Calamos Asset Management Inc. (NASDAQ:CLMS) Q4 2015 Earnings Conference Call - Final Transcript

Feb 09, 2016 • 04:30 pm ET


Calamos Asset Management Inc. (NASDAQ:CLMS) Q4 2015 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Calamos Asset Management Fourth Quarter and Year End 2015 Earnings Call. Today's conference is being recorded. Please now listen to the following disclosure.

Forward-looking statements are subject to risks and uncertainties, and may differ materially from actual performance and results. Please see the forward-looking information and Risk Factors sections in our periodic reports filed with the U.S. Securities and Exchange Commission. Non-GAAP financial measures help enhance an overall understanding of our financial results and facilitate comparisons of historical results. Please see the appendix for a reconciliation of GAAP and non-GAAP financial measures.

I would now like to turn over the call to John Calamos Sr.

John Calamos

Good afternoon, and thank you for joining us on the Calamos Asset Management fourth quarter 2015 earnings call.

Joining me today on the call is Bob Behan, President and Head of Global Distribution; Nimish Bhatt, our Chief Financial Officer. Also with us is Christian Helmetag, our Corporate Controller. I will start the presentation with an overview of our financial results for the fourth quarter followed by a business update. Bob will discuss our asset flows and Nimish will provide details with respect to our financial results for the fourth quarter and full year. I will then conclude the formal presentation, and we'll open the call to questions.

Starting on slide 4 of the presentation, you'll see the summary of our fourth quarter financial results. Assets under management for the quarter were $21.9 billion. We also had assets under advisement of $609 million as of December 31, 2015 that are not included in our assets under management.

The decline in AUM for the period is in part attributable to the macro events we saw in the financial markets for the U.S. and non-U.S. investors. Volatility increase while equities declined resulting in a challenging environment for investment performance and mutual fund flows. Our non-GAAP diluted earnings per share was $0.18 for the fourth quarter of 2015, consistent with $0.18 last quarter and $0.19 a year ago. Revenues for the fourth quarter of 2015 were $55.5 million compared with $57.6 million last quarter and $60.5 million in the fourth quarter of last year.

Finally, operating margin was 16.4% in the fourth quarter compared with 15% last quarter and 24.2% in the fourth quarter of 2014. Nimish will go into further details on the GAAP and non-GAAP for the full year of financial results for the company later in the presentation. On slide 5, I'd like to provide a brief overview for those who may be new to our firm. Calamos Asset Management Inc. represents a publishers outstanding, owns 22.2% of the operating company Calamos Investments LLC and the remaining 77.8% is privately-owned by Calamos Family Partners Inc.

It is important to note that our public market capitalization only reflects the 22.2% owned by Calamos Asset Management and not the entire market capitalization of Calamos investments LLC. Calamos Investments is a diversified global investment manager committed to excel in investment performance and client service.