8-K 1 c51286e8vk.htm FORM 8-K FORM 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): May 12, 2009
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 it 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 first quarter 2009 results on Wednesday, May 13, 2009 at 10:00 am central time. To access this call live or to 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 Q1 2009 and all quarters in 2008. Table 2 provides Q1 2009 and Q1 2008 Adjusted EBITDA as defined by our Bank Credit Agreement. The schedule also provides Adjusted EBITDA for the last twelve month period, which includes the first quarter of 2009 and the last three 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 Q1 2008).

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TABLE 1
Nuveen Investments
Sales, Net Flows and Assets Under Management
For the Periods Ended December 31, 2008, and March 31, 2009
Unaudited
                                                                                   
    2008     2009
    1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Total     1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Total
           
Gross sales (in millions):
                                                                                  
Mutual funds
   $ 1,354       1,839       1,635       1,487       6,315       $ 1,339       —       —       —       1,339  
Managed accounts-retail
     1,701       2,118       2,026       2,068       7,914         2,270       —       —       —       2,270  
Managed accounts-institutional
     1,197       1,363       2,840       1,357       6,757         1,762       —       —       —       1,762  
Closed-end funds
     2       (0 )     (0 )     (0 )     2         166       —       —       —       166  
       
Total funds and accounts
   $ 4,254       5,321       6,501       4,912       20,988       $ 5,537       —       —       —       5,537  
       
 
                                                                                  
Net Flows (in millions):
                                                                                  
Mutual funds
   $ 61       744       147       (537 )     416       $ 303       —       —       —       303  
Managed accounts-retail
     (2,523 )     (1,823 )     (1,895 )     (2,680 )     (8,921 )       (1,770 )     —       —       —       (1,770 )
Managed accounts-institutional
     (584 )     112       1,174       (116 )     586         289       —       —       —       289  
Closed-end funds
     3       48       (1,172 )     (1,250 )     (2,370 )       (632 )     —       —       —       (632 )
       
Total funds and accounts
   $ (3,042 )     (919 )     (1,745 )     (4,582 )     (10,288 )     $ (1,811 )     —       —       —       (1,811 )
       
 
                                                                                  
Managed funds and accounts (in millions):
                                                                                  
Assets under management:
                                                                                  
Beginning of period
   $ 164,307       153,026       151,833       134,065       164,307       $ 119,223       —       —       —       119,223  
Acquisition of Winslow Capital accounts
     —       —       —       4,542       4,542         —       —       —       —       —  
Sales — funds and accounts
     4,254       5,321       6,501       4,912       20,988         5,537       —       —       —       5,537  
Dividend reinvestments
     69       155       (170 )     493       547         70       —       —       —       70  
Redemptions and withdrawals
     (7,365 )     (6,394 )     (8,076 )     (9,988 )     (31,823 )       (7,418 )     —       —       —       (7,418 )
       
Total net flows into funds and accounts
     (3,042 )     (919 )     (1,745 )     (4,582 )     (10,288 )       (1,811 )     —       —       —       (1,811 )
Appreciation / (depreciation) of managed assets
     (8,240 )     (274 )     (16,022 )     (14,802 )     (39,338 )       (2,079 )     —       —       —       (2,079 )
       
End of period
   $ 153,026       151,833       134,065       119,223       119,223       $ 115,334       —       —       —       115,334  
       
 
                                                                                  
Recap by product type:
                                                                                  
Mutual funds
   $ 18,415       19,064       17,661       14,689               $ 15,264       —       —       —          
Closed-end funds
     50,626       50,095       44,710       39,858                 39,570       —       —       —          
Managed accounts-retail
     49,431       47,671       40,368       34,860                 31,642       —       —       —          
Managed accounts-institutional
     34,553       35,002       31,326       29,817                 28,858       —       —       —          
                       
Total assets under management
   $ 153,026       151,833       134,065       119,223               $ 115,334       —       —       —          
       
 
                                                                                  
Recap by manager:
                                                                                  
Nuveen
   $ 74,914       75,031       69,650       64,649               $ 65,968       —       —       —          
NWQ
     29,650       28,301       23,159       17,264                 14,518       —       —       —          
Rittenhouse
     2,669       2,093       1,713       1,258                 —       —       —       —          
Santa Barbara
     3,789       3,833       3,352       2,658                 3,336       —       —       —          
Symphony
     9,838       10,202       9,960       7,113                 6,811       —       —       —          
Tradewinds
     30,537       30,779       24,749       20,606                 18,564       —       —       —          
HydePark
     1,629       1,594       1,483       1,134                 1,158       —       —       —          
Winslow Capital
     —       —       —       4,542                 4,979       —       —       —          
                       
Total assets under management
   $ 153,026       151,833       134,065       119,223               $ 115,334       —       —       —          
       
 
                                                                                  
Recap by style:
                                                                                  
Equity-based
   $ 74,083       72,449       59,495       52,064               $ 46,563       —       —       —          
Municipals
     63,073       63,513       60,714       57,540                 60,069       —       —       —          
Taxable income-oriented
     15,870       15,871       13,857       9,619                 8,702       —       —       —          
                       
Total assets under management
   $ 153,026       151,833       134,065       119,223               $ 115,334       —       —       —          
       

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TABLE 2
Nuveen Investments
Adjusted EBITDA (1)
Unaudited
(in thousands)
                         
    Q1 2009     Q1 2008     Q1 2009 LTM (3)  
Operating Revenues
                        
Advisory Fees
   $ 140,529     $ 192,758     $ 655,201  
Underwriting & Distribution Revenue
     969       1,231       9,181  
Performance Fees / Other
     5,735       2,825       26,828  
 
                  
Total Operating Revenue
     147,233       196,814       691,210  
 
                  
 
                        
Adjusted Operating Expenses (2)
                        
Compensation & Benefits
     49,957       65,775       213,602  
Advertising & Promotion
     2,424       3,593       12,531  
Occupancy & Equipment
     4,752       4,372       18,872  
Travel & Entertainment
     2,456       3,341       11,110  
Outside & Professional Services
     9,885       9,148       42,090  
Other Operating Expenses
     5,225       5,002       21,812  
Pro forma Savings
     (419 )     (3,561 )     (10,419 )
 
                  
Total Operating Expenses
     74,280       87,670       309,598  
 
                  
 
                        
Adjusted Other Income/(Expense) (2)
     385       688       30  
Net (Income)/Loss Attributable to the Noncontrolling Interests (2)
     (304 )     (576 )     (1,731 )
 
                        
 
                  
Subtotal
     73,034       109,256       379,911  
 
                        
Winslow Pro forma
     —       1,850       5,550  
 
                        
 
                  
Adjusted EBITDA (1)
   $ 73,034     $ 111,106     $ 385,461  
 
                  
 
(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 CLO V, a consolidated investment vehicle 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 last three quarters of 2008 and the first quarter of 2009.

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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.
                 
    Q1 2009     Q1 2009 LTM (2)  
Net loss before taxes
     (20,209 )     (2,226,047 )
 
                
Net (income)/loss attributable to the noncontrolling interests
     (19,264 )     96,309  
 
                
Net interest expense excluding CLO V
     69,361       274,263  
Amortization & depreciation
     19,394       76,211  
 
                
Adjustments per Credit Agreement:
                
Non-cash compensation
     9,284       38,537  
Deal related expenses
     —       1,985  
Retention, severance and recruiting expense
     10,567       81,975  
Structured products distribution expense
     2,684       13,012  
Non-recurring items
     (3,193 )     2,007,313  
Pro forma restructuring
     419       10,419  
Debt and investment related expenses
     3,991       5,934  
 
                
 
            
Subtotal
     73,034       379,911  
 
                
Winslow pro forma
     —       5,550  
 
                
 
            
Adjusted EBITDA (1)
   $ 73,034     $ 385,461  
 
            
 
(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 first quarter of 2009 and the last three 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: May 12, 2009   NUVEEN INVESTMENTS, INC.
 		  
  By:   /s/ John L. MacCarthy    
  Name:   John L. MacCarthy   
  Title:   Executive Vice President   
 

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