CHICAGO, April 30, 2015 /PRNewswire/ -- CME Group Inc.
(NASDAQ: CME) today reported revenues of $843 million and operating income of $507 million for the first quarter of 2015.
Net income attributable to CME Group was $330 million. GAAP and adjusted diluted earnings
per share were $0.981.
"We delivered strong revenue growth in the first quarter driven
primarily by interest rate, energy and foreign exchange products,
with double-digit average daily volume growth coming from
Europe and North America and 22 percent growth from
Asia," said CME Group Executive
Chairman and President Terry
Duffy. "Total average daily volume was 15 million
contracts, up 10 percent, which was the second highest quarter in
our history. We recorded solid revenue growth in our core
futures products, swaps clearing and market data. This
clearly demonstrates the value of the unparalleled diversity of our
product set."
"In addition to globalization, we made progress with our swaps
clearing and options business," said CME Group Chief Executive
Officer Phupinder Gill. "Interest rate swaps clearing
revenue grew 57 percent, and we are seeing additional signs that
our 500+ swaps clients are increasing their usage of our core
futures products. Options volume reached a record 2.8 million
contracts per day during the quarter. Also, the combination
of top-line growth and our internal efficiency and productivity
enhancements led to significant operating margin expansion and
earnings growth during the first quarter."
1. A reconciliation of the non-GAAP financial results
mentioned to the respective GAAP figures can be found within the
Reconciliation of GAAP to Non-GAAP Measures chart at the end of the
financial statements.
First-quarter 2015 average daily volume was 15.0 million
contracts, up 10 percent from first-quarter 2014, representing the
second-highest quarterly volume, and included average daily volume
records in energy and options. Clearing and transaction fee
revenues were $708.2 million, up 9
percent compared with first-quarter 2014. Market data revenue
was $98 million, up 10 percent.
First-quarter 2015 total average rate per contract was 75.3 cents, up from 73.1
cents in fourth-quarter 2014, driven primarily by a higher
proportion of total volume coming from commodities products, which
have higher average fees.
As of March 31, 2015, the company
had $1.8 billion of cash and
marketable securities and $2.9
billion of long-term debt. In January, we paid out
$671 million in our variable dividend
of $2 per share. In March, we
paid out $168 million in our regular
quarterly dividend of 50 cents per
share.
CME Group will hold a conference call to discuss
first-quarter 2015 results at 8:30 a.m.
Eastern Time today. A live audio Webcast of the call
will be available on the Investor Relations section of CME Group's
Web site at www.cmegroup.com. An archived recording will be
available for up to two months after the call.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity indexes,
foreign exchange, energy, agricultural commodities, metals, weather
and real estate. CME Group brings buyers and sellers together
through its CME Globex® electronic trading platform, its trading
facilities in New York and
Chicago, and through its
London-based CME Europe
derivatives exchange. CME Group also operates one of the
world's leading central counterparty clearing providers through CME
Clearing and CME Clearing Europe, which offer clearing and
settlement services across asset classes for exchange-traded
contracts and over-the-counter derivatives transactions.
These products and services ensure that businesses everywhere can
substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
Globex and Chicago Mercantile Exchange are trademarks of Chicago
Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the
Board of Trade of the City of
Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile
Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. KCBOT, KCBT and Kansas
City Board of Trade are trademarks of The Board of Trade of
Kansas City, Missouri, Inc.
All other trademarks are the property of their respective owners.
Further information about CME Group (NASDAQ: CME) and its products
can be found at www.cmegroup.com.
Statements in this press release that are not historical
facts are forward-looking statements. These statements are not
guarantees of future performance and involve risks, uncertainties
and assumptions that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or implied in any forward-looking statements. We want to caution
you not to place undue reliance on any forward-looking statements.
We undertake no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise. Among the factors that might affect our performance
are increasing competition by foreign and domestic entities,
including increased competition from new entrants into our markets
and consolidation of existing entities; our ability to keep pace
with rapid technological developments, including our ability to
complete the development, implementation and maintenance of the
enhanced functionality required by our customers while
maintaining reliability and ensuring that such technology is not
vulnerable to security risks; our ability to continue introducing
competitive new products and services on a timely, cost-effective
basis, including through our electronic trading capabilities, and
our ability to maintain the competitiveness of our existing
products and services, including our ability to provide effective
services to the swaps market; our ability to adjust our fixed costs
and expenses if our revenues decline; our ability to maintain
existing customers, develop strategic relationships and attract new
customers; our ability to expand and offer our products outside
the United States; changes in
domestic and non-U.S. regulations, including the impact of any
changes in domestic and foreign laws or government policy with
respect to our industry, such as any changes to regulations and
policies that require increased financial and operational resources
from us or our customers; the costs associated with protecting our
intellectual property rights and our ability to operate our
business without violating the intellectual property rights of
others; decreases in revenue from our market data as a result of
decreased demand; changes in our rate per contract due to shifts in
the mix of the products traded, the trading venue and the mix of
customers (whether the customer receives member or non-member fees
or participates in one of our various incentive programs) and the
impact of our tiered pricing structure; the ability of our
financial safeguards package to adequately protect us from the
credit risks of clearing members; the ability of our compliance and
risk management methods to effectively monitor and manage our
risks, including our ability to prevent errors and misconduct and
protect our infrastructure against security breaches and
misappropriation of our intellectual property assets; changes in
price levels and volatility in the derivatives markets and in
underlying equity, foreign exchange, interest rate and commodities
markets; economic, political and market conditions, including the
volatility of the capital and credit markets and the impact of
economic conditions on the trading activity of our current and
potential customers; our ability to accommodate increases in
contract volume and order transaction traffic and to implement
enhancements without failure or degradation of the performance of
our trading and clearing systems; our ability to execute our growth
strategy and maintain our growth effectively; our ability to manage
the risks and control the costs associated with our strategy for
acquisitions, investments and alliances; our ability to
continue to generate funds and/or manage our indebtedness to allow
us to continue to invest in our business; industry and customer
consolidation; decreases in trading and clearing activity; the
imposition of a transaction tax or user fee on futures and options
on futures transactions and/or repeal of the 60/40 tax treatment of
such transactions; the unfavorable resolution of material legal
proceedings; and the seasonality of the futures business. For
a detailed discussion of these and other factors that might affect
our performance, see our filings with the Securities and Exchange
Commission, including our most recent periodic reports filed on
Form 10-K and Form 10-Q.
CME Group Inc. and
Subsidiaries
Consolidated
Balance Sheets
(in
millions)
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,694.8
|
|
$
|
1,366.1
|
Marketable
securities
|
|
78.8
|
|
74.7
|
Accounts receivable,
net of allowance
|
|
383.4
|
|
341.2
|
Other current assets
(includes $32.0 and $37.0 in restricted cash)
|
|
154.8
|
|
196.5
|
Performance bonds and
guaranty fund contributions
|
|
45,174.2
|
|
40,566.8
|
Total current
assets
|
|
47,486.0
|
|
42,545.3
|
Property, net of
accumulated depreciation and amortization
|
|
503.3
|
|
508.9
|
Intangible
assets—trading products
|
|
17,175.3
|
|
17,175.3
|
Intangible
assets—other, net
|
|
2,612.5
|
|
2,637.4
|
Goodwill
|
|
7,569.0
|
|
7,569.0
|
Other assets
(includes $70.1 and $72.4 in restricted cash)
|
|
1,782.3
|
|
1,805.6
|
Total
Assets
|
|
$
|
77,128.4
|
|
$
|
72,241.5
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
34.0
|
|
$
|
36.9
|
Other current
liabilities
|
|
286.9
|
|
927.5
|
Performance bonds and
guaranty fund contributions
|
|
45,174.2
|
|
40,566.8
|
Total current
liabilities
|
|
45,495.1
|
|
41,531.2
|
Long-term
debt
|
|
2,851.9
|
|
2,107.9
|
Deferred income tax
liabilities, net
|
|
7,299.7
|
|
7,302.7
|
Other
liabilities
|
|
386.2
|
|
376.2
|
Total
Liabilities
|
|
56,032.9
|
|
51,318.0
|
CME Group
shareholders' equity
|
|
21,095.5
|
|
20,923.5
|
Total Liabilities and
Equity
|
|
$
|
77,128.4
|
|
$
|
72,241.5
|
CME Group Inc. and
Subsidiaries
Consolidated
Statements of Income
(dollars in millions,
except per share amounts; shares in thousands)
|
|
|
|
Quarter
Ended March
31,
|
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
Clearing and
transaction fees
|
|
$
|
708.2
|
|
$
|
652.2
|
Market data and
information services
|
|
98.0
|
|
89.4
|
Access and
communication fees
|
|
21.3
|
|
20.4
|
Other
|
|
15.2
|
|
15.4
|
Total
Revenues
|
|
842.7
|
|
777.4
|
Expenses
|
|
|
|
|
Compensation and
benefits
|
|
141.3
|
|
135.5
|
Communications
|
|
7.6
|
|
8.2
|
Technology support
services
|
|
15.6
|
|
13.9
|
Professional fees and
outside services
|
|
29.1
|
|
29.6
|
Amortization of
purchased intangibles
|
|
24.9
|
|
25.2
|
Depreciation and
amortization
|
|
31.8
|
|
34.1
|
Occupancy and
building operations
|
|
22.8
|
|
23.2
|
Licensing and other
fee agreements
|
|
30.6
|
|
29.0
|
Other
|
|
31.7
|
|
24.2
|
Total
Expenses
|
|
335.4
|
|
322.9
|
Operating
Income
|
|
507.3
|
|
454.5
|
Non-Operating
Income (Expense)
|
|
|
|
|
Investment
income
|
|
5.7
|
|
3.2
|
Gains (losses) on
derivative investments
|
|
(1.8)
|
|
—
|
Interest and other
borrowing costs
|
|
(31.6)
|
|
(33.7)
|
Equity in net
earnings (losses) of unconsolidated subsidiaries
|
|
22.5
|
|
22.4
|
Other non-operating
income (expense)
|
|
21.7
|
|
—
|
Total
Non-Operating
|
|
16.5
|
|
(8.1)
|
Income before
Income Taxes
|
|
523.8
|
|
446.4
|
Income tax
provision
|
|
193.4
|
|
179.8
|
Net
Income
|
|
330.4
|
|
266.6
|
Less: net income
(loss) attributable to non-controlling interests
|
|
—
|
|
(0.2)
|
Net Income
Attributable to CME Group
|
|
$
|
330.4
|
|
$
|
266.8
|
Earnings per
Common Share Attributable to CME Group:
|
|
|
|
|
Basic
|
|
$
|
0.98
|
|
$
|
0.80
|
Diluted
|
|
0.98
|
|
0.79
|
Weighted Average
Number of Common Shares:
|
|
|
|
|
Basic
|
|
335,680
|
|
333,905
|
Diluted
|
|
337,416
|
|
335,644
|
CME Group Inc. and
Subsidiaries
Quarterly
Operating Statistics
|
|
|
|
1Q
2014
|
|
2Q
2014
|
|
3Q
2014
|
|
4Q
2014
|
|
1Q
2015
|
Trading
Days
|
|
61
|
|
63
|
|
64
|
|
64
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Average
Daily Volume (ADV)
CME Group ADV (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Product
Line
|
|
1Q
2014
|
|
2Q
2014
|
|
3Q
2014
|
|
4Q
2014
|
|
1Q
2015
|
Interest
rate
|
|
6,725
|
|
6,668
|
|
7,181
|
|
7,445
|
|
7,564
|
Equity
|
|
2,890
|
|
2,465
|
|
2,586
|
|
3,114
|
|
2,772
|
Foreign
exchange
|
|
817
|
|
638
|
|
797
|
|
959
|
|
954
|
Energy
|
|
1,705
|
|
1,457
|
|
1,562
|
|
1,797
|
|
2,142
|
Agricultural
commodity
|
|
1,168
|
|
1,084
|
|
1,058
|
|
1,173
|
|
1,189
|
Metal
|
|
355
|
|
323
|
|
308
|
|
361
|
|
369
|
Total
|
|
13,659
|
|
12,636
|
|
13,493
|
|
14,848
|
|
14,990
|
Venue
|
|
|
|
|
|
|
|
|
|
|
Electronic
|
|
11,703
|
|
10,888
|
|
11,627
|
|
12,982
|
|
13,034
|
Open
outcry
|
|
1,179
|
|
1,100
|
|
1,208
|
|
1,218
|
|
1,291
|
Privately
negotiated
|
|
778
|
|
647
|
|
657
|
|
648
|
|
665
|
Total
|
|
13,659
|
|
12,636
|
|
13,493
|
|
14,848
|
|
14,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rate Per
Contract (RPC)
CME Group
RPC
|
|
|
|
|
|
|
|
|
|
|
|
Product
Line
|
|
1Q
2014
|
|
2Q
2014
|
|
3Q
2014
|
|
4Q
2014
|
|
1Q
2015
|
Interest
rate
|
|
$
|
0.481
|
|
$
|
0.473
|
|
$
|
0.473
|
|
$
|
0.472
|
|
$
|
0.480
|
Equity
|
|
0.712
|
|
0.714
|
|
0.687
|
|
0.697
|
|
0.721
|
Foreign
exchange
|
|
0.804
|
|
0.861
|
|
0.788
|
|
0.760
|
|
0.831
|
Energy
|
|
1.364
|
|
1.298
|
|
1.291
|
|
1.279
|
|
1.250
|
Agricultural
commodity
|
|
1.369
|
|
1.430
|
|
1.362
|
|
1.321
|
|
1.324
|
Metal
|
|
1.707
|
|
1.715
|
|
1.707
|
|
1.664
|
|
1.662
|
Average
RPC
|
|
$
|
0.767
|
|
$
|
0.749
|
|
$
|
0.725
|
|
$
|
0.731
|
|
$
|
0.753
|
CME Group Inc. and
Subsidiaries
|
Reconciliation of
GAAP to Non-GAAP Measures
|
(dollars in millions,
except per share amounts; shares in thousands)
|
|
|
|
|
|
Quarter
Ended March 31,
2015
|
|
|
GAAP Net Income
Attributable to CME Group
|
|
$
|
330.4
|
|
|
|
Foreign exchange
transaction losses1
|
|
10.0
|
|
|
|
Acquisition-related
costs
|
|
0.9
|
|
|
|
Severance
|
|
5.5
|
|
|
|
Loss on derivatives
and debt costs for refinancing
|
|
2.3
|
|
|
|
GFI termination fee -
net of the portion paid to outside advisers
|
|
(22.5)
|
|
|
|
Income tax effect
related to above
|
|
2.9
|
|
|
|
Adjusted Net
Income Attributable to CME Group
|
|
$
|
329.5
|
|
|
|
GAAP Earnings per
Common Share Attributable to CME Group:
|
|
|
Basic
|
|
$
|
0.98
|
Diluted
|
|
0.98
|
|
|
|
Adjusted Earnings
per Common Share Attributable to CME Group:
|
|
|
Basic
|
|
$
|
0.98
|
Diluted
|
|
0.98
|
|
|
|
Weighted Average
Number of Common Shares:
|
|
|
Basic
|
|
335,680
|
Diluted
|
|
337,416
|
|
|
|
|
|
|
|
|
|
1.
|
First-quarter 2015
results included foreign exchange transaction net losses
principally related to cash held in British pounds within foreign
entities whose functional currency is the U.S. dollar.
|
CME-G
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cme-group-inc-reports-strong-first-quarter-2015-financial-results-300074836.html
SOURCE CME Group Inc.