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NYMEX Holdings, Inc. (NYSE: NMX), parent company of the New York Mercantile Exchange, Inc. (NYMEX), today reported that total operating revenues for the first quarter ended March 31, 2007, rose 47% to $164.2 million compared to $111.7 million for the first quarter 2006. Net income for the first quarter 2007 increased 67% to $56.2 million compared to $33.6 million for the first quarter 2006. Diluted earnings per share rose for the first quarter 2007 to $0.59, based on 94.8 million shares outstanding, compared to $0.44, based on 75.1 million shares outstanding for the first quarter 2006.
NYMEX also announced that the Board of Directors approved a quarterly dividend of $0.10 per share on the Company’s common stock, to shareholders of record as of the close of business on June 1, 2007, and payable on June 29, 2007.
“We continue to execute on the aggressive goals we have set since our public offering,” said NYMEX Chairman, Richard Schaeffer. “During the first quarter, we set volume, revenue, net income and profitability records, resulting in tremendous quarterly performance. Our electronic volumes on the industry-leading CME Globex ® electronic trading platform hit all-time highs, and we have taken back market share in our energy and metals products. Since January, we have announced and completed important transactions, including a 19% investment in Optionable, Inc. to enhance our options offering; and a 10% investment in Montréal Exchange Inc., with which we are jointly creating the Canadian Resources Exchange (CAREX) to serve the vast Canadian energy marketplace. We also announced an increase in NYMEX member transaction fees, which will improve our profitability while maintaining our status as the most aggressively priced market in our industry. We will continue to look at additional acquisitions and strategic investments. Our focus remains on diversification and on expanding the NYMEX brand globally into untapped and underserved markets.”
Mr. Schaeffer continued, “Importantly, consistent with our prior statements regarding a dividend policy, we are pleased to declare our first quarterly dividend to shareholders as a public company.”
NYMEX President and Chief Executive Officer James E. Newsome commented, "NYMEX continues to be the global leader and innovator in the energy and metals markets. In the first quarter, we introduced a number of significant new products in response to demand by our customer base, such as uranium, catastrophe risk and alternative energy futures. We are pleased by the progress we have made in improving our profitability and in increasing electronic volume on CME Globex and our NYMEX ClearPort ® trading and clearing platforms. We also remain excited about the potential for our Dubai Mercantile Exchange joint venture, which has recently received approval from the Dubai Financial Services Authority and will launch in June, pending final regulatory approval.”
Clearing and transaction fees rose 50% for the first quarter 2007 to $138.2 million compared to $92.4 million for the year ago period. Market data fees were $23.1 million for the first quarter 2007, versus $15.4 million for the first quarter 2006, an increase of 50%.
Average daily volume was 1.513 million contracts during the first quarter 2007, a 40% increase over the first quarter of 2006. NYMEX electronic volume on CME Globex was an average of 597,000 contracts per day and represented a 485% increase over first quarter 2006 electronic volume. NYMEX floor-traded energy futures and options averaged 330,000 contracts a day, a decrease of 39% from the first quarter of 2006. COMEX electronic volume on CME Globex averaged 90,000 contracts per day, an increase of 650% over first quarter 2006 electronic volume. COMEX metals open outcry average daily volume was 56,000 contracts, a decrease of 60% from the first quarter of 2006. Average daily volume on NYMEX ClearPort increased 54% in the first quarter of 2007 to 373,000 contracts, from 242,000 contracts in the comparable period of 2006. The remaining volume of 68,000 trades per day consisted of other transactions which includes position transfers and exchanges.
Total operating expenses, excluding direct transaction costs of $24.1 million, were $44.4 million for the first quarter of 2007. This represents a 3% increase from $43.3 million for the same period in 2006, driven primarily by management equity compensation of $2.3 million granted in connection with NYMEX’s initial public offering in November 2006, as well as $600,000 of severance-related costs.
Income before provision for income taxes was $99.7 million for the first quarter 2007, compared to $61.7 million for the first quarter 2006. Pretax margin, defined as income before provision for income taxes divided by operating revenues, investment income and interest income from securities lending (net of interest expense/fees from securities lending and direct transaction costs), was 68% in the first quarter 2007, compared to 58% in first quarter 2006.
Investor Conference Call / Webcast Details
NYMEX will hold a conference call to discuss 2007 first quarter results today, May 1, 2007 at 8:00 AM Eastern Time. Those wishing to participate in the conference call can dial (800) 299-7928 ( U.S. and Canada) or (617) 614-3926 (International), using the confirmation code 98223409. A live audio webcast of the call will also be available on the Investor Relations section of the NYMEX website at http://investor.nymex.com. Additionally, an archived version of the conference call will also be available within approximately 90 minutes of the conclusion of the call.
About NYMEX Holdings, Inc.
NYMEX Holdings, Inc. (NYSE:NMX) is the parent company of the New York Mercantile Exchange, Inc. (NYMEX), the world’s largest physical commodity futures and options exchange. NYMEX offers futures and options trading in energy, metals and soft commodities contracts and clearing services for more than 280 off-exchange energy contracts. Through a hybrid model of open outcry floor trading and electronic trading on CME Globex ® and NYMEX ClearPort ®, NYMEX offers crude oil, petroleum products, natural gas, coal, electricity, gold, silver, copper, aluminum, platinum group metals, and soft commodities contracts for trading and clearing virtually 24 hours a day. Further information about NYMEX Holdings, Inc. and the New York Mercantile Exchange, Inc. is available on the NYMEX website at http://www.nymex.com.
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