Intercontinental Exchange Reports Fourth Quarter & Full Year 2021

16th consecutive year of record revenues

ATLANTA & NEW YORK--()--

 

  • 2021 net revenues of $7.1 billion, +18% y/y
  • 2021 GAAP diluted EPS of $7.18, +90% y/y
  • 2021 adj. diluted EPS of $5.15, +17% y/y
  • Record 2021 operating income of $3.4 billion, +14% y/y; Record adj. operating income of $4.2 billion, +18% y/y
  • 2021 operating margin of 48%; adj. operating margin of 58%
  • Record annual operating cash flow of $3.1 billion, +8% y/y; Record free cash flow (FCF) of over $2.8 billion, +17% y/y
  • Announces first quarter 2022 dividend of $0.38/share; an increase of 15% y/y

 

Jeffrey C. Sprecher,
ICE Chairman & Chief Executive Officer, said,
"We are pleased to report our 16th consecutive year of record revenues and another year of double-digit earnings per share growth. These results are a testament to the remarkable contributions of my colleagues at ICE, the deep and expanding relationship we share with our customers, and the diversity of our business model, which enables us to drive growth through a variety of macroeconomic environments. We begin 2022 better positioned than ever and we are focused on supporting the growth of our customers and connecting them to opportunity through our unique data services, leading technology and network expertise."

Intercontinental Exchange (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today reported financial results for the fourth quarter and full year of 2021. For the quarter ended December 31, 2021, consolidated net income attributable to ICE was $1.5 billion on $1.8 billion of consolidated revenues less transaction-based expenses. Fourth quarter GAAP diluted earnings per share (EPS) were $2.70. Adjusted net income attributable to ICE was $760 million in the fourth quarter and adjusted diluted EPS were $1.34.

For the full year of 2021 consolidated net income attributable to ICE was $4.1 billion on $7.1 billion of consolidated revenues less transaction-based expenses. Full year 2021 GAAP diluted EPS were $7.18, up 90% year-over-year. On an adjusted basis, net income attributable to ICE for the year was $2.9 billion and adjusted diluted EPS were $5.15, up 17% year-over-year.

Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS and free cash flow.

Warren Gardiner, ICE Chief Financial Officer, added: "In 2021 we generated record revenues, record operating income and record operating cash flows. We grew revenues across the asset classes in which we operate, generating double-digit growth in our recurring revenues. As we enter 2022, we expect the consistency of our growth and the compounding nature of both our revenues and cash flows to continue to create value as we invest in the many secular growth opportunities that exist across our business while also returning capital to our shareholders."

Fourth Quarter and Full Year 2021 Business Highlights

$ (in millions)

Net Revenue

Op Margin

Adj Op Margin

 

Net Revenue

Op Margin

Adj Op Margin

 

Full Year 2021

 

4Q21

Exchanges

$3,856

65%

69%

 

$1,014

65%

71%

Fixed Income and Data Services

$1,883

28%

38%

 

$480

28%

38%

Mortgage Technology

$1,407

28%

57%

 

$346

25%

55%

Consolidated

$7,146

48%

58%

 

$1,840

48%

59%

Fourth quarter consolidated net revenues were $1.8 billion, up 10% year-over-year, including exchange net revenues of $1.0 billion, fixed income and data services revenues of $480 million and ICE Mortgage Technology revenues of $346 million. Consolidated operating expenses were $960 million for the fourth quarter of 2021. On an adjusted basis, consolidated operating expenses were $749 million. Consolidated operating income for the fourth quarter was $880 million and the operating margin was 48%. On an adjusted basis, consolidated operating income for the fourth quarter was $1.1 billion and the adjusted operating margin was 59%.

Full year 2021 consolidated net revenues were $7.1 billion, up 18% year-over-year, including exchange net revenues of $3.9 billion, fixed income and data services revenues of $1.9 billion and ICE Mortgage Technology revenues of $1.4 billion. Consolidated operating expenses were $3.7 billion for 2021. On an adjusted basis, consolidated operating expenses were $3.0 billion. Consolidated operating income for the year was $3.4 billion and the operating margin was 48%. On an adjusted basis, consolidated operating income for the year was $4.2 billion and the adjusted operating margin was 58%.

Exchanges Segment Results

Fourth quarter exchange net revenues were $1.0 billion, up 17% year-over-year. Exchange operating expenses were $356 million and on an adjusted basis, were $292 million in the fourth quarter. Segment operating income for the fourth quarter was $658 million and the operating margin was 65%. On an adjusted basis, operating income was $722 million and the adjusted operating margin was 71%.

$ (in millions)

4Q21

4Q20

% Chg

Revenue, net:

 

 

 

Energy

$336

$262

28%

Ags and Metals

51

48

7%

Financials(1)

113

82

37%

Cash Equities and Equity Options

89

89

2%

OTC and Other(2)

87

77

13%

Data and Connectivity Services

215

201

7%

Listings

123

112

10%

Segment Revenue

$1,014

$871

17%

(1) Financials include interest rates and other financial futures and options.

(2) OTC & other primarily includes physical energy, interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, technology development fees, exchange member fees, and agriculture grading and certification fees.

Full year exchange net revenues were $3.9 billion, up 6% year-over-year. Exchange operating expenses were $1.3 billion and on an adjusted basis, were $1.2 billion for the full year. Segment operating income for 2021 was $2.5 billion and the operating margin was 65%. On an adjusted basis, operating income was $2.7 billion and the adjusted operating margin was 69%.

$ (in millions)

FY21

FY20

% Chg

Revenue, net:

 

 

 

Energy

$1,236

$1,120

10%

Ags and Metals

228

245

(7)%

Financials(1)

394

357

10%

Cash Equities and Equity Options

355

377

(6)%

OTC and Other(2)

326

296

10%

Data and Connectivity Services

838

790

6%

Listings

479

446

7%

Segment Revenue

$3,856

$3,631

6%

(1) Financials include interest rates and other financial futures and options.

(2) OTC & other primarily includes physical energy, interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, technology development fees, exchange member fees, and agriculture grading and certification fees.

Fixed Income and Data Services Segment Results

Fourth quarter fixed income and data services revenues were $480 million, up 7% year-over-year. Fixed income and data services operating expenses were $344 million and adjusted operating expenses were $300 million in the fourth quarter. Segment operating income for the fourth quarter was $136 million and the operating margin was 28%. On an adjusted basis, operating income was $180 million and the adjusted operating margin was 38%.

$ (in millions)

4Q21

4Q20

% Chg

Const Curr(1)

Revenue:

 

 

 

 

Fixed Income Execution

$13

$14

(12)%

(12)%

CDS Clearing

48

42

14%

14%

Fixed Income Data and Analytics

278

262

6%

6%

Other Data and Network Services

141

132

7%

7%

Segment Revenue

$480

$450

7%

7%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 4Q20 1.3207 and 1.1920 respectively.

Full year 2021 fixed income and data services revenues were $1.9 billion, up 4% year-over-year. Fixed income and data services operating expenses were $1.4 billion and on an adjusted basis, were $1.2 billion for the year. Segment operating income for the full year was $529 million and the operating margin was 28%. On an adjusted basis, operating income was $709 million and the adjusted operating margin was 38%.

$ (in millions)

FY21

FY20

% Chg

Const Curr(1)

Revenue:

 

 

 

 

Fixed Income Execution

$52

$70

(25)%

(25)%

CDS Clearing

192

208

(8)%

(9)%

Fixed Income Data and Analytics

1,082

1,018

6%

6%

Other Data and Network Services

557

514

8%

7%

Segment Revenue

$1,883

$1,810

4%

3%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2020 1.2832 and 1.1412 respectively.

Mortgage Technology Segment Results

Fourth quarter mortgage technology revenues were $346 million. Mortgage technology operating expenses were $260 million and adjusted operating expenses were $157 million in the fourth quarter. Segment operating income for the fourth quarter was $86 million and the operating margin was 25%. On an adjusted basis, operating income was $189 million and the adjusted operating margin was 55%.

$ (in millions)

4Q21

4Q20

% Chg

Revenue:

 

 

 

Origination Technology

$231

$249

(7)%

Network and Closing Solutions

83

73

15%

Data and Analytics

18

17

6%

Registrations and Other

14

11

23%

Segment Revenue

$346

$350

(1)%

Full year mortgage technology revenues were $1.4 billion. Mortgage technology operating expenses were $1.0 billion and adjusted operating expenses were $602 million in 2021. Segment operating income for the full year was $397 million and the operating margin was 28%. On an adjusted basis, operating income was $805 million and the adjusted operating margin was 57%.

$ (in millions)

FY21

FY20

% Chg

Revenue:

 

 

 

Origination Technology

$971

$316

208%

Network and Closing Solutions

310

238

30%

Data and Analytics

73

22

226%

Registrations and Other

53

19

185%

Segment Revenue

$1,407

$595

137%

Other Matters

  • ICE repurchased $250 million of its common stock in the fourth quarter and paid $747 million in dividends in 2021.
  • Unrestricted cash was $607 million and outstanding debt was $13.9 billion as of December 31, 2021.
  • Operating cash flow for 2021 was $3.1 billion, up 8% from $2.9 billion one year ago. 2021 free cash flow was $2.8 billion, up 17% from one year ago.
  • Recognized a $1.4 billion gain upon our deconsolidation of Bakkt.
  • The effective tax rate for the fourth quarter was 28%.

Financial Guidance

 

GAAP

Non-GAAP

2022 Total Recurring Revenue

$3.68 - $3.75 billion

2022 Operating Expenses

$3.619 - $3.669 billion

$2.99 - $3.04 billion(1)

1Q22 Operating Expenses

$900 - $910 million

$740 - $750 million(1)

2022 Capital Expenditures

$490 - $520 million

2022 Effective Tax Rate

22.5% - 24.5%(2)

1Q22 Weighted Average Shares Outstanding

562 - 568 million shares, excluding the impact of any potential share repurchases

(1) 2022 and 1Q22 non GAAP operating expenses exclude amortization of acquisition related intangibles and integration expenses.

(2) This represents 2022 full year guidance for both the GAAP and non GAAP effective tax rates but note that the GAAP effective tax rate is more susceptible to diverging from this guidance based on items outside the normal course of business that are adjusted for to derive our non GAAP results. Such items can be unknown, unpredictable or uncertain, requiring unreasonable efforts to determine with any precision and which could potentially be confusing or misleading.

Earnings Conference Call Information

ICE will hold a conference call today, February 3, at 8:30 a.m. ET to review its fourth quarter 2021 financial results. A live audio webcast of the earnings call will be available on the company's website at www.theice.com in the investor relations section. Participants may also listen via telephone by dialing 844-512-2926 from the United States or 412-317-6300 from outside of the United States and Canada. Telephone participants are required to provide the participant entry number 4506364 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 first quarter 2022 earnings has been scheduled for May 5th at 8:30 a.m. ET. Please refer to the Investor Relations website at www.ir.theice.com for additional information.

Historical futures, options and cash ADV, rate per contract, open interest data and CDS cleared information can be found at: https://ir.theice.com/investor-resources/supplemental-information/default.aspx

Consolidated Statements of Income

(In millions, except per share amounts)

 

 

Twelve Months Ended

December 31,

Three Months Ended

December 31,

Revenues:

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Exchanges

$

5,878

 

$

5,839

 

$

1,502

 

$

1,433

 

Fixed income and data services

 

1,883

 

 

1,810

 

 

480

 

 

450

 

Mortgage technology

 

1,407

 

 

595

 

 

346

 

 

350

 

Total revenues

 

9,168

 

 

8,244

 

 

2,328

 

 

2,233

 

Transaction-based expenses:

 

 

 

 

Section 31 fees

 

248

 

 

622

 

 

44

 

 

157

 

Cash liquidity payments, routing and clearing

 

1,774

 

 

1,586

 

 

444

 

 

405

 

Total revenues, less transaction-based expenses

 

7,146

 

 

6,036

 

 

1,840

 

 

1,671

 

Operating expenses:

 

 

 

 

Compensation and benefits

 

1,462

 

 

1,188

 

 

369

 

 

339

 

Professional services

 

159

 

 

144

 

 

35

 

 

44

 

Acquisition-related transaction and integration costs

 

102

 

 

105

 

 

60

 

 

15

 

Technology and communication

 

666

 

 

549

 

 

171

 

 

161

 

Rent and occupancy

 

84

 

 

81

 

 

23

 

 

22

 

Selling, general and administrative

 

215

 

 

185

 

 

52

 

 

53

 

Depreciation and amortization

 

1,009

 

 

751

 

 

250

 

 

257

 

Total operating expenses

 

3,697

 

 

3,003

 

 

960

 

 

891

 

Operating income

 

3,449

 

 

3,033

 

 

880

 

 

780

 

Other income (expense):

 

 

 

 

Interest income

 

1

 

 

10

 

 

1

 

 

1

 

Interest expense

 

(423

)

 

(357

)

 

(102

)

 

(112

)

Other income, net

 

2,671

 

 

80

 

 

1,330

 

 

5

 

Other income (expense), net

 

2,249

 

 

(267

)

 

1,229

 

 

(106

)

Income before income tax expense

 

5,698

 

 

2,766

 

 

2,109

 

 

674

 

Income tax expense

 

1,629

 

 

658

 

 

580

 

 

146

 

Net income

$

4,069

 

$

2,108

 

$

1,529

 

$

528

 

Net income attributable to non-controlling interest

 

(11

)

 

(19

)

 

(2

)

 

(2

)

Net income attributable to Intercontinental Exchange, Inc.

$

4,058

 

$

2,089

 

$

1,527

 

$

526

 

 

 

 

 

 

Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders:

 

 

 

 

Basic

$

7.22

 

$

3.79

 

$

2.72

 

$

0.94

 

Diluted

$

7.18

 

$

3.77

 

$

2.70

 

$

0.93

 

Weighted average common shares outstanding:

 

 

 

 

Basic

 

562

 

 

552

 

 

562

 

 

561

 

Diluted

 

565

 

 

555

 

 

565

 

 

564

 

Consolidated Balance Sheets

(In millions)

 

 

As of

As of

 

December 31, 2021

December 31, 2020

Assets:

 

 

Current assets:

 

 

Cash and cash equivalents

$

607

 

$

583

 

Short-term restricted cash and cash equivalents

 

1,035

 

 

1,000

 

Cash and cash equivalent margin deposits and guaranty funds

 

145,936

 

 

81,628

 

Invested deposits, delivery contracts receivable and unsettled variation margin

 

4,493

 

 

2,455

 

Customer accounts receivable, net

 

1,208

 

 

1,230

 

Prepaid expenses and other current assets

 

1,021

 

 

323

 

Total current assets

 

154,300

 

 

87,219

 

Property and equipment, net

 

1,699

 

 

1,713

 

Other non-current assets:

 

 

Goodwill

 

21,123

 

 

21,291

 

Other intangible assets, net

 

13,736

 

 

14,408

 

Long-term restricted cash and cash equivalents

 

398

 

 

408

 

Other non-current assets

 

2,246

 

 

1,161

 

Total other non-current assets

 

37,503

 

 

37,268

 

Total assets

$

193,502

 

$

126,200

 

 

 

 

Liabilities and Equity:

 

 

Current liabilities:

 

 

Accounts payable and accrued liabilities

$

703

 

$

639

 

Section 31 fees payable

 

57

 

 

207

 

Accrued salaries and benefits

 

354

 

 

346

 

Deferred revenue

 

194

 

 

158

 

Short-term debt

 

1,521

 

 

2,411

 

Margin deposits and guaranty funds

 

145,936

 

 

81,628

 

Invested deposits, delivery contracts payable and unsettled variation margin

 

4,493

 

 

2,455

 

Other current liabilities

 

153

 

 

155

 

Total current liabilities

 

153,411

 

 

87,999

 

Non-current liabilities:

 

 

Non-current deferred tax liability, net

 

4,100

 

 

3,563

 

Long-term debt

 

12,397

 

 

14,126

 

Accrued employee benefits

 

200

 

 

206

 

Non-current operating lease liability

 

252

 

 

320

 

Other non-current liabilities

 

394

 

 

359

 

Total non-current liabilities

 

17,343

 

 

18,574

 

Total liabilities

 

170,754

 

 

106,573

 

Commitments and contingencies

 

 

Redeemable non-controlling interests in consolidated subsidiaries

 

 

 

93

 

Equity:

 

 

Intercontinental Exchange, Inc. stockholders’ equity:

 

 

Common stock

 

6

 

 

6

 

Treasury stock, at cost

 

(5,520

)

 

(5,200

)

Additional paid-in capital

 

14,069

 

 

13,845

 

Retained earnings

 

14,350

 

 

11,039

 

Accumulated other comprehensive loss

 

(196

)

 

(192

)

Total Intercontinental Exchange, Inc. stockholders’ equity

 

22,709

 

 

19,498

 

Non-controlling interest in consolidated subsidiaries

 

39

 

 

36

 

Total equity

 

22,748

 

 

19,534

 

Total liabilities and equity

$

193,502

 

$

126,200

 

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 Annual Report on Form 10-K, including our consolidated financial statements and the notes thereto.

Adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income attributable to ICE common stockholders, adjusted diluted earnings per share and free cash flow 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):

Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation

(In millions)

(Unaudited)

 

 

Exchanges Segment

 

Fixed Income and Data Services Segment

 

Mortgage Technology Segment

 

Consolidated

 

Year Ended December 31,

 

Year Ended December 31,

 

Year Ended December 31,

 

Year Ended December 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Total revenues, less transaction-based expenses

$

3,856

 

 

$

3,631

 

 

$

1,883

 

 

$

1,810

 

 

$

1,407

 

 

$

595

 

 

$

7,146

 

 

$

6,036

 

Operating expenses

 

1,333

 

 

 

1,242

 

 

 

1,354

 

 

 

1,318

 

 

 

1,010

 

 

 

443

 

 

 

3,697

 

 

 

3,003

 

Less: Amortization of acquisition-related intangibles

 

73

 

 

 

74

 

 

 

180

 

 

 

191

 

 

 

369

 

 

 

123

 

 

 

622

 

 

 

388

 

Less: Transaction and integration costs and acquisition-related success fees

 

59

 

 

 

12

 

 

 

 

 

 

 

 

 

39

 

 

 

89

 

 

 

98

 

 

 

101

 

Less: Impairment of developed software

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Less: Accrual relating to a regulatory settlement

 

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

8

 

Adjusted operating expenses

$

1,201

 

 

$

1,145

 

 

$

1,174

 

 

$

1,119

 

 

$

602

 

 

$

231

 

 

$

2,977

 

 

$

2,495

 

Operating income

$

2,523

 

 

$

2,389

 

 

$

529

 

 

$

492

 

 

$

397

 

 

$

152

 

 

$

3,449

 

 

$

3,033

 

Adjusted operating income

$

2,655

 

 

$

2,486

 

 

$

709

 

 

$

691

 

 

$

805

 

 

$

364

 

 

$

4,169

 

 

$

3,541

 

Operating margin

 

65

%

 

 

66

%

 

 

28

%

 

 

27

%

 

 

28

%

 

 

25

%

 

 

48

%

 

 

50

%

Adjusted operating margin

 

69

%

 

 

68

%

 

 

38

%

 

 

38

%

 

 

57

%

 

 

61

%

 

 

58

%

 

 

59

%

Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation

(In millions)

(Unaudited)

 

 

Exchanges Segment

 

Fixed Income and Data Services Segment

 

Mortgage Technology Segment

 

Consolidated

 

Three Months Ended December 31,

 

Three Months Ended December 31,

 

Three Months Ended December 31,

 

Three Months Ended December 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Total revenues, less transaction-based expenses

$

1,014

 

 

$

871

 

 

$

480

 

 

$

450

 

 

$

346

 

 

$

350

 

 

$

1,840

 

 

$

1,671

 

Operating expenses

 

356

 

 

 

323

 

 

 

344

 

 

 

331

 

 

 

260

 

 

 

237

 

 

 

960

 

 

 

891

 

Less: Amortization of acquisition-related intangibles

 

17

 

 

 

21

 

 

 

44

 

 

 

47

 

 

 

92

 

 

 

85

 

 

 

153

 

 

 

153

 

Less: Transaction and integration costs

 

47

 

 

 

2

 

 

 

 

 

 

 

 

 

11

 

 

 

13

 

 

 

58

 

 

 

15

 

Less: Impairment of developed software

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

Adjusted operating expenses

$

292

 

 

$

289

 

 

$

300

 

 

$

284

 

 

$

157

 

 

$

139

 

 

$

749

 

 

$

712

 

Operating income

$

658

 

 

$

548

 

 

$

136

 

 

$

119

 

 

$

86

 

 

$

113

 

 

$

880

 

 

$

780

 

Adjusted operating income

$

722

 

 

$

582

 

 

$

180

 

 

$

166

 

 

$

189

 

 

$

211

 

 

$

1,091

 

 

$

959

 

Operating margin

 

65

%

 

 

63

%

 

 

28

%

 

 

26

%

 

 

25

%

 

 

32

%

 

 

48

%

 

 

47

%

Adjusted operating margin

 

71

%

 

 

67

%

 

 

38

%

 

 

37

%

 

 

55

%

 

 

60

%

 

 

59

%

 

 

57

%

Adjusted Net Income Attributable to ICE and EPS

(In millions)

 

 

Twelve Months Ended 12/31/2021

 

Twelve Months Ended 12/31/2020

Net income attributable to ICE common stockholders

$

4,058

 

 

$

2,089

 

Add: Amortization of acquisition-related intangibles

 

622

 

 

 

388

 

Add: Transaction and integration costs and acquisition-related success fees

 

98

 

 

 

101

 

Less: Gain on value of Euroclear equity investment

 

(34

)

 

 

(35

)

Less: Gain on sale of Coinbase equity investment

 

(1,227

)

 

 

 

Less: Gain on deconsolidation of Bakkt

 

(1,419

)

 

 

 

Less: Gain on sale of BIDS equity investment

 

 

 

 

(20

)

Less: Gain related to the settlement of an acquisition-related indemnification claim

 

(7

)

 

 

 

Add: Accelerated unamortized costs related to the early

payoff of the June 2023 floating rate senior notes

 

4

 

 

 

 

Add: Extinguishment of December 2020 Senior Notes

 

 

 

 

14

 

Add: Pre-acquisition interest expense on debt issued for Ellie Mae acquisition

 

 

 

 

5

 

Add: Impairment of developed software

 

 

 

 

11

 

Add: Impairment of CAT promissory notes

 

 

 

 

2

 

Add: Accrual relating to legal settlement

 

16

 

 

 

30

 

Add: Accrual relating to regulatory settlement

 

 

 

 

8

 

Add/(Less): Net losses/(income) from unconsolidated investees

 

42

 

 

 

(71

)

Add/(Less): Income tax effect for the above items

 

574

 

 

 

(109

)

Add: Deferred tax adjustments on acquisition-related intangibles

 

183

 

 

 

36

 

Adjusted net income attributable to ICE common stockholders

$

2,910

 

 

$

2,449

 

 

 

 

 

Basic earnings per share attributable to ICE common stockholders

$

7.22

 

 

$

3.79

 

Diluted earnings per share attributable to ICE common stockholders

$

7.18

 

 

$

3.77

 

 

 

 

 

Adjusted basic earnings per share attributable to ICE common stockholders

$

5.17

 

 

$

4.44

 

Adjusted diluted earnings per share attributable to ICE common stockholders

$

5.15

 

 

$

4.41

 

 

 

 

 

Basic weighted average common shares outstanding

 

562

 

 

 

552

 

Diluted weighted average common shares outstanding

 

565

 

 

 

555

 

Adjusted Net Income Attributable to ICE and EPS

(In millions)

(Unaudited)

 

 

Three Months Ended 12/31/2021

 

Three Months Ended 12/31/2020

Net income attributable to ICE

$

1,527

 

 

$

526

 

Add: Amortization of acquisition-related intangibles

 

153

 

 

 

153

 

Add: Transaction and integration costs

 

58

 

 

 

15

 

Less: Gain on deconsolidation of Bakkt

 

(1,419

)

 

 

 

Add: Impairment of developed software

 

 

 

 

11

 

Less: Gain on value of Euroclear equity investment

 

 

 

 

(35

)

Less: Gain on sale of BIDS equity investment

 

 

 

 

(20

)

Add: Accrual for potential legal settlements

 

 

 

 

30

 

Add: Net losses from unconsolidated investees

 

84

 

 

 

13

 

Add/(Less): Income tax effect related to the items above

 

370

 

 

 

(47

)

Add/(Less): Deferred tax adjustments on acquisition-related intangibles

 

(13

)

 

 

3

 

Adjusted net income attributable to ICE

$

760

 

 

$

649

 

 

 

 

 

Basic earnings per share

$

2.72

 

 

$

0.94

 

Diluted earnings per share

$

2.70

 

 

$

0.93

 

 

 

 

 

Adjusted basic earnings per share

$

1.35

 

 

$

1.16

 

Adjusted diluted earnings per share

$

1.34

 

 

$

1.15

 

 

 

 

 

Basic weighted average common shares outstanding

 

562

 

 

 

561

 

Diluted weighted average common shares outstanding

 

565

 

 

 

564

 

Free Cash Flow Calculation

(In millions)

(Unaudited)

 

 

Twelve Months Ending December 31, 2021

Twelve Months Ending December 31, 2020

Cash flow from operations

$

3,123

 

$

2,881

 

Less: Capital expenditures and capitalized software development costs

 

(452

)

 

(410

)

Add/(Less): Section 31 fees, net

 

150

 

 

(69

)

Free cash flow

$

2,821

 

$

2,402

 

About Intercontinental Exchange

Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company and provider of marketplace infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. We operate regulated marketplaces, including the New York Stock Exchange, for the listing, trading and clearing of a broad array of derivatives contracts and financial securities across major asset classes. Our comprehensive data services offering supports the trading, investment, risk management and connectivity needs of customers around the world and across asset classes. As a leading technology provider for the U.S. residential mortgage industry, ICE Mortgage Technology provides the technology and infrastructure to transform and digitize U.S. residential mortgages, from application and loan origination through to final settlement.

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 here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”

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 ICE's Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 3, 2022.

SOURCE: Intercontinental Exchange

ICE-CORP

Contacts

ICE Investor Relations Contact:
Mary Caroline O'Neal
marycaroline.oneal@ice.com
+1 770 738 2151

investors@ice.com

ICE Media Contact:
Josh King
josh.king@ice.com
+1 212 656 2490
media@ice.com

Contacts

ICE Investor Relations Contact:
Mary Caroline O'Neal
marycaroline.oneal@ice.com
+1 770 738 2151

investors@ice.com

ICE Media Contact:
Josh King
josh.king@ice.com
+1 212 656 2490
media@ice.com