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WisdomTree Announces Second Quarter 2020 Results Diluted Loss Per Share of ($0.09), or Earnings Per Share of $0.05, as adjusted
New York, NY (GlobeNewswire) July 31, 2020 WisdomTree Investments, Inc. (NASDAQ: WETF)today reported financial results for the second quarter of 2020.
During the second quarter of 2020, we experienced a partial recovery of our AUM which was adversely impacted by severe market declines arising from the COVID-19 pandemic toward the end of the prior quarter. This recovery was driven principally by market appreciation, resulting in a 14.6% increase of our ending AUM. Our business continues to operate remotely without disruption.
$23.0 million of non-cash charges, including (i) a loss on revaluation of deferred consideration of ($23.4) million (ii) a loss on extinguishment of debt of ($2.4) million and (iii) a release of a deferred tax valuation allowance of $2.8 million.
($13.3) million net loss ($8.51 million net income, as adjusted), see Non-GAAP Financial Measurements for additional information.
$57.6 billion of ending AUM, an increase of 14.6% resulting primarily from market appreciation.
$126 million of net inflows ($928 million of net inflows excluding HEDJ/DXJ), driven by inflows into our commodity and leveraged and inverse products, partly offset by outflows from our international developed market equity and U.S. equity products.
0.41% average global advisory fee, a decrease of 0.1 basis point due to AUM mix shift.
$58.1 million of operating revenues, a decrease of 9.0% primarily due to lower average AUM and a lower average global advisory fee.
75.1% gross margin1, a 2.2 point decrease primarily due to lower revenues.
20.3% operating income margin (20.4%1 as adjusted), a 4.2 point decrease (4.7 point decrease, as adjusted1) primarily due to lower revenues, partly offset by reduced discretionary spending as a result of the COVID-19 pandemic.
$150.0 million issuance of convertible senior notes due 2023, coupled with the repayment of $174.0 million of debt previously outstanding and termination of our revolver, collectively referred to in this press release as the former Credit Facility.
$24.9 million repurchase of 6.7 million shares of our common stock, principally in connection with the issuance of the convertible notes.
$0.03 quarterly dividend declared, payable on August 26, 2020 to stockholders of record as of the close of business on August 12, 2020.
Update from Jonathan Steinberg, WisdomTree CEO
During the second quarter, assets under management rebounded, resulting in revenue tailwinds as we entered the second half of the year. The global WisdomTree team has remained focused on what we can control, and demonstrated strong execution in the quarter, including navigating unprecedented volatility in energy markets, generating record client engagement and producing strong U.S.-listed product gross sales and record Europe-listed product net flows.
Weve realized significant cost efficiencies in the current environment, some of which should prove sustainable in the future. We also successfully refinanced our debt, repurchased 6.7 million shares and improved our financial flexibility. Despite the uncertain environment, we are seeing momentum in important lead indicators, and we are well positioned for growth with the right team and strategy in place.
The following information was filed by Wisdomtree Investments, Inc. (WETF) on Friday, July 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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