8-K 1 c34839e8vk.htm CURRENT REPORT e8vk
 
 
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): August 13, 2008
NUVEEN INVESTMENTS, INC.
(Exact name of registrant as specified in its charter)
         
Delaware   1-11123   36-3817266
         
(State or other   (Commission File Number)   (IRS Employer
jurisdiction of       Identification
incorporation)       Number)
         
333 West Wacker Drive, Chicago, Illinois       60606
         
(Address of principal executive offices)       (Zip Code)
(312) 917-7700

(Registrant’s telephone number, including area code)
N/A
(Former name or 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))
 
 

 

 

Section 2 – Financial Information
Item 2.02 Results of Operations and Financial Condition.
     The information in Item 2.02 of this Report shall be deemed “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. Unless otherwise indicated, the terms “we”, “us”, “our”, “the Company” and “Nuveen Investments” refer to Nuveen Investments, Inc. and, where appropriate, its subsidiaries.
As previously announced, Nuveen Investments will host a conference call to discuss its second quarter results on Thursday, August 14, 2008 at 10:00 am central time. To access this call live or listen to an audio replay, visit the investor relations section of the Company’s website at www.nuveen.com.
The following schedules summarize the Company’s results and are intended to accompany the conference call. Table 1 details sales, net flows, and assets under management for Q2 2008, the prior quarter, and all quarters in 2007. Table 2 provides Q2 2008 and Q2 2007 Adjusted EBITDA as defined by our Bank Credit Agreement. The schedule also provides Adjusted EBITDA for the last twelve month period, which includes the third and fourth quarters of 2007 and the first and second quarters of 2008. Table 3 reconciles Adjusted EBITDA as defined by the Bank Credit Agreement to income before taxes for the same periods (other than Q2 2007).

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TABLE 1
Nuveen Investments
Sales, Net Flows and Assets Under Management
For the Periods Ended December 31, 2007, and June 30, 2008
Unaudited
                                                                                   
    2007     2008
    1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Total     1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Total
       
Gross sales (in millions):
                                                                                  
Mutual funds
   $ 1,682       1,859       1,212       1,314       6,066       $ 1,354       1,839       —       —       3,194  
Managed accounts-retail
     2,759       2,260       1,764       1,809       8,592         1,701       2,118       —       —       3,820  
Managed accounts-institutional
     3,398       2,576       2,112       1,703       9,789         1,197       1,363       —       —       2,560  
Closed-end funds
     296       1,133       47       231       1,706         2       (0 )     —       —       2  
       
Total funds and accounts
   $ 8,134       7,827       5,135       5,057       26,153       $ 4,254       5,321       —       —       9,575  
       
 
                                                                                  
       
Net Flows (in millions):
                                                                                  
Mutual funds
   $ 1,015       621       (3 )     (32 )     1,601       $ 61       744       —       —       806  
Managed accounts-retail
     (547 )     (1,253 )     (1,782 )     (2,125 )     (5,707 )       (2,523 )     (1,823 )     —       —       (4,346 )
Managed accounts-institutional
     2,249       1,390       337       (244 )     3,733         (584 )     112       —       —       (472 )
Closed-end funds
     316       1,147       38       217       1,717         3       48       —       —       52  
       
Total funds and accounts
   $ 3,033       1,906       (1,411 )     (2,184 )     1,344       $ (3,042 )     (919 )     —       —       (3,960 )
       
 
                                                                                  
       
Managed funds and accounts (in millions):
                                                                                  
Assets under management:
                                                                                  
Beginning of period
   $ 161,609       166,095       171,602       170,394       161,609       $ 164,307       153,026       —       —       164,307  
Acquisition of HydePark accounts
     —       363       —       —       363         —       —       —       —       —  
Sales — funds and accounts
     8,134       7,827       5,135       5,057       26,153         4,254       5,321       —       —       9,575  
Dividend reinvestments
     103       108       109       390       709         69       155       —       —       224  
Redemptions and withdrawals
     (5,204 )     (6,029 )     (6,655 )     (7,630 )     (25,518 )       (7,365 )     (6,394 )     —       —       (13,759 )
       
Total net flows into funds and accounts
     3,033       1,906       (1,411 )     (2,184 )     1,344         (3,042 )     (919 )     —       —       (3,960 )
Appreciation / (depreciation) of managed assets
     1,453       3,238       203       (3,903 )     991         (8,240 )     (274 )     —       —       (8,514 )
       
End of period
   $ 166,095       171,602       170,394       164,307       164,307       $ 153,026       151,833       —       —       151,833  
       
 
                                                                                  
Recap by product type:
                                                                                  
Mutual funds
   $ 19,584       20,160       19,967       19,195               $ 18,415       19,064       —       —          
Closed-end funds
     53,091       53,423       53,234       52,305                 50,626       50,095       —       —          
Managed accounts-retail
     58,713       59,495       58,119       54,919                 49,431       47,671       —       —          
Managed accounts-institutional
     34,707       38,524       39,074       37,888                 34,553       35,002       —       —          
                       
Total assets under management
   $ 166,095       171,602       170,394       164,307               $ 153,026       151,833       —       —          
       
       
 
                                                                                  
Recap by manager:
                                                                                  
Nuveen
   $ 79,430       78,565       77,489       76,282               $ 74,914       75,031       —       —          
NWQ
     36,277       38,599       37,352       34,575                 29,650       28,301       —       —          
Rittenhouse
     3,333       3,235       3,258       2,982                 2,669       2,093       —       —          
Santa Barbara
     4,583       5,040       5,073       4,571                 3,789       3,833       —       —          
Symphony
     8,953       10,293       10,427       10,822                 9,838       10,202       —       —          
Tradewinds
     33,518       35,316       35,143       33,281                 30,537       30,779       —       —          
HydePark
     —       553       1,653       1,794                 1,629       1,594       —       —          
                       
Total assets under management
   $ 166,095       171,602       170,394       164,307               $ 153,026       151,833       —       —          
       
 
                                                                                  
Recap by style:
                                                                                  
Equity-based
   $ 85,531       90,728       89,276       83,577               $ 74,083       72,449       —       —          
Municipals
     64,519       64,014       64,156       64,121                 63,073       63,513       —       —          
Taxable income-oriented
     16,045       16,859       16,962       16,609                 15,870       15,871       —       —          
                       
Total assets under management
   $ 166,095       171,602       170,394       164,307               $ 153,026       151,833       —       —          
       

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TABLE 2
Nuveen Investments
Adjusted EBITDA (1)
Unaudited
(in thousands)
                         
    Q2 2008     Q2 2007     Q2 2008 LTM (3)  
Operating Revenues
                        
Advisory Fees
   $ 183,935     $ 197,981     $ 781,261  
Underwriting & Distribution Revenue
     819       2,152       5,272  
Performance Fees / Other
     6,428       4,133       25,430  
 
                  
Total Operating Revenue
     191,182       204,266       811,963  
 
                  
 
                        
Adjusted Operating Expenses (2)
                        
Compensation & Benefits
     63,666       63,239       273,804  
Advertising & Promotion
     3,145       4,258       15,426  
Occupancy & Equipment
     4,646       4,378       17,773  
Travel & Entertainment
     3,003       2,676       12,823  
Outside & Professional Services
     10,827       8,387       41,066  
Other Operating Expenses
     5,374       5,693       21,367  
Minority Interest Expense
     371       2,010       4,459  
Proforma Savings
     (743 )     (1,750 )     (4,986 )
 
                  
Total Operating Expenses
     90,289       88,891       381,732  
 
                  
 
                        
Adjusted Other Income/(Expense) (2)
     1,053       965       2,745  
 
                        
 
                  
Adjusted EBITDA (1)
   $ 101,946     $ 116,340     $ 432,976  
 
                  
 
(1)   Earnings before interest, taxes, depreciation and amortization (EBITDA) is presented on an adjusted basis consistent with the definitions included in our Bank Credit Agreement. Adjusted EBITDA is a non-GAAP financial measure and has been included because it is a basis upon which our management assesses and will assess our operating performance. Adjusted EBITDA is not a measure of our liquidity or financial performance under GAAP. Our measure of adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
 
(2)   Balances exclude the impact of consolidated investment vehicles in which Nuveen has no economic interest and include adjustments consistent with our bank credit agreement and thus are non-GAAP financial measures.
 
(3)   LTM represents the last twelve month period including the third and fourth quarters of 2007 and the first and second quarters of 2008.

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TABLE 3
Nuveen Investments
Adjusted EBITDA (1) Reconciliation
Unaudited
(in thousands)
This table presents adjustments reconciling income before taxes shown in the Company’s financial statements to Adjusted EBITDA (1) calculated in accordance with the Company’s Credit Agreement.
                 
    Q2 2008     Q2 2008 LTM (2)  
Income before taxes
     38,486       (24,532 )
 
                
Net interest expense
     68,711       180,458  
Amortization & depreciation
     18,723       52,915  
 
                
Adjustments per Credit Agreement:
                
Non-cash compensation
     10,229       79,750  
Deal related expenses
     495       62,734  
Retention, severance and recruiting expense
     13,981       30,814  
Structured products distribution expense
     308       14,552  
Non-recurring items
     775       (3,584 )
Pro forma savings
     743       4,986  
Debt and investment related expenses
     (50,505 )     34,883  
 
                
 
            
Adjusted EBITDA (1)
     101,946       432,976  
 
            
 
(1)   Earnings before interest, taxes, depreciation and amortization (EBITDA) is presented on an adjusted basis consistent with the definitions included in our Bank Credit Agreement. Adjusted EBITDA is a non-GAAP financial measure and has been included because it is a basis upon which our management assesses and will assess our operating performance. Adjusted EBITDA is not a measure of our liquidity or financial performance under GAAP. Our measure of adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
 
(2)   LTM represents the last twelve month period including the third and fourth quarters of 2007 and the first and second quarters of 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 thereunto duly authorized.
         
Date: August 13, 2008   NUVEEN INVESTMENTS, INC.
 		  
  By:   /s/ John L. MacCarthy    
  Name: John L. MacCarthy 
  Title: Executive Vice President 
 

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