Free Submission Public Relations & NewsPR-inside.com
Home
Deutsch English

Business

PZENA INVESTMENT MANAGEMENT, INC. REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2012


Print article Print article
Copyright © Thomson Reuters 2013. All rights reserved.
2013-02-12 22:03:05 -


* 2012 revenue was $19.3 million for the fourth quarter and $76.3 million for
the full year.
* 2012 operating income was $9.5 million for the fourth quarter and $37.2
million for the full year.
* 2012 GAAP diluted earnings per share was $0.08 for the fourth quarter and
$0.32 for the full year.  For the same periods, non-GAAP diluted earnings
per share was $0.08 and $0.31, respectively.
* Declared a year-end dividend of $0.16 per share - in line with the targeted
cash dividend ratio of 70% to
80% of non-GAAP net income.

NEW YORK, NEW YORK, February 12, 2013 - Pzena Investment Management, Inc. (NYSE:
PZN) reported the following U.S. GAAP (U.S. Generally Accepted Accounting
Principles) and non-GAAP basic and diluted net income and earnings per share for
the three and twelve months ended December 31, 2012 and 2011 (in thousands,
except per-share amounts):


    GAAP Basis   Non-GAAP Basis

    For the Three Months   For the Three Months
Ended Ended

    December 31,    December 31,
------------------------- ------------------------
    2012   2011   2012   2011
---------- -------------- ---------- -------------
    (unaudited)



Basic Net Income $      956 $      369 $      891 $      854

Basic Earnings Per Share $     0.09 $     0.03 $     0.08 $     0.08



Diluted Net Income $    5,226 $      369 $    5,161 $    5,063

Diluted Earnings Per Share $     0.08 $     0.03 $     0.08 $     0.08



    GAAP Basis   Non-GAAP Basis

    For the Twelve Months   For the Twelve Months
Ended Ended

    December 31,    December 31,
------------------------- ------------------------
    2012   2011   2012   2011
---------- -------------- ---------- -------------
    (unaudited)



Basic Net Income $    3,840 $    3,382 $    3,419 $    3,611

Basic Earnings Per Share $     0.36 $     0.34 $     0.32 $     0.36



Diluted Net Income $  20,821 $  20,631 $  20,399 $  23,156

Diluted Earnings Per Share $     0.32 $     0.32 $     0.31 $     0.36


The results for the three and twelve months ended December 31, 2012 and 2011
include recurring adjustments related to the Company's tax receivable agreement
and the associated liability to its selling and converting shareholders, in
addition to the adjustments related to certain one-time charges recognized in
operating expense in the fourth quarter of 2011.  Management believes that these
accounting adjustments add a measure of non-operational complexity which
obscures the underlying performance of the business.  In evaluating the
financial condition and results of operations, management also reviews non-GAAP
measures of earnings, which exclude these items.  Excluding these adjustments,
non-GAAP diluted net income and non-GAAP diluted earnings per share were
$5.2 million and $0.08, respectively, for the three months ended December
31, 2012, and $5.1 million and $0.08, respectively, for the three months ended
December 31, 2011.  Non-GAAP diluted net income and non-GAAP diluted earnings
per share were $20.4 million and $0.31, respectively, for the twelve months
ended December 31, 2012 and $23.2 million and $0.36, respectively, for the
twelve months ended December 31, 2011.  GAAP and non-GAAP net income for diluted
earnings per share generally assume all operating company membership units are
converted into Company stock at the beginning of the reporting period, and the
resulting change to Company GAAP and non-GAAP net income associated with its
increased interest in the operating company is taxed at the Company's effective
tax rate, exclusive of the adjustments noted above and other one-time
adjustments.  When this conversion results in an increase in earnings per share
or a decrease in loss per share, diluted net income and diluted earnings per
share are assumed to be equal to basic net income and basic earnings per share
for the reporting period.

Management uses the non-GAAP measures to assess the strength of the underlying
operations of the business.  It believes the non-GAAP measures provide
information to better analyze the Company's operations between periods and over
time.  Investors should consider the non-GAAP measures in addition to, and not
as a substitute for, financial measures prepared in accordance with GAAP.


Assets Under Management (unaudited)

($ billions)

    Three Months Ended   Twelve Months Ended
--------------------------------- --------------------
    December   September   December   December   December
31, 30, 31, 31, 31,

    2012   2012   2011   2012   2011
---------- ----------- ---------- ---------- ---------


Institutional
Accounts

  Assets

     $ 11.2 $ 10.9 $ 10.0 $ 11.3 $ 12.5
Beginning of
Period

            0.1   0.3   0.7   0.7  
2.1
Inflows

            (0.6)   (0.7)   (0.5)   (2.8)  
(2.2)
Outflows
---------- ----------- ---------- ---------- ---------
          Net   (0.5)   (0.4)   0.2   (2.1)  
(0.1)
Flows

          Market 0.5   0.7   1.1   2.0  
(1.1)
Appreciation/(Depreciation)
---------- ----------- ---------- ---------- ---------
     End of $ 11.2 $ 11.2 $ 11.3 $ 11.2 $ 11.3
Period
---------- ----------- ---------- ---------- ---------


Retail
Accounts

  Assets

     $ 5.6 $ 2.2 $ 2.2 $ 2.2 $ 3.1
Beginning of
Period Assets

            0.4   3.3   0.2   4.0  
0.9
Inflows

            (0.3)   (0.3)   (0.5)   (1.0)  
(1.6)
Outflows
---------- ----------- ---------- ---------- ---------
          Net   0.1   3.0   (0.3)   3.0  
(0.7)
Flows

          Market 0.2   0.4   0.3   0.7  
(0.2)
Appreciation/(Depreciation)
---------- ----------- ---------- ---------- ---------
     End of $ 5.9 $ 5.6 $ 2.2 $ 5.9 $ 2.2
Period
---------- ----------- ---------- ---------- ---------


Total

  Assets

     $ 16.8 $ 13.1 $ 12.2 $ 13.5 $ 15.6
Beginning of
Period

            0.5   3.6   0.9   4.7  
3.0
Inflows

            (0.9)   (1.0)   (1.0)   (3.8)  
(3.8)
Outflows
---------- ----------- ---------- ---------- ---------
          Net   (0.4)   2.6   (0.1)   0.9  
(0.8)
Flows

          Market 0.7   1.1   1.4   2.7  
(1.3)
Appreciation/(Depreciation)
---------- ----------- ---------- ---------- ---------
     End of $ 17.1 $ 16.8 $ 13.5 $ 17.1 $ 13.5
Period
---------- ----------- ---------- ---------- ---------


Financial Discussion



Revenue
(unaudited)

($ thousands)

    Three Months Ended
-----------------------------------------------------------------------
    December 31,    September 30,   December 31,

    2012   2012   2011
---------------------- ---------------------- ---------------------


Institutional  $               15,809  $               15,741
 $               16,596
Accounts

Retail                  3,503  
               3,120                  2,340
Accounts
---------------------- ---------------------- ---------------------
    Total  $               19,312  $ 
             18,861  $               18,936
---------------------- ---------------------- ---------------------




        Twelve Months Ended
----------------------------------------------
        December 31,    December 31,

        2012   2011
---------------------- ---------------------


Institutional      $               64,919  $ 
             72,002
Accounts

Retail                    11,361  
             11,043
Accounts
---------------------- ---------------------
    Total      $               76,280  $ 
             83,045
---------------------- ---------------------

Revenue was $19.3 million for the fourth quarter of 2012, an increase of 2.0%
from $18.9 million for the fourth quarter of 2011, and an increase of 2.4% from
$18.9 million for the third quarter of 2012.  For the twelve months ended
December 31, 2012, revenues were $76.3 million, a decrease of 8.1%, from $83.0
million, for the twelve months ended December 31, 2011.

Average assets under management for the fourth quarter of 2012 was $16.8
billion, an increase of 27.3% from $13.2 billion for the fourth quarter of
2011, and an increase of 13.5% from $14.8 billion for the third quarter of
2012.  The increase from the fourth quarter of 2011 and from the third quarter
of 2012 was primarily due to the full quarter impact of the large inflow
associated with the Company's assignment to manage 28% of the Vanguard Windsor
Fund as of the beginning of August 2012.

The weighted average fee rate was 0.461% for the fourth quarter of 2012,
decreasing from 0.573% for the fourth quarter of 2011, and from 0.508% for the
third quarter of 2012.  The decrease from the fourth quarter of 2011 was
primarily due to performance fees recognized during the fourth quarter of 2011
combined with a higher mix of assets in the Company's retail Large Cap Expanded
Value strategy (formerly known as Large Cap Diversified Value) driven by the
Vanguard assignment, which carries a lower fee.  The full quarter impact of the
higher mix of assets in the Company's retail Large Cap Expanded Value strategy
also drove the variance from the third quarter of 2012.

The weighted average fee rate for institutional accounts was 0.569% for the
fourth quarter of 2012, decreasing from 0.608% for the fourth quarter of 2011,
and decreasing from 0.575% for the third quarter of 2012.  The net decrease from
the fourth quarter of 2011 was primarily due to performance fees recognized in
the fourth quarter of 2011, partially offset by a higher mix of assets in the
Company's Global strategy, which generally carries higher fee rates.  The
decrease from the third quarter of 2012 was due to the timing of asset flows in
our institutional accounts.

The weighted average fee rate for retail accounts was 0.248% for the fourth
quarter of 2012, decreasing from 0.407% for the fourth quarter of 2011, and from
0.321% for the third quarter of 2012.  The decrease from the fourth quarter of
2011 and from the third quarter of 2012 was primarily due to the full quarter
impact of the Vanguard assignment.

Total operating expenses were $9.8 million in the fourth quarter of 2012,
decreasing from $14.8 million in the fourth quarter of 2011 and increasing from
$9.5 million for the third quarter of 2012.  The increase from the third quarter
of 2012 was a result of fluctuations in various expense categories and a slight
increase in compensation cost.  The decrease in quarterly operating expenses
year-over-year was primarily due to one-time charges associated with the
sublease of excess real estate and a charge related to certain employee
departures during the fourth quarter of 2011.  A reconciliation of GAAP to non-
GAAP operating expenses is shown below:


Operating
Expenses
(unaudited)

($
thousands)

        Three Months Ended
-----------------------------------------------------------------------
        December 31,   September 30,   December 31,

        2012   2012   2011
------------------------ ------------------------ ---------------------


Compensation $               7,881 $               7,689
$             10,190
and Benefits
Expense

General and                 1,963                 1,764
                4,654
Administrative
Expense
------------------------ ------------------------ ---------------------
    GAAP                 9,844  
              9,453               14,844
Operating
Expenses

One-time                          -  
                     -                (4,798)
Charges
------------------------ ------------------------ ---------------------
    Non-GAAP $               9,844 $               9,453
$              10,046
Operating
Expenses
------------------------ ------------------------ ---------------------


            Twelve Months Ended
----------------------------------------------
            December 31,   December 31,

            2012   2011
------------------------ ---------------------


Compensation     $             31,755 $
            34,565
and Benefits
Expense

General and                     7,346  
            10,626
Administrative
Expense
------------------------ ---------------------
    GAAP                   39,101  
            45,191
Operating
Expenses

One-time                              -  
             (4,798)
Charges
------------------------ ---------------------
    Non-GAAP     $             39,101 $
            40,393
Operating
Expenses
------------------------ ---------------------

As of December 31, 2012, employee headcount was 70, up from 67 at December
31, 2011 and from 68 at September 30, 2012.

The operating margin was 49.0% on a GAAP basis for the fourth quarter of 2012,
compared to 21.6% for the fourth quarter of 2011, and 49.9% for the third
quarter of 2012.  The operating margin was 46.9% on a non-GAAP basis for the
fourth quarter of 2011.

Other income/(expense) were income of $0.2 million and $1.5 million for the
fourth quarters of 2012 and 2011, respectively, and an expense of $1.2 million
for the third quarter of 2012.  Other income/(expense) includes the net realized
and unrealized gain/(loss) recognized by the Company on its direct investments,
as well as those recognized by the Company's external investors on their
investments in investment partnerships that the Company is required to
consolidate.  A portion of realized and unrealized gain/(loss) associated with
the investments of the Company's outside interests are offset in net income
attributable to non-controlling interests.  Fourth quarter 2012 other
income/(expense) also included an expense of $0.3 million associated with an
increase in the Company's liability to its selling and converting shareholders
resulting from changes in the realizability of its related deferred tax asset.
 Such adjustments generated income of $0.7 million in the fourth quarter of
2011 and an expense of $1.7 million in the third quarter of 2012.  Details of
other income/(expense), as well as a reconciliation of the related GAAP and non-
GAAP measures, are shown below:


Other
Income/(Expense)
(unaudited)

($ thousands)

    Three Months Ended
-------------------------------------------------------------------
    December 31,    September 30,   December 31,

    2012   2012   2011
--------------------- --------------------- -------------------


Net Interest and $                  97 $
                 94 $                161
Dividend Income

Net Realized and                459                  395
                 354
Unrealized Gain from
Investments

Change in Liability              (305)             (1,684)  
               726
to Selling and
Converting
Shareholders¹

Other Income/                  (43)                 
(44)                  297
(Expense)
--------------------- --------------------- -------------------
    GAAP Other                  208             (1,239)
              1,538
Income/
(Expense)
--------------------- --------------------- -------------------
Change in Liability                305               1,684
               (726)
to Selling and
Converting
Shareholders¹

Outside                (291)                (210)
               (336)
Interests of
Investment
Partnerships²
--------------------- --------------------- -------------------
    Non-GAAP  $                 222  $ 
               235  $                 476
Other Income,
Net of Outside
Interests
--------------------- --------------------- -------------------


        Twelve Months Ended
-------------------------------------------
        December 31,    December 31,

        2012   2011
--------------------- -------------------


Net Interest and     $                318 $
               405
Dividend Income

Net Realized and Unrealized Gain/(Loss)               1,520  
             (355)
from Investments

Change in Liability to Selling and             (2,647)  
           (1,581)
Converting Shareholders¹

Other Income/                      (54)
(Expense) 65
--------------------- -------------------
    GAAP Other                    (863)  
           (1,466)
Income/
(Expense)
--------------------- -------------------
Change in Liability to Selling and               2,647  
            1,581
Converting Shareholders¹

Outside                    (854)  
               327
Interests of
Investment
Partnerships²
--------------------- -------------------
    Non-GAAP Other Income, Net of  $                 930  $ 
               442
Outside Interests
--------------------- -------------------

1. Reflects the change in liability to the Company's selling and converting
shareholders associated with the deferred tax asset generated by the
Company's initial public offering and subsequent unit conversions.
2. Represents the  non-controlling interest allocation of the (income)/loss of
the Company's consolidated investment partnerships to its external
investors.

The Company recognized $1.0 million and $1.6 million in income tax expense for
the fourth quarters of 2012 and 2011, respectively, and a $0.8 million income
tax benefit for the third quarter of 2012.  Fourth quarter 2012 income taxes
included $0.4 million in income associated with a decrease to the valuation
allowance recorded against the Company's deferred tax asset related to the basis
step ups associated with operating company unit exchanges.  Such adjustments
generated $0.8 million in income tax expense in the fourth quarter of 2011 and
$2.1 million in income tax benefit in the third quarter of 2012.  Details of the
income tax expense/ (benefit), as well as a reconciliation of the related GAAP
and non-GAAP measures, are shown below:

Income Tax
(Benefit)/Expense
(unaudited)

($ thousands)

    Three Months Ended

------------------------------------------------------------------------------
    December 31,    September 30,  
December 31,

    2012   2012  
2011
------------------------ ------------------------
------------------------


 GAAP Corporate  $                  686  $
                 654  $                   255
Income Tax
Expense

 Add Back: Effects                        -  
                     -                    333
of One-Time
Adjustments(1)
------------------------ ------------------------
------------------------
     Non-GAAP                    686  
                 654                    588
Corporate Income
Tax Expense
------------------------ ------------------------
------------------------
 GAAP                    642  
                 594                    555
Unincorporated
Business Tax
Expense

 Add Back: Effects                        -  
                     -                         5
of One-Time
Adjustments(1)
------------------------ ------------------------
------------------------
     Non-GAAP                    642  
                 594                    560
Unincorporated
Business Tax
Expense
------------------------ ------------------------
------------------------
     Non-GAAP                 1,328  
              1,248                 1,148
Income Tax Expense

         Change in                   (370)  
            (2,075)                    768
Valuation
Allowance(2)

         Less:                        -  
                     -                   (338)
Effects of One-
Time
Adjustments(1)
------------------------ ------------------------
------------------------
 GAAP Income Tax  $                   958  $ 
                (827)  $                1,578
Expense/(Benefit)
------------------------ ------------------------
------------------------


        Twelve Months Ended

---------------------------------------------------
        December 31,   
December 31,

        2012  
2011
------------------------
------------------------


 GAAP Corporate      $                2,559
 $                2,323
Income Tax
Expense

 Add Back: Effects      
                     -                    333
of One-Time
Adjustments(1)
------------------------
------------------------
     Non-GAAP                     2,559
                2,656
Corporate Income
Tax Expense
------------------------
------------------------
 GAAP                     2,420
                2,617
Unincorporated
Business Tax
Expense

 Add Back: Effects      
                     -                       5
of One-Time
Adjustments(1)
------------------------
------------------------
     Non-GAAP                     2,420
                2,622
Unincorporated
Business Tax
Expense
------------------------
------------------------
     Non-GAAP                      4,979
                 5,278
Income Tax Expense

         Change in      
             (3,068)                (1,795)
Valuation
Allowance(2)

         Less:      
                     -                    (338)
Effects of One-
Time
Adjustments(1)
------------------------
------------------------
 GAAP Income Tax      $                1,911
 $                3,145
Expense/(Benefit)
------------------------
------------------------


1. Reflects the effects of certain one-time charges on income tax
expense/(benefit).
2. Reflects the change in the valuation allowance assessed against the deferred
tax asset established as part of the Company's initial public offering and
subsequent unit conversions.


Details of the non-controlling interests in the operations of the Company's
operating company and consolidated subsidiaries, as well as a reconciliation of
the related GAAP and non-GAAP measures, are shown below:

Non-Controlling
Interests
(unaudited)

($ thousands)



    Three Months Ended

-------------------------------------------------------------------------------
    December 31,    September 30,  
December 31,

     2012     2012   
 2011
------------------------- -------------------------
-----------------------


 GAAP Operating  $                 7,471  $ 
               7,523  $                 3,347
Company
Allocation¹

 Add Back:                         -  
                      -                  4,017
Effects of One-
Time
Adjustments(2)
------------------------- -------------------------
-----------------------
     Non-GAAP                   7,471  
               7,523                  7,364
Operating
Company
Allocation

 Outside                      291  
                  210                     336
Interests of
Investment
Partnerships(3)
------------------------- -------------------------
-----------------------
     Non-GAAP                  7,762  
               7,733                  7,700
Net Income
Attributable to
Non-Controlling
Interests

         Less:                          
                      -                 (4,017)
Effects of One- -
Time
Adjustments(2)
------------------------- -------------------------
-----------------------
 GAAP Net  $                 7,762  $ 
               7,733  $                 3,683
Income
Attributable to
Non-Controlling
Interests
------------------------- -------------------------
-----------------------


        Twelve Months Ended

---------------------------------------------------
        December 31,   
December 31,

         2012   
 2011
-------------------------
-----------------------


 GAAP Operating      $               29,711
 $               30,188
Company
Allocation¹

 Add Back:      
                      -                  4,017
Effects of One-
Time
Adjustments(2)
-------------------------
-----------------------
     Non-GAAP                    29,711
                34,205
Operating
Company
Allocation

 Outside                         854
                   (327)
Interests of
Investment
Partnerships(3)
-------------------------
-----------------------
     Non-GAAP                    30,565
                33,878
Net Income
Attributable to
Non-Controlling
Interests

         Less:      
                      -                  (4,017)
Effects of One-
Time
Adjustments(2)
-------------------------
-----------------------
 GAAP Net      $               30,565
 $               29,861
Income
Attributable to
Non-Controlling
Interests
-------------------------
-----------------------


1. Reflects the change in the liability to the Company's selling and converting
shareholders associated with the deferred tax asset generated by the
Company's initial public offering and subsequent unit conversions.
2. Represents the effects of certain one-time charges on non-controlling
interests.
3. Represents the non-controlling interest allocation of (income)/loss of the
Company's consolidated investment partnerships to its external investors.

On February 5, 2013, the Company's Board of Directors approved a quarterly
dividend of $0.16 per share of its Class A common stock to be declared on
February 12, 2013.  The following dates apply to the dividend:

Record Date:         February 22, 2013

Payment Date:      March 7, 2013

During the last twelve months, inclusive of the dividend noted above, the
Company declared total dividends of $0.25 per share of its Class A common stock.


Fourth quarter 2012 Earnings Call Information

Pzena Investment Management, Inc. (NYSE: PZN) will hold a conference call to
discuss the Company's financial results and outlook at 10:00 a.m. ET, Wednesday,
February 13, 2013.  The call will be open to the public.

Webcast Instructions: To gain access to the webcast, which will be "listen-
only," go to the Events page in the Investor Relations area of the Company's
website, www.pzena.com.

Teleconference Instructions: To gain access to the conference call via
telephone, U.S./Canada callers should dial 866-700-6067; international callers
should dial 617-213-8834.  The conference ID number is 70941776.

Replay: The conference call will be available for replay through February
28, 2013, on the web using the information given above.

About Pzena Investment Management

Pzena Investment Management, LLC, the firm's operating company, is a value-
oriented investment management firm.  Founded in 1995, Pzena Investment
Management has built a diverse, global client base.  More firm and stock
information is posted at www.pzena.com.

Forward-Looking Statements

This press release may contain, in addition to historical information, forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on the Company's
current assumptions, expectations and projections about future events. Words
like "believe," "anticipate," "intend," "estimate,"
"expect," "project," and
similar expressions are used to identify forward-looking statements, although
not all forward-looking statements contain these words. These forward-looking
statements are necessarily estimates reflecting the best judgment of the
Company's management and involve a number of risks, uncertainties and
assumptions that could cause actual results to differ materially from those
expressed or implied by the forward-looking statements.

Among the factors that could cause actual results to differ from those expressed
or implied by a forward-looking statement are those described in the sections
entitled "Risk Factors" and "Management's Discussion and Analysis of
Financial
Condition and Results of Operations" in the Company's Annual Report on Form 10-
K, as filed with the SEC on March 14, 2012 and in the Company's Quarterly
Reports on Form 10-Q as filed with the SEC. In light of these risks,
uncertainties, assumptions, and factors, actual results could differ materially
from those expressed or implied in the forward-looking statements.

You are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date stated, or if no date is stated, as
of the date of this release.

The Company is not under any obligation and does not intend to make publicly
available any update or other revisions to any forward-looking statements to
reflect circumstances existing after the date of this release or to reflect the
occurrence of future events even if experience or future events make it clear
that any expected results expressed or implied by those forward-looking
statements will not be realized.

Contact:  Gary Bachman, 212-355-1600 or bachman@pzena.com


 PZENA INVESTMENT MANAGEMENT, INC.





 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 (in thousands)



         As of
-----------------------------------------------------------------
        December 31,    December 31,

         2012     2011
-------------------------------- ------------------------------
         (unaudited)

 ASSETS

   Cash and Cash  $                      32,645  $ 
                    35,083
Equivalents

   Restricted                         1,030  
                      1,030
Cash

   Due from                             22  
                         457
Broker

   Advisory Fees                       14,626  
                    14,717
Receivable

   Investments,                         5,170  
                      4,919
at Fair Value

   Prepaid                            719  
                         808
Expenses and
Other Assets

   Deferred Tax
Asset, Net of
Valuation
Allowance

     of $59,917                         9,688  
                      8,835
and $61,050,
respectively

   Property and
Equipment, Net

     of
Accumulated
Depreciation
of

     $2,695 and                             779  
                          829
$2,516,
respectively
-------------------------------- ------------------------------
          TOTAL  $                       64,679  $ 
                     66,678
ASSETS
-------------------------------- ------------------------------


 LIABILITIES AND
EQUITY

   Liabilities:

     Accounts  $                         4,305  $ 
                       6,062
Payable and
Accrued
Expenses

     Due to                               23
Broker  -

     Liability to                          9,656  
                     11,218
Selling and
Converting
Shareholders

     Lease                          1,203  
                       1,795
Liability

     Deferred                          1,327  
                       1,173
Compensation
Liability

     Other                             199  
                          206
Liabilities
-------------------------------- ------------------------------
          TOTAL                        16,713  
                     20,454
LIABILITIES



   Equity:

     Total Pzena                        14,569  
                     13,937
Investment
Management,
Inc.'s
Equity

     Non-                        33,397  
                     32,287
Controlling
Interests
-------------------------------- ------------------------------
          TOTAL                        47,966  
                     46,224
EQUITY
-------------------------------- ------------------------------
          TOTAL  $                       64,679  $ 
                     66,678
LIABILITIES
AND EQUITY
-------------------------------- ------------------------------


 PZENA INVESTMENT MANAGEMENT, INC.



 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

 (in thousands, except share and per-share amounts)





        Three Months Ended  
Twelve Months Ended

        December 31,   
December 31,

         2012     2011   
 2012     2011



 REVENUE   $             19,312  $             18,936
 $             76,280  $             83,045



 EXPENSES

 Compensation and                7,881              10,190
             31,755              34,565
Benefits Expense

 General and                1,963  
             4,654                7,346  
           10,626
Administrative
Expense

   TOTAL                9,844              14,844
             39,101              45,191
OPERATING
EXPENSES

 Operating                9,468  
             4,092              37,179  
           37,854
Income



 Other                   208  
             1,538                  (863)  
           (1,466)
Income/(Expense)



 Income Before                9,676  
             5,630              36,316  
           36,388
Taxes



 Income Tax                   958  
             1,578                1,911  
             3,145
Expense

 Consolidated Net                8,718  
             4,052              34,405  
           33,243
Income



 Less: Net Income              7,762                3,683
             30,565              29,861
Attributable to Non-
Controlling
Interests



 Net Income
Attributable to
Pzena

     Investment  $                  956  $ 
                369  $               3,840  $ 
             3,382
Management,
Inc.



 Earnings per Share - Basic and Diluted
Attributable to

 Pzena Investment Management, Inc. Common Stockholders:



 Net Income for  $                  956  $ 
                369  $               3,840  $ 
             3,382
Basic Earnings
per Share

 Basic Earnings  $                 0.09  $ 
               0.03  $                 0.36  $ 
               0.34
per Share

 Basic Weighted      11,224,339        10,575,089       
10,787,540          9,972,978
Average Shares
Outstanding



 Net Income for  $               5,226  $ 
                369  $             20,821  $ 
           20,631
Diluted Earnings
per Share

 Diluted Earnings  $                 0.08  $ 
               0.03  $                 0.32  $ 
               0.32
per Share

 Diluted Weighted      65,529,624        10,575,089       
65,491,273        65,095,797
Average Shares
Outstanding


 PZENA INVESTMENT MANAGEMENT, INC.



 UNAUDITED NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

 (in thousands, except share and per-share amounts)





        Non-GAAP Basis  
Non-GAAP Basis

        Three Months Ended  
Twelve Months Ended

        December 31,   
December 31,

         2012     2011   
 2012     2011



 REVENUE   $              19,312  $ 
            18,936  $              76,280  $ 
            83,045



 EXPENSES

 Compensation                 7,881  
              8,007               31,755  
            32,382
and Benefits
Expense

 General and                1,963  
              2,039                 7,346  
              8,011
Administrative
Expense

   TOTAL                 9,844  
            10,046               39,101  
            40,393
OPERATING
EXPENSES

 Operating                 9,468  
              8,890               37,179  
            42,652
Income



 Other Income,                   222  
                476                   930  
                442
Net of Outside
Interests



 Income Before               9,690  
              9,366               38,109  
            43,094
Taxes and
Operating Company
Allocation



 Unincorporated                 642  
                560                2,420  
             2,622
Business Tax
Expense

 Allocable                 9,048  
              8,806               35,689  
            40,472
Income



 Operating                7,471                7,364
             29,711              34,205
Company
Allocation

 Income Before               1,577  
              1,442                 5,978  
              6,267
Corporate Income
Taxes



 Corporate                   686  
                588                2,559  
             2,656
Income Tax
Expense

 Non-GAAP Net  $                   891  $ 
                 854  $                3,419  $ 
              3,611
Income

 Effect of                       -  
               (443)                       -  
               (443)
One-time
Adjustments

 Tax Receivable                    65  
                  (42)                    421  
                 214
Agreement Income,
Net of Taxes

 GAAP Net  $                   956  $ 
                 369  $                3,840  $ 
              3,382
Income



 Earnings Per Share - Basic and Diluted
Attributable to

 Pzena Investment Management, Inc. Common Stockholders:



   Net Income  $                   891  $ 
                 854  $                3,419  $ 
              3,611
for Basic
Earnings per
Share

   Basic  $                  0.08  $ 
                0.08  $                  0.32  $ 
                0.36
Earnings per
Share

   Basic Weighted       11,224,339         10,575,089  
      10,787,540           9,972,978
Average Shares
Outstanding



   Net Income  $                5,161  $ 
              5,063  $              20,399  $ 
            23,156
for Diluted
Earnings per
Share

   Diluted  $                  0.08  $ 
                0.08


Press Information:




Contact Person:


Disclaimer: © 2014 Thomson Reuters. The press releases or report contained herein is protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Thomson Reuters's, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.
Latest News
Read the Latest News
www.newsenvoy.com

 


Terms & Conditions | Privacy | About us | Contact PR-inside.com