RED BANK, N.J., March 19, 2018 /PRNewswire/ -- ZAIS Group
Holdings, Inc. (NASDAQ: ZAIS) ("ZAIS"), today reported financial
results for the three and twelve months ended December 31, 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.
FOURTH QUARTER 2017 HIGHLIGHTS
A summary of the Company's results for the three and twelve
months ended December 31, 2017 and
December 31, 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
|
Twelve Months
Ended
|
December
31,
2017
|
December
31,
2016
|
December
31,
2017
|
December
31,
2016
|
U.S.
GAAP
|
|
|
|
|
Net
income/(loss)
|
$2.2
|
$5.9
|
$(1.2)
|
$(3.8)
|
Net income/(loss) per
diluted weighted average share outstanding applicable to ZAIS Group
Holdings, Inc.
|
$0.00
|
$0.29
|
$(0.31)
|
$(0.37)
|
Net income/(loss)
before income taxes
|
$2.2
|
$5.9
|
$(1.2)
|
$(3.8)
|
Non-U.S.
GAAP
|
|
|
|
|
Net income/(loss)
(excluding Consolidated Funds of ZAIS Group)
|
$(0.1)
|
$6.1
|
$(6.7)
|
$(7.3)
|
Net income/(loss)
(excluding Consolidated Funds of ZAIS Group) per diluted weighted
average share outstanding
|
$0.00
|
$0.29
|
$(0.31)
|
$(0.37)
|
Adjusted
EBITDA
|
$0.0
|
$7.5
|
$(5.0)
|
$(1.9)
|
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 U.S. GAAP RESULTS
Operating Results – Fourth Quarter Ended December 31, 2017
The Company recorded U.S. GAAP net income for the three months
ended December 31, 2017 of
$2.2 million compared with U.S. GAAP
net income of $5.9 million for the
three months ended December 31,
2016. The decrease of $3.7
million in U.S. GAAP net income was primarily driven by a
decrease in revenues of $6.7 million
offset by a decrease in expenses of $1.0
million and an increase in other income of $2.0 million. The U.S. GAAP results include
the results of funds and structured financing entities which are
consolidated by the Company (the "Consolidated Funds").
Total revenues decreased by $6.7
million primarily due to a $6.5
million decrease in management fee income and a $1.6 million decrease in incentive fee income,
offset by an increase of $0.3 million
in reimbursement revenue and an increase of $1.0 million in income of Consolidated
Funds.
When excluding the October 2016
receipt of a one time $8.0 million
termination fee in connection with the termination of the
management agreement between ZAIS REIT Management LLC, a
consolidated subsidiary of ZAIS Group, and ZFC REIT, management fee
income increased from the prior year's quarter primarily due to the
increase in the number of CLOs managed by ZAIS.
Incentive fees decreased by $1.6
million primarily due to lower performance related to ZAIS
Managed Entities that crystalized incentive fees during the
respective quarters.
Reimbursement revenue increased by $0.3
million due to the reimbursement from certain ZAIS Managed
Entities for research and data services expenses incurred by ZAIS
Group during the fourth quarter of 2017 and paid directly to
vendors by ZAIS Group. Income of Consolidated Funds related
to ZAIS Zephyr A-6 LP's ("Zephyr A-6") investments in
unconsolidated ZAIS managed CLOs increased by $1.0 million.
Total expenses decreased by $1.0
million primarily due to a $2.3
million decrease in compensation and benefits offset by a
$0.9 million increase in general,
administrative and other expenses and a $0.4
million increase in expenses of Consolidated Funds.
Compensation and benefits decreased primarily due to a $1.1 million decrease in equity compensation
expense relating to the reduction in outstanding equity
compensation awards 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) and a $1.2 million decrease primarily due to reduced
bonus expense. General, administrative and other expenses
increased by $0.9 million primarily
due to an increase of $0.3 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 and an increase of $1.0 million relating to legal fees primarily
related to the Strategic Review and transaction costs offset by a
net decrease of $0.4 million in other
general and administrative costs.
Other income increased by $2.0
million primarily due to a $1.2
million increase in net gain (loss) on Consolidated Funds'
investments related to Zephyr A-6 and a $0.8
million decrease in net loss on beneficial interest of
consolidated collateralized financing entity which relates to
Zephyr A-6's investment in ZAIS CLO 5.
Operating Results – Year Ended December
31, 2017
The Company recorded U.S. GAAP net loss for the year ended
December 31, 2017 of $(1.2) million compared with a U.S. GAAP net loss
of $(3.8) million for the year ended
December 31, 2016. The decrease
of $2.6 million in U.S. GAAP net loss
was primarily driven by a decrease in expenses of $3.7 million offset by a decrease in revenues of
$0.8 million and a decrease in other
income of $0.3 million.
CONSOLIDATED NON-U.S. GAAP RESULTS
Please see the discussion of "Non-U.S. GAAP Financial Measures",
including the definitions of net income (loss) (excluding
Consolidated Funds of ZAIS Group) and Adjusted EBITDA, and
reconciliations of such non-U.S. GAAP financial measures to the
respective U.S. GAAP net income (loss) measures for the periods
discussed above at the end of this press release.
The Company's U.S. GAAP net income (loss) and non-U.S. GAAP
measures of income (loss) may fluctuate materially depending upon
the performance of ZAIS Managed Entities as well as other factors.
Accordingly, the U.S. GAAP net income (loss) and non-U.S. GAAP
measures of income (loss) in any particular period should not be
expected to be indicative of future results.
LIQUIDITY & CAPITAL RESOURCES
As of December 31, 2017, the
Company had cash and cash equivalents, excluding cash and cash
equivalents of Consolidated Variable Interest Entities, of
$41.6 million and no debt
obligations.
FOURTH QUARTER 2017 SUPPLEMENTAL INFORMATION
The Company's Fourth Quarter 2017 Supplemental Information –
December 31, 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-U.S. GAAP FINANCIAL INFORMATION
In addition to the results presented in accordance with
generally accepted accounting principles ("U.S. GAAP"), this press
release includes certain non-U.S. 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-U.S. GAAP financial measure that the Company defines as U.S.
GAAP net income (loss) excluding the consolidating effects of the
Consolidated Funds of ZAIS Group. Adjusted EBITDA is a
non-U.S. GAAP financial measure that the Company defines as U.S.
GAAP net income (loss) excluding consolidating effects of the
Consolidated Funds of ZAIS Group, equity-based compensation,
severance, taxes, depreciation and amortization expenses and
foreign currency translation adjustments.
The Company believes that providing investors with this non-U.S.
GAAP financial information, in addition to the related U.S. 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 U.S. GAAP, they should be considered along with, but not as
alternatives to, the Company's net income (loss) computed in
accordance with U.S. GAAP as a measure of the Company's financial
performance. In addition, because not all companies use
identical calculations, the Company's presentation of net income
(loss) (excluding Consolidated Funds of ZAIS Group) and Adjusted
EBITDA may not be comparable to other similarly-titled measures of
other companies.
ZAIS GROUP
HOLDINGS, INC. AND SUBSIDIARIES
|
|
Consolidated
Statements of Financial Condition
|
(Dollars in
thousands, except share amounts)
|
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
41,619
|
|
|
$
|
38,712
|
|
Income and fees
receivable
|
|
|
8,863
|
|
|
|
8,805
|
|
Investments in
affiliates, at fair value
|
|
|
10,151
|
|
|
|
5,273
|
|
Due from related
parties
|
|
|
798
|
|
|
|
734
|
|
Property and equipment,
net
|
|
|
278
|
|
|
|
274
|
|
Prepaid
expenses
|
|
|
967
|
|
|
|
906
|
|
Other assets
|
|
|
359
|
|
|
|
348
|
|
Assets of
Consolidated Variable Interest Entities
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
8,975
|
|
|
|
37,080
|
|
Investments, at fair
value - $46,136 and $0 pledged as
collateral for repurchase agreement,
at December 31,
2017 and December 31, 2016,
respectively.
|
|
|
114,911
|
|
|
|
404,365
|
|
Due from
broker
|
|
|
—
|
|
|
|
16,438
|
|
Other assets
|
|
|
968
|
|
|
|
1,210
|
|
Total
Assets
|
|
$
|
187,889
|
|
|
$
|
514,145
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
—
|
|
|
$
|
1,263
|
|
Compensation
payable
|
|
|
9,222
|
|
|
|
7,836
|
|
Due to related
parties
|
|
|
31
|
|
|
|
31
|
|
Fees payable
|
|
|
2,171
|
|
|
|
2,439
|
|
Other
liabilities
|
|
|
1,285
|
|
|
|
1,127
|
|
Liabilities of
Consolidated Variable Interest Entities
|
|
|
|
|
|
|
|
|
Notes payable of
consolidated CLO, at fair value
|
|
|
—
|
|
|
|
384,901
|
|
Repurchase
agreement
|
|
|
45,943
|
|
|
|
—
|
|
Due to
broker
|
|
|
—
|
|
|
|
24,462
|
|
Other
liabilities
|
|
|
415
|
|
|
|
2,121
|
|
Total
Liabilities
|
|
|
59,067
|
|
|
|
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;
14,555,113 and
13,900,917 shares issued and
outstanding at
December 31, 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 at December
31, 2017 and
December 31, 2016.
|
|
|
—
|
|
|
|
—
|
|
Additional paid-in
capital
|
|
|
64,365
|
|
|
|
63,413
|
|
Retained earnings
(Accumulated deficit)
|
|
|
(23,414)
|
|
|
|
(18,965)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(61)
|
|
|
|
(70)
|
|
Total
stockholders' equity, ZAIS Group Holdings, Inc.
|
|
|
40,891
|
|
|
|
44,379
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
19,568
|
|
|
|
22,258
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
68,363
|
|
|
|
23,328
|
|
Total
Equity
|
|
|
128,822
|
|
|
|
89,965
|
|
Total Liabilities
and Equity
|
|
$
|
187,889
|
|
|
$
|
514,145
|
|
ZAIS GROUP
HOLDINGS, INC. AND SUBSIDIARIES
|
|
Consolidated
Statements of Comprehensive Income (Loss)
|
(Dollars in
thousands, except share and per share amounts)
|
|
|
|
Three
Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
4,773
|
|
|
$
|
11,221
|
|
|
$
|
15,792
|
|
|
$
|
22,015
|
|
Incentive
income
|
|
|
3,833
|
|
|
|
5,437
|
|
|
|
11,573
|
|
|
|
9,346
|
|
Reimbursement
revenue
|
|
|
336
|
|
|
|
—
|
|
|
|
1,631
|
|
|
|
—
|
|
Other
revenues
|
|
|
77
|
|
|
|
78
|
|
|
|
324
|
|
|
|
316
|
|
Income of
Consolidated Funds
|
|
|
1,027
|
|
|
|
—
|
|
|
|
1,516
|
|
|
|
—
|
|
Total
Revenues
|
|
|
10,046
|
|
|
|
16,736
|
|
|
|
30,836
|
|
|
|
31,677
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
5,215
|
|
|
|
7,466
|
|
|
|
24,023
|
|
|
|
31,380
|
|
General,
administrative and other
|
|
|
4,040
|
|
|
|
3,140
|
|
|
|
15,300
|
|
|
|
12,263
|
|
Depreciation and
amortization
|
|
|
1
|
|
|
|
61
|
|
|
|
230
|
|
|
|
267
|
|
Expenses of
Consolidated Funds
|
|
|
451
|
|
|
|
18
|
|
|
|
734
|
|
|
|
82
|
|
Total
Expenses
|
|
|
9,707
|
|
|
|
10,685
|
|
|
|
40,287
|
|
|
|
43,992
|
|
Other income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments in affiliates
|
|
|
42
|
|
|
|
190
|
|
|
|
237
|
|
|
|
273
|
|
Other income
(expense)
|
|
|
62
|
|
|
|
17
|
|
|
|
110
|
|
|
|
762
|
|
Net gain (loss) of
Consolidated Funds' investments
|
|
|
1,769
|
|
|
|
525
|
|
|
|
5,787
|
|
|
|
8,333
|
|
Net gain (loss) on
beneficial interest of consolidated collateralized financing
entity
|
|
|
—
|
|
|
|
(842)
|
|
|
|
2,118
|
|
|
|
(842)
|
|
Total Other Income
(Loss)
|
|
|
1,873
|
|
|
|
(110)
|
|
|
|
8,252
|
|
|
|
8,526
|
|
Income (loss)
before income taxes
|
|
|
2,212
|
|
|
|
5,941
|
|
|
|
(1,199)
|
|
|
|
(3,789)
|
|
Income tax (benefit)
expense
|
|
|
3
|
|
|
|
7
|
|
|
|
22
|
|
|
|
(5)
|
|
Consolidated net
income (loss)
|
|
|
2,209
|
|
|
|
5,934
|
|
|
|
(1,221)
|
|
|
|
(3,784)
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(17)
|
|
|
|
(81)
|
|
|
|
14
|
|
|
|
(343)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
2,192
|
|
|
$
|
5,853
|
|
|
$
|
(1,207)
|
|
|
$
|
(4,127)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of
Consolidated Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in Consolidated Funds
|
|
$
|
2,267
|
|
|
$
|
(183)
|
|
|
$
|
5,451
|
|
|
$
|
3,505
|
|
Stockholders' equity,
ZAIS Group Holdings, Inc.
|
|
|
(38)
|
|
|
|
4,036
|
|
|
|
(4,449)
|
|
|
|
(5,160)
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
(20)
|
|
|
|
2,081
|
|
|
|
(2,223)
|
|
|
|
(2,129)
|
|
Total
Allocation of Consolidated Net Income (Loss)
|
|
$
|
2,209
|
|
|
$
|
5,934
|
|
|
$
|
(1,221)
|
|
|
$
|
(3,784)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of
Total Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in Consolidated Funds
|
|
$
|
2,267
|
|
|
$
|
(183)
|
|
|
$
|
5,451
|
|
|
$
|
3,505
|
|
Stockholders' equity,
ZAIS Group Holdings, Inc.
|
|
|
(50)
|
|
|
|
3,982
|
|
|
|
(4,440)
|
|
|
|
(5,388)
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
(25)
|
|
|
|
2,054
|
|
|
|
(2,218)
|
|
|
|
(2,244)
|
|
Total
Allocation of Total Comprehensive Income (Loss)
|
|
$
|
2,192
|
|
|
$
|
5,853
|
|
|
$
|
(1,207)
|
|
|
$
|
(4,127)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (Loss), per Class A common share applicable to ZAIS Group
Holdings, Inc. – Basic
|
|
$
|
0.00
|
|
|
$
|
0.29
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.37)
|
|
Consolidated Net
Income (Loss), per Class A common share applicable to ZAIS Group
Holdings, Inc. – Diluted
|
|
$
|
0.00
|
|
|
$
|
0.29
|
|
|
$
|
(0.31)
|
|
|
$
|
(0.37)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of Class A common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,529,259
|
|
|
|
13,900,917
|
|
|
|
14,369,295
|
|
|
|
13,891,245
|
|
Diluted
|
|
|
21,529,259
|
|
|
|
21,033,275
|
|
|
|
21,369,295
|
|
|
|
20,891,245
|
|
The following supplemental financial information illustrates the
consolidating effects of the Consolidated Funds on the Company's
financial position and results of operations:
|
|
December 31,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
41,619
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41,619
|
|
Income and fees
receivable
|
|
|
8,863
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,863
|
|
Investments in
affiliates, at fair value
|
|
|
20,669
|
|
|
|
—
|
|
|
|
(10,518)
|
|
|
|
10,151
|
|
Due from related
parties
|
|
|
798
|
|
|
|
—
|
|
|
|
—
|
|
|
|
798
|
|
Property and
equipment, net
|
|
|
278
|
|
|
|
—
|
|
|
|
—
|
|
|
|
278
|
|
Prepaid
expenses
|
|
|
967
|
|
|
|
—
|
|
|
|
—
|
|
|
|
967
|
|
Other
assets
|
|
|
359
|
|
|
|
—
|
|
|
|
—
|
|
|
|
359
|
|
Assets of
Consolidated Variable Interest Entities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
—
|
|
|
|
8,975
|
|
|
|
—
|
|
|
|
8,975
|
|
Investments, at fair
value
|
|
|
—
|
|
|
|
114,911
|
|
|
|
—
|
|
|
|
114,911
|
|
Other
assets
|
|
|
—
|
|
|
|
1,353
|
|
|
|
(385)
|
|
|
|
968
|
|
Total
Assets
|
|
$
|
73,553
|
|
|
$
|
125,239
|
|
|
$
|
(10,903)
|
|
|
$
|
187,889
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation
payable
|
|
$
|
9,222
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,222
|
|
Due to related
parties
|
|
|
31
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
Fees
payable
|
|
|
2,556
|
|
|
|
—
|
|
|
|
(385)
|
|
|
|
2,171
|
|
Other
liabilities
|
|
|
1,285
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,285
|
|
Liabilities of
Consolidated Variable Interest Entities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
Agreement
|
|
|
—
|
|
|
|
45,943
|
|
|
|
—
|
|
|
|
45,943
|
|
Other
liabilities
|
|
|
—
|
|
|
|
415
|
|
|
|
—
|
|
|
|
415
|
|
Total
Liabilities
|
|
|
13,094
|
|
|
|
46,358
|
|
|
|
(385)
|
|
|
|
59,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Class A Common
Stock
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Class B Common
Stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Additional
paid-in-capital
|
|
|
64,365
|
|
|
|
—
|
|
|
|
—
|
|
|
|
64,365
|
|
Retained earnings
(Accumulated deficit)
|
|
|
(23,414)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23,414)
|
|
Accumulated other comprehensive income
(loss)
|
|
|
(61)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(61)
|
|
Total stockholders' equity,
ZAIS Group Holdings, Inc.
|
|
|
40,891
|
|
|
|
—
|
|
|
|
—
|
|
|
|
40,891
|
|
Non-controlling
interests in ZAIS Group Parent, LLC
|
|
|
19,568
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,568
|
|
Non-controlling
interests in Consolidated Funds
|
|
|
—
|
|
|
|
78,881
|
|
|
|
(10,518)
|
|
|
|
68,363
|
|
Total
Equity
|
|
|
60,459
|
|
|
|
78,881
|
|
|
|
(10,518)
|
|
|
|
128,822
|
|
Total Liabilities
and Equity
|
|
$
|
73,553
|
|
|
$
|
125,239
|
|
|
$
|
(10,903)
|
|
|
$
|
187,889
|
|
|
|
|
|
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 Variable Interest Entities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Variable Interest Entities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable of
consolidated CLO, at fair value
|
|
|
—
|
|
|
|
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
December 31,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
4,773
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,773
|
|
Incentive
income
|
|
|
3,833
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,833
|
|
Reimbursement
revenue
|
|
|
336
|
|
|
|
—
|
|
|
|
—
|
|
|
|
336
|
|
Other
revenues
|
|
|
77
|
|
|
|
—
|
|
|
|
—
|
|
|
|
77
|
|
Income of
Consolidated Funds
|
|
|
—
|
|
|
|
2,021
|
|
|
|
(994)
|
|
|
|
1,027
|
|
Total
Revenues
|
|
|
9,019
|
|
|
|
2,021
|
|
|
|
(994)
|
|
|
|
10,046
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
5,215
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,215
|
|
General,
administrative and other
|
|
|
4,468
|
|
|
|
—
|
|
|
|
(428)
|
|
|
|
4,040
|
|
Depreciation and
amortization
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
451
|
|
|
|
—
|
|
|
|
451
|
|
Total
Expenses
|
|
|
9,684
|
|
|
|
451
|
|
|
|
(428)
|
|
|
|
9,707
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments in affiliates
|
|
|
548
|
|
|
|
—
|
|
|
|
(506)
|
|
|
|
42
|
|
Other income
(expense)
|
|
|
62
|
|
|
|
—
|
|
|
|
—
|
|
|
|
62
|
|
Net gain (loss) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
1,203
|
|
|
|
566
|
|
|
|
1,769
|
|
Net gain (loss) on
beneficial interest of consolidated collateralized financing
entity
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total Other Income
(Loss)
|
|
|
610
|
|
|
|
1,203
|
|
|
|
60
|
|
|
|
1,873
|
|
Income (loss)
before income taxes
|
|
|
(55)
|
|
|
|
2,773
|
|
|
|
(506)
|
|
|
|
2,212
|
|
Income tax (benefit)
expense
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
Consolidated net
income (loss)
|
|
|
(58)
|
|
|
|
2,773
|
|
|
|
(506)
|
|
|
|
2,209
|
|
Other Comprehensive
Income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(17)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(17)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(75)
|
|
|
$
|
2,773
|
|
|
$
|
(506)
|
|
|
$
|
2,192
|
|
|
|
|
|
Three months
Ended
December 31,
2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
Thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
11,258
|
|
|
$
|
—
|
|
|
$
|
(37)
|
|
|
$
|
11,221
|
|
Incentive
income
|
|
|
5,437
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,437
|
|
Other
revenues
|
|
|
78
|
|
|
|
—
|
|
|
|
—
|
|
|
|
78
|
|
Total
Revenues
|
|
|
16,773
|
|
|
|
—
|
|
|
|
(37)
|
|
|
|
16,736
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
7,466
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,466
|
|
General,
administrative and other
|
|
|
3,140
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,140
|
|
Depreciation and
amortization
|
|
|
61
|
|
|
|
—
|
|
|
|
—
|
|
|
|
61
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
55
|
|
|
|
(37)
|
|
|
|
18
|
|
Total
Expenses
|
|
|
10,667
|
|
|
|
55
|
|
|
|
(37)
|
|
|
|
10,685
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments in affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
190
|
|
|
|
190
|
|
Other income
(expense)
|
|
|
17
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
Net gain (loss) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
(316)
|
|
|
|
841
|
|
|
|
525
|
|
Net gain (loss) of
beneficial interest of collateralized financing entity
|
|
|
—
|
|
|
|
—
|
|
|
|
(842)
|
|
|
|
(842)
|
|
Total
Other Income (Loss)
|
|
|
17
|
|
|
|
(316)
|
|
|
|
189
|
|
|
|
(110)
|
|
Income (loss)
before income taxes
|
|
|
6,123
|
|
|
|
(371)
|
|
|
|
189
|
|
|
|
5,941
|
|
Income tax (benefit)
expense
|
|
|
7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
Consolidated net
income (loss)
|
|
|
6,116
|
|
|
|
(371)
|
|
|
|
189
|
|
|
|
5,934
|
|
Other Comprehensive
Income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(81)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(81)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
6,035
|
|
|
$
|
(371)
|
|
|
$
|
189
|
|
|
$
|
5,853
|
|
|
|
|
|
Year
Ended
December 31,
2017
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
16,299
|
|
|
$
|
—
|
|
|
$
|
(507)
|
|
|
$
|
15,792
|
|
Incentive
income
|
|
|
11,573
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11,573
|
|
Reimbursement
revenue
|
|
|
1,631
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,631
|
|
Other
revenues
|
|
|
324
|
|
|
|
—
|
|
|
|
—
|
|
|
|
324
|
|
Income of
Consolidated Funds
|
|
|
—
|
|
|
|
7,801
|
|
|
|
(6,285)
|
|
|
|
1,516
|
|
Total
Revenues
|
|
|
29,827
|
|
|
|
7,801
|
|
|
|
(6,792)
|
|
|
|
30,836
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
24,023
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,023
|
|
General,
administrative and other
|
|
|
16,392
|
|
|
|
—
|
|
|
|
(1,092)
|
|
|
|
15,300
|
|
Depreciation and
amortization
|
|
|
230
|
|
|
|
—
|
|
|
|
—
|
|
|
|
230
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
734
|
|
|
|
—
|
|
|
|
734
|
|
Total
Expenses
|
|
|
40,645
|
|
|
|
734
|
|
|
|
(1,092)
|
|
|
|
40,287
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments in affiliates
|
|
|
4,058
|
|
|
|
—
|
|
|
|
(3,821)
|
|
|
|
237
|
|
Other income
(expense)
|
|
|
110
|
|
|
|
—
|
|
|
|
—
|
|
|
|
110
|
|
Net gain (loss) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
2,204
|
|
|
|
3,583
|
|
|
|
5,787
|
|
Net gain (loss) on
beneficial interest of consolidated collateralized financing
entity
|
|
|
—
|
|
|
|
—
|
|
|
|
2,118
|
|
|
|
2,118
|
|
Total Other Income
(Loss)
|
|
|
4,168
|
|
|
|
2,204
|
|
|
|
1,880
|
|
|
|
8,252
|
|
Income (loss)
before income taxes
|
|
|
(6,650)
|
|
|
|
9,271
|
|
|
|
(3,820)
|
|
|
|
(1,199)
|
|
Income tax (benefit)
expense
|
|
|
22
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
Consolidated net
income (loss)
|
|
|
(6,672)
|
|
|
|
9,271
|
|
|
|
(3,820)
|
|
|
|
(1,221)
|
|
Other Comprehensive
Income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
14
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(6,658)
|
|
|
$
|
9,271
|
|
|
$
|
(3,820)
|
|
|
$
|
(1,207)
|
|
|
|
|
|
Year
Ended
December 31,
2016
|
|
|
|
ZAIS
|
|
|
Consolidated
Funds
|
|
|
Consolidating
Entries
|
|
|
Consolidated
|
|
|
|
( Dollars in
Thousands )
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
$
|
22,271
|
|
|
$
|
—
|
|
|
$
|
(256)
|
|
|
$
|
22,015
|
|
Incentive
income
|
|
|
9,346
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,346
|
|
Other
revenues
|
|
|
316
|
|
|
|
—
|
|
|
|
—
|
|
|
|
316
|
|
Total
Revenues
|
|
|
31,933
|
|
|
|
—
|
|
|
|
(256)
|
|
|
|
31,677
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
31,380
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31,380
|
|
General,
administrative and other
|
|
|
12,263
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12,263
|
|
Depreciation and
amortization
|
|
|
267
|
|
|
|
—
|
|
|
|
—
|
|
|
|
267
|
|
Expenses of
Consolidated Funds
|
|
|
—
|
|
|
|
338
|
|
|
|
(256)
|
|
|
|
82
|
|
Total
Expenses
|
|
|
43,910
|
|
|
|
338
|
|
|
|
(256)
|
|
|
|
43,992
|
|
Other Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments in affiliates
|
|
|
3,921
|
|
|
|
—
|
|
|
|
(3,648)
|
|
|
|
273
|
|
Other income
(expense)
|
|
|
762
|
|
|
|
—
|
|
|
|
—
|
|
|
|
762
|
|
Net gain (loss) of
Consolidated Funds' investments
|
|
|
—
|
|
|
|
7,491
|
|
|
|
842
|
|
|
|
8,333
|
|
Net gain (loss) on
beneficial interest of collateralized financing entity
|
|
|
—
|
|
|
|
—
|
|
|
|
(842)
|
|
|
|
(842)
|
|
Total
Other Income (Loss)
|
|
|
4,683
|
|
|
|
7,491
|
|
|
|
(3,648)
|
|
|
|
8,526
|
|
Income (loss)
before income taxes
|
|
|
(7,294)
|
|
|
|
7,153
|
|
|
|
(3,648)
|
|
|
|
(3,789)
|
|
Income tax (benefit)
expense
|
|
|
(5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5)
|
|
Consolidated net
income (loss)
|
|
|
(7,289)
|
|
|
|
7,153
|
|
|
|
(3,648)
|
|
|
|
(3,784)
|
|
Other Comprehensive
Income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(343)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(343)
|
|
Total
Comprehensive Income (Loss)
|
|
$
|
(7,632)
|
|
|
$
|
7,153
|
|
|
$
|
(3,648)
|
|
|
$
|
(4,127)
|
|
The following tables present the reconciliations of our
consolidated U.S. GAAP net income to (i) our non-U.S. GAAP
financial measure of net income (loss) (excluding Consolidated
Funds of ZAIS Group) and (ii) our non-U.S. GAAP financial
measure of Adjusted EBITDA:
|
|
Three Months
Ended
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollars in
thousands)
|
|
Consolidated net
income (loss) (U.S. GAAP Net Income (Loss))
|
|
$
|
2,209
|
|
|
$
|
5,934
|
|
Add
back: Elimination of Management fee income
|
|
|
—
|
|
|
|
37
|
|
Less: Income of Consolidated
Funds
|
|
|
(1,027)
|
|
|
|
—
|
|
Less: Elimination of rebate
expense
|
|
|
(428)
|
|
|
|
—
|
|
Add back: Elimination
of Net gain (loss) on investments in affiliates
|
|
|
506
|
|
|
|
(190)
|
|
Add back: Expenses of
Consolidated Funds
|
|
|
451
|
|
|
|
18
|
|
Less: Net gain on
Consolidated Funds' investments
|
|
|
(1,769)
|
|
|
|
(525)
|
|
(Less)/Add back: Net
(gain) loss on beneficial interest of consolidated collateralized
financing entity
|
|
|
—
|
|
|
|
842
|
|
Net income (loss)
(excluding Consolidated Funds of ZAIS Group) – Non-U.S.
GAAP
|
|
|
(58)
|
|
|
|
6,116
|
|
|
|
|
|
|
|
|
|
|
Add back (less): Tax
expense (benefit)
|
|
|
3
|
|
|
|
7
|
|
Add back:
Compensation attributable to equity compensation
|
|
|
71
|
|
|
|
1,138
|
|
Add back: Severance
costs
|
|
|
—
|
|
|
|
206
|
|
Add back:
Depreciation and amortization
|
|
|
1
|
|
|
|
61
|
|
Adjusted EBITDA –
Non-U.S. GAAP
|
|
$
|
17
|
|
|
$
|
7,528
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollars in
thousands)
|
|
Consolidated net
income (loss) (U.S. GAAP Net Income (Loss))
|
|
$
|
(1,221)
|
|
|
$
|
(3,784)
|
|
Add
back: Elimination of Management fee income
|
|
|
507
|
|
|
|
256
|
|
Less: Income of
Consolidated Funds
|
|
|
(1,516)
|
|
|
|
—
|
|
Less: Elimination of fee rebate
expense
|
|
|
(1,092)
|
|
|
|
—
|
|
Add back: Elimination
of Net gain on investments in affiliates
|
|
|
3,821
|
|
|
|
3,648
|
|
Add back: Expenses of
Consolidated Funds
|
|
|
734
|
|
|
|
82
|
|
Less: Net gain on
Consolidated Funds' investments
|
|
|
(5,787)
|
|
|
|
(8,333)
|
|
(Less)/Add back: Net
(gain) loss on beneficial interest of consolidated collateralized
financing entity
|
|
|
(2,118)
|
|
|
|
842
|
|
Net income (loss)
(excluding Consolidated Funds of ZAIS Group) – Non-U.S.
GAAP
|
|
|
(6,672)
|
|
|
|
(7,289)
|
|
|
|
|
|
|
|
|
|
|
Add back (less): Tax
expense (benefit)
|
|
|
22
|
|
|
|
(5)
|
|
Add back:
Compensation attributable to equity compensation
|
|
|
1,307
|
|
|
|
4,089
|
|
Add back: Severance
costs
|
|
|
72
|
|
|
|
995
|
|
Add back:
Depreciation and amortization
|
|
|
230
|
|
|
|
267
|
|
Adjusted EBITDA –
Non-U.S. GAAP
|
|
$
|
(5,041)
|
|
|
$
|
(1,943)
|
|
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 $4.512 billion of assets under management as of
December 31, 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: competition, the
ability of the Company to grow and manage growth profitably, and
retain its management and key employees; the ability to
rationalize our expense structure and specifically to exit the
residential whole loan related businesses in an orderly fashion, or
at all; the outcome of the strategic review of the Company's
business and availability of suitable strategic options; the
ability of the Company to negotiate and enter into an agreement for
a potential sale, business combination, going private or other
strategic transaction; the ability of the Company to consummate any
potential strategic transaction and to realize any anticipated
benefits of such transaction; the outcome of any legal
proceedings that may be instituted against the Company or others;
the inability to continue to be listed on the NASDAQ Stock Market;
operational expenses and costs related to being a public company;
changes in political, economic or industry conditions, the interest
rate environment or financial and capital markets, which could
result in changes in demand for products or services or in the
value of assets under management; the relative and absolute
investment performance of advised or sponsored investment products;
the availability of suitable investment opportunities; changes in
interest rates; changes in the yield curve; changes in prepayment
rates; the availability and terms of financing; conditions in the
market for mortgage-related investments; the impact of capital
improvement projects; the impact of future acquisitions or
divestitures; the impact, extent and timing of technological
changes and the adequacy of intellectual property protection; the
impact of legislative and regulatory actions and reforms and
regulatory, supervisory or enforcement actions of government
agencies relating to the Company; terrorist activities and
international hostilities, which may adversely affect the general
economy, financial and capital markets, specific industries, and
the Company; the ability to attract and retain highly talented
professionals; the impact of changes to tax legislation and,
generally, the tax position of the Company; legislative and
regulatory changes that could adversely affect the business of the
Company; and other factors, including those set forth in the Risk
Factors section of the Company's Annual Report on Form 10-K
and other reports filed by the Company with the Securities and
Exchange Commission (the "SEC"), copies of which are available on
the SEC's website, www.sec.gov. The Company undertakes no
obligation to update these statements for revisions or changes
after the date of this release, except as required by law.
View original
content:http://www.prnewswire.com/news-releases/zais-group-holdings-inc-reports-fourth-quarter-and-full-year-2017-results-300616146.html
SOURCE ZAIS Group Holdings, Inc.