Intercontinental Exchange Reports Strong Second Quarter 2017 GAAP Diluted EPS of $0.70 on Record Revenues of $1.2 billion, +4% y/y; Record Adjusted Diluted EPS of $0.75

ATLANTA & NEW YORK--()--Intercontinental Exchange (NYSE:ICE), a leading operator of global network of exchanges and clearing houses and provider of global data and listing services, today reported financial results for the second quarter of 2017. For the quarter ended June 30, 2017, consolidated net income attributable to ICE was $418 million on $1.2 billion of consolidated revenues less transaction-based expenses. Second quarter GAAP diluted earnings per share (EPS) were $0.70, up 17% year-over-year. On an adjusted basis, net income was $448 million in the second quarter, and diluted EPS were $0.75, up 9% year-over-year. Please refer to the reconciliation of non-GAAP financial measures included in the press release for more information on our adjusted net income and adjusted diluted EPS.

Our record second quarter performance resulted in our seventeenth consecutive quarter of revenue growth," said ICE Chairman and CEO Jeffrey C. Sprecher. "This was driven by strength in both our data and listings and our trading and clearing segments, demonstrating the ability of our integrated business model to capture opportunities across global markets. We are focused on expanding our comprehensive trading, data and risk management solutions for our customers and creating strong value for shareholders."

Scott A. Hill, ICE CFO, added: “In the second quarter, we built on our track record of consistent revenue growth, expense discipline and margin expansion. This performance generated strong cash flows which allowed us to return over $700 million to shareholders in the first half of 2017 and has us on track to return around $1.4 billion this year. We are well positioned to achieve our growth objectives in 2017 and are investing to strengthen the foundation for continued growth in the future."

Second Quarter 2017 GAAP Results

Second quarter 2017 consolidated revenues, less transaction-based expenses, were $1.2 billion. Trading and clearing segment revenues, less transaction-based expenses, were $550 million in the second quarter 2017, up 4% compared to the prior second quarter. Data and listings segment revenues were $628 million in the second quarter of 2017, up 4% compared to the prior second quarter, including data services revenues of $521 million, up 5% and listings revenues of $107 million, up 2% over the prior second quarter.

Consolidated operating expenses were $569 million for the second quarter of 2017. Consolidated operating income for the second quarter was $609 million and operating margin was 52%. The effective tax rate for the second quarter was 25%.

Unrestricted cash was $398 million and outstanding debt was $5.9 billion as of June 30, 2017.

Financial Guidance

  • ICE's third quarter 2017 GAAP operating expenses are expected to be in a range of $545 million to $555 million and adjusted operating expenses(1) are expected to be in a range of $480 million to $490 million.
  • ICE's interest expense is expected to be $47 million in the third quarter and $49 million in the fourth quarter, including the effect of refinancing ICE's October bond maturity.
  • ICE's adjusted effective tax rate is expected to be approximately 31% for the third quarter.
  • ICE's diluted share count for the third quarter is expected to be in the range of 590 million to 595 million weighted average shares outstanding.

(1) The 2017 Non-GAAP adjusted operating expense excludes $67 million in amortization of acquisition-related intangibles for the third quarter of 2017. The GAAP operating expense forecast does not reflect an estimate of acquisition-related transaction and integration costs for the third quarter of 2017.

Earnings Conference Call Information

ICE will hold a conference call today, August 3, at 8:30 a.m. ET to review its second quarter 2017 financial results. A live audio webcast of the earnings call will be available on the company's website at in the investor relations section. Participants may also listen via telephone by dialing 888-317-6003 from the United States, 866-284-3684 from Canada or 412-317-6061 from outside of the United States and Canada. Telephone participants are required to provide the participant entry number 4399343 and are recommended to call 10 minutes prior to the start of the call. The call will be archived on the company's website for replay.

The conference call for the third quarter 2017 earnings has been scheduled for November 2, 2017 at 8:30 a.m. ET. Please refer to the Investor Relations website at for additional information.

Historical futures, options and cash ADV, rate per contract, open interest data and CDS cleared information can be found at:

Consolidated Statements of Income

(In millions, except per share amounts)


  Six Months Ended
June 30,
  Three Months Ended
June 30,
Revenues: 2017   2016   2017   2016
Transaction and clearing, net $   1,615     $   1,789     $   817     $   860  
Data services 1,041 974 521 497
Listings 213 208 107 105
Other revenues 94       87       49       42    
Total revenues 2,963 3,058 1,494 1,504
Transaction-based expenses:
Section 31 fees 183 196 92 98
Cash liquidity payments, routing and clearing 438       579       224       277    
Total revenues, less transaction-based expenses 2,342       2,283       1,178       1,129    
Operating expenses:
Compensation and benefits 479 472 234 236
Professional services 64 69 32 37
Acquisition-related transaction and integration costs 23 47 9 20
Technology and communication 195 184 97 92
Rent and occupancy 35 35 17 17
Selling, general and administrative 79 52 38 30
Depreciation and amortization 276       289       142       146    
Total operating expenses 1,151       1,148       569       578    
Operating income 1,191       1,135       609       551    
Other income (expense):
Interest expense (90 ) (90 ) (45 ) (44 )
Other income, net 187       11       1       9    
Other income (expense), net 97       (79   )   (44   )   (35   )
Income before income tax expense 1,288 1,056 565 516
Income tax expense 352       316       139       153    
Net income $   936       $   740       $   426       $   363    
Net income attributable to non-controlling interest (16   )   (14   )   (8   )   (6   )
Net income attributable to Intercontinental Exchange, Inc. $   920       $   726       $   418       $   357    
Earnings per share attributable to Intercontinental Exchange, Inc. common shareholders:
Basic $   1.55       $   1.22       $   0.71       $   0.60    
Diluted $   1.54       $   1.21       $   0.70       $   0.60    
Weighted average common shares outstanding:
Basic 593       595       591       595    
Diluted 597       598       595       599    
Dividend per share $   0.40       $   0.34       $   0.20       $   0.17    

Consolidated Balance Sheets

(In millions)


  As of   As of
June 30, 2017   December 31, 2016
Current assets:
Cash and cash equivalents $   398   $   407  
Short-term investments 17 23
Short-term restricted cash and investments 769 679
Customer accounts receivable, net 912 777
Margin deposits and guaranty funds 53,585 55,150
Prepaid expenses and other current assets 767       97    
Total current assets 56,448       57,133    
Property and equipment, net 1,161       1,129    
Other non-current assets:
Goodwill 12,001 12,291
Other intangible assets, net 10,103 10,420
Long-term restricted cash and investments 264 264
Long-term investments 432
Other non-current assets 347       334    
Total other non-current assets 22,715       23,741    
Total assets $   80,324       $   82,003    
Liabilities and Equity:
Current liabilities:
Accounts payable and accrued liabilities $ 415 $ 388
Section 31 fees payable 181 131
Accrued salaries and benefits 140 230
Deferred revenue 338 114
Short-term debt 2,023 2,493
Margin deposits and guaranty funds 53,585 55,150
Other current liabilities 137       111    
Total current liabilities 56,819       58,617    
Non-current liabilities:
Non-current deferred tax liability, net 2,915 2,958
Long-term debt 3,874 3,871
Accrued employee benefits 407 430
Other non-current liabilities 376       337    
Total non-current liabilities 7,572       7,596    
Total liabilities 64,391       66,213    
Redeemable non-controlling interest       36    
Intercontinental Exchange, Inc. shareholders’ equity:
Common stock 6 6
Treasury stock, at cost (590 ) (40 )
Additional paid-in capital 11,381 11,306
Retained earnings 5,468 4,789
Accumulated other comprehensive loss (367   )   (344   )
Total Intercontinental Exchange, Inc. shareholders’ equity 15,898 15,717
Non-controlling interest in consolidated subsidiaries 35       37    
Total equity 15,933       15,754    
Total liabilities and equity $   80,324       $   82,003    

Non-GAAP Financial Measures and Reconciliation

We use non-GAAP measures internally to evaluate our performance and in making financial and operational decisions. When viewed in conjunction with our GAAP results and the accompanying reconciliation, we believe that our presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparison of results because the items described below as adjustments to GAAP are not reflective of our core business performance. These financial measures are not in accordance with, or an alternative to, GAAP financial measures and may be different from non-GAAP measures used by other companies. We use these adjusted results because we believe they more clearly highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our core operating performance. We strongly recommend that investors review the GAAP financial measures and additional non-GAAP information included in our Quarterly Report on Form 10-Q, including our consolidated financial statements and the notes thereto.

Adjusted net income attributable to ICE common shareholders and adjusted diluted earnings per share for the periods presented below are calculated by adding or subtracting the adjustments described below, which are not reflective of our cash operations and core business performance, and their related income tax effect and other tax adjustments (in millions, except for per share amounts):


Three Months
Ended June 30,


Three Months
Ended June 30,

Net income attributable to ICE $   418   $   357  
Add: Interactive Data and NYSE transaction and integration costs 8 7
Add: Amortization of acquisition-related intangibles 67 77
Add: Net loss on divestiture of NYSE Governance Services 6
Add: Foreign exchange loss and transaction expenses on sale of Cetip 9
(Less): Income tax effect for the above items (60   )   (30   )
Adjusted net income attributable to ICE $   448       $   411    
Diluted earnings per share attributable to ICE $   0.70       $   0.60    
Adjusted diluted earnings per share attributable to ICE $   0.75       $   0.69    

About Intercontinental Exchange

Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company that operates a leading network of regulated exchanges and clearing houses, and is a provider of global data and listing services. ICE’s futures exchanges and clearing houses serve global commodity and financial markets, providing risk management and capital efficiency. The New York Stock Exchange is the world leader in capital raising and equities trading.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in Intercontinental Exchange, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC on February 7, 2017. We caution you not to place undue reliance on these forward looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all factors that may affect our business and prospects. Further, management cannot assess the impact of each factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

SOURCE: Intercontinental Exchange



Investor & Media Contact:
Kelly Loeffler, SVP Investor Relations & Corp. Communications
+1 770 857 4726


Investor & Media Contact:
Kelly Loeffler, SVP Investor Relations & Corp. Communications
+1 770 857 4726