Intercontinental Exchange Reports Fourth Quarter 2016 GAAP Diluted EPS of $0.59 on Revenues of $1.1 Billion

Intercontinental Exchange Reports Fourth Quarter 2016 GAAP Diluted EPS of $0.59 on Revenues of $1.1 Billion

Intercontinental Exchange Reports Fourth Quarter 2016 GAAP Diluted EPS of $0.59 on Revenues of $1.1 Billion

The FINANCIAL -- Intercontinental Exchange on February 7 reported financial results for the fourth quarter and full year of 2016.

For the quarter ended December 31, 2016, consolidated net income attributable to ICE was $352 million on $1.1 billion of consolidated revenues less transaction-based expenses. Fourth quarter GAAP diluted earnings per share (EPS) were $0.59. On an adjusted basis, net income was $428 million in the fourth quarter, and diluted EPS were $0.71.

For the full year of 2016 consolidated net income attributable to ICE was $1.4 billion on $4.5 billion of consolidated revenues less transaction-based expenses. Full year 2016 GAAP diluted EPS were $2.37. On an adjusted basis, net income was $1.7 billion for the full year of 2016, and diluted EPS were $2.78.

"Amidst a volatile and dynamic environment, we delivered our eleventh consecutive year of record revenue," said ICE Chairman and CEO Jeffrey C. Sprecher. "Despite the challenges of market volatility driven by geopolitics, we achieved our objectives by working closely with our customers across trading, risk management and data to again deliver strong revenue growth, margin expansion and double-digit profit increases. We are excited about collaborating with our customers in 2017 given the range of ways we are working to serve their evolving trading, listing, data and risk management needs.”

Scott A. Hill, ICE CFO, added: “In the first year of our integration of Interactive Data, we surpassed our synergy target and met our ambitious revenue growth target while expanding margins. We also generated record operating cash flow of $2.1 billion in 2016, which enabled us to reduce our debt by approximately $1 billion, announce our third double digit increase in our dividend, and increase our share repurchases for 2017. Our strategy, execution, and disciplined capital allocation has led to significant value creation and future growth opportunities."

Fourth Quarter 2016 GAAP Results

Fourth quarter 2016 consolidated revenues, less transaction-based expenses, were $1.1 billion. Trading and clearing segment revenues, less transaction-based expenses, were $518 million in the fourth quarter 2016, flat compared to the prior fourth quarter. Data and listings segment revenues were $620 million in the fourth quarter of 2016, including data services revenues of $515 million and listings revenues of $105 million.

Consolidated operating expenses were $580 million for the fourth quarter of 2016, including $15 million in Interactive Data transaction and integration expenses. Consolidated operating income for the fourth quarter was $558 million and operating margin was 49%. The effective tax rate for the fourth quarter was 32%.

Full Year 2016 GAAP Results

Full year 2016 consolidated revenues, less transaction-based expenses, were $4.5 billion. Trading and clearing segment revenues, less transaction-based expenses, were $2.1 billion, in 2016, up 2% compared to 2015. Data and listings segment revenues were $2.4 billion in 2016, including data services revenues of $2.0 billion and listings revenues of $419 million.

Consolidated operating expenses were $2.3 billion for 2016, including $46 million in NYSE and Interactive Data transaction and integration expenses, $33 million related to the impairment of an intangible asset for Creditex customer relationships, and $4 million related to employee severance costs resulting from the closure of the Creditex U.K. brokerage operation. Consolidated operating income for 2016 was $2.2 billion and operating margin was 48%. The effective tax rate for 2016 was 29%, according to Intercontinental Exchange.

Consolidated cash flows from operations were $2.1 billion for the full year of 2016, up 64% compared to the prior year. Operational capital expenditures in 2016 were $177 million and capitalized software development costs totaled $115 million.

Unrestricted cash was $407 million and outstanding debt was $6.4 billion as of December 31, 2016.