CHICAGO, July 30, 2021 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE) today reported financial results
for the second quarter of 2021.
"In the second quarter we achieved strong year-over-year revenue
growth driven by robust trading in our proprietary index products
and demand for our data and access solutions products. With the
closing of our acquisition of Chi-X Asia Pacific on July 1, we further solidified our strategic
vision of building one of the world's largest global derivatives
and securities networks. With the addition of Chi-X to the Cboe
network, we are eager to leverage our strong ecosystem of
proprietary index products and data and access solutions to reach
an expanding global network of customers," said Edward T. Tilly, Cboe Global Markets Chairman,
President and Chief Executive Officer. "As we look to the second
half of 2021, we have a number of attractive growth initiatives
underway. We remain on target for our September launch of Cboe
Europe Derivatives, further expanding our global derivatives
network. Lastly, we remain confident in the outlook for organic
revenue growth and are raising our organic growth target for
recurring non-transaction revenue. This is an incredibly exciting
time at Cboe as years of planning and consistent execution have
enabled our strong progress toward our strategic vision. We look
forward to delivering enhanced value to our customers and our
shareholders, as we continue to expand our global network and
broaden access to Cboe's products and services."
"We are pleased to report another quarter of solid financial
results and ongoing momentum in executing against our strategic
priorities. Our strong cash flow generation allowed us to
return nearly $79 million to
shareholders through share repurchases and dividends in the second
quarter while continuing to invest in the long-term growth of our
business," said Brian N. Schell, Cboe Global
Markets Executive Vice President, Chief Financial Officer and
Treasurer. "We begin the second half of the year in a strong
financial position. We are increasing our full-year recurring non-transaction organic
revenue2 growth target to 12 to 13 percent from 10 to 11
percent to incorporate stronger organic growth. Recurring
non-transaction revenue, which includes acquisitions, is now
expected to increase by 15 to 16 percent, up from previous guidance
of 11 to 12 percent, due to stronger organic growth and the
addition of Chi-X. Our full-year expense guidance remains unchanged
for 2021. While we will absorb the full impact of the Chi-X
acquisition to our expense base in the second half of the year, we
expect lower expenses than originally anticipated primarily due to
timing changes and delays in filling open roles. Overall,
we remain focused on continuing to balance our long-standing
disciplined capital allocation priorities to sustainably grow our
business while maintaining a strong balance sheet and preserving
financial flexibility to further enhance shareholder value."
*All comparisons are second quarter 2021 compared to the same
period in 2020.
(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.
Consolidated Second 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 June 30, 2021 and 2020.
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Table
1
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Consolidated Second
Quarter Results
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2Q21
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2Q20
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($ in millions except per share)
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2Q21
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2Q20
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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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350.6
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$
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296.9
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18
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%
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$
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350.6
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$
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296.9
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18
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%
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Total Operating
Expenses
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$
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160.6
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$
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135.2
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19
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%
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$
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128.3
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$
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95.8
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34
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%
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Operating
Income
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$
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190.0
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$
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161.7
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18
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%
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$
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222.3
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$
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201.1
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11
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%
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Operating Margin
%
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54.2
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%
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54.5
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%
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(0.3)
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pp
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63.4
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%
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67.7
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%
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(4.3)
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pp
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Net Income Allocated to
Common Stockholders
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$
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105.2
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$
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113.3
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(7)
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%
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$
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147.4
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$
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143.3
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3
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%
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Diluted EPS
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$
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0.98
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$
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1.03
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(5)
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%
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$
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1.38
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$
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1.31
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5
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%
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EBITDA1
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$
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231.8
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$
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201.6
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15
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%
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$
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233.6
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$
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211.0
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11
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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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67.9
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%
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(1.8)
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pp
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66.6
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%
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71.1
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%
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(4.5)
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pp
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- Total revenues less cost of revenues (referred to as "net
revenue") of $350.6 million increased
18 percent, compared to $296.9
million in the prior-year period, primarily reflecting
increases in net transaction and clearing fees and access and
capacity fees1. Inorganic net revenue1 in the
second quarter of 2021 was $22.2
million.
- Total operating expenses were $160.6
million versus $135.2 million
in the second quarter of 2020. Adjusted operating expenses¹ of
$128.3 million increased 34 percent
compared with $95.8 million in the
second quarter of 2020, primarily due to acquisitions closed in
2020, resulting in higher compensation and benefits and technology
support services. Additionally, professional fees and outside
services increased compared to the second quarter of 2020 as a
result of increases in legal fees, regulatory costs, and contract
services.
- The effective tax rate for the second quarter of 2021 was 41.1
percent compared with 27.5 percent in the second quarter of 2020.
The higher effective tax rate in 2021 is primarily due to the
remeasurement of UK deferred tax liabilities following the UK tax
rate increase from 19 percent to 25 percent enacted during the
second quarter and effective April 1,
2023. The effective tax rate on adjusted
earnings1 was 30.1 percent compared with 26.7 percent in
last year's second quarter. The higher effective tax rate on
adjusted earnings in the second quarter of 2021 was primarily due
to increases in uncertain tax positions.
- Diluted EPS for the second quarter of 2021 decreased 5 percent
to $0.98. Adjusted diluted
EPS1 of $1.38 increased 5
percent compared to 2020's second quarter results.
Business Segment Information:
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Table
2
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Total Revenues
Less Cost of Revenues by
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Business
Segment
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(in
millions)
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2Q21
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2Q20
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Change
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Options
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$
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178.6
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$
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150.6
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19
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%
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North American
Equities
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89.2
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90.6
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(2)
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%
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Futures
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27.4
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20.9
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31
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%
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Europe
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41.6
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21.1
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97
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%
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Global FX
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13.8
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13.7
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1
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%
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Total
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$
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350.6
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$
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296.9
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18
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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.
Discussion of Results by Business Segment:
Options:
- Options net revenue of $178.6
million was up $28.0 million,
or 19 percent, from the second quarter of 2020, primarily due to an
increase in net transaction and clearing fees1, as a
result of higher trading volumes in both index and multi-listed
options, as well as increases in access and capacity fees and
market data fees.
- Net transaction and clearing fees¹ increased $20.3 million, or 18 percent, reflecting a 12
percent increase in total options average daily volume ("ADV") and
a 5 percent increase in total options revenue per contract ("RPC")
compared to the second quarter 2020. 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 multi-listed
options increased 31 percent, primarily due to pricing changes and
a shift in customer concentration. The RPC for index options
decreased 5 percent, primarily reflecting the reversal of fee
realignments implemented in 2020 in response to the temporary
closure of the trading floor.
- Cboe's Options business had total market share of 30.4 percent
for the second quarter of 2021 compared to 35.2 percent in the
second quarter of 2020, primarily reflecting a decrease in Cboe's
multi-listed options market share for the quarter of 26.8 percent
compared to 31.4 percent in the second quarter of 2020. While
market share declined, revenue per contract increased 31 percent
year-over-year, reflecting a mix shift in order flow by order and
customer type.
North American (N.A.) Equities:
- N.A. Equities net revenue of $89.2
million was down $1.4 million,
or 2 percent, primarily due to decreases in transaction and
clearing fees and market data fees, offset somewhat by growth in
access and capacity fees. The 2020 acquisitions of BIDS Trading and
MATCHNow contributed $10.0 million in
net revenue for the quarter.
- The decrease in net transaction and clearing fees primarily
reflects a 15 percent decline in U.S. equities industry ADV
compared to the second quarter of 2020.
- Cboe U.S. Equities exchanges had market share of 14.3 percent
for the second quarter of 2021 compared to 16.1 percent in the
second quarter of 2020. The decrease was primarily due to higher
off-exchange trading volume in the second quarter of 2021,
averaging 43.3 percent of total market volume compared to 41.8
percent in the second quarter of 2020.
Futures:
- Futures net revenue of $27.4
million increased $6.5
million, or 31 percent, primarily due to an increase in net
transaction and clearing fees1.
- Net transaction and clearing fees¹ increased $6.4 million, or 41 percent, reflecting a 49
percent increase in ADV, offset somewhat by a 5 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
market maker incentives.
Europe:
- Europe net revenue of
$41.6 million increased by 97
percent, primarily reflecting the addition of EuroCCP in
July 2020, which contributed
$11.7 million in net revenue, and the
impact of favorable currency exchange rates. Average daily notional
value ("ADNV") for the overall market was up 5 percent during the
quarter and ADNV traded on Cboe European Equities was €7.3 billion,
up 16 percent from last year's second quarter, while net capture
increased 7 percent, reflecting a shift in the mix of volume by
order book type.
- For the second quarter of 2021, Cboe European Equities had 17.4
percent market share, up from 15.8 percent in the second quarter of
2020, primarily as a result of the positive impact of a liquidity
incentive program initiated in May
2020, as well as successfully re-introducing Swiss
securities on Cboe UK order books in February 2021.
Global FX:
- Global FX net revenue of $13.8
million increased 1 percent, primarily as a result of higher
net transaction and clearing fees¹. ADNV traded on the Cboe FX
platform was $32.5 billion for the
quarter, up 2 percent from last year's second quarter and net
capture per one million dollars
traded was $2.71 for the quarter,
down 2 percent compared to $2.77 in
the second quarter of 2020.
- Cboe FX had market share of 16.2 percent for the quarter
compared to 16.4 percent in last year's second 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 updated or reaffirmed its guidance for the 2021
fiscal year as noted below. This guidance incorporates the
company's acquisition of Chi-X, which closed on July 1, 2021.
- Recurring non-transaction revenue, defined as access and
capacity fees plus proprietary market data, is now expected to
increase by 15 to 16 percent, from a base of $342 million in 2020, up from previous guidance
of 11 to 12 percent, with organic growth targeted in a range of 12
to 13 percent versus previous guidance of 10 to 11 percent. The
increase reflects the addition of Chi-X, as well as stronger growth
in organic recurring non-transaction revenue.
- Revenue from acquisitions held less than a year is now expected
to contribute net revenue growth in a range of 5 to 7 percentage
points in 2021, up from 4 to 6 percentage points, reflecting the
addition of Chi-X on July 1.
- Reaffirmed that adjusted operating expenses are expected to be
in the range of $531 to $539 million. The reaffirmation of adjusted
expenses reflects the netting of incremental expenses related to
the inclusion of Chi-X for the second half of 2021 and a reduction
in guidance for expenses. The guidance excludes the expected
amortization of acquired intangible assets of $126 million¹, the company plans to reflect the
exclusion of this amount in its non-GAAP
reconciliation.2
- Depreciation and amortization expense, which is included in
adjusted operating expenses above, is now expected to be in the
range of $34 to $38 million, down from the previous range of
$38 to $42
million, excluding the expected amortization of acquired
intangible assets.
- Reaffirmed that the effective tax rate3 on adjusted
earnings for the full year is expected to be in the range of 27.5
to 29.5 percent. The company now expects the adjusted effective tax
rate for the full year to be at the higher end of the guidance
range, due to the second quarter rate slightly exceeding the range.
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 now expected to be in the range of
$55 to $60
million, down versus the prior range of $60 to $65 million,
primarily reflecting changes in the timing of certain
projects.
Capital Management
At June 30, 2021, the company had
adjusted cash3 of $442.6
million. Total debt as of June
30, 2021 was $1,298.5 million.
The increase in adjusted cash and debt at June 30 compared to December 31, 2020, includes borrowings used to
fund the Chi-X acquisition, which closed on July 1, 2021.
The company paid cash dividends of $45.0
million, or $0.42 per share,
during the second quarter of 2021 and utilized $33.7 million to repurchase 0.3 million shares of
its common stock under its share repurchase program at an average
price of $101.57 per share. As
of June 30, 2021, the company had
approximately $318.9 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 second-quarter financial results today, July 30, 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, July 30,
2021, through 11:00 p.m. CT, August 6, 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 10157218.
(1) Amount does not yet include any estimate
for Chi-X acquisition.
(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) 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, 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 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; 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; 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, 2020 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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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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2Q
2021
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1Q
2021
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4Q
2020
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3Q
2020
|
2Q
2020
|
Options
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Total industry ADV
(in thousands)
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36,442
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41,974
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32,197
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29,535
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28,243
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Total company
Options ADV (in thousands)
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11,092
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12,681
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10,299
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9,569
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9,944
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Multi-listed
options
|
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9,254
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10,779
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8,705
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8,136
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8,354
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|
Index
options
|
|
|
1,838
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1,902
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1,595
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|
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1,433
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|
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1,590
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|
Total Options
market share
|
|
|
30.4
|
%
|
|
30.2
|
%
|
|
32.0
|
%
|
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32.4
|
%
|
|
35.2
|
%
|
Multi-listed
options
|
|
|
26.8
|
%
|
|
26.9
|
%
|
|
28.5
|
%
|
|
29.0
|
%
|
|
31.4
|
%
|
Index
options
|
|
|
98.7
|
%
|
|
99.0
|
%
|
|
99.3
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%
|
|
98.9
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%
|
|
99.4
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%
|
Total Options
RPC:
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|
$
|
0.192
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$
|
0.177
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$
|
0.182
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$
|
0.173
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$
|
0.182
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|
Multi-listed
options
|
|
$
|
0.067
|
|
$
|
0.067
|
|
$
|
0.068
|
|
$
|
0.056
|
|
$
|
0.051
|
|
Index
options
|
|
$
|
0.823
|
|
$
|
0.803
|
|
$
|
0.809
|
|
$
|
0.842
|
|
$
|
0.870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Equities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Equities -
Exchange:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total industry ADV
(shares in billions)
|
|
|
10.5
|
|
|
14.7
|
|
|
10.5
|
|
|
9.9
|
|
|
12.4
|
|
Market share
%
|
|
|
14.3
|
%
|
|
15.0
|
%
|
|
15.1
|
%
|
|
15.1
|
%
|
|
16.1
|
%
|
Net capture (per 100
touched shares)
|
|
$
|
0.020
|
|
$
|
0.015
|
|
$
|
0.015
|
|
$
|
0.017
|
|
$
|
0.025
|
|
U.S. Equities -
Off-Exchange:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV (touched shares, in
millions)
|
|
|
75.8
|
|
|
99.5
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Net capture (per 100
touched shares)
|
|
$
|
0.123
|
|
$
|
0.121
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Canadian
Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV (matched shares, in
millions)
|
|
|
47.4
|
|
|
71.4
|
|
|
45.2
|
|
|
40.0
|
|
|
N/A
|
|
Total market share
%
|
|
|
3.5
|
%
|
|
3.1
|
%
|
|
3.3
|
%
|
|
3.3
|
%
|
|
N/A
|
|
Market share % - TSX
listed volume
|
|
|
5.0
|
%
|
|
4.6
|
%
|
|
4.7
|
%
|
|
4.7
|
%
|
|
N/A
|
|
Net capture (per 10,000
shares, in Canadian Dollars)
|
|
$
|
7.782
|
|
$
|
7.184
|
|
$
|
8.300
|
|
$
|
8.200
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADV (in
thousands)
|
|
|
214
|
|
|
256
|
|
|
159
|
|
|
172
|
|
|
144
|
|
RPC
|
|
$
|
1.648
|
|
$
|
1.639
|
|
$
|
1.575
|
|
$
|
1.527
|
|
$
|
1.743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total industry ADNV
(Euros - in billions)
|
|
€
|
42.0
|
|
€
|
44.8
|
|
€
|
37.5
|
|
€
|
31.5
|
|
€
|
40.1
|
|
Market share
%
|
|
|
17.4
|
%
|
|
16.8
|
%
|
|
17.5
|
%
|
|
17.7
|
%
|
|
15.8
|
%
|
Net capture
(bps)
|
|
€
|
0.267
|
|
€
|
0.284
|
|
€
|
0.259
|
|
€
|
0.245
|
|
€
|
0.248
|
|
EuroCCP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trades cleared (in
thousands)
|
|
|
294,801.9
|
|
|
298,223.5
|
|
|
290,181.9
|
|
|
255,293.1
|
|
|
N/A
|
|
Fee per trade
cleared
|
|
€
|
0.011
|
|
€
|
0.011
|
|
€
|
0.011
|
|
€
|
0.011
|
|
|
N/A
|
|
Net settlement volume
(shares in thousands)
|
|
|
2,367.3
|
|
|
2,423.2
|
|
|
2,132.7
|
|
|
1,952.3
|
|
|
N/A
|
|
Net fee per
settlement
|
|
€
|
0.893
|
|
€
|
0.865
|
|
€
|
0.803
|
|
€
|
0.785
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
FX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market share
%
|
|
|
16.2
|
%
|
|
16.5
|
%
|
|
16.7
|
%
|
|
15.9
|
%
|
|
16.4
|
%
|
ADNV ($ in
billions)
|
|
$
|
32.5
|
|
$
|
37.1
|
|
$
|
33.7
|
|
$
|
30.2
|
|
$
|
31.8
|
|
Net capture (per one
million dollars traded)
|
|
$
|
2.71
|
|
$
|
2.65
|
|
$
|
2.64
|
|
$
|
2.70
|
|
$
|
2.77
|
|
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 - 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
Cboe's acquisition of BIDS Trading, effective December 31, 2020. 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 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 ADNV in British pounds of shares matched
on Cboe Europe Equities 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, "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.
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 and Six
Months Ended June 30, 2021 and 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
Six Months Ended
June 30,
|
(in millions, except
per share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and
clearing fees
|
|
$
|
618.2
|
|
$
|
618.3
|
|
$
|
1,381.4
|
|
$
|
1,279.8
|
Access and capacity
fees
|
|
|
67.1
|
|
|
55.7
|
|
|
133.5
|
|
|
113.4
|
Market data
fees
|
|
|
62.8
|
|
|
58.7
|
|
|
126.6
|
|
|
114.9
|
Regulatory
fees
|
|
|
36.9
|
|
|
128.7
|
|
|
138.4
|
|
|
265.5
|
Other
revenue
|
|
|
15.8
|
|
|
7.3
|
|
|
31.7
|
|
|
16.6
|
Total
Revenues
|
|
|
800.8
|
|
|
868.7
|
|
|
1,811.6
|
|
|
1,790.2
|
Cost of
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity
payments
|
|
|
377.9
|
|
|
415.6
|
|
|
879.7
|
|
|
808.0
|
Routing and
clearing
|
|
|
19.9
|
|
|
17.7
|
|
|
47.0
|
|
|
33.7
|
Section 31
fees
|
|
|
28.8
|
|
|
119.0
|
|
|
120.7
|
|
|
246.4
|
Royalty fees
|
|
|
20.3
|
|
|
19.4
|
|
|
40.6
|
|
|
46.8
|
Other
|
|
|
3.3
|
|
|
0.1
|
|
|
7.5
|
|
|
0.1
|
Total Cost of
Revenues
|
|
|
450.2
|
|
|
571.8
|
|
|
1,095.5
|
|
|
1,135.0
|
Revenues Less Cost
of Revenues
|
|
|
350.6
|
|
|
296.9
|
|
|
716.1
|
|
|
655.2
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
67.7
|
|
|
54.9
|
|
|
140.0
|
|
|
108.2
|
Depreciation and
amortization
|
|
|
40.6
|
|
|
38.0
|
|
|
82.6
|
|
|
78.5
|
Technology support
services
|
|
|
16.2
|
|
|
12.5
|
|
|
33.4
|
|
|
24.4
|
Professional fees and
outside services
|
|
|
22.4
|
|
|
12.3
|
|
|
38.0
|
|
|
27.2
|
Travel and promotional
expenses
|
|
|
1.9
|
|
|
0.9
|
|
|
3.5
|
|
|
3.0
|
Facilities
costs
|
|
|
5.4
|
|
|
4.1
|
|
|
10.7
|
|
|
8.2
|
Acquisition-related
costs
|
|
|
1.8
|
|
|
9.4
|
|
|
5.2
|
|
|
10.2
|
Other
expenses
|
|
|
4.6
|
|
|
3.1
|
|
|
8.1
|
|
|
7.4
|
Total Operating
Expenses
|
|
|
160.6
|
|
|
135.2
|
|
|
321.5
|
|
|
267.1
|
Operating
Income
|
|
|
190.0
|
|
|
161.7
|
|
|
394.6
|
|
|
388.1
|
Non-operating Income
(Expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(12.3)
|
|
|
(7.3)
|
|
|
(24.6)
|
|
|
(14.6)
|
Other income,
net
|
|
|
1.5
|
|
|
2.2
|
|
|
2.1
|
|
|
0.6
|
Total Non-operating
Income (Expenses)
|
|
|
(10.8)
|
|
|
(5.1)
|
|
|
(22.5)
|
|
|
(14.0)
|
Income Before Income
Tax Provision
|
|
|
179.2
|
|
|
156.6
|
|
|
372.1
|
|
|
374.1
|
Income tax
provision
|
|
|
73.7
|
|
|
43.0
|
|
|
129.4
|
|
|
103.1
|
Net
Income
|
|
|
105.5
|
|
|
113.6
|
|
|
242.7
|
|
|
271.0
|
Net income allocated to
participating securities
|
|
|
(0.3)
|
|
|
(0.3)
|
|
|
(0.7)
|
|
|
(0.7)
|
Net Income Allocated
to Common Stockholders
|
|
$
|
105.2
|
|
$
|
113.3
|
|
$
|
242.0
|
|
$
|
270.3
|
Net Income Per Share
Allocated to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.99
|
|
$
|
1.04
|
|
$
|
2.26
|
|
$
|
2.46
|
Diluted earnings per
share
|
|
|
0.98
|
|
|
1.03
|
|
|
2.26
|
|
|
2.45
|
Weighted average shares
used in computing income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
106.8
|
|
|
109.5
|
|
|
107.1
|
|
|
109.9
|
Diluted
|
|
|
106.9
|
|
|
109.6
|
|
|
107.3
|
|
|
110.1
|
Cboe Global
Markets, Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
June 30, 2021 and
2020
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
(in
millions)
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
450.9
|
|
$
|
245.4
|
Financial
investments
|
|
|
118.7
|
|
|
92.4
|
Accounts receivable,
net
|
|
|
333.1
|
|
|
337.3
|
Margin deposits and
clearing funds
|
|
|
1,188.2
|
|
|
812.1
|
Income taxes
receivable
|
|
|
39.7
|
|
|
53.1
|
Other current
assets
|
|
|
50.2
|
|
|
26.5
|
Total Current
Assets
|
|
|
2,180.8
|
|
|
1,566.8
|
|
|
|
|
|
|
|
Investments
|
|
|
41.1
|
|
|
42.7
|
Land
|
|
|
2.3
|
|
|
—
|
Property and
equipment, net
|
|
|
95.6
|
|
|
82.6
|
Property held for
sale
|
|
|
—
|
|
|
13.0
|
Operating lease right
of use assets
|
|
|
113.7
|
|
|
111.0
|
Goodwill
|
|
|
2,899.5
|
|
|
2,895.1
|
Intangible assets,
net
|
|
|
1,670.4
|
|
|
1,729.0
|
Other assets,
net
|
|
|
93.1
|
|
|
76.3
|
Total
Assets
|
|
$
|
7,096.5
|
|
$
|
6,516.5
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
260.0
|
|
$
|
250.0
|
Section 31 fees
payable
|
|
|
120.9
|
|
|
152.9
|
Deferred
revenue
|
|
|
17.2
|
|
|
10.2
|
Margin deposits and
clearing funds
|
|
|
1,188.2
|
|
|
812.1
|
Income taxes
payable
|
|
|
4.8
|
|
|
4.2
|
Current portion of
long-term debt
|
|
|
—
|
|
|
68.7
|
Current portion of
contingent consideration liabilities
|
|
|
12.9
|
|
|
15.2
|
Total Current
Liabilities
|
|
|
1,604.0
|
|
|
1,313.3
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,298.5
|
|
|
1,135.2
|
Unrecognized tax
benefits
|
|
|
187.5
|
|
|
164.7
|
Deferred income
taxes
|
|
|
384.1
|
|
|
377.6
|
Non-current operating
lease liabilities
|
|
|
134.0
|
|
|
132.1
|
Contingent
consideration liabilities
|
|
|
13.7
|
|
|
17.5
|
Other non-current
liabilities
|
|
|
32.2
|
|
|
27.2
|
Total
Liabilities
|
|
|
3,654.0
|
|
|
3,167.6
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Preferred
stock
|
|
|
—
|
|
|
—
|
Common
stock
|
|
|
1.3
|
|
|
1.2
|
Treasury stock at
cost
|
|
|
(1,337.5)
|
|
|
(1,250.4)
|
Additional paid-in
capital
|
|
|
2,730.7
|
|
|
2,713.3
|
Retained
earnings
|
|
|
1,962.2
|
|
|
1,809.8
|
Accumulated other
comprehensive income, net
|
|
|
85.8
|
|
|
75.0
|
Total
Stockholders' Equity
|
|
|
3,442.5
|
|
|
3,348.9
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
7,096.5
|
|
$
|
6,516.5
|
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
|
|
Six Months
Ended
|
|
(in
millions)
|
|
June 30,
|
|
June 30,
|
|
Reconciliation of
Revenue Less Cost of Revenue to Organic Net Revenue
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Revenues less cost of
revenues (net revenue)
|
|
$
|
350.6
|
|
$
|
296.9
|
|
$
|
716.1
|
|
$
|
655.2
|
|
Less
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition revenue
less cost of revenues (inorganic net revenue)
|
|
$
|
(22.2)
|
|
$
|
—
|
|
$
|
(49.0)
|
|
$
|
—
|
|
Organic net
revenue
|
|
$
|
328.4
|
|
$
|
296.9
|
|
$
|
667.1
|
|
$
|
655.2
|
|
Reconciliation of GAAP and non-GAAP Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Table
4
|
|
June 30,
|
|
June 30,
|
|
(in millions, except
per share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Reconciliation of
Net Income Allocated to Common Stockholders to Non-GAAP (As shown
on Table 1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income allocated
to common stockholders
|
|
$
|
105.2
|
|
$
|
113.3
|
|
$
|
242.0
|
|
$
|
270.3
|
|
Non-GAAP
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses (1)
|
|
|
1.8
|
|
|
9.4
|
|
|
5.2
|
|
|
10.2
|
|
Amortization of
acquired intangible assets (2)
|
|
|
30.5
|
|
|
30.0
|
|
|
63.4
|
|
|
62.5
|
|
Total Non-GAAP
adjustments
|
|
|
32.3
|
|
|
39.4
|
|
|
68.6
|
|
|
72.7
|
|
Income tax expense
related to the items above
|
|
|
(7.7)
|
|
|
(9.3)
|
|
|
(15.9)
|
|
|
(16.9)
|
|
Deferred tax
re-measurements
|
|
|
17.7
|
|
|
—
|
|
|
17.7
|
|
|
—
|
|
Net income allocated
to participating securities - effect on reconciling
items
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.2)
|
|
|
(0.5)
|
|
Adjusted net
income allocated to common stockholders
|
|
$
|
147.4
|
|
$
|
143.3
|
|
$
|
312.2
|
|
$
|
325.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted EPS to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
|
0.98
|
|
$
|
1.03
|
|
$
|
2.26
|
|
$
|
2.45
|
|
Per share impact of
non-GAAP adjustments noted above
|
|
|
0.40
|
|
|
0.28
|
|
|
0.65
|
|
|
0.51
|
|
Adjusted diluted
earnings per common share
|
|
$
|
1.38
|
|
$
|
1.31
|
|
$
|
2.91
|
|
$
|
2.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Margin to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue less cost of
revenue
|
|
$
|
350.6
|
|
$
|
296.9
|
|
$
|
716.1
|
|
$
|
655.2
|
|
Non-GAAP adjustments
noted above
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted revenue
less cost of revenue
|
|
$
|
350.6
|
|
$
|
296.9
|
|
$
|
716.1
|
|
$
|
655.2
|
|
Operating expenses
(3)
|
|
$
|
160.6
|
|
$
|
135.2
|
|
$
|
321.5
|
|
$
|
267.1
|
|
Non-GAAP adjustments
noted above
|
|
|
32.3
|
|
|
39.4
|
|
|
68.6
|
|
|
72.7
|
|
Adjusted operating
expenses
|
|
$
|
128.3
|
|
$
|
95.8
|
|
$
|
252.9
|
|
$
|
194.4
|
|
Operating
income
|
|
$
|
190.0
|
|
$
|
161.7
|
|
$
|
394.6
|
|
$
|
388.1
|
|
Non-GAAP adjustments
noted above
|
|
|
32.3
|
|
|
39.4
|
|
|
68.6
|
|
|
72.7
|
|
Adjusted operating
income
|
|
$
|
222.3
|
|
$
|
201.1
|
|
$
|
463.2
|
|
$
|
460.8
|
|
Adjusted operating
margin (4)
|
|
|
63.4
|
%
|
|
67.7
|
%
|
|
64.7
|
%
|
|
70.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Rate to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
179.2
|
|
|
156.6
|
|
|
372.1
|
|
|
374.1
|
|
Non-GAAP adjustments
noted above
|
|
|
32.3
|
|
|
39.4
|
|
|
68.6
|
|
|
72.7
|
|
Adjusted income
before income taxes
|
|
$
|
211.5
|
|
$
|
196.0
|
|
$
|
440.7
|
|
$
|
446.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
73.7
|
|
|
43.0
|
|
|
129.4
|
|
|
103.1
|
|
Non-GAAP adjustments
noted above
|
|
|
(10.0)
|
|
|
9.3
|
|
|
(1.8)
|
|
|
16.9
|
|
Adjusted income
tax expense
|
|
$
|
63.7
|
|
$
|
52.3
|
|
$
|
127.6
|
|
$
|
120.0
|
|
Adjusted income
tax rate
|
|
|
30.1
|
%
|
|
26.7
|
%
|
|
29.0
|
%
|
|
26.9
|
%
|
|
(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 amortization of acquired intangible assets related
to the company's acquisitions.
|
(3) 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" ($1.1 million and $2.2 million in
expense for the three months ended June 30, 2021 and 2020,
respectively, and $1.4 million and $0.1 million in the six months
ended June 30, 2021 and 2020, respectively), and are directly
offset by deferred compensation income, expenses and dividends
included within "Other income, net" ($1.1 million and $2.2 million
in income, expense and dividends in the three months ended June 30,
2021 and 2020, respectively, and $1.4 and $0.1 million in the six
months ended June 30, 2021 and 2020, 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."
|
(4) 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. 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
|
|
Six
Months Ended
|
|
(in
millions)
|
|
June 30,
|
|
June 30,
|
|
Reconciliation of
Net Income Allocated to Common Stockholders to EBITDA and Adjusted
EBITDA (Per Table 1)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net income
allocated to common stockholders
|
|
$
|
105.2
|
|
$
|
113.3
|
|
$
|
242.0
|
|
$
|
270.3
|
|
Interest expense,
net
|
|
|
12.3
|
|
|
7.3
|
|
|
24.6
|
|
|
14.6
|
|
Income tax
provision
|
|
|
73.7
|
|
|
43.0
|
|
|
129.4
|
|
|
103.1
|
|
Depreciation and
amortization
|
|
|
40.6
|
|
|
38.0
|
|
|
82.6
|
|
|
78.5
|
|
EBITDA
|
|
$
|
231.8
|
|
$
|
201.6
|
|
$
|
478.6
|
|
$
|
466.5
|
|
EBITDA
Margin
|
|
|
66.1
|
%
|
|
67.9
|
%
|
|
66.8
|
%
|
|
71.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments not included in above line items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
|
1.8
|
|
|
9.4
|
|
|
5.2
|
|
|
10.2
|
|
Adjusted
EBITDA
|
|
$
|
233.6
|
|
$
|
211.0
|
|
$
|
483.8
|
|
$
|
476.7
|
|
Adjusted EBITDA
Margin
|
|
|
66.6
|
%
|
|
71.1
|
%
|
|
67.6
|
%
|
|
72.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
|
|
Reconciliation of
Cash and cash equivalents to Adjusted Cash
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
450.9
|
|
$
|
245.4
|
|
|
|
|
|
|
|
Financial
investments
|
|
|
118.7
|
|
|
92.4
|
|
|
|
|
|
|
|
Less deferred
compensation plan assets
|
|
|
(25.6)
|
|
|
(24.5)
|
|
|
|
|
|
|
|
Less cash collected
for Section 31 Fees
|
|
|
(101.4)
|
|
|
(103.0)
|
|
|
|
|
|
|
|
Adjusted
Cash
|
|
$
|
442.6
|
|
$
|
210.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Transaction and Clearing Fees –Three Months Ended June 30, 2021
and 2020
|
|
Consolidated
|
|
Options
Segment
|
|
N.A. Equities
Segment
|
|
Futures
Segment
|
|
Europe
Segment
|
|
Global FX
Segment
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Transaction and
clearing fees
|
$
|
618.2
|
|
$
|
618.3
|
|
$
|
283.2
|
|
$
|
250.8
|
|
$
|
268.0
|
|
$
|
325.1
|
|
$
|
22.2
|
|
$
|
15.8
|
|
$
|
33.3
|
|
$
|
15.2
|
|
$
|
11.5
|
|
$
|
11.4
|
Liquidity
payments
|
|
(377.9)
|
|
|
(415.6)
|
|
|
(144.1)
|
|
|
(132.0)
|
|
|
(228.4)
|
|
|
(279.4)
|
|
|
—
|
|
|
—
|
|
|
(5.4)
|
|
|
(4.2)
|
|
|
—
|
|
|
—
|
Routing and
clearing
|
|
(19.9)
|
|
|
(17.7)
|
|
|
(5.0)
|
|
|
(5.0)
|
|
|
(10.0)
|
|
|
(12.7)
|
|
|
—
|
|
|
—
|
|
|
(4.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
Net transaction and
clearing fees
|
$
|
220.4
|
|
$
|
185.0
|
|
$
|
134.1
|
|
$
|
113.8
|
|
$
|
29.6
|
|
$
|
33.0
|
|
$
|
22.2
|
|
$
|
15.8
|
|
$
|
23.0
|
|
$
|
11.0
|
|
$
|
11.5
|
|
$
|
11.4
|
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SOURCE Cboe Global Markets, Inc.