Invesco (IVZ) 8-KContinued strong, long-term investment performance
Filed: 28 Apr 16, 12:00am
![]() | Press Release For immediate release Jordan Krugman, Investor Relations Graham Galt, Media Relations 404-439-4605 404-439-3070 |
Q1-16 | Q4-15 | Q1-16 vs. Q4-15 | Q1-15 | Q1-16 vs. Q1-15 | ||||||||||||||
Adjusted Financial Measures(1) | ||||||||||||||||||
Net revenues | $818.1 | m | $886.1 | m | (7.7 | )% | $917.5 | m | (10.8 | )% | ||||||||
Operating income | $307.1 | m | $355.7 | m | (13.7 | )% | $374.4 | m | (18.0 | )% | ||||||||
Operating margin | 37.5 | % | 40.1 | % | 40.8 | % | ||||||||||||
Net income attributable to Invesco Ltd. | $204.8 | m | $243.8 | m | (16.0 | )% | $272.1 | m | (24.7 | )% | ||||||||
Diluted EPS | $0.49 | $0.58 | (15.5 | )% | $0.63 | (22.2 | )% | |||||||||||
U.S. GAAP Financial Measures | ||||||||||||||||||
Operating revenues | $1,148.7 | m | $1,239.7 | m | (7.3 | )% | $1,291.6 | m | (11.1 | )% | ||||||||
Operating income | $274.4 | m | $303.6 | m | (9.6 | )% | $338.1 | m | (18.8 | )% | ||||||||
Operating margin | 23.9 | % | 24.5 | % | 26.2 | % | ||||||||||||
Net income attributable to Invesco Ltd. | $161.0 | m | $201.9 | m | (20.3 | )% | $259.6 | m | (38.0 | )% | ||||||||
Diluted EPS | $0.38 | $0.48 | (20.8 | )% | $0.60 | (36.7 | )% | |||||||||||
Assets Under Management | ||||||||||||||||||
Ending AUM | $771.5 | bn | $775.6 | bn | (0.5 | )% | $798.3 | bn | (3.4 | )% | ||||||||
Average AUM | $747.5 | bn | $783.7 | bn | (4.6 | )% | $795.4 | bn | (6.0 | )% |
(1) | The adjusted financial measures are all non-GAAP financial measures. See the information on pages 9 through 11 for a reconciliation to their most directly comparable U.S. GAAP measures and the notes beginning on page 18 for other important disclosures. |
Summary of net flows (in billions) | Q1-16 | Q4-15 | Q1-15 | |||||||||
Active | $0.5 | $3.5 | $6.8 | |||||||||
Passive | (1.8 | ) | 0.4 | 3.5 | ||||||||
Long-term net flows | (1.3 | ) | 3.9 | 10.3 | ||||||||
Invesco PowerShares QQQ | (2.6 | ) | 2.0 | (2.6 | ) | |||||||
Money market | 3.8 | (1.8 | ) | (6.0 | ) | |||||||
Total net flows | ($0.1 | ) | $4.1 | $1.7 | ||||||||
Excluding CIP (Non-GAAP)(1) | Including CIP (U.S. GAAP) | |||||||||||||||
March 31, 2016 | December 31, 2015 | March 31, 2016 | December 31, 2015 | |||||||||||||
in millions | ||||||||||||||||
Cash and cash equivalents | $1,454.5 | $1,851.4 | $1,454.5 | $1,851.4 | ||||||||||||
Investments of CIP | — | — | 3,639.4 | 6,016.1 | ||||||||||||
Total assets(1) | $18,947.0 | $18,593.7 | $22,658.2 | $25,073.2 | ||||||||||||
Long-term debt | 2,073.2 | 2,072.8 | 2,073.2 | 2,072.8 | ||||||||||||
Debt of CIP | — | — | 3,061.2 | 5,437.0 | ||||||||||||
Long-term debt / Long-term debt plus CIP debt | 2,073.2 | 2,072.8 | 5,134.4 | 7,509.8 | ||||||||||||
Total liabilities(1) | $11,045.7 | $10,499.5 | $14,288.4 | $16,210.2 | ||||||||||||
Total permanent equity(1) | $7,901.3 | $7,926.9 | $7,962.5 | $8,695.7 | ||||||||||||
Debt/Equity % (1) (2) | 26.2 | % | 26.1 | % | 64.5 | % | 86.4 | % |
(1) | The balance sheet line items excluding CIP are non-GAAP financial measures. See the reconciliation information on page 14 for balance sheet information before and after the consolidation of investment products. |
(2) | The debt/equity ratio excluding CIP is a non-GAAP financial measure. The debt/equity ratio is calculated as long-term debt divided by total permanent equity for the balance sheet information excluding CIP and long-term debt plus debt of CIP divided by total permanent equity for the balance sheet including CIP. |
Q1-16 | Q4-15 | % Change | Q1-15 | % Change | |||||||||||||
Adjusted revenues: | |||||||||||||||||
Investment management fees | $930.3 | $1,008.8 | (7.8 | )% | $1,023.6 | (9.1 | )% | ||||||||||
Service and distribution fees | 197.7 | 207.6 | (4.8 | )% | 213.4 | (7.4 | )% | ||||||||||
Performance fees | 15.5 | 18.8 | (17.6 | )% | 51.7 | (70.0 | )% | ||||||||||
Other | 24.0 | 29.0 | (17.2 | )% | 31.2 | (23.1 | )% | ||||||||||
Third-party distribution, service and advisory | (349.4 | ) | (378.1 | ) | (7.6 | )% | (402.4 | ) | (13.2 | )% | |||||||
Net revenues | 818.1 | 886.1 | (7.7 | )% | 917.5 | (10.8 | )% | ||||||||||
Adjusted operating expenses: | |||||||||||||||||
Employee compensation | 340.3 | 338.8 | 0.4 | % | 362.7 | (6.2 | )% | ||||||||||
Marketing | 25.4 | 34.6 | (26.6 | )% | 27.4 | (7.3 | )% | ||||||||||
Property, office and technology | 81.1 | 80.4 | 0.9 | % | 77.8 | 4.2 | % | ||||||||||
General and administrative | 64.2 | 76.6 | (16.2 | )% | 75.2 | (14.6 | )% | ||||||||||
Total adjusted operating expenses | 511.0 | 530.4 | (3.7 | )% | 543.1 | (5.9 | )% | ||||||||||
Adjusted operating income | 307.1 | 355.7 | (13.7 | )% | 374.4 | (18.0 | )% | ||||||||||
Adjusted other income/(expense): | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | (1.1 | ) | 0.3 | N/A | 7.5 | N/A | |||||||||||
Interest and dividend income | 4.3 | 6.7 | (35.8 | )% | 4.8 | (10.4 | )% | ||||||||||
Interest expense | (23.9 | ) | (23.0 | ) | 3.9 | % | (18.7 | ) | 27.8 | % | |||||||
Other gains and losses, net | (7.7 | ) | (10.3 | ) | (25.2 | )% | (2.7 | ) | 185.2 | % | |||||||
Other income/(expense) of CSIP, net | — | 0.8 | N/A | 9.4 | N/A | ||||||||||||
Adjusted income before income taxes | 278.7 | 330.2 | (15.6 | )% | 374.7 | (25.6 | )% | ||||||||||
Adjusted income tax provision | (73.9 | ) | (87.9 | ) | (15.9 | )% | (98.6 | ) | (25.1 | )% | |||||||
Adjusted net income | 204.8 | 242.3 | (15.5 | )% | 276.1 | (25.8 | )% | ||||||||||
Adjusted net (income)/loss attributable to noncontrolling interests in consolidated entities | — | 1.5 | N/A | (4.0 | ) | N/A | |||||||||||
Adjusted net income attributable to Invesco Ltd. | $204.8 | $243.8 | (16.0 | )% | $272.1 | (24.7 | )% | ||||||||||
Adjusted diluted EPS | $0.49 | $0.58 | (15.5 | )% | $0.63 | (22.2 | )% | ||||||||||
Average diluted shares outstanding | 418.9 | 423.2 | (1.0 | )% | 432.5 | (3.1 | )% | ||||||||||
Ending headcount | 6,552 | 6,490 | 1.0 | % | 6,360 | 3.0 | % | ||||||||||
Ending AUM (in billions) | $771.5 | $775.6 | (0.5 | )% | $798.3 | (3.4 | )% | ||||||||||
Average AUM (in billions) | $747.5 | $783.7 | (4.6 | )% | $795.4 | (6.0 | )% |
Q1-16 | Q4-15 | % Change | Q1-15 | % Change | |||||||||||||
Operating revenues: | |||||||||||||||||
Investment management fees | $913.6 | $987.1 | (7.4 | )% | $1,001.4 | (8.8 | )% | ||||||||||
Service and distribution fees | 197.7 | 207.6 | (4.8 | )% | 213.4 | (7.4 | )% | ||||||||||
Performance fees | 14.5 | 16.8 | (13.7 | )% | 46.8 | (69.0 | )% | ||||||||||
Other | 22.9 | 28.2 | (18.8 | )% | 30.0 | (23.7 | )% | ||||||||||
Total operating revenues | 1,148.7 | 1,239.7 | (7.3 | )% | 1,291.6 | (11.1 | )% | ||||||||||
Operating expenses: | |||||||||||||||||
Employee compensation | 344.4 | 349.8 | (1.5 | )% | 360.9 | (4.6 | )% | ||||||||||
Third-party distribution, service and advisory | 347.2 | 375.2 | (7.5 | )% | 399.1 | (13.0 | )% | ||||||||||
Marketing | 24.9 | 34.1 | (27.0 | )% | 26.7 | (6.7 | )% | ||||||||||
Property, office and technology | 79.9 | 81.3 | (1.7 | )% | 76.9 | 3.9 | % | ||||||||||
General and administrative | 77.9 | 95.7 | (18.6 | )% | 89.9 | (13.3 | )% | ||||||||||
Total operating expenses | 874.3 | 936.1 | (6.6 | )% | 953.5 | (8.3 | )% | ||||||||||
Operating income | 274.4 | 303.6 | (9.6 | )% | 338.1 | (18.8 | )% | ||||||||||
Other income/(expense): | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | (12.2 | ) | 3.1 | N/A | 11.8 | N/A | |||||||||||
Interest and dividend income | 3.6 | 5.5 | (34.5 | )% | 2.5 | 44.0 | % | ||||||||||
Interest expense | (23.9 | ) | (23.0 | ) | 3.9 | % | (18.7 | ) | 27.8 | % | |||||||
Other gains and losses, net | (4.7 | ) | 3.7 | N/A | 2.7 | N/A | |||||||||||
Other income/(expense) of CIP, net | (7.5 | ) | (12.0 | ) | (37.5 | )% | 39.5 | N/A | |||||||||
Other income/(expense) of CSIP, net | — | 0.8 | N/A | 9.4 | N/A | ||||||||||||
Income before income taxes | 229.7 | 281.7 | (18.5 | )% | 385.3 | (40.4 | )% | ||||||||||
Income tax provision | (71.9 | ) | (86.9 | ) | (17.3 | )% | (101.3 | ) | (29.0 | )% | |||||||
Net income | 157.8 | 194.8 | (19.0 | )% | 284.0 | (44.4 | )% | ||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 3.2 | 7.1 | (54.9 | )% | (24.4 | ) | N/A | ||||||||||
Net income attributable to Invesco Ltd. | $161.0 | $201.9 | (20.3 | )% | $259.6 | (38.0 | )% | ||||||||||
Earnings per share: | |||||||||||||||||
---basic | $0.38 | $0.48 | (20.8 | )% | $0.60 | (36.7 | )% | ||||||||||
---diluted | $0.38 | $0.48 | (20.8 | )% | $0.60 | (36.7 | )% | ||||||||||
Average shares outstanding: | |||||||||||||||||
---basic | 418.7 | 422.9 | (1.0 | )% | 432.2 | (3.1 | )% | ||||||||||
---diluted | 418.9 | 423.2 | (1.0 | )% | 432.5 | (3.1 | )% |
U.S. GAAP basis | Proportional consolidation of joint ventures | Third party distribution, service and advisory expenses | Acquisition / Disposition related | Market appreciation / depreciation of deferred compensation awards | CIP | Other reconciling items | Non-GAAP basis | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Investment management fees | $913.6 | $11.7 | $— | $— | $— | $5.0 | $— | $930.3 | ||||||||||||||||||||||||
Service and distribution fees | 197.7 | — | — | — | — | — | — | 197.7 | ||||||||||||||||||||||||
Performance fees | 14.5 | 0.5 | — | — | — | 0.5 | — | 15.5 | ||||||||||||||||||||||||
Other | 22.9 | 1.1 | — | — | — | — | — | 24.0 | ||||||||||||||||||||||||
Third-party distribution, service and advisory | — | (2.2 | ) | (347.2 | ) | — | — | — | — | (349.4 | ) | |||||||||||||||||||||
Total operating revenues reconciled to net revenues | 1,148.7 | 11.1 | (347.2 | ) | — | — | 5.5 | — | 818.1 | |||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Employee compensation | 344.4 | 5.1 | — | (5.4 | ) | 0.2 | — | (4.0 | ) | 340.3 | ||||||||||||||||||||||
Third-party distribution, service and advisory | 347.2 | — | (347.2 | ) | — | — | — | — | — | |||||||||||||||||||||||
Marketing | 24.9 | 0.5 | — | — | — | — | — | 25.4 | ||||||||||||||||||||||||
Property, office and technology | 79.9 | 0.9 | — | — | — | — | 0.3 | 81.1 | ||||||||||||||||||||||||
General and administrative | 77.9 | 1.3 | — | (4.1 | ) | — | (1.8 | ) | (9.1 | ) | 64.2 | |||||||||||||||||||||
Total operating expenses | 874.3 | 7.8 | (347.2 | ) | (9.5 | ) | 0.2 | (1.8 | ) | (12.8 | ) | 511.0 | ||||||||||||||||||||
Operating income reconciled to adjusted operating income | 274.4 | 3.3 | — | 9.5 | (0.2 | ) | 7.3 | 12.8 | 307.1 | |||||||||||||||||||||||
Other income/(expense): | ||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | (12.2 | ) | (3.2 | ) | — | 17.8 | — | (3.5 | ) | — | (1.1 | ) | ||||||||||||||||||||
Interest and dividend income | 3.6 | 0.7 | — | — | (0.1 | ) | 0.1 | — | 4.3 | |||||||||||||||||||||||
Interest expense | (23.9 | ) | — | — | — | — | — | — | (23.9 | ) | ||||||||||||||||||||||
Other gains and losses, net | (4.7 | ) | — | — | (3.5 | ) | 1.7 | 0.2 | (1.4 | ) | (7.7 | ) | ||||||||||||||||||||
Other income/(expense) of CIP, net | (7.5 | ) | — | — | — | — | 7.5 | — | — | |||||||||||||||||||||||
Income before income taxes | 229.7 | 0.8 | — | 23.8 | 1.4 | 11.6 | 11.4 | 278.7 | ||||||||||||||||||||||||
Income tax provision | (71.9 | ) | (0.8 | ) | — | 3.5 | (0.3 | ) | — | (4.4 | ) | (73.9 | ) | |||||||||||||||||||
Net income | 157.8 | — | — | 27.3 | 1.1 | 11.6 | 7.0 | 204.8 | ||||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 3.2 | — | — | — | — | (3.2 | ) | — | — | |||||||||||||||||||||||
Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd. | $161.0 | $— | $— | $27.3 | $1.1 | $8.4 | $7.0 | $204.8 | ||||||||||||||||||||||||
Operating margin | 23.9 | % | Adjusted operating margin | 37.5 | % | |||||||||||||||||||||||||||
Average diluted shares outstanding | 418.9 | Average diluted shares outstanding | 418.9 | |||||||||||||||||||||||||||||
Diluted EPS | $0.38 | Adjusted diluted EPS | $0.49 |
U.S. GAAP basis | Proportional consolidation of joint ventures | Third party distribution, service and advisory expenses | Acquisition / Disposition related | Market appreciation / depreciation of deferred compensation awards | CIP | Other reconciling items | Non-GAAP basis | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Investment management fees | $987.1 | $13.3 | $— | $— | $— | $8.4 | $— | $1,008.8 | ||||||||||||||||||||||||
Service and distribution fees | 207.6 | — | — | — | — | — | — | 207.6 | ||||||||||||||||||||||||
Performance fees | 16.8 | 0.4 | — | — | — | 1.6 | — | 18.8 | ||||||||||||||||||||||||
Other | 28.2 | 0.8 | — | — | — | — | — | 29.0 | ||||||||||||||||||||||||
Third-party distribution, service and advisory | — | (2.9 | ) | (375.2 | ) | — | — | — | — | (378.1 | ) | |||||||||||||||||||||
Total operating revenues reconciled to net revenues | 1,239.7 | 11.6 | (375.2 | ) | — | — | 10.0 | — | 886.1 | |||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Employee compensation | 349.8 | 4.7 | — | — | (3.5 | ) | — | (12.2 | ) | 338.8 | ||||||||||||||||||||||
Third-party distribution, service and advisory | 375.2 | — | (375.2 | ) | — | — | — | — | — | |||||||||||||||||||||||
Marketing | 34.1 | 0.5 | — | — | — | — | — | 34.6 | ||||||||||||||||||||||||
Property, office and technology | 81.3 | 1.1 | — | — | — | — | (2.0 | ) | 80.4 | |||||||||||||||||||||||
General and administrative | 95.7 | 1.2 | — | (3.6 | ) | — | (1.6 | ) | (15.1 | ) | 76.6 | |||||||||||||||||||||
Total operating expenses | 936.1 | 7.5 | (375.2 | ) | (3.6 | ) | (3.5 | ) | (1.6 | ) | (29.3 | ) | 530.4 | |||||||||||||||||||
Operating income reconciled to adjusted operating income | 303.6 | 4.1 | — | 3.6 | 3.5 | 11.6 | 29.3 | 355.7 | ||||||||||||||||||||||||
Other income/(expense): | ||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 3.1 | (3.5 | ) | — | — | — | 0.7 | — | 0.3 | |||||||||||||||||||||||
Interest and dividend income | 5.5 | 0.8 | — | — | (0.3 | ) | 0.7 | — | 6.7 | |||||||||||||||||||||||
Interest expense | (23.0 | ) | — | — | — | — | — | — | (23.0 | ) | ||||||||||||||||||||||
Other gains and losses, net | 3.7 | — | — | (8.7 | ) | (4.8 | ) | — | (0.5 | ) | (10.3 | ) | ||||||||||||||||||||
Other income/(expense) of CIP, net | (12.0 | ) | — | — | — | — | 12.0 | — | — | |||||||||||||||||||||||
Other income/(expense) of CSIP, net | 0.8 | — | — | — | — | — | — | 0.8 | ||||||||||||||||||||||||
Income before income taxes | 281.7 | 1.4 | — | (5.1 | ) | (1.6 | ) | 25.0 | 28.8 | 330.2 | ||||||||||||||||||||||
Income tax provision | (86.9 | ) | (1.4 | ) | — | 7.7 | 0.5 | — | (7.8 | ) | (87.9 | ) | ||||||||||||||||||||
Net income | 194.8 | — | — | 2.6 | (1.1 | ) | 25.0 | 21.0 | 242.3 | |||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 7.1 | — | — | — | — | (5.6 | ) | — | 1.5 | |||||||||||||||||||||||
Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd. | $201.9 | $— | $— | $2.6 | ($1.1 | ) | $19.4 | $21.0 | $243.8 | |||||||||||||||||||||||
Operating margin | 24.5 | % | Adjusted operating margin | 40.1 | % | |||||||||||||||||||||||||||
Average diluted shares outstanding | 423.2 | Average diluted shares outstanding | 423.2 | |||||||||||||||||||||||||||||
Diluted EPS | $0.48 | Adjusted diluted EPS | $0.58 |
U.S. GAAP basis | Proportional consolidation of joint ventures | Third party distribution, service and advisory expenses | Acquisition / Disposition related | Market appreciation / depreciation of deferred compensation awards | CIP | Other reconciling items | Non-GAAP basis | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Investment management fees | $1,001.4 | $15.3 | $— | $— | $— | $6.9 | $— | $1,023.6 | ||||||||||||||||||||||||
Service and distribution fees | 213.4 | — | — | — | — | — | — | 213.4 | ||||||||||||||||||||||||
Performance fees | 46.8 | 2.5 | — | — | — | 2.4 | — | 51.7 | ||||||||||||||||||||||||
Other | 30.0 | 1.2 | — | — | — | — | — | 31.2 | ||||||||||||||||||||||||
Third-party distribution, service and advisory | — | (3.3 | ) | (399.1 | ) | — | — | — | — | (402.4 | ) | |||||||||||||||||||||
Total operating revenues reconciled to net revenues | 1,291.6 | 15.7 | (399.1 | ) | — | — | 9.3 | — | 917.5 | |||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Employee compensation | 360.9 | 5.7 | — | — | (3.9 | ) | — | — | 362.7 | |||||||||||||||||||||||
Third-party distribution, service and advisory | 399.1 | — | (399.1 | ) | — | — | — | — | — | |||||||||||||||||||||||
Marketing | 26.7 | 0.7 | — | — | — | — | — | 27.4 | ||||||||||||||||||||||||
Property, office and technology | 76.9 | 0.9 | — | — | — | — | — | 77.8 | ||||||||||||||||||||||||
General and administrative | 89.9 | 1.4 | — | (3.9 | ) | — | (12.2 | ) | — | 75.2 | ||||||||||||||||||||||
Total operating expenses | 953.5 | 8.7 | (399.1 | ) | (3.9 | ) | (3.9 | ) | (12.2 | ) | — | 543.1 | ||||||||||||||||||||
Operating income reconciled to adjusted operating income | 338.1 | 7.0 | — | 3.9 | 3.9 | 21.5 | — | 374.4 | ||||||||||||||||||||||||
Other income/(expense): | ||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 11.8 | (6.0 | ) | — | — | — | 1.7 | — | 7.5 | |||||||||||||||||||||||
Interest and dividend income | 2.5 | 1.0 | — | — | (0.1 | ) | 1.4 | — | 4.8 | |||||||||||||||||||||||
Interest expense | (18.7 | ) | — | — | — | — | — | — | (18.7 | ) | ||||||||||||||||||||||
Other gains and losses, net | 2.7 | — | — | — | (5.0 | ) | 2.7 | (3.1 | ) | (2.7 | ) | |||||||||||||||||||||
Other income/(expense) of CIP, net | 39.5 | — | — | — | — | (39.5 | ) | — | — | |||||||||||||||||||||||
Other income/(expense) of CSIP, net | 9.4 | — | — | — | — | — | — | 9.4 | ||||||||||||||||||||||||
Income before income taxes | 385.3 | 2.0 | — | 3.9 | (1.2 | ) | (12.2 | ) | (3.1 | ) | 374.7 | |||||||||||||||||||||
Income tax provision | (101.3 | ) | (2.0 | ) | — | 4.4 | 0.3 | — | — | (98.6 | ) | |||||||||||||||||||||
Net income | 284.0 | — | — | 8.3 | (0.9 | ) | (12.2 | ) | (3.1 | ) | 276.1 | |||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (24.4 | ) | — | — | — | — | 20.4 | — | (4.0 | ) | ||||||||||||||||||||||
Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd. | $259.6 | $— | $— | $8.3 | ($0.9 | ) | $8.2 | ($3.1 | ) | $272.1 | ||||||||||||||||||||||
Operating margin | 26.2 | % | Adjusted operating margin | 40.8 | % | |||||||||||||||||||||||||||
Average diluted shares outstanding | 432.5 | Average diluted shares outstanding | 432.5 | |||||||||||||||||||||||||||||
Diluted EPS | $0.60 | Adjusted diluted EPS | $0.63 |
March 31, 2016 | December 31, 2015 | ||||||
ADJUSTED ASSETS | |||||||
Cash and cash equivalents | $1,454.5 | $1,851.4 | |||||
Unsettled fund receivables | 957.3 | 566.3 | |||||
Accounts receivable | 516.6 | 533.0 | |||||
Investments | 1,152.5 | 1,087.6 | |||||
Assets of consolidated sponsored investment products (CSIP) | — | 319.1 | |||||
Assets held for policyholders | 6,578.3 | 6,051.5 | |||||
Prepaid assets | 127.3 | 121.2 | |||||
Other assets | 78.0 | 107.0 | |||||
Property, equipment and software, net | 428.9 | 426.9 | |||||
Intangible assets, net | 1,361.2 | 1,354.0 | |||||
Goodwill | 6,292.4 | 6,175.7 | |||||
Total adjusted assets | $18,947.0 | $18,593.7 | |||||
ADJUSTED LIABILITIES | |||||||
Accrued compensation and benefits | $331.0 | $661.3 | |||||
Accounts payable and accrued expenses | 754.9 | 863.1 | |||||
Policyholder payables | 6,578.3 | 6,051.5 | |||||
Unsettled fund payables | 933.9 | 561.9 | |||||
Long-term debt | 2,073.2 | 2,072.8 | |||||
Deferred tax liabilities, net | 374.4 | 288.9 | |||||
Total adjusted liabilities | 11,045.7 | 10,499.5 | |||||
ADJUSTED TEMPORARY EQUITY | |||||||
Redeemable noncontrolling interests in consolidated entities | — | 167.3 | |||||
ADJUSTED PERMANENT EQUITY | |||||||
Equity attributable to Invesco Ltd.: | |||||||
Common shares | 98.1 | 98.1 | |||||
Additional paid-in-capital | 6,139.9 | 6,197.7 | |||||
Treasury shares | (2,472.9 | ) | (2,404.1 | ) | |||
Retained earnings | 4,518.0 | 4,459.7 | |||||
Accumulated other comprehensive income/(loss), net of tax | (382.7 | ) | (466.1 | ) | |||
Total adjusted equity attributable to Invesco Ltd. | 7,900.4 | 7,885.3 | |||||
Adjusted equity attributable to nonredeemable noncontrolling interests in consolidated entities | 0.9 | 41.6 | |||||
Total adjusted permanent equity | 7,901.3 | 7,926.9 | |||||
Total adjusted liabilities, temporary and permanent equity | $18,947.0 | $18,593.7 |
Invesco Ltd. U.S. GAAP Condensed Consolidated Balance Sheets (Unaudited, in millions) | |||||||
March 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $1,454.5 | $1,851.4 | |||||
Unsettled fund receivables | 957.3 | 566.3 | |||||
Accounts receivable | 513.9 | 528.1 | |||||
Investments | 919.6 | 1,019.1 | |||||
Assets of consolidated sponsored investment products (CSIP) | — | 319.1 | |||||
Assets of consolidated investment products (CIP): | |||||||
Cash and cash equivalents of CIP | 167.8 | 363.3 | |||||
Accounts receivable of CIP | 139.6 | 173.5 | |||||
Investments of CIP | 3,639.4 | 6,016.1 | |||||
Assets held for policyholders | 6,578.3 | 6,051.5 | |||||
Prepaid assets | 127.3 | 121.2 | |||||
Other assets | 78.0 | 107.0 | |||||
Property, equipment and software, net | 428.9 | 426.9 | |||||
Intangible assets, net | 1,361.2 | 1,354.0 | |||||
Goodwill | 6,292.4 | 6,175.7 | |||||
Total assets | $22,658.2 | $25,073.2 | |||||
LIABILITIES | |||||||
Accrued compensation and benefits | $331.0 | $661.3 | |||||
Accounts payable and accrued expenses | 754.9 | 863.1 | |||||
Liabilities of CIP: | |||||||
Debt of CIP | 3,061.2 | 5,437.0 | |||||
Other liabilities of CIP | 181.5 | 273.7 | |||||
Policyholder payables | 6,578.3 | 6,051.5 | |||||
Unsettled fund payables | 933.9 | 561.9 | |||||
Long-term debt | 2,073.2 | 2,072.8 | |||||
Deferred tax liabilities, net | 374.4 | 288.9 | |||||
Total liabilities | 14,288.4 | 16,210.2 | |||||
TEMPORARY EQUITY | |||||||
Redeemable noncontrolling interests in consolidated entities | 407.3 | 167.3 | |||||
PERMANENT EQUITY | |||||||
Equity attributable to Invesco Ltd.: | |||||||
Common shares | 98.1 | 98.1 | |||||
Additional paid-in-capital | 6,139.9 | 6,197.7 | |||||
Treasury shares | (2,472.9 | ) | (2,404.1 | ) | |||
Retained earnings | 4,487.6 | 4,439.6 | |||||
Accumulated other comprehensive income/(loss), net of tax | (348.7 | ) | (446.0 | ) | |||
Total equity attributable to Invesco Ltd. | 7,904.0 | 7,885.3 | |||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | 58.5 | 810.4 | |||||
Total permanent equity | 7,962.5 | 8,695.7 | |||||
Total liabilities, temporary and permanent equity | $22,658.2 | $25,073.2 |
Invesco Ltd. Reconciliations of Condensed Consolidated Balance Sheet Information Excluding CIP to U.S. GAAP Condensed Consolidated Balance Sheets (unaudited, in millions) | |||||||||||||||||||||||
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Before Consolidation (non-GAAP) | Impact of Consolidation | Total (U.S. GAAP) | Before Consolidation (non-GAAP) | Impact of Consolidation | Total (U.S. GAAP) | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $1,454.5 | $— | $1,454.5 | $1,851.4 | $— | $1,851.4 | |||||||||||||||||
Unsettled fund receivables | 957.3 | — | 957.3 | 566.3 | — | 566.3 | |||||||||||||||||
Accounts receivable | 516.6 | (2.7 | ) | 513.9 | 533.0 | (4.9 | ) | 528.1 | |||||||||||||||
Investments | 1,152.5 | (232.9 | ) | 919.6 | 1,087.6 | (68.5 | ) | 1,019.1 | |||||||||||||||
Assets of CSIP | — | — | — | 319.1 | — | 319.1 | |||||||||||||||||
Assets of CIP: | |||||||||||||||||||||||
Cash and cash equivalents of CIP | — | 167.8 | 167.8 | — | 363.3 | 363.3 | |||||||||||||||||
Accounts receivable of CIP | — | 139.6 | 139.6 | — | 173.5 | 173.5 | |||||||||||||||||
Investments of CIP | — | 3,639.4 | 3,639.4 | — | 6,016.1 | 6,016.1 | |||||||||||||||||
Assets held for policyholders | 6,578.3 | — | 6,578.3 | 6,051.5 | — | 6,051.5 | |||||||||||||||||
Prepaid assets | 127.3 | — | 127.3 | 121.2 | — | 121.2 | |||||||||||||||||
Other assets | 78.0 | — | 78.0 | 107.0 | — | 107.0 | |||||||||||||||||
Property, equipment and software, net | 428.9 | — | 428.9 | 426.9 | — | 426.9 | |||||||||||||||||
Intangible assets, net | 1,361.2 | — | 1,361.2 | 1,354.0 | — | 1,354.0 | |||||||||||||||||
Goodwill | 6,292.4 | — | 6,292.4 | 6,175.7 | — | 6,175.7 | |||||||||||||||||
Total assets | $18,947.0 | $3,711.2 | $22,658.2 | $18,593.7 | $6,479.5 | $25,073.2 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Accrued compensation and benefits | $331.0 | $— | $331.0 | $661.3 | $— | $661.3 | |||||||||||||||||
Accounts payable and accrued expenses | 754.9 | — | 754.9 | 863.1 | — | 863.1 | |||||||||||||||||
Liabilities of CIP: | |||||||||||||||||||||||
Debt of CIP | — | 3,061.2 | 3,061.2 | — | 5,437.0 | 5,437.0 | |||||||||||||||||
Other liabilities of CIP | — | 181.5 | 181.5 | — | 273.7 | 273.7 | |||||||||||||||||
Policyholder payables | 6,578.3 | — | 6,578.3 | 6,051.5 | — | 6,051.5 | |||||||||||||||||
Unsettled fund payables | 933.9 | — | 933.9 | 561.9 | — | 561.9 | |||||||||||||||||
Long-term debt | 2,073.2 | — | 2,073.2 | 2,072.8 | — | 2,072.8 | |||||||||||||||||
Deferred tax liabilities, net | 374.4 | — | 374.4 | 288.9 | — | 288.9 | |||||||||||||||||
Total liabilities | 11,045.7 | 3,242.7 | 14,288.4 | 10,499.5 | 5,710.7 | 16,210.2 | |||||||||||||||||
TEMPORARY EQUITY | |||||||||||||||||||||||
Redeemable noncontrolling interests in consolidated entities | — | 407.3 | 407.3 | 167.3 | — | 167.3 | |||||||||||||||||
PERMANENT EQUITY | |||||||||||||||||||||||
Equity attributable to Invesco Ltd.: | |||||||||||||||||||||||
Common shares | 98.1 | — | 98.1 | 98.1 | — | 98.1 | |||||||||||||||||
Additional paid-in-capital | 6,139.9 | — | 6,139.9 | 6,197.7 | — | 6,197.7 | |||||||||||||||||
Treasury shares | (2,472.9 | ) | — | (2,472.9 | ) | (2,404.1 | ) | — | (2,404.1 | ) | |||||||||||||
Retained earnings | 4,518.0 | (30.4 | ) | 4,487.6 | 4,459.7 | (20.1 | ) | 4,439.6 | |||||||||||||||
Accumulated other comprehensive income/(loss), net of tax | (382.7 | ) | 34.0 | (348.7 | ) | (466.1 | ) | 20.1 | (446.0 | ) | |||||||||||||
Total equity attributable to Invesco Ltd. | 7,900.4 | 3.6 | 7,904.0 | 7,885.3 | — | 7,885.3 | |||||||||||||||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | 0.9 | 57.6 | 58.5 | 41.6 | 768.8 | 810.4 | |||||||||||||||||
Total permanent equity | 7,901.3 | 61.2 | 7,962.5 | 7,926.9 | 768.8 | 8,695.7 | |||||||||||||||||
Total liabilities, temporary and permanent equity | $18,947.0 | $3,711.2 | $22,658.2 | $18,593.7 | $6,479.5 | $25,073.2 |
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Adjusted operating activities: | |||||||
U.S. GAAP net income | $157.8 | $284.0 | |||||
Consolidated investment product (CIP) net (income)/loss | 11.6 | (12.2 | ) | ||||
Net income adjusted to remove impact of CIP | 169.4 | 271.8 | |||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||||||
Amortization and depreciation | 24.7 | 22.7 | |||||
Share-based compensation expense | 38.7 | 40.7 | |||||
Other (gains)/losses, net | 4.5 | (5.4 | ) | ||||
Other (gains)/losses of CSIP, net | — | (6.4 | ) | ||||
Equity in earnings of unconsolidated affiliates | 15.7 | (13.5 | ) | ||||
Dividends from unconsolidated affiliates | 0.6 | 0.7 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase)/decrease in cash held by CSIP | — | (8.8 | ) | ||||
(Purchase)/sale of trading investments, net | 15.7 | (39.5 | ) | ||||
(Increase)/decrease in receivables | (1,009.9 | ) | (1,618.2 | ) | |||
Increase/(decrease) in payables | 662.0 | 1,308.9 | |||||
Adjusted net cash provided by/(used in) operating activities | (78.6 | ) | (47.0 | ) | |||
Adjusted investing activities: | |||||||
Purchase of property, equipment and software | (26.0 | ) | (23.0 | ) | |||
Purchase of available-for-sale investments | (2.7 | ) | (61.4 | ) | |||
Sale of available-for-sale investments | 6.2 | 39.5 | |||||
Purchase of investments by CSIP | — | (159.1 | ) | ||||
Sale of investments by CSIP | — | 166.7 | |||||
Purchase of other investments | (42.5 | ) | (51.9 | ) | |||
Sale of other investments | 22.4 | 36.6 | |||||
Returns of capital and distributions from unconsolidated partnership investments | 10.7 | 14.7 | |||||
Purchase of business | (33.2 | ) | — | ||||
Adjusted net cash provided by/(used in) investing activities | (65.1 | ) | (37.9 | ) | |||
Adjusted financing activities: | |||||||
Proceeds from exercises of share options | — | 0.7 | |||||
Purchases of treasury shares | (125.0 | ) | (76.6 | ) | |||
Dividends paid | (113.0 | ) | (108.1 | ) | |||
Excess tax benefits from share-based compensation | (3.9 | ) | 13.0 | ||||
Third-party capital invested into CSIP | — | 0.8 | |||||
Net borrowings/(repayments) under credit facility | — | 11.2 | |||||
Payment of contingent consideration | (3.2 | ) | — | ||||
Adjusted net cash provided by/(used in) financing activities | (245.1 | ) | (159.0 | ) | |||
Increase /(decrease) in cash and cash equivalents | (388.8 | ) | (243.9 | ) | |||
Foreign exchange movement on cash and cash equivalents | (8.1 | ) | (50.6 | ) | |||
Cash and cash equivalents, beginning of period | 1,851.4 | 1,514.2 | |||||
Cash and cash equivalents, end of period | $1,454.5 | $1,219.7 |
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Operating activities: | |||||||
Net income | $157.8 | $284.0 | |||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||||||
Amortization and depreciation | 24.7 | 22.7 | |||||
Share-based compensation expense | 38.7 | 40.7 | |||||
Other (gains)/losses, net | 4.7 | (2.7 | ) | ||||
Other (gains)/losses of CSIP, net | — | (6.4 | ) | ||||
Other (gains)/losses of CIP, net | 24.6 | (24.4 | ) | ||||
Equity in earnings of unconsolidated affiliates | 12.2 | (11.8 | ) | ||||
Dividends from unconsolidated affiliates | 0.6 | 0.7 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase)/decrease in cash held by CIP | 86.3 | 9.4 | |||||
(Increase)/decrease in cash held by CSIP | — | (8.8 | ) | ||||
(Purchase)/sale of investments by CIP, net | (83.3 | ) | — | ||||
(Purchase)/sale of trading investments, net | 15.2 | (39.5 | ) | ||||
(Increase)/decrease in receivables | (993.5 | ) | (1,632.9 | ) | |||
Increase/(decrease) in payables | 643.2 | 1,312.7 | |||||
Net cash provided by/(used in) operating activities | (68.8 | ) | (56.3 | ) | |||
Investing activities: | |||||||
Purchase of property, equipment and software | (26.0 | ) | (23.0 | ) | |||
Purchase of available-for-sale investments | (0.2 | ) | (34.3 | ) | |||
Sale of available-for-sale investments | 3.3 | 9.8 | |||||
Purchase of investments by CIP | (436.7 | ) | (1,286.6 | ) | |||
Sale of investments by CIP | 394.2 | 960.6 | |||||
Purchase of investments by CSIP | — | (159.1 | ) | ||||
Sale of investments by CSIP | — | 166.7 | |||||
Purchase of other investments | (41.6 | ) | (51.9 | ) | |||
Sale of other investments | 22.4 | 36.6 | |||||
Returns of capital and distributions from unconsolidated partnership investments | 10.7 | 14.7 | |||||
Purchase of business | (33.2 | ) | — | ||||
Net cash provided by/(used in) investing activities | (107.1 | ) | (366.5 | ) | |||
Financing activities: | |||||||
Proceeds from exercises of share options | — | 0.7 | |||||
Purchases of treasury shares | (125.0 | ) | (76.6 | ) | |||
Dividends paid | (113.0 | ) | (108.1 | ) | |||
Excess tax benefits from share-based compensation | (3.9 | ) | 13.0 | ||||
Third-party capital invested into CIP | 104.5 | 12.9 | |||||
Third-party capital distributed by CIP | (25.5 | ) | (33.9 | ) | |||
Third-party capital invested into CSIP | — | 0.8 | |||||
Borrowings of debt by CIP | — | 935.9 | |||||
Repayments of debt by CIP | (46.8 | ) | (577.0 | ) | |||
Net borrowings/(repayments) under credit facility | — | 11.2 | |||||
Payment of contingent consideration | (3.2 | ) | — | ||||
Net cash provided by/(used in) financing activities | (212.9 | ) | 178.9 | ||||
Increase/(decrease) in cash and cash equivalents | (388.8 | ) | (243.9 | ) | |||
Foreign exchange movement on cash and cash equivalents | (8.1 | ) | (50.6 | ) | |||
Cash and cash equivalents, beginning of period | 1,851.4 | 1,514.2 | |||||
Cash and cash equivalents, end of period | $1,454.5 | $1,219.7 |
Three months ended March 31, 2016 | Three months ended March 31, 2015 | ||||||||||||||||||||||
Before Consolidation (non-GAAP) | Impact of Consolidation | Total (U.S. GAAP) | Before Consolidation (non-GAAP) | Impact of Consolidation | Total (U.S. GAAP) | ||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Net income | $169.4 | ($11.6 | ) | $157.8 | $271.8 | $12.2 | $284.0 | ||||||||||||||||
Amortization and depreciation | 24.7 | — | 24.7 | 22.7 | — | 22.7 | |||||||||||||||||
Share-based compensation expense | 38.7 | — | 38.7 | 40.7 | — | 40.7 | |||||||||||||||||
Other (gains)/losses, net | 4.5 | 0.2 | 4.7 | (5.4 | ) | 2.7 | (2.7 | ) | |||||||||||||||
Other (gains)/losses of CSIP, net | — | — | — | (6.4 | ) | — | (6.4 | ) | |||||||||||||||
Other (gains)/losses of CIP, net | — | 24.6 | 24.6 | — | (24.4 | ) | (24.4 | ) | |||||||||||||||
Equity in earnings of unconsolidated affiliates | 15.7 | (3.5 | ) | 12.2 | (13.5 | ) | 1.7 | (11.8 | ) | ||||||||||||||
Dividends from unconsolidated affiliates | 0.6 | — | 0.6 | 0.7 | — | 0.7 | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
(Increase)/decrease in cash held by CIP | — | 86.3 | 86.3 | — | 9.4 | 9.4 | |||||||||||||||||
(Increase)/decrease in cash held by CSIP | — | — | — | (8.8 | ) | — | (8.8 | ) | |||||||||||||||
(Purchase)/sale of investments by CIP, net | — | (83.3 | ) | (83.3 | ) | — | — | — | |||||||||||||||
(Purchase)/sale of trading investments, net | 15.7 | (0.5 | ) | 15.2 | (39.5 | ) | — | (39.5 | ) | ||||||||||||||
(Increase)/decrease in receivables | (1,009.9 | ) | 16.4 | (993.5 | ) | (1,618.2 | ) | (14.7 | ) | (1,632.9 | ) | ||||||||||||
Increase/(decrease) in payables | 662.0 | (18.8 | ) | 643.2 | 1,308.9 | 3.8 | 1,312.7 | ||||||||||||||||
Net cash provided by/(used in) operating activities | (78.6 | ) | 9.8 | (68.8 | ) | (47.0 | ) | (9.3 | ) | (56.3 | ) | ||||||||||||
Investing activities: | |||||||||||||||||||||||
Purchase of property, equipment and software | (26.0 | ) | — | (26.0 | ) | (23.0 | ) | — | (23.0 | ) | |||||||||||||
Purchase of available-for-sale investments | (2.7 | ) | 2.5 | (0.2 | ) | (61.4 | ) | 27.1 | (34.3 | ) | |||||||||||||
Sale of available-for-sale investments | 6.2 | (2.9 | ) | 3.3 | 39.5 | (29.7 | ) | 9.8 | |||||||||||||||
Purchase of investments by CIP | — | (436.7 | ) | (436.7 | ) | — | (1,286.6 | ) | (1,286.6 | ) | |||||||||||||
Sale of investments by CIP | — | 394.2 | 394.2 | — | 960.6 | 960.6 | |||||||||||||||||
Purchase of investments by CSIP | — | — | — | (159.1 | ) | — | (159.1 | ) | |||||||||||||||
Sale of investments by CSIP | — | — | — | 166.7 | — | 166.7 | |||||||||||||||||
Purchase of other investments | (42.5 | ) | 0.9 | (41.6 | ) | (51.9 | ) | — | (51.9 | ) | |||||||||||||
Sale of other investments | 22.4 | — | 22.4 | 36.6 | — | 36.6 | |||||||||||||||||
Returns of capital and distributions from unconsolidated partnership investments | 10.7 | — | 10.7 | 14.7 | — | 14.7 | |||||||||||||||||
Purchase of business | (33.2 | ) | — | (33.2 | ) | — | — | — | |||||||||||||||
Net cash provided by/(used in) investing activities | (65.1 | ) | (42.0 | ) | (107.1 | ) | (37.9 | ) | (328.6 | ) | (366.5 | ) | |||||||||||
Financing activities: | |||||||||||||||||||||||
Proceeds from exercises of share options | — | — | — | 0.7 | — | 0.7 | |||||||||||||||||
Purchases of treasury shares | (125.0 | ) | — | (125.0 | ) | (76.6 | ) | — | (76.6 | ) | |||||||||||||
Dividends paid | (113.0 | ) | — | (113.0 | ) | (108.1 | ) | — | (108.1 | ) | |||||||||||||
Excess tax benefits from share-based compensation | (3.9 | ) | — | (3.9 | ) | 13.0 | — | 13.0 | |||||||||||||||
Third-party capital invested into CIP | — | 104.5 | 104.5 | — | 12.9 | 12.9 | |||||||||||||||||
Third-party capital distributed by CIP | — | (25.5 | ) | (25.5 | ) | — | (33.9 | ) | (33.9 | ) | |||||||||||||
Third-party capital invested into CSIP | — | — | — | 0.8 | — | 0.8 | |||||||||||||||||
Borrowings of debt by CIP | — | — | — | — | 935.9 | 935.9 | |||||||||||||||||
Repayments of debt by CIP | — | (46.8 | ) | (46.8 | ) | — | (577.0 | ) | (577.0 | ) | |||||||||||||
Net borrowings/(repayments) under credit facility | — | — | — | 11.2 | — | 11.2 | |||||||||||||||||
Payment of contingent consideration | (3.2 | ) | — | (3.2 | ) | — | — | — | |||||||||||||||
Net cash provided by/(used in) financing activities | (245.1 | ) | 32.2 | (212.9 | ) | (159.0 | ) | 337.9 | 178.9 | ||||||||||||||
Increase/(decrease) in cash and cash equivalents | (388.8 | ) | — | (388.8 | ) | (243.9 | ) | — | (243.9 | ) | |||||||||||||
Foreign exchange movement on cash and cash equivalents | (8.1 | ) | — | (8.1 | ) | (50.6 | ) | — | (50.6 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 1,851.4 | — | 1,851.4 | 1,514.2 | — | 1,514.2 | |||||||||||||||||
Cash and cash equivalents, end of period | $1,454.5 | $— | $1,454.5 | $1,219.7 | $— | $1,219.7 |
1. | Acquisition/disposition related adjustments |
in millions | Q1-16 | Q4-15 | Q1-15 | |||||||||
Intangible amortization | $3.5 | $2.7 | $2.7 | |||||||||
Taxation on amortization | (0.4 | ) | (0.4 | ) | (0.4 | ) | ||||||
Deferred taxation | 4.9 | 4.9 | 5.3 | |||||||||
Employee compensation expense | 5.4 | — | — | |||||||||
Taxation on employee compensation expense | (2.0 | ) | — | — | ||||||||
Changes in the fair value of contingent consideration | (3.5 | ) | (8.7 | ) | — | |||||||
Taxation on changes in the fair value of contingent consideration | 1.3 | 3.3 | — | |||||||||
Impairment of equity investment | 17.8 | — | — | |||||||||
Other acquisition-related items | 0.6 | 0.9 | 1.2 | |||||||||
Taxation on other acquisition-related items | (0.3 | ) | (0.1 | ) | (0.5 | ) | ||||||
$27.3 | $2.6 | $8.3 | ||||||||||
4. | Consolidated investment products (CIP) |
5. | Market appreciation / depreciation of deferred compensation awards |
in millions | Q1-16 | Q4-15 | Q1-15 | |||||||||
Market (depreciation)/appreciation of compensation liability | ($0.2 | ) | $3.5 | $3.9 | ||||||||
Investment loss/(gain), net | 1.6 | (5.1 | ) | (5.1 | ) | |||||||
Net taxation on deferred compensation adjustments | (0.3 | ) | 0.5 | 0.3 | ||||||||
$1.1 | ($1.1 | ) | ($0.9 | ) | ||||||||
6. | Other reconciling items |
in millions | Q1-16 | Q4-15 | Q1-15 | |||||||||
Business optimization charges: (a) | ||||||||||||
Employee compensation | 4.0 | 12.2 | — | |||||||||
Consulting and temporary labor | 3.1 | 2.0 | — | |||||||||
Property, office and technology | (0.3 | ) | 2.0 | — | ||||||||
Taxation on business optimization charges | (2.3 | ) | (5.1 | ) | — | |||||||
Regulatory charge (b) | 6.0 | 12.6 | — | |||||||||
Legal fees for regulatory charge (b) | — | 0.5 | — | |||||||||
Taxation on regulatory-related charges (b) | (2.3 | ) | (2.7 | ) | — | |||||||
Foreign exchange hedge loss/(gain) (c) | (1.4 | ) | (0.5 | ) | (3.1 | ) | ||||||
Taxation on foreign exchange hedge amortization (e) | 0.2 | — | — | |||||||||
$7.0 | $21.0 | ($3.1 | ) | |||||||||
a. | Business optimization: Operating expenses for the first quarter 2016 include costs associated with a business transformation initiative that includes severance costs of $4.0 million (fourth quarter 2015: $12.2 million; first quarter 2015: zero), consulting and temporary labor costs of $3.1 million (fourth quarter 2015: $2.0 million; first quarter 2015: zero) and a property related credit of $0.3 million (fourth quarter 2015: charge of $2.0 million; first quarter 2015: zero) associated with vacating leased properties as part of a ongoing location strategy. |
b. | General and administrative expenses for the first quarter 2016 include a provision of $6.0 million (fourth quarter 2015: $12.6 million; first quarter 2015: zero) pertaining to regulatory investigations and related legal fees of $0.5 million in fourth quarter 2015. |
c. | Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts provide coverage through March 31, 2017. The adjustment from U.S. GAAP to non-GAAP earnings removes the unrealized gains and losses that result from market volatility. |
7. | Definition of operating margin and adjusted operating margin |
8. | Definition of adjusted diluted EPS |
9. | Balance sheets and cash flow information excluding CIP |
10. | U.S. GAAP Effective Tax Rate |
(in billions) | Q1-16 | Q4-15 | % Change | Q1-15 | ||||||||||
Beginning Assets | $775.6 | $755.8 | 2.6 | % | $792.4 | |||||||||
Long-term inflows | 42.8 | 43.0 | (0.5 | )% | 50.5 | |||||||||
Long-term outflows | (44.1 | ) | (39.1 | ) | 12.8 | % | (40.2 | ) | ||||||
Long-term net flows | (1.3 | ) | 3.9 | N/A | 10.3 | |||||||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | 2.0 | N/A | (2.6 | ) | ||||||||
Net flows in institutional money market funds | 3.8 | (1.8 | ) | N/A | (6.0 | ) | ||||||||
Total net flows | (0.1 | ) | 4.1 | N/A | 1.7 | |||||||||
Market gains and losses/reinvestment | (3.0 | ) | 21.0 | N/A | 18.2 | |||||||||
Acquisitions/dispositions, net(f) | (3.6 | ) | — | N/A | (0.7 | ) | ||||||||
Foreign currency translation | 2.6 | (5.3 | ) | N/A | (13.3 | ) | ||||||||
Ending Assets | $771.5 | $775.6 | (0.5 | )% | $798.3 | |||||||||
Average long-term AUM | $649.2 | $678.2 | (4.3 | )% | $685.0 | |||||||||
Average AUM | $747.5 | $783.7 | (4.6 | )% | $795.4 | |||||||||
Gross revenue yield on AUM(a) | 62.1 | bps | 63.8 | bps | 65.4 | bps | ||||||||
Gross revenue yield on AUM before performance fees(a) | 61.3 | bps | 62.9 | bps | 63.0 | bps | ||||||||
Net revenue yield on AUM(b) | 43.8 | bps | 45.2 | bps | 46.1 | bps | ||||||||
Net revenue yield on AUM before performance fees(b) | 42.9 | bps | 44.3 | bps | 43.5 | bps |
(in billions) | Total AUM | Active(e) | Passive(e) | ||||||||
December 31, 2015 | $775.6 | $636.5 | $139.1 | ||||||||
Long-term inflows | 42.8 | 32.9 | 9.9 | ||||||||
Long-term outflows | (44.1 | ) | (32.4 | ) | (11.7 | ) | |||||
Long-term net flows | (1.3 | ) | 0.5 | (1.8 | ) | ||||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | — | (2.6 | ) | ||||||
Net flows in institutional money market funds | 3.8 | 4.1 | (0.3 | ) | |||||||
Total net flows | (0.1 | ) | 4.6 | (4.7 | ) | ||||||
Market gains and losses/reinvestment | (3.0 | ) | (2.8 | ) | (0.2 | ) | |||||
Acquisitions/dispositions, net(f) | (3.6 | ) | (0.4 | ) | (3.2 | ) | |||||
Foreign currency translation | 2.6 | 2.5 | 0.1 | ||||||||
March 31, 2016 | $771.5 | $640.4 | $131.1 | ||||||||
Average AUM | $747.5 | $620.6 | $126.9 | ||||||||
Gross revenue yield on AUM(a) | 62.1bps | 72.1bps | 13.8bps | ||||||||
Net revenue yield on AUM(b) | 43.8bps | 49.9bps | 13.8bps | ||||||||
By channel: (in billions) | Total | Retail | Institutional | ||||||||
December 31, 2015 | $775.6 | $514.8 | $260.8 | ||||||||
Long-term inflows | 42.8 | 33.1 | 9.7 | ||||||||
Long-term outflows | (44.1 | ) | (35.8 | ) | (8.3 | ) | |||||
Long-term net flows | (1.3 | ) | (2.7 | ) | 1.4 | ||||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | (2.6 | ) | — | ||||||
Net flows in institutional money market funds | 3.8 | — | 3.8 | ||||||||
Total net flows | (0.1 | ) | (5.3 | ) | 5.2 | ||||||
Market gains and losses/reinvestment | (3.0 | ) | (3.1 | ) | 0.1 | ||||||
Acquisitions/dispositions, net(f) | (3.6 | ) | — | (3.6 | ) | ||||||
Foreign currency translation | 2.6 | 1.3 | 1.3 | ||||||||
March 31, 2016 | $771.5 | $507.7 | $263.8 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market (d) | Alternatives(c) | |||||||||||||||||
December 31, 2015 | $775.6 | $370.9 | $187.9 | $48.1 | $64.6 | $104.1 | |||||||||||||||||
Long-term inflows | 42.8 | 20.4 | 9.7 | 2.0 | 1.0 | 9.7 | |||||||||||||||||
Long-term outflows | (44.1 | ) | (24.6 | ) | (10.1 | ) | (3.6 | ) | (1.0 | ) | (4.8 | ) | |||||||||||
Long-term net flows | (1.3 | ) | (4.2 | ) | (0.4 | ) | (1.6 | ) | — | 4.9 | |||||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | (2.6 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | 3.8 | — | — | — | 3.8 | — | |||||||||||||||||
Total net flows | (0.1 | ) | (6.8 | ) | (0.4 | ) | (1.6 | ) | 3.8 | 4.9 | |||||||||||||
Market gains and losses/reinvestment | (3.0 | ) | (5.5 | ) | 2.0 | (0.6 | ) | 0.2 | 0.9 | ||||||||||||||
Acquisitions/dispositions, net(f) | (3.6 | ) | — | (2.7 | ) | — | — | (0.9 | ) | ||||||||||||||
Foreign currency translation | 2.6 | 0.9 | 0.3 | 0.9 | — | 0.5 | |||||||||||||||||
March 31, 2016 | $771.5 | $359.5 | $187.1 | $46.8 | $68.6 | $109.5 | |||||||||||||||||
Average AUM | $747.5 | $344.4 | $185.3 | $45.7 | $67.1 | $105.0 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
December 31, 2015 | $775.6 | $510.7 | $21.7 | $104.2 | $75.4 | $63.6 | |||||||||||||||||
Long-term inflows | 42.8 | 24.4 | 1.0 | 4.2 | 6.6 | 6.6 | |||||||||||||||||
Long-term outflows | (44.1 | ) | (26.7 | ) | (1.2 | ) | (5.0 | ) | (8.2 | ) | (3.0 | ) | |||||||||||
Long-term net flows | (1.3 | ) | (2.3 | ) | (0.2 | ) | (0.8 | ) | (1.6 | ) | 3.6 | ||||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | (2.6 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | 3.8 | 5.0 | — | (0.8 | ) | — | (0.4 | ) | |||||||||||||||
Total net flows | (0.1 | ) | 0.1 | (0.2 | ) | (1.6 | ) | (1.6 | ) | 3.2 | |||||||||||||
Market gains and losses/reinvestment | (3.0 | ) | 0.3 | (0.2 | ) | (1.0 | ) | (1.3 | ) | (0.8 | ) | ||||||||||||
Acquisitions/dispositions, net(f) | (3.6 | ) | (3.6 | ) | — | — | — | — | |||||||||||||||
Foreign currency translation | 2.6 | — | 1.6 | (2.4 | ) | 2.4 | 1.0 | ||||||||||||||||
March 31, 2016 | $771.5 | $507.5 | $22.9 | $99.2 | $74.9 | $67.0 | |||||||||||||||||
(in billions) | Q1-16 | Q4-15 | % Change | Q1-15 | ||||||||||
Beginning Assets | $139.1 | $131.7 | 5.6 | % | $141.4 | |||||||||
Long-term inflows | 9.9 | 9.8 | 1.0 | % | 9.9 | |||||||||
Long-term outflows | (11.7 | ) | (9.4 | ) | 24.5 | % | (6.4 | ) | ||||||
Long-term net flows | (1.8 | ) | 0.4 | N/A | 3.5 | |||||||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | 2.0 | N/A | (2.6 | ) | ||||||||
Net flows in institutional money market funds | (0.3 | ) | 0.3 | N/A | — | |||||||||
Total net flows | (4.7 | ) | 2.7 | N/A | 0.9 | |||||||||
Market gains and losses/reinvestment | (0.2 | ) | 4.7 | N/A | 1.4 | |||||||||
Acquisitions/dispositions, net(f) | (3.2 | ) | — | N/A | (0.7 | ) | ||||||||
Foreign currency translation | 0.1 | — | N/A | — | ||||||||||
Ending Assets | $131.1 | $139.1 | (5.8 | )% | $143.0 | |||||||||
Average long-term AUM | $89.4 | $97.2 | (8.0 | )% | $103.2 | |||||||||
Average AUM | $126.9 | $139.1 | (8.8 | )% | $142.7 | |||||||||
Gross revenue yield on AUM(a) | 13.8 | bps | 14.7 | bps | 13.3 | bps | ||||||||
Gross revenue yield on AUM before performance fees(a) | 13.8 | bps | 14.7 | bps | 13.3 | bps | ||||||||
Net revenue yield on AUM(b) | 13.8 | bps | 14.7 | bps | 13.3 | bps | ||||||||
Net revenue yield on AUM before performance fees(b) | 13.8 | bps | 14.7 | bps | 13.3 | bps |
By channel: (in billions) | Total | Retail | Institutional | ||||||||
December 31, 2015 | $139.1 | $118.7 | $20.4 | ||||||||
Long-term inflows | 9.9 | 9.9 | — | ||||||||
Long-term outflows | (11.7 | ) | (10.2 | ) | (1.5 | ) | |||||
Long-term net flows | (1.8 | ) | (0.3 | ) | (1.5 | ) | |||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | (2.6 | ) | — | ||||||
Net flows in institutional money market funds | (0.3 | ) | — | (0.3 | ) | ||||||
Total net flows | (4.7 | ) | (2.9 | ) | (1.8 | ) | |||||
Market gains and losses/reinvestment | (0.2 | ) | (0.1 | ) | (0.1 | ) | |||||
Acquisitions/dispositions, net(f) | (3.2 | ) | — | (3.2 | ) | ||||||
Foreign currency translation | 0.1 | — | 0.1 | ||||||||
March 31, 2016 | $131.1 | $115.7 | $15.4 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(c) | |||||||||||||||||
December 31, 2015 | $139.1 | $91.0 | $38.6 | $— | $0.4 | $9.1 | |||||||||||||||||
Long-term inflows | 9.9 | 7.1 | 2.1 | — | — | 0.7 | |||||||||||||||||
Long-term outflows | (11.7 | ) | (8.3 | ) | (2.6 | ) | — | — | (0.8 | ) | |||||||||||||
Long-term net flows | (1.8 | ) | (1.2 | ) | (0.5 | ) | — | — | (0.1 | ) | |||||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | (2.6 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | (0.3 | ) | — | — | — | (0.3 | ) | — | |||||||||||||||
Total net flows | (4.7 | ) | (3.8 | ) | (0.5 | ) | — | (0.3 | ) | (0.1 | ) | ||||||||||||
Market gains and losses/reinvestment | (0.2 | ) | (0.1 | ) | 0.2 | — | — | (0.3 | ) | ||||||||||||||
Acquisitions/dispositions, net(f) | (3.2 | ) | — | (2.7 | ) | — | — | (0.5 | ) | ||||||||||||||
Foreign currency translation | 0.1 | — | — | — | — | 0.1 | |||||||||||||||||
March 31, 2016 | $131.1 | $87.1 | $35.6 | $— | $0.1 | $8.3 | |||||||||||||||||
Average AUM | $126.9 | $82.7 | $35.5 | $— | $0.2 | $8.5 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
December 31, 2015 | $139.1 | $134.4 | $0.4 | $— | $1.9 | $2.4 | |||||||||||||||||
Long-term inflows | 9.9 | 9.7 | 0.1 | — | 0.1 | — | |||||||||||||||||
Long-term outflows | (11.7 | ) | (11.4 | ) | (0.1 | ) | — | (0.2 | ) | — | |||||||||||||
Long-term net flows | (1.8 | ) | (1.7 | ) | — | — | (0.1 | ) | — | ||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.6 | ) | (2.6 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | (0.3 | ) | — | — | — | — | (0.3 | ) | |||||||||||||||
Total net flows | (4.7 | ) | (4.3 | ) | — | — | (0.1 | ) | (0.3 | ) | |||||||||||||
Market gains and losses/reinvestment | (0.2 | ) | (0.2 | ) | — | — | — | — | |||||||||||||||
Acquisitions/dispositions, net(f) | (3.2 | ) | (3.2 | ) | — | — | — | — | |||||||||||||||
Foreign currency translation | 0.1 | — | — | — | — | 0.1 | |||||||||||||||||
March 31, 2016 | $131.1 | $126.7 | $0.4 | $— | $1.8 | $2.2 | |||||||||||||||||
Benchmark Comparison | Peer Group Comparison | ||||||||||||
% of AUM Ahead of Benchmark | % of AUM In Top Half of Peer Group | ||||||||||||
Equities | 1yr | 3yr | 5yr | 1yr | 3yr | 5yr | |||||||
U.S. Core | 24 | % | 16 | % | 18 | % | 12 | % | 6 | % | 32 | % | |
U.S. Growth | 27 | % | 27 | % | 27 | % | 27 | % | 96 | % | 35 | % | |
U.S. Value | 29 | % | 35 | % | 33 | % | 29 | % | 35 | % | 35 | % | |
Sector | 1 | % | 3 | % | 5 | % | 26 | % | 12 | % | 14 | % | |
U.K. | 93 | % | 100 | % | 100 | % | 92 | % | 99 | % | 100 | % | |
Canadian | 28 | % | 27 | % | 57 | % | 21 | % | 21 | % | 47 | % | |
Asian | 92 | % | 90 | % | 89 | % | 78 | % | 81 | % | 70 | % | |
European | 63 | % | 94 | % | 100 | % | 56 | % | 94 | % | 95 | % | |
Global | 60 | % | 59 | % | 84 | % | 66 | % | 67 | % | 90 | % | |
Global Ex U.S. and Emerging Markets | 97 | % | 90 | % | 99 | % | 99 | % | 90 | % | 98 | % | |
Fixed Income | |||||||||||||
Money Market | 91 | % | 71 | % | 71 | % | 96 | % | 97 | % | 97 | % | |
U.S. Fixed Income | 71 | % | 93 | % | 94 | % | 81 | % | 77 | % | 92 | % | |
Global Fixed Income | 41 | % | 68 | % | 73 | % | 35 | % | 33 | % | 52 | % | |
Stable Value | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |
Other | |||||||||||||
Alternatives | 51 | % | 69 | % | 69 | % | 34 | % | 48 | % | 66 | % | |
Balanced | 25 | % | 39 | % | 63 | % | 41 | % | 93 | % | 100 | % |
Note: | AUM measured in the one-, three-, and five-year peer group rankings represents 58%, 57%, and 56% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents 72%, 69%, and 67% of total Invesco AUM, respectively, as of 3/31/2016. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, IA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and are asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and preceding month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Performance assumes the reinvestment of dividends. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds, and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor's experience. |