Oaktree Capital Group (OAK) Tops Q1 EPS by 19c, Revenues Beat

Oaktree Capital Group (NYSE: OAK) reported Q1 EPS of $1.46, $0.19 better than the analyst estimate of $1.27. Revenue for the quarter came in at $602.69 million versus the consensus estimate of $503.83 million.

• GAAP net income attributable to Oaktree Capital Group, LLC (“OCG”) Class A unitholders was $47.3 million ($0.66 per unit), down from $52.7 million ($0.78) for the first quarter of 2018, primarily reflecting lower operating profits, partially offset by higher returns on our fund investments.
• Distributable earnings were $233.9 million ($1.46 per unit), up from $194.0 million ($1.18) for the first quarter of 2018, driven by higher incentive income.
• Assets under management were $118.6 billion, down 1% for the quarter and down 2% over the last 12 months. Gross capital raised was $1.6 billion and $12.3 billion for the quarter and last 12 months, respectively. Uncalled capital commitments (“dry powder”) were $18.3 billion, of which $12.6 billion were not yet generating management fees (“shadow AUM”).
• Management fee-generating assets under management were $100.3 billion, up 2% for the quarter and down 2% over the last 12 months.
• A distribution was declared of $1.05 per unit, bringing aggregate distributions relating to the last 12 months to $3.05.

Jay Wintrob, Chief Executive Officer, said, “Oaktree had a strong start to 2019, delivering solid financial and investment performance in the first quarter. Distributable earnings grew $40 million, or 21%, over the same period one year ago, and our closed-end funds generated gross returns of 9% over the last twelve months. On March 13th, we announced that Brookfield will acquire 62% of our business. We believe partnering with Brookfield will be a powerful combination of two complementary, world-class asset management businesses. We will work together to offer exceptional solutions to our clients, leverage our combined strengths and generate strong returns across all points in the economic cycle.”

For earnings history and earnings-related data on Oaktree Capital Group (OAK) click here.

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