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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 September 30, 2012.
Adjusted 1 net income attributable to Artio Global Investors of $3.9 million, or $0.07 per diluted share, for the third quarter of 2012 (GAAP net loss attributable to Artio Global Investors of $52.1 million, or $0.87 per diluted share)
Assets under management of $17.7 billion as of September 30, 2012
Investment management fees of $26.5 million for the third quarter of 2012
Effective fee rate 2 of 55.0 basis points for the third quarter of 2012
Adjusted EBITDA of $2.8 million for the third quarter of 2012
Quarterly dividend of $0.02 per share on Class A common stock
Third quarter 2012 adjusted results are presented to provide more meaningful comparisons between periods and exclude the following items:
A net non-cash charge of $36.9 million, related to a valuation allowance on the Company’s deferred tax assets (recorded in Income Taxes), net of a reduction in amounts payable under the tax receivable agreement (recorded in Non-operating income);
The amortization of restricted stock units (“RSUs”) granted at the time of the Company’s initial public offering (“IPO”) of $19.0 million (including the accelerated amortization related to the removal of service requirements on unvested tranches), and the associated write-off of $3.9 million in related deferred tax assets associated with the vesting of awards at a price below their grant date fair value;
Certain compensation and general and administrative costs associated with organizational changes and the wind-down of the Company’s US Equity strategies of $5.0 million; and
A non-recurring expense related to a potential tax obligation for one of our offshore funds (the “offshore fund expense”) of $1.2 million, for which the Company has indemnified the fund.
For the third quarter of 2012, adjusted net income attributable to Artio Global Investors was $3.9 million, or $0.07 per diluted share, an increase of 21% and 40%, respectively, from adjusted net income attributable to Artio Global Investors of $3.2 million, or $0.05 per diluted share, for the second quarter of 2012, and a decrease of 75% and 74%, respectively, from adjusted net income attributable to Artio Global Investors of $15.9 million, or $0.27 per diluted share, for the third quarter of 2011.