Och-Ziff Capital Management (OZM) Misses Q3 EPS by 1c

November 2, 2016 7:44 AM EDT
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Och-Ziff Capital Management (NYSE: OZM) reported Q3 EPS of $0.05, $0.01 worse than the analyst estimate of $0.06.

Summary

  • Och-Ziff reached settlements with the U.S. Department of Justice (“the DOJ”) and the U.S. Securities Exchange Commission (“the SEC”) in connection with their Foreign Corrupt Practices Act (“FCPA”) investigations, and agreed to a monetary settlement in the amount of $412.1 million, which was paid in October 2016 (“FCPA settlements”).
  • Certain of the Company’s executive managing directors agreed to purchase up to $400 million of Class A Cumulative Preferred Units (the “Preferred Units”), the proceeds of which was used in part to pay the FCPA settlements. The remainder will be used for general corporate purposes.
  • Distributable Earnings in the 2016 third quarter were $198.0 million, or $0.38 per Adjusted Class A Share, which reflects the one-time effect of reversing the amount accrued for payments due under the tax receivable agreement (“TRA”) for the 2015 and 2016 tax years. Excluding the effect of this reversal and a small adjustment for the FCPA settlements, Distributable Earnings in the 2016 third quarter were$51.9 million, or $0.10 per Adjusted Class A Share.
  • Assets under management totaled $39.3 billion as of September 30, 2016, decreasing 12% year-over-year, primarily due to net outflows from the Company’s multi-strategy funds.
    • Assets under management in the Company’s dedicated credit, real estate and other single-strategy funds were $15.9 billion, comprising 41% of assets under management as of September 30, 2016,increasing 5% year-over-year.
    • Estimated assets under management totaled $37.0 billion as of November 1, 2016.

“The third quarter was an important one for the Firm,” said Dan Och, Chairman and Chief Executive Officer of Och-Ziff. “We saw strong performance across our products and strategies and put the FCPA investigation behind us. We’re pleased that the positive performance trend has continued into the fourth quarter and look forward to the road ahead.”

For earnings history and earnings-related data on Och-Ziff Capital Management (OZM) click here.



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