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WisdomTree Announces Fourth Quarter 2019 Results Diluted EPS of $0.02 ($0.06 as adjusted)
New York, NY (GlobeNewswire) January 31, 2020 WisdomTree Investments, Inc. (NASDAQ: WETF)today reported financial results for the fourth quarter of 2019.
$4.3 million net income ($10.11 million net income, as adjusted), see Non-GAAP Financial Measurements for additional information.
$63.6 billion of ending AUM, an increase of 6.1% resulting from market appreciation and net inflows for the quarter and an increase of 17.6% for the full year.
$368 million of net inflows ($560 million of net inflows excluding HEDJ/DXJ), driven by flows into our U.S. equity, fixed income and emerging markets products, partly offset by outflows from our commodity and international developed market equity products. For the full year, net inflows were $572 million or $3.3 billion excluding outflows from HEDJ/DXJ.
0.44% average global advisory fee, unchanged from the prior quarter.
$68.9 million of operating revenues, an increase of 1.8% primarily due to higher average AUM of our U.S. listed products.
81.2% gross margin1 for our U.S. Business, a 0.4 point increase due to higher revenues.
70.7% gross margin1 for our International Business, a 1.9 point decrease due to higher market making fees incurred in connection with transitioning to new arrangements as well as costs associated with preparing our products for Brexit.
21.5% operating income margin (22.0%1 as adjusted), a 2.3 point decrease (2.1 point decrease, as adjusted1) primarily due to higher non-compensation expenses, partly offset by higher revenues.
$6.0 million of available capital used to pay down debt, in connection with our capital management strategy.
$0.03 quarterly dividend declared, payable on February 26, 2020 to stockholders of record as of the close of business February 12, 2020.
We are currently pursuing an exit from our $58 million investment in AdvisorEngine Inc. While the process is not yet finalized, we estimate taking a non-cash impairment charge of $22.0 million to $30.0 million in the fourth quarter, which is not yet included in these unaudited financial results. The final impairment charge will be recognized and disclosed in our Form 10-K. We do not anticipate the exit of our investment will drive any asset attrition or change our organic growth outlook.
Update from Jonathan Steinberg, WisdomTree CEO
WisdomTree exited 2019 with momentum building across our business. The performance track records of our funds remain excellent with thirty-five 4- or 5-star Morningstar rated funds across our ETF and UCITS product range. Weve generated positive net flows in four of the past five quarters, adoption of our model portfolios by advisors is accelerating and we are excited by the recent launch of the Siegel-WisdomTree models.
As we look toward 2020, we are focused on capitalizing on the tailwinds that exist in our business, continuing to drive operating efficiencies and prudently investing to remain at the forefront of industry innovation. For example, in January we announced a strategic investment in Securrency, Inc., a blockchain-based financial services infrastructure company. Blockchain has the potential to be revolutionary in financial services and we believe we have the right vision and the right partner to be a global leader in digital assets. There are reasons to be optimistic, and I believe WisdomTree has reached an inflection point with top line and bottom line growth set to emerge.
The following information was filed by Wisdomtree Investments, Inc. (WETF) on Friday, January 31, 2020 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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