CBOE Holdings, Inc. (CBOE) has reported a 68.62 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $15.50 million, or $0.16 a share in the quarter, compared with $49.40 million, or $0.60 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $72.20 million, or $0.78 a share compared with $49.90 million or $0.61 a share, a year ago.

Revenue during the quarter surged 108.91 percent to $356.20 million from $170.50 million in the previous year period. Gross margin for the quarter contracted 2963 basis points over the previous year period to 54.30 percent. Total expenses were 92.67 percent of quarterly revenues, up from 53.37 percent for the same period last year. That has resulted in a contraction of 3930 basis points in operating margin to 7.33 percent.

Operating income for the quarter was $26.10 million, compared with $79.50 million in the previous year period.

However, the adjusted operating income for the quarter stood at $115 million compared to $80.60 million in the prior year period. At the same time, adjusted operating margin contracted 1499 basis points in the quarter to 32.29 percent from 47.27 percent in the last year period.

"We were pleased to complete our acquisition of Bats this quarter and hit the ground running with a comprehensive integration plan to realize the opportunities we see to enhance our financial strength, accelerate our strategic growth initiatives and provide new areas of growth to deliver greater value to CBOE shareholders," said Edward T. Tilly, CBOE Holdings' chairman and chief executive officer. Mr. Tilly continued, "While the Bats integration is a top priority, we also remain laser focused on growing our proprietary products. Despite record low realized volatility in the first quarter, trading on VIX futures rose 18 percent while trading in our index options increased 7 percent compared with first-quarter 2016, led by record trading in SPX options and significantly outpacing the options industry, which posted a 4 percent decline in average daily volume."

The company has spent $1,386.80 million cash to meet investing activities during the quarter as against cash outgo of $27.90 million in the last year period.

Cash flow from financing activities was $1,449.60 million for the quarter as against cash outgo of $64.30 million in the last year period.

Cash and cash equivalents stood at $153.30 million as on Mar. 31, 2017, up 42.63 percent or $45.82 million from $107.48 million on Mar. 31, 2016.

Working capital increases sharply

CBOE Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $194.80 million as at Mar. 31, 2017, up 92.23 percent or $93.46 million from $101.34 million on Mar. 31, 2016. Current ratio was at 1.75 as on Mar. 31, 2017, down from 2.22 on Mar. 31, 2016.

Days sales outstanding went up to 31 days for the quarter compared with 18 days for the same period last year.