Artio Global Investors Reports Second Quarter 2012 Results; Announces Dividend Of $0.02 Per Share
Artio Global Investors Inc. (NYSE: ART) (“Artio Global Investors”, together with its subsidiaries, “Artio Global” or the “Company”) today reported its results for the quarter ended June 30, 2012.
- Adjusted 1 net income attributable to Artio Global Investors of $3.2 million, or $0.05 per diluted share, for the second quarter of 2012 (GAAP net income attributable to Artio Global Investors of $1.5 million, or $0.03 per diluted share)
- Assets under management of $21.2 billion as of June 30, 2012
- Investment management fees of $33.3 million for the second quarter of 2012
- Effective fee rate 2 of 56.7 basis points for the second quarter of 2012
- Adjusted EBITDA of $8.7 million for the second quarter of 2012
- Quarterly dividend of $0.02 per share on Class A common stock
- Today, the Company announced a reduction of its workforce by 25 employees. This reduction, along with other cost reductions achieved during the first six months of 2012, will result in annualized operating expense savings of approximately $20 million, mostly related to compensation. No portfolio managers or research analysts within its International Equity, High Yield or High Grade Fixed Income strategies were included in the workforce reduction.
The Company’s adjusted results for all periods exclude the amortization of restricted stock units (“RSUs”) granted at the time of the Company’s initial public offering (“IPO”), and assume for the periods prior to the Principals’ 3 exchanges on April 24, 2012 4, that the Principals’ non-controlling interests have been fully exchanged for shares of Class A common stock. The Company’s adjusted results for the three and six months ended June 30, 2012, and the three months ended March 31, 2012, exclude certain costs associated with organizational changes. The Company’s adjusted results for the six months ended June 30, 2012, and the three months ended March 31, 2012, also exclude the write-off of unamortized debt issuance costs in connection with the early repayment of the Company’s term debt. Adjusted results are presented to provide more meaningful comparisons between periods.
For the second quarter of 2012, adjusted net income attributable to Artio Global Investors was $3.2 million, or $0.05 per diluted share, a decrease of 50% and 55%, respectively, from adjusted net income attributable to Artio Global Investors of $6.5 million, or $0.11 per diluted share, for the first quarter of 2012, and a decrease of 86% and 87%, respectively, from adjusted net income attributable to Artio Global Investors of $23.3 million, or $0.39 per diluted share, for the second quarter of 2011.
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