CBOE Holdings, Inc. Reports Record First Quarter Financial Results For 2013 First Quarter Financial Highlights -- Record First Quarter Results -- Operating Revenues Increase 18 Percent to $142.7 Million -- GAAP Net Income Allocated to Common Stockholders Increases 27 Percent to $41.8 Million; Diluted EPS of $0.48 -- Adjusted Net Income Allocated to Common Stockholders Up 33 Percent to $43.9 Million(1); Adjusted Diluted EPS of $0.50(1) -- GAAP Operating Margin Expands by 140 Basis Points to 48.7 Percent; Adjusted Operating Margin Up 340 Basis Points to 50.9 Percent(1) PR Newswire CHICAGO, May 3, 2013 CHICAGO, May3, 2013 /PRNewswire/ --CBOE Holdings, Inc. (NASDAQ: CBOE) today reported first quarter 2013 net income allocated to common stockholders of $41.8 million, or $0.48 per diluted share, compared with $32.9 million, or $0.37 per diluted share in the first quarter of 2012. On an adjusted basis, net income allocated to common stockholders was $43.9 million, or $0.50 per share, compared with $33.0 million, or $0.37 per diluted share, in the same period last year. Operating revenues of $142.7 million for the first quarter increased 18 percent compared with $121.4 million in the first quarter of 2012. (Logo: http://photos.prnewswire.com/prnh/20121022/MM97794LOGO-a) "Our record first quarter results were driven by continued strong growth in our proprietary products. Trading volume in our VIX Index options and futures continued to reach new records, while trading in our S&P 500 options complex, led by the tremendous growth in our SPX Weeklys, also increased significantly," said William J. Brodsky, CBOE Holdings Chairman and CEO. Brodsky added, "As we announced last December, later this month Ed Tilly will assume the role of Chief Executive Officer, Ed Provost will become President and Chief Operating Officer, and I will continue to lead the Board in my new role as Executive Chairman. I am confident that under the leadership of Ed Tilly and Ed Provost, CBOE will continue to serve our customers through innovation and execution, while achieving our growth strategy and delivering long-term value to stockholders." "CBOE Holdings is off to a good start this year, as solid execution combined with continued strong growth in our proprietary products delivered improved operating margins and excellent financial results. For the quarter, our adjusted diluted EPS of $0.50 per share matched our highest ever and was 35 percent higher than last year, on an 18 percent increase in revenue," stated Alan J. Dean, CBOE Holdings Executive Vice President and Chief Financial Officer. "We generated strong cashflow from operations and ended the quarter with $210 million in cash and no debt," Dean added. (1) A full reconciliation of our non-GAAP results to our GAAP results for the 2013 and 2012 reporting periods is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. Key Statistics and Financial Highlights The table below highlights CBOE Holdings' operating results on a GAAP basis and an adjusted basis for the comparative quarters ended March31, 2013 and 2012. Financial results presented on an adjusted basis provide supplemental information to facilitate period-over-period comparisons by adjusting for certain items that management believes are not indicative of the company's core operating performance. (in millions, except per share and revenue per 1Q 2013 1Q 2012 Y/Y Change contract) Key Statistics: Total Trading Days 60 62 Average Daily Volume (options and futures) 4.37 4.88 (11)% Total Trading Volume (options and futures) 262.0 302.7 (13)% Average Revenue Per Contract $ 0.378 $ 0.280 35% GAAP Financial Highlights: Total Operating Revenues $ 142.7 $ 121.4 18% Total Operating Expenses 73.3 64.0 15% Operating Income 69.4 57.4 21% Operating Margin % 48.7% 47.3% 140 bps Net Income $ 42.4 $ 33.4 27% Net Income Allocated to Common Stockholders $ 41.8 $ 32.9 27% Diluted EPS $ 0.48 $ 0.37 30% Weighted Average Shares Outstanding 87,272 88,146 (1)% Adjusted Financial Highlights (1) Total Operating Expenses $ 70.1 $ 63.8 10% Operating Income 72.6 57.6 26% Operating Margin % 50.9% 47.5% 340 bps Net Income $ 44.5 $ 33.5 33% Net Income Allocated to Common Stockholders $ 43.9 $ 33.0 33% Diluted EPS $ 0.50 $ 0.37 35% (1) A full reconciliation of our non-GAAP results to our GAAP results for the 2013 and 2012 reporting periods is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. Revenues Operating revenues were $142.7 million in the first quarter of 2013, up $21.3 million, or 18 percent, from $121.4 million in the first quarter of 2012. The increase primarily reflects higher revenue of $14.3 million in transaction fees, $5.0 million in regulatory fees, $1.7 million in exchange services and other fees, and $1.5 million in other revenue, offset somewhat by a decrease of $0.9 million in market data fees. Transaction fees increased 17 percent for the quarter due to a 35 percent increase in the average revenue per contract (RPC) compared with the first quarter of 2012, offset somewhat by a 13 percent decline in trading volume. RPC increased to $0.378 compared with $0.280 in the first quarter of 2012. Trading volume for the first quarter was 262.0 million contracts, or 4.37 million contracts per day, compared with volume of 302.7 million contracts, or 4.88 million contracts per day, in last year's first quarter. The increase in RPC primarily resulted from a shift in the mix of trading volume, with contracts carrying the highest rate per contract, index options and futures contracts, accounting for 37.9 percent of trading volume during the quarter compared with 25.4 percent in the first quarter of 2012. The average revenue per contract represents total transaction fee revenue divided by total reported trading volume for Chicago Board Options Exchange (CBOE), C2 Options Exchange (C2) and CBOE Futures Exchange (CFE). Adjusted Operating Expenses Adjusted operating expenses were $70.1 million for the quarter, up $6.3 million, or 10 percent, compared with $63.8 million in the first quarter of 2012. Adjusted operating expenses exclude accelerated stock-based compensation of $3.2 million and $0.2 million for the first quarter of 2013 and 2012, respectively. The company's core operating expenses, which include total operating expenses less volume-based expenses, depreciation and amortization, accelerated stock-based compensation expense and unusual or one-time expenses, were $47.6 million for the first quarter of 2013, up $6.0 million, or 14 percent, compared with last year's first quarter. The increase primarily represents higher expenses for outside services and employee costs. Outside services were up primarily due to higher legal fees. The higher employee costs mainly reflect increases in incentive compensation, stock-based compensation and salaries. Volume-based expenses, which include royalty fees and trading volume incentives, were $14.2 million in the first quarter of 2013, representing an increase of $0.4 million, or 3 percent, compared with the same period last year. This increase reflects higher royalty fees of $2.0 million, offset somewhat by a decrease in trading volume incentives of $1.6 million. The higher royalty fees are directly related to the growth in trading volume in licensed index products and, to a lesser extent, an increase in royalty rates resulting from the previously announced licensing agreement extension. The decline in trading volume incentives primarily resulted from lower trading volume in multiply-listed options and modifications to the incentive program criteria. Adjusted Operating Margin The company's adjusted operating margin for the first quarter of 2013 increased 340 basis points to 50.9 percent compared with 47.5 percent for the same quarter last year, representing the Company's second highest adjusted operating margin ever. Effective Tax Rate The company reported an effective tax rate of 38.3 percent for the quarter versus 41.3 percent in last year's first quarter. The decrease in the effective rate for the first quarter of 2013 compared to 2012 is the result of the recognition of discrete items and the benefit of a lower apportionment by Illinois. First Quarter 2013 Operational Highlights and Recent Developments oFor a fourth consecutive quarter, CFE and VIX futures experienced record-setting quarterly trading volume. oOn May 1, 2013, the company reported that average daily volume (ADV) for total options in April 2013 was 4.48 million contracts, a 4 percent increase from March 2013 ADV of 4.33 million contracts and a 1 percent decrease from April 2012 ADV of 4.54 million contracts. In addition, CFE reported ADV of 184,983 contracts in April 2013, up 119 percent compared with 84,631 contractsper day during April 2012 and a 15 percent increase from 161,444 contracts per day in March 2013. oOn April 8, CBOE launched its new "CBOE Options Hub" (www.cboeoptionshub.com), a comprehensive Website designed to be the "hub" of CBOE's industry-leading social media program and the definitive online source for up-to-the-minute news and views from the options community. oOn March 18, CBOE and C2 launched trading in "mini-options" that are one-tenth the size of standard options on five popular stocks/exchange traded funds - Apple (AAPL), Amazon (AMZN), Google (GOOG), the SPDR Gold Trust ETF (GLD), and the SPDR S&P 500 ETF Trust (SPY). oOn March 14, in light of a number of rulings by the court in CBOE's favor, International Securities Exchange (ISE) conceded to an adverse judgment in its suit against CBOE for alleged infringement of ISE's patent relating to an "automated exchange." ISE has filed its notice of appeal with the Federal Circuit. oOn March 13, CBOE and S&P Dow Jones Indices announced that they amended their license agreement, extending CBOE's exclusive rights to use the S&P 500 and the S&P 100 to create exchange-traded standardized options on those indexes and on other derivative indexes published by S&P Dow Jones Indices. The exclusive license for the S&P 500 extends through 2032, with non-exclusive rights through 2033. oOn March 8, Russell Indexes, CBOE Holdings and NYSE Euronext announced that Russell Index options will be offered on a "semi-exclusive" basis with both groups' options exchanges. oIn early March, CBOE held its 29th annual Risk Management Conference in Carlsbad, California, which was attended by approximately 300 investment professionals. oOn January 14, CBOE affiliate, Market Data Express, launched the CBOE Customized Option Pricing Service (COPS). The new data service, which employs the market-making expertise of CBOE's liquidity-providing community, offers subscribers end-of-day indicative valuations for "customized" options such as FLexible EXchange options and certain over-the-counter options. 2013 Fiscal Year Financial Guidance The company reaffirmed the following 2013 financial guidance provided in its February 8, 2013 earnings press release: oCore operating expenses are expected to be in the range of $189.0 million to $194.0 million. Continuing stock-based compensation expense included in core expenses is expected to be approximately $18.0 million for the full year. oDepreciation and amortization expense is expected to be in the range of $37.0 million to $39.0 million. oCapital expenditures are expected to be in the range of $35.0 million to $40.0 million. oAdjusted effective tax rate for the full-year 2013 is expected to be in the range of 39.5 to 40.0 percent. Return of Capital to Stockholders As announced on May 1, 2013, CBOE Holdings' Board of Directors declared a first-quarter dividend of $0.15 per share, payable June 21, 2013, to stockholders of record on May 31, 2013. During the first quarter of 2013, the company did not repurchase any shares of its common stock. At March31, 2013, the company had approximately $103.3 million of availability remaining under its existing share repurchase authorizations. Earnings Conference Call Executives of CBOE Holdings will host a conference call to review its first quarter financial results today, May3, 2013, at 8:30 a.m. ET/7:30 a.m. CT. The conference call and any accompanying slides will be publicly available via live webcast from the Investor Relations section of the company's website at www.cboe.com under Events & Presentations. Participants may also listen via telephone by dialing (877) 372-0876 from the United States or Canada, or (253) 237-1167 for international callers. Telephone participants should place calls 10 minutes prior to the start of the call. The webcast will be archived on the company's website for replay. A telephone replay of the earnings call also will be available from approximately 11:00 a.m. CT, May 3, through 11:00 p.m. CT, May 10, 2013, by calling (855) 859-2056 within the U.S. and Canada, or (404) 537-3406 for international callers, using replay code 25993283. About CBOE Holdings CBOE Holdings, Inc. (NASDAQ: CBOE) is the holding company for Chicago Board Options Exchange (CBOE), CBOE Futures Exchange (CFE) and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and volatility trading through product innovation, trading technology and investor education. CBOE Holdings offers equity, index and ETP options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE Holdings is home to the world-renowned Options Institute and www.cboe.com, the go-to place for options and volatility trading resources. CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the OCC. Forward-Looking Statements This press release may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those statements that reflect our expectations, assumptions or projections about the future and involve a number of risks and uncertainties. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause actual results to differ materially from that expressed or implied by the forward-looking statements, including: the loss of our right to exclusively list certain index option products; increasing price competition in our industry; compliance with legal and regulatory obligations; our ability to operate our business, monitor and maintain our systems or program them so that they operate correctly, including in response to increases in trading volume and order transaction traffic; decreases in the amount of trading volumes or a shift in the mix of products traded on our exchanges; legislative or regulatory changes; increasing competition by foreign and domestic entities; economic, political and market conditions; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to maintain access fee revenues; our ability to protect our systems and communication networks from security risks, including cyber-attacks; our ability to attract and retain skilled management and other personnel; our ability to maintain our growth effectively; our dependence on third party service providers; and the ability of our compliance and risk management methods to effectively monitor and manage our risks. More detailed information about factors that may affect our performance may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2012 and other filings made from time to time with the SEC. The condensed consolidated statements of income, balance sheets and statements of cash flows are unaudited and subject to reclassification. CBOE-F Trademarks: CBOE^®, Chicago Board Options Exchange^®, CFE^®, FLEX^®, FLexible EXchange^®, LEAPS^®, ^ CBOE Volatility Index^® ^ and VIX^® ^ are registered trademarks and BuyWrite^SM, BXM^SM, CBOE Futures Exchange^SM, COPS^SM, Execute Success^SM, SPX^SM and The Options Institute^SM are service marks of Chicago Board Options Exchange, Incorporated (CBOE). C2^SM and C2 Options Exchange^SM are service marks of C2 Options Exchange, Incorporated (C2). Standard & Poor's^®, S&P^®, S&P 100^®, and S&P 500^® are registered trademarks of Standard & Poor's Financial Services LLC and have been licensed for use by CBOE, C2 and CFE. All other trademarks and service marks are the property of their respective owners. CBOE Holdings, Inc. Selected Quarterly Operating Statistics Average Daily Volume by Product (in thousands) 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 PRODUCT: Equities 1,604 1,617 1,964 2,007 2,320 Indexes 1,501 1,294 1,150 1,252 1,174 Exchange-traded products 1,107 1,091 1,124 1,451 1,321 Total Options Average Daily Volume 4,212 4,002 4,238 4,710 4,815 Futures 154 123 99 93 67 Total Average Daily Volume 4,366 4,125 4,337 4,803 4,882 Mix of Trading Volume by Product 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 PRODUCT: Equities 36.7% 39.2% 45.3% 41.8% 47.5% Indexes 34.4% 31.4% 26.5% 26.1% 24.0% Exchange-traded products 25.4% 26.4% 25.9% 30.2% 27.1% Futures 3.5% 3.0% 2.3% 1.9% 1.4% Total 100.0% 100.0% 100.0% 100.0% 100.0% Average Revenue Per Contract by Product 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 Trading Days 60 62 63 63 62 PRODUCT: Equities $0.140 $0.134 $0.118 $0.123 $0.110 Indexes 0.671 0.670 0.682 0.677 0.658 Exchange-traded products 0.155 0.186 0.177 0.180 0.171 Total Options Average Revenue Per 0.333 0.322 0.287 0.288 0.261 Contract Futures 1.618 1.442 1.606 1.607 1.697 Total Average Revenue Per Contract $0.378 $0.355 $0.317 $0.314 $0.280 Transaction Fees by Product (in thousands) 1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 PRODUCT: Equities $ 13,509 $ 13,472 $ 14,645 $ 15,617 $ 15,894 Indexes 60,379 53,764 49,385 53,383 47,907 Exchange-traded products 10,296 12,552 12,561 16,429 14,036 Total Options $ 84,184 $ 79,788 $ 76,591 $ 85,429 $ 77,837 Transaction Fees Futures 14,961 11,017 10,030 9,456 6,998 Total Transaction Fees $ 99,145 $ 90,805 $ 86,621 $ 94,885 $ 84,835 Non-GAAP Information In addition to disclosing results determined in accordance with GAAP, CBOE Holdings has disclosed certain non-GAAP measures of operating performance. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. The non-GAAP measures provided in this press release include core operating expenses, adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted net income allocated to common stockholders and adjusted diluted earnings per share. Management believes that the non-GAAP financial measures presented in this press release, including adjusted net income and core operating expenses, provide useful and comparative information to assess trends in our core operations and a means to evaluate period-to-period comparisons. Non-GAAP financial measures disclosed by management, including adjusted diluted EPS, are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. The table below shows core operating expenses, which is the company's operating expenses after excluding (i) volume-based expenses, (ii) depreciation and amortization expense, (iii) accelerated stock-based compensation expense and (iv) other unusual or one-time expenses. Three Months Ended March 31, (in thousands) 2013 2012 Total Operating Expenses $ 73,275 $ 63,977 Less: Depreciation and amortization 8,282 8,320 Accelerated stock-based compensation expense 3,180 194 Volume-based expenses: Royalty fees 13,169 11,191 Trading volume incentives 1,013 2,649 Core Operating Expenses (non-GAAP): $ 47,631 $ 41,623 Less: Continuing stock-based compensation 3,559 2,745 expense Core Operating Expenses Excluding Continuing $ 44,072 $ 38,878 Stock-Based Compensation (non-GAAP) Detail of Core Operating Expenses (non-GAAP) Employee costs $ 27,657 $ 25,096 Data processing 4,516 4,899 Outside services 11,035 7,170 Travel and promotional expenses 2,064 2,167 Facilities costs 1,253 1,303 Other expenses 1,106 988 Total $ 47,631 $ 41,623 The table below shows the reconciliation of each financial measure from GAAP to non-GAAP. The non-GAAP financial measures exclude the impact of those items detailed in the footnotes below and are referred to as adjusted financial measures. (in thousands, Three months ended March 31, except per Three months ended March 31, 2013 2012 share amounts) Items Items Impacting Results Impacting Results After After Reported Operating Other Considering Reported Operating Considering (GAAP) Expenses^1 Income/(Expense)^2 Items (GAAP) Expenses^3 Items (non-GAAP) (non-GAAP) Total Operating $ 142,705 $ 142,705 $ 121,392 $ 121,392 Revenues Total Operating 73,275 (3,180) 70,095 63,977 (194) 63,783 Expenses Operating 69,430 3,180 72,610 57,415 194 57,609 Income Operating Margin 48.7% 47.3% 50.9% 47.5% Total Other Income (721) 245 (453) /(Expense) (476) (453) Income Before 68,709 3,180 245 72,134 56,962 194 57,156 Income Taxes Income Tax 26,336 1,219 92 27,647 23,545 80 23,625 Provision Effective Income Tax 38.3% 41.3% Rate 38.3% 41.3% Net Income $ 42,373 $ 1,961 $ 153 $ 44,487 $ 33,417 $ 114 $ 33,531 Net Income Allocated to (584) (27) (554) (2) Participating (2) (613) (556) Securities Net Income Allocated to $ 41,789 $ 1,934 $ 151 $ 43,874 $ 32,863 $ 112 $ 32,975 Common Stockholders Diluted Net Income per Share $ 0.48 $ 0.02 $ — $ 0.50 $ 0.37 $ — $ 0.37 Allocated to Common Stockholders NOTES: Amounts may not foot due to rounding. In the first quarter of 2013, the company accelerated the recognition of 1) stock-based compensation expense to recognize the full value of stock grants awarded to certain executives due to provisions contained in their employment arrangements. 2) In the first quarter of 2013, the company recorded an impairment for an investment in affiliate. In the first quarter of 2012, the company accelerated the recognition of 3) stock-based compensation expense to recognize the remaining fair value of stock grants awarded to two board members who left the Board. CBOE Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) Three months ended March 31, 2013 and 2012 Three Months Ended March 31, (in thousands, except per share amounts) 2013 2012 Operating Revenues: Transaction fees $ 99,145 $ 84,835 Access fees 15,654 15,980 Exchange services and other fees 9,088 7,449 Market data fees 5,537 6,373 Regulatory fees 9,700 4,696 Other revenue 3,581 2,059 Total Operating Revenues 142,705 121,392 Operating Expenses: Employee costs 30,837 25,290 Depreciation and amortization 8,282 8,320 Data processing 4,516 4,899 Outside services 11,035 7,170 Royalty fees 13,169 11,191 Trading volume incentives 1,013 2,649 Travel and promotional expenses 2,064 2,167 Facilities costs 1,253 1,303 Other expenses 1,106 988 Total Operating Expenses 73,275 63,977 Operating Income 69,430 57,415 Other Income / (Expense): Investment income 4 23 Net loss from investment in affiliates (725) (476) Total Other Expense (721) (453) Income Before Income Taxes 68,709 56,962 Income Tax Provision 26,336 23,545 Net Income 42,373 33,417 Net Income allocated to participating (584) (554) securities Net Income allocated to common stockholders $ 41,789 $ 32,863 Net income per share allocated to common stockholders Basic $ 0.48 $ 0.37 Diluted 0.48 0.37 Weighted average shares used in computing income per share: Basic 87,272 88,146 Diluted 87,272 88,146 CBOE Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) March 31, 2013 and December 31, 2012 (in thousands, except share amounts) March31, 2013 December31, 2012 Assets Current Assets: Cash and cash equivalents $ 210,486 $ 135,597 Accounts receivable—net allowances of $353 51,136 45,666 and $340 Marketing fee receivable 6,251 5,216 Income taxes receivable 481 11,717 Other prepaid expenses 6,335 4,146 Other current assets 735 567 Total Current Assets 275,424 202,909 Investments in Affiliates 14,221 14,270 Land 4,914 4,914 Property and Equipment: Construction in progress 89 89 Building 62,596 62,442 Furniture and equipment 266,120 263,155 Less accumulated depreciation and (256,528) (251,642) amortization Total Property and Equipment—Net 72,277 74,044 Other Assets: Software development work in progress 5,204 4,370 Data processing software and other assets (less accumulated amortization of $137,093 37,585 38,351 and $133,862) Total Other Assets—Net 42,789 42,721 Total $ 409,625 $ 338,858 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable and accrued expenses $ 43,168 $ 45,148 Marketing fee payable 6,842 5,808 Deferred revenue 23,780 1,084 Post-retirement medical benefits 90 110 Income taxes payable 11,872 — Total Current Liabilities 85,752 52,150 Long-term Liabilities: Post-retirement medical benefits 2,174 1,794 Income taxes liability 22,708 20,857 Other long-term liabilities 3,924 3,946 Deferred income taxes 20,341 20,989 Total Long-term Liabilities 49,147 47,586 Total Liabilities 134,899 99,736 Commitments and Contingencies Stockholders' Equity Preferred stock, $0.01 par value: 20,000,000shares authorized, no shares — — issued and outstanding at March31, 2013 or December31, 2012 Unrestricted common stock, $0.01 par value: 325,000,000shares authorized; 91,270,509 issued and 87,271,829outstanding at March 913 913 31, 2013; 91,270,274 issued and 87,271,683 outstanding at December31, 2012 Additional paid-in-capital 74,551 67,812 Retained Earnings 304,567 275,491 Treasury Stock, at cost: 3,998,680 shares at (104,204) (104,201) March 31, 2013 Accumulated other comprehensive loss (1,101) (893) Total Stockholders' Equity 274,726 239,122 Total $ 409,625 $ 338,858 CBOE Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Three months ended March 31, 2013 and 2012 Three Months Ended March 31, (in thousands) 2013 2012 Cash Flows from Operating Activities: Net Income $ 42,373 $ 33,417 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 8,282 8,320 Other amortization 29 22 Provision for deferred income taxes (515) (1,152) Stock-based compensation 6,739 2,939 Loss on disposition of property 1 — Loss on investment in affiliates 480 476 Impairment of investment in affiliates and other 245 — assets Net change in assets and liabilities 37,663 19,321 Net Cash Flows provided by Operating Activities 95,297 63,343 Cash Flows from Investing Activities: Capital and other asset expenditures (6,440) (7,869) Investment in affiliates (676) (394) Proceeds from disposition of property 8 — Net Cash Flows used in Investing Activities (7,108) (8,263) Cash Flows from Financing Activities: Payment of quarterly dividends (13,297) (10,745) Purchase of unrestricted stock from employees (3) (1) Purchase of unrestricted stock under repurchase — (30,641) program Net Cash Flows used in Financing Activities (13,300) (41,387) Net Increase in Cash and Cash Equivalents 74,889 13,693 Cash and Cash Equivalents at Beginning of Period $ 135,597 $ 134,936 Cash and Cash Equivalents at End of Period $ 210,486 $ 148,629 Supplemental Disclosure of Cash Flow Information Cash paid for income taxes $ 1,910 $ 67 Non-cash activities: Unpaid liability to acquire equipment and $ 907 $ 2,453 software SOURCE CBOE Holdings, Inc. Contact: CBOE Media, Gail Osten, +1-312-786-7123, firstname.lastname@example.org, Gary Compton, +1-312-786-7612, email@example.com, Analyst, Debbie Koopman, +1-312-786-7136, firstname.lastname@example.org
CBOE Holdings, Inc. Reports Record First Quarter Financial Results For 2013
Press spacebar to pause and continue. Press esc to stop.