OTC Markets Group Announces Third Quarter 2017 Financial Results

Financial Highlights

• Gross revenues increased $1.0 million, or 8% over the prior year quarter, to $13.6 million.
• $895 thousand, or 19%, increase in Corporate Services revenues, largely driven by significant growth in companies joining the OTCQB Venture market and price increases related to the OTCQX market.
• Revenues from OTC Link® ATS declined $117 thousand, or 5%, to $2.4 million, reflecting a continued decline in the number of active market participants, decreases in the number of OTC Dealer® users at our remaining broker-dealer subscribers as well as reduced quote volumes.
• Market Data Licensing revenues were up $231 thousand, or 4%, primarily a result of significant growth in the number of non-professional users consuming our market data as well as the impact of price increases and strong sales related to certain data license products.
• Operating expenses increased $791 thousand, or 10%, to $8.4 million, primarily due to quarter over quarter increases in compensation costs and information technology costs.
• Income from operations increased $191 thousand, or 4%, to $4.6 million.
• Net income increased $482 thousand, or 16%, to $3.5 million, due to the increase in operating income as well as a decrease in the company's effective tax rate for the quarter from 32% to 24%. The decrease in the effective tax rate was the result of discrete, one-time benefits recognized from amending prior year federal tax returns to claim a deduction against qualifying income pursuant to the "Domestic Production Activities Deduction" and to claim the lower rate of Corporate Tax available in New York state to entities who meet the criteria of a "Qualifying Emerging Technology Company".
• Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased $92 thousand, or 2%, to $5.3 million, or $0.45 per adjusted diluted share.

Business Developments and News

• Announced that Hawaii state regulations recognize the OTCQX and OTCQB markets as securities manuals for the purposes of its state "Blue Sky Manual Exemption", and that secondary transactions on OTCQX and OTCQB are exempt under existing Pennsylvania law. Hawaii and Pennsylvania bring the total number of states recognizing the OTCQX Market to 27 and the total recognizing the OTCQB Market to 24. This marks continued progress in respect of the initiative, which began in May 2016, and had the objective of achieving Blue Sky recognition for secondary trading activities on our OTCQX and OTCQB markets.
• The Transfer Agent Verified Shares Program, launched in October 2016, provides investors with current and reliable share data on OTCQX, OTCQB and Pink securities. As of October 31, 2017, 15 transfer agents have joined the program, including Continental Stock Transfer & Trust and Broadridge Financials Solutions Inc, providing timely data that improves the availability and accuracy of share information for companies on the OTCQX, OTCQB and Pink markets.
• On October 2, 2017, announced a Strategic Alliance with the Canadian Securities Exchange, a Canadian listing exchange. This first-of-its-kind North American capital and visibility solution is designed to offer a new program for issuers looking for an efficient IPO experience in Canada and cost-effective access to North American investors.
• OTC Link LLC filed the requisite Form ATS with the Securities and Exchange Commission to establish "OTC Link ECN", an Electronic Communications Network that will function as a matching engine and router for certain OTC securities. OTC Link ECN is expected to launch in the fourth quarter of 2017.
• On November 1, 2017, announced a Strategic Alliance with Issuer Direct Corporation, (NYSE American: ISDR), a provider of communications and compliance solutions to small corporate issuers. The Strategic Alliance positions the Company to offer a premier suite of cost effective news, communications, compliance and investor relations services.

Dividend Declaration – Quarterly Cash Dividend

OTC Markets Group announced today that its Board of Directors authorized and approved two dividends on its Class A Common Stock: a special cash dividend of $0.60 per share and a quarterly cash dividend of $0.14 per share.  The special dividend is payable on December 6, 2017 to stockholders of record on November 22, 2017.  The ex-dividend date is November 21, 2017.  The quarterly cash dividend is payable on December 21, 2017 to stockholders of record on December 7, 2017. The ex-dividend date is December 6, 2017.

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.

Third Quarter 2017 Conference Call

The Company will host a conference call on Thursday, November 9, 2017, 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: 1-888-567-1602 (Domestic); 1-404-267-0373 (International);

Replay Dial-in Numbers (Available until November 23, 2017): 1-877-481-4010 (Domestic); 1-919-882-2331 (International); Replay Pin Number:  22418

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 Quarterly Report for the period ended September 30, 2017 is available publicly at www.otcmarkets.com.

About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 10,000 U.S. and global securities.  Through OTC Link® ATS, we connect a diverse network of broker-dealers that provide liquidity and execution services.  We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

To learn more about how we create better informed and more efficient 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: ir@otcmarkets.com

OTC MARKETS GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
	Three Months Ended September 30,
	2017			2016
Gross revenues	$	13,622		$ Werbung Mehr Nachrichten zur Issuer Direct Corp Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 04:49 - PR Newswire Norges Bank - Form 8.3 - BHP Group Limited 02:00 - PR Newswire Fidelity Special Values Plc - Half-year Report Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59