National Financial Partners Corp. (NFP, Financial) filed Quarterly Report for the period ended 2012-09-30.
National Financial Partners Corporation has a market cap of $707.2 million; its shares were traded at around $18.04 with a P/E ratio of 7.8 and P/S ratio of 0.7.
Income from operations decreased $27.9 million, or 56.5%, in the nine months ended September 30, 2012, as compared to the nine months ended September 30, 2011. The decrease in income from operations was driven by a $27.8 million increase in impairments of goodwill and intangible assets due to management contract buyouts, firm disposals and the performance of the retail life business line, a $7.9 million change in estimated acquisition earn-out payables related to net adjustments in the estimated fair market values of estimated acquisition earn-out payables, primarily due to revised projections of future performance and actual results for certain acquisitions completed in 2011 and 2012, and a $7.5 million expense for the buyout of three management contracts. Compensation expense employees also increased within the CCG, due to acquisitions that had no comparable operations in 2011. The decreases to income from operations were partially offset by an overall increase in revenue.
Adjusted EBITDA for the nine months ended September 30, 2012 was $97.5 million, compared to $86.3 million for the nine months ended September 30, 2011, an increase of 13.0%. As a percentage of revenue, the Adjusted EBITDA margin for the nine months ended September 30, 2012 was 12.8% compared to 11.9% in the comparable period last year. CCG Adjusted EBITDA increased with revenue growth from existing businesses as well as from newly-acquired businesses that had no comparable operations in 2011. ICG Adjusted EBITDA decreased as declines in commissions and fees expense and non-compensation expense was more than offset by an increase in fees to principals expense, compensation expense employees and a decline in revenue. ASG Adjusted EBITDA remained relatively flat period to period as lower commission payouts were largely offset by lower revenue.
Commissions and fees. Commissions and fees revenue decreased $2.2 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011. Results in the ASG were driven by a continuation of the lower volume of transactional business, driven by financial market volatility as well as a decline in the sale of variable universal life products. Assets under management for the ASG increased 17.2% to $10.5 billion as of September 30, 2012 compared to $9.0 billion as of September 30, 2011. While assets under management increased, managed account revenue remained flat because a portion of the increase related to assets where the primary revenues were reflected in the ICGs wealth management business line and another portion of the increase related to third quarter asset values that will not impact ASG revenues until the fourth quarter of 2012.
Commissions and fees. Commissions and fees revenue decreased $2.0 million for the nine months ended September 30, 2012, as compared to the nine months ended September 30, 2011. Results in the ASG were driven by a continuation of the lower volume of transactional business, driven by financial market volatility as well as a decline in the sale of variable universal life products. Assets under management for the ASG increased 17.2% to $10.5 billion as of September 30, 2012 compared to $9.0 billion as of September 30, 2011. While assets under management increased, managed account revenue remained flat because a portion of the increase related to assets where the primary revenues were reflected in the ICGs wealth management business line and another portion of the increase related to third quarter asset values that will not impact ASG revenues until the fourth quarter of 2012.
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National Financial Partners Corporation has a market cap of $707.2 million; its shares were traded at around $18.04 with a P/E ratio of 7.8 and P/S ratio of 0.7.
Highlight of Business Operations:
During the nine months ended September 30, 2012, revenue increased $37.4 million, or 5.2%, as compared to the nine months ended September 30, 2011. The revenue increase was driven by revenue increases within the CCG of $44.2 million, partially offset by decreases within the ICG and ASG of $4.8 million and $2.0 million, respectively. Results in the CCG included commissions and fees revenue from acquisitions of $30.2 million that had no comparable operations in the same period of 2011. Excluding the impact of dispositions of $4.1 million, overall revenue in the CCG increased by $18.1 million due to growth at existing businesses and higher profit commission bonuses. Excluding the impact of dispositions within the ICG of $5.6 million, revenue increased slightly by $0.8 million for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011. The overall decline in ASG revenue resulted from a continuation of the lower volume of transactional business, driven by financial market volatility as well as a decline in the sale of variable universal life products. While assets under management increased, managed account revenue remained flat because a portion of the increase related to assets where the primary revenues were reflected in the ICGs wealth management business line and another portion of the increase related to third quarter asset values that will not impact ASG revenues until the fourth quarter of 2012.Income from operations decreased $27.9 million, or 56.5%, in the nine months ended September 30, 2012, as compared to the nine months ended September 30, 2011. The decrease in income from operations was driven by a $27.8 million increase in impairments of goodwill and intangible assets due to management contract buyouts, firm disposals and the performance of the retail life business line, a $7.9 million change in estimated acquisition earn-out payables related to net adjustments in the estimated fair market values of estimated acquisition earn-out payables, primarily due to revised projections of future performance and actual results for certain acquisitions completed in 2011 and 2012, and a $7.5 million expense for the buyout of three management contracts. Compensation expense employees also increased within the CCG, due to acquisitions that had no comparable operations in 2011. The decreases to income from operations were partially offset by an overall increase in revenue.
Adjusted EBITDA for the nine months ended September 30, 2012 was $97.5 million, compared to $86.3 million for the nine months ended September 30, 2011, an increase of 13.0%. As a percentage of revenue, the Adjusted EBITDA margin for the nine months ended September 30, 2012 was 12.8% compared to 11.9% in the comparable period last year. CCG Adjusted EBITDA increased with revenue growth from existing businesses as well as from newly-acquired businesses that had no comparable operations in 2011. ICG Adjusted EBITDA decreased as declines in commissions and fees expense and non-compensation expense was more than offset by an increase in fees to principals expense, compensation expense employees and a decline in revenue. ASG Adjusted EBITDA remained relatively flat period to period as lower commission payouts were largely offset by lower revenue.
Commissions and fees. Commissions and fees revenue decreased $2.2 million for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011. Results in the ASG were driven by a continuation of the lower volume of transactional business, driven by financial market volatility as well as a decline in the sale of variable universal life products. Assets under management for the ASG increased 17.2% to $10.5 billion as of September 30, 2012 compared to $9.0 billion as of September 30, 2011. While assets under management increased, managed account revenue remained flat because a portion of the increase related to assets where the primary revenues were reflected in the ICGs wealth management business line and another portion of the increase related to third quarter asset values that will not impact ASG revenues until the fourth quarter of 2012.
Commissions and fees. Commissions and fees revenue decreased $2.0 million for the nine months ended September 30, 2012, as compared to the nine months ended September 30, 2011. Results in the ASG were driven by a continuation of the lower volume of transactional business, driven by financial market volatility as well as a decline in the sale of variable universal life products. Assets under management for the ASG increased 17.2% to $10.5 billion as of September 30, 2012 compared to $9.0 billion as of September 30, 2011. While assets under management increased, managed account revenue remained flat because a portion of the increase related to assets where the primary revenues were reflected in the ICGs wealth management business line and another portion of the increase related to third quarter asset values that will not impact ASG revenues until the fourth quarter of 2012.
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