Duff & Phelps Reports 2012 Fourth Quarter Results, and Declares Quarterly Dividend
2013-02-25 08:17 ET - News Release
FOURTH QUARTER HIGHLIGHTS: -
Quarterly revenue of $145.1 million including reimbursable expenses
(representing a $20.6 million or 16.5% increase over the corresponding
prior year quarter) and $139.9 million excluding reimbursable expenses
(representing a $20.9 million or 17.6% increase over the corresponding
prior year quarter)
-
Adjusted EBITDA(1) of $27.1 million, representing a 19.3%
margin and a $2.9 million or 11.9% increase over the corresponding
prior year quarter
-
Adjusted Pro Forma Net Income(1) of $0.34 per share,
compared to $0.32 per share for the corresponding prior year quarter
-
Declares a quarterly dividend of $0.09 per share of Class A common
stock
FULL YEAR HIGHLIGHTS: -
Full year revenue of $484.7 million including reimbursable expenses
(representing a $87.8 million or 22.1% increase over the prior year)
and $469.2 million excluding reimbursable expenses (representing a
$85.2 million or 22.2% increase over the prior year)
-
Adjusted EBITDA(1) of $83.7 million, representing a 17.9%
margin and a $19.0 million or 29.4% increase over the prior year
-
Adjusted Pro Forma Net Income(1) of $1.01 per share,
compared to $0.82 per share for the prior year
Company Website:
http://www.duffandphelps.com
NEW YORK -- (Business Wire)
Duff & Phelps Corporation (NYSE: DUF), a leading independent financial
advisory and investment banking firm, today announced its fourth quarter
2012 financial results and declared a quarterly dividend.
Results
For the quarter ended December 31, 2012, revenue excluding reimbursable
expenses increased $20.9 million or 17.6% to $139.9 million, compared to
$119.0 million for the corresponding prior year quarter. Adjusted EBITDA(1)
for the quarter was $27.1 million, representing 19.3% of revenue
excluding reimbursable expenses, compared to $24.2 million for the
corresponding prior year quarter, representing 20.3% of revenue
excluding reimbursable expenses. Net income attributable to Duff &
Phelps Corporation was $6.1 million, or $0.16 per share of Class A
common stock on a fully diluted basis, compared to $7.0 million, or
$0.23 per share for the corresponding prior year quarter. Adjusted Pro
Forma Net Income(1) was $13.4 million, or $0.34 per share on
a fully exchanged, fully diluted basis, compared to $12.4 million, or
$0.32 per share, for the corresponding prior year quarter.
For the year ended December 31, 2012, revenue excluding reimbursable
expenses increased $85.2 million or 22.2% to $469.2 million, compared to
$383.9 million for the prior year. Adjusted EBITDA(1) for the
year was $83.7 million, representing 17.9% of revenue excluding
reimbursable expenses, compared to $64.7 million for the prior year,
representing 16.9% of revenue excluding reimbursable expenses. Net
income attributable to Duff & Phelps Corporation was $22.3 million, or
$0.62 per share of Class A common stock on a fully diluted basis,
compared to $18.6 million, or $0.63 per share for the prior year.
Adjusted Pro Forma Net Income(1) was $39.3 million, or $1.01
per share on a fully exchanged, fully diluted basis, compared to $31.7
million, or $0.82 per share, for the prior year.
"The strong fourth quarter results reflect continued momentum in several
of our businesses including dispute consulting, complex asset valuations
and middle market investment banking, as well as the positive impact
specifically related to the anticipated tax changes resulting from the
fiscal cliff discussions—such as transaction opinions provided for
dividend recapitalizations," commented Noah Gottdiener, chief executive
officer. "Overall, I am pleased with our 2012 results."
_______________
(1) Adjusted EBITDA, Adjusted Pro Forma Net Income and
Adjusted Pro Forma Net Income per share are non-GAAP financial measures.
See definitions and disclosures herein.
Declaration of Quarterly Dividend
The Company also announced today that its board of directors has
declared a quarterly dividend of $0.09 per share on its outstanding
Class A common stock. The dividend is payable on March 19, 2013 to
shareholders of record on March 8, 2013.
About Duff & Phelps
As a leading global financial advisory and investment banking firm, Duff
& Phelps balances analytical skills, deep market insight and
independence to help clients make sound decisions. The firm provides
expertise in the areas of valuation, transactions, financial
restructuring, alternative assets, disputes and taxation, with more than
1,000 employees serving clients from offices in North America, Europe
and Asia. Investment banking services in the United States are provided
by Duff & Phelps Securities, LLC; Pagemill Partners; and GCP Securities,
LLC. Member FINRA/SIPC. M&A advisory services in the United Kingdom and
Germany are provided by Duff & Phelps Securities Ltd. Duff & Phelps
Securities Ltd. is authorized and regulated by the Financial Services
Authority. For more information, visit www.duffandphelps.com.
(NYSE: DUF)
Earnings Call Webcast
As a result of the pending merger, the Company will not be holding an
earnings conference call. Please refer to the Company's Annual Report on
Form 10-K that will be filed subsequent to this press release for
additional discussion of the Company's results.
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted Pro Forma Net Income, and Adjusted Pro Forma
Net Income per share are non-GAAP financial measures. We believe these
measures provide a relevant and useful alternative measure of our
ongoing profitability and performance. We believe the Adjusted EBITDA,
Adjusted Pro Forma Net Income, and Adjusted Pro Forma Net Income per
share, in addition to GAAP financial measures, provide a relevant and
useful benchmark for investors, in order to assess our financial
performance, ongoing operating results and comparability to other
companies in our industry. These measures are utilized by our senior
management to evaluate our overall performance.
We define Adjusted EBITDA as operating income before depreciation and
amortization, equity-based compensation originating prior to our IPO and
associated with grants of ownership units of D&P Acquisitions and stock
options granted in conjunction with our IPO and other items which are
generally not part of our ongoing operations, including but not limited
to restructuring charges and acquisition related expenses. We define
Adjusted Pro Forma Net Income as net income before equity compensation
associated with grants of ownership units of D&P Acquisitions and stock
options granted in conjunction with our IPO, and certain items which are
generally not part of our ongoing operations, including but not limited
to restructuring charges and acquisition related expenses, less pro
forma corporate income tax applied at an assumed effective corporate tax
rate. Adjusted Pro Forma Net Income per share consists of Adjusted Pro
Forma Net Income divided by the fully dilutive weighted average number
of the Company's Class A and Class B shares for the applicable period.
These measures are reconciled in the tables below.
Adjusted EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro Forma
Net Income per share are non-GAAP financial measures which are not
prepared in accordance with, and should not be considered a substitute
for or superior to measurements required by GAAP. The presentation of
this additional information is not meant to be considered in isolation
or as a substitute for the most directly comparable GAAP measures. In
addition, these non-GAAP measures are not defined in the same manner by
all companies and may not be comparable to other similarly titled
measures of other companies.
|
| | Reconciliation of Adjusted EBITDA | |
|
|
| |
| | | | | | Quarter Ended | | Year Ended | | | | |
December 31,
2012
|
|
December 31,
2011
| |
December 31,
2012
|
|
December 31,
2011
| |
Net income attributable to Duff & Phelps Corporation
| | | |
$
|
6,065
| | |
$
|
7,045
| | |
$
|
22,264
| | |
$
|
18,614
| |
Net income attributable to noncontrolling interest
| | | |
590
| | |
4,110
| | |
4,037
| | |
11,115
| |
Provision for income taxes
| | | |
7,630
| | |
5,566
| | |
20,022
| | |
13,841
| |
Other expense/(income), net
| | | |
(292
|
)
| |
1,591
|
| |
1,069
|
| |
1,703
| |
Operating income
| | | |
13,993
| | |
18,312
| | |
47,392
| | |
45,273
| |
Depreciation and amortization
| | | |
5,128
| | |
3,230
| | |
18,138
| | |
11,164
| |
Equity-based compensation associated with Legacy Units and IPO
Options(1) | | | |
—
| | |
(34
|
)
| |
22
| | |
207
| |
Acquisition retention expenses(2) | | | |
3,029
| | |
1,024
| | |
9,536
| | |
1,624
| |
Restructuring charges(3) | | | |
(28
|
)
| |
95
| | |
1,796
| | |
4,090
| |
Acquisition, integration and corporate development costs(4) | | | |
4,951
|
| |
1,571
|
| |
6,865
|
| |
2,372
| |
Adjusted EBITDA
| | | |
$
|
27,073
|
| |
$
|
24,198
|
| |
$
|
83,749
|
| |
$
|
64,730
| | | | | | | | | | | | | | | | | |
|
|
| | Reconciliation of Adjusted Pro Forma Net Income | |
|
|
| |
| |
| | | | | | Quarter Ended | | Year Ended | | | | |
December 31,
2012
|
|
December 31,
2011
| |
December 31,
2012
| |
December 31,
2011
| |
Net income attributable to Duff & Phelps Corporation
| | | |
$
|
6,065
| | |
$
|
7,045
| | |
$
|
22,264
| | |
$
|
18,614
| | |
Net income attributable to noncontrolling interest
| | | |
590
| | |
4,110
| | |
4,037
| | |
11,115
| | |
Equity-based compensation associated with Legacy Units and IPO
Options(1) | | | |
—
| | |
(34
|
)
| |
22
| | |
207
| | |
Acquisition retention expenses(2) | | | |
3,029
| | |
1,024
| | |
9,536
| | |
1,624
| | |
Restructuring charges(3) | | | |
(28
|
)
| |
95
| | |
1,796
| | |
4,090
| | |
Acquisition, integration and corporate development costs(4) | | | |
4,951
| | |
1,571
| | |
6,865
| | |
2,372
| | |
Loss from the write off of an investment(5) | | | |
—
| | |
1,500
| | |
376
| | |
1,500
| | |
Adjustment to provision for income taxes(6) | | | |
(1,197
|
)
| |
(2,910
|
)
| |
(5,621
|
)
| |
(7,824
|
)
| |
Adjusted Pro Forma Net Income, as defined
| | | |
$
|
13,410
|
| |
$
|
12,401
|
| |
$
|
39,275
|
| |
$
|
31,698
|
| | | | | | | | | | |
| |
Fully diluted weighted average shares of Class A common stock
| | | |
37,245
| | |
27,674
| | |
34,585
| | |
27,832
| | |
Weighted average New Class A Units outstanding
| | | |
2,002
|
| |
10,650
|
| |
4,466
|
| |
10,883
|
| |
Pro forma fully exchanged, fully diluted shares outstanding
| | | |
39,247
|
| |
38,324
|
| |
39,051
|
| |
38,715
|
| | | | | | | | | | |
| |
Adjusted Pro Forma Net Income per fully exchanged, fully diluted
share outstanding
| | | |
$
|
0.34
|
| |
$
|
0.32
|
| |
$
|
1.01
|
| |
$
|
0.82
|
| |
|
|
| |
_______________
| |
(1)
|
|
Represents elimination of equity-compensation expense from Legacy
Units associated with ownership units of D&P Acquisitions ("Legacy
Units") and stock options granted in conjunction with our IPO
("IPO Options"). See further detail in the Notes to the
Consolidated Financial Statements.
| |
(2)
| |
Acquisition retention expenses include expense associated with
equity or cash-based retention incentives to certain individuals
who became employees of the Company through an acquisition.
Equity-based incentives are typically subject to certain annual or
cliff vesting provisions over three years contingent upon certain
conditions which include employment. Cash-based incentives are
generally subject to certain annual or cliff vesting provisions up
to four years contingent upon certain conditions which may include
employment. Cash-based retentive incentives may also include
incentives paid to acquired employees upon the closing of an
acquisition. These incentives may be in addition to future grants
or cash bonuses awarded as a component of ongoing incentive
compensation.
| |
|
|
(3)
|
|
In June 2011, the Company identified opportunities for cost savings
through office consolidations of underutilized space and workforce
reductions of non-client service professionals. The Company incurred
restructuring charges of $4,090 during the year ended December 31,
2011 related to these initiatives. In March 2012, the Company
identified opportunities for cost savings through the elimination of
our M&A Advisory practice in France and certain Investment Banking
positions in France. The Company incurred restructuring charges of
$1,796 during the year ended December 31, 2012 related to these
initiatives and for changes in estimates of original assumptions.
| |
(4)
| |
Acquisition, integration and corporate development costs include
fees and charges associated with acquisitions and ongoing corporate
development initiatives, including costs resulting from the pending
merger. These costs are primarily comprised of (i) professional fees
from legal, accounting, investment banking and other services, (ii)
integration costs principally related to marketing, information
technology, finance and real estate that are incremental and
one-time in nature, (iii) gains or losses resulting from the
recalculation of contingent consideration, (iv) foreign currency
gains or losses from the translation of acquisition-related
intercompany loans and (v) other charges such as regulatory filing
fees and travel and entertainment expenses that are incremental in
nature.
| |
(5)
| |
Reflects a charge from the write off of a minority investment. The
charge is reflected in "Other expense" on the Company's Consolidated
Statements of Operations.
| |
(6)
| |
Represents an adjustment to reflect an assumed annual effective
corporate tax rate of approximately 39.5% and 40.6% as applied to
the years ended December 31, 2012 and 2011, respectively, which
includes a provision for U.S. federal income taxes and assumes the
highest statutory rates apportioned to each state, local and/or
foreign jurisdiction. Assumes (i) full exchange of existing
unitholders' partnership units and Class B common stock of the
Company into Class A common stock of the Company, (ii) the Company
has adopted a conventional corporate tax structure and is taxed as a
C Corporation in the U.S. at prevailing corporate rates and (iii)
all deferred tax assets related to foreign operations are fully
realizable.
| | |
|
Disclosure Regarding Forward-Looking Statements
Statements in this press release contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”),
which reflect the Company's current views with respect to, among other
things, future events and financial performance. The Company generally
identifies forward looking statements by terminology such as “outlook,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,”
“should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates” or the negative version of those words or
other comparable words. Any forward-looking statements contained in this
discussion are based upon our historical performance and on our current
plans, estimates and expectations. The inclusion of this forward-looking
information should not be regarded as a representation by us, or any
other person that the future plans, estimates or expectations
contemplated by us will be achieved. Such forward-looking statements are
subject to various risks and uncertainties and assumptions relating to
our operations, financial results, financial condition, business
prospects, growth strategy and liquidity. If one or more of these or
other risks or uncertainties materialize, or if our underlying
assumptions prove to be incorrect, our actual results may vary
materially from those indicated in these statements. These factors
should not be construed as exhaustive and should be read in conjunction
with the other cautionary statements and the risk factors section that
are included in our Annual Report on Form 10-K for the year ended
December 31, 2012 and any subsequent filings of our Quarterly Reports on
Form 10-Q. The forward-looking statements included in this press release
are made only as of the date this press release was issued. The Company
does not undertake any obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
|
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| |
| |
|
|
| Quarter Ended |
| Year Ended | | | | |
December 31,
2012
|
|
December 31,
2011
| |
December 31,
2012
|
|
December 31,
2011
| |
Revenue
| | | |
$
|
139,917
| | |
$
|
118,980
| | |
$
|
469,164
| | |
$
|
383,940
| | |
Reimbursable expenses
| | | |
5,218
|
| |
5,573
|
| |
15,537
|
| |
12,934
|
| |
Total revenue
| | | |
145,135
| | |
124,553
| | |
484,701
| | |
396,874
| | | | | | | | | | | |
| |
Direct client service costs
| | | | | | | | | | |
Compensation and benefits (includes $4,259 and $3,705 of equity-
based
compensation for the quarters ended December 31, 2012 and
2011,
respectively, and $19,098 and $17,086 for the years ended
December
31, 2012 and 2011, respectively)
| | | |
77,070
| | |
62,934
| | |
256,089
| | |
209,606
| | |
Other direct client service costs
| | | |
4,476
| | |
4,089
| | |
13,119
| | |
9,048
| |
Acquisition retention expenses (includes $734 and $454 of equity-
based
compensation for the quarters ended December 31, 2012 and
2011,
respectively, and $2,908 and $1,054 for the years ended
December
31, 2012 and 2011, respectively)
| | | |
3,029
| | |
1,024
| | |
9,536
| | |
1,624
| | |
Reimbursable expenses
| | | |
5,361
|
| |
5,589
|
| |
15,734
|
| |
13,073
|
| | | | |
89,936
|
| |
73,636
|
| |
294,478
|
| |
233,351
|
| |
Operating expenses
| | | | | | | | | | |
Selling, general and administrative (includes $824 and $633 of
equity-based
compensation for the quarters ended December 31,
2012 and
2011, respectively, and $3,531 and $3,744 for the years
ended
December 31, 2012 and 2011, respectively)
| | | |
31,155
| | |
27,709
| | |
116,032
| | |
100,624
| | |
Depreciation and amortization
| | | |
5,128
| | |
3,230
| | |
18,138
| | |
11,164
| | |
Restructuring charges
| | | |
(28
|
)
| |
95
| | |
1,796
| | |
4,090
| | |
Acquisition, integration and corporate development costs
| | | |
4,951
|
| |
1,571
|
| |
6,865
|
| |
2,372
|
| | | | |
41,206
|
| |
32,605
|
| |
142,831
|
| |
118,250
|
| | | | | | | | | | |
| |
Operating income
| | | |
13,993
| | |
18,312
| | |
47,392
| | |
45,273
| | | | | | | | | | | |
| |
Other expense/(income), net
| | | | | | | | | | | |
Interest income
| | | |
(22
|
)
| |
(8
|
)
| |
(59
|
)
| |
(77
|
)
| |
Interest expense
| | | |
256
| | |
97
| | |
748
| | |
275
| | |
Other expense/(income)
| | | |
(526
|
)
| |
1,502
|
| |
380
|
| |
1,505
|
| | | | |
(292
|
)
| |
1,591
|
| |
1,069
|
| |
1,703
|
| | | | | | | | | | |
| |
Income before income taxes
| | | |
14,285
| | |
16,721
| | |
46,323
| | |
43,570
| | |
Provision for income taxes
| | | |
7,630
|
| |
5,566
|
| |
20,022
|
| |
13,841
|
| |
Net income
| | | |
6,655
| | |
11,155
| | |
26,301
| | |
29,729
| | |
Less: Net income attributable to noncontrolling interest
| | | |
590
|
| |
4,110
|
| |
4,037
|
| |
11,115
|
| |
Net income attributable to Duff & Phelps Corporation
| | | |
$
|
6,065
|
| |
$
|
7,045
|
| |
$
|
22,264
|
| |
$
|
18,614
|
| | | | | | | | | | |
| |
Weighted average shares of Class A common stock outstanding
| | | | | | | | | | | |
Basic
| | | |
35,704
| | |
26,685
| | |
33,267
| | |
26,958
| | |
Diluted
| | | |
37,245
| | |
27,674
| | |
34,585
| | |
27,832
| | | | | | | | | | | |
|
Net income per share attributable to stockholders of Class A common
stock
of Duff & Phelps Corporation
| | | | | | | | | | | |
Basic
| | | |
$
|
0.16
| | |
$
|
0.24
| | |
$
|
0.64
| | |
$
|
0.65
| | |
Diluted
| | | |
$
|
0.16
| | |
$
|
0.23
| | |
$
|
0.62
| | |
$
|
0.63
| | | | | | | | | | | |
| |
Cash dividends declared per common share
| | | |
$
|
0.09
| | |
$
|
0.08
| | |
$
|
0.36
| | |
$
|
0.32
| | |
|
|
|
|
|
|
|
| | |
|
|
|
|
|
| | | DUFF & PHELPS CORPORATION AND SUBSIDIARIES QUARTERLY REVENUE BY SEGMENT
(In thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
|
| 2011 |
|
| 2012 | | | Variance
Q4 2011 vs Q4 2012 | | | Variance
2011 vs 2012 | | | |
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
| | |
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
| | |
Dollar
|
|
Percent
| | |
Dollar
|
|
Percent
| | Financial Advisory | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Valuation Advisory(a) | | |
$
|
37,614
| | |
$
|
32,604
| | |
$
|
33,887
| | |
$
|
39,046
| | |
$
|
143,151
| | | |
$
|
39,490
| | |
$
|
33,610
| | |
$
|
33,895
| | |
$
|
43,334
| | |
$
|
150,329
| | | |
$
|
4,288
| | |
11.0
|
%
| | |
$
|
7,178
| | |
5.0
|
%
| |
Tax Services(b) | | |
7,547
| | |
15,128
| | |
9,572
| | |
8,698
| | |
40,945
| | | |
5,488
| | |
13,035
| | |
11,008
| | |
10,295
| | |
39,826
| | | |
1,597
| | |
18.4
|
%
| | |
(1,119
|
)
| |
(2.7
|
)%
| |
Dispute & Legal Management Consulting(c) | | |
13,436
|
| |
13,005
|
| |
18,319
|
| |
22,032
|
| |
66,792
|
| | |
14,675
|
| |
19,979
|
| |
22,708
|
| |
24,430
|
| |
81,792
|
| | |
2,398
|
| |
10.9
|
%
| | |
15,000
|
| |
22.5
|
%
| | | |
58,597
|
| |
60,737
|
| |
61,778
|
| |
69,776
|
| |
250,888
|
| | |
59,653
|
| |
66,624
|
| |
67,611
|
| |
78,059
|
| |
271,947
|
| | |
8,283
|
| |
11.9
|
%
| | |
21,059
|
| |
8.4
|
%
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Alternative Asset Advisory | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio Valuation
| | |
6,519
| | |
6,220
| | |
6,730
| | |
6,272
| | |
25,741
| | | |
7,622
| | |
6,059
| | |
6,417
| | |
5,725
| | |
25,823
| | | |
(547
|
)
| |
(8.7
|
)%
| | |
82
| | |
0.3
|
%
| |
Complex Asset Solutions
| | |
5,321
| | |
4,125
| | |
3,998
| | |
4,631
| | |
18,075
| | | |
4,904
| | |
4,048
| | |
6,270
| | |
5,828
| | |
21,050
| | | |
1,197
| | |
25.8
|
%
| | |
2,975
| | |
16.5
|
%
| |
Due Diligence
| | |
1,645
|
| |
4,070
|
| |
2,643
|
| |
3,492
|
| |
11,850
|
| | |
2,423
|
| |
2,312
|
| |
2,516
|
| |
2,926
|
| |
10,177
|
| | |
(566
|
)
| |
(16.2
|
)%
| | |
(1,673
|
)
| |
(14.1
|
)%
| | | |
13,485
|
| |
14,415
|
| |
13,371
|
| |
14,395
|
| |
55,666
|
| | |
14,949
|
| |
12,419
|
| |
15,203
|
| |
14,479
|
| |
57,050
|
| | |
84
|
| |
0.6
|
%
| | |
1,384
|
| |
2.5
|
%
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Investment Banking | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
M&A Advisory(d) | | |
1,450
| | |
1,853
| | |
5,741
| | |
16,568
| | |
25,612
| | | |
9,354
| | |
14,953
| | |
8,145
| | |
18,537
| | |
50,989
| | | |
1,969
| | |
11.9
|
%
| | |
25,377
| | |
99.1
|
%
| |
Transaction Opinions
| | |
8,231
| | |
7,266
| | |
7,466
| | |
5,811
| | |
28,774
| | | |
6,742
| | |
8,171
| | |
5,957
| | |
13,830
| | |
34,700
| | | |
8,019
| | |
138.0
|
%
| | |
5,926
| | |
20.6
|
%
| |
Global Restructuring Advisory(e) | | |
3,283
|
| |
3,615
|
| |
3,672
|
| |
12,430
|
| |
23,000
|
| | |
15,647
|
| |
12,322
|
| |
11,497
|
| |
15,012
|
| |
54,478
|
| | |
2,582
|
| |
20.8
|
%
| | |
31,478
|
| |
136.9
|
%
| | | |
12,964
|
| |
12,734
|
| |
16,879
|
| |
34,809
|
| |
77,386
|
| | |
31,743
|
| |
35,446
|
| |
25,599
|
| |
47,379
|
| |
140,167
|
| | |
12,570
|
| |
36.1
|
%
| | |
62,781
|
| |
81.1
|
%
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Revenue (excluding reimbursables) | | |
$
|
85,046
|
| |
$
|
87,886
|
| |
$
|
92,028
|
| |
$
|
118,980
|
| |
$
|
383,940
|
| | |
$
|
106,345
|
| |
$
|
114,489
|
| |
$
|
108,413
|
| |
$
|
139,917
|
| |
$
|
469,164
|
| | |
$
|
20,937
|
| |
17.6
|
%
| | |
$
|
85,224
|
| |
22.2
|
%
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
| |
_______________
|
| |
| | |
(a)
|
|
For the year ended December 31, 2012, Valuation Advisory includes
$2,362 of incremental revenue from our acquisition of Ceteris from
the effective date of the acquisition (October 18, 2012) through the
end of the year. Ceteris is an independent provider of transfer
pricing and valuation advisory services.
| |
(d)
| |
For the year ended December 31, 2012, M&A Advisory includes $2,846
of incremental revenue from our acquisition of Growth Capital
Partners from the beginning of the year through June 30, 2012, the
one year anniversary of the acquisition. For the year ended December
31, 2011, M&A Advisory includes $7,507 of incremental revenue from
the effective date of the acquisition (June 30, 2011) through the
end of the year. Growth Capital Partners is a Houston-based
investment banking firm focused on transactions in the middle market.
| |
(b)
| |
For the year ended December 31, 2012, Tax Services includes $279 of
incremental revenue from our acquisition of Growth Capital Partners
from the beginning of the year through June 30, 2012, the one year
anniversary of the acquisition. For the year ended December 31,
2011, Tax Services includes $543 of incremental revenue from the
effective date of the acquisition (June 30, 2011) through the end of
the year. Growth Capital Partners is a Houston-based investment
banking firm focused on transactions in the middle market.
| | | |
For the year ended December 31, 2012, M&A Advisory also includes
$17,023 of incremental revenue from our acquisition of Pagemill
Partners from the beginning of the year through December 31, 2012,
the one year anniversary of the acquisition. Pagemill Partners is a
Silicon Valley-based investment banking firm.
| | | | | | |
| |
(c)
| |
For the year ended December 31, 2012, Dispute & Legal Management
Consulting includes $891 of incremental revenue from our acquisition
of iEnvision Technology from the effective date of the acquisition
(October 4, 2012) through the end of the year. iEnvision Technology
is an advisory firm that assists law firms and corporate legal
departments with implementation of document and data management
systems.
| |
(e)
| |
For the year ended December 31, 2012, Global Restructuring Advisory
includes $28,520 of incremental revenue from our acquisition of MCR
from the beginning of the year through October 31, 2012, the one
year anniversary of the acquisition. For the year ended December 31,
2011, Global Restructuring Advisory includes $4,726 of incremental
revenue from the effective date of the acquisition (October 31,
2011) through the end of the year. MCR is a United Kingdom-based
partnership specializing in insolvency, turnaround and restructuring
services.
| | | | | | |
| | | | | | |
For the year ended December 31, 2012, Global Restructuring Advisory
includes $7,405 of incremental revenue from our acquisition of the
Toronto-based financial restructuring practice of RSM Ricther from
the beginning of the year through December 9, 2012, the one year
anniversary of the acquisition. For the year ended December 31,
2011, Global Restructuring Advisory includes $321 of incremental
revenue from the effective date of the acquisition (December 9,
2011) through the end of the year.
| |
|
|
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES
RESULTS
OF OPERATIONS BY SEGMENT
(In thousands, except headcount
data)
(Unaudited)
| |
| |
|
|
| Quarter Ended |
| Year Ended | | | | |
December 31,
2012
|
|
December 31,
2011
| |
December 31,
2012
|
|
December 31,
2011
| | Financial Advisory | | | | | | | | | | | |
Revenue (excluding reimbursables)
| | | |
$
|
78,059
| | |
$
|
69,776
| | |
$
|
271,947
| | |
$
|
250,888
| | |
Segment operating income
| | | |
$
|
13,118
| | |
$
|
14,848
| | |
$
|
50,778
| | |
$
|
45,212
| | |
Segment operating income margin
| | | |
16.8
|
%
| |
21.3
|
%
| |
18.7
|
%
| |
18.0
|
%
| | | | | | | | | | |
| | Alternative Asset Advisory | | | | | | | | | | | |
Revenue (excluding reimbursables)
| | | |
$
|
14,479
| | |
$
|
14,395
| | |
$
|
57,050
| | |
$
|
55,666
| | |
Segment operating income
| | | |
$
|
2,108
| | |
$
|
3,545
| | |
$
|
12,759
| | |
$
|
12,890
| | |
Segment operating income margin
| | | |
14.6
|
%
| |
24.6
|
%
| |
22.4
|
%
| |
23.2
|
%
| | | | | | | | | | |
| | Investment Banking | | | | | | | | | | | |
Revenue (excluding reimbursables)
| | | |
$
|
47,379
| | |
$
|
34,809
| | |
$
|
140,167
| | |
$
|
77,386
| | |
Segment operating income
| | | |
$
|
11,990
| | |
$
|
5,821
| | |
$
|
20,409
| | |
$
|
6,767
| | |
Segment operating income margin
| | | |
25.3
|
%
| |
16.7
|
%
| |
14.6
|
%
| |
8.7
|
%
| | | | | | | | | | |
| | Totals | | | | | | | | | | | |
Revenue (excluding reimbursables)
| | | |
$
|
139,917
| | |
$
|
118,980
| | |
$
|
469,164
| | |
$
|
383,940
| | | | | | | | | | | |
| |
Segment operating income
| | | |
$
|
27,216
| | |
$
|
24,214
| | |
$
|
83,946
| | |
$
|
64,869
| | |
Net client reimbursable expenses
| | | |
(143
|
)
| |
(16
|
)
| |
(197
|
)
| |
(139
|
)
| |
Equity-based compensation from Legacy Units and IPO Options
| | | |
—
| | |
34
| | |
(22
|
)
| |
(207
|
)
| |
Depreciation and amortization
| | | |
(5,128
|
)
| |
(3,230
|
)
| |
(18,138
|
)
| |
(11,164
|
)
| |
Acquisition retention expenses
| | | |
(3,029
|
)
| |
(1,024
|
)
| |
(9,536
|
)
| |
(1,624
|
)
| |
Restructuring charges
| | | |
28
| | |
(95
|
)
| |
(1,796
|
)
| |
(4,090
|
)
| |
Acquisition, integration and corporate development costs
| | | |
(4,951
|
)
| |
(1,571
|
)
| |
(6,865
|
)
| |
(2,372
|
)
| |
Operating income
| | | |
$
|
13,993
|
| |
$
|
18,312
|
| |
$
|
47,392
|
| |
$
|
45,273
|
| |
| | | | | | | | | | |
| | Average Client Service Professionals | | | | | | | | | | | |
Financial Advisory
| | | |
691
| | |
584
| | |
640
| | |
575
| | |
Alternative Asset Advisory
| | | |
106
| | |
99
| | |
103
| | |
94
| | |
Investment Banking
| | | |
315
|
| |
213
|
| |
306
|
| |
158
|
| |
Total
| | | |
1,112
|
| |
896
|
| |
1,049
|
| |
827
|
| | | | | | | | | | |
| | End of Period Client Service Professionals | | | | | | | | | | | |
Financial Advisory
| | | |
704
| | |
590
| | |
704
| | |
590
| | |
Alternative Asset Advisory
| | | |
105
| | |
100
| | |
105
| | |
100
| | |
Investment Banking
| | | |
311
|
| |
303
|
| |
311
|
| |
303
|
| |
Total
| | | |
1,120
|
| |
993
|
| |
1,120
|
| |
993
|
| | | | | | | | | | | | | | |
|
|
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT - CONTINUED
(In thousands, except headcount data)
(Unaudited)
| |
|
|
| | | | | | Quarter Ended |
| Year Ended | | | | |
December 31,
2012
|
|
December 31,
2011
| |
December 31,
2012
|
|
December 31,
2011
| | Revenue per Client Service Professional | | | | | | | | | | | |
Financial Advisory
| | | |
$
|
113
| | |
$
|
119
| | |
$
|
425
| | |
$
|
436
| | |
Alternative Asset Advisory
| | | |
$
|
137
| | |
$
|
145
| | |
$
|
554
| | |
$
|
592
| | |
Investment Banking
| | | |
$
|
150
| | |
$
|
163
| | |
$
|
458
| | |
$
|
490
| | |
Total
| | | |
$
|
126
| | |
$
|
133
| | |
$
|
447
| | |
$
|
464
| | | | | |
| | | | | | | | | | |
| | Utilization(a) | | | | | | | | | | | |
Financial Advisory
| | | |
75.4
|
%
| |
81.7
|
%
| |
73.1
|
%
| |
73.8
|
%
| |
Alternative Asset Advisory
| | | |
62.5
|
%
| |
63.0
|
%
| |
60.2
|
%
| |
61.2
|
%
| | | | | | | | | | |
| | Rate-Per-Hour(b) | | | | | | | | | | | |
Financial Advisory
| | | |
$
|
372
| | |
$
|
356
| | |
$
|
344
| | |
$
|
343
| | |
Alternative Asset Advisory
| | | |
$
|
487
| | |
$
|
516
| | |
$
|
501
| | |
$
|
515
| | | | | |
| | | | | | | | | | |
| | Revenue (excluding reimbursables) | | | | | | | | | | | |
Financial Advisory
| | | |
$
|
78,059
| | |
$
|
69,776
| | |
$
|
271,947
| | |
$
|
250,888
| | |
Alternative Asset Advisory
| | | |
14,479
| | |
14,395
| | |
57,050
| | |
55,666
| | |
Investment Banking
| | | |
47,379
|
| |
34,809
|
| |
140,167
|
| |
77,386
|
| |
Total
| | | |
$
|
139,917
|
| |
$
|
118,980
|
| |
$
|
469,164
|
| |
$
|
383,940
|
| | | | | | | | | | |
| | Average Managing Directors | | | | | | | | | | | |
Financial Advisory
| | | |
106
| | |
90
| | |
97
| | |
92
| | |
Alternative Asset Advisory
| | | |
23
| | |
24
| | |
23
| | |
25
| | |
Investment Banking
| | | |
73
|
| |
58
|
| |
74
|
| |
47
|
| |
Total
| | | |
202
|
| |
172
|
| |
194
|
| |
164
|
| | | | | | | | | | |
| | End of Period Managing Directors | | | | | | | | | | | |
Financial Advisory
| | | |
110
| | |
92
| | |
110
| | |
92
| | |
Alternative Asset Advisory
| | | |
23
| | |
24
| | |
23
| | |
24
| | |
Investment Banking
| | | |
71
|
| |
76
|
| |
71
|
| |
76
|
| |
Total
| | | |
204
|
| |
192
|
| |
204
|
| |
192
|
| | | | | | | | | | |
| | Revenue per Managing Director | | | | | | | | | | | |
Financial Advisory
| | | |
$
|
736
| | |
$
|
775
| | |
$
|
2,804
| | |
$
|
2,727
| | |
Alternative Asset Advisory
| | | |
$
|
630
| | |
$
|
600
| | |
$
|
2,480
| | |
$
|
2,227
| | |
Investment Banking
| | | |
$
|
649
|
| |
$
|
600
|
| |
$
|
1,894
|
| |
$
|
1,647
|
| |
Total
| | | |
$
|
693
|
| |
$
|
692
|
| |
$
|
2,418
|
| |
$
|
2,341
|
| |
|
DUFF & PHELPS CORPORATION AND SUBSIDIARIES RESULTS OF OPERATIONS BY SEGMENT
(In thousands, except headcount data)
(Unaudited)
| |
_______________
| |
(a)
|
|
The utilization rate for any given period is calculated by dividing
the number of hours incurred by client service professionals who
worked on client assignments (including internal projects for the
Company) during the period by the total available working hours for
all of such client service professionals during the same period,
assuming a 40 hour work week, less paid holidays and vacation days.
Utilization excludes client service professionals associated with
certain property tax services due to the nature of the work
performed and client service professionals from certain acquisitions
prior to their transition to the Company's financial system.
| |
(b)
| |
Average billing rate-per-hour is calculated by dividing revenue for
the period by the number of hours worked on client assignments
(including internal projects for the Company) during the same
period. Financial Advisory revenue used to calculate rate-per-hour
exclude revenue associated with certain property tax engagements.
The average billing rate excludes certain hours from our
acquisitions prior to their transition to the Company's financial
system.
| |
|
|
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES SUMMARY OF CLIENT SERVICE PROFESSIONALS
(Unaudited)
| |
| |
|
|
| | | | | | | 2011 |
|
| 2012 | | | | | | Q1 |
| Q2 |
| Q3 |
| Q4 |
| YTD | | | Q1 |
| Q2 |
| Q3 |
| Q4 |
| YTD | | Average Client Service Professionals
| | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Advisory
| | | |
574
| | |
562
| | |
576
| | |
584
| | |
575
| | | |
600
| | |
612
| | |
646
| | |
691
| | |
640
| |
Alternative Asset Advisory
| | | |
87
| | |
94
| | |
98
| | |
99
| | |
94
| | | |
99
| | |
101
| | |
106
| | |
106
| | |
103
| |
Investment Banking
| | | |
129
|
| |
128
|
| |
147
|
| |
213
|
| |
158
|
| | |
302
|
| |
291
|
| |
310
|
| |
315
|
| |
306
| | | | | |
790
|
| |
784
|
| |
821
|
| |
896
|
| |
827
|
| | |
1,001
|
| |
1,004
|
| |
1,062
|
| |
1,112
|
| |
1,049
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| End of Period Client Service Professionals | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Advisory
| | | |
571
| | |
552
| | |
580
| | |
590
| | | | | |
605
| | |
612
| | |
657
| | |
704
| | | | |
Alternative Asset Advisory
| | | |
90
| | |
97
| | |
100
| | |
100
| | | | | |
94
| | |
103
| | |
106
| | |
105
| | | | |
Investment Banking
| | | |
127
|
| |
131
|
| |
149
|
| |
303
|
| | | | |
294
|
| |
292
|
| |
311
|
| |
311
|
| | | | | | | |
788
|
| |
780
|
| |
829
|
| |
993
|
| | | | |
993
|
| |
1,007
|
| |
1,074
|
| |
1,120
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 2011 | | | 2012 | | | | | | Q1 | | Q2 | | Q3 | | Q4 | | YTD | | | Q1 | | Q2 | | Q3 | | Q4 | | YTD | Average Managing Directors | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Advisory
| | | |
94
| | |
93
| | |
91
| | |
90
| | |
92
| | | |
92
| | |
95
| | |
96
| | |
106
| | |
97
| |
Alternative Asset Advisory
| | | |
26
| | |
25
| | |
25
| | |
24
| | |
25
| | | |
23
| | |
23
| | |
24
| | |
23
| | |
23
| |
Investment Banking
| | | |
39
|
| |
41
|
| |
48
|
| |
58
|
| |
47
|
| | |
76
|
| |
74
|
| |
73
|
| |
73
|
| |
74
| | | | | |
159
|
| |
159
|
| |
164
|
| |
172
|
| |
164
|
| | |
191
|
| |
192
|
| |
193
|
| |
202
|
| |
194
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| End of Period Managing Directors | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Advisory
| | | |
94
| | |
91
| | |
90
| | |
92
| | | | | |
95
| | |
95
| | |
96
| | |
110
| | | | |
Alternative Asset Advisory
| | | |
26
| | |
25
| | |
25
| | |
24
| | | | | |
23
| | |
23
| | |
24
| | |
23
| | | | |
Investment Banking
| | | |
39
|
| |
43
|
| |
50
|
| |
76
|
| | | | |
73
|
| |
73
|
| |
73
|
| |
71
|
| | | | | | | |
159
|
| |
159
|
| |
165
|
| |
192
|
| | | | |
191
|
| |
191
|
| |
193
|
| |
204
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
| |
| | DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
|
| | | | | | |
December 31,
2012
| |
December 31,
2011
| | ASSETS | | | | | |
Current assets
| | | | | |
Cash and cash equivalents
| |
$
|
68,732
| | |
$
|
38,986
|
Accounts receivable (net of allowance for doubtful accounts of
$2,037 and $1,753 at December 31,
2012 and 2011, respectively)
| |
79,360
| | |
77,795
| |
Unbilled services
| |
54,159
| | |
51,427
| |
Prepaid expenses and other current assets
| |
10,980
| | |
8,257
| |
Net deferred income taxes, current
| |
1,819
|
| |
2,545
| |
Total current assets
| |
215,050
|
| |
179,010
| | | | |
|
Property and equipment (net of accumulated depreciation of $39,534
and $32,516 at December 31, 2012
and 2011, respectively)
| |
49,926
| | |
33,632
| |
Goodwill
| |
205,653
| | |
192,970
|
Intangible assets (net of accumulated amortization of $35,144 and
$25,626 at December 31, 2012 and
2011, respectively)
| |
38,201
| | |
40,977
| |
Other assets
| |
16,969
| | |
13,942
| |
Investments related to deferred compensation plan
| |
28,775
| | |
23,542
| |
Net deferred income taxes, less current portion
| |
161,339
|
| |
115,826
| |
Total non-current assets
| |
500,863
|
| |
420,889
| |
Total assets
| |
$
|
715,913
|
| |
$
|
599,899
| | | | |
| | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | |
Current liabilities
| | | | | |
Accounts payable
| |
$
|
5,131
| | |
$
|
4,148
| |
Accrued expenses
| |
23,939
| | |
22,612
| |
Accrued compensation and benefits
| |
54,315
| | |
41,518
| |
Liability related to deferred compensation plan, current portion
| |
506
| | |
646
| |
Deferred revenues
| |
6,388
| | |
4,185
| |
Due to noncontrolling unitholders, current portion
| |
7,623
|
| |
6,209
| |
Total current liabilities
| |
97,902
|
| |
79,318
| | | | |
| |
Long-term debt
| |
22,500
| | |
—
| |
Liability related to deferred compensation plan, less current portion
| |
28,361
| | |
23,083
| |
Other long-term liabilities
| |
36,511
| | |
32,248
| |
Due to noncontrolling unitholders, less current portion
| |
140,458
|
| |
101,557
| |
Total non-current liabilities
| |
227,830
|
| |
156,888
| |
Total liabilities
| |
325,732
|
| |
236,206
| | | | |
| |
Commitments and contingencies
| | | | | | | | |
| |
Stockholders' equity
| | | | | |
Preferred stock (50,000 shares authorized; zero issued and
outstanding)
| |
—
| | |
—
|
Class A common stock, par value $0.01 per share (100,000 shares
authorized; 42,420 and 31,646 shares
issued and outstanding
at December 31, 2012 and 2011, respectively)
| |
424
| | |
316
|
Class B common stock, par value $0.0001 per share (50,000 shares
authorized; zero and 10,488 shares
issued and outstanding at
December 31, 2012 and 2011, respectively)
| |
—
| | |
1
| |
Additional paid-in capital
| |
352,858
| | |
252,572
| |
Accumulated other comprehensive income
| |
2,620
| | |
287
| |
Retained earnings
| |
34,279
|
| |
25,631
| |
Total stockholders' equity of Duff & Phelps Corporation
| |
390,181
| | |
278,807
| |
Noncontrolling interest
| |
—
|
| |
84,886
| |
Total stockholders' equity
| |
390,181
|
| |
363,693
| |
Total liabilities and stockholders' equity
| |
$
|
715,913
|
| |
$
|
599,899
| | | | |
|
|
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| |
| |
|
|
| Year Ended | | | | |
December 31,
2012
|
|
December 31,
2011
| | Cash flows from operating activities: | | | | | | | |
Net income
| | | |
$
|
26,301
| | |
$
|
29,729
| | |
Adjustments to reconcile net income to net cash provided by
operating activities:
| | | | | | | |
Depreciation and amortization
| | | |
18,138
| | |
11,164
| | |
Equity-based compensation
| | | |
25,537
| | |
21,884
| | |
Bad debt expense
| | | |
1,628
| | |
3,363
| | |
Net deferred income taxes
| | | |
6,432
| | |
4,811
| | |
Other
| | | |
3,385
| | |
3,295
| | |
Changes in assets and liabilities providing/(using) cash, net of
acquired balances:
| | | | | | | |
Accounts receivable
| | | |
387
| | |
(19,821
|
)
| |
Unbilled services
| | | |
(1,015
|
)
| |
(14,471
|
)
| |
Prepaid expenses and other current assets
| | | |
(2,591
|
)
| |
1,399
| | |
Other assets
| | | |
(4,339
|
)
| |
(146
|
)
| |
Accounts payable and accrued expenses
| | | |
4,698
| | |
5,527
| | |
Accrued compensation and benefits
| | | |
18,363
| | |
4,379
| | |
Deferred revenues
| | | |
2,069
| | |
1,756
| | |
Other liabilities
| | | |
(2,916
|
)
| |
(869
|
)
| |
Due to noncontrolling unitholders from payments pursuant to the Tax
Receivable Agreement
| | | |
(6,033
|
)
| |
(5,536
|
)
| |
Net cash provided by operating activities
| | | |
90,044
|
| |
46,464
|
| | | | | | |
| | Cash flows from investing activities: | | | | | | | |
Purchases of property and equipment
| | | |
(23,706
|
)
| |
(8,057
|
)
| |
Business acquisitions, net of cash acquired
| | | |
(13,614
|
)
| |
(53,464
|
)
| |
Purchases of investments
| | | |
(3,150
|
)
| |
(6,200
|
)
| |
Increase in restricted cash
| | | |
—
|
| |
(6,400
|
)
| |
Net cash used in investing activities
| | | |
(40,470
|
)
| |
(74,121
|
)
| | | | | | |
| | Cash flows from financing activities: | | | | | | | |
Borrowings under revolving line of credit
| | | |
35,000
| | |
—
| | |
Repayments of revolving line of credit
| | | |
(12,500
|
)
| |
—
| | |
Net proceeds from sale of Class A common stock
| | | |
49,244
| | |
—
| | |
Redemption of noncontrolling unitholders
| | | |
(58,972
|
)
| |
—
| | |
Dividends
| | | |
(13,683
|
)
| |
(9,989
|
)
| |
Repurchases of Class A common stock
| | | |
(9,284
|
)
| |
(28,891
|
)
| |
Payments of contingent consideration related to acquisitions
| | | |
(6,550
|
)
| |
—
| | |
Distributions and other payments to noncontrolling unitholders
| | | |
(4,082
|
)
| |
(8,447
|
)
| |
Payments of debt issuance costs
| | | |
—
| | |
(302
|
)
| |
Proceeds from exercises of stock options
| | | |
16
| | |
267
| | |
Excess tax benefit from equity-based compensation
| | | |
836
|
| |
963
|
| |
Net cash used in financing activities
| | | |
(19,975
|
)
| |
(46,399
|
)
| | | | | | |
| |
Effect of exchange rate on cash and cash equivalents
| | | |
147
|
| |
(286
|
)
| | | | | | |
| |
Net increase/(decrease) in cash and cash equivalents
| | | |
29,746
| | |
(74,342
|
)
| |
Cash and cash equivalents at beginning of year
| | | |
38,986
|
| |
113,328
|
| | Cash and cash equivalents at end of period | | | |
$
|
68,732
|
| |
$
|
38,986
|
| |
|
|
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| |
| |
|
|
| Quarter Ended December 31, 2012 | | | | |
As Reported
|
|
Adjustments
| |
Adjusted Pro
Forma
| |
Revenue
| | | |
$
|
139,917
| | |
$
|
—
| | |
$
|
139,917
| | |
Reimbursable expenses
| | | |
5,218
|
| |
—
|
| |
5,218
|
| |
Total revenue
| | | |
145,135
|
| |
—
|
| |
145,135
|
| | | | | | | | |
| |
Direct client service costs
| | | | | | | | | |
Compensation and benefits
| | | |
77,070
| | |
—
| | |
77,070
| | |
Other direct client service costs
| | | |
4,476
| | |
—
| | |
4,476
| | |
Acquisition retention expenses
| | | |
3,029
| | |
(3,029
|
)
| (2) |
—
| | |
Reimbursable expenses
| | | |
5,361
|
| |
—
|
| |
5,361
|
| | | | |
89,936
|
| |
(3,029
|
)
| |
86,907
|
| | | | | | | | |
| |
Operating expenses
| | | | | | | | | |
Selling, general and administrative
| | | |
31,155
| | |
—
| | |
31,155
| | |
Depreciation and amortization
| | | |
5,128
| | |
—
| | |
5,128
| | |
Restructuring charges
| | | |
(28
|
)
| |
28
| | (3) |
—
| | |
Acquisition, integration and corporate development costs
| | | |
4,951
|
| |
(4,951
|
)
| (4) |
—
|
| | | | |
41,206
|
| |
(4,923
|
)
| |
36,283
|
| | | | | | | | |
| |
Operating income
| | | |
13,993
| | |
7,952
| | |
21,945
| | | | | | | | | |
| |
Other expense/(income), net
| | | | | | | | | |
Interest income
| | | |
(22
|
)
| |
—
| | |
(22
|
)
| |
Interest expense
| | | |
256
| | |
—
| | |
256
| | |
Other expense/(income)
| | | |
(526
|
)
| |
—
|
| |
(526
|
)
| | | | |
(292
|
)
| |
—
|
| |
(292
|
)
| | | | | | | | |
| |
Income before income taxes
| | | |
14,285
| | |
7,952
| | |
22,237
| | |
Provision for income taxes
| | | |
7,630
|
| |
1,197
|
| (6) |
8,827
|
| |
Net income
| | | |
6,655
| | |
6,755
| | |
13,410
| | |
Less: Net income attributable to noncontrolling interest
| | | |
590
|
| |
(590
|
)
| |
—
|
| |
Net income attributable to Duff & Phelps Corporation
| | | |
$
|
6,065
|
| |
$
|
7,345
|
| |
$
|
13,410
|
| | | | | | | | |
| | | | | | | | |
| |
Pro forma fully exchanged, fully diluted shares outstanding
| |
39,247
|
| | | | | | | | |
| |
Adjusted Pro Forma Net Income per fully exchanged, fully diluted
shares outstanding
| |
$
|
0.34
|
| | | | |
|
See definition of Adjusted Pro Forma Net Income and
accompanying
footnotes in the preceding section of this press release. |
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| |
| |
|
|
| Quarter Ended December 31, 2011 | | | | |
As Reported
|
|
Adjustments
|
|
Adjusted Pro
Forma
| |
Revenue
| | | |
$
|
118,980
| | |
$
|
—
| | |
$
|
118,980
| | |
Reimbursable expenses
| | | |
5,573
|
| |
—
|
| |
5,573
|
| |
Total revenue
| | | |
124,553
|
| |
—
|
| |
124,553
|
| | | | | | | | |
| |
Direct client service costs
| | | | | | | | | |
Compensation and benefits
| | | |
62,934
| | |
32
| | (1) |
|
62,966
| | |
Other direct client service costs
| | | |
4,089
| | |
—
| | |
4,089
| | |
Acquisition retention expenses
| | | |
1,024
| | |
(1,024
|
)
| (2) |
|
—
| | |
Reimbursable expenses
| | | |
5,589
|
| |
—
|
| |
5,589
|
| | | | |
73,636
|
| |
(992
|
)
| |
72,644
|
| | | | | | | | |
| |
Operating expenses
| | | | | | | | | |
Selling, general and administrative
| | | |
27,709
| | |
2
| | (1) |
|
27,711
| | |
Depreciation and amortization
| | | |
3,230
| | |
—
| | |
3,230
| | |
Restructuring charges
| | | |
95
| | |
(95
|
)
| (3) |
|
—
| | |
Acquisition, integration and corporate development costs
| | | |
1,571
|
| |
(1,571
|
)
| (4) |
|
—
|
| | | | |
32,605
|
| |
(1,664
|
)
| |
30,941
|
| | | | | | | | |
| |
Operating income
| | | |
18,312
| | |
2,656
| | |
20,968
| | | | | | | | | |
| |
Other expense/(income), net
| | | | | | | | | |
Interest income
| | | |
(8
|
)
| |
—
| | |
(8
|
)
| |
Interest expense
| | | |
97
| | |
—
| | |
97
| | |
Other expense
| | | |
1,502
|
| |
(1,500
|
)
| (5) |
|
2
|
| | | | |
1,591
|
| |
(1,500
|
)
| |
91
|
| | | | | | | | |
| |
Income before income taxes
| | | |
16,721
| | |
4,156
| | |
20,877
| | |
Provision for income taxes
| | | |
5,566
|
| |
2,910
|
| (6) |
|
8,476
|
| |
Net income
| | | |
11,155
| | |
1,246
| | |
12,401
| | |
Less: Net income attributable to noncontrolling interest
| | | |
4,110
|
| |
(4,110
|
)
| |
—
|
| |
Net income attributable to Duff & Phelps Corporation
| | | |
$
|
7,045
|
| |
$
|
5,356
|
| |
$
|
12,401
|
| | | | | | | | |
| | | | | | | | |
| |
Pro forma fully exchanged, fully diluted shares outstanding
| |
38,324
|
| | | | | | | | |
| |
Adjusted Pro Forma Net Income per fully exchanged, fully diluted
shares outstanding
| |
$
|
0.32
|
| | | | |
|
See definition of Adjusted Pro Forma Net Income and
accompanying
footnotes in the preceding section of this press release. |
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| |
| |
|
|
| Year Ended December 31, 2012 | | | | |
As Reported
|
|
Adjustments
|
|
Adjusted Pro
Forma
| |
Revenue
| | | |
$
|
469,164
| | |
$
|
—
| | |
$
|
469,164
| | |
Reimbursable expenses
| | | |
15,537
|
| |
—
|
| |
15,537
|
| |
Total revenue
| | | |
484,701
|
| |
—
|
| |
484,701
|
| | | | | | | | |
| |
Direct client service costs
| | | | | | | | | |
Compensation and benefits
| | | |
256,089
| | |
43
| | (1) |
|
256,132
| | |
Other direct client service costs
| | | |
13,119
| | |
—
| | |
13,119
| | |
Acquisition retention expenses
| | | |
9,536
| | |
(9,536
|
)
| (2) |
|
—
| | |
Reimbursable expenses
| | | |
15,734
|
| |
—
|
| |
15,734
|
| | | | |
294,478
|
| |
(9,493
|
)
| |
284,985
|
| | | | | | | | |
| |
Operating expenses
| | | | | | | | | |
Selling, general and administrative
| | | |
116,032
| | |
(65
|
)
| (1) |
|
115,967
| | |
Depreciation and amortization
| | | |
18,138
| | |
—
| | |
18,138
| | |
Restructuring charges
| | | |
1,796
| | |
(1,796
|
)
| (3) |
|
—
| | |
Acquisition, integration and corporate development costs
| | | |
6,865
|
| |
(6,865
|
)
| (4) |
|
—
|
| | | | |
142,831
|
| |
(8,726
|
)
| |
134,105
|
| | | | | | | | |
| |
Operating income
| | | |
47,392
| | |
18,219
| | |
65,611
| | | | | | | | | |
| |
Other expense/(income), net
| | | | | | | | | |
Interest income
| | | |
(59
|
)
| |
—
| | |
(59
|
)
| |
Interest expense
| | | |
748
| | |
—
| | |
748
| | |
Other expense
| | | |
380
|
| |
(376
|
)
| (5) |
|
4
|
| | | | |
1,069
|
| |
(376
|
)
| |
693
|
| | | | | | | | |
| |
Income before income taxes
| | | |
46,323
| | |
18,595
| | |
64,918
| | |
Provision for income taxes
| | | |
20,022
|
| |
5,621
|
| (6) |
|
25,643
|
| |
Net income
| | | |
26,301
| | |
12,974
| | |
39,275
| | |
Less: Net income attributable to noncontrolling interest
| | | |
4,037
|
| |
(4,037
|
)
| |
—
|
| |
Net income attributable to Duff & Phelps Corporation
| | | |
$
|
22,264
|
| |
$
|
17,011
|
| |
$
|
39,275
|
| | | | | | | | |
| | | | | | | | |
| |
Pro forma fully exchanged, fully diluted shares outstanding
| |
39,051
|
| | | | | | | | |
| |
Adjusted Pro Forma Net Income per fully exchanged, fully diluted
shares outstanding
| |
$
|
1.01
|
| | | | |
|
See definition of Adjusted Pro Forma Net Income and
accompanying
footnotes in the preceding section of this press release. |
| DUFF & PHELPS CORPORATION AND SUBSIDIARIES ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| |
| |
|
|
| Year Ended December 31, 2011 | | | | |
As Reported
|
|
Adjustments
|
|
Adjusted Pro
Forma
| |
Revenue
| | | |
$
|
383,940
| | |
$
|
—
| | |
$
|
383,940
| | |
Reimbursable expenses
| | | |
12,934
|
| |
—
|
| |
12,934
|
| |
Total revenue
| | | |
396,874
|
| |
—
|
| |
396,874
|
| | | | | | | | |
| |
Direct client service costs
| | | | | | | | | |
Compensation and benefits
| | | |
209,606
| | |
273
| | (1) |
|
209,879
| | |
Other direct client service costs
| | | |
9,048
| | |
—
| | |
9,048
| | |
Acquisition retention expenses
| | | |
1,624
| | |
(1,624
|
)
| (2) |
|
—
| | |
Reimbursable expenses
| | | |
13,073
|
| |
—
|
| |
13,073
|
| | | | |
233,351
|
| |
(1,351
|
)
| |
232,000
|
| | | | | | | | |
| |
Operating expenses
| | | | | | | | | |
Selling, general and administrative
| | | |
100,624
| | |
(480
|
)
| (1) |
|
100,144
| | |
Depreciation and amortization
| | | |
11,164
| | |
—
| | |
11,164
| | |
Restructuring charges
| | | |
4,090
| | |
(4,090
|
)
| (3) |
|
—
| | |
Acquisition, integration and corporate development costs
| | | |
2,372
|
| |
(2,372
|
)
| (4) |
|
—
|
| | | | |
118,250
|
| |
(6,942
|
)
| |
111,308
|
| | | | | | | | |
| |
Operating income
| | | |
45,273
| | |
8,293
| | |
53,566
| | | | | | | | | |
| |
Other expense/(income), net
| | | | | | | | | |
Interest income
| | | |
(77
|
)
| |
—
| | |
(77
|
)
| |
Interest expense
| | | |
275
| | |
—
| | |
275
| | |
Other expense
| | | |
1,505
|
| |
(1,500
|
)
| (5) |
|
5
|
| | | | |
1,703
|
| |
(1,500
|
)
| |
203
|
| | | | | | | | |
| |
Income before income taxes
| | | |
43,570
| | |
9,793
| | |
53,363
| | |
Provision for income taxes
| | | |
13,841
|
| |
7,824
|
| (6) |
|
21,665
|
| |
Net income
| | | |
29,729
| | |
1,969
| | |
31,698
| | |
Less: Net income attributable to noncontrolling interest
| | | |
11,115
|
| |
(11,115
|
)
| |
—
|
| |
Net income attributable to Duff & Phelps Corporation
| | | |
$
|
18,614
|
| |
$
|
13,084
|
| |
$
|
31,698
|
| | | | | | | | |
| | | | | | | | |
| |
Pro forma fully exchanged, fully diluted shares outstanding
| |
38,715
|
| | | | | | | | |
| |
Adjusted Pro Forma Net Income per fully exchanged, fully diluted
shares outstanding
| |
$
|
0.82
|
| | | | |
|
See definition of Adjusted Pro Forma Net Income and
accompanying
footnotes in the preceding section of this press release.
Contacts: Duff & Phelps Corporation
Investor Relations
Marty
Dauer, +1-212-871-7700
investor.relations@duffandphelps.com
or
Media
Relations
Alex Wolfe, +1-212-871-9087
alex.wolfe@duffandphelps.com Source: Duff & Phelps Corporation
|