RED BANK, N.J., Aug. 14, 2017 /PRNewswire/ -- ZAIS Group
Holdings, Inc. (NASDAQ: ZAIS) ("ZAIS"), today reported financial
results for the three and six months ended June 30, 2017. 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,
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.
SECOND QUARTER 2017 HIGHLIGHTS
A summary of the Company's results for the three and six months
ended June 30, 2017 and June 30, 2016 are set forth below. All
dollar amounts are presented in millions, with the exception of
figures presented on a per share basis.
|
Three Months
Ended
|
Six Months
Ended
|
June
30,
2017
|
June
30,
2016
|
June
30,
2017
|
June
30,
2016
|
U.S.
GAAP
|
|
|
|
|
Net
income/(loss)
|
$0.4
|
$(4.9)
|
$(5.0)
|
$(11.3)
|
Net Income/(loss) per
diluted weighted average share outstanding applicable to ZAIS Group
Holdings, Inc.
|
$(0.05)
|
$(0.29)
|
$(0.34)
|
$(0.64)
|
Net
Income/(loss)before income taxes
|
$0.4
|
$(4.9)
|
$(5.0)
|
$(11.3)
|
Non-GAAP
|
|
|
|
|
Net income/(loss)
(excluding Consolidated Funds of ZAIS Group)
|
$(1.0)
|
$(6.0)
|
$(7.2)
|
$(13.1)
|
Net income/(loss)
(excluding Consolidated Funds of ZAIS Group) per diluted weighted
average share outstanding
|
$(0.05)
|
$(0.29)
|
$(0.34)
|
$(0.64)
|
Adjusted
EBITDA
|
$(0.8)
|
$(4.5)
|
$(5.9)
|
$(10.5)
|
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.
CONSOLIDATED GAAP RESULTS
Operating Results – Second Quarter Ended June 30, 2017
The Company recorded GAAP net income for the three months ended
June 30, 2017 of $0.4 million compared with a GAAP net loss of
$(4.9) million for the three months
ended June 30, 2016. The
increase of $5.3 million in GAAP net
income was primarily driven by an increase in revenues of
$3.6 million, a decrease in expenses
of $1.5 million and an increase in
other income of $0.3 million.
The GAAP results include the results of funds and structured
financing entities which are consolidated by the Company (the
"Consolidated Funds").
Total revenues increased by $3.6
million primarily due to a $2.7
million increase in incentive income that was driven by an
increase of $2.6 million due to fees
which crystalized during the current quarter and an increase of
$0.1 million due to incentive fees
realized upon the liquidation of a ZAIS managed CLO. Revenues
also increased due to a $0.4 million
increase in reimbursement revenue relating to the reimbursement
from certain ZAIS Managed Entities for research and data services
expenses incurred by ZAIS Group and paid directly to vendors by
ZAIS Group and a $0.4 million
increase in income of Consolidated Funds related to ZAIS Zephyr A-6
LP's ("Zephyr A-6") investments in ZAIS CLO 6, Limited.
Total expenses decreased by $1.5
million primarily due to a $2.4
million decrease in compensation and benefits offset by a
$0.9 million increase in general,
administrative and other expenses. Compensation and benefits
decreased due to $1.0 million
decrease in salaries, bonuses, and associated payroll taxes and
other employee benefits primarily due to a reduction in force which
occurred in 2016 and a $1.3 million
decrease in equity compensation expense relating to the reduction
in outstanding equity compensation units resulting from the
cancellation in December 2016 of all
of ZGP's Class B-0 Units held by certain employees in consideration
of the receipt by such employees in substitution therefor (as
elected by each employee) of RSUs (which fully vested on
March 17, 2017) or the right to
receive cash (which was paid on March
22, 2017). General, administrative and other expenses
increased by $0.9 million primarily
due to an increase of $0.4 million in
expenses relating to research and data services borne by ZAIS Group
and paid directly by ZAIS Group to vendors which are reimbursable
from certain ZAIS Managed Entities, an increase of $0.2 million relating to legal fees, an increase
of $0.2 million in information
technology costs primarily due to the relocation of servers to an
offsite co-location and an increase of $0.2
million in accounting fees, all offset by a net decrease in
other general and administrative costs.
Other income increased by $0.3
million primarily due to a $0.9
million increase in net gain (loss) on Zephyr A-6's
investment in ZAIS CLO 5, Limited, which is a Consolidated Fund,
offset by a $0.6 million decrease in
net gain on Consolidated Funds' investments related to Zephyr A-6,
also a Consolidated Fund.
Operating Results – Six Months Ended June
30, 2017
The Company recorded GAAP net loss for the six months ended
June 30, 2017 of $(5.0) million compared with a GAAP net loss of
$(11.3) million for the six months
ended June 30, 2016. The
decrease of $6.3 million in GAAP net
loss was primarily driven by an increase in revenues of
$3.8 million, a decrease in expenses
of $2.6 million offset by a decrease
in other income of $0.1
million.
CONSOLIDATED NON-GAAP RESULTS
Please see the discussion of "Non-GAAP Financial Measures",
including the definitions of net income (loss) (excluding
Consolidated Funds of ZAIS Group) and Adjusted EBITDA, and
reconciliations of such Non-GAAP financial measures to the
respective 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 June 30, 2017, the Company
had cash and cash equivalents, on an unconsolidated basis, of
$17.0 million and no debt
obligations.
SECOND QUARTER 2017 SUPPLEMENTAL INFORMATION
The Company's Second Quarter 2017 Supplemental Information –
June 30, 2017, 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 (Unaudited)
|
(Dollars in
thousands, except share amounts)
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
16,970
|
|
|
$
|
38,712
|
|
Income and
fees receivable
|
|
|
1,869
|
|
|
|
8,805
|
|
Investments in
affiliates, at fair value
|
|
|
10,288
|
|
|
|
5,273
|
|
Due from
related parties
|
|
|
1,101
|
|
|
|
734
|
|
Property and
equipment, net
|
|
|
319
|
|
|
|
274
|
|
Prepaid
expenses
|
|
|
1,907
|
|
|
|
906
|
|
Other
assets
|
|
|
385
|
|
|
|
348
|
|
Assets of
Consolidated Funds
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
13,416
|
|
|
|
37,080
|
|
Investments,
at fair value
|
|
|
446,707
|
|
|
|
404,365
|
|
Due from
broker
|
|
|
12,095
|
|
|
|
16,438
|
|
Other
assets
|
|
|
1,007
|
|
|
|
1,210
|
|
Total
Assets
|
|
$
|
506,064
|
|
|
$
|
514,145
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
—
|
|
|
$
|
1,263
|
|
Compensation
payable
|
|
|
4,594
|
|
|
|
7,836
|
|
Due to related
parties
|
|
|
31
|
|
|
|
31
|
|
Fees
payable
|
|
|
—
|
|
|
|
2,439
|
|
Other
liabilities
|
|
|
1,147
|
|
|
|
1,127
|
|
Liabilities of
Consolidated Funds
|
|
|
|
|
|
|
|
|
Notes payable
of consolidated CLO, at fair value
|
|
|
384,519
|
|
|
|
384,901
|
|
Due to
broker
|
|
|
21,974
|
|
|
|
24,462
|
|
Other
liabilities
|
|
|
2,579
|
|
|
|
2,121
|
|
Total
Liabilities
|
|
|
414,844
|
|
|
|
424,180
|
|
|
|
|
|
|
|
|
|
|
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; 14,480,782 and
13,900,917 shares issued and outstanding at June 30, 2017 and
December 31, 2016, respectively.
|
|
|
1
|
|
|
|
1
|
|
Class B Common Stock,
$0.000001 par value; 20,000,000 shares authorized; 20,000,000
shares issued and outstanding.
|
|
|
—
|
|
|
|
—
|
|
Additional
paid-in capital
|
|
|
64,210
|
|
|
|
63,413
|
|
Retained
earnings (Accumulated deficit)
|
|
|
(23,779)
|
|
|
|
(18,965)
|
|
Accumulated
other comprehensive income (loss)
|
|
|
(44)
|
|
|
|
(70)
|
|
Total stockholders'
equity, ZAIS Group Holdings, Inc.
|
|
|
40,388
|
|
|
|
44,379
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
19,417
|
|
|
|
22,258
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
31,415
|
|
|
|
23,328
|
|
Total
Equity
|
|
|
91,220
|
|
|
|
89,965
|
|
Total Liabilities
and Equity
|
|
$
|
506,064
|
|
|
$
|
514,145
|
|
ZAIS GROUP
HOLDINGS, INC. AND SUBSIDIARIES
|
|
Consolidated
Statements of Comprehensive Income (Loss)
(Unaudited)
|
(Dollars in
thousands, except share and per share amounts)
|
|
|
|
Three
Months Ended
June 30,
|
|
|
Six
Months Ended
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
3,689
|
|
|
$
|
3,571
|
|
|
$
|
6,796
|
|
|
$
|
7,140
|
|
Incentive
income
|
|
|
2,884
|
|
|
|
143
|
|
|
|
3,181
|
|
|
|
295
|
|
Reimbursement
revenue
|
|
|
383
|
|
|
|
—
|
|
|
|
877
|
|
|
|
—
|
|
Other
revenues
|
|
|
77
|
|
|
|
79
|
|
|
|
170
|
|
|
|
159
|
|
Income of
Consolidated Funds
|
|
|
404
|
|
|
|
—
|
|
|
|
404
|
|
|
|
—
|
|
Total
Revenues
|
|
|
7,437
|
|
|
|
3,793
|
|
|
|
11,428
|
|
|
|
7,594
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
5,609
|
|
|
|
7,999
|
|
|
|
13,033
|
|
|
|
17,006
|
|
General,
administrative and other
|
|
|
3,879
|
|
|
|
2,950
|
|
|
|
7,548
|
|
|
|
6,160
|
|
Depreciation and
amortization
|
|
|
71
|
|
|
|
64
|
|
|
|
111
|
|
|
|
127
|
|
Expenses of
Consolidated Funds
|
|
|
30
|
|
|
|
29
|
|
|
|
73
|
|
|
|
48
|
|
Total
Expenses
|
|
|
9,589
|
|
|
|
11,042
|
|
|
|
20,765
|
|
|
|
23,341
|
|
Other income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
39
|
|
|
|
55
|
|
|
|
114
|
|
|
|
37
|
|
Other income
(expense)
|
|
|
32
|
|
|
|
87
|
|
|
|
16
|
|
|
|
692
|
|
Net gain (loss) of
Consolidated Funds' investments
|
|
|
1,607
|
|
|
|
2,176
|
|
|
|
2,714
|
|
|
|
3,693
|
|
Net gain (loss) on
beneficial interest of collateralized financing entity
|
|
|
909
|
|
|
|
—
|
|
|
|
1,498
|
|
|
|
—
|
|
Total Other Income
(Loss)
|
|
|
2,587
|
|
|
|
2,318
|
|
|
|
4,342
|
|
|
|
4,422
|
|
Income (loss)
before income taxes
|
|
|
435
|
|
|
|
(4,931)
|
|
|
|
(4,995)
|
|
|
|
(11,325)
|
|
Income tax (benefit)
expense
|
|
|
5
|
|
|
|
4
|
|
|
|
10
|
|
|
|
9
|
|
Consolidated net
income (loss), net of tax
|
|
|
430
|
|
|
|
(4,935)
|
|
|
|
(5,005)
|
|
|
|
(11,334)
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
9
|
|
|
|
(147)
|
|
|
|
39
|
|
|
|
(201)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
439
|
|
|
$
|
(5,082)
|
|
|
$
|
(4,966)
|
|
|
$
|
(11,535)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of
Consolidated Net Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in Consolidated Funds
|
|
$
|
1,397
|
|
|
$
|
1,052
|
|
|
$
|
2,207
|
|
|
$
|
1,786
|
|
Stockholders' equity,
ZAIS Group Holdings, Inc.
|
|
|
(652)
|
|
|
|
(4,076)
|
|
|
|
(4,814)
|
|
|
|
(8,910)
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
(315)
|
|
|
|
(1,911)
|
|
|
|
(2,398)
|
|
|
|
(4,210)
|
|
Total
Allocation of Consolidated Net Income (Loss), net of
tax
|
|
$
|
430
|
|
|
$
|
(4,935)
|
|
|
$
|
(5,005)
|
|
|
$
|
(11,334)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of
Total Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in Consolidated Funds
|
|
$
|
1,397
|
|
|
$
|
1,052
|
|
|
$
|
2,207
|
|
|
$
|
1,786
|
|
Stockholders' equity,
ZAIS Group Holdings, Inc.
|
|
|
(646)
|
|
|
|
(4,174)
|
|
|
|
(4, 788)
|
|
|
|
(9,044)
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
(312)
|
|
|
|
(1,960)
|
|
|
|
(2,385)
|
|
|
|
(4,277)
|
|
Total
Allocation of Total Comprehensive Income (Loss)
|
|
$
|
439
|
|
|
$
|
(5,082)
|
|
|
$
|
(4,966)
|
|
|
$
|
(11,535)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (Loss), net of tax per Class A common share applicable to
ZAIS Group Holdings, Inc. – Basic
|
|
$
|
(0.05)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.34)
|
|
|
$
|
(0.64)
|
|
Consolidated Net
Income (Loss), net of tax per Class A common share applicable to
ZAIS Group Holdings, Inc. – Diluted
|
|
$
|
(0.05)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.34)
|
|
|
$
|
(0.64)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of Class A common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,473,642
|
|
|
|
13,892,016
|
|
|
|
14,231,320
|
|
|
|
13,881,466
|
|
Diluted
|
|
|
21,473,642
|
|
|
|
20,892,016
|
|
|
|
21,231,320
|
|
|
|
20,881,466
|
|
The following supplemental financial information illustrates the
consolidating effects of the Consolidated Funds on the Company's
financial position and results of operations:
|
|
June 30,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
16,970
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16,970
|
|
Income and fees
receivable
|
|
|
2,198
|
|
|
|
—
|
|
|
|
(329)
|
|
|
|
1,869
|
|
Investments in
affiliates, at fair value
|
|
|
42,986
|
|
|
|
—
|
|
|
|
(32,698)
|
|
|
|
10,288
|
|
Due from related
parties
|
|
|
1,101
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,101
|
|
Property and
equipment, net
|
|
|
319
|
|
|
|
—
|
|
|
|
—
|
|
|
|
319
|
|
Prepaid
expenses
|
|
|
1,907
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,907
|
|
Other
assets
|
|
|
385
|
|
|
|
—
|
|
|
|
—
|
|
|
|
385
|
|
Assets of
Consolidated Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
—
|
|
|
|
13,416
|
|
|
|
—
|
|
|
|
13,416
|
|
Investments, at fair
value
|
|
|
—
|
|
|
|
459,416
|
|
|
|
(12,709)
|
|
|
|
446,707
|
|
Due from
broker
|
|
|
—
|
|
|
|
12,095
|
|
|
|
—
|
|
|
|
12,095
|
|
Other
assets
|
|
|
—
|
|
|
|
1,320
|
|
|
|
(313)
|
|
|
|
1,007
|
|
Total
Assets
|
|
$
|
65,866
|
|
|
|
486,247
|
|
|
|
(46,049)
|
|
|
|
506,064
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation
payable
|
|
$
|
4,594
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,594
|
|
Due to related
parties
|
|
|
31
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
Fees
payable
|
|
|
289
|
|
|
|
—
|
|
|
|
(289)
|
|
|
|
—
|
|
Other
liabilities
|
|
|
1,147
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,147
|
|
Liabilities of
Consolidated Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable of
Consolidated CLO
|
|
|
—
|
|
|
|
397,229
|
|
|
|
(12,710)
|
|
|
|
384,519
|
|
Due to
broker
|
|
|
—
|
|
|
|
21,974
|
|
|
|
—
|
|
|
|
21,974
|
|
Other
liabilities
|
|
|
—
|
|
|
|
2,930
|
|
|
|
(351)
|
|
|
|
2,579
|
|
Total
Liabilities
|
|
|
6,061
|
|
|
|
422,133
|
|
|
|
(13,350)
|
|
|
|
414,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Class A Common
Stock
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Class B Common
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Additional
paid-in-capital
|
|
|
64,210
|
|
|
|
—
|
|
|
|
—
|
|
|
|
64,210
|
|
Retained earnings
(Accumulated deficit)
|
|
|
(23,779)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23,779)
|
|
Accumulated other comprehensive income
(loss)
|
|
|
(44)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(44)
|
|
Total stockholders'
equity, ZAIS Group Holdings, Inc.
|
|
|
40,388
|
|
|
|
—
|
|
|
|
—
|
|
|
|
40,388
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
19,417
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,417
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
—
|
|
|
|
64,114
|
|
|
|
(32,699)
|
|
|
|
31,415
|
|
Total
Equity
|
|
|
59,805
|
|
|
|
64,114
|
|
|
|
(32,699)
|
|
|
|
91,220
|
|
Total Liabilities
and Equity
|
|
$
|
65,866
|
|
|
|
486,247
|
|
|
|
(46,049)
|
|
|
|
506,064
|
|
|
|
|
|
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 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
|
|
|
|
|
|
Three Months
Ended June 30,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
4,018
|
|
|
|
—
|
|
|
|
(329)
|
|
|
|
3,689
|
|
Incentive
income
|
|
|
2,884
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,884
|
|
Reimbursement
revenue
|
|
|
383
|
|
|
|
—
|
|
|
|
—
|
|
|
|
383
|
|
Other
revenues
|
|
|
77
|
|
|
|
—
|
|
|
|
—
|
|
|
|
77
|
|
Income of
Consolidated Funds
|
|
|
—
|
|
|
|
3,413
|
|
|
|
(3,009)
|
|
|
|
404
|
|
Total
Revenues
|
|
|
7,362
|
|
|
|
3,413
|
|
|
|
(3,338)
|
|
|
|
7,437
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
5,609
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,609
|
|
General,
administrative and other
|
|
|
4,169
|
|
|
|
—
|
|
|
|
(290)
|
|
|
|
3,879
|
|
Depreciation and
amortization
|
|
|
71
|
|
|
|
—
|
|
|
|
—
|
|
|
|
71
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
30
|
|
|
|
—
|
|
|
|
30
|
|
Total
Expenses
|
|
|
9,849
|
|
|
|
30
|
|
|
|
(290)
|
|
|
|
9,589
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
1,493
|
|
|
|
—
|
|
|
|
(1,454)
|
|
|
|
39
|
|
Other income
(expense)
|
|
|
32
|
|
|
|
—
|
|
|
|
—
|
|
|
|
32
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
(532)
|
|
|
|
2,139
|
|
|
|
1,607
|
|
Net gain (loss) on
beneficial interest of collateralized financing entity
|
|
|
—
|
|
|
|
—
|
|
|
|
909
|
|
|
|
909
|
|
Total Other Income
(Loss)
|
|
|
1,525
|
|
|
|
(532)
|
|
|
|
1,594
|
|
|
|
2,587
|
|
Income (loss)
before income taxes
|
|
|
(962)
|
|
|
|
2,851
|
|
|
|
(1,454)
|
|
|
|
435
|
|
Income tax (benefit)
expense
|
|
|
5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5
|
|
Consolidated net
income (loss), net of tax
|
|
|
(967)
|
|
|
|
2,851
|
|
|
|
(1,454)
|
|
|
|
430
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(958)
|
|
|
|
2,851
|
|
|
|
(1,454)
|
|
|
|
439
|
|
|
|
|
|
Three months
Ended June 30,
2016
|
|
|
|
ZAIS
|
|
|
Consolidated Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in
Thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
3,571
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,571
|
|
Incentive
income
|
|
|
143
|
|
|
|
—
|
|
|
|
—
|
|
|
|
143
|
|
Other
revenues
|
|
|
79
|
|
|
|
—
|
|
|
|
—
|
|
|
|
79
|
|
Total
Revenues
|
|
|
3,793
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,793
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
7,999
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,999
|
|
General,
administrative and other
|
|
|
2,950
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,950
|
|
Depreciation and
amortization
|
|
|
64
|
|
|
|
—
|
|
|
|
—
|
|
|
|
64
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
29
|
|
|
|
—
|
|
|
|
29
|
|
Total
Expenses
|
|
|
11,013
|
|
|
|
29
|
|
|
|
—
|
|
|
|
11,042
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
1,150
|
|
|
|
—
|
|
|
|
(1,095)
|
|
|
|
55
|
|
Other income
(expense)
|
|
|
87
|
|
|
|
—
|
|
|
|
—
|
|
|
|
87
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
2,176
|
|
|
|
—
|
|
|
|
2,176
|
|
Total Other Income
(Loss)
|
|
|
1,237
|
|
|
|
2,176
|
|
|
|
(1,095)
|
|
|
|
2,318
|
|
Income (loss)
before income taxes
|
|
|
(5,983)
|
|
|
|
2,147
|
|
|
|
(1,095)
|
|
|
|
(4,931)
|
|
Income tax (benefit)
expense
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
Consolidated net
income (loss), net of tax
|
|
|
(5,987)
|
|
|
|
2,147
|
|
|
|
(1,095)
|
|
|
|
(4,935)
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(147)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(147)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(6,134)
|
|
|
$
|
2,147
|
|
|
$
|
(1,095)
|
|
|
$
|
(5,082)
|
|
|
|
|
|
Six Months
Ended
June 30,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
7,125
|
|
|
|
—
|
|
|
|
(329)
|
|
|
|
6,796
|
|
Incentive
income
|
|
|
3,181
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,181
|
|
Reimbursement
revenue
|
|
|
877
|
|
|
|
—
|
|
|
|
—
|
|
|
|
877
|
|
Other
revenues
|
|
|
170
|
|
|
|
—
|
|
|
|
—
|
|
|
|
170
|
|
Income of
Consolidated Funds
|
|
|
—
|
|
|
|
3,618
|
|
|
|
(3,214)
|
|
|
|
404
|
|
Total
Revenues
|
|
|
11,353
|
|
|
|
3,618
|
|
|
|
(3,543)
|
|
|
|
11,428
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
13,033
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,033
|
|
General,
administrative and other
|
|
|
7,838
|
|
|
|
—
|
|
|
|
(290)
|
|
|
|
7,548
|
|
Depreciation and
amortization
|
|
|
111
|
|
|
|
—
|
|
|
|
—
|
|
|
|
111
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
73
|
|
|
|
—
|
|
|
|
73
|
|
Total
Expenses
|
|
|
20,982
|
|
|
|
73
|
|
|
|
(290)
|
|
|
|
20,765
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
2,411
|
|
|
|
—
|
|
|
|
(2,297)
|
|
|
|
114
|
|
Other income
(expense)
|
|
|
16
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
960
|
|
|
|
1,754
|
|
|
|
2,714
|
|
Net gain (loss) on
beneficial interest of collateralized financing entity
|
|
|
—
|
|
|
|
—
|
|
|
|
1,498
|
|
|
|
1,498
|
|
Total Other Income
(Loss)
|
|
|
2,427
|
|
|
|
960
|
|
|
|
955
|
|
|
|
4,342
|
|
Income (loss)
before income taxes
|
|
|
(7,202)
|
|
|
|
4,505
|
|
|
|
(2,298)
|
|
|
|
(4,995)
|
|
Income tax (benefit)
expense
|
|
|
10
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10
|
|
Consolidated net
income (loss), net of tax
|
|
|
(7,212)
|
|
|
|
4,505
|
|
|
|
(2,298)
|
|
|
|
(5,005)
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
39
|
|
|
|
—
|
|
|
|
—
|
|
|
|
39
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(7,173)
|
|
|
|
4,505
|
|
|
|
(2,298)
|
|
|
|
(4,966)
|
|
|
|
|
|
Six months
Ended
June 30,
2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
|
( Dollars in
Thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
7,140
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,140
|
|
Incentive
income
|
|
|
295
|
|
|
|
—
|
|
|
|
—
|
|
|
|
295
|
|
Other
revenues
|
|
|
159
|
|
|
|
—
|
|
|
|
—
|
|
|
|
159
|
|
Total
Revenues
|
|
|
7,594
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,594
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
17,006
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,006
|
|
General,
administrative and other
|
|
|
6,160
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,160
|
|
Depreciation and
amortization
|
|
|
127
|
|
|
|
—
|
|
|
|
—
|
|
|
|
127
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
48
|
|
|
|
—
|
|
|
|
48
|
|
Total
Expenses
|
|
|
23,293
|
|
|
|
48
|
|
|
|
—
|
|
|
|
23,341
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
1,896
|
|
|
|
—
|
|
|
|
(1,859)
|
|
|
|
37
|
|
Other income
(expense)
|
|
|
692
|
|
|
|
—
|
|
|
|
—
|
|
|
|
692
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
3,693
|
|
|
|
—
|
|
|
|
3,693
|
|
Total Other Income
(Loss)
|
|
|
2,588
|
|
|
|
3,693
|
|
|
|
(1,859)
|
|
|
|
4,422
|
|
Income (loss)
before income taxes
|
|
|
(13,111)
|
|
|
|
3,645
|
|
|
|
(1,859)
|
|
|
|
(11,325)
|
|
Income tax (benefit)
expense
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9
|
|
Consolidated net
income (loss), net of tax
|
|
|
(13,120)
|
|
|
|
3,645
|
|
|
|
(1,859)
|
|
|
|
(11,334)
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(201)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(201)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(13,321)
|
|
|
$
|
3,645
|
|
|
$
|
(1,859)
|
|
|
$
|
(11,535)
|
|
The following tables present the reconciliations of our
consolidated GAAP net income, net of tax to (i) our non-GAAP
financial measure of net income (loss) (excluding Consolidated
Funds of ZAIS Group) and (ii) our non-GAAP financial measure of
Adjusted EBITDA:
|
|
Three Months
Ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollars in
thousands)
|
|
Consolidated net
income (loss), net of tax (GAAP Net Income (Loss))
|
|
$
|
430
|
|
|
$
|
(4,935)
|
|
Add
back: Elimination of Management fee income
|
|
|
329
|
|
|
|
—
|
|
Less: Income of Consolidated
Funds
|
|
|
(404)
|
|
|
|
—
|
|
Less: Elimination of rebate
expense
|
|
|
(290)
|
|
|
|
—
|
|
Add back: Elimination
of Net gain (loss) on investments
|
|
|
1,454
|
|
|
|
1,095
|
|
Add back: Expenses of
Consolidated Funds
|
|
|
30
|
|
|
|
29
|
|
Net (gain) loss on
Consolidated Funds' investments
|
|
|
(1,607)
|
|
|
|
(2,176)
|
|
Net (gain) loss on
beneficial interest in collateralized financing entity
|
|
|
(909)
|
|
|
|
—
|
|
Net income (loss)
(excluding Consolidated Funds of ZAIS Group) – Non-GAAP
|
|
|
(967)
|
|
|
|
(5,987)
|
|
|
|
|
|
|
|
|
|
|
Add back: Tax
expense
|
|
|
5
|
|
|
|
4
|
|
Add back:
Compensation attributable to equity compensation
|
|
|
56
|
|
|
|
1,339
|
|
Add back: Severance
costs
|
|
|
—
|
|
|
|
119
|
|
Add back:
Depreciation and amortization
|
|
|
71
|
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA –
Non-GAAP
|
|
$
|
(835)
|
|
|
$
|
(4,461)
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollars in
thousands)
|
|
Consolidated net
income (loss), net of tax (GAAP Net Income (Loss))
|
|
$
|
(5,005)
|
|
|
$
|
(11,334)
|
|
Add
back: Elimination of Management fee income
|
|
|
329
|
|
|
|
—
|
|
Less: Income of
Consolidated Funds
|
|
|
(404)
|
|
|
|
—
|
|
Less: Elimination of fee rebate
expense
|
|
|
(290)
|
|
|
|
—
|
|
Add back: Elimination
of Net gain (loss) on investments
|
|
|
2,297
|
|
|
|
1,859
|
|
Add back: Expenses of
Consolidated Funds
|
|
|
73
|
|
|
|
48
|
|
Net (gain) loss on
Consolidated Funds' investments
|
|
|
(2,714)
|
|
|
|
(3,693)
|
|
Net (gain) loss on
beneficial interest of collateralized financing entity
|
|
|
(1,498)
|
|
|
|
—
|
|
Net income (loss)
(excluding Consolidated Funds of ZAIS Group) – Non-GAAP
|
|
|
(7,212)
|
|
|
|
(13,120)
|
|
|
|
|
|
|
|
|
|
|
Add back: Tax
expense
|
|
|
10
|
|
|
|
9
|
|
Add back:
Compensation attributable to equity compensation
|
|
|
1,168
|
|
|
|
1,682
|
|
Add back: Severance
costs
|
|
|
72
|
|
|
|
762
|
|
Add back:
Depreciation and amortization
|
|
|
111
|
|
|
|
127
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA –
Non-GAAP
|
|
$
|
(5,851)
|
|
|
$
|
(10,540)
|
|
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 $3.752 billion of assets under management as of
June 30, 2017. 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.
View original
content:http://www.prnewswire.com/news-releases/zais-group-holdings-inc-reports-second-quarter-2017-results-300504059.html
SOURCE ZAIS Group Holdings, Inc.