RED BANK, N.J., Nov. 13, 2017 /PRNewswire/ -- ZAIS Group
Holdings, Inc. (NASDAQ: ZAIS) ("ZAIS"), today reported financial
results for the three and nine months ended September 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.
THIRD QUARTER 2017 HIGHLIGHTS
A summary of the Company's results for the three and nine months
ended September 30, 2017 and
September 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
|
Nine Months
Ended
|
September 30,
2017
|
September 30,
2016
|
September 30,
2017
|
September 30,
2016
|
U.S.
GAAP
|
|
|
|
|
Net
income/(loss)
|
$1.6
|
$1.6
|
$(3.4)
|
$(9.7)
|
Net income/(loss) per
diluted weighted average share outstanding applicable to ZAIS
GroupHoldings, Inc.
|
$0.03
|
$(0.02)
|
$(0.31)
|
$(0.66)
|
Net income/(loss)
before income taxes
|
$1.6
|
$1.6
|
$(3.4)
|
$(9.7)
|
Non-GAAP
|
|
|
|
|
Net income/(loss)
(excluding Consolidated Funds of ZAIS Group)
|
$0.6
|
$(0.3)
|
$(6.6)
|
$(13.4)
|
Net income/(loss)
(excluding Consolidated Funds of ZAIS Group) per diluted weighted
average share outstanding
|
$0.03
|
$(0.02)
|
$(0.31)
|
$(0.66)
|
Adjusted
EBITDA
|
$0.8
|
$1.1
|
$(5.1)
|
$(9.5)
|
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 – Third Quarter Ended September 30, 2017
The Company recorded GAAP net income for the three months ended
September 30, 2017 of $1.6 million compared with GAAP net income of
$1.6 million for the three months
ended September 30, 2016. For
the quarter ending September 30,
2017, there was an increase in revenues of $2.0 million, a decrease in expenses of
$0.2 million, offset by a decrease in
other income of $2.2 million, as
compared to the same period ending September
30, 2016. 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 $2.0
million primarily due to a $0.9
million increase in incentive income that was primarily
driven by an increase of $1.9 million
for certain funds that were crystalized during the current quarter,
offset by a decrease of $1.0 million
in incentive fees attributable to a fund that generated incentive
fees in the prior year period, but was liquidated in the prior year
so no incentive fees were realized in the current period.
Management fees increased by $0.6
million due to $0.9 million of
fees recognized for certain ZAIS managed CLOs that were not
recognized in the comparable prior year period and $0.6 million driven by increased performance of
certain ZAIS Managed Entities in the current quarter. These
favorable management fee variances were offset by a decrease of
$0.7 million due to the termination
of the management agreement between ZAIS REIT Management and ZFC
REIT and a decrease of $0.2 million
due to the liquidation of certain managed accounts. 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 during the current quarter and paid
directly to vendors by ZAIS Group and a $0.1
million increase in income of Consolidated Funds related to
ZAIS Zephyr A-6 LP's ("Zephyr A-6") investments in unconsolidated
ZAIS managed CLOs.
Total expenses decreased by $0.2
million primarily due to a $1.1
million decrease in compensation and benefits offset, by a
$0.7 million increase in general,
administrative and other expenses and a $0.2
million increase in expenses of Consolidated Funds.
Compensation and benefits decreased primarily due to a $1.2 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 $0.7 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 $0.1 million in expenses relating to research and
data services incurred by ZAIS Group and paid directly to vendors
by ZAIS Group relating to the management of the ZAIS Managed
Entities and an increase of $0.3
million relating to legal fees offset, by a net decrease of
$0.1 million in other general and
administrative costs.
Other income decreased by $2.2
million primarily due to a $2.8
million decrease in net gain (loss) on Consolidated Funds'
investments related to Zephyr A-6 offset by a $0.6 million increase in net gain on beneficial
interest of consolidated collateralized financing entity which
relates to Zephyr A-6's investment in ZAIS CLO 5.
Operating Results – Nine Months Ended September 30, 2017
The Company recorded GAAP net loss for the nine months ended
September 30, 2017 of $(3.4) million compared with a GAAP net loss of
$(9.7) million for the nine months
ended September 30, 2016. The
decrease of $6.3 million in GAAP net
loss was primarily driven by an increase in revenues of
$5.8 million and a decrease in
expenses of $2.7 million, offset by a
decrease in other income of $2.3
million.
ACQUISITION PROPOSAL
On September 5, 2017, Z
Acquisition LLC entered into a share purchase agreement with
Ramguard LLC pursuant to which Z Acquisition LLC will acquire
6,500,000 shares of Class A Common Stock of the Company at a
purchase price of $4.00 per share for
a combination of cash and a note (the "Ramguard Agreement"). After
giving effect to the Ramguard Agreement, Christian Zugel would hold, directly or
indirectly, 6,800,000 shares of the Class A Common Stock and
3,325,000 Class A Units of ZGP.
On September 5, 2017, the Special
Committee of the Board of Directors of the Company received a
letter (the "Letter") from Christian
Zugel seeking to pursue discussions with the Special
Committee to take the Company private by acquiring the issued and
outstanding shares of Class A Common Stock of the Company, other
than shares held by Christian Zugel and his affiliates, at
$4.00 per share in an all cash
transaction by way of a merger. A copy of the Letter is included as
Exhibit 99.1 in the 8K filed with the SEC on September 7, 2017. Discussions between
Christian Zugel and the Special
Committee are continuing. There is no assurance that an
agreement will be reached.
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 September 30, 2017, the
Company had cash and cash equivalents, on an unconsolidated basis,
of $16.2 million and no debt
obligations.
THIRD QUARTER 2017 SUPPLEMENTAL INFORMATION
The Company's Third Quarter 2017 Supplemental Information –
September 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)
|
|
|
|
September
30, 2017
|
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
16,241
|
|
|
$
|
38,712
|
|
Income and fees
receivable
|
|
|
6,264
|
|
|
|
8,805
|
|
Investments in
affiliates, at fair value
|
|
|
10,153
|
|
|
|
5,273
|
|
Due from related
parties
|
|
|
958
|
|
|
|
734
|
|
Property and
equipment, net
|
|
|
222
|
|
|
|
274
|
|
Prepaid
expenses
|
|
|
1,457
|
|
|
|
906
|
|
Other
assets
|
|
|
371
|
|
|
|
348
|
|
Assets of
Consolidated Funds
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
37
|
|
|
|
37,080
|
|
Investments, at fair
value
|
|
|
63,607
|
|
|
|
404,365
|
|
Due from
broker
|
|
|
—
|
|
|
|
16,438
|
|
Receivable for
securities sold
|
|
|
38,700
|
|
|
|
—
|
|
Other
assets
|
|
|
1,620
|
|
|
|
1,210
|
|
Total
Assets
|
|
$
|
139,630
|
|
|
$
|
514,145
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
—
|
|
|
$
|
1,263
|
|
Compensation
payable
|
|
|
7,162
|
|
|
|
7,836
|
|
Due to related
parties
|
|
|
31
|
|
|
|
31
|
|
Fees
payable
|
|
|
61
|
|
|
|
2,439
|
|
Other
liabilities
|
|
|
1,251
|
|
|
|
1,127
|
|
Liabilities of
Consolidated Funds
|
|
|
|
|
|
|
|
|
Notes payable of
consolidated CLO, at fair value
|
|
|
—
|
|
|
|
384,901
|
|
Payables for
securities purchased
|
|
|
38,034
|
|
|
|
—
|
|
Due to
broker
|
|
|
—
|
|
|
|
24,462
|
|
Other
liabilities
|
|
|
236
|
|
|
|
2,121
|
|
Total
Liabilities
|
|
|
46,775
|
|
|
|
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 September 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
|
|
|
64,278
|
|
|
|
63,413
|
|
Retained earnings
(Accumulated deficit)
|
|
|
(23,376)
|
|
|
|
(18,965)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(49)
|
|
|
|
(70)
|
|
Total stockholders'
equity, ZAIS Group Holdings, Inc.
|
|
|
40,854
|
|
|
|
44,379
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
19,609
|
|
|
|
22,258
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
32,392
|
|
|
|
23,328
|
|
Total
Equity
|
|
|
92,855
|
|
|
|
89,965
|
|
Total Liabilities
and Equity
|
|
$
|
139,630
|
|
|
$
|
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
September 30,
|
|
|
Nine
Months Ended
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
4,223
|
|
|
$
|
3,654
|
|
|
$
|
11,019
|
|
|
$
|
10,794
|
|
Incentive
income
|
|
|
4,559
|
|
|
|
3,614
|
|
|
|
7,740
|
|
|
|
3,909
|
|
Reimbursement
revenue
|
|
|
418
|
|
|
|
—
|
|
|
|
1,295
|
|
|
|
—
|
|
Other
revenues
|
|
|
77
|
|
|
|
79
|
|
|
|
247
|
|
|
|
238
|
|
Income of
Consolidated Funds
|
|
|
85
|
|
|
|
—
|
|
|
|
489
|
|
|
|
—
|
|
Total
Revenues
|
|
|
9,362
|
|
|
|
7,347
|
|
|
|
20,790
|
|
|
|
14,941
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
5,775
|
|
|
|
6,908
|
|
|
|
18,808
|
|
|
|
23,914
|
|
General,
administrative and other
|
|
|
3,712
|
|
|
|
2,963
|
|
|
|
11,260
|
|
|
|
9,123
|
|
Depreciation and
amortization
|
|
|
118
|
|
|
|
79
|
|
|
|
229
|
|
|
|
206
|
|
Expenses of
Consolidated Funds
|
|
|
210
|
|
|
|
16
|
|
|
|
283
|
|
|
|
64
|
|
Total
Expenses
|
|
|
9,815
|
|
|
|
9,966
|
|
|
|
30,580
|
|
|
|
33,307
|
|
Other income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
81
|
|
|
|
46
|
|
|
|
195
|
|
|
|
83
|
|
Other income
(expense)
|
|
|
32
|
|
|
|
53
|
|
|
|
48
|
|
|
|
745
|
|
Net gain (loss) of
Consolidated Funds' investments
|
|
|
1,304
|
|
|
|
4,115
|
|
|
|
4,018
|
|
|
|
7,808
|
|
Net gain (loss) on
beneficial interest of consolidated
collateralized financing
entity
|
|
|
620
|
|
|
|
—
|
|
|
|
2,118
|
|
|
|
—
|
|
Total Other Income
(Loss)
|
|
|
2,037
|
|
|
|
4,214
|
|
|
|
6,379
|
|
|
|
8,636
|
|
Income (loss)
before income taxes
|
|
|
1,584
|
|
|
|
1,595
|
|
|
|
(3,411)
|
|
|
|
(9,730)
|
|
Income tax (benefit)
expense
|
|
|
9
|
|
|
|
(21)
|
|
|
|
19
|
|
|
|
(12)
|
|
Consolidated net
income (loss), net of tax
|
|
|
1,575
|
|
|
|
1,616
|
|
|
|
(3,430)
|
|
|
|
(9,718)
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(8)
|
|
|
|
(61)
|
|
|
|
31
|
|
|
|
(262)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
1,567
|
|
|
$
|
1,555
|
|
|
$
|
(3,399)
|
|
|
$
|
(9,980)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of
Consolidated Net Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in Consolidated Funds
|
|
$
|
977
|
|
|
$
|
1,902
|
|
|
$
|
3,184
|
|
|
$
|
3,688
|
|
Stockholders' equity,
ZAIS Group Holdings, Inc.
|
|
|
403
|
|
|
|
(286)
|
|
|
|
(4,411)
|
|
|
|
(9,196)
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
195
|
|
|
|
—
|
|
|
|
(2,203)
|
|
|
|
(4,210)
|
|
Total
Allocation of Consolidated Net Income (Loss), net of
tax
|
|
$
|
1,575
|
|
|
$
|
1,616
|
|
|
$
|
(3,430)
|
|
|
$
|
(9,718)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of
Total Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in Consolidated Funds
|
|
$
|
977
|
|
|
$
|
1,902
|
|
|
$
|
3,184
|
|
|
$
|
3,688
|
|
Stockholders' equity,
ZAIS Group Holdings, Inc.
|
|
|
398
|
|
|
|
(326)
|
|
|
|
(4,390)
|
|
|
|
(9,370)
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
192
|
|
|
|
(21)
|
|
|
|
(2,193)
|
|
|
|
(4,298)
|
|
Total
Allocation of Total Comprehensive Income (Loss)
|
|
$
|
1,567
|
|
|
$
|
1,555
|
|
|
$
|
(3,399)
|
|
|
$
|
(9,980)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (Loss), net of tax per Class A common
share applicable to ZAIS Group
Holdings, Inc. – Basic
|
|
$
|
0.03
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.66)
|
|
Consolidated Net
Income (Loss), net of tax per Class A common
share applicable to ZAIS Group
Holdings, Inc. – Diluted
|
|
$
|
0.03
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of Class A common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,480,782
|
|
|
|
13,900,917
|
|
|
|
14,315,387
|
|
|
|
13,887,997
|
|
Diluted
|
|
|
21,480,782
|
|
|
|
20,900,917
|
|
|
|
21,315,387
|
|
|
|
20,887,997
|
|
The following supplemental financial information illustrates the
consolidating effects of the Consolidated Funds on the Company's
financial position and results of operations:
|
|
September 30,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
16,241
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16,241
|
|
Income and fees
receivable
|
|
|
6,264
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,264
|
|
Investments in
affiliates, at fair value
|
|
|
43,868
|
|
|
|
—
|
|
|
|
(33,715)
|
|
|
|
10,153
|
|
Due from related
parties
|
|
|
958
|
|
|
|
—
|
|
|
|
—
|
|
|
|
958
|
|
Property and
equipment, net
|
|
|
222
|
|
|
|
—
|
|
|
|
—
|
|
|
|
222
|
|
Prepaid
expenses
|
|
|
1,457
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,457
|
|
Other
assets
|
|
|
371
|
|
|
|
—
|
|
|
|
—
|
|
|
|
371
|
|
Assets of
Consolidated Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
—
|
|
|
|
37
|
|
|
|
—
|
|
|
|
37
|
|
Investments, at fair
value
|
|
|
—
|
|
|
|
63,607
|
|
|
|
—
|
|
|
|
63,607
|
|
Receivable for
securities sold
|
|
|
—
|
|
|
|
38,700
|
|
|
|
—
|
|
|
|
38,700
|
|
Other
assets
|
|
|
—
|
|
|
|
2,033
|
|
|
|
(413)
|
|
|
|
1,620
|
|
Total
Assets
|
|
$
|
69,381
|
|
|
|
104,377
|
|
|
|
(34,128)
|
|
|
|
139,630
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation
payable
|
|
$
|
7,162
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,162
|
|
Due to related
parties
|
|
|
31
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
Fees
payable
|
|
|
474
|
|
|
|
—
|
|
|
|
(413)
|
|
|
|
61
|
|
Other
liabilities
|
|
|
1,251
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,251
|
|
Liabilities of
Consolidated Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable of
consolidated CLO
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Payables for
securities purchased
|
|
|
—
|
|
|
|
38,034
|
|
|
|
—
|
|
|
|
38,034
|
|
Other
liabilities
|
|
|
—
|
|
|
|
236
|
|
|
|
—
|
|
|
|
236
|
|
Total
Liabilities
|
|
|
8,918
|
|
|
|
38,270
|
|
|
|
(413)
|
|
|
|
46,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Common
Stock
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Class B Common
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Additional
paid-in-capital
|
|
|
64,278
|
|
|
|
—
|
|
|
|
—
|
|
|
|
64,278
|
|
Retained earnings
(Accumulated deficit)
|
|
|
(23,376)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23,376)
|
|
Accumulated other comprehensive income
(loss)
|
|
|
(49)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(49)
|
|
Total stockholders'
equity, ZAIS Group Holdings, Inc.
|
|
|
40,854
|
|
|
|
—
|
|
|
|
—
|
|
|
|
40,854
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
19,609
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,609
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
—
|
|
|
|
66,107
|
|
|
|
(33,715)
|
|
|
|
32,392
|
|
Total
Equity
|
|
|
60,463
|
|
|
|
66,107
|
|
|
|
(33,715)
|
|
|
|
92,855
|
|
Total Liabilities
and Equity
|
|
$
|
69,381
|
|
|
|
104,377
|
|
|
|
(34,128)
|
|
|
|
139,630
|
|
|
|
December 31,
2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
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
September 30,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
4,401
|
|
|
|
—
|
|
|
|
(178)
|
|
|
|
4,223
|
|
Incentive
income
|
|
|
4,559
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,559
|
|
Reimbursement
revenue
|
|
|
418
|
|
|
|
—
|
|
|
|
—
|
|
|
|
418
|
|
Other
revenues
|
|
|
77
|
|
|
|
—
|
|
|
|
—
|
|
|
|
77
|
|
Income of
Consolidated Funds
|
|
|
—
|
|
|
|
2,163
|
|
|
|
(2,078)
|
|
|
|
85
|
|
Total
Revenues
|
|
|
9,455
|
|
|
|
2,163
|
|
|
|
(2,256)
|
|
|
|
9,362
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
5,775
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,775
|
|
General,
administrative and other
|
|
|
4,085
|
|
|
|
—
|
|
|
|
(373)
|
|
|
|
3,712
|
|
Depreciation and
amortization
|
|
|
118
|
|
|
|
—
|
|
|
|
—
|
|
|
|
118
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
210
|
|
|
|
—
|
|
|
|
210
|
|
Total
Expenses
|
|
|
9,978
|
|
|
|
210
|
|
|
|
(373)
|
|
|
|
9,815
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
1,098
|
|
|
|
—
|
|
|
|
(1,017)
|
|
|
|
81
|
|
Other income
(expense)
|
|
|
32
|
|
|
|
—
|
|
|
|
—
|
|
|
|
32
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
41
|
|
|
|
1,263
|
|
|
|
1,304
|
|
Net gain (loss) on
beneficial interest of consolidated
collateralized financing
entity
|
|
|
—
|
|
|
|
—
|
|
|
|
620
|
|
|
|
620
|
|
Total Other Income
(Loss)
|
|
|
1,130
|
|
|
|
41
|
|
|
|
866
|
|
|
|
2,037
|
|
Income (loss)
before income taxes
|
|
|
607
|
|
|
|
1,994
|
|
|
|
(1,017)
|
|
|
|
1,584
|
|
Income tax (benefit)
expense
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9
|
|
Consolidated net
income (loss), net of tax
|
|
|
598
|
|
|
|
1,994
|
|
|
|
(1,017)
|
|
|
|
1,575
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
590
|
|
|
|
1,994
|
|
|
|
(1,017)
|
|
|
|
1,567
|
|
|
|
Three months
Ended
September 30,
2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
Thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
3,872
|
|
|
$
|
—
|
|
|
$
|
(218)
|
|
|
$
|
3,654
|
|
Incentive
income
|
|
|
3,614
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,614
|
|
Other
revenues
|
|
|
79
|
|
|
|
—
|
|
|
|
—
|
|
|
|
79
|
|
Total
Revenues
|
|
|
7,565
|
|
|
|
—
|
|
|
|
(218)
|
|
|
|
7,347
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
6,908
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,908
|
|
General,
administrative and other
|
|
|
2,963
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,963
|
|
Depreciation and
amortization
|
|
|
79
|
|
|
|
—
|
|
|
|
—
|
|
|
|
79
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
234
|
|
|
|
(218)
|
|
|
|
16
|
|
Total
Expenses
|
|
|
9,950
|
|
|
|
234
|
|
|
|
(218)
|
|
|
|
9,966
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
2,025
|
|
|
|
—
|
|
|
|
(1,979)
|
|
|
|
46
|
|
Other income
(expense)
|
|
|
53
|
|
|
|
—
|
|
|
|
—
|
|
|
|
53
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
4,115
|
|
|
|
—
|
|
|
|
4,115
|
|
Total Other Income
(Loss)
|
|
|
2,078
|
|
|
|
4,115
|
|
|
|
(1,979)
|
|
|
|
4,214
|
|
Income (loss)
before income taxes
|
|
|
(307)
|
|
|
|
3,881
|
|
|
|
(1,979)
|
|
|
|
1,595
|
|
Income tax (benefit)
expense
|
|
|
(21)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(21)
|
|
Consolidated net
income (loss), net of tax
|
|
|
(286)
|
|
|
|
3,881
|
|
|
|
(1,979)
|
|
|
|
1,616
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(61)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(61)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(347)
|
|
|
$
|
3,881
|
|
|
$
|
(1,979)
|
|
|
$
|
1,555
|
|
|
|
Nine Months
Ended
September 30,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
11,526
|
|
|
|
—
|
|
|
|
(507)
|
|
|
|
11,019
|
|
Incentive
income
|
|
|
7,740
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,740
|
|
Reimbursement
revenue
|
|
|
1,295
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,295
|
|
Other
revenues
|
|
|
247
|
|
|
|
—
|
|
|
|
—
|
|
|
|
247
|
|
Income of
Consolidated Funds
|
|
|
—
|
|
|
|
5,781
|
|
|
|
(5,292)
|
|
|
|
489
|
|
Total
Revenues
|
|
|
20,808
|
|
|
|
5,781
|
|
|
|
(5,799)
|
|
|
|
20,790
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
18,808
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18,808
|
|
General,
administrative and other
|
|
|
11,924
|
|
|
|
—
|
|
|
|
(664)
|
|
|
|
11,260
|
|
Depreciation and
amortization
|
|
|
229
|
|
|
|
—
|
|
|
|
—
|
|
|
|
229
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
283
|
|
|
|
—
|
|
|
|
283
|
|
Total
Expenses
|
|
|
30,961
|
|
|
|
283
|
|
|
|
(664)
|
|
|
|
30,580
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
3,510
|
|
|
|
—
|
|
|
|
(3,315)
|
|
|
|
195
|
|
Other income
(expense)
|
|
|
48
|
|
|
|
—
|
|
|
|
—
|
|
|
|
48
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
1,001
|
|
|
|
3,017
|
|
|
|
4,018
|
|
Net gain (loss) on
beneficial interest of consolidated
collateralized financing
entity
|
|
|
—
|
|
|
|
—
|
|
|
|
2,118
|
|
|
|
2,118
|
|
Total Other Income
(Loss)
|
|
|
3,558
|
|
|
|
1,001
|
|
|
|
1,820
|
|
|
|
6,379
|
|
Income (loss)
before income taxes
|
|
|
(6,595)
|
|
|
|
6,499
|
|
|
|
(3,315)
|
|
|
|
(3,411)
|
|
Income tax (benefit)
expense
|
|
|
19
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19
|
|
Consolidated net
income (loss), net of tax
|
|
|
(6,614)
|
|
|
|
6,499
|
|
|
|
(3,315)
|
|
|
|
(3,430)
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
31
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(6,583)
|
|
|
|
6,499
|
|
|
|
(3,315)
|
|
|
|
(3,399)
|
|
|
|
Nine months
Ended
September 30,
2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
Thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
11,012
|
|
|
$
|
—
|
|
|
$
|
(218)
|
|
|
$
|
10,794
|
|
Incentive
income
|
|
|
3,909
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,909
|
|
Other
revenues
|
|
|
238
|
|
|
|
—
|
|
|
|
—
|
|
|
|
238
|
|
Total
Revenues
|
|
|
15,159
|
|
|
|
—
|
|
|
|
(218)
|
|
|
|
14,941
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
23,914
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,914
|
|
General,
administrative and other
|
|
|
9,123
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,123
|
|
Depreciation and
amortization
|
|
|
206
|
|
|
|
—
|
|
|
|
—
|
|
|
|
206
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
282
|
|
|
|
(218)
|
|
|
|
64
|
|
Total
Expenses
|
|
|
33,243
|
|
|
|
282
|
|
|
|
(218)
|
|
|
|
33,307
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
3,921
|
|
|
|
—
|
|
|
|
(3,838)
|
|
|
|
83
|
|
Other income
(expense)
|
|
|
745
|
|
|
|
—
|
|
|
|
—
|
|
|
|
745
|
|
Net gains (losses) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
7,808
|
|
|
|
—
|
|
|
|
7,808
|
|
Total Other Income
(Loss)
|
|
|
4,666
|
|
|
|
7,808
|
|
|
|
(3,838)
|
|
|
|
8,636
|
|
Income (loss)
before income taxes
|
|
|
(13,418)
|
|
|
|
7,526
|
|
|
|
(3,838)
|
|
|
|
(9,730)
|
|
Income tax (benefit)
expense
|
|
|
(12)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(12)
|
|
Consolidated net
income (loss), net of tax
|
|
|
(13,406)
|
|
|
|
7,526
|
|
|
|
(3,838)
|
|
|
|
(9,718)
|
|
Other Comprehensive
Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(262)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(262)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(13,668)
|
|
|
$
|
7,526
|
|
|
$
|
(3,838)
|
|
|
$
|
(9,980)
|
|
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
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollars in
thousands)
|
|
Consolidated net
income (loss), net of tax (GAAP Net Income (Loss))
|
|
$
|
1,575
|
|
|
$
|
1,616
|
|
Add
back: Elimination of Management fee income
|
|
|
178
|
|
|
|
218
|
|
Less: Income of Consolidated
Funds
|
|
|
(85)
|
|
|
|
—
|
|
Less: Elimination of rebate
expense
|
|
|
(373)
|
|
|
|
—
|
|
Add back: Elimination
of Net gain (loss) on investments
|
|
|
1,017
|
|
|
|
1,979
|
|
Add back: Expenses of
Consolidated Funds
|
|
|
210
|
|
|
|
16
|
|
Net (gain) loss on
Consolidated Funds' investments
|
|
|
(1,304)
|
|
|
|
(4,115)
|
|
Net (gain) loss on
beneficial interest of consolidated collateralized financing
entity
|
|
|
(620)
|
|
|
|
—
|
|
Net income (loss)
(excluding Consolidated Funds of ZAIS Group) – Non-GAAP
|
|
|
598
|
|
|
|
(286)
|
|
|
|
|
|
|
|
|
|
|
Add back: Tax
expense
|
|
|
9
|
|
|
|
(21)
|
|
Add back:
Compensation attributable to equity compensation
|
|
|
68
|
|
|
|
1,269
|
|
Add back: Severance
costs
|
|
|
—
|
|
|
|
27
|
|
Add back:
Depreciation and amortization
|
|
|
118
|
|
|
|
79
|
|
Adjusted EBITDA –
Non-GAAP
|
|
$
|
793
|
|
|
$
|
1,068
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollars in
thousands)
|
|
Consolidated net
income (loss), net of tax (GAAP Net Income (Loss))
|
|
$
|
(3,430)
|
|
|
$
|
(9,718)
|
|
Add
back: Elimination of Management fee income
|
|
|
507
|
|
|
|
218
|
|
Less: Income of
Consolidated Funds
|
|
|
(489)
|
|
|
|
—
|
|
Less: Elimination of fee rebate
expense
|
|
|
(664)
|
|
|
|
—
|
|
Add back: Elimination
of Net gain (loss) on investments
|
|
|
3,315
|
|
|
|
3,838
|
|
Add back: Expenses of
Consolidated Funds
|
|
|
283
|
|
|
|
64
|
|
Net (gain) loss on
Consolidated Funds' investments
|
|
|
(4,018)
|
|
|
|
(7,808)
|
|
Net (gain) loss on
beneficial interest of consolidated collateralized financing
entity
|
|
|
(2,118)
|
|
|
|
—
|
|
Net income (loss)
(excluding Consolidated Funds of ZAIS Group) – Non-GAAP
|
|
|
(6,614)
|
|
|
|
(13,406)
|
|
|
|
|
|
|
|
|
|
|
Add back: Tax
expense
|
|
|
19
|
|
|
|
(12)
|
|
Add back:
Compensation attributable to equity compensation
|
|
|
1,236
|
|
|
|
2,951
|
|
Add back: Severance
costs
|
|
|
72
|
|
|
|
789
|
|
Add back:
Depreciation and amortization
|
|
|
229
|
|
|
|
206
|
|
Adjusted EBITDA –
Non-GAAP
|
|
$
|
(5,058)
|
|
|
$
|
(9,472)
|
|
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 $4.144 billion of assets under management as of
September 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.
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SOURCE ZAIS Group Holdings, Inc.