Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MEDLEY MANAGEMENT INC. | v417809_8k.htm |
Exhibit 99.1
MEDLEY MANAGEMENT INC. REPORTS
SECOND QUARTER 2015 RESULTS AND DECLARES $0.20 PER SHARE DIVIDEND
NEW YORK, August 12, 2015 (GLOBE NEWSWIRE) — Medley Management Inc. (NYSE: MDLY) today reported its financial results for the three months ended June 30, 2015.
Highlights
| · | Total assets under management were $4.0 billion |
| · | Fee earning assets under management were $3.4 billion |
| · | Core Net Income Per Share was $0.22 for Q2 2015 |
| · | U.S. GAAP net income attributable to Medley Management Inc. was $0.14 per share for Q2 2015 |
| · | Declared $0.20 per share dividend for Q2 2015 payable on September 4, 2015 |
| · | Approved a $5 million share repurchase program |
“We are pleased with our second quarter performance,” said Seth Taube, Co-Chief Executive Officer of Medley Management Inc. “The underlying trends that drive our core businesses remain favorable, and we remain well positioned to capitalize on the significant opportunity that exists in direct lending to the middle market.”
Standalone Results of Operations for the Three Months Ended June 30, 2015
Management fees increased by 40%, or $6.0 million, to $20.9 million for the three months ended June 30, 2015 as compared to $14.9 million for the same period in 2014. This increase was offset by a decrease in performance fee revenue and other income and fees to $(0.4) million for the three months ended June 30, 2015 compared to $10.4 million for the same period in 2014. Due primarily to the decline in performance fee revenue, total revenues decreased by 19%, or $4.8 million, to $20.5 million for the three months ended June 30, 2015 compared to $25.3 million for the same period in 2014.
Total expenses decreased by 19%, or $2.4 million, to $10.0 million for the three months ended June 30, 2015 compared to $12.3 million for the same period in 2014. The decrease was due primarily to reversals in performance fee compensation.
Total other expense, net increased by $0.9 million to $1.9 million for the three months ended June 30, 2015 compared to $0.9 million for the same period in 2014. The increase was due primarily to a $1.4 million increase in interest expense, partially offset by a $0.4 million decrease in other expenses.
Pre-Tax Core Net Income increased by $0.1 million, to $11.6 million for the three months ended June 30, 2015 compared to the same period in 2014. Core Net Income Per Share was $0.22 per share for the three months ended June 30, 2015, compared to $0.22 for the same period in 2014.
Core EBITDA increased by $1.5 million, to $13.9 million for the three months ended June 30, 2015 compared to $12.4 million for the same period in 2014.
Standalone Results of Operations for the Six Months Ended June 30, 2015
Management fees increased by 29%, or $8.5 million, to $38.4 million for the six months ended June 30, 2015 compared to $29.9 million for the same period in 2014. This increase was offset by a decrease in performance fee revenue and other income and fees to $7.6 million for the six months ended June 30, 2015 compared to $12.5 million for the same period in 2014. Total revenues increased by 9%, or $3.6 million, to $46.0 million for the six months ended June 30, 2015 compared to $42.4 million for the same period in 2014.
Total expenses decreased to $21.8 million for the six months ended June 30, 2015 compared to $21.9 million for the same period in 2014. The variance was due primarily to a $4.3 million increase in compensation and benefits offset by a $4.1 million decrease in performance fee compensation and a $0.2 million decrease in general, administrative and other expenses.
Total other expense, net increased by $1.5 million to $4.0 million for the six months ended June 30, 2015 compared to $2.5 million for the same period in 2014. The increase was due primarily to a $2.8 million increase in interest expense, partially offset by a $1.1 million decrease in other expenses.
Pre-Tax Core Net Income increased by 41%, or $7.3 million, to $24.9 million for the six months ended June 30, 2015 compared to $17.6 million for the same period in 2014. Core Net Income Per Share increased by 42% to $0.47 per share for the six months ended June 30, 2015, compared to $0.33 per share for the same period in 2014.
Core EBITDA increased by $10.1 million to $29.3 million for the six months ended June 30, 2015 compared to $19.2 million for the same period in 2014.
Note: The financial results for the three and six months ended June 30, 2014 reflect those of our operating subsidiaries, Medley LLC and Medley GP Holdings LLC and their consolidated subsidiaries prior to our initial public offering (“IPO”) and the related reorganization.
Investor Relations:
Sam Anderson
212.759.0777
Media Contact:
Liz Bruce
Fitzroy Communications
212.498.9197
Key Performance Indicators:
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (Amounts in thousands, except AUM, share and per share data) | ||||||||||||||||
| Consolidated Financial Data: | ||||||||||||||||
| Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | $ | 8,027 | $ | 10,181 | $ | 17,104 | $ | 15,969 | ||||||||
| Standalone Data: | ||||||||||||||||
| Pre-Tax Core Net Income (1) | $ | 11,628 | $ | 11,555 | $ | 24,894 | $ | 17,628 | ||||||||
| Core Net Income (1) | 10,409 | 11,302 | 22,176 | 17,145 | ||||||||||||
| Core EBITDA (2) | 13,858 | 12,380 | 29,320 | 19,178 | ||||||||||||
| Core Net Income Per Share (3) | $ | 0.22 | $ | 0.22 | $ | 0.47 | $ | 0.33 | ||||||||
| Core Net Income Margin (4) | 32.6 | % | 26.5 | % | 31.1 | % | 23.7 | % | ||||||||
| Pro-Forma Weighted Average Shares Outstanding (5) | 30,437,467 | 30,484,722 | 30,456,596 | 30,484,722 | ||||||||||||
| Other Data (at period end, in millions): | ||||||||||||||||
| AUM | $ | 4,017 | $ | 3,318 | $ | 4,017 | $ | 3,318 | ||||||||
| Fee Earning AUM | 3,350 | 2,451 | 3,350 | 2,451 | ||||||||||||
| (1) | Pre-Tax Core Net Income is calculated as Core Net Income before income taxes. Core Net Income reflects standalone net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC adjusted to exclude reimbursable expenses associated with the launch of funds, certain one-time severance costs and stock-based compensation associated with restricted stock units that were granted in connection with our IPO. In addition, for the three and six months ended June 30, 2014, Core Net Income includes the pro-forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense, that, prior to our reorganization and IPO, were recorded as distributions from members’ capital. Please refer to the reconciliation of Core Net Income to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC in Exhibit B for additional details. |
| (2) | Core EBITDA is calculated as Core Net Income before interest expense, income taxes and depreciation. Please refer to the reconciliation of Core EBITDA to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC in Exhibit B for additional details. |
| (3) | Core Net Income Per Share is calculated as Core Net Income, adjusted for the income tax effect of assuming that all of our pre-tax earnings are subject to federal, state and local corporate income taxes, divided by Pro-Forma Weighted Average Shares Outstanding (as defined below). We assumed an effective corporate tax rate of 43.0% for all periods presented. Please refer to the calculation of Core Net Income Per Share in Exhibit B and C for additional details. |
| (4) | Core Net Income Margin equals Core Net Income Per Share divided by total standalone revenue per share for the respective periods presented. |
| (5) | The calculation of Pro-Forma Weighted Average Shares Outstanding assumes the conversion by the pre-IPO holders of 23,333,333 Medley LLC units for 23,333,333 shares of Class A common stock at the beginning of each period presented and, at the beginning of each period in 2014, the issuance of 6,000,000 shares of Class A common stock in connection with our IPO and the grant of 1,151,389 restricted stock units in connection with our IPO, adjusted for actual forfeitures and additional grants during the period. |
Fee Earning AUM
The table below presents the quarter to date roll forward of our total fee earning AUM:
| % of AUM | ||||||||||||||||||||
| Permanent | Long-dated | Permanent | Long-dated | |||||||||||||||||
| Capital | Private Funds | Capital | Private Funds | |||||||||||||||||
| Vehicles | and SMAs | Total | Vehicles | and SMAs | ||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Beginning balance, March 31, 2015 | $ | 2,123 | $ | 1,042 | $ | 3,165 | 67 | % | 33 | % | ||||||||||
| Commitments | 127 | 102 | 229 | |||||||||||||||||
| Capital Reduction | (2 | ) | - | (2 | ) | |||||||||||||||
| Distributions | (42 | ) | (27 | ) | (69 | ) | ||||||||||||||
| Change in fund value | 35 | (8 | ) | 27 | ||||||||||||||||
| Ending balance, June 30, 2015 | $ | 2,241 | $ | 1,109 | $ | 3,350 | 67 | % | 33 | % | ||||||||||
Total fee earning AUM increased by 6%, or $185 million, to $3.4 billion at June 30, 2015 compared to March 31, 2015. The permanent capital vehicles’ share of fee earning AUM remained consistent at 67% at June 30, 2015 and March 31, 2015.
The table below presents the year-to-date roll forward of our total fee earning AUM:
| % of AUM | ||||||||||||||||||||
| Permanent | Long-dated | Permanent | Long-dated | |||||||||||||||||
| Capital | Private Funds | Capital | Private Funds | |||||||||||||||||
| Vehicles | and SMAs | Total | Vehicles | and SMAs | ||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Beginning balance, December 31, 2014 | $ | 2,047 | $ | 1,011 | $ | 3,058 | 67 | % | 33 | % | ||||||||||
| Commitments | 217 | 188 | 405 | |||||||||||||||||
| Capital Reduction | (10 | ) | (17 | ) | (27 | ) | ||||||||||||||
| Distributions | (72 | ) | (68 | ) | (140 | ) | ||||||||||||||
| Change in fund value | 59 | (5 | ) | 54 | ||||||||||||||||
| Ending balance, June 30, 2015 | $ | 2,241 | $ | 1,109 | $ | 3,350 | 67 | % | 33 | % | ||||||||||
Total fee earning AUM increased by 10%, or $291 million, to $3.4 billion at June 30, 2015 compared to December 31, 2014. The permanent capital vehicles’ share of fee earning AUM remained consistent at 67% at June 30, 2015 and December 31, 2014.
Dividend Declaration
On August 10, 2015, the Company’s Board of Directors declared a quarterly dividend of $0.20 per share of Class A common stock, for the second quarter 2015, payable on September 4, 2015, to shareholders of record of the Company’s Class A common stock as of the close of business on August 26, 2015.
Share Repurchase Program
The Company’s Board of Directors has authorized the repurchase of up to $5 million of the Company’s Class A common stock. Medley LLC will repurchase membership units, on a one for one basis, for each share of Class A common stock repurchased by the Company. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. This program may be suspended or discontinued at any time and will expire in one year.
Conference Call and Webcast Information
We will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Thursday August 13, 2015 to discuss our second quarter 2015 financial results.
All interested parties may participate in the conference call by dialing (800) 706-7749 approximately 5-10 minutes prior to the call. International callers should dial (617) 614-3474. Participants should reference Medley Management Inc. and the participant passcode of 91725138 when prompted. Following the call you may access a replay of the event via audio webcast. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through the Company's website, http://www.mdly.com. To listen to the live call, please go to the Company's website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the Company's website.
About Medley
Medley is an asset management firm offering yield solutions to retail and institutional investors. Medley's national direct origination franchise, with over 80 people, is a premier provider of capital to the middle market in the U.S. As of June 30, 2015, Medley had in excess of $4.0 billion of assets under management in two business development companies, Medley Capital Corporation (NYSE:MCC), the Sierra Income Corporation, as well as private investment vehicles. Over the past 13 years, we have invested in excess of $5.7 billion to help over 300 companies grow across 35 industries in North America. For additional information, please visit Medley Management Inc. at www.mdly.com.
Forward-Looking Statements
Statements included herein may contain "forward-looking statements". Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission, including those described in the section “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Except as required by law, the Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements made herein speak only as of the date of this press release.
This press release does not constitute an offer for any Medley fund.
Available Information
Medley Management Inc.’s filings with the Securities and Exchange Commission, press releases, earnings releases and other financial information are available at www.mdly.com.
Exhibit A. Standalone Statements of Operations of Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Revenues | ||||||||||||||||
| Management fees | $ | 20,923 | $ | 14,909 | $ | 38,443 | $ | 29,900 | ||||||||
| Performance fees | (2,368 | ) | 8,000 | 3,968 | 8,076 | |||||||||||
| Other revenues and fees | 1,981 | 2,383 | 3,605 | 4,396 | ||||||||||||
| Total revenues | 20,536 | 25,292 | 46,016 | 42,372 | ||||||||||||
| Expenses | ||||||||||||||||
| Compensation and benefits | 6,397 | 5,574 | 13,618 | 9,333 | ||||||||||||
| Performance fee compensation | (1,030 | ) | 1,640 | (918 | ) | 3,158 | ||||||||||
| General, administrative and other expenses | 4,623 | 5,134 | 9,130 | 9,363 | ||||||||||||
| Total expenses | 9,990 | 12,348 | 21,830 | 21,854 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Dividend income | 221 | 221 | 443 | 443 | ||||||||||||
| Interest expense | (2,109 | ) | (731 | ) | (4,194 | ) | (1,364 | ) | ||||||||
| Other expenses, net | 13 | (428 | ) | (249 | ) | (1,620 | ) | |||||||||
| Total other expense, net | (1,875 | ) | (938 | ) | (4,000 | ) | (2,541 | ) | ||||||||
| Income before income taxes | $ | 8,671 | $ | 12,006 | $ | 20,186 | $ | 17,977 | ||||||||
| Provision for income taxes | 918 | 218 | 2,066 | 448 | ||||||||||||
| Net income | 7,753 | 11,788 | 18,120 | 17,529 | ||||||||||||
| Net income attributable to non-controlling interests in consolidated subsidiaries | (274 | ) | 1,607 | 1,016 | 1,560 | |||||||||||
| Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | $ | 8,027 | $ | 10,181 | $ | 17,104 | $ | 15,969 | ||||||||
Exhibit B. Reconciliation of Standalone Core Net Income and Core EBITDA to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | $ | 8,027 | $ | 10,181 | $ | 17,104 | $ | 15,969 | ||||||||
| Reimbursable fund startup expenses (1) | 1,771 | 2,121 | 3,694 | 3,396 | ||||||||||||
| Severance expense (1) | - | (11 | ) | 121 | (5 | ) | ||||||||||
| IPO date award stock-based compensation (1) | 611 | - | 1,257 | - | ||||||||||||
| Adjustment for pre-IPO guaranteed payments to members (1)(2) | - | (989 | ) | - | (2,215 | ) | ||||||||||
| Core Net Income | $ | 10,409 | $ | 11,302 | $ | 22,176 | $ | 17,145 | ||||||||
| Interest expense | 2,109 | 731 | 4,194 | 1,364 | ||||||||||||
| Income taxes | 1,219 | 253 | 2,718 | 483 | ||||||||||||
| Depreciation and amortization | 121 | 94 | 232 | 186 | ||||||||||||
| Core EBITDA | $ | 13,858 | $ | 12,380 | $ | 29,320 | $ | 19,178 | ||||||||
| (1) | Amounts are presented net of income taxes. |
| (2) | Represents a pro-forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense, that, prior to our reorganization and IPO, were treated as distributions from members’ capital. |
Exhibit C. Calculation of Core Net Income Per Share (Standalone)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (Amounts in thousands, except share and per share amounts) | ||||||||||||||||
| Numerator | ||||||||||||||||
| Core Net Income | $ | 10,409 | $ | 11,302 | $ | 22,176 | $ | 17,145 | ||||||||
| Add: Income taxes | 1,219 | 253 | 2,718 | 483 | ||||||||||||
| Pre-Tax Core Net Income | 11,628 | 11,555 | 24,894 | 17,628 | ||||||||||||
| Denominator | ||||||||||||||||
| Class A shares issued in IPO | 6,000,000 | 6,000,000 | 6,000,000 | 6,000,000 | ||||||||||||
| Conversion of LLC Units to Class A shares | 23,333,333 | 23,333,333 | 23,333,333 | 23,333,333 | ||||||||||||
| Restricted stock units (1) | 1,104,134 | 1,151,389 | 1,123,263 | 1,151,389 | ||||||||||||
| Pro-Forma Weighted Average Shares Outstanding (1) | 30,437,467 | 30,484,722 | 30,456,596 | 30,484,722 | ||||||||||||
| Pre-Tax Core Net Income Per Share | $ | 0.38 | $ | 0.38 | $ | 0.82 | $ | 0.58 | ||||||||
| Less: corporate income taxes per share (2) | (0.16 | ) | (0.16 | ) | (0.35 | ) | (0.25 | ) | ||||||||
| Core Net Income Per Share | $ | 0.22 | $ | 0.22 | $ | 0.47 | $ | 0.33 | ||||||||
| (1) | The calculation of Pro-Forma Weighted Average Shares Outstanding assumes the conversion by the pre-IPO holders of 23,333,333 Medley LLC units for 23,333,333 shares of Class A common stock at the beginning of each period presented and, at the beginning of each period in 2014, the issuance of 6,000,000 shares of Class A common stock in connection with our IPO and the grant of 1,151,389 restricted stock units in connection with our IPO, adjusted for actual forfeitures and additional grants during the period. |
| (2) | Represents a per share adjustment for income taxes assuming that all of our standalone pre-tax earnings were subject to federal, state and local income taxes. We assumed an effective corporate tax rate of 43.0% for all periods presented. |
Exhibit D. Condensed Consolidated Statements of Operations of Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (Amounts in thousands, except share and per share data) | ||||||||||||||||
| Revenues | ||||||||||||||||
| Management fees | $ | 20,216 | $ | 13,225 | $ | 36,410 | $ | 26,453 | ||||||||
| Performance fees | 1,656 | 1,617 | 2,868 | 2,372 | ||||||||||||
| Other revenues and fees | 1,981 | 2,383 | 3,605 | 4,396 | ||||||||||||
| Total revenues | 23,853 | 17,225 | 42,883 | 33,221 | ||||||||||||
| Expenses | ||||||||||||||||
| Compensation and benefits | 6,397 | 5,574 | 13,618 | 9,333 | ||||||||||||
| Performance fee compensation | (1,030 | ) | 1,640 | (918 | ) | 3,158 | ||||||||||
| Consolidated Funds expenses | 634 | 513 | 1,427 | 833 | ||||||||||||
| General, administrative and other expenses | 4,623 | 5,134 | 9,130 | 9,363 | ||||||||||||
| Total expenses | 10,624 | 12,861 | 23,257 | 22,687 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Dividend income | 221 | 221 | 443 | 443 | ||||||||||||
| Interest expense | (2,109 | ) | (731 | ) | (4,194 | ) | (1,364 | ) | ||||||||
| Other expenses, net | (69 | ) | (387 | ) | (452 | ) | (1,318 | ) | ||||||||
| Interest and other income of Consolidated Funds | 21,169 | 20,175 | 39,896 | 33,596 | ||||||||||||
| Interest expense of Consolidated Funds | (3,810 | ) | (1,750 | ) | (7,614 | ) | (3,062 | ) | ||||||||
| Net realized gain (loss) on investments of Consolidated Funds | - | (69 | ) | 952 | 1,288 | |||||||||||
| Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds | (6,417 | ) | 642 | (2,395 | ) | (7,171 | ) | |||||||||
| Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | (82 | ) | (873 | ) | (498 | ) | (1,197 | ) | ||||||||
| Total other income, net | 8,903 | 17,228 | 26,138 | 21,215 | ||||||||||||
| Income before income taxes | 22,132 | 21,592 | 45,764 | 31,749 | ||||||||||||
| Provision for income taxes | 1,251 | 747 | 2,941 | 1,251 | ||||||||||||
| Net income | 20,881 | 20,845 | 42,823 | 30,498 | ||||||||||||
| Net income attributable to non-controlling interests in Consolidated Funds | 13,128 | 9,057 | 24,703 | 12,969 | ||||||||||||
| Net income (loss) attributable to non-controlling interests in consolidated subsidiaries | (274 | ) | 1,607 | 1,016 | 1,560 | |||||||||||
| Net income attributable to non-controlling interests in Medley LLC | 6,988 | $ | 10,181 | 14,791 | $ | 15,969 | ||||||||||
| Net income attributable to Medley Management Inc. | $ | 1,039 | $ | 2,313 | ||||||||||||
| Net income per Class A common stock: | ||||||||||||||||
| Basic | $ | 0.14 | $ | 0.33 | ||||||||||||
| Diluted | $ | 0.14 | $ | 0.33 | ||||||||||||
| Weighted average shares - Basic and Diluted | 6,000,000 | 6,000,000 | ||||||||||||||
Exhibit E. Condensed Consolidated Balance Sheets of Medley Management Inc.
| As of | ||||||||
| June 30, | As of | |||||||
| 2015 | December 31, | |||||||
| (unaudited) | 2014 | |||||||
| (Amounts in thousands) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 66,376 | $ | 87,206 | ||||
| Investments, at fair value | 11,519 | 9,901 | ||||||
| Management fees receivable | 16,451 | 15,173 | ||||||
| Performance fees receivable | 8,442 | 5,573 | ||||||
| Other assets | 9,680 | 9,230 | ||||||
| Assets of Consolidated Funds: | ||||||||
| Cash and cash equivalents | 74,401 | 38,111 | ||||||
| Investments, at fair value | 790,529 | 734,870 | ||||||
| Interest and dividends receivable | 7,561 | 6,654 | ||||||
| Other assets | 3,178 | 3,681 | ||||||
| Total assets | $ | 988,137 | $ | 910,399 | ||||
| Liabilities and Equity | ||||||||
| Loans payable | $ | 102,813 | $ | 103,057 | ||||
| Accounts payable, accrued expenses and other liabilities | 21,344 | 27,583 | ||||||
| Performance fee compensation payable | 9,878 | 11,807 | ||||||
| Liabilities of Consolidated Funds: | ||||||||
| Accounts payable, accrued expenses and other liabilities | 1,890 | 5,767 | ||||||
| Secured borrowings | 137,366 | 141,135 | ||||||
| Total liabilities | 273,291 | 289,349 | ||||||
| Equity | ||||||||
| Class A Common Stock | 60 | 60 | ||||||
| Class B Common Stock | - | - | ||||||
| Capital deficit | (765 | ) | (2,384 | ) | ||||
| Retained earnings | 1,219 | 272 | ||||||
| Total stockholders' equity (deficit), Medley Management Inc. | 514 | (2,052 | ) | |||||
| Non-controlling interests in Consolidated Funds | 722,553 | 625,548 | ||||||
| Non-controlling interests in consolidated subsidiaries | 2,217 | 1,526 | ||||||
| Non-controlling interests in Medley LLC | (10,438 | ) | (3,972 | ) | ||||
| Total equity | 714,846 | 621,050 | ||||||
| Total liabilities and equity | $ | 988,137 | $ | 910,399 | ||||
Exhibit F. Condensed Consolidating Statements of Operations and Consolidated Balance Sheets of Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
| For the Three Months Ended June 30, 2015 | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Consolidated | ||||||||||||||||
| Standalone | Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Management fees | $ | 20,923 | $ | - | $ | (707 | ) | $ | 20,216 | |||||||
| Performance fees | (2,368 | ) | - | 4,024 | 1,656 | |||||||||||
| Other revenues and fees | 1,981 | - | - | 1,981 | ||||||||||||
| Total revenues | 20,536 | - | 3,317 | 23,853 | ||||||||||||
| Expenses: | ||||||||||||||||
| Compensation and benefits | 6,397 | - | - | 6,397 | ||||||||||||
| Performance fee compensation | (1,030 | ) | - | - | (1,030 | ) | ||||||||||
| Consolidated Funds expenses | - | 1,341 | (707 | ) | 634 | |||||||||||
| General, administrative and other expenses | 4,623 | - | - | 4,623 | ||||||||||||
| Total expenses | 9,990 | 1,341 | (707 | ) | 10,624 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Dividend income | 221 | - | - | 221 | ||||||||||||
| Interest expense | (2,109 | ) | - | - | (2,109 | ) | ||||||||||
| Other income (expenses), net | 13 | - | (82 | ) | (69 | ) | ||||||||||
| Interest and other income of Consolidated Funds | - | 21,169 | - | 21,169 | ||||||||||||
| Interest expense of Consolidated Funds | - | (3,810 | ) | - | (3,810 | ) | ||||||||||
| Net realized gain (loss) on investments of Consolidated Funds | - | - | - | - | ||||||||||||
| Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds | - | (6,417 | ) | - | (6,417 | ) | ||||||||||
| Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | - | (82 | ) | - | (82 | ) | ||||||||||
| Total other income (expense), net | (1,875 | ) | 10,860 | (82 | ) | 8,903 | ||||||||||
| Income before income taxes | 8,671 | 9,519 | 3,942 | 22,132 | ||||||||||||
| Provision for income taxes | 918 | 333 | - | 1,251 | ||||||||||||
| Net income | 7,753 | 9,186 | 3,942 | 20,881 | ||||||||||||
| Net income attributable to non-controlling interests in Consolidated Funds | - | - | 13,128 | 13,128 | ||||||||||||
| Net income attributable to non-controlling interests in consolidated subsidiaries | (274 | ) | - | - | (274 | ) | ||||||||||
| Net income attributable to non-controlling interests in Medley LLC | 6,988 | - | - | 6,988 | ||||||||||||
| Net income attributable to Medley Management Inc. | $ | 1,039 | $ | 9,186 | $ | (9,186 | ) | $ | 1,039 | |||||||
| For the Six Months Ended June 30, 2015 | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Consolidated | ||||||||||||||||
| Standalone | Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Management fees | $ | 38,443 | $ | - | $ | (2,033 | ) | $ | 36,410 | |||||||
| Performance fees | 3,968 | - | (1,100 | ) | 2,868 | |||||||||||
| Other revenues and fees | 3,605 | - | - | 3,605 | ||||||||||||
| Total revenues | 46,016 | - | (3,133 | ) | 42,883 | |||||||||||
| Expenses: | ||||||||||||||||
| Compensation and benefits | 13,618 | - | - | 13,618 | ||||||||||||
| Performance fee compensation | (918 | ) | - | - | (918 | ) | ||||||||||
| Consolidated Funds expenses | - | 3,460 | (2,033 | ) | 1,427 | |||||||||||
| General, administrative and other expenses | 9,130 | - | - | 9,130 | ||||||||||||
| Total expenses | 21,830 | 3,460 | (2,033 | ) | 23,257 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Dividend income | 443 | - | - | 443 | ||||||||||||
| Interest expense | (4,194 | ) | - | - | (4,194 | ) | ||||||||||
| Other income (expenses), net | (249 | ) | - | (203 | ) | (452 | ) | |||||||||
| Interest and other income of Consolidated Funds | - | 39,896 | - | 39,896 | ||||||||||||
| Interest expense of Consolidated Funds | - | (7,614 | ) | - | (7,614 | ) | ||||||||||
| Net realized gain (loss) on investments of Consolidated Funds | - | 952 | - | 952 | ||||||||||||
| Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds | - | (2,395 | ) | - | (2,395 | ) | ||||||||||
| Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | - | (498 | ) | - | (498 | ) | ||||||||||
| Total other income (expense), net | (4,000 | ) | 30,341 | (203 | ) | 26,138 | ||||||||||
| Income before income taxes | 20,186 | 26,881 | (1,303 | ) | 45,764 | |||||||||||
| Provision for income taxes | 2,066 | 875 | - | 2,941 | ||||||||||||
| Net income | 18,120 | 26,006 | (1,303 | ) | 42,823 | |||||||||||
| Net income attributable to non-controlling interests in Consolidated Funds | - | - | 24,703 | 24,703 | ||||||||||||
| Net income attributable to non-controlling interests in consolidated subsidiaries | 1,016 | - | - | 1,016 | ||||||||||||
| Net income attributable to non-controlling interests in Medley LLC | 14,791 | - | - | 14,791 | ||||||||||||
| Net income attributable to Medley Management Inc. | $ | 2,313 | $ | 26,006 | $ | (26,006 | ) | $ | 2,313 | |||||||
| For the Three Months Ended June 30, 2014 | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Consolidated | ||||||||||||||||
| Standalone | Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Management fees | $ | 14,909 | $ | - | $ | (1,684 | ) | $ | 13,225 | |||||||
| Performance fees | 8,000 | - | (6,383 | ) | 1,617 | |||||||||||
| Other revenues and fees | 2,383 | - | - | 2,383 | ||||||||||||
| Total revenues | 25,292 | - | (8,067 | ) | 17,225 | |||||||||||
| Expenses: | ||||||||||||||||
| Compensation and benefits | 5,574 | - | - | 5,574 | ||||||||||||
| Performance fee compensation | 1,640 | - | - | 1,640 | ||||||||||||
| Consolidated Funds expenses | - | 2,197 | (1,684 | ) | 513 | |||||||||||
| General, administrative and other expenses | 5,134 | - | - | 5,134 | ||||||||||||
| Total expenses | 12,348 | 2,197 | (1,684 | ) | 12,861 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Dividend income | 221 | - | - | 221 | ||||||||||||
| Interest expense | (731 | ) | - | - | (731 | ) | ||||||||||
| Other income (expenses), net | (428 | ) | - | 41 | (387 | ) | ||||||||||
| Interest and other income of Consolidated Funds | - | 20,175 | - | 20,175 | ||||||||||||
| Interest expense of Consolidated Funds | - | (1,750 | ) | - | (1,750 | ) | ||||||||||
| Net realized gain (loss) on investments of Consolidated Funds | - | (69 | ) | - | (69 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds | - | 642 | - | 642 | ||||||||||||
| Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | - | (873 | ) | - | (873 | ) | ||||||||||
| Total other income (expense), net | (938 | ) | 18,125 | 41 | 17,228 | |||||||||||
| Income before income taxes | 12,006 | 15,928 | (6,342 | ) | 21,592 | |||||||||||
| Provision for income taxes | 218 | 529 | - | 747 | ||||||||||||
| Net income | 11,788 | 15,399 | (6,342 | ) | 20,845 | |||||||||||
| Net income attributable to non-controlling interests in Consolidated Funds | - | - | 9,057 | 9,057 | ||||||||||||
| Net income attributable to non-controlling interests in consolidated subsidiaries | 1,607 | - | - | 1,607 | ||||||||||||
| Net income attributable to Medley LLC | $ | 10,181 | $ | 15,399 | $ | (15,399 | ) | $ | 10,181 | |||||||
| For the Six Months Ended June 30, 2014 | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Consolidated | ||||||||||||||||
| Standalone | Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Management fees | $ | 29,900 | $ | - | $ | (3,447 | ) | $ | 26,453 | |||||||
| Performance fees | 8,076 | - | (5,704 | ) | 2,372 | |||||||||||
| Other revenues and fees | 4,396 | - | - | 4,396 | ||||||||||||
| Total revenues | 42,372 | - | (9,151 | ) | 33,221 | |||||||||||
| Expenses: | ||||||||||||||||
| Compensation and benefits | 9,333 | - | - | 9,333 | ||||||||||||
| Performance fee compensation | 3,158 | - | - | 3,158 | ||||||||||||
| Consolidated Funds expenses | - | 4,280 | (3,447 | ) | 833 | |||||||||||
| General, administrative and other expenses | 9,363 | - | - | 9,363 | ||||||||||||
| Total expenses | 21,854 | 4,280 | (3,447 | ) | 22,687 | |||||||||||
| Other income (expense): | ||||||||||||||||
| Dividend income | 443 | - | - | 443 | ||||||||||||
| Interest expense | (1,364 | ) | - | - | (1,364 | ) | ||||||||||
| Other income (expenses), net | (1,620 | ) | - | 302 | (1,318 | ) | ||||||||||
| Interest and other income of Consolidated Funds | - | 33,596 | - | 33,596 | ||||||||||||
| Interest expense of Consolidated Funds | - | (3,062 | ) | - | (3,062 | ) | ||||||||||
| Net realized gain (loss) on investments of Consolidated Funds | - | 1,288 | - | 1,288 | ||||||||||||
| Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds | - | (7,171 | ) | - | (7,171 | ) | ||||||||||
| Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | - | (1,197 | ) | - | (1,197 | ) | ||||||||||
| Total other income (expense), net | (2,541 | ) | 23,454 | 302 | 21,215 | |||||||||||
| Income before income taxes | 17,977 | 19,174 | (5,402 | ) | 31,749 | |||||||||||
| Provision for income taxes | 448 | 803 | - | 1,251 | ||||||||||||
| Net income | 17,529 | 18,371 | (5,402 | ) | 30,498 | |||||||||||
| Net income attributable to non-controlling interests in Consolidated Funds | - | - | 12,969 | 12,969 | ||||||||||||
| Net income attributable to non-controlling interests in consolidated subsidiaries | 1,560 | - | - | 1,560 | ||||||||||||
| Net income attributable to Medley LLC | $ | 15,969 | $ | 18,371 | $ | (18,371 | ) | $ | 15,969 | |||||||
| As of June 30, 2015 | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Consolidated | ||||||||||||||||
| Standalone | Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 66,376 | $ | - | $ | - | $ | 66,376 | ||||||||
| Investments, at fair value | 24,170 | - | (12,651 | ) | 11,519 | |||||||||||
| Management fees receivable | 16,451 | - | - | 16,451 | ||||||||||||
| Performance fees receivable | 8,442 | - | - | 8,442 | ||||||||||||
| Other assets | 10,889 | - | (1,209 | ) | 9,680 | |||||||||||
| Assets of Consolidated Funds: | ||||||||||||||||
| Cash and cash equivalents | - | 74,401 | - | 74,401 | ||||||||||||
| Investments, at fair value | - | 790,529 | - | 790,529 | ||||||||||||
| Interest and dividends receivable | - | 7,561 | - | 7,561 | ||||||||||||
| Other assets | - | 3,178 | - | 3,178 | ||||||||||||
| Total assets | $ | 126,328 | $ | 875,669 | $ | (13,860 | ) | $ | 988,137 | |||||||
| Liabilities and equity | ||||||||||||||||
| Loans payable | $ | 102,813 | $ | - | $ | - | $ | 102,813 | ||||||||
| Accounts payable, accrued expenses and other liabilities | 21,344 | - | - | 21,344 | ||||||||||||
| Performance fee compensation payable | 9,878 | - | - | 9,878 | ||||||||||||
| Liabilities of Consolidated Funds: | ||||||||||||||||
| Accounts payable, accrued expenses and other liabilities | - | 3,099 | (1,209 | ) | 1,890 | |||||||||||
| Secured borrowings | - | 137,366 | - | 137,366 | ||||||||||||
| Total liabilities | 134,035 | 140,465 | (1,209 | ) | 273,291 | |||||||||||
| Equity | ||||||||||||||||
| Class A Common Stock | 60 | - | - | 60 | ||||||||||||
| Class B Common Stock | - | - | - | - | ||||||||||||
| Capital deficit | (765 | ) | - | - | (765 | ) | ||||||||||
| Retained earnings | 1,219 | - | - | 1,219 | ||||||||||||
| Total stockholders' equity (deficit), Medley Management Inc. | 514 | - | - | 514 | ||||||||||||
| Non-controlling interests in Consolidated Funds | - | - | 722,553 | 722,553 | ||||||||||||
| Non-controlling interests in consolidated subsidiaries | 2,217 | - | - | 2,217 | ||||||||||||
| Non-controlling interests in Medley LLC | (10,438 | ) | - | - | (10,438 | ) | ||||||||||
| Members' equity of consolidated funds | - | 735,204 | (735,204 | ) | - | |||||||||||
| Total (deficit) equity | (7,707 | ) | 735,204 | (12,651 | ) | 714,846 | ||||||||||
| Total liabilities and equity | $ | 126,328 | $ | 875,669 | $ | (13,860 | ) | $ | 988,137 | |||||||
| As of December 31, 2014 | ||||||||||||||||
| Consolidated | ||||||||||||||||
| Standalone | Funds | Eliminations | Consolidated | |||||||||||||
| (Amounts in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 87,206 | $ | - | $ | - | $ | 87,206 | ||||||||
| Investments, at fair value | 22,143 | - | (12,242 | ) | 9,901 | |||||||||||
| Management fees receivable | 15,173 | - | - | 15,173 | ||||||||||||
| Performance fees receivable | 5,573 | - | - | 5,573 | ||||||||||||
| Other assets | 9,230 | - | - | 9,230 | ||||||||||||
| Assets of Consolidated Funds: | ||||||||||||||||
| Cash and cash equivalents | - | 38,111 | - | 38,111 | ||||||||||||
| Investments, at fair value | - | 734,870 | - | 734,870 | ||||||||||||
| Interest and dividends receivable | - | 6,654 | - | 6,654 | ||||||||||||
| Other assets | - | 5,057 | (1,376 | ) | 3,681 | |||||||||||
| Total assets | $ | 139,325 | $ | 784,692 | $ | (13,618 | ) | $ | 910,399 | |||||||
| Liabilities and equity | ||||||||||||||||
| Loans payable | $ | 103,057 | $ | - | $ | - | $ | 103,057 | ||||||||
| Accounts payable, accrued expenses and other liabilities | 28,959 | - | (1,376 | ) | 27,583 | |||||||||||
| Performance fee compensation payable | 11,807 | - | - | 11,807 | ||||||||||||
| Liabilities of Consolidated Funds: | ||||||||||||||||
| Accounts payable, accrued expenses and other liabilities | - | 5,767 | - | 5,767 | ||||||||||||
| Secured borrowings | - | 141,135 | - | 141,135 | ||||||||||||
| Total liabilities | 143,823 | 146,902 | (1,376 | ) | 289,349 | |||||||||||
| Equity | ||||||||||||||||
| Class A Common Stock | 60 | - | - | 60 | ||||||||||||
| Class B Common Stock | - | - | - | - | ||||||||||||
| Capital deficit | (2,384 | ) | - | - | (2,384 | ) | ||||||||||
| Retained earnings | 272 | - | - | 272 | ||||||||||||
| Total stockholders' equity (deficit), Medley Management Inc. | (2,052 | ) | - | - | (2,052 | ) | ||||||||||
| Non-controlling interests in Consolidated Funds | - | - | 625,548 | 625,548 | ||||||||||||
| Non-controlling interests in consolidated subsidiaries | 1,526 | - | - | 1,526 | ||||||||||||
| Non-controlling interests in Medley LLC | (3,972 | ) | - | - | (3,972 | ) | ||||||||||
| Members' equity of consolidated funds | - | 637,790 | (637,790 | ) | - | |||||||||||
| Total (deficit) equity | (4,498 | ) | 637,790 | (12,242 | ) | 621,050 | ||||||||||
| Total liabilities and equity | $ | 139,325 | $ | 784,692 | $ | (13,618 | ) | $ | 910,399 | |||||||