DGAP-News: NASDAQ OMX Reports Record First Quarter 2011 Results
ID: 391488
20.04.2011 13:00
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Non-GAAP Diluted EPS of $0.61 Represents 42% Increase Over Q110 Results
NEW YORK, 2011-04-20 13:00 CEST (GLOBE NEWSWIRE) --
The NASDAQ OMX Group, Inc. ('NASDAQ OMX(r)') (Nasdaq:NDAQ) reported strong
results for the first quarter of 2011. Net income attributable to NASDAQ OMX
for the first quarter of 2011 was $104 million, or $0.57 per diluted share,
compared with $137 million, or $0.69 per diluted share, in the fourth quarter
of 2010, and $61 million, or $0.28 per diluted share, in the first quarter of
2010.
Included in the first quarter of 2011 results are $9 million of expenses
associated with merger and strategic initiatives, a sublease loss reserve, and
other items.
Financial Highlights:
-- Net exchange revenues were $415 million, a 15% increase over Q110 results.
-- Non-GAAP operating income improved to $190 million, up 19% from the prior
year quarter, while operating margins increased to 46%.
-- Non-GAAP Net Income was $110 million, an increase of 20% over Q110 results.
-- Non-GAAP diluted EPS increased to $0.61, up from $0.43 in the prior year
quarter.
-- GAAP diluted EPS increased to $0.57, up $0.29 from $0.28 in the first
quarter of 2010.
Summary of Non-GAAP Results1
--------------------------------------------------------------------------------
-
($ millions, except EPS) Q111 Q410 Q110
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Net Exchange Revenues2 $ 415 $ 400 $ 360
Total Operating Expenses 225 216 201
Operating Income 190 184 159
Net Income 110 110 92
Diluted Earnings Per Share $0.61 $0.55 $0.43
1. A complete reconciliation of GAAP to non-GAAP results is included in the
attached tables.
2. Represents revenues less transaction rebates, brokerage, clearance and
exchange fees.
Bob Greifeld, Chief Executive Officer and President, NASDAQ OMX said:
'We're firing on all cylinders as each of our business segments continue to
show solid growth. This produced record earnings per share of $0.61, or a 42%
increase over the prior year, despite challenging macroeconomic headwinds. The
discipline we have shown in managing our business is allowing us to pursue
game-changing opportunities in our industry. As this plays out, we will be
methodical in our approach to managing the business to continue to deliver for
our shareholders.'
Business Highlights
U.S. Transaction Services
-- Following on its success in 2010, NASDAQ OMX was again number one in U.S.
equity options market share during the first quarter of 2011, as The NASDAQ
Options Market ('NOM') realized record market share during the period.
Additionally, net U.S. derivative trading and clearing revenues for the
first quarter of 2011 grew to $48 million, representingan increase of 45%
when compared to the prior year quarter.
-- Expanded value-added services by broadening electronic execution
capabilities through the launch of a new complex order system at NASDAQ OMX
PHLX ('PHLX').
-- Witnessed continued success at NASDAQ OMX PSX ('PSX'), the first U.S. cash
equity trading platform with a price-size priority model, which was
launched in the fourth quarter of 2010. Share volume matched on PSX grew
80% during the first quarter of 2011 when compared to the fourth quarter of
last year.
European Transaction Services
-- Witnessed significant growth in volumes when compared to the first quarter
of 2010. The average daily number of cash equity trades grew 22% from the
prior year quarter, while average daily volumes for equity options and
futures grew 16%, and fixed-income contracts traded or cleared grew 35%.
-- Volumes for cleared resale and repurchase agreement ('repo') transactions
increased 117% during the first quarter of 2011 when compared to the fourth
quarter of 2010. In September 2010, NASDAQ OMX expanded its Nordic
clearinghouse by offering members the opportunity to clear repo
transactions.
Issuer Services
-- Announced a plan with the Singapore Exchange ('SGX') to offer a
comprehensive suite of tools and solutions designed to enhance corporate
activities for listed companies in Asia. The SGX-NASDAQ OMX suite of
tailored tools and solutions provides companies with market intelligence,
communications tools and governance solutions.
-- Announced a unique partnership with the National Association of Corporate
Directors ('NACD') to provide corporate directors and board executives with
NACD's leading suite of director education and board development programs.
The cornerstone of the partnership will focus on encouraging NASDAQ
OMX-listed company boards and directors to engage with NACD to reduce risk
and enhance investor confidence.
-- The Global Index Group continued its geographic and asset class expansion
in the first quarter of 2011 with five new launches of exchange traded
funds ('ETFs') linked to NASDAQ OMX indexes, including India's first US
equities-based ETF on the NASDAQ-100 Index.
Market Technology
-- Osaka Securities Exchange Co., Ltd. ('OSE'), the largest derivatives
exchange in Japan, successfully launched its new derivatives trading
system, which is powered by NASDAQ OMX technology. The launch of the system
delivers improved processing capabilities, such as reduced processing
latency, and enables the introduction of market rules and functions
employed by major overseas exchanges, which will further enhance the
competitiveness of OSE's market.
Operating Highlights
U.S. Cash Equities
-- Total matched market share of U.S. cash equities was 19.2% in the first
quarter of 2011, with NASDAQ matching 16.5%, NASDAQ OMX BX ('BX') matching
1.8% and PSX matching 0.9%. Total matched market share was 19.6% in the
fourth quarter of 2010 (NASDAQ: 16.8%; BX: 2.3%; PSX 0.5%) and 23.9% in the
first quarter of 2010 (NASDAQ: 20.0%; BX: 3.9%). Total matched share volume
was 94.8 billion shares in the first quarter of 2011, compared with 93.1
billion shares in the fourth quarter of 2010 and 126.2 billion shares in
the first quarter of 2010.
European Cash Equities
-- Total average daily volume was 339 thousand trades in the first quarter of
2011, compared with 275 thousand in the fourth quarter of 2010 and 278
thousand in the first quarter of 2010. Total average daily value traded was
$4.1 billion in the first quarter of 2011, compared with $3.2 billion in
the fourth quarter of 2010 and $3.6 billion in the first quarter of 2010.
U.S. Options
-- Total market share of U.S. equity options was 28.7% in the first quarter of
2011, with PHLX matching 23.5% and NOM matching 5.2%. Total market share of
U.S. equity options was 31.4% in the fourth quarter of 2010 (PHLX: 26.5%;
NOM: 4.9%) and 23.8% in the first quarter of 2010 (PHLX: 21.3%; NOM: 2.5%).
Total industry average daily volume was 17.3 million contracts in the first
quarter of 2011, compared with 15.1 million contracts in the fourth quarter
of 2010 and 14.0 million contracts in the first quarter of 2010.
European Derivatives
-- In the first quarter of 2011, the average daily volume of options, futures
and fixed-income contracts was 456 thousand (Q410: 436 thousand; Q110: 421
thousand). Within NASDAQ OMX Commodities, cleared power contracts during
the first quarter of 2011 totaled 446 terawatt hours ('TWh') (Q410: 529
TWh; Q110: 687 TWh).
Global Listings
-- New listings totaled 38 in the first quarter of 2011 compared with 63 in
the fourth quarter of 2010 and 47 in the first quarter of 2010. New
listings for the first quarter of 2011 included 23 initial public
offerings, compared with 37 in the fourth quarter of 2010 and 18 in the
first quarter of 2010.
Market Technology
-- Total order intake, which represents the value of orders signed, was $6
million during the first quarter of 2011, compared with $71 million in the
fourth quarter of 2010 and $50 million in the first quarter of 2010. At the
end of the first quarter of 2011, total order value, which represents the
total contract value of orders signed that are yet to be recognized as
revenue, was $471 million, compared with $495 million at the end of the
fourth quarter of 2010 and $496 million at the end of the first quarter of
2010.
Joint Proposal to Acquire NYSE Euronext
NASDAQ OMX and IntercontinentalExchange, Inc. ('ICE') remain committed to
pursuing their joint proposal to acquire NYSE Euronext given the benefits to
the stockholders of all three companies. The NASDAQ OMX/ICE proposal provides
NYSE Euronext stockholders with a strategically attractive alternative to the
Deutsche Boerse proposal, with exposure to two focused players in equities and
derivative exchanges. The joint proposal, which represents a 20% premium to the
existing Deutsche Boerse proposal, also offers stronger potential upside given
the superior growth prospects and the realizable combined synergies of $740
million annually from companies with proven track records of achieving
synergies and successfully integrating technology in previous acquisitions.
Under the terms of the NASDAQ/ICE proposal, NYSE Euronext stockholders would
receive $14.24 in cash, plus 0.4069 shares of NASDAQ OMX common stock and
0.1436 shares of ICE common stock for each NYSE Euronext share. As part of the
proposal, ICE would purchase NYSE Euronext's futures businesses, and NASDAQ OMX
would retain NYSE Euronext's remaining businesses, including the NYSE Euronext
stock exchanges in New York, Paris, Brussels, Amsterdam and Lisbon, as well as
the U.S. equity options business.
Ron Hassen, Interim Chief Financial Officer, said:
'A combination of exceptional operational performance and effective capital
management decisions resulted in NASDAQ OMX growing earnings per share by 42%
over prior year results. The highlight of the quarter was the strength of our
revenues, which were at their highest levels ever. When coupled with the
successful integrations of our recent acquisitions, NASDAQ OMX is poised to
realize continued growth.'
Expense Guidance
Total run rate operating expenses for the full year of 2011 are expected to be
in the range of $895 million to $915 million, excluding approximately $50
million in merger related and other infrequent charges.
Financial Review
Revenues
Revenues less transaction rebates, brokerage, clearance and exchange fees ('net
exchange revenues') were $415 million for the first quarter of 2011, an
increase of $15 million, or 4%, from the fourth quarter of 2010 and an increase
of $55 million, or 15%, from the first quarter of 2010. Changes in the exchange
rates of various currencies as compared to the U.S. dollar had the impact of
increasing revenues in the first quarter of 2011 by $5 million when compared to
the fourth quarter of 2010, and by $10 million when compared to the first
quarter of 2010.
Market Services
Market Services net exchange revenues were $281 million for the first quarter
of 2011, up 6% when compared to the fourth quarter of 2010 results and up 17%
when compared to the first quarter of 2010.
Transaction Services
Net exchange revenues from Transaction Services were $195 million for the first
quarter of 2011, an increase of $13 million, or 7%, when compared to the fourth
quarter of 2010, and an increase of $40 million, or 26%, when compared to the
first quarter of 2010.
-- Total net cash equity trading revenues were $62 million for the first
quarter of 2011, up $2 million, or 3%, from the fourth quarter of 2010, and
up $7 million, or 13%, from the prior year quarter.
-- Net U.S. cash equity trading revenues increased $2 million when compared to
the fourth quarter of 2010 due to higher industry trading volumes, which
were up 4% from fourth quarter of 2010 levels, offset somewhat by lower
market share. Net revenues increased $7 million when compared to the prior
year quarter due primarily to modified rates, offset somewhat by lower
trading volumes.
-- Included in U.S. cash equity trading revenues in the first quarter of 2011
are $66 million in SEC Section 31 fees, compared with $57 million in the
fourth quarter of 2010 and $55 million in the first quarter of 2010.
Corresponding cost of revenues, reflecting the reimbursement of these fees
to the SEC, is included in brokerage, clearance and exchange fees.
-- European cash equity trading revenues were equal to results from the fourth
quarter of 2010 and the first quarter of 2010, as increases in trading
activity were offset by lower average fees.
-- Total net derivative trading and clearing revenues were $80 million for the
first quarter of 2011, up $6 million, or 8%, from the fourth quarter of
2010 and up $19 million, or 31%, from the prior year quarter.
-- Net U.S. derivative trading and clearing revenues increased $6 million when
compared to the fourth quarter of 2010 and $15 million when compared to
first quarter of 2010 revenues. The increase when compared to the fourth
quarter of 2010 is primarily due to higher volumes and an improvement in
the average fee realized. The increase when compared to the first quarter
of 2010 is driven by higher market share and higher industry volumes.
-- European derivative trading and clearing revenues were equal to results
from the fourth quarter of 2010, but increased $4 million when compared to
the first quarter of 2010. When compared to the fourth quarter of 2010, the
favorable impact from increases in derivative trading activity and changes
in the exchange rates of various currencies as compared to the U.S. dollar
were offset by the negative impact from lower clearing volume for energy
derivative products. The increase when compared to the first quarter of
2010 is due to higher trading and clearing volumes for options, futures and
fixed-income products. Also contributing to the increase are changes in the
exchange rates of various currencies as compared to the U.S. dollar.
-- Access Services revenues were $53 million for the first quarter of 2011, an
increase of $5 million, or 10%, when compared to the fourth quarter of 2010
and an increase of $14 million, or 36%, when compared to the prior year
quarter. The increase in revenues when compared to the fourth quarter of
2010 is primarily due to the acquisition of FTEN, which was completed in
December 2010. The increase when compared to the first quarter of 2010 is
due to continued demand for our services and to the acquisition of FTEN.
Market Data
Market Data revenues were $81 million for the first quarter of 2011, up $2
million, or 3%, when compared to the fourth quarter of 2010, and up $1 million,
or 1%, when compared to the first quarter of 2010.
-- Net U.S. tape plans revenues were $27 million in the first quarter of 2011,
down $1 million when compared to revenues in the fourth quarter of 2010,
and down $4 million, or 13%, when compared to the prior year quarter. The
reduction in revenues when compared to both periods is due to lower plan
shareable revenue and to declines in trading and quoting market share of
U.S equities, as calculated under the SEC-mandated market data revenue
quoting and trading formula.
-- U.S. market data products revenues were $32 million in the first quarter of
2011, equal to revenues reported in the fourth quarter of 2010, but up $1
million, or 3%, when compared to the prior year quarter. The increase in
revenues when compared to the first quarter of 2010 is driven by the growth
of new products such as BX TotalView, options data feeds, and global access
products, partially offset by discontinued products.
-- European market data products revenues were $22 million in the first
quarter of 2011, an increase of $3 million, or 16%, when compared to the
fourth quarter of 2010, and an increase of $4 million, or 22%, when
compared to the prior year quarter. The increase when compared to both
periods is primarily due to modified fees for market data products, higher
audit revenues, and to changes in the exchange rates of various currencies
as compared to the U.S. dollar.
Issuer Services
Issuer Services revenues were $91 million for the first quarter of 2011, an
increase of $2 million, or 2%, when compared to the fourth quarter of 2010, and
an increase of $7 million, or 8%, when compared to the first quarter of 2010.
Global Listing Services
Global Listing Services revenues were $78 million for the first quarter of
2011, up $1 million, or 1%, when compared to the fourth quarter of 2010, and up
$6 million, or 8% when compared to the first quarter of 2010. The increase when
compared to the fourth quarter of 2010 is due to higher European listing fees.
When compared to the prior year period, revenue growth is primarily due to
increases in Corporate Solutions revenues, resulting from higher demand for
services from listed companies.
Global Index Group
Global Index Group revenues were $13 million for the first quarter of 2011, up
$1 million, or 8%, when compared to revenues in the fourth quarter of 2010 and
the first quarter of 2010. Higher revenues when compared to both periods are
primarily due to increases in asset sizes of licensed ETFs as well as
additional demand for new licensed ETFs and other financial products, partially
offset by a decrease in volume for licensed derivative products in the first
quarter of 2011.
Market Technology
Market Technology revenues were $43 million for the first quarter of 2011, down
$3 million, or 7%, from the fourth quarter of 2010, but up $9 million, or 26%,
when compared to the first quarter of 2010. The decline when compared to the
fourth quarter of 2010 is due to seasonally higher billable activity in the
prior period. The increase when compared to the first quarter of 2010 is
primarily due to the inclusion of revenue associated with SMARTS, which was
acquired during the third quarter of 2010. Also contributing to the increase in
revenues when compared to the first quarter of 2010 are revenues associated
with recently delivered projects and changes in the exchange rates of various
currencies as compared to the U.S. dollar.
Operating Expenses
Total non-GAAP operating expenses increased $9 million, or 4%, to $225 million
in the first quarter of 2011 from $216 million in the fourth quarter of 2010,
and increased $24 million, or 12%, from $201 million in the prior year quarter.
The increase when compared to the fourth quarter of 2010 is primarily driven by
higher expenses resulting from the inclusion of expenses related to FTEN, which
was acquired in the fourth quarter of 2010. Also contributing to the increase
was the impact of changes in the exchange rates of various currencies as
compared tothe U.S. dollar, which had the effect of increasing expenses by $4
million when compared to the fourth quarter of 2010. The increase when compared
to the first quarter of 2010 is primarily due to higher expenses associated
with FTEN, SMARTS (acquired in the third quarter of 2010), and Nord Pool ASA
(acquired in the second quarter of 2010). Also contributing to the increase are
changes in the exchange rates of various currencies as compared to the U.S.
dollar, which had the effect of increasing expenses by $7 million.
Net Interest Expense
Net interest expense was $28 million for the first quarter of 2011, compared
with $24 million for the fourth quarter of 2010 and $23 million for the first
quarter of 2010. The increase in net interest expense when compared to both
periods is due to the issuance of senior bonds in December of 2010 to finance
the repurchase of shares. Included in total net interest expense for the first
quarter of 2011 is $24 million in interest expense and other related fees, $4
million of non-cash expense associated with the accretion of senior and
convertible notes, and $2 million in amortization of financing costs related to
convertible notes and bonds. Interest income for the first quarter of 2011 was
$2 million.
Earnings Per Share
On a non-GAAP basis, first quarter 2011 earnings per diluted share were $0.61
as compared to non-GAAP earnings per diluted share of $0.55 in the fourth
quarter of 2010 and non-GAAP earnings per diluted share of $0.43 in the prior
year quarter. NASDAQ OMX's weighted average shares outstanding used to
calculate diluted earnings per share was 181 million for the first quarter of
2011, 200 million for the fourth quarter of 2010, and 215 million for the first
quarter of 2010.
About NASDAQ OMX
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers
trading, exchange technology and public company services across six continents,
with more than 3,500 listed companies. NASDAQ OMX offers multiple capital
raising solutions to companies around the globe, including its U.S. listings
market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX first North, and the
U.S. 144A sector. The company offers trading across multiple asset classes
including equities, derivatives, debt, commodities, structured products and
exchange-traded funds. NASDAQ OMX technology supports the operations of over 70
exchanges, clearing organizations and central securities depositories in more
than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal
entities but describe the common offering from NASDAQ OMX exchanges in
Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more
information about NASDAQ OMX, visit http://www.nasdaqomx.com. *Please follow
NASDAQ OMX on Facebook (http://www.facebook.com/pages/NASDAQ-OMX/108167527653)
and Twitter (http://www.twitter.com/nasdaqomx).
Non-GAAP Information
In addition to disclosing results determined in accordance with GAAP, NASDAQ
OMX also discloses certain non-GAAP results of operations, including net income
attributable to NASDAQ OMX, diluted earnings per share, operating income and
operating expenses that make certain adjustments or exclude certain charges and
gains that are described in the reconciliation table of GAAP to non-GAAP
information provided at the end of this release. Management believes that this
non-GAAP information provides investors with additional information to assess
NASDAQ OMX's operating performance by making certain adjustments or excluding
costs or gains and assists investors in comparing our operating performance to
prior periods. Management uses this non-GAAP information, along with GAAP
information, in evaluating its historical operating performance.
The non-GAAP information is not prepared in accordance with GAAP and may not be
comparable to non-GAAP information used by other companies. The non-GAAP
information should not be viewed as a substitute for, or superior to, other
data prepared in accordance with GAAP.
Forward-Looking Statements
Information set forth in this communication contains forward-looking statements
that involve a number of risks and uncertainties. NASDAQ OMX and ICE caution
readers that any forward-looking information is not a guarantee of future
performance and that actual results could differ materially from those
contained in the forward-looking information. Such forward-looking statements
include, but are not limited to (i) projections about future financial results,
growth, trading volumes, tax benefits and achievement of synergy targets, (ii)
statements about the implementation dates and benefits of certain strategic
initiatives, (iii) statements about integrations of recent acquisitions, and
(iv) other statements that are not historical facts. Forward-looking statements
involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's
and ICE's control. These factors include, but are not limited to, NASDAQ OMX's
and ICE's ability to implement its strategic initiatives, economic, political
and market conditions and fluctuations, government and industry regulation,
interest rate risk, U.S. and global competition, and other factors detailed in
each of NASDAQ OMX's and ICE's filings with the U.S. Securities Exchange
Commission (the 'SEC'), including (i) NASDAQ OMX's annual reports on Form 10-K
and quarterly reports on Form 10-Q that are available on NASDAQ OMX's website
at http://nasdaqomx.com and (ii) ICE's annual reports on Form 10-K and
quarterly reports on Form 10-Q that are available on ICE's website at
http://theice.com. NASDAQ OMX's and ICE's filings are also available on the SEC
website at www.sec.gov. Risks and uncertainties relating to the proposed
transaction include: NASDAQ OMX, ICE and NYSE Euronext will not enter into any
definitive agreement with respect to the proposed transaction; required
regulatory approvals and financing commitments will not be obtained on
satisfactory terms and in a timely manner, if at all; the proposed transaction
will not be consummated; the anticipated benefits of the proposed transaction
will not be realized; and the integration of NYSE Euronext's operations with
those of NASDAQ OMX or ICE will be materially delayed or will be more costly or
difficult than expected. NASDAQ OMX and ICE undertake no obligation to publicly
update any forward-looking statement, whether as a result of new information,
future events or otherwise.
Important Information About the Proposed Transaction and Where to Find It:
Subject to future developments, additional documents regarding the transaction
may be filed with the SEC. This material is not a substitute for the joint
proxy statement/prospectus or any other documents NASDAQ OMX, ICE and NYSE
Euronext would file with the SEC. Such documents, however, are not currently
available. INVESTORS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT/PROSPECTUS
REGARDING THE PROPOSED TRANSACTION AND ANY OTHER DOCUMENTS NASDAQ OMX, ICE AND
NYSE EURONEXT WOULD FILE WITH THE SEC, IF AND WHEN THEY BECOME AVAILABLE,
BECAUSE SUCH DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Investors will be
able to obtain a free copy of the joint proxy statement/prospectus, if and when
such document becomes available, and other relevant documents filed by NYSE
Euronext, ICE and/or NASDAQ OMX, without charge, at the SEC's website
(http://www.sec.gov). Copies of the final proxy statement/prospectus, if and
when such document becomes available may be obtained, without charge, by
directing a request to NASDAQ OMX at One Liberty Plaza, New York, New York
10006, Attention: Investor Relations, in the case of NASDAQ OMX's filings, or
ICE, at 2100 RiverEdge Parkway, Suite 500, Atlanta, Georgia, 30328, Attention:
Investor Relations; or by emailing a request to ir@theice.com, in the case of
ICE's filings.
This communication shall not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S. Securities Act of
1933, as amended.
Participants in the Solicitation:
NASDAQ OMX, ICE, and their respective directors, executive officers and other
employees may be deemed to be participants in the solicitation of proxies in
respect of the proposed transaction.
You can find information about NASDAQ OMX and NASDAQ OMX's directors and
executive officers in NASDAQ OMX's Annual Report on Form 10-K, filed with the
SEC on February 24, 2011, and in NASDAQ OMX's proxy statement for its 2011
annual meeting of stockholders, filed with the SEC on April 15, 2011.
You can find information about ICE and ICE's directors and executive officers
in ICE's Annual Report on Form 10-K, filed with the SEC on February 9, 2011,
and in ICE's proxy statement for its 2011 annual meeting of stockholders, filed
with the SEC on April 1, 2011.
Additional information about the interests of potential participants will be
included in the joint prospectus/proxy statement, if and when it becomes
available, and the other relevant documents filed with the SEC.
NDAQF
The NASDAQ OMX Group, Inc.
Condensed Consolidated Statements of Income
(in millions, except per share amounts)
(unaudited)
Three Months Ended
-------------------------
March December March
31, 31, 31,
2011 2010 2010
-------------------------
Revenues
Market Services revenues $ 683 $ 648 $ 652
Cost of revenues:
Transaction rebates (309) (299) (327)
Brokerage, clearance and exchange fees (93) (84) (84)
-------------------------
Total cost of revenues (402) (383) (411)
-------------------------
Total Market Services revenues less transaction 281 265 241
rebates, brokerage, clearance and exchange fees
Issuer Services revenues 91 89 84
Market Technology revenues 43 46 34
Other revenues -- -- 1
-------------------------
Total revenues less transaction rebates, brokerage, 415 400 360
clearance and exchange fees
-------------------------
Operating Expenses
Compensation and benefits 112 110 98
Marketing and advertising 5 6 4
Depreciation and amortization 27 27 25
Professional and contract services 21 2119
Computer operations and data communications 17 15 16
Occupancy 23 22 22
Regulatory 9 9 9
Merger and strategic initiatives 5 2 --
General, administrative and other 15 13 55
-------------------------
Total operating expenses 234 225 248
-------------------------
Operating income 181 175 112
Interest income 2 2 2
Interest expense (30) (26) (25)
Dividend and investment Income (1) (3) --
-------------------------
Income before income taxes 152 148 89
Income tax provision 49 13 29
-------------------------
Net income 103 135 60
Net loss attributable to noncontrolling interests 1 2 1
-------------------------
Net income attributable to NASDAQ OMX $ 104 $ 137 $ 61
=========================
Basic and diluted earnings per share:
Basic earnings per share $ 0.59 $ 0.70 $ 0.29
=========================
Diluted earnings per share $ 0.57 $ 0.69 $ 0.28
=========================
Weighted-average common shares outstanding for
earnings per share:
Basic 176 195 211
Diluted 181 200 215
The NASDAQ OMX Group, Inc.
Revenue Detail
(in millions)
(unaudited)
Three Months Ended
------------------------
March Decembe March
31, r 31, 31,
2011 2010 2010
------------------------
MARKET SERVICES
Transaction Services
Cash Equity Trading Revenues:U.S. cash equity trading $ 365 $ 331 $ 403
------------------------
Cost of revenues:
------------------------
Transaction rebates (242) (219) (291)
------------------------
Brokerage, clearance and exchange fees (84) (75) (80)
------------------------
Total U.S. cash equity cost of revenues (326) (294) (371)
------------------------
Net U.S. cash equity trading revenues 39 37 32
------------------------
European cash equity trading 23 23 23
------------------------
Total net cash equity trading revenues 62 60 55
------------------------
------------------------
Derivative Trading and Clearing Revenues:
U.S. derivative trading and clearing 124 131 73
------------------------
Cost of revenues:
------------------------
Transaction rebates (67) (80) (36)
------------------------
Brokerage, clearance and exchange fees (9) (9) (4)
------------------------
Total U.S. derivative trading and clearing cost of (76) (89) (40)
revenues
------------------------
Net U.S. derivative trading and clearing revenues 48 42 33
------------------------
European derivative trading and clearing revenues 32 32 28
------------------------
Total net derivative trading and clearing revenues 80 74 61
------------------------
------------------------
Access Services Revenues 53 48 39
------------------------
------------------------
Total Transaction Services revenues less transaction 195 182 155
rebates, brokerage, clearance and exchange fees
------------------------
Market Data
Net U.S. tape plans 27 28 31
U.S. market data products 32 32 31
------------------------
European market data products 22 19 18
------------------------
------------------------
Total Market Data revenues 81 79 80
------------------------
------------------------
Broker Services 4 4 4
------------------------
Other Market Services 1 -- 2
------------------------
Total Market Services revenues less transaction 281 265 241
rebates, brokerage, clearance and exchange fees
------------------------
------------------------
ISSUER SERVICES
------------------------
Global Listing Services:
------------------------
Annual renewal fees 29 29 28
------------------------
Listing of additional shares fees 10 10 9
------------------------
Initial listing fees 4 4 5
------------------------
Total U.S. listing fees 43 43 42
------------------------
European listing fees 13 12 13
------------------------
------------------------
Corporate Solutions 22 22 17
------------------------
Total Global Listing Services 78 77 72
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------------------------
Global Index Group 13 12 12
------------------------
Total Issuer Services revenues 91 89 84
------------------------
MARKET TECHNOLOGY
------------------------
License, support and facility management revenues 28 28 26
------------------------
-----------------
Delivery project revenues 6 5 4
Change request, advisory and broker surveillance9 13 4
revenues
------------------------
Total Market Technology revenues 43 46 34
------------------------
Other -- -- 1
------------------------
Total revenues less transaction rebates, brokerage, $ 415 $ 400 $ 360
clearance and exchange fees
========================
The NASDAQ OMX Group, Inc.
Condensed Consolidated Balance Sheets
(in millions)
March 31, December 31,
2011 2010
--------------------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 439 $ 315
Restricted cash 60 60
Financial investments, at fair value 283 253
Receivables, net 327 298
Deferred tax assets 8 13
Open clearing contracts:
Derivative positions, at fair value 2,295 4,037
Resale agreements, at contract value 6,655 3,441
Other current assets 108 93
--------------------------
Total current assets 10,175 8,510
Non-current restricted cash 105 105
Property and equipment, net 166 164
Non-current deferred tax assets 358 433
Goodwill 5,339 5,127
Intangible assets, net 1,773 1,719
Other assets 149 149
--------------------------
Total assets $ 18,065 $ 16,207
==========================
Liabilities
Current liabilities:
Accounts payable and accrued expenses $ 151 $ 142
Section 31 fees payable to SEC 70 82
Accrued personnel costs 71 122
Deferred revenue 237 122
Other current liabilities 149 119
Deferred tax liabilities 27 26
Open clearing contracts:
Derivative positions, at fair value 2,295 4,037
Repurchase agreements, at contract value 6,655 3,441
Current portion of debt obligations140 140
--------------------------
Total current liabilities 9,795 8,231
Debt obligations 2,150 2,181
Non-current deferred tax liabilities 716 698
Non-current deferred revenue 172 170
Other liabilities 195 198
--------------------------
Total liabilities 13,028 11,478
Commitments and contingencies
Equity
NASDAQ OMX stockholders' equity:
Common stock 2 2
Additional paid-in capital 3,784 3,780
Common stock in treasury, at cost (786) (796)
Accumulated other comprehensive loss (82) (272)
Retained earnings 2,108 2,004
--------------------------
Total NASDAQ OMX stockholders' equity 5,026 4,718
Noncontrolling interests 11 11
--------------------------
Total equity 5,037 4,729
--------------------------
Total liabilities and equity $ 18,065 $ 16,207
==========================
The NASDAQ OMX Group, Inc.
Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income
and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income and
Operating Expenses
(in millions, except per share amounts)
(unaudited)
Three Months Ended
----------------------------
March December March
31, 31, 31,
2011 2010 2010
----------------------------
GAAP net income attributable to NASDAQ OMX: $ 104 $ 137 $ 61
----------------------------------------------------
Non-GAAP adjustments:
Merger and strategic initiatives 5 2 --
Sublease reserves 2 1 2
Asset retirements 1 2 3
Workforce reductions -- 2 2
Debt repayment -- -- 40
Other 1 2 ------------------------------
Total non-GAAP adjustments 9 9 47
Adjustment to the income tax provision to reflect (3) (3) (16)
non-GAAP adjustments(1)
Non-recurring tax items, net -- (33) --
----------------------------
Total non-GAAP adjustments, net of tax 6 (27) 31
Non-GAAP net income attributable to NASDAQ OMX: $ 110 $ 110 $ 92
============================
GAAP diluted earnings per common share: $ 0.57 $ 0.69 $ 0.28
----------------------------------------------------
Total adj. from non-GAAP net income above 0.04 (0.14) 0.15
----------------------------
Non-GAAP diluted earnings per common share: $ 0.61 $ 0.55 $ 0.43
============================
Three Months Ended
----------------------------
March December March
31, 31, 31,
2011 2010 2010
----------------------------
GAAP operating income: $ 181 $ 175 $ 112
----------------------------------------------------
Non-GAAP adjustments:
Merger and strategic initiatives 5 2 --
Sublease reserves 2 1 2
Asset retirements 1 2 3
Workforce reductions -- 2 2
Debt repayment -- -- 40
Other 1 2 --
----------------------------
Total non-GAAP adjustments 9 9 47
----------------------------
Non-GAAP operating income $ 190 $ 184 $ 159
============================
--------------------------------------------------------------------------------
-
Total revenues less transaction rebates, brokerage, $ 415 $ 400 $ 360
clearance and exchange feesNon-GAAP operating margin (2) 46% 46% 44%
--------------------------------------------------------------------------------
-
(1) We determine the tax effect of each item based on the tax rules in the
respective jurisdiction where the transaction occurred. The foreign currency
revaluation has no associated tax impact.
(2) Non-GAAP operating margin equals non-GAAP operating income divided by total
revenues less transaction rebates, brokerage, clearance and exchange fees.
The NASDAQ OMX Group, Inc.
Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income
and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income and
Operating Expenses
(in millions)
(unaudited)
Three Months Ended
-------------------------------------------
March 31, December 31, March 31,
2011 2010 2010
-------------------------------------------
GAAP operating expenses: $ 234 $ 225 $ 248
-------------------------------------
Non-GAAP adjustments:
Merger and strategic initiatives (5) (2) --
Sublease reserves (2) (1) (2)
Asset retirements (1) (2) (3)
Workforce reductions -- (2) (2)
Debt repayment -- -- (40)
Other (1) (2) --
-------------------------------------------
Total non-GAAP adjustments (9) (9) (47)
-------------------------------------------
Non-GAAP operating expenses $ 225 $ 216 $ 201
===========================================
The NASDAQ OMX Group, Inc.
Unternehmensinformation / Kurzprofil:
Datum: 20.04.2011 - 13:00 Uhr
Sprache: Deutsch
News-ID 391488
Anzahl Zeichen: 65577
Kontakt-Informationen:
Kategorie:
Wirtschaft (allg.)
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"DGAP-News: NASDAQ OMX Reports Record First Quarter 2011 Results"
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The NASDAQ OMX Group, Inc. (Nachricht senden)
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