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Artio Global Investors Reports Third Quarter 2012 Results; Announces Dividend Of $0.02 Per Share

Stocks in this article: ART

On a GAAP basis, net loss attributable to Artio Global Investors for the third quarter of 2012 was $52.1 million, or $0.87 per diluted share, down from net income attributable to Artio Global Investors of $1.5 million, or $0.03 per diluted share, for the second quarter of 2012, and down from net income attributable to Artio Global Investors of $6.4 million, or $0.11 per diluted share, for the third quarter of 2011.

For the first nine months of 2012, adjusted net income attributable to Artio Global Investors was $13.5 million, or $0.23 per diluted share, a decrease of 79% and 78%, respectively, from adjusted net income attributable to Artio Global Investors of $63.4 million, or $1.06 per diluted share, for the first nine months of 2011.

On a GAAP basis, net loss attributable to Artio Global Investors for the first nine months of 2012 was $46.0 million, or $0.78 per diluted share, a decrease of 193% and 192%, respectively, from net income attributable to Artio Global Investors of $49.6 million, or $0.85 per diluted share, for the first nine months of 2011.

The following tables compare the Company’s GAAP results and adjusted results. See Exhibits 3 – 5 of this news release for a reconciliation of the Company’s GAAP results to adjusted results.

       
Three Months Ended
(unaudited, in millions, except per share amounts)

Sep. 30, 2012

       

Sep. 30, 2011

       

% Change

       

Jun. 30, 2012

       

% Change

Revenue 3, GAAP

$26.9 $63.8

(58%)

$32.7

(18%)

Operating income (loss), GAAP

($24.1)

$21.2 NM $2.5 NM
Operating income, adjusted $1.2 $31.9

(96%)

$5.4

(78%)

Net income (loss) attributable to

Artio Global Investors, GAAP

($52.1)

$6.4

NM

$1.5

NM

Net income attributable to Artio

Global Investors, adjusted

$3.9

$15.9

(75%)

$3.2

21%

Diluted EPS, GAAP

($0.87)

$0.11 NM $0.03 NM
Diluted EPS, adjusted $0.07 $0.27

(74%)

$0.05 40%

Adjusted EBITDA 4

$2.8 $34.7

(92%)

$8.7

(68%)

       
       
Nine Months Ended
(unaudited, in millions, except per share amounts)

Sep. 30, 2012

       

Sep. 30, 2011

       

% Change

Revenue 3, GAAP

$103.5 $224.1 (54%)

Operating income (loss), GAAP

($13.4) $97.2 (114%)
Operating income, adjusted $17.2 $113.1 (85%)

Net income (loss) attributable to

Artio Global Investors, GAAP

($46.0)

$49.6

(193%)

Net income attributable to Artio

Global Investors, adjusted

$13.5

$63.4

(79%)

Diluted EPS, GAAP ($0.78) $0.85 (192%)
Diluted EPS, adjusted $0.23 $1.06 (78%)

Adjusted EBITDA 4

$25.1

$121.3

(79%)

 

NM – Not Meaningful

 

 

 

 

Business Update

  • Cash and seed capital 5 increased by $20.2 million to $127.3 million in the third quarter of 2012, equivalent to $2.12 per share outstanding
  • Net client cash outflows of $4.3 billion for the third quarter of 2012

Management Commentary

“Although several significant non-cash items pushed our third quarter GAAP earnings into negative territory, our adjusted earnings and adjusted EBITDA remained positive, aided by reductions we have made to our operating cost structure,” said Richard Pell, Chairman, Chief Executive Officer and Chief Investment Officer. “We also added to our financial position, ending the quarter with cash and seed capital totaling $127.3 million, which is equivalent to $2.12 per share outstanding.”

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