Exhibit 99.1
Calamos Asset Management, Inc. 2020 Calamos Court Naperville, Illinois 60563 800.582.6959 www.calamos.com
FOR IMMEDIATE RELEASE | News Release |
Contact:
Maryellen Thielen
630-955-4830
Maryellen Thielen
630-955-4830
Calamos Asset Management, Inc. Reports Third Quarter 2006 Results,
Announces Share Repurchase Program
Announces Share Repurchase Program
• | Revenues rose 10 percent to $118.5 million for the third quarter of 2006 compared with the same period of 2005 | ||
• | Operating income was $56.6 million for the third quarter of 2006, up 6 percent from the third quarter of 2005 | ||
• | Diluted earnings per share were 34 cents for the third quarter of 2006, versus 33 cents for the third quarter of 2005 | ||
• | The board approved a share repurchase program | ||
• | Regular quarterly dividend of 9 cents per share declared |
NAPERVILLE, Ill., Oct. 24, 2006 – Calamos Asset Management, Inc. (Nasdaq: CLMS) today announced results for the third quarter of 2006.
Revenues for the quarter ended Sept. 30, 2006 were $118.5 million, 10 percent higher than $107.7 million for the third quarter of 2005. Operating income increased 6 percent to $56.6 million from $53.3 million a year ago. Operating margin was 47.8 percent for the third quarter of 2006 and 49.5 percent for the year-earlier period.
Net income for the third quarter of 2006 was $8.0 million, a 5 percent increase from $7.6 million for the same quarter a year ago.1 Diluted earnings per share were 34 cents per share for the third quarter of 2006, versus 33 cents per share for the third quarter of 2005.
“We continue to make progress on diversifying our investment strategies,” said John P. Calamos, Sr., chairman and chief executive officer. “However, growth equities remain a significant percentage of our total assets, and this sector was largely out of favor with investors in the third quarter. Reflecting industry trends, this affected both our asset appreciation and asset flows. We believe the market is in a transition phase that will favor growth stocks, and that we’re positioned properly for this phase of the economic cycle.”
Also announced today, the board of directors declared a regular quarterly dividend of 9 cents per share, payable on Nov. 22, 2006 to shareholders of record on Nov. 7, 2006. In addition, the board authorized the repurchase of up to 2 million of the company’s outstanding
1 Net income reflects only 23.1 percent of the operating companies’ results due to minority interests’ ownership of 76.9 percent. |
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Class A common shares. Repurchases are expected to be made from time to time in open market and/or privately negotiated transactions, with purchase timing and amounts to be determined at the discretion of the company’s management. The program was implemented to enhance shareholder value and offset share issuances under the company’s incentive compensation plan.
For the nine months ended Sept. 30, 2006, Calamos Asset Management reported that revenues increased 20 percent to $363.5 million from $304.1 million for the first nine months of 2005. Operating income was $175.2 million for the first nine months of 2006, a 16 percent increase from $151.1 million for the same period of 2005. Operating margin was 48.2 percent for the first nine months of 2006 and 49.7 percent for the year-earlier period. Net income increased 20 percent to $25.1 million for the first nine months of 2006, versus $21.0 million for the same period of 2005. Diluted earnings per share rose 18 percent to $1.07 per share for the first nine months of 2006, compared with 91 cents per share for the same period of 2005.
At Sept. 30, 2006, the company had $33.2 billion in mutual funds and $11.6 billion in separate accounts, for a total of $44.8 billion in assets under management. Assets under management increased 6 percent during the 12 months ended Sept. 30, 2006, due to $1.6 billion in net purchases and $1.0 billion in net market appreciation. Average assets under management were $44.4 billion for the third quarter of 2006, an increase of 8 percent from $41.1 billion for the same period of 2005.
For the first nine months of 2006, assets rose 2 percent from $43.8 billion at year-end 2005. However, assets under management decreased 2 percent from July 1 through Sept. 30, 2006 due to $1.0 billion in net redemptions.
Management will hold an investor conference call at 5 p.m. Eastern time on Tuesday, Oct. 24, 2006. To access the live call and view management’s presentation, visit the Investor Relations section of www.calamos.com. Alternatively, participants may listen to the live call by dialing 800-374-2572 (706-679-3532 outside the United States). Management’s presentation and a replay of the call will be available until the end of the day on Oct. 31 by clicking on the Investor Relations section of www.calamos.com, or by dialing 800-642-1687 (706-645-9291 outside the U.S.) and entering conference ID number 7532830.
Calamos Asset Management, Inc. (Nasdaq: CLMS) is a diversified investment firm offering equity, high yield, convertible and alternative investment strategies, among others. The firm serves institutions and individuals via separately managed accounts and open-end and closed-end funds, offering a risk-managed approach to capital appreciation and income-producing strategies. For more information, visit www.calamos.com.
From time to time, information or statements provided by us, including those within this news release, may contain certain forward-looking statements relating to future events, future financial performance, strategies, expectations, competitive environment and regulations. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Such risks and uncertainties include, but are not limited to: loss of revenues due to contract terminations and redemptions, our ownership structure, catastrophic or unpredictable events, unavailability of third-party retail distribution channels, damage to our reputation, our interpretation of and positioning relative to the market, fluctuations in the financial markets and the competitive conditions in the mutual fund, asset management and broader financial services sectors. For a discussion concerning some of these
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and other risks, uncertainties and other important factors that could affect future results, see “Forward-Looking Information” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, where applicable, “Risk Factors” in the company’s annual and quarterly reports filed with the U.S. Securities and Exchange Commission.
Calamos Asset Management, Inc.
Unaudited Consolidated Condensed Statements of Operations
(in thousands, except share data)
Unaudited Consolidated Condensed Statements of Operations
(in thousands, except share data)
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Revenues: | ||||||||||||||||
Investment management fees | $ | 80,718 | $ | 73,669 | $ | 246,525 | $ | 206,939 | ||||||||
Distribution and underwriting fees | 36,840 | 33,335 | 113,977 | 94,724 | ||||||||||||
Other | 989 | 682 | 3,016 | 2,416 | ||||||||||||
Total revenues | 118,547 | 107,686 | 363,518 | 304,079 | ||||||||||||
Expenses: | ||||||||||||||||
Employee compensation and benefits | 17,203 | 15,365 | 54,496 | 45,146 | ||||||||||||
Distribution and underwriting expense | 24,509 | 20,642 | 75,338 | 57,006 | ||||||||||||
Amortization of deferred sales commissions | 8,645 | 7,894 | 24,508 | 23,798 | ||||||||||||
Marketing and sales promotion | 3,523 | 3,760 | 11,124 | 10,296 | ||||||||||||
General and administrative | 8,029 | 6,693 | 22,842 | 16,765 | ||||||||||||
Total expenses | 61,909 | 54,354 | 188,308 | 153,011 | ||||||||||||
Operating income | 56,638 | 53,332 | 175,210 | 151,068 | ||||||||||||
Total other income (expense), net | 804 | 1,555 | 4,899 | 623 | ||||||||||||
Income before minority interest in Calamos Holdings LLC and income taxes | 57,442 | 54,887 | 180,109 | 151,691 | ||||||||||||
Minority interest in Calamos Holdings LLC | 44,032 | 42,224 | 138,141 | 116,739 | ||||||||||||
Income before income taxes | 13,410 | 12,663 | 41,968 | 34,952 | ||||||||||||
Income taxes | 5,369 | 5,024 | 16,821 | 13,940 | ||||||||||||
Net income | $ | 8,041 | $ | 7,639 | $ | 25,147 | $ | 21,012 | ||||||||
Earnings per share, basic | $ | 0.35 | $ | 0.33 | $ | 1.09 | $ | 0.91 | ||||||||
Weighted average shares outstanding, basic | 23,161,998 | 23,000,100 | 23,161,998 | 23,000,100 | ||||||||||||
Calculation of earnings per share, diluted, assuming exchange of membership units: | ||||||||||||||||
Income before minority interest in Calamos Holdings LLC and income taxes | $ | 57,442 | 54,887 | $ | 180,109 | 151,691 | ||||||||||
Impact of income taxes | 23,000 | 21,774 | 72,188 | 60,494 | ||||||||||||
Earnings available to common shareholders | 34,442 | 33,113 | 107,921 | 91,197 | ||||||||||||
Earnings per share, diluted | $ | 0.34 | $ | 0.33 | $ | 1.07 | $ | 0.91 | ||||||||
Weighted average shares outstanding, diluted | 100,757,758 | 100,667,805 | 100,778,115 | 100,606,766 | ||||||||||||
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Calamos Asset Management, Inc.
Assets Under Management
(in millions)
Assets Under Management
(in millions)
Quarter Ended Sept. 30, | Change | |||||||||||||||
2006 | 2005 | Amount | Percent | |||||||||||||
Mutual Funds | ||||||||||||||||
Beginning assets under management | $ | 33,837 | $ | 28,333 | $ | 5,504 | 19 | % | ||||||||
Net purchases (redemptions) | (649 | ) | 471 | (1,120 | ) | 238 | ||||||||||
Market appreciation (depreciation) | (1 | ) | 1,672 | (1,673 | ) | 100 | ||||||||||
Ending assets under management | 33,187 | 30,476 | 2,711 | 9 | ||||||||||||
Average assets under management | 32,768 | 29,572 | 3,196 | 11 | ||||||||||||
Separate Accounts | ||||||||||||||||
Beginning assets under management | 11,975 | 11,179 | 796 | 7 | ||||||||||||
Net redemptions | (382 | ) | (74 | ) | (308 | ) | 416 | |||||||||
Market appreciation | 29 | 588 | (559 | ) | 95 | |||||||||||
Ending assets under management | 11,622 | 11,693 | (71 | ) | 1 | |||||||||||
Average assets under management | 11,649 | 11,514 | 135 | 1 | ||||||||||||
Total Assets Under Management | ||||||||||||||||
Beginning assets under management | 45,812 | 39,512 | 6,300 | 16 | ||||||||||||
Net purchases (redemptions) | (1,031 | ) | 397 | (1,428 | ) | 360 | ||||||||||
Market appreciation | 28 | 2,260 | (2,232 | ) | 99 | |||||||||||
Ending assets under management | 44,809 | 42,169 | 2,640 | 6 | ||||||||||||
Average assets under management | $ | 44,417 | $ | 41,086 | $ | 3,331 | 8 | % | ||||||||
At Sept. 30, | Change | |||||||||||||||
2006 | 2005 | Amount | Percent | |||||||||||||
Mutual Funds | ||||||||||||||||
Open-end funds | $ | 26,947 | $ | 24,480 | $ | 2,467 | 10 | % | ||||||||
Closed-end funds | 6,240 | 5,996 | 244 | 4 | ||||||||||||
Total mutual funds | 33,187 | 30,476 | 2,711 | 9 | ||||||||||||
Separate Accounts | ||||||||||||||||
Institutional accounts | 4,320 | 3,912 | 408 | 10 | ||||||||||||
Managed accounts | 6,451 | 7,012 | (561 | ) | 8 | |||||||||||
Private client accounts | 758 | 681 | 77 | 11 | ||||||||||||
Alternative investments | 93 | 88 | 5 | 6 | ||||||||||||
Total separate accounts | 11,622 | 11,693 | (71 | ) | 1 | |||||||||||
Ending assets under management | $ | 44,809 | $ | 42,169 | $ | 2,640 | 6 | % | ||||||||
At Sept. 30, | Change | |||||||||||||||
Assets by Strategy | 2006 | 2005 | Amount | Percent | ||||||||||||
Equity | $ | 23,543 | $ | 22,021 | $ | 1,522 | 7 | % | ||||||||
Balanced | 12,313 | 10,946 | 1,367 | 12 | ||||||||||||
Convertible | 5,154 | 5,935 | (781 | ) | 13 | |||||||||||
High Yield | 2,922 | 2,841 | 81 | 3 | ||||||||||||
Alternative | 877 | 426 | 451 | 106 | ||||||||||||
Ending assets under management | $ | 44,809 | $ | 42,169 | $ | 2,640 | 6 | % | ||||||||
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