OVERLAND PARK, Kan.--(BUSINESS WIRE)-- Waddell & Reed Financial, Inc. (NYSE: WDR) today reported fourth quarter 2019 net income1 of $15.9 million, or $0.23 per diluted share, compared to net income of $33.1 million, or $0.46 per diluted share, during the prior quarter and net income of $46.5 million, or $0.60 per diluted share, during the fourth quarter of 2018. The fourth quarter of 2019 included non-cash asset impairment charges of $12.8 million in connection with certain assets held for sale, including real property related to our corporate headquarters move and the elimination of our internal aviation operations, an $11.2 million non-cash charge related to the annual revaluation of the pension plan liability and $2.3 million in severance expense related to the outsourcing of our transfer agency transactional processing operations. Excluding the non-cash charges and severance expense, adjusted net income2 for the fourth quarter of 2019 was $36.0 million and adjusted net income per diluted share2 was $0.51.
Revenues of $270.1 million decreased slightly compared to the prior quarter and decreased $2.2 million compared to the fourth quarter of 2018. Operating expenses as reported of $241.2 million increased $10.6 million compared to the prior quarter and increased $13.4 million compared to the same quarter of 2018. Adjusted operating expenses2 decreased $1.5 million, or less than 1%, compared to the third quarter of 2019 and increased $1.4 million, or less than 1%, compared to fourth quarter of 2018. The reported operating margin was 10.7% and the adjusted operating margin2 was 16.3% during the current quarter, compared to 15.9% during the prior quarter and 17.5% during the fourth quarter of 2018.
Assets under management ended the quarter at $70.0 billion, an increase of 2% compared to the prior quarter and an increase of 6% compared to the fourth quarter of 2018. Average assets under management were $69.1 billion during the current quarter, compared to $70.5 billion during the prior quarter and $71.6 billion during the fourth quarter of 2018. Net outflows of $3.4 billion during the current quarter were higher compared to net outflows of $2.7 billion in the third quarter of 2019 and were lower compared to net outflows of $3.8 billion in the fourth quarter of 2018. Sales of $1.5 billion during the current quarter declined 14% and 43% compared to the prior quarter and the fourth quarter of 2018, respectively. Industry-wide flows continued toward fixed income and money market strategies while equity flows remained challenged. Redemptions increased 10% compared to the prior quarter and improved 24% compared to the fourth quarter of 2018.
Wealth management assets under administration ended the quarter at $60.1 billion, an increase of 5% compared to the third quarter of 2019, and a 17% increase compared to prior year-end. For both comparative periods, assets under administration increased primarily due to strong market gains and growth in net new advisory assets, partially offset by brokerage redemptions.
Philip J. Sanders, Chief Executive Officer of Waddell & Reed Financial, Inc. shared, “While both the quarter and year remained challenging from a flow perspective within our asset management business, we continued to make steady progress in the transformation of our wealth management business.” Mr. Sanders continued, “On balance, the repositioning of our overall business model, combined with operational improvements across the enterprise and our strong balance sheet, has us well positioned to focus on renewed growth opportunities as we look ahead to 2020 and beyond.”
_____________________________
1 Net income represents net income attributable to Waddell & Reed Financial, Inc.
2 See Non-GAAP Financial Measures section and Reconciliation of GAAP to Non-GAAP Financial Measures table
Revenues Analysis
Investment management fees decreased $1.1 million, or 1%, compared to the third quarter of 2019 due to a 2% decrease in average assets under management, partially offset by a higher effective management fee rate. The effective management fee rate was 63.6 basis points and increased compared to the prior quarter’s rate due to higher fund fee waivers in the prior quarter. Compared to the fourth quarter of 2018, investment management fees declined $3.8 million, or 3%, primarily due to lower average assets under management.
Underwriting and distribution fees increased slightly compared to the prior quarter and increased $2.5 million, or 2%, compared to the same quarter in 2018. For both comparative periods, the increases were primarily driven by increased fee-based asset allocation product revenues, partially offset by lower commissionable sales and lower service and distribution fees.
Shareholder service fees decreased slightly compared to the third quarter of 2019 due to lower average assets. Compared to the fourth quarter of 2018, shareholder service fees declined $0.9 million, or 4%, primarily due to fewer accounts and a decrease in average assets.
Operating Expenses Analysis
Distribution expenses decreased slightly compared to the prior quarter and increased $5.8 million, or 5% compared to the fourth quarter of 2018 as a result of the increase in underwriting and distribution revenue. Compared to the fourth quarter of 2018, the expense increase is larger than the revenue increase primarily due to an increase in the compensation grid for associated independent financial advisors implemented at the beginning of 2019.
Compensation and benefits expense totaled $62.8 million and included $2.3 million of severance expense compared to $3.1 million of severance expense in the prior quarter. In addition to lower severance costs, the decrease of $2.2 million, or 3%, compared to the prior quarter is primarily due to lower headcount and lower share-based compensation due to mark-to-market adjustments of cash-settled restricted stock unit awards. Compared to the fourth quarter of 2018, compensation and benefits expense decreased $1.3 million, or 2%, due to lower incentive compensation costs, lower severance costs and lower headcount. The decreases were partially offset by an increase in share-based compensation costs due to higher forfeitures in the prior year.
General and administrative expenses increased $13.4 million compared to the third quarter of 2019, due to a $12.8 million non-cash asset impairment charge and increased project spend during the quarter. Compared to the same quarter in 2018, general and administrative expenses increased $12.7 million due to the non-cash impairment charge.
Technology costs increased $0.9 million, or 6% compared to the prior quarter, primarily due to increased technology consulting expense. Compared to the fourth quarter of 2018, technology costs decreased slightly, as lower shareholder servicing expense resulting from fewer accounts was partially offset by increased software costs for new technologies.
Occupancy expenses decreased $0.5 million, or 10%, compared to the prior quarter and decreased $1.0 million, or 16%, compared to the fourth quarter of 2018. For both comparative periods, occupancy costs decreased as a result of the planned closure of field offices.
Marketing and advertising expenses increased $0.3 million, or 16%, compared to the prior quarter due to the timing of sponsorship fees. Compared to the fourth quarter of 2018, these expenses declined $0.2 million, or 8%, due to reduced fund-related marketing expenses from prior year fund mergers.
Depreciation expense declined $1.1 million, or 22%, compared to the prior quarter and declined $2.6 million, or 41%, compared to the fourth quarter of 2018, primarily due to fully depreciated capitalized development assets.
Investment and Other Income
Investment and other income declined $10.0 million and $22.2 million compared to the prior quarter and the fourth quarter of 2018, respectively. For both comparative periods, the decline is primarily due to a non-cash charge related to the annual revaluation of the pension plan liability, partially offset by unrealized gains on the seed and corporate investment portfolios.
The effective tax rate was 28.3% for the quarter compared to 23.3% in the prior quarter and 23.5% last year. The higher effective rate was due to $1.1 million of discrete items related to an increase in state taxes and stock compensation vestings in the current quarter.
Assets Under Management | |||||||||||||||||||||||||||||||||||
(in millions) |
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| Three Months Ended |
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| Dec. 31, |
| Sep. 30, |
| Dec. 31, |
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| Prior Qtr. |
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| Year-over Year Qtr. |
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| 2019 |
| 2019 |
| 2018 |
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| Change |
| % |
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| Change |
| % |
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Unaffiliated 1 |
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Beginning assets |
| $ |
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| 25,857 |
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| $ |
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| 27,545 |
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| $ |
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| 31,172 |
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| $ | (1,688 | ) |
| (6 | ) | % |
| $ | (5,315 | ) |
| (17 | ) | % |
Sales 2 |
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| 854 |
|
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| 999 |
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| 1,673 |
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| (145 | ) |
| (15 | ) | % |
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| (819 | ) |
| (49 | ) | % | ||||||
Redemptions |
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| (2,502 | ) |
|
| (2,684 | ) |
|
| (3,637 | ) |
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| 182 |
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| 7 |
| % |
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| 1,135 |
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| 31 |
| % | ||||||
Net exchanges |
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| 278 |
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| 334 |
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| (131 | ) |
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| (56 | ) |
| (17 | ) | % |
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| 409 |
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| 312 |
| % | ||||||
Net Flows |
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| (1,370 | ) |
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| (1,351 | ) |
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| (2,095 | ) |
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| (19 | ) |
| (1 | ) | % |
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| 725 |
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| 35 |
| % | ||||||
Market action |
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| 1,777 |
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| (337 | ) |
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| (4,100 | ) |
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| 2,114 |
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| 627 |
| % |
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| 5,877 |
|
| 143 |
| % | ||||||
Ending assets |
| $ |
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| 26,264 |
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| $ |
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| 25,857 |
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| $ |
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| 24,977 |
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| $ | 407 |
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| 2 |
| % |
| $ | 1,287 |
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| 5 |
| % |
Annualized organic growth rate |
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| (21.2 | ) | % |
| (19.6 | ) | % |
| (26.9 | ) | % |
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Annualized redemption rate 3 |
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| 39.3 |
| % |
| 40.9 |
| % |
| 53.8 |
| % |
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Institutional |
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Beginning assets |
| $ |
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| 3,677 |
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| $ |
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| 3,887 |
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| $ |
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| 5,187 |
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| $ | (210 | ) |
| (5 | ) | % |
| $ | (1,510 | ) |
| (29 | ) | % |
Sales 2 |
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| 32 |
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| 49 |
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| 85 |
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| (17 | ) |
| (35 | ) | % |
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| (53 | ) |
| (62 | ) | % | ||||||
Redemptions |
|
| (874 | ) |
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| (230 | ) |
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| (1,316 | ) |
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|
| (644 | ) |
| (280 | ) | % |
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| 442 |
|
| 34 |
| % | ||||||
Net exchanges |
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| — |
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| — |
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| 511 |
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| — |
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| NM |
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| (511 | ) |
| 100 |
| % | ||||||
Net Flows |
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| (842 | ) |
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| (181 | ) |
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| (720 | ) |
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| (661 | ) |
| (365 | ) | % |
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| (122 | ) |
| (17 | ) | % | ||||||
Market action |
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| 261 |
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| (29 | ) |
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| (812 | ) |
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| 290 |
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| 1,000 |
| % |
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| 1,073 |
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| 132 |
| % | ||||||
Ending assets |
| $ |
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| 3,096 |
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| $ |
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| 3,677 |
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| $ |
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| 3,655 |
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| $ | (581 | ) |
| (16 | ) | % |
| $ | (559 | ) |
| (15 | ) | % |
Annualized organic growth rate |
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| (91.6 | ) | % |
| (18.6 | ) | % |
| (55.5 | ) | % |
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Annualized redemption rate 3 |
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| 104.1 |
| % |
| 23.9 |
| % |
| 117.3 |
| % |
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Wealth Management |
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Beginning assets |
| $ |
|
| 39,248 |
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| $ |
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| 40,444 |
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| $ |
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| 43,183 |
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| $ | (1,196 | ) |
| (3 | ) | % |
| $ | (3,935 | ) |
| (9 | ) | % |
Sales 2 |
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| 662 |
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| 744 |
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| 958 |
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| (82 | ) |
| (11 | ) | % |
|
| (296 | ) |
| (31 | ) | % | ||||||
Redemptions |
|
| (1,535 | ) |
|
| (1,542 | ) |
|
| (1,547 | ) |
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| 7 |
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| 0 |
| % |
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| 12 |
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| 1 |
| % | ||||||
Net exchanges |
|
| (278 | ) |
|
| (334 | ) |
|
| (380 | ) |
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| 56 |
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| 17 |
| % |
|
| 102 |
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| 27 |
| % | ||||||
Net Flows |
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| (1,151 | ) |
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| (1,132 | ) |
|
| (969 | ) |
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| (19 | ) |
| (2 | ) | % |
|
| (182 | ) |
| (19 | ) | % | ||||||
Market action |
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| 2,501 |
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| (64 | ) |
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| (5,037 | ) |
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| 2,565 |
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| 4,008 |
| % |
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| 7,538 |
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| 150 |
| % | ||||||
Ending assets |
| $ |
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| 40,598 |
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| $ |
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| 39,248 |
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| $ |
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| 37,177 |
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| $ | 1,350 |
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| 3 |
| % |
| $ | 3,421 |
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| 9 |
| % |
Annualized organic growth rate |
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| (11.7 | ) | % |
| (11.2 | ) | % |
| (9.0 | ) | % |
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Annualized redemption rate 3 |
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| 13.6 |
| % |
| 13.4 |
| % |
| 13.1 |
| % |
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Consolidated Total |
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Beginning assets |
| $ |
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| 68,782 |
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| $ |
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| 71,876 |
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| $ |
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| 79,542 |
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| $ | (3,094 | ) |
| (4 | ) | % |
| $ | (10,760 | ) |
| (14 | ) | % |
Sales 2 |
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| 1,548 |
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| 1,792 |
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| 2,716 |
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| (244 | ) |
| (14 | ) | % |
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| (1,168 | ) |
| (43 | ) | % | ||||||
Redemptions |
|
| (4,911 | ) |
|
| (4,456 | ) |
|
| (6,500 | ) |
|
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| (455 | ) |
| (10 | ) | % |
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| 1,589 |
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| 24 |
| % | ||||||
Net exchanges |
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| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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Net Flows |
|
| (3,363 | ) |
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| (2,664 | ) |
|
| (3,784 | ) |
|
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| (699 | ) |
| (26 | ) | % |
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| 421 |
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| 11 |
| % | ||||||
Market action |
|
| 4,539 |
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| (430 | ) |
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| (9,949 | ) |
|
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| 4,969 |
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| 1,156 |
| % |
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| 14,488 |
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| 146 |
| % | ||||||
Ending assets |
| $ |
|
| 69,958 |
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| $ |
|
| 68,782 |
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| $ |
|
| 65,809 |
|
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| $ | 1,176 |
|
| 2 |
| % |
| $ | 4,149 |
|
| 6 |
| % |
Annualized organic growth rate |
|
| (19.6 | ) | % |
| (14.8 | ) | % |
| (19.0 | ) | % |
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Annualized redemption rate 3 |
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| 27.7 |
| % |
| 24.3 |
| % |
| 35.4 |
| % |
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____________________ | ||
(1) | Unaffiliated includes National channel (home office and wholesale), Defined Contribution Investment Only “DCIO”, Registered Investment Advisor “RIA” and Variable Annuity “VA”. | |
(2) | Sales is primarily gross sales (net of sales commissions). This amount also includes net reinvested dividends and capital gains, and investment income. | |
(3) | Excludes Money Market. |
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MorningStar Fund Rankings 1 |
| 1 Year |
| 3 Years |
| 5 Years |
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Funds ranked in top half |
| 43 | % | 42 | % | 33 | % |
Assets ranked in top half |
| 52 | % | 62 | % | 41 | % |
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MorningStar Ratings 1 |
| Overall |
| 3 Years |
| 5 Years |
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Funds with 4/5 stars |
| 34 | % | 31 | % | 23 | % |
Assets with 4/5 stars |
| 51 | % | 42 | % | 34 | % |
_____________________ | |||
(1) | Based on class I share, which reflects the largest concentration of sales and assets. |
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| Three Months Ended |
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Wealth Management |
| Dec. 31, |
| Sep. 30, |
| Dec. 31, |
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| Prior Qtr. |
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| Year-over-Year Qtr. |
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(in millions) |
| 2019 |
| 2019 |
| 2018 |
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| Change |
| % |
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| Change |
| % |
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Assets under administration (AUA) |
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Advisory assets |
| $ |
| 26,947 |
|
| $ |
| 25,107 |
|
| $ |
| 21,207 |
|
| $ |
| 1,840 |
|
| 7 |
| % |
| $ |
| 5,740 |
|
| 27 |
| % |
Non-advisory assets |
|
| 33,148 |
|
|
| 32,006 |
|
|
| 30,059 |
|
|
| 1,142 |
|
| 4 |
| % |
|
| 3,089 |
|
| 10 |
| % | |||||
Total assets under administration |
|
| 60,095 |
|
|
| 57,113 |
|
|
| 51,266 |
|
|
| 2,982 |
|
| 5 |
| % |
|
| 8,829 |
|
| 17 |
| % | |||||
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Net new advisory assets 1 |
| $ |
| 261 |
|
| $ |
| 236 |
|
| $ |
| (45 | ) |
| $ |
| 25 |
|
| 11 |
| % |
| $ |
| 306 |
|
| 680 |
| % |
Net new non-advisory assets 1, 2 |
|
| (859 | ) |
|
| (769 | ) |
|
| (840 | ) |
|
| (90 | ) |
| (12 | ) | % |
|
| (19 | ) |
| (2 | ) | % | |||||
Total net new AUA 1, 2 |
|
| (598 | ) |
|
| (533 | ) |
|
| (885 | ) |
|
| (65 | ) |
| (12 | ) | % |
|
| 287 |
|
| 32 |
| % | |||||
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Annualized advisory AUA growth 3 |
|
| 4.2 |
| % |
| 3.8 |
| % |
| (0.8 | ) | % |
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Annualized AUA growth 3 |
|
| (4.2 | ) | % |
| (3.7 | ) | % |
| (6.1 | ) | % |
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Advisors and advisor associates |
|
| 1,327 |
|
|
| 1,344 |
|
|
| 1,403 |
|
|
| (17 | ) |
| (1 | ) | % |
|
| (76 | ) |
| (5 | ) | % | |||||
Avg. trailing 12-month revenue per advisor 4 (in thousands) |
| $ |
| 438 |
|
| $ |
| 422 |
|
| $ |
| 343 |
|
| $ |
| 16 |
|
| 4 |
| % |
| $ |
| 95 |
|
| 28 |
| % |
__________________________ | ||
(1) | Net new assets are calculated as total client deposits and net transfers less client withdrawals. | |
(2) | Excludes activity related to products held outside of our wealth management platform. These assets represent less than 10% of total AUA. | |
(3) | Annualized growth is calculated as annualized quarterly net new assets divided by beginning AUA. | |
(4) | Production per Advisor is calculated as trailing 12- month Total underwriting and distribution fees less “other” underwriting and distribution fees divided by the average number of Advisors. “Other” underwriting and distribution fees predominantly includes fees paid by Advisors for programs and services. |
Unaudited Consolidated Statements of Income | |||||||||||||||||||||||||||||||
(in thousands, except per share data and margin) |
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| Three Months Ended |
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| Dec. 31, |
| Sep. 30, |
| Dec. 31, |
| Prior Qtr. |
| Year-over-Year Qtr. |
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| 2019 |
| 2019 |
| 2018 |
| Change |
| % |
| Change |
| % |
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Revenues: |
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Investment management fees | $ |
| 110,706 |
|
| $ |
| 111,806 |
|
| $ |
| 114,521 |
|
| $ |
| (1,100 | ) |
| (1 | ) | % | $ |
| (3,815 | ) |
| (3 | ) | % |
Underwriting and distribution fees |
| 136,309 |
|
|
| 135,787 |
|
|
| 133,788 |
|
|
| 522 |
|
| 0 |
| % |
| 2,521 |
|
| 2 |
| % | |||||
Shareholder service fees |
| 23,056 |
|
|
| 23,087 |
|
|
| 23,921 |
|
|
| (31 | ) |
| (0 | ) | % |
| (865 | ) |
| (4 | ) | % | |||||
Total |
| 270,071 |
|
|
| 270,680 |
|
|
| 272,230 |
|
|
| (609 | ) |
| (0 | ) | % |
| (2,159 | ) |
| (1 | ) | % | |||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distribution1 |
| 117,225 |
|
|
| 117,425 |
|
|
| 111,456 |
|
|
| (200 | ) |
| (0 | ) | % |
| 5,769 |
|
| 5 |
| % | |||||
Compensation and benefits (including share-based compensation of $11,142, $11,580 and $9,039, respectively) |
| 62,816 |
|
|
| 64,999 |
|
|
| 64,155 |
|
|
| (2,183 | ) |
| (3 | ) | % |
| (1,339 | ) |
| (2 | ) | % | |||||
General and administrative |
| 30,061 |
|
|
| 16,680 |
|
|
| 17,403 |
|
|
| 13,381 |
|
| 80 |
| % |
| 12,658 |
|
| 73 |
| % | |||||
Technology |
| 15,950 |
|
|
| 15,019 |
|
|
| 15,982 |
|
|
| 931 |
|
| 6 |
| % |
| (32 | ) |
| (0 | ) | % | |||||
Occupancy |
| 5,143 |
|
|
| 5,684 |
|
|
| 6,116 |
|
|
| (541 | ) |
| (10 | ) | % |
| (973 | ) |
| (16 | ) | % | |||||
Marketing and advertising |
| 2,467 |
|
|
| 2,134 |
|
|
| 2,685 |
|
|
| 333 |
|
| 16 |
| % |
| (218 | ) |
| (8 | ) | % | |||||
Depreciation |
| 3,767 |
|
|
| 4,833 |
|
|
| 6,387 |
|
|
| (1,066 | ) |
| (22 | ) | % |
| (2,620 | ) |
| (41 | ) | % | |||||
Subadvisory fees |
| 3,777 |
|
|
| 3,882 |
|
|
| 3,647 |
|
|
| (105 | ) |
| (3 | ) | % |
| 130 |
|
| 4 |
| % | |||||
Total |
| 241,206 |
|
|
| 230,656 |
|
|
| 227,831 |
|
|
| 10,550 |
|
| 5 |
| % |
| 13,375 |
|
| 6 |
| % | |||||
Operating income |
| 28,865 |
|
|
| 40,024 |
|
|
| 44,399 |
|
|
| (11,159 | ) |
| (28 | ) | % |
| (15,534 | ) |
| (35 | ) | % | |||||
Investment and other income |
| (4,804 | ) |
|
| 5,212 |
|
|
| 17,351 |
|
|
| (10,016 | ) |
| (192 | ) | % |
| (22,155 | ) |
| (128 | ) | % | |||||
Interest expense |
| (1,533 | ) |
|
| (1,562 | ) |
|
| (1,553 | ) |
|
| 29 |
|
| 2 |
| % |
| 20 |
|
| 1 |
| % | |||||
Income before provision for income taxes |
| 22,528 |
|
|
| 43,674 |
|
|
| 60,197 |
|
|
| (21,146 | ) |
| (48 | ) | % |
| (37,669 | ) |
| (63 | ) | % | |||||
Provision for income taxes |
| 6,382 |
|
|
| 10,175 |
|
|
| 14,125 |
|
|
| (3,793 | ) |
| (37 | ) | % |
| (7,743 | ) |
| (55 | ) | % | |||||
Net income |
| 16,146 |
|
|
| 33,499 |
|
|
| 46,072 |
|
|
| (17,353 | ) |
| (52 | ) | % |
| (29,926 | ) |
| (65 | ) | % | |||||
Net income (loss) attributable to redeemable noncontrolling interests |
| 210 |
|
|
| 445 |
|
|
| (396 | ) |
|
| (235 | ) |
| (53 | ) | % |
| 606 |
|
| 153 |
| % | |||||
Net income attributable to Waddell & Reed Financial, Inc. | $ |
| 15,936 |
|
| $ |
| 33,054 |
|
| $ |
| 46,468 |
|
| $ |
| (17,118 | ) |
| (52 | ) | % | $ |
| (30,532 | ) |
| (66 | ) | % |
Net income per share, basic and diluted: | $ |
| 0.23 |
|
| $ |
| 0.46 |
|
| $ |
| 0.60 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Weighted average shares outstanding - basic and diluted |
| 69,896 |
|
|
| 72,387 |
|
|
| 77,786 |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Operating margin |
| 10.7 |
| % |
| 14.8 |
| % |
| 16.3 |
| % |
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
1Distribution expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Unaffiliated |
| 23,392 |
|
|
| 24,068 |
|
|
| 25,406 |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Wealth Management |
| 93,833 |
|
|
| 93,357 |
|
|
| 86,050 |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
| $ |
| 117,225 |
|
| $ |
| 117,425 |
|
| $ |
| 111,456 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Statements of Income | |||||||||||||||||||
(in thousands, except per share data and margin) |
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
| Year Ended |
|
|
|
|
|
| |||||||||||
|
| Dec. 31, |
| Dec. 31, |
|
|
| ||||||||||||
|
| 2019 |
| 2018 |
| Change |
| % |
| ||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Investment management fees |
| $ |
| 445,144 |
|
| $ |
| 507,906 |
|
| $ |
| (62,762 | ) |
| (12 | ) | % |
Underwriting and distribution fees |
|
| 531,836 |
|
|
| 550,010 |
|
|
| (18,174 | ) |
| (3 | ) | % | |||
Shareholder service fees |
|
| 93,335 |
|
|
| 102,385 |
|
|
| (9,050 | ) |
| (9 | ) | % | |||
Total |
|
| 1,070,315 |
|
|
| 1,160,301 |
|
|
| (89,986 | ) |
| (8 | ) | % | |||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Distribution1 |
|
| 460,921 |
|
|
| 456,832 |
|
|
| 4,089 |
|
| 1 |
| % | |||
Compensation and benefits (including share-based compensation of $46,613 and $51,565, respectively) |
|
| 254,534 |
|
|
|