-- Achieves Record Quarterly Trading Volume CHICAGO, April 19
/PRNewswire-FirstCall/ -- CBOT Holdings, Inc. (CBOT), holding
company for the Chicago Board of Trade, today announced record
quarterly earnings and revenues. Net income was $55.4 million, or
$1.05 per diluted share, for the first quarter ended March 31,
2007. Excluding merger- related expenses, net income was $68.4
million, or $1.29 per diluted share, a 95 percent increase from the
first quarter of 2006. In last year's first quarter, the company
reported net income of $35.1 million, or $0.66 per diluted share. A
reconciliation of all non-GAAP financial information to GAAP
financial information is included following the financial
statements. Revenues for the quarter increased 34 percent to $187.7
million, driven by record trading volume and higher average
exchange fee rates. Operating margin for the quarter, excluding
merger-related expenses, rose nearly 15 percentage points to 54.6
percent, reflecting the effectiveness of the company's operating
model and its disciplined expense management. Included in the
first-quarter 2007 results are $13.0 million in merger- related
expenses. These expenses are non-deductible for tax purposes and
consist primarily of legal and advisory fees incurred in connection
with the CBOT's merger agreement with Chicago Mercantile Exchange
Holdings Inc. (CME) and the previously-announced, unsolicited
proposal from IntercontinentalExchange, Inc. (ICE). "The positive
momentum we built last year is carrying through into 2007, as we
experience higher trading volume and continue to effectively manage
expenses," said CBOT President and CEO Bernard W. Dan. "I believe
that the CBOT is better positioned than ever to provide market
participants around the world with unique products, innovative risk
management tools and deep, liquid markets." Dan continued, "This is
a dynamic time for the CBOT and our industry, which is undergoing
consolidation and intense global competition. We remain focused on
driving growth, managing our day-to-day business and serving the
diverse needs of our customers." Financial Highlights: ($s in
millions, except per share) Q1 FY07 Q1 FY06 Y/Y Revenues $187.7
$140.1 34% GAAP Operating Income $89.5 $55.6 61% Non-GAAP Operating
Income $102.5 $55.6 84% GAAP Operating Margin % 47.7% 39.7% 8.0 pts
Non-GAAP Operating Margin % 54.6% 39.7% 14.9 pts GAAP Net Income
$55.4 $35.1 58% Non-GAAP Net Income $68.4 $35.1 95% GAAP Diluted
EPS $1.05 $0.66 59% Non-GAAP Diluted EPS $1.29 $0.66 95% NOTE:
Certain prior period amounts have been reclassified to conform to
current period presentation. The non-GAAP financial measures of
operating performance exclude merger-related expenses of $13.0
million for the first quarter of 2007. The merger-related expenses
are non-deductible for tax purposes, thus the pre-tax and after-tax
impact is the same. Non-GAAP measures do not replace and are not a
substitute for our GAAP financial results but are provided to
improve overall understanding of our current financial performance
and our prospects for the future. Revenue growth for the quarter
was primarily driven by higher exchange and clearing fees, which
increased $45.3 million, or 43 percent. This growth was a result of
a 24 percent increase in trading volume and a 15 percent increase
in the average rate per contract in the first quarter of 2007
compared with 2006. CBOT achieved record trading volume for the
quarter with 239.7 million contracts traded, reporting volume
increases across each of CBOT's major product categories. Average
daily volume (ADV) for the quarter was 3.9 million contracts, up 24
percent from the same period last year. Electronic trading volume
increased 42 percent, boosting the percentage of trades executed on
the CBOT's electronic trading platform to 78 percent of total
exchange ADV in 2007's first quarter, up from 69 percent in the
first quarter of 2006 and 73 percent in the fourth quarter of 2006.
The higher level of electronic trading, in part, reflects the
favorable reception by market participants to the electronic
trading of Agricultural futures during daytime hours. The average
rate per contract was $0.633 for the quarter compared with $0.552
in the first quarter of 2006. The rate increase primarily resulted
from changes in trading fees implemented in 2006, as part of the
company's strategy to further segment its pricing structure. The
average rate per contract also benefited from increased electronic
trading of Agricultural contracts following the August 1, 2006,
introduction of electronic trading of Agricultural futures during
daytime trading hours. The average rate per contract represents
total exchange and clearing fee revenue divided by total reported
trading volume. Total operating expenses for the first quarter were
$98.2 million, up 16 percent over the prior year's first quarter.
Excluding merger-related expenses of $13.0 million for the quarter,
operating expenses were relatively flat compared with the prior
year period. Volume-based expenses of $23.9 million rose 21
percent, in line with the growth in trading volume. Baseline and
other costs, or non-volume based expenses, were $74.3 million this
quarter compared with $64.7 million in the first quarter of 2006, a
15 percent increase. Excluding first quarter 2007 merger-related
expenses, non- volume based expenses were down about 5 percent from
last year's first quarter. Disciplined expense management was a key
factor in delivering higher operating margins in the first quarter.
The operating margin for the quarter increased to 47.7 percent from
39.7 percent in the same period last year. Excluding merger-related
expenses, the operating margin for the quarter was 54.6 percent.
Other Financial Metrics (in millions, except rate per contract) Q1
FY07 Q1 FY06 Average Daily Volume 3.9 3.1 Reported Trading Volume
239.7 192.7 Average Rate per Contract $0.633 $0.552 Depreciation
& Amortization $11.5 $14.1 Non-Cash Stock Compensation $0.8
$0.4 Capital Expenditures $2.9 $4.2 CBOT First Quarter 2007
Operational Highlights -- Launched a new stock index futures
contract based on the Dow Jones U.S. Real Estate Index(SM)
(DJUSRE), designed to help market participants capitalize on
changes in the real estate sector of the stock market and better
manage commercial real estate exposure. -- Expanded the CBOT Swap
complex with a 30-year Interest Rate Swap futures contract,
providing the swap market with a tradable reference point at the
long end of the swap curve. -- Announced plans to launch mini-sized
Ag futures contracts on CBOT's electronic trading platform on May
14, 2007. The CBOT mini-sized Corn, Soybeans and Wheat contracts
will trade electronically during overnight hours, while continuing
to trade by open auction during daytime hours. Outlook The guidance
outlined below is based on the company's current operating model as
a standalone company and does not take into account merger-related
expenses expected to be incurred in connection with the merger
agreement between CBOT and CME or the unsolicited proposal from
ICE. Given current market conditions and what is known today, CBOT
currently expects the following: Fiscal Year Second Quarter 2007
2007 ($s in millions, except per contract data) Baseline and other
expenses, which equal total operating expenses less volume-based
expenses (excludes merger-related expenses) $250 - $260 $62 - $65
Non-cash stock compensation expense included in baseline expenses
$4.1 - $4.5 $1.5 - $1.6 Fiscal Year and Second Quarter 2007
Volume-based expenses, which include clearing costs and contracted
license fees, per reported contract Around $0.100 to $0.102 Absent
changes in transaction mix, the average rate per contract should
approximate the first quarter rate. The company does not provide an
outlook for trading volume or revenue but does report the trading
volume daily on its website at
http://www.cbot.com/cbot/pub/page/0,3181,834,00.html#daily . 1Q 4Q
3Q 2Q 1Q 4Q 3Q 2Q 2007 2006 2006 2006 2006 2005 2005 2005 Trading
Days 62 63 63 63 62 63 64 64 AVERAGE RATE PER CONTRACT (in dollars)
PRODUCT: Interest Rate $0.552 $0.569 $0.568 $0.523 $0.517 $0.537
$0.469 $0.467 Agriculture 0.966 0.931 0.790 0.680 0.673 0.666 0.631
0.643 Equity Index 0.799 0.803 0.779 0.712 0.760 0.789 0.672 0.630
Metals, Energy & Other 0.822 1.001 1.048 0.986 1.312 1.559
1.360 1.312 Overall average rate per contract 0.633 0.653 0.618
0.564 0.552 0.570 0.501 0.499 VENUE: Open- Auction 0.516 0.522
0.524 0.515 0.515 0.507 0.485 0.483 Electronic 0.587 0.612 0.562
0.503 0.495 0.506 0.411 0.397 Off- Exchange 2.821 3.179 3.172 2.564
2.296 2.299 2.117 2.404 Overall average rate per contract 0.633
0.653 0.618 0.564 0.552 0.570 0.501 0.499 AVERAGE DAILY VOLUME
(Round Turns, in thousands) 1Q 4Q 3Q 2Q 1Q 4Q 3Q 2Q 2007 2006 2006
2006 2006 2005 2005 2005 PRODUCT: Interest Rate 3,032 2,480 2,507
2,588 2,561 1,951 2,123 2,368 Agriculture 631 611 490 529 412 331
350 404 Equity Index 138 112 110 131 113 112 103 115 Metals, Energy
& Other 65 65 56 54 22 9 5 3 Total 3,866 3,269 3,163 3,302
3,108 2,404 2,582 2,889 VENUE: Open-Auction 733 813 850 990 887 685
773 940 Electronic 3,031 2,375 2,232 2,220 2,132 1,633 1,707 1,843
Off-Exchange 102 81 81 91 88 86 102 106 Total 3,866 3,269 3,163
3,302 3,108 2,404 2,582 2,889 TRANSACTION FEES (in thousands) 1Q 4Q
3Q 2Q 1Q 4Q 3Q 2Q 2007 2006 2006 2006 2006 2005 2005 2005 PRODUCT:
Interest Rate $103,697 $88,894 $89,673 $85,339 $82,032 $65,994
$63,741 $70,733 Agricul- ture 37,818 35,821 24,378 22,664 17,176
13,869 14,150 16,604 Equity Index 6,815 5,677 5,416 5,859 5,337
5,588 4,439 4,627 Metals, Energy & Other 3,323 4,116 3,699
3,360 1,805 908 393 252 Total $151,653 $134,509 $123,166 $117,221
$106,351 $86,360 $82,722 $92,216 VENUE: Open- Auc- tion $23,468
$26,730 $28,060 $32,136 $28,356 $21,885 $23,979 $29,085 Elect-
ronic 110,345 91,570 79,000 70,341 65,442 52,013 44,872 46,883
Off-Ex- change 17,840 16,209 16,106 14,745 12,552 12,462 13,871
16,247 Total $151,653 $134,509 $123,166 $117,221 $106,351 $86,360
$82,722 $92,216 Earnings Conference Call CBOT Executives will host
a conference call to review its first quarter results today, April
19, 2007, at 8:00 a.m. ET / 7:00 a.m. CT. The conference call and
any accompanying slides will be publicly available via live webcast
from the investor relations section of the CBOT Holdings website at
http://www.cbot.com/ . The webcast will be available for replay at
the same address approximately two hours following its conclusion.
Those who wish to listen to the conference call via telephone
should dial 888.396.2298 (U.S. callers) and 617.847.8708
(International callers) at least 10 minutes before the call begins.
The verbal passcode for the call is "CBOT Holdings." To listen to
an archived recording after the call, please dial 888-286-8010
(U.S. callers) and 617-801-6888 (International callers). The
passcode for the replay is 40764305. Use of Non-GAAP Financial
Information In this press release, we use non-GAAP financial
measures of operating performance. For purposes of Regulation G, a
non-GAAP financial measure is a numerical measure of a company's
performance, financial position, or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure, calculated and prepared in
accordance with generally accepted accounting principles in the
United States ("GAAP"). Non-GAAP financial measures do not replace
and are not a substitute for our GAAP financial results, but are
provided to present the effects of expenses recorded by CBOT
Holdings, Inc. in connection with our proposed merger with Chicago
Mercantile Exchange Holdings, Inc. and the unsolicited offer from
IntercontinentalExchange, Inc., and to improve overall
understanding of our current financial performance and our
prospects for the future. Specifically, we believe the non-GAAP
financial results provide useful information to both management and
investors regarding certain additional financial and business
trends relating to financial condition and operating results. In
addition, our management uses these measures for reviewing
financial results and evaluating financial performance. About the
CBOT As one of the leading global derivative exchanges, the Chicago
Board of Trade provides a diverse mix of financial, equity, and
commodity futures and options-on-futures products. Building on its
159-year history, the CBOT continues to advance into the future
using the strength of deep liquidity, market integrity and
member-trader expertise. Using superior trading technology in both
electronic and open-auction trading platforms, the CBOT provides
premier customer service to risk managers and investors worldwide.
For more information visit our website at http://www.cbot.com/ .
Important Merger Information In connection with the proposed merger
of CBOT Holdings, Inc. ("CBOT") and the Chicago Mercantile Exchange
Holdings Inc. ("CME"), the parties have filed relevant materials
with the Securities Exchange Commission ("SEC"), including a joint
proxy statement/prospectus regarding the proposed transaction.
INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS
REGARDING THE PROPOSED TRANSACTION, BECAUSE IT CONTAINS IMPORTANT
INFORMATION. Investors are able to obtain a free copy of the joint
proxy statement/prospectus, as well as other filings containing
information about CBOT and CME without charge, at the SEC's website
( http://www.sec.gov/ ). Copies of the joint proxy
statement/prospectus can also be obtained when available, without
charge by directing a request to CBOT Holdings, Inc., Attention:
Investor Relations, at 141 West Jackson, Chicago, Illinois 60604 or
calling (312) 435-3500. CBOT, CME and their respective directors
and executive officers and other members of management and
employees may be deemed to be participants in the solicitation of
proxies from CBOT shareholders in respect of the proposed
transaction. Information regarding CBOT directors and executive
officers is available in CBOT's proxy statement for its 2007 annual
meeting of stockholders, dated March 29, 2007. Additional
information regarding the interests of such potential participants
is included in the joint proxy statement/prospectus and the other
relevant documents filed with the SEC. This document shall not
constitute an offer to sell or the solicitation of an offer to buy
any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended. Forward-Looking Statements Certain statements in this
document and its attachments may contain forward-looking
information regarding CBOT, CME and the combined company after the
completion of the transactions that are intended to be covered by
the safe harbor for "forward-looking statements" provided by the
Private Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, the benefits of the business
combination transaction involving CBOT and CME including future
financial and operating results, the combined company's plans,
objectives, expectations and intentions and other statements that
are not historical facts. Such statements are based upon the
current beliefs and expectations of the management of CBOT and CME
and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking
statements. The following factors, among others, could cause actual
results to differ from those set forth in the forward-looking
statements: the ability to obtain governmental approvals of the
transaction on the proposed terms and schedule; the failure of CBOT
shareholders or CME shareholders to approve the transaction; the
risk that the businesses will not be integrated successfully; the
risk that the cost savings and any other synergies from the
transaction may not be fully realized or may take longer to realize
than expected; disruption from the transaction making it more
difficult to maintain relationships with customers, employees or
suppliers; competition and its effect on pricing, spending,
third-party relationships and revenues; social and political
conditions such as war, political unrest or terrorism; general
economic conditions and normal business uncertainty. Additional
risks and factors are identified in CBOT's filings with the SEC,
including its Report on Form 10-K for the fiscal year ending
December 31, 2006 which is available on CBOT's website at
http://www.cbot.com/ . You should not place undue reliance on
forward-looking statements, which speak only as of the date of this
document. Except for any obligation to disclose material
information under the Federal securities laws, CBOT undertakes no
obligation to release publicly any revisions to any forward-
looking statements to reflect events or circumstances after the
date of this document. Other Information "Dow Jones," and "Dow
Jones U.S. Real Estate Index" are service marks of Dow Jones &
Company, Inc., and have been licensed for use for certain purposes
by CBOT. CBOT's DJUSRE Index futures contract based on the Dow
Jones U.S. Real Estate Index(SM), is not sponsored, endorsed, sold
or promoted by Dow Jones, or any of its subsidiaries or affiliates,
and none of Dow Jones, or any of its respective subsidiaries or
affiliates make any representation regarding the advisability of
investing in such contracts. CBOT Holdings, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited, in
thousands) 03/31/06 06/30/06 09/30/06 12/31/06 03/31/07 ASSETS
Current assets: Cash and cash equivalents: Unrestricted $99,882
$60,629 $92,950 $177,664 $181,077 Held under deposit and membership
transfers 4,966 5,279 2,790 1,503 6,792 Total cash and cash
equivalents 104,848 65,908 95,740 179,167 187,869 Restricted cash
29,203 9,182 9,220 975 3,115 Short term investments 253,979 327,956
338,426 312,411 362,366 Accounts receivable - net of allowance
50,962 55,959 60,099 62,451 79,280 Deferred income taxes 1,921
2,240 2,489 - - Prepaid expenses 23,233 20,778 19,020 9,492 15,355
Total current assets 464,146 482,023 524,994 564,496 647,985
Property and equipment: Land 34,234 34,234 34,234 34,234 34,234
Buildings and equipment 335,415 340,113 341,171 343,271 345,473
Furnishings and fixtures 189,188 180,813 184,098 184,913 185,854
Computer software and systems 93,719 93,294 93,987 93,942 93,935
Construction in progress 4,469 4,145 4,853 1,906 1,539 Total
property and equipment 657,025 652,599 658,343 658,266 661,035 Less
accumulated depreciation and amortization 412,108 415,691 426,282
433,989 445,241 Property and equipment - net 244,917 236,908
232,061 224,277 215,794 Other assets - net 21,229 23,403 23,304
22,557 21,618 Total assets $730,292 $742,334 $780,359 $811,330
$885,397 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable $12,965 $12,291 $13,125 $11,149 $20,256 Accrued
clearing services 15,023 16,490 15,670 16,226 18,796 Accrued real
estate taxes 6,078 8,108 5,605 7,473 5,500 Accrued payroll costs
2,966 4,931 7,739 9,859 3,996 Accrued exchange fee rebates 659 400
450 675 972 Accrued employee termination 1,755 1,141 786 624 31
Accrued liabilities 7,241 10,672 10,935 11,007 10,569 Funds held
for deposit and membership transfers 33,220 13,532 11,088 1,562
8,991 Current portion of long-term debt 19,455 20,014 11,877 10,716
- Income tax payable 24,425 6,001 10,325 10,428 35,371 Other
current liabilities 432 412 278 562 493 Total current liabilities
124,219 93,992 87,878 80,281 104,975 Long-term liabilities:
Deferred income tax liabilities 14,872 12,200 8,680 2,984 833 Other
liabilities 13,837 14,080 12,371 19,645 14,831 Total long-term
liabilities 28,709 26,280 21,051 22,629 15,664 Total liabilities
152,928 120,272 108,929 102,910 120,639 Stockholders' equity:
Common stock 53 53 53 53 53 Additional paid-in capital 487,404
488,651 489,195 489,817 490,664 Retained earnings 89,821 133,281
182,094 226,961 282,352 Accumulated other comprehensive income
(loss) 86 77 88 (8,411) (8,311) Total stockholders' equity 577,364
622,062 671,430 708,420 764,758 Total liabilities and stockholders'
equity $730,292 $742,334 $780,359 $811,330 $885,397 The current
balance sheet presentation does not reflect the adoption of
Financial Accounting Standards Board Interpretation ("Fin 48")
"Accounting for Uncertain Tax Positions", which is currently being
finalized. Any adjustment as a result of the adoption will not have
an impact on the income statement, but rather will result in an
adjustment to stockholders' equity. Any potential impact from the
adoption of Fin 48 will be reflected in the consolidated financial
statements filed with the Securities Exchange Commission in the
company's first quarter 10-Q. CBOT Holdings, Inc. and Subsidiaries
Consolidated Statements of Income (unaudited, in thousands, except
per share data) QUARTER ENDED 06/30/06 09/30/06 12/31/06 03/31/07
03/31/06 Revenues: Exchange fees $91,855 $93,901 $104,448 $117,680
$83,120 Clearing fees 25,366 29,265 30,061 33,973 23,231 Market
data 26,286 23,709 24,970 25,082 23,643 Building 5,910 5,768 5,956
5,915 5,505 Services 4,299 4,431 3,280 4,234 4,236 Other 407 550
543 853 351 Total revenues 154,123 157,624 169,258 187,737 140,086
Expenses: Clearing services 19,490 18,671 19,225 21,796 18,023
Contracted license fees 1,914 1,771 1,858 2,119 1,738 Salaries and
benefits 19,028 18,955 18,820 20,487 19,102 Depreciation and
amortization 14,789 13,671 12,252 11,520 14,086 Professional
services 4,558 3,661 14,401 16,654 3,939 General and administrative
expenses 4,546 3,885 4,837 4,477 5,076 Building operating costs
6,002 5,406 6,450 6,420 6,603 Information technology services
11,885 13,282 11,951 11,772 12,230 Programs 3,086 2,497 3,525 2,991
2,627 Severance and related costs (22) 67 133 (18) 1,036 Operating
expenses 85,276 81,866 93,452 98,218 84,460 Income from operations
68,847 75,758 75,806 89,519 55,626 Non-operating Income and Expense
Interest income 4,363 5,382 5,879 6,376 3,483 Interest expense
(388) (304) (236) (216) (585) Non-operating income 3,975 5,078
5,643 6,160 2,898 Income before income taxes 72,822 80,836 81,449
95,679 58,524 Income taxes Current 32,168 35,460 33,585 41,992
25,466 Deferred (3,042) (3,777) 2,794 (2,122) (2,291) Total income
taxes 29,126 31,683 36,379 39,870 23,175 Income before equity in
unconsolidated subsidiary 43,696 49,153 45,070 55,809 35,349 Equity
in loss of unconsolidated subsidiary - net of tax (237) (340) (203)
(418) (246) Net income $43,459 $48,813 $44,867 $55,391 $35,103
Earnings per share: Basic $0.82 $0.92 $0.85 $1.05 $0.66 Diluted
$0.82 $0.92 $0.85 $1.05 $0.66 Weighted average number of common
stock shares: Basic 52,792 52,794 52,795 52,798 52,787 Diluted
52,848 52,865 52,887 52,900 52,840 At December 31, 2006, the
company changed the format of its income statement. The company
reclassified interest income and interest expense from revenue and
operating expense, respectively, to a non-operating income and
expense section in the consolidated statements of income.
Accordingly, prior period amounts have been reclassified to conform
to current period presentation. Operating expense makeup:
Volume-based 21,404 20,442 21,083 23,915 19,761 Baseline 63,894
61,357 72,236 74,321 63,663 Other (22) 67 133 (18) 1,036 Total
85,276 81,866 93,452 98,218 84,460 CBOT Holdings, Inc. and
Subsidiaries Consolidated Statements of Cash Flows (unaudited, in
thousands) QUARTER ENDED 06/30/06 09/30/06 12/31/06 03/31/07
03/31/06 Cash flows from operating activities: Net income $43,459
$48,813 $44,867 $55,391 $35,103 Adjustments to reconcile net income
to net cash flows from operating activities: Depreciation and
amortization 14,789 13,671 12,252 11,520 14,086 Deferred income
taxes (benefit) (3,042) (3,777) 2,794 (2,122) (2,291) Stock-based
compensation 1,248 544 543 847 413 Change in allowance for doubtful
accounts 85 20 (368) 27 - (Gain)/loss on foreign currency
transaction 11 3 - - (2) (Gain)/loss on sale or retirement of fixed
assets - 21 38 10 7 Equity in loss of unconsolidated subsidiary 394
567 338 418 411 Amortization of short term investment discounts
(125) (2,674) 2,545 (1,252) (1,094) Changes in assets and
liabilities: Accounts receivable (2,150) (4,602) (651) (18,065)
(16,654) Income tax receivable/ payable (18,424) 4,324 103 24,943
18,674 Prepaid expenses 2,455 1,758 3,003 (5,863) (4,823) Other
assets (2,628) 428 528 418 376 Accounts payable (674) 834 (1,976)
9,107 (7,490) Accrued clearing services 1,467 (820) 556 2,570 3,737
Accrued real estate taxes 2,030 (2,503) 1,868 (1,973) (1,652)
Accrued payroll costs 1,965 2,808 2,120 (5,863) (3,385) Accrued
exchange fee rebates (259) 50 225 297 (541) Accrued employee
termination (614) (355) (162) (593) (1,308) Accrued liabilities
1,047 148 (1,877) 771 (702) Funds held for deposit and membership
transfers (19,688) (2,444) (9,526) 7,429 18,399 Other current
liabilities (20) (134) (105) (13) (4,751) Other long-term
liabilities 243 (1,709) 140 (4,814) 253 Net cash flows from
operating activities 21,569 54,971 57,255 73,190 46,766 Cash flows
from investing activities: Acquisition of property and equipment
(6,658) (8,721) (4,550) (2,929) (4,195) Purchase of short term
investments (275,633) (85,151) (265,940) (224,285) (124,483)
Proceeds from short term investments 201,781 77,355 289,410 175,582
111,486 Restricted cash 20,021 (38) 8,245 (2,140) (15,172) Proceeds
from sale of property and equipment - (1) - - 93 Investment in
joint ventures (20) (1,000) (10) - (254) Net cash flows from (used
in) investing activities (60,509) (17,556) 27,155 (53,772) (32,525)
Cash flows from financing activities: Repayments of borrowings -
(7,583) (1,062) (10,716) (10,714) Excess tax benefit of stock
compensation - - 79 - - Net cash flows used in financing activities
- (7,583) (983) (10,716) (10,714) Net increase (decrease) in cash
and cash equivalents (38,940) 29,832 83,427 8,702 3,527 Cash and
cash equivalents - beginning of period 104,848 65,908 95,740
179,167 101,321 Cash and cash equivalents - end of period $65,908
$95,740 $179,167 $187,869 $104,848 Cash paid for: Interest $110
$550 $10 $377 $736 Income taxes (net of refunds) $50,434 $30,910
$33,268 $17,049 $6,627 Non-cash activity: FAS 159 pension
adjustment $- $- $14,176 $- $- Reconciliation of GAAP to Non-GAAP
Financial Measures CBOT used non-GAAP financial measures of
operating performance to eliminate merger-related expenses incurred
in the first quarter of 2007. Non-GAAP measures do not replace and
are not a substitute for our GAAP financial results but are
provided to improve overall understanding of our current financial
performance and our prospects for the future. Quarter Ended March
31, 2007 ($s in millions, except per share) Merger-related Adjusted
As Reported Expenses (Non-GAAP) Income from Operations $89.5 $13.0
$102.5 Operating Margin % 47.7% 6.9% 54.6% Net Income $55.4 $13.0
$68.4 Diluted Earnings Per Share $1.05 $0.24 $1.29 DATASOURCE: CBOT
Holdings, Inc. CONTACT: Media, Maria Gemskie, Craig Grabiner,
+1-312-435-3620, , or Investor, Debbie Koopman, +1-312-789-8532, ,
all of CBOT Holdings Web site: http://www.cbot.com/
Copyright