Manning & Napier (MN) Reports Q1 EPS of $0.29, Revenues Beat

Manning & Napier (NYSE: MN) reported Q1 EPS of $0.29, versus $0.00 reported last year. Revenue for the quarter came in at $34.2 million versus the consensus estimate of $30 million.

Summary Highlights

• Assets under management ("AUM") at March 31, 2021 were $21.1 billion, compared to $20.1 billion at December 31, 2020
• Revenue for the first quarter was $34.2 million, an increase of 10% from the first quarter of 2020 and an increase of 2% from the fourth quarter of 2020
• First quarter income before taxes was $6.7 million; the net income attributable to Manning & Napier, Inc. for the first quarter was $5.2 million, or $0.26 per diluted share
• On a non-GAAP basis, as defined in the Non-GAAP Financial Measures section below, economic net income for the first quarter was $6.7 million, or $0.29 per adjusted share
• Utilized $3.0 million in cash to purchase 412,405 shares under the Company's program to repurchase up to $10.0 million of Manning & Napier Inc. Class A common shares during 2021
• The Firm received national recognition in the first quarter as Barron's ranked Manning & Napier as the best actively managed fund family of 2020. The firm also received a Refinitiv Lipper Fund Award for the United States 2021 Best Mixed-Asset Small Fund Family Group over three years

"Client results for the first quarter remained excellent as our asset allocation decision making and strong security selection delivered significant value. We are also pleased that our results for clients have received national recognition for 2020, a truly fantastic accomplishment in what was a year of unprecedented challenges," remarked Marc Mayer, Chairman of the Board and Chief Executive Officer of Manning & Napier.

Business Updates

On February 3, 2021, the Board of Directors approved a share repurchase program authorizing the purchase of up to $10.0 million of Manning & Napier Inc. Class A common shares. The authority to repurchase shares will be exercised from time to time as market conditions warrant, is subject to regulatory considerations and will expire on December 31, 2021. The timing, amount, and other terms and conditions of any repurchases will be determined by management at its discretion based on a variety of factors, including the market price of shares, general market and economic conditions, and legal requirements. The repurchase program may be modified, discontinued or suspended at any time. The Company currently intends to fund the program through cash on hand and future cash flow. During the first quarter of 2021, the Company purchased a total of 412,405 Class A common shares using approximately $3.0 million in cash.

Also during the first quarter of 2021, pursuant to the terms of the Exchange Agreement between the Company and the holders of its non-controlling interests, 1,592,969 Class A units of Manning & Napier Group were tendered for cash or shares of the Company's Class A common stock. The independent directors, on behalf of the Company, have decided that such exchange will be settled in approximately 1,592,969 shares of unregistered Class A Common Stock of the Company. The Company expects the settlement of the exchange to occur on or before May 15, 2021. As a result of the exchange, Manning & Napier, Inc. will acquire an equivalent number of Class A units of Manning & Napier Group, resulting in an increase in its ownership of Manning & Napier Group from 89% to approximately 98%.

For earnings history and earnings-related data on Manning & Napier (MN) click here.

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