OTC Markets Group Reports Consolidated Unaudited Earnings Results for the Third Quarter and Nine Months Ended Sep. 30, 2013; Appoints Neal Wolkoff as Non-Executive Chairman; Declares Quarterly Cash Dividend on Class A Common Stock Payable on December 26, 2013
November 13, 2013 at 04:00 am IST
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OTC Markets Group Inc. reported consolidated unaudited earnings results for the third quarter and nine months ended Sep. 30, 2013. For the quarter, the company reported net revenues of $8,483,000 compared with $8,229,000 for the same period last year. Income from operations was $2,260,000 compared with $1,866,000 for the same period last year. Income before provision for income taxes was $2,261,000 compared with $1,888,000 for the same period last year. Net income was $1,432,000 or $0.13 basic and diluted per share compared with $1,154,000 or $0.11 basic and diluted per share for the same period last year. Adjusted EBITDA was $2,909,000 compared with $2,540,000 for the same period last year. Adjusted diluted earnings per share were $0.27 compared to $0.24 a year ago. The increase in income from operations and expansion of operating profit margin was primarily attributable to the increases in market data license revenue and decreases in marketing and advertising expenses and consulting fees. Adjusted EBITDA increased primarily due to an increase in income from operations during the third quarter of 2013
For the nine months, the company reported net revenues of $25,118,000 compared with $24,734,000 for the same period last year. Income from operations was $5,865,000 compared with $6,462,000 for the same period last year. Income before provision for income taxes was $5,860,000 compared with $6,493,000 for the same period last year. Net income was $4,065,000 or $0.37 basic and diluted per share compared with $3,898,000 or $0.36 basic and diluted per share for the same period last year. Adjusted EBITDA was $7,951,000 compared with $8,439,000 for the same period last year. Adjusted diluted earnings per share were $0.74 compared to $0.80 a year ago. The decrease in income from operations was primarily attributable to the increases in headcount and costs associated with the updated data center. The decrease in Adjusted EBITDA was due to the decrease in operating income during the period.
The company announced that on November 11, 2013, the company's Board of Directors appointed Neal Wolkoff as non-executive Chairman. Mr. Wolkoff is a former executive of three exchanges and an independent business consultant focusing on futures and securities markets, exchanges, market regulation, operations and clearinghouses. From 2008 to February 2012, Mr. Wolkoff was the Chief Executive Officer of ELX Futures, L.P. Mr. Wolkoff is a non-executive director of World Gold Trust Services, the sponsor of the Exchange Traded Fund 'GLD'. Mr. Wolkoff is also a member of the not-for-profit board of The Golda Och Academy in West Orange, NJ.
The company announced that its Board of Directors authorized a quarterly cash dividend on its class A common stock of $0.06 per share. The dividend is payable on December 26, 2013 to stockholders of record on December 12, 2013. The ex-dividend date is December 10, 2013.
OTC Markets Group Inc. operates regulated markets for trading 12,000 United States and international securities. The Companyâs three public markets include OTCQX Best Market, OTCQB Venture Market and Pink Open Market. It operates three business lines: OTC Link, Market Data Licensing, and Corporate Services. Its wholly owned subsidiary, OTC Link LLC, operates OTC Link ATS, OTC Link ECN, and OTC Link NQB, each a Securities and Exchange Commission (SEC)-regulated alternative trading system (ATS). Market Data Licensing distributes market data and financial information. Corporate Services operates the OTCQX and OTCQB markets and offers issuers disclosure and regulatory compliance products. It provides critical infrastructure to the United States financial markets, connecting brokers, organizing markets, and incentivizing disclosure. Its market data provides price transparency, assists regulated entities in meeting their compliance obligations, and enables informed investment decisions.
OTC Markets Group Reports Consolidated Unaudited Earnings Results for the Third Quarter and Nine Months Ended Sep. 30, 2013; Appoints Neal Wolkoff as Non-Executive Chairman; Declares Quarterly Cash Dividend on Class A Common Stock Payable on December 26, 2013