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

BY Business Wire | 10/25/12 - 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					Nine Months Ended
	September 30,2012		September 30,2011			September 30,2012		September 30,2011
Net income attributable to Duff & Phelps Corporation	$	5,701	$	4,032		$	16,199	$	11,569
Net income attributable to noncontrolling interest	515		2,404			3,447		7,005
Provision for income taxes	3,953		2,655			12,392		8,275
Other expense/(income), net	171		26			1,361		112
Operating income	10,340		9,117			33,399		26,961
Depreciation and amortization	4,765		2,878			13,010		7,934
Equity-based compensation associated with Legacy Units and IPO Options ⁽¹⁾	—		(232		)	22		241
Acquisition retention expenses	2,020		221			6,507		600
Restructuring charges	406		3,091			1,824		3,995
Transaction and integration costs	35		335			1,914		801
Adjusted EBITDA	$	17,566	$	15,410		$	56,676	$	40,532

Reconciliation of Adjusted Pro Forma Net Income

	Three Months Ended						Nine Months Ended
	September 30,2012			September 30,2011			September 30,2012			September 30,2011
Net income attributable to Duff & Phelps Corporation	$	5,701		$	4,032		$	16,199		$	11,569
Net income attributable to noncontrolling interest	515			2,404			3,447			7,005
Equity-based compensation associated with Legacy Units and IPO Options ⁽¹⁾	—			(232		)	22			241
Acquisition retention expenses	2,020			221			6,507			600
Restructuring charges	406			3,091			1,824			3,995
Transaction and integration costs	35			335			1,914			801
Loss from the write off of an investment ⁽²⁾	—			—			376			—
Adjustment to provision for income taxes ⁽³⁾	(1,023		)	(2,402		)	(4,424		)	(4,914		)
Adjusted Pro Forma Net Income, as defined	$	7,654		$	7,449		$	25,865		$	19,297

Fully diluted weighted average shares of Class A common stock	36,208			27,060			33,718			27,834
Weighted average New Class A Units outstanding	2,897			10,813			5,294			10,962
Pro forma fully exchanged, fully diluted shares outstanding	39,105			37,873			39,012			38,796

Adjusted Pro Forma Net Income per fully exchanged, fully diluted share outstanding	$	0.20		$	0.20		$	0.66		$	0.50

_______________
(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 40.6% as applied to the three and nine months ended September 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 September 30, 2011, the pro forma tax rate of 40.4% reflects a true-up adjustment relating to the six months ended June 30, 2011. 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						Nine Months Ended
	September 30,2012			September 30,2011			September 30,2012			September 30,2011
Revenue	$	108,413		$	92,028		$	329,247		$	264,960
Reimbursable expenses	3,299			2,395			10,319			7,361
Total revenue	111,712			94,423			339,566			272,321

Direct client service costs
Compensation and benefits (includes $4,710 and $4,316 of equity-based compensation for the three months ended September 30, 2012 and 2011, respectively, and $14,839 and $13,381 for the nine months ended September 30, 2012 and 2011, respectively)	58,630			50,705			179,019			146,672
Other direct client service costs	3,330			2,050			8,643			4,959
Acquisition retention expenses (includes $730 and $221 of equity-based compensation for the three months ended September 30, 2012 and 2011, respectively, and $2,174 and $600 for the nine months ended September 30, 2012 and 2011, respectively)	2,020			221			6,507			600
Reimbursable expenses	3,364			2,415			10,373			7,484
	67,344			55,391			204,542			159,715
Operating expenses
Selling, general and administrative (includes $844 and $819 of equity-based compensation for the three months ended September 30, 2012 and 2011, respectively, and $2,707 and $3,111 for the nine months ended September 30, 2012 and 2011, respectively)	28,822			23,611			84,877			72,915
Depreciation and amortization	4,765			2,878			13,010			7,934
Restructuring charges	406			3,091			1,824			3,995
Transaction and integration costs	35			335			1,914			801
	34,028			29,915			101,625			85,645

Operating income	10,340			9,117			33,399			26,961

Other expense/(income), net
Interest income	(4		)	(14		)	(37		)	(69		)
Interest expense	121			30			492			178
Other expense	54			10			906			3
	171			26			1,361			112

Income before income taxes	10,169			9,091			32,038			26,849
Provision for income taxes	3,953			2,655			12,392			8,275
Net income	6,216			6,436			19,646			18,574
Less: Net income attributable to noncontrolling interest	515			2,404			3,447			7,005
Net income attributable to Duff & Phelps Corporation	$	5,701		$	4,032		$	16,199		$	11,569

Weighted average shares of Class A common stock outstanding
Basic	34,830			26,945			32,449			27,050
Diluted	36,208			27,060			33,718			27,834

Net income per share attributable to stockholders of Class A common stock of Duff & Phelps Corporation
Basic	$	0.16		$	0.14		$	0.48		$	0.41
Diluted	$	0.15		$	0.14		$	0.46		$	0.40

Cash dividends declared per common share	$	0.09		$	0.08		$	0.27		$	0.24

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

	2011										2012								Q3 2012 vs 2011					YTD 2012 vs 2011
	Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		Total		Dollar			Percent		Dollar			Percent
Financial Advisory
Valuation Advisory	$	37,614	$	32,604	$	33,887	$	39,046	$	143,151	$	39,490	$	33,610	$	33,895	$	106,995	$	8		—	%	$	2,890		2.8	%
Tax Services	7,547		15,128		9,572		8,698		40,945		5,488		13,035		11,008		29,531		1,436			15.0	%	(2,716		)	(8.4	)%
Dispute & Legal Management Consulting	13,436		13,005		18,319		22,032		66,792		14,675		19,979		22,708		57,362		4,389			24.0	%	12,602			28.2	%
	58,597		60,737		61,778		69,776		250,888		59,653		66,624		67,611		193,888		5,833			9.4	%	12,776			7.1	%

Alternative Asset Advisory
Portfolio Valuation	6,519		6,220		6,730		6,272		25,741		7,622		6,059		6,417		20,098		(313		)	(4.7	)%	629			3.2	%
Complex Asset Solutions	5,321		4,125		3,998		4,631		18,075		4,904		4,048		6,270		15,222		2,272			56.8	%	1,778			13.2	%
Due Diligence	1,645		4,070		2,643		3,492		11,850		2,423		2,312		2,516		7,251		(127		)	(4.8	)%	(1,107		)	(13.2	)%
	13,485		14,415		13,371		14,395		55,666		14,949		12,419		15,203		42,571		1,832			13.7	%	1,300			3.1	%

Investment Banking
M&A Advisory	1,450		1,853		5,741		16,568		25,612		9,354		14,953		8,145		32,452		2,404			41.9	%	23,408			258.8	%
Transaction Opinions	8,231		7,266		7,466		5,811		28,774		6,742		8,171		5,957		20,870		(1,509		)	(20.2	)%	(2,093		)	(9.1	)%
Global Restructuring Advisory	3,283		3,615		3,672		12,430		23,000		15,647		12,322		11,497		39,466		7,825			213.1	%	28,896			273.4	%
	12,964		12,734		16,879		34,809		77,386		31,743		35,446		25,599		92,788		8,720			51.7	%	50,211			117.9	%

Total Revenue (excluding reimbursables)	$	85,046	$	87,886	$	92,028	$	118,980	$	383,940	$	106,345	$	114,489	$	108,413	$	329,247	$	16,385		17.8	%	$	64,287		24.3	%

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

	Three Months Ended						Nine Months Ended
	September 30,2012			September 30,2011			September 30,2012			September 30,2011
Financial Advisory
Revenue (excluding reimbursables)	$	67,611		$	61,778		$	193,888		$	181,112
Segment operating income	$	14,056		$	10,995		$	37,660		$	30,364
Segment operating income margin	20.8		%	17.8		%	19.4		%	16.8		%

Alternative Asset Advisory
Revenue (excluding reimbursables)	$	15,203		$	13,371		$	42,571		$	41,271
Segment operating income	$	4,120		$	2,821		$	10,651		$	9,345
Segment operating income margin	27.1		%	21.1		%	25.0		%	22.6		%

Investment Banking
Revenue (excluding reimbursables)	$	25,599		$	16,879		$	92,788		$	42,577
Segment operating income/(loss)	$	(545	)	$	1,614		$	8,419		$	946
Segment operating income/(loss) margin	(2.1		)%	9.6		%	9.1		%	2.2		%

Totals
Revenue (excluding reimbursables)	$	108,413		$	92,028		$	329,247		$	264,960

Segment operating income	$	17,631		$	15,430		$	56,730		$	40,655
Net client reimbursable expenses	(65		)	(20		)	(54		)	(123		)
Equity-based compensation from Legacy Units and IPO Options	—			232			(22		)	(241		)
Depreciation and amortization	(4,765		)	(2,878		)	(13,010		)	(7,934		)
Acquisition retention expenses	(2,020		)	(221		)	(6,507		)	(600		)
Restructuring charges	(406		)	(3,091		)	(1,824		)	(3,995		)
Transaction and integration costs	(35		)	(335		)	(1,914		)	(801		)
Operating income	$	10,340		$	9,117		$	33,399		$	26,961

Average Client Service Professionals
Financial Advisory	646			576			621			572
Alternative Asset Advisory	106			98			103			93
Investment Banking	310			147			303			136
Total	1,062			821			1,027			801

End of Period Client Service Professionals
Financial Advisory	657			580			657			580
Alternative Asset Advisory	106			100			106			100
Investment Banking	311			149			311			149
Total	1,074			829			1,074			829

Revenue per Client Service Professional
Financial Advisory	$	105		$	107		$	312		$	317
Alternative Asset Advisory	$	143		$	136		$	413		$	444
Investment Banking	$	83		$	115		$	306		$	313
Total	$	102		$	112		$	321		$	331

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						Nine Months Ended
	September 30,2012			September 30,2011			September 30,2012			September 30,2011
Utilization ^(a)
Financial Advisory	70.3		%	71.2		%	72.2		%	71.3		%
Alternative Asset Advisory	62.1		%	58.6		%	59.4		%	60.6		%

Rate-Per-Hour ^(b)
Financial Advisory	$	344		$	338		$	334		$	338
Alternative Asset Advisory	$	504		$	501		$	506		$	515

Revenues (excluding reimbursables)
Financial Advisory	$	67,611		$	61,778		$	193,888		$	181,112
Alternative Asset Advisory	15,203			13,371			42,571			41,271
Investment Banking	25,599			16,879			92,788			42,577
Total	$	108,413		$	92,028		$	329,247		$	264,960

Average Managing Directors
Financial Advisory	96			91			94			92
Alternative Asset Advisory	24			25			23			25
Investment Banking	73			48			74			43
Total	193			164			191			160

End of Period Managing Directors
Financial Advisory	96			90			96			90
Alternative Asset Advisory	24			25			24			25
Investment Banking	73			50			73			50
Total	193			165			193			165

Revenue per Managing Director
Financial Advisory	$	704		$	679		$	2,063		$	1,969
Alternative Asset Advisory	$	633		$	535		$	1,851		$	1,651
Investment Banking	$	351		$	352		$	1,254		$	990
Total	$	562		$	561		$	1,724		$	1,656

_______________
(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	Q3	YTD
Average Client Service Professionals
Financial Advisory	574	562	576	584	575	600	612	646	621
Alternative Asset Advisory	87	94	98	99	94	99	101	106	103
Investment Banking	129	128	147	213	158	302	291	310	303
	790	784	821	896	827	1,001	1,004	1,062	1,027


End of Period Client Service Professionals
Financial Advisory	571	552	580	590		605	612	657
Alternative Asset Advisory	90	97	100	100		94	103	106
Investment Banking	127	131	149	303		294	292	311
	788	780	829	993		993	1,007	1,074



	2011					2012
	Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	YTD
Average Managing Directors
Financial Advisory	94	93	91	90	92	92	95	96	94
Alternative Asset Advisory	26	25	25	24	25	23	23	24	23
Investment Banking	39	41	48	58	47	76	74	73	74
	159	159	164	172	164	191	192	193	191


End of Period Managing Directors
Financial Advisory	94	91	90	92		95	95	96
Alternative Asset Advisory	26	25	25	24		23	23	24
Investment Banking	39	43	50	76		73	73	73
	159	159	165	192		191	191	193

DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (Unaudited)

	September 30,2012		December 31,2011
ASSETS
Current assets
Cash and cash equivalents	$	46,837	$	38,986
Accounts receivable (net of allowance for doubtful accounts of $1,918 and $1,753 at September 30, 2012 and December 31, 2011, respectively)	73,455		77,795
Unbilled services	59,932		51,427
Prepaid expenses and other current assets	9,264		8,257
Net deferred income taxes, current	2,285		2,545
Total current assets	191,773		179,010

Property and equipment (net of accumulated depreciation of $36,971 and $32,516 at September 30, 2012 and December 31, 2011, respectively)	49,356		33,632
Goodwill	195,726		192,970
Intangible assets (net of accumulated amortization of $32,739 and $25,626 at September 30, 2012 and December 31, 2011, respectively)	34,017		40,977
Other assets	14,570		13,942
Investments related to deferred compensation plan	28,389		23,542
Net deferred income taxes, less current portion	150,017		115,826
Total non-current assets	472,075		420,889
Total assets	$	663,848	$	599,899

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	5,331	$	4,148
Accrued expenses	27,716		22,612
Accrued compensation and benefits	26,560		41,518
Liability related to deferred compensation plan, current portion	625		646
Deferred revenues	5,247		4,185
Due to noncontrolling unitholders, current portion	6,214		6,209
Total current liabilities	71,693		79,318

Long-term debt	17,500		—
Liability related to deferred compensation plan, less current portion	27,945		23,083
Other long-term liabilities	29,836		32,248
Due to noncontrolling unitholders, less current portion	137,726		101,557
Total non-current liabilities	213,007		156,888
Total liabilities	284,700		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; 40,399 and 31,646 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively)	404		316
Class B common stock, par value $0.0001 per share (50,000 shares authorized; 2,029 and 10,488 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively)	—		1
Additional paid-in capital	327,129		252,572
Accumulated other comprehensive income	2,390		287
Retained earnings	31,806		25,631
Total stockholders' equity of Duff & Phelps Corporation	361,729		278,807
Noncontrolling interest	17,419		84,886
Total stockholders' equity	379,148		363,693
Total liabilities and stockholders' equity	$	663,848	$	599,899

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

	Nine Months Ended
	September 30,2012			September 30,2011

Cash flows from operating activities:
Net income	$	19,646		$	18,574
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,010			7,934
Equity-based compensation	19,720			17,092
Bad debt expense	1,056			1,920
Net deferred income taxes	2,243			5,919
Other	3,399			2,448
Changes in assets and liabilities providing/(using) cash, net of acquired balances:
Accounts receivable	3,526			(5,236		)
Unbilled services	(8,289		)	(15,416		)
Prepaid expenses and other current assets	(213		)	1,777
Other assets	(2,024		)	2,453
Accounts payable and accrued expenses	5,967			(5,541		)
Accrued compensation and benefits	(7,240		)	(18,201		)
Deferred revenues	1,061			1,994
Other liabilities	(5,274		)	(1,172		)
Net cash provided by operating activities	46,588			14,545

Cash flows from investing activities:
Purchases of property and equipment	(18,254		)	(6,410		)
Business acquisitions, net of cash acquired	(1,432		)	(5,891		)
Purchases of investments	(3,150		)	(3,500		)
Net cash used in investing activities	(22,836		)	(15,801		)

Cash flows from financing activities:
Borrowings under revolving line of credit	30,000			—
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	(10,083		)	(7,502		)
Repurchases of Class A common stock	(6,941		)	(24,114		)
Payments of contingent consideration related to acquisitions	(5,314		)	—
Distributions and other payments to noncontrolling unitholders	(2,196		)	(4,306		)
Proceeds from exercises of stock options	16			267
Excess tax benefit from equity-based compensation	711			867
Net cash used in financing activities	(16,035		)	(34,788		)

Effect of exchange rate on cash and cash equivalents	134			310

Net increase/(decrease) in cash and cash equivalents	7,851			(35,734		)
Cash and cash equivalents at beginning of year	38,986			113,328
Cash and cash equivalents at end of period	$	46,837		$	77,594

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

	Three Months Ended September 30, 2012
	As Reported			Adjustments				Adjusted Pro Forma
Revenues	$	108,413		$	—			$	108,413
Reimbursable expenses	3,299			—				3,299
Total revenues	111,712			—				111,712

Direct client service costs
Compensation and benefits	58,630			—				58,630
Other direct client service costs	3,330			—				3,330
Acquisition retention expenses	2,020			(2,020		)		—
Reimbursable expenses	3,364			—				3,364
	67,344			(2,020		)		65,324

Operating expenses
Selling, general and administrative	28,822			—				28,822
Depreciation and amortization	4,765			—				4,765
Restructuring charges	406			(406		)		—
Transaction and integration costs	35			(35		)		—
	34,028			(441		)		33,587

Operating income	10,340			2,461				12,801

Other expense/(income), net
Interest income	(4		)	—				(4		)
Interest expense	121			—				121
Other expense	54			—				54
	171			—				171

Income before income taxes	10,169			2,461				12,630
Provision for income taxes	3,953			1,023			(3)	4,976
Net income	6,216			1,438				7,654
Less: Net income attributable to noncontrolling interest	515			(515		)		—
Net income attributable to Duff & Phelps Corporation	$	5,701		$	1,953			$	7,654


Pro forma fully exchanged, fully diluted shares outstanding								39,105

Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding								$	0.20

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 September 30, 2011
	As Reported			Adjustments				Adjusted Pro Forma
Revenues	$	92,028		$	—			$	92,028
Reimbursable expenses	2,395			—				2,395
Total revenues	94,423			—				94,423

Direct client service costs
Compensation and benefits	50,705			419			(1)	51,124
Other direct client service costs	2,050			—				2,050
Acquisition retention expenses	221			(221		)
Reimbursable expenses	2,415			—				2,415
	55,391			198				55,589

Operating expenses
Selling, general and administrative	23,611			(187		)	(1)	23,424
Depreciation and amortization	2,878			—				2,878
Restructuring charges	3,091			(3,091		)
Transaction and integration costs	335			(335		)
	29,915			(3,613		)		26,302

Operating income	9,117			3,415				12,532

Other expense/(income), net
Interest income	(14		)	—				(14		)
Interest expense	30			—				30
Other expense	10			—				10
	26			—				26

Income before income taxes	9,091			3,415				12,506
Provision for income taxes	2,655			2,402			(3)	5,057
Net income	6,436			1,013				7,449
Less: Net income attributable to noncontrolling interest	2,404			(2,404		)
Net income attributable to Duff & Phelps Corporation	$	4,032		$	3,417			$	7,449


Pro forma fully exchanged, fully diluted shares outstanding								37,873

Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding								$	0.20

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)

	Nine Months Ended September 30, 2012
	As Reported			Adjustments				Adjusted Pro Forma
Revenues	$	329,247		$	—			$	329,247
Reimbursable expenses	10,319			—				10,319
Total revenues	339,566			—				339,566

Direct client service costs
Compensation and benefits	179,019			43			(1)	179,062
Other direct client service costs	8,643			—				8,643
Acquisition retention expenses	6,507			(6,507		)		—
Reimbursable expenses	10,373			—				10,373
	204,542			(6,464		)		198,078

Operating expenses
Selling, general and administrative	84,877			(65		)	(1)	84,812
Depreciation and amortization	13,010			—				13,010
Restructuring charges	1,824			(1,824		)		—
Transaction and integration costs	1,914			(1,914		)		—
	101,625			(3,803		)		97,822

Operating income	33,399			10,267				43,666

Other expense/(income), net
Interest income	(37		)	—				(37		)
Interest expense	492			—				492
Other expense	906			(376		)	(2)	530
	1,361			(376		)		985

Income before income taxes	32,038			10,643				42,681
Provision for income taxes	12,392			4,424			(3)	16,816
Net income	19,646			6,219				25,865
Less: Net income attributable to noncontrolling interest	3,447			(3,447		)
Net income attributable to Duff & Phelps Corporation	$	16,199		$	9,666			$	25,865


Pro forma fully exchanged, fully diluted shares outstanding								39,012

Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding								$	0.66

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)

	Nine Months Ended September 30, 2011
	As Reported			Adjustments				Adjusted Pro Forma
Revenues	$	264,960		$	—			$	264,960
Reimbursable expenses	7,361			—				7,361
Total revenues	272,321			—				272,321

Direct client service costs
Compensation and benefits	146,672			241			(1)	146,913
Other direct client service costs	4,959			—				4,959
Acquisition retention expenses	600			(600		)		—
Reimbursable expenses	7,484			—				7,484
	159,715			(359		)		159,356

Operating expenses
Selling, general and administrative	72,915			(482		)	(1)	72,433
Depreciation and amortization	7,934			—				7,934
Restructuring charges	3,995			(3,995		)		—
Transaction and integration costs	801			(801		)		—
	85,645			(5,278		)		80,367

Operating income	26,961			5,637				32,598

Other expense/(income), net
Interest income	(69		)	—				(69		)
Interest expense	178			—				178
Other expense	3			—				3
	112			—				112

Income before income taxes	26,849			5,637				32,486
Provision for income taxes	8,275			4,914			(3)	13,189
Net income	18,574			723				19,297
Less: Net income attributable to noncontrolling interest	7,005			(7,005		)		—
Net income attributable to Duff & Phelps Corporation	$	11,569		$	7,728			$	19,297


Pro forma fully exchanged, fully diluted shares outstanding								38,796

Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding								$	0.50

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

Dividend Stock Advisor

TRY IT FREE

New! $49.95/yr

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

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

Real Money

TRY IT FREE

24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.

Product Features:

Jim Cramer + 20 Wall Street pros
Intraday commentary & news
Real-time trading forum
Actionable trade ideas

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.