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GlassBridge Reports Fourth Quarter 2016
Completes its transition to a publicly-traded alternative asset manager
Oakdale, Minn. – (PR Newswire) – March 22, 2017 – GlassBridge Enterprises, Inc. (“GlassBridge” or “we”) (NYSE: GLA) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2016.
As previously announced, in Q4 2016, GlassBridge entered into a transformative, strategic transaction (the “Transaction”) with Clinton Group, Inc. (“Clinton”), a diversified asset management firm and an investment adviser registered with the U.S. Securities and Exchange Commission. The Transaction, which was structured to facilitate the quick and efficient scaling of our asset management business, allows for GlassBridge to place under Clinton’s management – within Clinton’s quantitative equity strategy – up to $1 billion of gross investment capacity for an initial term of five years and provides our investors with access to an existing strategy and infrastructure. The Transaction closed in February 2017 with strong support from our stockholders. We intend to launch dedicated investment funds in the near future.
Overview of Financial Results
GlassBridge’s revenue for Q4 2016 was $11.3 million, down 28.5 percent from Q4 2015. All of the Q4 2016 revenue was attributable to our partially-owned subsidiary, Nexsan Corporation (“Nexsan”). This revenue decrease was due to our strategic decision to exit Nexsan’s underperforming geographic regions and low-margin portions of the business to focus on the next-generation UNITY® and other higher-margin products. Our gross margins improved from 42.4 percent in Q4 2015 to 45.1 percent in Q4 2016. Selling, general and administrative expenses declined by $2.2 million, or 23.2 percent year-over-year, and operating loss from continuing operations was reduced by 37.8 percent to $5.1 million from a loss of $8.2 million in Q4 2015. Our cash balance and short term investments totaled $32.0 million as of December 31, 2016.
“We exit 2016 having completed a substantial transformation from Imation Corp. to GlassBridge Enterprises. Our company now has the required focus and infrastructure in place to execute our collective goal of building a profitable publicly-traded asset management company poised for long-term value equity value creation,” said Joseph A. De Perio, Non-Executive Chairman of the Board of Directors of GlassBridge.
Detailed Q4 2016 Analysis
The following financial results are for continuing operations, including Nexsan and the corporate holding company, for the current and prior periods unless otherwise indicated.
The following information was filed by Glassbridge Enterprises, Inc. (GLA) on Wednesday, March 22, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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