Calamos Asset Management Inc. (NASDAQ:CLMS) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 04:30 pm ET


Calamos Asset Management Inc. (NASDAQ:CLMS) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, everyone and welcome to the Calamos Asset Management Fourth Quarter and Year-End 2014 Earnings Call. Today's call is being recorded. Please now listen to the following disclosure.

John Calamos

Good afternoon, and thank you for joining us on the Calamos Asset Management fourth quarter 2014 earnings call. Joining me on today's call is Nimish Bhatt, our Chief Financial Officer. Also in the room is Christian Helmetag, our Corporate Controller.I will start the presentation with an overview of our financial results for the fourth quarter, followed by business update.

Nimish will then provide details with respect to our financial results for the quarter and full year, along with a discussion regarding our assets flows. I will then conclude the formal presentation and will open the call to questions.

Starting on Slide 4 of the presentation, you will see summary of our fourth quarter financial results. Of the $1.1 billion net outflows for the quarter, separate accounts represented $295 million and funds represented $757 million. Our non-GAAP diluted earnings per share was $0.19 for the fourth quarter of 2014 compared with $0.23 last quarter and $0.25 a year ago.Revenue for the fourth quarter of 2014 were $60.5 million compared with $63.5 million last quarter and $66.5 million in the fourth quarter of last year.

Finally, our operating income for the fourth quarter of 2014 was $14.6 million and operating margin of 24.2%. This compares with $21.9 million and 33% for the same period a year ago. Nimish will go into further detail regarding the changes in the operating margin.

On Slide 5, I would like to provide you a brief overview for those who may be new to our firm. Calamos Asset Management representing the public shares owns 22.2% of the operating company Calamos Investments, LLC. The remaining 77.8% is privately owned by the Calamos Family Partners.Unfortunately the public market data only reflects the 22.2% of the publicly traded security. The private side of the business 77.8% is not reflected in the market cap. Calamos Investments is a diversified global investment manager committed to excellence in Investment Management and client service.

John Calamos

We offer global strategies have global clients and global commitment.Our experienced investment teams are specialized by investment discipline. The firm is based in Chicago metropolitan area with offices in London and New York City. The firm is publicly listed as you know and also has a significant percentage of employee ownership. The company was found in 1977 has been serving the institutional individual investors for over 30 years. The firm launched the Dublin-domiciled UCITS platform in 2007 for non-U.S. investors. We employee 363 people including 74 investment professionals.

Turning to Slide 6, our assets under management represented both by strategy and by product type. As of December 31, 2014 our assets under management were $23.5 billion. In addition to our assets under advisement were an additional $733 million. By strategy on the left, U.S. growth represents 32%. Multi-strategy or closed-end funds is 26% followed by alternatives at 19% and global growth with