CHICAGO, Feb. 5, 2021 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE) today reported financial results
for the 2020 fourth quarter and full year.
"I'm pleased to report that Cboe posted solid fourth quarter and
strong full year 2020 results, including 10 percent net revenue
growth and 11 percent adjusted EPS growth for the
year, despite an unprecedented macro environment. We continued
to execute on our ongoing strategy to leverage product innovation
and superior technology, expand our customer base and diversify our
business mix with recurring revenue," said Edward T. Tilly, Cboe Global Markets Chairman,
President and Chief Executive Officer. "We plan to continue
to advance our strategy while leveraging our recent
acquisitions to accelerate further growth. We are targeting
mid-term organic net revenue growth of 4 to 6 percentage points and
believe we can drive additional organic growth longer-term through
our ongoing investment in attractive market opportunities. I
am excited to build on the progress made by our team in 2020 to
capitalize on our strategic opportunities in 2021 and beyond and
deliver increased value to our customers and shareholders."
"We delivered strong financial results in 2020, underscoring our
ability to deliver improved earnings and cash flow generation in
various market conditions. Our 2020 results enabled us to
return $520 million of capital to
shareholders, a 69 percent increase compared to 2019 and the
highest amount ever, demonstrating one of our long-standing
objectives of returning value to shareholders through dividends and
share repurchases. To this end, we are pleased that our Board
of Directors today increased our share repurchase authorization by
$200 million," said Brian N.
Schell, Cboe Global Markets Executive Vice President,
Chief Financial Officer and Treasurer. "We plan to continue
investing in future growth, while adhering to the prudent
allocation of capital and disciplined expense management that have
long been hallmarks of Cboe."
*All comparisons are the fourth quarter or the year ended
December 31, 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.
(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 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.
Consolidated Fourth 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 December 31, 2020 and 2019.
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Table
1
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Consolidated Fourth Quarter Results
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4Q20
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4Q19
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($ in millions except per share
data)
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4Q20
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4Q19
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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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307.1
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$
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280.3
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10
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%
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$
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307.1
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$
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280.3
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10
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%
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Total Operating
Expenses
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$
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172.3
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$
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161.1
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7
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%
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$
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112.2
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$
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95.6
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17
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%
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Operating
Income
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$
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134.8
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$
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119.2
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13
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%
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$
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194.9
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$
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184.7
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6
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%
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Operating Margin
%
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43.9
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%
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42.5
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%
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140
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pp
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63.5
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%
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65.9
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%
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(240)
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pp
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Net Income Allocated to
Common Stockholders
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$
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87.1
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$
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86.1
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1
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%
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$
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130.4
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$
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134.9
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(3)
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%
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Diluted EPS
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$
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0.81
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$
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0.77
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5
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%
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$
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1.21
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$
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1.21
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(0)
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%
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EBITDA1
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$
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176.7
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$
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164.6
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7
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%
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$
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205.5
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$
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196.7
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4
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%
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EBITDA Margin
%1
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57.5
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%
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58.7
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%
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(120)
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pp
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66.9
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%
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70.2
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%
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(330)
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pp
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- Total revenues less cost of revenues (referred to as "net
revenue") of $307.1 million increased
10 percent, compared to $280.3
million in the prior-year period, primarily reflecting
increases in net transaction and clearing fees1, access
and capacity fees and market data fees. In addition to acquisitions
completed in the first half of the year, fourth 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 $172.3
million versus $161.1 million
in the fourth quarter of 2019. Adjusted operating expenses¹ of
$112.2 million increased 17 percent
compared with $95.6 million in the
fourth quarter of 2019, primarily due to acquisitions, resulting in
higher compensation and benefits and technology support
services.
- Operating income increased by 13 percent to $134.8 million and adjusted operating income¹
increased by 6 percent to $194.9
million. The operating margin for the fourth quarter was
43.9 percent versus 42.5 percent in the fourth quarter of 2019. The
adjusted operating margin was 63.5 percent compared to 65.9 percent
in the fourth quarter of 2019.
- The effective tax rate for the fourth quarter of 2020 was 29.0
percent compared with 24.4 percent in the fourth quarter of 2019
and the effective tax rate on adjusted earnings¹ was 28.6 percent
compared with 24.7 percent in last year's fourth quarter. The
higher effective tax rates in the fourth quarter of 2020 were
primarily due to the release of income tax reserves in the fourth
quarter of 2019.
- Diluted EPS for the fourth quarter of 2020 increased 5 percent
to $0.81. Adjusted diluted
EPS1 of $1.21 was flat
compared to 2019's fourth-quarter results.
- The EBITDA margin for the fourth quarter was 57.5 percent
compared to 58.7 percent in the fourth quarter of 2019. The
adjusted EBITDA margin was 66.9 percent compared to 70.2 percent
for the same period last year.
Business Segment Information:
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Table
2
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Total Revenues
Less Cost of Revenues by
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Business
Segment
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(in
millions)
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4Q20
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4Q19
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Change
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Options
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$
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162.5
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$
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139.4
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17
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%
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North American
Equities
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73.6
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75.5
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(3)
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%
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Futures
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21.5
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30.9
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(30)
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%
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European
Equities
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35.5
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21.6
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64
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%
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Global FX
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14.0
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12.9
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9
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%
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Total
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$
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307.1
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$
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280.3
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10
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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 $162.5
million was up $23.1 million,
or 17 percent, from the fourth quarter of 2019, primarily due to
increases in net transaction and clearing fees1 and
market data revenue. Market data revenue included $4.7 million contributed from acquisitions that
closed in the first half of the year.
- Net transaction and clearing fees¹ increased $15.3 million, reflecting a 41 percent increase
in total options average daily volume ("ADV"), offset somewhat by a
19 percent decrease in total options revenue per contract ("RPC")
compared to the fourth quarter 2019. The decrease in total options
RPC was due to a mix shift, with multi-listed options representing
a higher percentage of total options volume. The RPC for
multi-listed options increased 24 percent, primarily due to a shift
in concentration by customer, coupled with strategic pricing
changes. The RPC for index options increased 6 percent, primarily
reflecting a shift in the product mix, as well as pricing changes
implemented in the first quarter 2020.
- Cboe's Options business had total market share of 32.0 percent
for the fourth quarter of 2020 compared to 37.4 percent in the
fourth quarter of 2019, primarily reflecting a mix shift resulting
from a lower percentage of ADV from index options. In addition,
Cboe's multi-listed options market share for the quarter decreased
to 28.5 percent compared to 31.3 percent in the fourth quarter of
2019.
North American (N.A.) Equities:
- N.A. Equities net revenue of $73.6
million was down $1.9 million,
or 3 percent, primarily due to lower regulatory fines and
assessments, coupled with lower market data revenue, offset
somewhat by higher revenue from access and capacity fees and net
transaction and clearing fees1.
- Cboe U.S. Equities exchanges had market share of 15.1 percent
for the fourth quarter of 2020 compared to 16.4 percent in the
fourth quarter of 2019. The decrease was primarily due to record
highs in off-exchange trading volume during the fourth quarter of
2020, averaging 44 percent of total market volume compared to 38
percent in the fourth quarter of 2019.
Futures:
- Futures net revenue of $21.5
million decreased $9.4
million, or 30 percent, primarily due to a decline in net
transaction fees1.
- Net transaction and clearing fees¹ decreased $10.1 million, or 39 percent, reflecting a 30
percent decrease in ADV and a 12 percent decline in RPC. The RPC
decline was primarily due to the addition of Mini-VIX futures,
which are one-tenth the size of the standard VIX futures and have a
lower fee per contract. The RPC variance also reflects higher
volume from corporate bond index futures and associated lead market
maker incentives.
European Equities:
- European Equities net revenue of $35.5
million increased by 64 percent, primarily reflecting the
addition of EuroCCP, which contributed $10.9
million in net revenue, as well as higher net transaction
and clearing fees1 from European Equities trading.
Average daily notional value ("ADNV") for the overall market was up
7 percent during the quarter and ADNV traded on Cboe European
Equities was €6.6 billion, up 2 percent from last year's fourth
quarter, while net capture increased 4 percent.
- For the fourth quarter of 2020, Cboe European Equities had 17.5
percent market share, down from 18.4 percent in the fourth 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.
Global FX:
- Global FX net revenue of $14.0
million increased 9 percent, primarily as a result of higher
net transaction and clearing fees¹ and access and capacity fees.
ADNV traded on the Cboe FX platform was $33.7 billion for the quarter, up 12 percent from
last year's fourth quarter and net capture per one million dollars traded was $2.64 for fourth-quarter 2020, down 6 percent
compared to $2.80 in the fourth
quarter of 2019.
- Cboe FX had record market share of 16.7 percent for the quarter
compared to 16.0 percent in last year's fourth 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.
2021 Fiscal Year Financial Guidance
The company provided guidance for the 2021 fiscal year as noted
below. This guidance takes into account the company's acquisitions
completed through December 31, 2020,
including BIDS Trading; its investment in launching European
derivatives trading and clearing; investments to support the
company's growth initiatives; and one-time and non-recurring
savings recognized in 2020.
- The company expects recently closed acquisitions to contribute
net revenue growth in a range of 4 to 6 percentage points.
- Recurring non-transactional revenue, defined as access and
capacity fees plus proprietary market data, is targeted to increase
by 7 percent to 8 percent, from a base of $342 million in 2020, with organic growth
targeted in a range of 6 to 7 percent.
- Adjusted operating expenses are expected to be in the range of
$531 to $539
million. The guidance excludes the amortization of acquired
intangible assets, which is expected to be $116 million. The company plans to reflect the
exclusion of this amount in its non-GAAP reconciliation.¹
- Depreciation and amortization expense, which is included in
adjusted operating expenses above, is expected to be in the range
of $38 to $42
million, excluding the expected amortization of acquired
intangible assets of $116
million.
- The effective tax rate² on adjusted earnings for the full year
is expected to be in the range of 27.5 to 29.5 percent. 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 expected to be in the range of
$60 to $65
million, reflecting expenditures associated with the
company's planned trading floor relocation in 2021 and ongoing
capacity and technology-related investments.
Capital Management
At December 31, 2020, the company
had adjusted cash2 of $210.3
million. Total debt as of December
31, 2020 was $1,203.9
million.
The company paid cash dividends of $45.4
million, or $0.42 per share,
during the fourth quarter of 2020 and utilized $88.0 million to repurchase 1.0 million shares of
its common stock under its share repurchase program at an average
price of $86.79 per share. For the
full-year 2020, the company paid cash dividends of $170.6 million, or $1.56 per share, and utilized $349.1 million to repurchase 3.5 million shares
of its common stock under its share repurchase program at an
average price of $98.78 per
share. In addition, through January
31, 2021, the company used $0.5
million to repurchase 4,957 shares at an average price of
$91.97. The company also
announced today that its Board of Directors authorized up to an
additional $200 million in share
repurchases. This new authorization will be in addition to
any unused amount remaining under the company's existing share
repurchase authorization, resulting in approximately $399.7 million of remaining availability under
its share repurchase program.
The share repurchase program has no expiration date. The
repurchase program permits the company to purchase shares through a
variety of methods, including in the open market or through
privately negotiated transactions, in accordance with applicable
securities laws. It does not obligate the company to make any
repurchases at any specific time or situation. The timing and
extent to which the company repurchases its shares will depend
upon, among other things, market conditions, share price,
liquidity targets, regulatory requirements and other factors. Share
repurchases may be commenced or suspended at any time or from time
to time without prior notice.
Earnings Conference Call
Executives of Cboe Global Markets will host a conference call to
review its fourth-quarter financial results today, February 5, 2021, 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, February 5, 2021,
through 11:00 p.m. CT, February 12,
2021, by calling (877) 344–7529 from the U.S., (855)
669–9658 from Canada or (412)
317–0088 for international callers, using replay code 10150489.
(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.
(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.
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 clearinghouse, BIDS Trading, a
leading block-trading alternative trading system ("ATS") by volume
in the U.S., and MATCHNow, a leading equities ATS in Canada. Cboe also is 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 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; 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®, BIDS
Trading®, 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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4Q 2020
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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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Options (ADV
in thousands)
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Total industry
ADV
|
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32,197
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29,535
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28,243
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28,014
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19,492
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Total company
Options ADV
|
|
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10,299
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9,569
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9,944
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10,731
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|
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7,297
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|
Multi-listed
options
|
|
|
8,705
|
|
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8,136
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|
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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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|
Index
options
|
|
|
1,595
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1,433
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|
1,590
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|
2,663
|
|
|
1,745
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|
Total Options
Market Share
|
|
|
32.0
|
%
|
|
32.4
|
%
|
|
35.2
|
%
|
|
38.3
|
%
|
|
37.4
|
%
|
Multi-listed
options
|
|
|
28.5
|
%
|
|
29.0
|
%
|
|
31.4
|
%
|
|
31.9
|
%
|
|
31.3
|
%
|
Index
options
|
|
|
99.3
|
%
|
|
98.9
|
%
|
|
99.4
|
%
|
|
99.2
|
%
|
|
99.0
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%
|
Total Options
RPC:
|
|
$
|
0.182
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|
$
|
0.173
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$
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0.182
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|
$
|
0.234
|
|
$
|
0.225
|
|
Multi-listed
options
|
|
$
|
0.068
|
|
$
|
0.056
|
|
$
|
0.051
|
|
$
|
0.053
|
|
$
|
0.055
|
|
Index
options
|
|
$
|
0.809
|
|
$
|
0.842
|
|
$
|
0.870
|
|
$
|
0.781
|
|
$
|
0.766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Equities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total industry ADV
(shares in billions)
|
|
|
10.5
|
|
|
9.9
|
|
|
12.4
|
|
|
11.0
|
|
|
6.8
|
|
Market share
%
|
|
|
15.1
|
%
|
|
15.1
|
%
|
|
16.1
|
%
|
|
16.7
|
%
|
|
16.4
|
%
|
Net capture (per 100
touched shares)
|
|
$
|
0.015
|
|
$
|
0.017
|
|
$
|
0.025
|
|
$
|
0.026
|
|
$
|
0.023
|
|
Canadian
Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV (matched shares, in
millions)
|
|
|
45.2
|
|
|
40.0
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Total market share
%
|
|
|
3.3
|
%
|
|
3.3
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Market share % - TSX
listed volume
|
|
|
4.7
|
%
|
|
4.7
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Net capture (per 10,000
shares, in Canadian Dollars)
|
|
$
|
8.300
|
|
$
|
8.200
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV (in
thousands)
|
|
|
159
|
|
|
172
|
|
|
144
|
|
|
331
|
|
|
228
|
|
RPC
|
|
$
|
1.575
|
|
$
|
1.527
|
|
$
|
1.743
|
|
$
|
1.750
|
|
$
|
1.794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European
Equities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total industry ADNV
(Euros - in billions)
|
|
€
|
37.5
|
|
€
|
31.5
|
|
€
|
40.1
|
|
€
|
51.5
|
|
€
|
35.1
|
|
Market share
%
|
|
|
17.5
|
%
|
|
17.7
|
%
|
|
15.8
|
%
|
|
17.7
|
%
|
|
18.4
|
%
|
Net capture
(bps)
|
|
|
0.259
|
|
|
0.245
|
|
|
0.248
|
|
|
0.244
|
|
|
0.248
|
|
EuroCCP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trades cleared (in
thousands)
|
|
|
290,181.9
|
|
|
255,293.1
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Net settlement volume
(shares in thousands)
|
|
|
2,132.7
|
|
|
2,038.1
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market share
%
|
|
|
16.7
|
%
|
|
15.9
|
%
|
|
16.4
|
%
|
|
15.7
|
%
|
|
16.0
|
%
|
ADNV ($ in
billions)
|
|
$
|
33.7
|
|
$
|
30.2
|
|
$
|
31.8
|
|
$
|
43.3
|
|
$
|
30.1
|
|
Net revenue (per one
million dollars traded)
|
|
$
|
2.64
|
|
$
|
2.70
|
|
$
|
2.77
|
|
$
|
2.69
|
|
$
|
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. EuroCCP data reflects the
acquisition of EuroCCP effective July 1,
2020. "Trades cleared" refers to the total number of
non-interoperable trades cleared. "Net settlement volume" refers to
the total number of settlements executed after netting.
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
Full Year Ended December 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Twelve Months Ended
December 31,
|
(in millions, except
per share amounts)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and
clearing fees
|
|
$
|
592.7
|
|
$
|
394.2
|
|
$
|
2,418.0
|
|
$
|
1,716.2
|
Access and capacity
fees
|
|
|
62.7
|
|
|
57.3
|
|
|
236.7
|
|
|
221.9
|
Market data
fees
|
|
|
57.6
|
|
|
53.8
|
|
|
232.0
|
|
|
213.5
|
Regulatory
fees
|
|
|
120.9
|
|
|
85.2
|
|
|
500.2
|
|
|
311.7
|
Other
revenue
|
|
|
10.3
|
|
|
8.1
|
|
|
40.2
|
|
|
32.8
|
Total
Revenues
|
|
|
844.2
|
|
|
598.6
|
|
|
3,427.1
|
|
|
2,496.1
|
Cost of
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity
payments
|
|
|
386.7
|
|
|
215.5
|
|
|
1,554.1
|
|
|
964.7
|
Routing and
clearing
|
|
|
21.8
|
|
|
8.1
|
|
|
70.4
|
|
|
35.8
|
Section 31
fees
|
|
|
113.2
|
|
|
73.5
|
|
|
465.0
|
|
|
271.4
|
Royalty fees
|
|
|
19.0
|
|
|
21.0
|
|
|
83.4
|
|
|
86.8
|
Other
|
|
|
(3.6)
|
|
|
0.2
|
|
|
(0.1)
|
|
|
0.5
|
Total Cost of
Revenues
|
|
|
537.1
|
|
|
318.3
|
|
|
2,172.8
|
|
|
1,359.2
|
Revenues Less Cost
of Revenues
|
|
|
307.1
|
|
|
280.3
|
|
|
1,254.3
|
|
|
1,136.9
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
57.5
|
|
|
49.0
|
|
|
224.9
|
|
|
199.0
|
Depreciation and
amortization
|
|
|
40.5
|
|
|
42.8
|
|
|
158.5
|
|
|
176.6
|
Technology support
services
|
|
|
15.0
|
|
|
11.9
|
|
|
54.5
|
|
|
46.2
|
Professional fees and
outside services
|
|
|
17.6
|
|
|
15.4
|
|
|
60.6
|
|
|
68.3
|
Travel and promotional
expenses
|
|
|
2.4
|
|
|
3.6
|
|
|
6.6
|
|
|
11.9
|
Facilities
costs
|
|
|
4.9
|
|
|
3.2
|
|
|
17.6
|
|
|
11.0
|
Acquisition-related
costs
|
|
|
28.8
|
|
|
8.7
|
|
|
45.2
|
|
|
48.5
|
Other
expenses
|
|
|
5.6
|
|
|
26.5
|
|
|
24.2
|
|
|
38.2
|
Total Operating
Expenses
|
|
|
172.3
|
|
|
161.1
|
|
|
592.1
|
|
|
599.7
|
Operating
Income
|
|
|
134.8
|
|
|
119.2
|
|
|
662.2
|
|
|
537.2
|
Non-operating Income
(Expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(13.5)
|
|
|
(7.8)
|
|
|
(37.6)
|
|
|
(35.9)
|
Other income,
net
|
|
|
1.6
|
|
|
2.8
|
|
|
35.8
|
|
|
0.1
|
Total Non-operating
Income (Expenses)
|
|
|
(11.9)
|
|
|
(5.0)
|
|
|
(1.8)
|
|
|
(35.8)
|
Income Before Income
Tax Provision
|
|
|
122.9
|
|
|
114.2
|
|
|
660.4
|
|
|
501.4
|
Income tax
provision
|
|
|
35.6
|
|
|
27.9
|
|
|
192.2
|
|
|
130.6
|
Net
Income
|
|
|
87.3
|
|
|
86.3
|
|
|
468.2
|
|
|
370.8
|
Net loss attributable
to redeemable noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.1
|
Net Income Excluding
Redeemable Noncontrolling Interest
|
|
|
87.3
|
|
|
86.3
|
|
|
468.2
|
|
|
374.9
|
Change in redemption
value of redeemable noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
Net income allocated to
participating securities
|
|
|
(0.2)
|
|
|
(0.2)
|
|
|
(1.2)
|
|
|
(1.7)
|
Net Income Allocated
to Common Stockholders
|
|
$
|
87.1
|
|
$
|
86.1
|
|
$
|
467.0
|
|
$
|
372.7
|
Net Income Per Share
Allocated to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.81
|
|
$
|
0.78
|
|
$
|
4.28
|
|
$
|
3.35
|
Diluted earnings per
share
|
|
|
0.81
|
|
|
0.77
|
|
|
4.27
|
|
|
3.34
|
Weighted average shares
used in computing income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
107.9
|
|
|
110.9
|
|
|
109.1
|
|
|
111.4
|
Diluted
|
|
|
108.0
|
|
|
111.2
|
|
|
109.3
|
|
|
111.8
|
Cboe Global
Markets, Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
December 31, 2020
and 2019
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
(in
millions)
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
245.4
|
|
$
|
229.3
|
Financial
investments
|
|
|
92.4
|
|
|
71.0
|
Accounts receivable,
net
|
|
|
337.3
|
|
|
234.7
|
Margin deposits and
clearing funds
|
|
|
812.1
|
|
|
—
|
Income taxes
receivable
|
|
|
53.1
|
|
|
56.8
|
Other current
assets
|
|
|
26.5
|
|
|
15.8
|
Total Current
Assets
|
|
|
1,566.8
|
|
|
607.6
|
|
|
|
|
|
|
|
Investments
|
|
|
42.7
|
|
|
61.2
|
Property and
equipment, net
|
|
|
82.6
|
|
|
47.0
|
Property held for
sale
|
|
|
13.0
|
|
|
21.1
|
Operating lease right
of use assets
|
|
|
111.0
|
|
|
53.4
|
Goodwill
|
|
|
2,895.1
|
|
|
2,682.1
|
Intangible assets,
net
|
|
|
1,729.0
|
|
|
1,589.9
|
Other assets,
net
|
|
|
76.3
|
|
|
51.6
|
Total
Assets
|
|
$
|
6,516.5
|
|
$
|
5,113.9
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
250.0
|
|
$
|
171.9
|
Section 31 fees
payable
|
|
|
152.9
|
|
|
99.0
|
Deferred
revenue
|
|
|
10.2
|
|
|
4.5
|
Margin deposits and
clearing funds
|
|
|
812.1
|
|
|
—
|
Income taxes
payable
|
|
|
4.2
|
|
|
4.0
|
Current portion of
long-term debt
|
|
|
68.7
|
|
|
—
|
Current portion of
contingent consideration liabilities
|
|
|
15.2
|
|
|
2.2
|
Total Current
Liabilities
|
|
|
1,313.3
|
|
|
281.6
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,135.2
|
|
|
867.6
|
Unrecognized tax
benefits
|
|
|
164.7
|
|
|
135.9
|
Deferred income
taxes
|
|
|
377.6
|
|
|
399.7
|
Non-current operating
lease liabilities
|
|
|
132.1
|
|
|
46.7
|
Contingent
consideration liabilities
|
|
|
17.5
|
|
|
—
|
Other non-current
liabilities
|
|
|
27.2
|
|
|
26.8
|
Total
Liabilities
|
|
|
3,167.6
|
|
|
1,758.3
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Preferred
stock
|
|
|
—
|
|
|
—
|
Common
stock
|
|
|
1.2
|
|
|
1.2
|
Treasury stock at
cost
|
|
|
(1,250.4)
|
|
|
(887.1)
|
Additional
paid-in-capital
|
|
|
2,713.3
|
|
|
2,691.3
|
Retained
earnings
|
|
|
1,810.2
|
|
|
1,512.6
|
Accumulated other
comprehensive income, net
|
|
|
74.6
|
|
|
37.6
|
Total
Stockholders' Equity
|
|
|
3,348.9
|
|
|
3,355.6
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
6,516.5
|
|
$
|
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 and organic net revenue
guidance: 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.
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
|
|
Year
Ended
|
|
(in
millions)
|
|
December 31,
|
|
December 31,
|
|
Reconciliation of
Revenue Less Cost of Revenue to Organic
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues less cost of
revenues (net revenue)
|
|
$
|
307.1
|
|
$
|
280.3
|
|
$
|
1,254.3
|
|
$
|
1,136.9
|
|
Less
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition revenues
less cost of revenues
|
|
$
|
(18.1)
|
|
$
|
—
|
|
$
|
(41.4)
|
|
$
|
—
|
|
Organic net
revenue
|
|
$
|
289.0
|
|
$
|
280.3
|
|
$
|
1,212.9
|
|
$
|
1,136.9
|
|
Reconciliation of GAAP and non-GAAP Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
Table
4
|
|
December 31,
|
|
December 31,
|
|
(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
|
|
$
|
87.1
|
|
$
|
86.1
|
|
$
|
467.0
|
|
$
|
372.7
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses (1)
|
|
|
28.8
|
|
|
8.7
|
|
|
45.2
|
|
|
48.5
|
|
Provision for notes
receivable (2)
|
|
|
—
|
|
|
23.4
|
|
|
6.7
|
|
|
23.4
|
|
Bargain purchase gain
(3)
|
|
|
—
|
|
|
—
|
|
|
(32.6)
|
|
|
—
|
|
Amortization of
acquired intangible assets (4)
|
|
|
31.3
|
|
|
33.4
|
|
|
124.7
|
|
|
138.5
|
|
Change in redemption
value of noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Total Non-GAAP
adjustments
|
|
|
60.1
|
|
|
65.5
|
|
|
144.0
|
|
|
210.9
|
|
Income tax expense
related to the items above
|
|
|
(13.1)
|
|
|
(16.5)
|
|
|
(38.0)
|
|
|
(50.7)
|
|
Deferred tax
re-measurements
|
|
|
(3.6)
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
Impairment charges
attributed to noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6)
|
|
Net income allocated
to participating securities - effect on reconciling
items
|
|
|
(0.1)
|
|
|
(0.2)
|
|
|
(0.6)
|
|
|
(0.7)
|
|
Adjusted net
income allocated to common stockholders
|
|
$
|
130.4
|
|
$
|
134.9
|
|
$
|
576.5
|
|
$
|
528.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted EPS to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
0.81
|
|
$
|
0.77
|
|
$
|
4.27
|
|
$
|
3.34
|
|
Per share impact of
non-GAAP adjustments noted above
|
|
|
0.40
|
|
|
0.44
|
|
|
1.00
|
|
|
1.39
|
|
Adjusted diluted
earnings per common share
|
|
$
|
1.21
|
|
$
|
1.21
|
|
$
|
5.27
|
|
$
|
4.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Margin to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue less cost of
revenue
|
|
$
|
307.1
|
|
$
|
280.3
|
|
$
|
1,254.3
|
|
$
|
1,136.9
|
|
Non-GAAP adjustments
noted above
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted revenue
less cost of revenue
|
|
$
|
307.1
|
|
$
|
280.3
|
|
$
|
1,254.3
|
|
$
|
1,136.9
|
|
Operating expenses
(5)
|
|
$
|
172.3
|
|
$
|
161.1
|
|
$
|
592.1
|
|
$
|
599.7
|
|
Non-GAAP adjustments
noted above
|
|
|
60.1
|
|
|
65.5
|
|
|
176.6
|
|
|
210.4
|
|
Adjusted operating
expenses
|
|
$
|
112.2
|
|
$
|
95.6
|
|
$
|
415.5
|
|
$
|
389.3
|
|
Operating
income
|
|
$
|
134.8
|
|
$
|
119.2
|
|
$
|
662.2
|
|
$
|
537.2
|
|
Non-GAAP adjustments
noted above
|
|
|
60.1
|
|
|
65.5
|
|
|
176.6
|
|
|
210.4
|
|
Adjusted operating
income
|
|
$
|
194.9
|
|
$
|
184.7
|
|
$
|
838.8
|
|
$
|
747.6
|
|
Adjusted operating
margin (6)
|
|
|
63.5
|
%
|
|
65.9
|
%
|
|
66.9
|
%
|
|
65.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Rate to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
122.9
|
|
|
114.2
|
|
|
660.4
|
|
|
501.4
|
|
Non-GAAP adjustments
noted above
|
|
|
60.1
|
|
|
65.5
|
|
|
144.0
|
|
|
210.9
|
|
Adjusted income
before income taxes
|
|
$
|
183.0
|
|
$
|
179.7
|
|
$
|
804.4
|
|
$
|
712.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
35.6
|
|
|
27.9
|
|
|
192.2
|
|
|
130.6
|
|
Non-GAAP adjustments
noted above
|
|
|
16.7
|
|
|
16.5
|
|
|
33.9
|
|
|
50.7
|
|
Adjusted income
tax expense
|
|
$
|
52.3
|
|
$
|
44.4
|
|
$
|
226.1
|
|
$
|
181.3
|
|
Adjusted income
tax rate
|
|
|
28.6
|
%
|
|
24.7
|
%
|
|
28.1
|
%
|
|
25.5
|
%
|
(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" ($1.5 million and $1.2
million in expense for the three months ended December 31, 2020 and
2019, respectively, and $2.5 million and $5.0 million in the year
ended December 31, 2020 and 2019, respectively), and are directly
offset by deferred compensation income, expenses and dividends
included within "Other expense, net" ($1.5 million and $1.2 million
in income, expense and dividends in the three months ended December
31, 2020 and 2019, respectively, and $2.5 million and $5.0 million
in the year ended December 2020 and 2019, respectively), on the
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, 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
|
|
Twelve Months Ended
|
|
(in
millions)
|
|
December 31,
|
|
December 31,
|
|
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
|
|
$
|
87.1
|
|
$
|
86.1
|
|
$
|
467.0
|
|
$
|
372.7
|
|
Interest expense,
net
|
|
|
13.5
|
|
|
7.8
|
|
|
37.6
|
|
|
35.9
|
|
Income tax
provision
|
|
|
35.6
|
|
|
27.9
|
|
|
192.2
|
|
|
130.6
|
|
Depreciation and
amortization
|
|
|
40.5
|
|
|
42.8
|
|
|
158.5
|
|
|
176.6
|
|
EBITDA
|
|
$
|
176.7
|
|
$
|
164.6
|
|
$
|
855.3
|
|
$
|
715.8
|
|
EBITDA
Margin
|
|
|
57.5
|
%
|
|
58.7
|
%
|
|
68.2
|
%
|
|
63.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments not included in above line items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
|
28.8
|
|
|
8.7
|
|
|
45.2
|
|
|
48.5
|
|
Provision for notes
receivable
|
|
|
—
|
|
|
23.4
|
|
|
6.7
|
|
|
23.4
|
|
Bargain purchase
gain
|
|
|
—
|
|
|
—
|
|
|
(32.6)
|
|
|
—
|
|
Impairment charges
attributed to noncontrolling interest
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6)
|
|
Adjusted
EBITDA
|
|
$
|
205.5
|
|
$
|
196.7
|
|
$
|
874.6
|
|
$
|
784.1
|
|
Adjusted EBITDA
Margin
|
|
|
66.9
|
%
|
|
70.2
|
%
|
|
69.7
|
%
|
|
69.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
Reconciliation of
Cash and cash equivalents to Adjusted Cash
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
245.4
|
|
$
|
229.3
|
|
|
|
|
|
|
|
Financial
investments
|
|
|
92.4
|
|
|
71.0
|
|
|
|
|
|
|
|
Less deferred
compensation plan assets
|
|
|
(24.5)
|
|
|
(23.4)
|
|
|
|
|
|
|
|
Less cash collected
for Section 31 Fees
|
|
|
(103.0)
|
|
|
(69.0)
|
|
|
|
|
|
|
|
Adjusted
Cash
|
|
$
|
210.3
|
|
$
|
207.9
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Transaction and Clearing Fees - Three Months Ended December 31,
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
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Transaction and
clearing fees
|
$
|
592.7
|
|
$
|
394.2
|
|
$
|
269.9
|
|
$
|
177.2
|
|
$
|
265.1
|
|
$
|
164.3
|
|
$
|
16.0
|
|
$
|
26.1
|
|
$
|
30.0
|
|
$
|
15.6
|
|
$
|
11.7
|
|
$
|
11.0
|
Liquidity
payments
|
|
(386.7)
|
|
|
(215.5)
|
|
|
(145.0)
|
|
|
(69.8)
|
|
|
(237.0)
|
|
|
(141.4)
|
|
|
—
|
|
|
—
|
|
|
(4.7)
|
|
|
(4.3)
|
|
|
—
|
|
|
—
|
Routing and
clearing
|
|
(21.8)
|
|
|
(8.1)
|
|
|
(4.6)
|
|
|
(2.4)
|
|
|
(10.4)
|
|
|
(5.7)
|
|
|
—
|
|
|
—
|
|
|
(6.8)
|
|
|
—
|
|
|
—
|
|
|
—
|
Net transaction and
clearing fees
|
$
|
184.2
|
|
$
|
170.6
|
|
$
|
120.3
|
|
$
|
105.0
|
|
$
|
17.7
|
|
$
|
17.2
|
|
$
|
16.0
|
|
$
|
26.1
|
|
$
|
18.5
|
|
$
|
11.3
|
|
$
|
11.7
|
|
$
|
11.0
|
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SOURCE Cboe Global Markets, Inc.