Lazard Ltd Reports First-Quarter 2013 Results
Highlights
-
Net income per share, as adjusted1, of
$0.28 (diluted) for the quarter endedMarch 31, 2013 , compared to$0.33 (diluted) for the 2012 first quarter, excluding charges in both periods2 -
Increasing quarterly dividend 25% to
$0.25 per share -
Operating revenue1 of
$414 million for first-quarter 2013, down 17% from first-quarter 2012 -
Financial Advisory operating revenue of
$168 million for first-quarter 2013, down 39% from prior-year period; M&A down 37% for the quarter -
Asset Management operating revenue of
$240 million for first-quarter 2013, up 14% from prior-year period. Management fees of$220 million , up 5% from fourth-quarter 2012 and up 10% from prior-year period -
Record assets under management (AUM) of
$172 billion as ofMarch 31, 2013 , up 3% fromDecember 31, 2012 , and up 10% from first-quarter 2012. Net outflows of$995 million for first-quarter 2013 -
First-quarter 2013 charge of
$26 million related to previously announced cost saving initiatives; additional savings are expected -
Return of capital to shareholders totaling
$176 million 3 in first-quarter 2013
|
($ in millions, except per share data and AUM) |
Quarter Ended
|
||||||||||
| 2013 | 2012 | %'13-'12 | |||||||||
|
As Adjusted1 |
|||||||||||
| Operating revenue |
|
|
(17)% | ||||||||
| Financial Advisory |
|
|
(39)% | ||||||||
| Asset Management |
|
|
14% | ||||||||
| Net income2 |
|
|
(17)% | ||||||||
| Diluted net income per share2 |
|
|
(15)% | ||||||||
|
U.S. GAAP |
|||||||||||
| Net income |
|
|
(40)% | ||||||||
| Diluted net income per share |
|
|
(40)% | ||||||||
|
Assets Under Management |
|||||||||||
| Ending AUM ($ in billions) |
|
|
10% | ||||||||
| Average AUM ($ in billions) |
|
|
14% | ||||||||
First-quarter 2013 net income on a U.S. GAAP basis was
"Our first-quarter results reflect the uneven pace of the M&A markets,
balanced by the strength of the equity markets," said
"In Financial Advisory we continue to be involved in many of the
largest, most complex and transformational transactions globally, and we
are poised to capitalize on an upturn in the M&A market. Our Asset
Management business is positioned for long-term growth," said
"Lazard continues to be a strong cash generator," said
"The cost saving initiatives that began in the fourth quarter of 2012
are nearly complete," said
OPERATING REVENUE
Financial Advisory
In the text portion of this press release, we present our Financial
Advisory results as Strategic Advisory and Restructuring. Strategic
Advisory includes 1) M&A and Other Advisory (Other includes Capital
Structure Advisory and Sovereign Advisory) and 2) Capital Raising
(includes
Financial Advisory operating revenue was
Strategic Advisory operating revenue was
Restructuring operating revenue of
During the first quarter of 2013,
Our Sovereign Advisory business remained active in worldwide
assignments, including: advising on various privatizations in
During and since the first quarter of 2013 we remained engaged in many
of the most highly visible and complex restructuring and debt advisory
assignments, including for
Please see a list of M&A and Restructuring assignments on which
1 Source: Thomson Reuters
Asset Management
Asset Management operating revenue was a first-quarter record of
AUM was a record
Average AUM in the first quarter of 2013 was up 4% from the average AUM in the fourth quarter of 2012, and up 14% from the average AUM in the first quarter of 2012.
Management fees were
OPERATING EXPENSES
Compensation and Benefits
In managing compensation and benefits expense, we focus on annual awarded compensation (cash compensation and benefits plus deferred incentive compensation with respect to the applicable year, net of estimated future forfeitures and excluding charges). We believe annual awarded compensation reflects the actual annual compensation cost more accurately than the GAAP measure of compensation cost, which includes applicable-year cash compensation and the amortization of deferred incentive compensation principally attributable to previous years' deferred compensation. We believe that by managing our business using awarded compensation with a consistent deferral policy, we can better manage our compensation costs, increase our flexibility in the future and build shareholder value over time.
Adjusted GAAP compensation and benefits expense1, including
related accruals, was
The first-quarter 2013 adjusted GAAP compensation ratio assumes, based on current market conditions, a full-year awarded compensation ratio of approximately 58.5%, compared to 59.4% for the full year of 2012.
Our goal remains to grow awarded compensation expense at a slower rate than revenue growth, and to achieve a compensation-to-operating revenue ratio over the cycle in the mid- to high-50s percentage range on both an awarded and adjusted GAAP basis, with consistent deferral policies.
Non-Compensation Expense
Adjusted non-compensation expense1 for the first quarter of
2013 was
The ratio of adjusted non-compensation expense to operating revenue for the first quarter of 2013 was 24.1%, compared to 21.1% for the first quarter of 2012. The increase in the first-quarter 2013 ratio was impacted by the level of operating revenue in the quarter.
Our goal remains to achieve an adjusted non-compensation expense-to-operating revenue ratio over the cycle of 16% to 20%.
TAXES
The provision for taxes, on an adjusted basis1, was
CAPITAL MANAGEMENT AND BALANCE SHEET
Our primary capital management goals include managing debt and returning capital to shareholders through dividends and share repurchases.
For the first quarter of 2013,
On
Lazard's financial position remains strong. Our cash and cash
equivalents at
COST SAVING INITIATIVES
In 2012,
The cost saving initiatives are intended to improve the firm's profitability with minimal impact on revenue growth. The initiatives include: streamlining our corporate structure and consolidating support functions; realigning the firm's investments into areas with potential for the greatest long-term return; and creating greater flexibility to retain and attract the best people and invest in new growth areas.
Most of the cost saving initiatives have been completed. In the first
quarter of 2013, associated implementation expenses were approximately
As planned, we expect implementation of the initiatives to be finished by the end of the second quarter of 2013, which we expect will include additional cost savings that we have identified. We anticipate that the ratio of these additional cost savings to expenses will approximate the ratio expected for the initiatives currently underway. We expect that the expenses in the second quarter that are associated with the additional savings will not exceed the level of first-quarter 2013 expenses. We believe the full impact of all the savings will be reflected in our 2014 results.
***
CONFERENCE CALL
A replay of the conference call will be available by
ABOUT
***
Cautionary Note Regarding Forward-Looking Statements:
This press release contains "forward-looking statements." In some cases, you can identify these statements by forward-looking words such as "may", "might", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "target," "goal", or "continue", and the negative of these terms and other comparable terminology. These forward-looking statements are not historical facts but instead represent only our belief regarding future results, many of which, by their nature, are inherently uncertain and outside of our control. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee the accuracy of our estimated targets, future results, level of activity, performance or achievements. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements.
These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A "Risk Factors," and also disclosed from time to time in our reports on Forms 10-Q and 8-K, including the following:
- A decline in general economic conditions or the global financial markets;
- A decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);
- Losses caused by financial or other problems experienced by third parties;
- Losses due to unidentified or unanticipated risks;
- A lack of liquidity, i.e., ready access to funds, for use in our businesses; and
- Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels.
***
FINANCIAL ADVISORY ASSIGNMENTS
Mergers and Acquisitions (Completed in the first quarter of 2013)
Among the large, publicly announced M&A Advisory transactions or
assignments completed during the first quarter of 2013 on which
-
Cerberus in Albertsons'
$3.5 billion acquisition of five grocery banners from SUPERVALU and purchase of a 21% interest in SUPERVALU's public shares -
PPG Industries on the
$2.1 billion merger of its commodity chemicals business with Georgia Gulf -
Principal Financial Group's
$1.5 billion acquisition of Cuprum -
CVC Capital Partners in its €1.1 billion acquisition of Cerved -
Unilever in the
$700 million sale of its Skippy peanut butter business to Hormel - Danone in its €543 million acquisition of a 38% stake in Centrale Laitière du Maroc
-
Sportingbet in its £485 million sale to
William Hill and GVC Holdings - Caisse des Dépôts on the reorganization of Dexia
-
Scailex on the sale of an interest in Partner Communications to
Saban Capital Group - Hera's merger with AcegasAps
-
United Technologies on the sale of its
UTC Power unit toClearEdge Power
Mergers and Acquisitions (Announced)
Among the ongoing, large, publicly announced M&A transactions and
assignments on which
-
Deutsche Telekom on the
$29.0 billion combination of T-Mobile and MetroPCS -
Berkshire Hathaway and 3G Capital in their
$28.0 billion acquisition of H.J. Heinz -
Microsoft in its role in Dell's
$24.4 billion going-private transaction -
Anheuser-Busch InBev's
$20.1 billion acquisition of the remaining stake inGrupo Modelo it does not already own and Grupo Modelo's related$4.8 billion sale of its U.S.-related operations to Constellation Brands -
D.E Master Blenders 1753 in its €7.8 billion sale to an
investor group led by Joh. A.
Benckiser -
IntercontinentalExchange's
$8.2 billion acquisition of NYSE Euronext -
Industry Funds Management -led consortium in itsA$5.1 billion acquisition of 99-year leases for Port Botany and Port Kembla from theNew South Wales government -
Caisse des Dépôts' €2.6 billion indirect acquisition of Silic
from
Groupama - BayernLB's €2.5 billion sale of GBW to Patrizia Immobilien
- Total's €2.4 billion proposed sale of TIGF to a consortium
- Ameristar Casinos' $2.8 billion sale to Pinnacle Entertainment
-
*
Permian Mud Service (parent company of Champion Technologies and CorsiTech) in its$2.2 billion merger with Ecolab -
The Special Committee of CNH Global on Fiat Industrial's$1.7 billion acquisition of the remaining shares in CNH Global that it does not already own -
Athene Holding in its$1.6 billion acquisition of Aviva's U.S. annuity and life insurance operations -
CH Energy Group's
$1.5 billion sale to Fortis -
*LNR Property's
$1.05 billion sale to Starwood Property Trust andStarwood Capital Group -
EQT in the exchange of its natural gas distribution business
with
SteelRiver Infrastructure Partners for$720 million and the receipt of assets and other consideration -
The Special Committee of CreXus Investment Corp. in the company's sale to Annaly Capital Management for an implied valuation of$1.0 billion -
Petra Foods'
$950 million sale of its cocoa ingredients business to Barry Callebaut -
*
The Special Committee of Sauer-Danfoss on Danfoss's$690 million acquisition of the remaining 24.4% of Sauer-Danfoss that it does not already own -
Piraeus Bank's €524 million acquisition of the Greek banking
operations of
Bank of Cyprus , Cyprus Popular Bank and Hellenic Bank -
Dynegy's
$599 million acquisition ofAmeren Energy Resources -
Qatar Holding on its approximately 12% stake in Xstrata in connection with the proposed merger with Glencore International - *EADS on the reorganization of its governance and shareholding structure
-
Jereissati Group and Renosa in the merger of Norsa, Renosa and Guararapes - *Utex Industries' sale to Riverstone Holdings
-
PPR/Kering on the distribution of
Groupe Fnac shares to shareholders of PPR/Kering and listing onEuronext Paris
* Notes transactions completed since
Restructuring and Debt Advisory Assignments
Restructuring and debtor or creditor advisory assignments completed
during the first quarter of 2013 on which
Notable Chapter 11 bankruptcies on which
-
Airlines:
Allied Pilots Association with respect to American Airlines - Consumer/Food: Hostess Brands
-
Professional/Financial Services:
Ambac - Technology/Media/Telecom: Eastman Kodak, LightSquared
Among other publicly announced restructuring and debt advisory
assignments on which
- Belvédère — advising the FRN noteholder committee
-
Capita Asset Services — financial advisor to the Master Servicer forTheatre (Hospitals) No.1 andTheatre (Hospitals) No.2 - Cengage Learning — advising the company on its debt restructuring
- Exide Technologies - advising the company on financing alternatives
-
Financial Guaranty Insurance Company (FGIC) — advisor to
Weil, Gotshal & Manges in its capacity as counsel to theNew York Liquidation Bureau - Munshaat — on its debt restructuring
-
National Association of Letter Carriers — in connection with the USPS's restructuring efforts - PMI — advisor to the receiver of PMI on certain asset dispositions
- Prelios — on its group refinancing, financial rebalancing and industrial re-launch
***
ENDNOTES
| 1 |
A non-U.S. GAAP measure. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is the most meaningful and useful way to compare our operating results across periods. |
|
2 |
First quarter 2013 results exclude pre-tax charges of |
| 3 |
In the first quarter of 2013, we: (i) repurchased |
|
LAZ-EPE
LAZ-C
|
|
||||||||||||||
| SELECTED SUMMARY FINANCIAL INFORMATION (a) | ||||||||||||||
| (Non-GAAP - unaudited) | ||||||||||||||
| Three Months Ended |
% Change From |
|||||||||||||
|
|
|
|
|
|
||||||||||
| ($ in thousands, except per share data) | 2013 | 2012 | 2012 | 2012 | 2012 | |||||||||
| Revenues: | ||||||||||||||
| Financial Advisory | ||||||||||||||
| M&A and Other Advisory |
|
|
|
(48%) | (37%) | |||||||||
| Capital Raising | 14,686 | 27,685 | 14,370 | (47%) | 2% | |||||||||
| Strategic Advisory | 135,442 | 261,202 | 206,981 | (48%) | (35%) | |||||||||
| Restructuring | 33,020 | 48,095 | 70,215 | (31%) | (53%) | |||||||||
| Total | 168,462 | 309,297 | 277,196 | (46%) | (39%) | |||||||||
| Asset Management | ||||||||||||||
| Management fees | 219,992 | 208,637 | 199,860 | 5% | 10% | |||||||||
| Incentive fees | 8,794 | 26,755 | 2,596 | (67%) | NM | |||||||||
| Other | 10,922 | 9,815 | 7,636 | 11% | 43% | |||||||||
| Total | 239,708 | 245,207 | 210,092 | (2%) | 14% | |||||||||
| Corporate | 5,534 | 19,143 | 11,461 | (71%) | (52%) | |||||||||
| Operating revenue (b) |
|
|
|
(28%) | (17%) | |||||||||
| Expenses: | ||||||||||||||
| Compensation and benefits expense (c) |
|
|
|
(27%) | (21%) | |||||||||
| Ratio of compensation to operating revenue | 60.0% | 59.6% | 62.7% | |||||||||||
| Non-compensation expense (d) |
|
|
|
(13%) | (5%) | |||||||||
| Ratio of non-compensation to operating revenue | 24.1% | 20.0% | 21.1% | |||||||||||
| Earnings: | ||||||||||||||
| Earnings from operations (e) |
|
|
|
(44%) | (18%) | |||||||||
| Operating margin (f) | 15.9% | 20.4% | 16.2% | |||||||||||
| Net income (g) |
|
|
|
(54%) | (17%) | |||||||||
| Diluted net income per share |
|
|
|
(54%) | (15%) | |||||||||
| Diluted weighted average shares | 132,815,560 | 133,855,611 | 136,594,178 | (1%) | (3%) | |||||||||
| Effective tax rate (h) | 18.9% | 15.1% | 25.7% | |||||||||||
This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.
|
|
||||||||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||||||
| (U.S. GAAP) | ||||||||||||||||||||||
| Three Months Ended | % Change From | |||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
| ($ in thousands, except per share data) | 2013 | 2012 | 2012 | 2012 | 2012 | |||||||||||||||||
| Total revenue |
|
|
|
(27%) | (17%) | |||||||||||||||||
| Interest expense | (20,155 | ) | (20,164 | ) | (20,422 | ) | ||||||||||||||||
| Net revenue | 401,903 | 560,693 | 486,039 | (28%) | (17%) | |||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Compensation and benefits | 277,739 | 445,602 | 338,317 | (38%) | (18%) | |||||||||||||||||
| Occupancy and equipment | 29,304 | 32,854 | 26,282 | |||||||||||||||||||
| Marketing and business development | 18,192 | 25,888 | 28,267 | |||||||||||||||||||
| Technology and information services | 22,980 | 23,750 | 20,393 | |||||||||||||||||||
| Professional services | 8,613 | 12,859 | 9,311 | |||||||||||||||||||
| Fund administration and outsourced services | 13,465 | 12,090 | 13,451 | |||||||||||||||||||
| Amortization of intangible assets related to acquisitions | 877 | 2,187 | 1,118 | |||||||||||||||||||
| Other | 9,136 | 10,660 | 11,077 | |||||||||||||||||||
| Subtotal | 102,567 | 120,288 | 109,899 | (15%) | (7%) | |||||||||||||||||
| Operating expenses | 380,306 | 565,890 | 448,216 | (33%) | (15%) | |||||||||||||||||
| Operating income (loss) | 21,597 | (5,197 | ) | 37,823 | NM | (43%) | ||||||||||||||||
| Provision (benefit) for income taxes | 3,948 | (1,091 | ) | 8,767 | NM | (55%) | ||||||||||||||||
| Net income (loss) | 17,649 | (4,106 | ) | 29,056 | NM | (39%) | ||||||||||||||||
| Net income attributable to noncontrolling interests | 2,289 | 1,259 | 3,504 | |||||||||||||||||||
|
Net income (loss) attributable to |
|
( |
) |
|
NM | (40%) | ||||||||||||||||
| Attributable to Lazard Ltd Common Stockholders: | ||||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||
| Basic | 117,708,204 | 114,747,744 | 119,229,541 | 3% | (1%) | |||||||||||||||||
| Diluted | 132,815,560 | 114,747,744 | 136,594,178 | 16% | (3%) | |||||||||||||||||
| Net income (loss) per share: | ||||||||||||||||||||||
| Basic |
|
( |
) |
|
NM | (38%) | ||||||||||||||||
| Diluted |
|
( |
) |
|
NM | (40%) | ||||||||||||||||
|
|
||||||||||
| UNAUDITED CONDENSED CONSOLIDATED | ||||||||||
| STATEMENT OF FINANCIAL CONDITION | ||||||||||
| (U.S. GAAP) | ||||||||||
|
|
|
|||||||||
| ($ in thousands) | 2013 |
2012 |
||||||||
|
ASSETS |
||||||||||
| Cash and cash equivalents |
|
|
||||||||
| Deposits with banks | 254,143 | 292,494 | ||||||||
| Cash deposited with clearing organizations and other segregated cash | 60,484 | 65,232 | ||||||||
| Receivables | 459,880 | 478,043 | ||||||||
| Investments | 406,256 | 414,673 | ||||||||
| Goodwill and other intangible assets | 393,317 | 392,822 | ||||||||
| Other assets | 567,976 | 493,439 | ||||||||
| Total Assets |
|
|
||||||||
|
LIABILITIES & STOCKHOLDERS' EQUITY |
||||||||||
| Liabilities | ||||||||||
| Deposits and other customer payables |
|
|
||||||||
| Accrued compensation and benefits | 273,962 | 467,578 | ||||||||
| Senior debt | 1,076,850 | 1,076,850 | ||||||||
| Other liabilities | 553,462 | 521,162 | ||||||||
| Total liabilities | 2,151,066 | 2,335,353 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' equity | ||||||||||
|
Preferred stock, par value |
- | - | ||||||||
|
Common stock, par value |
1,282 | 1,282 | ||||||||
| Additional paid-in capital | 605,166 | 846,050 | ||||||||
| Retained earnings | 197,297 | 182,647 | ||||||||
| Accumulated other comprehensive loss, net of tax | (124,758 | ) | (110,541 | ) | ||||||
| 678,987 | 919,438 | |||||||||
| Class A common stock held by subsidiaries, at cost | (182,387 | ) | (349,782 | ) | ||||||
|
Total |
496,600 | 569,656 | ||||||||
| Noncontrolling interests | 80,501 | 81,884 | ||||||||
| Total stockholders' equity | 577,101 | 651,540 | ||||||||
| Total liabilities and stockholders' equity |
|
|
||||||||
|
|
|||||||||||||||||
| ASSETS UNDER MANAGEMENT ("AUM") | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| As of | Variance | ||||||||||||||||
|
|
|
|
1Q 2013 vs. | ||||||||||||||
| 2013 | 2012 | 2012 | Qtr to Qtr | 1Q 2012 | |||||||||||||
| Equities |
|
|
|
3.4% | 9.3% | ||||||||||||
| Fixed Income | 23,130 | 22,718 | 19,249 | 1.8% | 20.2% | ||||||||||||
| Alternative Investments | 4,591 | 4,600 | 5,296 | (0.2%) | (13.3%) | ||||||||||||
| Private Equity | 1,301 | 1,398 | 1,424 | (6.9%) | (8.6%) | ||||||||||||
| Cash | 141 | 173 | 86 | (18.5%) | 64.0% | ||||||||||||
| Total AUM |
|
|
|
2.9% | 9.7% | ||||||||||||
| Year Ended | |||||||||||||||||
|
Three Months Ended |
|
||||||||||||||||
| 2013 | 2012 | 2012 | |||||||||||||||
| AUM - Beginning of Period |
|
|
|
||||||||||||||
| Net Flows | (995 | ) | (162 | ) | 2,741 | ||||||||||||
| Market and foreign exchange | |||||||||||||||||
| appreciation (depreciation) | 5,900 | 15,831 | 23,280 | ||||||||||||||
| AUM - End of Period |
|
|
|
||||||||||||||
| Average AUM |
|
|
|
||||||||||||||
| % Change in average AUM | 13.5 | % | |||||||||||||||
Note: Average AUM is generally based on an average of quarterly ending balances for the respective periods.
|
|
||||||||||||
| RECONCILIATION OF U.S. GAAP TO SELECTED SUMMARY FINANCIAL INFORMATION (a) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
|
|
|
|
||||||||||
| ($ in thousands, except per share data) | 2013 | 2012 | 2012 | |||||||||
| Operating Revenue | ||||||||||||
| Net revenue - U.S. GAAP Basis |
|
|
|
|||||||||
| Adjustments: | ||||||||||||
| Revenue related to noncontrolling interests (i) | (4,322 | ) | (3,963 | ) | (4,439 | ) | ||||||
| Loss (gain) related to Lazard Fund Interests ("LFI") and other similar arrangements | (3,725 | ) | (2,918 | ) | (2,767 | ) | ||||||
| Interest expense | 19,848 | 19,835 | 19,916 | |||||||||
| Operating revenue, as adjusted |
|
|
|
|||||||||
| Compensation & Benefits Expense | ||||||||||||
| Compensation & benefits expense - U.S. GAAP Basis |
|
|
|
|||||||||
| Adjustments: | ||||||||||||
| Charges pertaining to cost saving initiatives | (24,671 | ) | (99,987 | ) | - | |||||||
| Charges pertaining to staff reductions | - | - | (21,754 | ) | ||||||||
| Charges pertaining to LFI and other similar arrangements | (3,725 | ) | (2,918 | ) | (2,767 | ) | ||||||
| Compensation related to noncontrolling interests (i) | (1,121 | ) | (931 | ) | (1,080 | ) | ||||||
| Compensation & benefits expense, as adjusted |
|
|
|
|||||||||
| Non-Compensation Expense | ||||||||||||
| Non-compensation expense - Subtotal - U.S. GAAP Basis |
|
|
|
|||||||||
| Adjustments: | ||||||||||||
| Charges pertaining to cost saving initiatives | (1,651 | ) | (2,589 | ) | - | |||||||
| Charges pertaining to staff reductions | - | - | (2,905 | ) | ||||||||
| Amortization of intangible assets related to acquisitions | (877 | ) | (2,187 | ) | (1,118 | ) | ||||||
| Non-compensation expense related to noncontrolling interests (i) | (458 | ) | (604 | ) | (641 | ) | ||||||
| Non-compensation expense, as adjusted |
|
|
|
|||||||||
| Earnings From Operations | ||||||||||||
| Operating Income (loss) - U.S. GAAP Basis |
|
( |
) |
|
||||||||
| Other adjustments: | ||||||||||||
| Charges pertaining to cost saving initiatives | 26,322 | 102,576 | - | |||||||||
| Charges pertaining to staff reductions | - | - | 24,659 | |||||||||
| Revenue related to noncontrolling interests (i) | (4,322 | ) | (3,963 | ) | (4,439 | ) | ||||||
| Interest expense | 19,848 | 19,835 | 19,916 | |||||||||
| Expenses related to noncontrolling interests (i) | 1,579 | 1,535 | 1,721 | |||||||||
| Amortization of intangible assets related to acquisitions | 877 | 2,187 | 1,118 | |||||||||
| Earnings from operations, as adjusted |
|
|
|
|||||||||
|
Net Income attributable to |
||||||||||||
|
Net income (loss) attributable to |
|
( |
) |
|
||||||||
| Adjustments: | ||||||||||||
| Charges pertaining to cost saving initiatives | 26,322 | 102,576 | - | |||||||||
| Charges pertaining to staff reductions | - | - | 24,659 | |||||||||
| Tax (benefits) allocated to adjustments | (4,687 | ) | (15,542 | ) | (6,249 | ) | ||||||
| Amount attributable to LAZ-MD Holdings | (272 | ) | (1,340 | ) | (1,045 | ) | ||||||
| Adjustment for full exchange of exchangeable interests (j): | ||||||||||||
| Tax adjustment for full exchange | (24 | ) | (200 | ) | (475 | ) | ||||||
| Amount attributable to LAZ-MD Holdings | 464 | 1,498 | 2,370 | |||||||||
| Net income, as adjusted |
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| Diluted net income (loss) per share: | ||||||||||||
| U.S. GAAP Basis |
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( |
) |
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| Non-GAAP Basis, as adjusted |
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This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to comparable U.S. GAAP measures, see Notes to Financial Schedules.
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| Notes to Financial Schedules | |||
| (a) |
Selected Summary Financial Information are non-U.S. GAAP
("non-GAAP") measures. |
||
| (b) | A non-GAAP measure which excludes (i) gains/losses related to the changes in the fair value of investments held in connection with Lazard Fund Interests and other similar deferred compensation arrangements for which a corresponding equal amount is excluded from compensation & benefits expense, (ii) revenues related to non-controlling interests (see (i) below), and (iii) interest expense primarily related to corporate financing activities. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information) | ||
| (c) |
A non-GAAP measure which excludes (i) charges/credits related to the
changes in the fair value of the compensation liability recorded in
connection with Lazard Fund Interests and other similar deferred
compensation arrangements, (ii) compensation and benefits related to
noncontrolling interests (see (i) below), (iii) for the three month
periods ended |
||
| (d) |
A non-GAAP measure which excludes (i) amortization of intangible
assets related to acquisitions, (ii) expenses related to
noncontrolling interests (see (i) below), (iii) for the three month
periods ended |
||
| (e) |
A non-GAAP measure which excludes (i) amortization of intangible
assets related to acquisitions, (ii) interest expense primarily
related to corporate financing activities, (iii) revenues and
expenses related to noncontrolling interests (see (i) below), (iv)
for the three month periods ended |
||
| (f) | Represents earnings from operations as a percentage of operating revenue, and is a non-GAAP measure. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information) | ||
| (g) |
A non-GAAP measure which is adjusted to reflect the full conversion
of outstanding exchangeable interests held by members of LAZ-MD
Holdings and excludes (i) for the three month periods ended |
||
| (h) |
Effective tax rate is a non-GAAP measure which is computed based on
a quotient, the numerator of which is the provision for income taxes
of |
||
| (i) | Noncontrolling interests include revenue and expenses principally related to Edgewater, and is a non-GAAP measure. (See Reconciliation of U.S. GAAP to Selected Summary Financial Information) | ||
| (j) |
Represents a reversal of noncontrolling interests related to LAZ-MD
Holdings' ownership of |
||
| NM | Not meaningful | ||
Media:
judi.mackey@lazard.com
or
Investors:
kathryn.harmon@lazard.com
Source:
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