Sculptor Capital Management, Inc (NYSE:SCU) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET

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Sculptor Capital Management, Inc (NYSE:SCU) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, everyone, and welcome to the Sculptor Capital Management's Fourth Quarter 2019 Earnings Call. At this time, all participants are in listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Elise King, Head of Shareholder Services at Sculptor Capital Management.

Executive
Elise King

Thanks, Brandy. Good morning, everyone, and welcome to our call. Joining me are Robert Shafir, our Chief Executive Officer; and Tom Sipp, our Chief Financial Officer.

Today's call contains forward-looking statements, many of which are inherently uncertain and outside of our control. Before we get started, I need to remind you that Sculptor Capital's actual results may differ possibly materially from those indicated in these forward-looking statements. Please refer to our most recent SEC filings for a description of the risk factors that could affect our financial results, our business and other matters related to these statements. The company does not undertake any obligation to publicly update any forward-looking statements.

During today's call, we will be referring to economic income, distributable earnings and other financial measures that are not prepared in accordance with US GAAP. Information about and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release, which is posted on our website.

No statements made during this call should be construed as an offer to purchase shares of the company or an interest in any of our funds or any other entities.

Our earnings press release from this morning also included an earnings presentation. We will be referring to this report during the call. If you would like to follow along, you can find the presentation on the public Investors page of sculptor.com at the 4Q Press Release link.

Earlier this morning, we reported fourth quarter 2019 GAAP net income of $48 million or $2.29 per basic and $0.80 per diluted Class A share. The full year GAAP net income was $51 million or $2.48 per basic and $1.57 per diluted Class A share. As always, you can find a full review of our GAAP results in our earnings release.

On an economic income basis, we reported fourth quarter 2019 distributable earnings of $58 million or $1.05 per fully diluted share. For the full year 2019, distributable earnings were $171 million or $3.11 per fully diluted share. Fourth quarter adjusted distributable earnings were $66 million. Full year adjusted distributable earnings were $161 million.

If you have any questions about the information provided in our press release or our call this morning, please feel free to follow-up with me.

With that let me turn the call over to Rob.

Executive
Robert Shafir

Thanks, Elise, and good morning everyone. We were pleased with our investment performance in the fourth quarter, which benefited from idiosyncratic outperformance. On a macro level, the period was marked by reduction of recession fears, a robust third quarter earnings season, and encouraging developments in US China trade negotiations.

Sculptor Master Fund was up 5.8% net for