Delaware | 001-31553 | 36-4459170 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
20 South Wacker Drive Chicago, Illinois | 60606 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
CME Group Inc. | ||||
Registrant | ||||
Date: February 2, 2017 | By: | /s/ Kathleen M. Cronin | ||
Name: | Kathleen M. Cronin | |||
Title: | Senior Managing Director, General Counsel and Corporate Secretary |
Exhibit Number | Description | ||
99.1 | Press Release, dated February 2, 2017 |
Media contact | Investor contact | |
Anita Liskey, 312.466.4613 | John Peschier, 312.930.8491 | |
William Parke, 312.930.3467 | CME-G | |
news@cmegroup.com | ||
www.cmegroup.mediaroom.com |
• | Annual average daily volume reached a record 15.6 million contracts in 2016, including records in interest rates, energy, agricultural commodities, metals, total options and electronic options |
• | Fourth-quarter 2016 volume averaged 16.3 million contracts per day, up 24 percent versus fourth-quarter 2015, with quarterly average daily volume records in interest rates, energy and metals |
• | Annual revenue increased 8 percent compared with 2015 and fourth-quarter revenue 2016 grew 12 percent |
December 31, 2016 | December 31, 2015 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 1,868.6 | $ | 1,692.6 | ||||
Marketable securities | 83.3 | 72.5 | ||||||
Accounts receivable, net of allowance | 364.4 | 357.8 | ||||||
Other current assets (includes $30.0 and $32.0 in restricted cash) | 171.7 | 228.6 | ||||||
Performance bonds and guaranty fund contributions | 37,543.5 | 35,553.0 | ||||||
Total current assets | 40,031.5 | 37,904.5 | ||||||
Property, net of accumulated depreciation and amortization | 425.2 | 491.7 | ||||||
Intangible assets—trading products | 17,175.3 | 17,175.3 | ||||||
Intangible assets—other, net | 2,441.8 | 2,537.9 | ||||||
Goodwill | 7,569.0 | 7,569.0 | ||||||
Other assets (includes $61.7 and $70.5 in restricted cash) | 1,726.6 | 1,681.0 | ||||||
Total Assets | $ | 69,369.4 | $ | 67,359.4 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 26.2 | $ | 28.7 | ||||
Other current liabilities | 1,376.7 | 1,242.8 | ||||||
Performance bonds and guaranty fund contributions | 37,542.7 | 35,553.0 | ||||||
Total current liabilities | 38,945.6 | 36,824.5 | ||||||
Long-term debt | 2,231.2 | 2,229.3 | ||||||
Deferred income tax liabilities, net | 7,291.0 | 7,358.3 | ||||||
Other liabilities | 560.9 | 395.5 | ||||||
Total Liabilities | 49,028.7 | 46,807.6 | ||||||
Shareholders’ equity | 20,340.7 | 20,551.8 | ||||||
Total Liabilities and Equity | $ | 69,369.4 | $ | 67,359.4 |
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenues | ||||||||||||||||
Clearing and transaction fees | $ | 768.5 | $ | 678.9 | $ | 3,036.4 | $ | 2,783.9 | ||||||||
Market data and information services | 100.1 | 99.1 | 406.5 | 399.4 | ||||||||||||
Access and communication fees | 23.7 | 21.7 | 91.4 | 86.1 | ||||||||||||
Other | 20.6 | 14.1 | 60.9 | 57.4 | ||||||||||||
Total Revenues | 912.9 | 813.8 | 3,595.2 | 3,326.8 | ||||||||||||
Expenses | ||||||||||||||||
Compensation and benefits | 146.8 | 134.5 | 541.0 | 553.7 | ||||||||||||
Communications | 6.9 | 6.5 | 26.8 | 27.8 | ||||||||||||
Technology support services | 18.4 | 17.4 | 70.8 | 64.5 | ||||||||||||
Professional fees and outside services | 40.2 | 32.2 | 144.4 | 122.8 | ||||||||||||
Amortization of purchased intangibles | 24.1 | 24.6 | 96.1 | 99.4 | ||||||||||||
Depreciation and amortization | 33.7 | 31.7 | 129.2 | 129.2 | ||||||||||||
Occupancy and building operations | 21.4 | 23.1 | 86.7 | 92.5 | ||||||||||||
Licensing and other fee agreements | 32.5 | 31.3 | 135.8 | 123.8 | ||||||||||||
Other | 48.7 | 42.6 | 161.7 | 124.4 | ||||||||||||
Total Expenses | 372.7 | 343.9 | 1,392.5 | 1,338.1 | ||||||||||||
Operating Income | 540.2 | 469.9 | 2,202.7 | 1,988.7 | ||||||||||||
Non-Operating Income (Expense) | ||||||||||||||||
Investment income | 70.5 | 3.4 | 141.8 | 30.1 | ||||||||||||
Gains (losses) on derivative investments | — | — | — | (1.8 | ) | |||||||||||
Interest and other borrowing costs | (31.6 | ) | (28.9 | ) | (123.5 | ) | (117.4 | ) | ||||||||
Equity in net earnings (losses) of unconsolidated subsidiaries | 27.8 | 24.9 | 110.2 | 100.0 | ||||||||||||
Other non-operating income (expense) | (12.7 | ) | (0.8 | ) | (43.6 | ) | (42.8 | ) | ||||||||
Total Non-Operating | 54.0 | (1.4 | ) | 84.9 | (31.9 | ) | ||||||||||
Income before Income Taxes | 594.2 | 468.5 | 2,287.6 | 1,956.8 | ||||||||||||
Income tax provision | 220.8 | 176.8 | 753.5 | 709.8 | ||||||||||||
Net Income | $ | 373.4 | $ | 291.7 | $ | 1,534.1 | $ | 1,247.0 | ||||||||
Earnings per Common Share: | ||||||||||||||||
Basic | $ | 1.10 | $ | 0.87 | $ | 4.55 | $ | 3.71 | ||||||||
Diluted | 1.10 | 0.86 | 4.53 | 3.69 | ||||||||||||
Weighted Average Number of Common Shares: | ||||||||||||||||
Basic | 338,083 | 336,844 | 337,496 | 336,224 | ||||||||||||
Diluted | 339,338 | 338,253 | 338,966 | 337,894 |
4Q 2015 | 1Q 2016 | 2Q 2016 | 3Q 2016 | 4Q 2016 | |||||||||||
Trading Days | 64 | 61 | 64 | 64 | 63 |
Product Line | 4Q 2015 | 1Q 2016 | 2Q 2016 | 3Q 2016 | 4Q 2016 | ||||||||||
Interest rate | 6,097 | 8,246 | 6,776 | 6,791 | 8,300 | ||||||||||
Equity | 2,743 | 3,557 | 2,957 | 2,876 | 2,875 | ||||||||||
Foreign exchange | 779 | 944 | 838 | 772 | 883 | ||||||||||
Energy | 2,032 | 2,536 | 2,322 | 2,294 | 2,586 | ||||||||||
Agricultural commodity | 1,200 | 1,206 | 1,722 | 1,156 | 1,193 | ||||||||||
Metal | 326 | 454 | 468 | 431 | 488 | ||||||||||
Total | 13,178 | 16,944 | 15,082 | 14,319 | 16,325 | ||||||||||
Venue | |||||||||||||||
Electronic | 11,420 | 14,713 | 13,355 | 12,672 | 14,375 | ||||||||||
Open outcry | 1,055 | 1,423 | 1,075 | 982 | 1,130 | ||||||||||
Privately negotiated | 704 | 807 | 651 | 665 | 820 | ||||||||||
Total | 13,178 | 16,944 | 15,082 | 14,319 | 16,325 |
Product Line | 4Q 2015 | 1Q 2016 | 2Q 2016 | 3Q 2016 | 4Q 2016 | |||||||||||||||
Interest rate | $ | 0.517 | $ | 0.501 | $ | 0.496 | $ | 0.508 | $ | 0.491 | ||||||||||
Equity | 0.718 | 0.726 | 0.709 | 0.676 | 0.691 | |||||||||||||||
Foreign exchange | 0.813 | 0.767 | 0.798 | 0.806 | 0.804 | |||||||||||||||
Energy | 1.232 | 1.203 | 1.168 | 1.097 | 1.099 | |||||||||||||||
Agricultural commodity | 1.339 | 1.321 | 1.291 | 1.335 | 1.336 | |||||||||||||||
Metal | 1.644 | 1.597 | 1.562 | 1.542 | 1.486 | |||||||||||||||
Average RPC | $ | 0.789 | $ | 0.756 | $ | 0.782 | $ | 0.750 | $ | 0.731 |
CME Group Inc. and Subsidiaries | ||||||||||||||||
Reconciliation of GAAP to non-GAAP Measures | ||||||||||||||||
(dollars in millions, except per share amounts; shares in thousands) | ||||||||||||||||
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net Income | $ | 373.4 | $ | 291.7 | $ | 1,534.1 | $ | 1,247.0 | ||||||||
Restructuring, severance and retirement | 12.9 | — | 12.9 | 21.0 | ||||||||||||
Acquisition-related costs | — | — | — | 0.9 | ||||||||||||
Amortization of purchased intangibles | 24.1 | 24.6 | 96.1 | 99.4 | ||||||||||||
Loss on disposal of building assets | 4.0 | — | 9.3 | — | ||||||||||||
Loss and expenses related to sale-leaseback of data center | — | — | 28.6 | — | ||||||||||||
Real estate taxes and fees | — | — | — | 10.0 | ||||||||||||
Foreign exchange transaction losses (gains)1 | 8.0 | 5.2 | 24.5 | 11.3 | ||||||||||||
Net (gains) losses on CME Venture investments | — | — | (1.4 | ) | — | |||||||||||
(Gains) losses on sale of BM&FBOVESPA shares | (42.0 | ) | 11.9 | (48.4 | ) | 8.5 | ||||||||||
Debt prepayment costs | — | — | — | 64.1 | ||||||||||||
GFI termination fee - net of the portion paid to outside advisers | — | — | — | (22.5 | ) | |||||||||||
Income tax effect related to above | 7.2 | (12.0 | ) | (30.1 | ) | (63.4 | ) | |||||||||
Other income tax items2 | (0.3 | ) | 5.6 | (89.3 | ) | (8.4 | ) | |||||||||
Adjusted Net Income | $ | 387.3 | $ | 327.0 | $ | 1,536.3 | $ | 1,367.9 | ||||||||
GAAP Earnings per Common Share: | ||||||||||||||||
Basic | $ | 1.10 | $ | 0.87 | $ | 4.55 | $ | 3.71 | ||||||||
Diluted | 1.10 | 0.86 | 4.53 | 3.69 | ||||||||||||
Adjusted Earnings per Common Share: | ||||||||||||||||
Basic | $ | 1.15 | $ | 0.97 | $ | 4.55 | $ | 4.07 | ||||||||
Diluted | 1.14 | 0.97 | 4.53 | 4.05 | ||||||||||||
Weighted Average Number of Common Shares: | ||||||||||||||||
Basic | 338,083 | 336,844 | 337,496 | 336,224 | ||||||||||||
Diluted | 339,338 | 338,253 | 338,966 | 337,894 | ||||||||||||
1. Results include foreign exchange transaction net losses principally related to cash held in British pounds within foreign entities whose functional currency is the U.S. dollar. | ||||||||||||||||
2. Income tax benefit recognized from historical losses in our investment in BM&FBOVESPA in the third quarter of 2016 and income tax impacts related to the remeasurement of tax positions resulting from state and local income tax changes. |
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