NASDAQ OMX Reports Fourth Quarter and Full Year 2012 Results



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





 


 


 The NASDAQ OMX Group, Inc.


 Consolidated Statements of Income


 (in millions, except per share amounts)


 


 
 
 
 
 
 


 
 Three Months Ended
 Year Ended


 
 December 31,
 September 30,
 December 31,
 December 31,
 December 31,


 
 2012
 2012
 2011
 2012
 2011


Revenues:
(unaudited)
(unaudited)
(unaudited)
(unaudited)
 


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 transaction rebates, brokerage, clearance and exchange fees 
 270
 269
 281
 1,104
 1,138


 
 
 
 
 
 


Issuer Services 
 101
 93
 91
 375
 361


Market Technology 
 48
 47
 48
 184
 183


 
 
 
 
 
 


Revenues less transaction rebates, brokerage, clearance and exchange fees
 419
 409
 420
 1,663
 1,682


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 communications 
 10
 18
 15
 60
 65


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 investees, net 
 -- 
 -- 
 1
 (1)
 2


 
 
 
 
 
 


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 noncontrolling interests 
 1
 -- 
 1
 3
 4


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 share
 $ 0.13
 $ 0.13
 $ -- 
 $ 0.39
 $ -- 


 
 
 
 
 
 


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


 
 December 31,
 September 30,
 December 31,
 December 31,
 December 31,


 
 2012
 2012
 2011
 2012
 2011


 
(unaudited)
(unaudited)
(unaudited)
(unaudited)
 


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 fees 
 (74)
 (75)
 (87)
 (318)
 (375)


Total U.S. cash equity cost of revenues 
 (254)
 (268)
 (348)
 (1,172)
 (1,462)


Net U.S. cash equity trading revenues
 29
 29
 37
 122
 155


European cash equity trading 
 18
 18
 22
 78
 93


Total net cash equity trading revenues
 47
 47
 59
 200
 248


 
 
 
 
 
 


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 fees 
 (10)
 (9)
 (6)
 (34)
 (29)


Total U.S. derivative trading and clearing cost of revenues 
 (79)
 (66)
 (69)
 (284)
 (286)


Net U.S. derivative trading and clearing revenues
 45
 44
 41
 174
 185


European derivative trading and clearing 
 30
 28
 32
 116
 128


Total net derivative trading and clearing revenues
 75
 72
 73
 290
 313


 
 
 
 
 
 


Access Services Revenues
 60
 61
 56
 238
 223


 
 
 
 
 
 


Total Transaction Services revenues less transaction rebates, brokerage, clearance and exchange fees
 182
 180
 188
 728
 784


 
 
 
 
 
 


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 transaction rebates, brokerage, clearance and exchange fees
 270
 269
 281
 1,104
 1,138


 
 
 
 
 
 


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 revenues
 87
 79
 78
 318
 309


 
 
 
 
 
 


Global Index Group Revenues
 14
 14
 13
 57
 52


Total Issuer Services revenues
 101
 93
 91
 375
 361


 
 
 
 
 
 


MARKET TECHNOLOGY
 
 
 
 
 


License, support and facility management 
 27
 27
 29
 110
 115


Delivery project 
 6
 7
 6
 27
 24


Change request, advisory and broker surveillance 
 15
 13
 13
 47
 44


Total Market Technology revenues
 48
 47
 48
 184
 183


 
 
 
 
 
 


Total revenues less transaction rebates, brokerage, clearance and exchange fees
 $ 419
 $ 409
 $ 420
 $ 1,663
 $ 1,682







 


 


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


 
 December 31,
 September 30,
 December 31,
 December 31,
 December 31,


 
 2012
 2012
 2011
 2012
 2011


GAAP net income attributable to NASDAQ OMX:
 $ 85
 $ 89
 $ 82
 $ 352
 $ 387


 
 
 
 
 
 


Non-GAAP adjustments:
 
 
 
 
 


 
 
 
 
 
 


Income from open positions relating to the operations of the Exchange
 -- 
 -- 
 -- 
 (11)
 -- 


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 provision to reflect non-GAAP adjustments(1)
 (5)
 (10)
 (13)
 (32)
 (28)


Significant tax adjustments, net
 17
 1
 -- 
 14
 5


Total non-GAAP adjustments, net of tax
 23
 16
 31
 80
 68


 
 
 
 
 
 


Non-GAAP net income attributable to NASDAQ OMX:
 $ 108
 $ 105
 $ 113
 $ 432
 $ 455


 
 
 
 
 
 


 
 
 
 
 
 


GAAP diluted earnings per share:
 $ 0.50
 $ 0.52
 $ 0.45
 $ 2.04
 $ 2.15


Total adjustments from non-GAAP net income above
 0.14
 0.10
 0.18
 0.46
 0.38


 
 
 
 
 
 


Non-GAAP diluted earnings per share:
 $ 0.64
 $ 0.62
 $ 0.63
 $ 2.50
 $ 2.53


 
 
 
 
 
 


 
 
 
 
 
 


 
 Three Months Ended
 Year Ended


 
 December 31,
 September 30,
 December 31,
 December 31,
 December 31,


 
 2012
 2012
 2011
 2012
 2011


 
 
 
 
 
 


GAAP operating income:
 $ 175
 $ 170
 $ 161
 $ 690
 $ 696


 
 
 
 
 
 


Non-GAAP adjustments:
 
 
 
 
 


 
 
 
 
 
 


 Income from open positions relating to the operations of the Exchange
 -- 
 -- 
 -- 
 (11)
 -- 


 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 transaction rebates, brokerage, clearance and exchange fees
 $ 419
 $ 409
 $ 420
 $ 1,652
 $ 1,682


 
 
 
 
 
 


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


 
December

31,

September 30,
December 31,
December 31,
December 31,


 
2012
2012
2011
2012
2011


 
 
 
 
 
 


GAAP revenues less transaction rebates, brokerage, clearance and exchange fees:
 $ 419
 $ 409
 $ 420
 $ 1,663
 $ 1,682


 
 
 
 
 
 


Non-GAAP adjustments:
 
 
 
 
 


 
 
 
 
 
 


Income from open positions relating to the operations of the Exchange
 -- 
 -- 
 -- 
 (11)
 -- 


Total non-GAAP adjustments
 -- 
 -- 
 -- 
 (11)
 -- 


 
 
 
 
 
 


Non-GAAP revenues less transaction rebates, brokerage, clearance and exchange fees:
 $ 419
 $ 409
 $ 420
 $ 1,652
 $ 1,682


 
 
 
 
 
 


 
 
 
 
 
 


 
 Three Months Ended
 Year Ended


 
December 31,
September 30,
December 31,
December 31,
December 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 31,
 September 30,
 December 31,


 
 2012
 2012
 2011


Market Services
 
 
 


Cash Equity Trading
 
 
 


NASDAQ securities
 
 
 


Total average daily share volume (in billions)
1.74
1.66
1.85


Matched market share executed on NASDAQ
23.6%
25.2%
27.2%


Matched market share executed on NASDAQ OMX BX
2.6%
2.7%
2.5%


Matched market share executed on NASDAQ OMX PSX
1.3%
1.2%
1.1%


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 billions)
3.39
3.39
 4.14


Matched market share executed on NASDAQ
11.5%
12.8%
13.3%


Matched market share executed on NASDAQ OMX BX
2.5%
2.5%
2.5%


Matched market share executed on NASDAQ OMX PSX
0.7%
0.6%
0.6%


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 billions)
0.97
0.94
 1.45


Matched market share executed on NASDAQ
14.1%
16.1%
19.2%


Matched market share executed on NASDAQ OMX BX
2.9%
3.0%
1.9%


Matched market share executed on NASDAQ OMX PSX
1.6%
1.5%
1.9%


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 billions)
 6.09
 5.99
 7.45


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 BX
2.6%
2.7%
2.4%


Matched market share executed on NASDAQ OMX PSX
1.0%
0.9%
1.0%


 
 
 
 


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 (in billions)
 $ 3.4
 $ 3.2
 $ 4.2


Total market share
68.2%
68.5%
71.9%


 
 
 
 


Derivative Trading and Clearing
 
 
 


U.S. Equity Options
 
 
 


Total industry average daily volume (in millions)
14.3
13.8
 15.5


NASDAQ OMX PHLX matched market share
21.9%
21.4%
22.7%


The NASDAQ Options Market matched market share
6.2%
5.2%
4.5%


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 and NASDAQ OMX Baltic
4
1
1


 
 
 
 


New listings
 
 
 


NASDAQ (3)
46
40
44


Exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic (4)
9
4
12


 
 
 
 


Number of listed companies
 
 
 


NASDAQ (5)
 2,577
 2,610
 2,680


Exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic (6)
 754
 754
 776


 
 
 
 


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. 


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

 

Information non réglementée

Communiqué intégral et original au format PDF :


http://www.actusnews.com/documents_communiques/ACTUS-0-30826-NASDAQ-OMX-Reports-Fourth-Quarter-and-Full-Year-2012-Results.pdf

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