ZAIS Group Holdings, Inc. Reports Second Quarter 2017 Results

RED BANK, N.J., Aug. 14, 2017

SECOND QUARTER 2017 HIGHLIGHTS

A summary of the Company's results for the three and six months ended June 30, 2017 and June 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		Six Months Ended
	June 30, 2017 ARIVA.DE Börsen-Geflüster Kurse Zais Group Holdings -   0,00%	June 30, 2016	June 30, 2017	June 30, 2016
U.S. GAAP
Net income/(loss)	$0.4	$(4.9)	$(5.0)	$(11.3)
Net Income/(loss) per diluted weighted average share outstanding applicable to ZAIS Group Holdings, Inc.	$(0.05)	$(0.29)	$(0.34)	$(0.64)
Net Income/(loss)before income taxes	$0.4	$(4.9)	$(5.0)	$(11.3)
Non-GAAP
Net income/(loss) (excluding Consolidated Funds of ZAIS Group)	$(1.0)	$(6.0)	$(7.2)	$(13.1)
Net income/(loss) (excluding Consolidated Funds of ZAIS Group) per diluted weighted average share outstanding	$(0.05)	$(0.29)	$(0.34)	$(0.64)
Adjusted EBITDA	$(0.8)	$(4.5)	$(5.9)	$(10.5)

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 – Second Quarter Ended June 30, 2017

The Company recorded GAAP net income for the three months ended June 30, 2017 of $0.4 million compared with a GAAP net loss of $(4.9) million for the three months ended June 30, 2016.  The increase of $5.3 million in GAAP net income was primarily driven by an increase in revenues of $3.6 million, a decrease in expenses of $1.5 million and an increase in other income of $0.3 million.  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 $3.6 million primarily due to a $2.7 million increase in incentive income that was driven by an increase of $2.6 million due to fees which crystalized during the current quarter and an increase of $0.1 million due to incentive fees realized upon the liquidation of a ZAIS managed CLO.  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 and paid directly to vendors by ZAIS Group and a $0.4 million increase in income of Consolidated Funds related to ZAIS Zephyr A-6 LP's ("Zephyr A-6") investments in ZAIS CLO 6, Limited. 

Total expenses decreased by $1.5 million primarily due to a $2.4 million decrease in compensation and benefits offset by a $0.9 million increase in general, administrative and other expenses.  Compensation and benefits decreased due to $1.0 million decrease in salaries, bonuses, and associated payroll taxes and other employee benefits primarily due to a reduction in force which occurred in 2016 and a $1.3 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 $0.9 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 $0.2 million relating to legal fees, an increase of $0.2 million in information technology costs primarily due to the relocation of servers to an offsite co-location and an increase of $0.2 million in accounting fees, all offset by a net decrease in other general and administrative costs.

Other income increased by $0.3 million primarily due to a $0.9 million increase in net gain (loss) on Zephyr A-6's investment in ZAIS CLO 5, Limited, which is a Consolidated Fund, offset by a $0.6 million decrease in net gain on Consolidated Funds' investments related to Zephyr A-6, also a Consolidated Fund.

Operating Results – Six Months Ended June 30, 2017

The Company recorded GAAP net loss for the six months ended June 30, 2017 of $(5.0) million compared with a GAAP net loss of $(11.3) million for the six months ended June 30, 2016.  The decrease of $6.3 million in GAAP net loss was primarily driven by an increase in revenues of $3.8 million, a decrease in expenses of $2.6 million offset by a decrease in other income of $0.1 million. 

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 June 30, 2017, the Company had cash and cash equivalents, on an unconsolidated basis, of $17.0 million and no debt obligations.

SECOND QUARTER 2017 SUPPLEMENTAL INFORMATION 

The Company's Second Quarter 2017 Supplemental Information – June 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)
		June 30, 2017				December 31, 2016
Assets
Cash and cash equivalents		$	16,970			$	38,712
Income and fees receivable			1,869				8,805
Investments in affiliates, at fair value			10,288				5,273
Due from related parties			1,101				734
Property and equipment, net			319				274
Prepaid expenses			1,907				906
Other assets			385				348
Assets of Consolidated Funds
Cash and cash equivalents			13,416				37,080 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 10:30 - wallstreet:online ... BTC in der Analyse: Bitcoin – die dunklen Seiten der Kryptowährung 05:02 - The Motley Fool Das passiert, wenn man 10.000 Euro in die BASF-Aktie investiert Breaking News:    Heftige Kursexplosion am Montag?! weiterlesen» Anzeige wo-site-teaser-box-16920_site-teaser-box_2024-05-12_09%253A00%253A00_2024-05-13_09%253A00%253A59