Press Releases
Medley Management Inc. Announces Third Quarter 2014 Results And Declares $0.20 Per Share Dividend
  • 79% increase in year over year Core Net Income per share to $0.25 for Q3 2014
  • For the period during Q3 2014 that the Company was public, Net Income attributable to Medley Management Inc. was $378,000
  • Declared $0.20 per share dividend for Q4 2014 payable on January 5, 2015
  • 66% increase in year over year fee earning AUM to $3.0 billion

 

 

NEW YORKNov. 13, 2014 /PRNewswire/ -- Medley Management Inc. (NYSE: MDLY) (the "Company" or "Medley") today reported its financial results for the quarter ended September 30, 2014. Although Medley was a public company for only a portion of the reporting period, the financial results herein reflect the full period results of the Company and our operating subsidiaries, Medley LLC and Medley GP Holdings LLC, and their consolidated subsidiaries.

On September 29, 2014, Medley completed its IPO pursuant to which 6,000,000 shares of Class A common stock were sold at a price of $18.00 per share. Total proceeds from the offering, net of underwriting discount, were $100.4 million.

"We are pleased to report a strong quarter for Medley Management Inc. Growth in assets under management, origination, and financial performance for our shareholders exceeded our expectations," commented Brook Taube, Chief Executive Officer of Medley.

"Our broad origination platform continues to produce high quality assets at attractive yields for investors.  Our diversified fundraising platform continues to demonstrate the ability to grow assets in both retail and institutional channels. Permanent capital increased to 65% of fee earning assets under management at Medley, underpinning our ability to drive steady and consistent cash earning for our investors.  We are pleased to report our first dividend of $0.20 per share payable on January 5, 2015," continued Mr. Taube.

Standalone Results of Operations

Total revenues increased by 57%, or $8.6 million, to $23.8 million for the three months ended September 30, 2014 as compared to $15.2 million for the same period in 2013. The growth in total revenues was driven by a 66% increase in year over year fee earning AUM, as well as a $3.4 millionincrease in performance fees.

Total expenses increased by 32%, or $2.5 million, to $10.1 million for the three months ended September 30, 2014compared to $7.6 million for the same period in 2013. The increase is due primarily to increases in compensation expense, as well as general, administrative and other expenses as a result of the overall growth of our business.  In addition, interest expense increased by $1.7 million due to an increase in our debt outstanding.

Core Net Income increased by 76%, or $5.5 million, to $12.7 million during the three months ended September 30, 2014 as compared to $7.2 million for the same period in 2013. Core Net Income Per Share increased by 79% to $0.25 per share for the three months ended September 30, 2014 as compared to $0.14 per share in the comparable period in 2013. 

Key Performance Indicators:

 

Key Performance Indicators

                               
                                         
           

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

             
           

(unaudited)

 

(unaudited)

           

2014

 

2013

 

2014

 

2013

Consolidated Financial Data:

 

(dollars in thousands, except per share amounts)

 
 

Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC

                               
   

$

12,513

   

$

7,316

   

$

28,482

   

$

13,361

 
                                         

Standalone Data

                                   
 

Core Net Income(1)

   

$

12,713

   

$

7,237

   

$

29,858

   

$

13,009

 
 

Core EBITDA

     

15,416

     

7,827

     

34,594

     

14,758

 
 

Core Net Income Per Share(2)

 

$

0.25

   

$

0.14

   

$

0.58

   

$

0.25

 
 

Core Net Income Margin(3)

   

31.8%

     

27.9%

     

26.6%

     

18.9%

 
 

Pro-Forma Weighted Average Shares Outstanding(4)

   

30,484,637

     

30,484,722

     

30,484,693

     

30,484,722

 
                         
                                         

Other Data (at period end, in millions):

                               
 

Fee Earning AUM 

 

$

3,036

   

$

1,829

   

$

3,036

   

$

1,829

 
 

AUM

   

3,635

     

2,265

     

3,635

     

2,265

 

 

(1) Core Net Income reflects standalone net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC adjusted to exclude reimbursable expenses associated with the launch of funds, certain one-time severance costs and stock-based compensation associated with restricted stock units that were granted in connection with our initial public offering ("IPO"). In addition, Core Net Income includes the pro-forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense. Prior to our reorganization and IPO, these guaranteed payments were recorded as distributions from member's capital. Please refer to the reconciliation of net income attributed to controlling and non-controlling interests in Medley LLCto Core Net Income in Exhibit B for additional details.

(2) Core Net Income Per Share reflects an adjustment for federal, state and local corporate income taxes.  Please refer to the calculation of Core Net Income Per Share in Exhibit C for additional details.

(3) Core Net Income Margin equals Core Net Income Per Share divided by total standalone revenue per share.

(4) The calculation of Pro-Forma Weighted Average Shares Outstanding assumes that the following transactions had occurred at the beginning of each period presented:  (1) the issuance of 6,000,000 Class A common shares in connection with our IPO (2) conversion by the pre-IPO holders of 23,333,333 Medley LLC units for 23,333,333 Class A shares and (3) 1,151,389 restricted stock units granted on the consummation of the IPO, adjusted for actual forfeitures during the period.

Fee Earning AUM

The table below presents the quarterly roll forward of our total fee earning AUM:

 

                       

% of AUM

         

Permanent Capital Vehicles

 

Long-dated Private Funds and SMAs

 

Total

 

Permanent Capital Vehicles

 

Long-dated Private Funds and SMAs

           

(dollars in millions)

       

Beginning balance, June 30, 2014

 

$

1,505

 

$

946

 

$

2,451

 

61%

 

39%

 

Commitments 

   

465

   

157

   

622

       
 

Capital reduction

   

-

   

-

   

-

       
 

Distributions

   

(29)

   

(26)

   

(55)

       
 

Change in fund value

   

26

   

(8)

   

18

       

Ending balance, September 30, 2014

 

$

1,967

 

$

1,069

 

$

3,036

 

65%

 

35%

 

Total fee earning AUM increased by 24%, or $585 million, to $3.0 billion at September 30, 2014 compared to June 30, 2014. The permanent capital vehicles' share of fee earning AUM increased to 65% at September 30, 2014 compared to 61% at June 30, 2014. During the three months ended September 30, 2014, fee earning AUM at MCC and SIC increased 21% and 58%, respectively.

Dividend Declaration

On November 10, 2014, the Company's board of directors declared a quarterly dividend of $0.20 per share, for the fourth quarter 2014, payable on January 5, 2015 to shareholders of record as of the close of business on December 17, 2014.

Conference Call and Webcast Information

We will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Friday, November 14, 2014 to discuss our third quarter 2014 financial results. 

All interested parties may participate in the conference call and audio webcast by dialing (866) 314-5232 approximately 5-10 minutes prior to the call, international callers should dial (617) 213-8052. Participants should reference Medley Management Inc. and the participant passcode of 86141972 when prompted. Following the call you may access a replay of the event via audio webcast. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through the Company's website, www.mdly.com.  To listen to the live call, please go to the Company's website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the Company's website.

About Medley Management Inc.

Medley Management Inc. is an asset management firm offering yield solutions to retail and institutional investors through Medley LLC and several registered investment advisors. Medley's national direct origination franchise, with over 75 people, is a premier provider of capital to the middle market in the U.S. As of September 30, 2014, Medley had in excess of $3.6 billion of investable capital in business development companies, Medley Capital Corporation (NYSE:MCC) and the Sierra Income Corporation, and private investment vehicles. Over the past 12 years, we have invested in excess of $5.1 billion to help over 285 companies grow across 35 industries. For additional information, please visit Medley Management Inc. at www.mdly.com.

Forward-Looking Statements

Statements included herein may contain "forward-looking statements".  Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission, including those described under the section entitled, "Risk Factors" in our prospectus dated September 23, 2014 as filed with the Securities and Exchange Commission on September 25, 2014 pursuant to Rule 424(b) of the Securities Exchange Act of 1933, as amended, as such factors may be updated from time to time in our filing with the Securities and Exchange Commission, which are accessible on its website at www.sec.gov.   Except as required by law, the Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements in this press release speak only as of the date of this press release.

This press release does not constitute an offer for any Medley fund.

Available Information

Medley Management Inc.'s filings with the Securities and Exchange Commission, press releases, earnings releases and other financial information are available at www.mdly.com.

 

 

Exhibit A. Standalone Statements of Operations for Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)

 
           
     

Three Months Ended 
September 30,
(unaudited)

 

Nine Months Ended 
September 30,
(unaudited)

     

2014

 

2013

 

2014

 

2013

     

(in thousands)

Revenues

                             
 

Management fees

$

17,616

   

$

13,875

   

$

47,516

   

$

34,315

 
 

Performance fees

 

3,395

     

(37)

     

11,471

     

2,826

 
 

Other income and fees

 

2,787

     

1,328

     

7,183

     

3,347

 
   

Total revenues

 

23,798

     

15,166

     

66,170

     

40,488

 

Expenses

                             
 

Compensation and benefits

 

5,677

     

3,498

     

15,010

     

10,062

 
 

Performance fee compensation

 

(921)

     

928

     

2,237

     

6,199

 
 

General, administrative and other expenses

 

3,458

     

3,160

     

12,821

     

9,034

 
   

Total expenses

 

8,214

     

7,586

     

30,068

     

25,295

 

Other income (expense)

                             
 

Dividend income

 

222

     

222

     

665

     

665

 
 

Interest expense

 

(2,016)

     

(345)

     

(3,380)

     

(1,083)

 
 

Other income (expenses), net

 

(87)

     

77

     

(1,707)

     

(936)

 
   

Total other expense, net

 

(1,881)

     

(46)

     

(4,422)

     

(1,354)

 
 

Income before income taxes

$

13,703

   

$

7,534

   

$

31,680

   

$

13,839

 
 

Provision for income taxes

 

578

     

218

     

1,026

     

478

 
   

Net income

 

13,125

     

7,316

     

30,654

     

13,361

 
 

Net income attributable to non-controlling interests in consolidated subsidiaries

 

612

     

-

     

2,172

     

-

 

Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC

$

12,513

 

$

 

7,316

   

$

28,482

   

$

13,361

 
                                   

 

Exhibit B. Reconciliation of net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC to Core Net Income and Core Net Income to Core EBITDA (Standalone)

 
     

Three Months Ended 
September 30,
(unaudited)

 

Nine Months Ended 
September 30,
(unaudited)

     

2014

 

2013

 

2014

 

2013

     

(in thousands)

Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC

 

$

12,513

 

$

 

7,316

   

$

28,482

   

$

13,361

 
 

Reimbursable fund startup expenses (1)

   

1,195

     

1,226

     

4,591

     

2,603

 
 

Severance expense(1)

   

-

     

6

     

(5)

     

725

 
 

IPO date award stock-based compensation (1)

   

74

     

-

     

74

     

-

 
 

Adjustment for pre-IP guaranteed payments to members (1) (2)

   

(1,069)

     

(1,311)

     

(3,284)

     

(3,680)

 
                                   

Core Net Income

 

$

12,713

   

$

7,237

   

$

29,858

   

$

13,009

 
 

Interest expense

   

2,016

     

345

     

3,380

     

1,083

 
 

Income taxes

   

584

     

179

     

1,067

     

390

 
 

Depreciation and amortization

   

103

     

66

     

289

     

276

 

Core EBITDA

 

$

15,416

   

$

7,827

   

$

34,594

   

$

14,758

 
                                   

(1) Amounts are presented net of income taxes.

(2) Represents a pro-forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense. Prior to our reorganization and IPO these payments were recorded as distributions from member's capital.

 

Exhibit C. Calculation of Core Net Income Per Share (Standalone)

 
     

Three Months Ended 
September 30,
(unaudited)

     

Nine Months Ended 
September 30,
(unaudited)

   
               
     

2014

   

2013

   

2014

   

2013

 
 

Core Net Income Per Share:

 

(in thousands, except per share data)

 

Numerator

                                     
 

Core Net income 

$

12,713

     

$

7,237

     

$

29,858

     

$

13,009

   
 

Add: Income taxes

 

584

       

179

       

1,067

       

390

   
 

Pre-tax Core Net Income 

 

13,297

       

7,416

       

30,925

       

13,399

   
 

Denominator

                                     
 

Class A shares issued in IPO

 

6,000,000

       

6,000,000

       

6,000,000

       

6,000,000

   
 

Conversion of LLC Units to Class A shares

 

23,333,333

       

23,333,333

       

23,333,333

       

23,333,333

   
 

Restricted stock units

 

1,151,304

       

1,151,389

       

1,151,360

       

1,151,389

   
 

Pro-Forma Weighted Average Shares Outstanding

 

30,484,637

       

30,484,722

       

30,484,693

       

30,484,722

   
 

Pre-tax Core Net Income Per Share

$

0.44

     

$

0.24

     

$

1.01

     

$

0.44

   
 

Less corporate income taxes per share (1)

 

(0.19)

       

(0.10)

       

(0.43)

       

(0.19)

   
 

Core Net Income Per Share

$

0.25

     

$

0.14

     

$

0.58

     

$

0.25

   
                                           

 

(1) Represents a per share adjustment for income taxes assuming that all of our pre-tax earnings were subject to federal, state and local corporate income taxes. We assumed an annualized effective corporate tax rate of approximately 43.0% for all periods presented.

 

Exhibit D. Consolidated Statements of Operations for Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)

             
       

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

         
       

(unaudited)

   

(unaudited)

 
       

2014

 

2013

 

2014

 

2013

Revenues

 

(dollars in thousands, except per share data)

 

Management fees

 

$

17,013

   

$

9,271

   

$

43,466

   

$

24,129

 
 

Performance fees

   

965

     

830

     

3,337

     

1,081

 
 

Other income and fees

   

2,787

     

1,328

     

7,183

     

3,347

 
   

Total revenues

   

20,765

     

11,429

     

53,986

     

28,557

 

Expenses

                               
 

Compensation and benefits

   

5,677

     

3,498

     

15,010

     

10,062

 
 

Performance fee compensation

   

(921)

     

928

     

2,237

     

6,199

 
 

Consolidated Funds expenses

   

296

     

306

     

1,129

     

921

 
 

General, administrative and other expenses

   

3,458

     

3,160

     

12,821

     

9,034

 
   

Total expenses

   

8,510

     

7,892

     

31,197

     

26,216

 

Other income (expense)

                               
 

Dividend income

   

222

     

222

     

665

     

665

 
 

Interest expense

   

(2,016)

     

(345)

     

(3,380)

     

(1,083)

 
 

Other income (expenses), net

   

(268)

     

3

     

(1,586)

     

(175)

 
 

Interest and other income of Consolidated Funds

   

15,356

     

13,495

     

45,890

     

37,398

 
 

Net realized gain (loss) on investments of Consolidated Funds

                               
     

(499)

     

(5,486)

     

789

     

(18,065)

 
 

Net change in unrealized (depreciation) appreciation on investments of Consolidated Funds

                               
     

(1,069)

     

2,535

     

(9,437)

     

(751)

 
   

Total other income, net

   

11,726

     

10,424

     

32,941

     

17,989

 
 

Income before income taxes

   

23,981

     

13,961

     

55,730

     

20,330

 
 

Provision for income taxes

   

923

     

462

     

2,174

     

1,138

 
   

Net income

   

23,058

     

13,499

     

53,556

     

19,192

 
 

Net income attributable to non-controlling interests in Consolidated Funds

                               
     

9,933

     

6,183

     

22,902

     

5,831

 
 

Net income attributable to non-controlling interests in consolidated subsidiaries

   

612

     

-

     

2,172

     

-

 
 

Net income attributable to non-controlling interests in Medley LLC

   

12,135

   

$

7,316

     

28,104

   

$

13,361

 
   

Net income attributable to Medley Management Inc.

 

$

378

           

$

378

         
                                     
 

Net income per share attributable to stockholders of 

                               
 

Class A common stock of Medley Management Inc:

                               
   

Basic

 

$

0.05

 

(1)

     

$

0.05

 

(1)

 
   

Diluted

 

$

0.05

 

(1)

     

$

0.05

 

(1)

 
                                     
 

Weighted average shares - Basic and Diluted

 

7,151,304

           

7,151,304

         
                                     

(1)  Based on net income attributable to Medley Management Inc. from September 29, 2014 through September 30, 2014

 
                                     

 

Exhibit E. Consolidated Balance Sheets for Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)

             
       

September 30, 
2014
(unaudited)

 

December 31, 
2013

Assets

 

(dollars in thousands)

 

Cash and cash equivalents

$

101,494

   

$

5,395

 
 

Investment, at fair value

 

10,226

     

10,173

 
 

Management fees receivable

 

13,599

     

8,921

 
 

Performance fees receivable

 

6,860

     

3,339

 
 

Other assets

 

7,770

     

5,308

 

Assets of Consolidated Funds:

             
 

Cash and cash equivalents

 

41,606

     

60,355

 
 

Investments, at fair value

 

553,836

     

412,218

 
 

Interest and dividends receivable

 

4,093

     

2,804

 
 

Other assets

 

3,334

     

436

 
   

Total assets

$

742,818

   

$

508,949

 

Liabilities and Equity

             
 

Loans payable

$

119,177

   

$

27,990

 
 

Accounts payable, accrued expenses and other liabilities

 

27,543

     

17,613

 
 

Performance fee compensation payable

 

17,022

     

16,225

 

Liabilities of Consolidated Funds:

             
 

Accounts payable, accrued expenses and other liabilities

 

4,310

     

1,160

 
   

Total liabilities

 

168,052

     

62,988

 
                     

Equity

               
 

Class A Common Stock

 

60

     

-

 
 

Class B Common Stock

 

-

     

-

 
 

Additional paid-in-capital

 

(3,096)

     

-

 
 

Retained earnings

 

378

     

-

 
   

Total stockholders' deficit, Medley Management Inc.

 

(2,658)

     

-

 
 

Non-controlling interests in Consolidated Funds

 

585,007

     

464,475

 
 

Non-controlling interests in consolidated subsidiaries

 

3,140

     

40

 
 

Non-controlling interests in Medley LLC

 

(10,723)

     

-

 
 

Medley LLC members' capital prior to reorganization

 

-

     

(18,554)

 
                     
   

Total equity

 

574,766

     

445,961

 

Total liabilities and equity

$

742,818

   

$

508,949

 
                     

 

 

Exhibit F. Consolidating Statements of Operations for Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)

       

Three Months Ended September 30, 2014
(unaudited)

       

Standalone

 

Consolidated Funds

 

Eliminations

 

Consolidated

       

(Dollars in thousands)

Revenues:

                               
 

Management fees

 

$

17,616

   

$

-

   

$

(603)

   

$

17,013

 
 

Performance fees

   

3,395

     

-

     

(2,430)

     

965

 
 

Other income and fees

   

2,787

     

-

     

-

     

2,787

 
   

Total revenues

   

23,798

     

-

     

(3,033)

     

20,765

 

Expenses:

                               
 

Compensation and benefits

   

5,677

     

-

     

-

     

5,677

 
 

Performance fee compensation

   

(921)

     

-

     

-

     

(921)

 
 

Consolidated Funds expenses

   

-

     

899

     

(603)

     

296

 
 

General, administrative and other expenses

   

3,458

     

-

     

-

     

3,458

 
   

Total operating expenses

   

8,214

     

899

     

(603)

     

8,510

 

Other income (expense):

                               
 

Dividend income

   

222

     

-

     

-

     

222

 
 

Interest expense

   

(2,016)

     

-

     

-

     

(2,016)

 
 

Other expense, net

   

(87)

     

-

     

(181)

     

(268)

 
 

Interest and other income of Consolidated

           

15,356

             

15,356

 
   

Funds

 

-

-

 

Net realized gain on investments of Consolidated Funds

   

-

     

(499)

     

-

     

(499)

 
 

Net change in unrealized depreciation on investments of Consolidated Funds

   

-

     

(1,069)

     

-

     

(1,069)

 

Total other income (expense)

   

(1,881)

     

13,788

     

(181)

     

11,726

 
 

Income before income taxes

   

13,703

     

12,889

     

(2,611)

     

23,981

 
 

Provision for income taxes

   

578

     

345

     

-

     

923

 

Net income

   

13,125

     

12,544

     

(2,611)

     

23,058

 
 

Net income attributable to non-controlling interests in Consolidated Funds

   

-

     

-

     

9,933

     

9,933

 
 

Net income attributable to non-controlling interests in subsidiaries

   

612

     

-

     

-

     

612

 
 

Net income attributable to non-controlling interests in Medley LLC

   

12,135

     

-

     

-

     

12,135

 
   

Net income attributable to Medley Management Inc.

 

$

378

   

$

12,544

   

$

(12,544)

   

$

378

 
                                     

 

     

Nine Months Ended September 30, 2014 
(unaudited)

     

Standalone

 

Consolidated Funds

 

Eliminations

 

Consolidated

     

(Dollars in thousands)

Revenues:

                             
 

Management fees

$

47,516

   

$

-

   

$

(4,050)

   

$

43,466

 
 

Performance fees

 

11,471

     

-

     

(8,134)

     

3,337

 
 

Other income and fees

 

7,183

     

-

     

-

     

7,183

 
   

Total revenues

 

66,170

     

-

     

(12,184)

     

53,986

 

Expenses:

                             
 

Compensation and benefits

 

15,010

     

-

     

-

     

15,010

 
 

Performance fee compensation

 

2,237

     

-

     

-

     

2,237

 
 

Consolidated Funds expenses

 

-

     

5,179

     

(4,050)

     

1,129

 
 

General, administrative and other expenses

 

12,821

     

-

     

-

     

12,821

 
   

Total operating expenses

 

30,068

     

5,179

     

(4,050)

     

31,197

 

Other income (expense):

                             
 

Dividend income

 

665

     

-

     

-

     

665

 
 

Interest expense

 

(3,380)

     

-

     

-

     

(3,380)

 
 

Other income (expense)

 

(1,707)

     

-

     

121

     

(1,586)

 
 

Interest and other income of Consolidated

         

45,890

             

45,890

 
 

Funds

-

-

 

Net realized gain on investments of Consolidated Funds

 

-

     

789

     

-

     

789

 
 

Net change in unrealized depreciation on investments of Consolidated Funds

 

-

     

(9,437)

     

-

     

(9,437)

 

Total other income (expense)

(4,422)

     

37,242

     

121

     

32,941

 
 

Income before income taxes

 

31,680

     

32,063

     

(8,013)

     

55,730

 
 

Provision for income taxes

 

1,026

     

1,148

     

-

     

2,174

 
   

Net income

 

30,654

     

30,915

     

(8,013)

     

53,556

 
 

Net income attributable to non-controlling interests in Consolidated Funds

 

-

     

-

     

22,902

     

22,902

 
 

Net income attributable to non-controlling interests in subsidiaries

 

2,172

     

-

     

-

     

2,172

 
 

Net income attributable to non-controlling interests in Medley LLC

 

28,104

     

-

     

-

     

28,104

 
   

Net income attributable to Medley Management Inc.

$

378

   

$

30,915

   

$

(30,915)

   

$

378

 
                                   

 

     

Three Months Ended September 30, 2013
(unaudited)

     

Standalone

 

Consolidated Funds

 

Eliminations

 

Consolidated

     

(Dollars in thousands)

Revenues:

                             
 

Management fees

$

13,875

   

$

-

   

$

(4,604)

   

$

9,271

 
 

Performance fees

 

(37)

     

-

     

867

     

830

 
 

Other income and fees

 

1,328

     

-

     

-

     

1,328

 
   

Total revenues

 

15,166

     

-

     

(3,737)

     

11,429

 

Expenses:

                             
 

Compensation and benefits

 

3,498

     

-

     

-

     

3,498

 
 

Performance fee compensation

 

928

     

-

     

-

     

928

 
 

Consolidated Funds expenses

 

-

     

4,910

     

(4,604)

     

306

 
 

General, administrative and other expenses

 

3,160

     

-

     

-

     

3,160

 
   

Total operating expenses

 

7,586

     

4,910

     

(4,604)

     

7,892

 

Other income (expense):

                             
 

Dividend income

 

222

     

-

     

-

     

222

 
 

Interest expense

 

(345)

     

-

     

-

     

(345)

 
 

Other income (expense)

 

77

     

-

     

(74)

     

3

 
 

Interest and other income of Consolidated

                             
 

Funds

-

13,495

-

13,495

 

Net realized gain on investments of Consolidated Funds

 

-

     

(5,486)

     

-

     

(5,486)

 
 

Net change in unrealized depreciation on investments of Consolidated Funds

 

-

     

2,535

     

-

     

2,535

 
   

Total other income (expense)

 

(46)

     

10,544

     

(74)

     

10,424

 
 

Income before income taxes

 

7,534

     

5,634

     

793

     

13,961

 
 

Provision for income taxes

 

218

     

244

     

-

     

462

 
   

Net income

 

7,316

     

5,390

     

793

     

13,499

 
 

Less: Net income attributable to non-controlling interests in Consolidated Funds

 

-

             

6,183

     

6,183

 
 

Net income attributable to Medley LLC

$

7,316

   

$

5,390

   

$

(5,390)

   

$

7,316

 
                                   

 

     

Nine Months Ended September 30, 2013
(unaudited)