Highlights (Q1 2007 vs. Q1 2006)
- Revenues of $21.9 million compared to $19.1 million, up 15%
- Net earnings of $5.6 million compared to $4.9 million, up 13%
- Adjusted net earnings of $7.6 million compared to $5.5 million,
up 38%
- Diluted earnings per share of $0.20 compared to $0.18
- Adjusted diluted earnings per share of $0.27 compared to $0.20
- Average daily trading volume up 26%
NOTE TO EDITORS: ALL REFERENCES TO EARNINGS PER SHARE AND DIVIDENDS PER
SHARE HAVE BEEN RESTATED TO REFLECT THE THREE-FOR-ONE STOCK SPLIT THAT MX
EFFECTED ON MARCH 15, 2007. ALL DOLLAR AMOUNTS IN THIS PRESS RELEASE ARE
STATED IN CANADIAN DOLLARS.
MONTREAL, April 24 /CNW Telbec/ - Montreal Exchange Inc. (TSX: MXX) announced today its financial results for the first quarter ending March 31, 2007.
Revenues for the first quarter reached $21.9 million representing an increase of 15% compared to $19.1 million for the first quarter 2006, due principally to increased market trading volumes. The average daily trading volume was up 26% year-over-year.
Net earnings for the first quarter 2007 increased 13% to $5.6 million compared to $4.9 million for the first quarter 2006. Adjusted net earnings for the first quarter 2007, excluding a $2.1 million charge net of tax relating to non-recurring professional fees in connection with the preparation of our non-offering prospectus and the listing of our shares, increased 38% to $7.6 million compared to $5.5 million for the first quarter 2006, excluding a $0.6 million charge net of tax relating to legal settlements in connection with the closing of our trading floor.
"We are pleased with this quarter's results which represent another strong period in our continued growth in the derivatives business," commented MX President and Chief Executive Officer, Luc Bertrand. "There is a very positive operating environment for the derivatives industry in Canada and globally. The Montreal Exchange is a key player with leading-edge technology and excellent growth opportunities from our strategic alliances: BOX, MCeX and CAREX."
"This has been a momentous quarter for us," added Mr. Bertrand, referring to significant recent developments that occurred during the first quarter of 2007.
Recent Developments:
- On March 13, 2007, MX and NYMEX Holdings Inc. ("NYMEX") entered into an
agreement whereby NYMEX purchased on March 23, 2007, 3,097,718 newly-
issued MX common shares, representing 10% of MX's outstanding share
capital after giving effect to this issuance, for $29? per common
share, totalling net proceeds of $89.7 million (net of transaction
fees).
- As part of this agreement, MX and NYMEX created a business venture,
called Canadian Resources Exchange Inc. ("CAREX"), for the trading and
clearing of different energy products in the Canadian market. Under the
terms of this agreement, MX and NYMEX each invested $2.0 million in the
new entity in order to fund initial working capital requirements. MX
and NYMEX will share CAREX's net earnings equally and control will be
exercised jointly.
- On April 12, 2007, MX paid a special dividend of $0.33? per common
share ($9.3 million in aggregate) to shareholders of record on
March 22, 2007.
- MX's Board of Directors approved a normal course issuer bid, starting
on March 23, 2007 and ending on March 22, 2008, to purchase, in the
normal course of activities, up to 2,412,143 MX common shares.
The Q1 2007 Quarterly Report is available on the MX website at www.m-x.ca
and the SEDAR website at www.sedar.com.
Investor / Media Conference Calls / Webcast Details
The Montreal Exchange will hold its first conference call as a
publicly-traded company to discuss first quarter 2007 results on April 25,
2007 at 8:30 a.m. (Eastern). An investor presentation will be available on the
MX website at www.m-x.ca, in the News section. Those wishing to participate in
the conference call can dial the following:
April 25 at 8:30 a.m.: Financial analysts' teleconference
In English: 514 868-1042
1 866 898-9626 (toll-free in North America)
In French: 514 861-0443
(simultaneous translation) 1 866 696-5911 (toll-free in North America)
Replay:
A replay will be available until Wednesday,
May 2, 2007. To access the replay, please
dial 514 861-2272 or 1 800 408-3053.
For English, enter passcode
3219928(number sign).
For French, enter passcode
3219929(number sign).
This teleconference will be Webcast live and archived for 90 days on the
MX website: www.m-x.ca.
The Montreal Exchange will also hold a teleconference with the media on
Wednesday, April 25 at 11:00 a.m. (Eastern).
April 25 at 11:00 a.m.: Media teleconference
In English and 514 861-7241
French: 1 866 542-4237 (toll-free in North America)
Replay
A replay will be available until Wednesday,
May 2, 2007. To access the replay, please
dial 514 861-2272 or 1 800 408-3053 and enter
passcode 3219930(number sign).
About Montreal Exchange Inc.
The Montreal Exchange (MX) is Canada's financial derivatives exchange. The MX offers trading in Canadian interest rate, index and equity derivatives. Clearing, settlement and risk management services are provided by an AA rated clearing-house, the Canadian Derivatives Clearing Corporation, fully owned by the MX. Our integrated trading and clearing services are supported by a proprietary suite of exchange technologies, known as SOLA(R). The MX also has interests in: the Boston Options Exchange (BOX), a U.S. automated equity options market, for which MX is the technical operator; the Canadian Resources Exchange (CAREX), a new corporation created with NYMEX that is dedicated to developing the Canadian energy market; and the Montreal Climate Exchange (MCeX), a joint venture with the Chicago Climate Exchange(R), that aims to become the first regulated environment market in Canada. For more information about the Montreal Exchange, please visit www.m-x.ca.
Non-GAAP Performance Measures
Adjusted net earnings and adjusted diluted earnings per share are financial measures not recognized by or calculated in accordance with Canadian generally accepted accounting principles. Please refer to MX's 2007 first quarter Management Discussion and Analysis dated April 24, 2007 for more details including a reconciliation of these non-GAAP measures to the most comparable GAAP measures.
Forward Looking and Cautionary Statements
Certain statements in this document may contain forward-looking information. This forward-looking information is based on current expectations, estimates, forecasts and projections about the industry in which we operate, as well as certain assumptions made by our management. Although we believe that the expectations and assumptions reflected in this forward-looking information are reasonable, forward-looking information involves known and unknown risks and uncertainties and is not a guarantee of future performance. Factors that could cause actual results to differ materially from those contemplated by this forward-looking information include, but are not limited to, risks associated with general market and economic conditions, evolving national and international competition, concentration of credit risk, credit risk and clearing house risk, reliability of information systems and regulatory risk. We caution you that this list of factors is not exhaustive. A description of these factors and certain additional risk factors are discussed in our non-offering prospectus, dated March 23, 2007. Given the uncertainty of forward-looking information, you are cautioned not to place undue reliance on these statements. We disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable law.