8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): January 28, 2008

Calamos Asset Management, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	0-51003	32-0122554
(State or Other Jurisdiction	(Commission File Number)	(I.R.S. Employer
of Incorporation)		Identification No.)

2020 Calamos Court
Naperville, Illinois	60563
(Address of Principal Executive Offices)	(Zip Code)

REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE: (630) 245-7200

Not Applicable
(Former Name and Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
SIGNATURES
Exhibit Index
Press Release

Item 2.02. Results of Operations and Financial Condition.

          On January 28, 2008, Calamos Asset Management, Inc. (“Corporation”) issued a press release reporting results for the fourth quarter and full year of 2007. A copy of the press release issued by the Corporation is attached as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

     (c) Exhibits

          99.1 Press release issued by the Corporation on January 28, 2008.

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SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CALAMOS ASSET MANAGEMENT, INC.
Date: January 28, 2008	By:	/s/ Scott Craven Jones
		Scott Craven Jones
		Executive Vice President and Chief Administrative Officer

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Exhibit Index

Exhibit Number	Description
99.1	Press release dated January 28, 2008 issued by the Corporation reporting results for the fourth quarter and full year of 2007.

EX-99.1

Exhibit 99.1

	2020 Calamos Court Naperville, IL 60563-2787 www.calamos.com
	News Release

FOR IMMEDIATE RELEASE

Contact:
Peter D. Nash
630-955-4830

Calamos Asset Management, Inc. Reports Fourth Quarter and Full Year 2007 Results

• Revenues were $124.5 million, compared to $121.7 million for the fourth quarter 2006

• Net income was $9.3 million versus $8.9 million in the fourth quarter of 2006

• Diluted earnings per share were $0.42, compared to $0.38 for the fourth quarter of 2006

• Regular quarterly dividend of $0.11 per share declared

          NAPERVILLE, Ill., January 28, 2008 – Calamos Asset Management, Inc. (NASDAQ: CLMS), a diversified investment firm offering equity, fixed income, convertible and alternative investment strategies, today reported results for the fourth quarter and full year of 2007.

          “We’re pleased with the investment performance of our portfolios in 2007, most of which outpaced the stock market and their various benchmarks. Assets under management and asset flows improved in the second half of the year, and we believe our investment strategies, which are focused on long-term, risk adjusted performance, have positioned us well for the future,” said John P. Calamos Sr., Chairman and Chief Executive Officer. “We took an additional step in our international distribution efforts during the fourth quarter by launching four Dublin-based offshore funds that will be distributed throughout Europe and Asia. This launch, coupled with the introduction of four U.S. based mutual funds during 2007, supports our continuing strategy to diversify product offerings and distribution relationships,” added Mr. Calamos.

          Also during the fourth quarter, the Board of Directors authorized the repurchase of up to two million additional shares of the company’s outstanding Class A common shares. In the fourth quarter, the company purchased 452,100 shares, representing 2.1% of its outstanding Class A shares at September 30, 2007, under this recently authorized and ongoing buyback program.

          The Board of Directors declared a regular quarterly dividend of 11 cents per share, payable on February 27, 2008 to shareholders of record on February 12, 2008.

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CALAMOS ASSET MANAGEMENT, INC.
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Fourth Quarter Results

          Assets under management as of December 31, 2007 fell 1% to $46.2 billion from $46.7 billion at the previous quarter’s end. The decrease in assets under management of $538 million during the quarter was comprised of net redemptions of $59 million and $479 million in market depreciation. Market depreciation, as reported, includes the negative impact of nearly $500 million of income and capital gain distributions from our mutual funds. Average assets under management were $46.9 billion during the fourth quarter of 2007, compared to $45.2 billion for the same period one year ago.

          Fourth quarter 2007 revenues were $124.5 million, a 2% increase from $121.7 million in the fourth quarter of 2006, resulting mostly from higher closed-end fund management fee revenue. Operating expenses were $72.0 million, a 9% increase from $65.8 million in the prior-year quarter. The increase in operating expenses was mainly due to increases in employee compensation and benefits expenses resulting from staff additions in the investment management, information services, sales and marketing functions and from executive transition payments.

          Operating income was $52.6 million for the fourth quarter of 2007, compared with $55.8 million for the same period a year ago. Operating margin was 42.2% for the fourth quarter of 2007 and 45.9% for the year-earlier period. Total other income, net for the fourth quarter of 2007, was $17.6 million, an increase of $10.1 million from the same period a year ago. The increase was largely due to higher capital gain distributions and to market appreciation on our investment portfolio. Those gains were partially offset by a $6.1 million increase in interest expense related to the private debt offering that closed during the third quarter of 2007.

          Net income for the fourth quarter of 2007, representing approximately 22% of the operating company’s results, was $9.3 million, compared with $8.9 million reported for the fourth quarter 2006. Diluted earnings per share were $0.42 for the fourth quarter versus $0.38 for the year-earlier period.

Year-to-Date Results

          Assets under management at December 31, 2007 increased approximately $1.5 billion from December 31, 2006 as market appreciation of $5.1 billion was offset by net redemptions of $3.6 billion. Average assets under management were $44.8 billion for the year ended December 31, 2007, compared to $45.7 billion in 2006.

          Calamos reported revenues of $473.5 million for the twelve months of 2007, a 2% decrease from $485.2 million in 2006, as higher closed-end fund management fees were offset by a 2% decline in average assets under management. Operating expenses were $300.4 million, an 18% increase from $254.1 million for the same period a year ago. Operating expenses for 2007 were significantly impacted by $26.4 million of one-time marketing and sales promotion expenses recorded in the second quarter of 2007, as described below. In addition, the operating expenses were impacted by higher employee compensation and benefits expenses, which reflected staff additions in the investment management, information services and sales and marketing functions.

          Operating income was $173.1 million for 2007, versus $231.0 million for 2006. Operating margin was 36.6% for the year ended December 31, 2007 and 47.6% for the year-earlier period. Total other income, net for the twelve months ended December 31, 2007, was $29.9 million, an

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CALAMOS ASSET MANAGEMENT, INC.
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increase of $17.5 million from the same period a year ago. The increase was largely due to higher capital gain distributions and to market appreciation on our investment portfolio. Those increases were partially offset by an $11.4 million increase in interest expense related to the private debt offering that closed during the third quarter of 2007. Net income was $27.7 million for 2007, versus $34.0 million for 2006. Diluted earnings per share were $1.22 per share for 2007, compared with $1.45 per share for the prior period of 2006.

Year-to-Date Results, As Adjusted

          When evaluating our operations, management adjusts operating expenses, operating income, net income and diluted earnings per share to exclude the adverse effect of two one-time marketing and sales promotion expenses recorded in the second quarter of 2007 and related to our closed-end fund business, as presented in Table A, because these expenses are not expected to recur. However, adjusted results are not, and should not be construed as, a substitute for results computed in accordance with accounting principles generally accepted in the United States (GAAP).

• Calamos incurred a one-time expense of $19.5 million, or $0.11 per diluted share, by terminating our remaining two agreements that required Calamos to make recurring payments of approximately $2.6 million annually based on the assets of two Calamos closed-end funds. Terminating these agreements is expected to have a positive after-tax impact of approximately $0.015 per diluted share annually.

• Calamos incurred $6.9 million, or $0.04 per diluted share, in one-time aggregate structuring fees related to the Calamos Global Dynamic Income Fund (CHW) offering in the second quarter.

          For the twelve months ended December 31, 2007, operating expenses, as adjusted, were $274.0 million, an 8% increase from $254.1 million in the same period in 2006. Operating income, as adjusted, was $199.5 million versus $231.0 million for 2006. Operating margin, as adjusted, was 42.1%, compared with 47.6% for the year-earlier period. Net income, as adjusted, was $31.3 million for the full year of 2007 versus $34.0 million for the full year of 2006. Diluted earnings per share, as adjusted, were $1.37 per share for 2007, compared with $1.45 per share for 2006.

          Management will hold an investor conference call at 5 p.m. Eastern time on Monday, January 28th. To access the live call and view management’s presentation, click on the Investor Relations tab at www.calamos.com. Alternatively, participants may listen to the live call by dialing 877-299-7187 (706-634-9530 outside the U.S.). Management’s presentation and a replay of the call will be available until February 28th by clicking on the Investor Relations tab at www.calamos.com. Until the end of the day on February 11th, an audio replay will be available by dialing 800-642-1687 (706-645-9291 outside the U.S.) and entering conference ID number 30697420.

          Calamos Asset Management, Inc. (NASDAQ: CLMS) is a diversified investment firm offering equity, fixed income, convertible and alternative investment strategies, among others. The firm serves institutions and individuals via separately managed accounts and a family of open-end and closed-end funds, offering a risk-managed approach to capital appreciation and income-producing strategies. For more information, visit www.calamos.com.

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CALAMOS ASSET MANAGEMENT, INC.
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          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, the 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. For a discussion concerning some of 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.

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CALAMOS ASSET MANAGEMENT, INC.
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Calamos Asset Management, Inc.
Unaudited Consolidated Condensed Statements of Operations
(in thousands, except share data)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2007		2006		2007		2006
Revenues:
Investment management fees	$	86,398	$	82,858	$	325,395	$	329,383
Distribution and underwriting fees		37,001		37,783		143,994		151,760
Other		1,127		1,013		4,088		4,029
Total revenues		124,526		121,654		473,477		485,172
Expenses:
Employee compensation and benefits		24,849		18,886		91,039		73,382
Distribution and underwriting expense		27,758		25,597		104,227		100,935
Amortization of deferred sales commissions		6,029		8,416		27,249		32,924
Marketing and sales promotion		3,759		4,319		40,833		15,631
General and administrative		9,564		8,618		37,036		31,272
Total operating expenses		71,959		65,836		300,384		254,144
Operating income		52,567		55,818		173,093		231,028
Total other income (expense), net		17,604		7,482		29,901		12,381
Income before minority interest in Calamos Holdings LLC and income taxes		70,171		63,300		202,994		243,409
Minority interest in Calamos Holdings LLC		54,645		48,490		156,583		186,631
Income before income taxes		15,526		14,810		46,411		56,778
Income taxes		6,247		5,949		18,666		22,770
Net income	$	9,279		8,861	$	27,745	$	34,008
Earnings per share, basic	$	0.44	$	0.38	$	1.24	$	1.47
Weighted average shares outstanding, basic		21,194,785		23,161,998		22,297,170		23,161,998
Calculation of earnings per share, diluted, assuming exchange of membership units:
Income before minority interest in Calamos Holdings LLC and income taxes	$	70,171	$	63,300	$	202,994	$	243,409
Impact of income taxes		28,237		25,428		81,644		97,607
Earnings available to common shareholders		41,934		37,872		121,350		145,802
Earnings per share, diluted	$	0.42	$	0.38	$	1.22	$	1.45
Weighted average shares outstanding, Diluted		98,786,281		100,817,074		99,760,872		100,805,030

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CALAMOS ASSET MANAGEMENT, INC.
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Calamos Asset Management, Inc.
Assets Under Management
(in millions)

	Quarter Ended December 31,						Change
	2007			2006			Amount			Percent
Mutual Funds
Beginning assets under management	$	35,677		$	33,578		$	2,099			6	%
Net redemptions		(263	)		(1,111	)		848		NM
Market appreciation (depreciation)		(579	)		1,237			(1,816	)	NM
Ending assets under management		34,835			33,704			1,131			3
Average assets under management		35,479			33,961			1,518			4
Separate Accounts
Beginning assets under management		11,069			11,231			(162	)		1
Net purchases (redemptions)		204			(653	)		857		NM
Market appreciation		100			443			(343	)	NM
Ending assets under management		11,373			11,021			352			3
Average assets under management		11,392			11,210			182			2
Total Assets Under Management
Beginning assets under management		46,746			44,809			1,937			4
Net redemptions		(59	)		(1,764	)		1,705		NM
Market appreciation (depreciation)		(479	)		1,680			(2,159	)	NM
Ending assets under management		46,208			44,725			1,483			3
Average assets under management	$	46,871		$	45,171		$	1,700			4	%

	At December 31,				Change
	2007		2006		Amount			Percent
Mutual Funds
Open-end funds	$	27,434	$	27,303	$	131			0	%
Closed-end funds		7,401		6,401		1,000			16
Total mutual funds		34,835		33,704		1,131			3
Separate Accounts
Institutional accounts		5,193		5,203		(10	)		0
Managed accounts		6,040		5,723		317			6
Alternative investments		140		95		45			47
Total separate accounts		11,373		11,021		352			3
Ending assets under management	$	46,208	$	44,725	$	1,483			3	%

	At December 31,				Change
Assets by Strategy	2007		2006		Amount			Percent
Equity	$	22,695	$	22,869	$	(174	)		1	%
Balanced		14,145		12,887		1,258			10
Convertible		4,675		4,987		(312	)		6
High Yield		2,801		2,966		(165	)		6
Alternative		1,740		1,016		724			71
Fixed Income		82		—		82		NM
Money Market		70		—		70		NM
Ending assets under management	$	46,208	$	44,725	$	1,483			3	%

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Table A
Calamos Asset Management, Inc.
Unaudited Reconciliation of Non-GAAP Financial Measures

          This earnings release announcing results of operations for the twelve months ended December 31, 2007 includes references to the following “non-GAAP financial measures” as defined by Regulation G of the Securities and Exchange Commission:

• Operating expense, as adjusted

• Operating income, as adjusted

• Net income, as adjusted

• Diluted earnings per share, as adjusted

          In evaluating operating performance, management considers operating expense, operating income, net income and diluted earnings per share, each calculated in accordance with GAAP, as well as each item on an as-adjusted basis, which constitute non-GAAP financial measures. Items presented on an as-adjusted basis exclude the impact of terminating the two closed-end fund additional compensation agreements and the CHW closed-end fund structuring fees. As these items incurred in the second quarter of 2007 are not expected to recur, management believes that excluding these items better enables it to evaluate the company’s operating performance relative to prior periods. Management considers these non-GAAP financial measures when evaluating the company’s performance and believes the presentation of these amounts provides the reader with information necessary to analyze the company’s operations for the periods compared.

          The following table provides a reconciliation of non-GAAP financial measures to the most directly comparable financial measures under GAAP for the twelve months ended December 31, 2007 and 2006 (in thousands, except per share data):

	Twelve Months Ended
	December 31,
	2007		2006
Operating expenses	$	300,384	$	254,144
Termination of closed-end fund compensation agreements		19,500		—
Closed-end fund structuring fees		6,904		—
Operating expenses, as adjusted	$	273,980	$	254,144
Operating income	$	173,093	$	231,028
Termination of closed-end fund compensation agreements		19,500		—
Closed-end fund structuring fees		6,904		—
Operating income, as adjusted	$	199,497	$	231,028
Net income	$	27,745	$	34,008
Termination of closed-end fund compensation agreements		2,634		—
Closed-end fund structuring fees		933		—
Net income, as adjusted	$	31,312	$	34,008
Diluted earnings per share	$	1.22	$	1.45
Termination of closed-end fund compensation agreements		0.11		—
Closed-end fund structuring fees		0.04		—
Diluted earnings per share, as adjusted	$	1.37	$	1.45

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