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Article Excerpt
NEW YORK -- Artio Global Investors Inc. (NYSE: ART) (together with its subsidiaries, "Artio Global" or the "Company") today reported its results for the third quarter ended September 30, 2009.
Third Quarter 2009 Financial Highlights
* Adjusted1 net income2 of $27.9 million, or $0.47 per diluted share; (GAAP loss of $412.4 million or ($9.81) per diluted share)
* Assets under management of $55.8 billion as of September 30, 2009
* Investment management fees of $83.5 million increased 20% over the second quarter of 2009
* Effective investment management fee rate3 of 64.5 basis points
* Adjusted operating margin of 50.2%
The Company's GAAP results include certain non-recurring items and expenses associated with the reorganization of the Company's ownership structure in connection with its initial public offering ("IPO"), which were disclosed in the Company's final prospectus dated September 23, 2009. These have been excluded from the adjusted results for all periods included herein in order to provide more meaningful comparisons.
For the third quarter of 2009, Artio Global reported adjusted net income of $27.9 million, or $0.47 per diluted share, an increase of 29% and 31%, respectively, from adjusted net income of $21.6 million, or $0.36 per diluted share, for the second quarter of 2009, and a decrease of 32% from adjusted net income of $41.3 million, or $0.69 per diluted share, for the third quarter of 2008.
On a GAAP basis, net income for the third quarter of 2009 was a loss of $412.4 million, or ($9.81) per diluted share, as compared with net income of $5.4 million, or $0.13 per diluted share, for the second quarter of 2009, and net income of $16.3 million, or $0.39 per diluted share, for the third quarter of 2008.
For the first nine months of 2009, Artio Global reported adjusted net income of $68.8 million, or $1.15 per diluted share, down 41% from adjusted net income of $117.1 million, or $1.95 per diluted share, for the first nine months of 2008.
On a GAAP basis, net income for the first nine months of 2009 was a loss of $404.0 million, or ($9.62) per diluted share, down from net income of $47.9 million, or $1.14 per diluted share, for the first nine months of 2008.
The tables below present a comparison of GAAP results and adjusted results, which exclude certain non-recurring items and expenses. See Exhibits 3 - 5 of this news release for a reconciliation of the Company's GAAP results to adjusted results.
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Business Highlights
* Artio Global successfully completed its IPO on September 29, 2009
* All three of the Company's eligible mutual funds5 were in the top quartile of Lipper6 performance rankings for the five year period ended September 30, 2009
* Seven of the Company's nine mutual funds7, representing over 99% of mutual fund assets, were above the median of Lipper6 performance rankings for the three year period ended September 30, 2009
* Five of the Company's nine mutual funds8, representing over 99% of mutual fund assets, were rated four or five stars by Morningstar6, as of September 30, 2009
* Net client cash inflows were $321 million for the third quarter of 2009
Management Commentary
"As an investment centric organization, our recent IPO marked an important milestone for the firm, further aligning the interests of our clients, employees and shareholders," said Richard Pell,...
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