NEW YORK, March 2, 2016 /PRNewswire/ --
Fourth Quarter and Fiscal Year 2015 Highlights:
OTC Markets Group Inc. (OTCQX: OTCM), operator of Open, Transparent and Connected financial markets for 10,000 U.S. and global securities, today announced its financial results for the fourth quarter and fiscal year 2015.
"Our record revenues in 2015 were the result of our focus on enhancing our innovative OTCQX Best and OTCQB Venture markets for public companies," said R. Cromwell Coulson, President and Chief Executive Officer. "Our strong results position us to continue to invest in our people and systems, focus on reliability and regulatory compliance, and deliver on our mission to create better informed and more efficient markets that directly connect broker-dealers and meet the needs of the next generation of U.S. and global companies and investors."
Mr. Coulson continued, "The future of financial markets is online, data-driven and social, and our broker-dealer network based markets are tailor made to become the markets of choice for secondary trading for innovative and entrepreneurial crowdfunded offerings. We were thrilled to announce on February 19 of this year that Elio Motors, the first company to successfully complete an IPO under Regulation A+, joined our OTCQX Best Market."
"Strong overall revenue performance during the fourth quarter and for the full year was primarily due to the growth of the OTCQB Venture Market, which drove significant increases in Corporate Services revenue," said Bea Ordonez, Chief Financial Officer. "We are pleased that we were able to continue to deliver substantial value to shareholders in 2015."
Fourth Quarter 2015 compared to Fourth Quarter 2014
Quarter Ended December 31, |
||||||||
(in thousands, except shares and per share data) |
2015 |
2014 |
% change |
$ change |
||||
OTC Link ATS |
$ 2,882 |
$ 3,199 |
(10%) |
$ (317) |
||||
Market data licensing |
5,121 |
5,105 |
- |
16 |
||||
Corporate services |
5,052 |
2,903 |
74% |
2,149 |
||||
Gross revenues |
13,055 |
11,207 |
16% |
1,848 |
||||
Net revenues |
12,478 |
10,596 |
18% |
1,882 |
||||
Operating expenses |
7,447 |
6,607 |
13% |
840 |
||||
Income from operations |
5,031 |
3,989 |
26% |
1,042 |
||||
Operating profit margin |
40% |
38% |
||||||
Net income |
$ 2,926 |
$ 2,669 |
10% |
$ 257 |
||||
Diluted earnings per share |
$ 0.25 |
$ 0.23 |
9% |
|||||
Adjusted diluted earnings per share |
$ 0.50 |
$ 0.41 |
22% |
|||||
Weighted-average shares outstanding, diluted |
11,292,049 |
11,225,568 |
1% |
|||||
Highlights
Fiscal Year 2015 Results compared to Fiscal Year 2014
Year Ended December 31, |
||||||||
(in thousands, except shares and per share data) |
2015 |
2014 |
% change |
$ change |
||||
OTC Link ATS |
$ 11,796 |
$ 12,019 |
(2%) |
$ (223) |
||||
Market data licensing |
20,609 |
20,334 |
1% |
275 |
||||
Corporate services |
17,504 |
9,862 |
77% |
7,642 |
||||
Gross revenues |
49,909 |
42,215 |
18% |
7,694 |
||||
Net revenues |
47,530 |
39,827 |
19% |
7,703 |
||||
Operating expenses |
30,664 |
26,925 |
14% |
3,739 |
||||
Income from operations |
16,866 |
12,902 |
31% |
3,964 |
||||
Operating profit margin |
35% |
32% |
||||||
Net income |
$ 10,258 |
$ 7,890 |
30% |
$ 2,368 |
||||
Diluted earnings per share |
$ 0.88 |
$ 0.69 |
28% |
|||||
Adjusted diluted earnings per share |
$ 1.73 |
$ 1.36 |
27% |
|||||
Weighted-average shares outstanding, diluted |
11,289,185 |
11,137,625 |
1% |
|||||
Highlights
Dividend Declaration – Quarterly Cash Dividend
OTC Markets Group announced today that its Board of Directors authorized a quarterly cash dividend of $0.14 on its Class A Common Stock. The quarterly cash dividend is payable on March 29, 2016 to stockholders of record on March 15, 2016. The ex-dividend date is March 11, 2016.
Stock Buyback Program
On February 24, 2016, the Board of Directors refreshed the Company's stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company's Class A Common Stock. The Company is authorized to purchase shares from time to time on the open market and through block trades, in compliance with applicable law.
Non-GAAP Financial Measures
In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results, but are provided to improve overall understanding of the Company's current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.
Fourth Quarter and Fiscal Year 2015 Conference Call
The Company will host a conference call on Thursday, March 3, 2016 at 8:00 a.m. Eastern Time, during which management will discuss the financial results in further detail. The conference call and replay of the conference call may be accessed as follows:
Dial-in Numbers: 1-877-407-0789 (Domestic); 1-201-689-8562 (International)
Replay Dial-in Numbers (Available until March 17, 2016): 1-877-870-5176 (Domestic); 1-858-384-5517 (International); Replay PIN Number: 13624184
The earnings release and transcript to the earnings call will also be available in the Investor Relations section of the corporate website at www.otcmarkets.com/investor-relations/overview.
OTC Markets Group's 2015 Annual Report is available publicly at www.otcmarkets.com.
About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates Open, Transparent and Connected financial markets for 10,000 U.S. and global securities. Through our OTC Link® ATS, we directly link a diverse network of broker-dealers that provide liquidity and execution services for a wide spectrum of securities. We organize these securities into markets to inform investors of opportunities and risks: the OTCQX® Best Market; the OTCQB® Venture Market; and the Pink® Open Market. Our data-driven platform enables investors to easily trade through the broker of their choice at the best possible price and empowers a broad range of companies to improve the quality and availability of information for their investors. To learn more about how we create better informed and more efficient financial markets, visit www.otcmarkets.com.
OTC Link ATS is operated by OTC Link LLC, member FINRA/SIPC and SEC regulated ATS.
Subscribe to the OTC Markets RSS Feed
Investor Contact:
Bea Ordonez
Chief Financial Officer
Phone: 212-220-2215
Email: [email protected]
OTC MARKETS GROUP INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||
(in thousands, except share and per share information) |
|||||||
(Unaudited) |
|||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||
2015 |
2014 |
2015 |
2014 |
||||
OTC Link ATS |
$ 2,882 |
$ 3,199 |
$ 11,796 |
$ 12,019 |
|||
Market data licensing |
5,121 |
5,105 |
20,609 |
20,334 |
|||
Corporate services |
5,052 |
2,903 |
17,504 |
9,862 |
|||
Gross revenues |
13,055 |
11,207 |
49,909 |
42,215 |
|||
Redistribution fees and rebates |
(577) |
(611) |
(2,379) |
(2,388) |
|||
Net revenues |
12,478 |
10,596 |
47,530 |
39,827 |
|||
Operating expenses |
|||||||
Compensation and benefits |
4,311 |
3,672 |
18,716 |
15,632 |
|||
IT Infrastructure and information services |
1,318 |
1,101 |
4,860 |
4,319 |
|||
Professional and consulting fees |
356 |
447 |
1,811 |
1,825 |
|||
Marketing and advertising |
386 |
401 |
1,291 |
1,330 |
|||
Occupancy costs |
382 |
361 |
1,484 |
1,465 |
|||
Depreciation and amortization |
433 |
392 |
1,692 |
1,543 |
|||
General, administrative and other |
261 |
233 |
810 |
811 |
|||
Total operating expenses |
7,447 |
6,607 |
30,664 |
26,925 |
|||
Income from operations |
5,031 |
3,989 |
16,866 |
12,902 |
|||
Other income |
|||||||
Other income (expense) |
(1) |
- |
27 |
9 |
|||
Income before provision for income taxes |
5,030 |
3,989 |
16,893 |
12,911 |
|||
Provision for income taxes |
2,104 |
1,320 |
6,635 |
5,021 |
|||
Net Income |
$ 2,926 |
$ 2,669 |
$ 10,258 |
$ 7,890 |
|||
Net income per share |
|||||||
Basic |
$ 0.26 |
$ 0.24 |
$ 0.91 |
$ 0.71 |
|||
Diluted |
$ 0.25 |
$ 0.23 |
$ 0.88 |
$ 0.69 |
|||
Basic weighted average shares outstanding |
11,010,111 |
10,879,819 |
11,008,095 |
10,833,874 |
|||
Diluted weighted average shares outstanding |
11,292,049 |
11,225,568 |
11,289,185 |
11,137,625 |
|||
Non-GAAP Reconciliation |
|||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||
2015 |
2014 |
2015 |
2014 |
||||
Net Income |
$ 2,926 |
$ 2,669 |
$ 10,258 |
$ 7,890 |
|||
Excluding: |
|||||||
Provision for income taxes |
2,104 |
1,320 |
6,635 |
5,021 |
|||
Depreciation and amortization |
433 |
392 |
1,692 |
1,543 |
|||
Stock-based compensation expense |
344 |
344 |
1,552 |
1,241 |
|||
Adjusted EBITDA |
$ 5,807 |
$ 4,725 |
$ 20,137 |
$ 15,695 |
|||
Adjusted diluted earnings per share |
$ 0.50 |
$ 0.41 |
$ 1.73 |
$ 1.36 |
|||
Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company's current financial performance. |
OTC MARKETS GROUP INC. |
|||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(in thousands, except share information) |
|||
(Unaudited) |
|||
December 31, |
December 31, |
||
2015 |
2014 |
||
Assets |
|||
Current assets |
|||
Cash |
$ 23,925 |
$ 20,272 |
|
Accounts receivable, net of allowance for doubtful accounts of $147 and $130 |
6,082 |
5,674 |
|
Prepaid expenses and other current assets |
22 |
1,395 |
|
Prepaid income taxes |
1,520 |
523 |
|
Deferred tax assets |
187 |
177 |
|
Total current assets |
31,736 |
28,041 |
|
Property and equipment, net |
3,507 |
4,357 |
|
Non-current deferred tax assets, net |
470 |
277 |
|
Goodwill |
251 |
251 |
|
Intangible assets, net |
40 |
40 |
|
Security deposits |
210 |
210 |
|
Total Assets |
$ 36,214 |
$ 33,176 |
|
Liabilities and stockholders' equity |
|||
Current liabilities |
|||
Accounts payable |
$ 616 |
$ 562 |
|
Income taxes payable |
92 |
- |
|
Accrued expenses and other current liabilities |
4,355 |
3,888 |
|
Deferred revenue |
12,737 |
9,521 |
|
Total current liabilities |
17,800 |
13,971 |
|
Deferred rent |
139 |
391 |
|
Income tax reserve |
728 |
563 |
|
Total Liabilities |
18,667 |
14,925 |
|
Commitments and contingencies |
|||
Stockholders' equity |
|||
Common stock - par value $0.01 per share |
|||
Class A - 14,000,000 authorized, 11,438,928 issued, 11,192,885 outstanding at |
|||
December 31, 2015; 11,310,364 issued, 11,122,541 outstanding at December 31, 2014 |
114 |
113 |
|
Class C - 130,838 shares authorized, issued and outstanding at December 31, 2015 |
|||
and December 31, 2014 |
1 |
1 |
|
Additional paid-in capital |
10,786 |
8,838 |
|
Retained earnings |
8,916 |
10,752 |
|
Treasury stock - 246,043 shares at December 31, 2015 and 187,823 shares at December 31, 2014 |
(2,270) |
(1,453) |
|
Total Stockholders' Equity |
17,547 |
18,251 |
|
Total Liabilities and Stockholders' Equity |
$ 36,214 |
$ 33,176 |
|
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SOURCE OTC Markets Group Inc.
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