Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MEDLEY MANAGEMENT INC. | v405881_8k.htm |
Exhibit 99.1
MEDLEY MANAGEMENT INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2014 RESULTS AND DECLARES $0.20 PER SHARE DIVIDEND
| · | Total assets under management increased to $3.7 billion, a 61% increase year over year |
| · | Fee earning assets under management increased to $3.1 billion, a 52% increase year over year |
| · | Core Net Income Per Share increased to $0.79 for the year ending December 31, 2014, a 76% increase year over year |
| · | Core Net Income Per Share was $0.21 for the three months ended December 31, 2014 |
| · | U.S. GAAP net income attributable to Medley Management Inc. for the three months ended December 31, 2014 was $1.3 million |
| · | Declared $0.20 per share dividend for Q1 2015 payable on May 6, 2015 |
NEW YORK, March 30, 2015 -- Medley Management Inc. (the “Company,” “Medley,” “we,” and “our”) (NYSE: MDLY) today reported its financial results for its fourth quarter and year ended December 31, 2014. As Medley was not a public company during the complete reporting period, the financial results reported herein reflect those of our operating subsidiaries, Medley LLC and Medley GP Holdings LLC and their consolidated subsidiaries prior to our initial public offering (“IPO”) and the related reorganization.
“We are pleased with our growth in assets under management and earnings during 2014,” commented Seth Taube, Chief Executive Officer of Medley. “We remain focused on the expansion of our underlying credit businesses and continue to evaluate new opportunities for providing yield solutions to retail and institutional investors.”
Standalone Results of Operations for the Year Ended December 31, 2014
Management fees increased by 42%, or $19.4 million, to $65.8 million for the year ended December 31, 2014 as compared to $46.4 million for the same period in 2013. Performance fee revenue and other income and fees increased by 26% or $3.4 million to $16.7 million for the year ended December 31, 2014 as compared to $13.3 million for the same period in 2013. Total revenues increased by 38% or $22.8 million to $82.5 million for the year ended December 31, 2014 as compared to $59.7 million for the same period in 2013. The growth in total revenues was due in part to a 52% increase in year over year fee earning AUM for the year ended December 31, 2014.
Total expenses increased by 5%, or $1.5 million to $35.1 million for the year ended December 31, 2014, compared to $33.6 million for the same period in 2013. The increase was due primarily to a $6.6 million increase of compensation benefits and $3.7 million of other company costs associated with our growth and operating as a new public company partially offset by a decrease of $8.7 million in performance fee compensation.
Total other expense, net increased by 282%, or $5.0 million to $6.7 million for the year ended December 31, 2014, compared to $1.8 million for the same period in 2013. The increase was due primarily to a $4.0 million increase in interest expense.
Pre-Tax Core Net Income increased by 76%, or $18.1 million to $42.0 million for the year ended December 31, 2014, compared to $23.9 million for the same period in 2013. Core Net Income Per Share increased by 76% to $0.79 per share for the year ended December 31, 2014, compared to $0.45 per share for the same period in 2013.
Core EBITDA increased by 87%, or $22.3 million, to $48.0 million for the year ended December 31, 2014, compared to $25.7 million for the same period in 2013.
Standalone Results of Operations for the Three Months Ended December 31, 2014
Management fees increased by 51%, or $6.1 million, to $18.2 million for the three months ended December 31, 2014 as compared to $12.1 million for the same period in 2013. This increase was offset by a decrease in performance fee revenue and other income and fees to ($1.9) million for the three months ended December 31, 2014 compared to $7.1 million for the same period in 2013. Total revenues decreased by 15% or $2.8 million to $16.4 million for the three months ended December 31, 2014 as compared to $19.2 million for the same period in 2013.
Total expenses decreased by 39%, or $3.2, million to $5.0 million for the three months ended December 31, 2014 compared to $8.3 million for the same period in 2013. The decrease is due in part to reversals in performance fee compensation of $3.8 million for the three months ended December 31, 2014, partially offset by an increase in compensation benefits costs of $1.7 million due to higher headcount.
Total other expense, net increased by $1.9 million to $2.3 million for the three months ended December 31, 2014 compared to $0.4 million for the same period in 2013. The increase is due primarily to a $1.7 million increase in interest expense.
Pre-Tax Core Net Income increased by 6.5%, or $0.7 million, to $11.1 million for the three months ended December 31, 2014 as compared to $10.4 million for the same period in 2013. Core Net Income Per Share increased by 5% to $0.21 per share for the three months ended December 31, 2014, compared to $0.20 per share in the comparable period in 2013.
Core EBITDA increased by 23%, or $2.5 million to $13.4 million for the three months ended December 31, 2014 compared to $10.9 million for the same period in 2013.
Key Performance Indicators:
| Three Months Ended December 31, (unaudited) | Year Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Amounts in thousands, except AUM, share and per share data) | ||||||||||||||||
| Consolidated Financial Data: | ||||||||||||||||
| Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | $ | 9,268 | $ | 10,276 | $ | 37,750 | $ | 23,637 | ||||||||
| Standalone Data: | ||||||||||||||||
| Pre-Tax Core Net Income (1) | $ | 11,111 | $ | 10,430 | $ | 42,036 | $ | 23,907 | ||||||||
| Core Net Income (1) | 11,024 | 10,197 | 40,882 | 23,206 | ||||||||||||
| Core EBITDA (2) | 13,363 | 10,904 | 47,957 | 25,662 | ||||||||||||
| Core Net Income Per Share (3) | $ | 0.21 | $ | 0.20 | $ | 0.79 | $ | 0.45 | ||||||||
| Core Net Income Margin (4) | 38.6 | % | 33.3 | % | 29.2 | % | 22.8 | % | ||||||||
| Pro-Forma Weighted Average Shares Outstanding (5) | 30,511,366 | 30,484,722 | 30,491,417 | 30,484,722 | ||||||||||||
| Other Data (at period end, in millions): | ||||||||||||||||
| AUM | $ | 3,682 | $ | 2,283 | $ | 3,682 | $ | 2,283 | ||||||||
| Fee Earning AUM | 3,058 | 2,006 | 3,058 | 2,006 | ||||||||||||
| (1) | Pre-Tax Core Net Income is calculated as Core Net Income before income taxes. Core Net Income reflects standalone net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC adjusted to exclude reimbursable expenses associated with the launch of funds, certain one-time severance costs and stock-based compensation associated with restricted stock units that were granted in connection with our IPO. In addition, Core Net Income includes the pro-forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense, that, prior to our reorganization and IPO, were recorded as distributions from members’ capital. Please refer to the reconciliation of Core Net Income to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC in Appendix B for additional details. |
| (2) | Core EBITDA is calculated as Core Net Income before interest expense, income taxes and depreciation. Please refer to the reconciliation of Core EBITDA to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC in Appendix B for additional details. |
| (3) | Core Net Income Per Share is calculated as Core Net Income, adjusted for the income tax effect of assuming that all of our pre-tax earnings are subject to federal, state and local corporate income taxes, divided by Pro-Forma Weighted Average Shares Outstanding (as defined below). Please refer to the calculation of Core Net Income Per Share in Appendix B for additional details. |
| (4) | Core Net Income Margin equals Core Net Income Per Share divided by total standalone revenue per share for the respective period presented. |
| (5) | The calculation of Pro-Forma Weighted Average Shares Outstanding assumes that the following transactions had occurred at the beginning of each period presented: (1) the issuance of 6,000,000 Class A common shares in connection with our IPO (2) conversion by the pre-IPO holders of 23,333,333 Medley LLC units for 23,333,333 Class A shares and (3) the grant of 1,151,389 restricted stock units in connection with our IPO, adjusted for actual forfeitures and additional grants during the period. |
Fee Earning AUM
The table below presents the quarter to date roll forward of our total fee earning AUM:
| % of AUM | ||||||||||||||||||||
| Long-dated | Long-dated | |||||||||||||||||||
| Permanent | Private | Permanent | Private | |||||||||||||||||
| Capital | Funds and | Capital | Funds and | |||||||||||||||||
| Vehicles | SMAs | Total | Vehicles | SMAs | ||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Ending balance, September 30, 2014 | $ | 1,967 | $ | 1,069 | $ | 3,036 | 65 | % | 35 | % | ||||||||||
| Commitments | 136 | 212 | 348 | |||||||||||||||||
| Capital reduction | - | (253 | ) | (253 | ) | |||||||||||||||
| Distributions | (31 | ) | (10 | ) | (41 | ) | ||||||||||||||
| Change in fund value | (25 | ) | (7 | ) | (32 | ) | ||||||||||||||
| Ending balance, December 31, 2014 | $ | 2,047 | $ | 1,011 | $ | 3,058 | 67 | % | 33 | % | ||||||||||
Total fee earning AUM increased by 1%, or $22 million to $3.1 billion at December 31, 2014 compared to September 30, 2014. The permanent capital vehicles’ share of fee earning AUM increased to 67% at December 31, 2014 compared to 65% at September 30, 2014.
The table below presents the year to date roll forward of our total fee earning AUM:
| % of AUM | ||||||||||||||||||||
| Long-dated | Long-dated | |||||||||||||||||||
| Permanent | Private | Permanent | Private | |||||||||||||||||
| Capital | Funds and | Capital | Funds and | |||||||||||||||||
| Vehicles | SMAs | Total | Vehicles | SMAs | ||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Ending balance, December 31, 2013 | $ | 1,072 | $ | 934 | $ | 2,006 | 53 | % | 47 | % | ||||||||||
| Commitments | 1,036 | 439 | 1,475 | |||||||||||||||||
| Capital reduction | - | (253 | ) | (253 | ) | |||||||||||||||
| Distributions | (107 | ) | (49 | ) | (156 | ) | ||||||||||||||
| Change in fund value | 46 | (60 | ) | (14 | ) | |||||||||||||||
| Ending balance, December 31, 2014 | $ | 2,047 | $ | 1,011 | $ | 3,058 | 67 | % | 33 | % | ||||||||||
Total fee earning AUM increased by 52%, or $1.1 billion to $3.1 billion at December 31, 2014 compared to December 31, 2013. The permanent capital vehicles’ share of fee earning AUM increased to 67% at December 31, 2014 compared to 53% over the same period at December 31, 2013.
Dividend Declaration
On March 29, 2015, the Company’s board of directors declared a quarterly dividend of $0.20 per share of Class A common stock, for the first quarter 2015, payable on May 6, 2015, to shareholders of record of the Company’s Class A common stock as of the close of business on April 23, 2015
Conference Call and Webcast Information
We will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Tuesday March 31, 2014 to discuss our fourth quarter and full year 2014 financial results.
All interested parties may participate in the conference call and audio webcast by dialing (866) 318-8611 approximately 5-10 minutes prior to the call, international callers should dial (617) 399-5130. Participants should reference Medley Management Inc. and the participant passcode of 58500292 when prompted. Following the call you may access a replay of the event via audio webcast. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through the Company's website, http://www.mdly.com. To listen to the live call, please go to the Company's website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the Company's website.
About Medley Management Inc.
Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors through Medley LLC and several registered investment advisors. Medley's national direct origination franchise, with over 80 people, is a premier provider of capital to the middle market in the U.S. As of December 31, 2014, Medley had in excess of $3.7 billion of assets under management in business development companies, Medley Capital Corporation (NYSE:MCC), the Sierra Income Corporation, and private investment vehicles. Over the past 13 years, we have invested in excess of $5.1 billion to help over 280 companies grow across 35 industries in North America. For additional information, please visit Medley Management Inc. at www.mdly.com.
Forward-Looking Statements
Statements included herein may contain "forward-looking statements." Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission, including those described under the section “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Except as required by law, the Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements made herein speak only as of the date of this press release.
This press release does not constitute an offer for any Medley fund.
Available Information
Medley Management Inc.’s filings with the Securities and Exchange Commission, press releases, earnings releases and other financial information are available at www.mdly.com.
Contact
Sam Anderson
212.759.0777
Exhibit A. Standalone Statements of Operations for Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
| Three Months Ended December 31, (unaudited) | Year Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Revenues | ||||||||||||||||
| Management fees | $ | 18,249 | $ | 12,109 | $ | 65,765 | $ | 46,424 | ||||||||
| Performance fees | (3,587 | ) | 5,410 | 7,884 | 8,236 | |||||||||||
| Other revenues and fees | 1,688 | 1,664 | 8,871 | 5,011 | ||||||||||||
| Total revenues | 16,350 | 19,183 | 82,520 | 59,671 | ||||||||||||
| Expenses | ||||||||||||||||
| Compensation and benefits | 5,312 | 3,650 | 20,322 | 13,712 | ||||||||||||
| Performance fee compensation | (3,780 | ) | 993 | (1,543 | ) | 7,192 | ||||||||||
| General, administrative and other expenses | 3,491 | 3,621 | 16,312 | 12,655 | ||||||||||||
| Total expenses | 5,023 | 8,264 | 35,091 | 33,559 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Dividend income | 221 | 221 | 886 | 886 | ||||||||||||
| Interest expense | (2,140 | ) | (396 | ) | (5,520 | ) | (1,479 | ) | ||||||||
| Other expenses, net | (390 | ) | (232 | ) | (2,097 | ) | (1,168 | ) | ||||||||
| Total other expense, net | (2,309 | ) | (407 | ) | (6,731 | ) | (1,761 | ) | ||||||||
| Income before income taxes | $ | 9,018 | $ | 10,512 | $ | 40,698 | $ | 24,351 | ||||||||
| Provision for income taxes | (11 | ) | 236 | 1,015 | 714 | |||||||||||
| Net income | 9,029 | 10,276 | 39,683 | 23,637 | ||||||||||||
| Net income attributable to non-controlling interests in consolidated subsidiaries | (239 | ) | - | 1,933 | - | |||||||||||
| Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | $ | 9,268 | $ | 10,276 | $ | 37,750 | $ | 23,637 | ||||||||
Exhibit B. Reconciliation of Core Net Income and Core EBITDA (Standalone) to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC
| Three Months Ended December 31, (unaudited) | Year Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | $ | 9,268 | $ | 10,276 | $ | 37,750 | $ | 23,637 | ||||||||
| Reimbursable fund startup expenses (1) | 1,008 | 1,222 | 5,599 | 3,825 | ||||||||||||
| Severance expense (1) | - | 12 | (5 | ) | 737 | |||||||||||
| IPO date award stock-based compensation (1) | 748 | - | 822 | - | ||||||||||||
| Adjustment for pre-IPO guaranteed payments to members (1)(2) | - | (1,313 | ) | (3,284 | ) | (4,993 | ) | |||||||||
| Core Net Income | $ | 11,024 | $ | 10,197 | $ | 40,882 | $ | 23,206 | ||||||||
| Interest expense | 2,140 | 396 | 5,520 | 1,479 | ||||||||||||
| Income taxes | 87 | 233 | 1,154 | 701 | ||||||||||||
| Depreciation and amortization | 112 | 78 | 401 | 276 | ||||||||||||
| Core EBITDA | $ | 13,363 | $ | 10,904 | $ | 47,957 | $ | 25,662 | ||||||||
| (1) | Amounts are presented net of income taxes. |
| (2) | Represents a pro-forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense, that, prior to our reorganization and IPO, were treated as distributions from members’ capital. |
Appendix C. Calculation of Core Net Income Per Share (Standalone)
| Three Months Ended December 31, (unaudited) | Year ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Numerator | ||||||||||||||||
| Core Net Income | $ | 11,024 | $ | 10,197 | $ | 40,882 | $ | 23,206 | ||||||||
| Add: Income taxes | 87 | 233 | 1,154 | 701 | ||||||||||||
| Pre-tax Core Net Income | 11,111 | 10,430 | 42,036 | 23,907 | ||||||||||||
| Denominator | ||||||||||||||||
| Class A shares issued in IPO | 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | ||||||||||||
| Conversion of LLC Units to Class A shares | 23,333,333 | 23,333,333 | 23,333,333 | 23,333,333 | ||||||||||||
| Restricted stock units (1) | 1,178,033 | 1,151,389 | 1,158,084 | 1,151,389 | ||||||||||||
| Pro-Forma Weighted Average Shares Outstanding (1) | 30,511,366 | 30,484,722 | 30,491,417 | 30,484,722 | ||||||||||||
| Pre-tax Core Net Income Per Share | $ | 0.37 | $ | 0.35 | $ | 1.38 | $ | 0.79 | ||||||||
| Less: corporate income taxes per share (2) | (0.16 | ) | (0.15 | ) | (0.59 | ) | (0.34 | ) | ||||||||
| Core Net Income Per Share | $ | 0.21 | $ | 0.20 | $ | 0.79 | $ | 0.45 | ||||||||
| (1) | The calculation of Pro-Forma Weighted Average Shares Outstanding assumes that the following transactions had occurred at the beginning of each period presented: (1) the issuance of 6,000,000 Class A common stock in connection with our IPO (2) the conversion by the pre-IPO holders of 23,333,333 LLC units for 23,333,333 shares of Class A common stock and (3) the grant of 1,151,389 restricted stock units on the consummation of our IPO, adjusted for actual forfeitures and additional grants during the period. |
| (2) | Represents a per share adjustment for income taxes assuming that all of our standalone pre-tax earnings were subject to federal, state and local income taxes. We assumed an effective corporate tax rate of 43.0% for all periods presented. |
Appendix D. Consolidated Statements of Operations for Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
| Three Months Ended December 31, (unaudited) | Year Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Amounts in thousands, except share and per share data) | ||||||||||||||||
| Revenues | ||||||||||||||||
| Management fees | $ | 17,786 | $ | 12,317 | $ | 61,252 | $ | 36,446 | ||||||||
| Performance fees | (1,287 | ) | 1,331 | 2,050 | 2,412 | |||||||||||
| Other revenues and fees | 1,688 | 1,664 | 8,871 | 5,011 | ||||||||||||
| Total revenues | 18,187 | 15,312 | 72,173 | 43,869 | ||||||||||||
| Expenses | ||||||||||||||||
| Compensation and benefits | 5,312 | 3,650 | 20,322 | 13,712 | ||||||||||||
| Performance fee compensation | (3,780 | ) | 993 | (1,543 | ) | 7,192 | ||||||||||
| Consolidated Funds expenses | 541 | 304 | 1,670 | 1,225 | ||||||||||||
| General, administrative and other expenses | 3,491 | 3,621 | 16,312 | 12,655 | ||||||||||||
| Total expenses | 5,564 | 8,568 | 36,761 | 34,784 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Dividend income | 221 | 221 | 886 | 886 | ||||||||||||
| Interest expense | (2,140 | ) | (396 | ) | (5,520 | ) | (1,479 | ) | ||||||||
| Other expenses, net | (187 | ) | (308 | ) | (1,773 | ) | (483 | ) | ||||||||
| Interest and other income of Consolidated Funds | 29,943 | 16,048 | 71,468 | 52,550 | ||||||||||||
| Interest expense of Consolidated Funds | (4,365 | ) | (896 | ) | (9,951 | ) | (2,638 | ) | ||||||||
| Net realized gain (loss) on investments of Consolidated Funds | - | 1,985 | 789 | (16,080 | ) | |||||||||||
| Net change in unrealized depreciation on investments of Consolidated Funds | (11,971 | ) | (2,950 | ) | (20,557 | ) | (3,361 | ) | ||||||||
| Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | 851 | 34 | 1,174 | (306 | ) | |||||||||||
| Total other income, net | 3,575 | 11,100 | 36,516 | 29,089 | ||||||||||||
| Income before income taxes | 16,198 | 17,844 | 71,928 | 38,174 | ||||||||||||
| Provision for income taxes | 354 | 501 | 2,528 | 1,639 | ||||||||||||
| Net income | 15,844 | 17,343 | 69,400 | 36,535 | ||||||||||||
| Net income attributable to non-controlling interests in Consolidated Funds | 6,815 | 7,067 | 29,717 | 12,898 | ||||||||||||
| Net income attributable to non-controlling interests in consolidated subsidiaries | (239 | ) | - | 1,933 | - | |||||||||||
| Net income attributable to non-controlling interests in Medley LLC | 7,951 | $ | 10,276 | 36,055 | $ | 23,637 | ||||||||||
| Net income attributable to Medley Management Inc. | $ | 1,317 | $ | 1,695 | ||||||||||||
| Net income per Class A common stock: | ||||||||||||||||
| Basic | $ | 0.19 | (1) | $ | 0.24 | (1) | ||||||||||
| Diluted | $ | 0.19 | (1) | $ | 0.24 | (1) | ||||||||||
| Weighted average shares - Basic and Diluted | 6,000,000 | 6,000,000 | ||||||||||||||
| (1) | Based on net income attributable to Medley Management Inc. from September 29, 2014 through December 31, 2014 |
Appendix E. Consolidated Balance Sheets for Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
| As of December 31, | ||||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 87,206 | $ | 5,395 | ||||
| Investment, at fair value | 9,901 | 10,173 | ||||||
| Management fees receivable | 15,173 | 8,921 | ||||||
| Performance fees receivable | 5,573 | 3,339 | ||||||
| Other assets | 9,230 | 5,308 | ||||||
| Assets of Consolidated Funds: | ||||||||
| Cash and cash equivalents | 38,111 | 60,355 | ||||||
| Investments, at fair value | 734,870 | 453,396 | ||||||
| Interest and dividends receivable | 6,654 | 2,969 | ||||||
| Other assets | 3,681 | 436 | ||||||
| Total assets | $ | 910,399 | $ | 550,292 | ||||
| Liabilities and Equity | ||||||||
| Loans payable | $ | 103,057 | $ | 27,990 | ||||
| Accounts payable, accrued expenses and other liabilities | 27,583 | 17,613 | ||||||
| Performance fee compensation payable | 11,807 | 16,225 | ||||||
| Liabilities of Consolidated Funds: | ||||||||
| Accounts payable, accrued expenses and other liabilities | 5,767 | 1,325 | ||||||
| Secured borrowings | 141,135 | 41,178 | ||||||
| Total liabilities | 289,349 | 104,331 | ||||||
| Equity | ||||||||
| Class A Common Stock | 60 | - | ||||||
| Class B Common Stock | - | - | ||||||
| Capital deficit | (2,384 | ) | - | |||||
| Retained earnings | 272 | - | ||||||
| Total stockholder’s deficit, Medley Management Inc. | (2,052 | ) | - | |||||
| Non-controlling interests in Consolidated Funds | 625,548 | 464,475 | ||||||
| Non-controlling interests in consolidated subsidiaries | 1,526 | 40 | ||||||
| Non-controlling interests in Medley LLC | (3,972 | ) | - | |||||
| Medley LLC members' deficit prior to reorganization | - | (18,554 | ) | |||||
| Total equity | 621,050 | 445,961 | ||||||
| Total liabilities and equity | $ | 910,399 | $ | 550,292 | ||||
Appendix F. Consolidating Statements of Operations and Consolidated Balance Sheets for Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
| For the Year Ended December 31, 2014 | ||||||||||||||||
| Standalone | Consolidated Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Management fees | $ | 65,765 | $ | - | $ | (4,513 | ) | $ | 61,252 | |||||||
| Performance fees | 7,884 | - | (5,834 | ) | 2,050 | |||||||||||
| Other revenues and fees | 8,871 | - | - | 8,871 | ||||||||||||
| Total revenues | 82,520 | - | (10,347 | ) | 72,173 | |||||||||||
| Expenses: | ||||||||||||||||
| Compensation and benefits | 20,322 | - | - | 20,322 | ||||||||||||
| Performance fee compensation | (1,543 | ) | - | - | (1,543 | ) | ||||||||||
| Consolidated Funds expenses | - | 6,183 | (4,513 | ) | 1,670 | |||||||||||
| General, administrative and other expenses | 16,312 | - | - | 16,312 | ||||||||||||
| Total operating expenses | 35,091 | 6,183 | (4,513 | ) | 36,761 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Dividend income | 886 | - | - | 886 | ||||||||||||
| Interest expense | (5,520 | ) | - | - | (5,520 | ) | ||||||||||
| Other income (expenses), net | (2,097 | ) | - | 324 | (1,773 | ) | ||||||||||
| Interest and other income of Consolidated Funds | - | 71,468 | - | 71,468 | ||||||||||||
| Interest expense of Consolidated Funds | - | (9,951 | ) | - | (9,951 | ) | ||||||||||
| Net realized gain on investments of Consolidated Funds | - | 789 | - | 789 | ||||||||||||
| Net change in unrealized depreciation on investments of Consolidated Funds | - | (20,557 | ) | - | (20,557 | ) | ||||||||||
| Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | 1,174 | 1,174 | ||||||||||||||
| Total other income (expense), net | (6,731 | ) | 42,923 | 324 | 36,516 | |||||||||||
| Income before income taxes | 40,698 | 36,740 | (5,510 | ) | 71,928 | |||||||||||
| Provision for income taxes | 1,015 | 1,513 | - | 2,528 | ||||||||||||
| Net income | 39,683 | 35,227 | (5,510 | ) | 69,400 | |||||||||||
| Net income attributable to non-controlling interests in Consolidated Funds | - | - | 29,717 | 29,717 | ||||||||||||
| Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | - | - | 1,933 | ||||||||||||
| Net income attributable to non-controlling interests in Medley LLC | 36,055 | - | - | 36,055 | ||||||||||||
| Net income attributable to Medley Management Inc. | $ | 1,695 | $ | 35,227 | $ | (35,227 | ) | $ | 1,695 | |||||||
| For the Year Ended December 31, 2013 | ||||||||||||||||
| Standalone | Consolidated Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Management fees | $ | 46,424 | $ | - | $ | (9,978 | ) | $ | 36,446 | |||||||
| Performance fees | 8,236 | - | (5,824 | ) | 2,412 | |||||||||||
| Other revenues and fees | 5,011 | - | - | 5,011 | ||||||||||||
| Total revenues | 59,671 | - | (15,802 | ) | 43,869 | |||||||||||
| Expenses: | ||||||||||||||||
| Compensation and benefits | 13,712 | - | - | 13,712 | ||||||||||||
| Performance fee compensation | 7,192 | - | - | 7,192 | ||||||||||||
| Consolidated Funds expenses | - | 11,203 | (9,978 | ) | 1,225 | |||||||||||
| General, administrative and other expenses | 12,655 | - | - | 12,655 | ||||||||||||
| Total operating expenses | 33,559 | 11,203 | (9,978 | ) | 34,784 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Dividend income | 886 | - | - | 886 | ||||||||||||
| Interest expense | (1,479 | ) | - | - | (1,479 | ) | ||||||||||
| Other income (expenses), net | (1,168 | ) | - | 685 | (483 | ) | ||||||||||
| Interest and other income of Consolidated Funds | - | 52,550 | - | 52,550 | ||||||||||||
| Interest expense of Consolidated Funds | (2,638 | ) | (2,638 | ) | ||||||||||||
| Net realized loss on investments of Consolidated Funds | - | (16,080 | ) | - | (16,080 | ) | ||||||||||
| Net change in unrealized depreciation on investments of Consolidated Funds | - | (3,361 | ) | - | (3,361 | ) | ||||||||||
| Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | - | (306 | ) | - | (306 | ) | ||||||||||
| Total other income (expense) | (1,761 | ) | 30,165 | 685 | 29,089 | |||||||||||
| Income before income taxes | 24,351 | 18,962 | (5,139 | ) | 38,174 | |||||||||||
| Provision for income taxes | 714 | 925 | - | 1,639 | ||||||||||||
| Net income | 23,637 | 18,037 | (5,139 | ) | 36,535 | |||||||||||
| Net income attributable to non-controlling interests in Consolidated Funds | - | - | 12,898 | 12,898 | ||||||||||||
| Net income attributable to Medley LLC | $ | 23,637 | $ | 18,037 | $ | (18,037 | ) | $ | 23,637 | |||||||
| Standalone | Consolidated Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 87,206 | $ | - | $ | - | $ | 87,206 | ||||||||
| Investment, at fair value | 22,143 | - | (12,242 | ) | 9,901 | |||||||||||
| Management fees receivable | 15,173 | - | - | 15,173 | ||||||||||||
| Performance fees receivable | 5,573 | - | - | 5,573 | ||||||||||||
| Other assets | 9,230 | - | - | 9,230 | ||||||||||||
| Assets of Consolidated Funds: | ||||||||||||||||
| Cash and cash equivalents | - | 38,111 | - | 38,111 | ||||||||||||
| Investments, at fair value | - | 734,870 | - | 734,870 | ||||||||||||
| Interest and dividends receivable | - | 6,654 | - | 6,654 | ||||||||||||
| Other assets | - | 5,057 | (1,376 | ) | 3,681 | |||||||||||
| Total assets | $ | 139,325 | $ | 784,692 | $ | (13,618 | ) | $ | 910,399 | |||||||
| Liabilities and equity | ||||||||||||||||
| Loans payable | $ | 103,057 | $ | - | $ | - | $ | 103,057 | ||||||||
| Accounts payable, accrued expenses and other liabilities | 28,959 | - | (1,376 | ) | 27,583 | |||||||||||
| Performance fee compensation payable | 11,807 | - | - | 11,807 | ||||||||||||
| Liabilities of Consolidated Funds: | ||||||||||||||||
| Accounts payable, accrued expenses and other liabilities | - | 5,767 | - | 5,767 | ||||||||||||
| Secured borrowings | - | 141,135 | - | 141,135 | ||||||||||||
| Total liabilities | 143,823 | 146,902 | (1,376 | ) | 289,349 | |||||||||||
| Equity | ||||||||||||||||
| Class A Common Stock | 60 | - | - | 60 | ||||||||||||
| Class B Common Stock | - | - | - | - | ||||||||||||
| Capital deficit | (2,384 | ) | - | - | (2,384 | ) | ||||||||||
| Retained earnings | 272 | - | - | 272 | ||||||||||||
| Total stockholders' deficit, Medley Management Inc. | (2,052 | ) | - | - | (2,052 | ) | ||||||||||
| Non-controlling interests in Consolidated Funds | - | - | 625,548 | 625,548 | ||||||||||||
| Non-controlling interests in consolidated subsidiaries | 1,526 | - | - | 1,526 | ||||||||||||
| Non-controlling interests in Medley LLC | (3,972 | ) | - | - | (3,972 | ) | ||||||||||
| Members' equity of consolidated funds | - | 637,790 | (637,790 | ) | - | |||||||||||
| Total (deficit) equity | (4,498 | ) | 637,790 | (12,242 | ) | 621,050 | ||||||||||
| Total liabilities and equity | $ | 139,325 | $ | 784,692 | $ | (13,618 | ) | $ | 910,399 | |||||||
| As of December 31, 2013 | ||||||||||||||||
| Standalone | Consolidated Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 5,395 | $ | - | $ | - | $ | 5,395 | ||||||||
| Investment, at fair value | 21,443 | - | (11,270 | ) | 10,173 | |||||||||||
| Management fees receivable | 8,921 | - | - | 8,921 | ||||||||||||
| Performance fees receivable | 3,339 | - | - | 3,339 | ||||||||||||
| Other assets | 4,216 | - | 1,092 | 5,308 | ||||||||||||
| Assets of Consolidated Funds: | ||||||||||||||||
| Cash and cash equivalents | - | 60,355 | - | 60,355 | ||||||||||||
| Investments, at fair value | - | 453,396 | - | 453,396 | ||||||||||||
| Interest and dividends receivable | - | 2,969 | - | 2,969 | ||||||||||||
| Other assets | - | 1,565 | (1,129 | ) | 436 | |||||||||||
| Total assets | $ | 43,314 | $ | 518,285 | $ | (11,307 | ) | $ | 550,292 | |||||||
| Liabilities and equity | ||||||||||||||||
| Loans payable | $ | 27,990 | $ | - | $ | - | $ | 27,990 | ||||||||
| Accounts payable, accrued expenses and other liabilities | 17,613 | - | - | 17,613 | ||||||||||||
| Performance fee compensation payable | 16,225 | - | - | 16,225 | ||||||||||||
| Liabilities of Consolidated Funds: | ||||||||||||||||
| Accounts payable, accrued expenses and other liabilities | - | 1,363 | (38 | ) | 1,325 | |||||||||||
| Secured borrowings | - | 41,178 | - | 41,178 | ||||||||||||
| Total liabilities | 61,828 | 42,541 | (38 | ) | 104,331 | |||||||||||
| Equity | ||||||||||||||||
| Non-controlling interest in Consolidated Funds | - | - | 464,475 | 464,475 | ||||||||||||
| Non-controlling interest in consolidated subsidiaries | 40 | - | - | 40 | ||||||||||||
| Members' (deficit) equity | (18,554 | ) | 475,744 | (475,744 | ) | (18,554 | ) | |||||||||
| Total (deficit) equity | (18,514 | ) | 475,744 | (11,269 | ) | 445,961 | ||||||||||
| Total liabilities and equity | $ | 43,314 | $ | 518,285 | $ | (11,307 | ) | $ | 550,292 | |||||||