Nicole Kingsley Brunner | Chief Marketing Officer |
Marc Mayer | Chief Executive Officer |
Paul Battaglia | Chief Financial Officer |
Good evening. My name is Erica, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Manning & Napier Fourth Quarter 2020 Earnings Teleconference.
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 8:00 p.m. tonight. Time Eastern is number the number PIN The XXX-XXX-XXXX XXXXXXX. is dial-in and been all a time this placed participants At have in listen-only mode. [Operator to turn now my over is Ms. Instructions] to the It floor pleasure Brunner. Kingsley Nicole
for Thank joining & you, fourth full and XXXX quarter thank Erica, you, Napier's us to discuss and today Manning results. year everyone,
within forward-looking relating like deemed remind known not from & to no obligation actual facts, historical based statements that begin, results Because meaning these expressed risks to update guidance, statements be certain these the cause important statements may financial we Napier assumes statements any Private Before materially Reform to differ by made involve the Manning those I and are uncertainties, forward-looking statements. responsibility there to on of including could or or would unknown Act everyone Securities statements. during call of any that forward-looking factors this Litigation XXXX. implied and forward-looking
reference measures. that, Chief I some Mr. the our related Marc? Officer, With comments filings. During be Mayer. reconciliations over to SEC call earnings release non-GAAP Marc in Full to may will this found can Executive GAAP and call, include our financial turn
improved we with our clients Nicole. an improvement we strategic the good always in our quarter But year. to do, would as Thank main we position results and will have as and and allow as clients, return financial progress both elaborate our excellent fiduciaries, will begin for always two, I will to on each capital our we in a three There of has results these. and we you, to fourth that shareholders. progress of make. One, Paul are and full initiatives; us for review like our should, points first, made on translated three, into financials;
manager. are they AUM, back core have the early solutions XX% track traditional and Let's represent class fully XXXXs to are an integrated we as with as begin dating and records our active, approximately investment to multi-asset who of total wealth
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retention ended rate separate account the December Our to for months XX% XX improved XX.
to reported the of we during million revenue to revenue million XX of one-time of fourth expenses points. the analyst bonuses quarter our for an to last Compensation margins decrease the the in margins previous by million and workforce. compared severance reductions last quarter. XX XXXX. to in was to fourth costs of revenue quarter our from mix of average compared the $XXX,XXX were The in X% business approximately our revenue $XX.X finalizing basis points $XX.X costs to in well P&L, of million with our $X.X compared as compared quarter, with by basis million $XX.X driven was $X.X overall in Operating increase due Turning or quarter an increase reported quarter, The and related period. quarter increase increased assets revenue changes as
assets. the explained X% Our to a of basis revenue quarter. percentage activity a last last the expenses be XX the $XXX,XXX one-time costs mutual expenses the was recognized in were compensation business $X.X specifically attributable funding decrease by of of is $X.X gain to majority million collective of $XXX,XXX an last and Other million as from collective increase by quarter, quarter The the returns that can from change increased revenue collective operating expenses. our or expenses quarter, quarter operating Distribution, changes reported custody XX%. servicing in the continue trust These the XX% related funding during and due income invested expenses of decreased other on as of investment a average approximately represent cash. by represent fund as quarter. These reduction X% points and as for mix. quarter, overall predominantly in $XXX,XXX Non-operating approximately the for to assets increase and trust was well average
quarter the $XXX,XXX quarter. of GAAP to After As measure result, pretax accounting $X.X we a for approximately million. a income, million last non-GAAP reported we costs, reported million on for strategic income of compared of a economic basis, $X.X $X.X restructuring
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our of of last easing Similarly, free anticipated expect goal net balance work and comments Before final our stabilization given improvement and points flows of anticipate income. in client toward overall AUM, strengthened reiterate have client we operating top prospecting on ownership, $XX flow restrictions the wrapping solutions line that the for flows stated and our XXXX, our investment with revenue, a cash regarding our year. inflows AUM further way we margins and delivery and sheet growth efforts operating up continued call as of the limited our results, million COVID-related outlook for continued comprehensive improvement of some in P&L. I'll during few in We wealth management
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costs into invested impact compensation be provide plan expect relief continue sheet employee additional our I'll is P&L comments this invested of overall as and of a up will our our investment strategy implemented on our a begin balance some important for revenue wrap investment materially deferred margins in do whereby to Also that Implementing will step the decrease noteworthy, workforce. a things Fixed strategies we period. during highly with ownership. not continue compensation our and to recently to most in multiyear to employees our incentive XXXX. fraction we reduce size paid plan, over increasing in should we an So, compensation XXXX.
and cash for earlier. during in cash reported was increase this assets approximately earnings balance and The the strength decision by no flow stock quarter year the of announce with expectations driven cash in including were debt. The in For year-end, and liabilities. factors we $XX million repurchase of free our the September operations, XX operating mentioned sheet investments and from that changes of to Marc
about capital stock of Directors us. for and for operating free a authorized continue the shareholders improve, a priority be of Board to buyback. cash flow which And the has position will million rest funded our been of our year. of existing Our generated buyback The XXXX, $XX the return that by this be will this results always effort to feel of restart as in to important is share we it form cash
shares increase stock adjusted X incentive issued as options held the during shares, of million invested shares by quarter. outstanding September issued stock million X XX options Class under million Regarding The A XX.X plan. by XX. outstanding shares as December is XX awards of previously unvested XX.X to ownership, long-term our XXX,XXX million December as adjusted our share count XX.X XX.X adjusted stock million approximately legacy of increased shareholders, units The from vested million and includes driven held privately
As of awards. XX% including and December own of XX, our outstanding, shares employees directors adjusted the approximately unvested
of retain in as long-term Retaining to awards clients clients framework solutions the for the for awards meaningful These adjusted as our plan five a characteristics our share and years ensure our employees, between These mentioned, equity count $X earlier will be and value been incentives next our long-term million cycle. to has tool delivering Delivering March our recognize invest growth helped while XX. our reflected over a has part alignment Marc issued this key objective. future key providing of key employees been and will long-standing we are shareholder from a and awards equity our As utilizing of year-end contributors employees these us have employees by key to shareholders. compensation and of month, creation. for
intention process. our shareholders create been our significant not it to However, dilution the has existing in to
an As for retaining we to create that sheet value to through we driving growth to key clients now solutions structure, creation By at share and our positioned contributors, is while there our ensuring today's shareholders. That our our for shareholders, are concludes deliver capital value call. best-in-class look and returning while capital shareholders balance opportunity we are to buybacks.
addressed Manning you listening call our and today, Investor have any for topics on will to inquiries & back I'll the operator. promptly the in and now your equity. And turn Napier. Erica? portal using Relations us questions Thank we for contact If address on over you the interest the website, your please
gentlemen, you today's concludes participating. Thank for and Ladies conference call. this
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