The NASDAQ OMX Group, Inc.
27.07.2011 13:00
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Reports Strong Second Quarter 2011 Results
Non-GAAP Diluted EPS of $0.62 Represents 19% Increase Over Q210 Results
NEW YORK, 2011-07-27 13:00 CEST (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc.
('NASDAQ OMX(r)') (Nasdaq:NDAQ) reported strong results for the second quarter
of
2011. Net income attributable to NASDAQ OMX for the second quarter of 2011 was
$92 million, or $0.51 per diluted share, compared with $104 million, or $0.57
per diluted share, in the first quarter of 2011, and $96 million, or $0.46 per
diluted share, in the second quarter of 2010.
Included in the second quarter of 2011 results are $29 million of expenses
associated with merger and strategic initiatives.
Financial Highlights:
-- Net exchange revenues were $416 million, a 7% increase over Q210 results.
-- Non-GAAP operating income was $187 million with an operating margin of 45%.
-- Non-GAAP net income was $112 million, up from $108 million in the prior
year quarter.
-- Non-GAAP diluted EPS increased to $0.62, or 19% over Q210 results.
-- GAAP diluted EPS increased to $0.51, up $0.05 from $0.46 in the second
quarter of 2010.
Summary of Non-GAAP Results1
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-
($ millions, except EPS) Q211 Q111 Q210
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Net Exchange Revenues2 $ 416 $ 415 $ 390
Total Operating Expenses 229 223 207
Operating Income 187 192 183
Net Income 112 110 108
Diluted Earnings Per Share $ 0.62 $ 0.61 $ 0.52
1. A complete reconciliation of GAAP to non-GAAP results is included in the
attached tables.
2. Represents revenues less transaction rebates, brokerage, clearance and
exchange fees.
Bob Greifeld, Chief Executive Officer and President, NASDAQ OMX said:
'NASDAQ OMX continues to deliver record earnings growth, proving the resiliency
of our business model. This was accomplished with the strength of our top line
as net revenues grew for the third consecutive quarter and are up 11% for the
first half of the year when compared to the same period last year. With a sharp
eye on execution we've achieved double digit growth in net revenues during a
time when ongoing economic uncertainty has created a challenging environment
for many of our volume related businesses. We are confident in our ability to
continue growing the business organically and to effectively leverage the
success which is borne out by our record financial performance.'
Business Highlights
U.S. Transaction Services
-- NASDAQ OMX continued its success in U.S. equity options as it was again
number one in market share during the second quarter of 2011, the fourth
consecutive quarter that it achieved this distinction. Contracts traded
increased by 15% when compared to the second quarter of 2010.
-- The NASDAQ Closing Cross continued to perform exceptionally well during
periods of high activity. Early in the quarter it was used for the special
rebalance of the NASDAQ-100 Index(r) (Nasdaq:NDX), during which a total of
329.2 million shares representing $12.7 billion were executed in 779
milliseconds. And, in June, it was also used for the eighth consecutive
year to reconfigure the entire family of U.S. Russell indexes during their
annual reconstitution. In 1.1 seconds the NASDAQ Closing Cross executed
approximately 750.8 million shares representing $10.6 billion across some
2,298 NASDAQ-listed stocks.
European Transaction Services
-- NASDAQ OMX successfully rolled out bond trading on Genium INET for five of
its Nordic and Baltic markets, moving all fixed income activity onto one
unified platform. With over 5,000 listed bonds, NASDAQ OMX is the central
marketplace for fixed income activities in the Nordic and Baltic regions.
-- Witnessed increases in derivative contract trading at N2EX, NASDAQ OMX's UK
power market. Volume in the second quarter of 2011 reached 680 gigawatt
hours ('GWh'), up from 52 GWhs in the first quarter of 2011. Membership in
the market also continues to grow, with 8 members having joined the
derivatives market and 31 members in the physical market.
Issuer Services
-- Realized continued success in Corporate Solutions as revenues have grown
21% when compared to the second quarter of 2010. Recent product launches
include SocialStream and QTarget. SocialStream is the first social media
aggregator for corporate websites and provides users with the ability to
control and aggregate all outbound corporate messaging into one,
comprehensive location. QTarget is an investor-focused resource that was
developed to better assist companies in prioritizing their investor
outreach efforts, and is the only product on the market with an online
module featuring a qualitative investor assessment.
-- NASDAQ OMX welcomed 30 initial public offerings during the quarter,
including Yandex N.V., which raised over $1.3 billion in proceeds. Yandex
N.V. is one of the largest IPOs this year and is the largest information
technology IPO since Google in 2005. Other notable IPOs this quarter were
Zipcar and HomeAway.
Market Technology
-- SIX Swiss Exchange announced that it has extended its contract with NASDAQ
OMX and will upgrade its existing SWXess equities trading platform with
NASDAQ OMX's X-stream INET technology. The system upgrade will enable
significant latency and throughput advantages for the SIX Swiss Exchange
and its trading members in all asset classes. X-stream INET represents the
latest commercial exchange technology offering from NASDAQ OMX and
successfully combines NASDAQ OMX's world leading INET technology with the
proven X-stream platform, resulting in one of the most efficient and
scalable trading platforms in the world.
Operating Highlights
U.S. Cash Equities
-- Total matched market share of U.S. cash equities was 22.0% in the second
quarter of 2011, with NASDAQ matching 18.9%, NASDAQ OMX BX ('BX') matching
2.0% and NASDAQ OMX PSX ('PSX') matching 1.1%. Total matched market share
was 19.2% in the first quarter of 2011 (NASDAQ: 16.5%; BX: 1.8%; PSX 0.9%)
and 22.8% in the second quarter of 2010 (NASDAQ: 19.0%; BX: 3.8%). Total
matched share volume was 99.7 billion shares in the second quarter of 2011,
compared with 94.8 billion shares in the first quarter of 2011 and 147.9
billion shares in the second quarter of 2010.
European Cash Equities
-- Total average daily volume was 320 thousand trades in the second quarter of
2011, compared with 339 thousand in the first quarter of 2011 and 325
thousand in the second quarter of 2010. Total average daily value traded
was $4.0 billion in the second quarter of 2011, compared with $4.1 billion
in the first quarter of 2011 and $3.7 billion in the second quarter of
2010.
U.S. Options
-- Total market share of U.S. equity options was 28.9% in the second quarter
of 2011, with PHLX matching 24.3% and NOM matching 4.6%. Total market share
of U.S. equity options was 28.7% in the first quarter of 2011 (PHLX: 23.5%;
NOM: 5.2%) and 25.1% in the second quarter of 2010 (PHLX: 21.7%; NOM:
3.4%). Total industry average daily volume was 15.8 million contracts in
the second quarter of 2011, compared with 17.3 million contracts in the
first quarter of 2011 and 15.7 million contracts in the second quarter of
2010.
European Derivatives
-- In the second quarter of 2011, the average daily volume of options, futures
and fixed-income contracts was 428 thousand (Q111: 456 thousand; Q210: 461
thousand). Within NASDAQ OMX Commodities, cleared power contracts during
the second quarter of 2011 totaled 378 terawatt hours ('TWh') (Q111: 446
TWh; Q210: 492 TWh).
Global Listings
-- New listings totaled 53 in the second quarter of 2011 compared with 38 in
the first quarter of 2011 and 65 in the second quarter of 2010. New
listings for the second quarter of 2011 included 30 initial public
offerings, compared with 23 in the first quarter of 2011 and 27 in the
second quarter of 2010.
Market Technology
-- Total order intake, which represents the value of orders signed, was $56
million during the second quarter of 2011, compared with $6 million in the
first quarter of 2011 and $12 million in the second quarter of 2010. At the
end of the second quarter of 2011, total order value, which represents the
total contract value of orders signed that are yet to be recognized as
revenue, was $483 million, compared with $471 million at the end of the
first quarter of 2011 and $453 million at the end of the second quarter of
2010.
Lee Shavel, Chief Financial Officer, said:
'We are very pleased with our results this quarter as they mark another high
point in NASDAQ OMX's track record of growing revenues and profits. This
performance put us in a position to take another step in a long stated
objective of ours, which is to reduce our outstanding debt obligations.
Payments of $120 million this year have contributed to a significant reduction
of our debt to EBITDA ratio, which has declined from 2.9x at the end of 2010 to
2.6x currently. Sustained strong cash flow will allow us to continue to
deleverage and put us in a position to explore efficient capital allocation
alternatives as the year progresses.'
Expense Guidance
Total run rate operating expenses for the full year of 2011 are expected to be
in the range of $910 million to $925 million, excluding approximately $40
million in merger related and other infrequent charges.
Financial Review
Revenues
Revenues less transaction rebates, brokerage, clearance and exchange fees ('net
exchange revenues') were $416 million for the second quarter of 2011, an
increase of $1 million from the first quarter of 2011 and an increase of $26
million, or 7%, from the second quarter of 2010. Changes in the exchange rates
of various currencies as compared to the U.S. dollar had the impact of
increasing revenues in the second quarter of 2011 by $6 million when compared
to the first quarter of 2011, and by $23 million when compared to the second
quarter of 2010.
Market Services
Market Services net exchange revenues were $277 million for the second quarter
of 2011, down 1% when compared to the first quarter of 2011 results but up 3%
when compared to the second quarter of 2010.
Transaction Services
Net exchange revenues from Transaction Services were $189 million for the
second quarter of 2011, a decrease of $6 million, or 3%, when compared to the
first quarter of 2011, but an increase of $3 million, or 2%, when compared to
the second quarter of 2010.
-- Total net cash equity trading revenues were $59 million for the second
quarter of 2011, down $3 million, or 5%, from the first quarter of 2011,
and down $17 million, or 22%, from the prior year quarter.
-- Net U.S. cash equity trading revenues decreased $3 million when compared to
the first quarter of 2011. The decline is primarily due to reimbursements
made to market makers to compensate them for losses associated with a
system maintenance error. Net revenues decreased $18 million when compared
to the prior year quarter due primarily to lower industry trading volumes.
-- Included in U.S. cash equity trading revenues in the second quarter of 2011
are $74 million in SEC Section 31 fees, compared with $66 million in the
first quarter of 2011 and $81 million in the second quarter of 2010.
Corresponding cost of revenues, reflecting the reimbursement of these fees
to the SEC, is included in brokerage, clearance and exchange fees.
-- European cash equity trading revenues were equal to results from the first
quarter of 2011 and up $1 million, or 5%, from the prior year quarter. The
increase when compared to the second quarter of 2010 is primarily due to
changes in the exchange rates of various currencies as compared to the U.S.
dollar.
-- Total net derivative trading and clearing revenues were $75 million for the
second quarter of 2011, down $5 million, or 6%, from the first quarter of
2011 but up $6 million, or 9%, from the prior year quarter.
-- Net U.S. derivative trading and clearing revenues decreased $4 million when
compared to the first quarter of 2011 but increased $4 million when
compared to second quarter of 2010 net revenues. The decrease when compared
to the first quarter of 2011 is primarily due to lower industry trading
volumes. The increase when compared to the second quarter of 2010 is driven
by higher market share.
-- European derivative trading and clearing revenues decreased $1 million from
the first quarter of 2011, but increased $2 million when compared to the
second quarter of 2010. When compared to the first quarter of 2011, the
decrease in revenue is primarily due to lower derivative trading activity,
offset somewhat by the favorable impact of changes in the exchange rates of
various currencies as compared to the U.S. dollar. The increase when
compared to the second quarter of 2010 is due to higher activity for
short-term fixed-income products and to changes in the exchange rates of
various currencies as compared to the U.S. dollar, offset somewhat by lower
trading activity for index options and futures.
-- Access Services revenues were $55 million for the second quarter of 2011,
an increase of $2 million, or 4%, when compared to the first quarter of
2011 and an increase of $14 million, or 34%, when compared to the prior
year quarter. The growth in revenues when compared to the first quarter of
2011 is primarily due to increased demand for services. The growth in
revenues when compared to the second quarter of 2010 is due to increased
demand for services and to the acquisition of FTEN, which was completed in
December 2010.
Market Data
Market Data revenues were $83 million for the second quarter of 2011, up $2
million, or 2%, when compared to the first quarter of 2011, and up $4 million,
or 5%, when compared to the second quarter of 2010.
-- Net U.S. tape plans revenues were $30 million in the second quarter of
2011, up $3 million when compared to revenues in the first quarter of 2011,
and equal to revenues in the prior year quarter. The increase in revenues
when compared to the first quarter of 2011 is due to increases in trading
and quoting market share of U.S equities, as calculated under the
SEC-mandated market data revenue quoting and trading formula.
-- U.S. market data products revenues were $32 million in the second quarter
of 2011, equal to revenues reported in the first quarter of 2011 and in the
prior year quarter.
-- European market data products revenues were $21 million in the second
quarter of 2011, a decrease of $1 million, or 5%, when compared to the
first quarter of 2011, but an increase of $4 million, or 24%, when compared
to the prior year quarter. The decrease when compared to the first quarter
of 2011 is primarily due to a reduction in audit revenues in the second
quarter of 2011. The increase when compared to the second quarter of 2010
is primarily due to modified fees for market data products and to changes
in the exchange rates of various currencies as compared to the U.S. dollar.
Issuer Services
Issuer Services revenues were $93 million for the second quarter of 2011, an
increase of $2 million, or 2%, when compared to the first quarter of 2011, and
an increase of $7 million, or 8%, when compared to the second quarter of 2010.
Global Listing Services
Global Listing Services revenues were $80 million for the second quarter of
2011, up $2 million, or 3%, when compared to the first quarter of 2011, and up
$6 million, or 8%, when compared to the second quarter of 2010. The increase
when compared to the first quarter of 2011 is due to higher Corporate Solutions
revenues and an increase in European listing revenues. When compared to the
prior year period, revenue growth is primarily due to increases in Corporate
Solutions revenues, resulting from higher demand for services from listed
companies, and increases in European listing revenues.
Global Index Group
Global Index Group revenues were $13 million for the second quarter of 2011,
equal to revenues in the first quarter of 2011 and up $1 million, or 8%, when
compared to the second quarter of 2010. Higher revenues when compared to the
prior year period are primarily due to increases in asset sizes of licensed
ETFs as well as additional demand for new licensed ETFs and other financial
products.
Market Technology
Market Technology revenues were $46 million for the second quarter of 2011, up
$3 million, or 7%, from the first quarter of 2011, and up $12 million, or 35%,
when compared to the second quarter of 2010. The increase when compared to the
first quarter of 2011 is due to higher demand for change requests and support
services. Also contributing to the increase are changes in the exchange rates
of various currencies as compared to the U.S. dollar. The increase when
compared to the second quarter of 2010 is primarily due to the inclusion of
revenue associated with SMARTS, which was acquired during the third quarter of
2010. Also contributing to the increase in revenues when compared to the second
quarter of 2010 are revenues associated with recently delivered projects and
changes in the exchange rates of various currencies as compared to the U.S.
dollar.
Operating Expenses
Total non-GAAP operating expenses increased $6 million, or 3%, to $229 million
in the second quarter of 2011 from $223 million in the first quarter of 2011,
and increased $22 million, or 11%, from $207 million in the prior year quarter.
The increase when compared to the first quarter of 2011 is primarily driven by
the impact of changes in the exchange rates of various currencies as compared
to the U.S. dollar, which had the effect of increasing expenses by $4 million
when compared to the first quarter of 2011. Also contributing to the increase
when compared to the first quarter of 2011 are higher compensation expenses.
When compared to the second quarter of 2010, the increase is primarily due to
higher expenses associated with FTEN (acquired in the fourth quarter of 2010),
SMARTS (acquired in the third quarter of 2010), and Zoomvision Mamato (acquired
in the fourth quarter of 2010). Also contributing to the increase are changes
in the exchange rates of various currencies as compared to the U.S. dollar,
which had the effect of increasing expenses by $16 million.
Net Interest Expense
Net interest expense was $28 million for the second quarter of 2011, compared
with $30 million for the first quarter of 2011 and $24 million for the second
quarter of 2010. The decrease in net interest expense when compared to the
first quarter of 2011 is due primarily to lower outstanding debt obligations in
the second quarter of 2011. The increase in net interest expense when compared
to the second quarter of 2010 is due to the issuance of senior bonds in
December of 2010 to partially finance the repurchase of shares. Included in
total net interest expense for the second quarter of 2011 is $24 million in
interest expense, $4 million of non-cash expense associated with the accretion
of debt discounts, $2 million in debt issuance amortization expense, and $1
million of other bank-related fees. Interest income for the second quarter of
2011 was $3 million.
Earnings Per Share
On a non-GAAP basis, second quarter 2011 earnings per diluted share were $0.62
as compared to non-GAAP earnings per diluted share of $0.61 in the first
quarter of 2011 and non-GAAP earnings per diluted share of $0.52 in the prior
year quarter. NASDAQ OMX's weighted average shares outstanding used to
calculate diluted earnings per share was 181 million for the first and second
quarters of 2011 and 209 million for the second quarter of 2010.
About NASDAQ OMX
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers
trading, exchange technology and public company services across six continents,
with more than 3,500 listed companies. NASDAQ OMX offers multiple capital
raising solutions to companies around the globe, including its U.S. listings
market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the
U.S. 144A sector. The company offers trading across multiple asset classes
including equities, derivatives, debt, commodities, structured products and
exchange-traded funds. NASDAQ OMX technology supports the operations of over 70
exchanges, clearing organizations and central securities depositories in more
than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal
entities but describe the common offering from NASDAQ OMX exchanges in
Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more
information about NASDAQ OMX, visit http://www.nasdaqomx.com. *Please follow
NASDAQ OMX on Facebook (http://www.facebook.com/pages/NASDAQ-OMX/108167527653)
and Twitter (http://www.twitter.com/nasdaqomx).
Non-GAAP Information
In addition to disclosing results determined in accordance with GAAP, NASDAQ
OMX also discloses certain non-GAAP results of operations, including net income
attributable to NASDAQ OMX, diluted earnings per share, operating income and
operating expenses that make certain adjustments or exclude certain charges and
gains that are described in the reconciliation table of GAAP to non-GAAP
information provided at the end of this release. Management believes that this
non-GAAP information provides investors with additional information to assess
NASDAQ OMX's operating performance by making certain adjustments or excluding
costs or gains and assists investors in comparing our operating performance to
prior periods. Management uses this non-GAAP information, along with GAAP
information, in evaluating its historical operating performance.
The non-GAAP information is not prepared in accordance with GAAP and may not be
comparable to non-GAAP information used by other companies. The non-GAAP
information should not be viewed as a substitute for, or superior to, other
data prepared in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this communication contains forward-looking statements
that involve a number of risks and uncertainties. NASDAQ OMX cautions readers
that any forward-looking information is not a guarantee of future performance
and that actual results could differ materially from those contained in the
forward-looking information. Such forward-looking statements include, but are
not limited to (i) projections about our future financial results, growth,
trading volumes, tax benefits and achievement of synergy targets, (ii)
statements about the implementation dates and benefits of certain strategic
initiatives, (iii) statements about our integrations of our recent acquisitions
and (iv) other statements that are not historical facts. Forward-looking
statements involve a number of risks, uncertainties or other factors beyond
NASDAQ OMX's control. These factors include, but are not limited to, NASDAQ
OMX's ability to implement its strategic initiatives, economic, political and
market conditions and fluctuations, government and industry regulation,
interest rate risk, U.S. and global competition, and other factors detailed in
NASDAQ OMX's filings with the U.S. Securities Exchange Commission, including
its annual reports on Form 10-K and quarterly reports on Form 10-Q which are
available on NASDAQ OMX's website at http://www.nasdaqomx.com and the SEC's
website at www.sec.gov. NASDAQ OMX undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new information, future
events or otherwise.
NDAQF
The NASDAQ OMX Group, Inc.
Consolidated Statements of Income
(in millions, except per share amounts)
(unaudited)
Three Months Ended
-----------------------
June March June
30, 31, 30,
2011 2011 2010
-----------------------
Revenues:
Market Services $ 699 $ 683 $ 766
-----------------------
Cost of revenues:
Transaction rebates (322) (309) (384)
Brokerage, clearance and exchange fees (100) (93) (112)
-----------------------
Total cost of revenues (422) (402) (496)
-----------------------
Total Market Services revenues less transaction rebates, 277 281 270
brokerage, clearance and exchange fees
Issuer Services 93 91 86
Market Technology 46 43 34
-----------------------
Revenues less transaction rebates, brokerage, clearance 416 415 390
and exchange fees
-----------------------
Operating Expenses:
Compensation and benefits 115 112 103
Marketing and advertising 5 5 5
Depreciation and amortization 26 27 25
Professional and contract services 22 21 20
Computer operations and data communications 16 17 14
Occupancy 23 23 21
Regulatory 8 9 9
Merger and strategic initiatives 29 5 1
General, administrative and other 14 13 13
-----------------------
Total operating expenses 258 232 211
-----------------------
Operating income 158 183 179
Interest income 3 2 2
Interest expense (31) (32) (26)
Dividend and investment income (loss) -- (1) 1
Loss on divestiture of businesses -- -- (11)
Income from unconsolidated investees, net 1 -- 1
-----------------------
Income before income taxes 131 152 146
Income tax provision 40 49 51
-----------------------
Net income 91 103 95
Net loss attributable to noncontrolling interests 1 1 1
-----------------------
Net income attributable to NASDAQ OMX $ 92 $ 104 $ 96
=======================
Basic and diluted earnings per share:
Basic earnings per share $ 0.52 $ 0.59 $ 0.46
=======================
Diluted earnings per share $ 0.51 $ 0.57 $ 0.46
=======================
Weighted-average common shares outstanding for earnings
per share:
Basic 177 176 206
Diluted 181 181 209
The NASDAQ OMX Group, Inc.
Revenue Detail
(in millions)
(unaudited)
Three Months Ended
-----------------------
June March June
30, 31, 30,
2011 2011 2010
-----------------------
MARKET SERVICES
Transaction Services
Cash Equity Trading Revenues:
U.S. cash equity trading $ 387 $ 365 $ 498
-----------------------
Cost of revenues:
Transaction rebates (258) (242) (336)
Brokerage, clearance and exchange fees (93) (84) (108)
-----------------------
Total U.S. cash equity cost of revenues (351) (326) (444)
-----------------------
Net U.S. cash equity trading revenues 36 39 54
European cash equity trading 23 23 22
-----------------------
Total net cash equity trading revenues 59 62 76
-----------------------
Derivative Trading and Clearing Revenues:
U.S. derivative trading and clearing 115 124 92
-----------------------
Cost of revenues:
Transaction rebates (64) (67) (48)
Brokerage, clearance and exchange fees (7) (9) (4)
-----------------------
Total U.S. derivative trading and clearing cost of (71) (76) (52)
revenues
-----------------------
Net U.S. derivative trading and clearing revenues 44 48 40
European derivative trading and clearing 31 32 29
-----------------------
Total net derivative trading and clearing revenues 75 80 69
Access Services Revenues 55 53 41
-----------------------
Total Transaction Services revenues less transaction 189 195 186
rebates, brokerage, clearance and exchange fees
-----------------------
Market Data Revenues:
Net U.S. tape plans 30 27 30
U.S. market data products 32 32 32
European market data products 21 22 17
-----------------------
Total Market Data revenues 83 81 79
-----------------------
Broker Services Revenues 4 4 4
-----------------------
Other Market Services Revenues 1 1 1
-----------------------
Total Market Services revenues less transaction 277 281 270
rebates, brokerage, clearance and exchange fees
-----------------------
ISSUER SERVICES
Global Listing Services Revenues:
Annual renewal 29 29 28
Listing of additional shares 10 10 10
Initial listing 4 4 5
-----------------------
Total U.S. listing services 43 43 43
European listing services 14 13 12
Corporate Solutions 23 22 19
-----------------------
Total Global Listing Services revenues 80 78 74
Global Index Group Revenues 13 13 12
-----------------------
Total Issuer Services revenues 93 91 86
-----------------------
MARKET TECHNOLOGY
License, support and facility management 30 28 24
Delivery project 6 6 4
Change request, advisory and broker surveillance 10 9 6
-----------------------
Total Market Technology revenues 46 43 34
-----------------------
Total revenues less transaction rebates, brokerage, $ 416 $ 415 $ 390
clearance and exchange fees
=======================
The NASDAQ OMX Group, Inc.
Condensed Consolidated Balance Sheets
(in millions)
June 30, December 31,
2011 2010
--------------------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 578 $ 315
Restricted cash 59 60
Financial investments, at fair value 320 253
Receivables, net 344 298
Deferred tax assets 24 13
Open clearing contracts:
Derivative positions, at fair value 1,417 4,037
Resale agreements, at contract value 3,560 3,441
Other current assets 127 93
--------------------------
Total current assets 6,429 8,510
Non-current restricted cash 105 105
Property and equipment, net 165 164
Non-current deferred tax assets 273 433
Goodwill 5,345 5,127
Intangible assets, net 1,767 1,719
Other non-current assets 133 149
--------------------------
Total assets $ 14,217 $ 16,207
==========================
Liabilities
Current liabilities:
Accounts payable and accrued expenses $ 180 $ 142
Section 31 fees payable to SEC 147 82
Accrued personnel costs 88 122
Deferred revenue 202 122
Other current liabilities 158 119
Deferred tax liabilities 27 26
Open clearing contracts:
Derivative positions, at fair value 1,417 4,037
Repurchase agreements, at contract value 3,560 3,441
Current portion of debt obligations 140 140
--------------------------
Total current liabilities 5,919 8,231
Debt obligations 2,069 2,181
Non-current deferred tax liabilities 712 698
Non-current deferred revenue 170 170
Other non-current liabilities 187 198
--------------------------
Total liabilities 9,057 11,478
Commitments and contingencies
Equity
NASDAQ OMX stockholders' equity:
Common stock 2 2
Additional paid-in capital 3,780 3,780
Common stock in treasury, at cost (770) (796)
Accumulated other comprehensive loss (62) (272)
Retained earnings 2,200 2,004
--------------------------
Total NASDAQ OMX stockholders' equity 5,150 4,718
Noncontrolling interests 10 11
--------------------------
Total equity 5,160 4,729
--------------------------
Total liabilities and equity $ 14,217 $ 16,207
==========================
The NASDAQ OMX Group, Inc.
Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income
and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income and
Operating Expenses
(in millions, except per share amounts)
(unaudited)
Three Months Ended
------------------------
June March June
30, 31, 30,
2011 2011 2010
------------------------
GAAP net income attributable to NASDAQ OMX: $ 92 $ 104 $ 96
--------------------------------------------------------
Non-GAAP adjustments:
Merger and strategic initiatives 29 5 1
Sublease reserves -- 2 --
Asset retirements -- 1 --
Workforce reductions (acquisition related) -- -- 3
Loss on divestiture of businesses -- -- 11
Other -- 1 1
------------------------
Total non-GAAP adjustments 29 9 16
Adjustment to the income tax provision to reflect (9) (3) (7)
non-GAAP adjustments(1)
Significant tax adjustments, net -- -- 3
------------------------
Total non-GAAP adjustments, net of tax 20 6 12
Non-GAAP net income attributable to NASDAQ OMX: $ 112 $ 110 $ 108
========================
GAAP diluted earnings per common share: $ 0.51 $ 0.57 $ 0.46
--------------------------------------------------------
Total adj. from non-GAAP net income above 0.11 0.04 0.06
------------------------
Non-GAAP diluted earnings per common share: $ 0.62 $ 0.61 $ 0.52
========================
Three Months Ended
------------------------
June March June
30, 31, 30,
2011 2011 2010
------------------------
GAAP operating income: $ 158 $ 183 $ 179
--------------------------------------------------------
Non-GAAP adjustments:
Merger and strategic initiatives 29 5 1
Sublease reserves -- 2 --
Asset retirements -- 1 --
Workforce reductions (acquisition related) -- -- 3
Other -- 1 --
------------------------
Total non-GAAP adjustments 29 9 4
------------------------
Non-GAAP operating income $ 187 $ 192 $ 183
========================
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Total revenues less transaction rebates, brokerage, $ 416 $ 415 $ 390
clearance and exchange fees
Non-GAAP operating margin (2) 45% 46% 47%
--------------------------------------------------------------------------------
-
(1) We determine the tax effect of each item based on the tax rules in the
respective jurisdiction where the transaction occurred.
(2) Non-GAAP operating margin equals non-GAAP operating income divided by total
revenues less transaction rebates, brokerage, clearance and exchange fees.
The NASDAQ OMX Group, Inc.
Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income
and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income and
Operating Expenses
(in millions)
(unaudited)
Three Months Ended
----------------------------------
June 30, March 31, June 30,
2011 2011 2010
----------------------------------
GAAP operating expenses: $ 258 $ 232 $ 211
----------------------------------------------
Non-GAAP adjustments:
Merger and strategic initiatives (29) (5) (1)
Sublease reserves -- (2) --
Asset retirements -- (1) --
Workforce reductions (acquisition related) -- -- (3)
Other -- (1) --
----------------------------------
Total non-GAAP adjustments (29) (9) (4)
----------------------------------
Non-GAAP operating expenses $ 229 $ 223 $ 207
==================================
The NASDAQ OMX Group, Inc.
Quarterly Key Drivers Detail
(unaudited)
Three Months Ended
------------------------------
June 30, March 31, June 30,
2011 2011 2010
------------------------------
Market Services
Cash Equity Trading
NASDAQ securities
--------------------------------------------------
Average daily share volume (in billions) 2.00 2.05 2.53
Matched market share executed on NASDAQ 28.8% 26.8% 28.8%
Matched market share executed on NASDAQ OMX BX 1.8% 1.4% 3.2%
Matched market share executed on NASDAQ OMX PSX 1.2% 0.9% 0.0%
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 32.2% 32.7% 39.0%
Total market share (1) 64.0% 61.8% 71.0%
New York Stock Exchange, or NYSE securities
--------------------------------------------------
Average daily share volume (in billions) 3.91 4.54 5.96
Matched market share executed on NASDAQ 14.0% 11.8% 14.0%
Matched market share executed on NASDAQ OMX BX 2.1% 2.0% 4.1%
Matched market share executed on NASDAQ OMX PSX 0.8% 0.8% 0.0%
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 27.8% 29.9% 33.5%
Total market share (1) 44.7% 44.5% 51.6%
NYSE Amex and regional securities
--------------------------------------------------
Average daily share volume (in billions) 1.29 1.35 1.84
Matched market share executed on NASDAQ 18.5% 16.8% 21.7%
Matched market share executed on NASDAQ OMX BX 1.9% 1.7% 3.5%
Matched market share executed on NASDAQ OMX PSX 2.0% 1.3% 0.0%
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 25.5% 27.1% 30.0%
Total market share (1) 47.9% 46.9% 55.2%
Total U.S.-listed securities
--------------------------------------------------
Average daily share volume (in billions) 7.19 7.94 10.33
Matched share volume (in billions) 99.7 94.8 147.9
Matched market share executed on NASDAQ 18.9% 16.5% 19.0%
Matched market share executed on NASDAQ OMX BX 2.0% 1.8% 3.8%
Matched market share executed on NASDAQ OMX PSX 1.1% 0.9% 0.0%
NASDAQ OMX Nordic and NASDAQ OMX Baltic
Securities
--------------------------------------------------
Average daily number of equity trades 320,451 338,534 324,560
Average daily value of shares traded (in $ 4.0 $ 4.1 $ 3.7
billions)
Derivative Trading and Clearing
U.S. Equity Options Contracts
--------------------------------------------------
Total industry average daily volume (in 15.8 17.3 15.7
millions)
Matched market share:
NASDAQ OMX PHLX 24.3% 23.5% 21.7%
The NASDAQ Options Market 4.6% 5.2% 3.4%
NASDAQ OMX Nordic and NASDAQ OMX Baltic Markets
--------------------------------------------------
Average daily volume:
Options, futures and fixed-income contracts 428,041 455,845 460,790
Finnish option contracts traded on Eurex 109,682 177,836 138,493
NASDAQ OMX Commodities
--------------------------------------------------
Clearing Turnover:
Power contracts (TWh)(2) 383 454 499
Carbon contracts (1000 tCO2)(2) 12,114 4,036 9,557
Issuer Services
NASDAQ
Initial public offerings 25 22 23
New listings (3) 40 34 59
Number of listed companies (5) 2,724 2,760 2,831
NASDAQ OMX Nordic and NASDAQ OMX Baltic Markets
Initial public offerings 5 1 4
New listings (4) 13 4 6
Number of listed companies (6) 780 773 788
Market Technology
Order intake (in millions)(7) $ 56 $ 6 $ 12
Total order value (in millions)(8) $ 483 $ 471 $ 453
(1) Includes transactions executed on NASDAQ's, NASDAQ OMX BX's and NASDAQ OMX
PSX's systems plus trades reported through the FINRA/NASDAQ Trade Reporting
Facility.
(2) Primarily transactions executed on Nord Pool ASA and reported for clearing
to NASDAQ OMX Commodities measure by Terawatt hours (TWh) and one thousand
metric tons of carbon dioxide (1000 tCO2).
(3) New listings include IPOs, including those completed on a best efforts
basis, issuers that switched from other listing venues, closed-end funds and
separately listed ETFs.
(4) New listings include IPOs and represent companies listed on the exchanges
that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic and companies on the
alternative markets, NASDAQ OMX First North.
(5) Number of listed companies for NASDAQ at period end, including separately
listed ETFs.
(6) Represents companies listed on the exchanges that comprise NASDAQ OMX
Nordic and NASDAQ OMX Baltic and companies on the alternative markets, NASDAQ
OMX First North, at period end.
(7) Total contract value of orders signed.
(8) Represents total contract value of orders signed that are yet to be
recognized as revenue.
CONTACT: Contact Media Relations:
Frank DeMaria +1.212.231.5183
Contact Investor Relations:
Vincent Palmiere +1.212.401.8742
News Source: NASDAQ OMX
27.07.2011 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: The NASDAQ OMX Group, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US6311031081
WKN:
End of Announcement DGAP News-Service
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DGAP-News: NASDAQ OMX Continues to Deliver Record Earnings
| Source: EQS Group AG