UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM
CURRENT REPORT
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Item 2.06. Material Impairments.
On April 13, 2022, in connection with initiatives to upgrade its technology platform, Manning & Napier, Inc. (the “Company”) determined that it expects to record non-cash charges totaling approximately $1.9 million in the first quarter of 2022 for the impairment of certain internal and external costs capitalized in connection with hosted software arrangements.
This conclusion was reached after the Company determined it would terminate portions of its software license agreement with its current third-party service provider. The terminated services relate to the creation of an advisor portal and enhancement of the Company’s portfolio accounting and performance reporting functions. This does not represent a change in the Company’s strategic efforts to advance its digital transformation. As a result of limiting the use of its current third-party service provider, the Company assumes that certain currently capitalized implementation costs do not have significant value in the Company’s future technology strategy and will not ultimately be completed and placed into service. The Company does not expect to incur future cash expenditures as a result of terminating the portions of the agreement related to the advisor portal, portfolio accounting, or performance reporting.
Forward-Looking Statements
This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company’s views with respect to, among other things, its operations and financial performance. Words like “assumes,” “expects,” and “will,” or the negative thereof or other variations thereon or comparable terminology, are used to identify forward-looking statements, although not all forward-looking statements contain these words. Although the Company believes that it is basing its expectations and beliefs on reasonable assumptions within the bounds of what is currently known about its business and operations, there can be no assurance that actual results will not differ materially from what the Company expects or believes. Some of the factors that could cause the Company’s actual results to differ materially from its expectations or beliefs are disclosed in the “Risk Factors” section, as well as other sections, of its Annual Report on Form 10-K, which include, without limitation: the actual amount of cash expenditures incurred and the total impairment charge incurred. All forward-looking statements speak only as of the date on which they are made and the Company undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Manning & Napier, Inc. | ||||||
| Date: April 15, 2022 | By: /s/ Sarah C. Turner | |||||
| Name: Sarah C. Turner Title: Corporate Secretary | ||||||
Document and Entity Information |
Apr. 13, 2022 |
|---|---|
| Cover [Abstract] | |
| Amendment Flag | false |
| Entity Central Index Key | 0001524223 |
| Document Type | 8-K |
| Document Period End Date | Apr. 13, 2022 |
| Entity Registrant Name | MANNING & NAPIER, INC. |
| Entity Incorporation State Country Code | DE |
| Entity File Number | 001-35355 |
| Entity Tax Identification Number | 45-2609100 |
| Entity Address, Address Line One | 290 Woodcliff Drive |
| Entity Address, City or Town | Fairport |
| Entity Address, State or Province | NY |
| Entity Address, Postal Zip Code | 14450 |
| City Area Code | (585) |
| Local Phone Number | 325-6880 |
| Written Communications | false |
| Soliciting Material | false |
| Pre Commencement Tender Offer | false |
| Pre Commencement Issuer Tender Offer | false |
| Security 12b Title | Class A Common Stock, $0.01 par value per share |
| Trading Symbol | MN |
| Security Exchange Name | NYSE |
| Entity Emerging Growth Company | false |