CHICAGO, Feb. 5, 2016 /PRNewswire/ -- CME Group Inc.
(NASDAQ: CME) today reported revenue of $814
million and operating income of $470
million for the fourth quarter of 2015. Net income was
$292 million and diluted earnings per
share were $0.86. Adjusted for
non-recurring items, net income would have been $311 million and diluted earnings per share would
have been $0.921.
Total revenue for full-year 2015 was $3.3
billion and operating income was $2.0
billion. Net income was $1.25
billion and diluted earnings per share were $3.69. Adjusted for non-recurring items, 7
percent year-over-year growth in revenue coupled with operating
expenses down 1 percent drove net income of $1.3 billion, up 15 percent compared with 2014,
and diluted earnings per share of $3.861, up 14 percent.
"In 2015, we reached record levels of volume and revenue as we
enabled our increasing number of customers around the world to
manage risk," said CME Group Executive Chairman and President
Terry Duffy. "We saw
year-over-year revenue growth in five of our six product lines,
with particular strength in energy and agricultural products as
well as our overall options business. Continuing this
momentum, we had record monthly volume in January 2016, with more than 18 million contracts
per day traded, up 16 percent. Given the underlying strength
of our business, we announced a 20 percent increase in our next
regular quarterly dividend to 60
cents per share. In each of the prior four years, our
total dividend yield has exceeded five percent."
"We were pleased to deliver an increase of 7 percent in revenue
and 15 percent in adjusted net income during 2015, a year that many
considered a challenging environment for financial services
companies," said CME Group Chief Executive Officer Phupinder Gill. "We were very active
during 2015 in terms of new product innovation and expanding our
global partnerships, including securing the long-term rights to the
FTSE Russell indexes. Looking at new products, one standout
within our interest rate franchise is our recently launched Ultra
10-year treasury product, which has been the most successful start
of a new contract in our long history. During the year, we
increased our operating margin by reducing costs from the prior
year, driving efficiency and improving our agility in serving
customers globally."
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.
Fourth-quarter 2015 average daily volume was 13.2 million
contracts, down 11 percent from fourth-quarter 2014. Clearing
and transaction fee revenue were $679
million, down 5 percent compared with fourth-quarter
2014. Fourth-quarter 2015 total average rate per contract was
78.9 cents, up from 75.9 cents in third-quarter 2015, driven
primarily by an increased proportion of the volume from higher
paying non-members during the quarter, as well as strong energy
volume. Market data revenue was $99
million, up 11 percent compared with the fourth quarter last
year.
Full-year 2015 record average daily volume was 14.0 million
contracts, up 2 percent from 2014, and included annual records for
energy, agricultural commodities, total options and electronic
options. Clearing and transaction fee revenue was
$2.8 billion, up 6 percent compared
with 2014. The end of the year rate per contract in 2015 was
$0.769, up 4 percent from
$0.743 at the end of 2014.
Market data revenue was $399 million,
up 12 percent compared with the prior year.
As of December 31, 2015, the
company had $1.8 billion of cash and
marketable securities and $2.2
billion of long-term debt. The company declared
dividends during 2015 of $1.6
billion, including the annual variable dividend for 2015 of
$977 million, which was paid in
January 2016. The company has returned more than $5.6 billion to shareholders in the form of
dividends since the implementation of the variable dividend policy
in early 2012.
CME Group will hold a conference call to discuss
fourth-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. 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)
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,692.6
|
|
|
$
|
1,366.1
|
|
Marketable
securities
|
|
72.5
|
|
|
74.7
|
|
Accounts receivable,
net of allowance
|
|
357.8
|
|
|
341.2
|
|
Other current assets
(includes $32.0 and $37.0 in restricted cash)
|
|
228.6
|
|
|
196.5
|
|
Performance bonds and
guaranty fund contributions
|
|
35,553.0
|
|
|
40,566.8
|
|
Total current
assets
|
|
37,904.5
|
|
|
42,545.3
|
|
Property, net of
accumulated depreciation and amortization
|
|
491.7
|
|
|
508.9
|
|
Intangible
assets—trading products
|
|
17,175.3
|
|
|
17,175.3
|
|
Intangible
assets—other, net
|
|
2,537.9
|
|
|
2,637.4
|
|
Goodwill
|
|
7,569.0
|
|
|
7,569.0
|
|
Other assets
(includes $70.5 and $72.4 in restricted cash)
|
|
1,693.1
|
|
|
1,805.6
|
|
Total
Assets
|
|
$
|
67,371.5
|
|
|
$
|
72,241.5
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
28.7
|
|
|
$
|
36.9
|
|
Other current
liabilities
|
|
1,242.8
|
|
|
927.5
|
|
Performance bonds and
guaranty fund contributions
|
|
35,553.0
|
|
|
40,566.8
|
|
Total current
liabilities
|
|
36,824.5
|
|
|
41,531.2
|
|
Long-term
debt
|
|
2,241.4
|
|
|
2,107.9
|
|
Deferred income tax
liabilities, net
|
|
7,358.3
|
|
|
7,302.7
|
|
Other
liabilities
|
|
395.5
|
|
|
376.2
|
|
Total
Liabilities
|
|
46,819.7
|
|
|
51,318.0
|
|
Shareholders'
equity
|
|
20,551.8
|
|
|
20,923.5
|
|
Total Liabilities and
Equity
|
|
$
|
67,371.5
|
|
|
$
|
72,241.5
|
|
CME Group Inc. and
Subsidiaries
Consolidated
Statements of Income
(dollars in millions,
except per share amounts; shares in thousands)
|
|
|
|
Quarter Ended
December 31,
|
|
Year
Ended
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
|
Clearing and
transaction fees
|
|
$
|
678.9
|
|
|
$
|
713.0
|
|
|
$
|
2,783.9
|
|
|
$
|
2,616.3
|
|
Market data and
information services
|
|
99.1
|
|
|
89.6
|
|
|
399.4
|
|
|
356.3
|
|
Access and
communication fees
|
|
21.7
|
|
|
21.1
|
|
|
86.1
|
|
|
82.7
|
|
Other
|
|
14.1
|
|
|
17.4
|
|
|
57.4
|
|
|
57.2
|
|
Total
Revenues
|
|
813.8
|
|
|
841.1
|
|
|
3,326.8
|
|
|
3,112.5
|
|
Expenses
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
134.5
|
|
|
144.8
|
|
|
553.7
|
|
|
552.1
|
|
Communications
|
|
6.5
|
|
|
7.7
|
|
|
27.8
|
|
|
32.0
|
|
Technology support
services
|
|
17.4
|
|
|
15.9
|
|
|
64.5
|
|
|
58.2
|
|
Professional fees and
outside services
|
|
32.2
|
|
|
29.7
|
|
|
122.8
|
|
|
129.0
|
|
Amortization of
purchased intangibles
|
|
24.6
|
|
|
24.9
|
|
|
99.4
|
|
|
100.6
|
|
Depreciation and
amortization
|
|
31.7
|
|
|
31.5
|
|
|
129.2
|
|
|
132.6
|
|
Occupancy and
building operations
|
|
23.1
|
|
|
25.7
|
|
|
92.5
|
|
|
96.8
|
|
Licensing and other
fee agreements
|
|
31.3
|
|
|
34.0
|
|
|
123.8
|
|
|
114.2
|
|
Other
|
|
42.6
|
|
|
55.4
|
|
|
124.4
|
|
|
128.6
|
|
Total
Expenses
|
|
343.9
|
|
|
369.6
|
|
|
1,338.1
|
|
|
1,344.1
|
|
Operating
Income
|
|
469.9
|
|
|
471.5
|
|
|
1,988.7
|
|
|
1,768.4
|
|
Non-Operating
Income (Expense)
|
|
|
|
|
|
|
|
|
Investment
income
|
|
3.4
|
|
|
10.1
|
|
|
30.1
|
|
|
35.8
|
|
Gains (losses) on
derivative investments
|
|
—
|
|
|
—
|
|
|
(1.8)
|
|
|
—
|
|
Interest and other
borrowing costs
|
|
(28.9)
|
|
|
(28.7)
|
|
|
(117.4)
|
|
|
(119.4)
|
|
Equity in net
earnings (losses) of unconsolidated subsidiaries
|
|
24.9
|
|
|
20.9
|
|
|
100.0
|
|
|
84.8
|
|
Other non-operating
income (expense)
|
|
(0.8)
|
|
|
—
|
|
|
(42.8)
|
|
|
1.8
|
|
Total
Non-Operating
|
|
(1.4)
|
|
|
2.3
|
|
|
(31.9)
|
|
|
3.0
|
|
Income before
Income Taxes
|
|
468.5
|
|
|
473.8
|
|
|
1,956.8
|
|
|
1,771.4
|
|
Income tax
provision
|
|
176.8
|
|
|
167.3
|
|
|
709.8
|
|
|
644.5
|
|
Net
Income
|
|
291.7
|
|
|
306.5
|
|
|
1,247.0
|
|
|
1,126.9
|
|
Less: net income
(loss) attributable to non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
Net Income
Attributable to CME Group
|
|
$
|
291.7
|
|
|
$
|
306.5
|
|
|
$
|
1,247.0
|
|
|
$
|
1,127.1
|
|
Earnings per
Common Share Attributable to CME Group:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.87
|
|
|
$
|
0.91
|
|
|
$
|
3.71
|
|
|
$
|
3.37
|
|
Diluted
|
|
0.86
|
|
|
0.91
|
|
|
3.69
|
|
|
3.35
|
|
Weighted Average
Number of Common Shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
336,844
|
|
|
335,197
|
|
|
336,224
|
|
|
334,409
|
|
Diluted
|
|
338,253
|
|
|
336,630
|
|
|
337,894
|
|
|
336,063
|
|
CME Group Inc. and
Subsidiaries
Quarterly
Operating Statistics
|
|
|
|
4Q
2014
|
|
|
1Q
2015
|
|
|
2Q
2015
|
|
|
3Q
2015
|
|
4Q
2015
|
Trading
Days
|
|
64
|
|
|
61
|
|
|
64
|
|
|
64
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Average
Daily Volume (ADV)
CME Group ADV (in
thousands)
|
|
Product
Line
|
|
4Q
2014
|
|
|
1Q
2015
|
|
|
2Q
2015
|
|
|
3Q
2015
|
|
|
4Q
2015
|
Interest
rate
|
|
7,445
|
|
|
7,564
|
|
|
6,599
|
|
|
6,658
|
|
|
6,097
|
|
Equity
|
|
3,114
|
|
|
2,772
|
|
|
2,364
|
|
|
3,287
|
|
|
2,743
|
|
Foreign
exchange
|
|
959
|
|
|
954
|
|
|
903
|
|
|
855
|
|
|
779
|
|
Energy
|
|
1,797
|
|
|
2,142
|
|
|
1,749
|
|
|
1,965
|
|
|
2,032
|
|
Agricultural
commodity
|
|
1,173
|
|
|
1,189
|
|
|
1,400
|
|
|
1,267
|
|
|
1,200
|
|
Metal
|
|
361
|
|
|
369
|
|
|
331
|
|
|
353
|
|
|
326
|
|
Total
|
|
14,848
|
|
|
14,990
|
|
|
13,347
|
|
|
14,384
|
|
|
13,178
|
|
Venue
|
|
|
|
|
|
|
|
|
|
|
Electronic
|
|
12,982
|
|
|
13,034
|
|
|
11,705
|
|
|
12,620
|
|
|
11,420
|
|
Open
outcry
|
|
1,218
|
|
|
1,291
|
|
|
1,108
|
|
|
1,110
|
|
|
1,055
|
|
Privately
negotiated
|
|
648
|
|
|
665
|
|
|
534
|
|
|
653
|
|
|
704
|
|
Total
|
|
14,848
|
|
|
14,990
|
|
|
13,347
|
|
|
14,384
|
|
|
13,178
|
|
|
|
Average Rate Per
Contract (RPC)
CME Group
RPC
|
|
Product
Line
|
|
4Q
2014
|
|
1Q
2015
|
|
2Q
2015
|
|
3Q
2015
|
|
4Q
2015
|
Interest
rate
|
|
$
|
0.472
|
|
|
$
|
0.480
|
|
|
$
|
0.502
|
|
|
$
|
0.506
|
|
|
$
|
0.517
|
|
Equity
|
|
0.697
|
|
|
0.721
|
|
|
0.725
|
|
|
0.708
|
|
|
0.718
|
|
Foreign
exchange
|
|
0.760
|
|
|
0.831
|
|
|
0.816
|
|
|
0.785
|
|
|
0.813
|
|
Energy
|
|
1.279
|
|
|
1.250
|
|
|
1.277
|
|
|
1.197
|
|
|
1.232
|
|
Agricultural
commodity
|
|
1.321
|
|
|
1.324
|
|
|
1.311
|
|
|
1.290
|
|
|
1.339
|
|
Metal
|
|
1.664
|
|
|
1.662
|
|
|
1.634
|
|
|
1.600
|
|
|
1.644
|
|
Average
RPC
|
|
$
|
0.731
|
|
|
$
|
0.753
|
|
|
$
|
0.777
|
|
|
$
|
0.759
|
|
|
$
|
0.789
|
|
CME Group Inc. and
Subsidiaries
|
Reconciliation of
GAAP to non-GAAP Measures
|
(dollars in millions,
except per share amounts; shares in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Income
Attributable to CME Group
|
|
$
|
291.7
|
|
|
$
|
306.5
|
|
|
$
|
1,247.0
|
|
|
$
|
1,127.1
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
severance
|
|
—
|
|
|
12.4
|
|
|
21.0
|
|
|
18.2
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs
|
|
—
|
|
|
2.0
|
|
|
0.9
|
|
|
9.4
|
|
|
|
|
|
|
|
|
|
|
Data center lease
termination fee
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
Real estate taxes and
fees
|
|
—
|
|
|
—
|
|
|
10.0
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange
transaction losses1
|
|
5.2
|
|
|
11.2
|
|
|
11.3
|
|
|
15.4
|
|
|
|
|
|
|
|
|
|
|
MF Global bankruptcy
claim
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.5)
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
BM&FBOVESPA shares
|
|
11.9
|
|
|
—
|
|
|
8.5
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Debt prepayment
costs, debt costs for refinancing and loss on derivative
|
|
—
|
|
|
—
|
|
|
64.1
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
GFI termination fee -
net of the portion paid to outside advisers
|
|
—
|
|
|
—
|
|
|
(22.5)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Income tax effect
related to above
|
|
(3.0)
|
|
|
(6.1)
|
|
|
(27.9)
|
|
|
(7.2)
|
|
|
|
|
|
|
|
|
|
|
Other income tax
items2
|
|
5.6
|
|
|
(9.2)
|
|
|
(7.6)
|
|
|
(15.2)
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income
|
|
$
|
311.4
|
|
|
$
|
318.9
|
|
|
$
|
1,304.8
|
|
|
$
|
1,135.3
|
|
|
|
|
|
|
|
|
|
|
GAAP Earnings per
Common Share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.87
|
|
|
$
|
0.91
|
|
|
$
|
3.71
|
|
|
$
|
3.37
|
|
Diluted
|
|
0.86
|
|
|
0.91
|
|
|
3.69
|
|
|
3.35
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
per Common Share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.92
|
|
|
$
|
0.95
|
|
|
$
|
3.88
|
|
|
$
|
3.39
|
|
Diluted
|
|
0.92
|
|
|
0.95
|
|
|
3.86
|
|
|
3.38
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
336,844
|
|
|
335,197
|
|
|
336,224
|
|
|
334,409
|
|
Diluted
|
|
338,253
|
|
|
336,630
|
|
|
337,894
|
|
|
336,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. 2014 and
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.
|
|
2. Other income tax
items include the impact of deferred tax benefit recognized for
remeasurement of state and local deferred income tax benefits and
settlement of various tax audits.
|
CME-G
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cme-group-inc-reports-strong-fourth-quarter-2015-and-full-year-2015-financial-results-300215823.html
SOURCE CME Group