NDAQ » Topics » NASDAQ OMX ANNOUNCES FOURTH QUARTER 2008 RESULTS

This excerpt taken from the NDAQ 8-K filed Feb 26, 2009.

NASDAQ OMX ANNOUNCES FOURTH QUARTER 2008 RESULTS

–OPERATING INCOME INCREASES 77.2% TO $180.0 MILLION ($101.6 MILLION IN Q407)–

New York, N.Y.—The NASDAQ OMX Group, Inc. (“NASDAQ OMX®”; NASDAQ: NDAQ) today reported net income of $36.8 million, or $0.17 per diluted share, for the fourth quarter of 2008 and $319.9 million, or $1.58 per diluted share for the full year of 2008.

For comparison purposes net income and dilutive earnings per share for the fourth quarter of 2008 are presented on a non-GAAP basis and exclude losses from foreign currency contracts, asset impairment charges and merger expenses. Net income and dilutive earnings per share for earlier periods are presented on a pro forma non-GAAP basis that reflects the financial results of NASDAQ, OMX, and the Philadelphia Stock Exchange as if they were a combined company for the periods presented and excludes merger expenses, gains (losses) from foreign currency contracts and certain other non-recurring items.

For the fourth quarter of 2008, net income on a non-GAAP basis was $112.1 million, or $0.53 per diluted share, an increase of 35.2% when compared to pro forma non-GAAP net income of $82.9 million, or $0.38 per diluted share, for the fourth quarter of 2007, and an increase of 2.2% when compared to pro forma non-GAAP net income of $109.7 million, or $0.52 per diluted share, for the third quarter of 2008.

Items excluded from fourth quarter 2008 non-GAAP results are:

   

A $47.4 million non-cash pre-tax loss primarily related to a forward contract to hedge the Norwegian Krone cash payment for the acquisition of Nord Pool’s clearing, international derivatives and consulting subsidiaries;

   

A $34.9 million non-cash pre-tax other-than-temporary impairment charge on a long-term available for sale investment security in Oslo Bors VPS Holding ASA; and

   

$9.5 million in pre-tax merger-related expenses.

Total revenues were $1.0 billion in the fourth quarter of 2008. Revenues less liquidity rebates, brokerage, clearance and exchange fees (“net exchange revenues”) were $402.6 million for the fourth quarter of 2008, a decrease of $7.0 million, or 1.7%, from pro forma fourth quarter 2007 results, and a decrease of $8.0 million, or 1.9%, from pro forma third quarter 2008 results.

“2008 was a very eventful year for NASDAQ OMX, one in which we completed five acquisitions and announced four strategic investments,” commented Bob Greifeld, NASDAQ OMX’s Chief Executive Officer. “In the process we’ve transformed our company and created an organization with operations spanning the globe. The steps taken to leverage our core technology, integrate our acquisitions, and diversify our product offering have yielded immediate benefits as operating income reached new highs.”

This excerpt taken from the NDAQ 8-K filed Nov 6, 2008.

NASDAQ OMX ANNOUNCES THIRD QUARTER 2008 RESULTS

-OPERATING INCOME INCREASES 97.0% TO $165.1 MILLION ($83.8 MILLION IN Q307)–

-PHILADELPHIA STOCK EXCHANGE TRANSACTION ACCRETES IN Q308–

-TIMETABLE TO ACHIEVE $100 MILLION OMX EXPENSE SYNERGIES ACCELERATED AGAIN-

New York, N.Y.—The NASDAQ OMX Group, Inc. (“NASDAQ OMX®”; NASDAQ: NDAQ) today reported third quarter 2008 net income of $60.1 million, or $0.28 per diluted share, compared with net income of $365.0 million, or $2.41 per diluted share, in the third quarter of 2007. Included in third quarter 2007 results was a pre-tax gain 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 comparison purposes pro forma non-GAAP results are being presented that reflect the financial results of both NASDAQ OMX and the Philadelphia Stock Exchange as if we were a combined company for the periods presented and exclude certain non-operational items. Items excluded from third quarter 2008 results are:

 

   

A $50.7 million non-cash pre-tax loss primarily related to a forward contract to hedge the Norwegian Krone cash payment for the acquisition of Nord Pool’s clearing, international derivatives and consulting subsidiaries;

 

   

$8.5 million in pre-tax merger related expenses;

 

   

A pre-tax non-cash impairment charge of $7.3 million primarily related to intangible assets of our insurance agency business; and

 

   

$4.2 million in pre-tax expenses associated with workforce reductions and other reserves.

For the third quarter of 2008, net income on a pro forma non-GAAP basis was $109.7 million, or $0.52 per diluted share, an increase of 27.7% when compared to pro forma non-GAAP net income of $85.9 million, or $0.42 per diluted share, for the third quarter of 2007, and an increase of 7.2% when compared to pro forma non-GAAP net income of $102.3 million, or $0.48 per diluted share, for the second quarter of 2008.

The remaining results are presented on a pro forma basis unless otherwise noted.

Total revenues were $1.0 billion in the third quarter of 2008. Revenues less liquidity rebates, brokerage, clearance and exchange fees (“net exchange revenues”) were $410.6 million for the third quarter of 2008, an increase of $26.4 million, or 6.9%, from the third quarter of 2007, and a decrease of $9.7 million, or 2.3%, from the second quarter of 2008.

“During the quarter we continued with our ongoing mission to leverage massive scale against extreme efficiencies, building a global business to be successful in all economic environments,” commented Bob Greifeld, Chief Executive Officer of NASDAQ OMX. “All of the steps taken, including the acquisitions of the Philadelphia Stock Exchange and the Boston Stock Exchange, as well as the launch of NASDAQ OMX Europe, are designed to further diversify our product offerings while utilizing the same efficient platform. In many ways, NASDAQ OMX has never been better positioned to deliver value to our customers and long term returns for our shareholders as we redefine the role of the global exchange company.”


EXCERPTS ON THIS PAGE:

8-K
Feb 26, 2009
8-K
Nov 6, 2008

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