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CBOE Holdings – CBOE – Seventh consecutive quarter of adjusted earnings per share growth,

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CBOE Holdings, Inc. (NASDAQ: CBOE) reported first quarter 2012 net income allocated to common stockholders of $32.9 million, or $0.37 per diluted share, compared with $32.1 million, or $0.36 per diluted share in the first quarter of 2011.  Operating revenues for the first quarter were $121.4 million, down 2 percent compared with $124.0 million in the first quarter of 2011.

First Quarter GAAP Financial Highlights

  • CBOE Operating Revenues of $121.4 Million, Down 2 Percent
  • CBOE Net Income Allocated to Common Stockholders was $32.9 Million; Diluted EPS Up 3 Percent to $0.37
  • Operating Margin Increases 90 Basis Points to 47.3 Percent
  • CBOE Average Daily Trading Volume of 4.88 Million Contracts, Down 4 Percent Versus 1Q11 and Up 14 Percent Versus 4Q11
  • CBOE Total Market Share Increased to 29.9 Percent for the Quarter, Up 3.2 Percentage Points from Fourth Quarter 2011

“We are pleased to report our company’s seventh consecutive quarter of adjusted earnings per share growth, despite lower trading volume industry-wide.  CBOE Holdings also posted significant gains in market share, as a result of very positive customer response to our new Volume Incentive Program (VIP),” said William J. Brodsky, CBOE Holdings Chairman and Chief Executive Officer.  ”In addition, we continue to see particularly strong growth in our VIX options and futures, which we believe speaks to our ongoing commitment to expanding our suite of volatility products and to broadening our customer base through marketing and education.  Our financial strength allows us to continue to deliver value to stockholders while investing in innovations that will position our company for long-term success.”


“We reported solid financial results for the quarter by continuing to manage our costs while investing in future growth,”  said Alan J. Dean, CBOE Holdings Executive Vice President and Chief Financial Officer.  “Our consistent earnings growth and financial stability provide a strong foundation for our business.  During the quarter, we purchased $31 million of CBOE shares, bringing our total purchases under our $100 million share repurchase program to $78 million.  We maintain a debt-free balance sheet, and our strong operations generate significant free cash flow, which we will continue to deploy with a careful balance between reinvesting in the business and distributing excess cash to stockholders through share repurchases and dividends,” Dean added.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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