Net income in the second quarter of 2002 was $13.8 million on revenues of $75.6 million. This compares to net income in the first quarter of 2002 of $7.6 million on total revenues of $72.3 million, and net income in the second quarter of 2001 of $4.3 million on revenues of $61.4 million. Total revenues net of contracted license fees were $71.9 million for the second quarter of 2002.
Growth in revenues in the first half of 2002 was driven primarily by a 21% increase in volume. The CBOT's trading volume was 153.1 million contracts in the first six months of 2002 compared to 126.7 million contracts for the same period in 2001. Expenses for the period decreased $0.5 million from $108.6 million to $108.1 million. Included in these expenses was a charge for the impairment of electronic trading software of $6.2 million.
On July 11th, the CBOT and Eurex announced a new agreement that provides a cooperative framework for increased flexibility in product offerings, technology and future strategy for both marketplaces. The impact of this agreement is fully reflected in the CBOT's financials released today.
Chairman Nickolas J. Neubauer said, "We have a sound business plan that continues to focus on both member profits and corporate profits. We are keeping our expenses under control, our finances remain sound, and we expect this momentum will continue for the benefit of our customers and members."
President and CEO David J. Vitale added, "Demand for our products, the liquidity provided by our members and market makers, and improving access to our markets has led to increases in volume and revenue. These numbers, combined with the business disciplines we put in place, have provided the exchange with the necessary financial resources to make investments in new products and technology enhancements in order to build a tremendously successful exchange."
As of June 30, 2002, the CBOT® had an unrestricted cash balance of $55.8 million, compared to $29.1 million as of June 30, 2001 and $50.8 million as of December 31, 2001. Net current assets as of June 30, 2002 were $26.9 million compared to $10.7 million for the first quarter of 2002 and $8.3 million on December 31, 2001.
