Investment advisory company Artio Global Investors Inc. (ART) Friday reported a loss for the quarter, reflecting some significant one-time charges related the company's initial public offering in September. On an adjusted basis, the company reported lower net income, compared with last year, impacted negatively by a 21% decline in revenues.
Net loss for the quarter attributable to the company was $412.42 million or $9.81 per share, compared to net income of $16.28 million or $0.39 per share last year. Latest quarter results include certain non-recurring items and expenses associated with the reorganization of the company's ownership structure in connection with its initial public offering.
Excluding items, net income was $27.9 million or $0.47 per share, down 32% from $41.3 million or $0.69 per share in the year-ago quarter.
On an average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues and other operating income declined 21% to $84.49 million from $106.53 million in the prior-year quarter, reflecting lower investment management fees. Four analysts estimated revenues of $81.62 million.
Investment management fees for the quarter declined 22% to $83.5 million from $107.6 million, impacted primarily by lower average assets under management.
At the end of the quarter, assets under management were $55.8 billion, down 2% from $56.6 billion in the previous year, due primarily to $2.0 billion of net client cash outflows in the fourth quarter last year, partly offset by $1.3 billion of net client cash inflows in the nine months ended September 30, 2009.
Net client cash inflows for the quarter were $321 million, compared with a net client cash outflows of $1.0 billion a year ago.
Total employee compensation and benefits for the quarter was $363.06 million, much higher than $60.37 million last year. Expenses included $215.8 million associated with the modification and acceleration of the vesting of principals' Class B profits interests in the company's operating subsidiary and $97.9 million in conjunction with the establishment of a tax receivable agreement with the company's principals.
At September 30, Artio Global had cash and cash equivalents of $165.2 million, marketable securities of $8.1 million and undrawn credit facilities of $110.0 million, including $60.0 million term facility and a $50.0 million committed revolving credit facility.
For the nine-month period, net loss attributable to the company was $404.02 million or $9.62 per share, compared with a profit of $47.90 million or $1.14 per share in the comparable period. Year-to-date, adjusted net income was $68.8 million or $1.15 per share, down 41% from $117.1 million or $1.95 per share a year earlier.
Year-to-date, total revenues and other operating income dropped to $217.81 million from $349.41 million in the same period a year ago.
In a separate release, Artio Global reported preliminary month-end assets under management of $54.1 billion as of October 31, compared to $55.8 billion as of September 30, 2009.
Artio Global has decided not to declare any dividend on the common stock for the third quarter of 2009.
In Friday's regular trading session, ART is currently trading on the New York Stock Exchange at $24.12 per share down 1.87%. For the 52-week period, shares are trading in a range of $22.30 to $28.10.
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