CHICAGO, Oct. 30, 2020 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE) today reported financial results
for the third quarter of 2020.
![(PRNewsfoto/Cboe Global Markets, Inc.) (PRNewsfoto/Cboe Global Markets, Inc.)](https://mma.prnewswire.com/media/622233/Cboe_Logo.jpg)
"Our third quarter results highlight continued robust engagement
among retail customers offset by decreased trading among
institutional investors as a result of ongoing uncertainty
regarding the global macro-environment. We continued throughout the
quarter to diversify our products and services for customers of
every type by advancing key growth initiatives, including the
expansion of our market data offering and the completion of our
MATCHNow and EuroCCP acquisitions, which will enable us to further
leverage our index product expertise and broaden our customer reach
in new geographies. We continue to make investments for future
growth as evidenced in our recently announced plans to acquire BIDS
Trading, a leading block trading venue, which would build upon our
successful partnership in Europe
with Cboe LIS and provide Cboe a presence in the growing
off-exchange segment of the U.S. equities market," said
Edward T. Tilly, Cboe Global Markets
Chairman, President and Chief Executive Officer. "Despite the
challenging trading environment, I have never been more excited
about the opportunities ahead as a result of our ability to
continue to successfully execute on meaningful initiatives to
deliver increased value to our customers and our shareholders," Mr.
Tilly added.
"We delivered adjusted EPS of $1.11 and an adjusted EBITDA margin of nearly 66
percent for the quarter, driven by the strength of our diversified
business model. Although net revenue and adjusted earnings
were down year-over-year, we continued to generate solid cash flow,
invest in the growth of our business for the long-term, and
returned nearly $88 million of
capital to shareholders in the quarter through dividends and share
repurchases," said Brian N. Schell, Cboe Global
Markets Executive Vice President, Chief Financial Officer and
Treasurer. "We remain focused on appropriate expense
discipline as we execute our key strategic growth initiatives and
strive to deliver long-term value to our shareholders."
*All comparisons are third quarter 2020 compared to the same
period in 2019.
(1)A full reconciliation of our
non-GAAP results to our GAAP results is included in the attached
tables. See "Non-GAAP Information" in the accompanying financial
tables.
Consolidated Third Quarter Results -Table 1
Table 1 below presents summary selected unaudited condensed
consolidated financial information for the company as reported and
on an adjusted basis for the three months ended September 30, 2020 and 2019.
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Table
1
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Consolidated Third Quarter Results
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3Q20
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3Q19
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($ in millions except per share)
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3Q20
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3Q19
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Change
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Adjusted1
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Adjusted1
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Change
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Total Revenues Less
Cost of Revenues
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$
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292.0
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$
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294.0
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(1)
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%
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$
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292.0
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$
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294.0
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(1)
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%
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Total Operating
Expenses
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$
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152.7
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$
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146.6
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4
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%
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$
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108.9
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$
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96.5
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13
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%
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Operating
Income
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$
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139.3
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$
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147.4
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(5)
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%
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$
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183.1
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$
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197.5
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(7)
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%
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Operating Margin
%
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47.7
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%
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50.1
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%
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(2.4)
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pp
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62.7
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%
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67.2
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%
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(4.5)
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pp
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Net Income Allocated to
Common Stockholders
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$
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109.6
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$
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105.5
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4
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%
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$
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120.5
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$
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144.6
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(17)
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%
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Diluted EPS
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$
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1.01
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$
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0.94
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7
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%
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$
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1.11
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$
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1.29
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(14)
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%
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EBITDA1
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$
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212.1
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$
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191.6
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11
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%
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$
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192.4
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$
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208.3
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(8)
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%
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EBITDA Margin
% 1
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72.6
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%
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65.2
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%
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7.4
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pp
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65.9
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%
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70.9
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%
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(5.0)
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pp
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- Total revenues less cost of revenues (referred to as "net
revenue") of $292.0 million decreased
1 percent compared to $294.0 million
in the prior-year period, primarily reflecting lower net
transaction and clearing fees1, due to lower trading
volumes in index options and futures, offset somewhat by revenue
contributed from acquisitions. In addition to acquisitions
completed in the first half of the year, third quarter results
include the acquisitions of EuroCCP, which closed on July 1, 2020, and MATCHNow, which closed on
August 4, 2020.
- Total operating expenses were $152.7
million versus $146.6 million
in the third quarter of 2019. Adjusted operating expenses¹ of
$108.9 million increased 13 percent
compared with $96.5 million in the
third quarter of 2019, primarily due to acquisitions, resulting in
higher compensation and benefits and technology support
services.
- Operating income decreased by 5 percent to $139.3 million and adjusted operating income¹
decreased by 7 percent to $183.1
million as a result of lower net revenue and higher
operating expenses.
- Non-operating income for the quarter includes a $32.6 million bargain purchase gain related to
the EuroCCP acquisition, which is included in the non-GAAP
reconciliation1. The gain reflects the difference
between the purchase price and the fair value of the assets
acquired.
- The effective tax rate for the third quarter of 2020 was 32.7
percent compared with 24.8 percent in the third quarter of 2019.
The higher effective tax rate in 2020 is primarily due to the
remeasurement of deferred tax liabilities as a result of an
increase in the statutory tax rate in the United Kingdom. The effective tax rate on
adjusted earnings¹ in the third quarter of 2020 was 30.8 percent
compared with 24.1 percent in last year's third quarter. The higher
effective tax rate on adjusted earnings was primarily due to
additional expense recognized upon the completion of the company's
2019 U.S. federal income tax return.
- Diluted EPS for the third quarter of 2020 was $1.01, up 7 percent. Adjusted diluted
EPS1 of $1.11 decreased 14
percent compared to 2019's third-quarter results.
- The EBITDA margin for the third quarter was 72.6 percent
compared to 65.2 percent in the third quarter of 2019. The adjusted
EBITDA margin was 65.9 percent compared to 70.9 percent for the
same period last year.
Business Segment Information:
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Table
2
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Total Revenues
Less Cost of Revenues by
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Business
Segment
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(in
millions)
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3Q20
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3Q19
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Change
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Options
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$
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148.1
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$
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146.5
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1
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%
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North American
Equities
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75.8
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75.4
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1
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%
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Futures
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23.3
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38.3
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(39)
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%
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European
Equities
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31.6
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20.7
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53
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%
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Global FX
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13.2
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13.1
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1
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%
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Total
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$
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292.0
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$
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294.0
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(1)
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%
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(1)
A full reconciliation of our non-GAAP results to our GAAP
results is included in the attached tables. See "Non-GAAP
Information" in the accompanying financial tables.
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Discussion of Results by Business Segment:
Options:
- Options net revenue of $148.1
million was up $1.6 million,
or 1 percent, from the third quarter of 2019, primarily due to
higher market data revenue, which included $4.5 million contributed from acquisitions made
in the first half of the year, as well as a decrease in royalty
fees.
- Net transaction fees¹ decreased $10.6
million, as revenue per contract ("RPC") declined by 27
percent, offset somewhat by a total options average daily volume
("ADV") increase of 24 percent compared to the third quarter 2019.
The decrease in total options RPC was mainly due to a mix shift,
with multi-listed options representing a higher percentage of total
options volume. The RPC for multi-listed options was unchanged and
the RPC for index options increased 12 percent, primarily
reflecting a shift in the product mix, as well as fee changes
implemented in the first quarter 2020.
- Cboe's Options business had total market share of 32.4 percent
for the third quarter of 2020 compared to 39.0 percent in the third
quarter of 2019, reflecting a mix shift in trading volume resulting
from a higher percentage of ADV from multi-listed options versus
index options. Cboe's multi-listed options market share for the
quarter decreased to 29.0 percent compared to 32.2 percent in the
third quarter of 2019.
North American Equities:
- North American Equities net revenue of $75.8 million was up $0.4
million, or 1 percent, primarily due to higher revenue from
access and capacity fees and net transaction fees1,
offset somewhat by lower market data revenue.
- Cboe U.S. Equities exchanges had market share of 15.1 percent
for the third quarter of 2020 compared to 17.2 percent in the third
quarter of 2019. The decrease was primarily due to higher
off-exchange trading volume during the third quarter of 2020, which
hit new highs, averaging nearly 43 percent of total market volume,
compared to 36 percent in the third quarter of 2019. Market share
for September increased 50 basis points compared to August,
reflecting positive response to pricing adjustments aimed at
attracting off-exchange volume.
Futures:
- Futures net revenue of $23.3
million decreased $15.0
million, or 39 percent, primarily due to a decline in net
transaction fees1.
- Net transaction fees¹ decreased $14.4
million, or 46 percent, reflecting a 38 percent decrease in
ADV and a 13 percent decline in RPC. The RPC decline was
primarily due to the introduction of mini-VIX futures, which is
one-tenth the size of the standard VIX futures and has a lower fee
per contract.
European Equities:
- European Equities net revenue of $31.6
million increased by 53 percent, primarily reflecting the
addition of EuroCCP, which accounted for $10.3 million in additional revenue, as well as
higher access and capacity fees. Average daily notional value
("ADNV") for the overall market was down 8 percent during the
quarter and ADNV traded for Cboe Europe was €5.6 billion, down 18
percent from last year's third quarter, with net capture up 5
percent.
- For the third quarter of 2020, Cboe European Equities had 17.7
percent market share, down from 19.8 percent in the third quarter
of 2019, primarily as a result of market profile shifts that
impacted order flow to Cboe, as well as an increase in
over-the-counter trading. Market share for the third quarter
increased 190 basis points compared to the second quarter of 2020,
reflecting positive response to a new pricing program and strong
performance in our Periodic Auctions offering.
Global FX:
- Global FX net revenue of $13.2
million increased 1 percent, primarily due to higher access
and capacity fees, offsetting lower net transaction
fees1 compared with the third quarter of 2019. ADNV
traded on the Cboe FX platform was $30.2
billion for the quarter, down 1 percent from last year's
third quarter and net capture per one
million dollars traded was $2.70 for third-quarter 2020, down 4 percent
compared to $2.80 in the
third-quarter 2019.
- Cboe FX market share increased to 15.9 percent for the quarter
compared to 14.1 percent in last year's third quarter.
(1)A full reconciliation of our
non-GAAP results to our GAAP results is included in the attached
tables. See "Non-GAAP Information" in the accompanying financial
tables.
2020 Fiscal Year Financial Guidance
The company updated its guidance for the 2020 fiscal year as
noted below. This guidance takes into account the company's
acquisitions completed through September 30,
2020, as well as its investment in launching pan-European
derivatives trading and clearing, which is subject to regulatory
approval.
- Adjusted operating expenses are now expected to be in the range
of $415 to $420 million, down from the previous guidance of
$436 to $444
million, primarily reflecting lower compensation costs,
including incentive-based compensation, professional fees and
travel and marketing expenses. The guidance excludes the
amortization of acquired intangible assets, which is now expected
to be $124 million versus prior
guidance of $120 million. The company
plans to include this amount in its non-GAAP reconciliation.¹
- Depreciation and amortization expense, which is included in
adjusted operating expenses above, is now expected to be in the
range of $32 to $36 million, down from previous guidance of
$34 to $38
million, excluding the expected amortization of acquired
intangible assets of $124 million.
The decrease reflects a lower level of capital spending.
- The effective tax rate¹ on adjusted earnings for the full year
is now expected to be in the range of 27.0 to 29.0 percent, up from
the prior range of 26.5 to 28.5 percent, which incorporates a
higher tax rate for the third quarter. Significant changes in
trading volume, expenses, federal, state and local tax laws or
rates and other items could materially impact this
expectation.
- Capital expenditures are now expected to be in the range of
$45 to $50
million, down compared to prior guidance of $65 to $70 million,
reflecting a shift in the timing of certain expenditures, as well
as lower spending for certain projects.
(1)Specific quantifications of the
amounts that would be required to reconcile the company's adjusted
operating expenses guidance and the effective tax rate on adjusted
earnings guidance are not available. The company believes that
there is uncertainty and unpredictability with respect to certain
of its GAAP measures, primarily related to acquisition-related
expenses that would be required to reconcile to GAAP operating
expenses and GAAP effective tax rate, which preclude the company
from providing accurate guidance on certain forward-looking GAAP to
non-GAAP reconciliations. The company believes that providing
estimates of the amounts that would be required to reconcile the
range of the company's adjusted operating expenses and the
effective tax rate on adjusted earnings would imply a degree of
precision that would be confusing or misleading to investors for
the reasons identified above.
Capital Management
The company paid cash dividends of $45.8
million, or $0.42 per share,
during the third quarter of 2020 and utilized $41.8 million to repurchase 0.5 million shares of
its common stock under its share repurchase program at an average
price of $89.92 per share. In
addition, through October 29, 2020,
the company used $32.2 million to
repurchase 0.4 million shares at an average price of $82.73, resulting in approximately $255.9 million of availability remaining under
its share repurchase program as of October
29, 2020.
At September 30, 2020, the company
had adjusted cash2 of $213.2
million. Total debt as of September
30, 2020 was $939.1
million.
(2)A full reconciliation of our non-GAAP
results to our GAAP results is included in the attached tables. See
"Non-GAAP Information" in the accompanying financial
tables.
Earnings Conference Call
Executives of Cboe Global Markets will host a conference call to
review its third-quarter financial results today, October 30, 2020, at 8:30 a.m.
ET/7:30 a.m. CT. The conference call and any accompanying
slides will be publicly available via live webcast from the
Investor Relations section of the company's website at www.cboe.com
under Events & Presentations. Participants may also listen
via telephone by dialing (877) 255–4313 from the United States, (866) 450–4696 from
Canada or (412) 317–5466 for
international callers. Telephone participants should place calls 10
minutes prior to the start of the call. The webcast will be
archived on the company's website for replay. A telephone replay of
the earnings call also will be available from approximately
11:00 a.m. CT, October 30, 2020,
through 11:00 p.m. CT, November 6,
2020, by calling (877) 344–7529 from the U.S., (855)
669–9658 from Canada or (412)
317–0088 for international callers, using replay code 10147930.
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE) provides cutting-edge trading
and investment solutions to investors around the world. The company
is committed to defining markets through product innovation,
leading edge technology and seamless trading solutions.
Cboe offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S., Canadian and European equities, exchange-traded products
("ETPs"), global foreign exchange ("FX") and volatility products
based on the VIX Index, recognized as the world's premier gauge of
U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates one of the largest stock exchanges by value traded
in Europe, and owns EuroCCP, a
leading pan-European equities clearing house. Cboe is also a
leading market globally for ETP listings and trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
Cautionary Statements Regarding Forward-Looking
Information
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve a number of risks and uncertainties. You can identify
these statements by forward-looking words such as "may," "might,"
"should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," and the negative of these
terms and other comparable terminology. All statements that reflect
our expectations, assumptions or projections about the future other
than statements of historical fact are forward-looking statements.
These forward-looking statements, which are subject to known and
unknown risks, uncertainties and assumptions about us, may include
projections of our future financial performance based on our growth
strategies and anticipated trends in our business. These statements
are only predictions based on our current expectations and
projections about future events. There are important factors that
could cause our actual results, level of activity, performance or
achievements to differ materially from those expressed or implied
by the forward-looking statements.
We operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time,
and it is not possible to predict all risks and uncertainties, nor
can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements.
Some factors that could cause actual results to differ include:
the impact of the novel coronavirus ("COVID-19") pandemic,
including changes to trading behavior broadly in the market; the
loss of our right to exclusively list and trade certain index
options and futures products; economic, political and market
conditions; compliance with legal and regulatory obligations; price
competition and consolidation in our industry; decreases in trading
and clearing volumes, market data fees or a shift in the mix of
products traded on our exchanges; legislative or regulatory
changes; our ability to protect our systems and communication
networks from security risks, cybersecurity risks, insider threats
and unauthorized disclosure of confidential information; increasing
competition by foreign and domestic entities; our dependence on and
exposure to risk from third parties; fluctuations to currency
exchange rates; our index providers' ability to maintain the
quality and integrity of their indexes and to perform under our
agreements; our ability to operate our business without violating
the intellectual property rights of others and the costs associated
with protecting our intellectual property rights; our ability to
attract and retain skilled management and other personnel; our
ability to minimize the risks, including our credit and default
risks, associated with operating a European clearinghouse; our
ability to accommodate trading and clearing volume and transaction
traffic, including significant increases, without failure or
degradation of performance of our systems; misconduct by those who
use our markets or our products or for whom we clear transactions;
challenges to our use of open source software code; our ability to
meet our compliance obligations, including managing potential
conflicts between our regulatory responsibilities and our
for-profit status; damage to our reputation; the ability of our
compliance and risk management methods to effectively monitor and
manage our risks; our ability to manage our growth and strategic
acquisitions or alliances effectively; restrictions imposed by our
debt obligations; our ability to maintain an investment grade
credit rating; impairment of our goodwill, long-lived assets,
investments or intangible assets; and the accuracy of our estimates
and expectations. More detailed information about factors that may
affect our actual results to differ may be found in our filings
with the SEC, including in our Annual Report on Form 10-K for the
year ended December 31, 2019 and
other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to
update any forward-looking statement whether as a result of new
information, future events or otherwise, except as required by law.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.
The condensed consolidated statements of income and balance
sheets are unaudited and subject to reclassification.
Cboe Media
Contacts:
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Analyst
Contact:
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Angela Tu
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Tim Cave
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Debbie
Koopman
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(646)
856–8734
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+44 (0) 7593 506
719
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(312)
786–7136
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atu@cboe.com
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tcave@cboe.com
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dkoopman@cboe.com
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CBOE-F
Trademarks:
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, Bats®,
BZX®, BYX®, EDGX®, EDGA®, EuroCCP®, MATCHNow®, and VIX® are
registered trademarks of Cboe Global Markets, Inc. and its
subsidiaries. All other trademarks and service marks are the
property of their respective owners.
Cboe Global
Markets, Inc.
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Key Performance
Statistics by Business Segment
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3Q
2020
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2Q
2020
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1Q
2020
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4Q
2019
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3Q
2019
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Options (ADV
in thousands)
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Total industry
ADV
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29,535
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27,649
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28,014
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19,492
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19,790
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Total company
Options ADV
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9,569
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9,944
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10,731
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7,297
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7,720
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Multi-listed
options
|
|
|
8,136
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8,354
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|
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8,069
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5,552
|
|
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5,715
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Index
options
|
|
|
1,433
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1,590
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2,663
|
|
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1,745
|
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|
2,005
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|
Total Options
Market Share
|
|
|
32.4
|
%
|
|
35.2
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%
|
|
38.3
|
%
|
|
37.4
|
%
|
|
39.0
|
%
|
Multi-listed
options
|
|
|
29.0
|
%
|
|
31.4
|
%
|
|
31.9
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%
|
|
31.3
|
%
|
|
32.2
|
%
|
Index
options
|
|
|
98.9
|
%
|
|
99.4
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%
|
|
99.2
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%
|
|
99.0
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%
|
|
99.1
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%
|
Total Options
RPC:
|
|
$
|
0.173
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$
|
0.182
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$
|
0.234
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$
|
0.225
|
|
$
|
0.236
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|
Multi-listed
options
|
|
$
|
0.056
|
|
$
|
0.051
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|
$
|
0.053
|
|
$
|
0.055
|
|
$
|
0.056
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|
Index
options
|
|
$
|
0.842
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|
$
|
0.870
|
|
$
|
0.781
|
|
$
|
0.766
|
|
$
|
0.751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
North American
Equities
|
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|
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|
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U.S.
Equities:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total industry ADV
(shares in billions)
|
|
|
9.9
|
|
|
12.4
|
|
|
11.0
|
|
|
6.8
|
|
|
6.9
|
|
Market share
%
|
|
|
15.1
|
%
|
|
16.1
|
%
|
|
16.7
|
%
|
|
16.4
|
%
|
|
17.2
|
%
|
Net capture (per 100
touched shares)
|
|
$
|
0.017
|
|
$
|
0.025
|
|
$
|
0.026
|
|
$
|
0.023
|
|
$
|
0.020
|
|
Canadian
Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV (matched shares, in
millions)
|
|
|
40.0
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Total market share
%
|
|
|
3.3
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Market share % - TSX
listed volume
|
|
|
4.7
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Net capture (per 10,000
shares, in Canadian Dollars)
|
|
$
|
8.200
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV (in
thousands)
|
|
|
172
|
|
|
144
|
|
|
331
|
|
|
228
|
|
|
279
|
|
RPC
|
|
$
|
1.527
|
|
$
|
1.743
|
|
$
|
1.750
|
|
$
|
1.794
|
|
$
|
1.746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European
Equities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total industry ADNV
(Euros - in billions)
|
|
€
|
31.5
|
|
€
|
40.1
|
|
€
|
51.5
|
|
€
|
35.1
|
|
€
|
34.2
|
|
Market share
%
|
|
|
17.7
|
%
|
|
15.8
|
%
|
|
17.7
|
%
|
|
18.4
|
%
|
|
19.8
|
%
|
Net capture
(bps)
|
|
|
0.245
|
|
|
0.248
|
|
|
0.244
|
|
|
0.248
|
|
|
0.233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market share
%
|
|
|
15.9
|
%
|
|
16.4
|
%
|
|
15.7
|
%
|
|
16.0
|
%
|
|
14.1
|
%
|
ADNV ($ in
billions)
|
|
$
|
30.2
|
|
$
|
31.8
|
|
$
|
43.3
|
|
$
|
30.1
|
|
$
|
30.3
|
|
Net capture (per one
million dollars traded)
|
|
$
|
2.70
|
|
$
|
2.77
|
|
$
|
2.69
|
|
$
|
2.80
|
|
$
|
2.80
|
|
ADV = average daily volume; ADNV = average daily notional
value.
RPC, average revenue per contract, for options and futures
represents total net transaction fees recognized for the period
divided by total contracts traded during the period.
U.S. Equities, "net capture per 100 touched shares" refers to
transaction fees less liquidity payments and routing and clearing
costs divided by the product of one-hundredth ADV of touched shares
on BZX, BYX, EDGX and EDGA and the number of trading days.
Canadian Equities data reflects the acquisition of MATCHNow
effective August 4, 2020. Canadian
Equities, "net capture per 10,000 shares" refers to
transaction fees divided by the product of one-ten thousandth ADV
of shares for MATCHNow and the number of trading days. Total market
share represents MATCHNow volume divided by the total volume of the
Canadian Equities market. TSX listed volume market share represents
MATCHNow volume divided by the total volume in TSX listed
equities.
European Equities, "net capture per matched notional value"
refers to transaction fees less liquidity payments in British
pounds divided by the product of matched ADNV in British pounds and
the number of trading days.
Global FX, "net capture per one million
dollars traded" refers to net transaction fees divided by
the product of one-millionth of ADNV traded on the Cboe FX market,
the number of trading days, and two, which represents the buyer and
seller that are both charged on the transaction. Market Share
represents Cboe FX volume divided by the total volume of publicly
reporting spot FX venues (Cboe FX, EBS, Refinitiv, and Euronext
FX).
Average transaction fees per contract can be affected by various
factors, including exchange fee rates, volume-based discounts and
transaction mix by contract type and product type.
Cboe Global
Markets, Inc. and Subsidiaries
Condensed
Consolidated Statements of Income (Unaudited)
Three Months and
Nine Months Ended September 30, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
(in millions, except
per share amounts)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and
clearing fees
|
|
$
|
545.5
|
|
$
|
465.8
|
|
$
|
1,825.3
|
|
$
|
1,322.0
|
Access and capacity
fees
|
|
|
60.6
|
|
|
55.7
|
|
|
174.0
|
|
|
164.6
|
Market data
fees
|
|
|
59.5
|
|
|
56.3
|
|
|
174.4
|
|
|
159.7
|
Regulatory
fees
|
|
|
113.8
|
|
|
88.1
|
|
|
379.3
|
|
|
226.5
|
Other
revenue
|
|
|
13.3
|
|
|
9.5
|
|
|
29.9
|
|
|
24.7
|
Total
Revenues
|
|
|
792.7
|
|
|
675.4
|
|
|
2,582.9
|
|
|
1,897.5
|
Cost of
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity
payments
|
|
|
359.4
|
|
|
269.7
|
|
|
1,167.4
|
|
|
749.2
|
Routing and
clearing
|
|
|
14.9
|
|
|
9.3
|
|
|
48.6
|
|
|
27.7
|
Section 31
fees
|
|
|
105.4
|
|
|
79.4
|
|
|
351.8
|
|
|
197.9
|
Royalty fees
|
|
|
17.6
|
|
|
22.9
|
|
|
64.4
|
|
|
65.8
|
Other
|
|
|
3.4
|
|
|
0.1
|
|
|
3.5
|
|
|
0.3
|
Total Cost of
Revenues
|
|
|
500.7
|
|
|
381.4
|
|
|
1,635.7
|
|
|
1,040.9
|
Revenues Less Cost
of Revenues
|
|
|
292.0
|
|
|
294.0
|
|
|
947.2
|
|
|
856.6
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
59.2
|
|
|
49.7
|
|
|
167.4
|
|
|
150.0
|
Depreciation and
amortization
|
|
|
39.5
|
|
|
42.9
|
|
|
118.0
|
|
|
133.8
|
Technology support
services
|
|
|
15.1
|
|
|
10.6
|
|
|
39.5
|
|
|
34.3
|
Professional fees and
outside services
|
|
|
15.8
|
|
|
17.5
|
|
|
43.0
|
|
|
52.9
|
Travel and promotional
expenses
|
|
|
1.2
|
|
|
2.7
|
|
|
4.2
|
|
|
8.3
|
Facilities
costs
|
|
|
4.5
|
|
|
2.7
|
|
|
12.7
|
|
|
7.8
|
Acquisition-related
costs
|
|
|
6.2
|
|
|
16.7
|
|
|
16.4
|
|
|
39.8
|
Other
expenses
|
|
|
11.2
|
|
|
3.8
|
|
|
18.6
|
|
|
11.7
|
Total Operating
Expenses
|
|
|
152.7
|
|
|
146.6
|
|
|
419.8
|
|
|
438.6
|
Operating
Income
|
|
|
139.3
|
|
|
147.4
|
|
|
527.4
|
|
|
418.0
|
Non-operating Income
(Expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(9.5)
|
|
|
(8.2)
|
|
|
(24.1)
|
|
|
(28.1)
|
Other income (expense),
net
|
|
|
33.6
|
|
|
1.7
|
|
|
34.2
|
|
|
(2.7)
|
Total Non-operating
Income (Expenses)
|
|
|
24.1
|
|
|
(6.5)
|
|
|
10.1
|
|
|
(30.8)
|
Income Before Income
Tax Provision
|
|
|
163.4
|
|
|
140.9
|
|
|
537.5
|
|
|
387.2
|
Income tax
provision
|
|
|
53.5
|
|
|
35.0
|
|
|
156.6
|
|
|
102.7
|
Net
Income
|
|
|
109.9
|
|
|
105.9
|
|
|
380.9
|
|
|
284.5
|
Net loss attributable
to redeemable noncontrolling interest
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
4.1
|
Net Income Excluding
Redeemable Noncontrolling Interest
|
|
|
109.9
|
|
|
106.0
|
|
|
380.9
|
|
|
288.6
|
Change in redemption
value of redeemable noncontrolling interest
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.5)
|
Net income allocated to
participating securities
|
|
|
(0.3)
|
|
|
(0.4)
|
|
|
(1.0)
|
|
|
(1.5)
|
Net Income Allocated
to Common Stockholders
|
|
$
|
109.6
|
|
$
|
105.5
|
|
$
|
379.9
|
|
$
|
286.6
|
Net Income Per Share
Allocated to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.01
|
|
$
|
0.95
|
|
$
|
3.47
|
|
$
|
2.57
|
Diluted earnings per
share
|
|
|
1.01
|
|
|
0.94
|
|
|
3.46
|
|
|
2.56
|
Weighted average shares
used in computing income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
108.7
|
|
|
111.6
|
|
|
109.5
|
|
|
111.6
|
Diluted
|
|
|
108.8
|
|
|
111.9
|
|
|
109.8
|
|
|
112.0
|
Cboe Global
Markets, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets (Unaudited)
September 30, 2020
and December 31, 2019
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
(in
millions)
|
2020
|
|
2019
|
Assets
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
212.7
|
|
$
|
229.3
|
Financial
investments
|
|
22.8
|
|
|
71.0
|
Accounts receivable,
net
|
|
283.3
|
|
|
234.7
|
Margin deposits and
clearing funds
|
|
771.9
|
|
|
—
|
Income taxes
receivable
|
|
58.3
|
|
|
56.8
|
Other current
assets
|
|
33.3
|
|
|
15.8
|
Total Current
Assets
|
|
1,382.3
|
|
|
607.6
|
|
|
|
|
|
|
Investments
|
|
53.2
|
|
|
61.2
|
Property and
equipment, net
|
|
82.6
|
|
|
47.0
|
Property held for
sale
|
|
13.0
|
|
|
21.1
|
Operating lease right
of use assets
|
|
116.1
|
|
|
53.4
|
Goodwill
|
|
2,781.5
|
|
|
2,682.1
|
Intangible assets,
net
|
|
1,580.4
|
|
|
1,589.9
|
Other assets,
net
|
|
67.7
|
|
|
51.6
|
Total
Assets
|
$
|
6,076.8
|
|
$
|
5,113.9
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
211.6
|
|
$
|
171.9
|
Section 31 fees
payable
|
|
39.7
|
|
|
99.0
|
Deferred
revenue
|
|
13.7
|
|
|
4.5
|
Margin deposits and
clearing funds
|
|
771.9
|
|
|
—
|
Income taxes
payable
|
|
3.2
|
|
|
4.0
|
Current portion of
long-term debt
|
|
70.0
|
|
|
—
|
Current portion of
contingent consideration liabilities
|
|
18.2
|
|
|
2.2
|
Total Current
Liabilities
|
|
1,128.3
|
|
|
281.6
|
|
|
|
|
|
|
Long-term
debt
|
|
869.1
|
|
|
867.6
|
Unrecognized tax
benefits
|
|
157.3
|
|
|
135.9
|
Deferred income
taxes
|
|
396.8
|
|
|
399.7
|
Non-current operating
lease liabilities
|
|
135.6
|
|
|
46.7
|
Contingent
consideration liabilities
|
|
19.7
|
|
|
—
|
Other non-current
liabilities
|
|
25.5
|
|
|
26.8
|
Total
Liabilities
|
|
2,732.3
|
|
|
1,758.3
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
Preferred
stock
|
|
—
|
|
|
—
|
Common
stock
|
|
1.2
|
|
|
1.2
|
Treasury stock at
cost
|
|
(1,162.4)
|
|
|
(887.1)
|
Additional paid-in
capital
|
|
2,708.9
|
|
|
2,691.3
|
Retained
earnings
|
|
1,767.8
|
|
|
1,512.6
|
Accumulated other
comprehensive income, net
|
|
29.0
|
|
|
37.6
|
Total
Stockholders' Equity
|
|
3,344.5
|
|
|
3,355.6
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
|
6,076.8
|
|
$
|
5,113.9
|
Non-GAAP Information
In addition to disclosing results determined in accordance with
GAAP, Cboe Global Markets has disclosed certain non-GAAP measures
of operating performance. These measures are not in accordance
with, or a substitute for, GAAP, and may be different from or
inconsistent with non-GAAP financial measures used by other
companies. The non-GAAP measures provided in this press release
include net transaction and clearing fees, adjusted operating
expenses, adjusted operating income, organic net revenue, adjusted
operating margin, adjusted net income allocated to common
stockholders and adjusted diluted earnings per share, effective tax
rate on adjusted earnings, adjusted cash, EBITDA, EBITDA margin,
adjusted EBITDA and adjusted EBITDA margin.
Management believes that the non-GAAP financial measures
presented in this press release, including adjusted operating
income, organic net revenue and adjusted operating expenses,
provide additional and comparative information to assess trends in
our core operations and a means to evaluate period-to-period
comparisons. Non-GAAP financial measures disclosed by management
are provided as additional information to investors in order to
provide them with an alternative method for assessing our financial
condition and operating results.
Organic net revenue: Is a non-GAAP financial measure
that excludes or has otherwise been adjusted for the impact of our
acquisitions for the period. Management believes the organic net
revenue growth measure provides users with supplemental information
regarding the company's ongoing revenue performance and trends by
presenting revenue growth excluding the impact of the
acquisitions.
Amortization expense of acquired intangible assets: We
amortize intangible assets acquired in connection with various
acquisitions. Amortization of intangible assets is inconsistent in
amount and frequency and is significantly affected by the timing
and size of our acquisitions. As such, if intangible asset
amortization is included in performance measures, it is more
difficult to assess the day-to-day operating performance of the
businesses, the relative operating performance of the businesses
between periods and the earnings power of the company. Therefore,
we believe performance measures excluding intangible asset
amortization expense provide investors with an additional basis for
comparison across accounting periods.
Acquisition-related expenses: From time to time, we have
pursued acquisitions, which have resulted in expenses which would
not otherwise have been incurred in the normal course of the
company's business operations. These expenses include integration
costs, as well as legal, due diligence and other third party
transaction costs. The frequency and the amount of such expenses
vary significantly based on the size, timing and complexity of the
transaction. Accordingly, we exclude these costs for purposes of
calculating non-GAAP measures which provide an additional analysis
of Cboe's ongoing operating performance or comparisons in Cboe's
performance between periods.
The tables below show the reconciliation of each financial
measure from GAAP to non-GAAP. The non-GAAP financial measures
exclude the impact of those items detailed below and are referred
to as adjusted financial measures.
Organic Net Revenue Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(in
millions)
|
|
September 30, 2020
|
|
September 30, 2020
|
|
Reconciliation of
Revenue Less Cost of Revenue to Organic
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue less cost of
revenue (net revenue)
|
|
$
|
292.0
|
|
$
|
294.0
|
|
$
|
947.2
|
|
$
|
856.6
|
|
Recent
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition revenue
less cost of revenue
|
|
$
|
(16.6)
|
|
$
|
—
|
|
$
|
(23.3)
|
|
$
|
—
|
|
Organic net
revenue
|
|
$
|
275.4
|
|
$
|
294.0
|
|
$
|
923.9
|
|
$
|
856.6
|
|
Reconciliation of GAAP and non-GAAP Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Table
4
|
|
September 30,
|
|
September 30,
|
|
(in millions, except
per share amounts)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Reconciliation of
Net Income Allocated to Common Stockholders to Non-GAAP (As shown
on Table 1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income allocated
to common stockholders
|
|
$
|
109.6
|
|
$
|
105.5
|
|
$
|
379.9
|
|
$
|
286.6
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses (1)
|
|
|
6.2
|
|
|
16.7
|
|
|
16.4
|
|
|
39.8
|
|
Provision for notes
receivable (2)
|
|
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
Bargain purchase gain
(3)
|
|
|
(32.6)
|
|
|
—
|
|
|
(32.6)
|
|
|
—
|
|
Amortization of
acquired intangible assets (4)
|
|
|
30.9
|
|
|
33.4
|
|
|
93.4
|
|
|
105.1
|
|
Change in redemption
value of noncontrolling interest
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.5
|
|
Total Non-GAAP
adjustments
|
|
|
11.2
|
|
|
50.2
|
|
|
83.9
|
|
|
145.4
|
|
Income tax expense
related to the items above
|
|
|
(8.0)
|
|
|
(11.0)
|
|
|
(24.9)
|
|
|
(34.2)
|
|
Deferred tax
re-measurements
|
|
|
7.7
|
|
|
—
|
|
|
7.7
|
|
|
—
|
|
Impairment charges
attributed to noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6)
|
|
Net income allocated
to participating securities - effect on reconciling
items
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.5)
|
|
|
(0.5)
|
|
Adjusted net
income allocated to common stockholders
|
|
$
|
120.5
|
|
$
|
144.6
|
|
$
|
446.1
|
|
$
|
393.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted EPS to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
1.01
|
|
$
|
0.94
|
|
$
|
3.46
|
|
$
|
2.56
|
|
Per share impact of
non-GAAP adjustments noted above
|
|
|
0.10
|
|
|
0.35
|
|
|
0.60
|
|
|
0.96
|
|
Adjusted diluted
earnings per common share
|
|
$
|
1.11
|
|
$
|
1.29
|
|
$
|
4.06
|
|
$
|
3.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Margin to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue less cost of
revenue
|
|
$
|
292.0
|
|
$
|
294.0
|
|
$
|
947.2
|
|
$
|
856.6
|
|
Non-GAAP adjustments
noted above
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted revenue
less cost of revenue
|
|
$
|
292.0
|
|
$
|
294.0
|
|
$
|
947.2
|
|
$
|
856.6
|
|
Operating expenses
(5)
|
|
$
|
152.7
|
|
$
|
146.6
|
|
$
|
419.8
|
|
$
|
438.6
|
|
Non-GAAP adjustments
noted above
|
|
|
43.8
|
|
|
50.1
|
|
|
116.5
|
|
|
144.9
|
|
Adjusted operating
expenses
|
|
$
|
108.9
|
|
$
|
96.5
|
|
$
|
303.3
|
|
$
|
293.7
|
|
Operating
income
|
|
$
|
139.3
|
|
$
|
147.4
|
|
$
|
527.4
|
|
$
|
418.0
|
|
Non-GAAP adjustments
noted above
|
|
|
43.8
|
|
|
50.1
|
|
|
116.5
|
|
|
144.9
|
|
Adjusted operating
income
|
|
$
|
183.1
|
|
$
|
197.5
|
|
$
|
643.9
|
|
$
|
562.9
|
|
Adjusted operating
margin (6)
|
|
|
62.7
|
%
|
|
67.2
|
%
|
|
68.0
|
%
|
|
65.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Rate to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
163.4
|
|
|
140.9
|
|
|
537.5
|
|
|
387.2
|
|
Non-GAAP adjustments
noted above
|
|
|
11.2
|
|
|
50.2
|
|
|
83.9
|
|
|
145.4
|
|
Adjusted income
before income taxes
|
|
$
|
174.6
|
|
$
|
191.1
|
|
$
|
621.4
|
|
$
|
532.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
53.5
|
|
|
35.0
|
|
|
156.6
|
|
|
102.7
|
|
Non-GAAP adjustments
noted above
|
|
|
0.3
|
|
|
11.0
|
|
|
17.2
|
|
|
34.2
|
|
Adjusted income
tax expense
|
|
$
|
53.8
|
|
$
|
46.0
|
|
$
|
173.8
|
|
$
|
136.9
|
|
Adjusted income
tax rate
|
|
|
30.8
|
%
|
|
24.1
|
%
|
|
28.0
|
%
|
|
25.7
|
%
|
|
(1) This amount
includes professional fees and outside services, severance,
facilities expenses, impairment charges and other costs related to
the company's acquisitions.
|
(2) This amount
represents the provision for notes receivable, recorded in other
expenses on the consolidated statements of income, associated with
the funding for the development of the consolidated audit trail
("CAT").
|
(3) This amount
represents the bargain purchase gain related to the acquisition of
EuroCCP on July 1, 2020.
|
(4) This amount
represents the amortization of acquired intangible assets related
to the company's acquisitions.
|
(5) The company
sponsors deferred compensation plans held in a rabbi trust. The
expenses or income related to the deferred compensation plans are
included in "Compensation and benefits" ($1.0 million and $30
thousand in expense for the three months ended September 30, 2020
and 2019, respectively, and $1.1 million and 3.7 million in the
nine months ended September 30, 2020 and 2019, respectively), and
are directly offset by deferred compensation income, expenses and
dividends included within "Other expense, net" ($1.0 million and
$30 thousand in income, expense and dividends in the three months
ended September 30, 2020 and 2019, respectively, and $1.1 million
and $3.7 million in the nine months ended September 2020 and 2019,
respectively), on the condensed consolidated statements of income.
The deferred compensation plans' expenses are not adjusted out of
"adjusted operating expenses" and do not have an impact on "Income
before income taxes."
|
(6) Adjusted
operating margin represents adjusted operating income divided by
adjusted revenue less cost of revenue.
|
EBITDA Reconciliations
EBITDA (earnings before interest, income taxes, depreciation and
amortization) and Adjusted EBITDA are widely used non-GAAP
financial measures of operating performance. EBITDA margin
represents EBITDA divided by revenues less cost of revenues (net
revenue). It is presented as supplemental information that the
company believes is useful to investors to evaluate its results
because it excludes certain items that are not directly related to
the company's core operating performance. EBITDA is calculated by
adding back to net income interest expense, income tax expense,
depreciation and amortization. Adjusted EBITDA is calculated by
adding back to EBITDA acquisition-related expenses, provision for
notes receivable, bargain purchase gain, and impairment charges
attributed to noncontrolling interest. EBITDA and Adjusted
EBITDA should not be considered as substitutes either for net
income, as an indicator of the company's operating performance, or
for cash flow, as a measure of the company's liquidity. In
addition, because EBITDA and Adjusted EBITDA may not be calculated
identically by all companies, the presentation here may not be
comparable to other similarly titled measures of other
companies. Adjusted EBITDA margin represents Adjusted EBITDA
divided by net revenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
(in
millions)
|
|
September 30,
|
|
September 30,
|
|
Reconciliation of
Net Income Allocated to Common Stockholders to EBITDA and Adjusted
EBITDA (Per Table 1)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net income
allocated to common stockholders
|
|
$
|
109.6
|
|
$
|
105.5
|
|
$
|
379.9
|
|
$
|
286.6
|
|
Interest expense,
net
|
|
|
9.5
|
|
|
8.2
|
|
|
24.1
|
|
|
28.1
|
|
Income tax
provision
|
|
|
53.5
|
|
|
35.0
|
|
|
156.6
|
|
|
102.7
|
|
Depreciation and
amortization
|
|
|
39.5
|
|
|
42.9
|
|
|
118.0
|
|
|
133.8
|
|
EBITDA
|
|
$
|
212.1
|
|
$
|
191.6
|
|
$
|
678.6
|
|
$
|
551.2
|
|
EBITDA
Margin
|
|
|
72.6
|
%
|
|
65.2
|
%
|
|
71.6
|
%
|
|
64.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments not included in above line items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
|
6.2
|
|
|
16.7
|
|
|
16.4
|
|
|
39.8
|
|
Provision for notes
receivable
|
|
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
Bargain purchase
gain
|
|
|
(32.6)
|
|
|
—
|
|
|
(32.6)
|
|
|
—
|
|
Impairment charges
attributed to noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6)
|
|
Adjusted
EBITDA
|
|
$
|
192.4
|
|
$
|
208.3
|
|
$
|
669.1
|
|
$
|
587.4
|
|
Adjusted EBITDA
Margin
|
|
|
65.9
|
%
|
|
70.9
|
%
|
|
70.6
|
%
|
|
68.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
|
|
Reconciliation of
Cash and cash equivalents to Adjusted Cash
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
212.7
|
|
$
|
229.3
|
|
|
|
|
|
|
|
Financial
investments
|
|
|
22.8
|
|
|
71.0
|
|
|
|
|
|
|
|
Less deferred
compensation plan assets
|
|
|
(22.3)
|
|
|
(23.4)
|
|
|
|
|
|
|
|
Less cash collected
for Section 31 Fees
|
|
|
—
|
|
|
(69.0)
|
|
|
|
|
|
|
|
Adjusted
Cash
|
|
$
|
213.2
|
|
$
|
207.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Transaction and Clearing Fees –Three Months Ended September 30,
2020 and 2019
|
|
Consolidated
|
|
Options
Segment
|
|
N.A. Equities
Segment
|
|
Futures
Segment
|
|
European Equities
Segment
|
|
Global FX
Segment
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Transaction and
clearing fees
|
$
|
545.5
|
|
$
|
465.8
|
|
$
|
241.4
|
|
$
|
207.1
|
|
$
|
253.0
|
|
$
|
199.4
|
|
$
|
16.8
|
|
$
|
31.2
|
|
$
|
23.4
|
|
$
|
16.9
|
|
$
|
10.9
|
|
$
|
11.2
|
Liquidity
payments
|
|
(359.4)
|
|
|
(269.7)
|
|
|
(130.1)
|
|
|
(86.9)
|
|
|
(225.1)
|
|
|
(177.6)
|
|
|
—
|
|
|
—
|
|
|
(4.2)
|
|
|
(5.2)
|
|
|
—
|
|
|
—
|
Routing and
clearing
|
|
(14.9)
|
|
|
(9.3)
|
|
|
(5.2)
|
|
|
(3.5)
|
|
|
(9.7)
|
|
|
(5.8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Net transaction and
clearing fees
|
$
|
171.2
|
|
$
|
186.8
|
|
$
|
106.1
|
|
$
|
116.7
|
|
$
|
18.2
|
|
$
|
16.0
|
|
$
|
16.8
|
|
$
|
31.2
|
|
$
|
19.2
|
|
$
|
11.7
|
|
$
|
10.9
|
|
$
|
11.2
|
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SOURCE Cboe Global Markets, Inc.