The FINANCIAL -- NYSE Euronext reported net income of $110 million, or
$0.43 per diluted share, for the fourth quarter of 2011, compared to
net income of $135 million, or $0.51 per diluted share, for the fourth
quarter of 2010.
According to NYSE Euronext, results for the fourth quarter of 2011 and 2010 include $46 million and $18 million, respectively, of pre-tax merger expenses and exit costs. Fourth quarter 2011 results also include a net pre-tax charge of $25 million related to the settlement of a tax matter with French authorities related to BlueNext, a joint venture with Caisse des Depots.
The $46 million in merger expenses and exit costs in the fourth quarter of 2011 included $38 million related to the proposed merger with Deutsche Boerse AG. Excluding merger expenses, exit costs, the BlueNext tax settlement and discrete tax items, net income in the fourth quarter of 2011 was $130 million, or $0.50 per diluted share, compared to $120 million, or $0.46 per diluted share, in the fourth quarter of 2010.
For the full-year 2011, on the same basis, net income was $653 million, or $2.48 per diluted share compared to net income of $548 million, or $2.09 per diluted share for full-year 2010.Total revenues, less transaction-based expenses, which include Section 31 fees, liquidity payments and routing and clearing fees, were $628 million in the fourth quarter of 2011, up $15 million, or 2% compared to the fourth quarter of 2010 and included a $2 million negative impact from foreign currency fluctuations.
The $15 million increase in net revenue compared to the fourth quarter of 2010 was primarily driven by higher technology services revenue which increased $13 million, or 16% year-over-year. For the full-year 2011, net revenue was $2,672 million, an increase of $161 million, or 6% compared to $2,511 million for full-year 2010 and included a $56 million positive impact from foreign currency fluctuations. The increase in net revenue compared to full-year 2010 was driven primarily by higher technology services revenue, strong trading volumes in European cash and U.S. derivatives and a 22% increase in the average net revenue capture for U.S. cash equities.
Other operating expenses, excluding merger expenses, exit costs and the BlueNext tax settlement, were $416 million in the fourth quarter of 2011, down $9 million, or 2% compared to the fourth quarter of 2010. Excluding the impact of acquisitions, new initiatives and a $1 million positive impact attributable to foreign currency fluctuations, other operating expenses were down $16 million, or 4%, compared to the fourth quarter of 2010. For the full-year 2011, other operating expenses were $1,666 million compared to $1,678 million in 2010. Excluding the impact of acquisitions, new initiatives and a $27 million negative impact attributable to foreign currency fluctuations, other operating expenses were down $70 million, or 4% compared to full-year 2010.
Operating income, excluding merger expenses, exit costs and the BlueNext tax settlement, was $212 million, up $24 million, or 13% compared to the fourth quarter of 2010 and included a $1 million negative impact attributable to foreign currency fluctuations. For the full-year 2011, operating income on the same basis was $1,006 million, an increase of $173 million, or 21% compared to $833 million for full-year 2010 and included a $29 million positive impact attributable to foreign currency fluctuations.
Adjusted EBITDA, excluding merger expenses, exit costs and the BlueNext tax settlement was $280 million, up $12 million, or 4% compared to the fourth quarter of 2010. Adjusted EBITDA margin was 45% in the fourth quarter of 2011, compared to 44% in the fourth quarter of 2010. For the full-year 2011, adjusted EBITDA on the same basis was $1,286 million, compared to $1,114 million for full-year 2010 representing an increase of $172 million, or 15%. Adjusted EBITDA margin for the full-year 2011 was 48% compared to 44% in 2010.
Non-operating income for the fourth quarter of 2011 and 2010 includes the impact of New York Portfolio Clearing and NYSE Liffe U.S. . The profit attributable to the non-controlling interest related to NYSE Amex Options was $9 million in the fourth quarter of 2011, based on our partners’ 47.5% stake in the business, compared to $11 million in the third quarter of 2011.
The effective tax rate for the fourth quarter and full-year 2011, excluding merger expenses, exit costs, the BlueNext tax settlement and discrete tax items, was approximately 25.75% compared to approximately 26.50% for the fourth quarter and full-year 2010.
The weighted average diluted shares outstanding in the fourth quarter of 2011 was 262 million shares, in-line with fourth quarter of 2010. During the fourth quarter of 2011, a total of 3.7 million shares were repurchased at an average price of $26.96 per share.
At December 31, 2011, total debt of $2.1 billion was $0.3 billion below December 31, 2010 levels. Cash, cash equivalents and short term financial investments were $0.4 billion and net debt was $1.7 billion at the end of the fourth quarter of 2011. The ratio of debt-to-EBITDA in the fourth quarter of 2011 was 1.6 times, the lowest level since the establishment of NYSE Euronext in April 2007.
Total capital expenditures in the fourth quarter of 2011 were $54 million, compared to $61 million in the fourth quarter of 2010. For the full-year 2011, capital expenditures were $170 million compared to $305 million in 2010, a decrease of 44%.
Headcount as of December 31, 2011 was 3,077, up slightly from 3,074 at September 30, 2011 and up 4% from December 31, 2010 levels. Excluding increases from acquisitions, headcount was flat year-over-year.
The Board of Directors declared a cash dividend of $0.30 per share for the first quarter of 2012. The first quarter 2012 dividend is payable on March 30, 2012 to shareholders of record as of the close of business on March 15, 2012. The anticipated ex-date will be March 13, 2012.
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