Duff & Phelps Reports 2012 Second Quarter Results, And Declares Quarterly Dividend

BY Business Wire | 07/24/12 - 04:02 PM EDT

Stock quotes in this article: DUF

Comment

Find out if (DUF) is in Cramer's Portfolio.

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

	Three Months Ended					Six Months Ended
	June 30, 2012			June 30, 2011		June 30, 2012		June 30, 2011
Net income attributable to Duff & Phelps Corporation	$	6,593		$	3,424	$	10,498	$	7,537
Net income attributable to noncontrolling interest	1,146			2,223		2,932		4,601
Provision for income taxes	4,894			2,556		8,439		5,620
Other expense/(income), net	685			64		1,190		86
Operating income	13,318			8,267		23,059		17,844
Depreciation and amortization	4,348			2,567		8,245		5,056
Equity-based compensation associated with Legacy Units and IPO Options ⁽¹⁾	(49		)	56		22		473
Acquisition retention expenses	2,444			297		4,487		379
Restructuring charges	239			904		1,418		904
Transaction and integration costs	844			272		1,879		466
Adjusted EBITDA	$	21,144		$	12,363	$	39,110	$	25,122


Reconciliation of Adjusted Pro Forma Net Income
	Three Months Ended						Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Net income attributable to Duff & Phelps Corporation	$	6,593		$	3,424		$	10,498		$	7,537
Net income attributable to noncontrolling interest	1,146			2,223			2,932			4,601
Equity-based compensation associated with Legacy Units and IPO Options ⁽¹⁾	(49		)	56			22			473
Acquisition retention expenses	2,444			297			4,487			379
Restructuring charges	239			904			1,418			904
Transaction and integration costs	844			272			1,879			466
Loss from the write off of an investment ⁽²⁾	—			—			376			—
Adjustment to provision for income taxes ⁽³⁾	(1,495		)	(1,405		)	(3,401		)	(2,512		)
Adjusted Pro Forma Net Income, as defined	$	9,722		$	5,771		$	18,211		$	11,848

Fully diluted weighted average shares of Class A common stock	35,076			28,067			32,514			28,095
Weighted average New Class A Units outstanding	3,961			10,947			6,506			11,038
Pro forma fully exchanged, fully diluted shares outstanding	39,037			39,014			39,020			39,133

Adjusted Pro Forma Net Income per fully exchanged, fully diluted share outstanding	$	0.25		$	0.15		$	0.47		$	0.30

_______________
(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 condensed consolidated financial statements.

(2)		Reflects a charge from the write off of a minority investment. The charge is reflected in "Other expense" on the Company's Condensed Consolidated Statement of Operations.

(3)		Represents an adjustment to reflect an assumed annual effective corporate tax rate of approximately 39.4% and 40.7% as applied to the six months ended June 30, 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. For the three months ended June 30, 2012, the pro forma tax rate of 39.7% reflects a true-up adjustment relating to the three months ended March 31, 2012. 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, 2011 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,2012			June 30,2011			June 30,2012			June 30,2011
Revenues	$	114,489		$	87,886		$	220,834		$	172,932
Reimbursable expenses	4,422			3,074			7,020			4,966
Total revenues	118,911			90,960			227,854			177,898

Direct client service costs
Compensation and benefits (includes $4,084 and $4,130 of equity-based compensation for the three months ended June 30, 2012 and 2011, respectively, and $10,129 and $9,065 for the six months ended June 30, 2012 and 2011, respectively)	62,171			49,059			120,389			95,967
Other direct client service costs	2,429			1,480			5,313			2,909
Acquisition retention expenses (includes $722 and $297 of equity-based compensation for the three months ended June 30, 2012 and 2011, respectively, and $1,444 and $379 for the six months ended June 30, 2012 and 2011, respectively)	2,444			297			4,487			379
Reimbursable expenses	4,400			3,132			7,009			5,069
	71,444			53,968			137,198			104,324
Operating expenses
Selling, general and administrative (includes $808 and $769 of equity- based compensation for the three months ended June 30, 2012 and 2011, respectively, and $1,863 and $2,292 for the six months ended June 30, 2012 and 2011, respectively)	28,718			24,982			56,055			49,304
Depreciation and amortization	4,348			2,567			8,245			5,056
Restructuring charges	239			904			1,418			904
Transaction and integration costs	844			272			1,879			466
	34,149			28,725			67,597			55,730

Operating income	13,318			8,267			23,059			17,844

Other expense/(income), net
Interest income	(5		)	(27		)	(33		)	(55		)
Interest expense	217			91			371			148
Other expense/(income)	473			—			852			(7		)
	685			64			1,190			86

Income before income taxes	12,633			8,203			21,869			17,758
Provision for income taxes	4,894			2,556			8,439			5,620
Net income	7,739			5,647			13,430			12,138
Less: Net income attributable to noncontrolling interest	1,146			2,223			2,932			4,601
Net income attributable to Duff & Phelps Corporation	$	6,593		$	3,424		$	10,498		$	7,537

Weighted average shares of Class A common stock outstanding
Basic	33,788			27,296			31,245			27,104
Diluted	35,076			28,067			32,514			28,095

Net income per share attributable to stockholders of Class A common stock of Duff & Phelps Corporation
Basic	$	0.18		$	0.12		$	0.32		$	0.27
Diluted	$	0.18		$	0.12		$	0.31		$	0.26

Cash dividends declared per common share	$	0.09		$	0.08		$	0.18		$	0.16


DUFF & PHELPS CORPORATION AND SUBSIDIARIES QUARTERLY REVENUES BY SEGMENT (In thousands) (Unaudited)

	2011										2012						Q2 2012 vs 2011					YTD 2012 vs 2011
	Q1		Q2		Q3		Q4		Total		Q1		Q2		Total		Dollar			Percent		Dollar			Percent
Financial Advisory
Valuation Advisory	$	37,614	$	32,604	$	33,887	$	39,046	$	143,151	$	39,490	$	33,610	$	73,100	$	1,006		3.1	%	2,882			4.1	%
Tax Services	7,547		15,128		9,572		8,698		40,945		5,488		13,035		18,523		(2,093		)	(13.8	)%	(4,152		)	(18.3	)%
Dispute & Legal Management Consulting	13,436		13,005		18,319		22,032		66,792		14,675		19,979		34,654		6,974			53.6	%	8,213			31.1	%
	58,597		60,737		61,778		69,776		250,888		59,653		66,624		126,277		5,887			9.7	%	6,943			5.8	%

Alternative Asset Advisory
Portfolio Valuation	6,519		6,220		6,730		6,272		25,741		7,622		6,059		13,681		(161		)	(2.6	)%	942			7.4	%
Complex Asset Solutions	5,321		4,125		3,998		4,631		18,075		4,904		4,048		8,952		(77		)	(1.9	)%	(494		)	(5.2	)%
Due Diligence	1,645		4,070		2,643		3,492		11,850		2,423		2,312		4,735		(1,758		)	(43.2	)%	(980		)	(17.1	)%
	13,485		14,415		13,371		14,395		55,666		14,949		12,419		27,368		(1,996		)	(13.8	)%	(532		)	(1.9	)%

Investment Banking
M&A Advisory	1,450		1,853		5,741		16,568		25,612		9,354		14,953		24,307		13,100			707.0	%	21,004			635.9	%
Transaction Opinions	8,231		7,266		7,466		5,811		28,774		6,742		8,171		14,913		905			12.5	%	(584		)	(3.8	)%
Global Restructuring Advisory	3,283		3,615		3,672		12,430		23,000		15,647		12,322		27,969		8,707			240.9	%	21,071			305.5	%
	12,964		12,734		16,879		34,809		77,386		31,743		35,446		67,189		22,712			178.4	%	41,491			161.5	%

Total Revenues (excluding reimbursables)	$	85,046	$	87,886	$	92,028	$	118,980	$	383,940	$	106,345	$	114,489	$	220,834	$	26,603		30.3	%	$	47,902		27.7	%


DUFF & PHELPS CORPORATION AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT (In thousands, except headcount data) (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,2012			June 30,2011			June 30,2012			June 30,2011
Financial Advisory
Revenues (excluding reimbursables)	$	66,624		$	60,737		$	126,277		$	119,334
Segment operating income	$	13,298		$	9,787		$	23,604		$	19,369
Segment operating income margin	20.0		%	16.1		%	18.7		%	16.2		%

Alternative Asset Advisory
Revenues (excluding reimbursables)	$	12,419		$	14,415		$	27,368		$	27,900
Segment operating income	$	2,385		$	3,302		$	6,531		$	6,524
Segment operating income margin	19.2		%	22.9		%	23.9		%	23.4		%

Investment Banking
Revenues (excluding reimbursables)	$	35,446		$	12,734		$	67,189		$	25,698
Segment operating income/(loss)	$	5,439		$	(668	)	$	8,964		$	(668	)
Segment operating income/(loss) margin	15.3		%	(5.2		)%	13.3		%	(2.6		)%

Totals
Revenues (excluding reimbursables)	$	114,489		$	87,886		$	220,834		$	172,932

Segment operating income	$	21,122		$	12,421		$	39,099		$	25,225
Net client reimbursable expenses	22			(58		)	11			(103		)
Equity-based compensation from Legacy Units and IPO Options	49			(56		)	(22		)	(473		)
Depreciation and amortization	(4,348		)	(2,567		)	(8,245		)	(5,056		)
Acquisition retention expenses	(2,444		)	(297		)	(4,487		)	(379		)
Restructuring charges	(239		)	(904		)	(1,418		)	(904		)
Transaction and integration costs	(844		)	(272		)	(1,879		)	(466		)
Operating income	$	13,318		$	8,267		$	23,059		$	17,844

Average Client Service Professionals
Financial Advisory	612			562			606			567
Alternative Asset Advisory	101			94			101			90
Investment Banking	291			128			297			129
Total	1,004			784			1,004			786

End of Period Client Service Professionals
Financial Advisory	612			552			612			552
Alternative Asset Advisory	103			97			103			97
Investment Banking	292			131			292			131
Total	1,007			780			1,007			780

Revenue per Client Service Professional
Financial Advisory	$	109		$	108		$	208		$	210
Alternative Asset Advisory	$	123		$	153		$	271		$	310
Investment Banking	$	122		$	99		$	226		$	199
Total	$	114		$	112		$	220		$	220


DUFF & PHELPS CORPORATION AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT—CONTINUED (In thousands, except utilization, rate-per-hour and headcount data) (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,2012			June 30,2011			June 30,2012			June 30,2011
Utilization ^(a)
Financial Advisory	71.5		%	67.6		%	73.2		%	71.3		%
Alternative Asset Advisory	56.0		%	61.5		%	58.0		%	61.7		%

Rate-Per-Hour ^(b)
Financial Advisory	$	352		$	363		$	328		$	338
Alternative Asset Advisory	$	457		$	515		$	506		$	522

Revenues (excluding reimbursables)
Financial Advisory	$	66,624		$	60,737		$	126,277		$	119,334
Alternative Asset Advisory	12,419			14,415			27,368			27,900
Investment Banking	35,446			12,734			67,189			25,698
Total	$	114,489		$	87,886		$	220,834		$	172,932

Average Managing Directors
Financial Advisory	95			93			93			93
Alternative Asset Advisory	23			25			23			25
Investment Banking	74			41			75			40
Total	192			159			191			158

End of Period Managing Directors
Financial Advisory	95			91			95			91
Alternative Asset Advisory	23			25			23			25
Investment Banking	73			43			73			43
Total	191			159			191			159

Revenue per Managing Director
Financial Advisory	$	701		$	653		$	1,358		$	1,283
Alternative Asset Advisory	$	540		$	577		$	1,190		$	1,116
Investment Banking	$	479		$	311		$	896		$	642
Total	$	596		$	553		$	1,156		$	1,095

_______________
(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 revenues for the period by the number of hours worked on client assignments (including internal projects for the Company) during the same period. Financial Advisory revenues used to calculate rate-per-hour exclude revenues 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	YTD
Average Client Service Professionals
Financial Advisory	574	562	576	584	575	600	612	606
Alternative Asset Advisory	87	94	98	99	94	99	101	101
Investment Banking	129	128	147	213	158	302	291	297
	790	784	821	896	827	1,001	1,004	1,004


End of Period Client Service Professionals
Financial Advisory	571	552	580	590		605	612
Alternative Asset Advisory	90	97	100	100		94	103
Investment Banking	127	131	149	303		294	292
	788	780	829	993		993	1,007



	2011					2012
	Q1	Q2	Q3	Q4	YTD	Q1	Q2	YTD
Average Managing Directors
Financial Advisory	94	93	91	90	92	92	95	93
Alternative Asset Advisory	26	25	25	24	25	23	23	23
Investment Banking	39	41	48	58	47	76	74	75
	159	159	164	172	164	191	192	191


End of Period Managing Directors
Financial Advisory	94	91	90	92		95	95
Alternative Asset Advisory	26	25	25	24		23	23
Investment Banking	39	43	50	76		73	73
	159	159	165	192		191	191


DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (Unaudited)
	June 30,		December 31,
	2012		2011
ASSETS
Current assets
Cash and cash equivalents	$	49,283	$	38,986
Accounts receivable (net of allowance for doubtful accounts of $1,761 and $1,753 at June 30, 2012 and December 31, 2011, respectively)	75,444		77,795
Unbilled services	54,795		51,427
Prepaid expenses and other current assets	11,493		8,257
Net deferred income taxes, current	1,478		2,545
Total current assets	192,493		179,010

Property and equipment (net of accumulated depreciation of $34,446 and $32,516 at June 30, 2012 and December 31, 2011, respectively)	40,080		33,632
Goodwill	194,643		192,970
Intangible assets (net of accumulated amortization of $30,290 and $25,626 at June 30, 2012 and December 31, 2011, respectively)	35,980		40,977
Other assets	13,108		13,942
Investments related to deferred compensation plan	26,890		23,542
Net deferred income taxes, less current portion	140,771		115,826
Total non-current assets	451,472		420,889
Total assets	$	643,965	$	599,899

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	5,562	$	4,148
Accrued expenses	24,234		22,612
Accrued compensation and benefits	22,691		41,518
Liability related to deferred compensation plan, current portion	594		646
Deferred revenues	5,842		4,185
Due to noncontrolling unitholders, current portion	6,209		6,209
Total current liabilities	65,132		79,318

Long-term debt	22,500		—
Liability related to deferred compensation plan, less current portion	26,396		23,083
Other long-term liabilities	29,716		32,248
Due to noncontrolling unitholders, less current portion	130,337		101,557
Total non-current liabilities	208,949		156,888
Total liabilities	274,081		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; 38,599 and 31,646 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively)	386		316
Class B common stock, par value $0.0001 per share (50,000 shares authorized; 3,952 and 10,488 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively)	—		1
Additional paid-in capital	306,682		252,572
Accumulated other comprehensive income	323		287
Retained earnings	29,529		25,631
Total stockholders' equity of Duff & Phelps Corporation	336,920		278,807
Noncontrolling interest	32,964		84,886
Total stockholders' equity	369,884		363,693
Total liabilities and stockholders' equity	$	643,965	$	599,899


DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Six Months Ended
	June 30,2012			June 30,2011

Cash flows from operating activities:
Net income	$	13,430		$	12,138
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,245			5,056
Equity-based compensation	13,436			11,736
Bad debt expense	445			1,347
Net deferred income taxes	4,902			6,151
Other	1,796			359
Changes in assets and liabilities providing/(using) cash, net of acquired balances:
Accounts receivable	2,148			(1,148		)
Unbilled services	(3,152		)	(18,317		)
Prepaid expenses and other current assets	(2,355		)	(285		)
Other assets	356			(381		)
Accounts payable and accrued expenses	835			(8,223		)
Accrued compensation and benefits	(13,041		)	(22,674		)
Deferred revenues	1,656			1,520
Other liabilities	(4,987		)	83
Net cash provided by/(used in) operating activities	23,714			(12,638		)

Cash flows from investing activities:
Purchases of property and equipment	(7,150		)	(4,012		)
Business acquisitions, net of cash acquired	(1,400		)	(5,891		)
Purchases of investments	(2,550		)	(3,250		)
Net cash used in investing activities	(11,100		)	(13,153		)

Cash flows from financing activities:
Borrowings under revolving line of credit	30,000			—
Repayments of revolving line of credit	(7,500		)	—
Net proceeds from sale of Class A common stock	49,244			—
Redemption of noncontrolling unitholders	(58,972		)	—
Dividends	(6,645		)	(5,012		)
Repurchases of Class A common stock	(5,226		)	(13,649		)
Payments of contingent consideration related to acquisitions	(1,682		)	—
Distributions and other payments to noncontrolling unitholders	(1,636		)	(2,378		)
Proceeds from exercises of stock options	16			267
Excess tax benefit from equity-based compensation	561			911
Net cash used in financing activities	(1,840		)	(19,861		)

Effect of exchange rate on cash and cash equivalents	(477		)	1,799

Net increase/(decrease) in cash and cash equivalents	10,297			(43,853		)
Cash and cash equivalents at beginning of year	38,986			113,328
Cash and cash equivalents at end of period	$	49,283		$	69,475


DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended June 30, 2012
									Adjusted Pro
	As Reported			Adjustments					Forma
Revenues	$	114,489		$	—				$	114,489
Reimbursable expenses	4,422			—					4,422
Total revenues	118,911			—					118,911

Direct client service costs
Compensation and benefits	62,171			47			(1	)	62,218
Other direct client service costs	2,429			—					2,429
Acquisition retention expenses	2,444			(2,444		)			—
Reimbursable expenses	4,400			—					4,400
	71,444			(2,397		)			69,047

Operating expenses
Selling, general and administrative	28,718			2			(1	)	28,720
Depreciation and amortization	4,348			—					4,348
Restructuring charges	239			(239		)			—
Transaction and integration costs	844			(844		)			—
	34,149			(1,081		)			33,068

Operating income	13,318			3,478					16,796

Other expense/(income), net
Interest income	(5		)	—					(5		)
Interest expense	217			—					217
Other expense/(income)	473			—					473
	685			—					685

Income before income taxes	12,633			3,478					16,111
Provision for income taxes	4,894			1,495			(3	)	6,389
Net income	7,739			1,983					9,722
Less: Net income attributable to noncontrolling interest	1,146			(1,146		)			—
Net income attributable to Duff & Phelps Corporation	$	6,593		$	3,129				$	9,722


Pro forma fully exchanged, fully diluted shares outstanding									39,037

Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding									$	0.25

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)

	Three Months Ended June 30, 2011
									Adjusted Pro
	As Reported			Adjustments					Forma
Revenues	$	87,886		$	—				$	87,886
Reimbursable expenses	3,074			—					3,074
Total revenues	90,960			—					90,960

Direct client service costs
Compensation and benefits	49,059			55			(1	)	49,114
Other direct client service costs	1,480			—					1,480
Acquisition retention expenses	297			(297		)			—
Reimbursable expenses	3,132			—					3,132
	53,968			(242		)			53,726

Operating expenses
Selling, general and administrative	24,982			(111		)	(1	)	24,871
Depreciation and amortization	2,567			—					2,567
Restructuring charges	904			(904		)			—
Transaction and integration costs	272			(272		)			—
	28,725			(1,287		)			27,438

Operating income	8,267			1,529					9,796

Other expense/(income), net
Interest income	(27		)	—					(27		)
Interest expense	91			—					91
Other expense/(income)	—			—					—
	64			—					64

Income before income taxes	8,203			1,529					9,732
Provision for income taxes	2,556			1,405			(3	)	3,961
Net income	5,647			124					5,771
Less: Net income attributable to noncontrolling interest	2,223			(2,223		)			—
Net income attributable to Duff & Phelps Corporation	$	3,424		$	2,347				$	5,771


Pro forma fully exchanged, fully diluted shares outstanding									39,014

Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding									$	0.15

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)

	Six Months Ended June 30, 2012
									Adjusted Pro
	As Reported			Adjustments					Forma
Revenues	$	220,834		$	—				$	220,834
Reimbursable expenses	7,020			—					7,020
Total revenues	227,854			—					227,854

Direct client service costs
Compensation and benefits	120,389			43			(1	)	120,432
Other direct client service costs	5,313			—					5,313
Acquisition retention expenses	4,487			(4,487		)			—
Reimbursable expenses	7,009			—					7,009
	137,198			(4,444		)			132,754

Operating expenses
Selling, general and administrative	56,055			(65		)	(1	)	55,990
Depreciation and amortization	8,245			—					8,245
Restructuring charges	1,418			(1,418		)			—
Transaction and integration costs	1,879			(1,879		)			—
	67,597			(3,362		)			64,235

Operating income	23,059			7,806					30,865

Other expense/(income), net
Interest income	(33		)	—					(33		)
Interest expense	371			—					371
Other expense/(income)	852			(376		)	(2	)	476
	1,190			(376		)			814

Income before income taxes	21,869			8,182					30,051
Provision for income taxes	8,439			3,401			(3	)	11,840
Net income	13,430			4,781					18,211
Less: Net income attributable to noncontrolling interest	2,932			(2,932		)			—
Net income attributable to Duff & Phelps Corporation	$	10,498		$	7,713				$	18,211


Pro forma fully exchanged, fully diluted shares outstanding									39,020

Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding									$	0.47

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)

	Six Months Ended June 30, 2011
									Adjusted Pro
	As Reported			Adjustments					Forma
Revenues	$	172,932		$	—				$	172,932
Reimbursable expenses	4,966			—					4,966
Total revenues	177,898			—					177,898

Direct client service costs
Compensation and benefits	95,967			(178		)	(1	)	95,789
Other direct client service costs	2,909			—					2,909
Acquisition retention expenses	379			(379		)			—
Reimbursable expenses	5,069			—					5,069
	104,324			(557		)			103,767

Operating expenses
Selling, general and administrative	49,304			(295		)	(1	)	49,009
Depreciation and amortization	5,056			—					5,056
Restructuring charges	904			(904		)			—
Transaction and integration costs	466			(466		)			—
	55,730			(1,665		)			54,065

Operating income	17,844			2,222					20,066

Other expense/(income), net
Interest income	(55		)	—					(55		)
Interest expense	148			—					148
Other expense/(income)	(7		)	—					(7		)
	86			—					86

Income before income taxes	17,758			2,222					19,980
Provision for income taxes	5,620			2,512			(3	)	8,132
Net income	12,138			(290		)			11,848
Less: Net income attributable to noncontrolling interest	4,601			(4,601		)			—
Net income attributable to Duff & Phelps Corporation	$	7,537		$	4,311				$	11,848


Pro forma fully exchanged, fully diluted shares outstanding									39,133

Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding									$	0.30

See definition of Adjusted Pro Forma Net Income and accompanying footnotes in the preceding section of this press release.

« First ‹ Previous 1 2 3 4 Next › Last »

Select the service that is right for you!

COMPARE ALL SERVICES

Action Alerts PLUS

TRY IT FREE

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:

$2.5+ million portfolio
Large-cap and dividend focus
Intraday trade alerts from Cramer
Weekly roundups

TheStreet Quant Ratings

TRY IT FREE

New! $49.95/yr

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
Upgrade/downgrade alerts

Stocks Under $10

TRY IT FREE

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

Product Features:

Model portfolio
Stocks trading below $10
Intraday trade alerts
Weekly roundups

Dividend Stock Advisor

TRY IT FREE

Jim Cramer's protege, 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
Alerts when market news affect the portfolio
Bi-weekly updates with exact steps to take - BUY, HOLD, SELL

Real Money Pro

TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:

Real Money + Doug Kass + 15 more Wall Street Pros
Intraday commentary & news
Ultra-actionable trading ideas

Options Profits

TRY IT FREE

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

Product Features:

100+ monthly options trading ideas
Actionable options commentary & news
Real-time trading community
Options TV

To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.