Cboe Global Markets Reports Record Results for 1st Quarter 2020.

 
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CHICAGO: Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the first quarter of 2020.

"The first quarter 2020 was defined by tremendous market uncertainty fueled by the COVID-19 pandemic. We took swift action to protect the health of our associates and trading floor community, while maintaining orderly markets to serve our customers and the investing public. As we've seen in the past, market participants leveraged the utility of our proprietary products, which neared record trading levels for the quarter, to navigate the market turbulence," said Edward T. Tilly, Cboe Global Markets Chairman, President and Chief Executive Officer.

"As we know, volumes ebb and flow as uncertainty plays out. When markets are less active, we will leverage our customized educational and trading resources to help customers reposition for new permutations of uncertainty likely to result from the re-opening of the economy. Nobody can say with certainty how this situation will evolve. As the path to recovery is unlikely to be linear, we expect investors to continue to deploy - and redeploy - our unique product set to represent their views and meet their hedging needs as the crisis evolves. Above all, I am extremely proud of the way the Cboe team successfully responded to the rapidly changing and adverse market conditions brought about by the crisis, while continuing to advance our strategic growth initiatives. As a result, we are well positioned to continue to successfully navigate this period of market turbulence, and to maintain our focus on delivering increased value to our customers and our shareholders in 2020 and beyond," Mr. Tilly added.

"During the quarter, increased trading activity across our asset classes led to record net revenues. Additionally, our continued focus on expense discipline and operational efficiencies resulted in record earnings and an adjusted EBITDA margin in excess of 74 percent for the quarter," said Brian N. Schell, Cboe Global Markets Executive Vice President, Chief Financial Officer and Treasurer. "During the quarter, we also maintained our ongoing commitment to returning capital to shareholders in a disciplined and consistent manner with $120 million of share repurchases and $40 million of dividends," Mr. Schell added.

*All comparisons are first quarter 2020 compared to the same period in 2019.

(1)A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables.

Consolidated First Quarter Results -Table 1

Table 1 below presents summary selected unaudited condensed consolidated financial information for the company as reported and on an adjusted basis for the three months ended March 31, 2020 and 2019.

Table 1

Consolidated First Quarter Results

1Q20

1Q19

($ in millions except per share)

1Q20

1Q19

Change

Adjusted1

Adjusted1

Change

Total Revenues Less Cost of Revenues

$

358.3

$

280.5

28

%

$

358.3

$

280.5

28

%

Total Operating Expenses

$

131.9

$

134.0

(2)

%

$

98.6

$

94.1

5

%

Operating Income

$

226.4

$

146.5

55

%

$

259.7

$

186.4

39

%

Operating Margin %

63.2

%

52.2

%

11.0

pp

72.5

%

66.5

%

6.0

pp

Net Income Allocated to Common Stockholders

$

157.0

$

94.6

66

%

$

182.3

$

124.5

46

%

Diluted EPS

$

1.42

$

0.85

67

%

$

1.65

$

1.11

...

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