CBOE Holdings, Inc. (CBOE) has reported a 10.84 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $44.94 million, or $0.55 a share in the quarter, compared with $50.40 million, or $0.61 a share for the same period last year. On the other hand, adjusted net income allocated to common stockholders for the quarter stood at $51.49 million, or $0.63 a share compared with $48.92 million or $0.59 a share, a year ago.
Revenue during the quarter grew 4.68 percent to $163.24 million from $155.95 million in the previous year period. Gross margin for the quarter contracted 88 basis points over the previous year period to 87.69 percent. Total expenses were 53.99 percent of quarterly revenues, up from 51.33 percent for the same period last year. That has resulted in a contraction of 266 basis points in operating margin to 46.01 percent.
Operating income for the quarter was $75.10 million, compared with $75.89 million in the previous year period.
However, the adjusted operating income for the quarter stood at $79.82 million compared to $73.90 million in the prior year period. At the same time, adjusted operating margin improved 151 basis points in the quarter to 48.90 percent from 47.39 percent in the last year period.
"The fourth quarter capped off another year of solid financial results for CBOE Holdings, highlighted by record trading in our SPX options and VIX futures. In addition, we are closer to completing our pending acquisition of Bats Global Markets, Inc. (Bats), which we now expect to close by the end of the first quarter, pending the receipt of certain regulatory approvals and the satisfaction or waiver of customary closing conditions. We are preparing for a seamless integration process that will enable us to immediately begin to realize the benefits of bringing together Bats' U.S. and European equities, options, ETF trading and global FX platform with CBOE's wide array of equity and index options, multi-asset volatility products and educational resources," said Edward T. Tilly, CBOE Holdings' chief executive officer.
Operating cash flow declines
CBOE Holdings, Inc. has generated cash of $229.56 million from operating activities during the year, down 6.41 percent or $15.72 million, when compared with the last year.
The company has spent $84.39 million cash to meet investing activities during the year as against cash outgo of $79.42 million in the last year.
The company has spent $150.13 million cash to carry out financing activities during the year as against cash outgo of $211.53 million in the last year period.
Cash and cash equivalents stood at $97.30 million as on Dec. 31, 2016, down 4.85 percent or $4.95 million from $102.25 million on Dec. 31, 2015.
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