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8-K - FORM 8-K - VIRTUS INVESTMENT PARTNERS, INC. | v406911_8-k.htm |
Exhibit 99.1
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Twelve months ended December 31, 2014
Reclassifications | Adjustments | |||||||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Closed-end fund launch costs | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Investment management fees | $ | 300,663 | $ | - | $ | 396 | $ | - | $ | - | $ | - | $ | - | $ | 301,059 | ||||||||||||||||
Distribution and service fees | 91,950 | - | 48 | - | - | - | - | 91,998 | ||||||||||||||||||||||||
Administration and transfer agent fees | 56,016 | - | 217 | - | - | - | - | 56,233 | ||||||||||||||||||||||||
Other income and fees | 1,969 | - | - | - | - | - | - | 1,969 | ||||||||||||||||||||||||
Distribution and administration expenses | - | (114,089 | ) | - | - | - | - | - | (114,089 | ) | ||||||||||||||||||||||
Total revenues | 450,598 | (114,089 | ) | 661 | - | - | - | - | 337,170 | |||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||||
Employment expenses | 139,809 | - | - | (509 | ) | - | - | (859 | ) | 138,441 | ||||||||||||||||||||||
Distribution and administration expenses | 123,665 | (114,089 | ) | - | (9,576 | ) | - | - | - | - | ||||||||||||||||||||||
Other operating expenses | 46,531 | - | - | - | - | - | (1,050 | ) | 45,481 | |||||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 3,038 | - | (3,038 | ) | - | - | - | - | - | |||||||||||||||||||||||
Restructuring and severance | 294 | - | - | - | - | - | (294 | ) | - | |||||||||||||||||||||||
Depreciation and other amortization | 2,763 | - | - | - | - | - | - | 2,763 | ||||||||||||||||||||||||
Amortization expense | 3,778 | - | - | - | (3,778 | ) | - | - | - | |||||||||||||||||||||||
Total operating expenses | 319,878 | (114,089 | ) | (3,038 | ) | (10,085 | ) | (3,778 | ) | - | (2,203 | ) | 186,685 | |||||||||||||||||||
Operating Income | 130,720 | - | 3,699 | 10,085 | 3,778 | - | 2,203 | 150,485 | ||||||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 914 | - | (3,495 | ) | - | - | 2,232 | - | (349 | ) | ||||||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | (4,648 | ) | - | 4,648 | - | - | - | - | - | |||||||||||||||||||||||
Other income (expense), net | 891 | - | - | - | - | - | - | 891 | ||||||||||||||||||||||||
Total other income (expense), net | (2,843 | ) | - | 1,153 | - | - | 2,232 | - | 542 | |||||||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||||||
Interest expense | (537 | ) | - | - | - | - | - | - | (537 | ) | ||||||||||||||||||||||
Interest and dividend income | 1,706 | - | 3,022 | - | - | (3,771 | ) | - | 957 | |||||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 7,268 | - | (7,268 | ) | - | - | - | - | - | |||||||||||||||||||||||
Total interest income (expense), net | 8,437 | - | (4,246 | ) | - | - | (3,771 | ) | - | 420 | ||||||||||||||||||||||
Income Before Income Taxes | 136,314 | - | 606 | 10,085 | 3,778 | (1,539 | ) | 2,203 | 151,447 | |||||||||||||||||||||||
Income tax expense | 39,349 | - | - | 3,861 | 1,441 | (2,981 | ) | 16,055 | 57,725 | |||||||||||||||||||||||
Net Income | 96,965 | - | 606 | 6,224 | 2,337 | 1,442 | (13,852 | ) | 93,722 | |||||||||||||||||||||||
Noncontrolling interests | 735 | - | (606 | ) | - | - | - | - | 129 | |||||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 97,700 | $ | - | $ | - | $ | 6,224 | $ | 2,337 | $ | 1,442 | $ | (13,852 | ) | $ | 93,851 | |||||||||||||||
Earnings Per Share - Basic | $ | 10.75 | $ | 10.32 | ||||||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 10.51 | $ | 10.10 | ||||||||||||||||||||||||||||
Weighted
Average Shares Outstanding - Basic (in thousands) | 9,091 | 9,091 | ||||||||||||||||||||||||||||||
Weighted
Average Shares Outstanding - Diluted (in thousands) | 9,292 | 9,292 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
1 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Twelve months ended December 31, 2013
Reclassifications | Adjustments | |||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 260,557 | $ | - | $ | (138 | ) | $ | - | $ | - | $ | - | $ | 260,419 | |||||||||||||
Distribution and service fees | 78,965 | - | 40 | - | - | - | 79,005 | |||||||||||||||||||||
Administration and transfer agent fees | 48,185 | - | 85 | - | - | - | 48,270 | |||||||||||||||||||||
Other income and fees | 1,508 | - | - | - | - | - | 1,508 | |||||||||||||||||||||
Distribution and administration expenses | - | (97,786 | ) | - | - | - | - | (97,786 | ) | |||||||||||||||||||
Total revenues | 389,215 | (97,786 | ) | (13 | ) | - | - | - | 291,416 | |||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 131,768 | - | - | - | - | (2,172 | ) | 129,596 | ||||||||||||||||||||
Distribution and administration expenses | 97,786 | (97,786 | ) | - | - | - | - | - | ||||||||||||||||||||
Other operating expenses | 38,321 | - | - | - | - | - | 38,321 | |||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 798 | - | (798 | ) | - | - | - | - | ||||||||||||||||||||
Restructuring and severance | 203 | - | - | - | - | (203 | ) | - | ||||||||||||||||||||
Depreciation and other amortization | 2,422 | - | - | - | - | - | 2,422 | |||||||||||||||||||||
Amortization expense | 4,413 | - | - | (4,413 | ) | - | - | - | ||||||||||||||||||||
Total operating expenses | 275,711 | (97,786 | ) | (798 | ) | (4,413 | ) | - | (2,375 | ) | 170,339 | |||||||||||||||||
Operating Income | 113,504 | - | 785 | 4,413 | - | 2,375 | 121,077 | |||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 2,350 | - | 1,855 | - | (4,230 | ) | - | (25 | ) | |||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | 3,515 | - | (3,515 | ) | - | - | - | - | ||||||||||||||||||||
Other income (expense), net | 74 | - | - | - | - | - | 74 | |||||||||||||||||||||
Total other income (expense), net | 5,939 | - | (1,660 | ) | - | (4,230 | ) | - | 49 | |||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (782 | ) | - | - | - | - | - | (782 | ) | |||||||||||||||||||
Interest and dividend income | 664 | - | 1,460 | - | (1,849 | ) | - | 275 | ||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 2,583 | - | (2,583 | ) | - | - | - | - | ||||||||||||||||||||
Total interest income (expense), net | 2,465 | - | (1,123 | ) | - | (1,849 | ) | - | (507 | ) | ||||||||||||||||||
Income Before Income Taxes | 121,908 | - | (1,998 | ) | 4,413 | (6,079 | ) | 2,375 | 120,619 | |||||||||||||||||||
Income tax expense | 44,778 | - | - | 1,669 | (2,326 | ) | 1,553 | 45,674 | ||||||||||||||||||||
Net Income | 77,130 | - | (1,998 | ) | 2,744 | (3,753 | ) | 822 | 74,945 | |||||||||||||||||||
Noncontrolling interests | (1,940 | ) | - | 1,998 | - | - | - | 58 | ||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 75,190 | $ | - | $ | - | $ | 2,744 | $ | (3,753 | ) | $ | 822 | $ | 75,003 | |||||||||||||
Earnings Per Share - Basic | $ | 9.18 | $ | 9.16 | ||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 8.92 | $ | 8.89 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 8,188 | 8,188 | ||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 8,433 | 8,433 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
2 |
Consolidated Non-GAAP Income Statement Information
(Dollars in thousands, except per share data)
Twelve Months Ended | |||||||||||
12/31/14 | 12/31/13 | Change | |||||||||
Revenues, as Adjusted | |||||||||||
Investment management fees | $ | 301,059 | $ | 260,419 | 16% | ||||||
Distribution and service fees | 91,998 | 79,005 | 16% | ||||||||
Administration and transfer agent fees | 56,233 | 48,270 | 16% | ||||||||
Other income and fees | 1,969 | 1,508 | 31% | ||||||||
Distribution and administration expenses | (114,089 | ) | (97,786 | ) | 17% | ||||||
Total Revenues, as Adjusted | 337,170 | 291,416 | 16% | ||||||||
Operating Expenses, as Adjusted | |||||||||||
Employment expenses | 138,441 | 129,596 | 7% | ||||||||
Other operating expenses | 45,481 | 38,321 | 19% | ||||||||
Depreciation of fixed assets | 2,763 | 2,422 | 14% | ||||||||
Total Operating Expenses, as Adjusted | 186,685 | 170,339 | 10% | ||||||||
Operating Income, as Adjusted | 150,485 | 121,077 | 24% | ||||||||
Operating Margin, as Adjusted | 44.6% | 41.5% | |||||||||
Other Income (Expense) | |||||||||||
Realized and unrealized loss on investments, net | (349 | ) | (25 | ) | N/M | ||||||
Other income, net | 891 | 74 | N/M | ||||||||
Total other income, net | 542 | 49 | N/M | ||||||||
Interest Income (Expense) | |||||||||||
Interest expense | (537 | ) | (782 | ) | (31)% | ||||||
Interest and dividend income | 957 | 275 | 248% | ||||||||
Total interest (expense), net | 420 | (507 | ) | (183)% | |||||||
Pre-tax Income, as Adjusted | 151,447 | 120,619 | 26% | ||||||||
Income tax expense, as adjusted | 57,725 | 45,674 | 26% | ||||||||
Net Income, as Adjusted | 93,722 | 74,945 | 25% | ||||||||
Noncontrolling interests | 129 | 58 | 122% | ||||||||
Net Income Attributable to Common Stockholders, as Adjusted | $ | 93,851 | $ | 75,003 | 25% | ||||||
Earnings Per Share, as Adjusted - Basic | $ | 10.32 | $ | 9.16 | 13% | ||||||
Earnings Per Share, as Adjusted - Diluted | $ | 10.10 | $ | 8.89 | 14% | ||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 9,091 | 8,188 | 11% | ||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 9,292 | 8,433 | 10% |
N/M - Not Meaningful
3 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Three months ended December 31, 2014
Reclassifications | Adjustments | |||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 75,374 | $ | - | $ | 492 | $ | - | $ | - | $ | - | $ | 75,866 | ||||||||||||||
Distribution and service fees | 21,901 | - | 18 | - | - | - | 21,919 | |||||||||||||||||||||
Administration and transfer agent fees | 14,197 | - | 78 | - | - | - | 14,275 | |||||||||||||||||||||
Other income and fees | 665 | - | - | - | - | - | 665 | |||||||||||||||||||||
Distribution and administration expenses | - | (27,526 | ) | - | - | - | - | (27,526 | ) | |||||||||||||||||||
Total revenues | 112,137 | (27,526 | ) | 588 | - | - | - | 85,199 | ||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 34,053 | - | - | - | - | - | 34,053 | |||||||||||||||||||||
Distribution and administration expenses | 27,526 | (27,526 | ) | - | - | - | - | - | ||||||||||||||||||||
Other operating expenses | 11,579 | - | - | - | - | (359 | ) | 11,220 | ||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 664 | - | (664 | ) | - | - | - | - | ||||||||||||||||||||
Restructuring and severance | - | - | - | - | - | - | - | |||||||||||||||||||||
Depreciation and other amortization | 723 | - | - | - | - | - | 723 | |||||||||||||||||||||
Amortization expense | 927 | - | - | (927 | ) | - | - | - | ||||||||||||||||||||
Total operating expenses | 75,472 | (27,526 | ) | (664 | ) | (927 | ) | - | (359 | ) | 45,996 | |||||||||||||||||
Operating Income | 36,665 | - | 1,252 | 927 | - | 359 | 39,203 | |||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | (798 | ) | - | (5,207 | ) | - | 5,723 | - | (282 | ) | ||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | (5,798 | ) | - | 5,798 | - | - | - | - | ||||||||||||||||||||
Other income (expense), net | 318 | - | - | - | - | - | 318 | |||||||||||||||||||||
Total other income (expense), net | (6,278 | ) | - | 591 | - | 5,723 | - | 36 | ||||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (125 | ) | - | - | - | - | - | (125 | ) | |||||||||||||||||||
Interest and dividend income | 653 | - | 1,116 | - | (1,500 | ) | - | 269 | ||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 2,534 | - | (2,534 | ) | - | - | - | - | ||||||||||||||||||||
Total interest income (expense), net | 3,062 | - | (1,418 | ) | - | (1,500 | ) | - | 144 | |||||||||||||||||||
Income Before Income Taxes | 33,449 | - | 425 | 927 | 4,223 | 359 | 39,383 | |||||||||||||||||||||
Income tax expense | 15,038 | - | 347 | (782 | ) | 135 | 14,738 | |||||||||||||||||||||
Net Income | 18,411 | - | 425 | 580 | 5,005 | 224 | 24,645 | |||||||||||||||||||||
Noncontrolling interests | 468 | - | (425 | ) | - | - | - | 43 | ||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 18,879 | $ | - | $ | - | $ | 580 | $ | 5,005 | $ | 224 | $ | 24,688 | ||||||||||||||
Earnings Per Share - Basic | $ | 2.09 | $ | 2.74 | ||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 2.05 | $ | 2.68 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 9,021 | 9,021 | ||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 9,203 | 9,203 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
4 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Three months ended September 30, 2014
Reclassifications | Adjustments | |||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 78,960 | $ | - | $ | (111 | ) | $ | - | $ | - | $ | - | $ | 78,849 | |||||||||||||
Distribution and service fees | 23,671 | - | 10 | - | - | - | 23,681 | |||||||||||||||||||||
Administration and transfer agent fees | 14,804 | - | 68 | - | - | - | 14,872 | |||||||||||||||||||||
Other income and fees | 406 | - | - | - | - | - | 406 | |||||||||||||||||||||
Distribution and administration expenses | - | (29,180 | ) | - | - | - | - | (29,180 | ) | |||||||||||||||||||
Total revenues | 117,841 | (29,180 | ) | (33 | ) | - | - | - | 88,628 | |||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 35,246 | - | - | - | - | - | 35,246 | |||||||||||||||||||||
Distribution and administration expenses | 29,180 | (29,180 | ) | - | - | - | - | - | ||||||||||||||||||||
Other operating expenses | 11,288 | - | - | - | - | (216 | ) | 11,072 | ||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 1,246 | - | (1,246 | ) | - | - | - | - | ||||||||||||||||||||
Restructuring and severance | 294 | - | - | - | - | (294 | ) | - | ||||||||||||||||||||
Depreciation and other amortization | 713 | - | - | - | - | - | 713 | |||||||||||||||||||||
Amortization expense | 947 | - | - | (947 | ) | - | - | - | ||||||||||||||||||||
Total operating expenses | 78,914 | (29,180 | ) | (1,246 | ) | (947 | ) | - | (510 | ) | 47,031 | |||||||||||||||||
Operating Income | 38,927 | - | 1,213 | 947 | - | 510 | 41,597 | |||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | (1,039 | ) | - | (4,872 | ) | - | 5,585 | - | (326 | ) | ||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | (5,330 | ) | - | 5,330 | - | - | - | - | ||||||||||||||||||||
Other income (expense), net | 233 | - | - | - | - | - | 233 | |||||||||||||||||||||
Total other income (expense), net | (6,136 | ) | - | 458 | - | 5,585 | - | (93 | ) | |||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (149 | ) | - | - | - | - | - | (149 | ) | |||||||||||||||||||
Interest and dividend income | 326 | - | 851 | - | (951 | ) | - | 226 | ||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 2,222 | - | (2,222 | ) | - | - | - | - | ||||||||||||||||||||
Total interest income (expense), net | 2,399 | - | (1,371 | ) | - | (951 | ) | - | 77 | |||||||||||||||||||
Income Before Income Taxes | 35,190 | - | 300 | 947 | 4,634 | 510 | 41,581 | |||||||||||||||||||||
Income tax expense | (1,805 | ) | - | - | 364 | 1,782 | 15,652 | 15,993 | ||||||||||||||||||||
Net Income | 36,995 | - | 300 | 583 | 2,852 | (15,142 | ) | 25,588 | ||||||||||||||||||||
Noncontrolling interests | 345 | - | (300 | ) | - | - | - | 45 | ||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 37,340 | $ | - | $ | - | $ | 583 | $ | 2,852 | $ | (15,142 | ) | $ | 25,633 | |||||||||||||
Earnings Per Share - Basic | $ | 4.10 | $ | 2.82 | ||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 4.02 | $ | 2.76 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 9,096 | 9,096 | ||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 9,279 | 9,279 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
5 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Three months ended June 30, 2014
Reclassifications | Adjustments | |||||||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Closed-end fund launch costs | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Investment management fees | $ | 74,537 | $ | - | $ | 63 | $ | - | $ | - | $ | - | $ | - | $ | 74,600 | ||||||||||||||||
Distribution and service fees | 23,940 | - | 7 | - | - | - | - | 23,947 | ||||||||||||||||||||||||
Administration and transfer agent fees | 13,942 | - | 52 | - | - | - | - | 13,994 | ||||||||||||||||||||||||
Other income and fees | 330 | - | - | - | - | - | - | 330 | ||||||||||||||||||||||||
Distribution and administration expenses | - | (29,646 | ) | - | - | - | - | - | (29,646 | ) | ||||||||||||||||||||||
Total revenues | 112,749 | (29,646 | ) | 122 | - | - | - | - | 83,225 | |||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||||
Employment expenses | 35,481 | - | - | (509 | ) | - | - | (367 | ) | 34,605 | ||||||||||||||||||||||
Distribution and administration expenses | 39,222 | (29,646 | ) | - | (9,576 | ) | - | - | - | - | ||||||||||||||||||||||
Other operating expenses | 13,130 | - | - | - | - | - | (475 | ) | 12,655 | |||||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 797 | - | (797 | ) | - | - | - | - | - | |||||||||||||||||||||||
Restructuring and severance | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Depreciation and other amortization | 670 | - | - | - | - | - | - | 670 | ||||||||||||||||||||||||
Amortization expense | 947 | - | - | - | (947 | ) | - | - | - | |||||||||||||||||||||||
Total operating expenses | 90,247 | (29,646 | ) | (797 | ) | (10,085 | ) | (947 | ) | - | (842 | ) | 47,930 | |||||||||||||||||||
Operating Income | 22,502 | - | 919 | 10,085 | 947 | - | 842 | 35,295 | ||||||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 905 | - | 6,169 | - | - | (6,921 | ) | - | 153 | |||||||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | 6,444 | - | (6,444 | ) | - | - | - | - | - | |||||||||||||||||||||||
Other income (expense), net | 189 | - | - | - | - | - | - | 189 | ||||||||||||||||||||||||
Total other income (expense), net | 7,538 | - | (275 | ) | - | - | (6,921 | ) | - | 342 | ||||||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||||||
Interest expense | (125 | ) | - | - | - | - | - | - | (125 | ) | ||||||||||||||||||||||
Interest and dividend income | 344 | - | 715 | - | - | (816 | ) | - | 243 | |||||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 1,639 | - | (1,639 | ) | - | - | - | - | - | |||||||||||||||||||||||
Total interest income (expense), net | 1,858 | - | (924 | ) | - | - | (816 | ) | - | 118 | ||||||||||||||||||||||
Income Before Income Taxes | 31,898 | - | (280 | ) | 10,085 | 947 | (7,737 | ) | 842 | 35,755 | ||||||||||||||||||||||
Income tax expense | 12,106 | - | 3,861 | 363 | (2,962 | ) | 322 | 13,690 | ||||||||||||||||||||||||
Net Income | 19,792 | - | (280 | ) | 6,224 | 584 | (4,775 | ) | 520 | 22,065 | ||||||||||||||||||||||
Noncontrolling interests | (249 | ) | - | 280 | - | - | - | - | 31 | |||||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 19,543 | $ | - | $ | - | $ | 6,224 | $ | 584 | $ | (4,775 | ) | $ | 520 | $ | 22,096 | |||||||||||||||
Earnings Per Share - Basic | $ | 2.14 | $ | 2.42 | ||||||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 2.10 | $ | 2.37 | ||||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 9,133 | 9,133 | ||||||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 9,325 | 9,325 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
6 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Three months ended March 31, 2014
Reclassifications | Adjustments | |||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 71,792 | $ | - | $ | (48 | ) | $ | - | $ | - | $ | - | $ | 71,744 | |||||||||||||
Distribution and service fees | 22,438 | - | 13 | - | - | - | 22,451 | |||||||||||||||||||||
Administration and transfer agent fees | 13,073 | - | 19 | - | - | - | 13,092 | |||||||||||||||||||||
Other income and fees | 568 | - | - | - | - | - | 568 | |||||||||||||||||||||
Distribution and administration expenses | - | (27,737 | ) | - | - | - | - | (27,737 | ) | |||||||||||||||||||
Total revenues | 107,871 | (27,737 | ) | (16 | ) | - | - | - | 80,118 | |||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 35,029 | - | - | - | - | (492 | ) | 34,537 | ||||||||||||||||||||
Distribution and administration expenses | 27,737 | (27,737 | ) | - | - | - | - | - | ||||||||||||||||||||
Other operating expenses | 10,534 | - | - | - | - | - | 10,534 | |||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 331 | - | (331 | ) | - | - | - | - | ||||||||||||||||||||
Restructuring and severance | - | - | - | - | - | - | - | |||||||||||||||||||||
Depreciation and other amortization | 657 | - | - | - | - | - | 657 | |||||||||||||||||||||
Amortization expense | 957 | - | - | (957 | ) | - | - | - | ||||||||||||||||||||
Total operating expenses | 75,245 | (27,737 | ) | (331 | ) | (957 | ) | - | (492 | ) | 45,728 | |||||||||||||||||
Operating Income | 32,626 | - | 315 | 957 | - | 492 | 34,390 | |||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 1,846 | - | 415 | - | (2,155 | ) | - | 106 | ||||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | 36 | - | (36 | ) | - | - | - | - | ||||||||||||||||||||
Other income (expense), net | 151 | - | - | - | - | - | 151 | |||||||||||||||||||||
Total other income (expense), net | 2,033 | - | 379 | - | (2,155 | ) | - | 257 | ||||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (138 | ) | - | - | - | - | - | (138 | ) | |||||||||||||||||||
Interest and dividend income | 383 | - | 340 | - | (504 | ) | - | 219 | ||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 873 | - | (873 | ) | - | - | - | - | ||||||||||||||||||||
Total interest income (expense), net | 1,118 | - | (533 | ) | - | (504 | ) | - | 81 | |||||||||||||||||||
Income Before Income Taxes | 35,777 | - | 161 | 957 | (2,659 | ) | 492 | 34,728 | ||||||||||||||||||||
Income tax expense | 14,010 | - | - | 367 | (1,019 | ) | (54 | ) | 13,304 | |||||||||||||||||||
Net Income | 21,767 | - | 161 | 590 | (1,640 | ) | 546 | 21,424 | ||||||||||||||||||||
Noncontrolling interests | 171 | - | (161 | ) | - | - | - | 10 | ||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 21,938 | $ | - | $ | - | $ | 590 | $ | (1,640 | ) | $ | 546 | $ | 21,434 | |||||||||||||
Earnings Per Share - Basic | $ | 2.41 | $ | 2.35 | ||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 2.34 | $ | 2.29 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 9,116 | 9,116 | ||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 9,361 | 9,361 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
7 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Three months ended December 31, 2013
Reclassifications | Adjustments | |||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 71,186 | $ | - | $ | 65 | $ | - | $ | - | $ | - | $ | 71,251 | ||||||||||||||
Distribution and service fees | 21,958 | - | 25 | - | - | - | 21,983 | |||||||||||||||||||||
Administration and transfer agent fees | 12,937 | - | 39 | - | - | - | 12,976 | |||||||||||||||||||||
Other income and fees | 417 | - | - | - | - | - | 417 | |||||||||||||||||||||
Distribution and administration expenses | - | (26,653 | ) | - | - | - | - | (26,653 | ) | |||||||||||||||||||
Total revenues | 106,498 | (26,653 | ) | 129 | - | - | - | 79,974 | ||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 33,457 | - | - | - | - | (487 | ) | 32,970 | ||||||||||||||||||||
Distribution and administration expenses | 26,653 | (26,653 | ) | - | - | - | - | - | ||||||||||||||||||||
Other operating expenses | 10,543 | - | - | - | - | - | 10,543 | |||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 251 | - | (251 | ) | - | - | - | - | ||||||||||||||||||||
Restructuring and severance | - | - | - | - | - | - | - | |||||||||||||||||||||
Depreciation and other amortization | 640 | - | - | - | - | - | 640 | |||||||||||||||||||||
Amortization expense | 1,062 | - | - | (1,062 | ) | - | - | - | ||||||||||||||||||||
Total operating expenses | 72,606 | (26,653 | ) | (251 | ) | (1,062 | ) | - | (487 | ) | 44,153 | |||||||||||||||||
Operating Income | 33,892 | - | 380 | 1,062 | - | 487 | 35,821 | |||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 463 | - | 3,863 | - | (4,322 | ) | - | 4 | ||||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | 5,975 | - | (5,975 | ) | - | - | - | - | ||||||||||||||||||||
Other income (expense), net | (8 | ) | - | - | - | - | - | (8 | ) | |||||||||||||||||||
Total other income (expense), net | 6,430 | - | (2,112 | ) | - | (4,322 | ) | - | (4 | ) | ||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (148 | ) | - | - | - | - | - | (148 | ) | |||||||||||||||||||
Interest and dividend income | 238 | - | 507 | - | (675 | ) | - | 70 | ||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 891 | - | (891 | ) | - | - | - | - | ||||||||||||||||||||
Total interest income (expense), net | 981 | - | (384 | ) | - | (675 | ) | - | (78 | ) | ||||||||||||||||||
Income Before Income Taxes | 41,303 | - | (2,116 | ) | 1,062 | (4,997 | ) | 487 | 35,739 | |||||||||||||||||||
Income tax expense | 14,443 | - | - | 409 | (1,925 | ) | 842 | 13,769 | ||||||||||||||||||||
Net Income | 26,860 | - | (2,116 | ) | 653 | (3,072 | ) | (355 | ) | 21,970 | ||||||||||||||||||
Noncontrolling interests | (2,104 | ) | - | 2,116 | - | - | - | 12 | ||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 24,756 | $ | - | $ | - | $ | 653 | $ | (3,072 | ) | $ | (355 | ) | $ | 21,982 | ||||||||||||
Earnings Per Share - Basic | $ | 2.72 | $ | 2.41 | ||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 2.65 | $ | 2.35 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 9,103 | 9,103 | ||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 9,347 | 9,347 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
8 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Three months ended September 30, 2013
Reclassifications | Adjustments | |||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 67,119 | $ | - | $ | (112 | ) | $ | - | $ | - | $ | - | $ | 67,007 | |||||||||||||
Distribution and service fees | 20,322 | - | 7 | - | - | - | 20,329 | |||||||||||||||||||||
Administration and transfer agent fees | 12,492 | - | 15 | - | - | - | 12,507 | |||||||||||||||||||||
Other income and fees | 476 | - | - | - | - | - | 476 | |||||||||||||||||||||
Distribution and administration expenses | - | (25,253 | ) | - | - | - | - | (25,253 | ) | |||||||||||||||||||
Total revenues | 100,409 | (25,253 | ) | (90 | ) | - | - | - | 75,066 | |||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 33,022 | - | - | - | - | (485 | ) | 32,537 | ||||||||||||||||||||
Distribution and administration expenses | 25,253 | (25,253 | ) | - | - | - | - | - | ||||||||||||||||||||
Other operating expenses | 8,538 | - | - | - | - | - | 8,538 | |||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 231 | - | (231 | ) | - | - | - | - | ||||||||||||||||||||
Restructuring and severance | - | - | - | - | - | - | - | |||||||||||||||||||||
Depreciation and other amortization | 610 | - | - | - | - | - | 610 | |||||||||||||||||||||
Amortization expense | 1,125 | - | - | (1,125 | ) | - | - | - | ||||||||||||||||||||
Total operating expenses | 68,779 | (25,253 | ) | (231 | ) | (1,125 | ) | - | (485 | ) | 41,685 | |||||||||||||||||
Operating Income | 31,630 | - | 141 | 1,125 | - | 485 | 33,381 | |||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 1,285 | - | 240 | - | (1,521 | ) | - | 4 | ||||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | 324 | - | (324 | ) | - | - | - | - | ||||||||||||||||||||
Other income (expense), net | 111 | - | - | - | - | - | 111 | |||||||||||||||||||||
Total other income (expense), net | 1,720 | - | (84 | ) | - | (1,521 | ) | - | 115 | |||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (207 | ) | - | - | - | - | - | (207 | ) | |||||||||||||||||||
Interest and dividend income | 126 | - | 315 | - | (377 | ) | - | 64 | ||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 600 | - | (600 | ) | - | - | - | - | ||||||||||||||||||||
Total interest income (expense), net | 519 | - | (285 | ) | - | (377 | ) | - | (143 | ) | ||||||||||||||||||
Income Before Income Taxes | 33,869 | - | (228 | ) | 1,125 | (1,898 | ) | 485 | 33,353 | |||||||||||||||||||
Income tax expense | 12,567 | - | - | 420 | (709 | ) | 180 | 12,458 | ||||||||||||||||||||
Net Income | 21,302 | - | (228 | ) | 705 | (1,189 | ) | 305 | 20,895 | |||||||||||||||||||
Noncontrolling interests | (213 | ) | - | 228 | - | - | - | 15 | ||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 21,089 | $ | - | $ | - | $ | 705 | $ | (1,189 | ) | $ | 305 | $ | 20,910 | |||||||||||||
Earnings Per Share - Basic | $ | 2.64 | $ | 2.62 | ||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 2.56 | $ | 2.54 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 7,995 | 7,995 | ||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 8,227 | 8,227 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
9 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Three months ended June 30, 2013
Reclassifications | Adjustments | |||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 64,475 | $ | - | $ | (24 | ) | $ | - | $ | - | $ | - | $ | 64,451 | |||||||||||||
Distribution and service fees | 19,324 | - | 5 | - | - | - | 19,329 | |||||||||||||||||||||
Administration and transfer agent fees | 12,061 | - | 15 | - | - | - | 12,076 | |||||||||||||||||||||
Other income and fees | 280 | - | - | - | - | - | 280 | |||||||||||||||||||||
Distribution and administration expenses | - | (24,252 | ) | - | - | - | - | (24,252 | ) | |||||||||||||||||||
Total revenues | 96,140 | (24,252 | ) | (4 | ) | - | - | - | 71,884 | |||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 32,878 | - | - | - | - | (544 | ) | 32,334 | ||||||||||||||||||||
Distribution and administration expenses | 24,252 | (24,252 | ) | - | - | - | - | - | ||||||||||||||||||||
Other operating expenses | 10,283 | - | - | - | - | - | 10,283 | |||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 132 | - | (132 | ) | - | - | - | - | ||||||||||||||||||||
Restructuring and severance | - | - | - | - | - | - | - | |||||||||||||||||||||
Depreciation and other amortization | 597 | - | - | - | - | - | 597 | |||||||||||||||||||||
Amortization expense | 1,116 | - | - | (1,116 | ) | - | - | - | ||||||||||||||||||||
Total operating expenses | 69,258 | (24,252 | ) | (132 | ) | (1,116 | ) | - | (544 | ) | 43,214 | |||||||||||||||||
Operating Income | 26,882 | - | 128 | 1,116 | - | 544 | 28,670 | |||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | (223 | ) | - | (2,427 | ) | - | 2,614 | - | (36 | ) | ||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | (3,156 | ) | - | 3,156 | - | - | - | - | ||||||||||||||||||||
Other income (expense), net | (11 | ) | - | - | - | - | - | (11 | ) | |||||||||||||||||||
Total other income (expense), net | (3,390 | ) | - | 729 | - | 2,614 | - | (47 | ) | |||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (206 | ) | - | - | - | - | - | (206 | ) | |||||||||||||||||||
Interest and dividend income | 203 | - | 344 | - | (478 | ) | - | 69 | ||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 612 | - | (612 | ) | - | - | - | - | ||||||||||||||||||||
Total interest income (expense), net | 609 | - | (268 | ) | - | (478 | ) | - | (137 | ) | ||||||||||||||||||
Income Before Income Taxes | 24,101 | - | 589 | 1,116 | 2,136 | 544 | 28,486 | |||||||||||||||||||||
Income tax expense | 9,318 | - | - | 421 | 806 | 206 | 10,751 | |||||||||||||||||||||
Net Income | 14,783 | - | 589 | 695 | 1,330 | 338 | 17,735 | |||||||||||||||||||||
Noncontrolling interests | 602 | - | (589 | ) | - | - | - | 13 | ||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 15,385 | $ | - | $ | - | $ | 695 | $ | 1,330 | $ | 338 | $ | 17,748 | ||||||||||||||
Earnings Per Share - Basic | $ | 1.97 | $ | 2.27 | ||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 1.91 | $ | 2.20 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 7,821 | 7,821 | ||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 8,058 | 8,058 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
10 |
Virtus Investment Partners, Inc.
Reconciliation of U.S. GAAP Consolidated Statement of Operations to Consolidated Non-GAAP Income Statement Information
(Unaudited, dollars in thousands except per share)
Three months ended March 31, 2013
Reclassifications | Adjustments | |||||||||||||||||||||||||||
U.S. GAAP Basis | Distribution and administration expenses | Consolidated sponsored investment products | Amortization of intangible assets | Seed capital investments impact | Other 1 | Non-GAAP Basis | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Investment management fees | $ | 57,777 | $ | - | $ | (67 | ) | $ | - | $ | - | $ | - | $ | 57,710 | |||||||||||||
Distribution and service fees | 17,361 | - | 3 | - | - | - | 17,364 | |||||||||||||||||||||
Administration and transfer agent fees | 10,695 | - | 16 | - | - | - | 10,711 | |||||||||||||||||||||
Other income and fees | 335 | - | - | - | - | - | 335 | |||||||||||||||||||||
Distribution and administration expenses | - | (21,628 | ) | - | - | - | - | (21,628 | ) | |||||||||||||||||||
Total revenues | 86,168 | (21,628 | ) | (48 | ) | - | - | - | 64,492 | |||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||
Employment expenses | 32,411 | - | - | - | - | (656 | ) | 31,755 | ||||||||||||||||||||
Distribution and administration expenses | 21,628 | (21,628 | ) | - | - | - | - | - | ||||||||||||||||||||
Other operating expenses | 8,957 | - | - | - | - | - | 8,957 | |||||||||||||||||||||
Other operating expenses of consolidated sponsored investment products | 184 | - | (184 | ) | - | - | - | - | ||||||||||||||||||||
Restructuring and severance | 203 | - | - | - | - | (203 | ) | - | ||||||||||||||||||||
Depreciation and other amortization | 575 | - | - | - | - | - | 575 | |||||||||||||||||||||
Amortization expense | 1,110 | - | - | (1,110 | ) | - | - | - | ||||||||||||||||||||
Total operating expenses | 65,068 | (21,628 | ) | (184 | ) | (1,110 | ) | - | (859 | ) | 41,287 | |||||||||||||||||
Operating Income | 21,100 | - | 136 | 1,110 | - | 859 | 23,205 | |||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 825 | - | 179 | - | (1,001 | ) | - | 3 | ||||||||||||||||||||
Realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net | 372 | - | (372 | ) | - | - | - | - | ||||||||||||||||||||
Other income (expense), net | (18 | ) | - | - | - | - | - | (18 | ) | |||||||||||||||||||
Total other income (expense), net | 1,179 | - | (193 | ) | - | (1,001 | ) | - | (15 | ) | ||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||
Interest expense | (221 | ) | - | - | - | - | - | (221 | ) | |||||||||||||||||||
Interest and dividend income | 97 | - | 294 | - | (319 | ) | - | 72 | ||||||||||||||||||||
Interest and dividend income of investments of consolidated sponsored investment products | 480 | - | (480 | ) | - | - | - | - | ||||||||||||||||||||
Total interest income (expense), net | 356 | - | (186 | ) | - | (319 | ) | - | (149 | ) | ||||||||||||||||||
Income Before Income Taxes | 22,635 | - | (243 | ) | 1,110 | (1,320 | ) | 859 | 23,041 | |||||||||||||||||||
Income tax expense | 8,450 | - | - | 419 | (498 | ) | 325 | 8,696 | ||||||||||||||||||||
Net Income | 14,185 | - | (243 | ) | 691 | (822 | ) | 534 | 14,345 | |||||||||||||||||||
Noncontrolling interests | (225 | ) | - | 243 | - | - | - | 18 | ||||||||||||||||||||
Net Income Attributable to Common Stockholders | $ | 13,960 | $ | - | $ | - | $ | 691 | $ | (822 | ) | $ | 534 | $ | 14,363 | |||||||||||||
Earnings Per Share - Basic | $ | 1.79 | $ | 1.84 | ||||||||||||||||||||||||
Earnings Per Share - Diluted | $ | 1.73 | $ | 1.78 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 7,820 | 7,820 | ||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 8,088 | 8,088 |
1 Reflects the following items and the associated income tax impact: Newfleet transition expenses, system transition expenses, restructuring and severance charges, and certain income tax items including valuation allowances, uncertain tax positions and other unusual items.
11 |
Consolidated Non-GAAP Income Statement Information
(Dollars in thousands, except per share data)
Three Months Ended | ||||||||||||||||||||||||||||||||
3/31/13 | 6/30/13 | 9/30/13 | 12/31/13 | 3/31/14 | 6/30/14 | 9/30/14 | 12/31/14 | |||||||||||||||||||||||||
Revenues, as Adjusted | ||||||||||||||||||||||||||||||||
Investment management fees | $ | 57,710 | $ | 64,451 | $ | 67,007 | $ | 71,251 | $ | 71,744 | $ | 74,600 | $ | 78,849 | $ | 75,866 | ||||||||||||||||
Distribution and service fees | 17,364 | 19,329 | 20,329 | 21,983 | 22,451 | 23,947 | 23,681 | 21,919 | ||||||||||||||||||||||||
Administration and transfer agent fees | 10,711 | 12,076 | 12,507 | 12,976 | 13,092 | 13,994 | 14,872 | 14,275 | ||||||||||||||||||||||||
Other income and fees | 335 | 280 | 476 | 417 | 568 | 330 | 406 | 665 | ||||||||||||||||||||||||
Distribution and administration expenses | (21,628 | ) | (24,252 | ) | (25,253 | ) | (26,653 | ) | (27,737 | ) | (29,646 | ) | (29,180 | ) | (27,526 | ) | ||||||||||||||||
Total Revenues, as Adjusted | 64,492 | 71,884 | 75,066 | 79,974 | 80,118 | 83,225 | 88,628 | 85,199 | ||||||||||||||||||||||||
Operating Expenses, as Adjusted | ||||||||||||||||||||||||||||||||
Employment expenses | 31,755 | 32,334 | 32,537 | 32,970 | 34,537 | 34,605 | 35,246 | 34,053 | ||||||||||||||||||||||||
Other operating expenses | 8,957 | 10,283 | 8,538 | 10,543 | 10,534 | 12,655 | 11,072 | 11,220 | ||||||||||||||||||||||||
Depreciation of fixed assets | 575 | 597 | 610 | 640 | 657 | 670 | 713 | 723 | ||||||||||||||||||||||||
Total Operating Expenses, as Adjusted | 41,287 | 43,214 | 41,685 | 44,153 | 45,728 | 47,930 | 47,031 | 45,996 | ||||||||||||||||||||||||
Operating Income, as Adjusted | 23,205 | 28,670 | 33,381 | 35,821 | 34,390 | 35,295 | 41,597 | 39,203 | ||||||||||||||||||||||||
Operating Margin, as Adjusted | 36.0% | 39.9% | 44.5% | 44.8% | 42.9% | 42.4% | 46.9% | 46.0% | ||||||||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on investments, net | 3 | (36 | ) | 4 | 4 | 106 | 153 | (326 | ) | (282 | ) | |||||||||||||||||||||
Other income (expense), net | (18 | ) | (11 | ) | 111 | (8 | ) | 151 | 189 | 233 | 318 | |||||||||||||||||||||
Total other income (expense), net | (15 | ) | (47 | ) | 115 | (4 | ) | 257 | 342 | (93 | ) | 36 | ||||||||||||||||||||
Interest Income (Expense) | ||||||||||||||||||||||||||||||||
Interest expense | (221 | ) | (206 | ) | (207 | ) | (148 | ) | (138 | ) | (125 | ) | (149 | ) | (125 | ) | ||||||||||||||||
Interest and dividend income | 72 | 69 | 64 | 70 | 219 | 243 | 226 | 269 | ||||||||||||||||||||||||
Total interest (expense), net | (149 | ) | (137 | ) | (143 | ) | (78 | ) | 81 | 118 | 77 | 144 | ||||||||||||||||||||
Pre-tax Income, as Adjusted | 23,041 | 28,486 | 33,353 | 35,739 | 34,728 | 35,755 | 41,581 | 39,383 | ||||||||||||||||||||||||
Income tax expense, as adjusted | 8,696 | 10,751 | 12,458 | 13,769 | 13,304 | 13,690 | 15,993 | 14,738 | ||||||||||||||||||||||||
Net Income, as Adjusted | 14,345 | 17,735 | 20,895 | 21,970 | 21,424 | 22,065 | 25,588 | 24,645 | ||||||||||||||||||||||||
Noncontrolling interests | 18 | 13 | 15 | 12 | 10 | 31 | 45 | 43 | ||||||||||||||||||||||||
Net Income Attributable to Common Stockholders, as Adjusted | $ | 14,363 | $ | 17,748 | $ | 20,910 | $ | 21,982 | $ | 21,434 | $ | 22,096 | $ | 25,633 | $ | 24,688 | ||||||||||||||||
Earnings Per Share, as Adjusted - Basic | $ | 1.84 | $ | 2.27 | $ | 2.62 | $ | 2.41 | $ | 2.35 | $ | 2.42 | $ | 2.82 | $ | 2.74 | ||||||||||||||||
Earnings Per Share, as Adjusted - Diluted | $ | 1.78 | $ | 2.20 | $ | 2.54 | $ | 2.35 | $ | 2.29 | $ | 2.37 | $ | 2.76 | $ | 2.68 | ||||||||||||||||
Weighted Average Shares Outstanding - Basic (in thousands) | 7,820 | 7,821 | 7,995 | 9,103 | 9,116 | 9,133 | 9,096 | 9,021 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted (in thousands) | 8,088 | 8,058 | 8,227 | 9,347 | 9,361 | 9,325 | 9,279 | 9,203 |
12 |