☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3487784 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
245 Park Avenue, New York, New York | 10167 | |
(Address of principal executive | (Zip Code) |
Title of each class: | Name of each exchange on which registered: | |||
Common Stock, $0.01 par value | The NASDAQ Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
ITEM 15. | EXHIBITS; FINANCIAL STATEMENT SCHEDULES |
10.21 |
10.22 | ||||
10.23 | ||||
10.24 | Form of Performance-Based Restricted Stock Unit Award Agreement for U.K. Executive Officers after January 1, 2021 |
31.1 | Rule 13a-14(a) /15d- 14(a) Certification |
31.2 | Rule 13a-14(a) /15d- 14(a) Certification |
31.3 | Rule 13a-14(a) /15d- 14(a) Certification |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
GLOBAL RANKING | ||||||
Rank | ETP Sponsor | AUM (in billions) | ||||
1 | iShares | $ | 2,703 | |||
2 | Vanguard | $ | 1,621 | |||
3 | State Street | $ | 919 | |||
4 | Invesco | $ | 349 | |||
5 | Nomura Group | $ | 237 | |||
6 | Charles Schwab | $ | 199 | |||
7 | Xtrackers | $ | 161 | |||
8 | First Trust | $ | 112 | |||
9 | Nikko | $ | 109 | |||
10 | Daiwa | $ | 105 | |||
11 | Lyxor | $ | 95 | |||
12 | UBS | $ | 83 | |||
13 | Amundi | $ | 78 | |||
14 | WisdomTree | $ | 67 |
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||
Period | (in thousands) | |||||||||||||||
October 1, 2020 to October 31, 2020 | — | $ | — | — | ||||||||||||
November 1, 2020 to November 30, 2020 | — | $ | — | — | ||||||||||||
December 1, 2020 to December 31, 2020 | 44,351 | $ | 4.93 | 44,351 | ||||||||||||
Total | 44,351 | $ | 4.93 | 44,351 | $ | 52,191 | ||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
Consolidated Statements of Operations Data: | ||||||||||||||||||||
Operating Revenues: | ||||||||||||||||||||
Advisory fees | $ | 250,182 | $ | 265,652 | $ | 271,104 | $ | 226,692 | $ | 218,217 | ||||||||||
Other income | 3,517 | 2,751 | 3,012 | 1,603 | 703 | |||||||||||||||
Total revenues | 253,699 | 268,403 | 274,116 | 228,295 | 218,920 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Compensation and benefits | 74,675 | 80,761 | 74,515 | 81,493 | 63,263 | |||||||||||||||
Fund management and administration | 60,515 | 61,502 | 56,686 | 42,144 | 41,083 | |||||||||||||||
Marketing and advertising | 11,128 | 12,163 | 13,884 | 14,402 | 15,643 | |||||||||||||||
Sales and business development | 10,579 | 18,276 | 17,153 | 13,811 | 12,537 | |||||||||||||||
Contractual gold payments | 16,811 | 13,226 | 8,512 | — | — | |||||||||||||||
Professional and consulting fees | 4,902 | 5,641 | 7,984 | 5,254 | 6,692 | |||||||||||||||
Occupancy, communications and equipment | 6,427 | 6,302 | 6,203 | 5,415 | 5,211 | |||||||||||||||
Depreciation and amortization | 1,021 | 1,045 | 1,301 | 1,395 | 1,305 | |||||||||||||||
Third-party distribution fees | 5,219 | 6,968 | 6,611 | 3,393 | 2,827 | |||||||||||||||
Acquisition and disposition-related costs | 416 | 902 | 11,454 | 4,832 | — | |||||||||||||||
Other | 6,924 | 8,083 | 8,534 | 7,068 | 6,909 | |||||||||||||||
Total operating expenses | 198,617 | 214,869 | 212,837 | 179,207 | 155,470 | |||||||||||||||
Operating income | 55,082 | 53,534 | 61,279 | 49,088 | 63,450 | |||||||||||||||
Other Income/(Expenses) | ||||||||||||||||||||
Interest expense | (9,668 | ) | (11,240 | ) | (7,962 | ) | — | — | ||||||||||||
(Loss)/gain on revaluation of deferred consideration – gold payments | (56,821 | ) | (11,293 | ) | 12,220 | — | — | |||||||||||||
Interest income | 744 | 3,332 | 3,093 | 2,861 | 1,111 | |||||||||||||||
Settlement gain | — | — | — | 6,909 | — | |||||||||||||||
Impairments | (22,752 | ) | (30,710 | ) | (17,386 | ) | — | (1,676 | ) | |||||||||||
Loss on extinguishment of debt | (2,387 | ) | — | — | — | — | ||||||||||||||
Acquisition payment | — | — | — | — | (6,738 | ) | ||||||||||||||
Other gains and losses, net | 580 | (3,502 | ) | (205 | ) | (666 | ) | (585 | ) | |||||||||||
(Loss)/income before taxes | (35,222 | ) | 121 | 51,039 | 58,192 | 55,562 | ||||||||||||||
Income tax expense | 433 | 10,546 | 14,406 | 30,993 | 29,407 | |||||||||||||||
Net (loss)/income | $ | (35,655 | ) | $ | (10,425 | ) | $ | 36,633 | $ | 27,199 | $ | 26,155 | ||||||||
(Loss)/earnings per share—diluted(1) | $ | (0.25 | ) | $ | (0.08 | ) | $ | 0.23 | $ | 0.20 | $ | 0.19 | ||||||||
Weighted average common shares—diluted(1) | 148,682 | 151,823 | 158,415 | 136,003 | 135,539 | |||||||||||||||
Cash dividends declared per common share | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.32 | $ | 0.32 |
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
Consolidated Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 73,425 | $ | 74,972 | $ | 77,784 | $ | 54,193 | $ | 92,722 | ||||||||||
Total assets | $ | 896,692 | $ | 935,207 | $ | 937,518 | $ | 254,985 | $ | 249,767 | ||||||||||
Convertible Notes and Debt | $ | 166,646 | $ | 175,956 | $ | 194,592 | $ | — | $ | — | ||||||||||
Deferred consideration – gold payments (total) | $ | 230,137 | $ | 173,024 | $ | 161,540 | $ | — | $ | — | ||||||||||
Total liabilities | $ | 497,858 | $ | 465,226 | $ | 446,614 | $ | 62,034 | $ | 48,423 | ||||||||||
Preferred stock – Series A Non-Voting Convertible | $ | 132,569 | $ | 132,569 | $ | 132,569 | $ | — | $ | — | ||||||||||
Stockholders’ equity | $ | 266,265 | $ | 337,412 | $ | 358,335 | $ | 192,951 | $ | 201,344 |
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
GLOBAL ETPs (in millions) | ||||||||||||
Beginning of period assets | $ | 63,615 | $ | 54,094 | $ | 48,936 | ||||||
Assets acquired/(sold) | (778 | ) | — | 17,641 | ||||||||
Inflows/(outflows) | (6 | ) | 596 | (4,432 | ) | |||||||
Market appreciation/(depreciation) | 5,020 | 9,196 | (8,006 | ) | ||||||||
Fund closures | (459 | ) | (271 | ) | (45 | ) | ||||||
End of period assets | $ | 67,392 | $ | 63,615 | $ | 54,094 | ||||||
Average assets during the period | $ | 61,158 | $ | 59,712 | $ | 56,397 | ||||||
Average advisory fee during the period | 0.41 | % | 0.45 | % | 0.48 | % | ||||||
Number of ETPs – end of the period | 309 | 367 | 537 | |||||||||
U.S. LISTED ETFs (in millions) | ||||||||||||
Beginning of period assets | $ | 40,600 | $ | 35,486 | $ | 46,827 | ||||||
Inflows/(outflows) | (1,253 | ) | (654 | ) | (5,169 | ) | ||||||
Market appreciation/(depreciation) | (609 | ) | 5,858 | (6,127 | ) | |||||||
Fund closures | (221 | ) | (90 | ) | (45 | ) | ||||||
End of period assets | $ | 38,517 | $ | 40,600 | $ | 35,486 | ||||||
Average assets during the period | $ | 34,304 | $ | 38,577 | $ | 42,241 | ||||||
Average advisory fee during the period | 0.41 | % | 0.44 | % | 0.48 | % | ||||||
Number of ETPs—end of period | 67 | 80 | 85 | |||||||||
INTERNATIONAL LISTED ETPs (in millions) | ||||||||||||
Beginning of period assets | $ | 23,015 | $ | 18,608 | $ | 2,109 | ||||||
Assets acquired/(sold) | (778 | ) | — | 17,641 | ||||||||
Inflows/(outflows) | 1,247 | 1,250 | 737 | |||||||||
Market appreciation/(depreciation) | 5,629 | 3,338 | (1,879 | ) | ||||||||
Fund closures | (238 | ) | (181 | ) | — | |||||||
End of period assets | $ | 28,875 | $ | 23,015 | $ | 18,608 | ||||||
Average assets during the period | $ | 26,854 | $ | 21,135 | $ | 14,156 | ||||||
Average advisory fee during the period | 0.40 | % | 0.45 | % | 0.48 | % | ||||||
Number of ETPs—end of period | 242 | 287 | 452 | |||||||||
PRODUCT CATEGORIES (in millions) | ||||||||||||
Commodity & Currency | ||||||||||||
Beginning of period assets | $ | 19,947 | $ | 15,830 | $ | 278 | ||||||
Assets acquired | — | — | 16,778 | |||||||||
Inflows/(outflows) | 587 | 1,147 | 484 | |||||||||
Market appreciation/(depreciation) | 5,513 | 2,970 | (1,710 | ) | ||||||||
End of period assets | $ | 26,047 | $ | 19,947 | $ | 15,830 | ||||||
Average assets during the period | $ | 23,807 | $ | 18,085 | $ | 11,334 | ||||||
U.S. Equity | ||||||||||||
Beginning of period assets | $ | 17,732 | $ | 13,211 | $ | 14,135 | ||||||
Inflows/(outflows) | 766 | 1,445 | 859 | |||||||||
Market appreciation/(depreciation) | (131 | ) | 3,076 | (1,783 | ) | |||||||
End of period assets | $ | 18,367 | $ | 17,732 | $ | 13,211 | ||||||
Average assets during the period | $ | 15,380 | $ | 15,846 | $ | 14,223 | ||||||
International Developed Equity | ||||||||||||
Beginning of period assets | $ | 13,011 | $ | 14,232 | $ | 25,495 | ||||||
Inflows/(outflows) | (2,840 | ) | (3,452 | ) | (7,903 | ) | ||||||
Market appreciation/(depreciation) | (757 | ) | 2,231 | (3,360 | ) | |||||||
End of period assets | $ | 9,414 | $ | 13,011 | $ | 14,232 | ||||||
Average assets during the period | $ | 9,499 | $ | 13,187 | $ | 20,352 |
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Emerging Market Equity | ||||||||||||
Beginning of period assets | $ | 6,400 | $ | 5,202 | $ | 5,798 | ||||||
Inflows/(outflows) | 1,700 | 618 | 311 | |||||||||
Market appreciation/(depreciation) | 439 | 580 | (907 | ) | ||||||||
End of period assets | $ | 8,539 | $ | 6,400 | $ | 5,202 | ||||||
Average assets during the period | $ | 6,056 | $ | 5,703 | $ | 5,673 | ||||||
Fixed Income | ||||||||||||
Beginning of period assets | $ | 3,585 | $ | 2,245 | $ | 703 | ||||||
Inflows/(outflows) | (286 | ) | 1,280 | 1,607 | ||||||||
Market appreciation/(depreciation) | 25 | 60 | (65 | ) | ||||||||
End of period assets | $ | 3,324 | $ | 3,585 | $ | 2,245 | ||||||
Average assets during the period | $ | 3,563 | $ | 3,572 | $ | 1,267 | ||||||
Leveraged & Inverse | ||||||||||||
Beginning of period assets | $ | 1,138 | $ | 1,059 | $ | 897 | ||||||
Assets acquired | — | — | 863 | |||||||||
Inflows/(outflows) | 197 | 55 | (214 | ) | ||||||||
Market appreciation/(depreciation) | 152 | 24 | (487 | ) | ||||||||
End of period assets | $ | 1,487 | $ | 1,138 | $ | 1,059 | ||||||
Average assets during the period | $ | 1,361 | $ | 1,174 | $ | 1,164 | ||||||
Alternatives | ||||||||||||
Beginning of period assets | $ | 358 | $ | 508 | $ | 473 | ||||||
Inflows/(outflows) | (125 | ) | (162 | ) | 76 | |||||||
Market appreciation/(depreciation) | (19 | ) | 12 | (41 | ) | |||||||
End of period assets | $ | 214 | $ | 358 | $ | 508 | ||||||
Average assets during the period | $ | 251 | $ | 440 | $ | 408 | ||||||
Closed ETPs | ||||||||||||
Beginning of period assets | $ | 1,444 | $ | 1,807 | $ | 1,157 | ||||||
Assets sold | (778 | ) | — | — | ||||||||
Inflows/(outflows) | (5 | ) | (335 | ) | 348 | |||||||
Market appreciation/(depreciation) | (202 | ) | 243 | 347 | ||||||||
Fund closures | (459 | ) | (271 | ) | (45 | ) | ||||||
End of period assets | $ | — | $ | 1,444 | $ | 1,807 | ||||||
Average assets during the period | $ | 1,241 | $ | 1,705 | $ | 1,976 | ||||||
Headcount | 217 | 208 | 228 |
Year Ended December 31, | Change | Percent Change | ||||||||||||||
2020 | 2019 | |||||||||||||||
Global AUM (in millions) | ||||||||||||||||
Average global AUM | $ | 61,158 | $ | 59,712 | $ | 1,446 | 2.4 | % | ||||||||
Operating Revenues (in thousands) | ||||||||||||||||
Advisory fees | $ | 250,182 | $ | 265,652 | $ | (15,470 | ) | (5.8 | %) | |||||||
Other income | 3,517 | 2,751 | 766 | 27.8 | % | |||||||||||
Total revenues | $ | 253,699 | $ | 268,403 | $ | (14,704 | ) | (5.5 | %) | |||||||
(in thousands) | Year Ended December 31, | Change | Percent Change | |||||||||||||
2020 | 2019 | |||||||||||||||
Compensation and benefits | $ | 74,675 | $ | 80,761 | $ | (6,086 | ) | (7.5 | %) | |||||||
Fund management and administration | 60,515 | 61,502 | (987 | ) | (1.6 | %) | ||||||||||
Marketing and advertising | 11,128 | 12,163 | (1,035 | ) | (8.5 | %) | ||||||||||
Sales and business development | 10,579 | 18,276 | (7,697 | ) | (42.1 | %) | ||||||||||
Contractual gold payments | 16,811 | 13,226 | 3,585 | 27.1 | % | |||||||||||
Professional and consulting fees | 4,902 | 5,641 | (739 | ) | (13.1 | %) | ||||||||||
Occupancy, communications and equipment | 6,427 | 6,302 | 125 | 2.0 | % | |||||||||||
Depreciation and amortization | 1,021 | 1,045 | (24 | ) | (2.3 | %) | ||||||||||
Third-party distribution fees | 5,219 | 6,968 | (1,749 | ) | (25.1 | %) | ||||||||||
Acquisition and disposition-related costs | 416 | 902 | (486 | ) | (53.9 | %) | ||||||||||
Other | 6,924 | 8,083 | (1,159 | ) | (14.3 | %) | ||||||||||
Total operating expenses | $ | 198,617 | $ | 214,869 | $ | (16,252 | ) | (7.6 | %) | |||||||
As a Percent of Revenues: | Year Ended December 31, | |||||||
2020 | 2019 | |||||||
Compensation and benefits | 29.4 | % | 30.1 | % | ||||
Fund management and administration | 23.9 | % | 22.9 | % | ||||
Marketing and advertising | 4.4 | % | 4.6 | % | ||||
Sales and business development | 4.2 | % | 6.8 | % |
As a Percent of Revenues: | Year Ended December 31, | |||||||
2020 | 2019 | |||||||
Contractual gold payments | 6.6 | % | 4.9 | % | ||||
Professional and consulting fees | 1.9 | % | 2.1 | % | ||||
Occupancy, communications and equipment | 2.5 | % | 2.4 | % | ||||
Depreciation and amortization | 0.4 | % | 0.4 | % | ||||
Third-party distribution fees | 2.1 | % | 2.6 | % | ||||
Acquisition and disposition-related costs | 0.2 | % | 0.3 | % | ||||
Other | 2.7 | % | 3.0 | % | ||||
Total operating expenses | 78.3 | % | 80.1 | % | ||||
Year Ended December 31, | Change | Percent Change | ||||||||||||||
(in thousands) | 2020 | 2019 | ||||||||||||||
Interest expense | $ | (9,668 | ) | $ | (11,240 | ) | $ | 1,572 | (14.0 | %) | ||||||
Loss on revaluation of deferred consideration | (56,821 | ) | (11,293 | ) | (45,528 | ) | 403.2 | % | ||||||||
Interest income | 744 | 3,332 | (2,588 | ) | (77.7 | %) | ||||||||||
Impairments | (22,752 | ) | (30,710 | ) | 7,958 | (25.9 | %) | |||||||||
Loss on extinguishment of debt | (2,387 | ) | — | (2,387 | ) | n/a | ||||||||||
Other gains and losses, net | 580 | (3,502 | ) | 4,082 | n/a | |||||||||||
Total other expenses, net | $ | (90,304 | ) | $ | (53,413 | ) | $ | (36,891 | ) | 69.1 | % | |||||
Year Ended December 31, | ||||||||
As a Percent of Revenues: | 2020 | 2019 | ||||||
Interest expense | (3.8 | %) | (4.2 | %) | ||||
Loss on revaluation of deferred consideration | (22.4 | %) | (4.2 | %) | ||||
Interest income | 0.3 | % | 1.2 | % | ||||
Impairments | (9.0 | %) | (11.4 | %) | ||||
Loss on extinguishment of debt | (0.9 | %) | — | |||||
Other gains and losses, net | 0.2 | % | (1.3 | %) | ||||
Total other expenses, net | (35.6 | %) | (19.9 | %) | ||||
Year Ended December 31, | Change | Percent Change | ||||||||||||||
2019 | 2018 | |||||||||||||||
Global AUM (in millions) | ||||||||||||||||
Average global AUM | $ | 59,712 | $ | 56,397 | $ | 3,315 | 5.9 | % | ||||||||
Operating Revenues (in thousands) | ||||||||||||||||
Advisory fees | $ | 265,652 | $ | 271,104 | $ | (5,452 | ) | (2.0 | %) | |||||||
Other income | 2,751 | 3,012 | (261 | ) | (8.7 | %) | ||||||||||
Total revenues | $ | 268,403 | $ | 274,116 | $ | (5,713 | ) | (2.1 | %) | |||||||
(in thousands) | Year Ended December 31, | Change | Percent Change | |||||||||||||
2019 | 2018 | |||||||||||||||
Compensation and benefits | $ | 80,761 | $ | 74,515 | $ | 6,246 | 8.4 | % | ||||||||
Fund management and administration | 61,502 | 56,686 | 4,816 | 8.5 | % | |||||||||||
Marketing and advertising | 12,163 | 13,884 | (1,721 | ) | (12.4 | %) | ||||||||||
Sales and business development | 18,276 | 17,153 | 1,123 | 6.5 | % | |||||||||||
Contractual gold payments | 13,226 | 8,512 | 4,714 | 55.4 | % | |||||||||||
Professional and consulting fees | 5,641 | 7,984 | (2,343 | ) | (29.3 | %) | ||||||||||
Occupancy, communications and equipment | 6,302 | 6,203 | 99 | 1.6 | % | |||||||||||
Depreciation and amortization | 1,045 | 1,301 | (256 | ) | (19.7 | %) | ||||||||||
Third-party distribution fees | 6,968 | 6,611 | 357 | 5.4 | % | |||||||||||
Acquisition and disposition-related costs | 902 | 11,454 | (10,552 | ) | (92.1 | %) | ||||||||||
Other | 8,083 | 8,534 | (451 | ) | (5.3 | %) | ||||||||||
Total operating expenses | $ | 214,869 | $ | 212,837 | $ | 2,032 | 1.0 | % | ||||||||
As a Percent of Revenues: | Year Ended December 31, | |||||||
2019 | 2018 | |||||||
Compensation and benefits | 30.1 | % | 27.2 | % | ||||
Fund management and administration | 22.9 | % | 20.7 | % | ||||
Marketing and advertising | 4.6 | % | 5.1 | % | ||||
Sales and business development | 6.8 | % | 6.2 | % | ||||
Contractual gold payments | 4.9 | % | 3.1 | % | ||||
Professional and consulting fees | 2.1 | % | 2.9 | % | ||||
Occupancy, communications and equipment | 2.4 | % | 2.3 | % | ||||
Depreciation and amortization | 0.4 | % | 0.4 | % | ||||
Third-party distribution fees | 2.6 | % | 2.4 | % | ||||
Acquisition and disposition-related costs | 0.3 | % | 4.2 | % | ||||
Other | 3.0 | % | 3.1 | % | ||||
Total operating expenses | 80.1 | % | 77.6 | % | ||||
Year Ended December 31, | Change | Percent Change | ||||||||||||||
(in thousands) | 2019 | 2018 | ||||||||||||||
Interest expense | $ | (11,240 | ) | $ | (7,962 | ) | $ | (3,278 | ) | 41.2 | % | |||||
(Loss)/gain on revaluation of deferred consideration | (11,293 | ) | 12,220 | (23,513 | ) | n/a | ||||||||||
Interest income | 3,332 | 3,093 | 239 | 7.7 | % | |||||||||||
Impairments | (30,710 | ) | (17,386 | ) | (13,324 | ) | 76.6 | % | ||||||||
Other losses, net | (3,502 | ) | (205 | ) | (3,297 | ) | 1,608.3 | % | ||||||||
Total other expenses, net | $ | (53,413 | ) | $ | (10,240 | ) | $ | (43,173 | ) | 421.6 | % | |||||
Year Ended December 31, | ||||||||
As a Percent of Revenues: | 2019 | 2018 | ||||||
Interest expense | (4.2 | %) | (2.9 | %) | ||||
(Loss)/gain on revaluation of deferred consideration | (4.2 | %) | 4.5 | % | ||||
Interest income | 1.2 | % | 1.1 | % | ||||
Impairments | (11.4 | %) | (6.3 | %) | ||||
Other losses, net | (1.3 | %) | (0.1 | %) | ||||
Total other expenses, net | (19.9 | %) | (3.7 | %) | ||||
(in thousands, except per share amounts) | Q4/20 | Q3/20 | Q2/20 | Q1/20 | Q4/19 | Q3/19 | Q2/19 | Q1/19 | ||||||||||||||||||||||||
Operating Revenues: | ||||||||||||||||||||||||||||||||
Advisory fees | $ | 66,105 | $ | 63,919 | $ | 57,208 | $ | 62,950 | $ | 68,179 | $ | 67,006 | $ | 65,627 | $ | 64,840 | ||||||||||||||||
Other income | 954 | 721 | 918 | 924 | 728 | 712 | 666 | 645 | ||||||||||||||||||||||||
Total revenues | 67,059 | 64,640 | 58,126 | 63,874 | 68,907 | 67,718 | 66,293 | 65,485 | ||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||
Compensation and benefits | 20,827 | 19,098 | 17,455 | 17,295 | 19,280 | 18,880 | 21,300 | 21,301 | ||||||||||||||||||||||||
Fund management and administration | 16,350 | 15,219 | 14,461 | 14,485 | 15,650 | 15,110 | 15,576 | 15,166 | ||||||||||||||||||||||||
Marketing and advertising | 3,715 | 2,996 | 1,949 | 2,468 | 3,551 | 3,022 | 2,910 | 2,680 | ||||||||||||||||||||||||
Sales and business development | 2,595 | 2,386 | 2,181 | 3,417 | 5,329 | 4,354 | 4,171 | 4,422 | ||||||||||||||||||||||||
Contractual gold payments | 4,449 | 4,539 | 4,063 | 3,760 | 3,516 | 3,502 | 3,110 | 3,098 | ||||||||||||||||||||||||
Professional and consulting fees | 1,322 | 950 | 1,357 | 1,273 | 1,604 | 1,259 | 1,296 | 1,482 | ||||||||||||||||||||||||
Occupancy, communications and equipment | 1,622 | 1,611 | 1,643 | 1,551 | 1,587 | 1,549 | 1,548 | 1,618 | ||||||||||||||||||||||||
Depreciation and amortization | 261 | 253 | 251 | 256 | 253 | 259 | 264 | 269 | ||||||||||||||||||||||||
Third-party distribution fees | 1,291 | 1,233 | 1,340 | 1,355 | 1,146 | 1,503 | 1,919 | 2,400 | ||||||||||||||||||||||||
Acquisition and disposition-related costs | — | — | 33 | 383 | 366 | 190 | 33 | 313 | ||||||||||||||||||||||||
Other | 1,720 | 1,611 | 1,596 | 1,997 | 1,816 | 1,959 | 2,255 | 2,053 | ||||||||||||||||||||||||
Total operating expenses | 54,152 | 49,896 | 46,329 | 48,240 | 54,098 | 51,587 | 54,382 | 54,802 | ||||||||||||||||||||||||
Operating income | 12,907 | 14,744 | 11,797 | 15,634 | 14,809 | 16,131 | 11,911 | 10,683 | ||||||||||||||||||||||||
Other Income/(Expenses): | ||||||||||||||||||||||||||||||||
Interest expense | (2,694 | ) | (2,511 | ) | (2,044 | ) | (2,419 | ) | (2,606 | ) | (2,832 | ) | (2,910 | ) | (2,892 | ) | ||||||||||||||||
(Loss)/gain on revaluation of deferred consideration | (22,385 | ) | (8,870 | ) | (23,358 | ) | (2,208 | ) | (5,354 | ) | (6,306 | ) | (4,037 | ) | 4,404 | |||||||||||||||||
Interest income | 351 | 111 | 119 | 163 | 936 | 799 | 818 | 779 | ||||||||||||||||||||||||
Impairments | — | (3,080 | ) | — | (19,672 | ) | (30,138 | ) | — | — | (572 | ) | ||||||||||||||||||||
Loss on extinguishment of debt | — | — | (2,387 | ) | — | — | — | — | — | |||||||||||||||||||||||
Other gains and losses, net | 524 | 744 | 1,819 | (2,507 | ) | (2 | ) | 843 | 284 | (4,627 | ) | |||||||||||||||||||||
(Loss)/income before income taxes | (11,297 | ) | 1,138 | (14,054 | ) | (11,009 | ) | (22,355 | ) | 8,635 | 6,066 | 7,775 | ||||||||||||||||||||
Income tax expense/(benefit) | 2,200 | 1,408 | (804 | ) | (2,371 | ) | 3,525 | 4,483 | 3,587 | (1,049 | ) | |||||||||||||||||||||
Net (loss)/income | ($ | 13,497 | ) | $ | (270) | ($ | 13,250 | ) | ($ | 8,638 | ) | ($ | 25,880 | ) | $ | 4,152 | $ | 2,479 | $ | 8,824 | ||||||||||||
(Loss)/earnings per share - basic | ($ | 0.10 | ) | ($ | 0.01 | ) | ($ | 0.09 | ) | ($ | 0.06 | ) | ($ | 0.17 | ) | $ | 0.02 | $ | 0.01 | $ | 0.05 | |||||||||||
(Loss)/earnings per share - diluted | ($ | 0.10 | ) | ($ | 0.01 | ) | ($ | 0.09 | ) | ($ | 0.06 | ) | ($ | 0.17 | ) | $ | 0.02 | $ | 0.01 | $ | 0.05 | |||||||||||
Dividends per common share | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | ||||||||||||||||
Q4/20 | Q3/20 | Q2/20 | Q1/20 | Q4/19 | Q3/19 | Q2/19 | Q1/19 | |||||||||||||||||||||||||
Percent of Revenues | ||||||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||
Advisory fees | 98.6 | % | 98.9 | % | 98.4 | % | 98.6 | % | 98.9 | % | 98.9 | % | 99.0 | % | 99.0 | % | ||||||||||||||||
Other income | 1.4 | % | 1.1 | % | 1.6 | % | 1.4 | % | 1.1 | % | 1.1 | % | 1.0 | % | 1.0 | % | ||||||||||||||||
Total revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||||
Compensation and benefits | 31.1 | % | 29.6 | % | 30.0 | % | 27.1 | % | 28.0 | % | 27.9 | % | 32.1 | % | 32.5 | % | ||||||||||||||||
Fund management and administration | 24.4 | % | 23.5 | % | 24.9 | % | 22.7 | % | 22.7 | % | 22.3 | % | 23.5 | % | 23.2 | % | ||||||||||||||||
Marketing and advertising | 5.5 | % | 4.6 | % | 3.3 | % | 3.9 | % | 5.2 | % | 4.5 | % | 4.4 | % | 4.1 | % | ||||||||||||||||
Sales and business development | 3.9 | % | 3.7 | % | 3.8 | % | 5.3 | % | 7.7 | % | 6.5 | % | 6.3 | % | 6.8 | % | ||||||||||||||||
Contractual gold payments | 6.6 | % | 7.0 | % | 7.0 | % | 5.9 | % | 5.1 | % | 5.2 | % | 4.7 | % | 4.7 | % | ||||||||||||||||
Professional and consulting fees | 2.0 | % | 1.5 | % | 2.3 | % | 2.0 | % | 2.3 | % | 1.9 | % | 1.9 | % | 2.3 | % | ||||||||||||||||
Occupancy, communications and equipment | 2.4 | % | 2.5 | % | 2.8 | % | 2.4 | % | 2.3 | % | 2.2 | % | 2.3 | % | 2.4 | % | ||||||||||||||||
Depreciation and amortization | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.4 | % | ||||||||||||||||
Third-party distribution fees | 1.9 | % | 1.9 | % | 2.3 | % | 2.1 | % | 1.7 | % | 2.2 | % | 2.9 | % | 3.7 | % | ||||||||||||||||
Acquisition and disposition-related costs | n/a | n/a | 0.1 | % | 0.6 | % | 0.5 | % | 0.2 | % | 0.1 | % | 0.5 | % | ||||||||||||||||||
Other | 2.6 | % | 2.5 | % | 2.8 | % | 3.1 | % | 2.6 | % | 2.9 | % | 3.4 | % | 3.1 | % | ||||||||||||||||
Total operating expenses | 80.8 | % | 77.2 | % | 79.7 | % | 75.5 | % | 78.5 | % | 76.2 | % | 82.0 | % | 83.7 | % | ||||||||||||||||
Operating income | 19.2 | % | 22.8 | % | 20.3 | % | 24.5 | % | 21.5 | % | 23.8 | % | 18.0 | % | 16.3 | % | ||||||||||||||||
Other Income/(Expenses) | ||||||||||||||||||||||||||||||||
Interest expense | (4.0 | %) | (3.9 | %) | (3.5 | %) | (3.8 | %) | (3.8 | %) | (4.2 | %) | (4.4 | %) | (4.4 | %) | ||||||||||||||||
(Loss)/gain on revaluation of deferred consideration | (33.3 | %) | (13.7 | %) | (40.2 | %) | (3.5 | %) | (7.8 | %) | (9.3 | %) | (6.1 | %) | 6.7 | % | ||||||||||||||||
Interest income | 0.5 | % | 0.2 | % | 0.2 | % | 0.2 | % | 1.4 | % | 1.2 | % | 1.2 | % | 1.2 | % | ||||||||||||||||
Impairments | n/a | (4.8 | %) | n/a | (30.7 | %) | (43.7 | %) | n/a | n/a | (0.9 | %) | ||||||||||||||||||||
Loss on extinguishment of debt | n/a | n/a | (4.1 | %) | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||||||||
Other gains and losses, net | 0.8 | % | 1.2 | % | 3.1 | % | (3.9 | %) | 0.0 | % | 1.2 | % | 0.4 | % | (7.0 | %) | ||||||||||||||||
(Loss)/income before income taxes | (16.8 | %) | 1.8 | % | (24.2 | %) | (17.2 | %) | (32.4 | %) | 12.7 | % | 9.1 | % | 11.9 | % | ||||||||||||||||
Income tax expense/(benefit) | 3.3 | % | 2.2 | % | (1.4 | %) | (3.7 | %) | 5.1 | % | 6.6 | % | 5.4 | % | (1.6 | %) | ||||||||||||||||
Net (loss)/income | (20.1 | %) | (0.4 | %) | (22.8 | %) | (13.5 | %) | (37.5 | %) | 6.1 | % | 3.7 | % | 13.5 | % | ||||||||||||||||
Q4/20 | Q3/20 | Q2/20 | Q1/20 | Q4/19 | Q3/19 | Q2/19 | Q1/19 | |||||||||||||||||||||||||
Operating Statistics | ||||||||||||||||||||||||||||||||
GLOBAL ETPs (in millions) | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 60,710 | $ | 57,666 | $ | 50,347 | $ | 63,615 | $ | 59,981 | $ | 60,389 | $ | 59,112 | $ | 54,094 | ||||||||||||||||
Assets sold | — | — | — | (778 | ) | — | — | — | — | |||||||||||||||||||||||
Inflows/(outflows) | 881 | (477 | ) | 126 | (536 | ) | 390 | (698 | ) | 343 | 561 | |||||||||||||||||||||
Market appreciation/(depreciation) | 5,898 | 3,567 | 7,489 | (11,934 | ) | 3,247 | 471 | 934 | 4,544 | |||||||||||||||||||||||
Fund closures | (97 | ) | (46 | ) | (296 | ) | (20 | ) | (3 | ) | (181 | ) | — | (87 | ) | |||||||||||||||||
End of period assets | $ | 67,392 | $ | 60,710 | $ | 57,666 | $ | 50,347 | $ | 63,615 | $ | 59,981 | $ | 60,389 | $ | 59,112 | ||||||||||||||||
Average assets during the period | $ | 64,125 | $ | 61,216 | $ | 55,708 | $ | 60,189 | $ | 61,858 | $ | 60,306 | $ | 58,575 | $ | 57,683 | ||||||||||||||||
Average advisory fee during the period | 0.41 | % | 0.42 | % | 0.41 | % | 0.42 | % | 0.44 | % | 0.44 | % | 0.45 | % | 0.46 | % | ||||||||||||||||
Number of ETPs – end of the period | 309 | 305 | 311 | 331 | 349 | 348 | 536 | 534 | ||||||||||||||||||||||||
U.S. LISTED ETFs (in millions) | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 33,310 | $ | 31,362 | $ | 28,920 | $ | 40,600 | $ | 37,592 | $ | 39,220 | $ | 39,366 | $ | 35,486 | ||||||||||||||||
Inflows/(outflows) | 919 | 575 | (1,474 | ) | (1,273 | ) | 563 | (1,198 | ) | (166 | ) | 147 | ||||||||||||||||||||
Market appreciation/(depreciation) | 4,385 | 1,373 | 4,030 | (10,397 | ) | 2,448 | (430 | ) | 20 | 3,820 | ||||||||||||||||||||||
Fund closures | (97 | ) | — | (114 | ) | (10 | ) | (3 | ) | — | — | (87 | ) | |||||||||||||||||||
End of period assets | $ | 38,517 | $ | 33,310 | $ | 31,362 | $ | 28,920 | $ | 40,600 | $ | 37,592 | $ | 39,220 | $ | 39,366 | ||||||||||||||||
Average assets during the period | $ | 36,002 | $ | 32,984 | $ | 30,626 | $ | 36,940 | 39,094 | $ | 37,857 | $ | 38,945 | $ | 38,061 | |||||||||||||||||
Average advisory fee during the period | 0.40 | % | 0.41 | % | 0.41 | % | 0.43 | % | 0.44 | % | 0.44 | % | 0.44 | % | 0.45 | % | ||||||||||||||||
Number of ETFs – end of the period | 67 | 67 | 67 | 77 | 80 | 80 | 79 | 77 | ||||||||||||||||||||||||
INTERNATIONAL LISTED ETPs (in millions) | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 27,400 | $ | 26,304 | $ | 21,427 | $ | 23,015 | $ | 22,389 | $ | 21,169 | $ | 19,746 | $ | 18,608 | ||||||||||||||||
Assets sold | — | — | — | (778 | ) | — | — | — | — | |||||||||||||||||||||||
Inflows/(outflows) | (38 | ) | (1,052 | ) | 1,600 | 737 | (173 | ) | 500 | 509 | 414 | |||||||||||||||||||||
Market appreciation/(depreciation) | 1,513 | 2,194 | 3,459 | (1,537 | ) | 799 | 901 | 914 | 724 | |||||||||||||||||||||||
Fund closures | — | (46 | ) | (182 | ) | (10 | ) | — | (181 | ) | — | — | ||||||||||||||||||||
End of period assets | $ | 28,875 | $ | 27,400 | $ | 26,304 | $ | 21,427 | $ | 23,015 | $ | 22,389 | $ | 21,169 | $ | 19,746 | ||||||||||||||||
Average assets during the period | $ | 28,123 | $ | 28,232 | $ | 25,082 | $ | 23,249 | $ | 22,764 | $ | 22,449 | $ | 19,630 | $ | 19,622 | ||||||||||||||||
Average advisory fee during the period | 0.42 | % | 0.42 | % | 0.41 | % | 0.40 | % | 0.44 | % | 0.44 | % | 0.46 | % | 0.47 | % | ||||||||||||||||
Number of ETPs – end of the period | 242 | 238 | 244 | 254 | 269 | 268 | 457 | 457 | ||||||||||||||||||||||||
PRODUCT CATEGORIES | ||||||||||||||||||||||||||||||||
Commodity & Currency | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 25,122 | $ | 24,191 | $ | 19,748 | $ | 19,947 | $ | 19,599 | $ | 18,075 | $ | 16,545 | $ | 15,830 | ||||||||||||||||
Inflows/(outflows) | (254 | ) | (1,106 | ) | 1,325 | 622 | (250 | ) | 524 | 624 | 249 | |||||||||||||||||||||
Market appreciation/(depreciation) | 1,179 | 2,037 | 3,118 | (821 | ) | 598 | 1,000 | 906 | 466 | |||||||||||||||||||||||
End of period assets | $ | 26,047 | $ | 25,122 | $ | 24,191 | $ | 19,748 | $ | 19,947 | $ | 19,599 | $ | 18,075 | $ | 16,545 | ||||||||||||||||
Average assets during the period | $ | 25,676 | $ | 25,878 | $ | 22,964 | $ | 20,302 | $ | 19,770 | $ | 19,438 | $ | 16,508 | $ | 16,568 | ||||||||||||||||
U.S. Equity | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 15,612 | $ | 13,997 | $ | 12,151 | $ | 17,732 | $ | 16,281 | $ | 15,889 | $ | 15,747 | $ | 13,211 | ||||||||||||||||
Inflows/(outflows) | 395 | 897 | (241 | ) | (285 | ) | 460 | 239 | 107 | 639 | ||||||||||||||||||||||
Market appreciation/(depreciation) | 2,360 | 718 | 2,087 | (5,296 | ) | 991 | 153 | 35 | 1,897 | |||||||||||||||||||||||
End of period assets | $ | 18,367 | $ | 15,612 | $ | 13,997 | $ | 12,151 | $ | 17,732 | $ | 16,281 | $ | 15,889 | $ | 15,747 | ||||||||||||||||
Average assets during the period | $ | 17,050 | $ | 15,141 | $ | 13,302 | $ | 16,011 | $ | 16,969 | $ | 15,872 | $ | 15,677 | $ | 14,810 | ||||||||||||||||
International Developed Market Equity | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 8,621 | $ | 8,839 | $ | 8,659 | $ | 13,011 | $ | 12,169 | $ | 13,313 | $ | 14,056 | $ | 14,232 | ||||||||||||||||
Inflows/(outflows) | (191 | ) | (587 | ) | (965 | ) | (1,097 | ) | (135 | ) | (1,009 | ) | (733 | ) | (1,575 | ) | ||||||||||||||||
Market appreciation/(depreciation) | 984 | 369 | 1,145 | (3,255 | ) | 977 | (135 | ) | (10 | ) | 1,399 | |||||||||||||||||||||
End of period assets | $ | 9,414 | $ | 8,621 | $ | 8,839 | $ | 8,659 | $ | 13,011 | $ | 12,169 | $ | 13,313 | $ | 14,056 | ||||||||||||||||
Average assets during the period | $ | 8,930 | $ | 8,835 | $ | 8,779 | $ | 11,453 | $ | 12,607 | $ | 12,379 | $ | 13,593 | $ | 14,197 | ||||||||||||||||
Emerging Market Equity | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 5,979 | $ | 5,413 | $ | 4,600 | $ | 6,400 | $ | 5,699 | $ | 5,966 | $ | 5,626 | $ | 5,202 | ||||||||||||||||
Inflows/(outflows) | 1,399 | 257 | (25 | ) | 69 | 195 | 176 | 346 | (99 | ) | ||||||||||||||||||||||
Market appreciation/(depreciation) | 1,161 | 309 | 838 | (1,869 | ) | 506 | (443 | ) | (6 | ) | 523 | |||||||||||||||||||||
End of period assets | $ | 8,539 | $ | 5,979 | $ | 5,413 | $ | 4,600 | $ | 6,400 | $ | 5,699 | $ | 5,966 | $ | 5,626 | ||||||||||||||||
Average assets during the period | $ | 7,249 | $ | 5,917 | $ | 5,129 | $ | 5,919 | $ | 5,991 | $ | 5,729 | $ | 5,674 | $ | 5,411 |
Q4/20 | Q3/20 | Q2/20 | Q1/20 | Q4/19 | Q3/19 | Q2/19 | Q1/19 | |||||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 3,630 | $ | 3,530 | $ | 3,527 | $ | 3,585 | $ | 3,337 | $ | 3,946 | $ | 3,692 | $ | 2,245 | ||||||||||||||||
Inflows/(outflows) | (330 | ) | 76 | (53 | ) | 21 | 218 | (594 | ) | 235 | 1,421 | |||||||||||||||||||||
Market appreciation/(depreciation) | 24 | 24 | 56 | (79 | ) | 30 | (15 | ) | 19 | 26 | ||||||||||||||||||||||
End of period assets | $ | 3,324 | $ | 3,630 | $ | 3,530 | $ | 3,527 | $ | 3,585 | $ | 3,337 | $ | 3,946 | $ | 3,692 | ||||||||||||||||
Average assets during the period | $ | 3,472 | $ | 3,605 | $ | 3,523 | $ | 3,653 | $ | 3,540 | $ | 3,731 | $ | 3,796 | $ | 3,184 | ||||||||||||||||
Leveraged & Inverse | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 1,430 | $ | 1,350 | $ | 896 | $ | 1,138 | $ | 1,121 | $ | 1,125 | $ | 1,204 | $ | 1,059 | ||||||||||||||||
Inflows/(outflows) | (118 | ) | (9 | ) | 312 | 12 | (22 | ) | 12 | (55 | ) | 120 | ||||||||||||||||||||
Market appreciation/(depreciation) | 175 | 89 | 142 | (254 | ) | 39 | (16 | ) | (24 | ) | 25 | |||||||||||||||||||||
End of period assets | $ | 1,487 | $ | 1,430 | $ | 1,350 | $ | 896 | $ | 1,138 | $ | 1,121 | $ | 1,125 | $ | 1,204 | ||||||||||||||||
Average assets during the period | $ | 1,436 | $ | 1,482 | $ | 1,169 | $ | 1,147 | $ | 1,178 | $ | 1,146 | $ | 1,179 | $ | 1,190 | ||||||||||||||||
Alternatives | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 229 | $ | 225 | $ | 244 | $ | 358 | $ | 418 | $ | 433 | $ | 472 | $ | 508 | ||||||||||||||||
Inflows/(outflows) | (26 | ) | (4 | ) | (29 | ) | (66 | ) | (61 | ) | (17 | ) | (38 | ) | (46 | ) | ||||||||||||||||
Market appreciation/(depreciation) | 11 | 8 | 10 | (48 | ) | 1 | 2 | (1 | ) | 10 | ||||||||||||||||||||||
End of period assets | $ | 214 | $ | 229 | $ | 225 | $ | 244 | $ | 358 | $ | 418 | $ | 433 | $ | 472 | ||||||||||||||||
Average assets during the period | $ | 224 | $ | 226 | $ | 226 | $ | 328 | $ | 398 | $ | 428 | $ | 463 | $ | 472 | ||||||||||||||||
Closed ETPs | ||||||||||||||||||||||||||||||||
Beginning of period assets | $ | 87 | $ | 121 | $ | 522 | $ | 1,444 | $ | 1,357 | $ | 1,642 | $ | 1,770 | $ | 1,807 | ||||||||||||||||
Assets sold | — | — | — | (778 | ) | — | — | — | — | |||||||||||||||||||||||
Inflows/(outflows) | 6 | (1 | ) | (198 | ) | 188 | (15 | ) | (29 | ) | (143 | ) | (148 | ) | ||||||||||||||||||
Market appreciation/(depreciation) | 4 | 13 | 93 | (312 | ) | 105 | (75 | ) | 15 | 198 | ||||||||||||||||||||||
Fund closures | (97 | ) | (46 | ) | (296 | ) | (20 | ) | (3 | ) | (181 | ) | — | (87 | ) | |||||||||||||||||
End of period assets | $ | — | $ | 87 | $ | 121 | $ | 522 | $ | 1,444 | $ | 1,357 | $ | 1,642 | $ | 1,770 | ||||||||||||||||
Average assets during the period | $ | 88 | $ | 132 | $ | 616 | $ | 1,376 | $ | 1,405 | $ | 1,583 | $ | 1,685 | $ | 1,851 | ||||||||||||||||
Headcount | 217 | 211 | 214 | 210 | 208 | 212 | 214 | 216 | ||||||||||||||||||||||||
Note: Previously issued statistics may be restated due to fund closures and trade adjustments Source: WisdomTree |
Years Ended | ||||||||||||
Adjusted Net Income and Diluted Earnings per Share: | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Net (loss)/income, as reported | $ | (35,655 | ) | $ | (10,425 | ) | $ | 36,633 | ||||
Add back/(deduct): Loss/(gain) on revaluation of deferred consideration | 56,821 | 11,293 | (12,220 | ) | ||||||||
Add back: Impairments, net of income taxes | 21,998 | 30,710 | 14,048 | |||||||||
Deduct: Gain recognized upon sale of Canadian ETF business | (2,877 | ) | — | — | ||||||||
Deduct: Release of a deferred tax asset valuation allowance recognized on interest carryforwards arising from debt previously outstanding in the United Kingdom | (2,615 | ) | — | — | ||||||||
Add back: Loss on extinguishment of debt, net of income taxes | 1,910 | |||||||||||
Deduct: Gain arising from an adjustment to the estimated fair value of consideration received from the exit of investment in AdvisorEngine | (1,093 | ) | — | — | ||||||||
Add back: Interest expense from the amortization of discount arising from the bifurcation of the conversion option embedded in the convertible notes, net of income taxes | 642 | — | — | |||||||||
Add back/(deduct): Tax shortfalls/(windfalls) upon vesting and exercise of stock-based compensation awards | 691 | 1,219 | (534 | ) | ||||||||
Add back: Acquisition and disposition-related costs, net of income taxes | 383 | 787 | 10,508 | |||||||||
Add back: Severance expense, net of income taxes | — | 2,715 | 1,526 | |||||||||
Adjusted net income | $ | 40,205 | $ | 36,299 | $ | 49,961 | ||||||
Deduct: Income distributed to participating securities | (2,216 | ) | (2,163 | ) | (1,595 | ) | ||||||
Deduct: Undistributed income allocable to participating securities | (2,214 | ) | (1,679 | ) | (2,478 | ) | ||||||
Adjusted net income available to common stockholders | $ | 35,775 | $ | 32,457 | $ | 45,888 | ||||||
Weighted average diluted shares, excluding participating securities (See Note 23 to our Consolidated Financial Statements) | 148,688 | 151,975 | 147,290 | |||||||||
Adjusted earnings per share - diluted | $ | 0.24 | $ | 0.21 | $ | 0.31 | ||||||
December 31, 2020 | December 31, 2019 | |||||||
Balance Sheet Data (in thousands) : | ||||||||
Cash and cash equivalents | $ | 73,425 | $ | 74,972 | ||||
Securities owned, at fair value | 34,895 | 17,319 | ||||||
Accounts receivable | 29,455 | 26,838 | ||||||
Securities held-to-maturity | 451 | 16,863 | ||||||
Total: Liquid assets | 138,226 | 135,992 | ||||||
Less: Total current liabilities | (73,999 | ) | (79,041 | ) | ||||
Less: Regulatory capital requirement – certain international subsidiaries | (10,745 | ) | (12,312 | ) | ||||
Subtotal | 53,482 | 44,639 | ||||||
Plus: Revolving credit facility – available capacity | — | (1) | 27,908 | |||||
Total: Available liquidity | $ | 53,482 | $ | 72,547 | ||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Cash Flow Data (in thousands) : | ||||||||||||
Operating cash flows | $ | 29,395 | $ | 46,832 | $ | 37,468 | ||||||
Investing cash flows | 28,382 | (7,005 | ) | (181,779 | ) | |||||||
Financing cash flows | (60,179 | ) | (43,566 | ) | 169,199 | |||||||
Foreign exchange rate effect | 855 | 927 | (1,297 | ) | ||||||||
(Decrease)/increase in cash and cash equivalents | $ | (1,547 | ) | $ | (2,812 | ) | $ | 23,591 | ||||
Total | Payments Due by Period | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |||||||||||||||||
Convertible Notes (1) | $ | 175,250 | $ | — | $ | 175,250 | $ | — | $ | — | ||||||||||
Deferred consideration – gold payments (2) | 230,137 | 17,374 | 30,878 | 26,480 | 155,405 | |||||||||||||||
Operating leases | 26,693 | 3,135 | 5,916 | 6,185 | 11,457 | |||||||||||||||
Total | $ | 432,080 | $ | 20,509 | $ | 212,044 | $ | 32,665 | $ | 166,862 | ||||||||||
December 31, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 73,425 | $ | 74,972 | ||||
Securities owned, at fair value (including $23,932 and $16,886 invested in WisdomTree ETFs at December 31, 2020 and 2019, respectively) | 34,895 | 17,319 | ||||||
Accounts receivable (including $26,884 and $25,667 due from related parties at December 31, 2020 and 2019, respectively) | 29,455 | 26,838 | ||||||
Prepaid expenses | 3,827 | 3,724 | ||||||
Other current assets | 259 | 207 | ||||||
Total current assets | 141,861 | 123,060 | ||||||
Fixed assets, net | 7,579 | 8,127 | ||||||
Notes receivable, net (Note 9) | 0 | 28,172 | ||||||
Indemnification receivable (Note 24) | 27,016 | 32,101 | ||||||
Securities held-to-maturity | 451 | 16,863 | ||||||
Deferred tax assets, net | 8,063 | 7,398 | ||||||
Investments (Note 10) | 8,112 | 11,192 | ||||||
Right of use assets – operating leases (Note 16) | 16,327 | 18,161 | ||||||
Goodwill (Note 26) | 85,856 | 85,856 | ||||||
Intangible assets (Note 26) | 601,247 | 603,294 | ||||||
Other noncurrent assets | 180 | 983 | ||||||
Total assets | $ | 896,692 | $ | 935,207 | ||||
Liabilities and stockholders’ equity | ||||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Fund management and administration payable | $ | 19,564 | $ | 22,021 | ||||
Compensation and benefits payable | 22,803 | 26,501 | ||||||
Deferred consideration – gold payments (Note 12) | 17,374 | 13,953 | ||||||
Securities sold, but not yet purchased, at fair value | 0 | 582 | ||||||
Operating lease liabilities (Note 16) | 3,135 | 3,682 | ||||||
Income taxes payable | 916 | 3,372 | ||||||
Accounts payable and other liabilities | 10,207 | 8,930 | ||||||
Total current liabilities | 73,999 | 79,041 | ||||||
Convertible notes (Note 14) | 166,646 | — | ||||||
Debt (Note 13) | 0 | 175,956 | ||||||
Deferred consideration – gold payments (Note 12) | 212,763 | 159,071 | ||||||
Operating lease liabilities (Note 16) | 17,434 | 19,057 | ||||||
Other noncurrent liabilities (Note 24) | 27,016 | 32,101 | ||||||
Total liabilities | 497,858 | 465,226 | ||||||
Preferred stock – Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding; redemption value of $72,667 and $71,630 at December 31, 2020 and 2019, respectively) (Note 15) | 132,569 | 132,569 | ||||||
Contingencies (Note ) | 0 | 0 | ||||||
Stockholders’ equity | ||||||||
Preferred stock, par value $0.01; 2,000 shares authorized: | 0— | 0— | ||||||
Common stock, par value $0.01; 250,000 shares authorized; issued and outstanding: 148,716 and 155,264 at December 31, 2020 and 2019, respectively | 1,487 | 1,553 | ||||||
Additional paid-in capital | 317,075 | 352,658 | ||||||
Accumulated other comprehensive income | 1,102 | 945 | ||||||
Accumulated deficit | (53,399 | ) | (17,744 | ) | ||||
Total stockholders’ equity | 266,265 | 337,412 | ||||||
Total liabilities and stockholders’ equity | $ | 896,692 | $ | 935,207 | ||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Operating Revenues: | ||||||||||||
Advisory fees | $ | 250,182 | $ | 265,652 | $ | 271,104 | ||||||
Other income | 3,517 | 2,751 | 3,012 | |||||||||
Total revenues | 253,699 | 268,403 | 274,116 | |||||||||
Operating Expenses: | ||||||||||||
Compensation and benefits | 74,675 | 80,761 | 74,515 | |||||||||
Fund management and administration | 60,515 | 61,502 | 56,686 | |||||||||
Marketing and advertising | 11,128 | 12,163 | 13,884 | |||||||||
Sales and business development | 10,579 | 18,276 | 17,153 | |||||||||
Contractual gold payments (Note 12) | 16,811 | 13,226 | 8,512 | |||||||||
Professional and consulting fees | 4,902 | 5,641 | 7,984 | |||||||||
Occupancy, communications and equipment | 6,427 | 6,302 | 6,203 | |||||||||
Depreciation and amortization | 1,021 | 1,045 | 1,301 | |||||||||
Third-party distribution fees | 5,219 | 6,968 | 6,611 | |||||||||
Acquisition and disposition-related costs | 416 | 902 | 11,454 | |||||||||
Other | 6,924 | 8,083 | 8,534 | |||||||||
Total operating expenses | 198,617 | 214,869 | 212,837 | |||||||||
Operating income | 55,082 | 53,534 | 61,279 | |||||||||
Other Income/(Expenses): | ||||||||||||
Interest expense | (9,668 | ) | (11,240 | ) | (7,962 | ) | ||||||
(Loss)/gain on revaluation of deferred consideration – gold payments (Note 12) | (56,821 | ) | (11,293 | ) | 12,220 | |||||||
Interest income | 744 | 3,332 | 3,093 | |||||||||
Impairments (Note 27) | (22,752 | ) | (30,710 | ) | (17,386 | ) | ||||||
Loss on extinguishment of debt (Note 13) | (2,387 | ) | — | — | ||||||||
Other gains and losses, net | 580 | (3,502 | ) | (205 | ) | |||||||
(Loss)/income before income taxes | (35,222 | ) | 121 | 51,039 | ||||||||
Income tax expense | 433 | 10,546 | 14,406 | |||||||||
Net (loss)/income | $ | (35,655 | ) | $ | (10,425 | ) | $ | 36,633 | ||||
(Loss)/earnings per share—basic | $ | (0.25 | ) | $ | (0.08 | ) | $ | 0.23 | ||||
(Loss)/earnings per share—diluted | $ | (0.25 | ) | $ | (0.08 | ) | $ | 0.23 | ||||
Weighted-average common shares—basic | 148,682 | 151,823 | 146,645 | |||||||||
Weighted-average common shares—diluted | 148,682 | 151,823 | 158,415 | |||||||||
Cash dividends declared per common share | $ | 0.12 | $ | 0.12 | $ | 0.12 | ||||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Net (loss)/income | $ | (35,655 | ) | $ | (10,425 | ) | $ | 36,633 | ||||
Other comprehensive income | ||||||||||||
Reclassification of foreign currency translation adjustment to other gains and losses, net, upon the sale of WisdomTree Asset Management Canada, Inc. (“WTAMC” or “Canadian ETF business”) (Note 3) | (167 | ) | — | — | ||||||||
Reclassification of foreign currency translation adjustment to other gains and losses, net, upon the liquidation of WisdomTree Japan Inc. (Note 3) | — | (397 | ) | — | ||||||||
Change in unrealized gains/(losses) on available-for-sale | — | — | 477 | |||||||||
Foreign currency translation adjustment, net of income taxes | 324 | 875 | (301 | ) | ||||||||
Other comprehensive income | 157 | 478 | 176 | |||||||||
Comprehensive (loss)/income | $ | (35,498 | ) | $ | (9,947 | ) | $ | 36,809 | ||||
Common Stock | Additional Paid-In Capital | Accumulated Other | Accumulated Deficit | Total | ||||||||||||||||||||
Shares Issued | Par Value | Comprehensive Income/(Loss) | ||||||||||||||||||||||
Balance—January 1, 2018 | 136,996 | $ | 1,370 | $ | 216,006 | $ | 291 | $ | (24,716 | ) | $ | 192,951 | ||||||||||||
Common stock issued (Note 3) | 15,250 | 153 | 137,097 | — | — | 137,250 | ||||||||||||||||||
Restricted stock issued and vesting of restricted stock units, net | 759 | 9 | (9 | ) | — | — | — | |||||||||||||||||
Shares repurchased | (334 | ) | — | (2,885 | ) | — | — | (2,885 | ) | |||||||||||||||
Exercise of stock options, net | 531 | — | 191 | — | — | 191 | ||||||||||||||||||
Stock-based compensation | — | — | 13,255 | — | — | 13,255 | ||||||||||||||||||
Other comprehensive income | — | — | — | 176 | — | 176 | ||||||||||||||||||
Dividends | — | — | — | — | (19,236 | ) | (19,236 | ) | ||||||||||||||||
Net income | — | — | — | — | 36,633 | 36,633 | ||||||||||||||||||
Balance—December 31, 2018 | 153,202 | $ | 1,532 | $ | 363,655 | $ | 467 | $ | (7,319 | ) | $ | 358,335 | ||||||||||||
Restricted stock issued and vesting of restricted stock units, net | 2,347 | 22 | (22 | ) | — | — | — | |||||||||||||||||
Shares repurchased | (370 | ) | (1 | ) | (2,340 | ) | — | — | (2,341 | ) | ||||||||||||||
Exercise of stock options, net | 85 | — | 160 | — | — | 160 | ||||||||||||||||||
Stock-based compensation | — | — | 11,590 | — | — | 11,590 | ||||||||||||||||||
Other comprehensive income | — | — | — | 478 | — | 478 | ||||||||||||||||||
Dividends | — | — | (20,385 | ) | — | — | (20,385 | ) | ||||||||||||||||
Net loss | — | — | — | — | (10,425 | ) | (10,425 | ) | ||||||||||||||||
Balance—December 31, 2019 | 155,264 | $ | 1,553 | $ | 352,658 | $ | 945 | $ | (17,744 | ) | $ | 337,412 | ||||||||||||
Restricted stock issued and vesting of restricted stock units, net | 1,569 | 15 | (15 | ) | — | — | — | |||||||||||||||||
Shares repurchased | (8,234 | ) | (82 | ) | (31,115 | ) | — | — | (31,197 | ) | ||||||||||||||
Exercise of stock options, net | 117 | 1 | 291 | — | — | 292 | ||||||||||||||||||
Stock-based compensation | — | — | 11,706 | — | — | 11,706 | ||||||||||||||||||
Allocation of equity component related to convertible notes, net of issuance costs of $157 and deferred taxes of $1,239 | — | — | 3,663 | — | — | 3,663 | ||||||||||||||||||
Other comprehensive income | — | — | — | 157 | — | 157 | ||||||||||||||||||
Dividends | — | — | (20,113 | ) | — | — | (20,113 | ) | ||||||||||||||||
Net loss | — | — | — | — | (35,655 | ) | (35,655 | ) | ||||||||||||||||
Balance—December 31, 2020 | 148,716 | $ | 1,487 | $ | 317,075 | $ | 1,102 | $ | (53,399 | ) | $ | 266,265 | ||||||||||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss)/income | $ | (35,655 | ) | $ | (10,425 | ) | $ | 36,633 | ||||
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | ||||||||||||
Advisory fees received in gold and other precious metals | (62,416 | ) | (49,887 | ) | (32,238 | ) | ||||||
Loss/(gain) on revaluation of deferred consideration – gold payments | 56,821 | 11,293 | (12,220 | ) | ||||||||
Impairments | 22,752 | 30,710 | 17,386 | |||||||||
Contractual gold payments | 16,811 | 13,226 | 8,512 | |||||||||
Stock-based compensation | 11,706 | 11,590 | 13,255 | |||||||||
Amortization of right of use asset | 3,182 | 3,174 | — | |||||||||
Gain on sale – Canadian ETF business | (2,877 | ) | — | — | ||||||||
Loss on extinguishment of debt | 2,387 | — | — | |||||||||
Deferred income taxes | (2,192 | ) | (349 | ) | (6,083 | ) | ||||||
Amortization of issuance costs – convertible notes | 1,710 | — | — | |||||||||
Amortization of issuance costs – former credit facility | 1,328 | 2,888 | 2,087 | |||||||||
Depreciation and amortization | 1,021 | 1,045 | 1,301 | |||||||||
Paid-in-kind | — | (2,498 | ) | (1,974 | ) | |||||||
Other | (1,169 | ) | (173 | ) | 798 | |||||||
Changes in operating assets and liabilities: | ||||||||||||
Securities owned, at fair value | (17,576 | ) | (8,446 | ) | (7,182 | ) | ||||||
Accounts receivable | (193 | ) | (19 | ) | 3,804 | |||||||
Prepaid expenses | (159 | ) | 738 | 427 | ||||||||
Gold and other precious metals | 45,087 | 35,886 | 25,604 | |||||||||
Other assets | 107 | 172 | 984 | |||||||||
Fund management and administration payable | (2,264 | ) | (476 | ) | 221 | |||||||
Compensation and benefits payable | (3,804 | ) | 7,885 | (16,050 | ) | |||||||
Income taxes payable | (2,441 | ) | 4,524 | 5,706 | ||||||||
Securities sold, but not yet purchased, at fair value | (582 | ) | (1,116 | ) | 748 | |||||||
Operating lease liabilities | (3,517 | ) | (3,587 | ) | — | |||||||
Accounts payable and other liabilities | 1,328 | 677 | (4,251 | ) | ||||||||
Net cash provided by operating activities | 29,395 | 46,832 | 37,468 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of fixed assets | (472 | ) | (47 | ) | (71 | ) | ||||||
Proceeds from held-to-maturity | 16,488 | 3,244 | 1,107 | |||||||||
Proceeds from the sale of the Company’s financial interests in AdvisorEngine Inc. | 9,592 | — | — | |||||||||
Proceeds from the sale of Canadian ETF business, net | 2,774 | — | — | |||||||||
Purchase of investments | — | (8,112 | ) | — | ||||||||
Funding of notes receivable | — | (2,090 | ) | (8,000 | ) | |||||||
Proceeds from sales and maturities of debt securities available-for-sale | — | — | 64,498 | |||||||||
Cash paid for acquisition, net of cash acquired | — | — | (239,313 | ) | ||||||||
Net cash provided by/(used in) investing activities | 28,382 | (7,005 | ) | (181,779 | ) | |||||||
Cash flows from financing activities: | ||||||||||||
Repayment of debt | (179,000 | ) | (21,000 | ) | — | |||||||
Shares repurchased | (31,197 | ) | (2,341 | ) | (2,885 | ) | ||||||
Dividends paid | (20,113 | ) | (20,385 | ) | (19,236 | ) | ||||||
Convertible notes issuance costs | (5,411 | ) | — | — | ||||||||
Proceeds from the issuance of convertible notes (Note 14) | 175,250 | — | — | |||||||||
Proceeds from exercise of stock options | 292 | 160 | 191 | |||||||||
Credit facility issuance costs | — | — | (8,690 | ) | ||||||||
Preferred stock issuance costs | — | — | (181 | ) | ||||||||
Proceeds from the issuance of debt | — | — | 200,000 | |||||||||
Net cash (used in)/provided by financing activities | (60,179 | ) | (43,566 | ) | 169,199 | |||||||
Increase/(decrease) in cash flow due to changes in foreign exchange rate | 855 | 927 | (1,297 | ) | ||||||||
Net (decrease)/increase in cash and cash equivalents | (1,547 | ) | (2,812 | ) | 23,591 | |||||||
Cash and cash equivalents—beginning of year | 74,972 | 77,784 | 54,193 | |||||||||
Cash and cash equivalents—end of year | $ | 73,425 | $ | 74,972 | $ | 77,784 | ||||||
Year Ended December 31, | ||||||||||||
Supplemental disclosure of cash flow information: | 2020 | 2019 | 2018 | |||||||||
Cash paid for taxes | $ | 10,131 | $ | 10,060 | $ | 14,398 | ||||||
Cash paid for interest | $ | 7,088 | $ | 8,037 | $ | 5,577 | ||||||
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
WTAMC | $ | 428 | $ | 2,786 | $ | 3,925 | ||||||
WisdomTree Japan Inc. (“WTJ”) (1) | — | 550 | 4,520 | |||||||||
Total | $ | 428 | $ | 3,336 | $ | 8,445 | ||||||
December 31, 2020 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||
Cash equivalents | $ | 660 | $ | 660 | $ | — | $ | 0 | ||||||||
Securities owned, at fair value | ||||||||||||||||
ETFs | 24,165 | 24,165 | — | — | ||||||||||||
Pass-through GSEs | 8,613 | — | 8,613 | — | ||||||||||||
Corporate bonds | 2,117 | — | 2,117 | — | ||||||||||||
Total | $ | 35,555 | $ | 24,825 | $ | 10,730 | $ | 0 | ||||||||
Non-recurring fair value measurements: | ||||||||||||||||
AdvisorEngine Inc. (“AdvisorEngine”) – Financial interests (1) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Thesys Group, Inc. (“Thesys”) – Series Y Preferred Stock (1) | 0 | 0 | 0 | 0 | ||||||||||||
Total | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Liabilities: | ||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||
Deferred consideration (Note 12) | $ | 230,137 | $ | 0 | $ | 0 | $ | 230,137 | ||||||||
Non-recurring fair value measurements: | ||||||||||||||||
Convertible notes (2) | $ | 170,191 | $ | — | $ | 170,191 | $ | — | ||||||||
December 31, 2019 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||
Cash equivalents | $ | 317 | $ | 317 | $ | — | $ | — | ||||||||
Securities owned, at fair value | ||||||||||||||||
ETFs | 17,319 | 17,319 | — | — | ||||||||||||
Total | $ | 17,636 | $ | 17,636 | $ | — | $ | — | ||||||||
Non-recurring fair value measurements: | ||||||||||||||||
AdvisorEngine Inc. – Financial interests (1) | $ | 28,172 | — | — | $ | 28,172 | ||||||||||
Liabilities: | ||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||
Deferred consideration (Note 12) | $ | 173,024 | $ | — | $ | — | $ | 173,024 | ||||||||
Securities sold, but not yet purchased | 582 | 582 | — | — | ||||||||||||
Total | $ | 173,606 | $ | 582 | $ | 0 | $ | 173,024 | ||||||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Deferred consideration (Note 12) | ||||||||
Beginning balance | $ | 173,024 | $ | 161,540 | ||||
Net realized losses (1) | 16,811 | 13,226 | ||||||
Net unrealized losses (2) | 56,821 | 11,293 | ||||||
Settlements | (16,519 | ) | (13,035 | ) | ||||
Ending balance | $ | 230,137 | $ | 173,024 | ||||
December 31, 2020 | December 31, 2019 | |||||||
Securities Owned | ||||||||
Trading securities | $ | 34,895 | $ | 17,319 | ||||
Securities Sold, but not yet Purchased | ||||||||
Trading securities | $ | 0 | $ | 582 | ||||
December 31, 2020 | December 31, 2019 | |||||||
Debt instruments: Pass-through GSEs (amortized cost) | $ | 451 | $ | 16,863 | ||||
December 31, | ||||||||
2020 | 2019 | |||||||
Cost/amortized cost | $ | 451 | $ | 16,863 | ||||
Gross unrealized gains | 30 | 38 | ||||||
Gross unrealized losses | (12 | ) | (297 | ) | ||||
Fair value | $ | 469 | $ | 16,604 | ||||
December 31, | ||||||||
2020 | 2019 | |||||||
Due within one year | $ | 0 | $ | — | ||||
Due one year through five years | — | 2,000 | ||||||
Due five years through ten years | — | 7,494 | ||||||
Due over ten years | 451 | 7,369 | ||||||
Total | $ | 451 | $ | 16,863 | ||||
December 31, 2020 | December 31, 2019 | |||||||||||||||
Amortized Cost, plus Accrued Interest | Net Carrying Value | Amortized Cost, plus Accrued Interest | Net Carrying Value | |||||||||||||
Unsecured convertible note | $ | 0 | $ | 0 | $ | 2,126 | $ | 2,126 | ||||||||
Unsecured non-convertible note | 0 | 0 | 31,184 | 26,046 | ||||||||||||
Subtotal—Notes receivable | 0 | 0 | 33,310 | 28,172 | ||||||||||||
Preferred stock | 0 | 0 | 25,000 | — | ||||||||||||
Total | $ | 0 | $ | 0 | $ | 58,310 | $ | 28,172 | (1) | |||||||
December 31, 2020 | December 31, 2019 | |||||||
Securrency, Inc. – Preferred stock | $ | 8,112 | $ | 8,112 | ||||
Thesys – Preferred stock | — | 3,080 | ||||||
Total | $ | 8,112 | $ | 11,192 | ||||
December 31, | ||||||||
2020 | 2019 | |||||||
Equipment | $ | 2,836 | $ | 2,330 | ||||
Furniture and fixtures | 2,225 | 2,218 | ||||||
Leasehold improvements | 11,012 | 10,989 | ||||||
Less: accumulated depreciation and amortization | (8,494 | ) | (7,410 | ) | ||||
Total | $ | 7,579 | $ | 8,127 | ||||
December 31, 2020 | December 31, 2019 | |||||||
Forward-looking gold price (low) – per ounce | $ | 1,903 | $ | 1,535 | ||||
Forward-looking gold price (high) – per ounce | $ | 2,662 | $ | 2,328 | ||||
Forward-looking gold price (weighted average) – per ounce | $ | 2,117 | $ | 1,757 | ||||
Discount rate | 9.0 | % | 10.0 | % | ||||
Perpetual growth rate | 0.9 | % | 1.5 | % |
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Contractual Gold Payments | $ | 16,811 | $ | 13,226 | ||||
Contractual Gold Payments – gold ounces paid | 9,500 | 9,500 | ||||||
Loss on revaluation of deferred consideration – gold payments (1) | $ | (56,821 | ) | $ | (11,293 | ) |
December 31, 2020 | December 31, 2019 | |||||||||||||||
Term Loan | Revolver | Term Loan | Revolver | |||||||||||||
Amount borrowed | $ | 179,000 | $ | 0 | $ | 200,000 | $ | — | ||||||||
Amounts repaid | (179,000 | ) | 0 | (21,000 | ) | — | ||||||||||
Amounts outstanding | — | — | 179,000 | — | ||||||||||||
Unamortized issuance costs | — | — | (3,044 | ) | 671 | |||||||||||
Carrying amount | $ | — | $ | — | $ | 175,956 | $ | 671 | ||||||||
Effective interest rate | 4.15 | % | n/a | 5.32 | % | n/a | ||||||||||
Total | Additional Notes | Existing Notes | ||||||||||
Principal amount | $ | 175,000 | $ | 25,000 | $ | 150,000 | ||||||
Plus: Premium on Additional Notes | 250 | 250 | — | |||||||||
Gross proceeds | 175,250 | 25,250 | 150,000 | |||||||||
Less: Unamortized discount and issuance costs (1) | (8,604 | ) | (1,490 | ) | (7,114 | ) | ||||||
Carrying amount | $ | 166,646 | $ | 23,760 | $ | 142,886 | ||||||
Effective interest rate (2) | 6.29 | % | 6.37 | % | 6.28 | % | ||||||
December 31, 2020 | December 31, 2019 | |||||||
Issuance of Preferred Shares | $ | 132,750 | $ | 132,750 | ||||
Less: Issuance costs | (181 | ) | (181 | ) | ||||
Preferred Shares – carrying value | $ | 132,569 | $ | 132,569 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Lease cost: | ||||||||
Operating lease cost | $ | 3,182 | $ | 3,174 | ||||
Short-term lease cost | 1,227 | 1,426 | ||||||
Total lease cost | $ | 4,409 | $ | 4,600 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Other information: | ||||||||
Cash paid for amounts included in the measurement of operating liabilities (operating leases) | $ | 3,517 | $ | 3,587 | ||||
Right-of-use | n/a | n/a | ||||||
Weighted-average remaining lease term (in years) – operating leases | 8.6 | 9.4 | ||||||
Weighted-average discount rate – operating leases | 6.3 | % | 6.3 | % | ||||
2021 | $ | 3,135 | ||
2022 | 2,958 | |||
2023 | 2,958 | |||
2024 | 3,037 | |||
2025 | 3,148 | |||
2026 and thereafter | 11,457 | |||
Total future minimum lease payments (undiscounted) | $ | 26,693 | ||
Amounts recognized in the Company’s Consolidated Balance Sheet | ||||
Lease liability – short term | $ | 3,135 | ||
Lease liability – long term | 17,434 | |||
Subtotal | 20,569 | |||
Difference between undiscounted and discounted cash flows | 6,124 | |||
Total future minimum lease payments (undiscounted) | $ | 26,693 | ||
December 31, 2020 | December 31, 2019 | |||||||
Carrying Amount – Assets (Securrency) | ||||||||
Preferred stock (Note 10) | $ | 8,112 | $ | 8,112 | ||||
Carrying Amount – Assets (AdvisorEngine) | ||||||||
Unsecured convertible notes receivable | — | $ | 2,126 | |||||
Unsecured non-convertible note receivable | — | 26,046 | ||||||
Preferred stock | — | — | ||||||
Total carrying amount (Note 8) | $ | — | $ | 28,172 | ||||
Total carrying amount – Assets | $ | 8,112 | $ | 36,284 | ||||
Maximum exposure to loss | $ | 8,112 | $ | 36,284 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Revenues from contracts with customers: | ||||||||
Advisory fees | $ | 250,182 | $ | 265,652 | ||||
Other | 3,517 | 2,751 | ||||||
Total operating revenues | $ | 253,699 | $ | 268,403 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Revenues from contracts with customers: | ||||||||
United States | $ | 142,074 | $ | 170,827 | ||||
Jersey | 106,848 | 90,422 | ||||||
Ireland | 4,412 | 4,714 | ||||||
Canada (Note 3) | 365 | 2,440 | ||||||
Total operating revenues | $ | 253,699 | $ | 268,403 | ||||
December 31, | ||||||||
2020 | 2019 | |||||||
Receivable from WTT | $ | 13,030 | $ | 14,765 | ||||
Receivable from ManJer Issuers | 11,693 | 9,036 | ||||||
Receivable from WMAI and WTI | 2,125 | 1,559 | ||||||
Receivable from WTCS | 36 | 80 | ||||||
Receivable from WTAMC (Note 3) | — | 227 | ||||||
Total | $ | 26,884 | $ | 25,667 | ||||
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Advisory services provided to WTT | $ | 141,079 | $ | 169,483 | $ | 203,031 | ||||||
Advisory services provided to ManJer Issuers | 97,986 | 82,224 | 54,601 | |||||||||
Advisory services provided to WMAI and WTI | 10,124 | 10,499 | 10,448 | |||||||||
Advisory services provided to WTCS | 628 | 1,006 | 1,267 | |||||||||
Advisory services provided to WTAMC | 365 | 2,440 | 1,757 | |||||||||
Total | $ | 250,182 | $ | 265,652 | $ | 271,104 | ||||||
December 31, 2020 | ||||||||
Unrecognized Stock- Based Compensation | Weighted-Average Remaining Vesting Period (Years) | |||||||
Employees and directors | $ | 9,776 | 1.28 |
Options | Weighted-Average Exercise Price | |||||||
Outstanding January 1, 2018 | 1,158,828 | $ | 2.75 | |||||
Granted | — | — | ||||||
Forfeitures/expirations | — | — | ||||||
Exercised | (588,291 | ) | 1.19 | |||||
Outstanding at December 31, 2018 | 570,537 | $ | 4.36 | |||||
Granted | — | — | ||||||
Forfeitures/expirations | (1 | ) | 6.50 | |||||
Exercised | (85,000 | ) | 0.70 | |||||
Options | Weighted-Average Exercise Price | |||||||
Outstanding at December 31, 2019 | 485,536 | $ | 4.80 | |||||
Granted | — | — | ||||||
Forfeitures/expirations | (63,536 | ) | 2.49 | |||||
Exercised | (117,000 | ) | 4.81 | |||||
Outstanding at December 31, 2020 (1) | 305,000 | $ | 5.68 | |||||
Options Outstanding and Exercisable | ||||||||||||
Range of Exercise Prices | Shares | Weighted- Average Remaining Life (Years) | Weighted- Average Exercise Price | |||||||||
$5.05 | 190,000 | 0.1 | $ | 5.05 | ||||||||
$6.42 – $6.82 | 67,500 | 0.4 | 6.47 | |||||||||
$7.01 – $7.30 | 47,500 | 0.8 | 7.07 | |||||||||
305,000 | 0.3 | $ | 5.68 | |||||||||
RSAs | RSUs | PRSUs (1) | ||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||
Unvested Balance at January 1, 2018 | 1,816,666 | $ | 11.75 | 5,678 | $ | 10.40 | — | $ | — | |||||||||||||||
Granted | 903,231 | 11.77 | 7,152 | 12.21 | — | — | ||||||||||||||||||
Vested | (618,516 | ) | 12.67 | (1,890 | ) | 10.40 | — | — | ||||||||||||||||
Forfeited | (144,279 | ) | 11.83 | (1,446 | ) | 11.97 | — | — | ||||||||||||||||
Unvested Balance at December 31, 2018 | 1,957,102 | $ | 11.47 | 9,494 | $ | 11.52 | — | $ | — | |||||||||||||||
Granted | 2,794,703 | 6.16 | 35,283 | 6.45 | 270,872 | (2) | 6.24 | |||||||||||||||||
Vested | (1,053,980 | ) | 11.25 | (5,499 | ) | 9.85 | — | — | ||||||||||||||||
Forfeited | (453,267 | ) | 9.09 | — | — | (38,262 | ) | 6.24 | ||||||||||||||||
Unvested Balance at December 31, 2019 | 3,244,558 | $ | 7.29 | 39,278 | $ | 7.20 | 232,610 | $ | 6.24 | |||||||||||||||
Granted | 1,653,186 | 3.80 | 32,901 | 3.82 | 117,013 | (2) | 3.11 | |||||||||||||||||
Vested | (1,206,879 | ) | 8.13 | (27,130 | ) | 7.45 | — | — | ||||||||||||||||
Forfeited | (110,122 | ) | 4.79 | (5,641 | ) | 5.39 | (8,311 | ) | 6.24 | |||||||||||||||
Unvested Balance at December 31, 2020 | 3,580,743 | $ | 5.38 | 39,408 | $ | 4.46 | 341,312 | $ | 5.17 | |||||||||||||||
Granted in 2020 | Granted in 2019 | |||||||
Historical stock price volatility (low) | 21 | % | 22 | % | ||||
Historical stock price volatility (high) | 36 | % | 42 | % | ||||
Historical stock price volatility (average) | 26 | % | 28 | % | ||||
Risk free interest rate | 1.47 | % | 2.56 | % | ||||
Expected dividend yield | 0.0 | % | 0.0 | % |
Years Ended December 31, | ||||
2020 | 2019 | 2018 | ||
$974 | $966 | $1,051 | ||
Years Ended December 31, | ||||||||||||
Basic (Loss)/Earnings per Share | 2020 | 2019 | 2018 | |||||||||
Net (loss)/income | $ | (35,655 | ) | $ | (10,425 | ) | $ | 36,633 | ||||
Less: Income distributed to participating securities | (2,216 | ) | (2,163 | ) | (1,595 | ) | ||||||
Less: Undistributed income allocable to participating securities | — | — | (1,409 | ) | ||||||||
Net (loss)/income available to common stockholders – Basic EPS | $ | (37,871 | ) | $ | (12,588 | ) | $ | 33,629 | ||||
Weighted average common shares (in thousands) | 148,682 | 151,823 | 146,645 | |||||||||
Basic (loss)/earnings per share | $ | (0.25 | ) | $ | (0.08) | $ | 0.23 | |||||
Years Ended December 31, | ||||||||||||
Diluted (Loss)/Earnings per Share | 2020 | 2019 | 2018 | |||||||||
Net (loss)/income available to common stockholders | $ | (37,871 | ) | $ | (12,588 | ) | $ | 33,629 | ||||
Add back: Undistributed income allocable to participating securities | — | — | 1,409 | |||||||||
Less: Reallocation of undistributed income allocable to participating securities considered potentially dilutive | — | — | (1,403 | ) | ||||||||
Net (loss)/income available to common stockholders – Diluted EPS | $ | (37,871 | ) | $ | (12,588 | ) | $ | 33,635 | ||||
Weighted Average Diluted Shares (in thousands) : | ||||||||||||
Weighted average common shares | 148,682 | 151,823 | 146,645 | |||||||||
Dilutive effect of common stock equivalents, excluding participating securities | — | — | 645 | |||||||||
Weighted average diluted shares, excluding participating securities (in thousands) | 148,682 | 151,823 | 147,290 | |||||||||
Diluted (loss)/earnings per share | $ | (0.25 | ) | $ | (0.08 | ) | $ | 0.23 | ||||
Years Ended December 31, | ||||||||||||
Reconciliation of Weighted Average Diluted Shares (in thousands) | 2020 | 2019 | 2018 | |||||||||
Weighted average diluted shares as disclosed on the Consolidated Statements of O perations | 148,682 | (1) | 151,823 | (1) | 158,415 | |||||||
Less: Participating securities: | ||||||||||||
Weighted average shares of common stock issuable upon conversion of the Preferred Shares (Note 15) | — | — | (10,709 | ) | ||||||||
Potentially dilutive restricted stock awards | — | — | (416 | ) | ||||||||
Weighted average diluted shares used to calculate diluted (loss)/earnings per share as disclosed in the table above | 148,682 | (1) | 151,823 | (1) | 147,290 | |||||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
U.S. | $ | (5,187 | ) | $ | 6,774 | $ | 43,677 | |||||
Foreign | (30,035 | ) | (6,653 | ) | 7,362 | |||||||
Total | $ | (35,222 | ) | $ | 121 | $ | 51,039 | |||||
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Current: | ||||||||||||
Federal | $ | 3,670 | $ | 10,311 | $ | 15,805 | ||||||
State and local | 832 | 2,271 | 3,202 | |||||||||
Foreign | (1,877 | ) | (1,687 | ) | 1,482 | |||||||
$ | 2,625 | $ | 10,895 | $ | 20,489 | |||||||
Deferred: | ||||||||||||
Federal | $ | 60 | $ | (246 | ) | $ | (5,318 | ) | ||||
State and local | 13 | (54 | ) | (1,077 | ) | |||||||
Foreign | (2,265 | ) | (49 | ) | 312 | |||||||
$ | (2,192 | ) | $ | (349 | ) | $ | (6,083 | ) | ||||
Income tax expense | $ | 433 | $ | 10,546 | $ | 14,406 | ||||||
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
U.S. federal statutory income tax | $ | (7,397 | ) | $ | 25 | $ | 10,718 | |||||
Loss/(gain) on revaluation of deferred consideration (1) | 11,929 | 2,378 | (2,570 | ) | ||||||||
Decrease in unrecognized tax benefits, net | (5,661 | ) | (3,893 | ) | — | |||||||
Change in valuation allowance – Capital losses | 4,448 | 7,555 | 794 | |||||||||
Change in valuation allowance – Foreign net operating losses (“NOLs”) and interest carryforwards | (2,018 | ) | 3,997 | 3,510 | ||||||||
Foreign operations | (3,342 | ) | (3,561 | ) | (1,041 | ) | ||||||
Stock-based compensation tax (windfalls)/shortfalls | 1,485 | 1,198 | (543 | ) | ||||||||
Change in tax-related indemnification assets, net | 1,189 | 740 | — | |||||||||
Non-taxable gain on sale – Canadian ETF business | (740 | ) | — | — | ||||||||
Non-deductible executive compensation | 399 | 1,608 | 4 | |||||||||
Blended state income tax rate, net of federal benefit | (171 | ) | 237 | 1,406 | ||||||||
Non-deductible acquisition and disposition-related costs | — | — | 1,506 | |||||||||
Other differences, net | 312 | 262 | 622 | |||||||||
Income tax expense | $ | 433 | $ | 10,546 | $ | 14,406 | ||||||
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Federal | $ | 4,470 | $ | 6,990 | $ | 10,710 | ||||||
State and local | 1,353 | 1,818 | 2,498 | |||||||||
Foreign | 4,308 | 1,252 | 1,190 | |||||||||
$10,131 | $10,060 | $14,398 | ||||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
Deferred tax assets: | ||||||||
Capital losses | $ | 16,596 | $ | 8,226 | ||||
Operating lease liabilities | 4,953 | 5,529 | ||||||
Accrued expenses | 3,507 | 4,054 | ||||||
Interest carryforwards | 2,235 | 2,615 | ||||||
NOLs – Foreign | 2,167 | 6,721 | ||||||
Stock-based compensation | 1,922 | 1,754 | ||||||
Goodwill and intangible assets | 1,466 | 1,671 |
NOLs – U.S. | 510 | 642 | ||||||
Outside basis differences | 122 | 123 | ||||||
Other | 111 | 218 | ||||||
Deferred tax assets | 33,589 | 31,553 | ||||||
Deferred tax liabilities: | ||||||||
Right of use assets – operating leases | 3,927 | 4,400 | ||||||
Fixed assets and prepaid assets | 1,261 | 1,326 | ||||||
Allocated equity component of convertible notes | 1,022 | — | ||||||
Foreign currency translation adjustment | 293 | — | ||||||
Unremitted earnings – International subsidiaries | 138 | — | ||||||
Unrealized gains | — | 744 | ||||||
Deferred tax liabilities | 6,641 | 6,470 | ||||||
Total deferred tax assets less deferred tax liabilities | 26,948 | 25,083 | ||||||
Less: Valuation allowance | (18,885 | ) | (17,685 | ) | ||||
Deferred tax assets, net | $ | 8,063 | $ | 7,398 | ||||
Total | Unrecognized Tax Benefits | Interest Penalties | ||||||||||
Balance on January 1, 2019 | $ | 34,876 | $ | 28,101 | $ | 6,775 | ||||||
Decrease - Lapse of statute of limitations | (4,309 | ) | (2,999 | ) | (1,310 | ) | ||||||
Increases | 416 | — | 416 | |||||||||
Foreign currency translation (1) | 1,118 | 896 | 222 | |||||||||
Balance at December 31, 2019 | $ | 32,101 | $ | 25,998 | $ | 6,103 | ||||||
Decrease - Lapse of statute of limitations | (5,981 | ) | (4,620 | ) | (1,361 | ) | ||||||
Increases | 320 | — | 320 | |||||||||
Foreign currency translation (1) | 576 | 472 | 104 | |||||||||
Balance at December 31, 2020 | $ | 27,016 | $ | 21,850 | $ | 5,166 | ||||||
Total | ||||
Balance at January 1, 2020 | $ | 85,856 | ||
Changes | 0 | |||
Balance at December 31, 2020 | $ | 85,856 | ||
Advisory Agreements (ETFS) | Advisory Agreements (Questrade AUM) | Total | ||||||||||
Balance at January 1, 2020 | $ | 601,247 | $ | 2,047 | $ | 603,294 | ||||||
Decreases (1) | — | (1,992 | ) | (1,992 | ) | |||||||
Foreign currency translation | — | (55 | ) | (55 | ) | |||||||
Balance at December 31, 2020 | $ | 601,247 | $ | — | $ | 601,247 | ||||||
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
AdvisorEngine – Financial interests (Note 8) | $ | 19,672 | $ | 30,138 | $ | — | ||||||
GCC – Intangible asset | — | — | 9,953 | |||||||||
AdvisorEngine – Option | — | — | 3,278 | |||||||||
Thesys – Series Y Preferred (Note 10) | 3,080 | — | 3,829 | |||||||||
WisdomTree Japan | — | 572 | 326 | |||||||||
Total | $ | 22,752 | $ | 30,710 | $ | 17,386 | ||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31 | Sept. 30 | June 30 | Mar. 31 | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | |||||||||||||||||||||||||
2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||||||||||||
Total revenues | $ | 67,059 | $ | 64,640 | $ | 58,126 | $ | 63,874 | $ | 68,907 | $ | 67,718 | $ | 66,293 | $ | 65,485 | ||||||||||||||||
Operating income | $ | 12,907 | $ | 14,744 | $ | 11,797 | $ | 15,634 | $ | 14,809 | $ | 16,131 | $ | 11,911 | $ | 10,683 | ||||||||||||||||
(Loss)/income before income taxes | ($11,297 | ) | $ | 1,138 | ($14,054 | ) | ($11,009 | ) | ($22,355 | ) | $ | 8,635 | $ | 6,066 | $ | 7,775 | ||||||||||||||||
Net (loss)/income | ($13,497 | ) | ($270 | ) | ($13,250 | ) | ($8,638 | ) | ($25,880 | ) | $ | 4,152 | $ | 2,479 | $ | 8,824 | ||||||||||||||||
(Loss)/earnings per share—basic | ($0.10 | ) | ($0.01 | ) | ($0.09 | ) | ($0.06 | ) | ($0.17 | ) | $ | 0.02 | $ | 0.01 | $ | 0.05 | ||||||||||||||||
(Loss)/earnings per share—diluted | ($0.10 | ) | ($0.01 | ) | ($0.09 | ) | ($0.06 | ) | ($0.17 | ) | $ | 0.02 | $ | 0.01 | $ | 0.05 | ||||||||||||||||
Dividends per common share | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.03 | ||||||||||||||||
Unusual or Infrequent Items: | ||||||||||||||||||||||||||||||||
(Loss)/gain on revaluation of deferred consideration (Note 12) | ($22,385 | ) | ($8,870 | ) | ($23,358 | ) | ($2,208 | ) | ($5,354 | ) | ($6,306 | ) | ($4,037 | ) | $ | 4,404 | ||||||||||||||||
Impairments (Note 27) | — | ($3,080 | ) | — | ($19,672 | ) | ($30,138 | ) | — | — | ($572 | ) | ||||||||||||||||||||
Loss on extinguishment of debt | — | — | ($2,387 | ) | — | — | — | — | — |
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||
* | Filed herewith |
WISDOMTREE INVESTMENTS, INC. | ||||||
By: | /s/ JONATHAN STEINBERG | |||||
Jonathan Steinberg | ||||||
Chief Executive Officer and Director |