Ares Management Corporation (NYSE:ARES) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 12:00 pm ET


Ares Management Corporation (NYSE:ARES) Q4 2019 Earnings Conference Call - Final Transcript


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Welcome to Ares Management Corporation's Fourth Quarter and Full Year 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded on Thursday, February 13, 2020.

I will now turn the call over to Veronica Mayer from Investor Relations for Ares Management.

Veronica Mendiola Mayer

Thank you, Sarah. Good afternoon, and thank you for joining us today for our fourth quarter and full year 2019 conference call. I am joined today by Michael Arougheti, our Chief Executive Officer; and Michael McFerran, our Chief Operating Officer and Chief Financial Officer. In addition, Bennett Rosenthal, co-Chairman of our Private Equity Group is with us and available for questions. Before we begin, I want to remind you that comments made during the course of this conference call and webcast contain forward-looking statements and are subject to risks and uncertainties. Our actual results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in our SEC filings. We assume no obligation to update any such forward-looking statements.

Please also note that past performance is not a guarantee of future results. Moreover, please note that performance of and investment in our funds is discrete from performance of and investment in Ares Management Corporation. During this conference call, we will refer to certain non-GAAP financial measures such as fee-related earnings and realized income. We use these as measures of operating performance, not as measures of liquidity. These measures should not be considered in isolation from or as a substitute for measures prepared in accordance with generally accepted accounting principles. These measures may not be comparable to like-titled measures used by other companies. In addition, please note that our management fees include ARCC Part I fees. Please refer to our fourth quarter and full year earnings presentation that we filed this morning for definitions and reconciliations of the measures to the most directly comparable GAAP measures. This presentation is also available under the Investor Resources section of our website at and can be used as a reference for today's call.

I would like to remind you that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any securities of Ares or any other person, including any interest in any fund. This morning, we announced that we declared our first quarter common dividend of $0.40 per share, representing an increase of 25% over our prior year's quarterly dividend. This dividend will be paid on March 31, 2020, to holders of record on March 17, 2020. This dividend level represents a 3.9% annualized yield based on yesterday's closing price. We also declared our quarterly preferred dividend of $0.4375 per Series A preferred share, which is payable on March 31, 2020, to holders of record on March 13, 2020.

Now I will turn the call over to Michael Arougheti, who will start with some quarterly and full year financial and business highlights.

Michael Arougheti

Thank you, Veronica. Good afternoon, everyone. Our fourth quarter's results