NEW YORK, March 24, 2014 /PRNewswire/ -- CIFC Corp.
(NASDAQ: CIFC) ("CIFC" or the "Company") today announced its
results for the fourth quarter and year ended December 31,
2013.
Highlights
- Economic Net Income ("ENI", a non-GAAP measure) for the fourth
quarter and full year 2013 was $13.0
million and $41.9
million(1), respectively, compared to
$12.4 million and $22.2 million(1) for the fourth
quarter and full year of the prior year, respectively.
- GAAP net income (loss) for the fourth quarter and full year
2013 was $4.9 million and
$23.4 million, respectively, as
compared to $(2.5)
million(2) and $(8.7)
million(2) for the same period in the prior year,
respectively.
- Fee Earning Assets Under Management ("Fee Earning AUM" or
"AUM") from loan-based products totaled $12.0 billion as of December 31, 2013 as
compared to $11.8 billion as of
December 31, 2012 and $12.3
billion as of September 30,
2013.
- During the fourth quarter, the Company sponsored the issuance
of one new CLO and increased subscriptions to other loan-based
products that represented approximately $607.6 million of new AUM.
- During 2013, the Company sponsored the issuance of five new
CLOs and increased subscriptions to other loan-based products that
represented approximately $3.0
billion of new AUM.
- CIFC was voted CLO Manager of the Year - Americas by Private
Debt Investor in its inaugural annual awards.
- Subsequent to year end, the Company sponsored the issuance of
one new CLO that represents approximately $600 million of new loan-based AUM.
- CIFC declares a cash dividend of $0.10 per share. The dividend will be paid on
April 25, 2014 to shareholders of
record as of the close of business on April
4, 2014.
Explanatory
Notes:
|
(1)
|
Prior year ENI has
been adjusted to make it consistent with current year ENI by
excluding investment advisory fees from non-core investment
products (i.e. Legacy ABS and Corporate Bond collateralized debt
obligations ("non-core")).
|
(2)
|
Amounts in the prior
year have been restated to reflect immaterial adjustments
identified in the current year.
|
Executive Overview
2013 was an important year for CIFC as we started repositioning
the Company from a monoline CLO manager to a broad based U.S.
credit manager. CIFC now also manages multiple credit funds and
separately managed accounts with aggregate AUM of greater than
$1.0 billion. During 2013, we
invested $25.0 million to seed two
new credit funds. We saw growth in all revenue categories,
especially incentive fees, which reflects continued strong
performance relative to fund return targets, particularly for the
CIFC family of CLOs. New CLO issuance has continued at a robust
pace while AUM was relatively flat due to the high runoff rate of
legacy CLOs driven by very high loan refinancing volumes and
its impact on older, amortizing CLOs and calls.
Selected Financial
Metrics
|
(In thousands,
except per share data) (unaudited)
|
|
NON-GAAP FINANCIAL
MEASURES (1)
|
4Q'13
|
4Q'12
|
% Change vs.
4Q'12
|
YTD
'13
|
YTD
'12
|
% Change vs.
YTD'12
|
Management Fees -
Senior
|
$
|
5,810
|
|
$
|
4,750
|
|
22%
|
$
|
21,817
|
|
$
|
16,969
|
|
29%
|
Management Fees -
Subordinated
|
8,945
|
|
7,730
|
|
16%
|
33,745
|
|
29,533
|
|
14%
|
Incentive
fees
|
4,173
|
|
1,331
|
|
214%
|
16,272
|
|
2,490
|
|
553%
|
Total Investment
Advisory Fees
|
18,928
|
|
13,811
|
|
37%
|
71,834
|
|
48,992
|
|
47%
|
Net Investment
Income
|
7,631
|
|
8,823
|
|
(14)%
|
16,243
|
|
13,377
|
|
21%
|
Total ENI
Revenues
|
26,559
|
|
22,634
|
|
17%
|
88,077
|
|
62,369
|
|
41%
|
Compensation and
benefits
|
7,519
|
|
4,331
|
|
74%
|
26,572
|
|
20,810
|
|
28%
|
Other operating
expenses
|
4,524
|
|
4,461
|
|
1%
|
13,720
|
|
13,463
|
|
2%
|
Corporate interest
expense
|
1,471
|
|
1,490
|
|
(1)%
|
5,865
|
|
5,912
|
|
(1)%
|
Total ENI
Expenses
|
13,514
|
|
10,282
|
|
31%
|
46,157
|
|
40,185
|
|
15%
|
ENI
(1)
|
$
|
13,045
|
|
$
|
12,352
|
|
6%
|
$
|
41,920
|
|
$
|
22,184
|
|
89%
|
ENI per share -
basic
|
$
|
0.63
|
|
$
|
0.59
|
|
7%
|
$
|
2.02
|
|
$
|
1.09
|
|
85%
|
ENI per share -
diluted (2) (3)
|
$
|
0.54
|
|
$
|
0.53
|
|
2%
|
$
|
1.76
|
|
$
|
1.04
|
|
69%
|
ENI Weighted average
shares outstanding - basic
|
20,795
|
|
20,816
|
|
—%
|
20,801
|
|
20,356
|
|
2%
|
ENI Weighted average
shares outstanding - diluted (3)
|
25,947
|
|
24,948
|
|
4%
|
25,737
|
|
24,488
|
|
5%
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES (1)
|
4Q'13
|
4Q'12
|
% Change vs.
4Q'12
|
YTD
'13
|
YTD
'12
|
% Change vs.
YTD'12
|
EBIT (4)
|
$
|
14,516
|
|
$
|
13,842
|
|
5%
|
$
|
47,785
|
|
$
|
28,096
|
|
70%
|
EBITDA (5)
|
$
|
14,720
|
|
$
|
14,007
|
|
5%
|
$
|
48,519
|
|
$
|
28,585
|
|
70%
|
EBITDA Margin
(6)
|
|
55%
|
|
62%
|
|
(7)%
|
55%
|
|
46%
|
|
9%
|
Fee Related EBITDA
Margin (6)
|
|
37%
|
|
38%
|
|
(1)%
|
45%
|
|
31%
|
|
14%
|
ENI Margin
(6)
|
|
49%
|
|
55%
|
|
(6)%
|
48%
|
|
36%
|
|
12%
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL
MEASURES - AUM
|
12/31/2013
|
|
9/30/2013
|
% Change
vs.
9/30/2013
|
12/31/2012
|
% Change vs.
12/31/12
|
Fee Earning AUM
from loan-based products (7)
|
$12,045,859
|
|
$12,280,555
|
(2)%
|
$11,844,898
|
2%
|
|
|
|
|
|
|
|
SELECTED GAAP
RESULTS
|
4Q'13
|
4Q'12
|
% Change vs.
4Q'12
|
YTD
'13
|
YTD
'12
|
% Change vs.
YTD'12
|
Total net
revenues
|
$
|
1,831
|
|
$
|
2,650
|
|
(31)%
|
$
|
8,733
|
|
$
|
10,922
|
|
(20)%
|
Total
expenses
|
$
|
19,828
|
|
$
|
17,322
|
|
14%
|
$
|
61,970
|
|
$
|
60,841
|
|
2%
|
Net income (loss)
attributable to CIFC Corp. (8)
|
$
|
4,891
|
|
$
|
(2,484)
|
|
n/m
|
$
|
23,371
|
|
$
|
(8,699)
|
|
n/m
|
Earnings (loss)
per share - basic (8)
|
$
|
0.24
|
|
$
|
(0.12)
|
|
n/m
|
$
|
1.12
|
|
$
|
(0.43)
|
|
n/m
|
Earnings (loss)
per share - diluted (2) (8)
|
$
|
0.21
|
|
$
|
(0.12)
|
|
n/m
|
$
|
0.98
|
|
$
|
(0.43)
|
|
n/m
|
Weighted average
shares outstanding - basic
|
20,795
|
|
20,816
|
|
—%
|
20,801
|
|
20,356
|
|
2%
|
Weighted average
shares outstanding - diluted
|
25,947
|
|
20,816
|
|
25%
|
25,737
|
|
20,356
|
|
26%
|
Explanatory
Notes:
|
(1)
|
See Appendix for a
detailed description of these non-GAAP measures and reconciliations
from net income (loss) attributable to CIFC Corp. to non-GAAP
measures. Prior year ENI has been adjusted to make it consistent
with current year ENI by excluding investment advisory fees
attributable to non-core investment products (i.e.: Legacy ABS and
Corporate Bond collateralized debt obligations
("non-core")).
|
(2)
|
The numerator in the
dilution calculation has been adjusted to add-back the effect of
convertible note interest charges (before taxes for ENI and after
taxes for GAAP).
|
(3)
|
GAAP weighted average
shares outstanding was used as ENI weighted average shares
outstanding for the current year. For the three months and year
ended December 31, 2012, ENI weighted average shares outstanding
included an adjustment for the dilution of convertible notes as
they were anti-dilutive under GAAP.
|
(4)
|
EBIT is ENI before
corporate interest expense. See Appendix.
|
(5)
|
EBITDA is EBIT before
depreciation of fixed assets. See Appendix.
|
(6)
|
EBITDA Margin is
EBITDA divided by Total ENI Revenue. Fee Related EBITDA Margin is
EBITDA less Net Investment Income divided by Total Investment
Advisory Fees. ENI Margin is ENI divided by Total ENI
Revenue.
|
(7)
|
Amount excludes Fee
Earning AUM attributable to non-core products of $0.8 billion, $1.1
billion and $2.5 billion as of December 31, 2013, September 30,
2013 and December 31, 2012, respectively. Fee Earning AUM
attributable to non-core products are expected to continue to
decline as these funds run-off per their contractual
terms.
|
(8)
|
Amounts in the prior
year have been restated to reflect immaterial adjustments
identified in the current year.
|
|
YTD'13 - ENI Total
Investment
Advisory Fees
|
Senior management
fees
|
30%
|
Subordinated
management fees
|
47%
|
Incentive
fees
|
23%
|
Total ENI Investment Advisory Fees
|
100%
|
|
|
|
|
|
YTD'12 - ENI Total
Investment
Advisory Fees
|
Senior management
fees
|
35%
|
Subordinated
management fees
|
60%
|
Incentive
fees
|
5%
|
Total ENI Investment Advisory Fees
|
100%
|
Fourth Quarter Overview
CIFC reported ENI of $13.0 million
for the fourth quarter of 2013, as compared to $12.4 million for the same period in the prior
year. On December 18, 2013, the
Company entered into a multi-year employment contract with
Peter Gleysteen to serve as Vice
Chairman of the Company's Board of Directors and a senior adviser
to the Company; the agreement accelerated the vesting of his stock
option awards which resulted in an additional $1.8 million of compensation and benefits expense
recognized during the fourth quarter of 2013. Excluding this
accelerated compensation cost, ENI increased period to period by
$2.4 million or 19.4% primarily
driven by higher management and incentive fees. Incentive fees
increased as (i) the Company earned 50% of incentive fees realized
on legacy CIFC CLOs (previously, all incentive fees were paid to
CIFC Parent Holdings LLC ("CIFC Parent") in connection with the
2011 merger) and (ii) more CLOs reached their incentive hurdles
compared to the same period in the prior year. Management fees
increased from the same period in the prior year as the Company
earned revenues on new CLOs and funds sponsored since the fourth
quarter of 2012. These revenue increases were partially offset by
(i) decreases in management fees from certain legacy CLOs that are
maturing pursuant to their contractual terms and (ii) increases in
compensation costs to support the growth and diversification of the
business.
CIFC reported GAAP net income attributable to CIFC Corp. of
$4.9 million for the fourth quarter
of 2013, as compared to $(2.5)
million in the same period of the prior year. GAAP operating
results increased by $7.4 million
from the prior year period due to the $0.6
million increase noted above (see Non-GAAP Financial
Measures section for a reconciliation between GAAP and Non-GAAP
ENI). In addition, GAAP operating results increased by $6.8 million primarily due to (i) a $5.0 million reduction in tax expense during the
current quarter, (ii) a $2.1 million
increase in net gains from contingent liabilities due to changes in
the expected performance of certain CLOs, (iii) the absence of
restructuring charges of which the Company incurred $2.0 million in the fourth quarter of the prior
year and (iv) a reduction in total non-cash compensation of
$0.5 million related to profits
interests granted by CIFC Parent in June 2011. These gains were partially offset
by a $1.1 million reduction in
revenues from fee sharing (GAAP presents fees gross of fee sharing)
and non-core revenues, as well as an increase in intangible
impairment and amortization costs of $1.8
million as we determined the carrying value of our non-core
investment products was no longer recoverable.
Fiscal Year Overview
CIFC reported ENI of $41.9 million
for the year ended December 31, 2013,
as compared to $22.2 million for the
prior year. ENI increased year over year by $19.7 million or 89% (and $21.5 million or 97%, excluding from current year
ENI the $1.8 million accelerated
compensation cost as noted above), primarily driven by higher
management and incentive fees. Incentive fees increased as (i) the
Company earned 50% of incentive fees realized on legacy CIFC CLOs
(previously, all incentive fees were paid to CIFC Parent in
connection with the 2011 merger) and (ii) more CLOs reached their
incentive hurdles in the current year. Management fees increased
from the prior year as the Company earned revenues on new CLOs and
funds sponsored since the fourth quarter of 2012. In addition, net
investment income increased as we realized more gains in 2013
from our warehouse investments compared to the prior year. These
revenue increases were partially offset by (i) decreases in
management fees from certain legacy CLOs that are maturing pursuant
to their contractual terms and (ii) increases in compensation costs
to support the continued growth and diversification of the
business.
CIFC reported GAAP net income attributable to CIFC Corp. of
$23.4 million for the year ended
2013, as compared to $(8.7) million
in the same period of the prior year. GAAP operating results
increased by $32.1 million from the
prior year primarily due to the $19.7
million increase noted above (see Non-GAAP Financial
Measures section for a reconciliation between GAAP and Non-GAAP
ENI). In addition, GAAP operating results increased by $12.4 million due to (i) a $13.7 million increase in net gains from
contingent liabilities primarily related to the absence of
$11.5 million of losses recognized in
the prior year as we expected better performance on our fee sharing
CLOs, (ii) the absence of restructuring charges related to the
Merger with Legacy CIFC of $7.3
million in the prior year, (iii) an increase of $5.6 million in revenue related to incentive fees
realized on legacy CIFC CLOs (GAAP presents fees gross, before fee
sharing) and (iv) a reduction in total intangible impairment and
amortization costs of $1.3 million.
These gains were offset by increases in (i) income tax expense
of $8.0 million, (ii) non-cash
compensation of $3.8 million
primarily related to profits interests granted by CIFC Parent in
June 2011 and (iii) a reduction in
total strategic transaction gains of $3.7
million, primarily related to the sale of Gillespie CLO PLC
in January 2012.
Fee Earning AUM
Investment advisory fees earned from investment products the
Company manages on behalf of third party investors are the
Company's primary source of revenue. These fees typically consist
of senior and subordinated management fees based on a percentage of
the investment product's assets and, in some cases, incentive fees
based on the returns the Company generates for investors in the
products. Incentive fees are generally paid to the Company as funds
mature when the relevant incentive return hurdles and certain other
restrictions have been met.
The Company's total loan-based Fee Earning AUM was approximately
$12.0 billion as of December 31,
2013. During the fourth quarter, the Company sponsored the issuance
of one new CLO, increased subscriptions to other loan-based
products and launched two new credit funds, increasing Fee Earning
AUM by approximately $607.6 million.
New AUM was offset by the call of CIFC Funding 2007-IV, Ltd. (AUM
of $303.4 million) and declines
in Fee Earning AUM for certain CLOs which have reached the
end of their contractual reinvestment periods, after which capital
is returned to investors as the loan assets underlying the CLOs
repay principal.
During the year, total Fee Earning AUM increased by
approximately $3.0 billion as the
Company (i) sponsored the issuance of five new CLOs, (ii) entered
into management agreements for separately managed accounts,
(iii) launched two credit funds and (iv) increased subscriptions to
its existing credit fund. New AUM was mostly offset by calls
and redemptions of CLOs and declines in Fee Earning AUM for certain
CLOs which have reached the end of their contractual reinvestment
periods, after which capital is returned to investors as the loan
assets underlying the CLOs repay principal.
The following table summarizes Fee Earning AUM for the Company's
significant loan-based products (1):
|
|
December 31,
2013
|
|
September 30,
2013
|
|
December 31,
2012
|
(in thousands,
except # of Products)
|
|
# of
Products
|
|
Fee Earning
AUM(2)
|
|
# of
Products
|
|
Fee Earning
AUM(2)
|
|
# of
Products
|
|
Fee Earning
AUM(2)
|
Post 2011
CLOs
|
|
8
|
|
|
$
|
4,127,951
|
|
|
7
|
|
|
$
|
3,622,438
|
|
|
3
|
|
|
$
|
1,579,558
|
|
Legacy CLOs
(3)
|
|
20
|
|
|
6,811,382
|
|
|
24
|
|
|
7,626,653
|
|
|
29
|
|
|
9,599,220
|
|
Total CLOs
|
|
28
|
|
|
10,939,333
|
|
|
31
|
|
|
11,249,091
|
|
|
32
|
|
|
11,178,778
|
|
Other loan-based
products (4)
|
|
6
|
|
|
1,106,526
|
|
|
4
|
|
|
1,031,464
|
|
|
3
|
|
|
666,120
|
|
AUM from
loan-based products
|
|
34
|
|
|
$
|
12,045,859
|
|
|
35
|
|
|
$
|
12,280,555
|
|
|
35
|
|
|
$
|
11,844,898
|
|
|
Explanatory
Notes:
|
(1)
|
Table excludes Fee
Earning AUM attributable to non-core products of $0.8 billion, $1.1
billion and $2.5 billion as of December 31, 2013, September 30,
2013 and December 31, 2012, respectively. Fee Earning AUM
attributable to non-core products are expected to continue to
decline as these funds run-off per their contractual
terms.
|
(2)
|
Fee Earning AUM
generally reflects the aggregate principal or notional balance of
the collateral and, in some cases, the cash balance held by the CLO
as of the date of the last trustee report received for each CLO
prior to the respective AUM date.
|
(3)
|
Legacy CLOs represent
all managed CLOs issued prior to 2011, including CLOs acquired
since 2011 but issued prior to 2011.
|
(4)
|
Other loan-based
products investment advisory fee structures vary by fund and may
not be similar to a CLO.
|
($ in
thousands)
|
Legacy
CLOs
|
Post 2011
CLOs
|
Other
loan-based
products
|
|
|
|
|
Q4 '11
|
10,555,255
|
-
|
73,249
|
Q1 '12
|
9,945,083
|
398,683
|
73,256
|
Q2 '12
|
9,545,456
|
401,313
|
133,828
|
Q3 '12 (1)
|
9,804,751
|
848,714
|
320,042
|
Q4 '12
|
9,599,220
|
1,579,558
|
666,120
|
Q1 '13
|
9,004,131
|
2,585,214
|
780,288
|
Q2 '13
|
8,344,616
|
3,219,531
|
822,534
|
Q3 '13
|
7,626,653
|
3,622,438
|
1,031,464
|
Q4 '13
|
6,811,382
|
4,127,951
|
1,106,526
|
|
|
|
|
Explanatory
Note:
|
(1)
|
Increase in AUM on
the Legacy CLOs is the result of the acquisition of the rights to
manage four "Navigator" CLOs during September 2012.
|
Total loan-based Fee Earning AUM activity for the three months
and year ended December 31, 2013 are as follows ($ in
thousands):
Activity during
4Q'13
|
|
Amount
|
|
Activity during
YTD '13
|
|
Amount
|
September 30,
2013
|
|
$
|
12,280,555
|
|
|
December 31,
2012
|
|
$
|
11,844,898
|
|
CLO New Issuances
|
|
501,689
|
|
|
CLO New Issuances
|
|
2,530,869
|
|
CLO Principal Paydown
|
|
(411,828)
|
|
|
CLO Principal
Paydown
|
|
(2,013,497)
|
|
CLO Calls, Redemptions and
Sales
|
|
(385,911)
|
|
|
CLO Calls, Redemptions and
Sales
|
|
(681,167)
|
|
Fund Subscriptions
|
|
105,950
|
|
|
Fund
Subscriptions
|
|
494,161
|
|
Fund Redemptions
|
|
—
|
|
|
Fund Redemptions
|
|
(10,354)
|
|
Other (1)
|
|
(44,596)
|
|
|
Other (1)
|
|
(119,051)
|
|
December 31,
2013
|
|
$
|
12,045,859
|
|
|
December 31,
2013
|
|
$
|
12,045,859
|
|
|
Explanatory
Note:
|
(1)
|
Other includes
changes in collateral balances of CLOs between periods and market
value changes in certain other loan-based products.
|
Liquidity and Capital Resources
As of December 31, 2013, total cash and cash equivalents
decreased by $22.2 million to
$25.5 million from $47.7 million as of December 31, 2012. For
the year ended December 31, 2013, cash flows from operations
provided net cash proceeds of $31.7
million. We invested $25.0
million to seed two credit funds and $9.6 million was the increase in net investment
activity in CIFC managed CLO equity, warehouses and funds during
the year. In addition, $19.2 million
was used to pay down contingent liabilities (related to fee sharing
arrangements) and deferred purchase payments, and $4.2 million was used to pay dividends.
Investments
Deconsolidated
Non-GAAP (1)
|
|
December 31,
2013
|
|
December 31,
2012
|
CIFC Managed CLO
Equity (Residual Interests)
|
|
$
|
44,292
|
|
|
$
|
47,454
|
|
Warehouses
(2)
|
|
32,529
|
|
|
26,723
|
|
Other loan-based
products (3)
|
|
36,310
|
|
|
5,058
|
|
Total
|
|
$
|
113,131
|
|
|
$
|
79,235
|
|
|
Explanatory
Notes:
|
(1)
|
Pursuant to GAAP,
investments in consolidated CLOs, warehouses and certain other
loan-based products are eliminated from "Investments at fair value"
on our Consolidated Balance Sheets. See Appendix for a
Reconciliation from GAAP to Non-GAAP - Consolidated Balance Sheets
for further details.
|
(2)
|
From time to time,
the Company establishes "warehouses", entities designed to
accumulate investments in advance of sponsoring new CLOs or other
funds managed by the Company. To establish a warehouse, the
Company contributes equity capital to a newly formed entity which
is typically levered (three to five times) and begins accumulating
investments. When the related CLO or fund is sponsored,
typically three to nine months later, the warehouse is
"terminated", with it concurrently repaying the related financing
and returning to the Company its equity contribution, net of gains
and losses, if any.
|
(3)
|
Investments in other loan-based products includes
$30.0 million to seed three credit funds, of which $25.0 million
seeded two funds in 2013. As of December 31, 2013 and 2012,
$16.9 million and $5.1 million, respectively, of our investments in
funds was not consolidated and included on our Consolidated Balance
Sheets.
|
Excluding non-recourse variable interest entity ("VIE") debt,
CIFC had $120.0 million of Junior
Subordinated Notes which mature in 2035 and have a weighted average
interest rate of LIBOR + 2.77% over the term of the loans. In
addition, the Company had Convertible Notes with a face value of
$25.0 million that are convertible
into 4.1 million shares of common stock at $6.05 per share, maturing in 2017 and bearing a
10% coupon payable quarterly (with an effective interest rate of
18.14%).
Recent Developments
On December 18, 2013, DFR Holdings
purchased 9,090,909 shares of the Company's outstanding common
stock from CIFC Parent (a significant stockholder in the Company
prior to this transaction) as well as 1,000,000 shares of the
Company's outstanding common stock and 2,000,000 warrants from GE
Capital, which represented their entire shareholding in the
Company. Following the transactions, DFR Holdings, on a
fully-diluted basis, owns approximately 73% of the Company's
outstanding shares. In addition, three directors designated by CIFC
Parent resigned and were subsequently replaced by three designees
of DFR Holdings.
On February 25, 2014, the Company
announced the appointment of Mr. Stephen
Vaccaro, the Company's Chief Investment Officer, and Mr.
Oliver Wriedt, the Company's Head of
Capital Markets & Distribution, as Co-Presidents of the
Company. Concurrent with the appointments, Peter Gleysteen, formerly the Company's Chief
Executive Officer, President and member of its three-person
management committee, resigned from such responsibilities but will
continue to serve as the Vice Chairman of the Company's Board of
Directors and remain actively involved in managing certain legacy
CIFC funds.
Non-GAAP Financial Measures
The Company discloses financial measures that are calculated and
presented on a basis of methodology other than in accordance with
generally accepted accounting principles of the United States of America ("Non-GAAP") as
follows:
ENI is a non-GAAP financial measure of profitability which
management uses in addition to GAAP Net income attributable to CIFC
Corp. to measure the performance of its core business (excluding
non-core products). The Company believes ENI reflects the nature
and substance of the business, the economic results driven by
investment advisory fee revenues from the management of client
funds and earnings on the Company's investments. ENI presents
investment advisory fee revenues net of (i) any fee-sharing
arrangements primarily resulting from mergers or acquisitions and
(ii) revenues attributable to non-core investment products. In
addition, ENI represents net income (loss) attributable to CIFC
Corp. before taxes, gains (losses) on disposition(s) attributable
to non-core assets, a portion of non-cash compensation related to
profits interests granted by CIFC Parent in June 2011, amortization and impairments of
intangible assets, gains/(losses) on derivatives and contingent
liabilities and certain non-recurring operating expenses and
strategic transaction expenses (such as those associated with
mergers and acquisitions).
EBIT and EBITDA are also non-GAAP financial measures that
management considers, in addition to net income (loss) attributable
to CIFC Corp., to evaluate the Company's core performance. EBIT
represents ENI before corporate interest expense and EBITDA
represents EBIT before depreciation of fixed assets, a non-cash
item.
ENI, EBIT and EBITDA may not be comparable to similar measures
presented by other companies, as they are non-GAAP financial
measures that are not based on a comprehensive set of accounting
rules or principles and therefore may be defined differently
by other companies. In addition, ENI, EBIT and EBITDA should be
considered an addition to, not as a substitute for, or superior to,
financial measures determined in accordance with GAAP.
A detailed calculation of ENI, EBIT and EBITDA and a
reconciliation to the most comparable GAAP financial measure is
included in the Appendix.
[Financial Tables to Follow in Appendix]
About CIFC
CIFC is a fundamentals-based, relative value credit manager.
Headquartered in New York, CIFC is
an SEC registered investment adviser and a publicly traded company
(NASDAQ: CIFC). We currently serve over 200 institutional investors
globally. For more information, please visit CIFC's website at
www.cifc.com.
Forward-Looking Statements
This release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 which reflect CIFC's
current views with respect to, among other things, CIFC's
operations and financial performance. You can identify these
forward-looking statements by the use of words such as "outlook,"
"believes," "expects," "potential," "continues," "may," "will,"
"should," "seeks," "approximately," "predicts," "intends," "plans,"
"estimates," "anticipates" or the negative version of these words
or other comparable words. Such forward-looking statements are
subject to various risks and uncertainties. Accordingly, there are
or will be important factors that could cause actual outcomes or
results to differ materially from those indicated in these
statements. CIFC believes these factors include but are not limited
to those described under the section entitled "Risk Factors" in its
Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as such factors may be updated
from time to time in its periodic filings with the Securities and
Exchange Commission, which are accessible on the SEC's website at
www.sec.gov. These factors should not be construed as exhaustive
and should be read in conjunction with the other cautionary
statements that are included in this release and in the filings.
CIFC undertakes no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
Appendix - Table of Contents
- Summary reconciliation of GAAP net income (loss) attributable
to CIFC Corp. to Non-GAAP measures (ENI, EBIT and EBITDA) for the
Three Months and Years Ended December 31,
2013 and 2012 (unaudited)
- Reconciliation of GAAP to Non-GAAP measures (GAAP basis
Statements of Operations are adjusted to exclude the consolidation
of VIEs) for the Three Months Ended December
31, 2013 and 2012 (unaudited)
- Reconciliation of GAAP to Non-GAAP measures (GAAP basis
Statements of Operations are adjusted to exclude the consolidation
of VIEs) for the Years Ended December 31,
2013 and 2012 (unaudited)
- Reconciliation of GAAP to Non-GAAP measures (GAAP basis Balance
Sheets are adjusted to exclude the consolidation of VIEs) as of
December 31, 2013 and 2012
(unaudited)
- Reconciliation from GAAP to Non-GAAP measures - Other
(unaudited)
Appendix
Summary
Reconciliation of GAAP Net income (loss) attributable to CIFC Corp.
to Non-GAAP Measures (unaudited)
|
|
(In thousands)
(unaudited)
|
4Q'13
|
4Q'12
|
YTD
'13
|
YTD
'12
|
GAAP Net income
(loss) attributable to CIFC Corp. (1)
|
$
|
4,891
|
$
|
(2,484)
|
$
|
23,371
|
$
|
(8,699)
|
Advisory fee sharing
arrangements (2)
|
|
(2,356)
|
|
(3,058)
|
|
(15,744)
|
|
(10,193)
|
Advisory fees
attributable to non-core funds (3)
|
|
(199)
|
|
(649)
|
|
(3,139)
|
|
(3,168)
|
Compensation costs
(4)
|
|
1,593
|
|
2,135
|
|
3,767
|
|
2,135
|
Insurance settlement
received
|
|
—
|
|
—
|
|
—
|
|
(657)
|
Amortization and
impairment of intangibles
|
|
6,192
|
|
4,441
|
|
17,913
|
|
19,213
|
Restructuring
charges
|
|
—
|
|
1,954
|
|
—
|
|
5,877
|
Net (gain)/loss on
contingent liabilities, derivatives and other (5)
|
|
(46)
|
|
2,004
|
|
(1,644)
|
|
12,041
|
Strategic
transactions expenses (6)
|
|
—
|
|
—
|
|
—
|
|
657
|
Gain on sales of
contracts (7)
|
|
—
|
|
—
|
|
(1,386)
|
|
(5,772)
|
Income tax expense
(benefit) (1)
|
|
2,970
|
|
8,009
|
|
18,782
|
|
10,750
|
Total reconciling and
non-recurring items (1)
|
|
8,154
|
|
14,836
|
|
18,549
|
|
30,883
|
ENI
|
$
|
13,045
|
$
|
12,352
|
$
|
41,920
|
$
|
22,184
|
Add: Corporate
interest expense
|
|
1,471
|
|
1,490
|
|
5,865
|
|
5,912
|
EBIT
|
$
|
14,516
|
$
|
13,842
|
$
|
47,785
|
$
|
28,096
|
Add: Depreciation
of fixed assets
|
|
204
|
|
165
|
|
734
|
|
489
|
EBITDA
|
$
|
14,720
|
$
|
14,007
|
$
|
48,519
|
$
|
28,585
|
Explanatory
Notes:
|
(1)
|
Amounts in the prior
year have been restated to reflect immaterial adjustments
identified in the current year.
|
(2)
|
The Company shares advisory fees on certain of the
CLOs it manages (for example, advisory fees on certain acquired
funds are shared with the party that sold the funds to CIFC).
Investment advisory fees are presented on a gross basis for GAAP
and on a net basis for Non-GAAP ENI.
|
(3)
|
Current year ENI calculation includes the reduction
attributable to non-core advisory fees. Prior year ENI calculation
has been adjusted to conform with the current year's
calculation.
|
(4)
|
Compensation has been adjusted for non-cash
compensation related to profits interests granted to CIFC employees
by CIFC Parent in 2011 and in 2013 sharing of incentive fees with
certain former employees established in connection with the
Company's acquisition of certain CLOs from Columbus Nova Credit
Investments Management, LLC ("CNCIM").
|
(5)
|
Adjustment primarily
includes the elimination of gains (losses) on contingent
liabilities during the respective periods.
|
(6)
|
These expenses relate to a transaction to enter into
a strategic relationship with an affiliate of General Electric
Capital Corporation.
|
(7)
|
In January 2012, the
Company completed the sale of its right to manage Gillespie CLO
PLC. The Company recognized additional gains from contingent
payments collected during 2013.
|
Reconciliation
from GAAP to Non-GAAP Measures - Consolidated Statements of
Operations (unaudited) (1)
|
|
|
|
4Q'13
|
|
4Q'12
|
(In thousands)
(unaudited)
|
|
Consolidated
GAAP
|
|
Consolidation
Adjustments
|
|
Deconsolidated
Non-GAAP
|
|
Consolidated
GAAP
|
|
Consolidation
Adjustments
|
|
Deconsolidated
Non-GAAP
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory
fees
|
|
$
|
1,754
|
|
|
$
|
19,729
|
|
|
$
|
21,483
|
|
|
$
|
2,648
|
|
|
$
|
14,870
|
|
|
$
|
17,518
|
|
Net investment
income
|
|
77
|
|
|
7,554
|
|
|
7,631
|
|
|
2
|
|
|
8,821
|
|
|
8,823
|
|
Total net revenues
|
|
1,831
|
|
|
27,283
|
|
|
29,114
|
|
|
2,650
|
|
|
23,691
|
|
|
26,341
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
9,112
|
|
|
—
|
|
|
9,112
|
|
|
6,466
|
|
|
—
|
|
|
6,466
|
|
Professional
services
|
|
1,903
|
|
|
—
|
|
|
1,903
|
|
|
2,601
|
|
|
—
|
|
|
2,601
|
|
General and
administrative expenses
|
|
2,417
|
|
|
—
|
|
|
2,417
|
|
|
1,695
|
|
|
—
|
|
|
1,695
|
|
Depreciation and
amortization
|
|
3,290
|
|
|
—
|
|
|
3,290
|
|
|
4,606
|
|
|
—
|
|
|
4,606
|
|
Impairment of
intangible assets
|
|
3,106
|
|
|
—
|
|
|
3,106
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Restructuring
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,954
|
|
|
—
|
|
|
1,954
|
|
Total expenses
|
|
19,828
|
|
|
—
|
|
|
19,828
|
|
|
17,322
|
|
|
—
|
|
|
17,322
|
|
Other Income
(Expense) and Gain (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments at fair value
|
|
935
|
|
|
(935)
|
|
|
—
|
|
|
1,873
|
|
|
(1,873)
|
|
|
—
|
|
Net gain (loss) on
contingent liabilities at fair
value
|
|
46
|
|
|
—
|
|
|
46
|
|
|
(2,052)
|
|
|
—
|
|
|
(2,052)
|
|
Corporate interest
expense
|
|
(1,471)
|
|
|
—
|
|
|
(1,471)
|
|
|
(1,490)
|
|
|
—
|
|
|
(1,490)
|
|
Net gain on the sale
of management contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Strategic
transactions expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
48
|
|
Net other income (expense) and gain (loss)
|
|
(490)
|
|
|
(935)
|
|
|
(1,425)
|
|
|
(1,621)
|
|
|
(1,873)
|
|
|
(3,494)
|
|
Operating income
(loss)
|
|
(18,487)
|
|
|
26,348
|
|
|
7,861
|
|
|
(16,293)
|
|
|
21,818
|
|
|
5,525
|
|
Net results of
Consolidated Entities
|
|
46,944
|
|
|
(46,944)
|
|
|
—
|
|
|
(71,045)
|
|
|
71,045
|
|
|
—
|
|
Income (loss)
before income taxes
|
|
28,457
|
|
|
(20,596)
|
|
|
7,861
|
|
|
(87,338)
|
|
|
92,863
|
|
|
5,525
|
|
Income tax (expense)
benefit (2)
|
|
(2,970)
|
|
|
—
|
|
|
(2,970)
|
|
|
(8,009)
|
|
|
—
|
|
|
(8,009)
|
|
Net income (loss)
(2)
|
|
25,487
|
|
|
(20,596)
|
|
|
4,891
|
|
|
(95,347)
|
|
|
92,863
|
|
|
(2,484)
|
|
Net (income) loss
attributable to noncontrolling interest in Consolidated
Entities
|
|
(20,596)
|
|
|
20,596
|
|
|
—
|
|
|
92,863
|
|
|
(92,863)
|
|
|
—
|
|
Net income (loss)
attributable to CIFC Corp. (2)
|
|
$
|
4,891
|
|
|
$
|
—
|
|
|
$
|
4,891
|
|
|
$
|
(2,484)
|
|
|
$
|
—
|
|
|
$
|
(2,484)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Explanatory
Notes:
|
|
|
|
(1)
The Consolidated Statements of Operations
have been adjusted to present on a deconsolidated non-GAAP basis,
which eliminates the impact of Consolidated
Funds
(including VIEs). Management uses these statements in addition to
GAAP to measure the performance of its core business.
|
|
(2) Amounts in
the prior year have been restated to reflect immaterial adjustments
identified in the current year.
|
|
|
|
|
|
Reconciliation
from GAAP to Non-GAAP Measures - Consolidated Statements of
Operations (continued) (1)
|
|
|
|
YTD
'13
|
|
YTD
'12
|
(In thousands)
(unaudited)
|
|
Consolidated
GAAP
|
|
Consolidation
Adjustments
|
|
Deconsolidated
Non-GAAP
|
|
Consolidated
GAAP
|
|
Consolidation
Adjustments
|
|
Deconsolidated
Non-GAAP
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory
fees
|
|
$
|
8,400
|
|
|
$
|
82,317
|
|
|
$
|
90,717
|
|
|
$
|
10,696
|
|
|
$
|
51,657
|
|
|
$
|
62,353
|
|
Net investment
income
|
|
333
|
|
|
15,910
|
|
|
16,243
|
|
|
226
|
|
|
13,151
|
|
|
13,377
|
|
Total net revenues
|
|
8,733
|
|
|
98,227
|
|
|
106,960
|
|
|
10,922
|
|
|
64,808
|
|
|
75,730
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
30,339
|
|
|
—
|
|
|
30,339
|
|
|
22,945
|
|
|
—
|
|
|
22,945
|
|
Professional
services
|
|
5,277
|
|
|
—
|
|
|
5,277
|
|
|
6,221
|
|
|
—
|
|
|
6,221
|
|
General and
administrative expenses
|
|
7,707
|
|
|
—
|
|
|
7,707
|
|
|
6,096
|
|
|
—
|
|
|
6,096
|
|
Depreciation and
amortization
|
|
15,541
|
|
|
—
|
|
|
15,541
|
|
|
17,931
|
|
|
—
|
|
|
17,931
|
|
Impairment of
intangible assets
|
|
3,106
|
|
|
—
|
|
|
3,106
|
|
|
1,771
|
|
|
—
|
|
|
1,771
|
|
Restructuring
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,877
|
|
|
—
|
|
|
5,877
|
|
Total expenses
|
|
61,970
|
|
|
—
|
|
|
61,970
|
|
|
60,841
|
|
|
—
|
|
|
60,841
|
|
Other Income
(Expense) and Gain (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments at fair value
|
|
1,822
|
|
|
(1,822)
|
|
|
—
|
|
|
2,307
|
|
|
(2,476)
|
|
|
(169)
|
|
Net gain (loss) on
contingent liabilities at fair value
|
|
1,644
|
|
|
—
|
|
|
1,644
|
|
|
(11,452)
|
|
|
—
|
|
|
(11,452)
|
|
Corporate interest
expense
|
|
(5,865)
|
|
|
—
|
|
|
(5,865)
|
|
|
(5,912)
|
|
|
—
|
|
|
(5,912)
|
|
Net gain on the sale
of management contracts
|
|
1,386
|
|
|
—
|
|
|
1,386
|
|
|
5,772
|
|
|
—
|
|
|
5,772
|
|
Strategic
transactions expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(657)
|
|
|
—
|
|
|
(657)
|
|
Other, net
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
|
(420)
|
|
|
—
|
|
|
(420)
|
|
Net other income (expense) and gain (loss)
|
|
(1,015)
|
|
|
(1,822)
|
|
|
(2,837)
|
|
|
(10,362)
|
|
|
(2,476)
|
|
|
(12,838)
|
|
Operating income
(loss)
|
|
(52,252)
|
|
|
96,405
|
|
|
42,153
|
|
|
(60,281)
|
|
|
62,332
|
|
|
2,051
|
|
Net results of
Consolidated Entities
|
|
169,869
|
|
|
(169,869)
|
|
|
—
|
|
|
(168,380)
|
|
|
168,380
|
|
|
—
|
|
Income (loss)
before income taxes
|
|
115,617
|
|
|
(73,464)
|
|
|
42,153
|
|
|
(228,661)
|
|
|
230,712
|
|
|
2,051
|
|
Income tax (expense)
benefit (2)
|
|
(18,782)
|
|
|
—
|
|
|
(18,782)
|
|
|
(10,750)
|
|
|
—
|
|
|
(10,750)
|
|
Net income (loss)
(2)
|
|
96,835
|
|
|
(73,464)
|
|
|
23,371
|
|
|
(239,411)
|
|
|
230,712
|
|
|
(8,699)
|
|
Net (income) loss
attributable to noncontrolling interest in Consolidated
Entities
|
|
(73,464)
|
|
|
73,464
|
|
|
—
|
|
|
230,712
|
|
|
(230,712)
|
|
|
—
|
|
Net income (loss)
attributable to CIFC Corp. (2)
|
|
$
|
23,371
|
|
|
$
|
—
|
|
|
$
|
23,371
|
|
|
$
|
(8,699)
|
|
|
$
|
—
|
|
|
$
|
(8,699)
|
|
|
Explanatory
Notes:
|
|
|
|
(2)
The Consolidated Statements of Operations
have been adjusted to present on a deconsolidated non-GAAP basis,
which eliminates the impact of Consolidated
Funds (including
VIEs). Management uses these statements in addition to GAAP to
measure the performance of its core business.
|
|
|
(3) Amounts in
the prior year have been restated to reflect immaterial adjustments
identified in the current year.
|
|
|
|
Reconciliation
from GAAP to Non-GAAP - Consolidated Balance Sheets (unaudited)
(1)
|
|
|
|
December 31,
2013
|
|
December 31,
2012
|
(In thousands)
(unaudited)
|
|
GAAP
|
|
Consolidation
Adjustments
|
|
Deconsolidated
Non-GAAP
|
|
GAAP
|
|
Consolidation
Adjustments
|
|
Deconsolidated
Non-GAAP
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
25,497
|
|
|
$
|
(4,132)
|
|
|
$
|
21,365
|
|
|
$
|
47,692
|
|
|
$
|
—
|
|
|
$
|
47,692
|
|
Restricted cash and
cash equivalents
|
|
1,700
|
|
|
—
|
|
|
1,700
|
|
|
1,612
|
|
|
—
|
|
|
1,612
|
|
Due from
brokers
|
|
18,813
|
|
|
(4,985)
|
|
|
13,828
|
|
|
1,150
|
|
|
—
|
|
|
1,150
|
|
Investments at fair
value
|
|
16,883
|
|
|
96,248
|
|
|
113,131
|
|
|
5,058
|
|
|
74,176
|
|
|
79,234
|
|
Receivables
|
|
2,120
|
|
|
3,814
|
|
|
5,934
|
|
|
2,432
|
|
|
2,675
|
|
|
5,107
|
|
Prepaid and other
assets
|
|
5,104
|
|
|
(222)
|
|
|
4,882
|
|
|
5,392
|
|
|
—
|
|
|
5,392
|
|
Deferred tax asset,
net (2)
|
|
57,675
|
|
|
—
|
|
|
57,675
|
|
|
53,914
|
|
|
—
|
|
|
53,914
|
|
Equipment and
improvements, net
|
|
4,261
|
|
|
—
|
|
|
4,261
|
|
|
3,979
|
|
|
—
|
|
|
3,979
|
|
Intangible assets,
net
|
|
25,223
|
|
|
—
|
|
|
25,223
|
|
|
43,136
|
|
|
—
|
|
|
43,136
|
|
Goodwill
|
|
76,000
|
|
|
—
|
|
|
76,000
|
|
|
76,000
|
|
|
—
|
|
|
76,000
|
|
Subtotal
(2)
|
|
233,276
|
|
|
90,723
|
|
|
323,999
|
|
|
240,365
|
|
|
76,851
|
|
|
317,216
|
|
Total assets of
Consolidated Entities
|
|
11,366,912
|
|
|
(11,366,912)
|
|
|
—
|
|
|
10,267,915
|
|
|
(10,267,915)
|
|
|
—
|
|
Total
Assets (2)
|
|
$
|
11,600,188
|
|
|
$
|
(11,276,189)
|
|
|
$
|
323,999
|
|
|
$
|
10,508,280
|
|
|
$
|
(10,191,064)
|
|
|
$
|
317,216
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to
brokers
|
|
$
|
5,499
|
|
|
$
|
(4,991)
|
|
|
$
|
508
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accrued and other
liabilities
|
|
15,197
|
|
|
(270)
|
|
|
14,927
|
|
|
15,734
|
|
|
—
|
|
|
15,734
|
|
Deferred purchase
payments
|
|
1,179
|
|
|
—
|
|
|
1,179
|
|
|
4,778
|
|
|
—
|
|
|
4,778
|
|
Contingent
liabilities at fair value
|
|
16,961
|
|
|
—
|
|
|
16,961
|
|
|
33,783
|
|
|
—
|
|
|
33,783
|
|
Long-term
debt
|
|
139,164
|
|
|
—
|
|
|
139,164
|
|
|
138,233
|
|
|
—
|
|
|
138,233
|
|
Subtotal
|
|
178,000
|
|
|
(5,261)
|
|
|
172,739
|
|
|
192,528
|
|
|
—
|
|
|
192,528
|
|
Total non-recourse
liabilities of Consolidated Entities
|
|
11,114,435
|
|
|
(11,114,435)
|
|
|
—
|
|
|
10,113,035
|
|
|
(10,113,035)
|
|
|
—
|
|
Total Liabilities
|
|
11,292,435
|
|
|
(11,119,696)
|
|
|
172,739
|
|
|
10,305,563
|
|
|
(10,113,035)
|
|
|
192,528
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
21
|
|
|
—
|
|
|
21
|
|
|
21
|
|
|
—
|
|
|
21
|
|
Treasury
stock
|
|
(914)
|
|
|
—
|
|
|
(914)
|
|
|
(664)
|
|
|
—
|
|
|
(664)
|
|
Additional paid-in
capital
|
|
963,011
|
|
|
—
|
|
|
963,011
|
|
|
955,407
|
|
|
—
|
|
|
955,407
|
|
Accumulated other
comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
Retained earnings
(deficit) (2)
|
|
(810,858)
|
|
|
—
|
|
|
(810,858)
|
|
|
(830,073)
|
|
|
—
|
|
|
(830,073)
|
|
Total CIFC Corp. Stockholder's Equity (2)
|
|
151,260
|
|
|
—
|
|
|
151,260
|
|
|
124,688
|
|
|
—
|
|
|
124,688
|
|
Non-controlling
interest in Consolidated Funds
|
|
5,107
|
|
|
(5,107)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Appropriated retained
earnings (deficit) of Consolidated Entities
|
|
151,386
|
|
|
(151,386)
|
|
|
—
|
|
|
78,029
|
|
|
(78,029)
|
|
|
—
|
|
Total Equity (2)
|
|
307,753
|
|
|
(156,493)
|
|
|
151,260
|
|
|
202,717
|
|
|
(78,029)
|
|
|
124,688
|
|
Total Liabilities
and Stockholders' Equity (2)
|
|
$
|
11,600,188
|
|
|
$
|
(11,276,189)
|
|
|
$
|
323,999
|
|
|
$
|
10,508,280
|
|
|
$
|
(10,191,064)
|
|
|
$
|
317,216
|
|
|
Explanatory
Notes:
|
(1)
The Consolidated Balance Sheets have been
adjusted to present a deconsolidated non-GAAP statements, which
eliminates the impact of Consolidated Funds
(including VIEs). Management
uses these statements in addition to GAAP to measure the
performance of its core business.
|
|
(2) Amounts in
the prior year have been restated to reflect immaterial adjustments
identified in the current year.
|
|
Reconciliation of
GAAP to Non-GAAP Measures - Other (unaudited)
|
The table below is a
reconciliation of GAAP to Non-GAAP weighted average diluted shares
outstanding (1):
|
|
(In thousands)
(unaudited)
|
4Q'13
|
4Q'12
|
YTD
'13
|
YTD
'12
|
Basic GAAP
Weighted-average Shares
|
|
20,795
|
|
20,816
|
|
20,801
|
|
20,356
|
Add: Convertible
Notes (2)
|
|
4,132
|
|
—
|
|
4,132
|
|
—
|
Add: Stock
Options
|
|
527
|
|
—
|
|
303
|
|
—
|
Add: Warrants and
unvested RSUs
|
|
492
|
|
—
|
|
501
|
|
—
|
Diluted GAAP
Weighted-average Shares
|
|
25,947
|
|
20,816
|
|
25,737
|
|
20,356
|
|
|
|
|
|
Add: ENI -
Convertible Notes (2)
|
|
—
|
|
4,132
|
|
—
|
|
4,132
|
Diluted ENI
Weighted-average Shares
|
|
25,947
|
|
24,948
|
|
25,737
|
|
24,488
|
|
Explanatory
Notes:
|
(1)
|
GAAP weighted average
shares outstanding was used as ENI weighted average shares
outstanding for the current year. For the three months and year
ended December 31, 2012, ENI weighted average shares outstanding
included an adjustment for the dilution of convertible notes as
they were anti-dilutive under GAAP.
|
(2)
|
For the three months
and year ended December 31, 2012, convertible notes were not
included in diluted GAAP weighted-average shares outstanding, as
the notes were anti-dilutive during the periods.
|
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SOURCE CIFC Corp.