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Actionable news in NDAQ: The NASDAQ OMX Group, Inc.,

The NASDAQ OMX: N E W S R E L E A S E

The following excerpt is from the company's SEC filing.

DATE: October 22, 2015

NASDAQ REPORTS RECORD THIRD QUARTER 2015 NON-GAAP RESULTS

Third quarter 2015 non-GAAP diluted EPS of $0.88, an increase of 13% compared to the third quarter of 2014. Record revenues and non-GAAP operating, pre-tax income, net income and diluted EPS. Third quarter 2015 GAAP diluted EPS was $0.80.

Third quarter 2015 net revenues

were $529 million, up 6% year-over-year. On an organic basis, excluding the impact of foreign exchange rates and acquisitions, revenues increased 9%.

Non-GAAP operating margin was 48% in the third quarter of 2015, up from 46% in t he prior year period.

In the third quarter, Nasdaq repurchased approximately $255 million of common stock. Through dividend payments and stock buybacks, the company returned $418 million in capital to shareholders in the first nine months of 2015.

New York, N.Y.

Nasdaq, Inc. (NASDAQ: NDAQ) today reported record results for the third quarter of 2015. Third quarter net revenues were $529 million, up 6% from $497 million in the prior year period, driven by a $55 million positive impact from operations, partially offset by a $23 million negative impact from foreign exchange rates. On an organic basis, excluding the impact of foreign exchange rates and acquisitions, third quarter net revenues were up 9%, while across the non-trading segments, organic revenue growth was 8%.

As evidence of the ongoing successful execution of Nasdaqs strategy, the company delivered broad-based organic growth, in both the transactional and recurring segments, and demonstrated the operating leverage inherent in the model, said

Bob Greifeld, CEO, Nasdaq

Mr. Greifeld

continued, Im especially pleased that we were able to set this new, higher bar, while continuing to invest in attractive growth initiatives, like The NASDAQ Private Market, NFX, and IR Insight as well as returning a significant amount of capital to shareholders. Looking forward, the company is positioned to serve our customers across a wider spectrum of solutions than ever before, and we remain focused on executing against this expanded opportunity set to drive growth.

On a non-GAAP basis, third quarter 2015 operating expenses were $276 million, up 3% as compared to the prior year quarter, due to higher organic spend and the impact of the Dorsey Wright acquisition partially offset by the favorable impact of changes in foreign exchange rates.

Nasdaqs hallmark focus on efficiency combined with healthy organic revenue growth delivered robust cash flow in the quarter, said

Lee Shavel, EVP and CFO, Nasdaq

. Seeing opportunities to generate attractive returns for shareholders through repurchases, the company took advantage of strong capital generation and balance sheet flexibility to accelerate the buyback program. The companys capital strategy will continue to evaluate all investment and capital return opportunities with a goal of maximizing shareholder returns.

On a GAAP basis, operating expenses were $298 million in the third quarter of 2015, compared to $290 million in the prior year quarter, and include a net $22 million of expenses not reflected in non-GAAP operating expenses.

On a non-GAAP basis, net income attributable to Nasdaq for the third quarter of 2015 was $151 million, or $0.88 per diluted share, up $0.10 compared to $0.78 in the third quarter of 2014. On a GAAP basis, net income attributable to Nasdaq for the third quarter of 2015 was $138 million, or $0.80 per diluted share, compared with $123 million, or $0.71 per diluted share, in the prior year quarter.

Represents revenues less transaction-based expenses.

Please refer to our reconciliation of GAAP to non-GAAP net income, diluted earnings per share, operating income and operating expenses included in the attached schedules.

The company repurchased 4.9 million shares, or approximately $255 million of common stock, in the third quarter of 2015 at an average price of $51.97. At September 30, 2015, there is $226 million remaining on the buyback authorization.

At September 30, 2015, the company had cash and cash equivalents of $290 million and total debt of $2,435 million, resulting in net debt of $2,145 million. This compares to net debt of $1,870 million at December 31, 2014.

BUSINESS HIGHLIGHTS

Market Services (38% of total net revenues) -

Net revenues were $200 million in the third quarter of 2015, up $11 million when compared to $189 million in the third quarter of 2014. The $11 million year-over-year increase reflects a $22 million operational increase which was partially offset by an $11 million decrease due to changes in foreign exchange rates.

Equity Derivatives (10% of total net revenues)

Net equity derivative trading and clearing revenues were $51 million in the third quarter of 2015, up $1 million compared to the third quarter of 2014. The increase in equity derivatives revenue was driven by higher average capture and industry volumes in the U.S., partially offset by foreign exchange impact and lower U.S. market share.

Cash Equities (13% of total net revenues)

Net cash equity trading revenues were $67 million in the third quarter of 2015, up $16 million compared to the third quarter of 2014. The increase in cash equity revenue resulted from higher average capture and higher industry volumes, partially offset by foreign exchange impact and lower U.S. market share.

Fixed Income, Currency and Commodities (4% of total net revenues)

Net FICC trading and clearing revenues were $23 million in the third quarter of 2015, down $7 million from the third quarter of 2014, due to volume declines in U.S. fixed income and commodities products, foreign exchange impact, and the scheduled termination of an eSpeed technology licensing customer, partially offset by higher European fixed income revenues.

Access and Broker Services (11% of total net revenues)

Access and broker services revenues totaled $59 million in the third quarter of 2015, up $1 million compared to the third quarter of 2014, as organic revenue increases were partially offset by the impact of changes in foreign exchange rates.

Information Services (25% of total net revenues)

Revenues were $132 million in the third quarter of 2015, up $18 million from the third quarter of 2014. The $18 million year-over-year increase reflects a $12 million operational increase and a $9 million increase from Dorsey Wright, which was partially offset by a $3 million decrease due to changes in foreign exchange rates.

Data Products (19% of total net revenues)

Data products revenues were $103 million in the third quarter of 2015, up $11 million compared to the third quarter of 2014, as increased revenue from proprietary and shared tape revenue plans, higher audit collections, as well as the inclusion of revenue associated with the Dorsey Wright acquisition were partially offset by the negative impact of changes in foreign exchange rates.

Index Licensing and Services (6% of total net revenues)

Index licensing and services revenues were $29 million in the third quarter of 2015, up $7 million from the third quarter of 2014. The revenue growth was primarily driven by the inclusion of revenue associated with the Dorsey Wright acquisition.

Technology Solutions (25% of total net revenues)

Revenues were $131 million in the third quarter of 2015, down $4 million from the third quarter of 2014. The $4 million year-over-year decrease reflects a $2 million operational increase, which was more than offset by a $6 million decrease due to changes in foreign exchange rates.

Corporate Solutions (14% of total net revenues)

Corporate solutions revenues were $72 million in the third quarter of 2015, down $3 million from the third quarter of 2014. The corporate solutions revenue decline was due primarily to the impact of changes in foreign exchange rates.

Market Technology (11% of total net revenues)

Market technology revenues were $59 million in the third quarter of 2015, down $1 million from the third quarter of 2014. Declines were driven by an...


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