The NASDAQ OMX Group, Inc.
31.01.2013 13:00
---------------------------------------------------------------------------
-- Fourth quarter 2012 non-GAAP diluted EPS of $0.64, tied for the second
highest quarterly performance in the firm's history; fourth quarter 2012
GAAP diluted EPS of $0.50
-- Fourth quarter net exchange revenues1 reach $419 million, the highest
non-GAAP net exchange revenue level of the year. On an organic basis
(constant currency and excluding acquisitions) fourth quarter revenue
declined by 3 percent year-over-year
-- Non-transaction based revenues were 71 percent of fourth quarter net
exchange revenue, tied for the highest level in NASDAQ OMX's history
-- 2012 non-GAAP operating expenses of $918 million came in below previous
guidance range of $922 to $935 million
-- Repurchased 11.5 million shares at an average price of $23.82 for a total
cost of $275 million in 2012
NEW YORK, Jan. 31, 2013 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc.
(Nasdaq:NDAQ) today reported results for the fourth quarter and full year 2012.
Fourth quarter net exchange revenues were $419 million, driven by particularly
strong growth in our Corporate Solutions business.
Operating expenses were $244 million in the fourth quarter of 2012, compared to
$259 million in the prior year quarter. On a non-GAAP basis, fourth quarter
2012 operating expenses were $233 million, flat compared to the prior year
quarter.
Fourth quarter 2012 non-GAAP diluted earnings per share were $0.64, up $0.01
compared to the prior year quarter. Non-GAAP earnings per share in the fourth
quarter of 2012 exclude $8 million of restructuring expenses, $4 million of
merger and strategic expenses, $3 million in sublease reserve expenses, $2
million of special legal expenses, and a $7 million value added tax refund
related to prior year periods. On a GAAP basis, net income attributable to
NASDAQ OMX for the fourth quarter of 2012 was $85 million, or $0.50 per diluted
share, compared with $82 million, or $0.45 per diluted share, in the prior year
quarter.
'NASDAQ OMX ended 2012 with a strong finish to the year, driven by a significant
pick-up in corporate activity coupled with solid performance in our U.S.
options, U.S. proprietary data products and global index businesses,' said Bob
Greifeld, CEO, NASDAQ OMX. 'While the volume environment remained weak in the
fourth quarter, we continued to expand our diversified, global portfolio of
businesses, increasing our stream of recurring revenues, generating strong cash
flows and delivering attractive returns for our shareholders.'
Mr. Greifeld continued, 'Looking to 2013, we are encouraged to see positive,
multi week inflows from retail investors into U.S. equity mutual funds and some
signs of improvement in the volume environment. As we move through the year, we
will remain focused on strengthening our franchise by ensuring we have the
talent, structure and business portfolio to deliver for our clients and
shareholders. I believe we are creating the foundation for growth and
outperformance regardless of the economic, business or volume cycles.'
Lee Shavel, NASDAQ OMX's EVP and Chief Financial Officer, said: 'Our cost
reduction plan was successful and we exited the year with $50 million in
run-rate savings. In 2012 we generated in excess of $500 million in free cash
flow, and we continued to deploy our cash flow in ways that benefit our
investors. During the year, we returned $275 million to shareholders through
buybacks, $65 million through our dividend program, and we purchased a number
of attractive assets, including BWise, NOS and the index business of Mergent,
Inc., including Indxis. We also recently announced the proposed acquisition of
Thomson Reuters' Investor Relations, Public Relations and Multimedia Solutions
businesses. I fully expect these acquisitions, coupled with our ongoing capital
deployment efforts to drive substantial shareholder value in the years ahead.'
At December 31, 2012, the company had cash and cash equivalents of $497 million
and total debt of $1,976 million, resulting in net debt of $1,479 million. This
compares to net debt of $1,611 million at December 31, 2011. During the fourth
quarter of 2012, the company repurchased 2.1 million shares of outstanding
common stock under a share repurchase program, for a total of $50 million.
Since January 2010, NASDAQ OMX has repurchased $1,172 million of outstanding
common stock, representing 53.4 million shares at an average price of $21.97.
BUSINESS HIGHLIGHTS
Market Services (64% of total net exchange revenues) - Net exchange revenues
were $270 million in the fourth quarter of 2012, down $11 million when compared
to the fourth quarter of 2011.
Cash Equities (11% of total net exchange revenues) - Total net cash equity
trading revenues were $47 million in the fourth quarter of 2012, down $12
million compared to the fourth quarter of 2011. A lower level of industry
trading volumes and a slightly lower market share were partially offset by
positive revenue capture in both the U.S. and Nordic equity markets.
Derivatives (18% of total net exchange revenues) - Total net derivative trading
and clearing revenues were $75 million in the fourth quarter of 2012, up $2
million compared to the fourth quarter of 2011. U.S. derivative revenues
increased 10% year-over-year on market share gains and positive revenue capture
per traded contract. European derivative and clearing revenues declined $2
million on lower volumes.
Access and Broker Services (15% of total net exchange revenues) - Access and
broker services revenues totaled $65 million, up $4 million compared to the
fourth quarter of 2011. The increase was primarily driven by the uptake of new
products including 40G connectivity.
Market Data (20% of total net exchange revenues) - Total Market Data revenues of
$83 million reflect a $4 million decrease compared to the year ago quarter. The
decrease was driven by a lower level of audit collections and lower U.S. tape
revenues.
Issuer Services (24% of total net exchange revenues) - Revenues were $101
million in the fourth quarter of 2012, up $10 million compared to the fourth
quarter of 2011. The increase was driven by strength in the Corporate Solutions
business which saw double digit revenue growth in the GlobeNewswire, Directors
Desk and Surveillance businesses. In addition, Corporate Solutions revenues
benefited from the acquisitions of BWise in May 2012 and Glide Technologies in
October 2011. The Global Index Group's revenues increased by $1 million, or 8%,
year-over-year driven by an increase in the underlying assets associated with
licensed financial products due to product growth and newly executed product
licenses.
Market Technology (12% of total net exchange revenues) - Revenues of $48 million
in the fourth quarter of 2012 were flat compared to the fourth quarter of 2011.
The Market Technology segment had exceptionally strong order intake of $95
million in the fourth quarter of 2012, rounding out a record year for new
business wins.
COST GUIDANCE - For the full year of 2013, core operating expenses, including
$50 million of expenses related to 2012 acquisitions, are expected to be in the
range of $910 million to $930 million, with an additional $50 million to $60
million in incremental new initiative spending, resulting in total operating
expenses in the range of $960 million to $990 million. This guidance excludes
expenses related to our previously announced cost reduction plan, expenses for
the proposed voluntary accommodation program and special legal expenses. We
anticipate that the effective tax rate may increase in 2013, due to the
potential loss of tax deductions resulting from changes in tax laws in certain
jurisdictions. The impact of such tax law changes has not yet been determined.
As a result, we expect a 2013 effective tax rate in the range of 34% to 37%.
CORPORATE HIGHLIGHTS
-- Agreement to Acquire Thomson Reuters' IR, PR and Multimedia businesses.
Announced agreement with Thomson Reuters to acquire the Investor Relations,
Public Relations and Multimedia Solutions businesses, which provide
insight, analytics and communications solutions to more than 7,000 clients
worldwide. Upon completion of the transaction, these complementary
businesses will be integrated into NASDAQ OMX Corporate Solutions. The
combination, which is subject to customary regulatory approvals, will
create a global corporate services portfolio, with more diversified and
comprehensive offerings to sell to NASDAQ OMX's listing and corporate
clients.
-- Acquired the Index Business of Mergent, Inc., including Indxis. Announced
and closed on the first acquisition in the Global Index Group - the index
business of Mergent, Inc., including Indxis. With this acquisition, the
Global Index Group is one of the largest providers of dividend-themed
indexes based on benchmarked assets.
-- Appointment of Chief Information Officer. Appointed Bradley Peterson as
Executive Vice President and Chief Information Officer. Mr. Peterson joins
NASDAQ OMX from Charles Schwab. He will focus on driving the design and
development of scalable and reliable solutions to further the growth and
expansion of core products and services and underlying tools and
technologies used by NASDAQ OMX customers.
-- Combination of Market Technology and Corporate Solutions businesses.
Announced the combination of the Market Technology and Corporate Solutions
businesses, which will operate under the name Global Technology Solutions
and will be led by Anna Ewing, Executive Vice President, Global Technology
Solutions. The combination will enable increased focus, drive growth across
the company's technology businesses and create a dedicated software and
technology management structure.
-- Combination of Global Data Products and Global Index Group businesses.
Announced the combination of the Global Data Products and Global Index
Group businesses, which will operate under the name Global Information
Services and be led by John Jacobs, Executive Vice President, Global
Information Services. The combination will enable greater customer focus
and leverage of NASDAQ OMX's scalable technology, product innovation and
robust distribution channels.
About NASDAQ OMX Group
The inventor of the electronic exchange, The NASDAQ OMX Group, Inc., fuels
economies and provides transformative technologies for the entire lifecycle of
a trade - from risk management to trade to surveillance to clearing. In the
U.S. and Europe, we own and operate 23 markets, 3 clearinghouses and 5 central
securities depositories supporting equities, options, fixed income,
derivatives, commodities, futures and structured products. Able to process more
than 1 million messages per second at sub-40 microsecond speeds with 99.99+%
uptime, our technology drives more than 70 marketplaces in 50 developed and
emerging countries into the future, powering 1 in 10 of the world's securities
transactions. Our award-winning data products and worldwide indexes are the
benchmarks in the financial industry. Home to approximately 3,300 listed
companies worth more than $6 trillion in market cap whose innovations shape our
world, we give the ideas of tomorrow access to capital today. Welcome to where
the world takes a big leap forward, daily. Welcome to the NASDAQ OMX Century.
To learn more, visit www.nasdaqomx.com. Follow us on Facebook
(www.facebook.com/NASDAQ) and Twitter (www.twitter.com/nasdaqomx). (Symbol:
NDAQ and member of S&P 500)
Non-GAAP Information
In addition to disclosing results determined in accordance with GAAP, NASDAQ OMX
also discloses certain non-GAAP results of operations, including, but not
limited to, net income attributable to NASDAQ OMX, diluted earnings per share,
net exchange revenues, 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, taxes and achievement of synergy targets, (ii) statements
about the closing or implementation dates and benefits of certain strategic and
capital return 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 and 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.
1 Represents revenues less transaction rebates, brokerage, clearance and
exchange fees.
NDAQF
CONTACT: Media Relations: Joseph Christinat +1.646.441.5121
Joseph.Christinat@NASDAQOMX.Com Investor Relations: John Sweeney
+1.212.401.8737 John.Sweeney@NASDAQOMX.Com
The NASDAQ OMX Group, Inc.
Consolidated Statements of Income
(in millions, except per share amounts)
Three Months Ended Year Ended
-----------------------------------------
Decemb Septem Decemb Decembe Decembe
er 31, ber er 31, r 31, r 31,
30,
2012 2012 2011 2012 2011
-----------------------------------------
Revenues: (unaud (unaud (unaud (unaudi
ited) ited) ited) ted)
Market Services $ 603 $ 603 $ 698 $ 2,560 $ 2,886
-----------------------------------------
Cost of revenues:
Transaction rebates (249) (250) (324) (1,104) (1,344)
Brokerage, clearance and exchange fees (84) (84) (93) (352) (404)
-----------------------------------------
Total cost of revenues (333) (334) (417) (1,456) (1,748)
-----------------------------------------
Total Market Services revenues less 270 269 281 1,104 1,138
transaction rebates, brokerage,
clearance and exchange fees
Issuer Services 101 93 91 375 361
Market Technology 48 47 48 184 183
-----------------------------------------
Revenues less transaction rebates, 419 409 420 1,663 1,682
brokerage, clearance and exchange
fees
-----------------------------------------
Operating Expenses:
Compensation and benefits 116 113 113 454 458
Marketing and advertising 7 6 9 26 24
Depreciation and amortization 27 26 28 104 109
Professional and contract services 26 24 23 96 83
Computer operations and data 10 18 15 60 65
communications
Occupancy 25 22 22 93 91
Regulatory 7 8 9 34 35
Merger and strategic initiatives 4 (3) 1 4 38
Restructuring charges 8 10 -- 44 --
General, administrative and other 14 15 39 58 83
-----------------------------------------
Total operating expenses 244 239 259 973 986
-----------------------------------------
Operating income 175 170 161 690 696
Interest income 3 2 3 10 11
Interest expense (25) (24) (26) (97) (119)
Asset impairment charges -- -- (18) (40) (18)
Dividend and investment income -- -- -- -- 1
Loss on divestiture of business -- (14) -- (14) --
Income (loss) from unconsolidated -- -- 1 (1) 2
investees, net
-----------------------------------------
Income before income taxes 153 134 121 548 573
Income tax provision 69 45 40 199 190
-----------------------------------------
Net income 84 89 81 349 383
Net loss attributable to 1 -- 1 3 4
noncontrolling interests
-----------------------------------------
Net income attributable to NASDAQ OMX $ 85 $ 89 $ 82 $ 352 $ 387
=========================================
Basic and diluted earnings per share:
Basic earnings per share $ 0.52 $ 0.53 $ 0.46 $ 2.09 $ 2.20
=========================================
Diluted earnings per share $ 0.50 $ 0.52 $ 0.45 $ 2.04 $ 2.15
=========================================
Cash dividends declared per common $ 0.13 $ 0.13 $ -- $ 0.39 $ --
share
=========================================
Weighted-average common shares
outstanding for earnings per share:
Basic 164.5 166.2 175.4 168.3 176.3
Diluted 169.1 170.5 179.5 172.6 180.0
The NASDAQ OMX Group, Inc.
Revenue Detail
(in millions)
Three Months Ended Year Ended
-----------------------------------------
Decemb Septem Decemb Decembe Decembe
er 31, ber er 31, r 31, r 31,
30,
2012 2012 2011 2012 2011
-----------------------------------------
(unaud (unaud (unaud (unaudi
ited) ited) ited) ted)
MARKET SERVICES
Transaction Services
Cash Equity Trading Revenues:
U.S. cash equity trading $ 283 $ 297 $ 385 $ 1,294 $ 1,617
-----------------------------------------
Cost of revenues:
-----------------------------------------
Transaction rebates (180) (193) (261) (854) (1,087)
---------------------------------
Brokerage, clearance and exchange (74) (75) (87) (318) (375)
fees
-----------------------------------------
Total U.S. cash equity cost of (254) (268) (348) (1,172) (1,462)
revenues
-----------------------------------------
Net U.S. cash equity trading 29 29 37 122 155
revenues
-----------------------------------------
European cash equity trading 18 18 22 78 93
-----------------------------------------
Total net cash equity trading 47 47 59 200 248
revenues
-----------------------------------------
-----------------------------------------
Derivative Trading and Clearing
Revenues:
U.S. derivative trading and clearing 124 110 110 458 471
-----------------------------------------
Cost of revenues:
-----------------------------------------
Transaction rebates (69) (57) (63) (250) (257)
-----------------------------------------
Brokerage, clearance and exchange (10) (9) (6) (34) (29)
fees
-----------------------------------------
Total U.S. derivative trading and (79) (66) (69) (284) (286)
clearing cost of revenues
-----------------------------------------
Net U.S. derivative trading and 45 44 41 174 185
clearing revenues
-----------------------------------------
European derivative trading and 30 28 32 116 128
clearing
-----------------------------------------
Total net derivative trading and 75 72 73 290 313
clearing revenues
-----------------------------------------
-----------------------------------------
Access Services Revenues 60 61 56 238 223
-----------------------------------------
-----------------------------------------
Total Transaction Services revenues 182 180 188 728 784
less transaction rebates, brokerage,
clearance and exchange fees
-----------------------------------------
Market Data Revenues:
Net U.S. tape plans 26 28 29 117 115
U.S. market data products 39 38 37 150 135
-----------------------------------------
European market data products 18 18 21 77 83
-----------------------------------------
-----------------------------------------
Total Market Data revenues 83 84 87 344 333
-----------------------------------------
-----------------------------------------
Broker Services Revenues 5 5 5 19 19
-----------------------------------------
Other Market Services Revenues -- -- 1 13 2
-----------------------------------------
Total Market Services revenues less 270 269 281 1,104 1,138
transaction rebates, brokerage,
clearance and exchange fees
-----------------------------------------
-----------------------------------------
ISSUER SERVICES
-----------------------------------------
Global Listing Services Revenues:
-----------------------------------------
Annual renewal 28 28 30 112 117
-----------------------------------------
Listing of additional shares 10 10 10 39 40
-----------------------------------------
Initial listing 5 5 5 20 21
-----------------------------------------
Total U.S. listing services 43 43 45 171 178
-----------------------------------------
European listing fees 13 12 13 50 55
-----------------------------------------
Corporate Solutions 31 24 20 97 76
-----------------------------------------
Total Global Listing Services 87 79 78 318 309
revenues
-----------------------------------------
Global Index Group Revenues 14 14 13 57 52
-----------------------------------------
Total Issuer Services revenues 101 93 91 375 361
-----------------------------------------
MARKET TECHNOLOGY
-----------------------------------------
License, support and facility 27 27 29 110 115
management
-----------------------------------------
Delivery project 6 7 6 27 24
-----------------------------------------
Change request, advisory and broker 15 13 13 47 44
surveillance
-----------------------------------------
Total Market Technology revenues 48 47 48 184 183
-----------------------------------------
Total revenues less transaction $ 419 $ 409 $ 420 $ 1,663 $ 1,682
rebates, brokerage, clearance and
exchange fees
=========================================
The NASDAQ OMX Group, Inc.
Consolidated Balance Sheets
(in millions)
December 31, December 31,
2012 2011
---------------------------
Assets (unaudited)
Current assets:
---------------------------
Cash and cash equivalents $ 497 $ 506
---------------------------
Restricted cash 85 34
---------------------------
Financial investments, at fair value 223 279
---------------------------
Receivables, net 333 308
---------------------------
Deferred tax assets 33 16
---------------------------
Default funds and margin deposits 209 17
Open clearing contracts:
Derivative positions, at fair value -- 1,566
Resale agreements, at contract value -- 3,745
Other current assets 112 110
---------------------------
Total current assets 1,492 6,581
Non-current restricted cash 25 97
Property and equipment, net 211 193
Non-current deferred tax assets 294 392
Goodwill 5,335 5,061
Intangible assets, net 1,650 1,648
Other non-current assets 125 119
---------------------------
Total assets $ 9,132 $ 14,091
===========================
Liabilities
Current liabilities:
Accounts payable and accrued expenses $ 172 $ 164
Section 31 fees payable to SEC 97 106
Accrued personnel costs 111 132
Deferred revenue 139 124
Other current liabilities 119 112
Deferred tax liabilities 35 27
Default funds and margin deposits 209 17
Open clearing contracts:
Derivative positions, at fair value -- 1,566
Repurchase agreements, at contract value -- 3,745
Current portion of debt obligations 45 45
---------------------------
Total current liabilities 927 6,038
Debt obligations 1,931 2,072
Non-current deferred tax liabilities 713 670
Non-current deferred revenue 156 154
Other non-current liabilities 196 171
---------------------------
Total liabilities 3,923 9,105
Commitments and contingencies
Equity
NASDAQ OMX stockholders' equity:
Common stock 2 2
Additional paid-in capital 3,771 3,793
Common stock in treasury, at cost (1,058) (860)
Accumulated other comprehensive loss (185) (350)
Retained earnings 2,678 2,391
---------------------------
Total NASDAQ OMX stockholders' equity 5,208 4,976
Noncontrolling interests 1 10
---------------------------
Total equity 5,209 4,986
---------------------------
Total liabilities and equity $ 9,132 $ 14,091
===========================
The NASDAQ OMX Group, Inc.
Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income,
Net Exchange Revenues(3) and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, Net
Exchange Revenues(3) and Operating Expenses
(in millions, except per share amounts)
(unaudited)
Three Months Ended Year Ended
------------------------------------------
Decemb Septemb Decemb Decembe Decembe
er 31, er 30, er 31, r 31, r 31,
2012 2012 2011 2012 2011
------------------------------------------
GAAP net income attributable to $ 85 $ 89 $ 82 $ 352 $ 387
NASDAQ OMX:
Non-GAAP adjustments:
Income from open positions relating -- -- -- (11) --
to the operations of the Exchange
Merger and strategic initiatives 4 (3) 1 4 38
Restructuring charges 8 10 -- 44 --
Asset impairment charges -- -- 18 40 18
Loss on divestiture of business -- 14 -- 14 --
Special legal expenses 2 4 -- 7 --
Extinguishment of debt -- -- 25 -- 31
Sublease reserve 3 -- -- 3 --
Value added tax refund (7) -- -- (7) --
Other 1 -- -- 4 4
------------------------------------------
Total non-GAAP adjustments 11 25 44 98 91
Adjustment to the income tax (5) (10) (13) (32) (28)
provision to reflect non-GAAP
adjustments(1)
Significant tax adjustments, net 17 1 -- 14 5
------------------------------------------
Total non-GAAP adjustments, net of 23 16 31 80 68
tax
Non-GAAP net income attributable to $ 108 $ 105 $ 113 $ 432 $ 455
NASDAQ OMX:
==========================================
GAAP diluted earnings per share: $ 0.50 $ 0.52 $ 0.45 $ 2.04 $ 2.15
Total adjustments from non-GAAP net 0.14 0.10 0.18 0.46 0.38
income above
------------------------------------------
Non-GAAP diluted earnings per share: $ 0.64 $ 0.62 $ 0.63 $ 2.50 $ 2.53
==========================================
Three Months Ended Year Ended
------------------------------------------
Decemb Septemb Decemb Decembe Decembe
er 31, er 30, er 31, r 31, r 31,
2012 2012 2011 2012 2011
------------------------------------------
GAAP operating income: $ 175 $ 170 $ 161 $ 690 $ 696
Non-GAAP adjustments:
Income from open positions relating -- -- -- (11) --
to the operations of the Exchange
Merger and strategic initiatives 4 (3) 1 4 38
Restructuring charges 8 10 -- 44 --
Extinguishment of debt -- -- 25 -- 31
Special legal expenses 2 4 -- 7 --
Sublease reserve 3 -- -- 3 --
Value added tax refund (7) -- -- (7) --
Other 1 -- -- 4 4
------------------------------------------
Total non-GAAP adjustments 11 11 26 44 73
------------------------------------------
Non-GAAP operating income $ 186 $ 181 $ 187 $ 734 $ 769
==========================================
Total Non-GAAP revenues less $ 419 $ 409 $ 420 $ 1,652 $ 1,682
transaction rebates, brokerage,
clearance and exchange fees
Non-GAAP operating margin (2) 44% 44% 45% 44% 46%
(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
Non-GAAP revenues less transaction rebates, brokerage, clearance and exchange
fees.
(3) Represents 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,
Net Exchange Revenues(1) and Operating Expenses
to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, Net
Exchange Revenues(1) and Operating Expenses
(in millions)
(unaudited)
Three Months Ended Year Ended
------------------------------------------
Decemb Septemb Decemb Decembe Decembe
er er 30, er 31, r 31, r 31,
31,
2012 2012 2011 2012 2011
------------------------------------------
GAAP revenues less transaction $ 419 $ 409 $ 420 $ 1,663 $ 1,682
rebates, brokerage, clearance and
exchange fees:
Non-GAAP adjustments:
Income from open positions relating -- -- -- (11) --
to the operations of the Exchange
------------------------------------------
Total non-GAAP adjustments -- -- -- (11) --
------------------------------------------
Non-GAAP revenues less transaction $ 419 $ 409 $ 420 $ 1,652 $ 1,682
rebates, brokerage, clearance and
exchange fees:
==========================================
Three Months Ended Year Ended
------------------------------------------
Decemb Septemb Decemb Decembe Decembe
er 31, er 30, er 31, r 31, r 31,
2012 2012 2011 2012 2011
------------------------------------------
GAAP operating expenses: $ 244 $ 239 $ 259 $ 973 $ 986
Non-GAAP adjustments:
Merger and strategic initiatives (4) 3 (1) (4) (38)
Restructuring charges (8) (10) -- (44) --
Extinguishment of debt -- -- (25) -- (31)
Special legal expenses (2) (4) -- (7) --
Sublease reserve (3) -- -- (3) --
Value added tax refund 7 -- -- 7 --
Other (1) -- -- (4) (4)
------------------------------------------
Total non-GAAP adjustments (11) (11) (26) (55) (73)
------------------------------------------
Non-GAAP operating expenses $ 233 $ 228 $ 233 $ 918 $ 913
==========================================
(1) Represents revenues less transaction rebates, brokerage, clearance and
exchange fees.
The NASDAQ OMX Group, Inc.
Quarterly Key Drivers Detail
(unaudited)
Three Months Ended
---------------------------------
December September December
31, 30, 31,
2012 2012 2011
---------------------------------
Market Services
Cash Equity Trading
NASDAQ securities
Total average daily share volume (in 1.74 1.66 1.85
billions)
Matched market share executed on NASDAQ 23.6% 25.2% 27.2%
Matched market share executed on NASDAQ OMX 2.6% 2.7% 2.5%
BX
Matched market share executed on NASDAQ OMX 1.3% 1.2% 1.1%
PSX
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 33.2% 31.5% 30.2%
Total market share (1) 60.6% 60.6% 61.0%
New York Stock Exchange, or NYSE securities
Total average daily share volume (in 3.39 3.39 4.14
billions)
Matched market share executed on NASDAQ 11.5% 12.8% 13.3%
Matched market share executed on NASDAQ OMX 2.5% 2.5% 2.5%
BX
Matched market share executed on NASDAQ OMX 0.7% 0.6% 0.6%
PSX
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 30.0% 28.6% 27.5%
Total market share (1) 44.7% 44.6% 44.0%
NYSE MKT and regional securities
Total average daily share volume (in 0.97 0.94 1.45
billions)
Matched market share executed on NASDAQ 14.1% 16.1% 19.2%
Matched market share executed on NASDAQ OMX 2.9% 3.0% 1.9%
BX
Matched market share executed on NASDAQ OMX 1.6% 1.5% 1.9%
PSX
Market share reported to the FINRA/NASDAQ
Trade Reporting Facility 30.6% 29.5% 27.2%
Total market share (1) 49.3% 50.1% 50.2%
Total U.S.-listed securities
Total average daily share volume (in 6.09 5.99 7.45
billions)
Matched share volume (in billions) 71.6 76.6 100.0
Matched market share executed on NASDAQ 15.4% 16.8% 17.9%
Matched market share executed on NASDAQ OMX 2.6% 2.7% 2.4%
BX
Matched market share executed on NASDAQ OMX 1.0% 0.9% 1.0%
PSX
NASDAQ OMX Nordic and NASDAQ OMX Baltic
Securities
Average daily number of equity trades 273,330 284,764 394,290
Total average daily value of shares traded $ 3.4 $ 3.2 $ 4.2
(in billions)
Total market share 68.2% 68.5% 71.9%
Derivative Trading and Clearing
U.S. Equity Options
Total industry average daily volume (in 14.3 13.8 15.5
millions)
NASDAQ OMX PHLX matched market share 21.9% 21.4% 22.7%
The NASDAQ Options Market matched market 6.2% 5.2% 4.5%
share
NASDAQ OMX BX Options matched market share 1.0% 0.7% --
NASDAQ OMX Nordic and NASDAQ OMX Baltic
Average daily volume:
Options, futures and fixed-income contracts 379,905 371,230 455,341
Finnish option contracts traded on Eurex 107,373 70,211 46,557
NASDAQ OMX Commodities
Clearing Turnover:
Power contracts (TWh)(2) 453 384 494
Carbon contracts (1000 tCO2)(2) 7,503 5,009 29,908
Issuer Services
Initial public offerings
NASDAQ 19 17 15
Exchanges that comprise NASDAQ OMX Nordic 4 1 1
and NASDAQ OMX Baltic
New listings
NASDAQ (3) 46 40 44
Exchanges that comprise NASDAQ OMX Nordic 9 4 12
and NASDAQ OMX Baltic (4)
Number of listed companies
NASDAQ (5) 2,577 2,610 2,680
Exchanges that comprise NASDAQ OMX Nordic 754 754 776
and NASDAQ OMX Baltic (6)
Market Technology
Order intake (in millions)(7) $ 95 $ 31 $ 36
Total order value (in millions)(8) $ 546 $ 523 $ 458
(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 measured 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 of 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 of
NASDAQ OMX First North at period end.
(7) Total contract value of orders signed during the period.
(8) Represents total contract value of orders signed that are yet to be
recognized as revenue.
News Source: NASDAQ OMX
31.01.2013 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 Reports Fourth Quarter and Full Year 2012 Results
| Source: EQS Group AG