First Quarter Highlights*
- Diluted EPS for the Quarter of $1.02, Down 20 percent
- Adjusted Diluted EPS¹ for the Quarter of $1.73, Up 13 percent
- Net Revenue for the Quarter of $418
million, Up 14 percent
- Reaffirmed Organic Total Net Revenue Growth2
Target for 2022 of 5 to 7 percentage points; Increases Data
and Access Solutions Organic Net Revenue Growth2 Target
to 8 to 11 percentage points, from 7 to 10 percentage
points
- Reaffirmed 2022 Adjusted Operating Expense
Guidance2 of $617 to
$625 million
CHICAGO, April 29, 2022 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE) today reported financial results
for the first quarter of 2022.
![](https://mma.prnewswire.com/media/622233/Cboe_Logo.jpg)
"2022 is off to an extraordinary start with Cboe delivering
record quarterly results following a record year in 2021. Not only
did our core derivatives franchise perform remarkably well during
the quarter, but we saw strong contributions from areas like our
European cash equities and our Data and Access Solutions
businesses, underscoring the power of the flywheel at the heart of
Cboe's global value creation model," said Edward T. Tilly, Cboe Global Markets Chairman,
President and Chief Executive Officer. "These comprehensive results
validate the investments we are making across our ecosystem around
the globe. Moving forward, we look to build on our strong
foundation with the expected close of the NEO and ErisX
acquisitions3, expansion of our SPX Weekly Options
product suite and continued growth of our European Derivatives
platform. There is a tremendous amount of momentum at Cboe, and I
am incredibly proud of the Cboe team's ability to deliver on the
company's longer-term aspirations."
"Cboe built on the momentum seen in 2021 to deliver another
quarter of record earnings to start 2022. The contribution was
again balanced across our businesses," said Brian N. Schell, Cboe Global Markets Executive
Vice President, Chief Financial Officer and Treasurer. "Following
the strong start to the year, we are reaffirming our full year
revenue and expense guidance for 2022 but see potential upside to
our revenue expectations given the performance of our growth
initiatives and macro trading environment. Furthermore, I am
excited to introduce our enhanced reporting structure, with the
updated income statement reflecting how we think about our major
categories of the business: cash and spot markets, data and access
solutions, and derivatives markets. Growth from each was strong in
the first quarter with net revenues from derivatives
markets1 growing 18%, data and access
solutions1 up 18%, and cash and spot markets1
growing 5%. We are off to an incredibly strong start to 2022, and
we look forward to investing behind, and building on, the momentum
across our ecosystem."
*All comparisons are
first quarter 2022 compared to the same period in
2021. (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. (2) Specific
quantifications of the amounts that would be required to reconcile
the company's organic growth guidance, 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 revenues
and expenses that would be required to reconcile to GAAP revenues
less costs of revenues, 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 organic growth, 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. (3) ErisX is expected to
close in the second quarter of this year, subject to customary
closing conditions, and NEO is expected to close in the second or
third quarter of the year, subject to regulatory review and other
customary closing conditions.
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Consolidated First 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 March 31, 2022 and 2021.
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Table
1
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Consolidated First
Quarter Results
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1Q22
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1Q21
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($ in millions except per share)
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1Q22
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1Q21
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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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418.1
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$
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365.5
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14
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%
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$
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418.1
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$
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365.5
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14
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%
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Total Operating
Expenses
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$
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178.4
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$
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160.9
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11
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%
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$
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145.8
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$
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124.6
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17
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%
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Operating
Income
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$
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239.7
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$
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204.6
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17
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%
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$
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272.3
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$
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240.9
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13
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%
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Operating Margin
%
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57.3
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%
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56.0
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%
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1.3
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pp
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65.1
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%
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65.9
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%
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(0.8)
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pp
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Net Income Allocated to
Common Stockholders
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$
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109.2
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$
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136.8
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(20)
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%
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$
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184.3
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$
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164.8
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12
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%
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Diluted EPS
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$
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1.02
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$
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1.27
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(20)
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%
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$
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1.73
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$
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1.53
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13
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%
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EBITDA1
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$
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276.2
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$
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246.8
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12
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%
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$
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281.2
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$
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250.2
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12
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%
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EBITDA Margin
% 1
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66.1
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%
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67.5
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%
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(1.4)
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pp
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67.3
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%
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68.5
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%
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(1.2)
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pp
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- Total revenues less cost of revenues (referred to as "net
revenue") of $418.1 million increased
14 percent, compared to $365.5
million in the prior-year period, reflecting increases in
net transaction and clearing fees1 and access and
capacity fees. Inorganic net revenue1 in the first
quarter of 2022 was $8.4
million.
- Total operating expenses were $178.4
million versus $160.9 million
in the first quarter of 2021. Adjusted operating expenses¹ of
$145.8 million increased 17 percent
compared to $124.6 million in the
first quarter of 2021, primarily due to the acquisition of Cboe
Asia Pacific (formerly Chi-X Asia Pacific), which closed on
July 1, 2021, as well as an increase
in salaries and wages resulting in higher compensation and
benefits. Additionally, professional fees and outside services
increased compared to the first quarter of 2021 primarily due to
higher legal fees.
- The effective tax rate for the first quarter of 2022 was 51.3
percent (29.9 percent excluding Section 199 related
matters1) compared with 28.9 percent in the first
quarter of 2021. The increase was primarily due to the unfavorable
decision rendered by the Tax Court in our Section 199 matter. The
effective tax rate on adjusted earnings1 was 29.0
percent compared with 27.9 percent in last year's first quarter.
The higher effective tax rate in the first quarter of 2022 was
primarily due to changes in income tax reserves.
- Diluted EPS for the first quarter of 2022 decreased 20 percent
to $1.02 primarily due to
$48.5 million of additional tax
reserves, primarily related to Section 199 litigation. Adjusted
diluted EPS1 of $1.73
increased 13 percent compared to 2021's first quarter results.
Business Segment Information:
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Table
2
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Total Revenues Less
Cost of Revenues by
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Business
Segment
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(in
millions)
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1Q22
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1Q21
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Change
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Options
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$
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219.2
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$
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181.7
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21
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%
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North American
Equities
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93.1
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96.1
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(3)
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%
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Europe and Asia
Pacific
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57.5
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42.1
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37
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%
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Futures
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31.2
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30.6
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2
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%
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Global FX
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17.1
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14.7
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16
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%
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Corporate
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—
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0.3
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(100)
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%
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Total
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$
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418.1
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$
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365.5
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14
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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 $219.2
million was up $37.5 million,
or 21 percent, from the first quarter of 2021, due to double-digit
increases in net transaction and clearing fees1, access
and capacity fees, and market data. Net transaction and clearing
fees increased primarily as a result of a 27 percent increase in
Index options trading volumes versus the first quarter of 2021,
along with a 7 percent increase in Index options revenue per
contract ("RPC") for the quarter. Access and capacity fees were 22
percent higher than first quarter 2021 and market data fees
increased by 26 percent.
- Net transaction and clearing fees1 increased
$36.8 million, or 27 percent,
reflecting a 6 percent increase in total options average daily
volume ("ADV") and a 18 percent increase in total options RPC
compared to the first quarter 2021. The increase in total options
RPC was due to a mix shift, with Index options representing a
higher percentage of total options volume. The RPC for Index
options increased 7 percent as SPX options accounted for a higher
percentage of Index options volume.
- Cboe's Options business had total market share of 31.5 percent
for the first quarter of 2022 compared to 30.2 percent in the first
quarter of 2021, primarily reflecting an increase in Cboe's
multi-listed options market share for the quarter of 27.4 percent
compared to 26.9 percent in the first quarter of 2021.
North American (N.A.) Equities:
- N.A. Equities net revenue of $93.1
million was down $3.0 million,
or 3 percent, primarily due to lower transaction and clearing fees
and lower market data fees. Year-over-year growth in access and
capacity fees helped offset some of the declines in the segment.
Transaction and clearing fees were impacted by lower industry
volumes compared to outsized activity in the first quarter of 2021.
RPC increased by 8 percent compared to first quarter 2021 given a
lower percentage of low-priced retail trading in the first quarter
of 2022.
- Cboe U.S. Equities exchanges had market share of 14.3 percent
for the first quarter of 2022 compared to 15.0 percent in the first
quarter of 2021.
Europe and Asia Pacific:
- Europe and Asia Pacific net revenue of $57.5 million increased by 37 percent, reflecting
growth in European equities and clearing, and the addition of Cboe
Asia Pacific in July 2021, which
contributed $8.4 million in net
revenue. European Equities average daily notional value ("ADNV")
for the overall market was up 31 percent during the quarter and
ADNV traded on Cboe European Equities was €12.8 billion, up 71
percent from last year's first quarter. Net capture decreased 18
percent for the quarter, reflecting the strongest gains coming in
Lit market share, outpacing solid activity in higher-margin Cboe
BIDS Europe and Periodic Auction services, as well as the impact of
volume tier pricing given the higher volumes and market share.
- For the first quarter of 2022, Cboe European Equities had 21.8
percent market share, up from 16.8 percent in the first quarter of
2021, as a result of positive momentum across all orderbooks, with
a particular strength in Lit markets.
Futures:
- Futures net revenue of $31.2
million increased $0.6
million, or 2 percent, due to slight increases in net
transaction and clearing fees1, access and capacity
fees, and market data.
- Net transaction and clearing fees¹ increased $0.2 million, or 1 percent, reflecting relatively
flat ADV and RPC.
Global FX:
- Global FX net revenue of $17.1
million increased 16 percent, primarily as a result of
higher net transaction and clearing fees¹. ADNV traded on the Cboe
FX platform was $42.0 billion for the
quarter, up 13 percent compared to last year's first quarter and
net capture per one million dollars
traded was $2.67 for the quarter, up
1 percent compared to $2.65 in the
first quarter of 2021.
- Cboe FX market share was 17.3 percent for the quarter compared
to 16.5 percent in last year's first 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.
|
Income Statement Presentation Enhancement
Beginning in the first quarter of 2022, Cboe updated the
financial statement captions within its condensed consolidated
statements of income for both periods presented to better reflect
the company's diversified products, expansive geographical reach,
and overall business strategy. Below is a summary of the changes to
the financial statement captions. The changes do not have a
financial impact on Cboe's reported revenue, revenues less cost of
revenues, reported net income, or cash flows from operations.
Revenues
- Cash and spot markets – includes associated transaction and
clearing fees, the portion of market data fees relating to
associated U.S. tape plan market data fees, associated regulatory
fees, and associated other revenue from Cboe's North American
Equities, Europe and Asia Pacific, and Global FX segments.
- Data and access solutions – includes access and capacity fees,
proprietary market data fees, and associated other revenue across
Cboe's five segments.
- Derivatives markets – includes associated transaction and
clearing fees, the portion of market data fees relating to
associated U.S. tape plan market data fees, associated regulatory
fees, and associated other revenue from Cboe's Options, Futures,
and Europe and Asia Pacific segments.
Cost of Revenues
- Royalty fees and other cost of revenues – includes royalty fees
and other cost of revenues across Cboe's five segments.
The corresponding changes have been made to prior periods to
conform to the current presentation.
2022 Fiscal Year Financial Guidance
Cboe provided guidance for the 2022 fiscal year as noted below.
Unless explicitly noted below, this guidance does not take into
account the company's planned acquisitions of ErisX (which is
expected to close in the second quarter of this year, subject to
customary closing conditions) and NEO, (expected to close in the
second or third quarter of the year, subject to regulatory review
and other customary closing conditions). The company plans to
further update its guidance for 2022 after the acquisitions
close.
- Reaffirmed total organic net revenue growth1 is
expected to be in the range of 5 to 7 percentage points in
2022.
- Revenue from acquisitions held less than a year1 is
now expected to contribute total net revenue growth in a range of 2
to 3 percentage points in 2022, up from previous guidance of 1 to 3
percentage points.
- Organic net revenue1 from Data and Access Solutions
is now expected to increase by approximately 8 to 11 percent in
2022, from a base of $419 million in
2021, up from previous guidance of 7 to 10 percent.
- Reaffirmed adjusted operating expenses1 in 2022 are
expected to be in the range of $617
to $625 million, from a base of
$531 million in 2021. The 2022
guidance considers incremental investment spend in technology and
headcount to support Cboe's numerous growth initiatives, deals
closed during 2021 but not fully reflected in the 2021 cost base,
and increases in core expenses. The guidance excludes the expected
amortization of acquired intangible assets of $116 million; the company plans to reflect the
exclusion of this amount in its non-GAAP
reconciliation.1
- While not included in our formal 2022 expense guidance range
of $617 to $625 million, we believe the pending acquisitions
of ErisX and NEO now have the potential to add an incremental
$30 to $35
million of expenses in 2022, contingent on the timing of
closings which are subject to customary closing conditions. We
continue to anticipate a potential revenue offset for more than
half of the expenses in year one, with an expectation that the
additions are EBITDA positive on a combined basis in year
two.
- Reaffirmed depreciation and amortization expense for 2022,
which is included in adjusted operating expenses above, is expected
to be in the range of $40 to
$44 million, excluding the expected
amortization of acquired intangible assets.
- Reaffirmed the effective tax rate1 on adjusted
earnings for the full year 2022 is expected to be in the range of
27.5 to 29.5 percent. Significant changes in trading volume,
expenses, tax laws or rates and other items could materially impact
this expectation.
- Reaffirmed capital expenditures for 2022 are expected to be in
the range of $47 to $52 million.
(1) Specific
quantifications of the amounts that would be required to reconcile
the company's organic and inorganic growth guidance, 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
revenues and expenses that would be required to reconcile to GAAP
revenues less costs of revenues, 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 organic growth, 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
At March 31, 2022, the company had
adjusted cash1 of $660.0
million. Total debt as of March 31,
2022 was $1,593.6 million.
The company paid cash dividends of $51.4
million, or $0.48 per share,
during the first quarter of 2022 and utilized $70.0 million to repurchase 0.6 million shares of
its common stock under its share repurchase program at an average
price of $117.25 per share. As of
March 31, 2022, the company had
approximately $248.9 million of
availability remaining under its existing share repurchase
authorizations.
Earnings Conference Call
Executives of Cboe Global Markets will host a conference call to
review its first-quarter financial results today, April 29, 2022, 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, April 29, 2022,
through 11:00 p.m. CT, May 6,
2022, by calling (877) 344–7529 from the U.S., (855)
669–9658 from Canada or (412)
317–0088 for international callers, using replay code 10160639.
(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.
|
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), a leading provider of market
infrastructure and tradable products, delivers cutting-edge
trading, clearing and investment solutions to market participants
around the world. The Company is committed to operating a trusted,
inclusive global marketplace, and to providing leading products,
technology and data solutions that enable participants to define a
sustainable financial future. Cboe provides trading solutions and
products in multiple asset classes, including equities, derivatives
and FX, across North America,
Europe, and Asia Pacific. To learn more,
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 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
or clearing volumes, market data fees or a shift in the mix of
products traded on our exchanges; legislative or regulatory changes
or changes in tax regimes; our ability to protect our systems and
communication networks from security risks, cybersecurity risks,
insider threats and unauthorized disclosure of confidential
information; our ability to attract and retain skilled management
and other personnel; increasing competition by foreign and domestic
entities; our dependence on and exposure to risk from third
parties; fluctuations to currency exchange rates; factors that
impact the quality and integrity of our indices; the impact of the
novel coronavirus ("COVID-19") pandemic; 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 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; our ability to maintain
BIDS Trading as an independently managed and operated trading
venue, separate from and not integrated with our registered
national securities exchanges; 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 and our ability to
make payments on or refinance our debt obligations; our ability to
maintain an investment grade credit rating; impairment of our
goodwill, long-lived assets, investments or intangible assets; the
accuracy of our estimates and expectations; litigation risks and
other liabilities; and if the acquisition of ErisX is consummated,
operating a digital asset business. 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,
2021 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.
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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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Kenneth Hill,
CFA
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(646)
856–8734
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+44 (0) 7593 506
719
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(312)
786–7559
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atu@cboe.com
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tcave@cboe.com
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khill@cboe.com
|
CBOE-F
Trademarks:
Cboe®, Cboe Global Markets®, Cboe Volatility
Index®, Bats®, BIDS Trading®,
BZX®, BYX®, Chi-X®,
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.
Key Performance
Statistics by Business Segment
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|
1Q
2022
|
4Q 2021
|
3Q
2021
|
2Q
2021
|
1Q
2021
|
Options
|
|
|
|
|
|
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|
|
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|
|
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|
|
Total industry ADV (in
thousands)
|
|
|
42,464
|
|
|
40,794
|
|
|
37,548
|
|
|
36,442
|
|
|
41,974
|
|
Total company
Options ADV (in thousands)
|
|
|
13,392
|
|
|
12,694
|
|
|
11,764
|
|
|
11,092
|
|
|
12,681
|
|
Multi-listed options
|
|
|
10,978
|
|
|
10,527
|
|
|
9,794
|
|
|
9,254
|
|
|
10,779
|
|
Index options
|
|
|
2,414
|
|
|
2,167
|
|
|
1,970
|
|
|
1,838
|
|
|
1,902
|
|
Total Options market
share
|
|
|
31.5
|
%
|
|
31.1
|
%
|
|
31.3
|
%
|
|
30.4
|
%
|
|
30.2
|
%
|
Multi-listed options
|
|
|
27.4
|
%
|
|
27.3
|
%
|
|
27.6
|
%
|
|
26.8
|
%
|
|
26.9
|
%
|
Index options
|
|
|
99.1
|
%
|
|
98.6
|
%
|
|
98.4
|
%
|
|
98.7
|
%
|
|
99.0
|
%
|
Total Options
RPC:
|
|
$
|
0.210
|
|
$
|
0.199
|
|
$
|
0.200
|
|
$
|
0.192
|
|
$
|
0.177
|
|
Multi-listed options
|
|
$
|
0.067
|
|
$
|
0.066
|
|
$
|
0.069
|
|
$
|
0.067
|
|
$
|
0.067
|
|
Index options
|
|
$
|
0.857
|
|
$
|
0.845
|
|
$
|
0.850
|
|
$
|
0.823
|
|
$
|
0.803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Equities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Equities - Exchange:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total industry ADV (shares in billions)
|
|
|
12.9
|
|
|
10.8
|
|
|
9.8
|
|
|
10.5
|
|
|
14.7
|
|
Market share %
|
|
|
14.3
|
%
|
|
13.3
|
%
|
|
14.0
|
%
|
|
14.3
|
%
|
|
15.0
|
%
|
Net
capture (per 100 touched shares)
|
|
$
|
0.017
|
|
$
|
0.025
|
|
$
|
0.020
|
|
$
|
0.020
|
|
$
|
0.015
|
|
U.S. Equities - Off-Exchange:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV
(touched shares, in millions)
|
|
|
108.5
|
|
|
84.2
|
|
|
73.0
|
|
|
75.8
|
|
|
99.5
|
|
Off-Exchange ATS Block Market Share % (reported on a
two-month lag)
|
|
|
23.9
|
%
|
|
22.5
|
%
|
|
22.9
|
%
|
|
21.8
|
%
|
|
21.9
|
%
|
Net
capture (per 100 touched shares)
|
|
$
|
0.117
|
|
$
|
0.115
|
|
$
|
0.122
|
|
$
|
0.123
|
|
$
|
0.121
|
|
Canadian Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV
(matched shares, in millions)
|
|
|
41.1
|
|
|
41.3
|
|
|
37.8
|
|
|
47.4
|
|
|
71.4
|
|
Total market share %
|
|
|
3.2
|
%
|
|
3.3
|
%
|
|
3.4
|
%
|
|
3.4
|
%
|
|
3.1
|
%
|
Market share % - TSX listed volume
|
|
|
4.3
|
%
|
|
4.7
|
%
|
|
4.7
|
%
|
|
4.9
|
%
|
|
4.6
|
%
|
Net
capture (per 10,000 shares, in Canadian Dollars)
|
|
$
|
9.131
|
|
$
|
8.475
|
|
$
|
8.342
|
|
$
|
7.782
|
|
$
|
7.184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe and Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total industry ADNV (Euros - in billions)
|
|
€
|
58.7
|
|
€
|
44.0
|
|
€
|
39.6
|
|
€
|
42.0
|
|
€
|
44.8
|
|
Market share %
|
|
|
21.8
|
%
|
|
19.8
|
%
|
|
18.2
|
%
|
|
17.4
|
%
|
|
16.8
|
%
|
Net
capture (bps)
|
|
€
|
0.233
|
|
€
|
0.256
|
|
€
|
0.264
|
|
€
|
0.267
|
|
€
|
0.284
|
|
EuroCCP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trades cleared (in thousands)
|
|
|
454,437.8
|
|
|
345,074.8
|
|
|
306,085.2
|
|
|
294,801.9
|
|
|
298,223.5
|
|
Fee
per trade cleared
|
|
€
|
0.009
|
|
€
|
0.011
|
|
€
|
0.010
|
|
€
|
0.011
|
|
€
|
0.011
|
|
Net
settlement volume (shares in thousands)
|
|
|
2,802.1
|
|
|
2,664.9
|
|
|
2,484.1
|
|
|
2,367.3
|
|
|
2,423.2
|
|
Net
fee per settlement
|
|
€
|
0.924
|
|
€
|
0.860
|
|
€
|
0.869
|
|
€
|
0.893
|
|
€
|
0.865
|
|
Australian Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADNV (AUD billions)
|
|
$
|
0.9
|
|
$
|
0.8
|
|
$
|
0.8
|
|
|
N/A
|
|
|
N/A
|
|
Market share - Continuous
|
|
|
15.8
|
%
|
|
16.1
|
%
|
|
15.7
|
%
|
|
N/A
|
|
|
N/A
|
|
Net
capture (per matched notional value (bps))
|
|
$
|
0.173
|
|
$
|
0.171
|
|
$
|
0.173
|
|
|
N/A
|
|
|
N/A
|
|
Japanese Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADNV (JPY billions)
|
|
¥
|
164.6
|
|
¥
|
111.4
|
|
¥
|
88.7
|
|
|
N/A
|
|
|
N/A
|
|
Market share - Lit Continuous
|
|
|
3.8
|
%
|
|
2.9
|
%
|
|
2.4
|
%
|
|
N/A
|
|
|
N/A
|
|
Net
capture (per matched notional value (bps))
|
|
¥
|
0.228
|
|
¥
|
0.358
|
|
¥
|
0.364
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV (in
thousands)
|
|
|
254
|
|
|
230
|
|
|
223
|
|
|
214
|
|
|
256
|
|
RPC
|
|
$
|
1.637
|
|
$
|
1.651
|
|
$
|
1.626
|
|
$
|
1.648
|
|
$
|
1.639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spot market share
%
|
|
|
17.3
|
%
|
|
16.8
|
%
|
|
17.0
|
%
|
|
16.3
|
%
|
|
16.5
|
%
|
ADNV ($ in
billions)
|
|
$
|
42.0
|
|
$
|
33.7
|
|
$
|
32.4
|
|
$
|
32.5
|
|
$
|
37.1
|
|
Net capture (per one
million dollars traded)
|
|
$
|
2.67
|
|
$
|
2.77
|
|
$
|
2.77
|
|
$
|
2.71
|
|
$
|
2.65
|
|
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.
Touched volume represents the total number of shares of equity
securities and ETFs internally matched on our exchanges or routed
to and executed on an external market center.
Matched volume represents the total number of shares of equity
securities and ETFs executed on our exchanges.
U.S. Equities - Exchange, "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. U.S. Equities – Off-Exchange data reflects BIDS
Trading. For U.S. Equities – Off-Exchange, "net capture per 100
touched shares" refers to transaction fees less order and execution
management system (OMS/EMS) fees and clearing costs divided by the
product of one-hundredth ADV of touched shares on BIDS Trading and
the number of trading days for the period.
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 ADNV in British pounds of shares
matched on Cboe Europe Equities and the number of trading days.
"Trades cleared" refers to the total number of non-interoperable
trades cleared, "Fee per trade cleared" refers to clearing fees
divided by number of non-interoperable trades cleared, "Net
settlement volume" refers to the total number of settlements
executed after netting, and "Net fee per settlement" refers to
settlement fees less direct costs incurred to settle divided by the
number of settlements executed after netting. Asia Pacific data reflects the acquisition of
Cboe Asia Pacific (formerly Chi-X Asia Pacific) effective
July 1, 2021. Australian Equities
"Net capture per matched notional value" refers to transaction fees
less liquidity payments in Australian dollars divided by the
product of ADNV in Australian dollars of shares matched on Cboe
Australia and the number of Australian Equities trading days.
Japanese Equities "Net capture per matched notional value" refers
to transaction fees less liquidity payments in Japanese Yen divided
by the product of ADNV in Japanese Yen of shares matched on Cboe
Japan and the number of Japanese Equities trading days.
Global FX, "net capture per one million
dollars traded" refers to transaction fees less liquidity
payments, if any, divided by the Spot and SEF products of
one-thousandth of ADNV traded on the Cboe FX Markets and the number
of trading days, divided by 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 Ended
March 31, 2022 and 2021
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March 31,
|
(in millions, except
per share amounts)
|
|
2022
|
|
2021
|
Revenue:
|
|
|
|
|
|
|
Cash and spot
markets
|
|
$
|
461.9
|
|
$
|
548.9
|
Data and access
solutions
|
|
|
118.9
|
|
|
100.6
|
Derivatives
markets
|
|
|
393.7
|
|
|
361.3
|
Total
Revenues
|
|
|
974.5
|
|
|
1,010.8
|
Cost of
Revenues:
|
|
|
|
|
|
|
Liquidity
payments
|
|
|
467.5
|
|
|
501.8
|
Routing and
clearing
|
|
|
22.3
|
|
|
27.1
|
Section 31
fees
|
|
|
35.7
|
|
|
91.9
|
Royalty fees
|
|
|
26.3
|
|
|
20.3
|
Other cost of
revenues
|
|
|
4.6
|
|
|
4.2
|
Total Cost of
Revenues
|
|
|
556.4
|
|
|
645.3
|
Revenues Less Cost
of Revenues
|
|
|
418.1
|
|
|
365.5
|
Operating
Expenses:
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
81.2
|
|
|
72.3
|
Depreciation and
amortization
|
|
|
40.9
|
|
|
42.0
|
Technology support
services
|
|
|
19.2
|
|
|
17.2
|
Professional fees and
outside services
|
|
|
19.7
|
|
|
15.6
|
Travel and promotional
expenses
|
|
|
2.9
|
|
|
1.6
|
Facilities
costs
|
|
|
6.5
|
|
|
5.3
|
Acquisition-related
costs
|
|
|
2.0
|
|
|
3.4
|
Other
expenses
|
|
|
6.0
|
|
|
3.5
|
Total Operating
Expenses
|
|
|
178.4
|
|
|
160.9
|
Operating
Income
|
|
|
239.7
|
|
|
204.6
|
Non-operating
(Expenses) Income:
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(10.8)
|
|
|
(12.3)
|
Other (expense) income,
net
|
|
|
(4.0)
|
|
|
0.6
|
Total Non-operating
Expenses
|
|
|
(14.8)
|
|
|
(11.7)
|
Income Before Income
Tax Provision
|
|
|
224.9
|
|
|
192.9
|
Income tax
provision
|
|
|
115.3
|
|
|
55.7
|
Net
Income
|
|
|
109.6
|
|
|
137.2
|
Net income allocated to
participating securities
|
|
|
(0.4)
|
|
|
(0.4)
|
Net Income Allocated
to Common Stockholders
|
|
$
|
109.2
|
|
$
|
136.8
|
Net Income Per Share
Allocated to Common Stockholders:
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.02
|
|
$
|
1.27
|
Diluted earnings per
share
|
|
|
1.02
|
|
|
1.27
|
Weighted average shares
used in computing income per share:
|
|
|
|
|
|
|
Basic
|
|
|
106.6
|
|
|
107.3
|
Diluted
|
|
|
106.8
|
|
|
107.4
|
Cboe Global
Markets, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets (Unaudited)
March 31, 2022 and
2021
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
(in
millions)
|
|
2022
|
|
2021
|
Assets
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
659.4
|
|
$
|
341.9
|
Financial
investments
|
|
|
48.7
|
|
|
37.1
|
Accounts receivable,
net
|
|
|
380.3
|
|
|
326.9
|
Margin deposits and
clearing funds
|
|
|
1,810.3
|
|
|
745.9
|
Income taxes
receivable
|
|
|
—
|
|
|
42.7
|
Other current
assets
|
|
|
36.5
|
|
|
36.8
|
Total Current
Assets
|
|
|
2,935.2
|
|
|
1,531.3
|
|
|
|
|
|
|
|
Investments
|
|
|
244.5
|
|
|
245.8
|
Land
|
|
|
2.3
|
|
|
2.3
|
Property and equipment,
net
|
|
|
106.7
|
|
|
105.2
|
Operating lease right
of use assets
|
|
|
122.5
|
|
|
110.1
|
Goodwill
|
|
|
3,018.1
|
|
|
3,025.4
|
Intangible assets,
net
|
|
|
1,628.6
|
|
|
1,668.6
|
Other assets,
net
|
|
|
140.2
|
|
|
125.8
|
Total
Assets
|
|
$
|
8,198.1
|
|
$
|
6,814.5
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
387.1
|
|
$
|
295.4
|
Section 31 fees
payable
|
|
|
36.2
|
|
|
40.8
|
Deferred
revenue
|
|
|
26.4
|
|
|
15.2
|
Margin deposits and
clearing funds
|
|
|
1,810.3
|
|
|
745.9
|
Income taxes
payable
|
|
|
32.5
|
|
|
8.2
|
Current portion of
contingent consideration liabilities
|
|
|
48.6
|
|
|
63.8
|
Total Current
Liabilities
|
|
|
2,341.1
|
|
|
1,169.3
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,593.6
|
|
|
1,299.3
|
Unrecognized tax
benefits
|
|
|
163.0
|
|
|
197.9
|
Deferred income
taxes
|
|
|
352.4
|
|
|
372.7
|
Non-current operating
lease liabilities
|
|
|
141.3
|
|
|
129.2
|
Contingent
consideration liabilities
|
|
|
4.7
|
|
|
6.7
|
Other non-current
liabilities
|
|
|
34.7
|
|
|
34.6
|
Total
Liabilities
|
|
|
4,630.8
|
|
|
3,209.7
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Preferred
stock
|
|
|
—
|
|
|
—
|
Common stock
|
|
|
1.1
|
|
|
1.1
|
Treasury stock at
cost
|
|
|
(185.2)
|
|
|
(106.8)
|
Additional paid-in
capital
|
|
|
1,518.6
|
|
|
1,509.4
|
Retained
earnings
|
|
|
2,203.7
|
|
|
2,145.5
|
Accumulated other
comprehensive income, net
|
|
|
29.1
|
|
|
55.6
|
Total Stockholders'
Equity
|
|
|
3,567.3
|
|
|
3,604.8
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
8,198.1
|
|
$
|
6,814.5
|
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, inorganic
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, inorganic net revenue, organic
non-transaction revenue and organic net revenue guidance: These
are non-GAAP financial measures that exclude or have otherwise been
adjusted for the impact of our acquisitions for the period or
guidance, as applicable. Management believes the organic net
revenue growth and guidance measures provide users with
supplemental information regarding the company's ongoing and future
potential revenue performances and trends by presenting revenue
growth and guidance excluding the impact of the acquisitions.
Revenues from acquisitions that have been owned for at least one
year are considered organic and are no longer excluded from organic
net revenue from either period for comparative purposes.
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
|
|
(in
millions)
|
|
March 31,
|
|
Reconciliation of
Revenue Less Cost of Revenue to Organic Net Revenue
|
|
2022
|
|
2021
|
|
Revenues less cost of
revenues (net revenue)
|
|
$
|
418.1
|
|
$
|
365.5
|
|
Less
acquisitions:
|
|
|
|
|
|
|
|
Acquisition revenue less cost of revenues (inorganic net
revenue)
|
|
$
|
(8.4)
|
|
$
|
—
|
|
Organic net
revenue
|
|
$
|
409.7
|
|
$
|
365.5
|
|
Reconciliation of
GAAP and non-GAAP Information
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Table
4
|
|
March 31,
|
|
(in millions, except
per share amounts)
|
|
2022
|
|
2021
|
|
Reconciliation of
Net Income Allocated to Common Stockholders to Non-GAAP (As shown
on Table 1)
|
|
|
|
|
|
|
|
Net income allocated to
common stockholders
|
|
$
|
109.2
|
|
$
|
136.8
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
Acquisition-related expenses (1)
|
|
|
2.0
|
|
|
3.4
|
|
Investment establishment costs (2)
|
|
|
3.0
|
|
|
—
|
|
Amortization of acquired intangible assets (3)
|
|
|
30.6
|
|
|
32.9
|
|
Total Non-GAAP adjustments
|
|
|
35.6
|
|
|
36.3
|
|
Income tax expense related to the items above
|
|
|
(8.7)
|
|
|
(8.2)
|
|
Tax
reserves (4)
|
|
|
48.5
|
|
|
—
|
|
Net income allocated to
participating securities - effect on reconciling
items
|
|
|
(0.3)
|
|
|
(0.1)
|
|
Adjusted net income
allocated to common stockholders
|
|
$
|
184.3
|
|
$
|
164.8
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted EPS to Non-GAAP
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
1.02
|
|
$
|
1.27
|
|
Per share impact of
non-GAAP adjustments noted above
|
|
|
0.71
|
|
|
0.26
|
|
Adjusted diluted
earnings per common share
|
|
$
|
1.73
|
|
$
|
1.53
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Margin to Non-GAAP
|
|
|
|
|
|
|
|
Revenue less cost of
revenue
|
|
$
|
418.1
|
|
$
|
365.5
|
|
Non-GAAP adjustments
noted above
|
|
|
—
|
|
|
—
|
|
Adjusted revenue
less cost of revenue
|
|
$
|
418.1
|
|
$
|
365.5
|
|
Operating expenses
(5)
|
|
$
|
178.4
|
|
$
|
160.9
|
|
Non-GAAP adjustments
noted above
|
|
|
32.6
|
|
|
36.3
|
|
Adjusted operating
expenses
|
|
$
|
145.8
|
|
$
|
124.6
|
|
Operating
income
|
|
$
|
239.7
|
|
$
|
204.6
|
|
Non-GAAP adjustments
noted above
|
|
|
32.6
|
|
|
36.3
|
|
Adjusted operating
income
|
|
$
|
272.3
|
|
$
|
240.9
|
|
Adjusted operating
margin (6)
|
|
|
65.1
|
%
|
|
65.9
|
%
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Rate to Non-GAAP
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
224.9
|
|
|
192.9
|
|
Non-GAAP adjustments
noted above
|
|
|
35.6
|
|
|
36.3
|
|
Adjusted income
before income taxes
|
|
$
|
260.5
|
|
$
|
229.2
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
115.3
|
|
|
55.7
|
|
Non-GAAP adjustments
noted above
|
|
|
(39.8)
|
|
|
8.2
|
|
Adjusted income tax
expense
|
|
$
|
75.5
|
|
$
|
63.9
|
|
Adjusted income tax
rate
|
|
|
29.0
|
%
|
|
27.9
|
%
|
|
(1) This amount
includes professional fees and outside services and impairment
charges related to the company's acquisitions.
|
(2) This amount
represents the investment establishment costs related to the
company's investment in 7RIDGE Investments 3 LP, which acquired
Trading Technologies, Inc.
|
(3) This amount
represents the amortization of acquired intangible assets related
to the company's acquisitions.
|
(4) This amount
represents the tax reserves related to Section 199
matters.
|
(5) The company
sponsors deferred compensation plans held in a trust. The expenses
or income related to the deferred compensation plans are included
in "Compensation and benefits" ($0.6 million and $0.4 million in
expense for the three months ended March 31, 2022 and 2021,
respectively), and are directly offset by deferred compensation
income, expenses and dividends included within "Other income, net"
($0.6 million and $0.4 million in income, expense and dividends in
the three months ended March 31, 2022 and 2021, respectively, on
the condensed consolidated statements of income. The deferred
compensation plans' expenses are not excluded from "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 and investment establishment
costs. 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
|
|
(in millions, except
percentages)
|
|
March 31,
|
|
Reconciliation of
Net Income Allocated to Common Stockholders to EBITDA and Adjusted
EBITDA (Per Table 1)
|
|
2022
|
|
2021
|
|
Net income allocated
to common stockholders
|
|
$
|
109.2
|
|
$
|
136.8
|
|
Interest expense,
net
|
|
|
10.8
|
|
|
12.3
|
|
Income tax
provision
|
|
|
115.3
|
|
|
55.7
|
|
Depreciation and
amortization
|
|
|
40.9
|
|
|
42.0
|
|
EBITDA
|
|
$
|
276.2
|
|
$
|
246.8
|
|
EBITDA
Margin
|
|
|
66.1
|
%
|
|
67.5
|
%
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
not included in above line items
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
|
2.0
|
|
|
3.4
|
|
Investment
establishment costs
|
|
|
3.0
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
281.2
|
|
$
|
250.2
|
|
Adjusted EBITDA
Margin
|
|
|
67.3
|
%
|
|
68.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
|
|
|
|
|
|
|
|
(in
millions)
|
|
March 31,
|
|
December 31,
|
|
Reconciliation of
Cash and cash equivalents to Adjusted Cash
|
|
2022
|
|
2021
|
|
Cash and cash
equivalents
|
|
$
|
659.4
|
|
$
|
341.9
|
|
Financial
investments
|
|
|
48.7
|
|
|
37.1
|
|
Less deferred
compensation plan assets
|
|
|
(27.4)
|
|
|
(28.0)
|
|
Less cash collected for
Section 31 Fees
|
|
|
(20.7)
|
|
|
(25.9)
|
|
Adjusted
Cash
|
|
$
|
660.0
|
|
$
|
325.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Transaction and Clearing Fees by Business Segment –Three Months
Ended March 31, 2022 and 2021
|
|
Consolidated
|
|
Options
|
|
N.A.
Equities
|
|
Europe and Asia
Pacific
|
|
Futures
|
|
Global
FX
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Transaction and
clearing fees
|
$
|
769.6
|
|
$
|
763.2
|
|
$
|
348.3
|
|
$
|
308.7
|
|
$
|
330.8
|
|
$
|
381.8
|
|
$
|
50.1
|
|
$
|
34.7
|
|
$
|
25.8
|
|
$
|
25.6
|
|
$
|
14.6
|
|
$
|
12.4
|
Liquidity
payments
|
|
(467.5)
|
|
|
(501.8)
|
|
|
(167.6)
|
|
|
(166.0)
|
|
|
(288.3)
|
|
|
(330.5)
|
|
|
(11.6)
|
|
|
(5.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Routing and
clearing
|
|
(22.3)
|
|
|
(27.1)
|
|
|
(6.7)
|
|
|
(5.5)
|
|
|
(10.5)
|
|
|
(17.3)
|
|
|
(4.9)
|
|
|
(4.3)
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
Net transaction and
clearing fees
|
$
|
279.8
|
|
$
|
234.3
|
|
$
|
174.0
|
|
$
|
137.2
|
|
$
|
32.0
|
|
$
|
34.0
|
|
$
|
33.6
|
|
$
|
25.1
|
|
$
|
25.8
|
|
$
|
25.6
|
|
$
|
14.4
|
|
$
|
12.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Revenue by Revenue Caption –Three Months Ended March 31, 2022
and 2021
|
|
Cash and Spot
Markets
|
|
Data and Access
Solutions
|
|
Derivatives
Markets
|
|
Total
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Transaction and
clearing fees
|
$
|
395.5
|
|
$
|
428.9
|
|
$
|
—
|
|
$
|
—
|
|
$
|
374.1
|
|
$
|
334.3
|
|
$
|
769.6
|
|
$
|
763.2
|
Access and capacity
fees
|
|
—
|
|
|
—
|
|
|
77.9
|
|
|
66.4
|
|
|
—
|
|
|
—
|
|
|
77.9
|
|
|
66.4
|
Market data
fees
|
|
22.9
|
|
|
26.9
|
|
|
39.6
|
|
|
29.7
|
|
|
8.2
|
|
|
7.2
|
|
|
70.7
|
|
|
63.8
|
Regulatory
fees
|
|
31.9
|
|
|
82.4
|
|
|
—
|
|
|
—
|
|
|
10.7
|
|
|
19.1
|
|
|
42.6
|
|
|
101.5
|
Other
revenue
|
|
11.6
|
|
|
10.7
|
|
|
1.4
|
|
|
4.5
|
|
|
0.7
|
|
|
0.7
|
|
|
13.7
|
|
|
15.9
|
Total
revenues
|
$
|
461.9
|
|
$
|
548.9
|
|
$
|
118.9
|
|
$
|
100.6
|
|
$
|
393.7
|
|
$
|
361.3
|
|
$
|
974.5
|
|
$
|
1,010.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity
payments
|
$
|
299.6
|
|
$
|
335.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
167.9
|
|
$
|
166.0
|
|
$
|
467.5
|
|
$
|
501.8
|
Routing and clearing
fees
|
|
15.6
|
|
|
21.6
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
|
5.5
|
|
|
22.3
|
|
|
27.1
|
Section 31
fees
|
|
31.8
|
|
|
82.0
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
9.9
|
|
|
35.7
|
|
|
91.9
|
Royalty fees and other
cost of revenues
|
|
4.6
|
|
|
4.2
|
|
|
2.4
|
|
|
2.0
|
|
|
23.9
|
|
|
18.3
|
|
|
30.9
|
|
|
24.5
|
Total cost of
revenues
|
$
|
351.6
|
|
$
|
443.6
|
|
$
|
2.4
|
|
$
|
2.0
|
|
$
|
202.4
|
|
$
|
199.7
|
|
$
|
556.4
|
|
$
|
645.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues less cost
of revenues (net revenue)
|
$
|
110.3
|
|
$
|
105.3
|
|
$
|
116.5
|
|
$
|
98.6
|
|
$
|
191.3
|
|
$
|
161.6
|
|
$
|
418.1
|
|
$
|
365.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition revenue
less cost of revenues (inorganic net revenue)
|
|
(2.4)
|
|
|
—
|
|
|
(6.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.4)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic net
revenue
|
$
|
107.9
|
|
$
|
105.3
|
|
$
|
110.5
|
|
$
|
98.6
|
|
$
|
191.3
|
|
$
|
161.6
|
|
$
|
409.7
|
|
$
|
365.5
|
|
|
|
|
Table
9
|
|
|
|
Reconciliation of
GAAP Effective Tax Rate to Effective Tax Rate Excluding Section 199
Matters - Three Months Ended March 31, 2022
|
|
|
Tax
Rate
|
|
GAAP effective tax
rate
|
|
51.3
|
%
|
Tax effect of Section
199 related matters
|
|
(21.4)
|
%
|
Effective tax rate
excluding Section 199 matters
|
|
29.9
|
%
|
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