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10-QPeriod: Q3 FY2013

Intercontinental Exchange, Inc. Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 5, 2013For Securities:ICE

Summary

Intercontinental Exchange Group, Inc. (ICE Group) filed a limited 10-Q for the period ending September 30, 2013, primarily detailing its formation and the significant upcoming acquisition of NYSE Euronext. The company itself had no operational activities, assets, or liabilities beyond those related to its incorporation and the acquisition. Financial statements reflect a minimal cash balance and debt issuance costs related to financing for the acquisition. The primary focus for investors in this filing is the progress and financing structure of the approximately $10.9 billion acquisition of NYSE Euronext, which is expected to close soon. The company has secured significant debt financing through the issuance of Senior Notes and utilization of its revolving credit facility to fund the cash portion of the transaction.

Financial Statements
Beta
Revenue$338.00M
SG&A Expenses$10.00M
Operating Expenses$136.00M
Operating Income$202.00M
Interest Expense$9.00M
Net Income$141.00M
EPS (Basic)$388000.00
EPS (Diluted)$384000.00
Shares Outstanding (Basic)365.00M
Shares Outstanding (Diluted)370.00M

Key Highlights

  • 1ICE Group was formed in March 2013 solely to facilitate the pending acquisition of NYSE Euronext, with no operational history or results as of September 30, 2013.
  • 2The company is preparing for the acquisition of NYSE Euronext, valued at approximately $10.9 billion, which is expected to be a stock and cash transaction.
  • 3ICE Group issued $1.4 billion in Senior Notes on October 8, 2013 ( $600 million of 2.50% notes due 2018 and $800 million of 4.00% notes due 2023) to help fund the acquisition.
  • 4Debt issuance costs of $1.3 million were incurred and capitalized related to the Public Senior Notes offering.
  • 5The company had minimal cash ($10) and no significant assets or liabilities beyond those directly tied to the acquisition and its financing.
  • 6The unaudited financial statements presented are for the newly formed holding company and do not reflect the historical or operational results of the pre-acquisition ICE or NYSE Euronext entities.
  • 7The filing includes standard management certifications regarding disclosure controls and procedures, confirming their effectiveness.

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