EX-99.1 2 c07008exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
(CALAMOS INVESTMENT LOGO)
Calamos Asset Management, Inc.       2020 Calamos Court       Naperville, Illinois 60563       800.582.6959       www.calamos.com
 
 
     
FOR IMMEDIATE RELEASE   News Release
Contact:
Maryellen Thielen
630-955-4830
Calamos Asset Management, Inc. Reports Record Second Quarter Revenues
  •   Revenues increased 26 percent to a record $124.4 million for the second quarter of 2006 versus the same period of 2005
 
  •   Operating income improved 23 percent to $59.9 million for the second quarter of 2006 versus 2005
 
  •   Diluted earnings per share increased 13 percent to 34 cents for the second quarter of 2006 versus 2005
 
  •   The board declared a regular quarterly dividend of 9 cents per share
     NAPERVILLE, Ill., July 25, 2006 – Calamos Asset Management, Inc. (NGS: CLMS) reported record revenues for the second quarter of 2006.
     The company had $45.8 billion in assets under management at June 30, 2006, an increase of 16 percent from $39.5 billion in assets at June 30, 2005. For the second quarter ended June 30, 2006, revenues were a record $124.4 million, up 26 percent from $99.1 million for the second quarter of 2005. Operating income improved 23 percent to $59.9 million from $48.7 million a year ago. Operating margin was 48.2 percent for the second quarter of 2006 and 49.2 percent for the year-earlier period.
     Net income for the second quarter of 2006 was $8.1 million, 16 percent higher than $7.0 million for the same quarter a year ago.1 Diluted earnings per share increased 13 percent to 34 cents per share for the second quarter of 2006 from 30 cents per share for the second quarter of 2005.
     Also announced today, the board of directors declared a regular quarterly dividend of 9 cents per share, payable on Aug. 23, 2006 to shareholders of record on Aug. 8, 2006.
     “The stock market’s nervous saw-tooth pattern is similar to 1994, when the Fed also repeatedly raised interest rates,” said John P. Calamos, Sr., chairman and chief executive officer. “This market volatility affected second quarter asset flows for our firm and other asset managers. However, GDP and other economic indicators remain strong, indicating an economy in its mid-phase – which would be a positive for growth companies. We continue to believe that when the Fed stops raising interest rates, it will serve as a catalyst for positive stock market
 
1   Net income reflects only 23.1 percent of the operating companies’ results due to minority interests’ ownership of 76.9 percent.
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action. We have positioned our portfolios accordingly and continue to manage our business as we have in the past, focusing on achieving growth by managing risk and building wealth for our clients.”
     For the six months ended June 30, 2006, Calamos Asset Management reported revenues of $245.0 million, improving 25 percent from $196.4 million for the first half of 2005. Operating income increased 21 percent to $118.6 million for the first half of 2006, versus $97.7 million for the first half of 2005. Operating margin was 48.4 percent for the first six months of 2006 and 49.8 percent for the year-earlier period. Net income rose 28 percent to $17.1 million for the first half of 2006, versus $13.4 million for the first half of 2005. Diluted earnings per share increased 26 percent to 73 cents per share for the first half of 2006, compared with 58 cents per share for the first half of 2005.
     At June 30, 2006, the company had $33.8 billion in mutual funds and $12.0 billion in separate accounts, for a total of $45.8 billion in assets under management. Assets under management increased 16 percent during the 12 months ended June 30, 2006, due to $3.0 billion in net purchases and $3.3 billion in net market appreciation. Average assets under management were $46.9 billion for the second quarter of 2006, an increase of 23 percent from $38.3 billion for the same period of 2005.
     For the first six months of 2006, assets rose 5 percent from $43.8 billion at year-end 2005. However, assets under management decreased 4 percent from April 1 through June 30, 2006 due to $2.3 billion in market depreciation, partially offset by $536 million in net purchases.
     During the second quarter of 2006:
•   The firm launched the Calamos Multi-Fund Blend (CMQAX), which combines its Growth, Value, and Global Growth and Income funds into one core portfolio that seeks to provide an attractive, consistent risk-reward profile through all phases of the market’s cycle.
 
•   The Calamos Market Neutral Income Fund has continued to grow strongly since it re-opened in January. Fund assets climbed 45 percent in the second quarter, to $663.9 million at June 30, 2006.
 
•   The Calamos Convertible and High Income Fund (NYSE: CHY) completed a secondary public offering of 4.47 million shares, raising $72 million and increasing the fund’s common share assets to nearly $1 billion.
 
•   John P. Calamos, Sr. received the Ernst & Young 2006 Entrepreneur Of The Year® Award for financial services for the Lake Michigan area.
     Management will hold an investor conference call at 5 p.m. Eastern time on Tuesday, July 25, 2006. To access the live call and view management’s presentation, visit the Investor Relations section of www.calamos.com. Alternatively, participants may listen to the live call by dialing 800-374-2572 (706-679-3532 outside the United States). Management’s presentation and a replay of the call will be available until the end of the day on Aug. 1 by clicking on the Investor Relations section of www.calamos.com, or by dialing 800-642-1687 (706-645-9291 outside the U.S.) and entering conference ID number 2772430.
     Calamos Asset Management, Inc. (NGS: CLMS) is a diversified investment firm offering equity, high yield, convertible and alternative investment strategies, among others. The firm serves institutions and individuals via separately managed accounts, open-end and closed-end
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funds, offering a risk-managed approach to capital appreciation and income-producing strategies. For more information, visit www.calamos.com.
     From time to time, information or statements provided by us, including those within this news release, may contain certain forward-looking statements relating to future events, future financial performance, strategies, expectations, competitive environment and regulations. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Such risks and uncertainties include, but are not limited to: loss of revenues due to contract terminations and redemptions, our ownership structure, catastrophic or unpredictable events, unavailability of third-party retail distribution channels, damage to our reputation, fluctuations in the financial markets and the competitive conditions in the mutual fund, asset management and broader financial services sectors. For a discussion concerning these and other risks, uncertainties and other important factors that could affect future results, see “Forward-Looking Information” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, where applicable, “Risk Factors” in the company’s annual and quarterly reports filed with the U.S. Securities and Exchange Commission.
     Before investing, carefully consider the funds’ investment objectives, risks, charges and expenses. Contact (800) 582-6959 or visit www.calamos.com for a prospectus containing this and other information. Please read it carefully.
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Calamos Asset Management, Inc.
Unaudited Consolidated Condensed Statements of Operations
(in thousands, except share data)
                                 
    Three Months Ended June 30,   Six Months Ended June 30,
    2006   2005   2006   2005
     
Revenues:
                                
Investment management fees
   $ 84,328     $ 67,430     $ 165,807     $ 133,270  
Distribution and underwriting fees
     38,997       30,764       77,137       61,389  
Other
     1,028       878       2,027       1,734  
     
Total revenues
     124,353       99,072       244,971       196,393  
Expenses:
                                
Employee compensation and benefits
     18,287       14,860       37,293       29,781  
Distribution and underwriting expense
     25,864       18,693       50,829       36,364  
Amortization of deferred sales commissions
     8,123       8,028       15,863       15,904  
Marketing and sales promotion
     4,493       3,068       7,601       6,536  
General and administrative
     7,639       5,676       14,813       10,072  
     
Total expenses
     64,406       50,325       126,399       98,657  
     
Operating income
     59,947       48,747       118,572       97,736  
Total other income (expense), net
     (1,936 )     1,904       4,095       (932 )
     
Income before minority interest in Calamos Holdings LLC and income taxes
     58,011       50,651       122,667       96,804  
Minority interest in Calamos Holdings LLC
     44,486       38,980       94,109       74,515  
     
Income before income taxes
     13,525       11,671       28,558       22,289  
Income taxes
     5,424       4,669       11,452       8,916  
     
Net income
   $ 8,101     $ 7,002     $ 17,106     $ 13,373  
     
 
                                
Earnings per share, basic
   $ 0.35     $ 0.30     $ 0.74     $ 0.58  
     
Weighted average shares outstanding, basic
     23,161,998       23,000,100       23,161,998       23,000,100  
     
 
                                
Calculation of earnings per share, diluted, assuming exchange of membership units:
                                
Income before minority interest in Calamos Holdings LLC and income taxes
   $ 58,011     $ 50,651     $ 122,667     $ 96,804  
Impact of income taxes
     23,262       20,260       49,189       38,722  
     
Earnings available to common shareholders
     34,749       30,391       73,478       58,082  
     
Earnings per share, diluted
   $ 0.34     $ 0.30     $ 0.73     $ 0.58  
     
Weighted average shares outstanding, diluted
     100,845,107       100,557,047       100,823,214       100,577,064  
     
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Calamos Asset Management, Inc.
Assets Under Management
(in millions)
                                 
    Quarter Ended June 30,   Change
    2006   2005   Amount   Percent
     
Mutual Funds
                                
Beginning assets under management
   $ 35,014     $ 27,366     $ 7,648       28 %
Net purchases
     647       582       65       11  
Market appreciation (depreciation)
     (1,824 )     385       (2,209 )     574  
     
Ending assets under management
     33,837       28,333       5,504       19  
     
Average assets under management
     34,566       27,443       7,123       26  
     
Separate Accounts
                                
Beginning assets under management
     12,587       10,880       1,707       16  
Net purchases
     (111 )     27       (138 )     511  
Market appreciation (depreciation)
     (501 )     272       (773 )     284  
     
Ending assets under management
     11,975       11,179       796       7  
     
Average assets under management
     12,367       10,854       1,513       14  
     
Total Assets Under Management
                                
Beginning assets under management
     47,601       38,246       9,355       24  
Net purchases
     536       609       (73 )     12  
Market appreciation (depreciation)
     (2,325 )     657       (2,982 )     454  
     
Ending assets under management
     45,812       39,512       6,300       16  
     
Average assets under management
   $ 46,933     $ 38,297     $ 8,636       23 %
     
                                 
    At June 30,   Change
    2006   2005   Amount   Percent
     
Mutual Funds
                                
Open-end funds
   $ 27,707     $ 22,432     $ 5,275       24 %
Closed-end funds
     6,130       5,901       229       4  
     
Total mutual funds
     33,837       28,333       5,504       19  
Separate Accounts
                                
Institutional accounts
     4,366       3,678       688       19  
Managed accounts
     6,739       6,844       (105 )     2  
Private client accounts
     773       578       195       34  
Alternative investments
     97       79       18       23  
     
Total separate accounts
     11,975       11,179       796       7  
     
Ending assets under management
   $ 45,812     $ 39,512     $ 6,300       16 %
     
                                 
    At June 30,   Change
Assets by Strategy   2006   2005   Amount   Percent
     
Equity
   $ 24,798     $ 19,815     $ 4,983       25 %
Balanced
     12,053       10,363       1,690       16  
Convertible
     5,347       6,161       (814 )     13  
High Yield
     2,878       2,763       115       4  
Alternative
     736       410       326       80  
     
Ending assets under management
   $ 45,812     $ 39,512     $ 6,300       16 %
     
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