Fifth Street Asset Management Inc. (NASDAQ:FSAM) ("FSAM" or "we")
today announced its financial results for the third quarter ended
September 30, 2016.
Third Quarter 2016 Highlights
- GAAP Net Loss attributable to FSAM of $0.2 million, or $0.04
per share, which includes a non-cash tax expense of $0.18 per share
related to recent changes in state tax law;
- Pro Forma Adjusted Net Income of $9.9 million, or $0.20 per
share;
- Fee-earning Assets Under Management ("AUM") of $4.1
billion; and
- Total revenues of $22.5 million, 87.6% of which were
represented by management fees.
“For the September quarter, we generated a level of earnings
consistent with the June quarter and incremental professional
expenses continued to decline. Reflecting the roll off of some of
these expenses, we have increased the quarterly dividend by 25% to
12.5 cents, or 50 cents annualized,” stated Leonard M. Tannenbaum,
Chief Executive Officer of FSAM, adding, “Over the last 18 years,
Fifth Street has built a middle market direct lending platform,
supported by strong private equity sponsor relationships and the
ability to invest over multiple cycles through a mainly permanent
capital base. As a manager, we are continually focused on
driving long-term shareholder value. In an effort to increase
return on equity at our two publicly traded business development
companies to levels above the median for the BDC industry, we
continually seek ways to build upon our existing infrastructure to
enhance our underwriting process and performance. We look forward
to providing further updates on how we are improving the
fundamentals of our business in the months ahead.”
Results of Operations
Total revenues for the quarter ended September 30, 2016
were $22.5 million, representing a $3.0 million, or 11.9%, decrease
from $25.5 million for the quarter ended September 30, 2015.
Management fees (which include base management fees and Part I
fees) for the quarter ended September 30, 2016 were $19.7
million, representing 87.6% 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 our managed funds.
Total expenses for the quarter ended September 30, 2016
were $17.3 million, and include amounts reimbursed by our funds of
$2.7 million, IPO-related compensation charges of $2.5 million,
operating expenses attributable to MMKT of $0.2 million and a net
lease termination/abandonment benefit of $0.1 million. After
adjusting for these items, net expenses were $12.1 million for the
quarter ended September 30, 2016, which included litigation
and other non-recurring legal costs of $3.5 million and severance
and other one-time compensation costs of $1.7 million. Net
expenses increased by $1.6 million, or 15.0%, as compared to $10.5
million for the quarter ended September 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 $3.6 million, or 34.7%, as compared to
the quarter ended September 30, 2015, primarily driven by lower
employee-related expenses in the current period.
GAAP Net Income (Loss) attributable to FSAM for the quarters
ended September 30, 2016 and September 30, 2015 was $(0.2)
million, or $(0.04) per share, and $1.2 million, or $0.19 per
share, respectively. Pro Forma Adjusted Net Income was $9.9
million, or $0.20 per share, for the quarter ended
September 30, 2016, which represented a $1.4 million, or
16.2%, increase as compared to $8.7 million, or $0.17 per share,
for the quarter ended September 30, 2015. The increase in Pro
Forma Adjusted Net Income was primarily due to the revenue and net
expense variances described above.
During the quarter ended September 30, 2015, we began purchasing
common shares in FSC and FSFR and accounted for them as
available-for-sale securities for all periods prior to July 1,
2016. During 2016, we made substantial additional purchases
of the FSC and FSFR common shares, and at September 30, 2016 we
held 8.4 million FSC shares and 1.4 million FSFR shares. As a
result of the increased purchase volume, we revisited our
accounting method for the shares held. We determined that it
is appropriate to account for the shares under the equity method,
and that the change in accounting method did not materially impact
our previously filed financial statements, and had no effect on our
Pro Forma Adjusted Net Income for any prior periods.
Accordingly, we revised our prior period financial statements
through footnote disclosure in our Form 10-Q for the quarter ended
September 30, 2016.
Dividend Declaration
On November 9, 2016, our Board of Directors declared a quarterly
dividend of $0.125 per share of our Class A common stock. The
declared dividend is payable on January 13, 2017 to stockholders of
record at the close of business on December 30, 2016.
Key Performance Metrics
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(dollars in thousands, except per share amounts) |
Total
revenues |
|
$ |
22,457 |
|
|
$ |
25,489 |
|
|
$ |
64,656 |
|
|
$ |
74,846 |
|
Net
income (loss) attributable to FSAM |
|
$ |
(238 |
) |
|
$ |
1,151 |
|
|
$ |
(622 |
) |
|
$ |
3,554 |
|
Net
income (loss) per share attributable to FSAM |
|
$ |
(0.04 |
) |
|
$ |
0.19 |
|
|
$ |
(0.11 |
) |
|
$ |
0.60 |
|
Pro Forma
Adjusted Net Income(1) |
|
$ |
9,922 |
|
|
$ |
8,651 |
|
|
$ |
26,049 |
|
|
$ |
27,059 |
|
Pro Forma
Adjusted Net Income Per Share |
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.52 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
Management Fees as % of total revenues |
|
87.6 |
% |
|
91.5 |
% |
|
89.8 |
% |
|
92.3 |
% |
|
|
|
|
|
|
|
|
|
AUM at
end of period(2) |
|
$ |
5,029,237 |
|
|
$ |
5,593,691 |
|
|
$ |
5,029,237 |
|
|
$ |
5,593,691 |
|
Fee-earning AUM at end of period(3) |
|
$ |
4,069,820 |
|
|
$ |
4,463,138 |
|
|
$ |
4,069,820 |
|
|
$ |
4,463,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________
(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) Non-GAAP Financial MeasuFee-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).
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 9:00 a.m. (Eastern Time) on
Tuesday, November 22, 2016 to discuss our third 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 95209334 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 November 29, 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 95209334. 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. For
more information, please visit fsam.fifthstreetfinance.com.
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 have allowed
the firm to surpass $10 billion of loan commitments since
inception. 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 September 30, |
|
Nine months ended September 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net income (loss) |
|
$ |
10,180 |
|
|
$ |
9,230 |
|
|
$ |
3,256 |
|
|
$ |
29,251 |
|
Provision for income
taxes |
|
1,608 |
|
|
982 |
|
|
8,460 |
|
|
3,490 |
|
Income before provision
for income taxes |
|
11,787 |
|
|
10,212 |
|
|
11,716 |
|
|
32,741 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Compensation-related charges (a)(b)(c) |
|
4,195 |
|
|
1,482 |
|
|
8,459 |
|
|
4,444 |
|
Gain on
extinguishment of MMKT Notes (d) |
|
(10 |
) |
|
— |
|
|
(2,593 |
) |
|
— |
|
Unrealized (gain) loss on beneficial interests in CLOs (e) |
|
(538 |
) |
|
23 |
|
|
(169 |
) |
|
591 |
|
Lease
termination/abandonment charges (benefit) (f) |
|
(145 |
) |
|
— |
|
|
2,756 |
|
|
(71 |
) |
Adjustment of TRA liability for tax rate change (g) |
|
— |
|
|
— |
|
|
(7,526 |
) |
|
— |
|
Gain on
extinguishment of debt (h) |
|
— |
|
|
— |
|
|
(2,000 |
) |
|
— |
|
Litigation and other non-recurring legal costs (i) |
|
3,490 |
|
|
— |
|
|
12,642 |
|
|
— |
|
Loss on
legal settlement (j) |
|
— |
|
|
— |
|
|
9,250 |
|
|
— |
|
Insurance
recoveries (j) |
|
(51 |
) |
|
— |
|
|
(12,298 |
) |
|
— |
|
Loss on
investor settlement (k) |
|
— |
|
|
— |
|
|
10,419 |
|
|
— |
|
Unrealized gain on derivatives (l) |
|
(8,383 |
) |
|
— |
|
|
— |
|
|
|
Realized
loss on derivatives (l) |
|
3,078 |
|
|
— |
|
|
2,613 |
|
|
— |
|
Distributions from equity method investments (m) |
|
40 |
|
|
— |
|
|
390 |
|
|
— |
|
Adjusted Net Income
(n) |
|
13,463 |
|
|
11,717 |
|
|
33,659 |
|
|
37,705 |
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to MMKT (o) |
|
175 |
|
|
556 |
|
|
2,021 |
|
|
876 |
|
Pro Forma income tax
provision (p) |
|
(4,664 |
) |
|
(4,783 |
) |
|
(12,664 |
) |
|
(15,005 |
) |
Pro Forma tax
receivable agreement benefit (p) |
|
948 |
|
|
1,161 |
|
|
3,033 |
|
|
3,483 |
|
Pro Forma Adjusted Net
Income |
|
$ |
9,922 |
|
|
$ |
8,651 |
|
|
$ |
26,049 |
|
|
$ |
27,059 |
|
|
|
|
|
|
|
|
|
|
Pro Forma weighted
average shares outstanding (q) |
|
49,908 |
|
|
49,906 |
|
|
49,847 |
|
|
49,956 |
|
Pro Forma Adjusted Net
Income per Class A common share (q) |
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.52 |
|
|
$ |
0.54 |
|
_________________
(a) For the three months ended September 30, 2016 and
September 30, 2015, this amount includes $1.1 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 nine months ended September 30, 2016
and September 30, 2015, this amount includes $1.9 million and
$0.8 million, respectively, of amortization expense relating to the
conversion and vesting of member interests in connection with the
Reorganization.
(b) For the three and nine months ended September 30, 2016,
this amount includes $1.4 million and $4.0 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 nine months ended September 30, 2015, this
amount includes $1.2 million and $3.7 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 nine months ended September 30, 2016, this
amount includes $1.7 million and $2.4 million, respectively, of
severance payments and retention bonuses.
(d) Represents the gain that resulted from the settlement and
cancellation 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 months ended September 30, 2016, this amount
represents adjustments related to prior lease abandonment
charges. For the nine months ended September 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 and $0.1 million of adjustments
related to prior lease abandonment charges. For the nine
months ended September 30, 2015, this amount includes non-recurring
benefits 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 matters. For the three
months ended September 30, 2016, this amount is comprised $2.9
million of litigation-related costs and $0.6 million of other
non-recurring costs. For the nine months ended September 30,
2016, this amount is comprised of $11.2 million of
litigation-related costs and $1.4 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 an additional $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) Represents the excess of the cash dividends received from
our investments in FSC and FSFR over the related income recognized
under the equity method of accounting.
(n) Adjusted Net Income is presented on a pre-tax basis.
(o) 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.
(p) Based on our estimated statutory tax rate and includes an
adjustment for pro forma tax benefits related to basis adjustments
due to our IPO.
(q) 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 September 30, 2016 and December 31,
2015
|
|
As of |
|
|
September 30, 2016 |
|
December 31, 2015 |
Assets |
|
|
|
|
Cash and cash
equivalents |
|
$ |
4,137,833 |
|
|
$ |
17,185,204 |
|
Management fees
receivable (includes Part I Fees of $7,867,962 and $(555,663)
at September 30, 2016 and December 31, 2015,
respectively) |
|
19,490,540 |
|
|
4,879,785 |
|
Performance fees
receivable |
|
124,836 |
|
|
224,618 |
|
Insurance recovery
receivable |
|
9,775,905 |
|
|
— |
|
Prepaid expenses
(includes $833,275 and $676,789 related to income taxes at
September 30, 2016 and December 31, 2015, respectively) |
|
3,008,454 |
|
|
1,284,759 |
|
Investments in equity
method investees |
|
59,060,165 |
|
|
32,388,943 |
|
Beneficial interests in
CLOs at fair value: (cost September 30, 2016: $24,271,320; cost
December 31, 2015: $24,617,568) |
|
23,360,754 |
|
|
23,537,629 |
|
Due from
affiliates |
|
3,828,063 |
|
|
3,943,384 |
|
Fixed assets, net |
|
5,570,857 |
|
|
9,893,521 |
|
Deferred tax
assets |
|
42,941,089 |
|
|
51,217,957 |
|
Deferred financing
costs |
|
1,551,936 |
|
|
1,929,433 |
|
Other assets |
|
3,330,570 |
|
|
3,976,420 |
|
Total assets |
|
$ |
176,181,002 |
|
|
$ |
150,461,653 |
|
Liabilities and
Equity |
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable and
accrued expenses |
|
$ |
7,411,469 |
|
|
$ |
5,324,842 |
|
Accrued compensation
and benefits |
|
8,147,182 |
|
|
10,448,260 |
|
Income taxes
payable |
|
— |
|
|
28,559 |
|
Loans payable
(including $0 and $4,738,026 at September 30, 2016 and December 31,
2015, respectively, of MMKT Notes at fair value) |
|
14,972,565 |
|
|
21,710,640 |
|
Legal settlement
payable |
|
9,250,000 |
|
|
— |
|
Credit facility
payable |
|
92,000,000 |
|
|
65,000,000 |
|
Dividends payable |
|
1,884,686 |
|
|
1,748,062 |
|
Derivative liabilities
at fair value |
|
— |
|
|
— |
|
Due to affiliates |
|
28,571 |
|
|
24,257 |
|
Deferred rent
liability |
|
2,110,809 |
|
|
3,146,210 |
|
Payable to related
parties pursuant to tax receivable agreements |
|
37,960,213 |
|
|
45,486,114 |
|
Total liabilities |
|
173,765,495 |
|
|
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 September 30, 2016 and December 31,
2015 |
|
— |
|
|
— |
|
Class
A common stock, $0.01 par value 500,000,000 shares authorized;
6,602,374 and 5,822,672 shares issued and 6,602,374 and
5,798,614 shares outstanding as of September 30, 2016
and December 31, 2015, respectively |
|
66,024 |
|
|
58,227 |
|
Class
B common stock, $0.01 par value 50,000,000 shares authorized;
42,856,854 shares issued and outstanding as of
September 30, 2016 and December 31, 2015 |
|
428,569 |
|
|
428,569 |
|
Additional paid-in capital |
|
2,132,621 |
|
|
2,661,253 |
|
Accumulated deficit |
|
(817,027 |
) |
|
(30,905 |
) |
|
|
1,810,187 |
|
|
3,117,144 |
|
Less:
Treasury stock, at cost: 24,058 shares as of December 31, 2015 |
|
— |
|
|
(180,064 |
) |
Total stockholders' equity, Fifth Street Asset Management
Inc. |
|
1,810,187 |
|
|
2,937,080 |
|
Non-controlling interests |
|
605,320 |
|
|
(5,392,371 |
) |
Total equity (deficit) |
|
2,415,507 |
|
|
(2,455,291 |
) |
Total liabilities and equity (deficit) |
|
$ |
176,181,002 |
|
|
$ |
150,461,653 |
|
|
|
|
|
|
|
|
|
|
Exhibit C. Consolidated Statements of Income for the
Three and Nine Months Ended September 30, 2016 and
2015
|
|
For the Three Months Ended September
30, |
|
For the Nine Months Ended September
30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues |
|
|
|
|
|
|
|
|
Management fees (includes Part I Fees of $7,867,962 and $9,166,813
and $21,890,239 and $26,766,547 for the three months
and nine months ended September 30, 2016 and 2015,
respectively) |
|
$ |
19,670,420 |
|
|
$ |
23,310,135 |
|
|
$ |
58,049,388 |
|
|
$ |
69,094,654 |
|
Performance fees |
|
38,661 |
|
|
2,596 |
|
|
124,836 |
|
|
79,451 |
|
Other
fees |
|
2,748,115 |
|
|
2,176,510 |
|
|
6,482,213 |
|
|
5,672,077 |
|
Total revenues |
|
22,457,196 |
|
|
25,489,241 |
|
|
64,656,437 |
|
|
74,846,182 |
|
Expenses |
|
|
|
|
|
|
|
|
Compensation and benefits |
|
9,536,656 |
|
|
10,258,766 |
|
|
27,183,281 |
|
|
28,791,731 |
|
General,
administrative and other expenses |
|
7,424,927 |
|
|
4,179,089 |
|
|
24,806,542 |
|
|
10,551,314 |
|
Depreciation and amortization |
|
349,475 |
|
|
434,146 |
|
|
3,925,519 |
|
|
1,254,544 |
|
Total expenses |
|
17,311,058 |
|
|
14,872,001 |
|
|
55,915,342 |
|
|
40,597,589 |
|
Other income
(expense) |
|
|
|
|
|
|
|
|
Interest
income |
|
386,626 |
|
|
110,525 |
|
|
1,082,368 |
|
|
293,665 |
|
Interest
expense |
|
(1,149,549 |
) |
|
(507,647 |
) |
|
(3,344,996 |
) |
|
(1,337,827 |
) |
Income
from equity method investments |
|
1,550,487 |
|
|
15,295 |
|
|
3,554,541 |
|
|
5,343 |
|
Unrealized loss on MMKT Notes |
|
(2,582,405 |
) |
|
— |
|
|
— |
|
|
— |
|
Realized
gain on settlement of MMKT Notes |
|
2,592,751 |
|
|
— |
|
|
2,592,751 |
|
|
— |
|
Unrealized gain (loss) on beneficial interests in CLOs |
|
537,600 |
|
|
(23,148 |
) |
|
169,373 |
|
|
(590,546 |
) |
Gain on
extinguishment of debt |
|
— |
|
|
— |
|
|
2,000,000 |
|
|
— |
|
Adjustment of TRA liability for tax rate change |
|
— |
|
|
— |
|
|
7,525,901 |
|
|
— |
|
Loss on
legal settlement |
|
— |
|
|
— |
|
|
(9,250,000 |
) |
|
— |
|
Insurance
recoveries |
|
50,905 |
|
|
— |
|
|
12,297,636 |
|
|
— |
|
Unrealized gain on derivatives |
|
8,383,213 |
|
|
— |
|
|
— |
|
|
— |
|
Realized
loss on derivatives |
|
(3,078,357 |
) |
|
— |
|
|
(2,612,932 |
) |
|
— |
|
Loss on
investor settlement |
|
— |
|
|
— |
|
|
(10,419,274 |
) |
|
— |
|
Other
income (expense), net |
|
(50,000 |
) |
|
— |
|
|
(620,514 |
) |
|
122,000 |
|
Total other income (expense), net |
|
6,641,271 |
|
|
(404,975 |
) |
|
2,974,854 |
|
|
(1,507,365 |
) |
Income before
provision for income taxes |
|
11,787,409 |
|
|
10,212,265 |
|
|
11,715,949 |
|
|
32,741,228 |
|
Provision
for income taxes |
|
1,607,590 |
|
|
982,110 |
|
|
8,459,693 |
|
|
3,490,115 |
|
Net
income |
|
10,179,819 |
|
|
9,230,155 |
|
|
3,256,256 |
|
|
29,251,113 |
|
Net
income attributable to non-controlling interests |
|
(10,417,537 |
) |
|
(8,079,583 |
) |
|
(3,878,297 |
) |
|
(25,696,758 |
) |
Net income
(loss) attributable to Fifth Street Asset Management
Inc. |
|
$ |
(237,718 |
) |
|
$ |
1,150,572 |
|
|
$ |
(622,041 |
) |
|
$ |
3,554,355 |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share attributable to Fifth Street Asset Management Inc.
Class A common stock - Basic |
|
$ |
(0.04 |
) |
|
$ |
0.19 |
|
|
$ |
(0.11 |
) |
|
$ |
0.60 |
|
Net income
(loss) per share attributable to Fifth Street Asset Management Inc.
Class A common stock - Diluted |
|
$ |
(0.04 |
) |
|
$ |
0.19 |
|
|
$ |
(0.13 |
) |
|
$ |
0.60 |
|
Weighted
average shares of Class A common stock outstanding -
Basic |
|
5,908,407 |
|
|
5,901,718 |
|
|
5,847,139 |
|
|
5,956,389 |
|
Weighted
average shares of Class A common stock outstanding -
Diluted |
|
5,908,407 |
|
|
5,908,463 |
|
|
5,847,139 |
|
|
5,963,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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