Intercontinental Exchange (NYSE: ICE)

  • Record 2022 net revenues of $7.3 billion, +2% y/y
  • 2022 GAAP diluted EPS of $2.58, down 64% y/y
  • 2022 adj. diluted EPS of $5.30, +5% y/y
  • Record 2022 operating income of $3.6 billion, +5% y/y; Record adj. operating income of $4.3 billion, +4% y/y
  • 2022 operating margin of 50%; adj. operating margin of 59%
  • Record annual operating cash flow of $3.6 billion, +14% y/y; Record adj. free cash flow (FCF) of over $2.9 billion, +3% y/y
  • Announces first quarter 2023 dividend of $0.42/share; an increase of 11% y/y

 

Jeffrey C. Sprecher,
ICE Chair & Chief Executive Officer, said,
"We are pleased to report our 17th consecutive year of record revenues. Amidst a dynamic macroeconomic environment, our strong results reflect the "all-weather" nature of our business model. Our customers continue to rely on our mission-critical data and technology to manage risk and capture workflow efficiencies through an array of macroeconomic environments. As we look to 2023 and beyond, we remain focused on helping to serve our customers' needs and extending our track record of growth."

Intercontinental Exchange (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, today reported financial results for the fourth quarter and full year of 2022. For the quarter ended December 31, 2022, consolidated net income attributable to ICE was $425 million on $1.8 billion of consolidated revenues less transaction-based expenses. Fourth quarter GAAP diluted earnings per share (EPS) was $0.76. Adjusted net income attributable to ICE was $698 million in the fourth quarter and adjusted diluted EPS was $1.25.

For the full year of 2022 consolidated net income attributable to ICE was $1.4 billion on $7.3 billion of consolidated revenues less transaction-based expenses. Full year 2022 GAAP diluted EPS was $2.58, down 64% year-over-year, primarily due to net losses from Bakkt during 2022 and the divestment of Coinbase and deconsolidation of Bakkt during 2021. On an adjusted basis, net income attributable to ICE for the year was $3.0 billion and adjusted diluted EPS was $5.30, up 5% year-over-year.

Please refer to the reconciliation of non-GAAP financial measures included in this press release for more information on our adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS and adjusted free cash flow.

Warren Gardiner, ICE Chief Financial Officer, added: "In 2022, we generated record revenues, record operating income and record operating cash flows. This strong performance, including compounding recurring revenue growth across all three of our business segments, is a testament to the strength of our strategically diversified business model. As we enter 2023, we are well positioned to benefit from numerous near-term cyclical tailwinds as well as longer-term secular trends and remain focused on creating value for stockholders."

Fourth Quarter and Full Year 2022 Business Highlights

Fourth quarter consolidated net revenues were $1.8 billion, down 4% year-over-year, including exchange net revenues of $982 million, fixed income and data services revenues of $537 million and mortgage technology revenues of $249 million. Consolidated operating expenses were $904 million for the fourth quarter of 2022. On an adjusted basis, consolidated operating expenses were $740 million. Consolidated operating income for the fourth quarter was $864 million and the operating margin was 49%. On an adjusted basis, consolidated operating income for the fourth quarter was $1.0 billion and the adjusted operating margin was 58%.

Full year 2022 consolidated net revenues were $7.3 billion, up 2% year-over-year, including exchange net revenues of $4.1 billion, fixed income and data services revenues of $2.1 billion and mortgage technology revenues of $1.1 billion. Consolidated operating expenses were $3.7 billion for 2022. On an adjusted basis, consolidated operating expenses were $3.0 billion. Consolidated operating income for the year was $3.6 billion and the operating margin was 50%. On an adjusted basis, consolidated operating income for the year was $4.3 billion and the adjusted operating margin was 59%.

$ (in millions)

Net Revenue

Op Margin

Adj Op Margin

 

Net Revenue

Op Margin

Adj Op Margin

 

Full Year 2022

 

4Q22

Exchanges

$4,071

70%

72%

 

$982

69%

71%

Fixed Income and Data Services

$2,092

34%

43%

 

$537

36%

44%

Mortgage Technology

$1,129

5%

45%

 

$249

(2)%

39%

Consolidated

$7,292

50%

59%

 

$1,768

49%

58%

 

 

 

 

 

 

 

 

 

FY22

FY21

% Chg

 

4Q22

4Q21

% Chg

Recurring Revenue

$3,721

$3,509

6%

 

$940

$906

4%

Transaction Revenue, net

$3,571

$3,637

(2)%

 

$828

$934

(11)%

Exchanges Segment Results

Fourth quarter exchange net revenues were $982 million, down 3% year-over-year. Exchange operating expenses were $305 million and on an adjusted basis, were $288 million in the fourth quarter. Segment operating income for the fourth quarter was $677 million and the operating margin was 69%. On an adjusted basis, operating income was $694 million and the adjusted operating margin was 71%.

$ (in millions)

4Q22

4Q21

% Chg

Const Curr(1)

Revenue, net:

 

 

 

 

Energy

$278

$336

(17)%

(15)%

Ags and Metals

56

51

9%

11%

Financials(2)

100

113

(12)%

(3)%

Cash Equities and Equity Options

92

89

3%

3%

OTC and Other(3)

103

87

17%

22%

Data and Connectivity Services

226

215

5%

5%

Listings

127

123

3%

3%

Segment Revenue

$982

$1,014

(3)%

(1)%

 

 

 

 

 

Recurring Revenue

$353

$338

5%

5%

Transaction Revenue, net

$629

$676

(7)%

(4)%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 4Q21, 1.3486 and 1.1438, respectively.

(2) Financials include interest rates and other financial futures and options.

(3) OTC & other primarily includes physical energy, interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, technology development fees, exchange member fees, and agriculture grading and certification fees.

Full year exchange net revenues were $4.1 billion, up 6% year-over-year. Exchange operating expenses were $1.2 billion and on an adjusted basis, were $1.1 billion for the full year. Segment operating income for 2022 was $2.9 billion and the operating margin was 70%. On an adjusted basis, operating income was $2.9 billion and the adjusted operating margin was 72%.

$ (in millions)

FY22

FY21

% Chg

Const Curr(1)

Revenue, net:

 

 

 

 

Energy

$1,162

$1,236

(6)%

(4)%

Ags and Metals

235

228

3%

4%

Financials(2)

475

394

21%

30%

Cash Equities and Equity Options

378

355

7%

7%

OTC and Other(3)

429

326

31%

37%

Data and Connectivity Services

877

838

5%

5%

Listings

515

479

7%

7%

Segment Revenue

$4,071

$3,856

6%

8%

 

 

 

 

 

Recurring Revenue

$1,392

$1,317

6%

6%

Transaction Revenue, net

$2,679

$2,539

6%

9%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2021, 1.3762 and 1.1835, respectively.

(2) Financials include interest rates and other financial futures and options.

(3) OTC & other primarily includes physical energy, interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, technology development fees, exchange member fees, and agriculture grading and certification fees.

Fixed Income and Data Services Segment Results

Fourth quarter fixed income and data services revenues were $537 million, up 12% year-over-year. Fixed income and data services operating expenses were $344 million and adjusted operating expenses were $301 million in the fourth quarter. Segment operating income for the fourth quarter was $193 million and the operating margin was 36%. On an adjusted basis, operating income was $236 million and the adjusted operating margin was 44%.

$ (in millions)

4Q22

4Q21

% Chg

Const Curr(1)

Revenue:

 

 

 

 

Fixed Income Execution

$35

$13

181%

182%

CDS Clearing

79

48

63%

66%

Fixed Income Data and Analytics

274

278

(1)%

—%

Other Data and Network Services

149

141

6%

8%

Segment Revenue

$537

$480

12%

13%

 

 

 

 

 

Recurring Revenue

$423

$419

1%

3%

Transaction Revenue

$114

$61

88%

89%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 4Q21, 1.3486 and 1.1438, respectively.

Full year 2022 fixed income and data services revenues were $2.1 billion, up 11% year-over-year. Fixed income and data services operating expenses were $1.4 billion and on an adjusted basis, were $1.2 billion for the year. Segment operating income for the full year was $719 million and the operating margin was 34%. On an adjusted basis, operating income was $899 million and the adjusted operating margin was 43%.

$ (in millions)

FY22

FY21

% Chg

Const Curr(1)

Revenue:

 

 

 

 

Fixed Income Execution

$101

$52

96%

96%

CDS Clearing

305

192

59%

61%

Fixed Income Data and Analytics

1,098

1,082

1%

3%

Other Data and Network Services

588

557

6%

7%

Segment Revenue

$2,092

$1,883

11%

13%

 

 

 

 

 

Recurring Revenue

$1,686

$1,639

3%

4%

Transaction Revenue

$406

$244

66%

69%

(1) Net revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2021, 1.3762 and 1.1835, respectively.

Mortgage Technology Segment Results

Fourth quarter mortgage technology revenues were $249 million. Mortgage technology operating expenses were $255 million and adjusted operating expenses were $151 million in the fourth quarter. Segment operating loss for the fourth quarter was $6 million and the operating margin was (2)%. On an adjusted basis, operating income was $98 million and the adjusted operating margin was 39%.

$ (in millions)

4Q22

4Q21

% Chg

Revenue:

 

 

 

Origination Technology

$172

$231

(25)%

Network and Closing Solutions

42

83

(50)%

Data and Analytics

24

18

31%

Registrations and Other

11

14

(19)%

Segment Revenue

$249

$346

(28)%

 

 

 

 

Recurring Revenue

$164

$149

10%

Transaction Revenue

$85

$197

(57)%

Full year mortgage technology revenues were $1.1 billion. Mortgage technology operating expenses were $1.1 billion and adjusted operating expenses were $618 million in 2022. Segment operating income for the full year was $57 million and the operating margin was 5%. On an adjusted basis, operating income was $511 million and the adjusted operating margin was 45%.

$ (in millions)

FY22

FY21

% Chg

Revenue:

 

 

 

Origination Technology

$758

$971

(22)%

Network and Closing Solutions

229

310

(26)%

Data and Analytics

90

73

24%

Registrations and Other

52

53

(3)%

Segment Revenue

$1,129

$1,407

(20)%

 

 

 

 

Recurring Revenue

$643

$553

16%

Transaction Revenue

$486

$854

(43)%

Other Matters

  • ICE repurchased $632 million of its common stock and paid $853 million in dividends in 2022. In connection with ICE's pending acquisition of Black Knight, on May 4, 2022 ICE suspended its share repurchases.
  • As of December 31, 2022, unrestricted cash was $1.8 billion and outstanding debt was $18.1 billion, including $5.0 billion of Special Mandatory Redemption (SMR) Notes related to the financing of Black Knight.
  • Operating cash flow for 2022 was $3.6 billion, up 14% from $3.1 billion one year ago. 2022 adjusted free cash flow was $2.9 billion, up 3% from one year ago.
  • The effective tax rate for the fourth quarter was 22%.

Financial Guidance

 

GAAP

Non-GAAP

2023 Exchange Recurring Revenue (% growth)

Low-single digits (excluding ~$20 million related to LIBOR cessation)

2023 Fixed Income & Data Services Recurring Revenue (% growth)

Mid-single digits (excluding ~$15 million related to FX and Euronext migration)

2023 Mortgage Technology Recurring Revenue (% growth)

Mid-to-high single digits

2023 Operating Expenses

$3.675 - $3.725 billion

$3.04 - $3.09 billion(1)

1Q23 Operating Expenses

$895 - $905 million

$745 - $755 million(1)

1Q23 Non-Operating Expense(2)

$115 - $125 million

$95 - $100 million

2023 Capital Expenditures

$450 - $500 million

2023 Effective Tax Rate

24% - 26%(3)

1Q23 Weighted Average Shares Outstanding

558 - 564 million shares

(1) 2023 and 1Q23 non-GAAP operating expenses exclude amortization of acquisition-related intangibles and transaction and integration expenses.
(2) Non-operating expense includes interest income, interest expense and net other income/expense. Adjusted non-operating expense excludes equity earnings from unconsolidated investees and net interest on pre-acquisition delated debt.
(3) This represents 2023 full year guidance for both the GAAP and non-GAAP effective tax rates but note that the GAAP effective tax rate is more susceptible to diverging from this guidance based on items outside the normal course of business that are adjusted for to derive our non-GAAP results. Such items can be unknown, unpredictable or uncertain, requiring unreasonable efforts to determine with any precision and which could potentially be confusing or misleading.

Earnings Conference Call Information

ICE will hold a conference call today, February 2, at 8:30 a.m. ET to review its fourth quarter 2022 financial results. A live audio webcast of the earnings call will be available on the company's website at www.theice.com in the investor relations section. Participants may also listen via telephone by dialing 844-200-6205 from the United States or 929-526-1599 from outside of the United States. Telephone participants are required to provide the participant entry number 066516 and are recommended to call 10 minutes prior to the start of the call. The call will be archived on the company's website for replay.

The conference call for the first quarter 2023 earnings has been scheduled for May 4th at 8:30 a.m. ET. Please refer to the Investor Relations website at www.ir.theice.com for additional information.

Historical futures, options and cash ADV, rate per contract, open interest data and CDS cleared information can be found at: https://ir.theice.com/investor-resources/supplemental-information/default.aspx

Consolidated Statements of Income
(In millions, except per share amounts)

 

Twelve Months Ended

December 31,

Three Months Ended

December 31,

Revenues:

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Exchanges

$

6,415

 

$

5,878

 

$

1,591

 

$

1,502

 

Fixed income and data services

 

2,092

 

 

1,883

 

 

537

 

 

480

 

Mortgage technology

 

1,129

 

 

1,407

 

 

249

 

 

346

 

Total revenues

 

9,636

 

 

9,168

 

 

2,377

 

 

2,328

 

Transaction-based expenses:

 

 

 

 

Section 31 fees

 

499

 

 

248

 

 

167

 

 

44

 

Cash liquidity payments, routing and clearing

 

1,845

 

 

1,774

 

 

442

 

 

444

 

Total revenues, less transaction-based expenses

 

7,292

 

 

7,146

 

 

1,768

 

 

1,840

 

Operating expenses:

 

 

 

 

Compensation and benefits

 

1,407

 

 

1,462

 

 

349

 

 

369

 

Professional services

 

131

 

 

159

 

 

30

 

 

35

 

Acquisition-related transaction and integration costs

 

93

 

 

102

 

 

12

 

 

60

 

Technology and communication

 

683

 

 

666

 

 

170

 

 

171

 

Rent and occupancy

 

83

 

 

84

 

 

20

 

 

23

 

Selling, general and administrative

 

226

 

 

215

 

 

60

 

 

52

 

Depreciation and amortization

 

1,031

 

 

1,009

 

 

263

 

 

250

 

Total operating expenses

 

3,654

 

 

3,697

 

 

904

 

 

960

 

Operating income

 

3,638

 

 

3,449

 

 

864

 

 

880

 

Other income (expense):

 

 

 

 

Interest income

 

108

 

 

1

 

 

66

 

 

1

 

Interest expense

 

(616

)

 

(423

)

 

(176

)

 

(102

)

Other income/(expense), net

 

(1,322

)

 

2,671

 

 

(190

)

 

1,330

 

Total other income/(expense), net

 

(1,830

)

 

2,249

 

 

(300

)

 

1,229

 

Income before income tax expense

 

1,808

 

 

5,698

 

 

564

 

 

2,109

 

Income tax expense

 

310

 

 

1,629

 

 

124

 

 

580

 

Net income

$

1,498

 

$

4,069

 

$

440

 

$

1,529

 

Net income attributable to non-controlling interest

 

(52

)

 

(11

)

 

(15

)

 

(2

)

Net income attributable to Intercontinental Exchange, Inc.

$

1,446

 

$

4,058

 

$

425

 

$

1,527

 

 

 

 

 

 

Earnings per share attributable to Intercontinental Exchange, Inc. common stockholders:

 

 

 

 

Basic

$

2.59

 

$

7.22

 

$

0.76

 

$

2.72

 

Diluted

$

2.58

 

$

7.18

 

$

0.76

 

$

2.70

 

Weighted average common shares outstanding:

 

 

 

 

Basic

 

559

 

 

562

 

 

559

 

 

562

 

Diluted

 

561

 

 

565

 

 

560

 

 

565

 

Consolidated Balance Sheets

(In millions)

 

As of

As of

 

December 31, 2022

December 31, 2021

Assets:

 

 

Current assets:

 

 

Cash and cash equivalents

$

1,799

 

$

607

 

Short-term restricted cash and cash equivalents

 

6,149

 

 

1,035

 

Cash and cash equivalent margin deposits and guaranty funds

 

141,990

 

 

145,936

 

Invested deposits, delivery contracts receivable and unsettled variation margin

 

5,382

 

 

4,493

 

Customer accounts receivable, net

 

1,169

 

 

1,208

 

Prepaid expenses and other current assets

 

458

 

 

1,021

 

Total current assets

 

156,947

 

 

154,300

 

Property and equipment, net

 

1,767

 

 

1,699

 

Other non-current assets:

 

 

Goodwill

 

21,111

 

 

21,123

 

Other intangible assets, net

 

13,090

 

 

13,736

 

Long-term restricted cash and cash equivalents

 

405

 

 

398

 

Other non-current assets

 

1,018

 

 

2,246

 

Total other non-current assets

 

35,624

 

 

37,503

 

Total assets

$

194,338

 

$

193,502

 

 

 

 

Liabilities and Equity:

 

 

Current liabilities:

 

 

Accounts payable and accrued liabilities

$

866

 

$

703

 

Section 31 fees payable

 

223

 

 

57

 

Accrued salaries and benefits

 

352

 

 

354

 

Deferred revenue

 

170

 

 

194

 

Short-term debt

 

4

 

 

1,521

 

Margin deposits and guaranty funds

 

141,990

 

 

145,936

 

Invested deposits, delivery contracts payable and unsettled variation margin

 

5,382

 

 

4,493

 

Other current liabilities

 

184

 

 

153

 

Total current liabilities

 

149,171

 

 

153,411

 

Non-current liabilities:

 

 

Non-current deferred tax liability, net

 

3,493

 

 

4,100

 

Long-term debt

 

18,118

 

 

12,397

 

Accrued employee benefits

 

160

 

 

200

 

Non-current operating lease liability

 

254

 

 

252

 

Other non-current liabilities

 

381

 

 

394

 

Total non-current liabilities

 

22,406

 

 

17,343

 

Total liabilities

 

171,577

 

 

170,754

 

Commitments and contingencies

 

 

Redeemable non-controlling interests in consolidated subsidiaries

 

 

 

 

Equity:

 

 

Intercontinental Exchange, Inc. stockholders’ equity:

 

 

Common stock

 

6

 

 

6

 

Treasury stock, at cost

 

(6,225

)

 

(5,520

)

Additional paid-in capital

 

14,313

 

 

14,069

 

Retained earnings

 

14,943

 

 

14,350

 

Accumulated other comprehensive loss

 

(331

)

 

(196

)

Total Intercontinental Exchange, Inc. stockholders’ equity

 

22,706

 

 

22,709

 

Non-controlling interest in consolidated subsidiaries

 

55

 

 

39

 

Total equity

 

22,761

 

 

22,748

 

Total liabilities and equity

$

194,338

 

$

193,502

 

Non-GAAP Financial Measures and Reconciliation

We use non-GAAP measures internally to evaluate our performance and in making financial and operational decisions. When viewed in conjunction with our GAAP results and the accompanying reconciliation, we believe that our presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparison of results because the items described below as adjustments to GAAP are not reflective of our core business performance. These financial measures are not in accordance with, or an alternative to, GAAP financial measures and may be different from non-GAAP measures used by other companies. We use these adjusted results because we believe they more clearly highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our core operating performance. We strongly recommend that investors review the GAAP financial measures and additional non-GAAP information included in our Annual Report on Form 10-K, including our consolidated financial statements and the notes thereto.

Adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income attributable to ICE common stockholders, adjusted diluted earnings per share and adjusted free cash flow for the periods presented below are calculated by adding or subtracting the adjustments described below, which are not reflective of our cash operations and core business performance, and their related income tax effect and other tax adjustments (in millions, except for per share amounts):

Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation

(In millions)

(Unaudited)

 

Exchanges
Segment

 

Fixed Income
and Data
Services
Segment

 

Mortgage
Technology
Segment

 

Consolidated

 

Year Ended
December 31,

 

Year Ended
December 31,

 

Year Ended
December 31,

 

Year Ended
December 31,

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

Total revenues, less transaction-based expenses

$4,071

 

$3,856

 

$2,092

 

$1,883

 

$1,129

 

$1,407

 

$7,292

 

$7,146

Operating expenses

1,209

 

1,333

 

1,373

 

1,354

 

1,072

 

1,010

 

3,654

 

3,697

Less: Amortization of acquisition-related intangibles

67

 

73

 

180

 

180

 

363

 

369

 

610

 

622

Less: Transaction and integration costs

 

59

 

 

 

91

 

39

 

91

 

98

Adjusted operating expenses

$1,142

 

$1,201

 

$1,193

 

$1,174

 

$618

 

$602

 

$2,953

 

$2,977

Operating income

$2,862

 

$2,523

 

$719

 

$529

 

$57

 

$397

 

$3,638

 

$3,449

Adjusted operating income

$2,929

 

$2,655

 

$899

 

$709

 

$511

 

$805

 

$4,339

 

$4,169

Operating margin

70%

 

65%

 

34%

 

28%

 

5%

 

28%

 

50%

 

48%

Adjusted operating margin

72%

 

69%

 

43%

 

38%

 

45%

 

57%

 

59%

 

58%

Adjusted Operating Income, Operating Margin and Operating Expense Reconciliation

(In millions)

(Unaudited)

 

Exchanges
Segment

 

Fixed Income
and Data
Services
Segment

 

Mortgage
Technology
Segment

 

Consolidated

 

Three Months
Ended
December 31,

 

Three Months
Ended
December 31,

 

Three Months
Ended
December 31,

 

Three Months
Ended
December 31,

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

Total revenues, less transaction-based expenses

$982

 

$1,014

 

$537

 

$480

 

$249

 

$346

 

$1,768

 

$1,840

Operating expenses

305

 

356

 

344

 

344

 

255

 

260

 

904

 

960

Less: Amortization of acquisition-related intangibles

17

 

17

 

43

 

44

 

92

 

92

 

152

 

153

Less: Transaction and integration costs

 

47

 

 

 

12

 

11

 

12

 

58

Adjusted operating expenses

$288

 

$292

 

$301

 

$300

 

$151

 

$157

 

$740

 

$749

Operating income/(loss)

$677

 

$658

 

$193

 

$136

 

$(6)

 

$86

 

$864

 

$880

Adjusted operating income

$694

 

$722

 

$236

 

$180

 

$98

 

$189

 

$1,028

 

$1,091

Operating margin

69%

 

65%

 

36%

 

28%

 

(2)%

 

25%

 

49%

 

48%

Adjusted operating margin

71%

 

71%

 

44%

 

38%

 

39%

 

55%

 

58%

 

59%

Adjusted Net Income Attributable to ICE and EPS

(In millions)

 

Twelve Months
Ended
12/31/2022

 

Twelve Months
Ended
12/31/2021

Net income attributable to ICE common stockholders

$

1,446

 

 

$

4,058

 

Add: Amortization of acquisition-related intangibles

 

610

 

 

 

622

 

Add: Transaction and integration costs

 

91

 

 

 

98

 

Less: Gain on sale and fair value adjustment of equity

investments and dividends received

 

(41

)

 

 

(1,321

)

Less: Gain on deconsolidation of Bakkt

 

 

 

 

(1,419

)

Add: Net losses from and impairment of unconsolidated investees

 

1,340

 

 

 

42

 

Add: Net interest expense on pre-acquisition-related debt and debt extinguishment

 

89

 

 

 

4

 

Add: Other

 

9

 

 

 

9

 

Add/(Less): Income tax effect for the above items

 

(579

)

 

 

587

 

Add: Deferred tax adjustments on acquisition-related intangibles

 

9

 

 

 

183

 

Adjusted net income attributable to ICE common stockholders

$

2,974

 

 

$

2,863

 

 

 

 

 

Diluted earnings per share attributable to ICE common stockholders

$

2.58

 

 

$

7.18

 

 

 

 

 

Adjusted diluted earnings per share attributable to ICE common stockholders

$

5.30

 

 

$

5.06

 

 

 

 

 

Diluted weighted average common shares outstanding

 

561

 

 

 

565

 

Adjusted Net Income Attributable to ICE and EPS

(In millions)

(Unaudited)

 

Three Months
Ended
12/31/2022

 

Three Months
Ended
12/31/2021

Net income attributable to ICE

$

425

 

 

$

1,527

 

Add: Amortization of acquisition-related intangibles

 

152

 

 

 

153

 

Add: Transaction and integration costs

 

12

 

 

 

58

 

Less: Gain on deconsolidation of Bakkt

 

 

 

 

(1,419

)

Add: Net losses from and impairment of unconsolidated investees

 

188

 

 

 

84

 

Add: Net interest expense on pre-acquisition-related debt and debt extinguishment

 

10

 

 

 

 

Add/(Less): Income tax effect related to the items above

 

(101

)

 

 

371

 

Add/(Less): Deferred tax adjustments on acquisition-related intangibles

 

12

 

 

 

(13

)

Adjusted net income attributable to ICE

$

698

 

 

$

761

 

 

 

 

 

Diluted earnings per share

$

0.76

 

 

$

2.70

 

 

 

 

 

Adjusted diluted earnings per share

$

1.25

 

 

$

1.34

 

 

 

 

 

Diluted weighted average common shares outstanding

 

560

 

 

 

565

 

Adjusted Free Cash Flow Calculation

(In millions)

(Unaudited)

 

Twelve Months
Ending 12/31/22

Twelve Months
Ending 12/31/21

Cash flow from operations

$3,554

$3,123

Less: Capital expenditures and capitalized software development costs

(482)

(452)

Add/(Less): Section 31 fees, net

(166)

150

Adjusted free cash flow

$2,906

$2,821

About Intercontinental Exchange

Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company and provider of marketplace infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. We operate regulated marketplaces, including the New York Stock Exchange, for the listing, trading and clearing of a broad array of derivatives contracts and financial securities across major asset classes. Our comprehensive data services offering supports the trading, investment, risk management and connectivity needs of customers around the world and across asset classes. As a leading technology provider for the U.S. residential mortgage industry, ICE Mortgage Technology provides the technology and infrastructure to transform and digitize U.S. residential mortgages, from application and loan origination through to final settlement.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on February 2, 2023.

Category: Corporate

SOURCE: Intercontinental Exchange

ICE-CORP