TMX Group Limited Reports Results For The Third Quarter 2013

07/11/2013

  • Revenue of $165.3 million in Q3/13, down 9% compared with Q2/13, reflecting market conditions and seasonality
  • Operating expenses of $106.4 million in Q3/13, down 7% compared with Q2/13, partially due to exceeding our synergy target
  • Diluted earnings per share of 35 cents in Q3/13
  • Adjusted diluted earnings per share of 75 cents in Q3/13, down 16% compared with Q2/13
  • Adjusted diluted earnings per share of 75 cents excludes:
  • 22 cents per share charge related to credit facility refinancing expenses
  • 4 cents per share charge related to Maple transaction and integration costs
  • 14 cents per share of amortization of intangibles related to acquisitions
  • Expected Q4/13 interest savings of about $3.5 million before tax following Q3/13 refinancing transactions.

TMX Group Limited [TSX:X] (“TMX Group”) today announced results for the third quarter ended September 30, 2013.

Commenting on Q3/13, Thomas Kloet, Chief Executive Officer of TMX Group, said:

“While the continued softness in capital markets activity in Canada has impacted our financial performance, TMX Group continued to advance its operational and strategic goals in the third quarter. We implemented the high-performance TMX Quantum XA engine on TMX Select in August. The migration of our other equities marketplaces to TMX Quantum XA is planned to begin mid-2014. In addition, the integration of TMX Group Inc., CDS and Alpha is progressing very well, and teams across TMX Group are working together on new opportunities. The business remains focused on its diversification efforts, and is taking the steps needed to enhance our service to customers and our international competitiveness.”

Michael Ptasznik, Chief Financial Officer of TMX Group, said:

“Revenue declined from Q2/13 to Q3/13 primarily due to lower additional listing fees and reduced cash and derivatives markets trading and clearing revenue reflecting market conditions and seasonality. From an operational perspective, we exceeded our target in realizing cost synergies from integrating TMX Group Inc., CDS and Alpha. This progress is evident in our Q3/13 results and is reflected in the 7% decline in operating expenses compared with Q2/13.”

“We continue to work diligently to identify further opportunities to reduce expenses. For example, in Q3/13 we completed a refinancing that included a successful $1 billion debenture issuance, and amendment to our bank facility, which we expect will reduce interest expense by about $3.5 million before tax in Q4/13 based on current debt levels.”

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