Form 425

[Logo of Chicago Board of Trade]

 

    

Filed by CBOT Holdings, Inc.

Subject Company – CBOT Holdings, Inc.

Pursuant to Rule 425 under the Securities Act of 1933

File No. 333-72184

    

 

 

The following press release was distributed on November 10, 2004.

 

 

For Immediate Release    Contact:   

Melissa Jarmel

312-435-3620

news@cbot.com

 

 

CBOT THIRD QUARTER NET INCOME RISES 77 PERCENT

 

CHICAGO, November 10, 2004 – The Chicago Board of Trade (CBOT®) reported today that net income in the third quarter of 2004 rose 77 percent to $12.2 million from $6.9 million in the same period of 2003.

 

CBOT President and CEO Bernard Dan said, “The CBOT’s volume continues to expand at a rapid pace, with turnover at the exchange up 18 percent in the third quarter versus third quarter last year. In October, the CBOT surpassed its all-time annual trading volume record set in 2003, testimony to the value provided by the exchange’s liquid and transparent markets and superior electronic trading platform. Further, the CBOT has significantly expanded access to the exchange via technology and other initiatives designed to facilitate global distribution of CBOT products.”

 

Net income in the first nine months of 2004 also increased, rising 42 percent to $44.7 million from $31.6 million during the same period in 2003. Revenues during the first three quarters rose 5 percent from the same period in 2003.

 

Average daily trading volume in the third quarter of this year was up 18 percent to 2,366,716 contracts from 2,007,363 contracts in the same period of 2003. For the nine months ended September 30, 2004, average daily volume expanded 31 percent to 2,362,710 contracts from 1,804,552 contracts during the first nine months of 2003.

 

In October 2004, the CBOT Board of Directors unanimously approved the return of an assessment in the aggregate amount of $9.3 million that it levied on the CBOT’s membership in January 2004. The purpose of the assessment was to provide the exchange with adequate funds to meet increased financial demands associated with anticipated competitive challenges. At this time, the Board of Directors has determined that the exchange no longer needs the assessed monies and will be returning such amounts to the individuals whom were originally billed. The assessment’s return will be recorded in the fourth quarter of 2004.

 

Additionally, in September 2004, the Circuit Court of Cook County granted final approval to a settlement agreement in the Minority Member lawsuit, ending longstanding litigation over the previously proposed allocation of equity in the CBOT among CBOT member classes. The period for an appeal expired in October 2004, making the Court’s decision final. Costs associated with the settlement of the lawsuit will be recorded in the fourth quarter of 2004.

 


For more information about the CBOT’s products and markets, please visit the exchange website at www.cbot.com.

 

 

While CBOT Holdings, Inc. (CBOT Holdings) has filed with the SEC a Registration Statement on Form S-4, including a preliminary proxy statement and prospectus, relating to the restructuring of the Board of Trade of the City of Chicago, Inc. (CBOT), it has not yet become effective, which means it is not yet final. CBOT members are urged to read the final Registration Statement on Form S-4, including the final proxy statement and prospectus, relating to the restructuring of the CBOT referred to above, when it is finalized and distributed to CBOT members, as well as other documents which CBOT Holdings or the CBOT has filed or will file with the SEC, because they contain or will contain important information for making an informed investment decision. CBOT members may obtain a free copy of the final prospectus, when it becomes available, and other documents filed by CBOT Holdings or the CBOT at the SEC’s web site at www.sec.gov. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any state in which offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

 


     CHICAGO BOARD OF TRADE
    

CONSOLIDATED STATEMENTS OF INCOME

[LOGO of Chicago Board of Trade]

  

For the Nine Months Ended September 30, 2004

    

(unaudited; in thousands)

 

     Quarter Ended
September 30,
    Quarter Ended
June 30,
   Nine Months Ended
September 30,
 
       2004       2003       2004          2004      2003  
    


 


REVENUES

                                      

Exchange Fees

   $ 49,748     $ 82,295     $ 52,604    $ 156,731    $ 211,789  

Clearing Fees

     18,609       —         19,634      54,832      —    

Quotations

     16,119       13,801       16,020      48,118      42,115  

Building

     5,328       4,853       5,363      16,089      14,870  

Services

     3,133       3,600       3,276      9,465      12,546  

Members’ Dues

     —         —         4,657      9,315      —    

Other Operating Revenue

     638       369       542      2,006      1,074  


Total Revenues

     93,575       104,918       102,096      296,556      282,394  


EXPENSES

                                      

Salaries and Benefits

     16,923       15,145       17,982      52,820      47,517  

Depreciation and Amortization

     11,507       7,596       10,958      33,757      22,473  

Clearing Services

     14,080       —         13,872      40,162      —    

General and Administrative Expenses

     5,511       4,237       3,662      14,638      11,383  

Building Operating Costs

     5,899       6,468       5,559      17,813      18,998  

Technology

     8,905       11,729       9,292      26,378      38,725  

Contracted License Fees

     1,575       7,852       1,568      4,586      20,179  

Professional Services

     6,389       8,575       6,053      19,115      20,421  

Programs

     1,902       1,401       3,365      8,053      3,090  

Equity on Loss of OneChicago

     201       247       188      621      786  

Severance and Related Costs

     (31 )     292       58      387      640  

Interest

     1,114       1,075       1,216      3,654      2,972  


Total Expenses

     73,975       64,617       73,773      221,984      187,184  


INCOME FROM OPERATIONS

     19,600       40,301       28,323      74,572      95,210  

PROVISION FOR INCOME TAXES

     7,757       5,077       12,324      30,966      22,491  


INCOME BEFORE LIMITED PARTNERS

                                      

INTEREST IN CERES PARTNERSHIP

     11,843       35,224       15,999      43,606      72,719  

LIMITED PARTNERS INTEREST IN

                                      

INCOME OF CERES PARTNERSHIP

     323       (28,360 )     523      1,100      (41,162 )


NET INCOME

   $ 12,166     $ 6,864     $ 16,522    $ 44,706    $ 31,557  


 

 

BALANCE SHEET HIGHLIGHTS

(unaudited; in thousands)


      
 


September 30,
2004


    
 


December 31,
2003


Unrestricted Cash

   $ 104,525    $ 137,127

Current Assets

   $ 170,212    $ 200,157

Total Assets

   $ 447,640    $ 483,981

Current Liabilities

   $ 81,054    $ 84,535

Long Term Debt

   $ 31,671    $ 50,045

Total Liabilities

   $ 149,887    $ 169,758

Members’ Equity

   $ 296,213    $ 251,283