Manning & Napier, Inc. Reports Fourth Quarter and Full Year 2021 Earnings Results
Summary Highlights
- Assets under management ("AUM") at
December 31, 2021 were$22.5 billion , compared to$22.0 billion atSeptember 30, 2021 - Revenue for the fourth quarter was
$37.8 million , an increase of 13% from the fourth quarter of 2020 and an increase of 1% from the third quarter of 2021 - Fourth quarter income before taxes was
$9.2 million ; the net income attributable toManning & Napier, Inc. for the fourth quarter was$7.4 million , or$0.34 per diluted share - On a non-GAAP basis, as defined in the Non-GAAP Financial Measures section below, economic net income for the fourth quarter was
$8.0 million , or$0.35 per adjusted share - The Company returned approximately
$7.5 million of cash to investors during 2021 through the reinstatement of a quarterly dividend of$0.05 per share of Class A common stock starting in the third quarter and the share purchase completed during the year - In
February 2022 , the Board of Directors reauthorized a share repurchase program of up to$10.0 million ofManning & Napier Inc. Class A common shares
"We completed 2021 with strong results for clients and increasing business momentum as our suite of investment strategies delivered excellent returns again last year, building on our robust track record over the short-, medium-, and long-term," explained
Fourth Quarter 2021 Financial Review
Manning & Napier reported fourth quarter 2021 revenue of
Total operating expenses for the fourth quarter of 2021 were
Compensation and related costs were
Distribution, servicing and custody expenses for the fourth quarter of 2021 increased by less than
Other operating costs for the fourth quarter of 2021 were
Operating income was
Non-operating loss was
Income before provision for income taxes was
Net income attributable to the controlling and the non-controlling interests for the fourth quarter of 2021 was
On a Non-GAAP basis, as defined in the Non-GAAP Financial Measures section of this release, Manning & Napier reported fourth quarter 2021 economic income of
Twelve months ended
Manning & Napier reported 2021 revenue of
Total operating expenses for 2021 were
Compensation and related costs for the twelve months ended
Distribution, servicing and custody expenses for 2021 decreased by
Other operating costs for 2021 increased by
Operating income was
Non-operating income for 2021 was
Income before provision for income taxes was
Net income attributable to the controlling and the non-controlling interests was
On a Non-GAAP basis, as defined in the Non-GAAP Financial Measures section of this release, Manning & Napier reported economic income of
Assets Under Management
As of
Since
When compared to
Balance Sheet
Cash and cash equivalents, and investments totaled
Business Updates
During the first quarter of fiscal 2021, the Board of Directors authorized the purchase of up to
In
Summary of Presentation Changes
Beginning with the three-month period ended
Amounts for the comparative prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported net income and do not represent a restatement of any previously published financial results.
Conference Call
Manning & Napier will host a conference call to discuss its 2021 fourth quarter and full year financial results on
If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call's completion and available through
Non-GAAP Financial Measures
To provide investors with greater insight into operating results, promote transparency, facilitate comparison of period-to-period results, and to allow a more comprehensive understanding of information used by management in its financial and operational decision-making, the Company supplements its consolidated statements of operations presented in accordance with accounting principles generally accepted in
Management uses economic income, economic net income and economic net income per adjusted share as financial measures to evaluate the profitability and efficiency of the Company's business as a whole in the ordinary, ongoing and customary course of its operations. Economic income, economic net income and economic net income per adjusted share are not presented in accordance with GAAP.
Economic income presents a financial measure of the controlling and non-controlling interests of
Economic net income is a non-GAAP measure of after-tax operating performance for the controlling and non-controlling interests of
Economic net income per adjusted share is equal to economic net income divided by the weighted average number of adjusted Class A common shares outstanding. The number of weighted average adjusted Class A common shares outstanding for all periods presented is determined by assuming the weighted average exchangeable units of Manning &
Investors should consider the non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. Additionally, the Company's non-GAAP financial measures may differ from similar measures used by other companies, even if similar terms are used to identify such measures.
About Manning &
Safe Harbor Statement
This press release and other statements that the Company may make may 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, which reflect the Company's current views with respect to, among other things, its operations and financial performance. Words like "believes," "expects," "may," "estimates," "will," "should," "intends," "plans," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, are used to identify forward-looking statements, although not all forward-looking statements contain these words. Although the Company believes that it is basing its expectations and beliefs on reasonable assumptions within the bounds of what it currently knows about its business and operations, there can be no assurance that its actual results will not differ materially from what the Company expects or believes. Some of the factors that could cause the Company's actual results to differ from its expectations or beliefs include, without limitation: changes in securities or financial markets or general economic conditions; the impact of COVID-19 on the
Contacts
Investor Relations:
973-464-5240
eblum@prosek.com
Public Relations:
Manning &
585-325-6880
nbrunner@manning-napier.com
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Consolidated Statements of Operations |
||||||||||
(in thousands, except share data) |
||||||||||
(unaudited) |
||||||||||
Three Months Ended |
Twelve Months Ended |
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|
|
|
|
|
||||||
Revenues |
||||||||||
Investment management fees |
$ 32,850 |
$ 32,575 |
$ 28,913 |
$ 126,353 |
$ 108,503 |
|||||
Distribution and shareholder servicing |
2,250 |
2,278 |
2,157 |
8,917 |
9,274 |
|||||
Custodial services |
1,735 |
1,759 |
1,578 |
6,860 |
6,217 |
|||||
Other revenue |
981 |
925 |
864 |
3,451 |
3,040 |
|||||
Total revenue |
37,816 |
37,537 |
33,512 |
145,581 |
127,034 |
|||||
Expenses |
||||||||||
Compensation and related costs |
17,919 |
18,749 |
19,150 |
73,889 |
74,397 |
|||||
Distribution, servicing and custody expenses |
2,451 |
2,512 |
2,405 |
9,818 |
10,239 |
|||||
Other operating costs |
8,205 |
6,970 |
7,389 |
29,348 |
28,586 |
|||||
Total operating expenses |
28,575 |
28,231 |
28,944 |
113,055 |
113,222 |
|||||
Operating income |
9,241 |
9,306 |
4,568 |
32,526 |
13,812 |
|||||
Non-operating income (loss) |
||||||||||
Non-operating income (loss), net |
(63) |
(73) |
1,095 |
578 |
8 |
|||||
Income before provision for income taxes |
9,178 |
9,233 |
5,663 |
33,104 |
13,820 |
|||||
Provision for (benefit from) income taxes |
1,521 |
2,523 |
(78) |
6,032 |
(106) |
|||||
Net income attributable to the controlling and the noncontrolling interests |
7,657 |
6,710 |
5,741 |
27,072 |
13,926 |
|||||
Less: net income attributable to the noncontrolling interests |
220 |
207 |
648 |
1,967 |
3,922 |
|||||
Net income attributable to Manning & |
$ 7,437 |
6,503 |
$ 5,093 |
$ 25,105 |
$ 10,004 |
|||||
Net income per share available to Class A common stock |
||||||||||
Basic |
$ 0.40 |
$ 0.35 |
$ 0.31 |
$ 1.41 |
$ 0.61 |
|||||
Diluted |
$ 0.34 |
$ 0.29 |
$ 0.23 |
$ 1.19 |
$ 0.29 |
|||||
Weighted average shares of Class A common stock outstanding |
||||||||||
Basic |
18,523,055 |
18,481,147 |
16,464,182 |
17,752,854 |
16,147,469 |
|||||
Diluted |
22,142,862 |
22,226,455 |
21,733,694 |
21,072,140 |
41,611,219 |
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Reconciliation of Non-GAAP Financial Measures to GAAP Measures |
|||||||||
(in thousands, except share data) |
|||||||||
(unaudited) |
|||||||||
Three Months Ended |
Twelve Months Ended |
||||||||
|
|
|
|
|
|||||
Net income attributable to Manning & |
$ 7,437 |
$ 6,503 |
$ 5,093 |
$ 25,105 |
$ 10,004 |
||||
Add back: Net income attributable to the noncontrolling interests |
220 |
207 |
648 |
1,967 |
3,922 |
||||
Add back: Provision for (benefit from) income taxes |
1,521 |
2,523 |
(78) |
6,032 |
(106) |
||||
Income before provision for income taxes |
9,178 |
9,233 |
5,663 |
33,104 |
13,820 |
||||
Add back: Strategic restructuring and transaction costs, net (1) |
562 |
560 |
748 |
2,838 |
2,839 |
||||
Economic income (Non-GAAP) |
9,740 |
9,793 |
6,411 |
35,942 |
16,659 |
||||
Adjusted income taxes (Non-GAAP) |
1,766 |
2,921 |
669 |
7,009 |
2,210 |
||||
Economic net income (Non-GAAP) |
$ 7,974 |
$ 6,872 |
$ 5,742 |
$ 28,933 |
$ 14,449 |
||||
Weighted average shares of Class A common stock outstanding - Basic |
18,523,055 |
18,481,147 |
16,464,182 |
17,752,854 |
16,147,469 |
||||
Assumed vesting, conversion or exchange of: |
|||||||||
Weighted average outstanding (noncontrolling interest) |
428,812 |
428,812 |
2,021,781 |
1,214,386 |
23,501,636 |
||||
Weighted average unvested restricted stock units and stock awards |
3,705,491 |
3,890,091 |
3,473,725 |
3,840,377 |
3,348,864 |
||||
Vested stock options |
333,332 |
333,332 |
319,351 |
439,713 |
378,376 |
||||
Weighted average adjusted shares (Non-GAAP) |
22,990,690 |
23,133,382 |
22,279,039 |
23,247,330 |
43,376,345 |
||||
Economic net income per adjusted share (Non-GAAP) |
$ 0.35 |
$ 0.30 |
$ 0.26 |
$ 1.24 |
$ 0.33 |
||||
(1)Strategic restructuring and transaction costs, net, are included in the following financial statement line items of our Consolidated Statements of Operations: |
|||||||||
Compensation and benefits |
$ 231 |
$ 532 |
$ 500 |
$ 1,403 |
$ 1,403 |
||||
Other operating costs |
331 |
28 |
248 |
1,435 |
1,436 |
||||
Total strategic restructuring and transaction costs, net |
$ 562 |
$ 560 |
$ 748 |
$ 2,838 |
$ 2,839 |
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Assets Under Management ("AUM") |
|||||||||||||||
(in millions) |
|||||||||||||||
(unaudited) |
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For the three months ended: |
Sales Channel (4) |
Portfolio |
|||||||||||||
Wealth |
Institutional and |
Total |
Blended |
Equity |
Fixed |
Total |
|||||||||
As of |
$ 9,480.3 |
$ 12,495.9 |
$ 21,976.2 |
$ 14,674.8 |
$ 6,229.7 |
$ 1,071.7 |
$ 21,976.2 |
||||||||
Gross client inflows (1) |
223.9 |
461.2 |
685.1 |
443.8 |
156.9 |
84.4 |
685.1 |
||||||||
Gross client outflows (1) |
(295.8) |
(661.4) |
(957.2) |
(575.8) |
(317.1) |
(64.3) |
(957.2) |
||||||||
Market appreciation/(depreciation) & other (2) |
368.5 |
470.0 |
838.5 |
531.3 |
304.9 |
2.3 |
838.5 |
||||||||
As of |
$ 9,776.9 |
$ 12,765.7 |
$ 22,542.6 |
$ 15,074.1 |
$ 6,374.4 |
$ 1,094.1 |
$ 22,542.6 |
||||||||
Average AUM for period |
$ 9,634.4 |
$ 12,631.6 |
$ 22,266.0 |
$ 14,884.5 |
$ 6,297.4 |
$ 1,084.1 |
$ 22,266.0 |
||||||||
As of |
$ 9,613.5 |
$ 12,648.0 |
$ 22,261.5 |
$ 14,868.6 |
$ 6,333.9 |
$ 1,059.0 |
$ 22,261.5 |
||||||||
Gross client inflows (1) |
211.0 |
401.8 |
612.8 |
437.9 |
116.5 |
58.4 |
612.8 |
||||||||
Gross client outflows (1) |
(237.2) |
(532.5) |
(769.7) |
(528.4) |
(189.8) |
(51.5) |
(769.7) |
||||||||
Market appreciation/(depreciation) & other (2) |
(107.0) |
(21.4) |
(128.4) |
(103.3) |
(30.9) |
5.8 |
(128.4) |
||||||||
As of |
$ 9,480.3 |
$ 12,495.9 |
$ 21,976.2 |
$ 14,674.8 |
$ 6,229.7 |
$ 1,071.7 |
$ 21,976.2 |
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Average AUM for period |
$ 9,629.3 |
$ 12,732.2 |
$ 22,361.5 |
$ 14,908.6 |
$ 6,381.1 |
$ 1,071.8 |
$ 22,361.5 |
||||||||
As of |
$ 8,102.6 |
$ 11,142.5 |
$ 19,245.1 |
$ 13,367.7 |
$ 4,872.6 |
$ 1,004.8 |
$ 19,245.1 |
||||||||
Gross client inflows (1) |
290.6 |
313.8 |
604.4 |
377.8 |
199.0 |
27.6 |
604.4 |
||||||||
Gross client outflows (1) |
(432.9) |
(987.4) |
(1,420.3) |
(1,157.0) |
(236.0) |
(27.3) |
(1,420.3) |
||||||||
Market appreciation/(depreciation) & other (2) |
946.1 |
744.1 |
1,690.2 |
970.3 |
709.7 |
10.2 |
1,690.2 |
||||||||
As of |
$ 8,906.4 |
$ 11,213.0 |
$ 20,119.4 |
$ 13,558.8 |
$ 5,545.3 |
$ 1,015.3 |
$ 20,119.4 |
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Average AUM for period |
$ 8,616.4 |
$ 10,847.9 |
$ 19,464.3 |
$ 13,310.9 |
$ 5,145.8 |
$ 1,007.6 |
$ 19,464.3 |
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For the twelve months ended: |
Sales Channel (4) |
Portfolio |
|||||||||||||
Wealth |
Institutional and |
Total |
Blended |
Equity |
Fixed |
Total |
|||||||||
As of |
$ 8,906.4 |
$ 11,213.0 |
$ 20,119.4 |
$ 13,558.8 |
$ 5,545.3 |
$ 1,015.3 |
$ 20,119.4 |
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Gross client inflows (1) |
876.3 |
1,835.3 |
2,711.6 |
1,805.2 |
644.2 |
262.2 |
2,711.6 |
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Gross client outflows (1) |
(1,133.5) |
(2,201.2) |
(3,334.7) |
(2,177.9) |
(949.7) |
(207.1) |
(3,334.7) |
||||||||
Market appreciation/(depreciation) & other (2) (3) |
1,127.7 |
1,918.6 |
3,046.3 |
1,888.0 |
1,134.6 |
23.7 |
3,046.3 |
||||||||
As of |
$ 9,776.9 |
$ 12,765.7 |
$ 22,542.6 |
$ 15,074.1 |
$ 6,374.4 |
$ 1,094.1 |
$ 22,542.6 |
||||||||
Average AUM for period |
$ 9,429.6 |
$ 12,293.8 |
$ 21,723.4 |
$ 14,518.8 |
$ 6,147.9 |
$ 1,056.7 |
$ 21,723.4 |
||||||||
As of |
$ 8,716.4 |
$ 10,763.7 |
$ 19,480.1 |
$ 13,473.3 |
$ 4,988.8 |
$ 1,018.0 |
$ 19,480.1 |
||||||||
Gross client inflows (1) |
936.7 |
1,483.7 |
2,420.4 |
1,633.8 |
639.8 |
146.8 |
2,420.4 |
||||||||
Gross client outflows (1) |
(1,473.8) |
(3,267.0) |
(4,740.8) |
(3,581.8) |
(951.6) |
(207.4) |
(4,740.8) |
||||||||
Market appreciation/(depreciation) & other (2) |
727.1 |
2,232.6 |
2,959.7 |
2,033.5 |
868.3 |
57.9 |
2,959.7 |
||||||||
As of |
$ 8,906.4 |
$ 11,213.0 |
$ 20,119.4 |
$ 13,558.8 |
$ 5,545.3 |
$ 1,015.3 |
$ 20,119.4 |
||||||||
Average AUM for period |
$ 8,392.3 |
$ 10,565.8 |
$ 18,958.1 |
$ 13,177.6 |
$ 4,769.1 |
$ 1,011.4 |
$ 18,958.1 |
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(1) Transfers of client assets between portfolios are included in gross client inflows and gross client outflows. |
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(2) Market appreciation/(depreciation) and other includes investment gains/(losses) on assets under management, the impact of changes in foreign exchange rates and net flows from non-sales related activities including net reinvested dividends. |
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(3) Beginning in 2021, AUM includes assets associated with our model-delivery business, previously classified as assets under advisement. These assets totaled |
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(4) Assets under management and gross client flows between sales channels have been estimated based upon preliminary data. For a limited portion of our mutual fund assets under management, reporting by sales channel is not available at the time of this release. Such estimates have no impact on total AUM, total cash flows, or AUM by investment portfolio reported in the table above. |
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