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Name | Symbol | Market | Type |
---|---|---|---|
Virtus Investment Partners Inc | NASDAQ:VRTSP | NASDAQ | Preference Share |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 100.27 | 0.0001 | 4,294.67 | 0 | 01:00:00 |
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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26-3962811
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $0.01 par value
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VRTS
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The NASDAQ Stock Market LLC
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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(in thousands, except share data)
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March 31,
2020 |
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December 31,
2019 |
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Assets:
|
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|
|
||||
Cash and cash equivalents
|
$
|
158,456
|
|
|
$
|
221,781
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Investments
|
56,853
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|
83,206
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Accounts receivable, net
|
66,574
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|
74,132
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|
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Assets of consolidated investment products ("CIP")
|
|
|
|
||||
Cash and cash equivalents of CIP
|
227,941
|
|
|
99,691
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|
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Cash pledged or on deposit of CIP
|
7,229
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|
|
467
|
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Investments of CIP
|
2,189,757
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2,030,110
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Other assets of CIP
|
29,433
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|
23,612
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Furniture, equipment and leasehold improvements, net
|
17,147
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18,150
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Intangible assets, net
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302,858
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|
310,391
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Goodwill
|
290,366
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290,366
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Deferred taxes, net
|
8,713
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|
15,879
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|
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Other assets
|
36,730
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|
36,849
|
|
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Total assets
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$
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3,392,057
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$
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3,204,634
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Liabilities and Equity
|
|
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Liabilities:
|
|
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Accrued compensation and benefits
|
$
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36,641
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$
|
101,377
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Accounts payable and accrued liabilities
|
23,594
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|
23,308
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Dividends payable
|
7,187
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|
8,915
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|
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Debt
|
251,465
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277,839
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Other liabilities
|
37,647
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40,507
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|
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Liabilities of CIP
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|
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|
||||
Notes payable of CIP
|
2,134,108
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1,834,535
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Securities purchased payable and other liabilities of CIP
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147,834
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|
168,051
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|
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Total liabilities
|
2,638,476
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|
2,454,532
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Commitments and Contingencies (Note 13)
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|
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Redeemable noncontrolling interests
|
87,115
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63,845
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Equity:
|
|
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Equity attributable to stockholders:
|
|
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|
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Series D mandatory convertible preferred stock, $0.01 par value, 0 and 1,150,000 shares authorized, issued and outstanding at March 31, 2020 and December 31, 2019, respectively
|
—
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110,843
|
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Common stock, $0.01 par value, 1,000,000,000 shares authorized; 11,733,976 shares issued and 7,695,413 shares outstanding at March 31, 2020 and 10,736,887 shares issued and 6,809,280 shares outstanding at December 31, 2019, respectively
|
117
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|
|
107
|
|
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Additional paid-in capital
|
1,304,868
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1,199,205
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|
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Retained earnings (accumulated deficit)
|
(219,501
|
)
|
|
(215,216
|
)
|
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Accumulated other comprehensive income (loss)
|
(16
|
)
|
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9
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Treasury stock, at cost, 4,038,563 and 3,927,607 shares at March 31, 2020 and December 31, 2019, respectively
|
(429,249
|
)
|
|
(419,249
|
)
|
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Total equity attributable to stockholders
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656,219
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|
675,699
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Noncontrolling interests
|
10,247
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10,558
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|
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Total equity
|
666,466
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686,257
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|
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Total liabilities and equity
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$
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3,392,057
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$
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3,204,634
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Three Months Ended
March 31, |
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(in thousands, except per share data)
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2020
|
|
2019
|
||||
Revenues
|
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|
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Investment management fees
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$
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120,288
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$
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105,918
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Distribution and service fees
|
9,460
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|
|
10,063
|
|
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Administration and shareholder service fees
|
14,653
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14,413
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Other income and fees
|
165
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|
|
324
|
|
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Total revenues
|
144,566
|
|
|
130,718
|
|
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Operating Expenses
|
|
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||||
Employment expenses
|
66,130
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|
60,851
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|
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Distribution and other asset-based expenses
|
19,409
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|
19,764
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|
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Other operating expenses
|
18,885
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|
|
18,723
|
|
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Operating expenses of consolidated investment products ("CIP")
|
6,749
|
|
|
451
|
|
||
Restructuring and severance
|
—
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1,176
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|
||
Depreciation expense
|
1,258
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|
|
1,213
|
|
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Amortization expense
|
7,533
|
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|
7,541
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|
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Total operating expenses
|
119,964
|
|
|
109,719
|
|
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Operating Income (Loss)
|
24,602
|
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|
20,999
|
|
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Other Income (Expense)
|
|
|
|
||||
Realized and unrealized gain (loss) on investments, net
|
(7,544
|
)
|
|
3,433
|
|
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Realized and unrealized gain (loss) of CIP, net
|
(8,669
|
)
|
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(1,921
|
)
|
||
Other income (expense), net
|
612
|
|
|
450
|
|
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Total other income (expense), net
|
(15,601
|
)
|
|
1,962
|
|
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Interest Income (Expense)
|
|
|
|
||||
Interest expense
|
(3,199
|
)
|
|
(5,165
|
)
|
||
Interest and dividend income
|
752
|
|
|
1,190
|
|
||
Interest and dividend income of investments of CIP
|
29,229
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|
|
27,402
|
|
||
Interest expense of CIP
|
(24,486
|
)
|
|
(19,701
|
)
|
||
Total interest income (expense), net
|
2,296
|
|
|
3,726
|
|
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Income (Loss) Before Income Taxes
|
11,297
|
|
|
26,687
|
|
||
Income tax expense (benefit)
|
10,291
|
|
|
4,219
|
|
||
Net Income (Loss)
|
1,006
|
|
|
22,468
|
|
||
Noncontrolling interests
|
(5,291
|
)
|
|
(722
|
)
|
||
Net Income (Loss) Attributable to Stockholders
|
(4,285
|
)
|
|
21,746
|
|
||
Preferred stockholder dividends
|
—
|
|
|
(2,084
|
)
|
||
Net Income (Loss) Attributable to Common Stockholders
|
$
|
(4,285
|
)
|
|
$
|
19,662
|
|
Earnings (Loss) per Share—Basic
|
$
|
(0.58
|
)
|
|
$
|
2.80
|
|
Earnings (Loss) per Share—Diluted
|
$
|
(0.58
|
)
|
|
$
|
2.61
|
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Weighted Average Shares Outstanding—Basic
|
7,422
|
|
|
7,015
|
|
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Weighted Average Shares Outstanding—Diluted
|
7,422
|
|
|
8,322
|
|
|
Three Months Ended
March 31, |
||||||
(in thousands)
|
2020
|
|
2019
|
||||
Net Income (Loss)
|
$
|
1,006
|
|
|
$
|
22,468
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Foreign currency translation adjustment, net of tax of $9 and $(3) for the three months ended March 31, 2020 and 2019, respectively
|
(25
|
)
|
|
6
|
|
||
Other comprehensive income (loss)
|
(25
|
)
|
|
6
|
|
||
Comprehensive income (loss)
|
981
|
|
|
22,474
|
|
||
Comprehensive (income) loss attributable to noncontrolling interests
|
(5,291
|
)
|
|
(722
|
)
|
||
Comprehensive Income (Loss) Attributable to Stockholders
|
$
|
(4,310
|
)
|
|
$
|
21,752
|
|
|
Three Months Ended
March 31, |
||||||
(in thousands)
|
2020
|
|
2019
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income (loss)
|
$
|
1,006
|
|
|
$
|
22,468
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation expense, intangible asset and other amortization
|
10,878
|
|
|
9,874
|
|
||
Stock-based compensation
|
3,621
|
|
|
5,629
|
|
||
Amortization of deferred commissions
|
517
|
|
|
980
|
|
||
Payments of deferred commissions
|
(518
|
)
|
|
(455
|
)
|
||
Equity in earnings of equity method investments
|
(657
|
)
|
|
(496
|
)
|
||
(Gain) Loss on extinguishment of debt
|
(705
|
)
|
|
—
|
|
||
Realized and unrealized (gains) losses on investments, net
|
7,544
|
|
|
(3,292
|
)
|
||
Sales (purchases) of investments, net
|
2,153
|
|
|
9,413
|
|
||
Deferred taxes, net
|
7,175
|
|
|
(1,705
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net and other assets
|
6,377
|
|
|
(2,732
|
)
|
||
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities
|
(64,917
|
)
|
|
(60,857
|
)
|
||
Operating activities of consolidated investment products ("CIP"):
|
|
|
|
||||
Realized and unrealized (gains) losses on investments of CIP, net
|
6,581
|
|
|
1,497
|
|
||
Purchases of investments by CIP
|
(509,337
|
)
|
|
(157,158
|
)
|
||
Sales of investments by CIP
|
273,962
|
|
|
152,572
|
|
||
Net proceeds (purchases) of short term investments by CIP
|
(396
|
)
|
|
(911
|
)
|
||
(Purchases) sales of securities sold short by CIP, net
|
181
|
|
|
1,064
|
|
||
Change in other assets of CIP
|
(17
|
)
|
|
578
|
|
||
Change in liabilities of CIP
|
932
|
|
|
316
|
|
||
Amortization of discount on notes payable of CIP
|
3,300
|
|
|
—
|
|
||
Net cash provided by (used in) operating activities
|
(252,320
|
)
|
|
(23,215
|
)
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital expenditures and other asset purchases
|
(358
|
)
|
|
(2,568
|
)
|
||
Change in cash and cash equivalents of CIP due to consolidation (deconsolidation), net
|
9,724
|
|
|
(1,571
|
)
|
||
Sale of available-for-sale securities
|
—
|
|
|
2,044
|
|
||
Net cash provided by (used in) investing activities
|
9,366
|
|
|
(2,095
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Payment of long term debt
|
(26,547
|
)
|
|
(12,413
|
)
|
||
Common stock dividends paid
|
(5,832
|
)
|
|
(4,441
|
)
|
||
Preferred stock dividends paid
|
(2,084
|
)
|
|
(2,084
|
)
|
||
Repurchases of common shares
|
(10,000
|
)
|
|
(14,999
|
)
|
||
Proceeds from exercise of stock options
|
101
|
|
|
449
|
|
||
Taxes paid related to net share settlement of restricted stock units
|
(3,551
|
)
|
|
(4,804
|
)
|
||
Net subscriptions received from (redemptions/distributions paid to) noncontrolling interests
|
728
|
|
|
6,012
|
|
||
Financing activities of CIP:
|
|
|
|
||||
Payments on borrowings by CIP
|
(40,690
|
)
|
|
—
|
|
||
Borrowings by CIP
|
402,516
|
|
|
1,000
|
|
||
Net cash provided by (used in) financing activities
|
314,641
|
|
|
(31,280
|
)
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
71,687
|
|
|
(56,590
|
)
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
321,939
|
|
|
254,656
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
393,626
|
|
|
$
|
198,066
|
|
Non-Cash Investing Activities:
|
|
|
|
||||
Change in accrual for capital expenditures
|
$
|
(20
|
)
|
|
$
|
(1,267
|
)
|
Non-Cash Financing Activities:
|
|
|
|
||||
Increase (decrease) to noncontrolling interests due to consolidation (deconsolidation) of CIP, net
|
$
|
17,137
|
|
|
$
|
(6,423
|
)
|
Common stock dividends payable
|
$
|
5,175
|
|
|
$
|
3,865
|
|
Preferred stock dividends payable
|
$
|
—
|
|
|
$
|
2,084
|
|
Conversion of preferred stock to common stock
|
$
|
115,000
|
|
|
$
|
—
|
|
(in thousands)
|
March 31,
2020 |
|
December 31, 2019
|
||||
Reconciliation of cash, cash equivalents and restricted cash
|
|
|
|
||||
Cash and cash equivalents
|
$
|
158,456
|
|
|
$
|
221,781
|
|
Cash of CIP
|
227,941
|
|
|
99,691
|
|
||
Cash pledged or on deposit of CIP
|
7,229
|
|
|
467
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
393,626
|
|
|
$
|
321,939
|
|
|
Permanent Equity
|
|
Temporary Equity
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Common Stock
|
|
Preferred Stock
|
|
Additional
Paid-in
Capital
|
|
Retained Earnings (Accumulated
Deficit)
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
Total
Attributed To
Stockholders
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|
Redeemable
Non-
controlling
Interests
|
|||||||||||||||||||||||||||||
(in thousands, except per share data)
|
Shares
|
|
Par Value
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||||||||||||
Balances at December 31, 2018
|
6,997,382
|
|
|
$
|
106
|
|
|
1,150,000
|
|
|
$
|
110,843
|
|
|
$
|
1,209,805
|
|
|
$
|
(310,865
|
)
|
|
$
|
(731
|
)
|
|
3,555,242
|
|
|
$
|
(379,249
|
)
|
|
$
|
629,909
|
|
|
$
|
13,958
|
|
|
$
|
643,867
|
|
|
$
|
57,481
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,746
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,746
|
|
|
(453
|
)
|
|
21,293
|
|
|
1,175
|
|
||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||||||
Net subscriptions (redemptions) and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(557
|
)
|
|
(557
|
)
|
|
347
|
|
||||||||||
Reclassification from other comprehensive (income) loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|
—
|
|
|
726
|
|
|
—
|
|
||||||||||
Cash dividends declared ($1.8125 per preferred share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,084
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,084
|
)
|
|
—
|
|
|
(2,084
|
)
|
|
—
|
|
||||||||||
Cash dividends declared ($0.55 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,152
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,152
|
)
|
|
—
|
|
|
(4,152
|
)
|
|
—
|
|
||||||||||
Repurchases of common shares
|
(147,962
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147,962
|
|
|
(14,999
|
)
|
|
(14,999
|
)
|
|
—
|
|
|
(14,999
|
)
|
|
—
|
|
||||||||||
Issuance of common shares related to employee stock transactions
|
129,505
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
448
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
449
|
|
|
—
|
|
|
449
|
|
|
—
|
|
||||||||||
Taxes paid on stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,804
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,804
|
)
|
|
—
|
|
|
(4,804
|
)
|
|
—
|
|
||||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,713
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,713
|
|
|
—
|
|
|
6,713
|
|
|
—
|
|
||||||||||
Balances at March 31, 2019
|
6,978,925
|
|
|
$
|
107
|
|
|
1,150,000
|
|
|
$
|
110,843
|
|
|
$
|
1,205,926
|
|
|
$
|
(289,119
|
)
|
|
$
|
1
|
|
|
3,703,204
|
|
|
$
|
(394,248
|
)
|
|
$
|
633,510
|
|
|
$
|
12,948
|
|
|
$
|
646,458
|
|
|
$
|
59,003
|
|
Balances at December 31, 2019
|
6,809,280
|
|
|
$
|
107
|
|
|
1,150,000
|
|
|
$
|
110,843
|
|
|
$
|
1,199,205
|
|
|
$
|
(215,216
|
)
|
|
$
|
9
|
|
|
3,927,607
|
|
|
$
|
(419,249
|
)
|
|
$
|
675,699
|
|
|
$
|
10,558
|
|
|
$
|
686,257
|
|
|
$
|
63,845
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,285
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,285
|
)
|
|
255
|
|
|
(4,030
|
)
|
|
5,036
|
|
||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
||||||||||
Net subscriptions (redemptions) and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(566
|
)
|
|
(566
|
)
|
|
18,234
|
|
||||||||||
Cash dividends declared ($0.67 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,180
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,180
|
)
|
|
—
|
|
|
(6,180
|
)
|
|
—
|
|
||||||||||
Repurchases of common shares
|
(110,956
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110,956
|
|
|
(10,000
|
)
|
|
(10,000
|
)
|
|
—
|
|
|
(10,000
|
)
|
|
—
|
|
||||||||||
Conversion of preferred stock
|
912,806
|
|
|
9
|
|
|
(1,150,000
|
)
|
|
(110,843
|
)
|
|
110,834
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Issuance of common shares related to employee stock transactions
|
84,283
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
101
|
|
|
—
|
|
||||||||||
Taxes paid on stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,550
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,550
|
)
|
|
—
|
|
|
(3,550
|
)
|
|
—
|
|
||||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,459
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,459
|
|
|
—
|
|
|
4,459
|
|
|
—
|
|
||||||||||
Balances at March 31, 2020
|
7,695,413
|
|
|
$
|
117
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
1,304,868
|
|
|
$
|
(219,501
|
)
|
|
$
|
(16
|
)
|
|
4,038,563
|
|
|
$
|
(429,249
|
)
|
|
$
|
656,219
|
|
|
$
|
10,247
|
|
|
$
|
666,466
|
|
|
$
|
87,115
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
Investment management fees
|
|
|
|
||||
Open-end funds
|
$
|
59,108
|
|
|
$
|
53,293
|
|
Closed-end funds
|
10,179
|
|
|
10,019
|
|
||
Retail separate accounts
|
25,714
|
|
|
18,005
|
|
||
Institutional accounts
|
22,917
|
|
|
22,177
|
|
||
Structured products
|
1,574
|
|
|
1,647
|
|
||
Other products
|
796
|
|
|
777
|
|
||
Total investment management fees
|
120,288
|
|
|
105,918
|
|
||
Distribution and service fees
|
9,460
|
|
|
10,063
|
|
||
Administration and shareholder service fees
|
14,653
|
|
|
14,413
|
|
||
Other income and fees
|
165
|
|
|
324
|
|
||
Total revenues
|
$
|
144,566
|
|
|
$
|
130,718
|
|
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
Definite-lived intangible assets:
|
|
|
|
||||
Investment contracts and other
|
$
|
489,570
|
|
|
$
|
489,570
|
|
Accumulated amortization
|
(230,228
|
)
|
|
(222,695
|
)
|
||
Definite-lived intangible assets, net
|
259,342
|
|
|
266,875
|
|
||
Indefinite-lived intangible assets
|
43,516
|
|
|
43,516
|
|
||
Total intangible assets, net
|
$
|
302,858
|
|
|
$
|
310,391
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
Intangible assets, net
|
|
|
|
||||
Balance, beginning of period
|
$
|
310,391
|
|
|
$
|
338,812
|
|
Amortization
|
(7,533
|
)
|
|
(7,541
|
)
|
||
Balance, end of period
|
$
|
302,858
|
|
|
$
|
331,271
|
|
Fiscal Year
|
|
Amount
(in thousands) |
||
Remainder of 2020
|
|
$
|
22,594
|
|
2021
|
|
30,116
|
|
|
2022
|
|
29,992
|
|
|
2023
|
|
29,330
|
|
|
2024
|
|
23,689
|
|
|
2025 and thereafter
|
|
123,621
|
|
|
|
|
$
|
259,342
|
|
(in thousands)
|
March 31, 2020
|
|
December 31, 2019
|
||||
Investment securities - fair value
|
$
|
35,460
|
|
|
$
|
60,990
|
|
Equity method investments (1)
|
12,575
|
|
|
12,030
|
|
||
Nonqualified retirement plan assets
|
7,166
|
|
|
8,724
|
|
||
Other investments
|
1,652
|
|
|
1,462
|
|
||
Total investments
|
$
|
56,853
|
|
|
$
|
83,206
|
|
(1)
|
The Company's equity method investments are valued on a three-month lag based upon the availability of financial information. Therefore, the equity in earnings may not reflect the effects of the market disruption that occurred in the first quarter of 2020.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
(in thousands)
|
Cost
|
|
Fair Value
|
|
Cost
|
|
Fair Value
|
||||||||
Investment Securities - fair value
|
|
|
|
|
|
|
|
||||||||
Sponsored funds
|
$
|
26,188
|
|
|
$
|
24,825
|
|
|
$
|
44,588
|
|
|
$
|
47,654
|
|
Equity securities
|
10,902
|
|
|
10,629
|
|
|
11,250
|
|
|
13,320
|
|
||||
Debt securities
|
7
|
|
|
6
|
|
|
44
|
|
|
16
|
|
||||
Total investment securities - fair value
|
$
|
37,097
|
|
|
$
|
35,460
|
|
|
$
|
55,882
|
|
|
$
|
60,990
|
|
(in thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
127,862
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
127,862
|
|
Investment securities - fair value
|
|
|
|
|
|
|
|
||||||||
Sponsored funds
|
24,825
|
|
|
—
|
|
|
—
|
|
|
24,825
|
|
||||
Equity securities
|
10,629
|
|
|
—
|
|
|
—
|
|
|
10,629
|
|
||||
Debt securities
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||
Nonqualified retirement plan assets
|
7,166
|
|
|
—
|
|
|
—
|
|
|
7,166
|
|
||||
Total assets measured at fair value
|
$
|
170,482
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
170,488
|
|
(in thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
187,255
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
187,255
|
|
Investment securities - fair value
|
|
|
|
|
|
|
|
||||||||
Sponsored funds
|
47,654
|
|
|
—
|
|
|
—
|
|
|
47,654
|
|
||||
Equity securities
|
13,320
|
|
|
—
|
|
|
—
|
|
|
13,320
|
|
||||
Debt securities
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||
Nonqualified retirement plan assets
|
8,724
|
|
|
—
|
|
|
—
|
|
|
8,724
|
|
||||
Total assets measured at fair value
|
$
|
256,953
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
256,969
|
|
|
Three Months Ended March 31,
|
||
(in thousands)
|
2019
|
||
Level 3 Investments (1)
|
|
||
Balance at beginning of period
|
$
|
4,122
|
|
Purchases (sales), net
|
232
|
|
|
Change in realized and unrealized gain (loss), net
|
63
|
|
|
Balance at end of period
|
$
|
4,417
|
|
(1)
|
The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment.
|
(in thousands)
|
Unrealized Gains (Losses) on
Securities
Available-for-Sale
|
|
Foreign
Currency Translation Adjustments |
||||
Balance at December 31, 2019
|
$
|
—
|
|
|
$
|
9
|
|
Foreign currency translation adjustments, net of tax of $9
|
—
|
|
|
(25
|
)
|
||
Net current-period other comprehensive income (loss)
|
—
|
|
|
(25
|
)
|
||
Balance at March 31, 2020
|
$
|
—
|
|
|
$
|
(16
|
)
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
(in thousands)
|
Unrealized Gains (Losses) on
Securities
Available-for-Sale
|
|
Foreign
Currency
Translation
Adjustments
|
||||
Balance at December 31, 2018
|
$
|
(726
|
)
|
|
$
|
(5
|
)
|
Foreign currency translation adjustments, net of tax of $(3)
|
—
|
|
|
6
|
|
||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(254)
|
726
|
|
|
—
|
|
||
Net current-period other comprehensive income (loss)
|
726
|
|
|
6
|
|
||
Balance at March 31, 2019
|
$
|
—
|
|
|
$
|
1
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
Stock-based compensation expense
|
$
|
3,621
|
|
|
$
|
5,629
|
|
|
Number
of Shares
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Outstanding at December 31, 2019
|
528,376
|
|
|
$
|
115.74
|
|
Granted
|
190,372
|
|
|
$
|
86.81
|
|
Forfeited
|
(1,789
|
)
|
|
$
|
123.14
|
|
Settled
|
(123,090
|
)
|
|
$
|
111.65
|
|
Outstanding at March 31, 2020
|
593,869
|
|
|
$
|
107.29
|
|
|
Number
of Shares
|
|
Weighted
Average
Exercise Price
|
|||
Outstanding at December 31, 2019
|
6,654
|
|
|
$
|
39.35
|
|
Exercised
|
(3,145
|
)
|
|
$
|
31.74
|
|
Outstanding, vested and exercisable at March 31, 2020
|
3,509
|
|
|
$
|
46.17
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands, except per share amounts)
|
2020
|
|
2019
|
||||
Net Income (Loss)
|
$
|
1,006
|
|
|
$
|
22,468
|
|
Noncontrolling interests
|
(5,291
|
)
|
|
(722
|
)
|
||
Net Income (Loss) Attributable to Stockholders
|
(4,285
|
)
|
|
21,746
|
|
||
Preferred stock dividends
|
—
|
|
|
(2,084
|
)
|
||
Net Income (Loss) Attributable to Common Stockholders
|
$
|
(4,285
|
)
|
|
$
|
19,662
|
|
Shares:
|
|
|
|
||||
Basic: Weighted-average number of shares outstanding
|
7,422
|
|
|
7,015
|
|
||
Plus: Incremental shares from assumed conversion of dilutive instruments
|
—
|
|
|
1,307
|
|
||
Diluted: Weighted-average number of shares outstanding
|
7,422
|
|
|
8,322
|
|
||
Earnings (Loss) per Share—Basic
|
$
|
(0.58
|
)
|
|
$
|
2.80
|
|
Earnings (Loss) per Share—Diluted
|
$
|
(0.58
|
)
|
|
$
|
2.61
|
|
|
Three Months Ended March 31,
|
||||
(in thousands)
|
2020
|
|
2019
|
||
Restricted stock units and options
|
597
|
|
|
121
|
|
Preferred stock
|
321
|
|
|
—
|
|
Total anti-dilutive securities
|
918
|
|
|
121
|
|
(in thousands)
|
|
CIP
|
|
Affiliate Noncontrolling Interests
|
|
Total
|
||||||
Balances at December 31, 2019
|
|
$
|
5,429
|
|
|
$
|
58,416
|
|
|
$
|
63,845
|
|
Net income (loss) attributable to noncontrolling interests
|
|
(1,987
|
)
|
|
648
|
|
|
(1,339
|
)
|
|||
Changes in redemption value (1)
|
|
—
|
|
|
6,375
|
|
|
6,375
|
|
|||
Total net income (loss) attributable to noncontrolling interests
|
|
(1,987
|
)
|
|
7,023
|
|
|
5,036
|
|
|||
Net subscriptions (redemptions) and other
|
|
21,504
|
|
|
(3,270
|
)
|
|
18,234
|
|
|||
Balances at March 31, 2020
|
|
$
|
24,946
|
|
|
$
|
62,169
|
|
|
$
|
87,115
|
|
|
As of
|
||||||||||||||||||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
|
|
VIEs
|
|
|
|
VIEs
|
||||||||||||||||
(in thousands)
|
VOEs
|
|
CLOs
|
|
Other
|
|
VOEs
|
|
CLOs
|
|
Other
|
||||||||||||
Cash and cash equivalents
|
$
|
11,790
|
|
|
$
|
221,505
|
|
|
$
|
1,875
|
|
|
$
|
2,665
|
|
|
$
|
97,130
|
|
|
$
|
363
|
|
Investments
|
44,525
|
|
|
2,117,938
|
|
|
27,294
|
|
|
22,223
|
|
|
1,976,148
|
|
|
31,739
|
|
||||||
Other assets
|
6,485
|
|
|
22,532
|
|
|
416
|
|
|
1,563
|
|
|
21,450
|
|
|
599
|
|
||||||
Notes payable
|
—
|
|
|
(2,134,108
|
)
|
|
—
|
|
|
—
|
|
|
(1,834,535
|
)
|
|
—
|
|
||||||
Securities purchased payable and other liabilities
|
(8,419
|
)
|
|
(138,977
|
)
|
|
(438
|
)
|
|
(2,964
|
)
|
|
(164,887
|
)
|
|
(200
|
)
|
||||||
Noncontrolling interests
|
(23,540
|
)
|
|
(10,247
|
)
|
|
(1,406
|
)
|
|
(3,865
|
)
|
|
(10,558
|
)
|
|
(1,564
|
)
|
||||||
Net interests in CIP
|
$
|
30,841
|
|
|
$
|
78,643
|
|
|
$
|
27,741
|
|
|
$
|
19,622
|
|
|
$
|
84,748
|
|
|
$
|
30,937
|
|
(in thousands)
|
|
||
Subordinated notes
|
$
|
77,325
|
|
Accrued investment management fees
|
1,318
|
|
|
Total beneficial interests
|
$
|
78,643
|
|
(in thousands)
|
Three Months Ended March 31, 2020
|
||
Income:
|
|
||
Realized and unrealized gain (loss), net
|
$
|
1,391
|
|
Interest income
|
28,748
|
|
|
Total income
|
30,139
|
|
|
|
|
||
Expenses:
|
|
||
Other operating expenses
|
6,631
|
|
|
Interest expense
|
24,486
|
|
|
Total expense
|
31,117
|
|
|
Noncontrolling interests
|
(255
|
)
|
|
Net Income (loss) attributable to CIP
|
$
|
(1,233
|
)
|
(in thousands)
|
Three Months Ended March 31, 2020
|
||
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company
|
$
|
(3,261
|
)
|
Investment management fees
|
2,028
|
|
|
Total economic interests
|
$
|
(1,233
|
)
|
(in thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
221,505
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
221,505
|
|
Debt investments
|
16,368
|
|
|
2,151,158
|
|
|
707
|
|
|
2,168,233
|
|
||||
Equity investments
|
18,303
|
|
|
2,638
|
|
|
583
|
|
|
21,524
|
|
||||
Derivatives
|
803
|
|
|
1,408
|
|
|
—
|
|
|
2,211
|
|
||||
Total assets measured at fair value
|
$
|
256,979
|
|
|
$
|
2,155,204
|
|
|
$
|
1,290
|
|
|
$
|
2,413,473
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Notes payable
|
$
|
—
|
|
|
$
|
2,134,108
|
|
|
$
|
—
|
|
|
$
|
2,134,108
|
|
Derivatives
|
333
|
|
|
1,443
|
|
|
—
|
|
|
1,776
|
|
||||
Short sales
|
313
|
|
|
—
|
|
|
—
|
|
|
313
|
|
||||
Total liabilities measured at fair value
|
$
|
646
|
|
|
$
|
2,135,551
|
|
|
$
|
—
|
|
|
$
|
2,136,197
|
|
(in thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
97,130
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
97,130
|
|
Debt investments
|
218
|
|
|
1,973,427
|
|
|
39,389
|
|
|
2,013,034
|
|
||||
Equity investments
|
15,872
|
|
|
171
|
|
|
1,033
|
|
|
17,076
|
|
||||
Total assets measured at fair value
|
$
|
113,220
|
|
|
$
|
1,973,598
|
|
|
$
|
40,422
|
|
|
$
|
2,127,240
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Notes payable
|
$
|
—
|
|
|
$
|
1,834,535
|
|
|
$
|
—
|
|
|
$
|
1,834,535
|
|
Short sales
|
430
|
|
|
—
|
|
|
—
|
|
|
430
|
|
||||
Total liabilities measured at fair value
|
$
|
430
|
|
|
$
|
1,834,535
|
|
|
$
|
—
|
|
|
$
|
1,834,965
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
Level 3 Investments of CIP (1)
|
|
|
|
||||
Balance at beginning of period
|
$
|
40,422
|
|
|
$
|
6,848
|
|
Realized gains (losses), net
|
4
|
|
|
6
|
|
||
Change in unrealized gains (losses), net
|
(643
|
)
|
|
(45
|
)
|
||
Purchases
|
119
|
|
|
1,595
|
|
||
Amortization
|
6
|
|
|
2
|
|
||
Sales
|
(1,193
|
)
|
|
(429
|
)
|
||
Transfers to Level 2
|
(38,013
|
)
|
|
(7,199
|
)
|
||
Transfers from Level 2
|
588
|
|
|
30,981
|
|
||
Balance at end of period
|
$
|
1,290
|
|
|
$
|
31,759
|
|
|
|
|
|
(1)
|
The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers between Level 2 and Level 3 were due to trading activities at period end.
|
•
|
Net loss per diluted share was $0.58 in the first quarter of 2020, as compared to net income per diluted share of $2.61 in the first quarter of 2019.
|
•
|
Total sales were $7.0 billion in the first quarter of 2020, an increase of $1.5 billion, or 27.5%, from $5.5 billion in the first quarter of 2019. Net flows were $(1.3) billion in the first quarter of 2020 compared to $(0.1) billion in the first quarter of 2019.
|
•
|
Assets under management were $90.7 billion at March 31, 2020, a decrease of $11.0 billion from March 31, 2019.
|
|
As of March 31,
|
|
Change
|
|||||||||||
(in millions)
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
Open-End Funds (1)
|
$
|
33,498
|
|
|
$
|
40,633
|
|
|
$
|
(7,135
|
)
|
|
(17.6
|
)%
|
Closed-End Funds
|
5,343
|
|
|
6,553
|
|
|
(1,210
|
)
|
|
(18.5
|
)%
|
|||
Exchange Traded Funds
|
480
|
|
|
1,102
|
|
|
(622
|
)
|
|
(56.4
|
)%
|
|||
Retail Separate Accounts
|
17,660
|
|
|
17,123
|
|
|
537
|
|
|
3.1
|
%
|
|||
Institutional Accounts
|
28,210
|
|
|
30,514
|
|
|
(2,304
|
)
|
|
(7.6
|
)%
|
|||
Structured Products
|
4,343
|
|
|
3,998
|
|
|
345
|
|
|
8.6
|
%
|
|||
Total Long-Term
|
89,534
|
|
|
99,923
|
|
|
(10,389
|
)
|
|
(10.4
|
)%
|
|||
Liquidity (2)
|
1,160
|
|
|
1,789
|
|
|
(629
|
)
|
|
(35.2
|
)%
|
|||
Total
|
$
|
90,694
|
|
|
$
|
101,712
|
|
|
$
|
(11,018
|
)
|
|
(10.8
|
)%
|
Average Assets Under Management (3)
|
$
|
105,904
|
|
|
$
|
96,407
|
|
|
$
|
9,497
|
|
|
9.9
|
%
|
Average Long-Term Assets Under Management (3)
|
$
|
104,685
|
|
|
$
|
94,682
|
|
|
$
|
10,003
|
|
|
10.6
|
%
|
(1)
|
Represents assets under management of U.S. retail funds, offshore funds and variable insurance funds.
|
(2)
|
Represents assets under management in liquidity strategies, including in certain open-end funds and institutional accounts.
|
(3)
|
Averages are calculated as follows:
|
-
|
Funds - average daily or weekly balances
|
-
|
Retail Separate Accounts - prior-quarter ending balances
|
-
|
Institutional Accounts and Structured Products - average of month-end balances
|
|
Three Months Ended March 31,
|
||||||
(in millions)
|
2020
|
|
2019
|
||||
Open-End Funds (1)
|
|
|
|
||||
Beginning balance
|
$
|
42,870
|
|
|
$
|
37,710
|
|
Inflows
|
3,874
|
|
|
3,000
|
|
||
Outflows
|
(5,471
|
)
|
|
(3,867
|
)
|
||
Net flows
|
(1,597
|
)
|
|
(867
|
)
|
||
Market performance
|
(7,730
|
)
|
|
3,839
|
|
||
Other (2)
|
(45
|
)
|
|
(49
|
)
|
||
Ending balance
|
$
|
33,498
|
|
|
$
|
40,633
|
|
Closed-End Funds
|
|
|
|
||||
Beginning balance
|
$
|
6,748
|
|
|
$
|
5,956
|
|
Inflows
|
5
|
|
|
11
|
|
||
Outflows
|
—
|
|
|
—
|
|
||
Net flows
|
5
|
|
|
11
|
|
||
Market performance
|
(1,185
|
)
|
|
662
|
|
||
Other (2)
|
(225
|
)
|
|
(76
|
)
|
||
Ending balance
|
$
|
5,343
|
|
|
$
|
6,553
|
|
Exchange Traded Funds
|
|
|
|
||||
Beginning balance
|
$
|
1,156
|
|
|
$
|
668
|
|
Inflows
|
86
|
|
|
394
|
|
||
Outflows
|
(233
|
)
|
|
(46
|
)
|
||
Net flows
|
(147
|
)
|
|
348
|
|
||
Market performance
|
(505
|
)
|
|
108
|
|
||
Other (2)
|
(24
|
)
|
|
(22
|
)
|
||
Ending balance
|
$
|
480
|
|
|
$
|
1,102
|
|
Retail Separate Accounts
|
|
|
|
||||
Beginning balance
|
$
|
20,414
|
|
|
$
|
14,998
|
|
Inflows
|
1,061
|
|
|
753
|
|
||
Outflows
|
(775
|
)
|
|
(472
|
)
|
||
Net flows
|
286
|
|
|
281
|
|
||
Market performance
|
(3,040
|
)
|
|
1,895
|
|
||
Other (2)
|
—
|
|
|
(51
|
)
|
||
Ending balance
|
$
|
17,660
|
|
|
$
|
17,123
|
|
Institutional Accounts
|
|
|
|
||||
Beginning balance
|
$
|
32,635
|
|
|
$
|
27,445
|
|
Inflows
|
1,499
|
|
|
954
|
|
||
Outflows
|
(1,777
|
)
|
|
(1,154
|
)
|
||
Net flows
|
(278
|
)
|
|
(200
|
)
|
||
Market performance
|
(4,150
|
)
|
|
3,156
|
|
||
Other (2)
|
3
|
|
|
113
|
|
||
Ending balance
|
$
|
28,210
|
|
|
$
|
30,514
|
|
Structured Products
|
|
|
|
||||
Beginning balance
|
$
|
3,903
|
|
|
$
|
3,640
|
|
Inflows
|
491
|
|
|
389
|
|
||
Outflows
|
(42
|
)
|
|
(16
|
)
|
||
Net flows
|
449
|
|
|
373
|
|
||
Market performance
|
39
|
|
|
27
|
|
||
Other (2)
|
(48
|
)
|
|
(42
|
)
|
||
Ending balance
|
$
|
4,343
|
|
|
$
|
3,998
|
|
|
|
|
|
(1)
|
Represents assets under management of U.S. retail funds, offshore funds and variable insurance funds.
|
(2)
|
Represents open-end and closed-end fund distributions net of reinvestments, the net change in assets from liquidity strategies and the effect on net flows from non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), structured products reset transactions and the use of leverage.
|
(3)
|
Represents assets under management in liquidity strategies, including in certain open-end funds and institutional accounts.
|
|
As of March 31,
|
|
Change
|
|
% of Total
|
|||||||||||||||
(in millions)
|
2020
|
|
2019
|
|
$
|
|
%
|
|
2020
|
|
2019
|
|||||||||
Asset Class
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity
|
$
|
57,180
|
|
|
$
|
61,781
|
|
|
$
|
(4,601
|
)
|
|
(7.4
|
)%
|
|
63.0
|
%
|
|
60.7
|
%
|
Fixed income
|
28,231
|
|
|
33,674
|
|
|
(5,443
|
)
|
|
(16.2
|
)%
|
|
31.1
|
%
|
|
33.1
|
%
|
|||
Alternatives (1)
|
4,123
|
|
|
4,468
|
|
|
(345
|
)
|
|
(7.7
|
)%
|
|
4.6
|
%
|
|
4.4
|
%
|
|||
Liquidity (2)
|
1,160
|
|
|
1,789
|
|
|
(629
|
)
|
|
(35.2
|
)%
|
|
1.3
|
%
|
|
1.8
|
%
|
|||
Total
|
$
|
90,694
|
|
|
$
|
101,712
|
|
|
$
|
(11,018
|
)
|
|
(10.8
|
)%
|
|
100.0
|
%
|
|
100.0
|
%
|
(1)
|
Consists of real estate securities, mid-stream energy securities and master limited partnerships, options strategies and other.
|
(2)
|
Represents assets under management in liquidity strategies, including in certain open-end funds and institutional accounts.
|
|
Three Months Ended March 31,
|
||||||||||||
|
Average Fee Earned
(expressed in basis points)
|
|
Average Assets Under
Management
(in millions) (2)
|
||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||
Products
|
|
|
|
|
|
|
|
||||||
Open-End Funds (1)
|
57.8
|
|
|
54.6
|
|
|
$
|
41,060
|
|
|
$
|
39,532
|
|
Closed-End Funds
|
62.8
|
|
|
64.9
|
|
|
6,524
|
|
|
6,258
|
|
||
Exchange Traded Funds
|
21.3
|
|
|
16.7
|
|
|
962
|
|
|
871
|
|
||
Retail Separate Accounts
|
50.7
|
|
|
48.7
|
|
|
20,414
|
|
|
14,998
|
|
||
Institutional Accounts
|
29.2
|
|
|
30.6
|
|
|
31,534
|
|
|
29,354
|
|
||
Structured Products
|
33.9
|
|
|
37.1
|
|
|
4,191
|
|
|
3,669
|
|
||
All Long-Term Products
|
46.8
|
|
|
45.9
|
|
|
104,685
|
|
|
94,682
|
|
||
Liquidity (3)
|
9.8
|
|
|
9.9
|
|
|
1,219
|
|
|
1,725
|
|
||
All Products
|
46.4
|
|
|
45.3
|
|
|
$
|
105,904
|
|
|
$
|
96,407
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents assets under management of U.S. retail funds, offshore funds and variable insurance funds.
|
(2)
|
Averages are calculated as follows:
|
-
|
Funds - average daily or weekly balances
|
-
|
Retail Separate Accounts - prior-quarter ending balances
|
-
|
Institutional Accounts and Structured Products - average of month-end balances
|
(3)
|
Represents assets under management in liquidity strategies, including in certain open-end funds and institutional accounts.
|
|
Three Months Ended March 31,
|
|||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|
%
|
|||||||
Investment management fees
|
$
|
120,288
|
|
|
$
|
105,918
|
|
|
$
|
14,370
|
|
|
13.6
|
%
|
Other revenue
|
24,278
|
|
|
24,800
|
|
|
(522
|
)
|
|
(2.1
|
)%
|
|||
Total revenues
|
144,566
|
|
|
130,718
|
|
|
13,848
|
|
|
10.6
|
%
|
|||
Total operating expenses
|
119,964
|
|
|
109,719
|
|
|
10,245
|
|
|
9.3
|
%
|
|||
Operating income (loss)
|
24,602
|
|
|
20,999
|
|
|
3,603
|
|
|
17.2
|
%
|
|||
Other income (expense), net
|
(15,601
|
)
|
|
1,962
|
|
|
(17,563
|
)
|
|
(895.2
|
)%
|
|||
Interest income (expense), net
|
2,296
|
|
|
3,726
|
|
|
(1,430
|
)
|
|
(38.4
|
)%
|
|||
Income (loss) before income taxes
|
11,297
|
|
|
26,687
|
|
|
(15,390
|
)
|
|
(57.7
|
)%
|
|||
Income tax expense (benefit)
|
10,291
|
|
|
4,219
|
|
|
6,072
|
|
|
143.9
|
%
|
|||
Net income (loss)
|
1,006
|
|
|
22,468
|
|
|
(21,462
|
)
|
|
(95.5
|
)%
|
|||
Noncontrolling interests
|
(5,291
|
)
|
|
(722
|
)
|
|
(4,569
|
)
|
|
632.8
|
%
|
|||
Net Income (Loss) Attributable to Stockholders
|
(4,285
|
)
|
|
21,746
|
|
|
(26,031
|
)
|
|
(119.7
|
)%
|
|||
Preferred stockholder dividends
|
—
|
|
|
(2,084
|
)
|
|
2,084
|
|
|
(100.0
|
)%
|
|||
Net Income (Loss) Attributable to Common Stockholders
|
$
|
(4,285
|
)
|
|
$
|
19,662
|
|
|
$
|
(23,947
|
)
|
|
(121.8
|
)%
|
Earnings (loss) per share-diluted
|
$
|
(0.58
|
)
|
|
$
|
2.61
|
|
|
$
|
(3.19
|
)
|
|
(122.2
|
)%
|
|
Three Months Ended March 31,
|
|||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|
%
|
|||||||
Investment management fees
|
|
|
|
|
|
|
|
|||||||
Open-end funds
|
$
|
59,108
|
|
|
$
|
53,293
|
|
|
$
|
5,815
|
|
|
10.9
|
%
|
Closed-end funds
|
10,179
|
|
|
10,019
|
|
|
160
|
|
|
1.6
|
%
|
|||
Retail separate accounts
|
25,714
|
|
|
18,005
|
|
|
7,709
|
|
|
42.8
|
%
|
|||
Institutional accounts
|
22,917
|
|
|
22,177
|
|
|
740
|
|
|
3.3
|
%
|
|||
Structured products
|
1,574
|
|
|
1,647
|
|
|
(73
|
)
|
|
(4.4
|
)%
|
|||
Other products
|
796
|
|
|
777
|
|
|
19
|
|
|
2.4
|
%
|
|||
Total investment management fees
|
120,288
|
|
|
105,918
|
|
|
14,370
|
|
|
13.6
|
%
|
|||
Distribution and service fees
|
9,460
|
|
|
10,063
|
|
|
(603
|
)
|
|
(6.0
|
)%
|
|||
Administration and shareholder service fees
|
14,653
|
|
|
14,413
|
|
|
240
|
|
|
1.7
|
%
|
|||
Other income and fees
|
165
|
|
|
324
|
|
|
(159
|
)
|
|
(49.1
|
)%
|
|||
Total revenues
|
$
|
144,566
|
|
|
$
|
130,718
|
|
|
$
|
13,848
|
|
|
10.6
|
%
|
|
Three Months Ended March 31,
|
|||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|
%
|
|||||||
Operating expenses
|
|
|
|
|
|
|
|
|||||||
Employment expenses
|
$
|
66,130
|
|
|
$
|
60,851
|
|
|
$
|
5,279
|
|
|
8.7
|
%
|
Distribution and other asset-based expenses
|
19,409
|
|
|
19,764
|
|
|
(355
|
)
|
|
(1.8
|
)%
|
|||
Other operating expenses
|
18,885
|
|
|
18,723
|
|
|
162
|
|
|
0.9
|
%
|
|||
Other operating expenses of CIP
|
6,749
|
|
|
451
|
|
|
6,298
|
|
|
1,396.5
|
%
|
|||
Restructuring and severance
|
—
|
|
|
1,176
|
|
|
(1,176
|
)
|
|
(100.0
|
)%
|
|||
Depreciation expense
|
1,258
|
|
|
1,213
|
|
|
45
|
|
|
3.7
|
%
|
|||
Amortization expense
|
7,533
|
|
|
7,541
|
|
|
(8
|
)
|
|
(0.1
|
)%
|
|||
Total operating expenses
|
$
|
119,964
|
|
|
$
|
109,719
|
|
|
$
|
10,245
|
|
|
9.3
|
%
|
|
Three Months Ended March 31,
|
|||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|
%
|
|||||||
Other Income (Expense)
|
|
|
|
|
|
|
|
|||||||
Realized and unrealized gain (loss) on investments, net
|
$
|
(7,544
|
)
|
|
$
|
3,433
|
|
|
$
|
(10,977
|
)
|
|
(319.7
|
)%
|
Realized and unrealized gain (loss) of CIP, net
|
(8,669
|
)
|
|
(1,921
|
)
|
|
(6,748
|
)
|
|
351.3
|
%
|
|||
Other income (expense), net
|
612
|
|
|
450
|
|
|
162
|
|
|
36.0
|
%
|
|||
Total Other Income (Expense), net
|
$
|
(15,601
|
)
|
|
$
|
1,962
|
|
|
$
|
(17,563
|
)
|
|
(895.2
|
)%
|
|
Three Months Ended March 31,
|
|||||||||||||
(in thousands)
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|
%
|
|||||||
Interest Income (Expense)
|
|
|
|
|
|
|
|
|||||||
Interest expense
|
$
|
(3,199
|
)
|
|
$
|
(5,165
|
)
|
|
$
|
1,966
|
|
|
(38.1
|
)%
|
Interest and dividend income
|
752
|
|
|
1,190
|
|
|
(438
|
)
|
|
(36.8
|
)%
|
|||
Interest and dividend income of investments of CIP
|
29,229
|
|
|
27,402
|
|
|
1,827
|
|
|
6.7
|
%
|
|||
Interest expense of CIP
|
(24,486
|
)
|
|
(19,701
|
)
|
|
(4,785
|
)
|
|
24.3
|
%
|
|||
Total Interest Income (Expense), net
|
$
|
2,296
|
|
|
$
|
3,726
|
|
|
$
|
(1,430
|
)
|
|
(38.4
|
)%
|
|
March 31, 2020
|
|
December 31, 2019
|
|
Change
|
|||||||||
(in thousands)
|
2020 vs. 2019
|
|
%
|
|||||||||||
Balance Sheet Data
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
$
|
158,456
|
|
|
$
|
221,781
|
|
|
$
|
(63,325
|
)
|
|
(28.6
|
)%
|
Investments
|
56,853
|
|
|
83,206
|
|
|
(26,353
|
)
|
|
(31.7
|
)%
|
|||
Debt
|
251,465
|
|
|
277,839
|
|
|
(26,374
|
)
|
|
(9.5
|
)%
|
|||
Redeemable noncontrolling interests
|
87,115
|
|
|
63,845
|
|
|
23,270
|
|
|
36.4
|
%
|
|||
Total equity
|
666,466
|
|
|
686,257
|
|
|
(19,791
|
)
|
|
(2.9
|
)%
|
|
Three Months Ended March 31,
|
|
Change
|
|||||||||||
(in thousands)
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|
%
|
|||||||
Cash Flow Data
|
|
|
|
|
|
|
|
|||||||
Provided by (Used In):
|
|
|
|
|
|
|
|
|||||||
Operating Activities
|
$
|
(252,320
|
)
|
|
$
|
(23,215
|
)
|
|
$
|
(229,105
|
)
|
|
986.9
|
%
|
Investing Activities
|
9,366
|
|
|
(2,095
|
)
|
|
11,461
|
|
|
(547.1
|
)%
|
|||
Financing Activities
|
314,641
|
|
|
(31,280
|
)
|
|
345,921
|
|
|
(1,105.9
|
)%
|
Period
|
Total number of shares purchased
|
|
Average price paid per share (1)
|
|
Total number of shares purchased as part of publicly announced plans or programs (2)
|
|
Maximum number of shares that may yet be purchased under the plans or programs (2)
|
|||||
January 1-31, 2020
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
252,438
|
|
February 1-29, 2020
|
19,588
|
|
|
$
|
127.01
|
|
|
19,588
|
|
|
232,850
|
|
March 1-31, 2020
|
91,368
|
|
|
$
|
82.18
|
|
|
91,368
|
|
|
141,482
|
|
Total
|
110,956
|
|
|
|
|
110,956
|
|
|
|
(1)
|
Average price paid per share is calculated on a settlement basis and excludes commissions.
|
(2)
|
The share repurchases above were completed pursuant to a program announced in the fourth quarter of 2010 and most recently expanded in December 2017. This repurchase program is not subject to an expiration date.
|
Exhibit
Number
|
|
Description
|
|
|
|
|
Certification of the Registrant’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
Certification of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
101
|
|
The following information formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2020 and December 31, 2019, (ii) Condensed Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2020 and 2019, (iii) Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended March 31, 2020 and 2019, (iv) Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2020 and 2019, (v) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2020 and 2019 and (vi) Notes to Condensed Consolidated Financial Statements (Unaudited).
|
|
|
|
104
|
|
Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)
|
|
VIRTUS INVESTMENT PARTNERS, INC.
|
|
|
(Registrant)
|
|
|
|
|
|
By:
|
/s/ Michael A. Angerthal
|
|
|
Michael A. Angerthal
|
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year Virtus Investment Partners Chart |
1 Month Virtus Investment Partners Chart |
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