NASDAQ Announces Fourth Quarter 2007 Results
NEW YORK, Jan 31, 2008 (PrimeNewswire via COMTEX News Network) -- The Nasdaq Stock Market, Inc. ("NASDAQ(r)") (Nasdaq:NDAQ), today reported fourth quarter 2007 net income of $79.0 million, or $0.52 per diluted share, an increase of $16.0 million from $63.0 million, or $0.43 per diluted share, in the fourth quarter of 2006. Net income for the fourth quarter 2007 declined when compared to $365.0 million, or $2.41 per diluted share, reported in the third quarter 2007. Net income for the full year 2007 increased to $518.4 million, or $3.46 per diluted share, when compared to net income applicable to common stockholders of $127.2 million, or $0.95 per diluted share, for the full year 2006. Included in third quarter and full year 2007 results are pre-tax gains of $431.4 million associated with NASDAQ's sale of its share capital of the London Stock Exchange Group plc, which had the impact of increasing diluted earnings per share by $1.95 for both periods.
Fourth quarter 2007 results include pre-tax gains of $18.2 million related to foreign currency option contracts, as well as pre-tax charges of $1.1 million related to the early extinguishment of debt and $0.6 million in workforce reduction expenses. When excluding these items net income on a non-GAAP basis was $69.1 million, or $0.46 per diluted share. This represents an increase when compared to non-GAAP net income of $32.5 million, or $0.23 per diluted share for the fourth quarter of 2006, and $62.1 million, or $0.42 per diluted share for the third quarter of 2007.
Revenues less liquidity rebates, brokerage, clearance and exchange fees ("net exchange revenues") were $211.6 million in the fourth quarter of 2007, an increase of 15.6% from $183.1 million in the year-ago period, and up $1.6 million from $210.0 million reported in the third quarter of 2007.
"Our fourth quarter results cap off a truly defining year for NASDAQ," commented Bob Greifeld, NASDAQ's President and Chief Executive Officer. "During 2007 we were able to dramatically improve our financial and operational performance, leaving us stronger and better positioned for future success. We solidified our global footprint with the agreement to combine with OMX and invest strategically into the emerging markets of the Middle East. Additionally, we took steps to diversify our business into derivatives, clearing and other new products through the planned acquisitions of both the Philadelphia and Boston Stock Exchanges and through OMX's announced acquisition of NordPool. As we enter 2008, we are even more excited about the opportunities in front of us as we execute our plans for geographic expansion and product diversification."
Recent Highlights
* NASDAQ expanded its leadership position as the largest single
pool of liquidity in which to trade U.S. listed equities,
matching a record high of 29.7% of all volume for the fourth
quarter of 2007. NASDAQ also achieved new market share highs in
the trading of NYSE- and Amex-listed securities, matching 18.8%
and 35.2% of volume, respectively, during the quarter.
* Announced the proposed acquisition of the Philadelphia Stock
Exchange, the third largest options market in the U.S. and the
nation's oldest stock exchange. This transaction significantly
diversifies NASDAQ's product portfolio by providing NASDAQ with
one of the premier options trading platforms in the U.S.
* Received the necessary regulatory and shareholder approvals to
allow NASDAQ to proceed with plans to combine with OMX and invest
in DIFX. NASDAQ expects to complete this transaction in the first
quarter of 2008.
* Expanded the Select Market Maker Program to NYSE-listed companies.
The program is designed to bring NYSE-listed companies and the
NASDAQ market making community together, while providing companies
access to utilize NASDAQ's Market Intelligence Desk(r) (MID) and
proprietary NASDAQ Online(r) (NOL) at no cost. The Select Market
Maker Program is focused on providing issuers with direct access to
market information from market participants.
* In partnership with a group of leading securities firms, NASDAQ
announced its intention to form The PORTAL Alliance, an industry
standard facility designed to serve the market for 144A equity
securities. The PORTAL Alliance will work with third-party service
providers to create an open, industry-standard facility for the
private offering, trading, shareholder tracking and settlement of
unregistered equity securities sold to qualified institutional
buyers ("QIBs").
"NASDAQ's financial performance continued to be strong during the quarter," commented NASDAQ's Chief Financial Officer, David Warren. "Net exchange revenues, which have grown for thirteen consecutive quarters, were up 15.6% over last year's fourth quarter, while operating income increased nearly 50%. Our ability to increase our operating leverage afforded us the flexibility to invest in key growth initiatives, while at the same time delivering exceptional results. We plan to utilize this same operating philosophy as we complete our previously announced transactions with OMX, the Philadelphia Stock Exchange, and the Boston Stock Exchange, to ensure that we continue to achieve all of our strategic and financial goals."
2008 Guidance
NASDAQ has decided to forgo providing guidance as a standalone entity at this time given the transactions that are expected to close during the first half of 2008 and the contributions that each will have on the financial results of the consolidated organization.
Financial Review
Net exchange revenues increased 15.6% in the fourth quarter to $211.6 million, up from $183.1 million in the prior year quarter, and up $1.6 million from $210.0 million reported in the third quarter of 2007.
Market Services
Market Services net exchange revenues increased to $137.9 million, up 18.9% from the prior year quarter, and up 0.9% from the prior quarter.
Three Months Ended % Variance from
---------------------------- -----------------
Dec 31 Sept 30 Dec 31 Prior Prior
2007 2007 2006 Quarter Year
-------- -------- -------- -------- --------
(in millions of
dollars)
NASDAQ Market Center
Execution and trade
reporting revenues $ 526.0 $ 514.2 $ 322.1 2.3 % 63.3 %
Access services
revenues 20.3 19.1 16.5 6.3 % 23.0 %
Tape fee revenue
sharing (6.7) (6.5) (5.7) 3.1 % 17.5 %
-------- -------- --------
Total NASDAQ Market
Center revenues 539.6 526.8 332.9 2.4 % 62.1 %
Cost of revenues
Liquidity rebates (295.1) (291.2) (153.8) 1.3 % 91.9 %
Brokerage, clearance
and exchange fees (157.8) (150.8) (110.4) 4.6 % 42.9 %
-------- -------- --------
Total cost of
revenues (452.9) (442.0) (264.2) 2.5 % 71.4 %
-------- -------- --------
-------- -------- --------
Revenues less
liquidity rebates,
brokerage, clearance
and exchange fees
from NASDAQ
Market Center 86.7 84.8 68.7 2.2 % 26.2 %
NASDAQ Market Services
Subscriptions
Proprietary revenues 24.3 22.8 19.2 6.6 % 26.6 %
Non-proprietary
revenues 32.6 34.7 31.3 (6.1)% 4.2 %
NASDAQ Revenue
Sharing Programs (1.1) (1.4) (2.3) (21.4)% (52.2)%
UTP Plan revenue
sharing (12.2) (12.4) (8.8) (1.6)% 38.6 %
-------- -------- --------
Total NASDAQ Market
Services
Subscriptions
revenues 43.6 43.7 39.4 (0.2)% 10.7 %
Other Market Services
revenues 7.6 8.2 7.9 (7.3)% (3.8)%
-------- -------- --------
Total revenues less
liquidity rebates,
brokerage, clearance
and exchange fees
from NASDAQ Market
Services $ 137.9 $ 136.7 $ 116.0 0.9 % 18.9 %
======== ======== ========
* Increases in NASDAQ Market Center net exchange revenues from the
prior year quarter are primarily due to increases in trade
execution volume for U.S.-listed equities. Total volume matched on
NASDAQ increased to 123.4 billion shares in the fourth quarter of
2007, up 45.9% from 84.6 billion shares in the fourth quarter of
2006. Increases when compared to the third quarter of 2007 are
primarily due to higher traded share volume and increases in
customer demand for Access Services. Included in execution and
trade reporting revenues in the fourth quarter of 2007 are $99.3
million in SEC Section 31 fees, compared with $94.2 million in the
third quarter of 2007 and $73.2 million in the fourth quarter of
2006. Corresponding cost of revenues reflecting the reimbursement
of these fees to the SEC are included in brokerage, clearance and
exchange fees.
* Market Services Subscriptions revenues increased from the prior
year quarter due primarily to increases in subscriber populations
for proprietary products. Somewhat offsetting this increase is
higher UTP Plan revenue sharing due to declines in NASDAQ's total
UTP market share. The slight decrease when compared to the third
quarter of 2007 is due to lower non-proprietary revenues, partially
offset by higher proprietary revenues.
Issuer Services
During the fourth quarter Issuer Services revenues increased 9.9% to $73.6 million from the prior year quarter and increased 0.5% from the prior quarter.
Three Months Ended % Variance from
---------------------------- -----------------
Dec 31 Sept 30 Dec 31 Prior Prior
2007 2007 2006 Quarter Year
-------- -------- -------- -------- --------
(in millions of
dollars)
Corporate Client Group
Annual renewal fees $ 32.2 $ 31.6 $ 27.9 1.9 % 15.4 %
Listing of additional
shares fees 10.4 10.4 9.5 -- 9.5 %
Initial listing fees 5.7 5.6 5.3 1.8 % 7.5 %
Corporate Client
services 13.7 13.9 13.1 (1.4)% 4.6 %
-------- -------- --------
Total Corporate
Client Group
revenues 62.0 61.5 55.8 0.8 % 11.1 %
-------- -------- --------
NASDAQ Financial
Products
Licensing revenues 10.8 10.6 9.5 1.9 % 13.7 %
Other revenues 0.8 1.1 1.7 (27.3)% (52.9)%
-------- -------- --------
Total NASDAQ
Financial Products
revenues 11.6 11.7 11.2 (0.9)% 3.6 %
-------- -------- --------
Total Issuer Services
revenues $ 73.6 $ 73.2 $ 67.0 0.5 % 9.9 %
======== ======== ========
* Increases in Corporate Client Group revenues from the prior year
quarter are driven primarily by revised annual renewal fees
introduced earlier this year. Increases from the prior quarter
are driven by fees generated from new listings.
* NASDAQ Financial Products revenues increased from the prior year
quarter due to an increase in license revenues associated with
NASDAQ-licensed ETFs.
Total Operating Expenses
Total operating expenses declined 4.3% to $110.0 million from $115.0 million in the prior year quarter and declined 12.8% from $126.1 million in the prior quarter. Third quarter 2007 expenses include a charge of $19.5 million for a tax sharing payment for the benefit of a strategic investor and a charge of $5.8 million related to the early extinguishment of debt.
Net interest income
Net interest income was $12.4 million for the fourth quarter of 2007, compared with net interest expense of $18.3 million for the fourth quarter of 2006, representing an increase of $30.7 million. This increase was primarily due to additional interest income on higher cash balances due to the cash proceeds received from the sale of our share capital of the London Stock Exchange plc and lower interest expense on debt due to a lower outstanding balance. In September 2007, NASDAQ used $1.1 billion of the $1.8 billion of proceeds from the sale of our share capital of the London Stock Exchange Group plc to repay in full and terminate outstanding debt obligations.
Earnings Per Share
Fourth quarter earnings per diluted share were $0.52 versus $0.43 per diluted share in the prior year quarter, and $2.41 in the third quarter of 2007. Included in third quarter 2007 results are pre-tax gains associated with NASDAQ's sale of its share capital of the London Stock Exchange Group plc, noted above. NASDAQ's weighted average shares outstanding used to calculate diluted earnings per share were 154.0 million in the fourth quarter of 2007 versus 152.1 million in the year-ago quarter and 152.3 million in the third quarter of 2007.
NASDAQ is the largest U.S. equities exchange. With over 3,100 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks as well as a leading liquidity pool for trading NYSE-listed stocks. For more information about NASDAQ, visit the NASDAQ Web site at www.nasdaq.com or the NASDAQ Newsroom at www.nasdaq.com/newsroom/
Non-GAAP Information
In addition to disclosing results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), NASDAQ also discloses certain non-GAAP results of operations, including total expenses, operating income, net income and diluted earnings per share, that exclude certain charges and gains that are described in the reconciliation table of non-GAAP to GAAP information provided at the end of this release. Management believes that this non-GAAP information provides investors with additional information to assess NASDAQ's operating performance by excluding these costs and gains and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.
The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this communication contains forward-looking statements, which involve a number of risks and uncertainties. NASDAQ cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, projections about our future financial results and statements about the implementation dates and benefits of certain strategic initiatives, including the transactions contemplated by NASDAQ's agreements with Borse Dubai, OMX AB, the Boston Stock Exchange and the Philadelphia Stock Exchange, and other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ's control. These factors include, but are not limited to, NASDAQ's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in NASDAQ's filings with the U.S. Securities Exchange Commission, including its annual report on Form 10-K for the fiscal year ending December 31, 2006 which is available on NASDAQ's website at http://www.nasdaq.com and the SEC's website at www.sec.gov. NASDAQ undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The Nasdaq Stock Market, Inc.
Condensed Consolidated Statements of Income
(in millions, except per share amounts)
Three Months Ended (unaudited) Year Ended
----------------------------- --------------------
Dec 31, Sept 30, Dec 31, Dec 31, Dec 31,
2007 2007 2006 2007 2006
--------- --------- --------- --------- ---------
(unaudited)
Revenues
Market Services $ 590.8 $ 578.7 $ 380.2 $ 2,152.4 $ 1,408.3
Issuer Services 73.6 73.2 67.0 283.9 249.0
Other 0.1 0.1 0.1 0.3 0.5
--------- --------- --------- --------- ---------
Total revenues 664.5 652.0 447.3 2,436.6 1,657.8
Cost of revenues
Liquidity rebates (295.1) (291.2) (153.8) (1,049.8) (644.9)
Brokerage,
clearance and
exchange fees (157.8) (150.8) (110.4) (574.5) (325.5)
--------- --------- --------- --------- ---------
Total cost of
revenues (452.9) (442.0) (264.2) (1,624.3) (970.4)
--------- --------- --------- --------- ---------
Revenues less
liquidity
rebates,
brokerage,
clearance and
exchange fees 211.6 210.0 183.1 812.3 687.4
--------- --------- --------- --------- ---------
Operating Expenses
Compensation and
benefits 54.4 52.0 51.2 200.4 195.7
Marketing and
advertising 7.6 4.1 8.2 20.8 20.5
Depreciation and
amortization 9.6 9.7 10.6 38.9 70.9
Professional and
contract services 8.6 6.4 9.0 32.1 32.0
Computer
operations and
data
communications 5.9 6.6 11.8 28.7 41.5
Provision for bad
debts (0.4) 0.2 0.7 1.9 0.5
Occupancy 8.5 8.2 8.5 34.5 34.1
Regulatory 7.4 7.7 -- 28.9 --
General,
administrative
and other 8.4 31.2 7.0 60.4 44.3
--------- --------- --------- --------- ---------
Total direct
expenses 110.0 126.1 107.0 446.6 439.5
Support costs from
related parties,
net -- -- 8.0 -- 33.8
--------- --------- --------- --------- ---------
Total operating
expenses 110.0 126.1 115.0 446.6 473.3
--------- --------- --------- --------- ---------
Operating income 101.6 83.9 68.1 365.7 214.1
Interest income 14.8 9.5 6.3 37.6 24.6
Interest expense (2.4) (23.4) (24.6) (72.9) (91.1)
Gain on foreign
currency option
contracts 18.2 35.2 48.4 44.0 48.4
Dividend income -- -- 7.0 14.5 16.2
Gain on sale of
strategic
initiative -- 431.4 -- 431.4 --
Strategic
initiative costs -- -- -- (26.5) --
Minority interest -- -- 0.3 0.1 0.9
--------- --------- --------- --------- ---------
Income before
income taxes 132.2 536.6 105.5 793.9 213.1
Income tax
provision 53.2 171.6 42.5 275.5 85.2
--------- --------- --------- --------- ---------
Net income $ 79.0 $ 365.0 $ 63.0 $ 518.4 $ 127.9
========= ========= ========= ========= =========
Net income
applicable to
common
stockholders:
Net income $ 79.0 $ 365.0 $ 63.0 $ 518.4 127.9
Preferred stock:
Dividends
declared -- -- -- -- (0.4)
Accretion of
preferred stock -- -- -- -- (0.3)
--------- --------- --------- --------- ---------
Net income
applicable to
common
stockholders $ 79.0 $ 365.0 $ 63.0 $ 518.4 $ 127.2
========= ========= ========= ========= =========
Basic and diluted
earnings per
share:
Basic $ 0.63 $ 3.23 $ 0.56 $ 4.47 $ 1.22
========= ========= ========= ========= =========
Diluted $ 0.52 $ 2.41 $ 0.43 $ 3.46 $ 0.95
========= ========= ========= ========= =========
Weighted average
common shares
outstanding for
earnings per
share:
Basic 125.8 113.2 112.1 116.1 104.3
Diluted 154.0 152.3 152.1 152.5 144.2
The Nasdaq Stock Market, Inc.
Condensed Consolidated Balance Sheets
(in millions)
Dec 31, Dec 31,
2007 2006
---------- ----------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,325.3 $ 322.0
Available-for-sale investments, at fair value -- 1,628.2
Receivables, net 249.5 233.3
Deferred tax assets 10.8 11.1
Other current assets 96.4 118.0
---------- ----------
Total current assets 1,682.0 2,312.6
Property and equipment, net 64.5 65.3
Non-current deferred tax assets 63.3 97.0
Goodwill 980.7 1,028.7
Intangible assets, net 181.6 199.6
Other assets 7.3 13.3
---------- ----------
Total assets $ 2,979.4 $ 3,716.5
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 115.1 $ 110.6
Section 31 fees payable to SEC 103.6 60.1
Accrued personnel costs 64.6 55.6
Deferred revenue 60.5 56.4
Income tax payable 34.1 44.1
Other accrued liabilities 24.5 28.0
Deferred tax liabilities 8.8 95.0
Current portion of debt obligations -- 10.7
---------- ----------
Total current liabilities 411.2 460.5
Debt obligations 118.4 1,493.0
Non-current deferred tax liabilities 91.8 115.8
Non-current deferred revenue 94.0 90.6
Other liabilities 55.7 99.1
---------- ----------
Total liabilities 771.1 2,259.0
Minority interest -- 0.1
Stockholders' equity
Common stock 1.4 1.3
Preferred stock -- --
Additional paid-in capital 1,189.2 1,046.6
Common stock in treasury, at cost (8.0) (239.7)
Accumulated other comprehensive income (4.7) 136.2
Retained earnings 1,030.4 513.0
---------- ----------
Total stockholders' equity 2,208.3 1,457.4
---------- ----------
Total liabilities, minority interest and
stockholders' equity $ 2,979.4 $ 3,716.5
========== ==========
The Nasdaq Stock Market, Inc.
Reconciliation of GAAP Earnings
(in millions, except per share amounts)
(unaudited)
Three Months Ended
------------------------------------------
Dec 31, Sept 30, June 30, Mar 31,
2007 2007 2007 2007
--------- --------- --------- ---------
GAAP Total Operating
Expenses: $ 110.0 $ 126.1 $ 99.7 $ 110.7
--------------------
Adjustments:
Technology Review -- -- 0.9 0.7
Real Estate Consolidation -- -- -- --
Workforce Reductions 0.6 1.1 1.1 1.4
Extinguishment of Credit
Facility -- 5.8 -- --
Foreign Currency Gain -- -- -- --
Pension Plan and SERP
Freeze -- -- 0.4 (6.5)
Clearing Contract -- -- -- 10.6
Debt Issuance Costs 1.1 -- -- --
Tax Sharing Payment -- 19.5 -- --
--------- --------- --------- ---------
Total Adjustments 1.7 26.4 2.4 6.2
--------- --------- --------- ---------
Non-GAAP Total Expenses $ 108.3 $ 99.7 $ 97.3 $ 104.5
========= ========= ========= =========
GAAP Operating Income: $ 101.6 $ 83.9 $ 99.0 $ 81.4
----------------------
Adjustments:
Technology Review -- -- 0.9 0.7
Real Estate Consolidation -- -- -- --
Workforce Reductions 0.6 1.1 1.1 1.4
Extinguishment of Credit
Facility -- 5.8 -- --
Foreign Currency Gain -- -- -- --
Pension Plan and SERP
Freeze -- -- 0.4 (6.5)
Clearing Contract -- -- -- 10.6
Debt Issuance Costs 1.1 -- -- --
Tax Sharing Payment -- 19.5 -- --
--------- --------- --------- ---------
Total Adjustments 1.7 26.4 2.4 6.2
--------- --------- --------- ---------
Non-GAAP Operating Income $ 103.3 $ 110.3 $ 101.4 $ 87.6
========= ========= ========= =========
GAAP Net Income: $ 79.0 $ 365.0 $ 56.1 $ 18.3
----------------
Adjustments:
Technology Review -- -- 0.5 0.4
Real Estate Consolidation -- -- -- --
Workforce Reductions 0.4 0.7 0.7 0.8
Extinguishment of Credit
Facility -- 3.5 -- --
Foreign Currency Gain -- -- -- --
Pension Plan and SERP
Freeze -- -- 0.2 (3.9)
Clearing Contract -- -- -- 6.4
Debt Issuance Costs 0.7 -- -- --
Dividend Income -- -- (9.4) --
Tax Sharing Payment -- 11.8 -- --
(Gain) Loss on Foreign
Currency Option
Contracts (11.0) (21.3) 1.0 4.7
Strategic Initiative
Costs -- -- 1.0 15.1
Gain on Sale of Strategic
Initiative -- (297.6) -- --
--------- --------- --------- ---------
Total Adjustments (9.9) (302.9) (6.0) 23.5
--------- --------- --------- ---------
Non-GAAP Net Income $ 69.1 $ 62.1 $ 50.1 $ 41.8
========= ========= ========= =========
GAAP Earnings per Common
Share:
------------------------
Diluted Earnings per
Common Share $ 0.52 $ 2.41 $ 0.39 $ 0.14
Adjustments:
Total Adj. from GAAP Net
Income Above: (0.06) (1.99) (0.04) 0.15
--------- --------- --------- ---------
Non-GAAP Diluted Earnings
per Common Share $ 0.46 $ 0.42 $ 0.35 $ 0.29
========= ========= ========= =========
Three Months Ended
------------------------------------------
Dec 31, Sept 30, June 30, Mar 31,
2006 2006 2006 2006
--------- --------- --------- ---------
GAAP Total Operating
Expenses: $ 115.0 $ 103.3 $ 134.8 $ 120.2
--------------------
Adjustments:
Technology Review 3.3 3.4 9.9 11.9
Real Estate Consolidation -- 0.5 5.4 --
Workforce Reductions 1.3 0.9 2.6 1.7
Extinguishment of Credit
Facility -- -- 20.9 --
Foreign Currency Gain -- -- (8.2) --
Pension Plan and SERP
Freeze -- -- -- --
Clearing Contract -- -- -- --
Debt Issuance Costs 1.1 -- -- --
Tax Sharing Payment -- -- -- --
--------- --------- --------- ---------
Total Adjustments 5.7 4.8 30.6 13.6
--------- --------- --------- ---------
Non-GAAP Total Expenses $ 109.3 $ 98.5 $ 104.2 $ 106.6
========= ========= ========= =========
GAAP Operating Income: $ 68.1 $ 67.9 $ 36.3 $ 41.8
----------------------
Adjustments:
Technology Review 3.3 3.4 9.9 11.9
Real Estate Consolidation -- 0.5 5.4 --
Workforce Reductions 1.3 0.9 2.6 1.7
Extinguishment of Credit
Facility -- -- 20.9 --
Foreign Currency Gain -- -- (8.2) --
Pension Plan and SERP
Freeze -- -- -- --
Clearing Contract -- -- -- --
Debt Issuance Costs 1.1 -- -- --
Tax Sharing Payment -- -- -- --
--------- --------- --------- ---------
Total Adjustments 5.7 4.8 30.6 13.6
--------- --------- --------- ---------
Non-GAAP Operating Income $ 73.8 $ 72.7 $ 66.9 $ 55.4
========= ========= ========= =========
GAAP Net Income: $ 63.0 $ 30.2 $ 16.6 $ 18.0
----------------
Adjustments:
Technology Review 2.0 2.1 6.0 7.2
Real Estate Consolidation -- 0.3 3.3 --
Workforce Reductions 0.8 0.5 1.6 1.0
Extinguishment of Credit
Facility -- -- 12.7 --
Foreign Currency Gain -- -- (5.0) --
Pension Plan and SERP
Freeze -- -- -- --
Clearing Contract -- -- -- --
Debt Issuance Costs 0.7 -- -- --
Dividend Income (4.6) -- (6.0) --
Tax Sharing Payment -- -- -- --
(Gain) Loss on Foreign
Currency Option
Contracts (29.4) -- -- --
Strategic Initiative
Costs -- -- -- --
Gain on Sale of Strategic
Initiative -- -- -- --
--------- --------- --------- ---------
Total Adjustments (30.5) 2.9 12.6 8.2
--------- --------- --------- ---------
Non-GAAP Net Income $ 32.5 $ 33.1 $ 29.2 $ 26.2
========= ========= ========= =========
GAAP Earnings per Common
Share:
------------------------
Diluted Earnings per
Common Share $ 0.43 $ 0.22 $ 0.13 $ 0.16
Adjustments:
Total Adj. from GAAP Net
Income Above: (0.20) 0.02 0.09 0.06
--------- --------- --------- ---------
Non-GAAP Diluted Earnings
per Common Share $ 0.23 $ 0.24 $ 0.22 $ 0.22
========= ========= ========= =========
NDAQF
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SOURCE: The Nasdaq Stock Market, Inc.
NASDAQ
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