UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
April 23, 2009
CME GROUP INC.
(Exact Name of Registrant as Specified in Charter)
| Delaware | 000-31553 | 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)
Registrant’s telephone number, including area code: (312) 930-1000
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | 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. |
The information set forth under “Item 2.02. Results Of Operations and Financial Condition,” including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Attached and incorporated herein by reference as Exhibit 99.1 is a copy of a press release of CME Group Inc. dated April 23, 2009, reporting CME Group Inc.’s financial results for the quarter ended March 31, 2009.
| Item 9.01 | Financial Statements and Exhibits. |
A copy of the press release is attached hereto as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CME Group Inc. | ||||
| Registrant | ||||
| Date: April 23, 2009 | By: | /s/ Kathleen M. Cronin | ||
| Name: | Kathleen M. Cronin | |||
| Title: | Managing Director, General Counsel and Corporate Secretary | |||
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Press Release, dated April 23, 2009. |
Exhibit 99.1
| Media Contacts | Investor Contact | |||
| Anita Liskey, 312 .466.4613 | John Peschier, 312.930.8491 | |||
| William Parke, 312.930.3467 | CME-E | |||
| FOR IMMEDIATE RELEASE | news@cmegroup.com http://cmegroup.mediaroom.com/ |
CME Group Inc. Reports First Quarter 2009 Financial Results
| • | GAAP diluted EPS of $3.00 |
| • | Pro Forma diluted EPS of $3.20 |
| • | GAAP operating margin of 60 percent |
| • | Pro forma operating margin of 61 percent |
CHICAGO, April 23, 2009 – CME Group Inc. (NASDAQ: CME) today reported that total first-quarter GAAP revenues increased 4 percent to $647 million, and GAAP operating income decreased 3 percent to $386 million. Net income for the first quarter was $199 million and diluted earnings per share on a GAAP basis were $3.00. The 2009 GAAP results reflect the operations of Chicago Mercantile Exchange (CME), Board of Trade of the City of Chicago (CBOT), and New York Mercantile Exchange (NYMEX), and include a reduction in net income of $13.4 million for merger-related items. The GAAP results for first-quarter 2008 reflect the operations of CME and CBOT only.
First-quarter pro forma non-GAAP diluted earnings per share were $3.20, down 30 percent compared with the prior year period. All pro forma results reflect the operations of both CME Group Inc. and NYMEX, as if they were combined for all periods reported, and first-quarter 2009 pro forma non-GAAP results exclude the $13.4 million of merger-related items mentioned above.
Total revenues decreased 21 percent to $647 million, and the combined average rate per contract increased 12 percent to 83 cents, up from 74 cents in first-quarter 2008, due to a shift in product mix. Pro forma total operating expenses decreased 9 percent to $252 million, compared with the same period last year, due to ongoing expense discipline during the quarter. First-quarter pro forma operating income was $395 million, a decrease of 27 percent from $540 million for the year-ago period.
Despite challenging market conditions, the company maintained a strong pro forma operating margin of 61 percent, compared with a record 66 percent for first-quarter 2008. Operating margin is defined as operating income as a percentage of total revenues. Pro forma net income decreased 30 percent to $213 million for first-quarter 2009.
Pro forma measures do not replace and are not a substitute for GAAP financial results. They are provided to improve overall understanding of current financial performance and to provide a meaningful comparison with prior periods. A full reconciliation of these first-quarter 2009 pro forma results is included with the attached financial statements.
All references to volume and rate per contract information in the text of this document exclude our non-traditional TRAKRS products, for which CME Group receives significantly lower clearing fees than other CME Group products, and Swapstream products.
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“Extraordinarily challenging economic conditions characterized the first quarter, as heightened uncertainty led to a crisis of confidence among investors across the globe,” said CME Group Executive Chairman Terry Duffy. “Our markets continued to perform flawlessly throughout the quarter – once again proving their effectiveness in all environments. CME Group maintained solid profitability levels, while generating significant free cash flow. Looking ahead, we can expect continued short-term choppiness, but we are encouraged by initial signs of stabilization in the financial marketplace. Long-term, we remain optimistic about our opportunities to extend our renowned clearing services to new customers and markets, expand our technology and sales efforts globally, and cross-sell our diverse product set.”
“We continued to focus intensely on expense discipline throughout our organization during the first quarter, including delivering synergies from the NYMEX integration, while also continuing to invest in meaningful future growth areas,” said CME Group Chief Executive Officer Craig Donohue. “Our record OTC revenue generated through CME ClearPort, for example, is a testament both to strong customer demand and to our clearing capability. The critical function performed by central counterparty clearing has been highlighted during the past year, and we are actively engaged in multiple initiatives to bring the safety and soundness of centralized clearing to the over-the-counter markets. In addition, we continue to meet customer needs through innovative product offerings such as three-year treasuries, FX e-minis, and our suite of MSCI equity index offerings, all of which gained traction during the first quarter.”
CME Group Inc. First-Quarter 2009 Results
Financial Highlights:
GAAP
| ($s in millions, except per share) | Q1 FY09 | Q1 FY08 | Y/Y | ||||||||
| Revenues |
$ | 647 | $ | 625 | 4 | % | |||||
| Expenses |
$ | 261 | $ | 225 | 15 | % | |||||
| Operating Income |
$ | 386 | $ | 400 | -3 | % | |||||
| Operating Margin % |
59.7 | % | 63.8 | % | |||||||
| Net Income |
$ | 199 | $ | 284 | -30 | % | |||||
| Diluted EPS |
$ | 3.00 | $ | 5.25 | -43 | % | |||||
Pro Forma Non-GAAP
| ($s in millions, except per share) | Q1 FY09 | Q1 FY08 | Y/Y | ||||||||
| Revenues |
$ | 647 | $ | 817 | -21 | % | |||||
| Expenses |
$ | 252 | $ | 277 | -9 | % | |||||
| Operating Income |
$ | 395 | $ | 540 | -27 | % | |||||
| Operating Margin % |
61.1 | % | 66.1 | % | |||||||
| Net Income |
$ | 213 | $ | 302 | -30 | % | |||||
| Diluted EPS |
$ | 3.20 | $ | 4.54 | -30 | % | |||||
NOTE: See the CME Group Inc. Reconciliation of GAAP to Pro Forma Non-GAAP Measures for detail related to the adjustments made to reach the pro forma results.
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Pro Forma Non-GAAP First-Quarter 2009 Financial Results
First-quarter 2009 average daily volume was 10.4 million contracts, in line with fourth-quarter 2008 volume. Pro forma clearing and transaction fee revenue was $528 million, down from a record $704 million in first-quarter 2008. Quotation data fees were up 3 percent to $86 million in the first quarter. The total pro forma average rate per contract for CME Group increased 12 percent from first-quarter 2008 to 83 cents, but decreased three percent compared with 86 cents in fourth-quarter 2008, due to a higher proportion of lower priced member volume.
First-quarter 2009 pro forma non-operating expense was $36 million, driven primarily by interest expense and borrowing costs of $39 million related to the NYMEX acquisition. Total interest expense included a one-time, non-cash $5 million charge due to the acceleration of the upfront fees and expenses related to the origination of the company’s bridge financing when it was replaced. Additionally, the first-quarter 2009 effective tax rate was 40.9 percent, relatively unchanged from 41.6 percent in first-quarter 2008.
Balance Sheet Highlights
As of March 31, the company had $588 million of cash and marketable securities and $3.1 billion of debt. During the quarter, the company completed a public debt offering of $750 million of 5.75% fixed rate notes due in 2014. The net proceeds from the offering were used to repay any outstanding commercial paper borrowings that were backstopped by the 364-day revolving bridge facility. The company terminated the bridge facility on February 10, 2009. During the quarter, the company paid down approximately $115 million in debt.
CME Group will hold a conference call to discuss first-quarter 2009 results at 8:30 a.m. Eastern Time today. A live audio Webcast of the call will be available on the Investor Relations section of CME Group’s Web site at www.cmegroup.com. An archived recording will be available for up to two months after the call.
CME Group (www.cmegroup.com) is the world’s largest and most diverse derivatives exchange. Building on the heritage of CME, CBOT and NYMEX, CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on trading floors in Chicago and New York. By acting as the buyer to every seller and the seller to every buyer, CME Clearing virtually eliminates counterparty credit risk. CME Clearing also offers financial safeguards to help mitigate systemic risk, providing the security and confidence market participants need to operate, invest and grow. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investment products such as weather and real estate. CME Group is listed on NASDAQ under the symbol “CME.”
The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade, Inc. are trademarks of the Board of Trade of the City of Chicago. NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group and its products can be found at www.cmegroup.com.
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Statements in this press release that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. Among the factors that might affect our performance are: our ability to realize the benefits and control the costs of our merger with NYMEX Holdings, Inc. and our ability to successfully integrate the businesses of CME Group and NYMEX Holdings, including the fact that such integration may be more difficult, time consuming or costly than expected and revenues following the merger may be lower than expected and expected cost savings from the merger may not be fully realized within the expected time frames or at all; increasing competition by foreign and domestic entities, including increased competition from new entrants into our markets and consolidation of existing entities; our ability to keep pace with rapid technological developments, including our ability to complete the development and implementation of the enhanced functionality required by our customers; our ability to continue introducing competitive new products and services on a timely, cost-effective basis, including through our electronic trading capabilities, and our ability to maintain the competitiveness of our existing products and services; our ability to adjust our fixed costs and expenses if our revenues decline; our ability to continue to generate revenues from our processing services; our ability to maintain existing customers, develop strategic relationships and attract new customers; our ability to expand and offer our products in foreign jurisdictions; changes in domestic and foreign regulations; changes in government policy, including policies relating to common or directed clearing, changes as a result of a combination of the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission, or changes relating to the recently enacted or proposed legislation relating to the current economic crisis, including the Emergency Economic Stabilization Act of 2008 and other stimulus packages; the costs associated with protecting our intellectual property rights and our ability to operate our business without violating the intellectual property rights of others; our ability to generate revenue from our market data that may be reduced or eliminated by the growth of electronic trading or declines in subscriptions; changes in our rate per contract due to shifts in the mix of the products traded, the trading venue and the mix of customers (whether the customer receives member or non-member fees or participates in one of our various incentive programs) and the impact of our tiered pricing structure; the ability of our financial safeguards package to adequately protect us from the credit risks of clearing members; the ability of our compliance and risk management methods to effectively monitor and manage our risks; changes in price levels and volatility in the derivatives markets and in underlying fixed income, equity, foreign exchange and commodities markets; economic, political and market conditions, including the recent volatility of the capital and credit markets and the impact of current economic conditions on the trading activity of our current and potential customers; our ability to accommodate increases in trading volume and order transaction traffic without failure or degradation of performance of our systems; our ability to execute our growth strategy and maintain our growth effectively; our ability to manage the risks and control the costs associated with our acquisition, investment and alliance strategy; our ability to continue to generate funds and/or manage our indebtedness to allow us to continue to invest in our business; industry and customer consolidation; decreases in trading and clearing activity; the imposition of a transaction tax on futures and options on futures transactions; the unfavorable resolution of material legal proceedings, the seasonality of the futures business; and changes in the regulation of our industry with respect to speculative trading in commodity interests and derivatives contracts. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available in the Investor Relations section of the CME Group Web site. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
# # #
09-66
CME Group Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in millions)
| March 31, 2009 | December 31, 2008 | |||||
| ASSETS |
||||||
| Current Assets: |
||||||
| Cash and cash equivalents |
$ | 339.2 | $ | 297.9 | ||
| Collateral from securities lending |
155.4 | 426.9 | ||||
| Marketable securities, including pledged securities |
248.5 | 310.1 | ||||
| Accounts receivable, net of allowance |
279.5 | 234.0 | ||||
| Other current assets |
112.7 | 189.1 | ||||
| Cash performance bonds and security deposits |
9,765.6 | 17,653.5 | ||||
| Total current assets |
10,900.9 | 19,111.5 | ||||
| Property, net of accumulated depreciation and amortization |
711.4 | 707.2 | ||||
| Intangible assets - trading products |
16,982.0 | 16,982.0 | ||||
| Intangible assets - other, net of accumulated amortization |
3,335.4 | 3,369.4 | ||||
| Goodwill |
7,517.0 | 7,519.2 | ||||
| Other assets |
468.9 | 469.4 | ||||
| Total Assets |
$ | 39,915.6 | $ | 48,158.7 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||
| Current Liabilities: |
||||||
| Accounts payable |
$ | 46.5 | $ | 71.0 | ||
| Payable under securities lending agreements |
157.1 | 456.8 | ||||
| Short-term debt |
249.9 | 249.9 | ||||
| Other current liabilities |
255.5 | 211.8 | ||||
| Cash performance bonds and security deposits |
9,765.6 | 17,653.5 | ||||
| Total current liabilities |
10,474.6 | 18,643.0 | ||||
| Long-term debt |
2,848.2 | 2,966.1 | ||||
| Deferred tax liabilities |
7,660.5 | 7,728.3 | ||||
| Other liabilities |
133.1 | 132.7 | ||||
| Total Liabilities |
21,116.4 | 29,470.1 | ||||
| Shareholders’ equity |
18,799.2 | 18,688.6 | ||||
| Total Liabilities and Shareholders’ Equity |
$ | 39,915.6 | $ | 48,158.7 | ||
CME Group Inc. and Subsidiaries
Consolidated Statements of Income
(dollars in millions, except per share amounts, and sharecounts in thousands)
| Quarter Ended March 31, |
||||||||
| 2009 | 2008 | |||||||
| Revenues |
||||||||
| Clearing and transaction fees |
$ | 527.8 | $ | 525.1 | ||||
| Quotation data fees |
85.5 | 56.8 | ||||||
| Processing services |
0.1 | 17.5 | ||||||
| Access and communication fees |
11.6 | 10.5 | ||||||
| Other |
22.1 | 15.2 | ||||||
| Total Revenues |
647.1 | 625.1 | ||||||
| Expenses |
||||||||
| Compensation and benefits |
86.7 | 73.3 | ||||||
| Communications |
12.4 | 14.8 | ||||||
| Technology support services |
11.8 | 17.0 | ||||||
| Professional fees and outside services |
22.3 | 14.8 | ||||||
| Amortization of purchased intangibles |
33.3 | 16.2 | ||||||
| Depreciation and amortization |
31.0 | 34.3 | ||||||
| Occupancy and building operations |
19.4 | 16.7 | ||||||
| Licensing and other fee agreements |
24.6 | 13.5 | ||||||
| Restructuring |
3.2 | 1.8 | ||||||
| Other |
16.0 | 22.8 | ||||||
| Total Expenses |
260.7 | 225.2 | ||||||
| Operating Income |
386.4 | 399.9 | ||||||
| Non-Operating Income and Expense |
||||||||
| Investment income |
1.8 | 11.4 | ||||||
| Gains (losses) on derivative investments |
— | (2.2 | ) | |||||
| Securities lending interest income |
2.4 | 23.6 | ||||||
| Securities lending interest and other costs |
(0.4 | ) | (19.3 | ) | ||||
| Interest and other borrowing costs |
(38.5 | ) | (2.3 | ) | ||||
| Guarantee of exercise right privileges |
— | 8.4 | ||||||
| Equity in losses of unconsolidated subsidiaries |
(1.2 | ) | (3.9 | ) | ||||
| Other non-operating expense |
— | (8.4 | ) | |||||
| Total Non-Operating |
(35.9 | ) | 7.3 | |||||
| Income Before Income Taxes |
350.5 | 407.2 | ||||||
| Income tax provision |
(151.4 | ) | (123.7 | ) | ||||
| Net Income |
$ | 199.1 | $ | 283.5 | ||||
| Earnings per Common Share: |
||||||||
| Basic |
$ | 3.00 | $ | 5.28 | ||||
| Diluted |
3.00 | 5.25 | ||||||
| Weighted Average Number of Common Shares: |
||||||||
| Basic |
66,302 | 53,751 | ||||||
| Diluted |
66,439 | 54,028 | ||||||
CME Group Inc. and Subsidiaries
Pro Forma Non-GAAP Consolidated Statements of Income
(dollars in millions, except per share amounts, and sharecounts in thousands)
| Quarter Ended March 31, |
||||||||
| 2009 | 2008 | |||||||
| Revenues |
||||||||
| Clearing and transaction fees |
$ | 527.8 | $ | 704.1 | ||||
| Quotation data fees |
85.5 | 83.0 | ||||||
| Processing services |
0.1 | 0.5 | ||||||
| Access and communication fees |
11.6 | 10.8 | ||||||
| Other |
22.1 | 18.6 | ||||||
| Total Revenues |
647.1 | 817.0 | ||||||
| Expenses |
||||||||
| Compensation and benefits |
86.7 | 91.1 | ||||||
| Communications |
12.4 | 16.0 | ||||||
| Technology support services |
11.8 | 19.0 | ||||||
| Professional fees and outside services |
20.1 | 17.0 | ||||||
| Amortization of purchased intangibles |
30.4 | 29.7 | ||||||
| Depreciation and amortization |
31.0 | 35.3 | ||||||
| Occupancy and building operations |
19.4 | 21.1 | ||||||
| Licensing and other fee agreements |
24.6 | 24.6 | ||||||
| Other |
15.6 | 22.8 | ||||||
| Total Expenses |
252.0 | 276.6 | ||||||
| Operating Income |
395.1 | 540.4 | ||||||
| Non-Operating Income and Expense |
||||||||
| Investment income |
1.8 | 15.2 | ||||||
| Gains (losses) on derivative investments |
— | — | ||||||
| Securities lending interest income |
2.4 | 31.4 | ||||||
| Securities lending interest and other costs |
(0.4 | ) | (25.4 | ) | ||||
| Interest and other borrowing costs |
(38.5 | ) | (38.1 | ) | ||||
| Equity in losses of unconsolidated subsidiaries |
(1.2 | ) | (6.1 | ) | ||||
| Total Non-Operating |
(35.9 | ) | (23.0 | ) | ||||
| Income Before Income Taxes |
359.2 | 517.4 | ||||||
| Income tax provision |
(146.7 | ) | (215.5 | ) | ||||
| Net Income |
$ | 212.5 | $ | 301.9 | ||||
| Earnings per Diluted Common Share |
$ | 3.20 | $ | 4.54 | ||||
| Weighted Average Number of Diluted Common Shares* |
66,439 | 66,568 | ||||||
Note: All pro forma results for CME Group assume the merger with CBOT and the acquisition of NYMEX were completed as of the beginning of the period presented. See CME Group Inc. Reconciliation of GAAP to Pro Forma Non-GAAP Measures for detail on all of the adjustments made to reach the pro forma results.
| * | Weighted average number of diluted common shares includes merger-related shares converted or issued for the entire period reported. |
CME Group Inc. and Subsidiaries
Reconciliation of GAAP to Pro Forma Non-GAAP Measures
(in millions)
| Quarter Ended March 31, |
||||||||
| 2009 | 2008 | |||||||
| GAAP Results |
||||||||
| Revenues |
$ | 647.1 | $ | 625.1 | ||||
| Expenses |
260.7 | 225.2 | ||||||
| Operating income |
386.4 | 399.9 | ||||||
| Non-operating income and expense |
(35.9 | ) | 7.3 | |||||
| Income before income taxes |
350.5 | 407.2 | ||||||
| Income tax provision |
(151.4 | ) | (123.7 | ) | ||||
| Net Income |
$ | 199.1 | $ | 283.5 | ||||
| Pro Forma Adjustments |
||||||||
| Revenues: |
||||||||
| NYMEX pre-merger revenue |
$ | — | $ | 208.9 | ||||
| Intercompany revenue elimination(1) |
— | (17.0 | ) | |||||
| FXMarketSpace write down |
— | — | ||||||
| Total Pro Forma Revenue Adjustment |
— | 191.9 | ||||||
| Expenses: |
||||||||
| NYMEX pre-merger expense |
— | 76.1 | ||||||
| Intercompany expense elimination (1) |
— | (17.0 | ) | |||||
| Amortization of intangibles (2) |
(2.9 | ) | 13.5 | |||||
| Depreciation adjustment from building life change (3) |
— | 1.5 | ||||||
| Other (4) |
(5.8 | ) | (22.7 | ) | ||||
| Total Pro Forma Expense Adjustment |
(8.7 | ) | 51.4 | |||||
| Adjustment to operating income |
8.7 | 140.5 | ||||||
| Non-operating income and expense: |
||||||||
| NYMEX premerger non-operating income |
— | 1.7 | ||||||
| Interest on debt acquired for NYMEX deal |
— | (34.2 | ) | |||||
| ERP Guarantee (5) |
— | (8.4 | ) | |||||
| BM&F Bovespa (6) |
— | 10.6 | ||||||
| Total Pro Forma Non-Operating Income and Expense Adjustment |
— | (30.3 | ) | |||||
| Adjustment to income before income taxes |
8.7 | 110.2 | ||||||
| Adjustment to income tax provision |
4.7 | (91.8 | ) | |||||
| Adjustment to net income |
$ | 13.4 | $ | 18.4 | ||||
| Pro Forma Non-GAAP Results |
||||||||
| Revenues |
$ | 647.1 | $ | 817.0 | ||||
| Expenses |
252.0 | 276.6 | ||||||
| Operating income |
395.1 | 540.4 | ||||||
| Non-operating income and expense |
(35.9 | ) | (23.0 | ) | ||||
| Income before income taxes |
359.2 | 517.4 | ||||||
| Income tax provision(7) |
(146.7 | ) | (215.5 | ) | ||||
| Net Income |
$ | 212.5 | $ | 301.9 | ||||
Notes:
| (1) | Eliminate processing services provided prior to the NYMEX acquisition. |
| (2) | Add amortization of intangible assets recorded in purchase of NYMEX. |
| (3) | Adjust depreciation for changes in value and useful life of building acquired from NYMEX. |
| (4) | Reverse effect of restructuring, accelerated depreciation, integration and legal expenses related to the merger with CBOT and acquisition of NYMEX. Also removes other merger-related transaction costs that were expensed and transaction costs related to the acquisition of CMA. |
| (5) | Reverse impact of exercise right privilege guarantee. |
| (6) | Reverse transaction costs related to the BM&F/Bovespa investment. |
| (7) | Pro forma adjustments are tax affected at CME Group’s estimated statutory tax rate. A first quarter 2008 tax benefit of $38.6 million due to a change in Illinois state tax treatment for apportionment of revenues sourced within the state has been removed for proforma purposes. First-quarter 2009 includes a pro forma tax adjustment for certain merger related items. |
CME Group Inc.
Quarterly Operating Statistics
| 1Q 2008 |
2Q 2008 |
3Q 2008 |
4Q 2008 |
1Q 2009 | ||||||
| Trading Days |
61 | 64 | 64 | 64 | 61 |
Quarterly Average Daily Volume (ADV)
CME Group Pro Forma ADV (Legacy CME, CBOT and NYMEX combined, in thousands)
| 1Q 2008 |
2Q 2008 |
3Q 2008 |
4Q 2008 |
1Q 2009 | ||||||
| Total |
15,540 | 12,876 | 13,236 | 10,441 | 10,389 |
CME Group ADV (Legacy CME and CBOT combined for entire periods reported, in thousands)
| 1Q 2008 |
2Q 2008 |
3Q 2008 |
4Q 2008 |
1Q 2009 | ||||||
| Product Line |
||||||||||
| Interest rates |
8,251 | 6,467 | 6,030 | 3,692 | 3,843 | |||||
| Equity E-mini |
3,628 | 2,833 | 3,638 | 3,799 | 3,378 | |||||
| Equity standard-size |
201 | 161 | 204 | 194 | 159 | |||||
| Foreign exchange |
640 | 665 | 710 | 481 | 507 | |||||
| Commodities & alternative investments |
949 | 933 | 822 | 691 | 685 | |||||
| Total |
13,669 | 11,060 | 11,404 | 8,857 | 8,572 | |||||
| Venue |
||||||||||
| Open outcry |
2,336 | 1,836 | 1,602 | 1,275 | 1,188 | |||||
| Electronic (excluding TRAKRS) |
11,097 | 9,054 | 9,641 | 7,447 | 7,255 | |||||
| Privately negotiated |
236 | 170 | 161 | 136 | 130 | |||||
| Total |
13,669 | 11,060 | 11,404 | 8,857 | 8,572 | |||||
NYMEX/COMEX ADV (in thousands)
| 1Q 2008 |
2Q 2008 |
3Q 2008 |
4Q 2008 |
1Q 2009 | ||||||
| NYMEX floor |
257 | 238 | 193 | 166 | 135 | |||||
| NYMEX electronic |
814 | 865 | 831 | 682 | 798 | |||||
| COMEX floor |
47 | 38 | 36 | 29 | 30 | |||||
| COMEX electronic |
205 | 172 | 214 | 144 | 170 | |||||
| NYMEX ClearPort |
473 | 418 | 492 | 489 | 629 | |||||
| Other |
75 | 85 | 65 | 75 | 54 | |||||
| Total |
1,870 | 1,816 | 1,831 | 1,584 | 1,816 |
Average Rate Per Contract (RPC)
CME Group Pro Forma Average RPC (Legacy CME, CBOT and NYMEX combined)
| 1Q 2008 |
2Q 2008 |
3Q 2008 |
4Q 2008 |
1Q 2009 | |||||||||||
| Total |
$ | 0.743 | $ | 0.775 | $ | 0.785 | $ | 0.858 | $ | 0.833 | |||||
CME Group RPC (Legacy CME and CBOT combined for entire periods reported)
| 1Q 2008 |
2Q 2008 |
3Q 2008 |
4Q 2008 |
1Q 2009 | |||||||||||
| Product Line |
|||||||||||||||
| Interest rates |
$ | 0.505 | $ | 0.522 | $ | 0.521 | $ | 0.569 | $ | 0.532 | |||||
| Equity E-mini |
0.684 | 0.668 | 0.677 | 0.706 | 0.677 | ||||||||||
| Equity standard-size |
1.506 | 1.453 | 1.486 | 1.582 | 1.543 | ||||||||||
| Foreign exchange |
0.927 | 0.907 | 0.936 | 0.894 | 0.918 | ||||||||||
| Commodities & alternative investments |
1.119 | 1.134 | 1.154 | 1.154 | 1.108 | ||||||||||
| Average RPC (excluding TRAKRS) |
$ | 0.630 | $ | 0.648 | $ | 0.659 | $ | 0.713 | $ | 0.677 | |||||
| Venue |
|||||||||||||||
| Open outcry |
$ | 0.553 | $ | 0.572 | $ | 0.607 | $ | 0.663 | $ | 0.607 | |||||
| Electronic (excluding TRAKRS) |
0.609 | 0.629 | 0.637 | 0.691 | 0.659 | ||||||||||
| Privately negotiated |
2.345 | 2.427 | 2.526 | 2.558 | 2.460 | ||||||||||
NYMEX/COMEX RPC
| 1Q 2008 |
2Q 2008 |
3Q 2008 |
4Q 2008 |
1Q 2009 | |||||||||||
| NYMEX floor |
$ | 1.594 | $ | 1.607 | $ | 1.386 | $ | 1.600 | $ | 1.375 | |||||
| NYMEX electronic |
1.324 | 1.304 | 1.315 | 1.308 | 1.347 | ||||||||||
| COMEX floor |
1.641 | 1.712 | 1.626 | 1.801 | 1.776 | ||||||||||
| COMEX electronic |
1.630 | 1.706 | 1.719 | 1.781 | 1.797 | ||||||||||
| NYMEX ClearPort |
1.875 | 1.905 | 1.933 | 2.099 | 1.745 | ||||||||||
| Other |
1.923 | 1.854 | 1.928 | 2.038 | 2.460 | ||||||||||
| Total Pro Forma Average Gross Rate |
$ | 1.570 | $ | 1.556 | $ | 1.567 | $ | 1.671 | $ | 1.569 | |||||
| Total Pro Forma Average Net Rate |
$ | 1.472 | $ | 1.479 | $ | 1.488 | $ | 1.569 | $ | 1.466 | |||||
Note: All CME Group volume and rate per contract data is based upon pro forma results, including the operations of CME Group and NYMEX as if they were combined for the entire period reported. All data excludes our non-traditional TRAKRS products, for which CME Group receives significantly lower clearing fees than other CME Group products. Additionally, all data excludes Swapstream products.