UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 12, 2009
NUVEEN INVESTMENTS, INC.
(Exact name of registrant as specified in its charter)
Delaware | 1-11123 | 36-3817266 | ||
(State or other | (Commission File Number) | (IRS Employer | ||
jurisdiction of | Identification | |||
incorporation) | Number) | |||
333 West Wacker Drive, Chicago, Illinois | 60606 | |||
(Address of principal executive offices) | (Zip Code) |
(312) 917-7700
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 — Financial Information
Item 2.02 Results of Operations and Financial Condition.
The information in Item 2.02 of this Report shall be deemed “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. Unless otherwise indicated, the terms “we”, “us”, “our”, “the Company” and “Nuveen Investments” refer to Nuveen Investments, Inc. and, where appropriate, its subsidiaries.
As previously announced, Nuveen Investments will host a conference call to discuss its first quarter 2009 results on Wednesday, May 13, 2009 at 10:00 am central time. To access this call live or to listen to an audio replay, visit the investor relations section of the Company’s website at www.nuveen.com.
The following schedules summarize the Company’s results and are intended to accompany the conference call. Table 1 details sales, net flows, and assets under management for Q1 2009 and all quarters in 2008. Table 2 provides Q1 2009 and Q1 2008 Adjusted EBITDA as defined by our Bank Credit Agreement. The schedule also provides Adjusted EBITDA for the last twelve month period, which includes the first quarter of 2009 and the last three quarters of 2008. Table 3 reconciles Adjusted EBITDA as defined by the Bank Credit Agreement to income before taxes for the same periods (other than Q1 2008).
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TABLE 1
Nuveen Investments
Sales, Net Flows and Assets Under Management
For the Periods Ended December 31, 2008, and March 31, 2009
Unaudited
Nuveen Investments
Sales, Net Flows and Assets Under Management
For the Periods Ended December 31, 2008, and March 31, 2009
Unaudited
2008 | 2009 | ||||||||||||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Total | ||||||||||||||||||||||||||||||||
Gross sales(in millions): | |||||||||||||||||||||||||||||||||||||||||
Mutual funds | $ | 1,354 | 1,839 | 1,635 | 1,487 | 6,315 | $ | 1,339 | — | — | — | 1,339 | |||||||||||||||||||||||||||||
Managed accounts-retail | 1,701 | 2,118 | 2,026 | 2,068 | 7,914 | 2,270 | — | — | — | 2,270 | |||||||||||||||||||||||||||||||
Managed accounts-institutional | 1,197 | 1,363 | 2,840 | 1,357 | 6,757 | 1,762 | — | — | — | 1,762 | |||||||||||||||||||||||||||||||
Closed-end funds | 2 | (0 | ) | (0 | ) | (0 | ) | 2 | 166 | — | — | — | 166 | ||||||||||||||||||||||||||||
Total funds and accounts | $ | 4,254 | 5,321 | 6,501 | 4,912 | 20,988 | $ | 5,537 | — | — | — | 5,537 | |||||||||||||||||||||||||||||
Net Flows(in millions): | |||||||||||||||||||||||||||||||||||||||||
Mutual funds | $ | 61 | 744 | 147 | (537 | ) | 416 | $ | 303 | — | — | — | 303 | ||||||||||||||||||||||||||||
Managed accounts-retail | (2,523 | ) | (1,823 | ) | (1,895 | ) | (2,680 | ) | (8,921 | ) | (1,770 | ) | — | — | — | (1,770 | ) | ||||||||||||||||||||||||
Managed accounts-institutional | (584 | ) | 112 | 1,174 | (116 | ) | 586 | 289 | — | — | — | 289 | |||||||||||||||||||||||||||||
Closed-end funds | 3 | 48 | (1,172 | ) | (1,250 | ) | (2,370 | ) | (632 | ) | — | — | — | (632 | ) | ||||||||||||||||||||||||||
Total funds and accounts | $ | (3,042 | ) | (919 | ) | (1,745 | ) | (4,582 | ) | (10,288 | ) | $ | (1,811 | ) | — | — | — | (1,811 | ) | ||||||||||||||||||||||
Managed funds and accounts(in millions): | |||||||||||||||||||||||||||||||||||||||||
Assets under management: | |||||||||||||||||||||||||||||||||||||||||
Beginning of period | $ | 164,307 | 153,026 | 151,833 | 134,065 | 164,307 | $ | 119,223 | — | — | — | 119,223 | |||||||||||||||||||||||||||||
Acquisition of Winslow Capital accounts | — | — | — | 4,542 | 4,542 | — | — | — | — | — | |||||||||||||||||||||||||||||||
Sales — funds and accounts | 4,254 | 5,321 | 6,501 | 4,912 | 20,988 | 5,537 | — | — | — | 5,537 | |||||||||||||||||||||||||||||||
Dividend reinvestments | 69 | 155 | (170 | ) | 493 | 547 | 70 | — | — | — | 70 | ||||||||||||||||||||||||||||||
Redemptions and withdrawals | (7,365 | ) | (6,394 | ) | (8,076 | ) | (9,988 | ) | (31,823 | ) | (7,418 | ) | — | — | — | (7,418 | ) | ||||||||||||||||||||||||
Total net flows into funds and accounts | (3,042 | ) | (919 | ) | (1,745 | ) | (4,582 | ) | (10,288 | ) | (1,811 | ) | — | — | — | (1,811 | ) | ||||||||||||||||||||||||
Appreciation / (depreciation) of managed assets | (8,240 | ) | (274 | ) | (16,022 | ) | (14,802 | ) | (39,338 | ) | (2,079 | ) | — | — | — | (2,079 | ) | ||||||||||||||||||||||||
End of period | $ | 153,026 | 151,833 | 134,065 | 119,223 | 119,223 | $ | 115,334 | — | — | — | 115,334 | |||||||||||||||||||||||||||||
Recap by product type: | |||||||||||||||||||||||||||||||||||||||||
Mutual funds | $ | 18,415 | 19,064 | 17,661 | 14,689 | $ | 15,264 | — | — | — | |||||||||||||||||||||||||||||||
Closed-end funds | 50,626 | 50,095 | 44,710 | 39,858 | 39,570 | — | — | — | |||||||||||||||||||||||||||||||||
Managed accounts-retail | 49,431 | 47,671 | 40,368 | 34,860 | 31,642 | — | — | — | |||||||||||||||||||||||||||||||||
Managed accounts-institutional | 34,553 | 35,002 | 31,326 | 29,817 | 28,858 | — | — | — | |||||||||||||||||||||||||||||||||
Total assets under management | $ | 153,026 | 151,833 | 134,065 | 119,223 | $ | 115,334 | — | — | — | |||||||||||||||||||||||||||||||
Recap by manager: | |||||||||||||||||||||||||||||||||||||||||
Nuveen | $ | 74,914 | 75,031 | 69,650 | 64,649 | $ | 65,968 | — | — | — | |||||||||||||||||||||||||||||||
NWQ | 29,650 | 28,301 | 23,159 | 17,264 | 14,518 | — | — | — | |||||||||||||||||||||||||||||||||
Rittenhouse | 2,669 | 2,093 | 1,713 | 1,258 | — | — | — | — | |||||||||||||||||||||||||||||||||
Santa Barbara | 3,789 | 3,833 | 3,352 | 2,658 | 3,336 | — | — | — | |||||||||||||||||||||||||||||||||
Symphony | 9,838 | 10,202 | 9,960 | 7,113 | 6,811 | — | — | — | |||||||||||||||||||||||||||||||||
Tradewinds | 30,537 | 30,779 | 24,749 | 20,606 | 18,564 | — | — | — | |||||||||||||||||||||||||||||||||
HydePark | 1,629 | 1,594 | 1,483 | 1,134 | 1,158 | — | — | — | |||||||||||||||||||||||||||||||||
Winslow Capital | — | — | — | 4,542 | 4,979 | — | — | — | |||||||||||||||||||||||||||||||||
Total assets under management | $ | 153,026 | 151,833 | 134,065 | 119,223 | $ | 115,334 | — | — | — | |||||||||||||||||||||||||||||||
Recap by style: | |||||||||||||||||||||||||||||||||||||||||
Equity-based | $ | 74,083 | 72,449 | 59,495 | 52,064 | $ | 46,563 | — | — | — | |||||||||||||||||||||||||||||||
Municipals | 63,073 | 63,513 | 60,714 | 57,540 | 60,069 | — | — | — | |||||||||||||||||||||||||||||||||
Taxable income-oriented | 15,870 | 15,871 | 13,857 | 9,619 | 8,702 | — | — | — | |||||||||||||||||||||||||||||||||
Total assets under management | $ | 153,026 | 151,833 | 134,065 | 119,223 | $ | 115,334 | — | — | — | |||||||||||||||||||||||||||||||
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TABLE 2
Nuveen Investments
Adjusted EBITDA (1)
Unaudited
(in thousands)
Nuveen Investments
Adjusted EBITDA (1)
Unaudited
(in thousands)
Q1 2009 | Q1 2008 | Q1 2009 LTM(3) | ||||||||||
Operating Revenues | ||||||||||||
Advisory Fees | $ | 140,529 | $ | 192,758 | $ | 655,201 | ||||||
Underwriting & Distribution Revenue | 969 | 1,231 | 9,181 | |||||||||
Performance Fees / Other | 5,735 | 2,825 | 26,828 | |||||||||
Total Operating Revenue | 147,233 | 196,814 | 691,210 | |||||||||
Adjusted Operating Expenses (2) | ||||||||||||
Compensation & Benefits | 49,957 | 65,775 | 213,602 | |||||||||
Advertising & Promotion | 2,424 | 3,593 | 12,531 | |||||||||
Occupancy & Equipment | 4,752 | 4,372 | 18,872 | |||||||||
Travel & Entertainment | 2,456 | 3,341 | 11,110 | |||||||||
Outside & Professional Services | 9,885 | 9,148 | 42,090 | |||||||||
Other Operating Expenses | 5,225 | 5,002 | 21,812 | |||||||||
Pro forma Savings | (419 | ) | (3,561 | ) | (10,419 | ) | ||||||
Total Operating Expenses | 74,280 | 87,670 | 309,598 | |||||||||
Adjusted Other Income/(Expense) (2) | 385 | 688 | 30 | |||||||||
Net (Income)/Loss Attributable to the NoncontrollingInterests (2) | (304 | ) | (576 | ) | (1,731 | ) | ||||||
Subtotal | 73,034 | 109,256 | 379,911 | |||||||||
Winslow Pro forma | — | 1,850 | 5,550 | |||||||||
Adjusted EBITDA(1) | $ | 73,034 | $ | 111,106 | $ | 385,461 | ||||||
(1) | Earnings before interest, taxes, depreciation and amortization (EBITDA) is presented on an adjusted basis consistent with the definitions included in our Bank Credit Agreement. Adjusted EBITDA is a non-GAAP financial measure and has been included because it is a basis upon which our management assesses and will assess our operating performance. Adjusted EBITDA is not a measure of our liquidity or financial performance under GAAP. Our measure of adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. | |
(2) | Balances exclude the impact of CLO V, a consolidated investment vehicle in which Nuveen has no economic interest, and include adjustments consistent with our Bank Credit Agreement and thus are non-GAAP financial measures. | |
(3) | LTM represents the last twelve-month period including the last three quarters of 2008 and the first quarter of 2009. |
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TABLE 3
Nuveen Investments
Adjusted EBITDA(1) Reconciliation
Unaudited
(in thousands)
Nuveen Investments
Adjusted EBITDA(1) Reconciliation
Unaudited
(in thousands)
This table presents adjustments reconciling income before taxes shown in the Company’s financial statements to Adjusted EBITDA(1) calculated in accordance with the Company’s Credit Agreement.
Q1 2009 | Q1 2009 LTM (2) | |||||||
Net loss before taxes | (20,209 | ) | (2,226,047 | ) | ||||
Net (income)/loss attributable to the noncontrolling interests | (19,264 | ) | 96,309 | |||||
Net interest expense excluding CLO V | 69,361 | 274,263 | ||||||
Amortization & depreciation | 19,394 | 76,211 | ||||||
Adjustments per Credit Agreement: | ||||||||
Non-cash compensation | 9,284 | 38,537 | ||||||
Deal related expenses | — | 1,985 | ||||||
Retention, severance and recruiting expense | 10,567 | 81,975 | ||||||
Structured products distribution expense | 2,684 | 13,012 | ||||||
Non-recurring items | (3,193 | ) | 2,007,313 | |||||
Pro forma restructuring | 419 | 10,419 | ||||||
Debt and investment related expenses | 3,991 | 5,934 | ||||||
Subtotal | 73,034 | 379,911 | ||||||
Winslow pro forma | — | 5,550 | ||||||
Adjusted EBITDA (1) | $ | 73,034 | $ | 385,461 | ||||
(1) | Earnings before interest, taxes, depreciation and amortization (EBITDA) is presented on an adjusted basis consistent with the definitions included in our Bank Credit Agreement. Adjusted EBITDA is a non-GAAP financial measure and has been included because it is a basis upon which our management assesses and will assess our operating performance. Adjusted EBITDA is not a measure of our liquidity or financial performance under GAAP. Our measure of adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. | |
(2) | LTM represents the last twelve-month period including the first quarter of 2009 and the last three quarters of 2008. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: May 12, 2009 | NUVEEN INVESTMENTS, INC. | |||
By: | /s/ John L. MacCarthy | |||
Name: | John L. MacCarthy | |||
Title: | Executive Vice President | |||
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