Fifth Street Asset Management Inc. (NASDAQ:FSAM) ("FSAM" or "we")
today announced its financial results for the second quarter ended
June 30, 2016.
Second Quarter 2016 Highlights
- GAAP Net Income of $4.4 million, or $0.09 per share on a
fully-converted basis;
- Pro Forma Adjusted Net Income of $10.0 million, or $0.20 per
share;
- Fee-earning Assets Under Management ("AUM") of $4.3
billion; and
- Total revenues of $23.2 million, 92.0% of which were
represented by management fees.
“As we projected in May, with incremental professional expenses
related to litigation and activist investors at our funds rolling
off, our June quarter saw a rebound in profitability,” said Leonard
M. Tannenbaum, Chief Executive Officer of FSAM, adding, “Coinciding
with quarter-end, we are also pleased to announce that we have
reached a global settlement of the class action and other related
litigation, which is 100% covered by FSAM’s insurance.
Importantly, the Fifth Street origination platform remains
well-positioned to continue sourcing compelling investment
opportunities, despite the slower middle market environment.
Consistent with our view of where we currently are in the credit
cycle, we will continue to focus on investing in quality deals with
more favorable placement in the capital structure going
forward.”
Results of Operations
Total revenues for the quarter ended June 30, 2016 were
$23.2 million, representing a $1.2 million, or 5.1%, decrease from
$24.4 million for the quarter ended June 30, 2015. Management
fees (which include base management fees and Part I fees) for the
quarter ended June 30, 2016 were $21.3 million, representing
92.0% of total revenues. The decrease in revenues was
primarily due to a reduction in the contractual base management fee
rate charged to Fifth Street Finance Corp. ("FSC") from 2.00% to
1.75% effective January 1, 2016, as well as lower asset levels at
FSC and our other managed funds.
Total expenses for the quarter ended June 30, 2016 were
$22.1 million, and include amounts reimbursed by our funds of $1.8
million, IPO-related compensation charges of $1.9 million, lease
termination/abandonment charges of $2.9 million and operating
expenses attributable to MMKT of $0.4 million. After
adjusting for these items, net expenses were $15.1 million for the
quarter ended June 30, 2016, which included litigation and
other non-recurring legal costs of $5.9 million and severance and
other one-time compensation costs of $0.7 million. Net
expenses increased by $5.6 million, or 57.9%, as compared to $9.5
million for the quarter ended June 30, 2015, due to the
litigation-related and one-time compensation costs in the current
period. Excluding these litigation and compensation costs,
net expenses decreased by $1.1 million, or 12.0%, as compared to
the quarter ended June 30, 2015, primarily driven by lower
employee-related expenses in the current period.
GAAP Net Income for the quarters ended June 30, 2016 and
June 30, 2015 was $4.4 million, or $0.09 per share on a
fully-converted basis, and $9.5 million, or $0.19 per share on a
fully-converted basis, respectively. Pro Forma Adjusted Net
Income was $10.0 million, or $0.20 per share, for the quarter ended
June 30, 2016, which represented a $0.7 million, or 6.8%,
increase as compared to $9.3 million, or $0.19 per share, for the
quarter ended June 30, 2015. The increase in Pro Forma
Adjusted Net Income was primarily due to the revenue and net
expense variances described above.
Dividend Declaration
On August 10, 2016, our Board of Directors declared a quarterly
dividend of $0.10 per share of our Class A common stock. The
declared dividend is payable on October 14, 2016 to stockholders of
record at the close of business on September 30, 2016.
Key Performance Metrics
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(dollars in thousands, except per share amounts) |
Total revenues |
|
$ |
23,152 |
|
|
$ |
24,398 |
|
|
$ |
42,199 |
|
|
$ |
49,357 |
|
Net income (loss) |
|
$ |
4,406 |
|
|
$ |
9,542 |
|
|
$ |
(6,693 |
) |
|
$ |
20,021 |
|
Net income (loss) per
share, fully-converted basis |
|
$ |
0.09 |
|
|
$ |
0.19 |
|
|
$ |
(0.13 |
) |
|
$ |
0.40 |
|
Pro Forma Adjusted Net
Income(1) |
|
$ |
9,978 |
|
|
$ |
9,342 |
|
|
$ |
16,126 |
|
|
$ |
18,408 |
|
Pro Forma Adjusted Net
Income Per Share |
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.32 |
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
Management Fees as % of
total revenues |
|
92.0 |
% |
|
93.0 |
% |
|
90.9 |
% |
|
92.8 |
% |
|
|
|
|
|
|
|
|
|
AUM at end of
period(2) |
|
$ |
5,145,496 |
|
|
$ |
5,554,885 |
|
|
$ |
5,145,496 |
|
|
$ |
5,554,885 |
|
Fee-earning AUM at end
of period(3) |
|
$ |
4,285,022 |
|
|
$ |
4,343,433 |
|
|
$ |
4,285,022 |
|
|
$ |
4,343,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________
(1) Please refer to Exhibit A for a reconciliation of net income
and income before provision for income taxes to Adjusted Net Income
and Pro Forma Adjusted Net Income.
(2) AUM refers to assets under management of our funds and
material control investments of these funds and represents the sum
of the net asset value of such funds and investments, the drawn
debt and unfunded debt and equity commitments at the fund or
investment level (including amounts subject to restrictions) and
uncalled committed debt and equity capital (including commitments
to funds that have yet to commence their investment periods).
(3) Fee-earning AUM refers to the AUM on which we directly or
indirectly earn management fees and represents the sum of the net
asset value of our funds and their material control investments and
the drawn debt and unfunded debt and equity commitments at the fund
or investment level (including amounts subject to
restrictions).
Recent Developments
We have entered into agreements to settle previously disclosed
legal proceedings, including separate securities class actions
filed on behalf of the shareholders of each of Fifth Street Finance
Corp. ("FSC") and FSAM and shareholder derivative actions filed on
behalf of FSC. The proposed settlement of the FSC and FSAM
securities class actions calls for a payment of $14.1 million
and $9.25 million, respectively, to the settlement class, with
100% of FSAM's settlement amount covered by insurance. In addition
to certain governance and oversight enhancements and an agreement
not to oppose plaintiffs’ request for award of $5.1 million in
attorneys’ fees and expenses, the proposed settlement of the FSC
shareholder derivative actions provides for Fifth Street Management
LLC’s waiver of fees charged to FSC in the amount of $1.0
million for each of ten consecutive quarters starting
in January 2018 and maintenance of the previously
announced decrease in the base management fee from 2.0% to a
maximum of 1.75% for at least four years. Each of the proposed
settlements is subject both to the plaintiffs’ completion of
additional discovery and to approval by the applicable court.
On August 9, 2016, MMKT paid $2,833,050 to holders of its
convertible notes in connection with its wind down of business
operations and related settlement and cancellation of convertible
note agreements, of which FSM received $534,460 of net
proceeds. In connection with the settlement and
cancellation of the MMKT notes and the wind down of MMKT’s
business, if MMKT determines that funds become available for
further payment, MMKT has agreed to pay such amounts on a pro rata
basis to the holders of the canceled notes.
Non-GAAP Financial Measures and Operating Metrics
Certain of the terms used in this press release, including AUM,
fee-earning AUM, Adjusted Net Income and Pro Forma Adjusted Net
Income, may not be comparable to similarly titled measures used by
other companies. In addition, our definitions of AUM and
fee-earning AUM are not based on any definition of AUM or
fee-earning AUM that is set forth in the agreements governing the
investment funds that we manage and may differ from definitions of
AUM set forth in other agreements to which we are a party from time
to time. Further, Adjusted Net Income and Pro Forma Adjusted Net
Income are not performance measures calculated in accordance with
GAAP. Adjusted Net Income has been included in this press
release to adjust for certain one-time, non-recurring or
non-operating items. Pro Forma Net Adjusted Net Income has been
included in this press release to reflect certain tax adjustments
in connection with our IPO and excludes the financial results of
MMKT. We use Adjusted Net Income and Pro Forma Adjusted Net
Income as measures of our operating performance, not as measures of
liquidity. We believe that Adjusted Net Income and Pro Forma
Adjusted Net Income provide investors with a meaningful indication
of our core operating performance and Adjusted Net Income and Pro
Forma Adjusted Net Income are evaluated regularly by our management
as decision tools for deployment of resources. We believe that
reporting Adjusted Net Income and Pro Forma Adjusted Net Income is
helpful in understanding our business and that investors should
review the same supplemental non-GAAP financial measures that our
management uses to analyze our performance. Adjusted Net Income and
Pro Forma Adjusted Net Income have limitations as analytical tools
and should not be considered in isolation or as a substitute for
analyzing our results prepared in accordance with GAAP. The use of
Adjusted Net Income or Pro Forma Adjusted Net Income without
consideration of related GAAP measures is not adequate due to the
adjustments described herein. Income before income tax benefit
(provision) is the GAAP financial measure most comparable to
Adjusted Net Income and net income is the GAAP financial measure
most comparable to Pro Forma Adjusted Net Income. Please refer to
Exhibit A for a reconciliation of net income and income before
income tax benefit (provision) to Adjusted Net Income and Pro Forma
Adjusted Net Income.
Conference Call Information
We will host a conference call at 10:00 a.m. (Eastern Time) on
Wednesday, August 17, 2016 to discuss our second quarter 2016
financial results. All interested parties are welcome to
participate. Domestic callers can access the conference call by
dialing (855) 791-2033. International callers can access the
conference call by dialing +1 (631) 485-4910. All callers will need
to enter the Conference ID Number 48913032 and reference "Fifth
Street Asset Management Inc." after being connected with the
operator. All callers are asked to dial in 10-15 minutes prior to
the call so that name and company information can be collected. An
archived replay of the call will be available shortly after the end
of the conference call through August 24, 2016, to domestic callers
by dialing (855) 859-2056 and to international callers by dialing
+1 (404) 537-3406. For all replays, please reference Passcode
Number 48913032. An archived replay will also be available online
in the "Investor Relations" section of FSAM's website under the
"News & Events - Calendar of Events" section.
About Fifth Street Asset Management Inc.
Fifth Street Asset Management Inc. (NASDAQ:FSAM) is a nationally
recognized credit-focused asset manager. The firm has over $5
billion of assets under management across two publicly-traded
business development companies, Fifth Street Finance Corp.
(NASDAQ:FSC) and Fifth Street Senior Floating Rate Corp.
(NASDAQ:FSFR), as well as multiple private investment
vehicles. The Fifth Street platform provides innovative and
customized financing solutions to small and mid-sized businesses
across the capital structure through complementary investment
vehicles and co-investment capabilities. With over an 18-year
track record focused on disciplined credit investing across
multiple economic cycles, Fifth Street is led by a seasoned
management team that has issued billions of dollars in public
equity, private capital and public debt securities. Fifth
Street's national origination strategy, proven track record and
established platform are supported by over 50 professionals across
locations in Greenwich and Chicago. For more information,
please visit fsam.fifthstreetfinance.com.
Forward-Looking Statements
This press release may contain, and certain oral statements made
by our representatives from time to time may contain,
forward-looking statements, because they relate to future events or
our future performance or financial condition. Forward-looking
statements may include statements as to the fees charged by FSAM to
FSC and FSFR, FSAM's future operating results, dividends by FSAM
and business prospects of FSAM. Words such as "believes,"
"expects," "seeks," "plans," "should," "estimates," "project," and
"intend" indicate forward-looking statements, although not all
forward-looking statements include these words. These
forward-looking statements involve risks and uncertainties. Actual
results could differ materially from those implied or expressed in
these forward-looking statements for any reason. Such factors
are identified from time to time in FSAM's filings with
the Securities and Exchange Commission and include
changes in the economy, the financial markets and future changes in
laws or regulations, competitive conditions in the business
development company space and conditions in FSAM's operating
areas. FSAM undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Exhibit A. Calculation of Adjusted Net Income (Loss) and
Pro Forma Adjusted Net Income
Income before income tax benefit (provision) is the GAAP
financial measure most comparable to Adjusted Net Income and net
income is the GAAP financial measure most comparable to Pro Forma
Adjusted Net Income. The following table provides a
reconciliation of net income (loss) and income before income tax
benefit (provision) to Adjusted Net Income and Pro Forma Adjusted
Net Income (shown in thousands, except per share amounts):
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net income (loss) |
|
$ |
4,406 |
|
|
$ |
9,542 |
|
|
$ |
(6,693 |
) |
|
$ |
20,021 |
|
Provision for income
taxes |
|
7,237 |
|
|
1,319 |
|
|
6,972 |
|
|
2,508 |
|
Income before provision
for income taxes |
|
11,644 |
|
|
10,862 |
|
|
278 |
|
|
22,529 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Compensation-related charges
(a)(b)(c) |
|
2,647 |
|
|
1,478 |
|
|
4,265 |
|
|
2,964 |
|
Unrealized gain on MMKT Notes
(d) |
|
— |
|
|
— |
|
|
(2,582 |
) |
|
— |
|
Unrealized (gain) loss on
beneficial interests in CLOs (e) |
|
(480 |
) |
|
567 |
|
|
368 |
|
|
567 |
|
Lease termination/abandonment
charges (f) |
|
2,901 |
|
|
— |
|
|
2,901 |
|
|
(71 |
) |
Adjustment of TRA liability for tax
rate change (g) |
|
(7,526 |
) |
|
— |
|
|
(7,526 |
) |
|
— |
|
Gain on extinguishment of debt
(h) |
|
(2,000 |
) |
|
— |
|
|
(2,000 |
) |
|
— |
|
Litigation and other non-recurring
legal costs (i) |
|
5,923 |
|
|
— |
|
|
9,152 |
|
|
— |
|
Loss on legal settlement (j) |
|
9,250 |
|
|
— |
|
|
9,250 |
|
|
— |
|
Insurance recoveries (j) |
|
(12,247 |
) |
|
— |
|
|
(12,247 |
) |
|
— |
|
Loss on investor settlement
(k) |
|
— |
|
|
— |
|
|
10,419 |
|
|
— |
|
Unrealized loss on derivatives
(l) |
|
3,707 |
|
|
— |
|
|
8,383 |
|
|
|
Realized gain on derivatives
(l) |
|
(465 |
) |
|
— |
|
|
(465 |
) |
|
— |
|
Adjusted Net Income
(m) |
|
13,354 |
|
|
12,907 |
|
|
20,196 |
|
|
25,989 |
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to MMKT (n) |
|
452 |
|
|
319 |
|
|
1,845 |
|
|
319 |
|
Pro Forma income tax
provision (o) |
|
(4,776 |
) |
|
(5,045 |
) |
|
(8,001 |
) |
|
(10,222 |
) |
Pro Forma tax
receivable agreement benefit (o) |
|
948 |
|
|
1,161 |
|
|
2,086 |
|
|
2,322 |
|
Pro Forma Adjusted Net
Income |
|
$ |
9,978 |
|
|
$ |
9,342 |
|
|
$ |
16,126 |
|
|
$ |
18,408 |
|
|
|
|
|
|
|
|
|
|
Pro Forma weighted
average shares outstanding (p) |
|
49,834 |
|
|
49,968 |
|
|
49,816 |
|
|
49,984 |
|
Pro Forma Adjusted Net
Income per Class A common share (p) |
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
$ |
0.32 |
|
|
$ |
0.37 |
|
|
_________________
(a) For the three months ended June 30, 2016 and
June 30, 2015, this amount includes $0.6 million and $0.3
million, respectively, of amortization expense relating to the
conversion and vesting of member interests in connection with the
Reorganization. For the six months ended June 30, 2016 and
June 30, 2015, this amount includes $0.8 million and $0.5
million, respectively, of amortization expense relating to the
conversion and vesting of member interests in connection with the
Reorganization.
(b) For the three and six months ended June 30, 2016, this
amount includes $1.3 million and $2.7 million, respectively, of
amortization expense relating to stock-based compensation that was
awarded to certain of our employees in connection with our IPO. For
the three and six months ended June 30, 2015, this amount
includes $1.2 million and $2.5 million, respectively, of
amortization expense relating to stock-based compensation that was
awarded to certain of our employees in connection with our IPO.
(c) For the three and six months ended June 30, 2016, this
amount includes $0.7 million of severance payments and retention
bonuses.
(d) Represents the change in fair value of MMKT Notes.
(e) Represents the change in fair value on our beneficial
interests in CLOs on which we have elected the fair value
option.
(f) For the three and six months ended June 30, 2016, this
amount represents non-recurring charges related to the abandonment
of a portion of our office space at our corporate headquarters in
Greenwich, CT. This amount is comprised of a $1.1 million
loss representing the present value of the remaining contractual
lease payments related to the vacated space (net of estimated
sublease income), $2.8 million of accelerated depreciation and
amortization, partially offset by a $0.9 million write-off of
related deferred rent liabilities. For the six months ended
June 30, 2015, this amount includes non-recurring charges for
termination payments and related exit costs accrued at present
value relating to our office leases.
(g) Represents the reduction of payables to TRA recipients as a
result of certain changes to Connecticut state tax law that were
passed in May 2016 (effective January 1, 2016), which resulted in a
lower state income tax rate.
(h) Represents the loan forgiveness granted by the DECD as a
result of achieving certain job milestones.
(i) Represents the expenses incurred in connection with
litigation and other non-recurring legal matters. This amount
is comprised of $5.2 million of litigation-related costs and $0.7
million of other non-recurring costs.
(j) These amounts relate to the FSAM class action lawsuit
settlement in the amount of $9.3 million which will be covered by
insurance proceeds as well as $3.0 million of insurance recoveries
related to professional fees incurred in connection with various
legal matters.
(k) Represents the loss recognized by us in connection with the
premium paid on our and our principal shareholder's purchase of FSC
shares in connection with the RiverNorth settlement.
(l) Represents gains or losses on a warrant and swap agreement
issued by us to RiverNorth in connection with the settlement.
(m) Adjusted Net Income is presented on a pre-tax basis.
(n) Represents the net loss attributable to the operations of
MMKT, a consolidated subsidiary of FSAM that was formed to develop
technology related to the financial services industry.
(o) Based on our estimated statutory tax rate and includes an
adjustment for pro forma tax benefits related to basis adjustments
due to our IPO.
(p) Presented with the assumption that 100% of the limited
partnership interests in Fifth Street Holdings L.P. were converted
on a one-for-one basis into shares of our Class A common stock.
Exhibit B. Consolidated Statements of Financial
Condition as of June 30, 2016 and December 31,
2015
|
|
|
As of |
|
|
June 30, 2016 |
|
December 31, 2015 |
Assets |
|
|
|
|
Cash and cash
equivalents |
|
$ |
8,616,558 |
|
|
$ |
17,185,204 |
|
Management fees
receivable (includes Part I Fees of $9,084,207 and $(555,663)
at June 30, 2016 and December 31, 2015, respectively) |
|
21,102,279 |
|
|
4,879,785 |
|
Performance fees
receivable |
|
86,175 |
|
|
224,618 |
|
Insurance recovery
receivable |
|
9,725,000 |
|
|
— |
|
Prepaid expenses
(includes $677,089 and $676,789 related to income taxes at June 30,
2016 and December 31, 2015, respectively) |
|
3,206,646 |
|
|
1,284,759 |
|
Investments in equity
method investees |
|
531,720 |
|
|
6,427,272 |
|
Investments in
available-for-sale securities at fair value (cost June 30, 2016:
$48,706,293; cost December 31, 2015: $26,389,015) |
|
41,969,307 |
|
|
26,771,258 |
|
Beneficial interests in
CLOs at fair value: (cost June, 2016: $24,415,383; cost
December 31, 2015: $24,617,568) |
|
22,967,217 |
|
|
23,537,629 |
|
Due from
affiliates |
|
2,679,629 |
|
|
3,943,384 |
|
Fixed assets, net |
|
5,849,559 |
|
|
9,893,521 |
|
Deferred tax
assets |
|
44,473,292 |
|
|
51,180,237 |
|
Deferred financing
costs |
|
1,677,768 |
|
|
1,929,433 |
|
Other assets |
|
3,401,343 |
|
|
3,976,420 |
|
Total assets |
|
$ |
166,286,493 |
|
|
$ |
151,233,520 |
|
Liabilities and
Equity |
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable and
accrued expenses |
|
$ |
8,080,704 |
|
|
$ |
5,324,842 |
|
Accrued compensation
and benefits |
|
5,621,592 |
|
|
10,448,260 |
|
Income taxes
payable |
|
28,559 |
|
|
28,559 |
|
Loans payable
(including $2,247,740 and $4,738,026 at June 30, 2016 and December
31, 2015, respectively, of MMKT Notes at fair value) |
|
17,220,305 |
|
|
21,710,640 |
|
Legal settlement
payable |
|
9,250,000 |
|
|
— |
|
Credit facility
payable |
|
87,000,000 |
|
|
65,000,000 |
|
Dividends payable |
|
1,705,143 |
|
|
1,748,062 |
|
Derivative liabilities
at fair value |
|
8,383,213 |
|
|
— |
|
Due to affiliates |
|
26,605 |
|
|
24,257 |
|
Deferred rent
liability |
|
2,141,090 |
|
|
3,146,210 |
|
Payable to related
parties pursuant to tax receivable agreements |
|
37,960,213 |
|
|
45,486,114 |
|
Total
liabilities |
|
177,417,424 |
|
|
152,916,944 |
|
Commitments and
contingencies |
|
|
|
|
Equity
(deficit) |
|
|
|
|
Preferred stock, $0.01 par value;
5,000,000 shares authorized; none issued and outstanding as of June
30, 2016 and December 31, 2015 |
|
— |
|
|
— |
|
Class A common stock, $0.01 par
value 500,000,000 shares authorized; 5,842,315 and
5,822,672 shares issued and 5,842,315 and 5,798,614 shares
outstanding as of June 30, 2016 and December 31, 2015,
respectively |
|
58,423 |
|
|
58,227 |
|
Class B common stock, $0.01 par
value 50,000,000 shares authorized; 42,856,854
shares issued and outstanding as of June 30, 2016 and
December 31, 2015 |
|
428,569 |
|
|
428,569 |
|
Additional paid-in capital |
|
2,109,607 |
|
|
2,661,253 |
|
Accumulated other comprehensive
income (loss) |
|
(519,882 |
) |
|
27,276 |
|
Accumulated deficit |
|
(627,144 |
) |
|
— |
|
|
|
1,449,573 |
|
|
3,175,325 |
|
Less: Treasury stock, at cost:
24,058 shares as of December 31, 2015 |
|
— |
|
|
(180,064 |
) |
Total stockholders' equity,
Fifth Street Asset Management Inc. |
|
1,449,573 |
|
|
2,995,261 |
|
Non-controlling
interests |
|
(12,580,504 |
) |
|
(4,678,685 |
) |
Total deficit |
|
(11,130,931 |
) |
|
(1,683,424 |
) |
Total liabilities and
deficit |
|
$ |
166,286,493 |
|
|
$ |
151,233,520 |
|
|
Exhibit C. Consolidated Statements of Income for the
Three and Six Months Ended June 30, 2016 and 2015
|
|
|
For the Three Months Ended June
30, |
|
For the Six Months Ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues |
|
|
|
|
|
|
|
|
Management fees (includes Part I
Fees of $9,084,207 and $8,555,515 and $14,022,275 and
$16,576,649 for the three months and six months
ended June 30, 2016 and 2015, respectively) |
|
$ |
21,291,423 |
|
|
$ |
22,685,241 |
|
|
$ |
38,378,968 |
|
|
$ |
45,784,519 |
|
Performance fees |
|
60,411 |
|
|
(12,747 |
) |
|
86,175 |
|
|
76,855 |
|
Other fees |
|
1,799,676 |
|
|
1,725,832 |
|
|
3,734,098 |
|
|
3,495,567 |
|
Total
revenues |
|
23,151,510 |
|
|
24,398,326 |
|
|
42,199,241 |
|
|
49,356,941 |
|
Expenses |
|
|
|
|
|
|
|
|
Compensation and benefits |
|
8,878,001 |
|
|
9,225,279 |
|
|
17,646,626 |
|
|
18,532,965 |
|
General, administrative and other
expenses |
|
10,080,123 |
|
|
3,099,405 |
|
|
17,381,615 |
|
|
6,372,225 |
|
Depreciation and amortization |
|
3,158,322 |
|
|
417,692 |
|
|
3,576,044 |
|
|
820,398 |
|
Total
expenses |
|
22,116,446 |
|
|
12,742,376 |
|
|
38,604,285 |
|
|
25,725,588 |
|
Other income
(expense) |
|
|
|
|
|
|
|
|
Interest income |
|
356,139 |
|
|
171,032 |
|
|
695,741 |
|
|
183,140 |
|
Interest expense |
|
(1,080,448 |
) |
|
(458,999 |
) |
|
(2,195,447 |
) |
|
(830,180 |
) |
Unrealized gain on MMKT Notes |
|
— |
|
|
— |
|
|
2,582,405 |
|
|
— |
|
Unrealized gain (loss) on
beneficial interests in CLOs |
|
480,037 |
|
|
(567,398 |
) |
|
(368,227 |
) |
|
(567,398 |
) |
Gain on extinguishment of debt |
|
2,000,000 |
|
|
— |
|
|
2,000,000 |
|
|
— |
|
Adjustment of TRA liability for tax
rate change |
|
7,525,901 |
|
|
— |
|
|
7,525,901 |
|
|
— |
|
Loss on legal settlement |
|
(9,250,000 |
) |
|
— |
|
|
(9,250,000 |
) |
|
— |
|
Insurance recoveries |
|
12,246,731 |
|
|
— |
|
|
12,246,731 |
|
|
— |
|
Unrealized loss on derivatives |
|
(3,707,194 |
) |
|
— |
|
|
(8,383,213 |
) |
|
— |
|
Realized gain on derivatives |
|
465,425 |
|
|
— |
|
|
465,425 |
|
|
— |
|
Loss on investor settlement |
|
— |
|
|
— |
|
|
(10,419,274 |
) |
|
— |
|
Other income (expense), net |
|
1,571,903 |
|
|
61,000 |
|
|
1,783,490 |
|
|
112,048 |
|
Total other income
(expense), net |
|
10,608,494 |
|
|
(794,365 |
) |
|
(3,316,468 |
) |
|
(1,102,390 |
) |
Income before
provision for income taxes |
|
11,643,558 |
|
|
10,861,585 |
|
|
278,488 |
|
|
22,528,963 |
|
Provision for income taxes |
|
7,237,303 |
|
|
1,319,173 |
|
|
6,971,891 |
|
|
2,508,004 |
|
Net income
(loss) |
|
4,406,255 |
|
|
9,542,412 |
|
|
(6,693,403 |
) |
|
20,020,959 |
|
Net (income) loss attributable to
non-controlling interests |
|
(3,629,933 |
) |
|
(8,435,230 |
) |
|
6,230,340 |
|
|
(17,617,175 |
) |
Net income
(loss) attributable to Fifth Street Asset Management
Inc. |
|
$ |
776,322 |
|
|
$ |
1,107,182 |
|
|
$ |
(463,063 |
) |
|
$ |
2,403,784 |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share attributable to Fifth Street Asset Management Inc.
Class A common stock - Basic |
|
$ |
0.13 |
|
|
$ |
0.19 |
|
|
$ |
(0.08 |
) |
|
$ |
0.40 |
|
Net income
(loss) per share attributable to Fifth Street Asset Management Inc.
Class A common stock - Diluted |
|
$ |
0.07 |
|
|
$ |
0.19 |
|
|
$ |
(0.10 |
) |
|
$ |
0.40 |
|
Weighted
average shares of Class A common stock outstanding -
Basic |
|
5,833,575 |
|
|
5,968,353 |
|
|
5,815,998 |
|
|
5,984,193 |
|
Weighted
average shares of Class A common stock outstanding -
Diluted |
|
48,790,784 |
|
|
5,976,746 |
|
|
48,740,139 |
|
|
5,992,657 |
|
|
CONTACT:
Investor Contact:
Robyn Friedman, Executive Director, Head of Investor Relations
(203) 681-3720
IR-FSAM@fifthstreetfinance.com
Media Contact:
James Golden / Aura Reinhard / Andrew Squire
Joele Frank Wilkinson Brimmer Katcher
(212) 355-4449
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