This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Fortress Reports Second Quarter 2012 Results And Announces Dividend Of $0.05 Per Share

SUMMARY FINANCIAL RESULTS

Fortress’s business model is highly diversified, and management believes that this positions the company to capitalize on opportunities for investing, capital formation and harvesting profits that can occur at different points in any cycle for our individual businesses. The cornerstone of Fortress’s business model is its ability to generate stable and predictable management fees, which is a function of the majority of alternative assets under management residing in long-term investment structures. Fortress’s alternatives businesses also generate variable incentive income based on performance, and this incentive income can contribute meaningfully to financial results. Balance sheet investments represent a third component of Fortress’s business model, and the company has built substantial value in these investments, which are made in Fortress funds alongside the company’s limited partners.

The table below summarizes Fortress’s operating results for the three and six months ended June 30, 2012. The consolidated GAAP statement of operations and balance sheet are presented at the end of this press release.

             
2Q 1Q 2Q % Change 1H 1H % Change
  2012     2012     2011  

 QoQ 

 

 YoY 

  2012     2011   YoY
(in millions, except per share amount)
GAAP
Net income (loss) $ 14 $ (24 ) $ (246 ) N/M N/M $ (10 ) $ (501 ) N/M
Net income (loss) attributable to Class A Shareholders $ 5   $ (30 ) $ (95 ) N/M

 

N/M $ (25 ) $ (198 ) N/M  
Per diluted share $ (0.12 ) $ (0.16 ) $ (0.56 ) N/M N/M $ (0.13 ) $ (1.11 ) N/M  
Weighted average Class A shares outstanding, diluted 516 516 491 516 491
 
Distributable Earnings (non-GAAP)
Fund management DE $ 53 $ 56 $ 54 -5 % -2 % $ 109 $ 149 -27 %
Pre-tax DE $ 50   $ 57   $ 46   -12 % 9 % $ 107   $ 149   -28 %
Per dividend paying share/unit $ 0.09   $ 0.11   $ 0.09   -15 % 7 % $ 0.20   $ 0.28   -28 %
Weighted average dividend paying shares and units outstanding 533 533 526 533 526
 
Assets Under Management
Private Equity $ 13,826 $ 13,239 $ 13,256 4 % 4 % $ 13,826 $ 13,256 4 %
Credit 11,452 12,269 11,315 -7 % 1 % 11,452 11,315 1 %
Liquid Markets 4,398 4,840 6,321 -9 % -30 % 4,398 6,321 -30 %
Logan Circle   18,112     16,084     12,931   13 % 40 %   18,112     12,931   40 %
Total Assets Under Management $ 47,788   $ 46,432   $ 43,823   3 % 9 % $ 47,788   $ 43,823   9 %
 

CONSOLIDATED GAAP RESULTS

Fortress recorded GAAP net income of $14 million, or a $0.12 loss per diluted share in the second quarter of 2012, compared with a GAAP net loss of $246 million, or $0.56 per diluted share, in the second quarter of 2011. Our diluted loss per share for all periods presented includes the income tax effects to net income (loss) attributable to Class A Shareholders from the assumed conversion of Fortress Operating Group Units and fully vested Restricted Partnership Units to Class A shares.

2 of 15

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs