IntercontinentalExchange Reports 2Q13 Adjusted Diluted EPS Of $2.19, +12% Yty - Record Adjusted Net Income Attributable To ICE Of $161MM - Record Quarterly Revenues Of $372MM, +6% Yty In 2Q13 - GAAP Diluted EPS Of $2.09; GAAP Net Income Attributable To ICE Of $153MM In 2Q13

IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today reported record financial results for the second quarter of 2013. Consolidated revenues were a record $372 million, an increase of 6% from the second quarter of 2012. Consolidated net income attributable to ICE was $153 million, up 7% from the second quarter of 2012, and diluted earnings per share (EPS) increased 7% over the second quarter to $2.09 on a GAAP basis.

For the second quarter ended June 30, 2013, certain items were included in ICE's operating results that are not indicative of its core business performance, including transaction costs related to ICE's proposed acquisition of NYSE Euronext. Excluding these items, second quarter 2013 adjusted net income attributable to ICE increased 12% over the prior second quarter to a record $161 million and adjusted diluted EPS rose 12% to $2.19. Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on adjusted net income attributable to ICE and adjusted diluted EPS.

Said ICE Chairman and CEO Jeffrey C. Sprecher: "We delivered on our commitment to growth, achieving a record quarter while making continued progress on our acquisition of NYSE Euronext and seamlessly completing a significant clearing transition. We received approvals from shareholders of both companies and the European Commission and are working with regulators to finalize the transaction. Meanwhile, we remain focused on extending our risk management services and delivering on the needs of our customers around the globe."

ICE SVP and CFO Scott A. Hill added: "Our clearing business continues to expand into new asset classes. Following the successful transfer of NYSE Liffe's clearing services, we now clear energy, emissions, agricultural, credit, interest rate and equity derivatives at ICE Clear Europe. We are also seeing significant growth in buy-side volumes for credit default swaps following the start of the U.S. clearing mandate. To date, we have cleared $1.8 trillion in buy-side gross notional value for CDS. Combined with our demonstrated investment discipline, our diverse businesses, strong balance sheet and cash flows provide a strong foundation for continued growth."

Second Quarter 2013 Results

Second quarter 2013 consolidated revenues increased 6% from the prior second quarter to $372 million and consolidated transaction and clearing revenues increased 4% to $319 million.

Futures average daily volume (ADV) was 3.5 million contracts, up 3% compared to the second quarter of 2012. Revenues from ICE's credit default swap (CDS) trade execution, processing and clearing business were $40 million, up 11% from the second quarter of 2012, and included $22 million in CDS clearing revenues.

Consolidated market data revenues increased 8% to $40 million in the second quarter of 2013 compared to the prior second quarter. Consolidated other revenues were $13 million in the second quarter of 2013.

Consolidated operating expenses were up 8% from the prior second quarter to $147 million, and consolidated operating income rose 4% to $225 million. Operating margin was 60%, and the effective tax rate for the quarter was 27%.

First Half 2013 Results

Consolidated revenues in the first half of 2013 grew 1% to $724 million. Futures ADV in the first half of the year was 3.6 million contracts down 1% from the first six months of 2012, with futures transaction and clearing revenue of $619 million, down 2% from the prior year's first half.

Consolidated market data revenues increased 10% to $81 million and consolidated operating margin was 59% for the first half of 2013.

Cash flows from operations were $382 million in the first half of 2013, up 4% year-over-year. Capital expenditures during the first half of 2013 were $32 million and capitalized software development costs totaled $18 million.

Unrestricted cash and short term investments were $1.5 billion as of June 30, 2013, and outstanding debt was $803 million.

Guidance

• ICE expects 2013 adjusted consolidated expenses to increase in the range of 2% to 3% compared to 2012 adjusted consolidated expenses, versus prior guidance of an increase in the range of 3% to 5%.
• ICE expects depreciation and amortization expense for 2013 in the range of $130 million to $135 million, versus prior guidance of $135 million to $140 million for the year.
• ICE expects interest expense for the second half of 2013 to be in the range of $10 million to $11 million per quarter, versus prior guidance of $9 million to $10 million per quarter.
• ICE expects acquisition expense for the third quarter of 2013 in the range of $5 million to $7 million related to the NYSE Euronext transaction, which will be excluded from non-GAAP results.
• For the third quarter of 2013, ICE expects to record $38.5 million in capital expenditures relating to its purchase of an office building to serve as its Atlanta headquarters. ICE continues to anticipate $60 million to $70 million in technology capital expenditures and capitalized software for 2013, in addition to $20 million to $30 million in real estate expenditures primarily related to New York office consolidation.
• ICE's diluted share count for the third quarter of 2013 is expected to be in the range of 73.0 million to 74.0 million weighted average shares outstanding.

Earnings Conference Call Information

ICE will hold a conference call today, August 6, at 8:30 a.m. ET to review its second quarter 2013 financial results. A live audio webcast of the earnings call will be available on the company's website at www.theice.com under About ICE/Investors & Media. Participants may also listen via telephone by dialing 877-674-6420 from the United States, or 708-290-1370 from outside of the United States. Telephone participants should call 10 minutes prior to the start of the call. The call will be archived on the company's website for replay.

Historical futures volume, rate per contract and open interest data can be found at: http://ir.theice.com/supplemental.cfm

Volume, for the current and prior-year periods, has been adjusted to include OTC swap contracts that were transitioned to energy futures contracts on October 15, 2012.

Non-GAAP Financial Measures
We use non-GAAP measures internally to evaluate our performance and in making financial and operational decisions. When viewed in conjunction with our U.S. generally accepted accounting principles, or GAAP, results and the accompanying reconciliation, we believe that our presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. We strongly recommend that investors review the GAAP financial measures included in this press release and in our Quarterly Report on Form 10-Q, including our consolidated financial statements and the notes thereto.

Adjusted net income attributable to ICE for the six and three months ended June 30, 2013 presented below is calculated by adding net income attributable to ICE, the adjustments described below, which are not reflective of our core business performance, and the related income tax effect. We are including all of the acquisition-related transaction costs incurred relating to our current acquisition of NYSE Euronext as a non-GAAP adjustment given the size of the deal. We are also including the banker success fee relating to the ICE Endex acquisition and the duplicate rent expenses and lease termination costs in New York City, as we are consolidating multiple existing locations into a combined location, as non-GAAP adjustments. The tax effects of these items are calculated by applying specific legal entity and jurisdictional marginal tax rates. The following table reconciles net income attributable to ICE to adjusted net income attributable to ICE and calculates adjusted earnings per share attributable to ICE common shareholders for the period presented below (in thousands, except per share amounts):