Date of Report (Date of earliest event reported) | July 29, 2016 |
VIRTUS INVESTMENT PARTNERS, INC. | ||||
(Exact Name of Registrant as Specified in Charter) |
Delaware | 1-10994 | 95-4191764 |
(State or other jurisdiction | (Commission | (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
100 Pearl Street, Hartford, CT | 06103 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code | (800) 248-7971 |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
VIRTUS INVESTMENT PARTNERS, INC. | ||||
Dated: | July 29, 2016 | By: | /s/ Michael A. Angerthal | |
Name: | Michael A. Angerthal | |||
Title: | Chief Financial Officer | |||
![]() | News Release |
▪ | EPS of $0.97; EPS, As Adjusted, of $1.24 |
▪ | Total Sales of $2.4B; Net Flows of ($2.2)B; AUM of $45.2B |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
6/30/2016 | 6/30/2015 | Change | 3/31/2016 | Change | 6/30/2016 | 6/30/2015 | Change | |||||||||||||||||||||
U.S. GAAP Financial Measures | ||||||||||||||||||||||||||||
Revenues | $ | 80.1 | $ | 99.7 | (20 | %) | $ | 80.3 | — | % | $ | 160.4 | $ | 203.5 | (21 | %) | ||||||||||||
Operating expenses | $ | 71.3 | $ | 83.4 | (15 | %) | $ | 67.5 | 6 | % | $ | 138.9 | $ | 162.7 | (15 | %) | ||||||||||||
Operating income | $ | 8.7 | $ | 16.2 | (46 | %) | $ | 12.8 | (31 | %) | $ | 21.5 | $ | 40.8 | (47 | %) | ||||||||||||
Operating margin | 10.9 | % | 16.3 | % | 15.9 | % | 13.4 | % | 20.0 | % | ||||||||||||||||||
Net income attributable to common stockholders | $ | 8.1 | $ | 9.8 | (17 | %) | $ | 12.4 | (35 | %) | $ | 20.5 | $ | 29.1 | (30 | %) | ||||||||||||
Earnings per share - diluted | $ | 0.97 | $ | 1.08 | (10 | %) | $ | 1.45 | (33 | %) | $ | 2.43 | $ | 3.20 | (24 | %) | ||||||||||||
Non-GAAP Financial Measures (1) | ||||||||||||||||||||||||||||
Revenues, as adjusted | $ | 62.6 | $ | 77.5 | (19 | %) | $ | 62.4 | — | % | $ | 125.0 | $ | 157.3 | (20 | %) | ||||||||||||
Operating expenses, as adjusted | $ | 45.9 | $ | 46.1 | — | % | $ | 47.2 | (3 | %) | $ | 93.1 | $ | 93.7 | (1 | %) | ||||||||||||
Operating income, as adjusted | $ | 16.7 | $ | 31.4 | (47 | %) | $ | 15.2 | 10 | % | $ | 31.9 | $ | 63.6 | (50 | %) | ||||||||||||
Operating margin, as adjusted | 26.6 | % | 40.5 | % | 24.4 | % | 25.5 | % | 40.4 | % | ||||||||||||||||||
Net income attributable to common stockholders, as adjusted | $ | 10.3 | $ | 20.0 | (48 | %) | $ | 9.5 | 8 | % | $ | 19.8 | $ | 40.3 | (51 | %) | ||||||||||||
Earnings per share - diluted, as adjusted | $ | 1.24 | $ | 2.21 | (44 | %) | $ | 1.12 | 11 | % | $ | 2.36 | $ | 4.43 | (47 | %) |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
6/30/2016 | 6/30/2015 | Change | 3/31/2016 | Change | 6/30/2016 | 6/30/2015 | Change | |||||||||||||||||||||
Ending assets under management | $ | 45.2 | $ | 52.4 | (14 | %) | $ | 45.7 | (1 | %) | $ | 45.2 | $ | 52.4 | (14 | %) | ||||||||||||
Average assets under management | $ | 44.8 | $ | 54.4 | (18 | %) | $ | 45.7 | (2 | %) | $ | 45.2 | $ | 55.1 | (18 | %) | ||||||||||||
Gross sales | $ | 2.4 | $ | 3.3 | (27 | %) | $ | 2.8 | (16 | %) | $ | 5.2 | $ | 7.0 | (25 | %) | ||||||||||||
Net flows | $ | (2.2 | ) | $ | (1.3 | ) | (60 | %) | $ | (2.6 | ) | 18 | % | $ | (4.8 | ) | $ | (3.5 | ) | (35 | %) |
As of | As of | ||||||||||||||||
6/30/2016 | 6/30/2015 | Change | 3/31/2016 | Change | |||||||||||||
Cash and cash equivalents | $ | 155.5 | $ | 194.3 | (20 | %) | $ | 50.4 | 209 | % | |||||||
Seed capital investments (1) | 174.1 | 238.9 | (27 | %) | 280.9 | (38 | %) | ||||||||||
Investments - other (2) | 38.4 | 22.3 | 72 | % | 51.2 | (25 | %) | ||||||||||
Total - cash and investments | $ | 368.0 | $ | 455.5 | (19 | %) | $ | 382.5 | (4 | %) | |||||||
Deferred taxes, net | $ | 46.4 | $ | 59.8 | (22 | %) | $ | 49.1 | (5 | %) | |||||||
Dividends payable | $ | 4.0 | $ | 4.3 | (7 | %) | $ | 4.2 | (5 | %) | |||||||
Total equity attributable to stockholders | $ | 466.1 | $ | 559.4 | (17 | %) | $ | 505.6 | (8 | %) | |||||||
Working capital (3) | $ | 151.9 | $ | 185.6 | (18 | %) | $ | 59.1 | 157 | % |
Jeanne Hess, Investor Relations (860) 263-4730 jeanne.hess@virtus.com | Joe Fazzino, Media Relations (860) 263-4725 joe.fazzino@virtus.com |
Three Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
6/30/2016 | 6/30/2015 | Change | 3/31/2016 | Change | 6/30/2016 | 6/30/2015 | Change | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 58,192 | $ | 68,867 | (16 | %) | $ | 57,644 | 1 | % | $ | 115,836 | $ | 139,363 | (17 | %) | ||||||||||||
Distribution and service fees | 12,167 | 17,635 | (31 | %) | 12,478 | (2 | %) | 24,645 | 37,233 | (34 | %) | |||||||||||||||||
Administration and transfer agent fees | 9,499 | 12,577 | (24 | %) | 9,998 | (5 | %) | 19,497 | 25,619 | (24 | %) | |||||||||||||||||
Other income and fees | 227 | 577 | (61 | %) | 175 | 30 | % | 402 | 1,272 | (68 | %) | |||||||||||||||||
Total revenues | 80,085 | 99,656 | (20 | %) | 80,295 | — | % | 160,380 | 203,487 | (21 | %) | |||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 33,065 | 33,593 | (2 | %) | 35,977 | (8 | %) | 69,042 | 69,215 | — | % | |||||||||||||||||
Distribution and other asset-based expenses | 17,432 | 23,676 | (26 | %) | 18,101 | (4 | %) | 35,533 | 48,183 | (26 | %) | |||||||||||||||||
Other operating expenses | 12,457 | 23,512 | (47 | %) | 10,765 | 16 | % | 23,222 | 40,238 | (42 | %) | |||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 777 | 957 | (19 | %) | 1,133 | (31 | %) | 1,910 | 1,775 | 8 | % | |||||||||||||||||
Other operating expenses of consolidated investment products | 3,841 | — | N/M | 56 | N/M | 3,897 | — | N/M | ||||||||||||||||||||
Restructuring and severance | 2,391 | — | — | % | — | % | 2,391 | — | — | % | ||||||||||||||||||
Depreciation and other amortization | 776 | 873 | (11 | %) | 862 | (10 | %) | 1,638 | 1,652 | (1 | %) | |||||||||||||||||
Amortization expense | 603 | 837 | (28 | %) | 651 | (7 | %) | 1,254 | 1,674 | (25 | %) | |||||||||||||||||
Total operating expenses | 71,342 | 83,448 | (15 | %) | 67,545 | 6 | % | 138,887 | 162,737 | (15 | %) | |||||||||||||||||
Operating Income | 8,743 | 16,208 | (46 | %) | 12,750 | (31 | %) | 21,493 | 40,750 | (47 | %) | |||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 3,281 | 343 | N/M | (658 | ) | N/M | 2,623 | 888 | 195 | % | ||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | 3,097 | (3,242 | ) | N/M | 295 | N/M | 3,392 | (652 | ) | N/M | ||||||||||||||||||
Realized and unrealized gain of consolidated investment product, net | 581 | — | N/M | 2,235 | (74 | %) | 2,816 | — | N/M | |||||||||||||||||||
Other (expense) income, net | (15 | ) | 247 | N/M | 228 | N/M | 213 | 682 | (69 | %) | ||||||||||||||||||
Total other income (expense), net | 6,944 | (2,652 | ) | N/M | 2,100 | 231 | % | 9,044 | 918 | N/M | ||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (129 | ) | (121 | ) | (7 | %) | (132 | ) | 2 | % | (261 | ) | (244 | ) | (7 | %) | ||||||||||||
Interest and dividend income | 619 | 302 | 105 | % | 273 | 127 | % | 892 | 582 | 53 | % | |||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 1,696 | 3,098 | (45 | %) | 2,961 | (43 | %) | 4,657 | 5,422 | (14 | %) | |||||||||||||||||
Interest (expense) income, net of investments of consolidated investment product, net | (3,086 | ) | — | N/M | 1,474 | N/M | (1,612 | ) | — | N/M | ||||||||||||||||||
Total interest (expense) income, net | (900 | ) | 3,279 | N/M | 4,576 | N/M | 3,676 | 5,760 | (36 | %) | ||||||||||||||||||
Income Before Income Taxes | 14,787 | 16,835 | (12 | %) | 19,426 | (24 | %) | 34,213 | 47,428 | (28 | %) | |||||||||||||||||
Income tax expense | 6,087 | 7,823 | (22 | %) | 7,556 | (19 | %) | 13,643 | 18,691 | (27 | %) | |||||||||||||||||
Net Income | 8,700 | 9,012 | (3 | %) | 11,870 | (27 | %) | 20,570 | 28,737 | (28 | %) | |||||||||||||||||
Noncontrolling interests | (612 | ) | 765 | N/M | 493 | N/M | (119 | ) | 382 | N/M | ||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 8,088 | $ | 9,777 | (17 | %) | $ | 12,363 | (35 | %) | $ | 20,451 | $ | 29,119 | (30 | %) | ||||||||||||
Earnings Per Share - Basic | $ | 0.99 | $ | 1.10 | (10 | %) | $ | 1.48 | (33 | %) | $ | 2.48 | $ | 3.26 | (24 | %) | ||||||||||||
Earnings Per Share - Diluted | $ | 0.97 | $ | 1.08 | (10 | %) | $ | 1.45 | (33 | %) | $ | 2.43 | $ | 3.20 | (24 | %) | ||||||||||||
Cash Dividends Declared Per Share | $ | 0.45 | $ | 0.45 | — | % | $ | 0.45 | — | % | $ | 0.90 | $ | 0.90 | — | % | ||||||||||||
Weighted Average Shares Outstanding - Basic | 8,170 | 8,889 | (8 | %) | 8,344 | (2 | %) | 8,257 | 8,927 | (8 | %) | |||||||||||||||||
Weighted Average Shares Outstanding - Diluted | 8,314 | 9,037 | (8 | %) | 8,506 | (2 | %) | 8,410 | 9,094 | (8 | %) |
Three Months Ended | |||||||||||||||||||
Jun 30, 2015 | Sep 30, 2015 | Dec 31, 2015 | Mar 31, 2016 | Jun 30, 2016 | |||||||||||||||
By product (period end): | |||||||||||||||||||
Open-End Funds (1) | $ | 33,345.3 | $ | 29,716.4 | $ | 28,882.1 | $ | 26,536.0 | $ | 24,813.8 | |||||||||
Closed-End Funds | 6,901.0 | 6,349.8 | 6,222.3 | 6,543.6 | 6,959.6 | ||||||||||||||
Exchange Traded Funds | 132.6 | 306.9 | 340.8 | 353.6 | 399.4 | ||||||||||||||
Separately Managed Accounts (2) | 6,952.1 | 6,539.6 | 6,784.4 | 7,021.1 | 7,407.2 | ||||||||||||||
Institutional Accounts (2) | 5,070.0 | 5,025.0 | 5,155.7 | 5,196.9 | 5,589.7 | ||||||||||||||
Total | $ | 52,401.0 | $ | 47,937.7 | $ | 47,385.3 | $ | 45,651.2 | $ | 45,169.7 | |||||||||
By product (average) (3) | |||||||||||||||||||
Open-End Funds (1) | $ | 34,852.2 | $ | 31,627.1 | $ | 30,017.6 | $ | 27,295.9 | $ | 25,537.7 | |||||||||
Closed-End Funds | 7,256.5 | 6,714.5 | 6,378.5 | 6,152.3 | 6,659.9 | ||||||||||||||
Exchange Traded Funds | 103.9 | 269.9 | 343.4 | 337.1 | 371.9 | ||||||||||||||
Separately Managed Accounts (2) | 7,125.3 | 6,930.9 | 6,552.7 | 6,768.4 | 7,015.0 | ||||||||||||||
Institutional Accounts (2) | 5,054.8 | 5,082.4 | 5,199.9 | 5,112.4 | 5,223.9 | ||||||||||||||
Total | $ | 54,392.7 | $ | 50,624.8 | $ | 48,492.1 | $ | 45,666.1 | $ | 44,808.4 | |||||||||
By asset class (period end): | |||||||||||||||||||
Equity | $ | 31,908.8 | $ | 28,231.0 | $ | 28,314.9 | $ | 27,061.4 | $ | 26,206.9 | |||||||||
Fixed Income | 16,010.8 | 15,580.6 | 15,115.6 | 14,994.2 | 15,450.6 | ||||||||||||||
Alternatives (4) | 4,031.2 | 3,681.7 | 3,468.7 | 3,091.0 | 3,056.8 | ||||||||||||||
Other (5) | 450.2 | 444.4 | 486.1 | 504.6 | 455.4 | ||||||||||||||
Total | $ | 52,401.0 | $ | 47,937.7 | $ | 47,385.3 | $ | 45,651.2 | $ | 45,169.7 |
Three Months Ended | ||||||||||||||
Jun 30, 2015 | Sep 30, 2015 | Dec 31, 2015 | Mar 31, 2016 | Jun 30, 2016 | ||||||||||
Open-End Funds (1) | 49.2 | 47.3 | 46.0 | 47.3 | 49.4 | |||||||||
Closed-End Funds | 66.9 | 66.9 | 66.3 | 65.4 | 65.4 | |||||||||
Exchange Traded Funds | 8.9 | 21.9 | 29.1 | 34.6 | 36.2 | |||||||||
Separately Managed Accounts (2) | 53.5 | 54.5 | 54.4 | 56.1 | 55.2 | |||||||||
Institutional Accounts (2) | 34.9 | 34.2 | 34.4 | 36.7 | 36.2 | |||||||||
All Products | 50.7 | 49.4 | 48.4 | 49.7 | 51.1 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | 6/30/2015 | 6/30/2016 | |||||||||||||||||||||
Open-End Funds (1) | |||||||||||||||||||||||||||
Beginning balance | $ | 35,317.8 | $ | 33,345.3 | $ | 29,716.4 | $ | 28,882.1 | $ | 26,536.0 | $ | 37,514.2 | $ | 28,882.1 | |||||||||||||
Inflows | 2,619.5 | 1,866.2 | 2,546.9 | 2,193.4 | 1,351.9 | 5,633.7 | 3,545.3 | ||||||||||||||||||||
Outflows | (4,174.5 | ) | (3,736.0 | ) | (3,702.0 | ) | (4,794.3 | ) | (3,799.8 | ) | (9,572.5 | ) | (8,594.1 | ) | |||||||||||||
Net Flows | (1,555.0 | ) | (1,869.8 | ) | (1,155.1 | ) | (2,600.9 | ) | (2,447.9 | ) | (3,938.8 | ) | (5,048.8 | ) | |||||||||||||
Market performance | (352.9 | ) | (1,780.9 | ) | 425.2 | 295.9 | 887.5 | (155.8 | ) | 1,183.4 | |||||||||||||||||
Other (2) | (64.6 | ) | 21.8 | (104.4 | ) | (41.1 | ) | (161.8 | ) | (74.3 | ) | (202.9 | ) | ||||||||||||||
Ending balance | $ | 33,345.3 | $ | 29,716.4 | $ | 28,882.1 | $ | 26,536.0 | $ | 24,813.8 | $ | 33,345.3 | $ | 24,813.8 | |||||||||||||
Closed-End Funds | |||||||||||||||||||||||||||
Beginning balance | $ | 7,288.0 | $ | 6,901.0 | $ | 6,349.8 | $ | 6,222.3 | $ | 6,543.6 | $ | 7,581.4 | $ | 6,222.3 | |||||||||||||
Inflows | — | — | — | — | — | — | — | ||||||||||||||||||||
Outflows | — | — | — | — | (103.3 | ) | — | (103.3 | ) | ||||||||||||||||||
Net Flows | — | — | — | — | (103.3 | ) | — | (103.3 | ) | ||||||||||||||||||
Market performance | (281.6 | ) | (380.4 | ) | 18.7 | 421.3 | 481.7 | (450.2 | ) | 903.0 | |||||||||||||||||
Other (2) | (105.4 | ) | (170.8 | ) | (146.2 | ) | (100.0 | ) | 37.6 | (230.2 | ) | (62.4 | ) | ||||||||||||||
Ending balance | $ | 6,901.0 | $ | 6,349.8 | $ | 6,222.3 | $ | 6,543.6 | $ | 6,959.6 | $ | 6,901.0 | $ | 6,959.6 | |||||||||||||
Exchange Traded Funds | |||||||||||||||||||||||||||
Beginning balance | $ | — | $ | 132.6 | $ | 306.9 | $ | 340.8 | $ | 353.6 | $ | — | $ | 340.8 | |||||||||||||
Inflows | 67.4 | 217.7 | 57.7 | 62.3 | 52.8 | 67.4 | 115.1 | ||||||||||||||||||||
Outflows | (12.2 | ) | (13.8 | ) | (23.0 | ) | (33.8 | ) | (20.8 | ) | (12.2 | ) | (54.6 | ) | |||||||||||||
Net Flows | 55.2 | 203.9 | 34.7 | 28.5 | 32.0 | 55.2 | 60.5 | ||||||||||||||||||||
Market performance | (0.4 | ) | (29.1 | ) | 1.6 | (13.6 | ) | 17.4 | (0.4 | ) | 3.8 | ||||||||||||||||
Other (2) | 77.8 | (0.5 | ) | (2.4 | ) | (2.1 | ) | (3.6 | ) | 77.8 | (5.7 | ) | |||||||||||||||
Ending balance | $ | 132.6 | $ | 306.9 | $ | 340.8 | $ | 353.6 | $ | 399.4 | $ | 132.6 | $ | 399.4 | |||||||||||||
Separately Managed Accounts (3) | |||||||||||||||||||||||||||
Beginning balance | $ | 7,131.0 | $ | 6,952.1 | $ | 6,539.6 | $ | 6,784.4 | $ | 7,021.1 | $ | 6,884.8 | $ | 6,784.4 | |||||||||||||
Inflows | 366.8 | 263.8 | 332.8 | 399.2 | 444.2 | 695.3 | 843.4 | ||||||||||||||||||||
Outflows | (342.2 | ) | (334.5 | ) | (396.6 | ) | (364.3 | ) | (314.6 | ) | (697.5 | ) | (678.9 | ) | |||||||||||||
Net Flows | 24.6 | (70.7 | ) | (63.8 | ) | 34.9 | 129.6 | (2.2 | ) | 164.5 | |||||||||||||||||
Market performance | (65.5 | ) | (353.2 | ) | 312.0 | 210.8 | 246.5 | 111.9 | 457.3 | ||||||||||||||||||
Other (2) | (138.0 | ) | 11.4 | (3.4 | ) | (9.0 | ) | 10.0 | (42.4 | ) | 1.0 | ||||||||||||||||
Ending balance | $ | 6,952.1 | $ | 6,539.6 | $ | 6,784.4 | $ | 7,021.1 | $ | 7,407.2 | $ | 6,952.1 | $ | 7,407.2 | |||||||||||||
Institutional Accounts (3)(4) | |||||||||||||||||||||||||||
Beginning balance | $ | 5,036.2 | $ | 5,070.0 | $ | 5,025.0 | $ | 5,155.7 | $ | 5,196.9 | $ | 4,722.0 | $ | 5,155.7 | |||||||||||||
Inflows | 214.1 | 199.5 | 226.6 | 186.2 | 541.2 | 582.2 | 727.4 | ||||||||||||||||||||
Outflows | (87.3 | ) | (110.3 | ) | (181.3 | ) | (276.6 | ) | (305.5 | ) | (234.5 | ) | (582.1 | ) | |||||||||||||
Net Flows | 126.8 | 89.2 | 45.3 | (90.4 | ) | 235.7 | 347.7 | 145.3 | |||||||||||||||||||
Market performance | (81.9 | ) | (109.9 | ) | 120.4 | 148.4 | 153.6 | 35.7 | 302.0 | ||||||||||||||||||
Other (2) | (11.1 | ) | (24.3 | ) | (35.0 | ) | (16.8 | ) | 3.5 | (35.4 | ) | (13.3 | ) | ||||||||||||||
Ending balance | $ | 5,070.0 | $ | 5,025.0 | $ | 5,155.7 | $ | 5,196.9 | $ | 5,589.7 | $ | 5,070.0 | $ | 5,589.7 | |||||||||||||
Total | |||||||||||||||||||||||||||
Beginning balance | $ | 54,773.0 | $ | 52,401.0 | $ | 47,937.7 | $ | 47,385.3 | $ | 45,651.2 | $ | 56,702.4 | $ | 47,385.3 | |||||||||||||
Inflows | 3,267.8 | 2,547.2 | 3,164.0 | 2,841.1 | 2,390.1 | 6,978.6 | 5,231.2 | ||||||||||||||||||||
Outflows | (4,616.2 | ) | (4,194.6 | ) | (4,302.9 | ) | (5,469.0 | ) | (4,544.0 | ) | (10,516.7 | ) | (10,013.0 | ) | |||||||||||||
Net Flows | (1,348.4 | ) | (1,647.4 | ) | (1,138.9 | ) | (2,627.9 | ) | (2,153.9 | ) | (3,538.1 | ) | (4,781.8 | ) | |||||||||||||
Market performance | (782.3 | ) | (2,653.5 | ) | 877.9 | 1,062.8 | 1,786.7 | (458.8 | ) | 2,849.5 | |||||||||||||||||
Other (2) | (241.3 | ) | (162.4 | ) | (291.4 | ) | (169.0 | ) | (114.3 | ) | (304.5 | ) | (283.3 | ) | |||||||||||||
Ending balance | $ | 52,401.0 | $ | 47,937.7 | $ | 47,385.3 | $ | 45,651.2 | $ | 45,169.7 | $ | 52,401.0 | $ | 45,169.7 |
Reclassifications | Adjustments | ||||||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and other asset-based expenses | Consolidated investment products | Amortization of intangible assets | Restructuring and severance | Seed capital and CLO investments | Other | Non-GAAP Basis | ||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||
Investment management fees | $ | 58,192 | $ | — | $ | (88 | ) | $ | — | $ | — | $ | — | $ | — | $ | 58,104 | ||||||||||||||
Distribution and services fees | 12,167 | — | 12 | — | — | — | — | 12,179 | |||||||||||||||||||||||
Administration and transfer agent fees | 9,499 | — | 49 | — | — | — | — | 9,548 | |||||||||||||||||||||||
Other income and fees | 227 | — | — | — | — | — | — | 227 | |||||||||||||||||||||||
Distribution and other asset-based expenses | — | (17,432 | ) | — | — | — | — | — | (17,432 | ) | |||||||||||||||||||||
Total revenues | 80,085 | (17,432 | ) | (27 | ) | — | — | — | — | 62,626 | |||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||
Employment expenses | 33,065 | — | — | — | — | — | — | 33,065 | |||||||||||||||||||||||
Distribution and other asset-based expenses | 17,432 | (17,432 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
Other operating expenses | 12,457 | — | — | — | — | — | (358 | ) | 12,099 | ||||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 777 | — | (777 | ) | — | — | — | — | — | ||||||||||||||||||||||
Other operating expenses of consolidated investment products | 3,841 | — | (3,841 | ) | — | — | — | — | — | ||||||||||||||||||||||
Restructuring and severance | 2,391 | — | — | — | (2,391 | ) | — | — | — | ||||||||||||||||||||||
Depreciation and other amortization | 776 | — | — | — | — | — | — | 776 | |||||||||||||||||||||||
Amortization expense | 603 | — | — | (603 | ) | — | — | — | — | ||||||||||||||||||||||
Total operating expenses | 71,342 | (17,432 | ) | (4,618 | ) | (603 | ) | (2,391 | ) | — | (358 | ) | 45,940 | ||||||||||||||||||
Operating Income | 8,743 | — | 4,591 | 603 | 2,391 | — | 358 | 16,686 | |||||||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 3,281 | — | 2,923 | — | — | (6,110 | ) | — | 94 | ||||||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products | 3,097 | — | (3,097 | ) | — | — | — | — | — | ||||||||||||||||||||||
Realized and unrealized gain (loss) of consolidated investment product, net | 581 | — | (581 | ) | — | — | — | — | — | ||||||||||||||||||||||
Other (expense) income, net | (15 | ) | — | (8,799 | ) | — | — | 8,799 | — | (15 | ) | ||||||||||||||||||||
Total other income (expense), net | 6,944 | — | (9,554 | ) | — | — | 2,689 | — | 79 | ||||||||||||||||||||||
Interest Income (Expense) | |||||||||||||||||||||||||||||||
Interest expense | (129 | ) | — | — | — | — | — | — | (129 | ) | |||||||||||||||||||||
Interest and dividend income | 619 | — | 2,961 | — | — | (3,470 | ) | — | 110 | ||||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 1,696 | — | (1,696 | ) | — | — | — | — | — | ||||||||||||||||||||||
Interest (expense) income, net of investments of consolidated investment product, net | (3,086 | ) | — | 3,086 | — | — | — | — | — | ||||||||||||||||||||||
Total interest (expense) income, net | (900 | ) | — | 4,351 | — | — | (3,470 | ) | — | (19 | ) | ||||||||||||||||||||
Income Before Income Taxes | 14,787 | — | (612 | ) | 603 | 2,391 | (781 | ) | 358 | 16,746 | |||||||||||||||||||||
Income tax expense | 6,087 | — | — | 232 | 921 | (930 | ) | 138 | 6,448 | ||||||||||||||||||||||
Net Income | 8,700 | — | (612 | ) | 371 | 1,470 | 149 | 220 | 10,298 | ||||||||||||||||||||||
Noncontrolling interests | (612 | ) | — | 612 | — | — | — | — | — | ||||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 8,088 | $ | — | $ | — | $ | 371 | $ | 1,470 | $ | 149 | $ | 220 | $ | 10,298 | |||||||||||||||
Earnings Per Share - Basic | $ | 0.99 | $ | 1.26 | |||||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 0.97 | $ | 1.24 | |||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic | 8,170 | 8,170 | |||||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted | 8,314 | 8,314 |
Reclassifications | Adjustments | ||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and other asset-based expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments | Other | Non-GAAP Basis | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Investment management fees | $ | 68,867 | $ | — | $ | 288 | $ | — | $ | — | $ | 1,166 | $ | 70,321 | |||||||||||||
Distribution and service fees | 17,635 | — | 23 | — | — | — | 17,658 | ||||||||||||||||||||
Administration and transfer agent fees | 12,577 | — | 85 | — | — | — | 12,662 | ||||||||||||||||||||
Other income and fees | 577 | — | — | — | — | — | 577 | ||||||||||||||||||||
Distribution and other asset-based expenses | — | (23,676 | ) | — | — | — | — | (23,676 | ) | ||||||||||||||||||
Total revenues | 99,656 | (23,676 | ) | 396 | — | — | 1,166 | 77,542 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||
Employment expenses | 33,593 | — | — | — | — | — | 33,593 | ||||||||||||||||||||
Distribution and other asset-based expenses | 23,676 | (23,676 | ) | — | — | — | — | — | |||||||||||||||||||
Other operating expenses | 23,512 | — | — | — | — | (11,869 | ) | 11,643 | |||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 957 | — | (957 | ) | — | — | — | — | |||||||||||||||||||
Depreciation and other amortization | 873 | — | — | — | — | — | 873 | ||||||||||||||||||||
Amortization expense | 837 | — | — | (837 | ) | — | — | — | |||||||||||||||||||
Total operating expenses | 83,448 | (23,676 | ) | (957 | ) | (837 | ) | — | (11,869 | ) | 46,109 | ||||||||||||||||
Operating Income | 16,208 | — | 1,353 | 837 | — | 13,035 | 31,433 | ||||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 343 | — | (1,828 | ) | — | 1,709 | — | 224 | |||||||||||||||||||
Realized and unrealized (loss) gain on investments of consolidated sponsored investment products, net | (3,242 | ) | — | 3,242 | — | — | — | — | |||||||||||||||||||
Other income (expense), net | 247 | — | — | — | — | — | 247 | ||||||||||||||||||||
Total other income (expense), net | (2,652 | ) | — | 1,414 | — | 1,709 | — | 471 | |||||||||||||||||||
Interest Income (Expense) | |||||||||||||||||||||||||||
Interest expense | (121 | ) | — | — | — | — | — | (121 | ) | ||||||||||||||||||
Interest and dividend income | 302 | — | 931 | — | (1,058 | ) | — | 175 | |||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 3,098 | — | (3,098 | ) | — | — | — | — | |||||||||||||||||||
Total interest income (expense), net | 3,279 | — | (2,167 | ) | — | (1,058 | ) | — | 54 | ||||||||||||||||||
Income Before Income Taxes | 16,835 | — | 600 | 837 | 651 | 13,035 | 31,958 | ||||||||||||||||||||
Income tax expense | 7,823 | — | — | 318 | (579 | ) | 4,565 | 12,127 | |||||||||||||||||||
Net Income | 9,012 | — | 600 | 519 | 1,230 | 8,470 | 19,831 | ||||||||||||||||||||
Noncontrolling interests | 765 | — | (600 | ) | — | — | — | 165 | |||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 9,777 | $ | — | $ | — | $ | 519 | $ | 1,230 | $ | 8,470 | $ | 19,996 | |||||||||||||
Earnings Per Share - Basic | $ | 1.10 | $ | 2.25 | |||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 1.08 | $ | 2.21 | |||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic | 8,889 | 8,889 | |||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted | 9,037 | 9,037 |
Reclassifications | Adjustments | ||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and other asset-based expenses | Consolidated investment products | Amortization of intangible assets | Seed capital and CLO investments | Other | Non-GAAP Basis | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Investment management fees | $ | 57,644 | $ | — | $ | 91 | $ | — | $ | — | $ | — | $ | 57,735 | |||||||||||||
Distribution and services fees | 12,478 | — | 24 | — | — | — | 12,502 | ||||||||||||||||||||
Administration and transfer agent fees | 9,998 | — | 94 | — | — | — | 10,092 | ||||||||||||||||||||
Other income and fees | 175 | — | — | — | — | — | 175 | ||||||||||||||||||||
Distribution and other asset-based expenses | — | (18,101 | ) | — | — | — | — | (18,101 | ) | ||||||||||||||||||
Total revenues | 80,295 | (18,101 | ) | 209 | — | — | — | 62,403 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||
Employment expenses | 35,977 | — | — | — | — | — | 35,977 | ||||||||||||||||||||
Distribution and other asset-based expenses | 18,101 | (18,101 | ) | — | — | — | — | — | |||||||||||||||||||
Other operating expenses | 10,765 | — | — | — | — | (414 | ) | 10,351 | |||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 1,133 | — | (1,133 | ) | — | — | — | — | |||||||||||||||||||
Other operating expenses of consolidated investment products | 56 | — | (56 | ) | — | — | — | — | |||||||||||||||||||
Depreciation and other amortization | 862 | — | — | — | — | — | 862 | ||||||||||||||||||||
Amortization expense | 651 | — | — | (651 | ) | — | — | — | |||||||||||||||||||
Total operating expenses | 67,545 | (18,101 | ) | (1,189 | ) | (651 | ) | — | (414 | ) | 47,190 | ||||||||||||||||
Operating Income | 12,750 | — | 1,398 | 651 | — | 414 | 15,213 | ||||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||||
Realized and unrealized (loss) gain on investments, net | (658 | ) | — | 1,808 | — | (1,155 | ) | — | (5 | ) | |||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products | 295 | — | (295 | ) | — | — | — | — | |||||||||||||||||||
Realized and unrealized gain (loss) of consolidated investment product, net | 2,235 | — | (2,235 | ) | — | — | — | — | |||||||||||||||||||
Other income, net | 228 | — | 2,504 | — | (2,504 | ) | — | 228 | |||||||||||||||||||
Total other income (expense), net | 2,100 | — | 1,782 | — | (3,659 | ) | — | 223 | |||||||||||||||||||
Interest Income (Expense) | |||||||||||||||||||||||||||
Interest expense | (132 | ) | — | — | — | — | — | (132 | ) | ||||||||||||||||||
Interest and dividend income | 273 | — | 1,748 | — | (1,883 | ) | — | 138 | |||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 2,961 | — | (2,961 | ) | — | — | — | — | |||||||||||||||||||
Interest income of investments of consolidated investment product, net | 1,474 | — | (1,474 | ) | — | — | — | — | |||||||||||||||||||
Total interest income, net | 4,576 | — | (2,687 | ) | — | (1,883 | ) | — | 6 | ||||||||||||||||||
Income Before Income Taxes | 19,426 | — | 493 | 651 | (5,542 | ) | 414 | 15,442 | |||||||||||||||||||
Income tax expense | 7,556 | — | — | 250 | (2,045 | ) | 159 | 5,920 | |||||||||||||||||||
Net Income | 11,870 | — | 493 | 401 | (3,497 | ) | 255 | 9,522 | |||||||||||||||||||
Noncontrolling interests | 493 | — | (493 | ) | — | — | — | — | |||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 12,363 | $ | — | $ | — | $ | 401 | $ | (3,497 | ) | $ | 255 | $ | 9,522 | ||||||||||||
Earnings Per Share - Basic | $ | 1.48 | $ | 1.14 | |||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 1.45 | $ | 1.12 | |||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic | 8,344 | 8,344 | |||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted | 8,506 | 8,506 |
Reclassifications | Adjustments | ||||||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and other asset-based expenses | Consolidated investment products | Amortization of intangible assets | Restructuring and severance | Seed capital and CLO investments | Other | Non-GAAP Basis | ||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||
Investment management fees | $ | 115,836 | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | 115,839 | |||||||||||||||
Distribution and services fees | 24,645 | — | 36 | — | — | — | — | 24,681 | |||||||||||||||||||||||
Administration and transfer agent fees | 19,497 | — | 143 | — | — | — | — | 19,640 | |||||||||||||||||||||||
Other income and fees | 402 | — | — | — | — | — | — | 402 | |||||||||||||||||||||||
Distribution and other asset-based expenses | — | (35,533 | ) | — | — | — | — | — | (35,533 | ) | |||||||||||||||||||||
Total revenues | 160,380 | (35,533 | ) | 182 | — | — | — | — | 125,029 | ||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||
Employment expenses | 69,042 | — | — | — | — | — | — | 69,042 | |||||||||||||||||||||||
Distribution and other asset-based expenses | 35,533 | (35,533 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
Other operating expenses | 23,222 | — | — | — | — | — | (772 | ) | 22,450 | ||||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 1,910 | — | (1,910 | ) | — | — | — | — | — | ||||||||||||||||||||||
Other operating expenses of consolidated investment products | 3,897 | — | (3,897 | ) | — | — | — | — | — | ||||||||||||||||||||||
Restructuring and severance | 2,391 | — | — | — | (2,391 | ) | — | — | — | ||||||||||||||||||||||
Depreciation and other amortization | 1,638 | — | — | — | — | — | — | 1,638 | |||||||||||||||||||||||
Amortization expense | 1,254 | — | — | (1,254 | ) | — | — | — | — | ||||||||||||||||||||||
Total operating expenses | 138,887 | (35,533 | ) | (5,807 | ) | (1,254 | ) | (2,391 | ) | — | (772 | ) | 93,130 | ||||||||||||||||||
Operating Income | 21,493 | — | 5,989 | 1,254 | 2,391 | — | 772 | 31,899 | |||||||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 2,623 | — | 4,730 | — | — | (7,264 | ) | — | 89 | ||||||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products | 3,392 | — | (3,392 | ) | — | — | — | — | — | ||||||||||||||||||||||
Realized and unrealized gain (loss) of consolidated investment product, net | 2,816 | — | (2,816 | ) | — | — | — | — | — | ||||||||||||||||||||||
Other income, net | 213 | — | (6,294 | ) | — | — | 6,294 | — | 213 | ||||||||||||||||||||||
Total other income (expense), net | 9,044 | — | (7,772 | ) | — | — | (970 | ) | — | 302 | |||||||||||||||||||||
Interest Income (Expense) | |||||||||||||||||||||||||||||||
Interest expense | (261 | ) | — | — | — | — | — | — | (261 | ) | |||||||||||||||||||||
Interest and dividend income | 892 | — | 4,709 | — | — | (5,353 | ) | — | 248 | ||||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 4,657 | — | (4,657 | ) | — | — | — | — | — | ||||||||||||||||||||||
Interest (expense) income, net of investments of consolidated investment product, net | (1,612 | ) | — | 1,612 | — | — | — | — | — | ||||||||||||||||||||||
Total interest income (expense), net | 3,676 | — | 1,664 | — | — | (5,353 | ) | — | (13 | ) | |||||||||||||||||||||
Income Before Income Taxes | 34,213 | — | (119 | ) | 1,254 | 2,391 | (6,323 | ) | 772 | 32,188 | |||||||||||||||||||||
Income tax expense | 13,643 | — | — | 482 | 921 | (2,975 | ) | 297 | 12,368 | ||||||||||||||||||||||
Net Income | 20,570 | — | (119 | ) | 772 | 1,470 | (3,348 | ) | 475 | 19,820 | |||||||||||||||||||||
Noncontrolling interests | (119 | ) | — | 119 | — | — | — | — | — | ||||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 20,451 | $ | — | $ | — | $ | 772 | $ | 1,470 | $ | (3,348 | ) | $ | 475 | $ | 19,820 | ||||||||||||||
Earnings Per Share - Basic | $ | 2.48 | $ | 2.40 | |||||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 2.43 | $ | 2.36 | |||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic | 8,257 | 8,257 | |||||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted | 8,410 | 8,410 |
Reclassifications | Adjustments | ||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and other asset-based expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments | Other | Non-GAAP Basis | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Investment management fees | $ | 139,363 | $ | — | $ | 593 | $ | — | $ | — | $ | 1,166 | $ | 141,122 | |||||||||||||
Distribution and service fees | 37,233 | — | 43 | — | — | — | 37,276 | ||||||||||||||||||||
Administration and transfer agent fees | 25,619 | — | 162 | — | — | — | 25,781 | ||||||||||||||||||||
Other income and fees | 1,272 | — | — | — | — | — | 1,272 | ||||||||||||||||||||
Distribution and other asset-based expenses | — | (48,183 | ) | — | — | — | — | (48,183 | ) | ||||||||||||||||||
Total revenues | 203,487 | (48,183 | ) | 798 | — | — | 1,166 | 157,268 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||
Employment expenses | 69,215 | — | — | — | — | — | 69,215 | ||||||||||||||||||||
Distribution and other asset-based expenses | 48,183 | (48,183 | ) | — | — | — | — | — | |||||||||||||||||||
Other operating expenses | 40,238 | — | — | — | — | (17,420 | ) | 22,818 | |||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 1,775 | — | (1,775 | ) | — | — | — | — | |||||||||||||||||||
Depreciation and other amortization | 1,652 | — | — | — | — | — | 1,652 | ||||||||||||||||||||
Amortization expense | 1,674 | — | — | (1,674 | ) | — | — | — | |||||||||||||||||||
Total operating expenses | 162,737 | (48,183 | ) | (1,775 | ) | (1,674 | ) | — | (17,420 | ) | 93,685 | ||||||||||||||||
Operating Income | 40,750 | — | 2,573 | 1,674 | — | 18,586 | 63,583 | ||||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 888 | — | 514 | — | (1,059 | ) | — | 343 | |||||||||||||||||||
Realized and unrealized (loss) gain on investments of consolidated sponsored investment products, net | (652 | ) | — | 652 | — | — | — | — | |||||||||||||||||||
Other income (expense), net | 682 | — | — | — | — | — | 682 | ||||||||||||||||||||
Total other income (expense), net | 918 | — | 1,166 | — | (1,059 | ) | — | 1,025 | |||||||||||||||||||
Interest Income (Expense) | |||||||||||||||||||||||||||
Interest expense | (244 | ) | — | — | — | — | — | (244 | ) | ||||||||||||||||||
Interest and dividend income | 582 | — | 1,866 | — | (2,056 | ) | — | 392 | |||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 5,422 | — | (5,422 | ) | — | — | — | — | |||||||||||||||||||
Total interest income (expense), net | 5,760 | — | (3,556 | ) | — | (2,056 | ) | — | 148 | ||||||||||||||||||
Income Before Income Taxes | 47,428 | — | 183 | 1,674 | (3,115 | ) | 18,586 | 64,756 | |||||||||||||||||||
Income tax expense | 18,691 | — | — | 637 | (999 | ) | 6,298 | 24,627 | |||||||||||||||||||
Net Income | 28,737 | — | 183 | 1,037 | (2,116 | ) | 12,288 | 40,129 | |||||||||||||||||||
Noncontrolling interests | 382 | — | (183 | ) | — | — | — | 199 | |||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 29,119 | $ | — | $ | — | $ | 1,037 | $ | (2,116 | ) | $ | 12,288 | $ | 40,328 | ||||||||||||
Earnings Per Share - Basic | $ | 3.26 | $ | 4.52 | |||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 3.20 | $ | 4.43 | |||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic | 8,927 | 8,927 | |||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted | 9,094 | 9,094 |
1. | Distribution and other asset-based expenses - These costs are generally passed directly through to external parties. Management believes that making this adjustment aids in comparing the company’s operating results with other asset management firms that do not distribute products through intermediary distribution partners or utilize third party service providers for investment management related services. |
2. | Consolidated investment products - Management believes that excluding the operating activities of majority-owned funds and CLOs to reflect revenues and expenses of the company prior to the consolidation of these products is consistent with the approach of reflecting its operating results as only revenues generated and expenses incurred related to providing investment management and related services will be included in operating income, as adjusted. |
▪ | Closed-end fund launch costs - Expenses related to the launch of closed-end funds, or similar products, including structuring fees and sales-based compensation related to the launch. The timing of closed-end fund issuances can be unpredictable, and related costs can fluctuate considerably. In addition, revenue associated with these costs will not fully impact financial results until future periods. Management believes that making these adjustments aids in comparing the company’s operating results with prior periods and with other asset management firms that do not issue closed-end funds, or similar products. |
▪ | Amortization of intangible assets - Non-cash amortization expense or impairment expense, if any, attributable to acquisition-related intangible assets. Management believes that making this adjustment aids in comparing the company’s operating results with other asset management firms that have not engaged in acquisitions. |
▪ | Seed capital and CLO investments - Gains and losses (realized and unrealized), dividends and interest income generated by seed capital and CLO investments. Earnings or losses generated by investments in seed capital products can vary significantly from period-to-period and do not reflect the company’s operating results from providing investment management and related services. Management believes that making this adjustment aids in comparing the company’s operating results with prior periods and with other asset management firms that do not have meaningful seed capital and CLO investments. |
▪ | Other - Certain expenses and losses related to restructuring, severance, regulatory matters, and transition items that are not reflective of the ongoing earnings generation of the business. In addition, income tax expense/(benefit) items, such as adjustments for uncertain tax positions, valuation allowances and other unusual items not related to current operating results to reflect a |
Three Months Ended | Six Months Ended | ||||||||||||||||||
Other (in thousands) | 6/30/2015 | 3/31/2016 | 6/30/2016 | 6/30/2015 | 6/30/2016 | ||||||||||||||
Loss contingency | $ | 11,300 | $ | — | $ | — | $ | 16,500 | $ | — | |||||||||
Tax impact of loss contingency | (3,907 | ) | — | — | (5,507 | ) | — | ||||||||||||
Transition related revenues | 1,166 | — | — | 1,166 | — | ||||||||||||||
Tax impact of transition related revenues | (442 | ) | — | — | (442 | ) | — | ||||||||||||
System transition expenses | 569 | 414 | 358 | 920 | 772 | ||||||||||||||
Tax impact of system transition expenses | (216 | ) | (159 | ) | (138 | ) | (349 | ) | (297 | ) | |||||||||
Total Other | $ | 8,470 | $ | 255 | $ | 220 | $ | 12,288 | $ | 475 |
%2 4@6],ZA3
MZ.; Q=H[^/3(17#C+6Y5]L
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MYCQ_3\IXRLL9<:!?J_'6>IV:(6]9A+0TH@5PU<)]P(J@L0#"FL@J4B[=,BLD)1+9W=\'V22:L\D4N0! AI)((M;X56TUQHX,
M)49F.358K$$OF*"PG03U)S::)4;!X<@=A\%9AP39UBM(++^-;GCJ0D/@R2"D
M0G;H!_"I3;5F==J"[Z#<.R/&X JD8%T""!R" & $XM<(8Q$ ;#8RY0M)4E"J$%R91W?W,>H''-3]O,:UK&