01—Abstract
Summary
Summary of the 10-Q/A filed May 2, 2013. Cited figures are marked; the original filing is the authoritative source.
Cboe Global Markets, Inc. (CBOE) reported its financial results for the nine months ended September 30, 2012, showcasing resilience despite a challenging market environment.
Total operating revenues saw a slight decrease of 1.4% to $382.3 milliona, primarily driven by a decline in transaction and access fees. However, this was partially offset by significant growth in exchange services, market data fees, and other revenues. Net income allocated to common stockholders increased by 10.2% to $116.0 million, demonstrating effective cost management and strategic initiatives.
The company maintained a strong market share of 28.4%b in exchange-traded options contracts, an increase from the prior year, attributed to implemented fee changes and incentive programs. CBOE also continued to invest in its infrastructure, including the migration of its trading platform, while actively managing its capital through dividend payments and a robust share repurchase program, returning value to shareholders. The company's liquidity remains solid, supported by cash generated from operations.
02—Key points
Key Highlights
- Net income allocated to common stockholders increased by 10.2% to $116.0 million for the nine months ended September 30, 2012, compared to $105.3 million in the prior year.
- Total operating revenues for the nine months ended September 30, 2012, were $382.3 million, a decrease of 1.4% from $387.9 million in the prior year, mainly due to lower transaction and access fees.
- CBOE's market share of total exchange-traded options contracts increased to 28.4% for the nine months ended September 30, 2012, up from 26.7% in the same period last year.
- Operating expenses decreased slightly by 0.6% to $197.9 million for the nine months ended September 30, 2012, reflecting cost management efforts.
- The company repurchased $49.7 million of its common stock under its share repurchase program during the nine months ended September 30, 2012, and paid $34.6 million in dividends.
- Cash and cash equivalents increased by $25.4 million to $160.3 million at September 30, 2012, from $134.9 million at December 31, 2011, indicating healthy operational cash generation.
- Significant growth was observed in 'Exchange services and other fees' (71.1%) and 'Market data fees' (27.7%) for the nine months ended September 30, 2012.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-Q/AQ3 FY2012filed May 2, 2013Financial Statements
Q3 FY2012 against Q3 FY2011
| Line item | Q3 FY2012Q3 FY2011 | Change |
|---|---|---|
| Revenue | $128.32M$143.60M | −10.6% |
| Operating Expenses | $67.46M$68.64M | −1.7% |
| Operating Income | $60.86M$74.97M | −18.8% |
| Net Income | $45.76M$41.33M | +10.7% |
| EPS (Basic) | $0.52$0.45 | +15.6% |
| EPS (Diluted) | $0.52$0.45 | +15.6% |
| Shares Outstanding (Basic) | 87.27M90.33M | −3.4% |
| Shares Outstanding (Diluted) | 87.27M90.33M | −3.4% |
05—Questions
Frequently Asked Questions
How did CBOE's revenue performance trend in the first nine months of 2012?
For the nine months ended September 30, 2012, CBOE's total operating revenues were $382.3 million, a slight decrease of 1.4% compared to $387.9 million in the same period of 2011. This was primarily due to lower transaction fees and access fees, although this decline was partially offset by increases in exchange services and other fees, market data fees, and other revenue.
What was the impact of the share repurchase program on CBOE's financials?
CBOE actively engaged in its share repurchase program. For the nine months ended September 30, 2012, the company purchased approximately $49.7 million of its common stock. This activity, along with dividend payments totaling $34.6 million, reflects the company's commitment to returning capital to shareholders.
How did CBOE manage its operating expenses during the period?
CBOE demonstrated effective expense management. Total operating expenses for the nine months ended September 30, 2012, decreased by 0.6% to $197.9 million compared to $199.0 million in the prior year. Key drivers of this decrease included lower trading volume incentives and royalty fees, despite increases in outside services and employee costs.
What is CBOE's liquidity position as of September 30, 2012?
CBOE maintained a strong liquidity position. Cash and cash equivalents stood at $160.3 million as of September 30, 2012, an increase of $25.4 million from $134.9 million at the end of 2011. This increase was mainly due to cash generated from operations, partially offset by tax payments, stock repurchases, and dividend payments.
06—Continue