Duff & Phelps Corporation (NYSE: DUF), a leading independent financial advisory and investment banking firm, today announced its fourth quarter 2012 financial results and declared a quarterly dividend.
Results
For the quarter ended December 31, 2012, revenue excluding reimbursable expenses increased $20.9 million or 17.6% to $139.9 million, compared to $119.0 million for the corresponding prior year quarter. Adjusted EBITDA(1) for the quarter was $27.1 million, representing 19.3% of revenue excluding reimbursable expenses, compared to $24.2 million for the corresponding prior year quarter, representing 20.3% of revenue excluding reimbursable expenses. Net income attributable to Duff & Phelps Corporation was $6.1 million, or $0.16 per share of Class A common stock on a fully diluted basis, compared to $7.0 million, or $0.23 per share for the corresponding prior year quarter. Adjusted Pro Forma Net Income(1) was $13.4 million, or $0.34 per share on a fully exchanged, fully diluted basis, compared to $12.4 million, or $0.32 per share, for the corresponding prior year quarter.
For the year ended December 31, 2012, revenue excluding reimbursable expenses increased $85.2 million or 22.2% to $469.2 million, compared to $383.9 million for the prior year. Adjusted EBITDA(1) for the year was $83.7 million, representing 17.9% of revenue excluding reimbursable expenses, compared to $64.7 million for the prior year, representing 16.9% of revenue excluding reimbursable expenses. Net income attributable to Duff & Phelps Corporation was $22.3 million, or $0.62 per share of Class A common stock on a fully diluted basis, compared to $18.6 million, or $0.63 per share for the prior year. Adjusted Pro Forma Net Income(1) was $39.3 million, or $1.01 per share on a fully exchanged, fully diluted basis, compared to $31.7 million, or $0.82 per share, for the prior year.
"The strong fourth quarter results reflect continued momentum in several of our businesses including dispute consulting, complex asset valuations and middle market investment banking, as well as the positive impact specifically related to the anticipated tax changes resulting from the fiscal cliff discussions—such as transaction opinions provided for dividend recapitalizations," commented Noah Gottdiener, chief executive officer. "Overall, I am pleased with our 2012 results."
_______________
(1) Adjusted EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro Forma Net Income per share are non-GAAP financial measures. See definitions and disclosures herein.
Declaration of Quarterly Dividend
The Company also announced today that its board of directors has declared a quarterly dividend of $0.09 per share on its outstanding Class A common stock. The dividend is payable on March 19, 2013 to shareholders of record on March 8, 2013.
About Duff & Phelps
As a leading global financial advisory and investment banking firm, Duff & Phelps balances analytical skills, deep market insight and independence to help clients make sound decisions. The firm provides expertise in the areas of valuation, transactions, financial restructuring, alternative assets, disputes and taxation, with more than 1,000 employees serving clients from offices in North America, Europe and Asia. Investment banking services in the United States are provided by Duff & Phelps Securities, LLC; Pagemill Partners; and GCP Securities, LLC. Member FINRA/SIPC. M&A advisory services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd. Duff & Phelps Securities Ltd. is authorized and regulated by the Financial Services Authority. For more information, visit www.duffandphelps.com. (NYSE: DUF)
Earnings Call Webcast
As a result of the pending merger, the Company will not be holding an earnings conference call. Please refer to the Company's Annual Report on Form 10-K that will be filed subsequent to this press release for additional discussion of the Company's results.
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted Pro Forma Net Income, and Adjusted Pro Forma Net Income per share are non-GAAP financial measures. We believe these measures provide a relevant and useful alternative measure of our ongoing profitability and performance. We believe the Adjusted EBITDA, Adjusted Pro Forma Net Income, and Adjusted Pro Forma Net Income per share, in addition to GAAP financial measures, provide a relevant and useful benchmark for investors, in order to assess our financial performance, ongoing operating results and comparability to other companies in our industry. These measures are utilized by our senior management to evaluate our overall performance.
We define Adjusted EBITDA as operating income before depreciation and amortization, equity-based compensation originating prior to our IPO and associated with grants of ownership units of D&P Acquisitions and stock options granted in conjunction with our IPO and other items which are generally not part of our ongoing operations, including but not limited to restructuring charges and acquisition related expenses. We define Adjusted Pro Forma Net Income as net income before equity compensation associated with grants of ownership units of D&P Acquisitions and stock options granted in conjunction with our IPO, and certain items which are generally not part of our ongoing operations, including but not limited to restructuring charges and acquisition related expenses, less pro forma corporate income tax applied at an assumed effective corporate tax rate. Adjusted Pro Forma Net Income per share consists of Adjusted Pro Forma Net Income divided by the fully dilutive weighted average number of the Company's Class A and Class B shares for the applicable period. These measures are reconciled in the tables below.
Adjusted EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro Forma Net Income per share are non-GAAP financial measures which are not prepared in accordance with, and should not be considered a substitute for or superior to measurements required by GAAP. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. In addition, these non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies.
| Reconciliation of Adjusted EBITDA | |||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||
|
December 31, 2012 |
December 31, 2011 |
December 31, 2012 |
December 31, 2011 | ||||||||||||||
| Net income attributable to Duff & Phelps Corporation | $ | 6,065 | $ | 7,045 | $ | 22,264 | $ | 18,614 | |||||||||
| Net income attributable to noncontrolling interest | 590 | 4,110 | 4,037 | 11,115 | |||||||||||||
| Provision for income taxes | 7,630 | 5,566 | 20,022 | 13,841 | |||||||||||||
| Other expense/(income), net | (292 | ) | 1,591 | 1,069 | 1,703 | ||||||||||||
| Operating income | 13,993 | 18,312 | 47,392 | 45,273 | |||||||||||||
| Depreciation and amortization | 5,128 | 3,230 | 18,138 | 11,164 | |||||||||||||
| Equity-based compensation associated with Legacy Units and IPO Options(1) | — | (34 | ) | 22 | 207 | ||||||||||||
| Acquisition retention expenses(2) | 3,029 | 1,024 | 9,536 | 1,624 | |||||||||||||
| Restructuring charges(3) | (28 | ) | 95 | 1,796 | 4,090 | ||||||||||||
| Acquisition, integration and corporate development costs(4) | 4,951 | 1,571 | 6,865 | 2,372 | |||||||||||||
| Adjusted EBITDA | $ | 27,073 | $ | 24,198 | $ | 83,749 | $ | 64,730 | |||||||||
| Reconciliation of Adjusted Pro Forma Net Income | ||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||
|
December 31, 2012 |
December 31, 2011 |
December 31, 2012 |
December 31, 2011 | |||||||||||||||
| Net income attributable to Duff & Phelps Corporation | $ | 6,065 | $ | 7,045 | $ | 22,264 | $ | 18,614 | ||||||||||
| Net income attributable to noncontrolling interest | 590 | 4,110 | 4,037 | 11,115 | ||||||||||||||
| Equity-based compensation associated with Legacy Units and IPO Options(1) | — | (34 | ) | 22 | 207 | |||||||||||||
| Acquisition retention expenses(2) | 3,029 | 1,024 | 9,536 | 1,624 | ||||||||||||||
| Restructuring charges(3) | (28 | ) | 95 | 1,796 | 4,090 | |||||||||||||
| Acquisition, integration and corporate development costs(4) | 4,951 | 1,571 | 6,865 | 2,372 | ||||||||||||||
| Loss from the write off of an investment(5) | — | 1,500 | 376 | 1,500 | ||||||||||||||
| Adjustment to provision for income taxes(6) | (1,197 | ) | (2,910 | ) | (5,621 | ) | (7,824 | ) | ||||||||||
| Adjusted Pro Forma Net Income, as defined | $ | 13,410 | $ | 12,401 | $ | 39,275 | $ | 31,698 | ||||||||||
| Fully diluted weighted average shares of Class A common stock | 37,245 | 27,674 | 34,585 | 27,832 | ||||||||||||||
| Weighted average New Class A Units outstanding | 2,002 | 10,650 | 4,466 | 10,883 | ||||||||||||||
| Pro forma fully exchanged, fully diluted shares outstanding | 39,247 | 38,324 | 39,051 | 38,715 | ||||||||||||||
| Adjusted Pro Forma Net Income per fully exchanged, fully diluted share outstanding | $ | 0.34 | $ | 0.32 | $ | 1.01 | $ | 0.82 | ||||||||||
| _______________ | ||
| (1) | Represents elimination of equity-compensation expense from Legacy Units associated with ownership units of D&P Acquisitions ("Legacy Units") and stock options granted in conjunction with our IPO ("IPO Options"). See further detail in the Notes to the Consolidated Financial Statements. | |
| (2) | Acquisition retention expenses include expense associated with equity or cash-based retention incentives to certain individuals who became employees of the Company through an acquisition. Equity-based incentives are typically subject to certain annual or cliff vesting provisions over three years contingent upon certain conditions which include employment. Cash-based incentives are generally subject to certain annual or cliff vesting provisions up to four years contingent upon certain conditions which may include employment. Cash-based retentive incentives may also include incentives paid to acquired employees upon the closing of an acquisition. These incentives may be in addition to future grants or cash bonuses awarded as a component of ongoing incentive compensation. | |
| (3) | In June 2011, the Company identified opportunities for cost savings through office consolidations of underutilized space and workforce reductions of non-client service professionals. The Company incurred restructuring charges of $4,090 during the year ended December 31, 2011 related to these initiatives. In March 2012, the Company identified opportunities for cost savings through the elimination of our M&A Advisory practice in France and certain Investment Banking positions in France. The Company incurred restructuring charges of $1,796 during the year ended December 31, 2012 related to these initiatives and for changes in estimates of original assumptions. | |
| (4) | Acquisition, integration and corporate development costs include fees and charges associated with acquisitions and ongoing corporate development initiatives, including costs resulting from the pending merger. These costs are primarily comprised of (i) professional fees from legal, accounting, investment banking and other services, (ii) integration costs principally related to marketing, information technology, finance and real estate that are incremental and one-time in nature, (iii) gains or losses resulting from the recalculation of contingent consideration, (iv) foreign currency gains or losses from the translation of acquisition-related intercompany loans and (v) other charges such as regulatory filing fees and travel and entertainment expenses that are incremental in nature. | |
| (5) | Reflects a charge from the write off of a minority investment. The charge is reflected in "Other expense" on the Company's Consolidated Statements of Operations. | |
| (6) | Represents an adjustment to reflect an assumed annual effective corporate tax rate of approximately 39.5% and 40.6% as applied to the years ended December 31, 2012 and 2011, respectively, which includes a provision for U.S. federal income taxes and assumes the highest statutory rates apportioned to each state, local and/or foreign jurisdiction. Assumes (i) full exchange of existing unitholders' partnership units and Class B common stock of the Company into Class A common stock of the Company, (ii) the Company has adopted a conventional corporate tax structure and is taxed as a C Corporation in the U.S. at prevailing corporate rates and (iii) all deferred tax assets related to foreign operations are fully realizable. | |
Disclosure Regarding Forward-Looking Statements
Statements in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), which reflect the Company's current views with respect to, among other things, future events and financial performance. The Company generally identifies forward looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this discussion are based upon our historical performance and on our current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us, or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and the risk factors section that are included in our Annual Report on Form 10-K for the year ended December 31, 2012 and any subsequent filings of our Quarterly Reports on Form 10-Q. The forward-looking statements included in this press release are made only as of the date this press release was issued. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | ||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||
|
December 31, 2012 |
December 31, 2011 |
December 31, 2012 |
December 31, 2011 | |||||||||||||||
| Revenue | $ | 139,917 | $ | 118,980 | $ | 469,164 | $ | 383,940 | ||||||||||
| Reimbursable expenses | 5,218 | 5,573 | 15,537 | 12,934 | ||||||||||||||
| Total revenue | 145,135 | 124,553 | 484,701 | 396,874 | ||||||||||||||
| Direct client service costs | ||||||||||||||||||
Compensation and benefits (includes $4,259 and $3,705 of equity- | 77,070 | 62,934 | 256,089 | 209,606 | ||||||||||||||
| Other direct client service costs | 4,476 | 4,089 | 13,119 | 9,048 | ||||||||||||||
Acquisition retention expenses (includes $734 and $454 of equity- | 3,029 | 1,024 | 9,536 | 1,624 | ||||||||||||||
| Reimbursable expenses | 5,361 | 5,589 | 15,734 | 13,073 | ||||||||||||||
| 89,936 | 73,636 | 294,478 | 233,351 | |||||||||||||||
| Operating expenses | ||||||||||||||||||
Selling, general and administrative (includes $824 and $633 of | 31,155 | 27,709 | 116,032 | 100,624 | ||||||||||||||
| Depreciation and amortization | 5,128 | 3,230 | 18,138 | 11,164 | ||||||||||||||
| Restructuring charges | (28 | ) | 95 | 1,796 | 4,090 | |||||||||||||
| Acquisition, integration and corporate development costs | 4,951 | 1,571 | 6,865 | 2,372 | ||||||||||||||
| 41,206 | 32,605 | 142,831 | 118,250 | |||||||||||||||
| Operating income | 13,993 | 18,312 | 47,392 | 45,273 | ||||||||||||||
| Other expense/(income), net | ||||||||||||||||||
| Interest income | (22 | ) | (8 | ) | (59 | ) | (77 | ) | ||||||||||
| Interest expense | 256 | 97 | 748 | 275 | ||||||||||||||
| Other expense/(income) | (526 | ) | 1,502 | 380 | 1,505 | |||||||||||||
| (292 | ) | 1,591 | 1,069 | 1,703 | ||||||||||||||
| Income before income taxes | 14,285 | 16,721 | 46,323 | 43,570 | ||||||||||||||
| Provision for income taxes | 7,630 | 5,566 | 20,022 | 13,841 | ||||||||||||||
| Net income | 6,655 | 11,155 | 26,301 | 29,729 | ||||||||||||||
| Less: Net income attributable to noncontrolling interest | 590 | 4,110 | 4,037 | 11,115 | ||||||||||||||
| Net income attributable to Duff & Phelps Corporation | $ | 6,065 | $ | 7,045 | $ | 22,264 | $ | 18,614 | ||||||||||
| Weighted average shares of Class A common stock outstanding | ||||||||||||||||||
| Basic | 35,704 | 26,685 | 33,267 | 26,958 | ||||||||||||||
| Diluted | 37,245 | 27,674 | 34,585 | 27,832 | ||||||||||||||
Net income per share attributable to stockholders of Class A common | ||||||||||||||||||
| Basic | $ | 0.16 | $ | 0.24 | $ | 0.64 | $ | 0.65 | ||||||||||
| Diluted | $ | 0.16 | $ | 0.23 | $ | 0.62 | $ | 0.63 | ||||||||||
| Cash dividends declared per common share | $ | 0.09 | $ | 0.08 | $ | 0.36 | $ | 0.32 | ||||||||||
DUFF & PHELPS CORPORATION AND SUBSIDIARIES QUARTERLY REVENUE BY SEGMENT (In thousands) (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 2012 | Variance | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | Dollar | Percent | Dollar | Percent | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Advisory | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Valuation Advisory(a) | $ | 37,614 | $ | 32,604 | $ | 33,887 | $ | 39,046 | $ | 143,151 | $ | 39,490 | $ | 33,610 | $ | 33,895 | $ | 43,334 | $ | 150,329 | $ | 4,288 | 11.0 | % | $ | 7,178 | 5.0 | % | ||||||||||||||||||||||||||||||||||||||
| Tax Services(b) | 7,547 | 15,128 | 9,572 | 8,698 | 40,945 | 5,488 | 13,035 | 11,008 | 10,295 | 39,826 | 1,597 | 18.4 | % | (1,119 | ) | (2.7 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dispute & Legal Management Consulting(c) | 13,436 | 13,005 | 18,319 | 22,032 | 66,792 | 14,675 | 19,979 | 22,708 | 24,430 | 81,792 | 2,398 | 10.9 | % | 15,000 | 22.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 58,597 | 60,737 | 61,778 | 69,776 | 250,888 | 59,653 | 66,624 | 67,611 | 78,059 | 271,947 | 8,283 | 11.9 | % | 21,059 | 8.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Alternative Asset Advisory | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Portfolio Valuation | 6,519 | 6,220 | 6,730 | 6,272 | 25,741 | 7,622 | 6,059 | 6,417 | 5,725 | 25,823 | (547 | ) | (8.7 | )% | 82 | 0.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Complex Asset Solutions | 5,321 | 4,125 | 3,998 | 4,631 | 18,075 | 4,904 | 4,048 | 6,270 | 5,828 | 21,050 | 1,197 | 25.8 | % | 2,975 | 16.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Due Diligence | 1,645 | 4,070 | 2,643 | 3,492 | 11,850 | 2,423 | 2,312 | 2,516 | 2,926 | 10,177 | (566 | ) | (16.2 | )% | (1,673 | ) | (14.1 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||
| 13,485 | 14,415 | 13,371 | 14,395 | 55,666 | 14,949 | 12,419 | 15,203 | 14,479 | 57,050 | 84 | 0.6 | % | 1,384 | 2.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Banking | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| M&A Advisory(d) | 1,450 | 1,853 | 5,741 | 16,568 | 25,612 | 9,354 | 14,953 | 8,145 | 18,537 | 50,989 | 1,969 | 11.9 | % | 25,377 | 99.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Transaction Opinions | 8,231 | 7,266 | 7,466 | 5,811 | 28,774 | 6,742 | 8,171 | 5,957 | 13,830 | 34,700 | 8,019 | 138.0 | % | 5,926 | 20.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Restructuring Advisory(e) | 3,283 | 3,615 | 3,672 | 12,430 | 23,000 | 15,647 | 12,322 | 11,497 | 15,012 | 54,478 | 2,582 | 20.8 | % | 31,478 | 136.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 12,964 | 12,734 | 16,879 | 34,809 | 77,386 | 31,743 | 35,446 | 25,599 | 47,379 | 140,167 | 12,570 | 36.1 | % | 62,781 | 81.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Revenue (excluding reimbursables) | $ | 85,046 | $ | 87,886 | $ | 92,028 | $ | 118,980 | $ | 383,940 | $ | 106,345 | $ | 114,489 | $ | 108,413 | $ | 139,917 | $ | 469,164 | $ | 20,937 | 17.6 | % | $ | 85,224 | 22.2 | % | ||||||||||||||||||||||||||||||||||||||
| _______________ | ||||||
| (a) | For the year ended December 31, 2012, Valuation Advisory includes $2,362 of incremental revenue from our acquisition of Ceteris from the effective date of the acquisition (October 18, 2012) through the end of the year. Ceteris is an independent provider of transfer pricing and valuation advisory services. | (d) | For the year ended December 31, 2012, M&A Advisory includes $2,846 of incremental revenue from our acquisition of Growth Capital Partners from the beginning of the year through June 30, 2012, the one year anniversary of the acquisition. For the year ended December 31, 2011, M&A Advisory includes $7,507 of incremental revenue from the effective date of the acquisition (June 30, 2011) through the end of the year. Growth Capital Partners is a Houston-based investment banking firm focused on transactions in the middle market. | |||
| (b) | For the year ended December 31, 2012, Tax Services includes $279 of incremental revenue from our acquisition of Growth Capital Partners from the beginning of the year through June 30, 2012, the one year anniversary of the acquisition. For the year ended December 31, 2011, Tax Services includes $543 of incremental revenue from the effective date of the acquisition (June 30, 2011) through the end of the year. Growth Capital Partners is a Houston-based investment banking firm focused on transactions in the middle market. | For the year ended December 31, 2012, M&A Advisory also includes $17,023 of incremental revenue from our acquisition of Pagemill Partners from the beginning of the year through December 31, 2012, the one year anniversary of the acquisition. Pagemill Partners is a Silicon Valley-based investment banking firm. | ||||
| (c) | For the year ended December 31, 2012, Dispute & Legal Management Consulting includes $891 of incremental revenue from our acquisition of iEnvision Technology from the effective date of the acquisition (October 4, 2012) through the end of the year. iEnvision Technology is an advisory firm that assists law firms and corporate legal departments with implementation of document and data management systems. | (e) | For the year ended December 31, 2012, Global Restructuring Advisory includes $28,520 of incremental revenue from our acquisition of MCR from the beginning of the year through October 31, 2012, the one year anniversary of the acquisition. For the year ended December 31, 2011, Global Restructuring Advisory includes $4,726 of incremental revenue from the effective date of the acquisition (October 31, 2011) through the end of the year. MCR is a United Kingdom-based partnership specializing in insolvency, turnaround and restructuring services. | |||
| For the year ended December 31, 2012, Global Restructuring Advisory includes $7,405 of incremental revenue from our acquisition of the Toronto-based financial restructuring practice of RSM Ricther from the beginning of the year through December 9, 2012, the one year anniversary of the acquisition. For the year ended December 31, 2011, Global Restructuring Advisory includes $321 of incremental revenue from the effective date of the acquisition (December 9, 2011) through the end of the year. | ||||||
DUFF & PHELPS CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||
December 31, |
December 31, 2011 |
December 31, 2012 |
December 31, 2011 | |||||||||||||||
| Financial Advisory | ||||||||||||||||||
| Revenue (excluding reimbursables) | $ | 78,059 | $ | 69,776 | $ | 271,947 | $ | 250,888 | ||||||||||
| Segment operating income | $ | 13,118 | $ | 14,848 | $ | 50,778 | $ | 45,212 | ||||||||||
| Segment operating income margin | 16.8 | % | 21.3 | % | 18.7 | % | 18.0 | % | ||||||||||
| Alternative Asset Advisory | ||||||||||||||||||
| Revenue (excluding reimbursables) | $ | 14,479 | $ | 14,395 | $ | 57,050 | $ | 55,666 | ||||||||||
| Segment operating income | $ | 2,108 | $ | 3,545 | $ | 12,759 | $ | 12,890 | ||||||||||
| Segment operating income margin | 14.6 | % | 24.6 | % | 22.4 | % | 23.2 | % | ||||||||||
| Investment Banking | ||||||||||||||||||
| Revenue (excluding reimbursables) | $ | 47,379 | $ | 34,809 | $ | 140,167 | $ | 77,386 | ||||||||||
| Segment operating income | $ | 11,990 | $ | 5,821 | $ | 20,409 | $ | 6,767 | ||||||||||
| Segment operating income margin | 25.3 | % | 16.7 | % | 14.6 | % | 8.7 | % | ||||||||||
| Totals | ||||||||||||||||||
| Revenue (excluding reimbursables) | $ | 139,917 | $ | 118,980 | $ | 469,164 | $ | 383,940 | ||||||||||
| Segment operating income | $ | 27,216 | $ | 24,214 | $ | 83,946 | $ | 64,869 | ||||||||||
| Net client reimbursable expenses | (143 | ) | (16 | ) | (197 | ) | (139 | ) | ||||||||||
| Equity-based compensation from Legacy Units and IPO Options | — | 34 | (22 | ) | (207 | ) | ||||||||||||
| Depreciation and amortization | (5,128 | ) | (3,230 | ) | (18,138 | ) | (11,164 | ) | ||||||||||
| Acquisition retention expenses | (3,029 | ) | (1,024 | ) | (9,536 | ) | (1,624 | ) | ||||||||||
| Restructuring charges | 28 | (95 | ) | (1,796 | ) | (4,090 | ) | |||||||||||
| Acquisition, integration and corporate development costs | (4,951 | ) | (1,571 | ) | (6,865 | ) | (2,372 | ) | ||||||||||
| Operating income | $ | 13,993 | $ | 18,312 | $ | 47,392 | $ | 45,273 | ||||||||||
| Average Client Service Professionals | ||||||||||||||||||
| Financial Advisory | 691 | 584 | 640 | 575 | ||||||||||||||
| Alternative Asset Advisory | 106 | 99 | 103 | 94 | ||||||||||||||
| Investment Banking | 315 | 213 | 306 | 158 | ||||||||||||||
| Total | 1,112 | 896 | 1,049 | 827 | ||||||||||||||
| End of Period Client Service Professionals | ||||||||||||||||||
| Financial Advisory | 704 | 590 | 704 | 590 | ||||||||||||||
| Alternative Asset Advisory | 105 | 100 | 105 | 100 | ||||||||||||||
| Investment Banking | 311 | 303 | 311 | 303 | ||||||||||||||
| Total | 1,120 | 993 | 1,120 | 993 | ||||||||||||||
DUFF & PHELPS CORPORATION AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT - CONTINUED (In thousands, except headcount data) (Unaudited) | ||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||||
| Revenue per Client Service Professional | ||||||||||||||||||
| Financial Advisory | $ | 113 | $ | 119 | $ | 425 | $ | 436 | ||||||||||
| Alternative Asset Advisory | $ | 137 | $ | 145 | $ | 554 | $ | 592 | ||||||||||
| Investment Banking | $ | 150 | $ | 163 | $ | 458 | $ | 490 | ||||||||||
| Total | $ | 126 | $ | 133 | $ | 447 | $ | 464 | ||||||||||
| Utilization(a) | ||||||||||||||||||
| Financial Advisory | 75.4 | % | 81.7 | % | 73.1 | % | 73.8 | % | ||||||||||
| Alternative Asset Advisory | 62.5 | % | 63.0 | % | 60.2 | % | 61.2 | % | ||||||||||
| Rate-Per-Hour(b) | ||||||||||||||||||
| Financial Advisory | $ | 372 | $ | 356 | $ | 344 | $ | 343 | ||||||||||
| Alternative Asset Advisory | $ | 487 | $ | 516 | $ | 501 | $ | 515 | ||||||||||
| Revenue (excluding reimbursables) | ||||||||||||||||||
| Financial Advisory | $ | 78,059 | $ | 69,776 | $ | 271,947 | $ | 250,888 | ||||||||||
| Alternative Asset Advisory | 14,479 | 14,395 | 57,050 | 55,666 | ||||||||||||||
| Investment Banking | 47,379 | 34,809 | 140,167 | 77,386 | ||||||||||||||
| Total | $ | 139,917 | $ | 118,980 | $ | 469,164 | $ | 383,940 | ||||||||||
| Average Managing Directors | ||||||||||||||||||
| Financial Advisory | 106 | 90 | 97 | 92 | ||||||||||||||
| Alternative Asset Advisory | 23 | 24 | 23 | 25 | ||||||||||||||
| Investment Banking | 73 | 58 | 74 | 47 | ||||||||||||||
| Total | 202 | 172 | 194 | 164 | ||||||||||||||
| End of Period Managing Directors | ||||||||||||||||||
| Financial Advisory | 110 | 92 | 110 | 92 | ||||||||||||||
| Alternative Asset Advisory | 23 | 24 | 23 | 24 | ||||||||||||||
| Investment Banking | 71 | 76 | 71 | 76 | ||||||||||||||
| Total | 204 | 192 | 204 | 192 | ||||||||||||||
| Revenue per Managing Director | ||||||||||||||||||
| Financial Advisory | $ | 736 | $ | 775 | $ | 2,804 | $ | 2,727 | ||||||||||
| Alternative Asset Advisory | $ | 630 | $ | 600 | $ | 2,480 | $ | 2,227 | ||||||||||
| Investment Banking | $ | 649 | $ | 600 | $ | 1,894 | $ | 1,647 | ||||||||||
| Total | $ | 693 | $ | 692 | $ | 2,418 | $ | 2,341 | ||||||||||
DUFF & PHELPS CORPORATION AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT (In thousands, except headcount data) (Unaudited) | ||
| _______________ | ||
| (a) | The utilization rate for any given period is calculated by dividing the number of hours incurred by client service professionals who worked on client assignments (including internal projects for the Company) during the period by the total available working hours for all of such client service professionals during the same period, assuming a 40 hour work week, less paid holidays and vacation days. Utilization excludes client service professionals associated with certain property tax services due to the nature of the work performed and client service professionals from certain acquisitions prior to their transition to the Company's financial system. | |
| (b) | Average billing rate-per-hour is calculated by dividing revenue for the period by the number of hours worked on client assignments (including internal projects for the Company) during the same period. Financial Advisory revenue used to calculate rate-per-hour exclude revenue associated with certain property tax engagements. The average billing rate excludes certain hours from our acquisitions prior to their transition to the Company's financial system. | |
DUFF & PHELPS CORPORATION AND SUBSIDIARIES SUMMARY OF CLIENT SERVICE PROFESSIONALS (Unaudited) | |||||||||||||||||||||||||||||||||
2011 | 2012 | ||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
| Average Client Service Professionals | |||||||||||||||||||||||||||||||||
| Financial Advisory | 574 | 562 | 576 | 584 | 575 | 600 | 612 | 646 | 691 | 640 | |||||||||||||||||||||||
| Alternative Asset Advisory | 87 | 94 | 98 | 99 | 94 | 99 | 101 | 106 | 106 | 103 | |||||||||||||||||||||||
| Investment Banking | 129 | 128 | 147 | 213 | 158 | 302 | 291 | 310 | 315 | 306 | |||||||||||||||||||||||
| 790 | 784 | 821 | 896 | 827 | 1,001 | 1,004 | 1,062 | 1,112 | 1,049 | ||||||||||||||||||||||||
End of Period Client Service Professionals | |||||||||||||||||||||||||||||||||
| Financial Advisory | 571 | 552 | 580 | 590 | 605 | 612 | 657 | 704 | |||||||||||||||||||||||||
| Alternative Asset Advisory | 90 | 97 | 100 | 100 | 94 | 103 | 106 | 105 | |||||||||||||||||||||||||
| Investment Banking | 127 | 131 | 149 | 303 | 294 | 292 | 311 | 311 | |||||||||||||||||||||||||
| 788 | 780 | 829 | 993 | 993 | 1,007 | 1,074 | 1,120 | ||||||||||||||||||||||||||
2011 | 2012 | ||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
Average Managing Directors | |||||||||||||||||||||||||||||||||
| Financial Advisory | 94 | 93 | 91 | 90 | 92 | 92 | 95 | 96 | 106 | 97 | |||||||||||||||||||||||
| Alternative Asset Advisory | 26 | 25 | 25 | 24 | 25 | 23 | 23 | 24 | 23 | 23 | |||||||||||||||||||||||
| Investment Banking | 39 | 41 | 48 | 58 | 47 | 76 | 74 | 73 | 73 | 74 | |||||||||||||||||||||||
| 159 | 159 | 164 | 172 | 164 | 191 | 192 | 193 | 202 | 194 | ||||||||||||||||||||||||
End of Period Managing Directors | |||||||||||||||||||||||||||||||||
| Financial Advisory | 94 | 91 | 90 | 92 | 95 | 95 | 96 | 110 | |||||||||||||||||||||||||
| Alternative Asset Advisory | 26 | 25 | 25 | 24 | 23 | 23 | 24 | 23 | |||||||||||||||||||||||||
| Investment Banking | 39 | 43 | 50 | 76 | 73 | 73 | 73 | 71 | |||||||||||||||||||||||||
| 159 | 159 | 165 | 192 | 191 | 191 | 193 | 204 | ||||||||||||||||||||||||||
DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (Unaudited) | |||||||
|
December 31, 2012 |
December 31, 2011 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 68,732 | $ | 38,986 | |||
Accounts receivable (net of allowance for doubtful accounts of
$2,037 and $1,753 at December 31, | 79,360 | 77,795 | |||||
| Unbilled services | 54,159 | 51,427 | |||||
| Prepaid expenses and other current assets | 10,980 | 8,257 | |||||
| Net deferred income taxes, current | 1,819 | 2,545 | |||||
| Total current assets | 215,050 | 179,010 | |||||
Property and equipment (net of accumulated depreciation of $39,534
and $32,516 at December 31, 2012 | 49,926 | 33,632 | |||||
| Goodwill | 205,653 | 192,970 | |||||
Intangible assets (net of accumulated amortization of $35,144 and
$25,626 at December 31, 2012 and | 38,201 | 40,977 | |||||
| Other assets | 16,969 | 13,942 | |||||
| Investments related to deferred compensation plan | 28,775 | 23,542 | |||||
| Net deferred income taxes, less current portion | 161,339 | 115,826 | |||||
| Total non-current assets | 500,863 | 420,889 | |||||
| Total assets | $ | 715,913 | $ | 599,899 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 5,131 | $ | 4,148 | |||
| Accrued expenses | 23,939 | 22,612 | |||||
| Accrued compensation and benefits | 54,315 | 41,518 | |||||
| Liability related to deferred compensation plan, current portion | 506 | 646 | |||||
| Deferred revenues | 6,388 | 4,185 | |||||
| Due to noncontrolling unitholders, current portion | 7,623 | 6,209 | |||||
| Total current liabilities | 97,902 | 79,318 | |||||
| Long-term debt | 22,500 | — | |||||
| Liability related to deferred compensation plan, less current portion | 28,361 | 23,083 | |||||
| Other long-term liabilities | 36,511 | 32,248 | |||||
| Due to noncontrolling unitholders, less current portion | 140,458 | 101,557 | |||||
| Total non-current liabilities | 227,830 | 156,888 | |||||
| Total liabilities | 325,732 | 236,206 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity | |||||||
| Preferred stock (50,000 shares authorized; zero issued and outstanding) | — | — | |||||
Class A common stock, par value $0.01 per share (100,000 shares
authorized; 42,420 and 31,646 shares | 424 | 316 | |||||
Class B common stock, par value $0.0001 per share (50,000 shares
authorized; zero and 10,488 shares | — | 1 | |||||
| Additional paid-in capital | 352,858 | 252,572 | |||||
| Accumulated other comprehensive income | 2,620 | 287 | |||||
| Retained earnings | 34,279 | 25,631 | |||||
| Total stockholders' equity of Duff & Phelps Corporation | 390,181 | 278,807 | |||||
| Noncontrolling interest | — | 84,886 | |||||
| Total stockholders' equity | 390,181 | 363,693 | |||||
| Total liabilities and stockholders' equity | $ | 715,913 | $ | 599,899 | |||
DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||||
Year Ended | ||||||||||
|
December 31, 2012 |
December 31, 2011 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net income | $ | 26,301 | $ | 29,729 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization | 18,138 | 11,164 | ||||||||
| Equity-based compensation | 25,537 | 21,884 | ||||||||
| Bad debt expense | 1,628 | 3,363 | ||||||||
| Net deferred income taxes | 6,432 | 4,811 | ||||||||
| Other | 3,385 | 3,295 | ||||||||
| Changes in assets and liabilities providing/(using) cash, net of acquired balances: | ||||||||||
| Accounts receivable | 387 | (19,821 | ) | |||||||
| Unbilled services | (1,015 | ) | (14,471 | ) | ||||||
| Prepaid expenses and other current assets | (2,591 | ) | 1,399 | |||||||
| Other assets | (4,339 | ) | (146 | ) | ||||||
| Accounts payable and accrued expenses | 4,698 | 5,527 | ||||||||
| Accrued compensation and benefits | 18,363 | 4,379 | ||||||||
| Deferred revenues | 2,069 | 1,756 | ||||||||
| Other liabilities | (2,916 | ) | (869 | ) | ||||||
| Due to noncontrolling unitholders from payments pursuant to the Tax Receivable Agreement | (6,033 | ) | (5,536 | ) | ||||||
| Net cash provided by operating activities | 90,044 | 46,464 | ||||||||
| Cash flows from investing activities: | ||||||||||
| Purchases of property and equipment | (23,706 | ) | (8,057 | ) | ||||||
| Business acquisitions, net of cash acquired | (13,614 | ) | (53,464 | ) | ||||||
| Purchases of investments | (3,150 | ) | (6,200 | ) | ||||||
| Increase in restricted cash | — | (6,400 | ) | |||||||
| Net cash used in investing activities | (40,470 | ) | (74,121 | ) | ||||||
| Cash flows from financing activities: | ||||||||||
| Borrowings under revolving line of credit | 35,000 | — | ||||||||
| Repayments of revolving line of credit | (12,500 | ) | — | |||||||
| Net proceeds from sale of Class A common stock | 49,244 | — | ||||||||
| Redemption of noncontrolling unitholders | (58,972 | ) | — | |||||||
| Dividends | (13,683 | ) | (9,989 | ) | ||||||
| Repurchases of Class A common stock | (9,284 | ) | (28,891 | ) | ||||||
| Payments of contingent consideration related to acquisitions | (6,550 | ) | — | |||||||
| Distributions and other payments to noncontrolling unitholders | (4,082 | ) | (8,447 | ) | ||||||
| Payments of debt issuance costs | — | (302 | ) | |||||||
| Proceeds from exercises of stock options | 16 | 267 | ||||||||
| Excess tax benefit from equity-based compensation | 836 | 963 | ||||||||
| Net cash used in financing activities | (19,975 | ) | (46,399 | ) | ||||||
| Effect of exchange rate on cash and cash equivalents | 147 | (286 | ) | |||||||
| Net increase/(decrease) in cash and cash equivalents | 29,746 | (74,342 | ) | |||||||
| Cash and cash equivalents at beginning of year | 38,986 | 113,328 | ||||||||
| Cash and cash equivalents at end of period | $ | 68,732 | $ | 38,986 | ||||||
DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | ||||||||||||||
Quarter Ended December 31, 2012 | ||||||||||||||
| As Reported | Adjustments |
Adjusted Pro | ||||||||||||
| Revenue | $ | 139,917 | $ | — | $ | 139,917 | ||||||||
| Reimbursable expenses | 5,218 | — | 5,218 | |||||||||||
| Total revenue | 145,135 | — | 145,135 | |||||||||||
| Direct client service costs | ||||||||||||||
| Compensation and benefits | 77,070 | — | 77,070 | |||||||||||
| Other direct client service costs | 4,476 | — | 4,476 | |||||||||||
| Acquisition retention expenses | 3,029 | (3,029 | ) | (2) | — | |||||||||
| Reimbursable expenses | 5,361 | — | 5,361 | |||||||||||
| 89,936 | (3,029 | ) | 86,907 | |||||||||||
| Operating expenses | ||||||||||||||
| Selling, general and administrative | 31,155 | — | 31,155 | |||||||||||
| Depreciation and amortization | 5,128 | — | 5,128 | |||||||||||
| Restructuring charges | (28 | ) | 28 | (3) | — | |||||||||
| Acquisition, integration and corporate development costs | 4,951 | (4,951 | ) | (4) | — | |||||||||
| 41,206 | (4,923 | ) | 36,283 | |||||||||||
| Operating income | 13,993 | 7,952 | 21,945 | |||||||||||
| Other expense/(income), net | ||||||||||||||
| Interest income | (22 | ) | — | (22 | ) | |||||||||
| Interest expense | 256 | — | 256 | |||||||||||
| Other expense/(income) | (526 | ) | — | (526 | ) | |||||||||
| (292 | ) | — | (292 | ) | ||||||||||
| Income before income taxes | 14,285 | 7,952 | 22,237 | |||||||||||
| Provision for income taxes | 7,630 | 1,197 | (6) | 8,827 | ||||||||||
| Net income | 6,655 | 6,755 | 13,410 | |||||||||||
| Less: Net income attributable to noncontrolling interest | 590 | (590 | ) | — | ||||||||||
| Net income attributable to Duff & Phelps Corporation | $ | 6,065 | $ | 7,345 | $ | 13,410 | ||||||||
| Pro forma fully exchanged, fully diluted shares outstanding | 39,247 | |||||||||||||
| Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding | $ | 0.34 | ||||||||||||
See definition of Adjusted Pro Forma Net Income and
accompanying
footnotes in the preceding section of this press release.
DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
Quarter Ended December 31, 2011 | |||||||||||||||
| As Reported | Adjustments |
Adjusted Pro | |||||||||||||
| Revenue | $ | 118,980 | $ | — | $ | 118,980 | |||||||||
| Reimbursable expenses | 5,573 | — | 5,573 | ||||||||||||
| Total revenue | 124,553 | — | 124,553 | ||||||||||||
| Direct client service costs | |||||||||||||||
| Compensation and benefits | 62,934 | 32 | (1) | 62,966 | |||||||||||
| Other direct client service costs | 4,089 | — | 4,089 | ||||||||||||
| Acquisition retention expenses | 1,024 | (1,024 | ) | (2) | — | ||||||||||
| Reimbursable expenses | 5,589 | — | 5,589 | ||||||||||||
| 73,636 | (992 | ) | 72,644 | ||||||||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 27,709 | 2 | (1) | 27,711 | |||||||||||
| Depreciation and amortization | 3,230 | — | 3,230 | ||||||||||||
| Restructuring charges | 95 | (95 | ) | (3) | — | ||||||||||
| Acquisition, integration and corporate development costs | 1,571 | (1,571 | ) | (4) | — | ||||||||||
| 32,605 | (1,664 | ) | 30,941 | ||||||||||||
| Operating income | 18,312 | 2,656 | 20,968 | ||||||||||||
| Other expense/(income), net | |||||||||||||||
| Interest income | (8 | ) | — | (8 | ) | ||||||||||
| Interest expense | 97 | — | 97 | ||||||||||||
| Other expense | 1,502 | (1,500 | ) | (5) | 2 | ||||||||||
| 1,591 | (1,500 | ) | 91 | ||||||||||||
| Income before income taxes | 16,721 | 4,156 | 20,877 | ||||||||||||
| Provision for income taxes | 5,566 | 2,910 | (6) | 8,476 | |||||||||||
| Net income | 11,155 | 1,246 | 12,401 | ||||||||||||
| Less: Net income attributable to noncontrolling interest | 4,110 | (4,110 | ) | — | |||||||||||
| Net income attributable to Duff & Phelps Corporation | $ | 7,045 | $ | 5,356 | $ | 12,401 | |||||||||
| Pro forma fully exchanged, fully diluted shares outstanding | 38,324 | ||||||||||||||
| Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding | $ | 0.32 | |||||||||||||
See definition of Adjusted Pro Forma Net Income and
accompanying
footnotes in the preceding section of this press release.
DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||
| As Reported | Adjustments |
Adjusted Pro | |||||||||||||
| Revenue | $ | 469,164 | $ | — | $ | 469,164 | |||||||||
| Reimbursable expenses | 15,537 | — | 15,537 | ||||||||||||
| Total revenue | 484,701 | — | 484,701 | ||||||||||||
| Direct client service costs | |||||||||||||||
| Compensation and benefits | 256,089 | 43 | (1) | 256,132 | |||||||||||
| Other direct client service costs | 13,119 | — | 13,119 | ||||||||||||
| Acquisition retention expenses | 9,536 | (9,536 | ) | (2) | — | ||||||||||
| Reimbursable expenses | 15,734 | — | 15,734 | ||||||||||||
| 294,478 | (9,493 | ) | 284,985 | ||||||||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 116,032 | (65 | ) | (1) | 115,967 | ||||||||||
| Depreciation and amortization | 18,138 | — | 18,138 | ||||||||||||
| Restructuring charges | 1,796 | (1,796 | ) | (3) | — | ||||||||||
| Acquisition, integration and corporate development costs | 6,865 | (6,865 | ) | (4) | — | ||||||||||
| 142,831 | (8,726 | ) | 134,105 | ||||||||||||
| Operating income | 47,392 | 18,219 | 65,611 | ||||||||||||
| Other expense/(income), net | |||||||||||||||
| Interest income | (59 | ) | — | (59 | ) | ||||||||||
| Interest expense | 748 | — | 748 | ||||||||||||
| Other expense | 380 | (376 | ) | (5) | 4 | ||||||||||
| 1,069 | (376 | ) | 693 | ||||||||||||
| Income before income taxes | 46,323 | 18,595 | 64,918 | ||||||||||||
| Provision for income taxes | 20,022 | 5,621 | (6) | 25,643 | |||||||||||
| Net income | 26,301 | 12,974 | 39,275 | ||||||||||||
| Less: Net income attributable to noncontrolling interest | 4,037 | (4,037 | ) | — | |||||||||||
| Net income attributable to Duff & Phelps Corporation | $ | 22,264 | $ | 17,011 | $ | 39,275 | |||||||||
| Pro forma fully exchanged, fully diluted shares outstanding | 39,051 | ||||||||||||||
| Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding | $ | 1.01 | |||||||||||||
See definition of Adjusted Pro Forma Net Income and
accompanying
footnotes in the preceding section of this press release.
DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||
| As Reported | Adjustments |
Adjusted Pro | |||||||||||||
| Revenue | $ | 383,940 | $ | — | $ | 383,940 | |||||||||
| Reimbursable expenses | 12,934 | — | 12,934 | ||||||||||||
| Total revenue | 396,874 | — | 396,874 | ||||||||||||
| Direct client service costs | |||||||||||||||
| Compensation and benefits | 209,606 | 273 | (1) | 209,879 | |||||||||||
| Other direct client service costs | 9,048 | — | 9,048 | ||||||||||||
| Acquisition retention expenses | 1,624 | (1,624 | ) | (2) | — | ||||||||||
| Reimbursable expenses | 13,073 | — | 13,073 | ||||||||||||
| 233,351 | (1,351 | ) | 232,000 | ||||||||||||
| Operating expenses | |||||||||||||||
| Selling, general and administrative | 100,624 | (480 | ) | (1) | 100,144 | ||||||||||
| Depreciation and amortization | 11,164 | — | 11,164 | ||||||||||||
| Restructuring charges | 4,090 | (4,090 | ) | (3) | — | ||||||||||
| Acquisition, integration and corporate development costs | 2,372 | (2,372 | ) | (4) | — | ||||||||||
| 118,250 | (6,942 | ) | 111,308 | ||||||||||||
| Operating income | 45,273 | 8,293 | 53,566 | ||||||||||||
| Other expense/(income), net | |||||||||||||||
| Interest income | (77 | ) | — | (77 | ) | ||||||||||
| Interest expense | 275 | — | 275 | ||||||||||||
| Other expense | 1,505 | (1,500 | ) | (5) | 5 | ||||||||||
| 1,703 | (1,500 | ) | 203 | ||||||||||||
| Income before income taxes | 43,570 | 9,793 | 53,363 | ||||||||||||
| Provision for income taxes | 13,841 | 7,824 | (6) | 21,665 | |||||||||||
| Net income | 29,729 | 1,969 | 31,698 | ||||||||||||
| Less: Net income attributable to noncontrolling interest | 11,115 | (11,115 | ) | — | |||||||||||
| Net income attributable to Duff & Phelps Corporation | $ | 18,614 | $ | 13,084 | $ | 31,698 | |||||||||
| Pro forma fully exchanged, fully diluted shares outstanding | 38,715 | ||||||||||||||
| Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding | $ | 0.82 | |||||||||||||
See definition of Adjusted Pro Forma Net Income and
accompanying
footnotes in the preceding section of this press release.
Contacts:
Investor Relations
Marty
Dauer, +1-212-871-7700
investor.relations@duffandphelps.com
or
Media
Relations
Alex Wolfe, +1-212-871-9087
alex.wolfe@duffandphelps.com
