Revenues for the first quarter ended March 31, 2001 climbed 60 percent to $92.2 million from $57.6 million for the same period of 2000. The largest contributors were clearing and transaction fees, which rose 77 percent to $70.9 million for the current quarter from $40.0 million in the year-earlier period. Other operating revenue, investment income, quotation data fees and communication fee revenues also increased.
First quarter 2001 net income was $20.0 million, or 69 cents per diluted Class A equivalent share, compared with a net loss of $2.9 million for the first quarter of 2000, or 10 cents per diluted Class A equivalent share.* First quarter 2001 expenses were $58.8 million, versus $61.4 million for the same period a year ago. The comparison benefited from nonrecurring expenses in the first quarter of 2000 associated with management changes and preparations for CME's demutualization and issuing of shares in November 2000. CME recorded a tax provision of $13.4 million for the current quarter, versus a tax benefit (due to operating losses) of $1.9 million for the first quarter of 2000.
"While market volatility has increased demand for our risk management products, we also are seeing the results of new programs," said Chairman Scott Gordon. "For example, expanding access to our trading platforms last year has fueled demand for our open outcry and electronically traded products alike. Our Eurodollar contract is now the world's most actively traded futures product, and our E-mini stock index futures continue to set new trading records."
"We continue to improve access to CME products and services," added President and Chief Executive Officer Jim McNulty. "Earlier this month, we began 'side-by-side' electronic and open outcry trading of our currency and cross-rate futures contracts. The new program has been well-received by our customers on and off our trading floors, with new requests to connect to our electronic trading platform coming in daily. Our business strategy continues to emphasize having the right products, platforms and processes to meet the needs of today's market participants." <> For the first quarter of 2001, CME's trading volume rose 56 percent to 92.7 million contracts, topping the previous quarterly record of 62.9 million contracts traded in the third quarter of 1998. March 2001 was CME's busiest single volume month ever, with 34.3 million contracts traded - besting the previous record of 31.7 million contracts set in January 2001. Underlying value of the contracts traded in March totaled $23 trillion, while first-quarter underlying value - or dollar volume - reached $66.4 trillion.
CME's working capital position increased to $86.4 million at the end of March 2001, compared with $69.1 million at Dec. 31, 2000. Excluding cash performance bonds and security deposits of $909.0 million, which are both current assets and current liabilities, the current ratio was 2.7 to 1 at March 31, 2001, unchanged from year-end 2000. This ratio (current assets divided by current liabilities) is a measure of short-term debt-paying ability.
Chicago Mercantile Exchange Inc. is an international marketplace that brings together buyers and sellers on its trading floors and GLOBEX2 around-the-clock electronic trading system. CME offers futures contracts and options on futures primarily in four product areas: interest rates, stock indexes, foreign currencies and agricultural commodities. All over the world, pension funds and investment advisers, portfolio managers, corporate treasurers, commercial and investment banks, broker/dealers and individuals are among those who trade on CME as an integral part of their financial management strategy. The exchange moves about $1 billion per day in settlement payments, manages $30 billion in collateral deposits and administers more than $1 billion of letters of credit. Earnings releases are available on the company's Web site at www.cme.com/exchange/investor.html . SEC filings are available at www.freeedgar.com.
