Nasdaq Reports Record Fourth Quarter 2014 Non-GAAP: Operating Income, Net Income and Diluted EPS
(Thomson Reuters ONE) -
* Generated quarterly record fourth quarter 2014 non-GAAP diluted EPS of
$0.75, a 9% increase year-over-year. Fourth quarter 2014 GAAP diluted EPS
was $0.50.
* Fourth quarter 2014 net revenues(1) were $517 million, down 1% year-over-
year. On an organic basis, excluding the impact of foreign exchange rates,
fourth quarter net revenues rose 3%.
* Non-GAAP operating expenses were $296 million in the fourth quarter of
2014, down 5% year-over-year. On an organic basis, excluding the impact of
foreign exchange rates, non-GAAP operating expenses fell 2%.
* Non-GAAP operating margin was 43% in the fourth quarter, up from 40% in the
prior year period.
* The company repurchased $58 million of stock in the fourth quarter of 2014,
bringing total repurchases to $178 million since the repurchase program was
restarted in the second quarter of 2014.
NEW YORK, Jan. 29, 2015 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc.
(Nasdaq:NDAQ) today reported results for the fourth quarter of 2014. Fourth
quarter net revenues were $517 million, down 1% from $520 million in the prior
year period, driven by the impact of foreign exchange rates. On an organic
basis, excluding the impact of foreign exchange rates, fourth quarter net
revenues increased 3% year-over-year.
"Nasdaq's record profitability resulted from its improved strategic positioning,
successfully meeting the evolving demands of our diverse client base, and
maintaining the organization's relentless focus on efficiency," said Bob
Greifeld, CEO, Nasdaq. "Moreover, the strong results in the fourth quarter, and
2014 overall, were driven by both broad-based organic growth and the first full
year of contributions from our recent acquisitions."
Mr. Greifeld continued, "I'm also pleased to say that we realized a sequential
uptick in organic growth in the fourth quarter. More importantly, we see clear
avenues to accelerate organic growth further from strategic investments made in
upgrading and launching several product offerings within recently-acquired fixed
income and corporate solutions businesses. The 2015 environmental backdrop also
shows evidence of continued momentum and should bring us new opportunities to
serve customers."
On a non-GAAP basis, fourth quarter 2014 operating expenses were $296 million,
down 5% as compared to the prior year quarter, due to the impact of changes in
foreign exchange rates and the result of the expense reduction initiatives in
2014. On an organic basis, fourth quarter 2014 non-GAAP operating expenses were
down 2% compared to the prior year period. On a GAAP basis, operating expenses
were $344 million in the fourth quarter of 2014, up 22% compared to $282 million
in the prior year quarter.
Fourth quarter 2014 non-GAAP diluted earnings per share was $0.75, compared to
$0.69 in the prior year quarter. Non-GAAP diluted earnings per share for the
fourth quarter of 2014 excluded $97 million of pre-tax adjustments, including:
$49 million of asset impairment charges related to acquired intangible assets
associated with certain customer relationships and certain technology assets,
$35 million of merger and strategic initiatives costs (including a charge of $23
million related to the reversal of a receivable under a tax sharing agreement
with an unrelated party that is offset on the tax line, and $12 million
primarily associated with our acquisitions of the Thomson Reuters Corporate
businesses), $11 million of sublease loss reserve charges on space we currently
occupy due to excess capacity, and $2 million of debt extinguishment costs
incurred with the refinancing of the company's credit facility.
Please refer to our reconciliation of GAAP to non-GAAP net income, diluted
earnings per share, operating income and operating expenses included in the
attached schedules.
On a GAAP basis, net income attributable to Nasdaq for the fourth quarter of
2014 was $87 million, or $0.50 per diluted share, compared with $141 million, or
$0.81 per diluted share, in the prior year quarter.
"Our continued expense discipline offset foreign exchange headwinds and helped
deliver record earnings for our shareholders," said Lee Shavel, EVP and CFO,
Nasdaq. "We anticipate the ongoing successful integration of acquisitions,
coupled with our broader expense management philosophy, will create margin
expansion opportunities throughout 2015."
Mr. Shavel continued, "Additionally, we continue to balance the use of our
capital to create value for shareholders and clients. We have repurchased $178
million in stock since the second quarter while also enhancing our profitability
profile, growth dynamics and product offering through the agreement to acquire
Dorsey, Wright & Associates. We will continue to utilize our capital with the
goals of maximizing returns for our shareholders and creating value for our
clients."
The company repurchased 1.4 million shares, or $58 million of stock, in the
fourth quarter of 2014 at an average price of $42.07.
On December 31, 2014, the company had cash and cash equivalents of $427 million
and total debt of $2,313 million, resulting in net debt of $1,886 million. This
compares to net debt of $2,236 million at December 31, 2013.
(1) Represents revenues less transaction-based expenses.
BUSINESS HIGHLIGHTS
Market Services (39% of total net revenues) - Net revenues were $205 million in
the fourth quarter of 2014, up $1 million when compared to $204 million in the
fourth quarter of 2013.
Equity Derivatives (10% of total net revenues) - Net equity derivative trading
and clearing revenues were $53 million in the fourth quarter of 2014, down $1
million compared to the fourth quarter of 2013. The decline in equity
derivatives revenue was driven by changes in foreign exchange rates. Excluding
the impact of foreign exchange rates, revenues rose on higher contract volumes
in both U.S. and European markets, partially offset by moderate declines in
average capture.
Cash Equities (11% of total net revenues) - Net cash equity trading revenues
were $59 million in the fourth quarter of 2014, up $9 million compared to the
fourth quarter of 2013. The increase in cash equity trading revenue resulted
primarily from higher U.S. industry trading volume and an increase in overall
market share executed on Nasdaq's exchanges. Revenues from European cash
equities rose modestly, as higher industry value traded, average capture and
market share were partially offset by the impact of changes in foreign exchange
rates.
Fixed Income, Currency and Commodities (6% of total net revenues) - Net FICC
trading revenues were $29 million in the fourth quarter of 2014, down $7 million
from the fourth quarter of 2013, due to declines across most FICC product
volumes, a scheduled reduction in payments from an eSpeed technology customer,
and the impact of changes in foreign exchange rates.
Access and Broker Services (12% of total net revenues) - Access and broker
services revenues totaled $64 million in the fourth quarter of 2014, unchanged
compared to the fourth quarter of 2013, as core revenue increases were offset by
the impact of changes in foreign exchange rates.
Information Services (22% of total net revenues) - Revenues were $113 million in
the fourth quarter of 2014, up $6 million from the fourth quarter of 2013.
Data Products (18% of total net revenues) - Data products revenues were $91
million in the fourth quarter of 2014, up $4 million compared to the fourth
quarter of 2013, due primarily to increased revenues from Nasdaq BASIC.
Index Licensing and Services (4% of total net revenues) - Index licensing and
services revenues were $22 million in the fourth quarter of 2014, up $2 million
from the fourth quarter of 2013. The revenue growth was largely a function of
materially higher assets under management in licensed exchange traded products.
Technology Solutions (27% of total net revenues) - Revenues were $138 million in
the fourth quarter of 2014, down $13 million from the fourth quarter of 2013.
Corporate Solutions (15% of total net revenues) - Corporate solutions revenues
were $78 million in the fourth quarter of 2014, down $5 million from the fourth
quarter of 2013. The corporate solutions revenue decline was due primarily to IR
product pricing actions designed to compensate for subsidies previously provided
to certain customers by a competitor, as well as to maintain and promote broader
customer relationships. Additional declines in IR products and the impact of
changes in foreign exchange rates were partially offset by organic growth in
multimedia and governance solutions.
Market Technology (12% of total net revenues) - Market technology revenues were
$60 million in the fourth quarter of 2014, down $8 million from the fourth
quarter of 2013. Declines were driven primarily by an unfavorable foreign
exchange impact and the recognition of $3 million of previously deferred
revenues at BWise in the fourth quarter of 2013, partially offset by organic
growth, in particular from expansion of SMARTS Broker surveillance and BWise
enterprise risk management solutions. New order intake of $193 million for the
fourth quarter of 2014 and the $704 million backlog at December 31, 2014 each
set new all-time record highs.
Listing Services (12% of total net revenues) - Revenues were $61 million in the
fourth quarter of 2014, up $3 million compared to the fourth quarter of 2013 due
to increases in the number of both U.S. and European listed companies, and a
higher number of initial public offerings (IPOs), partially offset by the impact
of changes in foreign exchange rates.
INITIATING 2015 NON-GAAP EXPENSE GUIDANCE - The company has initiated 2015 non-
GAAP operating expense guidance of $1,120-$1,150 million, which excludes
amortization of acquired intangibles. Included in this non-GAAP operating
expense guidance is an expected $30-$40 million in R&D spending.
CORPORATE HIGHLIGHTS
* Salil Donde appointed as EVP to Lead Information Services. Mr. Donde will
join Nasdaq with extensive experience leading technology and data companies,
a diverse background in the broader financial services industry, and a
proven track record of transforming companies and creating value for
shareholders. Most recently, Mr. Donde was CEO of Lewtan Technologies Inc.,
where, in his three-year tenure, he developed and executed a new strategy to
broaden the client base, increase revenues, and consolidate product
platforms.
* NASDAQ Led U.S. Exchanges for IPOs in 2014. Nasdaq announced it welcomed
327 new listings to The NASDAQ Stock Market (NASDAQ) in 2014, including 189
IPOs, more than any other U.S. exchange, representing a 50 percent increase
from the 126 IPOs that occurred on NASDAQ in 2013. 62 percent of the top
100 best performing IPOs overall this year, including 8 of the top 10,
listed on NASDAQ and combined proceeds raised by NASDAQ-listed IPOs in 2014
totaled more than $22 billion.
* Market Technology Sees Record New Order Intake in the Fourth Quarter of
2014. Order Intake was a record high at $193 million in the fourth quarter
of 2014, and the backlog stood at a record $704 million on December
31, 2014. Notable new business included The Japan Exchange Group, which will
upgrade to Genium INET Trading, including TradeGuard; Singapore Exchange,
which will upgrade its derivatives market to Genium INET Trading & Clearing,
including TradeGuard, and KSEI, an Indonesian CSD, which will implement the
X-stream CSD. In addition, the BWise enterprise risk management solution saw
record new order intake, and sales of SMARTS Broker set a new quarterly
record.
* Agreement to Acquire Dorsey, Wright & Associates (DWA), Strengthening its
Position as a Leader in Smart Beta. DWA is a market leader in data
analytics, passive indexing and smart beta strategies, and will add to
Nasdaq's robust index portfolio, bringing model-based strategies and
analysis to support the financial advisor community, and further
strengthening Nasdaq's position as a leading smart beta index provider. As a
result, Nasdaq Global Indexes will become one of the largest providers of
smart beta indexes with nearly $45 billion in assets benchmarked to its
family of Smart Beta indexes and more than $105 billion benchmarked to all
Nasdaq Indexes, as of December 31, 2014.
ABOUT NASDAQ
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange
technology, regulatory, securities listing, information and public company
services across six continents. Through its diverse portfolio of solutions,
Nasdaq enables customers to plan, optimize and execute their business vision
with confidence, using proven technologies that provide transparency and insight
for navigating today's global capital markets. As the creator of the world's
first electronic stock market, its technology powers more than 70 marketplaces
in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is
home to more than 3,500 listed companies with a market value of over $9.1
trillion and more than 10,000 corporate clients. To learn more, visit
www.nasdaq.com/ambition or www.nasdaqomx.com.
NON-GAAP INFORMATION
In addition to disclosing results determined in accordance with GAAP, Nasdaq
also discloses certain non-GAAP results of operations, including, but not
limited to, net income attributable to Nasdaq, 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'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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Information set forth in this communication contains forward-looking statements
that involve a number of risks and uncertainties. Nasdaq cautions 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 our future financial results, growth, trading
volumes, products and services, taxes and achievement of synergy targets, (ii)
statements about the closing or implementation dates and benefits of certain
strategic, technology, de-leveraging and capital return initiatives, (iii)
statements about our integrations of our recent acquisitions, (iv) statements
relating to any litigation or regulatory or government investigation or action
to which we are or could become a party, and (v) other statements that are not
historical facts. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond Nasdaq's control. These factors include,
but are not limited to, Nasdaq'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 Nasdaq's filings with the U.S. Securities and Exchange
Commission, including its annual reports on Form 10-K and quarterly reports on
Form 10-Q which are available on Nasdaq's investor relations website at
http://ir.nasdaq.com and the SEC's website at www.sec.gov. Nasdaq undertakes no
obligation to publicly update any forward-looking statement, whether as a result
of new information, future events or otherwise.
NDAQF
The NASDAQ OMX Group, Inc.
Condensed Consolidated Statements of Income
(in millions, except per share amounts)
Three Months Ended Year Ended
--------------------------------------------------------------
December 31, September December 31, December 31, December
30, 31,
2014 2014 2013 2014 2013
--------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Market Services $ 607 $ 515 $ 533 $ 2,247 $ 2,092
Transaction-
based expenses:
Transaction
rebates (294) (236) (254) (1,065) (1,002)
Brokerage,
clearance and
exchange fees (108) (85) (75) (368) (314)
--------------------------------------------------------------
Total Market
Services
revenues less
transaction-
based expenses 205 194 204 814 776
Listing Services 61 59 58 238 228
Information
Services 113 114 107 473 436
Technology
Solutions 138 130 151 542 455
--------------------------------------------------------------
Revenues less
transaction-
based expenses 517 497 520 2,067 1,895
--------------------------------------------------------------
Operating
Expenses:
Compensation and
benefits 149 136 146 588 539
Marketing and
advertising 8 5 8 32 30
Depreciation and
amortization 33 34 34 137 122
Professional and
contract
services 40 37 45 157 151
Computer
operations and
data
communications 24 22 25 92 82
Occupancy 34 26 27 110 98
Regulatory 6 7 7 27 30
Merger and
strategic
initiatives 35 5 (11) 81 22
General,
administrative
and other 15 18 19 89 80
Restructuring
charges -- -- -- -- 9
Voluntary
accommodation
program -- -- (18) -- 44
--------------------------------------------------------------
Total operating
expenses 344 290 282 1,313 1,207
--------------------------------------------------------------
Operating income 173 207 238 754 688
Interest income 2 1 2 6 9
Interest expense (28) (29) (30) (117) (111)
Gain on sale of
investment
security -- -- 30 -- 30
Asset impairment
charges (49) -- (5) (49) (14)
Loss from
unconsolidated
investees, net -- -- -- -- (2)
--------------------------------------------------------------
Income before
income taxes 98 179 235 594 600
Income tax
provision 11 56 94 181 216
--------------------------------------------------------------
Net income 87 123 141 413 384
Net loss
attributable to
noncontrolling
interests -- -- -- 1 1
--------------------------------------------------------------
Net income
attributable to
Nasdaq $ 87 $ 123 $ 141 $ 414 $ 385
--------------------------------------------------------------
Per share
information:
Basic earnings
per share $ 0.52 $ 0.73 $ 0.84 $ 2.45 $ 2.30
--------------------------------------------------------------
Diluted earnings
per share $ 0.50 $ 0.71 $ 0.81 $ 2.39 $ 2.25
--------------------------------------------------------------
Cash dividends
declared per
common share $ 0.15 $ 0.15 $ 0.13 $ 0.58 $ 0.52
--------------------------------------------------------------
Weighted-average
common shares
outstanding for
earnings per
share:
Basic 168.2 168.6 168.3 168.9 166.9
Diluted 172.5 173.2 173.1 173.0 171.3
The NASDAQ OMX Group, Inc.
Revenue Detail
(in millions)
Three Months Ended Year Ended
----------------------------------------------------------------
December 31, September 30, December 31, December 31, December
31,
2014 2014 2013 2014 2013
----------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
MARKET
SERVICES
Equity
Derivative
Trading and
Clearing
Revenues $ 135 $ 125 $ 132 $ 525 $ 514
Transaction-
based
expenses:
Transaction
rebates (73) (68) (71) (285) (259)
Brokerage,
clearance and
exchange fees (9) (7) (7) (32) (33)
----------------------------------------------------------------
Total net
equity
derivative
trading and
clearing
revenues 53 50 54 208 222
Cash Equity
Trading
Revenues 378 296 300 1,335 1,212
Transaction-
based
expenses:
Transaction
rebates (221) (168) (183) (780) (743)
Brokerage,
clearance and
exchange fees (98) (77) (67) (332) (279)
----------------------------------------------------------------
Total net cash
equity trading
revenues 59 51 50 223 190
Fixed Income,
Currency and
Commodities 30 31 37 130 111
Trading and
Clearing
Revenues
Transaction-
based
expenses:
Brokerage,
clearance and
exchange fees (1) (1) (1) (4) (2)
----------------------------------------------------------------
Total net
fixed income,
currency and
commodities
trading and
clearing
revenues 29 30 36 126 109
----------------------------------------------------------------
Access and
Broker
Services
Revenues 64 63 64 257 255
----------------------------------------------------------------
Total Net
Market
Services
revenues 205 194 204 814 776
----------------------------------------------------------------
LISTING
SERVICES
REVENUES 61 59 58 238 228
----------------------------------------------------------------
INFORMATION
SERVICES
Data Products
revenues 91 92 87 384 362
Index
Licensing and
Services
revenues 22 22 20 89 74
----------------------------------------------------------------
Total
Information
Services
revenues 113 114 107 473 436
----------------------------------------------------------------
TECHNOLOGY
SOLUTIONS
Corporate
Solutions
revenues 78 75 83 314 230
Market
Technology
revenues 60 55 68 228 225
----------------------------------------------------------------
Total
Technology
Solutions
revenues 138 130 151 542 455
----------------------------------------------------------------
Total revenues
less
transaction-
based expense $ 517 $ 497 $ 520 $ 2,067 $ 1,895
----------------------------------------------------------------
The NASDAQ OMX Group, Inc.
Revenue Detail
(in millions)
Three Months Ended Year Ended
------------------------------------------------------------------------------
March 2014 June 2014 September December December December December
2014 2014 31, 31, 31,
Actual Actual Actual Actual 2014 2013 2012
------------------------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
MARKET
SERVICES
Equity
Derivative
Trading and
Clearing
Revenues $ 138 $ 129 $ 125 $ 135 $ 525 $ 514 $ 507
Transaction-
based
expenses:
Transaction
rebates (75) (71) (68) (73) (285) (259) (250)
Brokerage,
clearance
and exchange
fees (7) (8) (7) (9) (32) (33) (34)
------------------------------------------------------------------------------
Total net
equity
derivative
trading and
clearing
revenues 56 50 50 53 208 222 223
Cash Equity
Trading
Revenues 343 318 296 378 1,335 1,212 1,369
Transaction-
based
expenses:
Transaction
rebates (210) (181) (168) (221) (780) (743) (854)
Brokerage,
clearance
and exchange
fees (76) (81) (77) (98) (332) (279) (308)
------------------------------------------------------------------------------
Total net
cash equity
trading
revenues 57 56 51 59 223 190 207
Fixed
Income,
Currency and
Commodities
Trading and
Clearing
Revenues 36 32 31 30 130 111 73
Transaction-
based
expenses:
Brokerage,
clearance
and exchange
fees (1) (1) (1) (1) (4) (2) --
------------------------------------------------------------------------------
Total net
fixed
income,
currency and
commodities
trading and
clearing
revenues 35 31 30 29 126 109 73
------------------------------------------------------------------------------
Access and
Broker
Services
Revenues 65 65 63 64 257 255 257
------------------------------------------------------------------------------
Total Net
Market
Services
revenues 213 202 194 205 814 776 760
------------------------------------------------------------------------------
LISTING
SERVICES
REVENUES 58 60 59 61 238 228 224
------------------------------------------------------------------------------
INFORMATION
SERVICES
Data
Products
revenues 100 101 92 91 384 362 337
Index
Licensing
and Services
revenues 23 22 22 22 89 74 63
------------------------------------------------------------------------------
Total
Information
Services
revenues 123 123 114 113 473 436 400
------------------------------------------------------------------------------
TECHNOLOGY
SOLUTIONS
Corporate
Solutions
revenues 82 80 75 78 314 230 89
Market
Technology
revenues 53 58 55 60 228 225 201
------------------------------------------------------------------------------
Total
Technology
Solutions
revenues 135 138 130 138 542 455 290
------------------------------------------------------------------------------
Total
revenues
less
transaction-
based
expenses $ 529 $ 523 $ 497 $ 517 $ 2,067 $ 1,895 $ 1,674
------------------------------------------------------------------------------
The NASDAQ OMX Group, Inc.
Condensed Consolidated Balance Sheets
(in millions)
December 31, December 31,
2014 2013
------------------------------
Assets (unaudited)
Current assets:
Cash and cash equivalents $ 427 $ 398
Restricted cash 49 84
Financial investments, at fair value 174 189
Receivables, net 389 393
Deferred tax assets 16 12
Default funds and margin deposits 2,194 1,961
Other current assets 151 126
------------------------------
Total current assets 3,400 3,163
Property and equipment, net 292 268
Non-current deferred tax assets 536 404
Goodwill 5,538 6,186
Intangible assets, net 2,077 2,386
Other non-current assets 244 170
------------------------------
Total assets $ 12,087 $ 12,577
------------------------------
Liabilities
Current liabilities:
Accounts payable and accrued expenses $ 189 $ 228
Section 31 fees payable to SEC 124 82
Accrued personnel costs 143 154
Deferred revenue 177 151
Other current liabilities 116 141
Deferred tax liabilities 37 38
Default funds and margin deposits 2,194 1,961
Current portion of debt obligations -- 45
------------------------------
Total current liabilities 2,980 2,800
Debt obligations 2,313 2,589
Non-current deferred tax liabilities 626 708
Non-current deferred revenue 215 143
Other non-current liabilities 159 153
------------------------------
Total liabilities 6,293 6,393
------------------------------
Commitments and contingencies
Equity
Nasdaq stockholders' equity:
Common stock 2 2
Additional paid-in capital 3,222 4,278
Common stock in treasury, at cost (41) (1,005)
Accumulated other comprehensive loss (682) (67)
Retained earnings 3,292 2,976
------------------------------
Total Nasdaq stockholders' equity 5,793 6,184
Noncontrolling interests 1 --
------------------------------
Total equity 5,794 6,184
------------------------------
Total liabilities and equity $ 12,087 $ 12,577
------------------------------
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 Year Ended
-------------------------------------------------------------
December September December December December
31, 30, 31, 31, 31,
2014 2014 2013 2014 2013
-------------------------------------------------------------
GAAP net income
attributable to
Nasdaq $ 87 $ 123 $ 141 $ 414 $ 385
Non-GAAP
adjustments:
Asset impairment
charges ((1)) 49 -- 5 49 14
Merger and
strategic
initiatives ((2)) 35 5 (11) 81 22
Sublease loss
reserves 11 -- -- 11 --
Extinguishment of
debt 2 -- -- 11 --
Gain on sale of
investment
security -- -- (30) -- (30)
Voluntary
accommodation
program -- -- (18) -- 44
Securities and
Exchange
Commission matter -- -- -- -- 10
Restructuring
charges -- -- -- -- 9
Special legal
expenses -- -- 1 2 3
Other -- 1 (3) 2 (3)
-------------------------------------------------------------
Total non-GAAP
adjustments 97 6 (56) 156 69
Adjustment to the
income tax
provision to
reflect non-GAAP
adjustments ((3)) (55) (2) 33 (72) (13)
Significant tax
adjustments, net -- (2) 1 1 4
-------------------------------------------------------------
Total non-GAAP
adjustments, net
of tax 42 2 (22) 85 60
Non-GAAP net
income
attributable to
Nasdaq $ 129 $ 125 $ 119 $ 499 $ 445
-------------------------------------------------------------
GAAP diluted
earnings per
share $ 0.50 $ 0.71 $ 0.81 $ 2.39 $ 2.25
Total adjustments
from non-GAAP net
income above 0.25 0.01 (0.12) 0.49 0.35
-------------------------------------------------------------
Non-GAAP diluted
earnings per
share $ 0.75 $ 0.72 $ 0.69 $ 2.88 $ 2.60
-------------------------------------------------------------
Three Months Ended Year Ended
-------------------------------------------------------------
December September December December December
31, 30, 31, 31, 31,
2014 2014 2013 2014 2013
-------------------------------------------------------------
GAAP operating
income $ 173 $ 207 $ 238 $ 754 $ 688
Non-GAAP
adjustments:
Merger and
strategic
initiatives ((2)) 35 5 (11) 81 22
Sublease loss
reserves 11 -- -- 11 --
Extinguishment of
debt 2 -- -- 11 --
Voluntary
accommodation
program -- -- (18) -- 44
Special legal
expenses -- -- 1 2 3
Securities and
Exchange
Commission matter -- -- -- -- 10
Restructuring
charges -- -- -- -- 9
Other -- 1 (3) 2 (3)
-------------------------------------------------------------
Total non-GAAP
adjustments 48 6 (31) 107 85
-------------------------------------------------------------
Non-GAAP
operating income $ 221 $ 213 $ 207 $ 861 $ 773
-------------------------------------------------------------
Revenues less
transaction-based
expenses $ 517 $ 497 $ 520 $ 2,067 $ 1,895
Non-GAAP
operating margin(
(4)) 43% 43% 40% 42% 41%
(1) For the three months and year ended December 31, 2014, asset impairment
charges of $49 million related to certain acquired intangible assets
associated with customer relationships ($38 million) and certain technology
assets ($11 million). For the year ended December 31, 2013, asset impairment
charges of $14 million related to certain acquired intangible assets
associated with customer relationships ($7 million) and a certain trade name
($7 million).
(2) For the three months and year ended December 31, 2014, merger and
strategic initiatives expense primarily related to our acquisitions of the TR
Corporate businesses and eSpeed and a charge of $23 million related to the
reversal of a receivable under a tax sharing agreement with an unrelated
party. The $23 million charge is offset by a tax benefit as described in note
(3) below. For the three months and year ended December 31, 2013, merger and
strategic initiatives expense primarily related to our acquisitions of the TR
Corporate businesses and eSpeed, offset by a credit of $23 million associated
with a receivable under a tax sharing agreement with an unrelated party. The
$23 million credit is offset by a tax expense as described in note (3) below.
Merger and strategic initiatives costs for the year ended December 31, 2013
were partially offset by the remeasurement of a contingent purchase price
liability related to the BWise acquisition due to changes in the anticipated
performance of BWise.
(3) For the three months and year ended December 31, 2014, includes $23
million associated with the recognition of a previously unrecognized tax
benefit. This amount is offset by the reversal of the receivable described in
note (2) above. For the three months and year ended December 31, 2013,
includes $23 million associated with the derecognition of a previously
recognized tax benefit. This amount is offset by the receivable described in
note (2) above.
(4) Non-GAAP operating margin equals non-GAAP operating income divided by
total revenues less transaction-based expenses.
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 Year Ended
-------------------------------------------------------------
December September December December December
31, 30, 31, 31, 31,
2014 2014 2013 2014 2013
-------------------------------------------------------------
GAAP operating
expenses $ 344 $ 290 $ 282 $ 1,313 $ 1,207
Non-GAAP
adjustments:
Merger and
strategic
initiatives ((1)) (35) (5) 11 (81) (22)
Sublease loss
reserves (11) -- -- (11) --
Extinguishment of
debt (2) -- -- (11) --
Voluntary
accommodation
program -- -- 18 -- (44)
Special legal
expenses -- -- (1) (2) (3)
Securities and
Exchange
Commission matter -- -- -- -- (10)
Restructuring
charges -- -- -- -- (9)
Other -- (1) 3 (2) 3
-------------------------------------------------------------
Total non-GAAP
adjustments (48) (6) 31 (107) (85)
-------------------------------------------------------------
Non-GAAP
operating
expenses $ 296 $ 284 $ 313 $ 1,206 $ 1,122
-------------------------------------------------------------
(1) For the three months and year ended December 31, 2014, merger and
strategic initiatives expense primarily related to our acquisitions of the TR
Corporate businesses and eSpeed and a charge of $23 million related to the
reversal of a receivable under a tax sharing agreement with an unrelated
party. For the three months and year ended December 31, 2013, merger and
strategic initiatives expense primarily related to our acquisitions of the TR
Corporate businesses and eSpeed, offset by a credit of $23 million associated
with a receivable under a tax sharing agreement with an unrelated party.
Merger and strategic initiatives costs for the year ended December 31, 2013
were partially offset by the remeasurement of a contingent purchase price
liability related to the BWise acquisition due to changes in the anticipated
performance of Bwise.
The NASDAQ OMX Group, Inc.
Quarterly Key Drivers Detail
(unaudited)
Three Months Ended
--------------------------------------------------
December 31, September 30, December 31,
2014 2014 2013
--------------------------------------------------
Market Services
Equity Derivative Trading
and Clearing
U.S. Equity Options
Total industry average daily
volume (in millions) 16.1 14.7 14.7
Nasdaq PHLX matched market
share 16.2% 16.3% 17.6%
The NASDAQ Options Market
matched market share 9.7% 9.5% 9.1%
Nasdaq BX Options Market
matched market share 0.7% 0.8% 0.8%
--------------------------------------------------
Total matched market share
executed on Nasdaq's
exchanges 26.6% 26.6% 27.5%
Nasdaq Nordic and Nasdaq
Baltic Options and Futures
Total average daily volume
options and futures
contracts((1)) 379,604 325,950 350,012
Cash Equity Trading
Total U.S.-listed Securities
Total average daily share
volume (in billions) 7.00 5.68 6.01
Matched share volume (in
billions) 90.8 71.1 74.1
Matched market share
executed on NASDAQ 17.6% 16.6% 16.1%
Matched market share
executed on Nasdaq BX 2.0% 2.5% 2.6%
Matched market share
executed on Nasdaq PSX 0.7% 0.5% 0.5%
--------------------------------------------------
Total matched market share
executed on Nasdaq's
exchanges 20.3% 19.6% 19.2%
Market share reported to the
FINRA/NASDAQ Trade Reporting
Facility 30.2% 32.3% 33.1%
Total market share((2)) 50.5% 51.9% 52.3%
Nasdaq Nordic and Nasdaq
Baltic Securities
Average daily number of
equity trades 390,302 303,902 309,756
Total average daily value of
shares traded (in billions) $ 4.8 $ 4.0 $ 4.4
Total market share executed
on Nasdaq's exchanges 69.6% 72.2% 68.3%
Fixed Income, Currency and
Commodities Trading and
Clearing
U.S. Fixed Income
Total average daily volume
On the Run U.S. Treasury
contracts (in billions) 223.4 214.2 193.5
Total market share 30.0% 33.6% 34.4%
Nasdaq Nordic and Nasdaq
Baltic Fixed Income
Total average daily volume
fixed income contracts 98,284 76,134 135,507
Nasdaq Commodities
Power contracts cleared
(TWh)((3)) 413 376 436
Listing Services
Initial public offerings
NASDAQ 49 41 35
Exchanges that comprise
Nasdaq Nordic and Nasdaq
Baltic 20 5 8
New listings
NASDAQ((4)) 95 76 80
Exchanges that comprise
Nasdaq Nordic and Nasdaq
Baltic((5)) 23 8 14
Number of listed companies
NASDAQ((6)) 2,782 2,746 2,637
Exchanges that comprise
Nasdaq Nordic and Nasdaq
Baltic((7)) 792 778 758
Technology Solutions
Market Technology
Order intake (in
millions)((8)) $ 193 $ 28 $ 139
Total order value (in
millions)((9)) $ 704 $ 621 $ 660
(1) Includes Finnish option contracts traded on EUREX Group.
(2) Includes transactions executed on NASDAQ's, Nasdaq BX's and Nasdaq PSX's
systems plus trades reported through the FINRA/NASDAQ Trade Reporting
Facility.
(3) Primarily transactions executed on Nord Pool and reported for clearing to
Nasdaq Commodities measured by Terawatt hours (TWh).
(4) New listings include IPOs, including those completed on a best efforts
basis, issuers that switched from other listing venues, closed-end funds and
separately listed exchange traded funds (ETFs).
(5) New listings include IPOs and represent companies listed on the Nasdaq
Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of
Nasdaq First North.
(6) Number of listed companies for NASDAQ at period end, including separately
listed ETFs.
(7) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic
exchanges and companies on the alternative markets of Nasdaq First North at
period end.
(8) Total contract value of orders signed during the period.
(9) Represents total contract value of orders signed that are yet to be
recognized as revenue.
CONTACT: MEDIA RELATIONS CONTACT:
Joseph Christinat
+1.646.441.5121
joseph.christinat(at)nasdaq.com
INVESTOR RELATIONS CONTACT:
Ed Ditmire, CFA
+1.212.401.8737
ed.ditmire(at)nasdaq.com
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: The NASDAQ OMX Group, Inc. via GlobeNewswire
[HUG#1890297]
Unternehmensinformation / Kurzprofil:
Datum: 29.01.2015 - 13:00 Uhr
Sprache: Deutsch
News-ID 367874
Anzahl Zeichen: 59781
contact information:
Town:
New York
Kategorie:
Business News
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"Nasdaq Reports Record Fourth Quarter 2014 Non-GAAP: Operating Income, Net Income and Diluted EPS"
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