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28.06.17
ROUNDUP/Aktien New York Schluss: Dow fester - Stresstest-​Zuversicht bei Banken

TMX Group Limited Reports Results for the Full Year and Fourth Quarter 2016

Montag, 13.02.2017 20:41 von

Canada NewsWire

  • Record full year revenue of $742.0 million in 2016, up 3% compared with 2015

  • Record full year diluted earnings per share of $3.58, compared with diluted loss per share of 96 cents in 2015

  • Record full year adjusted diluted earnings per share of $4.47 in 2016, up 23% compared with $3.64 in 2015

  • Revenue of $189.4 million in Q4/16, up 7% from $177.1 million in Q4/15

  • Diluted earnings per share of 95 cents in Q4/16, compared with diluted loss per share of $2.92 in Q4/15 

  • Adjusted diluted earnings per share of $1.18 in Q4/16, up 36% compared with 87 cents per share in Q4/15

TORONTO, Feb. 13, 2017 /CNW/ - TMX Group Limited [TSX:X] ("TMX Group") today announced results for the full year and fourth quarter ended December 31, 2016.

Commenting on 2016 and looking towards the future, Lou Eccleston, Chief Executive Officer of TMX Group, said:

"In 2016, in the midst of profound evolutionary change at TMX, we were able to return the company to profitable growth, achieving both record revenue and earnings while continuing to pay down significant amounts of debt.  Looking at 2017 and beyond, we will continue to keep our clients and shareholders as our priorities.  We are prepared for future competitive challenges, will continue to pursue innovative ways to grow, deploy new technology solutions and work to further unlock the power of our diversified assets."

Commenting on operating performance in Q4/16, John McKenzie, Chief Financial Officer of TMX Group, said:

"In Q4/16 we experienced overall growth of 7% in revenue with increases across our business.  Our continued success in controlling costs is reflected in the 10% year over year decline in operating expenses before strategic realignment costs.  We delivered diluted earnings per share of $0.95 in Q4/16 compared with a diluted loss per share of $2.92 in Q4/15 reflecting a decrease in impairment charges and improved operating performance.  With the leverage in our business model, we delivered 36% growth in adjusted diluted earnings per share.

As an update on our initiative to transform the organization, we realized approximately $13 million in net cost savings on a run rate basis by the end of 2016, exceeding our target of $8 to $10 million per year.  This largely reflects the acceleration of the process of streamlining the organization.  While there will be some additional savings in 2017, we expect most of these savings will be offset by the costs associated with new employees that continue to be hired as we invest in our strategy.  For the full program, we still expect to achieve the overall target of $11 to $15 million in net cost savings per year on a run rate basis as we exit 2017.  In addition, as part of the organizational transformation, which is allowing us to focus on our core businesses, we also announced the divestiture of Razor Risk".

RESULTS OF OPERATIONS

Non-IFRS Financial Measures

Adjusted earnings per share and adjusted diluted earnings per share provided for the quarters and years ended December 31, 2016 and December 31, 2015 are non-IFRS measures and do not have standardized meanings prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other companies.  We present adjusted earnings per share and adjusted diluted earnings per share to indicate ongoing financial performance from period to period, exclusive of a number of adjustments.  These adjustments include amortization of intangibles related to acquisitions, non-cash impairment charges, increase/decrease in net deferred income tax liabilities resulting from changes in Alberta and Quebec corporate income tax rates and strategic re-alignment expenses.  Management uses these measures, and excludes certain items, because it believes doing so results in a more effective analysis of underlying operating and financial performance, including, in some cases, our ability to generate cash.  Excluding these items also enables comparability across periods.  The exclusion of certain items does not imply that they are non-recurring or not useful to investors. 

Additional IFRS Measures

Income from operations before strategic re-alignment expenses and income from operations are important indicators of TMX Group's ability to generate liquidity through operating cash flow to fund future working capital needs, service outstanding debts and fund future capital expenditures.  The intent of these performance measures is to provide additional useful information to investors and analysts; however, these measure should not be considered in isolation.

BOX (BOX Holdings)

In January 2015, BOX launched a program to incent subscribers to provide liquidity.  In exchange for providing this liquidity and a nominal cash payment, subscribers received volume performance rights (VPRs), which are comprised of Class C units of BOX and an order flow commitment. The VPRs vest over 20 quarters of the 5-year order flow commitment period if minimum volume targets are achieved. If a subscriber fails to meet its minimum volume targets, its VPRs are available for reallocation to those subscribers that exceed their minimum volume targets, if any.  Those VPRs may vest earlier.  In September 2015, the VPR program was granted regulatory approval by the Securities Exchange Commission (SEC).  Pursuant to the terms of the VPR program, subscribers became entitled to immediate economic participation in BOX for VPRs held.

As of July 1, 2016, we determined that we did not hold majority voting power on the board of directors as Class C units in certain vested VPRs became entitled to vote at board meetings.  As of this date, we no longer consolidated BOX as we ceased to hold the majority of voting power on the board of directors and exercise control.  As a result, our financial results from July 1, 2016 forward do not include the results of BOX other than our share of BOX's net income (loss), which is reflected in Net income (loss) from equity accounted investees.  For periods prior to July 1, 2016 our financial results include the results from BOX on a consolidated basis.

Effective July 1, 2016, Derivatives revenue also includes revenue from licensing SOLA technology and providing other services to BOX.  This revenue was previously eliminated when BOX's operating results were consolidated in our financial statements.

Three Months Ended December 31, 2016 Compared with Three Months Ended December 31, 2015

The information below reflects the financial statements of TMX Group for the quarter ended December 31, 2016  (Q4/16) compared with the quarter ended December 31, 2015 (Q4/15).






(in millions of dollars, except per share amounts)

(unaudited)

Q4/16

Q4/15

$ increase/
(decrease)

% increase/
(decrease)

Revenue

$189.4

$177.1

$12.3

7%

Operating expenses before strategic re-alignment expenses

104.8

116.6

(11.7)

(10)%

Income from operations before strategic re-alignment expenses1

84.6

60.5

24.1

40%

Strategic re-alignment expenses

8.2

(8.2)

(100)%

Income from operations2

84.6

52.3

32.3

62%

Net income/(loss) attributable to TMX Group shareholders

52.6

(159.0)

211.6

n/a






Earnings/(loss) per share3






Basic                                   

0.96

(2.92)

3.88

n/a


Diluted

0.95

(2.92)

3.87

n/a

Adjusted Earnings per share4






Basic

1.19

0.87

0.32

37%


Diluted

1.18

0.87

0.31

36%






Cash flows from operating activities

77.7

48.6

29.1

60%

 

Net income attributable to TMX Group shareholders

Net income attributable to TMX Group shareholders in Q4/16 was $52.6 million, or 96 cents per common share on a basic basis and 95 cents on a diluted basis, compared with a net loss of $159.0 million, or $2.92 per common share on a basic and diluted basis, for Q4/15.  In Q4/15, there was a net loss attributable to TMX Group shareholders driven by non-cash impairment charges related to Capital Formation (Listings), Equities Trading and Derivatives (BOX) and other assets of $215.8 million ($194.0 million after tax, net of NCI).  In Q4/16, we recorded impairment charges of $8.9 million ($8.9 million after tax) relating to TMX Atrium and AgriClear.  The increase in net income in Q4/16 over Q4/15 also reflected higher revenue, lower operating expenses before strategic re-alignment expenses and lower strategic re-alignment expenses. During Q4/16, we recorded a non-cash income tax adjustment relating to a change in the Quebec corporate income tax rate of approximately $3.2 million, which reduced income tax expense.

_____________________________

1

Income from operations before strategic re-alignment expenses is an additional IFRS measure.  See discussion under the heading "Additional IFRS Measures".

2

Income from operations is an additional IFRS measure.  See discussion under the heading "Additional IFRS Measures".

3

 Earnings per share information is based on net income attributable to TMX Group shareholders.

4

Adjusted earnings per share is a non-IFRS measure.  See discussion under the heading "Non- IFRS Financial Measures".

 

Adjusted Earnings per Share5 Reconciliation for  Q4/16 and Q4/15

The following is a reconciliation of earnings (loss) per share to adjusted earnings per share:





Q4/16

Q4/15

(unaudited)

Basic

Diluted

Basic

Diluted

Earnings / (loss) per share

$0.96

$0.95

($2.92)

($2.92)

Adjustments related to:






Amortization of intangibles related to acquisitions

0.13

0.13

0.11

0.11


Non-cash impairment charges

0.16

0.16

3.57

3.57


Decrease in net deferred income tax liabilities resulting from change in Quebec corporate income tax rate

(0.06)

(0.06)


Strategic re-alignment expenses

0.11

0.11

Adjusted earnings per share

$1.19

$1.18

$0.87

$0.87

Weighted average number of common shares outstanding

54,966,731

55,433,196

54,385,391

54,393,663

 

Adjusted diluted earnings per share increased by 36% from 87 cents in Q4/15 to $1.18 in Q4/16.  The increase in adjusted earnings per share in Q4/16 over Q4/15 reflected higher revenue, lower operating expenses before strategic re-alignment expenses, excluding amortization of intangibles related to acquisitions and lower strategic re-alignment expenses.

_____________________________

5

 Adjusted earnings per share is a non-IFRS measure.  See discussion under the heading "Non- IFRS Financial Measures".  Earnings per share information is based on net income attributable to TMX Group shareholders.

 

Revenue

In 2015, we undertook a strategic realignment of our operations and revised our reporting segments information for the year ended December 31, 2015.  In Q4/16 we further revised operations and our reporting for our Efficient Markets operating segment.  This segment has been separated into Equities and Fixed Income Trading and Clearing and Energy Trading and Clearing.  Effective Q4 2016, we now report revenue in the following categories:

  • Capital formation
  • Equities and Fixed Income Trading and Clearing
  • Derivatives Trading and Clearing
  • Energy Trading and Clearing
  • Market Insights
  • Other (includes Market Solutions, which was previously reported with Efficient Markets)

Certain comparative figures have been reclassified in order to conform with the financial presentation adopted in the current year.  For example, results for Q4/15 have been restated to conform to this new structure.






(in millions of dollars)

Q4/16

Q4/15

$ increase/
(decrease)

% increase/
(decrease)

Capital Formation

$46.6

$38.8

$7.8

20%

Equities and Fixed Income Trading and Clearing

44.7

38.0

6.7

18%

Derivatives Trading and Clearing

28.4

25.8

2.6

10%

Energy Trading and Clearing

13.7

13.7

—%

Market Insights

54.0

58.8

(4.8)

(8)%

Other

2.0

2.0

—%


$189.4

$177.1

$12.3

7%

 

Revenue was $189.4 million in Q4/16, up $12.3 million or 7% compared with $177.1 million in Q4/15.  There were increases in Capital Formation revenue, Equities and Fixed Income Trading and Clearing revenue as well as in Derivatives Trading and Clearing revenue.  The increases in revenue were partially offset by a decline in Market Insights revenue reflecting  a $6.2 million decrease in revenue from Razor Risk.

Capital Formation






(in millions of dollars)

Q4/16

Q4/15

$ increase/
(decrease)

% increase/
(decrease)

Initial listing fees

$3.3

$1.1

$2.2

200%

Additional listing fees

21.7

16.5

5.2

32%

Sustaining listing fees

16.6

17.5

(0.9)

(5)%

Other issuer services

5.0

3.7

1.3

35%


$46.6

$38.8

$7.8

20%

 

  • Initial listing fees on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) for Q4/16 were higher than in Q4/15 reflecting an increase in the number of new issuers listed on TSX.  In addition, there was an increase in the IPO financing dollars raised on TSXV, which contributed to the increase in revenue.
  • Additional listing fees in Q4/16 increased from Q4/15 reflecting an 8% increase in the number of transactions billed on TSX.  In addition, there was an increase in additional listing fees on TSXV reflecting a significant increase in the total number of financings and the total amount of financing dollars raised in Q4/16 compared with Q4/15. The increase in additional listing fee revenue was also attributable to the favourable impact from an increase in the maximum additional listing fee on TSX effective February 1, 2016.
  • Issuers listed on TSX and TSXV pay annual sustaining listing fees primarily based on their market capitalization at the end of the prior calendar year, subject to minimum and maximum fees.  There was a decrease in sustaining listing fees on TSX due to a decrease in the number and market capitalization of issuers at December 31, 2015 compared with December 31, 2014.
  • Other issuer services revenue in Q4/16 was higher compared to Q4/15 reflecting increased revenue from TSX Trust (formerly TMX Equity Transfer Services Inc.).

Equities and Fixed Income Trading and Clearing






(in millions of dollars)

Q4/16

Q4/15

$ increase

% increase

Equities and fixed income trading

$26.5

$20.1

$6.4

32%

Equities and fixed Income - clearing, settlement, depository and other services (CDS)

18.2

17.9

$0.3

2%


$44.7

$38.0

$6.7

18%

 

  • There was an increase in both Equities and fixed income trading revenue in Q4/16 compared with Q4/15.  The overall volume of securities traded on our equities marketplaces increased by 24% (37.1 billion securities in Q4/16 versus 30.0 billion securities in Q4/15).  Volumes on TSX increased by 8% in Q4/16 compared with Q4/15 and volumes on TSXV and TSX Alpha Exchange (Alpha) increased by 69% and 33%, respectively, over the same period.  The increase in revenue was also attributable to the impact of a higher average fee on each of our equity exchanges.
  • Excluding intentional crosses, our combined domestic equities trading market share was 66% in Q4/16, down from 71% in Q4/15.  The decline in market share reflects an increase in trading volume of issues not listed on TSX or TSXV.  The higher fixed income trading revenue reflected increased activity in provincial and Government of Canada Bonds. 
  • CDS revenue increased by 2% from Q4/15 to Q4/16 reflecting an increase in clearing, settlement and international revenue, somewhat offset by the impact from higher rebates and lower depository revenue.

Derivatives Trading and Clearing






(in millions of dollars)

Q4/16

Q4/15

$ increase

% increase


$28.4

$25.8

$2.6

10%

 

  • The increase in Derivatives Trading and Clearing revenue primarily reflects higher revenue from Montréal Exchange (MX) due to increased volumes.  Volumes increased by 23% on MX (24.9 million contracts traded in Q4/16 versus 20.2 million contracts traded in Q4/15).
  • The increase in revenue was somewhat offset by a decrease related to the exclusion of revenue from BOX effective July 1, 2016 when we ceased to consolidate BOX's results from operations.  Partially offsetting this decrease, also effective July 1, 2016, Derivatives Trading and Clearing  revenue includes revenue from licensing SOLA technology and providing other services to BOX.  This revenue was previously eliminated when BOX's operating results were consolidated in our financial statements.  The net reduction in Derivatives Trading and Clearing revenue related to BOX from Q4/15 to Q4/16 was $1.7 million.

Energy Trading and Clearing






(in millions of dollars)

Q4/16

Q4/15

$ increase

% increase


$13.7

$13.7

$—

—%

 

  • Energy Trading and Clearing revenue was unchanged as higher revenue from Natural Gas Exchange (NGX) attributable to higher natural gas volumes  was offset by lower revenue from Shorcan Energy Brokers Inc. (Shorcan Energy Brokers).
  • Total energy volumes were 15% higher compared to Q4/15 at NGX (3.9 million terajoules in Q4/16 compared with 3.4 million terajoules in Q4/15).  Natural gas volumes increased from Q4/15 compared to Q4/16 as market participants took advantage of volatile prices and moved to term activity.  Power volumes in Q4/16 increased over Q4/15 as a result of the impact of a marketing program implemented in U.S. markets and greater activity in term contracts due to market conditions.
  • Partially offsetting the positive impact from increased total energy volumes for NGX, there was an increase in deferred revenue from Q4/15 to Q4/16 reflecting market conditions that drove participants' behavior towards longer-term contracts. 

Market Insights






(in millions of dollars)

Q4/16

Q4/15

$ decrease

% decrease


$54.0

$58.8

$(4.8)

(8)%

 

  • The decrease in Market Insights revenue in Q4/16 compared with Q4/15 reflected a decline of $6.2 million in revenue from Razor Risk.   The decline was somewhat offset by higher revenue recoveries of approximately $1.2 million related to under-reported usage of real-time quotes in prior periods in Q4/16 compared with Q4/15.
  • The average number of professional market data subscriptions for TSX and TSXV products decreased by 5% from Q4/15 to Q4/16 (103,730 professional market data subscriptions in Q4/16 compared with 109,663 in Q4/15).
  • The average number of MX professional market data subscriptions was down 6% from Q4/15 to Q4/16 (18,217 MX professional market data subscriptions in Q4/16 compared with 19,319 in Q4/15).

Operating expenses before strategic re-alignment expenses






(in millions of dollars)

Q4/16

Q4/15

$ (decrease)

% (decrease)

Compensation and benefits

$50.9

$56.0

$(5.1)

(9)%

Information and trading systems

18.2

22.1

(3.9)

(18)%

Selling, general and administration

20.3

21.9

(1.6)

(7)%

Depreciation and amortization

15.4

16.6

(1.2)

(7)%


$104.8

$116.6

$(11.8)

(10)%

 

Operating expenses before strategic re-alignment expenses in Q4/16 were $104.8 million, down $11.8 million or 10%, from $116.6 million in Q4/15.  There were reduced costs related to Razor Risk of approximately $7.7 million and overall lower headcount following our strategic re-alignment initiative.  In addition, there were lower operating expenses related to circuits, infrastructure, projects and occupancy as well as Depreciation and Amortization.  Effective July 1, 2016, we excluded operating expenses related to BOX when we ceased to consolidate BOX's results from operations.  The decreases in costs were partially offset by higher employee performance incentive plan costs.

Compensation and benefits






(in millions of dollars)

Q4/16

Q4/15

$ (decrease)

% (decrease)


$50.9

$56.0

$(5.1)

(9)%

 

  • Compensation and benefits costs decreased in Q4/16 reflecting reduced costs related to Razor Risk  of approximately $7.2 million, lower overall headcount compared with Q4/15, a higher capitalization of labour costs and the exclusion of BOX costs effective July 1, 2016 when we ceased to consolidate BOX's results from operations.
  • These decreases were partially offset by higher employee performance incentive plan costs in Q4/16 compared with Q4/15.
  • There were 1,075 TMX Group employees at December 31, 2016 versus 1,187 employees at December 31, 2015 reflecting both a reduction in headcount due to our strategic realignment initiative and the sale of Razor Risk, which employed approximately 30 people.

Information and trading systems






(in millions of dollars)

Q4/16

Q4/15

$ (decrease)

% (decrease)


$18.2

$22.1

$(3.9)

(18)%

 

  • Information and trading systems expenses decreased in Q4/16 compared with Q4/15 reflecting lower circuit, infrastructure and project costs as well as the exclusion of BOX costs effective July 1, 2016 when we ceased to consolidate BOX's results from operations.  There was also a decrease in costs related to Razor Risk.

Selling, general and administration






(in millions of dollars)

Q4/16

Q4/15

$ (decrease)

% (decrease)


$20.3

$21.9

$(1.6)

(7)%

 

  • Selling, general and administration expenses decreased in Q4/16 compared with Q4/15 primarily due to lower occupancy and Razor Risk costs somewhat offset by higher bad debt and marketing expenses as well as external fees mainly related to clearing house platform consolidation.

Depreciation and amortization






(in millions of dollars)

Q4/16

Q4/15

$ (decrease)

% (decrease)


$15.4

$16.6

$(1.2)

(7)%

 

  • Lower Depreciation and amortization costs reflect a reduction in amortization related to BOX effective July 1, 2016 when we ceased to consolidate BOX's results from operations and to intangible assets that were fully amortized.
  • The Depreciation and amortization costs in Q4/16 of $15.4 million included $8.5 million related to amortization of intangibles related to acquisitions (13 cents per basic and diluted share).  The Depreciation and amortization costs in Q4/15 of $16.6 million included $9.3 million ($8.8 million, net of NCI) related to amortization of intangibles related to acquisitions (11 cents per basic and diluted share).

Additional Information

Strategic re-alignment expenses





Q4/16

Q4/15

(in millions of dollars, except per share amounts)

Pre-tax Amount

Basic and Diluted
Earnings per
Share Impact

Pre-tax Amount

Basic and Diluted
Earnings per
Share Impact

Severance and related costs

$—

$—

$7.9

$0.11

Professional and consulting fees and other charges

0.3

Strategic re-alignment expenses

$—

$—

$8.2

$0.11

 

  • We did not incur any additional strategic re-alignment expenses in Q4/16. 
  • In September 2016, we provided a detailed update on the progress made in streamlining our organization.  We determined that further headcount reductions would result in severance and related strategic re-alignment costs of $15.0 to $17.0 million.  We incurred $16.5 million of severance and related strategic re-alignment costs in Q3/16, which was in line with our estimate.

Impairment charges






(in millions of dollars)

Q4/16

Q4/15

$ (decrease)

% (decrease)


$8.9

$215.8

$(206.9)

(96)%

 

  • In Q4/16 we determined that the fair value of TMX Atrium and AgriClear were below their carrying value, resulting in impairment charges of $8.9 million.
  • In accounting for the Maple Transaction6 , all of our assets were recorded based on their estimated fair value in Q3/12, resulting in a significant amount of goodwill and intangible assets being recognized at the time.  As a result of annual testing of intangibles and goodwill in Q4/15 we determined that Capital Formation (Listings), Equities trading, Derivatives (BOX) and other assets had recoverable amounts less than their carrying amounts.  In Q4/15 we recognized a non-cash impairment charge of $215.8 million ($3.57 per basic and diluted share) related to goodwill and intangible assets.

Net finance costs






(in millions of dollars)

Q4/16

Q4/15

$ (decrease)

% (decrease)


$6.7

$9.2

$(2.5)

(27)%

 

_____________________________

6

 TMX Group Limited (formerly Maple Group Acquisition corporation of Maple) completed the acquisition of TMX Group Inc. on September 14, 2012 and the acquisition of CDS and Alpha Trading Systems Inc. and Alpha Trading System Limited Partnership (collectively, Alpha) on August 1, 2012 (collectively, the Maple Transaction).

 

  • The decrease in net finance costs from Q4/15 to Q4/16 is primarily attributable to lower interest rates and reduced levels of debt.  There were also lower losses related to the mark-to-market of interest rate swaps in Q4/16 compared to Q4/15.

    Income tax expense and effective tax rate                         




Income Tax Expense (in millions of dollars)


Effective Tax Rate (%)

Q4/16

Q4/15


Q4/16

Q4/15

$16.5

$3.0


24%

n/a

 

Q4/16

  • In Q4/16, the Quebec corporate income tax rate decreased from 11.9% to 11.5% (over four years) effective January 1 of each year, starting January 1, 2017.  As a result of this change, there was a decrease in the value of net deferred income tax liabilities and a corresponding non-cash net decrease in deferred income tax expense of approximately $3.2 million.
  • In Q4/16, we incurred non-cash impairment charges of $8.9 million as well as a loss on the sale of Razor Risk of $0.8 million.  On a net basis, the related tax impact increased our effective tax rate for Q4/16.  
  • Excluding adjustments, primarily relating to the items noted above, the effective tax rate would have been approximately 27% for Q4/16.

Q4/15

  • Excluding the tax impact related to non-cash impairment charges in Q4/15 of $215.8 million, the effective tax rate would have been approximately 27% for Q4/15.

Net loss attributable to non-controlling interests





(in millions of dollars)

Q4/16

Q4/15

$ (decrease)


$—

$15.9

$(15.9)

 

  • As of July 1, 2016, we no longer consolidated BOX Holdings as we ceased to hold the majority of voting power on the board of directors and exercise control.  As a result our financial results from July 1, 2016 forward do not include the results of BOX and our share of BOX's net income (loss), is reflected in Net income from equity accounted investees in our financial statementsFor periods prior to July 1, 2016 our financial results include the results from BOX on a consolidated basis and we reported the net income (loss) attributable to non-controlling interests.

Summary of Cash Flows Q4/16 compared with Q4/15 





(in millions of dollars)

Q4/16

Q4/15

$ increase/
(decrease) in cash

Cash flows from operating activities

$77.7

$48.6

$29.1

Cash flows (used in) financing activities

(89.3)

(105.7)

16.4

Cash flows (used in)/from investing activities

(7.3)

19.1

(26.4)

 

  • In Q4/16, Cash flows from operating activities  were higher than in Q4/15 primarily due to increased income from operations (excluding depreciation and amortization) and increased cash from trade and other payables, somewhat offset by decreased cash from trade and other receivables, and prepaid expenses.
  • In Q4/16, Cash flows used in financing activities were lower than in Q4/15.  In Q4/15, there were net repayments on liquidity facilities of $29.0 million compared with net drawings on liquidity facilities of $3.5 million in Q4/16.  In addition, there were higher proceeds from exercised options in Q4/16 compared with Q4/15.  The increases in cash were partially offset by the impact of higher net repayments on our debt and higher dividends paid to equity holders.
  • In Q4/16, there were Cash flows used in investing activities compared with Cash flows from investing activities in Q4/15.  This primarily reflected a net purchase of marketable securities in Q4/16 compared with a net sale of marketable securities in Q4/15.  In addition, there was a decrease in dividends received partially offset by a reduction in cash outlays for additions to premises and equipment and intangible assets in Q4/16 compared with Q4/15.

Year Ended December 31, 2016 Compared with Year Ended December 31, 2015

The information below reflects the financial statements of TMX Group for the year ended December 31, 2016 compared with the year ended December 31, 2015.






(in millions of dollars, except per share amounts)

Year ended
December 31,
2016

Year ended
December 31,
2015

$ increase/
(decrease)

% increase/
(decrease)

Revenue

$742.0

$717.0

$25.0

3%

Operating expenses before strategic re-alignment expenses

422.7

449.6

(26.9)

(6)%

Income from operations before strategic re-alignment expenses7

319.3

267.4

51.9

19%

Strategic re-alignment expenses

21.0

22.7

(1.7)

(7)%

Income from operations8

298.3

244.7

53.6

22%

Net income/(loss) attributable to TMX Group shareholders

196.4

(52.3)

248.7

n/a






Earnings/(loss) per share9






Basic

3.60

(0.96)

4.56

n/a


Diluted                            

3.58

(0.96)

4.54

n/a






Adjusted Earnings per share10






Basic

4.49

3.64

0.85

23%


Diluted

4.47

3.64

0.83

23%






Cash flows from operating activities

314.4

250.3

64.1

26%

 

_____________________________

7

Income from operations before strategic re-alignment expenses is an additional IFRS measure.  See discussion under the heading "Additional IFRS Measures".

8

Income from operations is an additional IFRS measure.  See discussion under the heading "Additional IFRS Measures".

9

Earnings per share information is based on net income attributable to TMX Group shareholders.

10

Adjusted earnings per share is a non-IFRS measure.  See discussion under the heading "Non- IFRS Financial Measures".

 

Net income attributable to TMX Group shareholders

Net income attributable to TMX Group shareholders in 2016 was $196.4 million, or $3.60 per common share on a basic basis and $3.58 per common share on a diluted basis, compared with a net loss of $52.3 million, or $0.96 per common share on a basic and diluted basis, for 2015.  In 2015, there was a net loss attributable to TMX Group shareholders driven by non-cash impairment charges related to Capital Formation (Listings), Equity Trading and Derivatives (BOX) and other assets of $221.7 million ($200.0 million after tax, net of NCI).  In 2016, we recorded impairment charges of $8.9 million ($8.9 million after tax) relating to TMX Atrium and AgriClear.  The increase in net income in 2016 over 2015 also reflected higher revenue, lower operating expenses before strategic re-alignment expenses and slightly lower strategic re-alignment expenses.  During 2016, we recorded a non-cash income tax adjustment relating to a change in the Quebec corporate income tax rate of approximately $3.2 million, which reduced income tax expense whereas in 2015 we recorded a similar non-cash income tax adjustment of approximately $7.1 million relating to a change in the Alberta corporate income tax rate, which increased income tax expense.  In addition, we incurred lower net finance costs in 2016 compared with 2015. 

Adjusted Earnings per Share11 Reconciliation for the Year ended December 31, 2016 and Year ended December 31, 2015

The following is a reconciliation of earnings (loss) per share to adjusted earnings per share:





Year ended December 31, 2016

Year ended December 31, 2015

(unaudited)

Basic

Diluted

Basic

Diluted

Earnings / (loss) per share

$3.60

$3.58

($0.96)

($0.96)

Adjustments related to:






Amortization of intangibles related to acquisitions

0.51

0.51

0.50

0.50


Strategic re-alignment expenses

0.28

0.28

0.30

0.30


Non-cash impairment charges

0.16

0.16

3.67

3.67


(Decrease) increase in net deferred income tax liabilities resulting from changes to Quebec and Alberta corporate income tax rates

(0.06)

(0.06)

0.13

0.13

Adjusted earnings per share

$4.49

$4.47

$3.64

$3.64

Weighted average number of common shares outstanding

54,616,160

54,810,538

54,345,595

54,378,411

 

Adjusted diluted earnings per share increased by 23% from $3.64 in 2015 to $4.47 in 2016.  The increase in adjusted diluted earnings per share reflected higher revenue and lower operating expenses, before strategic re-alignment expenses, excluding amortization of intangibles related to acquisitions.  In addition, we incurred lower net finance costs in 2016 compared with 2015. 

_____________________________

11

Adjusted earnings per shares is a Non-IFRS Financial measure.  See discussion under the heading "Non-IFRS Financial Measures".  Earnings per share information is based on net income attributable to TMX Group shareholders.

 

Revenue






(in millions of dollars)

Year ended
December 31,
2016

Year ended
December 31,
2015

$ increase/
(decrease)

% increase/
(decrease)

Capital Formation

$182.9

$179.8

$3.1

2%

Equities and Fixed Income Trading and Clearing

173.5

156.7

16.8

11%

Derivatives Trading and Clearing

117.5

104.5

13.0

12%

Energy Trading and Clearing

55.7

52.3

3.4

7%

Market Insights

211.0

212.8

(1.8)

(1)%

Other

$1.4

$10.9

(9.5)

(87)%


$742.0

$717.0

$25.0

3%

 

Revenue was $742.0 million in 2016, up $25.0 million or 3% compared with $717.0 million in 2015.  There were increases in all revenue categories with the exception of Market Insights and Other revenue.  Markets Insights revenue was reduced by a $12.2 million decline in revenue from Razor Risk.  The decrease in Other revenue was primarily due to recognizing net foreign exchange losses on U.S. dollar and other non-Canadian denominated net monetary assets in 2016 compared with net foreign exchange gains in 2015.  The net unfavourable impact from 2015 to 2016 was approximately $9 million.  Partially offsetting this, there was a favourable impact of approximately $5 million from a weaker Canadian dollar relative to other currencies, including the U.S. dollar, in 2016 versus 2015.  The net unfavourable impact of these two foreign exchange items was approximately $4 million.

Operating expenses before strategic re-alignment expenses






(in millions of dollars)

Year ended
December 31,
2016

Year ended
December 31,
2015

$ (decrease)

% (decrease)

Compensation and benefits

$204.4

$219.2

$(14.8)

(7)%

Information and trading systems

74.2

77.2

(3.0)

(4)%

Selling, general and administration

82.9

84.2

(1.3)

(2)%

Depreciation and amortization

61.2

69.0

(7.8)

(11)%


$422.7

$449.6

$(26.9)

(6)%

 

Operating expenses before strategic re-alignment expenses in 2016 were $422.7 million, down $26.9 million or 6%, from $449.6 million in 2015.  There were reduced costs related to Razor Risk of approximately $15.5 million and overall lower headcount following our strategic re-alignment initiative.  In addition, there were lower operating expenses related to circuits, infrastructure, projects and occupancy as well as Depreciation and Amortization.  Effective July 1, 2016, we excluded operating expenses related to BOX when we ceased to consolidate BOX's results from operations, and there was a decrease in Equicom costs (sold July 2015).  The decreases in costs were partially offset by the write-off of $2.6 million in costs related to discontinued products, higher employee performance incentive plan costs and a lower capitalization of labour costs.  There was also an unfavourable impact from a weaker Canadian dollar relative to other currencies, including the U.S. dollar, in 2016 versus 2015.  The impact was approximately $1 million.

Strategic re-alignment expenses





Year ended December 31, 2016

Year ended December 31, 2015

(in millions of dollars, except per share amounts)

Pre-tax
Amount

Basic and Diluted
Earnings per
Share Impact

Pre-tax
Amount

Basic and Diluted
Earnings per
Share Impact

Severance and related costs

$18.3

$0.24

$18.2

$0.24

Professional and consulting fees and other charges

2.7

0.04

4.5

0.06

Strategic re-alignment expenses

$21.0

$0.28

$22.7

$0.30

 

The decrease in strategic re-alignment expenses from 2015 to 2016 reflected a decrease in amounts paid to consultants and $0.7 million of exit costs related to the sale of Equicom in 2015.  Severance costs in 2016 relate to the initiative we announced in September 2016 (See UPDATE ON INITIATIVES AND REGULATORY CHANGES - Organizational Transformation including Business Integration Initiative in our 2016 Annual MD&A).

FINANCIAL STATEMENTS GOVERNANCE PRACTICE

The Finance & Audit Committee of the Board of Directors of TMX Group reviewed this press release as well as the 2016 audited annual consolidated financial statements and related Management's Discussion and Analysis (MD&A) and recommended they be approved by the Board of Directors.  Following review by the full Board, the 2016 audited annual consolidated financial statements, MD&A and the contents of this press release were approved.

CONSOLIDATED FINANCIAL STATEMENTS

Our 2016 audited annual consolidated financial statements are prepared in accordance with IFRS and are reported in Canadian dollars unless otherwise indicated. Financial measures contained in the MD&A and this press release are based on financial statements prepared in accordance with IFRS, unless otherwise specified and are in Canadian dollars unless otherwise indicated.  TMX Group has filed its 2016 audited annual consolidated financial statements and MD&A with Canadian securities regulators.  These documents may be accessed through www.sedar.com, or on the TMX Group website at www.tmx.com.  We are not incorporating information contained on the website in this press release. In addition, copies of these documents will be available upon request, at no cost, by contacting TMX Group Investor Relations by phone at (416) 947-4277 or by e-mail at TMXshareholder@tmx.com.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This press release of TMX Group contains "forward-looking information" (as defined in applicable Canadian securities legislation) that is based on expectations, assumptions, estimates, projections and other factors that management believes to be relevant as of the date of this press release. Often, but not always, such forward-looking information can be identified by the use of forward-looking words such as "plans", "expects", "is expected", "budget", "scheduled", "targeted", "estimates", "forecasts", "intends", "anticipates", "believes", or variations or the negatives of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved or not be taken, occur or be achieved. Forward-looking information, by its nature, requires us to make assumptions and is subject to significant risks and uncertainties which may give rise to the possibility that our expectations or conclusions will not prove to be accurate and that our assumptions may not be correct.

Examples of forward-looking information in this press release include, but are not limited to, statements related to cost reductions, strategic realignment expenses and TMX Group's business integration initiative, factors relating to stock, derivatives and energy exchanges and clearing houses and the business, strategic goals and priorities, market conditions, pricing, proposed technology and other initiatives, financial results or financial condition, operations and prospects of TMX Group which are subject to significant risks and uncertainties. These risks include: competition from other exchanges or marketplaces, including alternative trading systems and new technologies, on a national and international basis; dependence on the economy of Canada; adverse effects on our results caused by global economic conditions or uncertainties including changes in business cycles that impact our sector; failure to retain and attract qualified personnel; geopolitical and other factors which could cause business interruption; dependence on information technology; vulnerability of our networks and third party service providers to security risks, including cyber attacks; failure to  properly identify or implement our strategies; regulatory constraints; constraints imposed by our level of indebtedness, risks of litigation or other proceedings; dependence on adequate numbers of customers; failure to develop, market or gain acceptance of new products; failure to effectively integrate acquisitions to achieve planned economics or divest under- performing businesses; currency risk; adverse effect of new business activities; not being able to meet cash requirements because of our holding company structure and restrictions on paying  dividends; dependence on third-party suppliers and service providers; dependence of trading operations on a small number of clients; risks associated with our clearing operations; challenges related to international expansion; restrictions on ownership of TMX Group common shares; inability to protect our intellectual property; adverse effect of a systemic market event on certain of our businesses; risks associated with the credit of customers; cost structures being largely fixed; the failure to realize cost reductions in the amount or the time frame anticipated; dependence on market activity that cannot be controlled; the regulatory constraints that apply to the business of TMX Group and its regulated subsidiaries, costs of on exchange clearing and depository services, trading volumes (which could be higher or lower than estimated) and revenues; future levels of revenues being lower than expected or costs being higher than expected.

Forward-looking information is based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions in connection with the ability of TMX Group to successfully compete against global and regional marketplaces; business and economic conditions generally; exchange rates (including estimates of the U.S. dollar-Canadian dollar exchange rate), commodities prices, the level of trading and activity on markets, and particularly the level of trading in TMX Group's key products; business development and marketing and sales activity; the continued availability of financing on appropriate terms for future projects; productivity at TMX Group, as well as that of TMX Group's competitors; market competition; research and development activities; the successful introduction and client acceptance of new products; successful introduction of various technology assets and capabilities; the impact on TMX Group and its customers  of various regulations; TMX Group's ongoing relations with its employees; and the extent of any labour, equipment or other disruptions at any of its operations of any significance other than any planned maintenance or similar shutdowns.

While we anticipate that subsequent events and developments may cause our views to change, we have no intention to update this forward-looking information, except as required by applicable securities law. This forward-looking information should not be relied upon as representing our views as of any date subsequent to the date of this press release.  We have attempted to identify important factors that could cause actual actions, events or results to differ materially from those current expectations described in forward-looking information. However, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and that could cause actual actions, events or results to differ materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. These factors are not intended to represent a complete list of the factors that could affect us.  A description of the above-mentioned items is contained under the heading Risks and Uncertainties in the 2016 Annual MD&A.

About TMX Group (TSX:X)

TMX Group's key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, NGX, Shorcan, Shorcan Energy Brokers, AgriClear and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository services, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montréal, Calgary and Vancouver), in key U.S. markets (New York, Houston) as well as in London, Beijing and Singapore. For more information about TMX Group, visit our website at http://www.tmx.com. Follow TMX Group on Twitter: @TMXGroup.

Teleconference / Audio Webcast

TMX Group will host a teleconference / audio webcast to discuss the financial results for Q4/16.

Time: 8:00 a.m. - 9:00 a.m. ET on Tuesday, February 14, 2017

To teleconference participants: Please call the following number at least 15 minutes prior to the start of the event.

The audio webcast of the conference call will also be available on TMX Group's website at www.tmx.com, under Investor Relations.

Teleconference Number: 647-427-7450 or 1-888-231-8191

Audio Replay: 416-849-0833 or 1-855-859-2056

The passcode for the replay is 43031172

 

TMX GROUP LIMITED                                                                                                

Consolidated Balance Sheets





(In millions of Canadian dollars)




(Unaudited)


December 31, 2016

December 31, 2015

Assets




Current assets:




Cash and cash equivalents


$

240.6

$

154.1

Restricted cash and cash equivalents


66.0

75.4

Marketable securities


61.8

71.2

Trade and other receivables


84.9

79.3

Energy contracts receivable


781.3

418.4

Fair value of open energy contracts


122.8

81.2

Balances with Clearing Members and Participants


16,315.5

11,551.2

Other current assets


16.2

18.8



17,689.1

12,449.6

Non-current assets:




Fair value of open energy contracts


27.4

18.3

Goodwill and intangible assets


4,319.8

4,399.7

Other non-current assets


128.3

118.7

Deferred income tax assets


36.8

31.1

Total Assets


$

22,201.4

$

17,017.4





Liabilities and Equity




Current liabilities:




Trade and other payables


$

77.5

$

80.2

Participants' tax withholdings


66.0

75.4

Energy contracts payable


781.3

418.4

Fair value of open energy contracts


122.8

81.2

Balances with Clearing Members and Participants


16,315.5

11,551.2

Debt


309.9

424.0

Liquidity facilities drawn


4.6

0.2

Other current liabilities


56.0

32.5



17,733.6

12,663.1

Non-current liabilities:




Fair value of open energy contracts


27.4

18.3

Debt


648.7

648.2

Other non-current liabilities


58.0

42.7

Deferred income tax liabilities


813.0

826.8

Total Liabilities


19,280.7

14,199.1





Equity:




Share capital


2,896.4

2,861.7

Contributed surplus


10.3

11.0

Deficit


(5.3)

(106.6)

Accumulated other comprehensive income


19.3

21.9

Total Equity attributable to equity holders of the Company


2,920.7

2,788.0

Non-controlling interests


30.3

Total Equity


2,920.7

2,818.3

Commitments and contingent liabilities




Total Liabilities and Equity


$

22,201.4

$

17,017.4

 

TMX GROUP LIMITED

Consolidated Income (Loss) Statements


(In millions of Canadian dollars,

 except per share amounts)
(Unaudited)

For the three months ended
December 31

For the year ended
December 31

2016

2015

2016

2015






Revenue

$

189.4

$

177.1

$

742.0

$

717.0

REPO interest:






Interest income                                                                      

14.7

8.7

61.7

46.2


Interest expense

(14.7)

(8.7)

(61.7)

(46.2)


Net REPO interest

Total revenue

189.4

177.1

742.0

717.0






Compensation and benefits

50.9

56.0

204.4

219.2

Information and trading systems

18.2

22.1

74.2

77.2

Selling, general and administration

20.3

21.9

82.9

84.2

Depreciation and amortization

15.4

16.6

61.2

69.0

Total operating expenses before strategic re-alignment expenses

104.8

116.6

422.7

449.6






Income from operations before strategic re-alignment expenses

84.6

60.5

319.3

267.4







Strategic re-alignment expenses                                                   

8.2

21.0

22.7







Income from operations

84.6

52.3

298.3

244.7






Net income from equity accounted investees

0.9

0.8

2.4

2.8

Impairment charges

(8.9)

(215.8)

(8.9)

(221.7)

Other (loss) income

(0.8)

0.6

Finance income (costs):






Finance income

0.6

0.4

2.2

2.9


Finance costs

(7.3)

(9.6)

(33.1)

(40.2)


Net finance costs

(6.7)

(9.2)

(30.9)

(37.3)






Income (loss) before income taxes

69.1

(171.9)

261.5

(11.5)






Income tax expense

16.5

3.0

65.8

57.0






Net income (loss)

$

52.6

$

(174.9)

$

195.7

$

(68.5)






Net income (loss) attributable to:





Equity holders of the Company

52.6

(159.0)

$

196.4

$

(52.3)

Non-controlling interests

(15.9)

(0.7)

(16.2)


$

52.6

$

(174.9)

$

195.7

$

(68.5)






Earnings (loss) per share
(attributable to equity holders of the Company):





Basic

$

0.96

$

(2.92)

$

3.60

$

(0.96)

Diluted

$

0.95

$

(2.92)

$

3.58

$

(0.96)

 

TMX GROUP LIMITED

Consolidated Statements of Comprehensive Income (Loss)

(In millions of Canadian dollars)
(Unaudited)

For the three months ended
December 31

For the year ended
December 31


2016

2015

2016

2015






Net income (loss)

$

52.6

$

(174.9)

$

195.7

$

(68.5)






Other comprehensive income (loss):





Items that will not be reclassified to the consolidated income statements:






Actuarial (losses) gains on defined benefit pension and other post-retirement benefit plans

(0.7)

2.6

(0.7)

2.6

Total items that will not be reclassified to the consolidated income statements

(0.7)

2.6

(0.7)

2.6






Items that may be reclassified subsequently to the consolidated income statements:






Unrealized gains (losses) on translating financial statements of foreign operations

1.1

5.0

(5.6)

19.6


Change in fair value of effective portion of interest rate swaps designated as cash flow hedges

0.6

(1.3)


Reclassification to net income of losses on interest rate swaps

1.1

1.0

Total items that may be reclassified subsequently to the consolidated income statements

1.1

5.6

(4.5)

19.3

Total comprehensive income (loss)

$

53.0

$

(166.7)

$

190.5

$

(46.6)











Total comprehensive income (loss) attributable to:





Equity holders of the Company

$

53.0

$

(152.5)

$

193.1

$

(37.1)

Non-controlling interests

(14.2)

(2.6)

(9.5)


$

53.0

$

(166.7)

$

190.5

$

(46.6)

 

TMX GROUP LIMITED

Consolidated Statements of Changes in Equity

(In millions of Canadian dollars)
(Unaudited)

For the year ended December 31, 2016

 

Attributable to equity holders of the Company



Share capital

Contributed
surplus

Accumulated
other
comprehensive
income

Retained
earnings
(deficit)

Total
attributable
to equity
holders

Non-
controlling interests

Total
equity

Balance at January 1, 2016

$

2,861.7

$

11.0

$

21.9

$

(106.6)

$

2,788.0

$

30.3

$

2,818.3









Net income (loss)

196.4

196.4

(0.7)

195.7









Other comprehensive (loss) income:









Foreign currency translation differences

(5.6)

(3.7)

(1.9)

(5.6)

Net change in interest rate swaps designated as cash flow hedges, net of taxes

1.1

1.1

1.1

Actuarial losses on defined benefit pension and other post-retirement benefit plans, net of taxes

(0.7)

(0.7)

(0.7)

Total comprehensive (loss) income

(2.6)

195.7

193.1

(2.6)

190.5

Dividends to equity holders

(90.2)

(90.2)

(90.2)

Dividend to non-controlling interests

(3.4)

(3.4)

Changes to BOX Holdings non-controlling interests

(4.2)

(4.2)

(24.3)

(28.5)

Proceeds from exercised share options

31.6

31.6

31.6

Cost of exercised share options

3.1

(3.1)

Cost of share option plan

2.4

2.4

2.4

Balance at December 31, 2016

$

2,896.4

$

10.3

$

19.3

$

(5.3)

$

2,920.7

$

$

2,920.7

 

TMX GROUP LIMITED

Consolidated Statements of Changes in Equity

(In millions of Canadian dollars)
(Unaudited)


For the year ended December 31, 2015

Attributable to equity holders of the Company

Non-
controlling
interests

Total
equity


Note

Share
capital

Contributed
surplus

Accumulated
other
comprehensive
income

Retained
earnings
(deficit)

Total
attributable to
equity holders

Balance at January 1, 2015


$

2,858.3

$

7.2

$

9.3

$

34.0

$

2,908.8

$

37.1

$

2,945.9










Net loss


(52.3)

(52.3)

(16.2)

(68.5)










Other comprehensive income (loss):








Foreign currency translation differences


12.9

12.9

6.7

19.6

Net change in interest rate swaps designated as cash flow hedges, net of taxes


(0.3)

(0.3)

(0.3)

Actuarial losses on defined benefit pension and other post-retirement benefit plans, net of taxes


2.6

2.6

2.6

Total comprehensive income (loss)

12.6

(49.7)

(37.1)

(9.5)

(46.6)










Dividends to equity holders


(87.0)

(87.0)

(87.0)

Dividend to non-controlling interests


(1.3)

(1.3)

Changes to BOX Holdings non-controlling interests


1.3

(3.9)

(2.6)

4.0

1.4

Proceeds from exercised share options


3.2

3.2

3.2

Cost of exercised share options


0.2

(0.2)

Cost of share option plan


2.7

2.7

2.7

Balance at December 31, 2015


$

2,861.7

$

11.0

$

21.9

$

(106.6)

$

2,788.0

$

30.3

$

2,818.3

 

TMX GROUP LIMITED

Consolidated Statements of Cash Flows

(In millions of Canadian dollars)
(Unaudited)

For the three months ended
December 31

For the year ended
December 31

2016

2015

2016

2015






Cash flows from (used in) operating activities:





Income (loss) before income taxes

$

69.1

$

(171.9)

$

261.5

$

(11.5)

Adjustments to determine net cash flows:






Depreciation and amortization

15.4

16.6

61.2

69.0


Impairment charges and write-offs

8.8

215.8

10.7

221.7


Other income

0.8

(0.6)


Net finance costs

6.7

9.2

30.9

37.3


Net income of equity accounted investees

(0.9)

(0.8)

(2.4)

(2.8)


Cost of share option plan

0.6

0.7

2.4

2.7


Employee defined benefits expense

0.7

3.7

3.5


Unrealized foreign exchange (gains) losses

(0.1)

(0.1)

0.3

(2.4)

Trade and other receivables, and prepaid expenses

(3.9)

16.2

(9.5)

12.2

Trade and other payables

12.3

3.6

1.5

3.4

Provisions

(3.3)

(0.7)

14.0

(1.8)

Deferred revenue

(16.6)

(29.1)

7.7

0.4

Other assets and liabilities

4.9

6.6

7.2

0.6

Cash paid for employee defined benefits

(0.5)

(0.5)

(5.2)

(2.0)

Income taxes paid

(16.3)

(17.0)

(69.0)

(80.0)


77.7

48.6

314.4

250.3






Cash flows from (used in) financing activities:





Interest paid

(13.2)

(14.2)

(31.8)

(33.7)

Net settlement on derivative instruments

(0.5)

(1.1)

(0.6)

Reduction in obligations under finance leases

(0.3)

(0.6)

(1.0)

(2.0)

Proceeds from exercised options

6.6

1.9

31.6

3.2

Dividends paid to equity holders

(24.7)

(21.9)

(90.2)

(87.0)

Dividend paid to non-controlling interests

(3.4)

(1.3)

BOX Holdings purchase of membership units for cancellation

(3.8)

Credit facility refinancing fees

(1.0)

Repayment of debenture

(350.0)

(350.0)

Net movement of Commercial Paper

288.8

(41.4)

235.2

(164.9)

Credit and liquidity facilities drawn

3.5

(29.0)

4.4

(2.0)


(89.3)

(105.7)

(207.3)

(292.1)






Cash flows from (used in) investing activities:





Interest received

0.6

0.4

2.2

2.3

Dividends received

1.6

6.5

1.6

6.5

Additions to premises and equipment and intangible assets, net of grants

(4.6)

(5.5)

(13.5)

(23.7)

Decrease in cash from loss of control of BOX Holdings

 

(17.6)

Other investing activities

(1.4)

0.2

(0.4)

3.2

Marketable securities

(3.5)

17.5

9.4

(11.3)


(7.3)

19.1

(18.3)

(23.0)






(Decrease) increase in cash and cash equivalents

(18.9)

(38.0)

88.8

(64.8)






Cash and cash equivalents, beginning of the period

259.7

191.0

154.1

214.0






Unrealized foreign exchange (losses) gains on cash and cash equivalents held in foreign currencies

(0.2)

1.1

(2.3)

4.9






Cash and cash equivalents, end of the period

$

240.6

$

154.1

$

240.6

$

154.1

 

SOURCE Toronto Stock Exchange