RED BANK, N.J., March 24, 2017 /PRNewswire/ -- ZAIS Group
Holdings, Inc. (NASDAQ: ZAIS) ("ZAIS"), today reported financial
results for the three and twelve months ended December 31, 2016. ZAIS conducts
substantially all of its operations through ZAIS Group, LLC ("ZAIS
Group"). ZAIS Group provides investment advisory and asset
management services to private funds, separately managed accounts,
structured vehicles and, until October 31,
2016, to ZAIS Financial Corp. ("ZFC REIT"), a publicly
traded real estate investment trust (collectively, the "ZAIS
Managed Entities"). References to the "Company" herein refer
to ZAIS, together with (where the context requires) its
consolidated subsidiaries and affiliates.
Michael F. Szymanski, Chief
Executive Officer, said "In 2016, we produced strong investment
performance for our clients across our Securitized Credit,
Leveraged Finance, and Credit Trading products and platforms.
Our fourth quarter results, while positive, reflect one material
non-recurring item, our receipt of an $8.0
million termination fee as a result of the termination of
our investment management agreement with ZFC REIT in connection
with the merger of ZFC REIT with Sutherland Asset Management Corp.
("SAM"). We believe that we are making progress with our fund
raising activities as a result of our investment in business
development staffing and our strong investment performance.
Our return to sustained profitability remains challenging and will
depend on our success in attracting and retaining assets under
management."
FOURTH QUARTER 2016 HIGHLIGHTS
A summary of the Company's results for the three and twelve
months ended December 31, 2016 and
December 31, 2015 are below.
All dollar amounts are presented in millions, with the exception of
figures presented on a per share basis.
|
Three Months
Ended
|
Twelve Months
Ended
|
December 31,
2016
|
December 31,
2015
|
December 31,
2016
|
December 31,
2015
|
U.S.
GAAP
|
|
|
|
|
Net
income/(loss)
|
$5.9
|
$(11.8)
|
$(3.8)
|
$(23.9)
|
Net Income/(loss) per
diluted
weighted average share outstanding
applicable to ZAIS Group
Holdings, Inc.
|
$0.29
|
$(0.68)
|
$(0.37)
|
$(1.37)
|
Net
Income/(loss)before income
taxes
|
$5.9
|
$(7.5)
|
$(3.8)
|
$(23.7)
|
Non-GAAP
|
|
|
|
|
Net income/(loss)
(excluding
Consolidated Funds of ZAIS
Group)
|
$6.1
|
$(11.9)
|
$(7.3)
|
$(24.0)
|
Net income/(loss)
(excluding
Consolidated Funds of ZAIS
Group) per diluted weighted
average share outstanding
|
$0.29
|
$(0.68)
|
$(0.37)
|
$(1.37)
|
Adjusted
EBITDA
|
$7.5
|
$(3.4)
|
$(1.9)
|
$(14.3)
|
The consolidated financial statements include non-controlling
interests of the members of ZAIS Group Parent, LLC ("ZGP") (the
"ZGP Founder Members") which represent Class A Units of ZGP held by
the ZGP Founder Members. ZGP, a majority-owned consolidated
subsidiary of ZAIS, is the sole member, and owns all of the equity,
of ZAIS Group.
STRATEGIC REVIEW
The Company's Board of Directors has been undertaking a
strategic review of the Company's business in order to enhance
shareholder value and has engaged a financial advisor for this
purpose. Various alternatives have been and are being
considered, including a possible sale, combination or other similar
transaction or going private transaction which would result in the
termination of the registration of our Class A Shares so as to
cease periodic and other public company compliance and
reporting. The Company has received from and provided to
potential counterparties certain due diligence information.
In addition, the Company's management and financial advisor have
held and expect to continue to hold preliminary discussions with
potential counterparties and participants. There is no
assurance that any of the preliminary discussions which have taken
place or may in the future take place will result in any
transaction or that any of the strategic alternatives under
consideration will be implemented. The Company does not intend to
provide updates on any of these matters unless and until there is a
definitive agreement or action by the Board of Directors with
respect thereto.
CONSOLIDATED GAAP RESULTS
Operating Results – Fourth Quarter Ended December 31, 2016
The Company recorded GAAP net income for the three months ended
December 31, 2016 of $5.9 million compared with a GAAP net loss of
$(11.8) million for the three months
ended December 31, 2015. The
increase of $17.7 million in net
income was driven by an increase in revenues of $11.7 million, an increase in other income of
$2.0 million and a decrease in tax
expense of $4.3 million, offset by an
increase in expenses of $0.3
million.
The $11.7 million increase in
revenues was comprised of a net increase of $7.4 million in management fee income and
$4.3 million in incentive income. The
net increase in management fee income was primarily due to
receiving an $8.0 million termination
fee as a result of terminating the management agreement with ZFC
REIT upon completion of the merger between ZFC REIT and SAM on
October 31, 2016, partially offset by
a decrease in management fee income resulting from a year-over-year
reduction in average AUM. The net increase of $4.3 million in incentive income was primarily
driven by increased performance results during the three months
ended December 31, 2016 as compared
to the three months ended December 31,
2015 for certain funds and accounts, offset by incentive
income recognized during the three months ended December 31, 2015 that was not recognized during
the three months ended December 31,
2016 for certain accounts which liquidated during
2015.
The $2.0 million increase in other
income was primarily due to a $2.7
million decrease in impairment loss on goodwill relating to
an impairment loss recognized in 2015 as a result of the decline in
fair value of ZAIS Group which was not recognized in 2016 and a
$0.2 million increase in net gain on
investments as a result of gains on the Company's investments.
These amounts totaling $2.9
million are offset by $0.8
million of loss due to a change in net gain (loss) on
beneficial interest that the Company's Consolidated Fund, ZAIS
Zephyr A-6, LP ("Zephyr A-6"), has in ZAIS CLO 5 Limited, a
structured vehicle for which a wholly owned subsidiary of ZAIS
Group serves as the collateral manager.
The $4.3 million decrease in tax
expense was primarily the result of a full valuation allowance
recorded in the fourth quarter of 2015 on deferred tax assets as
the Company did not project taxable income for the next several
years.
Operating Results – Year Ended December
31, 2016
For the full year 2016, GAAP net loss was $(3.8) million compared with GAAP net loss of
$(23.9) million for the full year of
2015. The year over year decrease in the Company's net loss
of $20.1 million was driven primarily
by an $8.4 million increase in
revenues, a $1.0 million decrease in
expenses, a $10.5 million increase in
other income/(loss), and a $0.2
million increase in income tax benefit.
The $8.4 million increase in
revenues was comprised of a net increase of $6.2 million in management fee income and
$2.2 million in incentive income. The
net increase in management fee income was primarily due to
receiving an $8.0 million termination
fee as a result of terminating the management agreement with ZFC
REIT upon completion of the merger between ZFC REIT and SAM on
October 31, 2016, partially offset by
a decrease in management fee income resulting from a year-over-year
reduction in average AUM. The net increase of $2.2 million in incentive income was primarily
driven by increased performance results during 2016 as compared to
2015 for certain funds and accounts, offset by incentive income
recognized during 2015 that was not recognized during 2016 for
certain accounts which liquidated during 2015 and residual
incentive income received during 2015 which related to 2014 fund
performance.
The $1.0 million decrease in
expenses was primarily due to a $4.4
million increase in compensation and benefits, a
$4.8 million decrease in general,
administrative and other expenses and a $0.5
million decrease in depreciation and amortization.
The $4.4 million increase in
compensation and benefits was primarily due to a $9.6 million increase in incentive compensation
relating to the accrual for the year-end and guaranteed bonuses in
2016 and the payment of retention and sign-on bonuses during
2016. This was offset by a $3.9
million decrease in salaries and associated payroll taxes
and other employee benefits due to a reduction in force and other
restructuring during 2016 and a $0.8
million decrease in equity compensation relating to an
increase in the estimated forfeiture rate on ZGP Class B-0
Units. Employee holders cancelled all outstanding ZGP Class
B-0 Units on December 30, 2016 in
consideration, at the election of the employee, of cash paid by ZGP
or restricted stock units of the Company provided by the Company.
The $4.8 million decrease in
general, administrative and other expenses was due to a
$3.3 million decrease in professional
fees and a $1.5 million decrease
primarily related to a focused expense reduction during 2016.
The $0.5 million decrease in
depreciation and amortization was due to a change in the useful
life assumptions for leasehold improvements in 2015.
The $10.5 million increase in
other income/(loss) was primarily comprised of a net increase of
$7.8 million in net gain on
Consolidated Funds' investments related to a Consolidated Fund,
Zephyr A-6, which launched in the fourth quarter of 2015 and a
$2.7 million decrease in impairment
loss on goodwill relating to an impairment loss recognized in 2015
due to the decline in fair value of ZAIS Group which was not
recognized in 2016.
CONSOLIDATED NON-GAAP RESULTS
Please see the discussion of "Non-GAAP Financial Measures",
including the definitions of net income (loss) (excluding
Consolidating Funds of ZAIS Group) and Adjusted EBITDA, and
reconciliations of such Non-GAAP financial measures to the
respective GAAP net income (loss) and pre-tax GAAP net income
(loss) measures for the periods discussed above at the end of this
press release.
The Company's GAAP net income (loss) and non-GAAP measures of
income (loss) may fluctuate materially depending upon the
performance of ZAIS Managed Entities as well as other factors.
Accordingly, the GAAP net income (loss) and non-GAAP measures of
income (loss) in any particular period should not be expected to be
indicative of future results.
LIQUIDITY & CAPITAL RESOURCES
As of December 31, 2016, the
Company had cash and cash equivalents of $38.7 million and debt obligations of
$1.3 million.
FOURTH QUARTER 2016 SUPPLEMENTAL INFORMATION
The Company's Fourth Quarter 2016 Supplemental Information –
December 31, 2016, is available on
ZAIS's website at www.zaisgroupholdings.com. To access the
information, go to the "ZAIS Shareholders" section of the
website.
USE OF NON-GAAP FINANCIAL INFORMATION
In addition to the results presented in accordance with
generally accepted accounting principles ("GAAP"), this press
release includes certain non-GAAP financial information, including
net income (loss) (excluding Consolidated Funds of ZAIS Group) and
Adjusted EBITDA (and per share measures). Net income (loss)
(excluding Consolidated Funds of ZAIS Group) is a non-GAAP
financial measure that the Company defines as GAAP net income
(loss) excluding the consolidating effects of the Consolidated
Funds of ZAIS Group. Adjusted EBITDA is a non-GAAP financial
measure that the Company defines as GAAP net income (loss),
excluding consolidating effects of Consolidated Funds of ZAIS
Group, compensation expense related to a portion of net operating
income of ZAIS Group payable to certain employees of ZAIS Group,
compensation expense related to incentive income in the form of
percentage interests being recorded before related incentive income
is recognized, equity-based compensation, severance, taxes,
interest expense, depreciation and amortization expenses, goodwill
impairment, foreign currency and certain other non-cash and
non-operating items.
The Company believes that providing investors with this non-GAAP
financial information, in addition to the related GAAP measures,
gives investors greater transparency to the information used by
management in its financial and operational decision-making.
However, because net income (loss) (excluding Consolidated Funds of
ZAIS Group) and Adjusted EBITDA are incomplete measures of the
Company's financial performance and involve differences from net
income (loss) computed in accordance with GAAP, they should be
considered along with, but not as alternatives to, the Company's
net income (loss) computed in accordance with GAAP as a measure of
the Company's financial performance. In addition, because not
all companies use identical calculations, the Company's
presentation of net income (loss) (excluding Consolidated Funds of
ZAIS Group) and Adjusted EBITDA may not be comparable to other
similarly-titled measures of other companies.
ZAIS GROUP
HOLDINGS, INC. AND SUBSIDIARIES
|
|
Consolidated
Statements of Financial Condition
|
(Dollars in
thousands, except share amounts)
|
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
38,712
|
|
|
$
|
44,351
|
|
Income and fees
receivable
|
|
|
8,805
|
|
|
|
2,529
|
|
Investments, at fair
value
|
|
|
—
|
|
|
|
8,169
|
|
Investments in
affiliates, at fair value
|
|
|
5,273
|
|
|
|
5,242
|
|
Due from related
parties
|
|
|
734
|
|
|
|
748
|
|
Property and
equipment, net
|
|
|
274
|
|
|
|
544
|
|
Prepaid
expenses
|
|
|
906
|
|
|
|
776
|
|
Other
assets
|
|
|
348
|
|
|
|
310
|
|
Assets of
Consolidated Funds
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
37,080
|
|
|
|
33
|
|
Investments, at fair
value
|
|
|
404,365
|
|
|
|
30,509
|
|
Due from
broker
|
|
|
16,438
|
|
|
|
—
|
|
Other
assets
|
|
|
1,210
|
|
|
|
—
|
|
Total
Assets
|
|
$
|
514,145
|
|
|
$
|
93,211
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
1,263
|
|
|
$
|
1,255
|
|
Compensation
payable
|
|
|
7,836
|
|
|
|
3,575
|
|
Due to related
parties
|
|
|
31
|
|
|
|
175
|
|
Fees
payable
|
|
|
2,439
|
|
|
|
756
|
|
Other
liabilities
|
|
|
1,127
|
|
|
|
1,546
|
|
Liabilities of
Consolidated Funds
|
|
|
|
|
|
|
|
|
Notes payable of
consolidated CLO, at fair value
|
|
|
384,901
|
|
|
|
—
|
|
Due to
broker
|
|
|
24,462
|
|
|
|
—
|
|
Other
liabilities
|
|
|
2,121
|
|
|
|
101
|
|
Total
Liabilities
|
|
|
424,180
|
|
|
|
7,408
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Preferred Stock,
$0.0001 par value; 2,000,000 shares authorized; 0 shares issued
and
outstanding.
|
|
|
—
|
|
|
|
—
|
|
Class A Common Stock,
$0.0001 par value; 180,000,000 shares authorized; 13,900,917
and
13,870,917 shares issued and outstanding at December
31, 2016 and December 31, 2015,
respectively.
|
|
|
1
|
|
|
|
1
|
|
Class B Common Stock,
$0.000001 par value; 20,000,000 shares authorized; 20,000,000
shares
issued and outstanding at December 31, 2016 and
December 31, 2015.
|
|
|
—
|
|
|
|
—
|
|
Additional paid-in
capital
|
|
|
63,413
|
|
|
|
60,817
|
|
Retained earnings
(Accumulated deficit)
|
|
|
(18,965)
|
|
|
|
(13,805)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(70)
|
|
|
|
158
|
|
Total stockholders'
equity, ZAIS Group Holdings, Inc.
|
|
|
44,379
|
|
|
|
47,171
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
22,258
|
|
|
|
23,716
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
23,328
|
|
|
|
14,916
|
|
Total
Equity
|
|
|
89,965
|
|
|
|
85,803
|
|
Total Liabilities
and Equity
|
|
$
|
514,145
|
|
|
$
|
93,211
|
|
ZAIS GROUP
HOLDINGS, INC. AND SUBSIDIARIES
|
|
Consolidated
Statements of Comprehensive Income (Loss)
|
(Dollars in
thousands, except share and per share amounts)
|
|
|
|
Three
Months Ended
December 31,
2016
|
|
|
Three
Months Ended
December 31,
2015
|
|
|
Year Ended
December 31,
2016
|
|
|
Year Ended
December 31,
2015
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
11,221
|
|
|
$
|
3,793
|
|
|
$
|
22,015
|
|
|
$
|
15,802
|
|
Incentive
income
|
|
|
5,437
|
|
|
|
1,140
|
|
|
|
9,346
|
|
|
|
7,131
|
|
Other
revenues
|
|
|
78
|
|
|
|
80
|
|
|
|
316
|
|
|
|
298
|
|
Income of Consolidated
Funds
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total
Revenues
|
|
|
16,736
|
|
|
|
5,013
|
|
|
|
31,677
|
|
|
|
23,231
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
7,466
|
|
|
|
6,552
|
|
|
|
31,380
|
|
|
|
26,971
|
|
General,
administrative and other
|
|
|
3,140
|
|
|
|
3,593
|
|
|
|
12,263
|
|
|
|
17,064
|
|
Depreciation and
amortization
|
|
|
61
|
|
|
|
77
|
|
|
|
267
|
|
|
|
730
|
|
Expenses of
Consolidated Funds
|
|
|
18
|
|
|
|
206
|
|
|
|
82
|
|
|
|
206
|
|
Total
Expenses
|
|
|
10,685
|
|
|
|
10,428
|
|
|
|
43,992
|
|
|
|
44,971
|
|
Other income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
190
|
|
|
|
(2)
|
|
|
|
273
|
|
|
|
32
|
|
Other income
(expense)
|
|
|
17
|
|
|
|
59
|
|
|
|
762
|
|
|
|
147
|
|
Impairment loss on
goodwill
|
|
|
—
|
|
|
|
(2,655)
|
|
|
|
—
|
|
|
|
(2,655)
|
|
Net gains (losses) of
Consolidated
Funds' investments
|
|
|
525
|
|
|
|
509
|
|
|
|
8,333
|
|
|
|
509
|
|
Net gain (loss) on
beneficial interest of
collateralized financing entity
|
|
|
(842)
|
|
|
|
—
|
|
|
|
(842)
|
|
|
|
—
|
|
Total Other Income
(Loss)
|
|
|
(110)
|
|
|
|
(2,089)
|
|
|
|
8,526
|
|
|
|
(1,967)
|
|
Income (loss)
before income taxes
|
|
|
5,941
|
|
|
|
(7,504)
|
|
|
|
(3,789)
|
|
|
|
(23,707)
|
|
Income tax (benefit)
expense
|
|
|
7
|
|
|
|
4,267
|
|
|
|
(5)
|
|
|
|
155
|
|
Consolidated net
income (loss), net of tax
|
|
|
5,934
|
|
|
|
(11,771)
|
|
|
|
(3,784)
|
|
|
|
(23,862)
|
|
Other comprehensive
income (loss), net of
tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(81)
|
|
|
|
(85)
|
|
|
|
(343)
|
|
|
|
238
|
|
Total Comprehensive
Income (Loss)
|
|
$
|
5,853
|
|
|
$
|
(11,856)
|
|
|
$
|
(4,127)
|
|
|
$
|
(23,624)
|
|
Allocation of
Consolidated Net Income
(Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in Consolidated
Funds
|
|
$
|
(183)
|
|
|
$
|
149
|
|
|
$
|
3,505
|
|
|
$
|
149
|
|
Stockholders' equity,
ZAIS Group
Holdings, Inc.
|
|
|
4,036
|
|
|
|
(9,468)
|
|
|
|
(5,160)
|
|
|
|
(13,805)
|
|
Non-controlling
interests in ZAIS Group
Parent, LLC
|
|
|
2,081
|
|
|
|
(2,452)
|
|
|
|
(2,129)
|
|
|
|
(10,206)
|
|
|
|
$
|
5,934
|
|
|
$
|
(11,771)
|
|
|
$
|
(3,784)
|
|
|
$
|
(23,862)
|
|
Allocation of
Total Comprehensive
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in Consolidated
Funds
|
|
$
|
(183)
|
|
|
$
|
149
|
|
|
$
|
3,505
|
|
|
$
|
149
|
|
Stockholders' equity,
ZAIS Group
Holdings, Inc.
|
|
|
3,982
|
|
|
|
(9,525)
|
|
|
|
(5,388)
|
|
|
|
(13,647)
|
|
Non-controlling
interests in ZAIS Group
Parent, LLC
|
|
|
2,054
|
|
|
|
(2,480)
|
|
|
|
(2,244)
|
|
|
|
(10,126)
|
|
|
|
$
|
5,853
|
|
|
$
|
(11,856)
|
|
|
$
|
(4,127)
|
|
|
$
|
(23,624)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (Loss), net of
tax per Class A common share
applicable to ZAIS Group Holdings,
Inc. – Basic
|
|
$
|
0.29
|
|
|
$
|
(0.68)
|
|
|
$
|
(0.37)
|
|
|
$
|
(1.26)
|
|
Consolidated Net
Income (Loss), net of
tax per Class A common share
applicable to ZAIS Group Holdings,
Inc. – Diluted
|
|
$
|
0.29
|
|
|
$
|
(0.68)
|
|
|
$
|
(0.37)
|
|
|
$
|
(1.37)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of Class A
common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
13,900,917
|
|
|
|
13,870,917
|
|
|
|
13,891,245
|
|
|
|
10,982,726
|
(1)
|
Diluted
|
|
|
21,033,275
|
|
|
|
20,870,917
|
(1)
|
|
|
20,891,245
|
|
|
|
17,982,726
|
(1)
|
|
|
|
(1)
Pro-rated based on the portion of the
period preceding and following the Business
Combination
|
The following supplemental financial information illustrates the
consolidating effects of the Consolidated Funds on the Company's
financial position and results of operations:
|
|
At December 31,
2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in thousands
)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
38,712
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,712
|
|
Income and fees
receivable
|
|
|
8,805
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,805
|
|
Investments, at fair
value
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Investments in
affiliates, at fair value
|
|
|
29,554
|
|
|
|
—
|
|
|
|
(24,281)
|
|
|
|
5,273
|
|
Due from related
parties
|
|
|
734
|
|
|
|
—
|
|
|
|
—
|
|
|
|
734
|
|
Property and
equipment, net
|
|
|
274
|
|
|
|
—
|
|
|
|
—
|
|
|
|
274
|
|
Prepaid
expenses
|
|
|
906
|
|
|
|
—
|
|
|
|
—
|
|
|
|
906
|
|
Other
assets
|
|
|
348
|
|
|
|
—
|
|
|
|
—
|
|
|
|
348
|
|
Assets of Consolidated
Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
—
|
|
|
|
37,080
|
|
|
|
—
|
|
|
|
37,080
|
|
Investments, at fair
value
|
|
|
—
|
|
|
|
423,871
|
|
|
|
(19,506)
|
|
|
|
404,365
|
|
Due from
broker
|
|
|
—
|
|
|
|
16,438
|
|
|
|
—
|
|
|
|
16,438
|
|
Other
assets
|
|
|
—
|
|
|
|
1,254
|
|
|
|
(44)
|
|
|
|
1,210
|
|
Total
Assets
|
|
$
|
79,333
|
|
|
$
|
478,643
|
|
|
$
|
(43,831)
|
|
|
$
|
514,145
|
|
Liabilities, and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
1,263
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,263
|
|
Compensation
payable
|
|
|
7,836
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,836
|
|
Due to related
parties
|
|
|
31
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
Fees
payable
|
|
|
2,439
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,439
|
|
Other
liabilities
|
|
|
1,127
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,127
|
|
Liabilities of
Consolidated Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable of
Consolidated CLO
|
|
|
—
|
|
|
|
404,407
|
|
|
|
(19,506)
|
|
|
|
384,901
|
|
Due to
broker
|
|
|
—
|
|
|
|
24,462
|
|
|
|
—
|
|
|
|
24,462
|
|
Other
liabilities
|
|
|
—
|
|
|
|
2,165
|
|
|
|
(44)
|
|
|
|
2,121
|
|
Total
Liabilities
|
|
|
12,696
|
|
|
|
431,034
|
|
|
|
(19,550)
|
|
|
|
424,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Class A Common
Stock
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Class B Common
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Additional
paid-in-capital
|
|
|
63,413
|
|
|
|
—
|
|
|
|
—
|
|
|
|
63,413
|
|
Retained earnings
(Accumulated deficit)
|
|
|
(18,965)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(18,965)
|
|
Accumulated other comprehensive income
(loss)
|
|
|
(70)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(70)
|
|
Total stockholders'
equity, ZAIS Group Holdings, Inc.
|
|
|
44,379
|
|
|
|
—
|
|
|
|
—
|
|
|
|
44,379
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
22,258
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22,258
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
—
|
|
|
|
47,609
|
|
|
|
(24,281)
|
|
|
|
23,328
|
|
Total Equity
|
|
|
66,637
|
|
|
|
47,609
|
|
|
|
(24,281)
|
|
|
|
89,965
|
|
Total Liabilities
and Equity
|
|
$
|
79,333
|
|
|
$
|
478,643
|
|
|
$
|
(43,831)
|
|
|
$
|
514,145
|
|
|
|
At December 31,
2015
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in thousands
)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
44,351
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44,351
|
|
Income and fees
receivable
|
|
|
2,529
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,529
|
|
Investments, at fair
value
|
|
|
8,169
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,169
|
|
Investments in
affiliates, at fair value
|
|
|
20,767
|
|
|
|
—
|
|
|
|
(15,525)
|
|
|
|
5,242
|
|
Due from related
parties
|
|
|
748
|
|
|
|
—
|
|
|
|
—
|
|
|
|
748
|
|
Property and
equipment, net
|
|
|
544
|
|
|
|
—
|
|
|
|
—
|
|
|
|
544
|
|
Prepaid
expenses
|
|
|
776
|
|
|
|
—
|
|
|
|
—
|
|
|
|
776
|
|
Other
assets
|
|
|
310
|
|
|
|
—
|
|
|
|
—
|
|
|
|
310
|
|
Assets of Consolidated
Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
—
|
|
|
|
33
|
|
|
|
—
|
|
|
|
33
|
|
Investments, at fair
value
|
|
|
—
|
|
|
|
30,509
|
|
|
|
—
|
|
|
|
30,509
|
|
Total
Assets
|
|
$
|
78,194
|
|
|
$
|
30,542
|
|
|
$
|
(15,525)
|
|
|
$
|
93,211
|
|
Liabilities,
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
1,255
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,255
|
|
Compensation
payable
|
|
|
3,575
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,575
|
|
Due to related
parties
|
|
|
175
|
|
|
|
—
|
|
|
|
—
|
|
|
|
175
|
|
Fees
payable
|
|
|
756
|
|
|
|
—
|
|
|
|
—
|
|
|
|
756
|
|
Other
liabilities
|
|
|
1,546
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,546
|
|
Liabilities of
Consolidated Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
—
|
|
|
|
101
|
|
|
|
—
|
|
|
|
101
|
|
Total
Liabilities
|
|
|
7,307
|
|
|
|
101
|
|
|
|
—
|
|
|
|
7,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Class A Common
Stock
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Class B Common
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Additional
paid-in-capital
|
|
|
60,817
|
|
|
|
—
|
|
|
|
—
|
|
|
|
60,817
|
|
Retained earnings
(Accumulated deficit)
|
|
|
(13,805)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(13,805)
|
|
Accumulated other comprehensive income
(loss)
|
|
|
158
|
|
|
|
—
|
|
|
|
—
|
|
|
|
158
|
|
Total stockholders'
equity, ZAIS Group Holdings, Inc.
|
|
|
47,171
|
|
|
|
—
|
|
|
|
—
|
|
|
|
47,171
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
23,716
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,716
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
—
|
|
|
|
30,441
|
|
|
|
(15,525)
|
|
|
|
14,916
|
|
Total Equity
|
|
|
70,887
|
|
|
|
30,441
|
|
|
|
(15,525)
|
|
|
|
85,803
|
|
Total Liabilities
and Equity
|
|
$
|
78,194
|
|
|
$
|
30,542
|
|
|
$
|
(15,525)
|
|
|
$
|
93,211
|
|
|
|
Three months Ended
December 31, 2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in thousands
)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
11,258
|
|
|
$
|
—
|
|
|
$
|
(37)
|
|
|
$
|
11,221
|
|
Incentive
income
|
|
|
5,437
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,437
|
|
Other
revenues
|
|
|
78
|
|
|
|
—
|
|
|
|
—
|
|
|
|
78
|
|
Income of Consolidated
Funds
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total
Revenues
|
|
|
16,773
|
|
|
|
—
|
|
|
|
(37)
|
|
|
|
16,736
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
7,466
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,466
|
|
General,
administrative and other
|
|
|
3,140
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,140
|
|
Depreciation and
amortization
|
|
|
61
|
|
|
|
—
|
|
|
|
—
|
|
|
|
61
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
55
|
|
|
|
(37)
|
|
|
|
18
|
|
Total
Expenses
|
|
|
10,667
|
|
|
|
55
|
|
|
|
(37)
|
|
|
|
10,685
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
—
|
|
|
|
—
|
|
|
|
190
|
|
|
|
190
|
|
Other income
(expense)
|
|
|
17
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
(316)
|
|
|
|
841
|
|
|
|
525
|
|
Net gain (loss) on
beneficial interest of collateralized
financing entity
|
|
|
—
|
|
|
|
—
|
|
|
|
(842)
|
|
|
|
(842)
|
|
Total Other Income
(Loss)
|
|
|
17
|
|
|
|
(316)
|
|
|
|
189
|
|
|
|
(110)
|
|
Income (loss) before
income taxes
|
|
|
6,123
|
|
|
|
(371)
|
|
|
|
189
|
|
|
|
5,941
|
|
Income tax (benefit)
expense
|
|
|
7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
Consolidated net
income (loss), net of tax
|
|
|
6,116
|
|
|
|
(371)
|
|
|
|
189
|
|
|
|
5,934
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Foreign currency
translation adjustment
|
|
|
(81)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(81)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
6,035
|
|
|
$
|
(371)
|
|
|
$
|
189
|
|
|
$
|
5,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months Ended
December 31, 2015
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in thousands
)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
3,793
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,793
|
|
Incentive
income
|
|
|
1,140
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,140
|
|
Other
revenues
|
|
|
80
|
|
|
|
—
|
|
|
|
—
|
|
|
|
80
|
|
Income of Consolidated
Funds
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total
Revenues
|
|
|
5,013
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,013
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
6,552
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,552
|
|
General,
administrative and other
|
|
|
3,593
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,593
|
|
Depreciation and
amortization
|
|
|
77
|
|
|
|
—
|
|
|
|
—
|
|
|
|
77
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
206
|
|
|
|
—
|
|
|
|
206
|
|
Total
Expenses
|
|
|
10,222
|
|
|
|
206
|
|
|
|
—
|
|
|
|
10,428
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
152
|
|
|
|
—
|
|
|
|
(154)
|
|
|
|
(2)
|
|
Other income
(expense)
|
|
|
59
|
|
|
|
—
|
|
|
|
—
|
|
|
|
59
|
|
Impairment loss on
goodwill
|
|
|
(2,655)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,655)
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
509
|
|
|
|
—
|
|
|
|
509
|
|
Net gain (loss) on
beneficial interest of collateralized
financing entity
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total Other Income
(Loss)
|
|
|
(2,444)
|
|
|
|
509
|
|
|
|
(154)
|
|
|
|
(2,089)
|
|
Income (loss) before
income taxes
|
|
|
(7,653)
|
|
|
|
303
|
|
|
|
(154)
|
|
|
|
(7,504)
|
|
Income tax (benefit)
expense
|
|
|
4,267
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,267
|
|
Consolidated net
income (loss), net of tax
|
|
|
(11,920)
|
|
|
|
303
|
|
|
|
(154)
|
|
|
|
(11,771)
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Foreign currency
translation adjustment
|
|
|
(85)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(85)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(12,005)
|
|
|
$
|
303
|
|
|
$
|
(154)
|
|
|
$
|
(11,856)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in thousands
)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
22,271
|
|
|
$
|
—
|
|
|
$
|
(256)
|
|
|
$
|
22,015
|
|
Incentive
income
|
|
|
9,346
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,346
|
|
Other
revenues
|
|
|
316
|
|
|
|
—
|
|
|
|
—
|
|
|
|
316
|
|
Income of Consolidated
Funds
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total
Revenues
|
|
|
31,933
|
|
|
|
—
|
|
|
|
(256)
|
|
|
|
31,677
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
31,380
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31,380
|
|
General,
administrative and other
|
|
|
12,263
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12,263
|
|
Depreciation and
amortization
|
|
|
267
|
|
|
|
—
|
|
|
|
—
|
|
|
|
267
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
338
|
|
|
|
(256)
|
|
|
|
82
|
|
Total
Expenses
|
|
|
43,910
|
|
|
|
338
|
|
|
|
(256)
|
|
|
|
43,992
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
3,921
|
|
|
|
—
|
|
|
|
(3,648)
|
|
|
|
273
|
|
Other income
(expense)
|
|
|
762
|
|
|
|
—
|
|
|
|
—
|
|
|
|
762
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
7,491
|
|
|
|
842
|
|
|
|
8,333
|
|
Net gain (loss) on
beneficial interest of collateralized
financing entity
|
|
|
—
|
|
|
|
—
|
|
|
|
(842)
|
|
|
|
(842)
|
|
Total Other Income
(Loss)
|
|
|
4,683
|
|
|
|
7,491
|
|
|
|
(3,648)
|
|
|
|
8,526
|
|
Income (loss) before
income taxes
|
|
|
(7,294)
|
|
|
|
7,153
|
|
|
|
(3,648)
|
|
|
|
(3,789)
|
|
Income tax (benefit)
expense
|
|
|
(5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5)
|
|
Consolidated net
income (loss), net of tax
|
|
|
(7,289)
|
|
|
|
7,153
|
|
|
|
(3,648)
|
|
|
|
(3,784)
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(343)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(343)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(7,632)
|
|
|
$
|
7,153
|
|
|
$
|
(3,648)
|
|
|
$
|
(4,127)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2015
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in thousands
)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
15,802
|
|
|
$
|
—
|
|
|
$
|
|
|
|
$
|
15,802
|
|
Incentive
income
|
|
|
7,131
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,131
|
|
Other
revenues
|
|
|
298
|
|
|
|
—
|
|
|
|
—
|
|
|
|
298
|
|
Income of Consolidated
Funds
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total
Revenues
|
|
|
23,231
|
|
|
|
—
|
|
|
|
|
|
|
|
23,231
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
26,971
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26,971
|
|
General,
administrative and other
|
|
|
17,064
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,064
|
|
Depreciation and
amortization
|
|
|
730
|
|
|
|
—
|
|
|
|
—
|
|
|
|
730
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
206
|
|
|
|
—
|
|
|
|
206
|
|
Total
Expenses
|
|
|
44,765
|
|
|
|
206
|
|
|
|
—
|
|
|
|
44,971
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
186
|
|
|
|
—
|
|
|
|
(154)
|
|
|
|
32
|
|
Other income
(expense)
|
|
|
147
|
|
|
|
—
|
|
|
|
—
|
|
|
|
147
|
|
Impairment loss on
goodwill
|
|
|
(2,655)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,655)
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
509
|
|
|
|
—
|
|
|
|
509
|
|
Total Other Income
(Loss)
|
|
|
(2,322)
|
|
|
|
509
|
|
|
|
(154)
|
|
|
|
(1,967)
|
|
Income (loss) before
income taxes
|
|
|
(23,856)
|
|
|
|
303
|
|
|
|
(154)
|
|
|
|
(23,707)
|
|
Income tax (benefit)
expense
|
|
|
155
|
|
|
|
—
|
|
|
|
—
|
|
|
|
155
|
|
Consolidated net
income (loss), net of tax
|
|
|
(24,011)
|
|
|
|
303
|
|
|
|
(154)
|
|
|
|
(23,862)
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
238
|
|
|
|
—
|
|
|
|
—
|
|
|
|
238
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(23,773)
|
|
|
$
|
303
|
|
|
$
|
(154)
|
|
|
$
|
(23,624)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present the reconciliation of the Company's
consolidated GAAP net income (loss), net of tax to its non-GAAP
financial measure of net income (loss) (excluding Consolidated
Funds of ZAIS Group) for the periods presented in this Earnings
Release.
|
|
Three Months
Ended December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
(Dollars in
thousands)
|
|
Consolidated net income
(loss), net of tax (GAAP
Net Income (Loss))
|
|
$
|
5,934
|
|
|
$
|
(11,771)
|
|
|
$
|
(3,784)
|
|
|
$
|
(23,862)
|
|
Addback: Elimination of
Management fee income
|
|
|
37
|
|
|
|
—
|
|
|
|
256
|
|
|
|
—
|
|
Addback: Elimination of
net gain (loss) on
investments
|
|
|
(190)
|
|
|
|
154
|
|
|
|
3,684
|
|
|
|
154
|
|
Addback: Expenses of
Consolidated Funds
|
|
|
18
|
|
|
|
206
|
|
|
|
82
|
|
|
|
206
|
|
Net (gain) loss on
Consolidated Funds'
investments
|
|
|
(525)
|
|
|
|
(509)
|
|
|
|
(8,333)
|
|
|
|
(509)
|
|
Net gain (loss) on
beneficial interest of
collateralized financing entity
|
|
|
842
|
|
|
|
—
|
|
|
|
842
|
|
|
|
—
|
|
Net income (loss)
(excluding Consolidated Funds
of ZAIS Group) – Non-GAAP
|
|
$
|
6,116
|
|
|
$
|
(11,920)
|
|
|
$
|
(7,289)
|
|
|
$
|
(24,011)
|
|
The following tables present the reconciliations of the
Company's GAAP pre-tax consolidated net income (loss) to its
non-GAAP financial measures of Adjusted EBITDA for the periods
presented in this Earnings Release.
|
|
Three Months
Ended December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
(Dollars in
thousands)
|
Adjusted
EBITDA - Non GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax Consolidated
Net Income (loss) (GAAP pre-tax net
income (loss))
|
|
$
|
5,941
|
|
|
$
|
(7,504)
|
|
|
$
|
(3,789)
|
|
|
$
|
(23,707)
|
|
Addback: Elimination of
Management fee income
|
|
|
37
|
|
|
|
—
|
|
|
|
256
|
|
|
|
—
|
|
Addback: Elimination of
Net gain (loss) on investments
|
|
|
(190)
|
|
|
|
154
|
|
|
|
3,648
|
|
|
|
154
|
|
Addback: Expenses of
Consolidated Funds
|
|
|
18
|
|
|
|
206
|
|
|
|
82
|
|
|
|
206
|
|
Net (gain) loss on
Consolidated Funds' investments
|
|
|
(525)
|
|
|
|
(509)
|
|
|
|
(8,333)
|
|
|
|
(509)
|
|
Net gain (loss) on
beneficial interest of collateralized financing
entity
|
|
|
842
|
|
|
|
—
|
|
|
|
842
|
|
|
|
—
|
|
Addback: Compensation
attributable to Income Unit Plan
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
198
|
|
Addback: Compensation
attributable to equity compensation
|
|
|
1,138
|
|
|
|
1,574
|
|
|
|
4,089
|
|
|
|
4,862
|
|
Addback: Severance
costs
|
|
|
206
|
|
|
|
29
|
|
|
|
995
|
|
|
|
1,116
|
|
Addback: Impairment of
Goodwill
|
|
|
—
|
|
|
|
2,655
|
|
|
|
—
|
|
|
|
2,655
|
|
Reclassification of
incentive compensation
|
|
|
—
|
|
|
|
(33)
|
|
|
|
—
|
|
|
|
(33)
|
|
Addback: Depreciation
and amortization
|
|
|
61
|
|
|
|
77
|
|
|
|
267
|
|
|
|
730
|
|
Adjusted EBITDA –
Non-GAAP
|
|
$
|
7,528
|
|
|
$
|
(3,351)
|
|
|
$
|
(1,943)
|
|
|
$
|
(14,328)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABOUT ZAIS GROUP HOLDINGS, INC.
ZAIS (NASDAQ:
ZAIS) owns a majority interest in, and is the managing member of,
ZGP. ZGP is the sole member of ZAIS Group, an investment advisory
and asset management firm focused on specialized credit strategies
with approximately $3.444 billion of
assets under management as of December 31,
2016. Based in Red Bank, New
Jersey with operations in London, ZAIS Group employs professionals
across investment management, client relations, information
technology, analytics, finance, law, compliance, risk management
and operations. To learn more,
visit www.zaisgroupholdings.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains statements that constitute
"forward-looking statements," as such term is defined in Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and such
statements are intended to be covered by the safe harbor provided
by the same. These statements are generally identified by the
use of words such as "outlook," "believe," "expect," "potential,"
"continue," "may," "will," "should," "could," "would," "seek,"
"approximately," "predict," "intend," "plan," "estimate,"
"anticipate," "opportunity," "pipeline," "comfortable," "assume,"
"remain," "maintain," "sustain," "achieve" or the negative version
of those words or other comparable words. These
statements are based on management's current expectations and
beliefs and are subject to a number of trends and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements; the Company can give
no assurance that its expectations will be attained. Factors that
could cause actual results to differ materially from the Company's
expectations include, but are not limited to: the inability of the
Company to realize the anticipated benefits of the Business
Combination, which may be affected by, among other things,
competition, the ability of the Company to grow and manage growth
profitably, and retain its management and key employees;
the ability to rationalize our expense structure and
specifically to exit the residential whole loan related businesses
in an orderly fashion, or at all; the outcome of the strategic
review of the Company's business and availability of suitable
strategic options; the ability of the Company to negotiate and
enter into an agreement for a potential sale, business combination,
going private or other strategic transaction; the ability of the
Company to consummate any potential strategic transaction and to
realize any anticipated benefits of such transaction; the
outcome of any legal proceedings that may be instituted against the
Company or others; the inability to continue to be listed on the
NASDAQ Stock Market; operational expenses and costs related to
being a public company; changes in political, economic or industry
conditions, the interest rate environment or financial and capital
markets, which could result in changes in demand for products or
services or in the value of assets under management; the relative
and absolute investment performance of advised or sponsored
investment products; the availability of suitable investment
opportunities; changes in interest rates; changes in the yield
curve; changes in prepayment rates; the availability and terms of
financing; conditions in the market for mortgage-related
investments; the impact of capital improvement projects; the impact
of future acquisitions or divestitures; the impact, extent and
timing of technological changes and the adequacy of intellectual
property protection; the impact of legislative and regulatory
actions and reforms and regulatory, supervisory or enforcement
actions of government agencies relating to the Company; terrorist
activities and international hostilities, which may adversely
affect the general economy, financial and capital markets, specific
industries, and the Company; the ability to attract and retain
highly talented professionals; the impact of changes to tax
legislation and, generally, the tax position of the Company;
legislative and regulatory changes that could adversely affect the
business of the Company; and other factors, including those set
forth in the Risk Factors section of the Company's Annual Report on
Form 10-K and other reports filed by the Company with the
Securities and Exchange Commission (the "SEC"), copies of which are
available on the SEC's website, www.sec.gov. The Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release, except as required by
law.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/zais-group-holdings-inc-reports-fourth-quarter-and-full-year-2016-results-300428913.html
SOURCE ZAIS Group Holdings, Inc.