ZAIS Group Holdings, Inc. Reports Third Quarter 2017 Results

RED BANK, N.J., Nov. 13, 2017

THIRD QUARTER 2017 HIGHLIGHTS

A summary of the Company's results for the three and nine months ended September 30, 2017 and September 30, 2016 are set forth below.  All dollar amounts are presented in millions, with the exception of figures presented on a per share basis.

	Three Months Ended		Nine Months Ended
	September 30, 2017	September 30, 2016 ARIVA.DE Börsen-Geflüster Kurse Zais Group Holdings -   0,00%	September 30, 2017	September 30, 2016
U.S. GAAP
Net income/(loss)	$1.6	$1.6	$(3.4)	$(9.7)
Net income/(loss) per diluted weighted average share outstanding applicable to ZAIS GroupHoldings, Inc.	$0.03	$(0.02)	$(0.31)	$(0.66)
Net income/(loss) before income taxes	$1.6	$1.6	$(3.4)	$(9.7)
Non-GAAP
Net income/(loss) (excluding Consolidated Funds of ZAIS Group)	$0.6	$(0.3)	$(6.6)	$(13.4)
Net income/(loss) (excluding Consolidated Funds of ZAIS Group) per diluted weighted average share outstanding	$0.03	$(0.02)	$(0.31)	$(0.66)
Adjusted EBITDA	$0.8	$1.1	$(5.1)	$(9.5)

The consolidated financial statements include non-controlling interests of the members of ZAIS Group Parent, LLC ("ZGP") (the "ZGP Founder Members") which represent Class A Units of ZGP held by the ZGP Founder Members.  ZGP, a majority-owned consolidated subsidiary of ZAIS, is the sole member, and owns all of the equity, of ZAIS Group.

CONSOLIDATED GAAP RESULTS

Operating Results – Third Quarter Ended September 30, 2017

The Company recorded GAAP net income for the three months ended September 30, 2017 of $1.6 million compared with GAAP net income of $1.6 million for the three months ended September 30, 2016.  For the quarter ending September 30, 2017, there was an increase in revenues of $2.0 million, a decrease in expenses of $0.2 million, offset by a decrease in other income of $2.2 million, as compared to the same period ending September 30, 2016.  The GAAP results include the results of funds and structured financing entities which are consolidated by the Company (the "Consolidated Funds").

Total revenues increased by $2.0 million primarily due to a $0.9 million increase in incentive income that was primarily driven by an increase of $1.9 million for certain funds that were crystalized during the current quarter, offset by a decrease of $1.0 million in incentive fees attributable to a fund that generated incentive fees in the prior year period, but was liquidated in the prior year so no incentive fees were realized in the current period.  Management fees increased by $0.6 million due to $0.9 million of fees recognized for certain ZAIS managed CLOs that were not recognized in the comparable prior year period and $0.6 million driven by increased performance of certain ZAIS Managed Entities in the current quarter.  These favorable management fee variances were offset by a decrease of $0.7 million due to the termination of the management agreement between ZAIS REIT Management and ZFC REIT and a decrease of $0.2 million due to the liquidation of certain managed accounts.  Revenues also increased due to a $0.4 million increase in reimbursement revenue relating to the reimbursement from certain ZAIS Managed Entities for research and data services expenses incurred by ZAIS Group during the current quarter and paid directly to vendors by ZAIS Group and a $0.1 million increase in income of Consolidated Funds related to ZAIS Zephyr A-6 LP's ("Zephyr A-6") investments in unconsolidated ZAIS managed CLOs.

Total expenses decreased by $0.2 million primarily due to a $1.1 million decrease in compensation and benefits offset, by a $0.7 million increase in general, administrative and other expenses and a $0.2 million increase in expenses of Consolidated Funds.  Compensation and benefits decreased primarily due to a $1.2 million decrease in equity compensation expense relating to the reduction in outstanding equity compensation units resulting from the cancellation in December 2016 of all of ZGP's Class B-0 Units held by certain employees in consideration of the receipt by such employees in substitution therefor (as elected by each employee) of RSUs (which fully vested on March 17, 2017) or the right to receive cash (which was paid on March 22, 2017).  General, administrative and other expenses increased by $0.7 million primarily due to an increase of $0.4 million in expenses relating to research and data services borne by ZAIS Group and paid directly by ZAIS Group to vendors which are reimbursable from certain  ZAIS Managed Entities, an increase of $0.1 million in expenses relating to research and data services incurred by ZAIS Group and paid directly to vendors by ZAIS Group relating to the management of the ZAIS Managed Entities and an increase of $0.3 million relating to legal fees offset, by a net decrease of $0.1 million in other general and administrative costs.

Other income decreased by $2.2 million primarily due to a $2.8 million decrease in net gain (loss) on Consolidated Funds' investments related to Zephyr A-6 offset by a $0.6 million increase in net gain on beneficial interest of consolidated collateralized financing entity which relates to Zephyr A-6's investment in ZAIS CLO 5.

Operating Results – Nine Months Ended September 30, 2017

The Company recorded GAAP net loss for the nine months ended September 30, 2017 of $(3.4) million compared with a GAAP net loss of $(9.7) million for the nine months ended September 30, 2016.  The decrease of $6.3 million in GAAP net loss was primarily driven by an increase in revenues of $5.8 million and a decrease in expenses of $2.7 million, offset by a decrease in other income of $2.3 million.

ACQUISITION PROPOSAL 

On September 5, 2017, Z Acquisition LLC entered into a share purchase agreement with Ramguard LLC pursuant to which Z Acquisition LLC will acquire 6,500,000 shares of Class A Common Stock of the Company at a purchase price of $4.00 per share for a combination of cash and a note (the "Ramguard Agreement"). After giving effect to the Ramguard Agreement, Christian Zugel would hold, directly or indirectly, 6,800,000 shares of the Class A Common Stock and 3,325,000 Class A Units of ZGP.

On September 5, 2017, the Special Committee of the Board of Directors of the Company received a letter (the "Letter") from Christian Zugel seeking to pursue discussions with the Special Committee to take the Company private by acquiring the issued and outstanding shares of Class A Common Stock of the Company, other than shares held by Christian Zugel and his affiliates, at $4.00 per share in an all cash transaction by way of a merger. A copy of the Letter is included as Exhibit 99.1 in the 8K filed with the SEC on September 7, 2017. Discussions between Christian Zugel and the Special Committee are continuing.  There is no assurance that an agreement will be reached. 

CONSOLIDATED NON-GAAP RESULTS

Please see the discussion of "Non-GAAP Financial Measures", including the definitions of net income (loss) (excluding Consolidated Funds of ZAIS Group) and Adjusted EBITDA, and reconciliations of such Non-GAAP financial measures to the respective GAAP net income (loss) measures for the periods discussed above at the end of this press release.

The Company's GAAP net income (loss) and non-GAAP measures of income (loss) may fluctuate materially depending upon the performance of ZAIS Managed Entities as well as other factors. Accordingly, the GAAP net income (loss) and non-GAAP measures of income (loss) in any particular period should not be expected to be indicative of future results.

LIQUIDITY & CAPITAL RESOURCES

As of September 30, 2017, the Company had cash and cash equivalents, on an unconsolidated basis, of $16.2 million and no debt obligations.

THIRD QUARTER 2017 SUPPLEMENTAL INFORMATION 

The Company's Third Quarter 2017 Supplemental Information – September 30, 2017, is available on ZAIS's website at www.zaisgroupholdings.com. To access the information, go to the "ZAIS Shareholders" section of the website.

USE OF NON-GAAP FINANCIAL INFORMATION

In addition to the results presented in accordance with generally accepted accounting principles ("GAAP"), this press release includes certain non-GAAP financial information, including net income (loss) (excluding Consolidated Funds of ZAIS Group) and Adjusted EBITDA (and per share measures).  Net income (loss) (excluding Consolidated Funds of ZAIS Group) is a non-GAAP financial measure that the Company defines as GAAP net income (loss) excluding the consolidating effects of the Consolidated Funds of ZAIS Group.  Adjusted EBITDA is a non-GAAP financial measure that the Company defines as GAAP net income (loss) excluding consolidating effects of Consolidated Funds of ZAIS Group, compensation expense related to a portion of net operating income of ZAIS Group payable to certain employees of ZAIS Group, compensation expense related to incentive income in the form of percentage interests being recorded before related incentive income is recognized, equity-based compensation, severance, taxes, interest expense, depreciation and amortization expenses, goodwill impairment, foreign currency and certain other non-cash and non-operating items.

The Company believes that providing investors with this non-GAAP financial information, in addition to the related GAAP measures, gives investors greater transparency to the information used by management in its financial and operational decision-making. However, because net income (loss) (excluding Consolidated Funds of ZAIS Group) and Adjusted EBITDA are incomplete measures of the Company's financial performance and involve differences from net income (loss) computed in accordance with GAAP, they should be considered along with, but not as alternatives to, the Company's net income (loss) computed in accordance with GAAP as a measure of the Company's financial performance.  In addition, because not all companies use identical calculations, the Company's presentation of net income (loss) (excluding Consolidated Funds of ZAIS Group) and Adjusted EBITDA may not be comparable to other similarly-titled measures of other companies.

ZAIS GROUP HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition (Unaudited) (Dollars in thousands, except share amounts)
		September  30, 2017				December 31, 2016
Assets
Cash and cash equivalents		$	16,241			$	38,712
Income and fees receivable			6,264				8,805
Investments in affiliates, at fair value			10,153				5,273
Due from related parties			958				734
Property and equipment, net			222				274
Prepaid expenses			1,457				906
Other assets			371				348
Assets of Consolidated Funds
Cash and cash equivalents			37 Werbung Mehr Nachrichten zur Zais Group Holdings Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 24.04.24 - PR Newswire Oxford Instruments Plc - Holding(s) in Company 24.04.24 - PR Newswire BlackRock Income and Growth Investment Trust Plc - Transaction in Own Shares 24.04.24 - PR Newswire Fidelity Asian Values Plc - Monthly Factsheet SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59