PZENA INV MGMT CL A (PZN, Financial) filed Quarterly Report for the period ended 2012-06-30.
Pzena Investment Management, Inc. has a market cap of $266.3 million; its shares were traded at around $3.97 with a P/E ratio of 11.7 and P/S ratio of 3.2. The dividend yield of Pzena Investment Management, Inc. stocks is 2.9%. Pzena Investment Management, Inc. had an annual average earning growth of 46% over the past 5 years.
Our total revenue decreased $4.1 million, or 18.3%, to $18.3 million for the three months ended June 30, 2012, from $22.4 million for the three months ended June 30, 2011. This change was driven primarily by decreases in weighted average AUM, which decreased $2.6 billion, or 16.0%, to $13.7 billion for the three months ended June 30, 2012, from $16.3 billion for the three months ended June 30, 2011. To the extent that we experience reductions in weighted average AUM, either through negative market performance or net client outflows, our revenue will be adversely affected. The decrease in revenue for the three months ended June 30, 2012 was also attributable to a reduction in performance fees recognized during the three months ended June 30, 2012. We earned no performance fees during the three months ended June 30, 2012. Such performance fees generated $1.0 million in revenue for the three months ended June 30, 2011.
Our total revenue decreased $6.1 million, or 13.8%, to $38.1 million for the six months ended June 30, 2012, from $44.2 million for the six months ended June 30, 2011. This decrease was driven primarily by decreases in weighted average AUM, which decreased $2.3 billion, or 14.2%, to $13.9 billion for the six months ended June 30, 2012, from $16.2 billion for the six months ended June 30, 2011. The decrease was also attributable to a reduction in performance fees recognized during the six months ended June 30, 2012. Such performance fees generated $0.3 million and $1.3 million for the six months ended June 30, 2012 and 2011, respectively. As noted above, to the extent that we experience reductions in weighted average AUM, either through negative market performance or net client outflows, our revenue will be adversely affected.
Net income attributable to non-controlling interests was $6.4 million for the three months ended June 30, 2012, and consisted of $6.5 million associated with our employees and outside investors approximately 83.7% weighted-average interest in the income of the operating company, partially offset by the $0.1 million effect of the absorption, by our consolidated subsidiaries, of their share of the losses of our consolidated investment partnerships. Net income attributable to non-controlling interests was $9.7 million for the three months ended June 30, 2011, and consisted almost entirely of our employees and outside investors approximately 84.6% weighted-average interest in the income of the operating company. The change in net income attributable to non-controlling interests reflects primarily the decrease in our weighted average AUM which had a corresponding negative impact on operating company revenues and income.
Net income attributable to non-controlling interests was $15.1 million for the six months ended June 30, 2012, and consisted of $14.7 million associated with our employees and outside investors approximately 83.6% weighted-average interest in the income of the operating company, and the $0.4 million associated with our consolidated subsidiaries interest in the income of our consolidated investment partnerships. Net income attributable to non-controlling interests was $19.1 million for the six months ended June 30, 2011, and consisted of our employees and outside investors approximately 85.0% weighted-average interest in the income of the operating company, and the $0.1 million associated with our consolidated subsidiaries interest in the income of our consolidated investment partnerships. The decrease in net income attributable to non-controlling interests reflects primarily the decrease in our weighted average AUM which had a corresponding negative impact on operating company revenues and income.
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Pzena Investment Management, Inc. has a market cap of $266.3 million; its shares were traded at around $3.97 with a P/E ratio of 11.7 and P/S ratio of 3.2. The dividend yield of Pzena Investment Management, Inc. stocks is 2.9%. Pzena Investment Management, Inc. had an annual average earning growth of 46% over the past 5 years.
Highlight of Business Operations:
Our results for the three and six months ended June 30, 2012, and 2011 include the recurring adjustments related to the Company s tax receivable agreement and the associated liability to its selling and converting shareholders. We believe that these accounting adjustments add a measure of non-operational complexity which partially obscures the underlying performance of our business. In evaluating our financial condition and results of operations, we also review certain non-GAAP measures of earnings, which exclude these items. Excluding these adjustments, non-GAAP diluted net income and non-GAAP diluted net income per share were $4.5 million and $0.07, respectively, for the three months ended June 30, 2012, and $6.6 million and $0.10, respectively, for the three months ended June 30, 2011. Excluding these adjustments, non-GAAP diluted net income and non-GAAP diluted net income per share were $10.1 million and $0.15, respectively for the six months ended June 30, 2012, and $12.8 million and $0.20, respectively, for the six months ended June 30, 2011. GAAP and non-GAAP net income for diluted earnings per share generally assumes all operating company membership units are converted into Company stock at the beginning of the reporting period, and the resulting change to our net income associated with our increased interest in the operating company is taxed at our historical effective tax rate, exclusive of one-time prior period adjustments and the adjustments related to our tax receivable agreement and the associated liability to selling and converting shareholders. Our effective tax rate, exclusive of these adjustments, was approximately 42.8% for each of the three and six months ended June 30, 2012 and 42.9% for each of the three and six months ended June 30, 2011, as noted in the section “Operating Results - Income Tax Expense” below.Our total revenue decreased $4.1 million, or 18.3%, to $18.3 million for the three months ended June 30, 2012, from $22.4 million for the three months ended June 30, 2011. This change was driven primarily by decreases in weighted average AUM, which decreased $2.6 billion, or 16.0%, to $13.7 billion for the three months ended June 30, 2012, from $16.3 billion for the three months ended June 30, 2011. To the extent that we experience reductions in weighted average AUM, either through negative market performance or net client outflows, our revenue will be adversely affected. The decrease in revenue for the three months ended June 30, 2012 was also attributable to a reduction in performance fees recognized during the three months ended June 30, 2012. We earned no performance fees during the three months ended June 30, 2012. Such performance fees generated $1.0 million in revenue for the three months ended June 30, 2011.
Our total revenue decreased $6.1 million, or 13.8%, to $38.1 million for the six months ended June 30, 2012, from $44.2 million for the six months ended June 30, 2011. This decrease was driven primarily by decreases in weighted average AUM, which decreased $2.3 billion, or 14.2%, to $13.9 billion for the six months ended June 30, 2012, from $16.2 billion for the six months ended June 30, 2011. The decrease was also attributable to a reduction in performance fees recognized during the six months ended June 30, 2012. Such performance fees generated $0.3 million and $1.3 million for the six months ended June 30, 2012 and 2011, respectively. As noted above, to the extent that we experience reductions in weighted average AUM, either through negative market performance or net client outflows, our revenue will be adversely affected.
Net income attributable to non-controlling interests was $6.4 million for the three months ended June 30, 2012, and consisted of $6.5 million associated with our employees and outside investors approximately 83.7% weighted-average interest in the income of the operating company, partially offset by the $0.1 million effect of the absorption, by our consolidated subsidiaries, of their share of the losses of our consolidated investment partnerships. Net income attributable to non-controlling interests was $9.7 million for the three months ended June 30, 2011, and consisted almost entirely of our employees and outside investors approximately 84.6% weighted-average interest in the income of the operating company. The change in net income attributable to non-controlling interests reflects primarily the decrease in our weighted average AUM which had a corresponding negative impact on operating company revenues and income.
Net income attributable to non-controlling interests was $15.1 million for the six months ended June 30, 2012, and consisted of $14.7 million associated with our employees and outside investors approximately 83.6% weighted-average interest in the income of the operating company, and the $0.4 million associated with our consolidated subsidiaries interest in the income of our consolidated investment partnerships. Net income attributable to non-controlling interests was $19.1 million for the six months ended June 30, 2011, and consisted of our employees and outside investors approximately 85.0% weighted-average interest in the income of the operating company, and the $0.1 million associated with our consolidated subsidiaries interest in the income of our consolidated investment partnerships. The decrease in net income attributable to non-controlling interests reflects primarily the decrease in our weighted average AUM which had a corresponding negative impact on operating company revenues and income.
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