CBOE Holdings, Inc. reports solid fourth quarter and record full-year 2011 financial results

CBOE Holdings, Inc. reports solid fourth quarter and record full-year 2011 financial results

09/02/2012

Fourth Quarter Financial Highlights
 

  • Adjusted Operating Revenues Increase 6 Percent to $120.2 Million(1)
  • Adjusted Net Income Allocated to Common Stockholders Increases 10 Percent to $33.2 Million(1); Adjusted Diluted EPS Up 19 Percent to $0.37(1)
  • GAAP Net Income Allocated to Common Stockholders Increases 2 Percent to $31.3 Million; Diluted EPS Up 13 Percent to $0.35 Compared to $0.31 in Prior Year

2011 Full-Year Records

  • Adjusted Operating Revenues of $508.1 Million Increases 17 Percent(1)
  • Adjusted Net Income Allocated to Common Stockholders Increases 38 Percent to $143.7 Million(1); Adjusted Diluted EPS Up 47 Percent to $1.60(1)
  • GAAP Net Income Allocated to Common Stockholders Increases 40 Percent to $137.1 Million; Diluted EPS Up 48 Percent to $1.52 Compared to $1.03 in Prior Year
  • Adjusted Operating Margin of 48.4 Percent(1)
  • Average Daily Trading Volume of 4.83 Million Contracts, Up 8 Percent

CBOE Holdings, Inc. (NASDAQ: CBOE) today reported GAAP net income allocated to common stockholders of $31.3 million, or $0.35 per diluted share, in the fourth quarter 2011 compared with $30.7 million, or $0.31 per diluted share in the fourth quarter of 2010.  On an adjusted basis, net income allocated to common stockholders increased 10 percent to $33.2 million, or$0.37 per diluted share, compared with $30.2 million, or $0.31 per diluted share, in the prior year period.  Adjusted operating revenues for the fourth quarter were $120.2 million, an increase of 6 percent compared to $113.0 million in 2010's fourth quarter.

For the year ended December 31, 2011, CBOE Holdings reported record revenues and earnings.  GAAP net income allocated to common stockholders increased 40 percent to $137.1 million, or $1.52 per diluted share, on total operating revenues of $508.1 million.  For the comparable period in 2010, the company reported GAAP net income allocated to common stockholders of $98.2 million, or $1.03 per diluted share, on operating revenues of $437.1 million.  On an adjusted basis, net income allocated to common stockholders increased 38 percent to$143.7 million from $104.2 million in 2010, while adjusted diluted earnings per share grew 47 percent to $1.60 from $1.09 in 2010.  

CBOE Holdings' financial results for the three and twelve months ended December 31, 2011 and 2010 included certain items and allocations that management believes are not representative of its operating performance.  Financial measures presented on an adjusted basis exclude these items to present a more meaningful comparison.  More information on the adjusted financial measures and a detailed analysis are included in the "Non-GAAP Information."

"2011 was a record year for CBOE Holdings as we set new highs across our key financial metrics, including revenues, earnings, trading volume and operating margin.  Thanks to the expertise and dedication of our employees, we continued to meet the needs of our customers throughout the year by offering the industry's most diverse product line, unparalleled customer service, and trading technology that is second to none," said William J. Brodsky, CBOE Holdings Chairman and Chief Executive Officer.  "As a result, our company is stronger than ever and well positioned for future growth and to generate increased financial returns for our stockholders."

"Our solid fourth quarter results cap an outstanding year for CBOE Holdings as we set new records for both top-line and bottom-line financial measures for 2011.  Throughout the year we continued to demonstrate strong expense control, delivering a record adjusted operating margin of 48.4 percent for 2011," said Alan J. Dean, CBOE Holdings Executive Vice President and Chief Financial Officer.  "Our strong cash flow enabled us to return nearly $92 million to stockholders through dividends and share repurchases, bringing the total returned to stockholders over the past 18 months to more than $525 million.  In addition, we ended the year with a strong cash position of more than $135 million, providing us with the flexibility to continue to enhance share value through both internal investments and other capital allocation opportunities," Dean added.

(1) A full reconciliation of CBOE Holdings' non-GAAP results to its GAAP results for the reporting periods is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables.

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