Exhibit 99.1

 

 

 

 

News Release

 

Waddell & Reed Financial, Inc. Reports Third Quarter Results and Announces New Capital Return Policy

 

Overland Park, KS, Oct. 24, 2017

— Waddell & Reed Financial, Inc. (NYSE: WDR) today reported third quarter 2017 net income(1) of $38.0 million, or $0.45 per diluted share, compared to net income of $23.3 million, or $0.28 per diluted share, during the prior quarter and net income of $53.8 million, or $0.65 per diluted share, during the third quarter of 2016.

 

Operating revenues of $289.4 million during the third quarter of 2017 increased 1% sequentially due primarily to one additional day during the current quarter.  Compared to the third quarter of 2016, operating revenues declined 5% due primarily to lower average assets under management, which was partly offset by a 2.5 basis point increase in our effective fee rate.  The operating margin during the current quarter was 19.0% compared to 17.8% during the previous quarter and 24.3% during the same period last year.

 

Business Discussion

 

Redemptions during the current quarter were at their lowest level since March 2014, owing mostly to the continued decline in redemptions in our retail unaffiliated distribution channel.  Complex-wide, gross sales were $2.9 billion during the quarter, declining 13% compared to the prior quarter, but improving 14% compared to the third quarter of 2016.  Assets under management were $80.9 billion at the end of September, largely unchanged compared to the prior quarter and 5% lower than the third quarter of 2016.  Net outflows of $2.8 billion during the current quarter increased slightly compared to net outflows of $2.5 billion in the prior quarter, but improved compared to net outflows of $4.9 billion during the same period last year.

 

“While we have made progress toward stabilizing our assets under management, we must now increase our focus on reenergizing organic growth.” said Philip J. Sanders, Chief Executive Officer of Waddell & Reed Financial, Inc. “Success in this effort will depend on competitive investment performance, appropriate product offerings, and effective sales and distribution strategies.  The corporate initiatives we outlined last quarter are already underway and, we believe, will provide a foundation for success.”

 

As part of our regular assessment of the return of capital to stockholders, we are implementing a revised capital return policy intended to provide greater financial flexibility to invest in our business, maintain a strong balance sheet and continue to provide a competitive return to stockholders.  Accordingly, the Board reduced the quarterly dividend on our Class A common stock to $0.25 per share, payable on February 1, 2018 to stockholders of record as of January 11, 2018.  This capital return policy also encompasses a plan to repurchase $250 million of our common stock, which is inclusive of buybacks to offset dilution of our equity grants.  Based on our current financial forecast, we intend to engage in an opportunistic share repurchase plan to fulfill the targeted buybacks over the next two years.

 

“We believe this policy allows us to create long-term value for our stockholders by providing us with additional flexibility to reposition our company amidst an ever-changing industry.  This new capital return policy will not only provide for sustainability of the dividend, but also support our strategic initiatives going forward,” added Sanders.

 


The following information was filed by Waddell Reed Financial Inc (WDR) on Tuesday, October 24, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Waddell Reed Financial Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Waddell Reed Financial Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account