UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________________ to _________________
Commission File # 0-15187
IFX CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 36-3399452
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
200 West Adams Street, Suite 1500, Chicago, Illinois 60606
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(Address of principal executive offices) (Zip Code)
(312) 419-9530
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
X Yes ____ No
-----
As of the date of this report, the issuer had outstanding 6,275,619 shares of
common stock, $.02 par value per share.
1
IFX CORPORATION AND SUBSIDIARIES
Part I - Financial Information
Item 1. Financial Statements
Immediately following this page, the following financial information of the
Registrant is filed as part of this Report.
Page
----
Consolidated statements of financial condition
as of March 31, 1998 and June 30, 1997. 3
Consolidated statements of operations for the
three months and nine months ended March 31,
1998 and 1997. 4
Consolidated statements of cash flows for the
nine months ended March 31, 1998 and 1997. 6
Notes to consolidated financial statements. 8
2
IFX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
ASSETS
June 30, 1997
March 31, 1998 (restated)
------------------------------
(Unaudited) (Audited)
Cash $ 546,700 $ 3,279,300
U.S. Government obligations 5,116,800 1,527,100
Other short term investments 32,731,000 44,875,100
Receivables:
Brokers and dealers 6,523,100 2,911,600
March 31, June 30,
1998 1997
---------- -----------
Customers & counterparties $ 714,600 $ 1,422,900
Other 1,091,800 1,503,300
Less - Allowance for doubtful accounts (422,400) (430,000) 1,384,000 2,496,200
---------- -----------
Investments in and advances to affiliated partnerships 71,800 50,000
Notes receivable 813,400 618,900
Furniture, equipment, and leasehold improvements, net of
accumulated depreciation and amortization of $258,600
and $140,300, respectively 174,000 269,000
Other assets 514,900 616,000
----------- -----------
Total $47,875,700 $56,643,200
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Payables:
Brokers and Dealers $ 130,800 $ 1,068,200
Customers & counterparties 33,570,600 41,284,600
Affiliates and employees 60,500 57,900
Accounts payable and accrued expenses 1,779,600 3,406,600
Notes payable -- 1,586,600
----------- -----------
Total 35,541,500 47,403,900
----------- -----------
Minority Interest 1,711,800 1,035,600
----------- -----------
Stockholders' equity:
Common stock, restated for reverse split, $.02 par value;
150,000,000 shares authorized, 6,275,619 and 6,279,130 shares
issued and outstanding, respectively 125,500 125,600
Paid-in capital and retained earnings 10,542,600 8,123,800
Cumulative translation adjustment (45,700) (45,700)
----------- -----------
Total stockholders' equity 10,622,400 8,203,700
----------- -----------
Total $47,875,700 $56,643,200
=========== ===========
The accompanying notes are an integral part of the consolidated financial
statements.
3
IFX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
--------------------------
1998 1997
---------- -----------
Revenues:
Commissions $ 403,500 $ 28,700
Interest 681,300 1,251,100
Trading gains, net 1,700,500 2,474,500
Earn-out from Sale of Assets 995,800 509,000
Other 80,500 26,400
---------- ----------
Total revenues 3,861,600 4,289,700
---------- ----------
Expenses:
Commission, floor brokerage and clearing costs 307,900 46,800
Compensation and related benefits 670,600 901,400
Communications 158,900 160,700
Interest 399,500 955,200
Rent and other occupancy costs 225,500 213,100
Business promotion 161,100 177,400
Professional and consulting fees 261,400 120,300
Depreciation 38,900 36,000
Other 115,800 156,000
---------- ----------
Total expenses 2,339,600 2,766,900
---------- ----------
Income before income taxes and minority interest 1,522,000 1,522,800
Income tax expense 515,400 513,600
---------- ----------
Net income before minority interest 1,006,600 1,009,200
Minority interest 241,900 -
---------- ----------
Net income 764,700 1,009,200
Assumed cumulative dividend on Class A preferred stock - (3,300)
---------- ----------
Net income applicable to common stock $ 764,700 $1,005,900
========== ==========
Primary earnings per common share, restated for reverse split:
Net income $ .12 $ .15
========== ==========
Weighted average number of common shares outstanding 6,278,584 6,696,251
========== ==========
Fully diluted earnings per common share, restated for reverse split:
Net income $ .12 $ .15
========== ==========
Weighted average number of common shares outstanding 6,278,584 6,696,251
========== ==========
The accompanying notes are an integral part of the consolidated financial
statements.
4
IFX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended
March 31,
------------------------------
1998 1997
----------- -----------
Revenues:
Commissions $ 835,600 $ 161,500
Interest 2,397,100 2,452,900
Trading gains, net 5,245,200 5,304,500
Earn-out from Sale of Assets 2,930,100 1,226,300
Other 90,900 957,600
----------- -----------
Total revenues 11,498,900 10,102,800
----------- -----------
Expenses:
Commission, floor brokerage and clearing costs 671,600 254,800
Compensation and related benefits 1,771,900 2,933,600
Communications 537,600 514,200
Interest 1,511,300 2,025,800
Rent and other occupancy costs 618,800 446,000
Business promotion 379,500 359,500
Professional and consulting fees 763,900 432,700
Depreciation 136,000 83,200
Other 421,800 607,000
----------- -----------
Total expenses 6,812,400 7,656,800
----------- -----------
Income before income taxes and minority interest 4,686,500 2,446,000
Income tax expense 1,480,500 824,200
----------- -----------
Net income before minority interest 3,206,000 1,621,800
Minority interest 780,200 -
----------- -----------
Net income 2,425,800 1,621,800
Assumed cumulative dividend on Class A preferred stock - (23,300)
----------- -----------
Net income applicable to common stock $ 2,425,800 $ 1,598,500
=========== ===========
Primary earnings per common share, restated for reverse split:
Net income $ .39 $ .24
=========== ===========
Weighted average number of common shares outstanding 6,277,627 6,715,494
=========== ===========
Fully diluted earnings per common share, restated for reverse split:
Net income $ .39 $ .24
=========== ===========
Weighted average number of common shares outstanding 6,277,627 6,715,494
=========== ===========
The accompanying notes are an integral part of
the consolidated financial statements.
5
IFX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
March 31,
----------------------------
1998 1997
------------ --------------
Cash Flows From Operating Activities:
Net income (loss) $ 2,425,800 $ 1,621,800
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 136,000 83,200
Deferred taxes (6,000) 7,600
Doubtful accounts expense (benefit) (7,600) 46,400
Equity in net (gain) loss of affiliated partnerships (7,800) -
Gain on sale of exchange memberships, net - (221,600)
Writedown of exchange memberships - 180,100
Gain on sale of clearing corporation stock - (664,000)
Changes in:
Cash segregated or secured under
Commodity Exchange Act, net - 2,009,500
U.S. Government obligations (3,589,700) 139,365,200
Other short term investments 12,144,100 (76,871,500)
Deposits with clearing organizations - 42,456,300
Warehouse receipts - 959,500
Receivables (2,491,700) 7,336,700
Other assets 107,100 142,000
Payables (8,648,800) (105,360,000)
Accounts payable and accrued expenses (1,627,000) (1,559,500)
----------- -------------
Cash provided by (used in) operating activities (1,565,600) 9,531,700
----------- -------------
Cash Flows From Investing Activities:
Investments in and advances to affiliated partnerships, net (14,000) -
Increase in notes receivable (194,500) -
Decrease in notes receivable - 1,500
Purchase of furniture, equipment and leasehold improvements (41,000) (185,900)
Proceeds from the sale of exchange memberships - 773,000
Proceeds from the sale of clearing corporation stock - 1,024,000
Proceeds from the sale of furniture and equipment - 116,200
----------- -------------
Cash provided by (used in) investing activities (249,500) 1,728,800
Cash Flows From Financing Activities:
Repayment of notes payable (1,586,600) (1,840,000)
Repayment of liabilities subordinated to
claims of general creditors - (4,000,000)
Minority interest 676,200 -
Repurchase of common stock (7,100) (127,200)
----------- -------------
Cash provided by (used in) financing activities (917,500) (5,967,200)
----------- -------------
Effect of exchange rate changes on cash - (31,200)
----------- -------------
Increase (decrease) in cash (2,732,600) 5,262,100
Cash, beginning of period 3,279,300 1,587,300
----------- -------------
Cash, end of period $ 546,700 $ 6,849,400
=========== =============
The accompanying notes are an integral part of the consolidated
financial statements.
6
IFX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Supplemental Schedule of Non-Cash Investing and Financing Activities
Nine Months Ended March 31, 1998
- --------------------------------
None.
Nine Months Ended March 31, 1997
- --------------------------------
In January, 1997, notes payable aggregating $4,550,000 due January 31, 1997 were
extended to January 31, 1998. $3,800,000 of these notes were repaid during
fiscal 1997, and the remaining $750,000 was repaid during September, 1997.
Also in January, 1997, a note payable for $836,600 was issued to the Company's
principal stockholder as payment for the redemption of preferred stock and
dividends accrued thereon. This note was repaid in February, 1998.
7
IFX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Basis of Presentation
- ---------------------
The consolidated financial statements include the accounts of IFX Corporation
(formerly Jack Carl/312-Futures, Inc., "JC/312") and Subsidiaries,
(collectively, the "Company"). All material intercompany accounts and
transactions have been eliminated in consolidation. Until July 1, 1996, the
Company engaged principally in the business of effecting transactions in futures
and options on futures contracts for the accounts of customers and the operation
of commodity pools. Index Futures Group, Inc. ("Index"), until July 1, 1996, was
the principal operating subsidiary of JC/312. Effective July 1, 1996, Index
sold, transferred and assigned substantially all of its brokerage accounts
("Sale of Assets") to E.D. & F. Man International Inc. ("MINC"). Index ceased
being a registered futures commission merchant with the Commodity Futures
Trading Commission ("CFTC") in December, 1996. As a condition of the Sale, Index
changed its name to FX Chicago, Inc. IFX, Ltd. (formerly Index FX, Ltd.), a
British corporation and a majority owned subsidiary of IFX Corporation,
continues to conduct foreign exchange business as a registrant of the British
Securities and Futures Authority.
These consolidated financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to rule 10-01 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting only of normal recurring adjustments)
considered necessary for a fair presentation have been reflected in these
condensed consolidated financial statements. Operating results for the quarter
are not necessarily indicative of the results that may be expected for the year
ending June 30, 1998. Certain reclassifications have been made in the 1997
financial statements to conform to the 1998 presentation. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's financial statements on Form 10-K for the year
ended June 30, 1997.
Commitments and Contingencies
- -----------------------------
Litigation-
- -----------
The Company is a defendant in, and may be threatened with, various legal
proceedings arising from its regular business activities. Management, after
consultation with legal counsel, is of the opinion that the ultimate liability,
if any, resulting from any pending action or proceedings will not have a
material effect on the financial position or results of operations of the
Company.
8
IFX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
On November 24, 1997, the trustee of a pension plan filed a Demand for
Arbitration with the National Futures Association against Index and several
other respondents, including an introducing broker guaranteed by Index. In the
Demand, the trustee alleges breach of fiduciary duty, churning,
misrepresentation, failure to supervise, breach of contract, aiding and
abetting, and violation of ERISA. Claimant seeks actual damages of $141,000 and
punitive damages of $460,000. The Company believes the claim is without merit
and will defend vigorously.
On May 16, 1996, Index filed suit in the Circuit Court of Cook County--Law
Division against Doug Niemann, a former customer, for breach of contract,
seeking to recover a debit balance of $88,200 (Index Futures Group, Inc. v. Doug
Niemann, case no. 96L-5506). On January 14, 1997, Niemann filed a counterclaim
for $688,200. The Company believes that the counterclaim is without merit and
will defend vigorously.
In April, 1994, Index without admitting or denying the allegations, paid
$100,000 to the CFTC, settling an administrative action filed on September 29,
1992. In a related action, the equity receiver of an alleged commodity pool
operator brought an action to recover losses of approximately $600,000, alleging
various theories such as constructive trust, negligence, breach of fiduciary
duty and conversion. On May 29, 1996, the district judge dismissed the complaint
in its entirety. On December 4, 1997, the Court of Appeals affirmed the district
judge's dismissal of all claims against Index. On January 13, 1998, the Court of
Appeals denied the Supplemental Plaintiffs' request for a rehearing of its
appeal.
A former officer of Index whose employment was terminated as a result of the
Sale of Assets rejected Index's severance payment offer. The officer had made a
demand for $500,000. The Company settled this case in July, 1997 for $75,000.
Other-
------
In connection with the Sale of Assets, if certain conditions occur over the
next year, the Company may be subject to additional severance payments of up to
$100,000.
The Company has also entered into a consulting contract which expires during
fiscal 1999, providing for aggregate minimum payments of $45,500 remaining as of
March 31, 1998.
The Company had guaranteed performance under the Commodity Exchange Act of
certain introducing brokers with respect to their customer accounts. In
connection with the Sale of Assets, these introducing broker guarantees were
terminated or transferred to MINC effective July 1, 1996.
Index issued a limited indemnification agreement to MINC related to the Sale
of Assets. This agreement covers potential customer claims arising from activity
prior to the sale.
9
IFX CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Stockholders' Equity
- --------------------
On January 8, 1998, the Company effected a one-for-five reverse split of its
common stock, par value .004, effective on January 12, 1998 (the "Effective
Date"). Each five shares of such common stock were reclassified and reflected as
one share of common stock having a par value of $.02, as of January 12, 1998.
Outstanding shares of the Company's common stock were reduced to 6,279,130
shares from 31,395,649 shares outstanding before the split.
Any holder of fractional shares resulting from this reverse split will be paid
an amount equal to the mean between the bid and the offer prices for the
Company's Common Stock on the NASDAQ SmallCap market on the Effective Date
multiplied by the amount of the fractional share. The one-for-five reverse split
also resulted in certain shareholders owning "odd lots," that is, less than one
hundred shares of Common Stock. In order to reduce the disproportionately high
costs to the Company of servicing numbers of such shareholder accounts, and to
enable those shareholders to dispose of their securities without incurring the
brokerage fees that normally attend odd-lot transactions, the Company offered to
purchase from its shareholders all odd lots (i.e., less one hundred shares). The
purchase amount was based upon the number of odd-lot shares multiplied by the
mean between the bid and offer prices on the date of purchase, without
commissions. The Company maintained its offer to repurchase such odd lots until
February 26, 1998, forty-five days immediately following the Effective Date. As
of March 31, 1998, the Company had repurchased approximately 3,500 shares.
Outstanding shares of common stock as of March 31, 1998 totaled 6,275,619.
Sale of Assets
- --------------
The purchase price payable by MINC in connection with the Sale of Assets is
based on a percentage of the net income, as defined in the Sales Agreement, of
the transferred activities during the sixty-six month period following the sale.
During the nine months ended March 31, 1998 and 1997, the Company earned
$2,930,100 and $1,226,300 respectively from the Sale of Assets.
Capital Requirements
- --------------------
IFX Ltd. became a registrant of the British Securities and Futures Authority
("SFA") during November, 1996. As such, IFX Ltd. is subject to the financial
resources requirements adopted and administered by the SFA. As of March 31,
1998, IFX Ltd.'s financial resources, as defined by the SFA, were $6,972,000,
which was $3,513,000, in excess of its requirements.
10
IFX CORPORATION AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations for the Period Ended March 31, 1998.
IFX Corporation (formerly Jack Carl/312-Futures, Inc.), (which when
consolidated with its subsidiaries is henceforth referred to as the "Company")
is a holding company which operates its business through its subsidiaries. Index
Futures Group, Inc. ("Index"), until July 1, 1996, the Company's principal
operating subsidiary, provided a full range of futures brokerage, clearing and
back office services for institutional and public commodity traders. It was a
clearing member of all major U.S. commodity exchanges. Effective July 1, 1996,
Index sold, transferred and assigned substantially all of its brokerage accounts
("Sale of Assets") to E.D.& F. Man International, Inc. ("MINC"). As a result of
the Sale of Assets, Index no longer acts as a futures commission merchant. It
immediately withdrew as a clearing member from all commodity exchanges, and
terminated its registration as a futures commission merchant in December, 1996.
As a condition of the Sale, Index changed its name to FX Chicago Inc. Operations
at FX Chicago Inc. are currently limited to activity relating to the net income
derived from the Sale of Assets. IFX Ltd. (formerly Index FX, Ltd.), a British
corporation and a subsidiary of IFX Corporation continues to conduct foreign
exchange business as a registrant of the British Securities and Futures
Authority ("SFA"). IFX Ltd. commenced trading operations in October, 1995 and
became an SFA registrant in November, 1996.
Financial Condition
- -------------------
The Company's cash and short-term investment portfolio totaled $38,394,500 at
March 31, 1998. Included in this amount is $29,568,000 of funds from IFX Ltd.
customers, which have been invested by IFX Ltd. on the customers' behalf or are
held in segregated cash accounts, pursuant to rules of the SFA. The Company's
positions are generally liquid. The portfolio is invested primarily in U.S.
dollar denominated securities, but also includes foreign currency positions
deposited by IFX customers.
As a registrant, IFX Ltd. is subject to the financial resources requirements
adopted and administered by the SFA. As of March 31, 1998, IFX Ltd.'s financial
resources, as defined by the SFA, were $6,972,000, which was $3,513,000 in
excess of its requirements.
During February, 1998, the Company repaid $836,600 of notes payable
outstanding to its principal stockholder.
Stockholders' equity at March 31, 1998 was $10,622,400. The Company effected a
one-for-five reverse split of its common stock, par value .004, effective on
January 12, 1998 (the "Effective Date"). Each five shares of such common stock
were reclassified and reflected as one share of common stock having a par value
of $.02, as of January 12, 1998. Outstanding shares of the Company's common
stock were reduced to 6,279,130 shares from 31,395,649 shares outstanding before
the split.
Any holder of fractional shares resulting from this reverse split will be paid
an amount equal to the mean between the bid and the offer prices for the
Company's Common Stock on the NASDAQ SmallCap market on the Effective Date
multiplied by the amount of the fractional share. The one-for-five reverse
11
IFX CORPORATION AND SUBSIDIARIES
split also resulted in certain shareholders owning "odd lots," that is, less
than one hundred shares of Common Stock. In order to reduce the
disproportionately high costs to the Company of servicing numbers of such
shareholder accounts, and to enable those shareholders to dispose of their
securities without incurring the brokerage fees that normally attend odd-lot
transactions, the Company offered to purchase from its shareholders all odd lots
(i.e., less one hundred shares). The purchase amount was based upon the number
of odd-lot shares multiplied by the mean between the bid and offer prices on the
date of purchase, without commissions. The Company maintained its offer to
repurchase such odd lots until February 26, 1998, forty-five days immediately
following the Effective Date. As of March 31, 1998, the Company had repurchased
approximately 3,500 shares. Outstanding shares of common stock as of March 31,
1998 totaled 6,275,619.
For the nine months ended March 31, 1998, cash used in operations was
$1,565,600 compared to cash provided by operations of $9,531,700 for the same
period in fiscal 1997. The majority of cash used in operations is related to
payments of customer funds made to customers of IFX Ltd. In addition, the
Company invests cash not needed for operations at FX Chicago, Inc. in U.S.
Government obligations. As of March 31, 1998, the Company held $5,116,800 in
U.S. Government obligations.
Management believes existing cash and short-term investments together with
operating cash flows, access to equity capital, and borrowing capacity, provide
adequate resources to fund ongoing operating requirements and future capital
expenditures related to the expansion of existing businesses and development of
new projects.
12
IFX CORPORATION AND SUBSIDIARIES
Results of Operations
- ---------------------
IFX Ltd., the Company's London-based operation, continues to grow. IFX
Ltd.'s target customer base is beginning to recognize it as an effective and
efficient alternative to the larger money center banks. In addition, the
Company's earnings from the Sale of Assets have continued to increase as MINC
generates more and more business from the brokerage accounts it purchased from
Index. As such, revenues of the Company are currently increasing at a much
greater rate than are expenses. Pursuant to the Sale of Assets agreement, the
Company's percentage of earnings from the brokerage accounts will decrease based
upon a predetermined schedule as defined in the sales agreement, over the
remainder of the original sixty-six month period following the sale. As such,
earnings from the Sale of Assets may decrease accordingly.
Revenues were $3,861,600 and $11,498,900 during the three and nine months
ended March 31, 1998, respectively, a decrease of 10% and an increase of 14%,
respectively, from the same periods a year ago. Commission revenues continue to
increase as the IFX Ltd. business continues to expand. Trading revenues
decreased by 31% for the three month period ended March 31, 1998, compared to
the same period a year ago, largely as a result of the lack of volatility in the
foreign currency market during the period.
Revenues from the Sale of Assets increased by $486,800 and $1,703,800
during the three and nine months ended March 31, 1998, respectively, compared to
the same periods a year ago. Reported revenues during previous quarters of
fiscal 1997 were subsequently adjusted and increased by $237,100 by MINC. These
adjustments are reflected in the earnings from the Sale of Assets for the
quarter ended December 31, 1997. The Company's earnings from the Sale of Assets
continue to increase as MINC generates more and more business from the brokerage
accounts it purchased from Index.
Other revenue increased by $54,100 and decreased by $866,700 during the
three and nine months ended March 31, 1998, respectively, compared to the same
periods a year ago. Included in other revenue during the nine months ended March
31, 1997 was a net gain of $885,600, respectively, on the sale of exchange
memberships and clearing corporation stock.
Total expenses were $2,339,600 and $6,812,400 in the three months and nine
months ended March 31, 1998, respectively, representing a decrease of 15% and
11% from the same periods a year ago. The decrease in expenses as resulting from
the Sale of Assets has been somewhat offset by the increasing expenses from the
expanding operations of IFX Ltd.
As a result of the aforementioned revenues and expenses, net income for the
quarter ended March 31, 1998 is $764,700, or $.12 per share, compared to net
income of $1,005,900, or $.15 per share (as restated for the one-for-five
reverse split of common stock) for the same period a year ago.
Net income for the nine months ended March 31, 1998 is $2,425,800, or $.39
per share, compared to net income of $1,598,500, or $.24 per share (as restated
for the one-for-five reverse split of common stock) for the same period a year
ago.
The Board of Directors is exploring various business opportunities for the
Company now that FX Chicago, Inc. no longer acts as a futures commission
merchant, and as a result has capital available for investments.
13
Item 1. Legal Proceedings
See Notes to Financial Statements.
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits
11.1 Computation of earnings per common Share
27 Financial Data Schedule (EDGAR only)
(B) REPORTS ON FORM 8-K
- On January 8, 1998, the Company filed a report on Form 8-K
reporting the implementation of a one-for-five reverse split
of the Company's stock, effective January 12, 1998.
14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
IFX CORPORATION
--------------------------
(Registrant)
Dated: May 11, 1998 By: /S/ CHRISTINA S. DONKA
--------------------------
Christina S. Donka
Chief Financial Officer
15