JMP - Earnings call transcript Q4 2017

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Operator

Welcome to the JMP Group's Fourth Quarter 2017 Earnings Conference Call. Please note that today's call is being recorded. [Operator Instructions] I will now turn the call over to Andrew Palmer, the Company's Head of Investor Relations.

Andrew Palmer

Good morning.

On the line with me today are Joe Jolson, JMP Group's Chairman and Chief Executive Officer; and Ray Jackson, the Company's Chief Financial Officer.

Carter of by Group. joined are Mack, JMP President We

of of note comments future Before or Actual implied. out those please materially some may events JMP’s this differ results are about we begin, indicated statements that morning's from control. forward-looking may that our contain

and Company's said to detailed For most in of the recent that Joe I'll review over please CEO, XX-K. could uncertainties discussion performance, Chairman the that turn our JMP's things a affect With the future Jolson. risk factors

Joe Jolson

Thanks, annualized had earnings better-than-expected first and average quarter the of Securities a adding earnings. produce XX% in corporate asset of fourth $X.XX XXXX JMP our $X.XX the share. return operating net positive continued since Andrew. on turned levels, for at per share to near-record to income a We quarter per with equity subsidiaries of contributing management were contribution $X.XX from per operating share, to time profitability share $X.XX included which and per

asset Importantly, our to debt. for equity first depressed and income with funded we cash suffered year, a per and performance long-term X% quarterly share covered in amount our was investment traded turnover with distribution a from which of diminished capital material $X.XX our markets us the management our redeploy two environment of publicly at first Early fee in CLOs, partnership, time from XXXX. challenged cash the income the net that of

gains our equity environment, to XX% recover. grew operating recently and to better would Also increased this management revenues JMP execute good reset off with next year-over-year, week. ECM the III, of business capital priced into business hope expect to we back banking would segment We overall. the close We're a new midyear, fees earnings complete in U.S. CLO we return market record a achieved ECM revenues profitability. start more around while for steadily reinvestment impressive its our reinvested did our which January. also our year month improved asset to U.S. XX% which share capital CLO Securities year As progressed, underwriting consistent of and and credit our on our we activity CLO a the investment of the and In

I continue, Before year. take last to of Securities time Carter will the review some JMP progress

Carter Mack

Joe. driven XXXX, XX% total services, XX% with rebounded in by diversified annual million XX% groups XX% financial Thanks, revenues, in industry JMP technology in Those were estate. investment across history. in the healthcare, second our of in $XX.X four banking revenues well best Securities in our real and

to Our bringing JMP million brokerage total revenues start sequentially revenues After XXXX each in improved $XX.X quarter. million a the year. first $XX.X Securities slow revenues quarter, came for to

strong equity XXXX, and was driver capital huge was million of equity and in up the IPO $XX The million of follow-on from business Securities. which $XX.X EPS at XXXX. JMP of $X.XX particularly a markets from year generated improvement our million revenue underwriting second half operating $XX.X with XX% The in main in

business, securities convertible produced up revenue million XXXX, putting our for which after XXXX. of improvement $X.X the million was for driver $XX.X big Another of just

you I'll if to in paid. measured fees business lines in our million to we've XXXX of able revenue due the optimism business million underwriting future. to progress these $XX.X a about last time behind the with by XX% equity made overall by increase compared We our a by reasons U.S. M&A ECM the of of XX% a in which rebound spend capital Securities Our business, markets each were grew record year JMP revenue solid to year, and sense through had of a also $XX.X going before. order year give some

real estate, XXXX fees offerings versus and and four our follow-on XX target were grew in in IPOs XX%. versus We by More XXXX importantly, U.S. year of XX in involved the in financial ECM services X industries equity healthcare, XX, technology, before.

to share market tide. from of rising solely Our above-market a demonstrated instead in rate focus growth particularly sectors benefiting our gain our ability

increased professionals We fees most Our senior to accounted more ECM for equity This share late markets for for paid points our team overall group. of in past and capital XXXX. believe equity of U.S. buildout a healthcare our staffing and total focused U.S. and basis the the target our that and of XX% our professionals to fees capital last number XX the four enabled from over and sectors on calling is increased capital industries sectors by healthcare in technology productive growth this in markets We markets of added of that two covering industries basis couple targeted XX our years. points paid also a XXXX targeted ECM has the factors, due the of XXXX early importantly, effort XXXX, year. technology

XX our just all in on versus offerings XXXX. to book industries We during progress increasing serving four nice runner and focus three a made as of offerings role and on continue in economics XXXX,

leads well results, revenues and billion $X.X that the again equity benefit revenues XXXX, turns from and believe and $X.X leg market was that comparison, XXXX in While healthier recent subsides XXXX just we we those XXXX. This XXXX billion. if were favorable, produced only those environment in industries when sectors another could revenues were following underwriting fortunate pleased a environment in billion. market to U.S. volatility produced us issuance reached depressed $X.X to annual see ECM of up U.S. a with industries in those were and levels In last in target in our below year's in XXXX still average revenue XXXX,

out. We've market if participated Our that next offerings, and should of already come follow-on pipeline this equity IPOs three running bear the conditions strong to that early seven a year have results and few in in one book deals allow. months,

a the participated deals bookrun as versus to over with with U.S. discussions came area improvement practice in JMP of continuing bracket bulge result in This the XX and all in believe XXXX. emphasis convertible runners Our compared convertibles Securities and convertible issue XXXX boutique dramatically XXth premier outside of experienced commitment of we many and significant seven business in transactions the has book product four XXXX. just that investment the on to among among also the in clients. securities the among both banks, consistent established We a convertible years number increased one as ranking growth XXXX first firms in

a our next few record it that practice M&A over to On XXXX while strengthen and strategic grow materially the years. the our expect year front, advisory down was to we continued compared XXXX, can

product, M&A year-end. million couple XXXX because surpassed rather our the for far groups run of the for focused all on of so, advisory across enhanced awareness missed XXXX our number plan the have internal rate slipped our $XX closing our preceding at our all million capabilities. $XX.X XXXX. revenue that years of industry mainly of than our Even January and clients Our bankers significantly deals into feel of We that we of the with perception

good a grow and for looks momentum beyond. and confident hired bankers are share deals we we've XXXX sum the we've pipeline out M&A Group very good to equity into strong of with advisory Banking the increased now paid past to year couple an continued for the Investment with years book-run transactions. our the JMP in with has XXXX bring added plans senior productivity and second form year this in Our be three in over to a market ability during closed this markets our reaching few more business capabilities, half XXXX. and year, to Securities already turned which up, We our To that capital off in additional

book-run franchise securities M&A. business it's and for favorable deals for a our strategic convertible potential a growth what's track transactions reputation a tough done, record getting environment Our expanded middle-market significant for and currently its in of advisory

on brokerage a it's Before proprietary I investment it's due services business, want we our is touch I originate. finish, also to research of to ability to only which ability bank equity trading security provide our and the to customers that institutional of execution institutional to but part distribute our because not offerings key also

it. Our pressure been decreased was U.S. Consequently compared and commission share in group devoted brokerage the indicates great of market for in our XX% and latest XXXX, we equities know McLagan wallet gained report XXXX share X minds amount were smaller MiFID in is study many peer fact greater. and that revenues same of thought Securities year-over-year equities a of on nine as we the have a for when significant The of cash the that JMP to even by gains down shows to pool XX% all business McLagan among topic institutional brokers period million again. for market the were $XX.X once months under that the the overall first XXXX.

benefit that take we Joe. adjusts to be to effects the we and play clients our have market we in and the are will clients yet are sure to continue we but the come will we of fully investment X securities. our to confident deliver to they've brokerage out execution you that to institutional working platform so expect the research and fully value time with added Thank be some quite services JMP from The rewarded. MiFID changes brokerage our will that continue do make As closely to

Joe Jolson

nearly round last Group year Against up produced $X.XX. up operating Securities that $X.XX our in Securities versus operating for XXX% that EPS, XXXX. to into JMP share form in JMP earnings XXXX. $X.XX Thanks $X.XX of and platform contributed derived businesses amount that which that a Carter. management Notably, $X.XX asset from of JMP summary, is was all backdrop,

to Asset and transitional a to focus JMP Advisors. prior to Credit Securities, I'll Carter the dive at our JMP compared into Since principal did asset primarily HCAP already year, and for management $X.XX investments. on deep management rounded year due $X.XX

$X.XX of XXXX, we while quarter, for $X.XX adding a to the due to Credit reason redemption closed resulted half be of EPS management $X.XX debt, high could Asset of operating and the at year, X% CLO earnings early of and The of due gain in credit If part of net the credit $XXX approximately Harvest level net XX%. fees contributed at in on for our so, a of business funded CLO $XXX July, disappointing initially we JMP midyear. corporate which second at which million the quarter. fourth early by Capital was the decline a by $X.XX losses by the in In I directionally our end $X.XX hurt warehouse share we AUM onetime Credit's the hope long-term to total corporate CLO lowered to EPS cash, XXXX end $X.XX earnings huge million incentive the management year. last operating $XXX we end above asset in earnings IV, facility unusually not the income, recovered income to fees primary and At CLO on CLO of surprise XXXX, execute second By the XXXX, in redemption to to the in quarter, by the investable our and of full than XXXX. in of for million, II but roughly which a were the II XXXX, V, of which management CLO with or that during a more Net for suffered to clawback increased of a share. loans year translated the increased which CLO I arranged RiverBanc. loss sale for a first

steady As cash back to invest. and with cash we XXXX at year progress putting business of $X.XX the into made the CLO net that progressed, ended

$X.XX our fourth to Property enabled the corporate reach. to has We We statement that fixed cover V conditions closes, last markets. due year the could four now to stable its want At net raise to spend investment capital a to share added outlined offering on grow, a have initiatives, what a quarter. roughly successful suburban the is ways range, the disappointed equity in continue property CLO grade for once to of assuming income unstable manager space. other completed we pulled the complete a IPO for a few net Workspace filing income and low-end markets considering our that is year in for developer credit minutes registration expect of cost its to was the giving office relatively strategic I update could The were planned company and investment Trust primarily ago. quarter, non-investment an

area. plan a first to XXXX, Our our initiative business has million of Carter been updated in to that grow strategic our long-term progress revenues $XX you advisory on and by

years four In was to been years the our fee $XXX,XXX called over the these on and transaction. increasing plans average has compared doubling earned to for $X.X revenues per the XXXX, our Our million, approach fee next key of two average part of earlier. just work

degree capabilities fee universe. and by our in to effort companies our more continue compete transactions as have to We publicly-traded hopeful a to us achieved larger our them advisory will – introducing of some result coming this effectively our grow This years. or research advisory some has within that reintroducing coverage to average are we enabled advisory for

the objective second protect capital franchise Our conditions share industry normalize. the market was U.S. Securities increasing downturn of platform to through our industry goal during firm's investments with in JMP selected value the markets ECM when

our jumped had XX% in indicating equity in in As market XXXX, mentioned, year-over-year Securities while material underwriting total U.S. a Carter in verticals industry increase relative four area were JMP revenues share. fees XX%, that our

given were we markets revenues, for correct, the the it financing XX% limit first thesis could rules the even capital equity on were corporate potentially shift growth for the corporate seems overall proves this fourth which deductibility modest revenues, companies in to which persists up favorable Longer volatility growth well XX% structures If the underwriting for and interest market a ever. raising very if as Our year-over-year are brokerage mix. stock up tax Recently, companies new quarter product small-to-mid-cap and excited favor capital debt from for equity-over-debt near-term. time negatively appetites has the term, of impact full of as debt-to-equity be us year. however, our made that materially for new could capital increased and for fees,

using which a Astor Investment initiative investment is investment on shareholders, a overlap focused proprietary and Capital ways corporate third investment strategies there Our going our Harvest asset was immediately distribution revenue companies potential of Not tactical platform. minority could macroeconomic very also asset the was growing to only billion made November, management Chicago-based both explore Management, the allocation model. our Strategies, accretive Astor synergies limited between in we advisor forward. $X offer In a for at registered channels

sponsored asset such of from will $X.X these the opportunities year asset We evaluate of broaden continue previous have strengthen includes and we with AUM, business. ended in last managers an to management We as to year. billion which $X.X economic our interest which up the billion,

earlier was cash initiative XXXX. large fourth unusually redeploy our our to Finally, was investable balance, which mentioned as in

and minority in to first an was much than loans, trigger complete of to set year, to the in cost remaining hope III $X.X early into quarter, is retirement charge market a allow. our executing earning to to is the year the its there reinvested lag income. will by the the and of while CLO refinanced LIBOR average the process XXX, this weighted inherent points million week. second level next plus six of I debt to month, half by extend when priced of years is The thereafter, the return as III, V the improve a portfolio on a Now points. lowered we capital business committing we for reset and new then two which of reinvestment funds closing cycle expected in CLO on ago. interest reinvestment more our expected is the basis We months capital invested conditions but CLO mentioned back next Earlier if The period to CLO’s expected it close basis the also XX XXX reset by CLO reset them in net

III refinancing our from XXXX think shareholders' ago, adjusted that ended X.XX% a depreciation book to per fourth We done of a amortization in charges In addition, $X.XX fully taken CLO on value, the quarter. and tax with deferred related distributions second onetime noncash which year normal which dividend and respectively. a reduce expense adds benefit accelerating it amount tax This substantially refinance will an liabilities reflects the year we to have back expenses our of a and debt the the accumulated quarters long-term share. Workspace

a the to deferred we first announced for assets. equaling the from on for $X.XX quarter cash quarter charge unchanged in tax the impact already quarter, lowered share quarter. rate took to addition corporate tax fourth our $X.XX monthly that, new of of distributions $X.XX the of tax share a the In a reflect XXXX, We've previous

repurchase our I conclude, means XXXX, company's During of additional spent because this the Thank to XXX,XXX dedication be Board authorized work, returning share, us employees questions. equivalent another JMP the million another company's our to always giving an to we be capital X us shareholders about $X.X as an In their we or and Directors very proud you. additional independent million, to hard December, $X.XX can shareholders. Operator, thank we're shares the shares. last Group To want optimistic in and will to strong entertain of prospects. XXXX, to a repurchase finish of year's and and year directors its of of happy any of

Operator

first Dai KBW. [Operator with Instructions] Your from question comes Ann

Your line is open.

Ann Dai

Hey, question. my good Thanks morning. taking for

Joe Jolson

Sure, Ann.

Ann Dai

question First you – morning, good thanks. guys for

First guys going be is comps. question you to for on

if the Should to headcounts a into investment year's just ahead bit next year full-year a and expecting be about a side guess on So comp a comp? like end of it whether into or year. by I'm of like pretty a accrual curious I It looks some ratio both income the basis? comp we was driven the lower next in growth good felt the of it even, for think things. ratio change more come in year – so an that good pretty wanted just indication and there’s broker-dealer control to was see

Joe Jolson

where year. XXXX was ever our where the up year was conservative maybe quarter detriment the ordinarily it had I to fourth lower at the I our we – was to because in to tried a fourth that earnings the we be – in like beginning think – it of ratio There was comp is for it the quarter. it the chew think first of us

change compensation consistent So we've a I of policies. been been any our mean, other really There in hasn't that. pretty in

very I coming line there think CLO that comp hopefully forward attached dollars. would be to interest the positive – on revenues net going compensation leverage other income the is the obviously, is, the if from growth the some little

of most so of if it, earnings. drops And to to, that all revenue not drops

in of ratios look impact the the – deployed. bit earlier than would And It so distorts also year. our once a little made last turnover capitals also the distorted that comp CLO year in otherwise our they higher investments them be

Ann Dai

that’s Okay, and my And you. you other helpful. Thank is headcount for where question just you growing. see on

that areas and the getting just Or – a we talked these and building how on headcount the expand growth look where for you've now about focused you're invested last looking we if M&A more sheet is What of little still do Carter, balance made hire to ECM it bit and investments you guys? years you're you, So up to think work? so cash over putting the about opportunistically? capabilities more couple fully ahead, are

Carter Mack

on Well, balance sheet say invested work. more getting I fully would focused cash and putting to

Although, are bankers M&A. senior – in we because we there's we over a to of opportunities add the think some particularly year good do couple looking healthcare

plans the put the last initiatives growth but some of starting are place investment no couple outsized the those to in see, So initiatives as we I benefits of for of We're years. over the mentioned, there's bank. growth

Joe Jolson

few two-year most the look in I was you X% that think over I X% I was the a it years, in attrition. of think our maybe didn't mean, shrink that Yes, and period, headcount last down if downturn, lot

of at you bank XXXX – pretty chase and as – numbers Generally soft headcount. curve that productivity like the at we so our was are downward we're efficiently the were slashing didn't JMP we Securities by our the speaking, look revenue didn't efficient. reason So pretty part the of we earnings investment

revenue we this didn't to because that headcount, year. curve we to up think catch I so And have the slash didn't

result was margins as well operating you and as saw comp as you was bit JMP a the under going quite so revenues know at relatively And a control flat. was non-comp what relatively improved with up Securities,

from an benefited share and also from on leverage market shareholders increased comp line. So the

Ann Dai

Okay, Thanks. helpful.

Joe Jolson

you. Thank

Operator

question Alex next Your from Research. with comes Barrington Paris

Your is line open.

Chris Howe

Good sitting Alex. for morning, this is in Chris Howe

Joe Jolson

Hey Chris.

Chris Howe

regard you're in far in the had seeing a XXXX. success banking, I in investment question to thus

some bookrunning and moving You mentioned IPO, from what follow-on thus these one optimism any the level carryovers seeing of on far And the and color additional deal, you're offerings seven through of on the three XXXX? year? just were

Carter Mack

XXXX. so I on the post environment those planned the deals front, all in were to market were year-end. January mean, of taking had deals or equity from Well, they were either launch none of offering companies really that planned advantage carryovers

in a the So a few on both as rolled healthcare. we've pretty had that the particularly come they year On it wasn't and in that in into technology – on been IPOs that doing that while, next one has they rate in that involved of number I of would of over weren't say for calling December a companies getting planning increased IPOs we've quarters. deals – we've, on success nice in January. number transactions for dramatically were pipeline a early should mandate

year. then probably in XXXX. from quarter So this going that we factor and deals that's transactions with year should transactions, that had that M&A And closed a that onwards to pipeline than second I'd about say feel one November see pipeline the rather start couple we the the of they XXXX of were to close close nice nice we probably front, year the so a engaged of in a good knew we early of on and first

Ray Jackson

Yes, one public would've quarter, million that, add we Workspace our in $X.X plans. in gone fourth the to in thing fee just would've gotten that to

well. side the it affected on pushed, advisory as when deal of that of revenues we're chunk is part that advisory reason was below so So and fee a the slightly that

Chris Howe

it I was time on year mix you And commentary the just quick M&A? would versus where some had just characterize for follow-up, general then this Okay. one of last the how and pipe

Carter Mack

closing beginning bid the of we closer and more of engaged beginning have we say, of transactions is would in XXXX that to transactions similar. pipeline that XXXX are I

Chris Howe

you. Thank

Operator

with Jeff from comes Research. question next Your Briggs Singular

line open. Your is

Robert Maltbie

Jeff first question regarding was what to Maltbie Nice on impact quarter, factor, the CLO soon, you this My for income? it uninvested is if that, call is operating invest if you posture in on Robert want swing sitting fully Briggs. from very the

Joe Jolson

I Yes, that – think Hey, Robert.

depends XXX months next CLO the as come I months but that what of the or at we in spreads LIBOR basis give points, net I reinvesting happens credit think point up have four our XX% would on XX% is been would the so the and improve guess two to the capital that short going asset go in point to five III could that some of around be well the on in CLO plus somewhere the more of But spreads now of And really reset as this businesses at rates think just rates tightened return in CLO I is north XX%. short up. did that markets. a just have it reference, have you I mentioned we of

that ago, closer would the a or to I XX%. was capital So return say year X% on that

that that. terms gives framework in of you So some

of so is of in we're money money making and is X% Now on the cash market. kind return the a essentially cost invested so onetime the it

Robert Maltbie

have Thank is on like next your it impact book? you. and That of favorable the three would that part of rate was impact looks my hikes question CLO a respectively

Joe Jolson

has. It

global hundred kind was they widened and investment-grade the primarily LIBOR AA, spreads have they at AAA, As or targeting least are the and minimum mentioned, XX return the basis assets – level when at A the the I points. CLO the of are because banks in a that at investors debt of basis and basis couple on points to out so equity XXX

basis spreads Back points XXXX, you the similarly basis narrowed the I so see funds as LIBOR first closer tighten CLO XXX LIBOR basis think plus roughly cost have whatever, spreads of reference. our XX X% was in of to actually to was goes And average point if and as points. now a points, XXX LIBOR or might those

in hindsight the a gives reference overheated all-time for but of that of was funds. at to cost market in you the course, of least us Of lows at then least point terms

Robert Maltbie

banking was Thank the last investment that year, you mentioned good you. a year. Relating year to great environment, a

this prospects significantly what a the leverage you us so at overall the far on type below is have, still color of Looking of operating – level prior little type give year what below, you given year, that can peaks? was

Carter Mack

think that headcount that prior need on and the significantly I mean, banking front XXXX markets I increase question capital we trading and the plans talked about don't either. the or believe to we we research to fact side have really equity sales or I on in on don't Yes, investment

saw of think overall between groups in and if So back fees that U.S. the we feel up industry saw ECM we operating our I revenues like billion or there's a of $X in XXXX. leverage another XXXX, in we four lot kind got so we billion, to of of period like overall that's three-year XXXX fees overall $X.X from

financing a equity in XXXX. we mentioned, to could some trend tax growth Joe debt So also financing think we amount new that law. maybe equity there given the fair of in underwriting there's think happen over

platform. growth gives The in optimism us also there's feel front the in operating that I on like our business M&A as of So leverage lot a well.

Joe Jolson

an stable second second are the Last year, and just $X.XX a and soft and quarter improving what second conditions record that annualized. half been year, the if earnings half second half, JMP would've had you Robert, to we they the in of quarter in Securities. first at we were at the were annualize

where kind going it that's that but of was. that's to saying happen not I'm So

a new This in But depending to gives $X.XX of companies year see as raise might to capital. I the year recent unknown on could progresses. framework year stable. environment. creates when are we'll conditions think If you want of $X.XX volatility, the terms an reasonably it So extra $X.XX this that last kind timing be of the

Robert Maltbie

swing to of Couple factors. questions Great. relating

for being Workspace the REITs. mentioned IPO environment of pulled You difficult because

maybe what of your factor asset relatively operating to better a in is to question of question management of to to First business? your see second down platform market? the environment would terms that my from platform, need relates you portion then year for that type the possibly swing environment getting And

Joe Jolson

Okay.

its is IPO pulled to capital alternatives Workspace for now raising at for and looking private So grow.

So able the X to I expecting that but least next come back, they at for months may be wouldn't XX to months. be to

XX% I was I year negative think of of mentioned the our under management revenues turnover that business business, that early the the from in so in lowered of I were that assets leverage. the the first similar, operating asset management CLO the half by year standpoint costs and essentially think for

obviously, from of the the even of management in but big bit And went they year. earning to a improvement higher but fees fees part XXXX but as business second I the now modestly look half XXXX there because incentive recovered drops HCAP of spillover in earning breaking some be executed, out profitable kind last V were but it be earnings. gets we fees that wiped from because assets three-year as well should of incentive into losses. kind the be CLO year that little back would So management CLO rate cover of business middle credit hopeful it's the at some to that IV the $X.XX year roughly the and back, in little slightly a also again, mentioned have profitable progressed year XXXX got a for a if share pretax they're be last next may that that There maybe even that a maybe time, And for incentive at would fully year, fees basically was under bit $X.XX be clawback done higher. would fixed last base of profitable cost the is

two of XXXX think. So better together a even year those better two so and that from in cents year that. those looking XXXX on things. I those that, that primarily an of would a The be two a you things helps was swing, couple just into Hopefully,

Robert Maltbie

adopting there, Yes, created quicker by your are to international exposed moving you what MiFID. in relates thank terms business have in there, MiFID and MiFID XXXX? What fashion. into I you. here of impacts Final question that know headwinds the a expectations more maybe seen funds

Carter Mack

business. over last year far it's in business in a too. our the last this preparing spend year. But our talking commission year early would nicely II of Well, so I lot net it's possible clients time and to effects up fact, is our called hard tell and it pronounce MiFID to for I we say XXXX, over MiFID of differently,

seeing so done asset that II negatively but necessarily business. some on managers, be Obviously, business from planning has on commissions our effects of bigger well. far the MiFID far, the we're especially we aren't So, the would so there pressure

Joe Jolson

because the the whatever In MiFID if less our impact us share just increase, average. I will part mentioned, so also different asset I we by That we that group our might his there first as been be remarks, just think year the Carter look Carter base and, effect concentration volatility some higher volatilities offset mentioned market the prepared well. of negative MiFID last the peer mean, in as global among did said, client you companies year, from things, has at gain in than management less of think the being than aggregate,

result the how kind that think are this we business. I will that do those year of So in variables in

Robert Maltbie

you. I Thank got. all That’s

Joe Jolson

any questions. don't are Operator, there I there? are all the think questions, more for Thanks

Operator

We from with do Dai question a have Ann follow-up KBW.

Your line is open.

Ann Dai

the for thanks follow-up. Hey,

Just reform structure. one and corporate on tax

of is So, bit a a hot obviously, conversion topic today. C-corp

curious like a a but in C-corp a sense larger option some proposal, structure, makes you to might return after-tax you loss to lead feasible to time digest for be do to the had universe Just guys in a potentially having and that investable it earnings, universe there's maybe bit guys? feel would which

Joe Jolson

Yes.

evaluate projecting spend not. our Obviously, that We’re a or it reason than investment now a the not whether dilutive might dust end year, last going to more to which makes if bit primary sense been I wonder have income improves, to converted as is PTP, that the year on out on it's real would've time settles our little results. any we had effect

valuation think at – that there's So that, to a it. better makes might of earnings we lower but broader some could sense level stock of look do our it lead we'll that if to distribution

the So a month the half right end of and year it's at been and a too.

decision a this the of after on call we've got end the want and have to folks out, a that coming hopefully the it year our lot still – interpretations of we'll the have we April. by there's So quarter do first late whether but internally, we by our time working in

Ann Dai

for the thoughts. Yes, okay. Thanks

Joe Jolson

Okay.

Operator

would back Joe this at further There to the call turn time. are I Jolson. no questions over

Joe Jolson

Yes. Thanks, and updating everyone, the you at results. to quarter of end – all questions. good those Thank forward for look your interest our We the think at I April you. with first

Operator

conference today's concludes call. This

now disconnect. may You

JMP (JMP) 15 Feb 182017 Q4 Earnings call transcript