow                       2,526          --
   Monies deposited in escrow                          (33)         --
                                                ----------  ----------
     Net cash provided by financing activities     154,457      93,453
                                                ----------  ----------
 Cash flows used for discontinued operations:
   Net cash from operating activities                   --       1,178
   Net cash used in investing activities                --      (1,711)
   Net cash provided by financing activities            --          --
                                                ----------  ----------
     Net cash used for discontinued operations          --        (533)
                                                ----------  ----------
 Net decrease in cash and cash equivalents -
  unrestricted                                      (8,734)    (29,279)
 Cash and cash equivalents - unrestricted -
  beginning of period                               59,726      90,053
                                                ----------  ----------
 Cash and cash equivalents - unrestricted -
  end of period                                 $   50,992  $   60,774
                                                ==========  ==========
   Supplemental disclosures of cash flow
    information:
   Interest paid                                $    5,473  $    2,985
   Income taxes paid                            $    8,594  $   13,614
                                                ==========  ==========


 Non-GAAP Financial Measures
 The following table reconciles revenues, net of cost of commodities
 sold, with our total revenues.

                          Three Months Ended      Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
                                      ($ in thousands)
 Revenues:
   Commissions and
    clearing fees       $   33,353  $   46,068  $   66,256  $   85,450
   Service, consulting
    and brokerage fees       9,314      23,728      18,409      40,002
   Interest                 10,729      18,858      19,127      32,239
   Other                     1,013       2,038       1,534       6,635
   Sales of
    commodities            349,098       1,350     797,886       1,350
                        ----------  ----------  ----------  ----------

 Total revenues            403,507      92,042     903,212     165,676
 Less: Cost of
  commodities sold         343,350         830     785,678         830
                        ----------  ----------  ----------  ----------

 Revenues, net of cost
  of commodities sold   $   60,157  $   91,212  $  117,534  $  164,846
                        ==========  ==========  ==========  ==========


 The following table reconciles EBITDA with our net income.

                          Three Months Ended      Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
                                      ($ in thousands)
 Net income:            $    6,920  $   12,116  $   13,234  $   25,201
   Plus: interest
    expense                  4,251       1,809       6,490       3,010
   Plus: depreciation
    and amortization           443         376         879         732
   Plus: income tax
    expense                  4,125      10,700       7,925      18,650
   Plus: loss on
    discontinued
    operations, net
    of tax                      59       5,673          88       5,719
                        ----------  ----------  ----------  ----------

 EBITDA                 $   15,798  $   30,674  $   28,616  $   53,312
                        ==========  ==========  ==========  ==========


            Commodity and Risk Management Services Segment:
        The following table provides the financial performance
                           for this segment.

                          Three Months Ended       Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
                                       ($ in thousands)
 Sales of commodities   $       --  $    1,350  $    2,542  $    1,350
 Cost of commodities
  sold                          --         830       2,460         830
                        ----------  ----------  ----------  ----------
   Gross profit on
    commodities sold            --         520          82         520
   Commissions and
    clearing fees           13,021      14,420      25,939      26,317
   Service, consulting
    and brokerage fees       9,458      23,857      18,675      40,207
   Interest                  4,742       7,532       8,388      13,648
   Other revenues(1)            51         166         106       3,079
                        ----------  ----------  ----------  ----------
 Revenues, net of
  cost of commodities
  sold                      27,272      46,495      53,190      83,771
 Other costs and
  expenses:
   Expenses (excluding
    interest expense)       18,051      24,677      36,276      44,787
   Interest expense             68          54         197          57
                        ----------  ----------  ----------  ----------
 Total costs and
  expenses (excluding
  cost of commodities
  sold)                     18,119      24,731      36,473      44,844
                        ----------  ----------  ----------  ----------
 Segment income
  before minority
  interest
  and income taxes(1)   $    9,153  $   21,764  $   16,717  $   38,927
                        ==========  ==========  ==========  ==========

 Exchange contract
  trading volume
  (millions)                   0.6         0.9         1.5         1.6
 OTC Contract volume       160,839     370,337     286,244     671,595

 (1) Amounts for the six months ended February 29, 2008, includes $2.9
     million from the combined gain on the sale of CME stock and CBOE
     trading rights.


                    Clearing and Execution Segment:
        The following table provides the financial performance
                           for this segment

                          Three Months Ended       Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
                                       ($ in thousands)
 Sales of commodities   $       --  $       --  $       --  $       --
 Cost of commodities
  sold                          --          --          --          --
                        ----------  ----------  ----------  ----------
   Gross profit on
    commodities sold            --          --          --          --
   Commissions and
    clearing fees           20,509      31,984      40,699      59,652
   Service, consulting
    and brokerage fees          --          --          --          --
   Interest                  3,654       8,964       7,485      14,334
   Other revenues              100          --         100          --
                        ----------  ----------  ----------  ----------
 Revenues, net of
  cost of commodities
  sold                      24,263      40,948      48,284      73,986
 Other costs and
  expenses:
   Expenses (excluding
    interest expense)       20,506      32,272      40,780      60,133
   Interest expense            326          20         464          41
                        ----------  ----------  ----------  ----------
 Total costs and
  expenses (excluding
  cost of commodities
  sold)                     20,832      32,292      41,244      60,174
                        ----------  ----------  ----------  ----------
 Segment income
  before minority
  interest and
  income taxes          $    3,431  $    8,656  $    7,040  $   13,812
                        ==========  ==========  ==========  ==========

 Exchange contract
  trading volume
  (millions)                  12.3        26.3        24.8        48.9


                      Financial Services Segment:
        The following table provides the financial performance
                           for this segment.

                          Three Months Ended       Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
                                       ($ in thousands)
 Sales of commodities   $    9,599  $       --  $   16,157  $       --
 Cost of commodities
  sold                       9,539          --      16,069          --
                        ----------  ----------  ----------  ----------
   Gross profit on
    commodities sold            60          --          88          --
   Commissions and
    clearing fees               --          --          --          --
   Service, consulting
    and brokerage fees          --          --          --          --
   Interest                  2,971       2,318       4,158       3,900
   Other revenues              360       1,184         682       1,566
                        ----------  ----------  ----------  ----------
 Revenues, net of cost
  of commodities sold        3,391       3,502       4,928       5,466
 Other costs and
  expenses:
   Expenses (excluding
    interest expense)          546       1,255       1,079       1,904
   Interest expense          2,426       1,776       3,402       3,035
                        ----------  ----------  ----------  ----------
 Total costs and
  expenses (excluding
  cost of commodities
  sold)                      2,972       3,031       4,481       4,939
                        ----------  ----------  ----------  ----------
 Segment income (loss)
  before minority
  interest and income
  taxes                 $      419  $      471  $      447  $      527
                        ==========  ==========  ==========  ==========


                     Grain Merchandising Segment:(1)
        The following table provides the financial performance
                           for this segment.

                          Three Months Ended       Six Months Ended
                        ----------------------  ----------------------
                         Feb. 28,    Feb. 29,    Feb. 28,    Feb. 29,
                           2007        2008        2007        2008
                        ----------  ----------  ----------  ----------
                                       ($ in thousands)
 Sales of commodities   $  339,499  $       --  $  779,187  $       --
 Cost of commodities
  sold                     333,950          --     767,462          --
                        ----------  ----------  ----------  ----------
   Gross profit on
    commodities sold         5,549          --      11,725          --
   Commissions and
    clearing fees               --          --          --          --
   Service, consulting
    and brokerage fees          --          --          --          --
   Interest                     29          --          64          --
   Other revenues              467          --         612          --
                        ----------  ----------  ----------  ----------
 Revenues, net of
  cost of commodities
  sold                       6,045          --      12,401          --
 Other costs and
  expenses:
   Expenses (excluding
    interest expense)        3,765          --       7,795          --
   Interest expense          1,940          --       3,146          --
                        ----------  ----------  ----------  ----------
 Total costs and
  expenses (excluding
  cost of commodities
  sold)                      5,705          --      10,941          --
                        ----------  ----------  ----------  ----------
 Segment income before
  minority interest
  and income taxes      $      340  $       --  $    1,460  $       --
                        ==========  ==========  ==========  ==========

  (1) On June 1, 2007 the Company sold a majority interest in FGDI,
      LLC, which represented our entire Grain Merchandising segment.
      Subsequent to such sale, the company retained a 25% interest in
      FGDI, LLC which is now accounted for under the equity method and
      included in the Corporate and Other segment.


                    Quarterly Financial Highlights:
       The following table provides summary financial highlights
                   by quarter for fiscal year 2008.

                                                  Three Months Ended
                                                ----------------------
                                                 Nov. 30,    Feb. 29,
                                                   2007        2008
                                                ----------  ----------
                                                   ($ in thousands)
 NON GAAP-Revenues,
  net of cost of commodities sold               $   73,634  $   91,212
 Income from continuing operations
  before income tax expense(1)                  $   21,081  $   28,489
 Net income from continuing operations(1)       $   13,131  $   17,789
 Loss from discontinued operations, net of tax  $       46  $    5,673
 Net income(1)                                  $   13,085  $   12,116


 (1) The three months ended November 30, 2007 included a pre-tax gain
     on the sale of CME stock of $2.4 million and a pre-tax gain of
     $0.5 million on the sale of CBOE trading rights. Without these
     items our first quarter income from continuing operations before
     income tax expense would have been $18.2 million, net income from
     continuing operations would have been $11.5 million and net
     income would have been $11.4 million.


            

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