Summary
CME Group Inc. reported a decrease in revenues for the quarter and six months ended June 30, 2012, compared to the prior year, primarily due to lower clearing and transaction fees resulting from reduced contract volume. While overall expenses increased due to higher compensation, benefits, and expenses related to business ventures, the company also realized a significant gain from the formation of the S&P/Dow Jones Indices LLC. Net income attributable to CME Group and diluted earnings per share saw a notable decline year-over-year. The company's balance sheet reflects a decrease in total assets, largely driven by a reduction in cash performance bonds and guaranty fund contributions. Long-term debt remained relatively stable. Despite a challenging revenue environment, CME Group maintained strong operating margins and demonstrated improved cash flow from operations. The company's liquidity remains robust with substantial cash and cash equivalents and available credit facilities. Significant events during the period included the formation of the S&P/Dow Jones Indices LLC and the sale of Credit Market Analysis Ltd. (CMA), alongside the sale of CBOT building properties.
Financial Highlights
45 data points| Revenue | $795.90M |
| Operating Expenses | $326.70M |
| Operating Income | $469.20M |
| Net Income | $244.90M |
| EPS (Basic) | $0.74 |
| EPS (Diluted) | $0.74 |
| Shares Outstanding (Basic) | 331.08M |
| Shares Outstanding (Diluted) | 332.16M |
Key Highlights
- 1Total revenues decreased by 5% for the quarter and 6% for the six months ended June 30, 2012, driven by a decline in clearing and transaction fees due to lower contract volume.
- 2Operating expenses increased by 8% for the quarter and 6% for the six months, primarily due to higher compensation and benefits, and expenses related to new business ventures and CEO transition.
- 3A significant gain of $65.2 million was recognized in non-operating income from the formation of the S&P/Dow Jones Indices LLC and the sale of CMA.
- 4Net income attributable to CME Group decreased by 17% for the quarter and 32% for the six months compared to the prior year.
- 5Diluted earnings per share declined to $0.74 for the quarter and $1.54 for the six months, down from $0.88 and $2.24, respectively.
- 6Cash flows from operating activities increased by 14% for the six months ended June 30, 2012, reflecting improved cash generation.
- 7Total assets decreased to $37.9 billion from $40.8 billion primarily due to lower cash performance bonds and guaranty fund contributions.