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Section 1: 10-Q (10-Q)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended September 30, 2018

Or

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ______to______

Commission file number 001-33761

PZENA INVESTMENT MANAGEMENT, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

 

20-8999751

(State or Other Jurisdiction of

 

(I.R.S. Employer

Incorporation or Organization)

 

Identification No.)

 

320 Park Avenue

New York, New York 10022

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 355-1600

Not Applicable

(Former Address of Principal Executive Offices) (Zip Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes No

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of November 5, 2018, there were 17,323,691 outstanding shares of the registrant’s Class A common stock, par value $0.01 per share.

As of November 5, 2018, there were 51,979,177 outstanding shares of the registrant’s Class B common stock, par value $0.000001 per share.

 

 


Table of Contents

 

PZENA INVESTMENT MANAGEMENT, INC.

FORM 10-Q

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

PART I — FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

 

 

 

 

 

 

 

 

Consolidated Statements of Financial Condition of Pzena Investment Management, Inc.as of September 30, 2018 (unaudited) and December 31, 2017

 

1

 

 

 

 

 

 

 

Consolidated Statements of Operations (unaudited) of Pzena Investment Management, Inc. for the Three and Nine Months Ended September 30, 2018 and 2017

 

2

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income (unaudited) of Pzena Investment Management, Inc. for the Three and Nine Months Ended September 30, 2018 and 2017

 

3

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity (unaudited) of Pzena Investment Management, Inc. for the Nine Months Ended September 30, 2018 and 2017

 

4

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) of Pzena Investment Management, Inc. for the Three and Nine Months Ended September 30, 2018 and 2017

 

5

 

 

 

 

 

 

 

Notes to the Consolidated Financial Statements (unaudited)

 

6

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

24

 

 

 

 

 

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

39

 

 

 

 

 

 

 

PART II — OTHER INFORMATION

 

 

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

41

 

 

 

 

 

Item 6.

 

Exhibits

 

42

 

 

 

 

 

SIGNATURES

 

43

 

 

i


Table of Contents

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements.  Forward-looking statements provide our current expectations, or forecasts, of future events.  Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts.  Words or phrases such as “anticipate,” “believe,” “continue,” “ongoing,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on our views, plans, estimates, and expectations.  Potentially inaccurate assumptions could cause actual results to differ materially from those expected or implied by the forward-looking statements.  Our actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in Item 1A, “Risk Factors” in Part I of our Annual Report on Form 10-K for our fiscal year ended December 31, 2017.  Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date they are made.  We undertake no obligation to publicly revise any forward-looking statements included in this Quarterly Report to reflect circumstances or events after the date of this Quarterly Report, or to reflect the occurrence of unanticipated events.  You should, however, review the factors and risks we describe in the reports we will file from time to time with the Securities and Exchange Commission ("SEC"), after the date of this Quarterly Report on Form 10-Q.

Forward-looking statements include, but are not limited to, statements about:

 

our ability to respond to global economic, market, business and geopolitical conditions;

 

our anticipated future results of operations and operating cash flows;

 

our successful formulation and execution of business strategies and investment policies;

 

our financing plans and the availability of short- or long-term borrowing, or equity financing;

 

our competitive position and the effects of competition on our business;

 

our ability to identify and capture potential growth opportunities available to us;

 

the effective recruitment and retention of our key executives and employees;

 

our expected levels of compensation for our employees;

 

our potential operating performance, achievements, efficiency, and cost reduction efforts;

 

our expected tax rate;

 

changes in interest rates;

 

our expectations with respect to the economy, capital markets, the market for asset management services, and other industry trends; and

 

the impact of future legislation and regulation, and changes in existing legislation and regulation, on our business.

The reports that we file with the SEC, accessible on the SEC’s website at www.sec.gov, identify additional factors that can affect forward-looking statements.

 

 

 

ii


Table of Contents

 

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

 

PZENA INVESTMENT MANAGEMENT, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

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

 

 

 

As of

 

 

 

September 30, 2018

 

 

December 31, 2017

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Cash and Cash Equivalents ($3,679 and $3,717)1

 

$

31,913

 

 

$

63,414

 

Restricted Cash

 

 

1,026

 

 

 

1,017

 

Due from Broker ($576 and $1,485)1

 

 

894

 

 

 

1,875

 

Advisory Fees Receivable

 

 

34,398

 

 

 

32,531

 

Investments  ($3,623 and $3,927)1

 

 

58,170

 

 

 

21,737

 

Receivable from Related Parties

 

 

1,251

 

 

 

1,453

 

Other Receivables ($14 and $15)1

 

 

196

 

 

 

132

 

Prepaid Expenses and Other Assets

 

 

906

 

 

 

990

 

Deferred Tax Asset

 

 

35,984

 

 

 

39,639

 

Property and Equipment, Net of Accumulated Depreciation of $3,804 and $3,063, respectively

 

 

5,631

 

 

 

6,259

 

TOTAL ASSETS

 

$

170,369

 

 

$

169,047

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Accounts Payable and Accrued Expenses ($16 and $14)1

 

$

31,962

 

 

$

31,983

 

Due to Broker ($321 and $0)1

 

 

608

 

 

 

144

 

Liability to Selling and Converting Shareholders

 

 

36,441

 

 

 

36,441

 

Deferred Compensation Liability

 

 

3,490

 

 

 

918

 

Other Liabilities ($150 and $0)1

 

 

415

 

 

 

272

 

TOTAL LIABILITIES

 

 

72,916

 

 

 

69,758

 

Commitments and Contingencies (see Note 12)

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Preferred Stock (Par Value $0.01; 200,000,000 Shares Authorized; None Outstanding)

 

 

 

 

 

 

Class A Common Stock (Par Value $0.01; 750,000,000 Shares Authorized; 17,364,299 and 18,096,554 Shares Issued and Outstanding in 2018 and 2017, respectively)

 

 

173

 

 

 

180

 

Class B Common Stock (Par Value $0.000001; 750,000,000 Shares Authorized; 51,930,427 and 50,709,673 Shares Issued and Outstanding in 2018 and 2017, respectively)

 

 

 

 

 

 

Additional Paid-In Capital

 

 

2,372

 

 

 

7,915

 

Retained Earnings

 

 

26,854

 

 

 

24,214

 

Accumulated Other Comprehensive Loss

 

 

18

 

 

 

(5

)

Total Pzena Investment Management, Inc.'s Equity

 

 

29,417

 

 

 

32,304

 

Non-Controlling Interests

 

 

68,036

 

 

 

66,985

 

TOTAL EQUITY

 

 

97,453

 

 

 

99,289

 

TOTAL LIABILITIES AND EQUITY

 

$

170,369

 

 

$

169,047

 

 

1

Asset and liability amounts in parentheses represent the aggregated balances at September 30, 2018 and December 31, 2017 attributable to Pzena International Value Service (a series of Pzena Investment Management, LLC), Pzena Investment Management Special Situations, LLC, and Pzena U.S. Best Ideas (GP), LLC, which were variable interest entities as of September 30, 2018 and December 31, 2017, respectively. Aggregated balances of variable interest entities at September 30, 2018 also reflect Pzena Global Best Ideas (GP), LLC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to unaudited consolidated financial statements.

 

1


Table of Contents

 

PZENA INVESTMENT MANAGEMENT, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

For the Three Months

Ended September 30,

 

 

For the Nine Months

Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

REVENUE

 

$

39,580

 

 

$

36,229

 

 

$

117,180

 

 

$

102,386

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and Benefits Expense

 

 

16,122

 

 

 

14,763

 

 

 

47,520

 

 

 

44,681

 

General and Administrative Expense

 

 

3,322

 

 

 

3,062

 

 

 

9,856

 

 

 

9,585

 

Total Operating Expenses

 

 

19,444

 

 

 

17,825

 

 

 

57,376

 

 

 

54,266

 

Operating Income

 

 

20,136

 

 

 

18,404

 

 

 

59,804

 

 

 

48,120

 

OTHER INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

234

 

 

 

76

 

 

 

382

 

 

 

106

 

Dividend Income

 

 

52

 

 

 

117

 

 

 

127

 

 

 

318

 

Net Realized and Unrealized Gains/ (Losses) from Investments

 

 

142

 

 

 

626

 

 

 

(71

)

 

 

1,719

 

Equity in Earnings/ (Losses) of Affiliates

 

 

204

 

 

 

428

 

 

 

(73

)

 

 

1,083

 

Other (Expense)/ Income

 

 

(27

)

 

 

59

 

 

 

(22

)

 

 

178

 

Total Other Income

 

 

605

 

 

 

1,306

 

 

 

343

 

 

 

3,404

 

Income Before Income Taxes

 

 

20,741

 

 

 

19,710

 

 

 

60,147

 

 

 

51,524

 

Income Tax Expense

 

 

1,294

 

 

 

2,493

 

 

 

5,677

 

 

 

6,460

 

Net Income

 

 

19,447

 

 

 

17,217

 

 

 

54,470

 

 

 

45,064

 

Less: Net Income Attributable to Non-Controlling Interests

 

 

15,185

 

 

 

14,228

 

 

 

43,213

 

 

 

37,110

 

Net Income Attributable to Pzena Investment Management, Inc.

 

$

4,262

 

 

$

2,989

 

 

$

11,257

 

 

$

7,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income for Basic Earnings per Share

 

$

4,262

 

 

$

2,989

 

 

$

11,257

 

 

$

7,954

 

Basic Earnings per Share

 

$

0.24

 

 

$

0.17

 

 

$

0.63

 

 

$

0.46

 

Basic Weighted Average Shares Outstanding1

 

 

17,489,380

 

 

 

17,285,307

 

 

 

17,752,788

 

 

 

17,319,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income for Diluted Earnings per Share

 

$

15,786

 

 

$

11,862

 

 

$

44,033

 

 

$

31,077

 

Diluted Earnings per Share

 

$

0.22

 

 

$

0.17

 

 

$

0.61

 

 

$

0.44

 

Diluted Weighted Average Shares Outstanding1

 

 

71,677,806

 

 

 

70,763,213

 

 

 

71,934,411

 

 

 

70,845,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Dividends per Share of Class A Common Stock

 

$

0.03

 

 

$

0.03

 

 

$

0.48

 

 

$

0.34

 

 

1

The Company issues restricted shares of Class A common stock and restricted Class B units that have non-forfeitable dividend rights.  Under the "two-class method," these shares and units are considered participating securities and are required to be included in the computation of basic and diluted earnings per share.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to unaudited consolidated financial statements.

2


Table of Contents

 

PZENA INVESTMENT MANAGEMENT, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

 

 

 

For the Three Months

Ended September 30,

 

 

For the Nine Months

Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

NET INCOME

 

$

19,447

 

 

$

17,217

 

 

$

54,470

 

 

$

45,064

 

OTHER COMPREHENSIVE (LOSS)/ GAIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency Translation Adjustment

 

 

(27

)

 

 

48

 

 

 

(90

)

 

 

104

 

Total Other Comprehensive (Loss)/ Gain

 

 

(27

)

 

 

48

 

 

 

(90

)

 

 

104

 

Comprehensive Income

 

 

19,420

 

 

 

17,265

 

 

 

54,380

 

 

 

45,168

 

Less: Comprehensive Income Attributable to Non-Controlling Interests

 

 

15,151

 

 

 

14,264

 

 

 

43,100

 

 

 

37,188

 

Total Comprehensive Income Attributable to Pzena Investment Management, Inc.

 

$

4,269

 

 

$

3,001

 

 

$

11,280

 

 

$

7,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to unaudited consolidated financial statements.

 

 

3


Table of Contents

 

PZENA INVESTMENT MANAGEMENT, INC.

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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

 

 

Shares of

Class A

Common Stock

 

 

Shares of

Class B

Common Stock

 

 

Class A

Common Stock

 

 

Additional

Paid-In Capital

 

 

Accumulated

Other

Comprehensive

Income/(Loss)

 

 

Retained

Earnings

 

 

Non-Controlling

Interests

 

 

Total Equity

 

Balance at December 31, 2017

 

 

18,096,554

 

 

 

50,709,673

 

 

$

180

 

 

$

7,915

 

 

$

(5

)

 

$

24,214

 

 

$

66,985

 

 

$

99,289

 

Amortization of Non-Cash Compensation

 

 

10,000

 

 

 

26,178

 

 

 

 

 

 

963

 

 

 

 

 

 

 

 

 

2,758

 

 

 

3,721

 

Issuance of Shares under Equity Incentive Plan

 

 

 

 

 

300,931

 

 

 

 

 

 

1,096

 

 

 

 

 

 

 

 

 

3,095

 

 

 

4,191

 

Sale of Shares under Equity Incentive Plan

 

 

 

 

 

897,515

 

 

 

 

 

 

1,342

 

 

 

 

 

 

 

 

 

3,849

 

 

 

5,191

 

Directors' Share Grants

 

 

 

 

 

 

 

 

 

 

 

116

 

 

 

 

 

 

 

 

 

333

 

 

 

449

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,257

 

 

 

43,213

 

 

 

54,470

 

Foreign Currency Translation Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

 

 

 

(113

)

 

 

(90

)

Repurchase and Retirement of Class A Common Stock

 

 

(742,255

)

 

 

 

 

 

(7

)

 

 

(7,494

)

 

 

 

 

 

 

 

 

 

 

 

(7,501

)

Repurchase and Retirement of Class B Units

 

 

 

 

 

(3,870

)

 

 

 

 

 

(11

)

 

 

 

 

 

 

 

 

(30

)

 

 

(41

)

Class A Cash Dividends Declared and Paid ($0.48 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,617

)

 

 

 

 

 

(8,617

)

Tax Impact of Transactions with Non-Controlling Shareholders

 

 

 

 

 

 

 

 

 

 

 

(420

)

 

 

 

 

 

 

 

 

 

 

 

(420

)

Contributions from Non-Controlling Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61

 

 

 

61

 

Distributions to Non-Controlling Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(53,250

)

 

 

(53,250

)

Other

 

 

 

 

 

 

 

 

 

 

 

(1,135

)

 

 

 

 

 

 

 

 

1,135

 

 

 

 

Balance at September 30, 2018

 

 

17,364,299

 

 

 

51,930,427

 

 

$

173

 

 

$

2,372

 

 

$

18

 

 

$

26,854

 

 

$

68,036

 

 

$

97,453

 

 

 

 

Shares of

Class A

Common Stock

 

 

Shares of

Class B

Common Stock

 

 

Class A

Common Stock

 

 

Additional

Paid-In Capital

 

 

Accumulated

Other

Comprehensive

Income/(Loss)

 

 

Retained

Earnings

 

 

Non-Controlling

Interests

 

 

Total Equity

 

Balance at December 31, 2016

 

 

17,340,090

 

 

 

50,461,598

 

 

$

173

 

 

$

5,996

 

 

$

(25

)

 

$

22,349

 

 

$

52,841

 

 

$

81,334

 

Adjustment for the Cumulative Effect of Applying ASU 2016-09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,377

 

 

 

 

 

 

1,377

 

Adjusted Balance at January 1, 2017

 

 

17,340,090

 

 

 

50,461,598

 

 

 

173

 

 

 

5,996

 

 

 

(25

)

 

 

23,726

 

 

 

52,841

 

 

 

82,711

 

Amortization of Non-Cash Compensation

 

 

24,934

 

 

 

22,410

 

 

 

 

 

 

801

 

 

 

 

 

 

 

 

 

2,340

 

 

 

3,141

 

Issuance of Shares under Equity Incentive Plan

 

 

 

 

 

620,543

 

 

 

 

 

 

1,118

 

 

 

 

 

 

 

 

 

3,295

 

 

 

4,413

 

Sale of Shares under Equity Incentive Plan

 

 

 

 

 

29,426

 

 

 

 

 

 

47

 

 

 

 

 

 

 

 

 

140

 

 

 

187

 

Directors' Share Grants

 

 

 

 

 

 

 

 

 

 

 

96

 

 

 

 

 

 

 

 

 

286

 

 

 

382

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,954

 

 

 

37,110

 

 

 

45,064

 

Foreign Currency Translation Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

 

 

78

 

 

 

104

 

Repurchase and Retirement of Class A Common Stock

 

 

(79,717

)

 

 

 

 

 

(1

)

 

 

(707

)

 

 

 

 

 

 

 

 

 

 

 

(708

)

Repurchase and Retirement of Class B Units

 

 

 

 

 

(2,897

)

 

 

 

 

 

(10

)

 

 

 

 

 

 

 

 

(29

)

 

 

(39

)

Class A Cash Dividends Declared and Paid ($0.34 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,902

)

 

 

 

 

 

(5,902

)

Contributions from Non-Controlling Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,054

 

 

 

4,054

 

Distributions to Non-Controlling Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39,841

)

 

 

(39,841

)

Other

 

 

 

 

 

 

 

 

 

 

 

(285

)

 

 

 

 

 

 

 

 

285

 

 

 

 

Balance at September 30, 2017

 

 

17,285,307

 

 

 

51,131,080

 

 

$

172

 

 

$

7,056

 

 

$

1

 

 

$

25,778

 

 

$

60,559

 

 

$

93,566

 

 

See accompanying notes to unaudited consolidated financial statements.

 

4


Table of Contents

 

PZENA INVESTMENT MANAGEMENT, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

For the Three Months

Ended September 30,

 

 

For the Nine Months

Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

19,447

 

 

$

17,217

 

 

$

54,470

 

 

$

45,064

 

Adjustments to Reconcile Net Income to Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provided by Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

245

 

 

 

256

 

 

 

746

 

 

 

757

 

Loss on Disposal of Fixed Assets

 

 

 

 

 

 

 

 

 

 

 

6

 

Non-Cash Compensation

 

 

2,383

 

 

 

2,937

 

 

 

7,211

 

 

 

7,868

 

Directors' Share Grants

 

 

102

 

 

 

100

 

 

 

449

 

 

 

382

 

Net Realized and Unrealized (Gains)/ Losses from Investments

 

 

(142

)

 

 

(626

)

 

 

71

 

 

 

(1,719

)

Equity in (Earnings)/ Losses of Affiliates

 

 

(204

)

 

 

(428

)

 

 

73

 

 

 

(1,083

)

Accretion of Discount

 

 

(41

)

 

 

 

 

 

(41

)

 

 

 

Foreign Currency Translation Adjustments

 

 

(27

)

 

 

48

 

 

 

(90

)

 

 

104

 

Deferred Income Taxes

 

 

551

 

 

 

1,744

 

 

 

3,234

 

 

 

4,400

 

Changes in Operating Assets and Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory Fees Receivable

 

 

(747

)

 

 

(2,182

)

 

 

(1,867

)

 

 

(5,580

)

Due from Broker

 

 

(166

)

 

 

692

 

 

 

1,031

 

 

 

749

 

Prepaid Expenses and Other Assets

 

 

52

 

 

 

164

 

 

 

20

 

 

 

246

 

Due to Broker

 

 

133

 

 

 

(37

)

 

 

464

 

 

 

554

 

Accounts Payable, Accrued Expenses, and Other Liabilities

 

 

9,178