Apollo Global Management, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - August 9, 2016

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EXHIBIT 99.1
 
UNAUDITED RECONCILIATION OF FINANCIAL DATA
 
The following tables present the historical unaudited financial information for the Apollo Operating Group as of and for the three and six months ended June 30, 2016. The Apollo Operating Group does not report audited or unaudited financial information on a stand-alone basis. Accordingly, the financial data presented herein for the Apollo Operating Group has been reconciled to Apollo Global Management, LLC’s financial statements for the relevant periods.
 
 
  
As of June 30, 2016
  
 
  
Total Apollo Operating Group Consolidated
    
VIE & Consolidated Funds
    
Other (1)
    
Total Apollo Global Management, LLC Consolidated
  
Statement of Financial Data
   (dollars in thousands)  
 Assets:
                        
 Cash and cash equivalents
  
$
854,427
    
$
-
    
$
4,578
    
$
859,005
  
 Cash and cash equivalents held at consolidated funds
    
-
      
4,991
      
-
      
4,991
  
 Restricted cash
    
5,269
       -      
-
      
5,269
  
 Investments
    
1,396,200
      
27,139
      
(98,787
)
    
1,324,552
  
 Assets of consolidated variable interest entities:
    
 
                          
 Cash and cash equivalents
    
-
      
28,246
      
-
      
28,246
  
 Investments, at fair value
    
-
      
960,090
      
(299
)
    
959,791
  
 Other assets
    
-
      
33,917
      
-
      
33,917
  
 Carried interest receivable
    
815,751
      
-
      
-
      
815,751
  
 Due from affiliates
    
568,358
      
-
      
(275,796
)
    
292,562
  
 Deferred tax assets
    
11,623
      
-
      
610,586
      
622,209
  
 Other assets
    
95,227
      
5,670
      
(183
)
    
100,714
  
 Goodwill
    
88,852
      
-
      
-
      
88,852
  
 Intangible assets, net
    
26,372
      
-
      
-
      
26,372
  
 Total Assets
  
$
3,862,079
    
$
1,060,053
    
$
240,099
    
$
5,162,231
  
                                 
 Liabilities and Shareholders’ Equity
                                
 Liabilities:
                                
 Accounts payable and accrued expenses
  
$
116,814
    
$
-
    
$
-
    
$
116,814
  
 Accrued compensation and benefits
    
90,399
      
-
      
-
      
90,399
  
 Deferred revenue
    
158,461
      
-
      
-
      
158,461
  
 Due to affiliates
    
121,967
      
-
      
507,173
      
629,140
  
 Profit sharing payable
    
378,599
      
-
      
-
      
378,599
  
  Debt
    
1,355,521
      
-
      
-
      
1,355,521
  
 Liabilities of consolidated variable interest entities:
                                
 Debt, at fair value
    
-
      
864,575
      
(42,776
)
    
821,799
  
 Other liabilities
    
-
      
46,682
      
(227
)
    
46,455
  
 Due to affiliates
    
-
      
1,144
      
(1,144
)
    
-
  
 Other liabilities
    
45,009
      
5,323
      
-
      
50,332
  
 Total Liabilities
    
2,266,770
      
917,724
      
463,026
      
3,647,520
  
 
                                
 Shareholders’ Equity:
                                
 Apollo Global Management, LLC shareholders’ Equity:
                                
 Additional paid in capital
    
-
      
-
      
1,928,962
      
1,928,962
  
 Accumulated deficit
    
859,568
      
35,420
      
(2,131,665
)
    
(1,236,677
)
 Accumulated other comprehensive income (loss)
    
(5,692
)
    
(1,992
)
    
709
      
(6,975
)
 Total Apollo Global Management, LLC shareholders’ equity
    
853,876
      
33,428
      
(201,994
)
    
685,310
  
 Non-Controlling Interests in consolidated entities
    
7,657
      
108,901
      
(20,933
)
    
95,625
  
 Non-Controlling Interests in Apollo Operating Group
    
733,776
      
-
      
-
      
733,776
  
 Total Shareholders’ Equity
    
1,595,309
      
142,329
      
(222,927
)
    
1,514,711
  
 Total Liabilities and Shareholders’ Equity
  
$
3,862,079
    
$
1,060,053
    
$
240,099
    
$
5,162,231
  

(1) Includes eliminations for VIE and Fund consolidation and entities not included in the Apollo Operating Group.
 
  
For the Six Months Ended June 30, 2016
  
 
  
Total Apollo Operating Group Consolidated
    
VIE & Consolidated Funds
    
Other (1)
    
Total Apollo Global Management, LLC Consolidated
  
   
(dollars in thousands)
  
Statement of Operating Data
                        
Revenues:
                        
       Advisory and transaction fees from affiliates, net
  
$
72,898
    
$
-
    
$
-
    
$
72,898
  
       Management fees from affiliates
    
502,721
      
(49
)
    
(1,814
)
    
500,858
  
       Carried Interest income from affiliates
    
207,517
       -      
-
      
207,517
  
Total Revenues
    
783,136
      
(49
)
    
(1,814
)
    
781,273
  
Expenses:
                                
       Compensation and benefits:
                                
Salary, bonus and benefits
    
197,422
      
-
      
-
      
197,422
  
Equity-based compensation
    
48,040
      
-
      
-
      
48,040
  
Profit sharing expense
    
89,615
      
-
      
-
      
89,615
  
Total Compensation and Benefits
    
335,077
      
-
      
-
      
335,077
  
       Interest expense
    
17,673
       -      
-
      
17,673
  
       General, administrative and other
    
60,439
      
109
      
19
      
60,567
  
       Professional fees
    
39,139
      
-
      
-
      
39,139
  
       Occupancy
    
19,520
      
-
      
-
      
19,520
  
       Placement fees
    
3,828
      
-
      
-
      
3,828
  
       Depreciation and amortization
    
9,493
      
-
      
-
      
9,493
  
Total Expenses
    
485,169
      
109
      
19
      
485,297
  
                                 
Other  Income:
                                
       Net gains from Investment activities
    
32,000
      
541
      
-
      
32,541
  
       Net gains (loss) from Investment activities of consolidated variable interest entities
    
-
      
(591
)
    
2,608
      
2,017
  
       Income from equity method investments
    
42,095
       -      
(952
)
    
41,143
  
       Interest income
    
1,944
      
730
      
(793
)
    
1,881
  
       Other income, net
    
525
       -      
-
      
525
  
Total Other Income
    
76,564
      
680
      
863
      
78,107
  
       Income before income tax provision
    
374,531
      
522
      
(970
)
    
374,083
  
       Income Tax provision
    
(7,296
)
     -      
(25,545
)
    
(32,841
)
Net Income
    
367,235
      
522
      
(26,515
)
    
341,242
  
       Net Income (loss) attributable to Non-controlling Interests
    
(200,408
)
    
430
      
-
      
(199,978
)
Net Income Attributable to Apollo Global Management, LLC
  
$
166,827
    
$
952
    
$
(26,515
)
  
$
141,264
  
 
(1) Includes eliminations for VIE and Fund consolidation and entities not included in the Apollo Operating Group.

 
 
  
For the Three Months Ended June 30, 2016
  
 
  
Total Apollo Operating Group Consolidated
    
VIE & Consolidated Funds
    
Other (1)
    
Total Apollo Global Management, LLC Consolidated
  
   
(dollars in thousands)
  
Statement of Operating Data
                        
Revenues:
                        
       Advisory and transaction fees from affiliates, net
  
$
64,899
    
$
-
    
$
-
    
$
64,899
  
       Management fees from affiliates
    
268,274
      
(18
)
    
(1,193
)
    
267,063
  
       Carried Interest income from affiliates
    
328,485
      
-
      
-
      
328,485
  
Total Revenues
    
661,658
      
(18
)
    
(1,193
)
    
660,447
  
                                 
Expenses:
                                
       Compensation and benefits:
                                
    Salary, bonus and benefits
    
100,188
      
-
      
-
      
100,188
  
    Equity-based compensation
    
34,038
      
-
      
-
      
34,038
  
    Profit sharing expense
    
127,220
      
-
      
-
      
127,220
  
Total Compensation and Benefits
    
261,446
      
-
      
-
      
261,446
  
       Interest expense
    
9,800
       -      
-
      
9,800
  
       General, administrative and other
    
32,748
      
75
      
-
      
32,823
  
       Professional fees
    
22,705
      
-
      
-
      
22,705
  
       Occupancy
    
9,698
      
-
      
-
      
9,698
  
       Placement fees
    
2,064
      
-
      
-
      
2,064
  
       Depreciation and amortization
    
4,862
      
-
      
-
      
4,862
  
Total Expenses
    
343,323
      
75
      
-
      
343,398
  
                                 
Other  Income:
                                
       Net gains from Investment activities
    
88,498
      
512
      
-
      
89,010
  
       Net gains (loss) from Investment activities of consolidated variable interest entities
    
-
      
(528
)
    
1,226
      
698
  
       Income from equity method investments
    
45,623
      
-
      
(663
)
    
44,960
  
       Interest income
    
938
      
391
      
(33
)
    
1,296
  
       Other income, net
    
778
      
-
      
-
      
778
  
Total Other Income
    
135,837
      
375
      
530
      
136,742
  
       Income before income tax provision
    
454,172
      
282
      
(663
)
    
453,791
  
       Income Tax provision
    
(8,247
)
    
-
      
(29,741
)
    
(37,988
)
Net Income
    
445,925
      
282
      
(30,404
)
    
415,803
  
       Net Income (loss) attributable to Non-controlling Interests
    
(242,093
)
    
382
      
-
      
(241,711
)
Net Income Attributable to Apollo Global Management, LLC
  
$
203,832
    
$
664
    
$
(30,404
)
  
$
174,092
  
 
(1) Includes eliminations for VIE and Fund consolidation and entities not included in the Apollo Operating Group.
 

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