Manning & Napier, Inc. Reports Second Quarter 2019 Earnings Results
FAIRPORT, NY, July 30, 2019 - Manning & Napier, Inc. (NYSE: MN), (“Manning & Napier” or the "Company”) today reported 2019 second quarter results for the period ended June 30, 2019.
•Assets under management ("AUM") at June 30, 2019 were $21.3 billion, compared to $21.1 billion at March 31, 2019
•Revenue for the second quarter was $34.3 million, a decrease of 1% and 17% from the first quarter of 2019 and the second quarter of 2018, respectively
•Second quarter income before taxes was $3.6 million; the net income attributable to Manning & Napier, Inc. for the second quarter was $0.4 million, or $0.03 per diluted share
•On a non-GAAP basis, as defined in the Non-GAAP Financial Measures section below, economic net income for the quarter was $2.5 million, or $0.03 per adjusted share
•On June 28, 2019, the Company entered into an agreement to sell Perspective Partners, LLC, to Manning Partners, LLC, which is wholly owned by William Manning, Chairman of the Company's Board of Directors
•The Company's Board of Directors declared a quarterly dividend of $0.02 per share of Class A common stock at its April 2019 board meeting
“During the second quarter, our competitive absolute results, fueled by excellent stock selection, continued to advance our goal of helping clients achieve their financial objectives while managing risk. While defensive positioning within our blended portfolios impacted relative performance during the quarter, we believe our clients will benefit from our valuation-conscious investment strategies over time. Our commitment to active management remains strong as we look to achieve investment excellence for our clients,” commented Marc Mayer, Chief Executive Officer of Manning & Napier.
Mr. Mayer added, “Our strategic review is focused on improving efficiency, reducing expenses, and modernizing our client experience. Manning & Napier is proud to be one of the most prominent independent registered investment advisors. We anticipate that our focus on customized wealth management solutions will position us well for future growth. This path forward will progress our long-term objectives in a way that benefits our clients, our business, and our shareholders.”
Second Quarter 2019 Financial Review
Manning & Napier reported second quarter 2019 revenue of $34.3 million, a decrease of 17% from revenue of $41.1 million reported in the second quarter of 2018, and a decrease of 1% from revenue of $34.8 million reported in the first quarter of 2019. Average AUM for the quarter was $21.0 billion, a 9% decrease from the second quarter of 2018 and a 2% increase from the first quarter of 2019, when average AUM was $23.1 billion and $20.7 billion, respectively. As a result, revenue as a percentage of average AUM was 0.65% for the second quarter of 2019, compared to 0.71% and 0.68% for the second quarter of 2018 and the first quarter of 2019, respectively. The reduction in revenue as a percentage of average AUM in the quarter was attributable to mutual fund and collective investment trust investment management revenue, which decreased by $3.6 million, or 33%, compared to the second quarter of 2018, and by $0.8 million, or 10%, compared to the first quarter of 2019. The mutual fund and collective trust revenue reduction outpaced the decline in average AUM primarily as a result of the completion of the
The following information was filed by Manning Napier, Inc. (MN) on Tuesday, July 30, 2019 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.