Intercontinental Exchange Reports Second Quarter 2018
- Record second quarter revenues of $1.2 billion , +6% y/y
- GAAP Diluted EPS of $0.78 , +10% y/y
- Adj. Diluted EPS of $0.90 , +18% y/y
- Operating Margin of 53%, +1 pt. y/y; Adj. operating margin of 60%, +2 pts. y/y
- Through 2Q18, over $1 billion returned to stockholders, +47% y/y
ATLANTA
&
NEW YORK
--(BUSINESS WIRE)--
Intercontinental Exchange (NYSE: ICE), a leading operator of global
exchanges and clearing houses and provider of data and listing services,
today reported financial results for the second quarter of 2018. For the
quarter ended June 30, 2018, consolidated net income attributable to ICE
was
$455 million
on
$1.2 billion
of consolidated revenues less
transaction-based expenses. Second quarter GAAP diluted earnings per
share (EPS) were
$0.78
. Adjusted net income was
$525 million
in the
second quarter and adjusted diluted EPS were
$0.90
, up 18%
year-over-year. Please refer to the reconciliation of non-GAAP financial
measures included in this press release for more information on our
adjusted operating expenses, adjusted operating income, adjusted
operating margin, adjusted net income, adjusted diluted EPS, organic
data revenue and free cash flow.
Jeffrey C. Sprecher, Chairman & CEO, said,“We are pleased to report our second quarter results, which extend our track record of execution and growth. We reported another quarter of record revenues and double-digit EPS growth, as strong results in our data and listings segment were complemented by double-digit revenue growth in our trading and clearing segment. As we continue to innovate, customer demand for our unique content, our secure distribution and our global benchmark contracts has never been stronger."
Scott A. Hill, ICE CFO, added: "In the first half of 2018, we grew
revenues, expanded margins and generated over
$1.2 billion
of operating
cash flow. We returned over
$1 billion
of capital to stockholders in
2018 while also continuing to invest and position our business for
future growth. As we look to the second half of the year, we are excited
about the array of growth opportunities ahead and our ability to
generate value for stockholders."
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Second Quarter 2018 Business Highlights |
|
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|
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|
|
|
|
Net |
|
Op |
|
Adj Op |
$ (in millions) |
|
Revenue |
|
Margin |
|
Margin |
|
|
|
|
|
|
|
| Data & Listings |
|
$ |
637 |
|
41 |
% |
|
52 |
% |
| Trading & Clearing |
|
$ |
609 |
|
64 |
% |
|
68 |
% |
| Consolidated |
|
$ |
1,246 |
|
53 |
% |
|
60 |
% |
|
|
|
|
|
|
|
Second quarter, consolidated net revenues were
$1.2 billion
, up 6%
year-over-year. Data and listings revenues in the second quarter were
$637 million
and trading and clearing net revenues were
$609 million
.
Consolidated operating expenses were
$591 million
for the second quarter
of 2018. On an adjusted basis, consolidated operating expenses were
$503
million
. Consolidated operating income for the second quarter was
$655
million
and the operating margin was 53%. On an adjusted basis,
consolidated operating income for the second quarter was
$743 million
and the adjusted operating margin was 60%.
Data and Listings Segment Results
Second quarter data and listings revenues were
$637 million
, including
data revenues of
$526 million
, up 1% year-over-year, negatively impacted
by the divestiture of Trayport in the fourth quarter of 2017, and
listings revenues of
$111 million
, up 2% year-over-year, negatively
impacted by the divestiture of NYSE Governance Services in the second
quarter of 2017. On an organic, constant currency basis(1),
segment revenues were up 4% with data revenues up 4% year-over-year and
listings revenues up 5% year-over-year. Data and listings operating
expenses were
$373 million
and on an adjusted basis, were
$308 million
in the second quarter. Segment operating income for the second quarter
was
$264 million
and the operating margin was 41%. On an adjusted basis,
operating income was
$329 million
and the adjusted operating margin was
52%.
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|
Organic |
|
|
|
|
|
|
|
|
Const |
| $ (in millions) |
|
2Q18 |
|
% Chg |
|
Organic |
|
Curr(1) |
| Revenue: |
|
|
|
|
|
|
|
|
| Pricing and Analytics |
|
$ |
262 |
|
8 |
% |
|
8 |
% |
|
7 |
% |
| Exchange Data |
|
|
144 |
|
1 |
% |
|
— |
% |
|
— |
% |
| Desktops and Connectivity |
|
|
120 |
|
(12 |
)% |
|
3 |
% |
|
2 |
% |
| Data Total |
|
|
526 |
|
1 |
% |
|
4 |
% |
|
4 |
% |
| Listings |
|
|
111 |
|
2 |
% |
|
5 |
% |
|
5 |
% |
| Segment Revenue |
|
$ |
637 |
|
1 |
% |
|
4 |
% |
|
4 |
% |
|
|
|
|
|
|
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| (1) |
|
Net revenues in constant currency are calculated holding both the
pound sterling and euro at the average exchange rate from 2Q17,
1.2793 and 1.1004, respectively. References to organic growth
excludes businesses that have been acquired, divested or
discontinued that significantly impact the comparable periods. For
2Q18 and 2Q17,
$10 million
and
$27 million
of data revenues were
excluded from organic growth, respectively, and
$3 million
of
listings revenues were excluded from 2Q17. |
|
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|
Trading and Clearing Segment Results
Second quarter trading and clearing net revenues were
$609 million
, up
11% from one year ago. Trading and clearing operating expenses were
$218
million
and adjusted operating expenses were
$195 million
in the second
quarter. Segment operating income for the second quarter was
$391
million
and the operating margin was 64%. On an adjusted basis,
operating income was
$414 million
and the adjusted operating margin was
68%.
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| $ (in millions) |
|
2Q18 |
|
% Chg |
| Revenue, net: |
|
|
|
|
| Energy |
|
$ |
250 |
|
8 |
% |
| Ags & metals |
|
|
74 |
|
20 |
% |
| Financials(1) |
|
|
94 |
|
7 |
% |
| Cash equities & equity options |
|
|
79 |
|
6 |
% |
| OTC & other transaction(2) |
|
|
57 |
|
26 |
% |
| Other revenue(3) |
|
|
55 |
|
12 |
% |
| Segment Revenue |
|
$ |
609 |
|
11 |
% |
|
|
|
|
|
| (1) |
|
Financials includes interest rates and other financial futures and
options. |
| (2) |
|
OTC & Other transaction includes physical energy, fixed income
execution and CDS execution and clearing. |
| (3) |
|
Other revenue includes interest income on certain clearing margin
deposits, regulatory penalties and fines, fees for use of our
facilities, regulatory fees charged to member organizations of our
U.S.
securities exchanges, designated market maker service fees,
exchange member fees, and agriculture grading and certification fees. |
|
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|
- Energy futures and options revenue in the second quarter increased 8%
year-over-year driven by a 11% increase in rate per contract (RPC),
partially offset by a 5% decline in average daily volume (ADV).
- Ags and metals futures and options revenue in the second quarter
increased 20% year-over-year driven by a 13% increase in ADV and 4%
increase in RPC.
- Financials futures and options revenue in the second quarter increased
7% year-over-year driven by a 2% increase in ADV and a 5% increase in
RPC.
-
U.S.
cash equities and equity options revenue in the second quarter
increased 6% year-over-year driven by a 35% increase in equity options
ADV and a 5% increase in
U.S.
Cash Equities RPC.
- OTC and other transaction revenues in the second quarter were up 26%
year-over-year driven by a 19% increase in CDS clearing revenue in the
second quarter and the addition of BondPoint.
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|
|
ADV |
|
|
|
|
(lots in thousands) |
|
RPC |
|
|
2Q18 |
|
% Chg |
|
2Q18 |
|
% Chg |
| Energy |
|
2,741 |
|
(5 |
)% |
|
$ |
1.43 |
|
11 |
% |
| Ags & metals |
|
480 |
|
13 |
% |
|
$ |
2.42 |
|
4 |
% |
| Financials |
|
2,902 |
|
2 |
% |
|
$ |
0.49 |
|
5 |
% |
| Interest Rates |
|
2,473 |
|
8 |
% |
|
$ |
0.39 |
|
9 |
% |
| Other Financials |
|
429 |
|
(22 |
)% |
|
$ |
1.06 |
|
13 |
% |
| Total Futures & Options |
|
6,123 |
|
— |
|
|
$ |
1.06 |
|
9 |
% |
|
|
|
|
|
|
|
|
|
| Cash Equities |
|
1,584 |
|
(3 |
)% |
|
$ |
0.053 |
|
5 |
% |
| Equity Options |
|
3,095 |
|
35 |
% |
|
$ |
0.13 |
|
(19 |
)% |
|
|
|
|
|
|
|
|
|
| The second quarter of 2018 included 64 trading days for commodities,
other financials, cash equities and equity options and 64 trading
days for interest rates. The second quarter of 2017 included 63
trading days for commodities, other financials, cash equities and
equity options and 63 trading days for interest rates. |
|
Other Matters
- The effective tax rate for the second quarter was 24%.
- Through the second quarter, ICE repurchased approximately
$759 million
of its common stock and paid
$279 million
in dividends.
- Unrestricted cash was
$532 million
and outstanding debt was
$6.9
billion
as of June 30, 2018.
- Operating cash flow through the second quarter was
$1.24 billion
compared to
$1.10 billion
one year ago. Through the second quarter,
free cash flow was
$1.05 billion
, up 17% from
$898 million
one year
ago.
Financial Guidance
- ICE's third quarter 2018 data revenues are expected to be in a range
of
$530 million
to
$532 million
.
- ICE's fourth quarter 2018 data revenues are expected to be in a range
of
$538 million
to
$542 million
.
- ICE's third quarter 2018 GAAP operating expenses are expected to be in
a range of
$590 million
to
$600 million
and adjusted
operating expenses(1) are expected to be in a range of
$520
million
to
$525 million
.
- ICE's full year 2018 GAAP operating expenses are expected to be in a
range of
$2,355 million
to
$2,365 million
and adjusted operating
expenses(1) are expected to be in a range of
$2,040 million
to
$2,050 million
.
- ICE's interest expense is expected to be
$67 million
in the third
quarter and
$73 million
in the fourth quarter.
- ICE's diluted share count for the third quarter is expected to be in
the range of 575 million to 577 million weighted average shares
outstanding and 577 million to 582 million for the full year,
including only share repurchases completed through July 31, 2018.
| (1) |
|
The 2018 Non-GAAP adjusted operating expense excludes
$73 million
in
amortization of acquisition-related intangibles for the third
quarter of 2018 and
$283 million
for the full year. The GAAP
operating expense forecast does not reflect an estimate of
acquisition-related transaction and integration costs for the third
quarter of 2018. |
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Earnings Conference Call Information
ICE will hold a conference call today, August 2, at 8:30 a.m. ET to
review its second quarter 2018 financial results. A live audio webcast
of the earnings call will be available on the company's website at www.theice.com in the investor relations section. Participants may also listen via
telephone by dialing 888-317-6003 from
the United States
, 866-284-3684
from
Canada
or 412-317-6061 from outside of
the United States
and
Canada
. Telephone participants are required to provide the
participant entry number 2600358 and are recommended to call 10 minutes
prior to the start of the call. The call will be archived on the
company's website for replay.
The conference call for the third quarter 2018 earnings has been
scheduled for October 31, 2018 at 8:30 a.m. ET. Please refer to the
Investor Relations website at www.ir.theice.com for additional information.
Historical futures, options and cash ADV, rate per contract, open
interest data and CDS cleared information can be found at: http://ir.theice.com/investors-and-media/supplemental-volume-info/default.aspx
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| Consolidated Statements of Income |
| (In millions, except per share amounts) |
| (Unaudited) |
|
|
|
|
|
|
|
Six Months Ended |
|
Three Months Ended |
|
|
June 30, |
|
June 30, |
| Revenues: |
|
2018 |
2017 |
|
2018 |
2017 |
| Transaction and clearing, net |
|
$ |
1,762 |
|
$ |
1,615 |
|
|
$ |
864 |
|
$ |
817 |
|
| Data services |
|
1,046 |
|
1,041 |
|
|
526 |
|
521 |
|
| Listings |
|
220 |
|
217 |
|
|
111 |
|
109 |
|
| Other revenues |
|
108 |
|
94 |
|
|
55 |
|
49 |
|
| Total revenues |
|
3,136 |
|
2,967 |
|
|
1,556 |
|
1,496 |
|
| Transaction-based expenses: |
|
|
|
|
|
|
| Section 31 fees |
|
211 |
|
183 |
|
|
90 |
|
92 |
|
| Cash liquidity payments, routing and clearing |
|
454 |
|
438 |
|
|
220 |
|
224 |
|
| Total revenues, less transaction-based expenses |
|
2,471 |
|
2,346 |
|
|
1,246 |
|
1,180 |
|
| Operating expenses: |
|
|
|
|
|
|
| Compensation and benefits |
|
481 |
|
483 |
|
|
241 |
|
236 |
|
| Professional services |
|
59 |
|
64 |
|
|
29 |
|
32 |
|
| Acquisition-related transaction and integration costs |
|
27 |
|
23 |
|
|
15 |
|
9 |
|
| Technology and communication |
|
213 |
|
195 |
|
|
108 |
|
97 |
|
| Rent and occupancy |
|
33 |
|
35 |
|
|
16 |
|
17 |
|
| Selling, general and administrative |
|
72 |
|
79 |
|
|
39 |
|
38 |
|
| Depreciation and amortization |
|
281 |
|
276 |
|
|
143 |
|
142 |
|
| Total operating expenses |
|
1,166 |
|
1,155 |
|
|
591 |
|
571 |
|
| Operating income |
|
1,305 |
|
1,191 |
|
|
655 |
|
609 |
|
| Other income (expense): |
|
|
|
|
|
|
| Interest expense |
|
(107 |
) |
(90 |
) |
|
(55 |
) |
(45 |
) |
| Other income, net |
|
30 |
|
191 |
|
|
11 |
|
3 |
|
| Other income (expense), net |
|
(77 |
) |
101 |
|
|
(44 |
) |
(42 |
) |
| Income before income tax expense |
|
1,228 |
|
1,292 |
|
|
611 |
|
567 |
|
| Income tax expense |
|
292 |
|
354 |
|
|
149 |
|
140 |
|
| Net income |
|
$ |
936 |
|
$ |
938 |
|
|
$ |
462 |
|
$ |
427 |
|
| Net income attributable to non-controlling interest |
|
(17 |
) |
(16 |
) |
|
(7 |
) |
(8 |
) |
| Net income attributable to Intercontinental Exchange, Inc. |
|
$ |
919 |
|
$ |
922 |
|
|
$ |
455 |
|
$ |
419 |
|
|
|
|
|
|
|
|
| Earnings per share attributable to Intercontinental Exchange, Inc.
common stockholders: |
|
|
|
|
|
|
| Basic |
|
$ |
1.59 |
|
$ |
1.56 |
|
|
$ |
0.79 |
|
$ |
0.71 |
|
| Diluted |
|
$ |
1.58 |
|
$ |
1.55 |
|
|
$ |
0.78 |
|
$ |
0.71 |
|
| Weighted average common shares outstanding: |
|
|
|
|
|
|
| Basic |
|
580 |
|
593 |
|
|
578 |
|
591 |
|
| Diluted |
|
583 |
|
597 |
|
|
581 |
|
595 |
|
| Dividend per share |
|
$ |
0.48 |
|
$ |
0.40 |
|
|
$ |
0.24 |
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated Balance Sheets |
| (In millions) |
| (Unaudited) |
|
|
|
|
|
|
|
As of |
|
As of |
|
|
June 30, 2018 |
|
December 31, 2017 |
| Assets: |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
532 |
|
|
$ |
535 |
|
| Short-term restricted cash and cash equivalents |
|
817 |
|
|
769 |
|
| Customer accounts receivable, net |
|
1,049 |
|
|
903 |
|
| Margin deposits, guaranty funds, and delivery contracts receivable |
|
54,991 |
|
|
51,222 |
|
| Prepaid expenses and other current assets |
|
171 |
|
|
133 |
|
| Total current assets |
|
57,560 |
|
|
53,562 |
|
| Property and equipment, net |
|
1,220 |
|
|
1,246 |
|
| Other non-current assets: |
|
|
|
|
| Goodwill |
|
12,484 |
|
|
12,216 |
|
| Other intangible assets, net |
|
10,223 |
|
|
10,269 |
|
| Long-term restricted cash and cash equivalents |
|
331 |
|
|
264 |
|
| Other non-current assets |
|
1,029 |
|
|
707 |
|
| Total other non-current assets |
|
24,067 |
|
|
23,456 |
|
| Total assets |
|
$ |
82,847 |
|
|
$ |
78,264 |
|
|
|
|
|
|
| Liabilities and Equity: |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
405 |
|
|
$ |
462 |
|
| Section 31 fees payable |
|
209 |
|
|
128 |
|
| Accrued salaries and benefits |
|
150 |
|
|
227 |
|
| Deferred revenue |
|
372 |
|
|
125 |
|
| Short-term debt |
|
2,645 |
|
|
1,833 |
|
| Margin deposits, guaranty funds, and delivery contracts payable |
|
54,991 |
|
|
51,222 |
|
| Other current liabilities |
|
122 |
|
|
178 |
|
| Total current liabilities |
|
58,894 |
|
|
54,175 |
|
| Non-current liabilities: |
|
|
|
|
| Non-current deferred tax liability, net |
|
2,284 |
|
|
2,298 |
|
| Long-term debt |
|
4,271 |
|
|
4,267 |
|
| Accrued employee benefits |
|
235 |
|
|
243 |
|
| Other non-current liabilities |
|
323 |
|
|
296 |
|
| Total non-current liabilities |
|
7,113 |
|
|
7,104 |
|
| Total liabilities |
|
66,007 |
|
|
61,279 |
|
| Equity: |
|
|
|
|
| Intercontinental Exchange, Inc. stockholders’ equity: |
|
|
|
|
| Common stock |
|
6 |
|
|
6 |
|
| Treasury stock, at cost |
|
(1,911 |
) |
|
(1,076 |
) |
| Additional paid-in capital |
|
11,477 |
|
|
11,392 |
|
| Retained earnings |
|
7,498 |
|
|
6,858 |
|
| Accumulated other comprehensive loss |
|
(265 |
) |
|
(223 |
) |
| Total Intercontinental Exchange, Inc. stockholders’ equity |
|
16,805 |
|
|
16,957 |
|
| Non-controlling interest in consolidated subsidiaries |
|
35 |
|
|
28 |
|
| Total equity |
|
16,840 |
|
|
16,985 |
|
| Total liabilities and equity |
|
$ |
82,847 |
|
|
$ |
78,264 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures and Reconciliation
We use non-GAAP measures internally to evaluate our performance and in
making financial and operational decisions. When viewed in conjunction
with our GAAP results and the accompanying reconciliation, we believe
that our presentation of these measures provides investors with greater
transparency and a greater understanding of factors affecting our
financial condition and results of operations than GAAP measures alone.
In addition, we believe the presentation of these measures is useful to
investors for period-to-period comparison of results because the items
described below as adjustments to GAAP are not reflective of our core
business performance. These financial measures are not in accordance
with, or an alternative to, GAAP financial measures and may be different
from non-GAAP measures used by other companies. We use these adjusted
results because we believe they more clearly highlight trends in our
business that may not otherwise be apparent when relying solely on GAAP
financial measures, since these measures eliminate from our results
specific financial items that have less bearing on our core operating
performance. We strongly recommend that investors review the GAAP
financial measures and additional non-GAAP information included in our
Quarterly Report on Form 10-Q, including our consolidated financial
statements and the notes thereto.
Adjusted operating expenses, adjusted operating income, adjusted
operating margin, adjusted net income attributable to ICE common
stockholders, adjusted diluted earnings per share, organic data revenue
and free cash flow for the periods presented below are calculated by
adding or subtracting the adjustments described below, which are not
reflective of our cash operations and core business performance, and
their related income tax effect and other tax adjustments (in millions,
except for per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income, Operating Margin and Operating
Expense Reconciliation |
(In millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading and Clearing |
|
Data and Listings |
|
|
|
|
Segment |
|
Segment |
|
Consolidated |
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Total revenues, less transaction-based expenses |
|
$ |
609 |
|
|
$ |
550 |
|
|
$ |
637 |
|
|
$ |
630 |
|
|
$ |
1,246 |
|
|
$ |
1,180 |
|
| Total operating expenses |
|
$ |
218 |
|
|
$ |
197 |
|
|
$ |
373 |
|
|
$ |
374 |
|
|
$ |
591 |
|
|
$ |
571 |
|
| Less: Interactive Data transaction and integration costs |
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
8 |
|
|
|
12 |
|
|
|
8 |
|
| Less: Amortization of acquisition-related intangibles |
|
|
15 |
|
|
|
16 |
|
|
|
53 |
|
|
|
51 |
|
|
|
68 |
|
|
|
67 |
|
| Less: Impairment of exchange registration intangible assets on
closure of ICE Futures Canada and ICE Clear Canada |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
| Less: Impairment on divestiture of NYSE Governance Services |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
| Less: Employee severance costs related to ICE Futures Canada and ICE
Clear Canada operations |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
| Adjusted total operating expenses |
|
$ |
195 |
|
|
$ |
181 |
|
|
$ |
308 |
|
|
$ |
309 |
|
|
$ |
503 |
|
|
$ |
490 |
|
| Operating income |
|
$ |
391 |
|
|
$ |
353 |
|
|
$ |
264 |
|
|
$ |
256 |
|
|
$ |
655 |
|
|
$ |
609 |
|
| Adjusted operating income |
|
$ |
414 |
|
|
$ |
369 |
|
|
$ |
329 |
|
|
$ |
321 |
|
|
$ |
743 |
|
|
$ |
690 |
|
| Operating margin |
|
|
64 |
% |
|
|
64 |
% |
|
|
41 |
% |
|
|
41 |
% |
|
|
53 |
% |
|
|
52 |
% |
| Adjusted operating margin |
|
|
68 |
% |
|
|
67 |
% |
|
|
52 |
% |
|
|
51 |
% |
|
|
60 |
% |
|
|
58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income Attributable to ICE and EPS |
| (In millions) |
| (Unaudited) |
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
Ended June |
|
Ended June |
|
|
30, 2018 |
|
30, 2017 |
| Net income attributable to ICE |
|
$ |
455 |
|
|
$ |
419 |
|
| Add: Interactive Data transaction and integration costs |
|
12 |
|
|
8 |
|
| Add: Amortization of acquisition-related intangibles |
|
68 |
|
|
67 |
|
| Add: Impairment of exchange registration intangible assets on
closure of ICE Futures Canada and ICE Clear Canada |
|
4 |
|
|
— |
|
| Add: Employee severance costs related to ICE Futures Canada and ICE
Clear Canada operations |
|
4 |
|
|
— |
|
| Add: Impairment on divestiture of NYSE Governance Services |
|
— |
|
|
6 |
|
| Add: Foreign exchange loss and transaction expenses on sale of Cetip |
|
— |
|
|
9 |
|
| (Less): Income tax effect for the above items |
|
(23 |
) |
|
(60 |
) |
| Add: Deferred tax adjustment on acquisition-related intangibles |
|
5 |
|
|
— |
|
| Adjusted net income attributable to ICE |
|
$ |
525 |
|
|
$ |
449 |
|
|
|
|
|
|
| Diluted earnings per share attributable to ICE |
|
$ |
0.78 |
|
|
$ |
0.71 |
|
|
|
|
|
|
| Adjusted diluted earnings per share attributable to ICE |
|
$ |
0.90 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP to Organic Data Revenue |
| (In millions) |
| (Unaudited) |
|
|
|
|
|
|
|
2Q18 |
|
2Q17 |
| Data Revenue (as reported) |
|
$ |
526 |
|
|
$ |
521 |
|
| Adjusted for: |
|
|
|
|
| 2017 Divestitures & wind down of acq. businesses(1) |
|
|
— |
|
|
|
(27 |
) |
| Acquisitions(2) |
|
|
(10 |
) |
|
|
— |
|
| Organic Data Revenue |
|
$ |
516 |
|
|
$ |
494 |
|
|
|
|
|
|
| FX Impact(3) |
|
|
(3 |
) |
|
|
— |
|
| Organic, constant currency revenue |
|
$ |
513 |
|
|
$ |
494 |
|
|
|
|
|
|
| (1) |
|
Includes
$19 million
of revenue related to the divestiture of
Trayport in the fourth quarter of 2017 and
$8 million
of revenue
related to the wind down of acquired business. Wind down of acquired
businesses includes the discontinuation of certain businesses
acquired as part of a larger acquisitions that are no longer
strategic for the company. These include the anticipated 2018
erosion of legacy SPSE customers who can no longer use IDC & SPSE as
their primary and secondary source of data and the impact of exiting
certain non-strategic components of the legacy IDC 7-Ticks business. |
| (2) |
|
Includes revenues from TMX, ICE BofAML, NGX and BondPoint. |
| (3) |
|
Net revenues in constant currency are calculated holding both the
pound sterling and euro at the average exchange rate from 2Q17,
1.2793 and 1.1004, respectively. For the three months ending June
30, 2018, 6% of our data revenues were billed in pounds sterling and
4% in euros. For the three months ending June 30, 2017, 9% of our
data revenues were billed in pounds sterling and 3% in euros. |
|
|
|
|
|
|
|
|
| Free Cash Flow Calculation |
| (In millions) |
| (Unaudited) |
|
|
|
|
|
|
|
1H18 |
|
1H17 |
| Cash flow from operations |
|
$ |
1,236 |
|
|
$ |
1,099 |
|
| Less: Capital expenditures and capitalized software development costs |
|
|
(108 |
) |
|
|
(150 |
) |
| Less: Section 31 fees, net |
|
|
(80 |
) |
|
|
(51 |
) |
| Free cash flow |
|
$ |
1,048 |
|
|
$ |
898 |
|
|
|
|
|
|
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 and Fortune
Future 50 company formed in the year 2000 to modernize markets. ICE
serves customers by operating the exchanges, clearing houses and
information services they rely upon to invest, trade and manage risk
across global financial and commodity markets. A leader in market data,
ICE Data Services serves the information and connectivity needs across
virtually all asset classes. As the parent company of the New York Stock
Exchange, the company raises more capital than any other exchange in the
world, driving economic growth and transforming markets.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual property
rights of Intercontinental Exchange, Inc. and/or its affiliates is
located at http://www.intercontinentalexchange.com/terms-of-use.
Key Information Documents for certain products covered by the EU
Packaged Retail and Insurance-based Investment Products Regulation can
be accessed on the relevant exchange website under the heading “Key
Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995 - Statements in this press release regarding ICE's business that
are not historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of additional risks and
uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see ICE's Securities and
Exchange Commission (SEC) filings, including, but not limited to, the
risk factors in Intercontinental Exchange, Inc.’s Annual Report on Form
10-K for the year ended December 31, 2017, as filed with
the SEC on February 7, 2018. We caution you not to place undue reliance
on these forward looking statements. Any forward-looking statement
speaks only as of the date on which such statement is made, and we
undertake no obligation to update any forward-looking statement or
statements to reflect events or circumstances after the date on which
such statement is made or to reflect the occurrence of an unanticipated
event. New factors emerge from time to time, and it is not possible for
management to predict all factors that may affect our business and
prospects. Further, management cannot assess the impact of each factor
on the business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements.
SOURCE: Intercontinental Exchange
ICE-CORP
View source version on businesswire.com: https://www.businesswire.com/news/home/20180802005235/en/
ICE Investor Relations Contact:
Warren
Gardiner
+1 770 835 0114
warren.gardiner@theice.com
investors@theice.com
or
ICE
Media Contact:
Damon Leavell
+1 212 323 8587
damon.leavell@theice.com
media@theice.com
Source: Intercontinental Exchange