Annual report pursuant to Section 13 and 15(d)

RECAST (Tables)

v3.23.1
RECAST (Tables)
 12 Months Ended
Mar. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
Revision of prior period statements The previously issued Consolidated Balance Sheet as of March 31, 2022 and March 31, 2021, and Consolidated Statement of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2022, March 31, 2021 and March 31, 2020, have been revised as follows:
As of March 31, 2022
As previously reported Recast discontinued operations As recast
ASSETS
Cash and cash equivalents $ 625,547  $ (400,884) $ 224,663 
Restricted cash 553,680  (5,730) 547,950 
Trading securities 1,203,479  (122,497) 1,080,982 
Available-for-sale securities, at fair value 1  —  1 
Brokerage and other receivables, net 357,567  (210,087) 147,480 
Loans issued 94,797  (2,394) 92,403 
Deferred tax assets 12,018  (11,161) 857 
Fixed assets, net 21,365  (3,978) 17,387 
Intangible assets, net 5,791  (2,279) 3,512 
Goodwill 5,388  —  5,388 
Right-of-use asset 15,669  (8,922) 6,747 
Other assets, net 25,707  (7,213) 18,494 
Assets held for sale —  825,419  825,419 
TOTAL ASSETS $ 2,921,009  $ 50,274  $ 2,971,283 
LIABILITIES AND SHAREHOLDERS' EQUITY
Securities repurchase agreement obligations $ 775,178  $ (32,468) $ 742,710 
Customer liabilities 1,417,937  (651,310) 766,627 
Trade payables 45,229  (147) 45,082 
Current income tax liability 14,556  —  14,556 
Securities sold, not yet purchased - at fair value 14,103  (238) 13,865 
Loans received 3,538  —  3,538 
Debt securities issued 99,027  (64,637) 34,390 
Lease liability 15,315  (8,530) 6,785 
Deferred income tax liabilities —  —  — 
Deferred distribution payments 8,534  —  8,534 
Other liabilities 19,917  (4,874) 15,043 
Liabilities held for sale —  812,478  812,478 
TOTAL LIABILITIES $ 2,413,334  $ 50,274  $ 2,463,608 
Commitments and Contingent Liabilities (Note 30) —  —  — 
SHAREHOLDERS' EQUITY
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding
 —  —  — 
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 and 58,443,212 shares issued and outstanding as of March 31, 2022 and 2021, respectively
59  —  59 
Additional paid in capital 141,340  —  141,340 
Retained earnings 426,563  —  426,563 
Accumulated other comprehensive loss (53,291) —  (53,291)
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY $ 514,671  $ —  $ 514,671 
Non-controlling interest (6,996) —  (6,996)
TOTAL SHAREHOLDERS' EQUITY $ 507,675  $ —  $ 507,675 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,921,009  $ 50,274  $ 2,971,283 
As of March 31, 2021
As previously reported Recast discontinued operations As recast
ASSETS
Cash and cash equivalents $ 698,828  $ (530,811) $ 168,017 
Restricted cash 437,958  52,733  490,691 
Trading securities 736,188  (148,642) 587,546 
Available-for-sale securities, at fair value 1  —  1 
Brokerage and other receivables, net 64,801  (15,283) 49,518 
Loans issued 11,667  (2,041) 9,626 
Fixed assets, net 18,385  (2,814) 15,571 
Intangible assets, net 9,785  (5,883) 3,902 
Goodwill 7,868  (731) 7,137 
Right-of-use asset 13,262  (8,636) 4,626 
Other assets 19,902  (4,263) 15,639 
Assets held for sale —  748,048  748,048 
TOTAL ASSETS $ 2,018,645  $ 81,677  $ 2,100,322 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Securities repurchase agreement obligations $ 426,715  $ (51,997) $ 374,718 
Customer liabilities 1,163,697  (491,872) 671,825 
Trade payables 22,304  (302) 22,002 
Current income tax liability 14,843  (644) 14,199 
Securities sold, not yet purchased – at fair value 8,592  (23) 8,569 
Loans received 3,373  —  3,373 
Debt securities issued 68,443  (37,094) 31,349 
Lease liability 13,249  (8,438) 4,811 
Deferred income tax liabilities 4,385  (378) 4,007 
Deferred distribution payments 8,534  —  8,534 
Other liabilities 8,839  (4,143) 4,696 
Liabilities held for sale —  676,568  676,568 
TOTAL LIABILITIES $ 1,742,974  $ 81,677  $ 1,824,651 
Commitments and Contingent Liabilities (Note 30) —  —  — 
SHAREHOLDERS’ EQUITY
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding
 —  —  — 
Common stock - $0.001 par value; 500,000,000 shares authorized;
58  —  58 
Additional paid in capital 104,672  —  104,672 
Retained earnings 208,628  —  208,628 
Accumulated other comprehensive loss (36,046) —  (36,046)
TOTAL FRHC SHAREHOLDERS’ EQUITY $ 277,312  $ —  $ 277,312 
Non-controlling interest (1,641) —  (1,641)
TOTAL SHAREHOLDERS’ EQUITY $ 275,671  $ —  $ 275,671 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,018,645  $ 81,677  $ 2,100,322 
Year ended March 31, 2022
As previously reported* Recast discontinued operations As recast
Revenue:
Fee and commission income $ 417,774  $ (82,330) $ 335,444 
Net gain on trading securities 77,671  78,674  156,345 
Interest income 105,965  (15,812) 90,153 
Net loss on foreign exchange operations (37,693) 39,672  1,979 
Net gain on derivative 946  —  946 
TOTAL REVENUE, NET 564,663  20,204  584,867 
Expense:
Fee and commission expense 81,231  (7,988) 73,243 
Interest expense 75,899  (10,450) 65,449 
Operating expense 161,593  (73,029) 88,564 
Provision for impairment losses 2,985  (779) 2,206 
Other expense, net 6,061  (4,749) 1,312 
TOTAL EXPENSE 327,769  (96,995) 230,774 
INCOME BEFORE INCOME TAX 236,894  117,199  354,093 
Income tax expense (25,525) (13,004) (38,529)
INCOME FROM CONTINUING OPERATIONS 211,369  104,195  315,564 
Income/(loss) before income tax (expense)/benefit of discontinued operations —  (117,199) (117,199)
Income tax (expense)/benefit of discontinued operations —  13,004  13,004 
Income/(loss) from discontinued operations —  (104,195) (104,195)
NET INCOME 211,369  —  211,369 
Less: Net loss attributable to non-controlling interest in subsidiary (6,566) —  (6,566)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 217,935  $ —  $ 217,935 
OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect —  —  — 
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect —  —  — 
Foreign currency translation adjustments, net of tax effect (17,245) —  (17,245)
OTHER COMPREHENSIVE INCOME/(LOSS) (17,245) —  (17,245)
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 194,124  $ —  $ 194,124 
Less: Comprehensive loss attributable to non-controlling interest in subsidiary (6,566) —  (6,566)
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 200,690  $ —  $ 200,690 
For the year ended March 31, 2022, the Company’s EPS as reported was 3.56 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 5.43 for both basic and diluted EPS for continuing operations, to (1.75) for both basic and diluted EPS for discontinued operations, and to 3.67 for both basic and diluted total EPS.
Year ended March 31, 2021
As previously reported* Recast discontinued operations As recast
Revenue:
Fee and commission income $ 268,776  $ (52,780) $ 215,996 
Net gain on trading securities 46,186  (20,275) 25,911 
Interest income 34,036  (11,221) 22,815 
Net gain on foreign exchange operations 3,428  (2,285) 1,143 
Net gain on derivative 125  (39) 86 
TOTAL REVENUE, NET 352,551  (86,600) 265,951 
Expense:
Fee and commission expense 73,100  (7,122) 65,978 
Interest expense 27,366  (8,760) 18,606 
Operating expense 77,434  (41,981) 35,453 
Provision for impairment losses 1,561  (44) 1,517 
Other expense/(income), net 68  (174) (106)
TOTAL EXPENSE 179,529  (58,081) 121,448 
INCOME BEFORE INCOME TAX 173,022  (28,519) 144,503 
Income tax expense (30,098) 6,736  (23,362)
INCOME FROM CONTINUING OPERATIONS 142,924  (21,783) 121,141 
Income before income tax expense of discontinued operations —  28,518  28,518 
Income tax expense of discontinued operations —  (6,735) (6,735)
Income from discontinued operations —  21,783  21,783 
NET INCOME 142,924  —  142,924 
Less: Net income attributable to non-controlling interest in subsidiary 631  —  631 
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 142,293  $ —  $ 142,293 
OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect —  —  — 
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect 71  —  71 
Foreign currency translation adjustments, net of tax effect 1,857  —  1,857 
OTHER COMPREHENSIVE INCOME 1,928  —  1,928 
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 144,852  $ —  $ 144,852 
Less: Comprehensive income attributable to non-controlling interest in subsidiary 631  —  631 
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 144,221  $ —  $ 144,221 
For the year ended March 31, 2021, the Company’s EPS as reported was 2.45 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 2.06 for both basic and diluted EPS for continuing operations, to 0.37 for both basic and diluted EPS for discontinued operations, and to 2.44 and 2.43 for basic and diluted total EPS, respectively.
Year ended March 31, 2020
As previously reported* Recast discontinued operations As recast
Revenue:
Fee and commission income $ 87,473  $ (26,281) $ 61,192 
Net gain on trading securities 14,923  (6,591) 8,332 
Interest income 17,329  (3,748) 13,581 
Net gain/(loss) on foreign exchange operations 2,315  (2,027) 288 
Net loss on derivative (138) 138  — 
TOTAL REVENUE, NET 121,902  (38,509) 83,393 
Expense:
Fee and commission expense 21,936  (2,521) 19,415 
Interest expense 12,399  (2,199) 10,200 
Operating expense 59,990  (34,312) 25,678 
Provision for impairment recoveries (1,164) (90) (1,254)
Other expense, net 609  (346) 263 
TOTAL EXPENSE 93,770  (39,468) 54,302 
INCOME BEFORE INCOME TAX 28,132  959  29,091 
Income tax expense (6,002) 1,069  (4,933)
INCOME FROM CONTINUING OPERATIONS 22,130  2,028  24,158 
Income/(loss) before income tax (expense)/benefit of discontinued operations —  (958) (958)
Income tax expense of discontinued operations —  (1,070) (1,070)
Income/(loss) from discontinued operations —  (2,028) (2,028)
NET INCOME 22,130  —  22,130 
Less: Net loss attributable to non-controlling interest in subsidiary (2,707) —  (2,707)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 24,837  $ —  $ 24,837 
OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect (71) —  (71)
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect —  —  — 
Foreign currency translation adjustments, net of tax effect (14,851) —  (14,851)
OTHER COMPREHENSIVE INCOME/(LOSS) (14,922) —  (14,922)
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 7,208  $ —  $ 7,208 
Less: Comprehensive loss attributable to non-controlling interest in subsidiary (2,707) —  (2,707)
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 9,915  $ —  $ 9,915 
For the year ended March 31, 2020, the Company’s EPS as reported was 0.38 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 0.46 for both basic and diluted EPS for continuing operations, to (0.03) for both basic and diluted EPS for discontinued operations, and to 0.43 for both basic and diluted total EPS.
*amounts with restatement in fee and commission income and interest income, for more information please see Note 4 - Restatement.