CBOE Holdings, Inc. (CBOE) has reported a 39.69 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $40.72 million, or $0.50 a share in the quarter, compared with $67.52 million, or $0.81 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $47.23 million, or $0.58 a share compared with $62.95 million or $0.76 a share, a year ago.
Revenue during the quarter dropped 16.48 percent to $156.21 million from $187.04 million in the previous year period. Gross margin for the quarter contracted 74 basis points over the previous year period to 87.58 percent. Total expenses were 57.97 percent of quarterly revenues, up from 45.94 percent for the same period last year. That has resulted in a contraction of 1203 basis points in operating margin to 42.03 percent.
Operating income for the quarter was $65.65 million, compared with $101.11 million in the previous year period.
However, the adjusted operating income for the quarter stood at $74.80 million compared to $101.11 million in the prior year period. At the same time, adjusted operating margin contracted 618 basis points in the quarter to 47.88 percent from 54.06 percent in the last year period.
"CBOE made significant progress throughout the third quarter to advance our growth initiatives, including the announcement of our planned acquisition of Bats Global Markets. We are excited about CBOE's and Bats' future as a combined company and look forward to working together to efficiently maximize synergies and revenue opportunities. We believe this combination will enhance our financial strength, accelerate our strategic growth initiatives and provide new areas of growth to deliver greater value for CBOE shareholders," said Edward T. Tilly, CBOE Holdings' chief executive officer.
Operating cash flow declines
CBOE Holdings, Inc. has generated cash of $174.13 million from operating activities during the nine month period, down 10.31 percent or $20.01 million, when compared with the last year period.
The company has spent $77.35 million cash to meet investing activities during the nine month period as against cash outgo of $62.64 million in the last year period.
The company has spent $126.28 million cash to carry out financing activities during the nine month period as against cash outgo of $157.75 million in the last year period.
Cash and cash equivalents stood at $72.76 million as on Sep. 30, 2016, down 40.20 percent or $48.92 million from $121.68 million on Sep. 30, 2015.
Working capital declines
CBOE Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $125.46 million as at Sep. 30, 2016, down 12.90 percent or $18.58 million from $144.04 million on Sep. 30, 2015. Current ratio was at 2.55 as on Sep. 30, 2016, down from 2.83 on Sep. 30, 2015.
Days sales outstanding went up to 63 days for the quarter compared with 44 days for the same period last year.
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