Press Release: Cboe Global Markets Reports 2020 Fourth Quarter and Full Year Results
Cboe Global Markets Reports 2020 Fourth Quarter and Full Year Results
Fourth Quarter and Full Year Highlights*
- Diluted EPS of $0.81 for the quarter and $4.27 for the year, Up 28 percent for the year
- Adjusted diluted EPS(1) of $1.21 for the quarter and $5.27 for the year, Up 11 percent for the year
- Net revenue of $307 million for the quarter and $1.3 billion for the year, Up 10 percent for the year
- Returned $520 million to shareholders through share repurchases and dividends for the year
- For 2021, the company is expecting net revenue contribution from recent acquisitions to be in a range of 4 to 6 percentage points. The company also targets mid-term organic net revenue growth in a range of 4 to 6 percentage points(2)
- For 2021, adjusted operating expenses expected to be in the range of $531 to $539 million(2)
- Board of Directors authorizes up to an additional $200 million for share repurchase program
CHICAGO, Feb. 5, 2021
CHICAGO, Feb. 5, 2021 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the 2020 fourth quarter and full year.
"I'm pleased to report that Cboe posted solid fourth quarter and strong full year 2020 results, including 10 percent net revenue growth and 11 percent adjusted EPS growth for the year, despite an unprecedented macro environment. We continued to execute on our ongoing strategy to leverage product innovation and superior technology, expand our customer base and diversify our business mix with recurring revenue," said Edward T. Tilly, Cboe Global Markets Chairman, President and Chief Executive Officer. "We plan to continue to advance our strategy while leveraging our recent acquisitions to accelerate further growth. We are targeting mid-term organic net revenue growth of 4 to 6 percentage points and believe we can drive additional organic growth longer-term through our ongoing investment in attractive market opportunities. I am excited to build on the progress made by our team in 2020 to capitalize on our strategic opportunities in 2021 and beyond and deliver increased value to our customers and shareholders."
"We delivered strong financial results in 2020, underscoring our ability to deliver improved earnings and cash flow generation in various market conditions. Our 2020 results enabled us to return $520 million of capital to shareholders, a 69 percent increase compared to 2019 and the highest amount ever, demonstrating one of our long-standing objectives of returning value to shareholders through dividends and share repurchases. To this end, we are pleased that our Board of Directors today increased our share repurchase authorization by $200 million," said Brian N. Schell, Cboe Global Markets Executive Vice President, Chief Financial Officer and Treasurer. "We plan to continue investing in future growth, while adhering to the prudent allocation of capital and disciplined expense management that have long been hallmarks of Cboe."
*All comparisons are the fourth quarter or the year ended December 31, 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.
(2) Specific quantifications of the amounts that would be required to reconcile the company's organic growth guidance, adjusted operating expenses guidance and the effective tax rate on adjusted earnings guidance are not available. The company believes that there is uncertainty and unpredictability with respect to certain of its GAAP measures, primarily related to acquisition-related expenses that would be required to reconcile to GAAP operating expenses and GAAP effective tax rate, which preclude the company from providing accurate guidance on certain forward-looking GAAP to non-GAAP reconciliations. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company's adjusted operating expenses and the effective tax rate on adjusted earnings would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above.
Consolidated Fourth 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 December 31, 2020 and 2019.
Business Segment Information:
Discussion of Results by Business Segment:
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February 05, 2021 07:30 ET (12:30 GMT)