Recent MN transcripts
Associated MN filings
Nicole Kingsley Brunner | Chief Marketing Officer |
Marc Mayer | Chief Executive Officer |
Paul Battaglia | Chief Financial Officer |
Ken Worthington | J.P. Morgan |
Good evening. My name is Angie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Manning & Napier First Quarter 2020 Earnings Conference Call.
Our hosts for today’s call are Nicole Kingsley Brunner, Chief Marketing Officer; Marc Mayer, Chief Executive Officer; and Paul Battaglia, Chief Financial Officer.
Today’s call is being recorded and will be available for replay beginning at 7:00 p.m. today. time Eastern is number and PIN enter The (XXX) XXXXXXX. dial-in XXX-XXXX, [Operator Instructions]
my now Please the pleasure floor is go over Brunner. turn Kingsley to It Nicole to ahead. Ms.
to everyone, you, results. XXXX joining Thank thank & you, and us first Angie, today discuss quarter Manning Napier’s for
obligation this I any during Private statements there and deemed financial may not those Because Before forward-looking relating statements any we everyone actual that forward-looking important certain statements Napier historical by results or Act involve these statements. statements. of Reform be no cause or the expressed Litigation the like forward-looking to Securities would begin, unknown responsibility known based meaning risks statements could to remind forward-looking from on and to uncertainties, & that made call these are update including to implied materially of within differ facts, Manning guidance, factors XXXX. assumes
some GAAP Chief filings. call, allow this Mr. related comments SEC to non-GAAP With reference be to Marc? Mayer. Marc earnings Officer, and our our introduce can During in me reconciliations measures. release include Full Executive that, may financial found
results. progress for and our as the remarks Thank longer to usual, somewhat that on and great with our there transaction financial us exchange former its COVID-XX deal unitholders, you, strategic is other our will cover: implications, private than our a performance, Nicole. note I’ll be investment our and founder initiatives,
go with the community is a And unprecedented around communities, acknowledge are normally rising of our us. the begin we first while unfolding hearts occasion. about the clients, in and adversity, I the While to much are and country our a out our and must our are times to as mourners performance that world. story would of review sufferers our for events we These
our and We us are society who all helping the are for safe grateful function. heroes keeping
teachers, leaders, forget will to kitchen the and and armies sacrificed doctors, we nurses, have responders, the firemen delivery you policemen, us. for people political first the done our never workers, To cashiers, what our our soldiers, the cooks volunteers, and healthcare workers, of and
triumph before. We in together have are all tragedy never in ability and come that ways over we our to united to
been the priorities crisis. Our from of outset clear this have
are safety, of ones. their health the committed We employees to and well-being our and loved
doing are judgment, ensure head leadership them kept We our secure. that have they for fully of Green, done sheer helping we been sure make track. can us are Human a in has EQ Resources, everything during on and to of job us and support our Stacey remarkable trying employees insights, a Her that beacon time us supported. and this are all
to and advice have to For our service provide doing we period. clients, superior we during committed can investment tempestuous a everything results,
thing health confident the do long-term we the our best are on value for is business priorities very of that these shareholders. and its We focusing can to
Turning performance. to client
across was opportunities to difficult equity great seen globe. purchases. in the market most these classes have investment sold have over fund asset processes once debt have what to time-tested quarter first February, our been equities, in the estate markets a decade, challenge. The the late our in and up Since correcting were began again environment investors have real investment also analysts in been and finding They clear-eyed and they
implementation allowing This mid-March. lockdown the for to smoothly our transition also had our allowed processing trade of portfolio a streamlined in comfortable offices operating imposition team and processes. begun prior following also in our operations within This transition remotely practicing for a lockdowns, regional
and Michele key Investments, of implementation McGinn, as Director including Keeler, well in leadership as executives, Scott were successful driving Pulver Ebrahim efforts. senior Busheri, Katie Morabito these Dave efforts, trading subsequent and in our and Our all
vast selloff margins. were and, absolute downside across by relative of majority substantial substantial assets the many delivered our a the in benchmarks outperformed on strategies. during basis protection The their we returns quarter, management cases, under our negative for while almost And all
Manning allocation, results, solution, the the that and, determinant investment believed selection & for primary of For both asset XX financial Napier is an years has several best active approach, long-term in in reasons. critically, active security
allows it long-term us ignore cycles. First, throughout success the market focus to and noise on
allows or it us Second, ride. volatility; equal investment to results less deliver with better smoother a
perfectly the Our results end beliefs. of as these the of quarter first captured both
our in disciplined management were underweight ETF-based strategies, latest the meaningfully us balanced and downturn First, accounts, enabled risk position. broadly. risk, a specifically, to substantially enter equities, both our traditional And defensive processes and
As the selloff in this unfolded put strength. client a of position portfolios
incrementally then disciplined our capitalizing multi-asset-class approach allocation, active dynamic at substantial by our to process right what exposure a By quarter, attractive. portfolios began investment underweight the to do. This end intended as is balance became the in selloff on from equity a swung more overweight, to a the Via substantial increasing risk the time. exactly we asset of risk-reward is the
of what the the or equity attractive in adding Suddenly, our positions very We portfolios. to the term of of of meaningfully equity speed to quality the these ferocious prices. available companies profile were at we were holdings, us initiating our also because able selloff, companies, backbone upgrade to
who these been to researching decades had prepared firms, analysts move quickly. in for Our cases, some were
we were selling was what The where players cyclicals we washed-out weakest sectors strongest hurdle add both at historic certain provided compounders compelling capital purchases great the rate, opportunities: able complete the an of collapse to indiscriminate prices. at of term serial to to other balance providing industries rate value exiting in with and
by March to value equity stocks our we delivered XX, us next by of elements as followed Both for well an the few during weeks. returns in have served episodic clients growth our outperformance large portfolios through unprecedented
yet rebound continued highly well great to This do to the strategies our up, our our disciplined us AUM of enabled equity continue the team to for way outperform non-dogmatic clients. approach majority during well. has in flexible, the research as Our well serve April, in on our as market
outperformance, and of Long-Term represents composite, points flagship our our FiXXX Income respectively. XX% in experienced and in client of ETF long-term Strategic XXX accounts XXX, and our Moderate which composite management, the end Growth approximately of growth XXX composite As under assets of March, basis our
hire that investment While we turbulent managers pleased to recognize at not extremely our clients negative absolute environment. ability a such are we in returns, add value for do
Our XXXX-XXXX, full long-term XX our annualized, come points, Since invested inception after XX years outstanding. compounding results peak XXXX-XXXX; January XXXX-XXXX, to XXXX; in a XXXX; has a XX% decrease in XX% almost and severe just basis XX% XX%, the by declined in getting as million were XXXX-XXXX, This would current XXXX, today. S&P and a X.X% Growth trough; epic ago, through annum its decline; per decline are the crash month. approximately downturns despite at benchmark the has be a in in in composite $X.X Long-Term fees. $XXX,XXX inception outperformed blended XXX started; then when worth one compounding we turmoil, in
Long-Term blended annually. just years, XXX return major outperformed market Over basis our by downturns, Growth past XXX its and composite three with total basis points S&P XXX per annum benchmark by points XX the beat the
record relevant been. our tremendous ability protect our downside, track of and investment clearly have demonstrates with they as results, real along effective ever that are long-term as Our to processes the on
and Core strategies. rebuilt of strategies benchmarks basis quarter, compelling XXX multi-asset-class our and the in points, respectively. entirely vast records have respective and one-, Beyond short- track meaningful In to by XXX, Each these now relative performance rolling outperforming unrestricted Core Equity, equally of Equity the outperformance portfolios, U.S. our been our all the XXX, across three- records. results and first their our reflect Equity delivered Non-U.S. five-year investment across composites portfolios, traditional all-equity their intermediate-term have track impressive majority
Page on X supplement. these are of All figures the available performance earnings
suite and Value of a for our records start outperformance. Value builds XXX already Value-U.S. basis outstanding composites points for admirably, difficult relative long-term Disciplined The Our broadly, well. strong XXX as Disciplined performed the track In our value-oriented delivered Value-Unrestricted Disciplined suite. to Disciplined and year environment on equities,
and continues XX to its returns, Our by Rainier Small XXX XXX the one-year Discovery International truly annualized, of a rolling as points Discovery its to percentage points and outsize Rainier alone, points. is full relative basis XXX QX in Cap International of driving benchmark stunning Fund On relative basis, generated Rainier outperformance outperformance over ahead International basis three- achievement. five-year post team a
in Series its its Finally, both by quarter basis our over points benchmark five-year XXX outperformed Real basis and the of on ahead benchmark is points XXX by basis. a Estate three- and
Tax of our bond Series in New quarter. Tax Series, Diversified Exempt strategies, were Morningstar their each Exempt percentile namely municipal and groups first Our York in the the peer ranked
results disciplined philosophy, key meeting client doing The share in well. the to processes future to it, in Like establish, capable when past we made past maintain people and is we really offer have we that more are all important no high-quality performance and future. mistakes the have and of seasoned will refine investment of is assuredly is to have and investors, it our I exceeding caveat objectives. of and guarantee say the to
Almost relative Napier universally, results downside move strive and These of we relative market strength return-focused for clients performance as our deliver degree the philosophies for strategies delivered what are and results. of position who and forward sensitive investment tomorrow. during protection accounts to put of & significant as we a selloff: the a absolute more we Manning to us investment build in
XX, XX% economic even few I have seem next markets, and environment. with over from globally the might data remaining awful, which the outlooks quarters. thoughts the a somehow uncoupled offer bottoming the as particularly markets and employment from on economic equities, been employment since have on rebounded companies March of earnings couple capital just bleak reports bleak and Equity
and banking bolster Markets in system. largess emergency and unsurprising. measures the are This immense have and and disaster finance prevent economies in shown is mechanisms globally which speed banks to ahead. financial look in place ministries Central discounting remarkable putting great
earnings being Current consumer XXXX pie. enormously the estimates levels, much by make of and hospitality utilities, finance, media, not to helped rebound about healthcare, and energy, earnings XXXX consumer in More sectors travel, and virus. S&P vulnerable smaller are earnings collectively a technology sectors, look whose durables, by portion for the staples up savaged to
current reasoning at level forms stocks. equities, also support an meaning flows discounted. or is prospective XXXX as the Analysts' to interest rates are no for many do of Low which of per cash future minus, around around returns fixed $XXX, earnings ultra-low and of share in rate which equities, of projections S&P support TINA lower the on globe, provide strategists' plus "their the the alternative" acronym level income
So plausible with as be economic perilously important the earnings maybe there probably monitor the statistics not data. epidemiological equities global this or backward-looking important data not high. all to equity most kinds of are are most remain are scenarios. again, But contemporaneous and reasoning, then even ones The may vulnerable, levels and
re-openings the the That Who predicts will be. is still the XX,XXX is it May, in yet weeks cases new in end per knows York of in sobering. staggered incidence versus country. impact New what of cases rising the XX,XXX day COVID-XX ago, of truly area model the peaked new FEMA’s to currently. The the country of XXX,XXX metropolitan rest by
yet they so, will with not or How just be an amount manifest? about are waves risks What Is devastated? flu still malignant? there of the we the restrictions? further were mega when? as vaccines? If it City Mexico There don’t and their of Weather? Effective is be Bangkok, astonishing treatments being more Why there the understand be the XXXX-XXXX and Or status Delhi, demographics? milder Jakarta, Cross-immunities? are cities global will not Will south effective epidemic? like virus.
global will that gives seen up, All saying positioned the But limited number of this or be management have over from and the to I of whether our equities we have active we they into go sideways down is track here confidence next record us visibility well we quarters. asset and of way adapt. in that whether bottom a
Let strategic initiatives. me about speak our
encouraged is ultimately there For enterprise be while business, we at still work the we recognize level, success are strategy by that the of to much investment drive the done. results at our our which level
attractive entirety to differentiated experience systems; our which technology fully deficit number To the strategic on intermediary presence revenue office turning source ripping operations, and integrate where and a developing and establish further pursue investment asset that drive business employee of offerings; now competitive improving three, material to Wealth turn level ownership management virtually small transformation four, strong, and to management digital are at our capable refine knowledge discussion simplify expertise of follows: with of the to on key through will honing I a our to we and our and differentiated allocation to of by leverage our and five, Management the and ESG a opportunities; into front, expertise regional and by as and asset to end, our distinguished firm. a firm a earnings enhance see literally to of initiatives middle investment and to into appropriate to growth strength, institutional capabilities; the segments in out investment our a playbook increase strengths efficiency a and replacing six, of profitability; build back our risk active executing the
now sales Pittsburgh, objective consultants way Pennsylvania, service XX. add me where regions financial steps of located six a the Continuing new Wealth the by total of on increase and three strategy. Management. consultants Columbus, in added further Tampa-St. with our both physical first size Let is elaborate markets our The took starting our we These to in the of team Ohio, talent build-out presence and to initiatives, have Petersburg, bringing quarter. new to key our group, consultants Wealth already will team to the Management new Florida, capacity. financial We in build-out
Our looking Megan They to Trust and our existing in of Wealth capabilities greater are in to strengths the to are ways Exeter custodians and they plan complementary the potential our and are extract much the our owned Greg Mark for division. providers efficiencies. Macpherson order investigating augment trust simplify Dana value leadership wholly steps service of And They meaningful Henry, team the potentially exploring considering additional alternatives Management are to at arena. web generate complex Company. execution from offerings investment of strategic capabilities Woodard, advisory Vosburgh driving the formulation and of
intermediary institutional our and effort. to Turning
Our institutional McGreevy the under working X with highly clients intermediary have and similarly engaged prospects leadership of past and the Aaron of been over teams months remotely.
market. The to will making channel the our they and traditionally interesting this for important efforts decision expect moment. third-party majority are than of differentiated, is focusing and the offerings the a in RIAs as with ours whose are We are. more we whom advisers Paul are, intermediary performance are firms as sensitive up turning smaller whom made see we They things of the that in in fastest intermediary interested We institutional on independent business worked. faster and capable would are and and investment corner FAs describe
Our business institutional dominated by is plans. Taft-Hartley multi-employer
interest key Napier. the the three-plus market, Manning our & with relationships performance past rebuilding coupled the developments at are company consultants investment other have that in We resurgent years over rekindled as in with
quarter better the rates, and sustained the flows solid. difficult would no despite prior As year’s negative as circumstances the Paul will detail, of at results while were half begin materially last sales, environment, we that to better surprisingly outflows us things The of for few the rate run new as first in years. rate under the Though normalize. declined they gross positioning channels, were I than interpret across
technology. Let me about speak
digital to discussed an we continue we’ve aggressive forward prior As on on calls, push our timeline with transformation.
digital and our on been We this has earliest Chris are a us. maintain health steps business his business team of seamlessly strong CTO, our we navigate the during today’s our spectacular grateful the and crisis. transformation, needs to experience employee all us Briley, operational and have of simply allowed it supporting for timing as as
seamlessly year elements may been ago. of our a advantage environment had amid disruption, that’s have provided not volatile all business us technological an We incredibly or we even market with and without that an so have managing
sales efforts marketing-driven that we of working current our digital-led, environment towards the accelerated has efforts. many been to augment The direct have
webinars, by the client content events, marketing has prospecting Given and and Kingsley via face-to-face in-person inability digital meetings engagement team, distribution. prospecting efforts our marketing ramped digital-first webinars, our to hold Nicole Brunner, led servicing
digital responding are to the prospects strategies. and new engagement well Clients
last last some we year’s; And had compelling in hundreds environment. deepen a in literally current the attendees. opportunity past ways offer reach times these the two our over of as two webinars will cases, Our the attendance to broaden to relationships believe four months and beyond that
Beyond the technology. to in the make necessary near we investments term, continue strategic our
have deliverable remotely. to the remain are implementation client being quarter, progressing with all and We in first the despite partnership on we InvestCloud, with well our third track done our
transform plans Charles the modernize River trading management by for early efficiencies tracking Our processes, realizing This and way. to and is integration fall. our the our promises along implementation full order
the And and Workday industry, finance look our forward the come finance stages early of is HR streamlining and the that we’ve we implementing their leading will into the technology provider via begun Workday and in department. to technology. simplification
for our I’ll but speak cost later our implications about business favorable efficiency longer-term profitability, and clear large enable in it streamlining and and that with near-term of profitability. investments is will simplification structure meaningful our technology processes,
of Turning results terms in to clients. about team I research. delivering research great deal discussed of accomplishments the for a our
initiatives repeat won’t research are our here. that numerous I to on There underway strengths. So build
We efforts low allocation strategic around decisions ensure interest making that and and a environment. in rate persistently most evaluating in the effective thinking dynamic comprehensively our especially to are are asset way, we
always Our risk tools. working processes. And concerns sophisticated core we risk more our always it fully and we decision a are our in management strength, using been factor to while making, our has have are refining research integrate a been ESG monitoring into efforts
strategies; manual tangled noted, future. in And as service improvements areas: I which complex, where of we number important platform, a of will efficiency mostly we the are looking processes; where, to overly and our service/fund within operations, with main as in where following web our for the we at trust are have minor-flavor simplifying our our efficiencies have variations research, and overly services and providers, of simplification SKUs, yield initiatives technological complex company/client IT reduce coupled underway and
that we inherently yield initiatives their I over we this insecure to during time. crisis as want jobs during on time. the in means priority them the want be secure do I outset, And clear, put these that indicated results at however, this will employees
about will note with shares speak will week possess it closes which Manning, outstanding. I fully next employees we diluted the and further, ownership. will founder, of our that after employee the board when on Bill XX% the exchange Finally,
unvested Now five effort the over employees that ownership in units of meaningful put the and represent just years, next Napier. over to restricted vest our and & in will half an that future of proportion stock restricted important step stock hands our in is leaders Manning those the
about addressed Having going are we perspective initiatives, on now how like provide business, I’d thinking forward. to six our a our
determinant this equity most noted And I level for the markets, stock limited the the visibility. our is of outlook revenues, As since unclear. is important particularly quite into capital of global earlier, markets markets, uncertainty translates single
So short will term. not the I forecast
heard, are and impact firm long-term course our to on a have believe you initiatives refocusing resetting the having major financials. our from that a over we We our several evolve As towards strategic of sustainable will growth green shoots success. for years next
urgency that and sense move we a know high, fast and Our a as of continuously. and as we management team improve is firm must
earnings or progress and Broadly profitability and and within horizon to way the next growing investable focused pretax intermediate-term inflows, us EBITDA this are on a on million, level reach turning and believe but next, the to speaking, or will these to improved targets to making that every XX achieving net not $XX that or single year better. on we begin day. XX%, months, happen meaningful importantly, we to we now a margins towards operating this fiercely XX% are to driving to significantly and that of brings an over Again, tracking outflows can we must path better,
for existing greater story. in bringing & and shares our structure. little next ownership will capital Paul, and provide month be to Lastly, historic his accreting will color this Napier’s notable change I’d Last cash private Paul week to purchased retired, to detail. founder, to of more The like Bill our Manning, conversation the interests the shareholders. a for chapter around turning Manning a recent exchange, close tendered before describe
and General as And of Woodard, exchange exceptional Battaglia the our Greg well Kingsley I to our Counsel, client-facing would of teams, the Henry Megan the for process. acknowledge Sarah work as complex Paul leaders elements and managing of McGreevy, and and Aaron the Nicole like many Turner, Brunner
client far, change clients. absence We have respect to account consents, X,XXX with part XXX% being our negative base. separate control of about so separate of account action one-half consents agreements, in so These provisions are management the agreements far received positive the with investment on with reassigned technically secured almost the in of of
that so the encouraging. engaged fact consented actively have many is So, really positively and
the mutual we change outcome. expect shareholders Our on and will in a be control June, fund voting in favorable
a the penetrating connect immensely minutes to much his to enduring. courage few Bill evident rigorous dots and Now on employs ways; an courage skilled skills, let first, critical about in aggressively disciplines invest and analytic him extremes incredible like has him. is firm unparalleled most allowing our take research That adherence third, He and the Bill’s me speak in Manning. to insightful in time-tested unusually today. where virtues impact for three investor second, disciplines; is market, who been abundance: during
and to execute for follow his processes allow and establishing successors culture foresight been over though gratitude he past teachings. for XX leaders decisions his Bill perspectives and many investment And great of day-to-day chair. We engaged was owe instilling has Bill the or investment to him our in not firm important deep instrumental he board deal the operations allowing strong research has has of successive for years, offered research footsteps. as responsible disciplines years, in his and investment served that with on insights a a in
beginning in investment tremendous research that success done kind has at the is of the honor make that of him illuminated we proud. exactly leadership As Bill call, in legacy representative of current the should delivering a
over on more call for Paul? And Paul to the with I’ll financials. that, turn our detail
Thanks, joining today. and us thanks Marc. Good afternoon, everyone, for
April XXXX. like Manning. his Before over for indebted XX, Bill to up years. here off, and guidance where going XXth is week, Last firm’s we would anniversary Everyone today’s vision of unique circumstances, Bill amid the pick through our to acknowledging results, celebrated by Marc inception, the the left I
to that has the with been the XX. and this it next Bill for XX over moment great the have excited celebrate over grow to first years, we firm all that to further over the take to who a pioneered business our As someone accomplished years, are was opportunity XX been shared appreciate milestone. has We
first remarks then annual my to upcoming organized I’ve further transaction shareholder rest outlook and our up of on thoughts the results of with discussion followed for our to for the address wrapping the quarter, exchange by XXXX. some close the
my of and some earlier, mentioned calculation GAAP non-GAAP on Nicole are income the will in to details economic make our As remarks press of the income. measures: financial reconciliations economic reference included Full release.
Additionally, our release limited quarter, reporting of no sales utilize We on now under portfolio. it impact cycles this intermediaries our total funds. reporting I’ve find our flows, bearing by and data assets new wrinkle our sales third-party or yet of includes this estimated our the press flows on because AUM nor investors This channel helpful. the based is hope as by not channel. estimated does enhancement management assets described investment business has this a fund that portion that our available mutual for cash
March last XX% decreased outflows was Starting from client depreciation. XX. December $XX.X down $XXX with $X or $XX.X assets under approximately of to net This result as million management, we AUM decrease of billion billion compared XX%. March When has with and $X year, the billion, finished XX by market of AUM billion, in in of
results client gross inflows influenced COVID-XX the by started Many restricting pandemic, early travel business in the are quarter we March. of including our until for
and prospects the contact resulting the and the a clients efforts, both virtually able While to to volatility we with and through selling marketing quarter. our health was the were market to digital platforms be crisis during impact constraint public digital maintain fortunate of
under were by team. million it our during $XXX by rates. the XX% team, through encouraged competitive improvement and sales quarter, institutional the $XXX with service-driven to consistent turnover retention inflows coming our through circumstances, at or and Approximately our intermediary and sales came average of continued results came last million activity approximately Management year. gross $XXX million, Wealth contributed another our inflows, our nearly with We quarter the and client model Gross in inflows the the
$X.X Gross the X-quarter for $X.X outflows trailing average billion. an $X.X quarter outflows our gross billion, from and quarter of billion improvement from last client were
rate retention account during separate approximately quarter was Our the XX%.
By quarter team institutional sales team Management million the million outflows. outflows had the and net the Wealth of intermediary had client net $XXX team, $XXX during of and
intermediary to While make we half are remained business we quarters. and future are the improved position that for traction will optimistic are continues in that we third-party net momentum institutional Though distribution outflow seeing flows Taft-Hartley the carry our channel, intermediaries. up generating excited quarter, in into are of about through approximately a we
the the performance across decrease the for absolute portfolio reason AUM. Negative is primary in
As few Marc relative anywhere highlighted significant between our to few exceptionally performed in his quarter. measured extensively performance performance a there a the remarks, during lag business, inflows, and often on our between products In quarters is a basis years. a
not institutional been been and has our is though at For lag range, inflows deterring sales, end our the that prospecting experience that between has longer performance the of efforts.
through our the clients substantial term successes levered prospects. that less nature, meaningful and business a and a intermediary to could Wealth as AUM it a result particular, see our out Building good believe performance in for its more products client that distribution to performance more remains the the and Growth has volatile priority noticeable asset strategic our become as diversity increasingly our intermediary Management quicker Wealth for However, but us and to profiles. growth can multiple we balance translate business. compared growth in been help always of as in possible a distribution and business, team near the establish of uptake channels recent successes Management has solution-driven a to and priority, potential is
quarter. quarter, margins reported basis last for P&L, $XX.X quarter to revenue million basis of reported with first and the points, to now revenue overall we of compared XX points revenue XX Turning the of million $XX.X
of XXXX. quarter $XX.X compared Operating impairment $X.X fourth million, of million quarter decreased Operating decrease the reported of of the our compared we to first have quarter were a charges expenses expenses transformation. from part as million decrease by of $X.X that stems XXXX. $X digital Approximately million to last
approximately Quarterly compared of to compensation related by quarter costs X%, decreased XXXX. and or $XXX,XXX, the fourth
compensation However, a approximately at remains of elevated, XX%. percentage revenue as
as the well representing severance as a Compensation as the from XX-person the overall quarter decrease decreased of from reduction to size year. result compared March of employees the a in of the now XXX as a costs quarter of start workforce, XX, charges in in decrease the last
stemming offset However, these in at increase benefits, XXXk compensation increased stock-based of long-term in an match its decreases by start firm XXXX from payroll increases the the awards our as the year. as were partially well incentive as
We incentive in payments. seasonality XXXk some the the of also match given typically timing experience compensation
in Distribution quarter, non-XXb-X points less X% generally servicing which expenses decreased in assets, and funding fund to X% with in line of basis represent Collective assets, Trust decrease approximately custody XXb-X expenses XX quarters. Trust These changes the and than the is due average funds. Collective during average prior by between business and the mix
previously, other by mentioned other for the XXXX. approximately initiatives. to operating the operating our range reported is fourth quarter I in revenue, XX% sequential which from caused As concentrated to related operating At of XX% quarter, expenses $X.X expenses most technology total our the and for million represent is down is slightly decrease of the XX% charges expenses we that in now
operating $X.X and of quarter first With operating million. $XX of $XX million million expenses, reported we revenue of approximately income
amounts million agreement, loss. as balance on by legislation the we a losses sheet tax the and, the increase in of $X.X realized tax TRA, non-operating paid the reported of increase CARES passed under be the This our benefits of quarter, expected result are legacy result shareholders the expense future losses be to expected benefits out therefore, and to our However, terms held $X.X holding under anticipated non-cash the $X.X the during a related Under marketable receivable majority of the securities of million Act. non-operating liability the will a to the on in the our recorded is the TRA. as caused in million tax or payable
of million. loss GAAP As a quarter, restructuring pretax reported $XXX,XXX a we on when for excluding an strategic pretax the basis loss a million. economic non-GAAP a result, we On $X.X reported of in the quarter of basis, $X.X costs approximately
the this change the While be tax payable summarize, rate explained the $X.X a attributable of reported To applying due a in or economic was pretax TRA loss amounts increase we net caused basis. also can economic million, Act. our changes per negative, to CARES the $X.XX rate under this in in an that recognized under benefits tax non-GAAP will the effective tax increase largely adjusted tax share. income under lower, TRA, by after in income result This effective the case the on same amounts the
expect report a future to to and on appropriate normalized in calls. effective We more will quarters rate tax return as updates future
payments balance up we XX that Wrapping of is the from of investments, reported quarter. to The debt. were attributable cash with and $XXX no completed decrease on year-end million December during was quarter, at sheet, and the looking the incentive the the timing expected comments approximately
quarters. will On monitor dividend future in April directors payment to potential X. quarterly dividend of a we to recent the the and on Management most following plan reported suspend continue May our our board XX, for the of dividend the
X.X was the million Turning on will during an the quarter result approximately awarded adjusted increase quarter during to saw to on of stock plan. long-term million outstanding shares under next XX March approximately over ownership, the vest X from we adjusted in restricted incentive the share This our December These years. XX XX. awards count the units million outstanding XX
the we And making will be for the transaction. we week the including private to This we ownership. years. prior approximately anticipate year, accretive done our in next tendered as cash, exchange complete board cash private the subsequently approximately units have exchange units retired, closing shareholder of all elected on, expect sheet Bill accordingly, the million to exchange, complete using The entirety Manning’s of the of the balance Moving legacy million shareholders. to directors and securities transaction annual $XX XX to use independent private of legacy shareholders The transaction. non-selling from
decrease unvested exchange XX approximately will our shares of including adjusted adjusted units. outstanding both awards by by the private a Class our amount A shares in transaction, firm’s the held legacy directors million shares the and team, shares, small adjusted of to held board XX outstanding. still vested share count XX% from held the own adjusted and million form of closing those will Upon Employees approximately
percentage our to XX% that by when However, awards excluding dips employees. held unvested
and of Company the Manning held Napier, of Manning managing Napier increase Capital XX%, Group, XX% with ownership to Napier Manning Group, the including Napier other Group its specifically, by the owners at see & from the & approximately Manning remaining & Manning Napier looking member, When & XX% ownership Inc., Holdings. & will
the has taken since Looking recovery the ahead, of have place in that equity March. end market we participated
April reflective improvement. release this preliminary of as will be will we week, under Next market of management our assets XX, which
term, our To that may uncertainty circle given channels back solution opportunities prospect we to overall the track some our are we the holistic expect near bullish initially, of to with the virtue environment of leads be the slow. across stellar comments continue that Marc pursuing made offerings. inflows are we In channels, though across our records distribution about by and continuing long-term
of for our to relationships can contnue that on build-out execution initiatives focus through continued technology Management taking our our team we such development support performance and has deep business our end, to possible. clients; strong the and intermediary and efforts our grow keep volatility; of the wherever investment and of enhance to discussed: our team the solutions, technologies through is digital results and improved institutional strategy of business, have distribution that simplification and differentiated To the withstand Wealth of to our improve strategy, our the marketing; we our improved to deployment the continued client client experience advantage enhancements, strategic through drive delivered the our to including leveraged of business that experience paramount state-of-the-art including Workday, opportunities; employees to workflow for InvestCloud execute
is victories simplification, We’ve there already that a seen we our believe many process small result more can but be as still that of organization achieved. across
if us to an our and will evaluate review example, of for make simpler be exchange corporate overall structure sense improvement. would transaction structure For upon a it the closing
closing, ownership among the are there of are intensity ahead firm goals what Throughout And finally, and these and we our and forging the increasing about future energy of goal excitement capable renewed employees. on our with of achieving. urgency. In we is level a
our as our to As initiatives, this process. future-state as our moving focus us is in on for quickly long-term harnessing values strategic executing key a energy on team, and shareholders leadership possible and the meaningful creating
as challenged while future. expect uncertainty will this, both do we the we financials line navigate pressure on we the that margins today’s near with for investing and As top remain in growth term our
to top been people that our during of meet our of We’ve to the drive helping time people that their now. goals are and the our protection most of well-being ability are that our valuable is asset. our have people the always continues priority. where of unprecedented entrusted our to this and our top priorities execute and Protecting way can be environment for clients value the Providing clients can believed best health employees, their best The long-term in us uncertainty has an right our we assets our clients shareholders.
concludes turn That everyone the Angie? joining. I’ll questions. stays Thanks Operator for over back Hope call formal And for the my to remarks. safe.
question Ken Your of J.P. Instructions] [Operator Worthington, first Morgan. the comes from of line
like I’d extent dig into see next base little the they good over to for expenses to quarters. what run couple look guess we I to to a the expenses a current quarter rate the of and provide bit or as
$XX.X was changes payroll about comments but there in your anything in the respect and million? taxes compensation, headcount, else on the So
as should in for accounting the I XX and plus question, $XX.X think severance, sort million, and well. don’t XQ throw But see of think we there that where was that people minus, little expenses, payroll I or but part case, into the the taxes is XQ? it’s I’ll just any
you’ve of thing. employing. $X.X cost And million, the then other There’s a is initiatives. savings operating number same again costs, There been initiatives at that
rest is the of again work the that of year? the off sort base for right of So to
a is severance was fine there this of that thinks Marc at it, approximately for on And in the just the to anything can it of and that the Paul. add-back. shot quarter, Thanks question. first and I one the part restructuring in he items strategic put guess I’ll there’s of missed. I follow Ken, up was take if point a $XXX,XXX
from quarter, still but So was fourth the it’s some there there. down
I biggest on payroll compensation, translates performance research both wildcard is that think that comp look is which market to relative or you incentive and performance. team and the as at absolute specifically, the based how
the our March for what is XX, ended quarter through accrual XX. March representative happened had So of
revenue that since is form we seen that have obviously point as of in quite we a biggest of forward. form see from that any variation single of But then, in recovery the this compensation. will Now well good both through driver the as come the and analyst
X. We’re here on May
the We fixed intact keeping mentioned as so And team have clients. for of far in compensation our remarks, now keeping on priority everyone any we and costs in executing seen right on not our the the changes substantial focused quarter. second is
obviously, it there. spread a lot they’re license enhancements way expenses, of other can costs that’s that With in, is take of Revenue, a pretty of either rolling technology the over percentage when the contract. the number, implementation be good regard But wildcard operating I to especially the a term you are think capitalized costs They’re revenue. capitalized. a as fees that or those are and with
perspective So we right things be to now. relates it from smooth the that as it know should operating another pretty
example, I at have but point. travel, it’s on would change may model spend your we I this think some in we that the don’t that for that I amount enough savings know that
other and there you may any follow-up So stop take I’ll have.
questions. are you no further today’s conference Thank in [Operator for Instructions] participating There call.
your You lines disconnect day. this time, wonderful a at may and now have
everyone. Thanks,
well, please. and stay you, Thank everyone,
We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.