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John P. CalamosThank you for joining us on the Calamos Asset Management Third Quarter 2010 earnings call. We appreciate your interest in our companies and for taking the time to be with us today. Participating with me today are Cris Wasaik, our Chief Financial Officer and Jim Boyne, our President of Distribution and Operation. Also, joining us are Jennifer McGoven our Director of Investor Relations and Mark Infanger, our Controller. They will be available to answer any questions during the Q&A. Today I will be providing an update on our business. I'll discuss our recent efforts and some of the progress we made during the recent quarter. Jim will provide an overview of distribution efforts followed by Cris who will then provide greater detail of our financial results. I will then provide a recap of our investment performance before opening up the call for Q&A. On Slide 4, is highlighting our third quarter. In the third quarter Calamos Asset Management continued to maintain its strength. Also, in overall financial health of the company and the steady increase of assets under management throughout the period. On the distribution side we saw ongoing interests in our low volatility equity strategies in both the intermediary and institutional channels. In addition we continued our marketing efforts to run those low volatility strategies and our growth equity strategies as well. Our investment portfolio's performed well relative to their respective benchmarks. We continue to see particular strengths in our global international and emerging market strategies where we see significant opportunities. Our investment team continues to actively manage risks in the portfolios and seek performance results over full market cycles. This was another challenging quarter for the industry with continued stock market volatility and continued flows out of equity funds. In reflection investors skittishness about equities in general.
However, we continue to see good opportunities in the convertible market as well as the international and emerging markets. We also like what we are seeing as far as valuation and growth equities compared to value stocks at this time. On the next slide we're focused on the financial results. Our assets under management of $32.6 billion as of September 30th, 2010 represent an increase quarter over quarter as well as year over year at year-end. We finished the third quarter with total revenues of more than $78 million.We're representing a 6% increase from a year ago. Our operating income of $30.6 million represents a $39% operating margin for the third quarter. Our healthy operating margin is at testament to our continued focus on creating efficiency throughout our business. We finished the quarter by earning $0.23 per share for our shareholders. Jim will now provide an overview of our distribution efforts, Jim? Jim Boyne Thank you, John, I'd like to start by taking a look at net flows. Slide A, presents our net flows in our fund and separate account products on a quarter over quarter basis. In addition to the impact of our decision to raise investment minimums for our convertible managed accounts, which led to $1.3 billion in redemptions and managed accounts during the first two quarters of 2010. Our domestic equity mutual funds continue to face headwinds. Specifically the net outflows of $325 million from our growth fund was the primary cause of net outflows from our open-end funds during the most recent quarter. Read the rest of this transcript for free on seekingalpha.com