This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pzena Investment Management, Inc. Reports Results For The Second Quarter Of 2010

Total operating expenses were $9.4 million in the second quarter of 2010, compared to $8.0 million in the second quarter of 2009, and $9.3 million in the first quarter of 2010. Operating expenses for the six months ended June 30, 2010 increased by $2.3 million, or 14.0%, compared to the six months ended June 30, 2009. The year-over-year increase in operating expenses was primarily due to increases in discretionary bonus accruals.

As of June 30, 2010, employee headcount was 70, up from 67 at June 30, 2009 and from 68 at March 31, 2010.

The operating margin was 51.4% for the second quarter of 2010, compared to 44.1% for the second quarter of 2009, and 51.4% for the first quarter of 2010. For the six months ended June 30, 2010, the operating margin was 51.4%, compared to 41.1% for the six months ended June 30, 2009. The year-over-year increase in the operating margin is primarily a result of an increase in weighted average assets and revenues.

Other income/(expense) was income of $0.4 million for the second quarter of 2010, income of $2.9 million for the second quarter of 2009, and an expense of $0.7 million for the first quarter of 2010. Second quarter 2010 other income/(expense) included income of $1.1 million associated with a decrease in the Company’s liability to its selling and converting shareholders resulting from changes in the realizability of its related deferred tax asset. Such adjustments generated expenses of $0.6 million and $1.0 million in the second quarter of 2009 and first quarter of 2010, respectively. Details of other income/(expense), as well as a reconciliation of the GAAP and non-GAAP measures, are shown below:

Other Income/(Expense) (unaudited)

($ thousands)        
Three Months Ended
June 30, March 31, June 30,
2010 2010 2009
 
Interest and Dividend Income $ 112 $ 73 $ 127
Interest Expense (77 ) (155 ) (405 )
Realized and Unrealized Gain/(Loss), Net on Equity Securities (871 ) 464 3,729
Other Income/(Expense)   1,208     (1,047 )   (515 )
GAAP Other Income/(Expense)   372     (665 )   2,936  
Change in Liability to Selling and Converting Shareholders¹ (1,118 ) 1,026 602
Outside Interests of Investment Partnerships²   162     -     (2,336 )
Non-GAAP Other Income/(Expense), Net of Outside Interests $ (584 ) $ 361   $ 1,202  
 
Six Months Ended
June 30, June 30,
2010   2009  
 
Interest and Dividend Income $ 185 $ 247
Interest Expense (232 ) (855 )
Realized and Unrealized Gain/(Loss), Net on Equity Securities (407 ) 1,909
Other Income/(Expense)   161     (1,096 )
GAAP Other Income/(Expense)   (293 )   205  
Change in Liability to Selling and Converting Shareholders¹ (92 ) 1,204
Outside Interests of Investment Partnerships²   162     (1,010 )
Non-GAAP Other Income/(Expense), Net of Outside Interests $ (223 ) $ 399  
 

(1)

 

Reflects the change in the liability to the Company’s selling and converting shareholders associated with the deferred tax asset generated by the Company’s initial public offering and subsequent unit conversions.

 

(2)

Represents the non-controlling interest allocation of the loss/(income) of the Company’s consolidated investment partnerships to its external investors.

The realized and unrealized gain/(loss), net on equity securities represents both the Company’s and its external investors’ gains and losses on investments in the Company’s own products.

4 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PZN $9.04 0.00%
AAPL $131.78 0.00%
FB $80.14 0.00%
GOOG $539.78 0.00%
TSLA $251.45 0.00%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs