CBOE Holdings, Inc. (NASDAQ:CBOE) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 04, 2018 • 08:30 am ET


CBOE Holdings, Inc. (NASDAQ:CBOE) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good morning, and welcome to Cboe Global Market's 2018 First Quarter Financial Results Conference Call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I'd now like to turn the conference over to Debbie Koopman. Ms. Koopman, please go ahead.

Debbie Koopman

Thank you. Good morning. Thank You for joining us for our first quarter earnings conference call. On the call today, Ed Tilly, our Chairman and CEO, will discuss the quarter and provide an update on our strategic initiatives. Then, Brian Schell, our Executive Vice President and CFO, will provide an overview of our first quarter 2018 financial results and guidance for certain financial metrics. Following their comments, we will open the call to Q&A. Also joining us for Q&A will be our President and COO, Chris Concannon; and our Chief Strategy Officer, John Deters.

In addition, I'd like to point out that this presentation will include the use of several slides. We will be showing the slides and providing commentary on each. A downloadable copy of the slide presentation is available on the Investor Relations portion of our Web site.

During our remarks, we will make some forward-looking statements, which represent our current judgment on what the future may hold, and while we believe these judgments are reasonable, these forward-looking statements are not guarantees of future performance and involve certain assumptions, risks, and uncertainties. Actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. Please refer to our filings with the SEC for a full discussion of the factors that may affect any forward-looking statements.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, after this conference call. Also note that references made to the planned migration of C2 Option Exchange and the Cboe options exchange are subject to regulatory review.

During the course of the call this morning, we will be referring to non-GAAP measures as defined and reconciled in our earnings materials. We will also refer to non-GAAP adjusted combined results, which are also reconciled in our earnings materials. As you know, we completed our acquisition of Bats Global Markets on February 28, 2017. The combined results present information regarding the combined operations, as if the Bats acquisition had closed at the beginning of 2017, in order to provide a supplemental discussion of our results and review of our business.

Now, I'd like to turn the call over to Ed Tilly.

Ed Tilly

Thank you, Debbie. Good morning and thank you for joining us today. I am pleased to report that first quarter 2018 was our best quarter ever, and that we raised our expected run rate expense synergy target to $85 million at the end of 2020, up $20 million, and a year ahead of our initial projections. Brian will discuss that more in detail later.

Cboe Global Markets reported