Duff & Phelps Reports 2012 First Quarter Results and Declares Quarterly Dividend

HIGHLIGHTS:

  • Quarterly revenues of $108.9 million including reimbursable expenses (representing a $22.0 million or 25.3% increase over the corresponding prior year quarter) and $106.3 million excluding reimbursable expenses (representing a $21.3 million or 25.0% increase over the corresponding prior year quarter)
  • Adjusted EBITDA(1) of $18.0 million, representing a 16.9% margin and a $5.2 million or 40.8% increase over the corresponding prior year quarter
  • Adjusted Pro Forma Net Income(1) of $0.22 per share, representing a $0.06 or 37.5% increase over the corresponding prior year quarter
  • Declares a quarterly dividend of $0.09 per share of Class A common stock

NEW YORK--()--Duff & Phelps Corporation (NYSE: DUF), a leading independent financial advisory and investment banking firm, today announced the financial results for its first quarter of 2012 and declared a quarterly dividend.

Results

For the quarter ended March 31, 2012, revenues excluding reimbursable expenses increased $21.3 million or 25.0% to $106.3 million, compared to $85.0 million for the corresponding prior year quarter. Adjusted EBITDA(1) for the quarter was $18.0 million, representing 16.9% of revenues excluding reimbursable expenses, compared to $12.8 million for the corresponding prior year quarter, representing 15.0% of revenues excluding reimbursable expenses. Net income attributable to Duff & Phelps Corporation was $3.9 million, or $0.13 per share of Class A common stock on a fully diluted basis, compared to $4.1 million, or $0.14 per share for the corresponding prior year quarter. Adjusted Pro Forma Net Income(1) was $8.5 million, or $0.22 per share on a fully exchanged, fully diluted basis, compared to $6.1 million, or $0.16 per share, for the corresponding prior year quarter.

"Duff & Phelps' first quarter performance, including a 25% increase in revenues, reflects continued momentum in the business," commented Noah Gottdiener, chief executive officer. "In addition to organic growth, our results exhibit enhanced scale, synergies and strong earnings contributions from our acquired businesses. We are well-positioned to capitalize on a recovery in the global M&A markets and an increase in global restructuring activity. In the months ahead, we see great opportunities to continue building the business organically while also pursuing a robust pipeline of potential acquisitions."

Declaration of Quarterly Dividend

The Company also announced today that its board of directors has declared a quarterly dividend of $0.09 per share on its outstanding Class A common stock. The dividend is payable on May 18, 2012 to shareholders of record on May 8, 2012. Concurrent with the payment of the dividend, the Company will also be distributing $0.09 per unit to holders of New Class A Units.

Earnings Call Webcast

As previously announced, Duff & Phelps will host a conference call today, April 24, 2012, at 5:00 p.m. EDT to discuss the Company's financial results. Interested parties can access the webcast for this call through http://ir.duffandphelps.com/.

_______________

(1) Adjusted EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro Forma Net Income per share are non-GAAP financial measures. See definitions and disclosures herein.

About Duff & Phelps

As a leading global financial advisory and investment banking firm, Duff & Phelps balances analytical skills, deep market insight and independence to help clients make sound decisions. The firm provides expertise in the areas of valuation, transactions, financial restructuring, alternative assets, disputes and taxation, with more than 1,000 employees serving clients from offices in North America, Europe and Asia. Investment banking services in the United States are provided by Duff & Phelps Securities, LLC and Pagemill Partners, LLC. Member FINRA/SIPC. M&A advisory services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd. Duff & Phelps Securities Ltd. is authorized and regulated by the Financial Services Authority. Investment banking services in France are provided by Duff & Phelps SAS. For more information, visit www.duffandphelps.com. (NYSE: DUF)

Non-GAAP Financial Measures

Adjusted EBITDA, Adjusted Pro Forma Net Income, and Adjusted Pro Forma Net Income per share are non-GAAP financial measures. We believe these measures provide a relevant and useful alternative measure of our ongoing profitability and performance. We believe the Adjusted EBITDA, Adjusted Pro Forma Net Income, and Adjusted Pro Forma Net Income per share, in addition to GAAP financial measures, provide a relevant and useful benchmark for investors, in order to assess our financial performance, ongoing operating results and comparability to other companies in our industry. These measures are utilized by our senior management to evaluate our overall performance.

We define Adjusted EBITDA as operating income before depreciation and amortization, equity-based compensation originating prior to our IPO and associated with grants of ownership units of D&P Acquisitions and stock options granted in conjunction with our IPO and other items which are generally non-recurring in nature, including but not limited to restructuring charges and acquisition related expenses. We define Adjusted Pro Forma Net Income as net income before equity compensation associated with grants of ownership units of D&P Acquisitions and stock options granted in conjunction with our IPO, and certain items generally nonrecurring in nature, including but not limited to restructuring charges and acquisition related expenses, less pro forma corporate income tax applied at an assumed effective corporate tax rate. Adjusted Pro Forma Net Income per share consists of Adjusted Pro Forma Net Income divided by the fully dilutive weighted average number of the Company's Class A and Class B shares for the applicable period. These measures are reconciled in the tables below.

Adjusted EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro Forma Net Income per share are non-GAAP financial measures which are not prepared in accordance with, and should not be considered a substitute for or superior to measurements required by GAAP. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. In addition, these non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies.

  Reconciliation of Adjusted EBITDA
  Three Months Ended

March 31,

 

March 31,

2012

2011

Net income attributable to Duff & Phelps Corporation $ 3,905 $ 4,113
Net income attributable to noncontrolling interest 1,786 2,378
Provision for income taxes 3,545 3,064
Other expense/(income), net 505   22  
Operating income 9,741 9,577
Depreciation and amortization 3,897 2,489
Equity-based compensation associated with Legacy Units and IPO Options(1) 71 417
Acquisition retention expenses 2,043 82
Restructuring charges 1,179
Transaction and integration costs 1,035   194  
Adjusted EBITDA $ 17,966   $ 12,759  
 
  Reconciliation of Adjusted Pro Forma Net Income
  Three Months Ended

March 31,

 

March 31,

2012

2011

Net income attributable to Duff & Phelps Corporation $ 3,905 $ 4,113
Net income attributable to noncontrolling interest 1,786 2,378
Equity-based compensation associated with Legacy Units and IPO Options(1) 71 417
Acquisition retention expenses 2,043 82
Restructuring charges 1,179
Transaction and integration costs 1,035 194
Loss from the write off of an investment(2) 376
Adjustment to provision for income taxes(3) (1,906 ) (1,107 )
Adjusted Pro Forma Net Income, as defined $ 8,489   $ 6,077  
 
Fully diluted weighted average shares of Class A common stock 30,077 27,615
Weighted average New Class A Units outstanding 9,050   11,130  
Pro forma fully exchanged, fully diluted 39,127   38,745  
 
Adjusted Pro Forma Net Income per fully exchanged, fully diluted share outstanding $ 0.22   $ 0.16  
  _______________
(1)   Represents elimination of equity-compensation expense from Legacy Units associated with grants of ownership units of D&P Acquisitions and IPO Options granted in conjunction with our IPO. See further detail in the notes to the consolidated financial statements.
(2) Reflects a one-time charge from the write off of a minority investment. The charge is reflected in "Other expense" on the Company's Consolidated Statement of Operations.
(3) Represents an adjustment to reflect an assumed effective corporate tax rate of approximately 39.1% and 40.7% for the three months ended March 31, 2012 and 2011, respectively, which includes a provision for U.S. federal income taxes and assumes the highest statutory rates apportioned to each state, local and/or foreign jurisdiction. Assumes (i) full exchange of existing unitholders' partnership units and Class B common stock of the Company into Class A common stock of the Company, (ii) the Company has adopted a conventional corporate tax structure and is taxed as a C Corporation in the U.S. at prevailing corporate rates and (iii) all deferred tax assets related to foreign operations are fully realizable.

Disclosure Regarding Forward-Looking Statements

Statements in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), which reflect the Company's current views with respect to, among other things, future events and financial performance. The Company generally identifies forward looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this discussion are based upon our historical performance and on our current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us, or any other person that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and the risk factors section that are included in our Annual Report on Form 10-K for the year ended December 31, 2011 and any subsequent filings of our Quarterly Reports on Form 10-Q. The forward-looking statements included in this press release are made only as of the date this press release was issued. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 
  Three Months Ended

March 31,

 

March 31,

2012

2011

Revenues $ 106,345 $ 85,046
Reimbursable expenses 2,598   1,892  
Total revenues 108,943 86,938
 
Direct client service costs
Compensation and benefits (includes $6,045 and $4,935 of equity-based compensation for the three months ended March 31, 2012 and 2011, respectively) 58,218 46,908
Other direct client service costs 2,884 1,429
Acquisition retention expenses (includes $722 and $82 of equity-based compensation for the three months ended March 31, 2012 and 2011, respectively) 2,043 82
Reimbursable expenses 2,609   1,937  
65,754   50,356  
Operating expenses
Selling, general and administrative (includes $1,055 and $1,523 of equity-based compensation for the three months ended March 31, 2012 and 2011, respectively) 27,337 24,322
Depreciation and amortization 3,897 2,489
Restructuring charges 1,179
Transaction and integration costs 1,035   194  
33,448   27,005  
 
Operating income 9,741 9,577
 
Other expense/(income), net
Interest income (28 ) (28 )
Interest expense 154 57
Other expense 379   (7 )
505   22  
 
Income before income taxes 9,236 9,555
Provision for income taxes 3,545   3,064  
Net income 5,691 6,491
Less: Net income attributable to noncontrolling interest 1,786   2,378  
Net income attributable to Duff & Phelps Corporation $ 3,905   $ 4,113  
 
Weighted average shares of Class A common stock outstanding
Basic 28,702 26,910
Diluted 30,077 27,615
 
Net income per share attributable to stockholders of Class A common stock of Duff & Phelps Corporation
Basic $ 0.13 $ 0.15
Diluted $ 0.13 $ 0.14
 
Cash dividends declared per common share $ 0.09 $ 0.08
 

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

QUARTERLY REVENUES BY SEGMENT

(In thousands)

(Unaudited)

 
     

Quarter/Quarter

2011 2012

Q1 2012 vs Q1 2011

Q1   Q2   Q3   Q4   Total Q1 Dollar   Percent
Financial Advisory
Valuation Advisory $ 37,614 $ 32,604 $ 33,887 $ 39,046 $ 143,151 $ 39,490 $ 1,876 5.0 %
Tax Services 7,547 15,128 9,572 8,698 40,945 5,488 (2,059 ) (27.3 )%
Dispute & Legal Management Consulting 13,436   13,005   18,319   22,032   66,792   14,675   1,239   9.2 %
58,597   60,737   61,778   69,776   250,888   59,653   1,056   1.8 %
 
Alternative Asset Advisory
Portfolio Valuation 6,519 6,220 6,730 6,272 25,741 7,622 1,103 16.9 %
Complex Asset Solutions 5,321 4,125 3,998 4,631 18,075 4,904 (417 ) (7.8 )%
Due Diligence 1,645   4,070   2,643   3,492   11,850   2,423   778   47.3 %
13,485   14,415   13,371   14,395   55,666   14,949   1,464   10.9 %
 
Investment Banking
M&A Advisory 1,450 1,853 5,741 16,568 25,612 9,354 7,904 545.1 %
Transaction Opinions 8,231 7,266 7,466 5,811 28,774 6,742 (1,489 ) (18.1 )%
Global Restructuring Advisory 3,283   3,615   3,672   12,430   23,000   15,647   12,364   376.6 %
12,964   12,734   16,879   34,809   77,386   31,743   18,779   144.9 %
 
Total Revenues (excluding reimbursables) $ 85,046   $ 87,886   $ 92,028   $ 118,980   $ 383,940   $ 106,345   $ 21,299   25.0 %
 

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(In thousands, except headcount data)

(Unaudited)

 
  Three Months Ended    

March 31,

 

March 31,

Unit

Percent

2012

2011

Change

Change

Financial Advisory
Revenues (excluding reimbursables) $ 59,653 $ 58,597 $ 1,056 1.8 %
Segment operating income $ 10,306 $ 9,582 $ 724 7.6 %
Segment operating income margin 17.3 % 16.4 % 0.9 %
 
Alternative Asset Advisory
Revenues (excluding reimbursables) $ 14,949 $ 13,485 $ 1,464 10.9 %
Segment operating income $ 4,146 $ 3,222 $ 924 28.7 %
Segment operating income margin 27.7 % 23.9 % 3.8 %
 
Investment Banking
Revenues (excluding reimbursables) $ 31,743 $ 12,964 $ 18,779 144.9 %
Segment operating income $ 3,525 $ $ 3,525 N/A
Segment operating income margin 11.1 % %

 

11.1 %
 
Totals
Revenues (excluding reimbursables) $ 106,345 $ 85,046
 
Segment operating income $ 17,977 $ 12,804
Net client reimbursable expenses (11 ) (45 )
Equity-based compensation from Legacy Units and IPO Options (71 ) (417 )
Depreciation and amortization (3,897 ) (2,489 )
Acquisition retention expenses (2,043 ) (82 )
Restructuring charges (1,179 )
Transaction and integration costs   (1,035 )   (194 )
Operating income $ 9,741   $ 9,577  
 
 
Average Client Service Professionals
Financial Advisory 600 574 26 4.5 %
Alternative Asset Advisory 99 87 12 13.8 %
Investment Banking   302     129     173   134.1 %
Total   1,001     790     211   26.7 %
 
End of Period Client Service Professionals
Financial Advisory 605 571 34 6.0 %
Alternative Asset Advisory 94 90 4 4.4 %
Investment Banking   294     127     167   131.5 %
Total   993     788     205   26.0 %
 
 
Results of Operations by Segment—Continued
 
Three Months Ended

March 31,

March 31,

Unit

Percent

2012

2011

Change

Change

Revenue per Client Service Professional
Financial Advisory $ 99 $ 102 $ (3 ) (2.9 )%
Alternative Asset Advisory $ 151 $ 155 $ (4 ) (2.6 )%
Investment Banking $ 105 $ 100 $ 5 5.0 %
Total $ 106 $ 108 $ (2 ) (1.9 )%
 
 
 
Utilization
Financial Advisory 75.0 % 75.0 % % %
Alternative Asset Advisory 60.2 % 62.0 % (1.8 )% (2.9 )%
 
Rate-Per-Hour
Financial Advisory $ 306 $ 315 $ (9 ) (2.9 )%
Alternative Asset Advisory $ 556 $ 529 $ 27 5.1 %
 
 
 
Revenues (excluding reimbursables)
Financial Advisory $ 59,653 $ 58,597 $ 1,056 1.8 %
Alternative Asset Advisory 14,949 13,485 1,464 10.9 %
Investment Banking   31,743     12,964     18,779   144.9 %
Total $ 106,345   $ 85,046   $ 21,299   25.0 %
 
Average Managing Directors
Financial Advisory 92 94 (2 ) (2.1 )%
Alternative Asset Advisory 23 26 (3 ) (11.5 )%
Investment Banking   76     39     37   94.9 %
Total   191     159     32   20.1 %
 
End of Period Managing Directors
Financial Advisory 95 94 1 1.1 %
Alternative Asset Advisory 23 26 (3 ) (11.5 )%
Investment Banking   73     39     34   87.2 %
Total   191     159     32   20.1 %
 
Revenue per Managing Director
Financial Advisory $ 648 $ 623 $ 25 4.0 %
Alternative Asset Advisory $ 650 $ 519 $ 131 25.2 %
Investment Banking $ 418 $ 332 $ 86 25.9 %
Total $ 557 $ 535 $ 22 4.1 %
 

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

SUMMARY OF CLIENT SERVICE PROFESSIONALS

(Unaudited)

 
  2011   2012
Q1   Q2   Q3   Q4   YTD Q1
Average Client Service Professionals
Financial Advisory 574 562 576 584 575 600
Alternative Asset Advisory 87 94 98 99 94 99
Investment Banking 129   128   147   213   158   302  
790   784   821   896   827   1,001  
 
 
End of Period Client Service Professionals
Financial Advisory 571 552 580 590 605
Alternative Asset Advisory 90 97 100 100 94
Investment Banking 127   131   149   303   294  
788   780   829   993   993  
 
 
2011 2012
Q1 Q2 Q3 Q4 YTD Q1
Average Managing Directors
Financial Advisory 94 93 91 90 92 92
Alternative Asset Advisory 26 25 25 24 25 23
Investment Banking 39   41   48   58   47   76  
159   159   164   172   164   191  
 
 
End of Period Managing Directors
Financial Advisory 94 91 90 92 95
Alternative Asset Advisory 26 25 25 24 23
Investment Banking 39   43   50   76   73  
159   159   165   192   191  
 

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 
 

March 31,

 

December 31,

2012

2011

ASSETS
Current assets
Cash and cash equivalents $ 41,048 $ 38,986
Accounts receivable (net of allowance for doubtful accounts of $1,576 and $1,753 at March 31, 2012 and December 31, 2011, respectively) 69,854 77,795
Unbilled services 53,745 51,427
Prepaid expenses and other current assets 12,324 8,257
Net deferred income taxes, current 1,306   2,545  
Total current assets 178,277   179,010  
 
Property and equipment (net of accumulated depreciation of $34,074 and $32,516 at March 31, 2012 and December 31, 2011, respectively) 34,054 33,632
Goodwill 194,462 192,970
Intangible assets (net of accumulated amortization of $28,022 and $25,626 at March 31, 2012 and December 31, 2011, respectively) 38,548 40,977
Other assets 13,348 13,942
Investments related to deferred compensation plan 25,250 23,542
Net deferred income taxes, less current portion 141,306   115,826  
Total non-current assets 446,968   420,889  
Total assets $ 625,245   $ 599,899  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 4,933 $ 4,148
Accrued expenses 21,755 22,612
Accrued compensation and benefits 10,527 41,518
Liability related to deferred compensation plan, current portion 600 646
Deferred revenues 4,264 4,185
Due to noncontrolling unitholders, current portion 6,208   6,209  
Total current liabilities 48,287   79,318  
 
Long-term debt 30,000
Liability related to deferred compensation plan, less current portion 27,141 23,083
Other long-term liabilities 27,118 32,248
Due to noncontrolling unitholders, less current portion 130,221   101,557  
Total non-current liabilities 214,480   156,888  
Total liabilities 262,767   236,206  
 
Commitments and contingencies
 
Stockholders' equity
Preferred stock (50,000 shares authorized; zero issued and outstanding)
Class A common stock, par value $0.01 per share (100,000 shares authorized; 38,574 and 31,646 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively) 386 316
Class B common stock, par value $0.0001 per share (50,000 shares authorized; 3,971 and 10,488 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively)

1

 

Additional paid-in capital 301,857 252,572
Accumulated other comprehensive income 1,907 287
Retained earnings 26,359   25,631  
Total stockholders' equity of Duff & Phelps Corporation 330,509 278,807
Noncontrolling interest 31,969   84,886  
Total stockholders' equity 362,478   363,693  
Total liabilities and stockholders' equity $ 625,245   $ 599,899  
 

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 
  Three Months Ended

March 31,

 

March 31,

2012

2011

 
Cash flows from operating activities:
Net income $ 5,691 $ 6,491
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 3,897 2,489
Equity-based compensation 7,822 6,540
Bad debt expense 41 856
Net deferred income taxes 4,422 5,966
Other (160 ) 15
Changes in assets and liabilities providing/(using) cash, net of acquired balances:
Accounts receivable 7,914 (1,657 )
Unbilled services (2,102 ) (5,657 )
Prepaid expenses and other current assets (214 ) (64 )
Other assets 1,767 (987 )
Accounts payable and accrued expenses (4,072 ) (9,212 )
Accrued compensation and benefits (24,869 ) (27,993 )
Deferred revenues 79 834
Other liabilities (4,910 ) 57  
Net cash used in operating activities (4,694 ) (22,322 )
 
Cash flows from investing activities:
Purchases of property and equipment (478 ) (769 )
Business acquisitions, net of cash acquired (274 ) (466 )
Purchases of investments (2,550 ) (3,000 )
Net cash used in investing activities (3,302 ) (4,235 )
 
Cash flows from financing activities:
Borrowings under revolving line of credit 30,000
Net proceeds from issuance of Class A common stock 49,460
Redemption of noncontrolling unitholders (58,972 )
Repurchases of Class A common stock (4,979 ) (5,815 )
Dividends (3,188 ) (2,492 )
Payments of contingent consideration related to acquisitions (1,682 )
Distributions and other payments to noncontrolling unitholders (830 ) (1,386 )
Proceeds from exercises of IPO Options   268  
Net cash provided by/(used in) financing activities 9,809   (9,425 )
 
Effect of exchange rate on cash and cash equivalents 249   1,083  
 
Net increase/(decrease) in cash and cash equivalents 2,062 (34,899 )
Cash and cash equivalents at beginning of year 38,986   113,328  
Cash and cash equivalents at end of year $ 41,048   $ 78,429  
 

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 
  Quarter Ended March 31, 2012
   

Adjusted

As Reported Adjustments

Pro Forma

Revenues $ 106,345 $ $ 106,345
Reimbursable expenses 2,598     2,598  
Total revenues 108,943     108,943  
 
Direct client service costs
Compensation and benefits 58,218 (4 ) (1) 58,214
Other direct client service costs 2,884 2,884
Acquisition retention expenses 2,043 (2,043 )
Reimbursable expenses 2,609     2,609  
65,754   (2,047 ) 63,707  
Operating expenses
Selling, general and administrative 27,337 (67 ) (1) 27,270
Depreciation and amortization 3,897 3,897
Restructuring charges 1,179 (1,179 )
Transaction and integration costs 1,035   (1,035 )  
33,448   (2,281 ) 31,167  
 
Operating income 9,741 4,328 14,069
 
Other expense/(income), net
Interest income (28 ) (28 )
Interest expense 154 154
Other expense 379   (376 ) (2) 3  
505   (376 ) 129  
 
Income before income taxes 9,236 4,704 13,940
Provision for income taxes 3,545   1,906   (3) 5,451  
Net income 5,691 2,798 8,489
Less: Net income attributable to noncontrolling interest 1,786   (1,786 )  
Net income attributable to Duff & Phelps Corporation $ 3,905   $ 4,584   $ 8,489  
 
 
Pro forma fully exchanged, fully diluted shares outstanding 39,127  
 
Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding $ 0.22  

See definition of Adjusted Pro Forma Net Income and accompanying footnotes in the preceding section of this press release.

 

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 
  Quarter Ended March 31, 2011
   

Adjusted

As Reported Adjustments

Pro Forma

Revenues $ 85,046 $ $ 85,046
Reimbursable expenses 1,892     1,892  
Total revenues 86,938     86,938  
 
Direct client service costs
Compensation and benefits 46,908 (233 ) (1) 46,675
Other direct client service costs 1,429 1,429
Acquisition retention expenses 82 (82 )
Reimbursable expenses 1,937     1,937  
50,356   (315 ) 50,041  
 
Operating expenses
Selling, general and administrative 24,322 (184 ) (1) 24,138
Depreciation and amortization 2,489 2,489
Transaction and integration costs 194   (194 )  
27,005   (378 ) 26,627  
 
Operating income 9,577 693 10,270
 
Other expense/(income), net
Interest income (28 ) (28 )
Interest expense 57 57
Other income (7 )   (7 )
22     22  
 
Income before income taxes 9,555 693 10,248
Provision for income taxes 3,064   1,107   (3) 4,171  
Net income 6,491 (414 ) 6,077
Less: Net income attributable to noncontrolling interest 2,378   (2,378 )  
Net income attributable to Duff & Phelps Corporation $ 4,113   $ 1,964   $ 6,077  
 
 
Pro forma fully exchanged, fully diluted shares outstanding 38,745  
 
Adjusted Pro Forma Net Income per fully exchanged, fully diluted shares outstanding $ 0.16  

See definition of Adjusted Pro Forma Net Income and accompanying footnotes in the preceding section of this press release.

Contacts

Duff & Phelps Corporation
Investor Relations
Marty Dauer, +1-212-871-7700
investor.relations@duffandphelps.com
or
Media Relations
Alex Wolfe, +1-212-871-9087
alex.wolfe@duffandphelps.com

Sharing

Contacts

Duff & Phelps Corporation
Investor Relations
Marty Dauer, +1-212-871-7700
investor.relations@duffandphelps.com
or
Media Relations
Alex Wolfe, +1-212-871-9087
alex.wolfe@duffandphelps.com