- The net loss attributable to
JMP Group under generally accepted accounting principles, or GAAP, was$0.3 million , or$0.01 per diluted share, compared to a net loss of$4.7 million , or$0.22 per share, for the quarter endedMarch 31, 2017 . - Total net revenues on a GAAP basis were
$27.2 million , compared to$24.4 million for the quarter endedMarch 31, 2017 . - The operating net loss was
$1.6 million , or$0.07 per diluted share, compared to an operating net loss of$2.1 million , or$0.09 per share, for the quarter endedMarch 31, 2017 . For more information about operating net income, including a reconciliation to net income attributable toJMP Group , see the section below titled “Non-GAAP Financial Measures.” - Adjusted net revenues, which exclude certain non-cash items and non-controlling interests, were
$31.7 million , compared to$25.3 million for the quarter endedMarch 31, 2017 . For more information about adjusted net revenues, including a reconciliation to net revenues, see the section below titled “Non-GAAP Financial Measures.”
“We had a disappointing first quarter as a result of some unusual expenses and a net loss on our invested capital,” said Chairman and Chief Executive Officer
Segment Results of Operations
At
JMP Group’s principal investment activities generate net investment income, which has historically more than covered corporate expenses and has contributed to operating earnings through net corporate income. However, in the first quarter of 2018, the company incurred transaction costs of
A summary of JMP Group’s operating net income per share by segment for the quarter ended
Quarter Ended | |||||||||
($ as shown) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||||||
Broker-dealer | $0.08 | $0.12 | $0.01 | ||||||
Asset management | (0.03) | 0.02 | 0.01 | ||||||
Operating platform EPS | 0.05 | 0.13 | 0.02 | ||||||
Net corporate income | (0.12) | 0.03 | (0.11) | ||||||
Operating EPS (diluted) | ($0.07) | $0.16 | ($0.09) |
Note: Due to rounding, numbers in columns above may not sum to totals presented. |
For more information about segment reporting, adjusted net revenues, including a reconciliation to net revenues, and operating net income, including a reconciliation to net income, see the section below titled “Non-GAAP Financial Measures.”
Composition of Revenues
Investment Banking
Investment banking revenues were
A summary of the company’s investment banking revenues and transaction counts for the quarter ended
Quarter Ended | |||||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |||||||||||||||||
($ in thousands) | Count | Revenues | Count | Revenues | Count | Revenues | |||||||||||||
Equity and debt origination | 21 |
$11,862 |
(1) |
21 | $12,863 | 23 | $10,470 | ||||||||||||
Strategic advisory and private placements | 7 | 8,801 | 4 | 9,647 | 3 | 3,130 | |||||||||||||
Total | 28 |
$20,663 |
(1) |
25 | $22,510 | 26 | $13,600 |
(1) |
Prior to 2018, JMP Group presented investment banking revenues net of related expenses. In the quarter ended March 31, 2018, the company adopted new accounting guidance on revenue recognition, which resulted in the presentation of investment banking revenues and related expenses on a gross basis in the company’s financial statements. These related expenses were $2.0 million for the quarter. |
Brokerage
Net brokerage revenues were
Total capital markets revenues, which consist of net brokerage revenues produced by the institutional equities division in addition to equity and debt origination revenues generated by the investment banking division, were
Asset Management
Asset management fees were
Asset management-related fee revenues reflect asset management fees, net of non-controlling interests in
Client assets under management at
At
Principal Transactions
Principal transactions generated a net realized and unrealized loss of
Adjusted principal transaction revenues exclude certain unrealized mark-to-market gains or losses, including those on JMP Group’s investment in
Net Interest Income
Net interest income was
Repurchase or Early Retirement of Debt
For the quarter ended
Provision for Loan Losses
The net loan loss provision was
Expenses
Compensation and Benefits
Compensation and benefits expense was
For more information about compensation ratios, see the section below titled “Non-GAAP Financial Measures.”
Non-Compensation Expense
Non-compensation expense was
Share Repurchase Activity
During the quarter ended
Personnel
At
Non-GAAP Financial Measures
In addition to the GAAP financial results presented in this press release,
Adjusted Net Revenues
Adjusted net revenue is a non-GAAP financial measure that (i) reverses the general loan loss provision taken with regard to certain CLOs, (ii) excludes the impact of the early retirement of debt issued by
- the non-specific loss provision recorded with regard to loans held by JMP Credit Advisors CLO II (while outstanding),
JMP Credit Advisors CLO III, JMP Credit Advisors CLO IV and JMP Credit Advisors CLO V and to loans held for investment, which is required by GAAP; - one-time expenses associated with the redemption of senior notes due 2021 and of debt underlying JMP Credit Advisors CLO III and the resulting acceleration of the amortization of remaining capitalized issuance costs for each;
- unrealized mark-to-market gains or losses on investments in the company’s hedge funds that are made on behalf of employees who opt for such investments under the terms of their deferred compensation agreements; any gains or losses will accrue to the individual employee once the deferred compensation is released to that individual;
- depreciation and amortization expense related to commercial real estate investments that is recognized by
JMP Group as a result of equity method accounting; - unrealized mark-to-market gains or losses on the company’s strategic equity investments as well as certain warrant positions; and
- non-controlling interests in revenues generated by consolidated entities, including
HCAP Advisors and CLOs managed byJMP Credit Advisors .
A reconciliation of JMP Group’s net revenues to its adjusted net revenues for the quarter ended
Quarter Ended | |||||||||
(in thousands) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||||||
Revenues: | |||||||||
Non-interest revenues | $28,294 | $30,043 | $24,462 | ||||||
Net interest income | 3,008 | 2,443 | 972 | ||||||
Early retirement of debt | (2,626) | (775) | 210 | ||||||
Provision for loan losses | (1,465) | (875) | (1,266) | ||||||
Total net revenues | 27,211 | 30,836 | 24,378 | ||||||
Add back/(subtract): | |||||||||
General loan loss provision/(reversal) – collateralized loan obligations |
329 | 680 | (418) | ||||||
Early retirement of debt | 1,318 | 1,067 | - | ||||||
Unrealized mark-to-market (gain) – deferred compensation |
(1) | (6) | (75) | ||||||
Unrealized loss – real estate-related depreciation and amortization |
1,628 | 1,173 | 2,156 | ||||||
Unrealized mark-to-market loss – strategic equity investments and warrants |
638 | 1,816 | 419 | ||||||
Non-controlling interests | 618 | (1,265) | (1,199) | ||||||
Adjusted net revenues | $31,741 | $34,301 | $25,261 |
Company management has utilized adjusted net revenue, adjusted in the manner described above, as an additional device to aid in understanding and analyzing JMP Group’s financial results for the periods presented. Management believes that adjusting net revenue in these ways is useful in that it allows for a better evaluation of the performance of JMP Group’s ongoing business and facilitates a meaningful comparison of the company’s results in a given period to those in prior and future periods.
Asset Management-Related Fee Revenues
Asset management-related fee revenue is a non-GAAP financial measure that (i) excludes the non-controlling interest in asset management subsidiary
A statement of JMP Group’s asset management-related fee revenues for the quarter ended
Quarter Ended | ||||||||||||
(in thousands) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |||||||||
Base management fees: | ||||||||||||
Revenues reported as asset management fees | $3,061 | $3,463 | $4,045 | |||||||||
Non-controlling interests | (140 | ) | (122 | ) | (335 | ) | ||||||
Total base management fees | 2,921 | 3,341 | 3,710 | |||||||||
Incentive fees: | ||||||||||||
Revenues reported as asset management fees | 3,364 | 508 | 1,866 | |||||||||
Non-controlling interests | - | - | (113 | ) | ||||||||
Total incentive fees | 3,364 | 508 | 1,753 | |||||||||
Other income: | ||||||||||||
Total fundraising and other fees | 12 | 430 | 446 | |||||||||
Asset management-related fee revenues | $6,297 | $4,279 | $5,909 |
Company management has utilized asset management-related fee revenue as a means of assessing the performance of JMP Group’s combined asset management activities, including its fundraising and other services for third parties. Management believes that asset management-related fee revenues, as presented above, provide useful information by indicating the relative contributions of base management fees and performance-related incentive fees, thus facilitating a comparison of those fees in a given period to those in prior and future periods. Management also believes that asset management-related fee revenue is a more meaningful measure than standalone asset management fees as reported, because asset management-related fee revenues represent the combined impact of JMP Group’s various asset management activities on the company’s total net revenues.
Adjusted Principal Transaction Revenues
Adjusted principal transaction revenue is a non-GAAP financial measure that reverses (i) net unrealized gains and losses related to deferred compensation, (ii) unrealized losses derived from depreciation and amortization of real estate investment properties, (iii) net unrealized gains and losses on strategic equity investments and warrants, and (iv) non-controlling interests in CLO-related gains or losses, in keeping with the calculation of adjusted net revenue, as detailed above.
A summary of the company’s principal transaction revenues for the quarter ended March 31, 2018, and for comparable prior periods, is set forth below.
Quarter Ended | |||||||||
(in thousands) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||||||
Hedge fund investments | ($687) | $832 | $130 | ||||||
Investment in Harvest Capital Credit Corporation | (638) | (1,816) | (419) | ||||||
Other principal investments | (2,294) | (1,845) | (1,603) | ||||||
Total principal transaction revenues | (3,619) | (2,829) | (1,892) | ||||||
Add back/(subtract): | |||||||||
Unrealized mark-to-market (gain) – deferred compensation |
(1) | (6) | (75) | ||||||
Unrealized loss – real estate-related depreciation and amortization |
1,628 | 1,173 | 2,156 | ||||||
Unrealized mark-to-market loss – strategic equity investments and warrants |
638 | 1,816 | 419 | ||||||
Non-controlling interests – CLO portfolios | 71 | - | - | ||||||
Total operating adjustments | 2,336 | 2,983 | 2,500 | ||||||
Total adjusted principal transaction revenues | ($1,283) | $154 | $608 |
Company management utilizes adjusted principal transaction revenue because it is a component of adjusted net revenue. The exclusion of certain elements of principal transaction revenues, as presented above, results in an adjusted measure that is included as “Principal transactions” among JMP Group’s revenues in the non-GAAP presentation of segment results of operations that appears below. Management believes that adjusting principal transaction revenues and total revenues in these ways is useful in that it allows for a clearer understanding and comparison of JMP Group’s financial results for the periods presented.
Compensation Ratio
A compensation ratio expresses compensation expense as a percentage of net revenues in a given period. As utilized by
A statement of JMP Group’s compensation ratio for the quarter ended
Quarter Ended | |||||||||
($ in thousands) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||||||
Compensation Ratio | |||||||||
Adjusted net revenues | $31,741 | $34,301 | $25,261 | ||||||
Compensation and benefits | $24,261 | $21,588 | $21,798 | ||||||
Subtract/(add back): | |||||||||
Compensation expense – stock options and SARs | (97) | (188) | 67 | ||||||
Compensation expense – RSUs | 160 | 213 | 239 | ||||||
Compensation expense – deferred compensation | 81 | (811) | 654 | ||||||
Unrealized mark-to-market gain – deferred compensation |
1 | 6 | 75 | ||||||
Compensation expense – non-controlling interest | 352 | 296 | 260 | ||||||
Adjusted compensation and benefits | $23,764 | $22,072 | $20,503 | ||||||
Adjusted ratio of compensation expense to revenues | 74.9% | 64.3% | 81.2% | ||||||
Compensation Ratio Excluding Incentive Fees and Loss Provision | |||||||||
Adjusted net revenues | $31,741 | $34,301 | $25,261 | ||||||
Subtract/(add back): | |||||||||
Compensation expense – hedge fund incentive fees | 3,025 | 270 | 1,471 | ||||||
Specific loan loss provision | (893) | (128) | (1,413) | ||||||
Adjusted net revenues, excluding hedge fund incentive fees and specific loss provision |
$29,609 | $34,159 | $25,203 | ||||||
Adjusted compensation and benefits | $23,764 | $22,072 | $20,503 | ||||||
Subtract: | |||||||||
Compensation expense – hedge fund incentive fees | 3,025 | 270 | 1,471 | ||||||
Adjusted compensation and benefits, excluding hedge fund incentive fees |
$20,739 | $21,802 | $19,032 | ||||||
|
|||||||||
Adjusted ratio of compensation expense to revenues, excluding hedge fund incentive fees and specific loss provision |
70.0% | 63.8% | 75.5% |
Company management has utilized compensation ratios, adjusted in the manners described above, to assess JMP Group’s personnel expenses as they relate to its revenues for the periods presented. Management believes that adjusted compensation ratios provide useful information by including or excluding certain expenses as a means of representing the company’s ongoing personnel costs resulting from its core business activities. Management also believes that compensation ratios are useful measures because they allow and facilitate meaningful comparisons of the company’s personnel expenses in a given period to those in prior and future periods.
Operating Net Income
Operating net income is a non-GAAP financial measure that (i) reverses compensation expense related to share-based awards and deferred compensation, (ii) reverses the general loan loss provision taken with regard to certain CLOs, (iii) excludes the impact of the early retirement of debt issued by
- the grant of RSUs and options;
- net deferred compensation, which consists of (a) deferred compensation awarded in a given period but recognized as a GAAP expense over the subsequent three years, less (b) GAAP expense recognized in a given period but already reflected in the operating income of a prior period; the purpose of this adjustment is to fully reflect compensation awarded in a given year, notwithstanding the timing of GAAP expense;
- the non-specific loss provision recorded with regard to loans held by JMP Credit Advisors CLO II (while outstanding),
JMP Credit Advisors CLO III, JMP Credit Advisors CLO IV and JMP Credit Advisors CLO V and to loans held for investment, which is required by GAAP; - one-time expenses associated with the redemption of debt underlying JMP Credit Advisors CLO III (in the first quarter of 2018) and of senior notes due 2021 (in the fourth quarter of 2017) and the resulting acceleration of the amortization of remaining capitalized issuance costs for each;
- one-time transaction costs related to the refinancing of notes issued by JMP Credit Advisors CLO III;
- amortization expense related to an intangible asset resulting from the repurchase of a portion of the equity of JMP Credit Advisors CLO III;
- depreciation and amortization expense related to commercial real estate investments that is recognized by
JMP Group as a result of equity method accounting; - unrealized mark-to-market gains or losses on the company’s strategic equity investments as well as certain warrant positions; and
- a combined federal, state and local income tax rate of 26% at the taxable direct subsidiary of parent company
JMP Group , while applying a tax rate of 0% to the company’s other direct subsidiary, which is a “pass-through entity” for tax purposes.
A reconciliation of JMP Group’s net income to its operating net income for the quarter and year ended
Quarter Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |||||||
Net income/(loss) attributable to JMP Group | ($283) | ($1,373) | ($4,740) | ||||||
Add back/(subtract): | |||||||||
Income tax expense/(benefit) | (5,568) | 1,913 | (1,084) | ||||||
Income/(loss) before taxes | (5,851) | 540 | (5,824) | ||||||
Add back/(subtract): | |||||||||
Compensation expense – stock options and SARs | (97) | (188) | 67 | ||||||
Compensation expense – RSUs | 160 | 213 | 239 | ||||||
Compensation expense – net deferred compensation | 81 | (811) | 654 | ||||||
General loan loss provision/(reversal) – collateralized loan obligations |
329 | 680 | (418) | ||||||
Early retirement of debt | 1,318 | 1,067 | - | ||||||
Restructuring costs – CLO portfolios | 64 | 15 | - | ||||||
Amortization of intangible asset – CLO III | 69 | 69 | 69 | ||||||
Unrealized loss – real estate-related depreciation and amortization |
1,628 | 1,173 | 2,156 | ||||||
Unrealized mark-to-market loss – strategic equity investments and warrants |
638 | 1,816 | 419 | ||||||
Operating income/(loss) before taxes | (1,661) | 4,574 | (2,638) | ||||||
Income tax expense/(benefit) |
(30) |
983 |
(555) |
||||||
Operating net income/(loss) | ($1,631) | $3,591 | ($2,083) | ||||||
Operating net income/(loss) per share: | |||||||||
Basic | ($0.08) | $0.17 | ($0.10) | ||||||
Diluted (1) | ($0.07) | $0.16 | ($0.09) | ||||||
Weighted average shares outstanding: | |||||||||
Basic | 21,666 | 21,568 | 21,573 | ||||||
Diluted (1) | 21,811 | 22,017 | 21,988 |
(1) | In 2013 and the first quarter of 2014, JMP Group issued restricted share units, or RSUs, bearing non-forfeitable distribution equivalent rights. GAAP requires RSUs with non-forfeitable distribution equivalent rights to be included in the diluted share count (without applying the treasury method). Management presents a non-GAAP diluted share count, in keeping with the presentation for quarters not impacted by this GAAP requirement for such RSUs. The non-GAAP diluted share count reflects the impact of such RSUs under the treasury method, which is consistent with the calculation of the dilutive impact of all other RSUs outstanding. On a GAAP basis, the weighted average number of diluted shares outstanding for the quarters ended March 31, 2018, December 31, 2017, and March 31, 2017, was 21,665,652, 21,567,723 and 21,572,686, respectively, equivalent to the weighted average number of basic shares outstanding, due to the company’s net loss for these periods. Under GAAP, in a period of net loss, dilutive securities are disregarded in the calculation of earnings per share. |
Company management has utilized operating net income on a total and per share basis, adjusted in the manner described above, as an additional device to aid in understanding and analyzing JMP Group’s financial results for the periods presented. Management believes that operating net income provides useful information by excluding certain items that may not be representative of the company’s core operating results or core business activities. Management also believes that operating net income is a useful measure because it allows for a better evaluation of the performance of JMP Group’s ongoing business and facilitates a meaningful comparison of the company’s results in a given period to those in prior and future periods.
Segment Reporting
In order to demonstrate the contribution to the company’s results of each of its primary businesses on a standalone basis,
Total net revenues have been adjusted, in part, as detailed above in the section titled “Adjusted Net Revenue,” and the resulting presentation of adjusted net revenues excludes (i) the general loan loss provision taken with regard to certain CLOs, (ii) the impact of the early retirement of debt associated with JMP Credit Advisors CLO III, (iii) unrealized mark-to-market gains or losses on investments related to deferred compensation, (iv) unrealized losses derived from depreciation and amortization of real estate investment properties, (v) net unrealized gains and losses on strategic equity investments and warrants, and (vi) non-controlling interests in various sources of revenue that are consolidated according to GAAP. Total non-interest expenses have been adjusted, in part, as detailed above in the section titled “Operating Net Income,” and the resulting adjusted non-interest expense reverses compensation expense related to share-based awards and deferred compensation. Expenses derived from non-controlling interests in entities that are consolidated according to GAAP have also been reversed. For the purposes of calculating operating net income, an effective tax rate of 26% is assumed for JMP Group’s taxable subsidiary, based on the company’s best estimation of the subsidiary’s average rate of taxation over the long term.
A statement of JMP Group’s operating net income on a segment basis for the quarter ended
Quarter Ended March 31, 2018 | ||||||||||||||||||
Net | ||||||||||||||||||
Broker- | Asset | Operating | Corporate | Elimin- | JMP | |||||||||||||
(in thousands, except per share amounts) | Dealer | Mgmt. | Platforms | Income | ations | Group | ||||||||||||
Revenues: | ||||||||||||||||||
Investment banking | $20,661 | - | $20,661 | - | $2 | $20,663 | ||||||||||||
Brokerage | 4,664 | - | 4,664 | - | - | 4,664 | ||||||||||||
Asset management-related fees | 4 | $3,989 | 3,993 | $3,285 | (981) | 6,297 | ||||||||||||
Principal transactions | - | - | - | (1,283) | - | (1,283) | ||||||||||||
Gain on sale and payoff of loans | - | - | - | (161) | - | (161) | ||||||||||||
Net dividend income | - | - | - | 327 | - | 327 | ||||||||||||
Net interest income | - | - | - | 2,127 | - | 2,127 | ||||||||||||
Provision for loan losses | - | - | - | (893) | - | (893) | ||||||||||||
Adjusted net revenues | 25,329 | 3,989 | 29,318 | 3,402 | (979) | 31,741 | ||||||||||||
Expenses: | ||||||||||||||||||
Non-interest expense/(income) | 22,916 | 5,020 | 27,936 | 6,447 | (981) | 33,402 | ||||||||||||
Operating income/(loss) before taxes | 2,413 | (1,031) | 1,382 | (3,045) | 2 | (1,661) | ||||||||||||
Income tax expense/(benefit) | 627 | (268) | 359 | (389) | - | (30) | ||||||||||||
Operating net income/(loss) | $1,786 | ($763) | $1,023 | ($2,656) | $2 | ($1,631) | ||||||||||||
Operating net income/(loss) per share: | ||||||||||||||||||
Basic | $0.08 | ($0.04) | $0.05 | ($0.12) | $0.00 | ($0.08) | ||||||||||||
Diluted | $0.08 | ($0.03) | $0.05 | ($0.12) | $0.00 | ($0.07) |
Book Value per Share
At
(in thousands, except per share amounts) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||||||
Shareholders' equity | $93,418 | $96,335 | $114,174 | ||||||
|
|||||||||
Accumulated unrealized loss – real estate-related depreciation and amortization |
$13,578 | $11,950 | $6,461 | ||||||
Accumulated general loan loss provision – collateralized loan obligations |
5,787 | 5,458 | 3,662 | ||||||
Adjusted shareholders' equity | $112,783 | $113,743 | $124,297 | ||||||
Book value per share | $4.34 | $4.43 | $5.27 | ||||||
Adjusted book value per share | $5.23 | $5.23 | $5.74 | ||||||
Basic shares outstanding | 21,547 | 21,729 | 21,659 | ||||||
Quarterly operating ROE (1) | (6.9%) | 14.6% | (7.1%) | ||||||
LTM operating ROE (1) | 4.7% | 4.1% | 5.2% | ||||||
Quarterly adjusted operating ROE (1) | (5.8%) | 12.5% | (6.6%) | ||||||
LTM adjusted operating ROE (1) | 4.1% | 3.6% | 4.9% |
(1) | Operating return on equity (ROE) equals operating net income divided by average shareholders’ equity. Adjusted operating ROE equals operating net income divided by average adjusted shareholders’ equity. For more information about operating net income, including a reconciliation to net income attributable to JMP Group, see the section above titled “Operating Net Income.” |
Company management utilizes adjusted book value on a total and per share basis, adjusted in the manner described above, as an additional means of evaluating JMP Group’s efforts to retain earnings and build shareholders’ equity. Management believes that adjusted book value per share provides useful information by excluding non-cash expenses related to real estate investments that otherwise obscure the company’s increases and decreases in net worth as a result of its core business activities. Management also believes that adjusted book value allows for a better comparison of shareholders’ equity and the return on that equity in a given period to those in prior and future periods.
Cautionary Note Regarding Quarterly Financial Results
Due to the nature of its business, JMP Group’s quarterly revenues and net income may fluctuate materially depending on: the size and number of investment banking transactions on which it advises; the timing of the completion of those transactions; the size and number of securities trades which it executes for brokerage customers; the performance of its asset management funds and inflows and outflows of assets under management; gains or losses stemming from sales of or prepayments on, or losses stemming from defaults on, loans underlying the company’s collateralized loan obligations; and the effect of the overall condition of the securities markets and economy as a whole. Accordingly, revenues and net income in any particular quarter may not be indicative of future results. Furthermore, JMP Group’s compensation expense is generally based upon revenues and can fluctuate materially in any quarter, depending upon the amount and sorts of revenue recognized as well as other factors. The amount of compensation and benefits expense recognized in a particular quarter may not be indicative of such expense in any future period. As a result, the company suggests that its annual results may be the most meaningful gauge for investors in evaluating the performance of its business.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide JMP Group’s current expectations or forecasts about future events, including beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expected or implied by the forward-looking statements. The company’s actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Form 10-K for the year ended
Disclosure Information
Conference Call
The conference call will also be broadcast live over the Internet and will be accessible via a link in the investor relations section of the company’s website, at investor.jmpg.com/events.cfm. The Internet broadcast will be archived and will remain available on the website for future replay.
About
JMP GROUP LLC |
||||||
Consolidated Statements of Financial Condition |
||||||
(Unaudited) | ||||||
(in thousands) | Mar. 31, 2018 | Dec. 31, 2017 | ||||
Assets | ||||||
Cash and cash equivalents | $47,858 | $85,594 | ||||
Restricted cash and deposits | 70,419 | 51,727 | ||||
Marketable securities owned, at fair value | 19,640 | 20,825 | ||||
Other investments | 17,033 | 27,984 | ||||
Loans held for investment, net of allowance for loan losses | 145,253 | 83,948 | ||||
Loans collateralizing asset-backed securities issued, net of allowance for loan losses |
754,632 | 765,583 | ||||
Other assets | 46,983 | 40,965 | ||||
Total assets | $1,101,818 | $1,076,626 | ||||
Liabilities and Shareholders' Equity | ||||||
Liabilities: | ||||||
Marketable securities sold, but not yet purchased, at fair value | $6,280 | $7,919 | ||||
Accrued compensation | 10,064 | 43,131 | ||||
Asset-backed securities issued, net of issuance costs | 735,058 | 738,248 | ||||
CLO V warehouse facility | 112,800 | 61,250 | ||||
Bond payable, net of issuance costs | 93,069 | 93,103 | ||||
Note payable | 8,829 | - | ||||
Repurchase agreement | 3,878 | - | ||||
Other liabilities | 25,704 | 22,796 | ||||
Total liabilities | 995,682 | 966,447 | ||||
Shareholders' Equity: | ||||||
Total JMP Group LLC shareholders' equity | 93,418 | 96,335 | ||||
Non-redeemable non-controlling interest | 12,718 | 13,844 | ||||
Total equity | 106,136 | 110,179 | ||||
Total liabilities and shareholders' equity | $1,101,818 | $1,076,626 |
JMP GROUP LLC | ||||||
Consolidated Statements of Operations | ||||||
(Unaudited) |
||||||
Quarter Ended | ||||||
(in thousands, except per share amounts) |
Mar. 31, 2018 | Mar. 31, 2017 | ||||
Revenues: |
||||||
Investment banking | $20,662 | $13,600 | ||||
Brokerage | 4,664 | 5,286 | ||||
Asset management fees | 6,425 | 5,911 | ||||
Principal transactions | (3,620) | (1,893) | ||||
Gain/(loss) on sale and payoff of loans | (182) | 847 | ||||
Net dividend income | 296 | 266 | ||||
Other income | 49 | 445 | ||||
Non-interest revenues | 28,294 | 24,462 | ||||
Interest income | 12,710 | 9,067 | ||||
Interest expense | (9,702) | (8,095) | ||||
Net interest income | 3,008 | 972 | ||||
Gain/(loss) on repurchase or early retirement of debt | (2,626) | 210 | ||||
Provision for loan losses | (1,465) | (1,266) | ||||
Total net revenues | 27,211 | 24,378 | ||||
Non-interest expenses: |
||||||
Compensation and benefits | 24,261 | 21,798 | ||||
Administration | 2,233 | 1,819 | ||||
Brokerage, clearing and exchange fees | 777 | 759 | ||||
Travel and business development | 954 | 915 | ||||
Managed deal expenses | 1,566 | - | ||||
Communications and technology | 1,062 | 1,053 | ||||
Occupancy | 1,117 | 1,111 | ||||
Professional fees | 1,905 | 1,162 | ||||
Depreciation | 264 | 311 | ||||
Other | 387 | 677 | ||||
Total non-interest expense | 34,526 | 29,605 | ||||
Net income/(loss) before income tax |
(7,315) | (5,227) | ||||
Income tax expense/(benefit) |
(5,568) | (1,084) | ||||
Net income/(loss) | (1,747) | (4,143) | ||||
Less: Net income/(loss) attributable to non-redeemable non-controlling interest |
(1,464) | 597 | ||||
Net income/(loss) attributable to JMP Group | ($283) | ($4,740) | ||||
Net income/(loss) attributable to JMP Group per share: | ||||||
Basic | ($0.01) | ($0.22) | ||||
Diluted | ($0.01) | ($0.22) | ||||
Weighted average common shares outstanding: | ||||||
Basic | 21,666 | 21,573 | ||||
Diluted | 21,666 | 21,573 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20180502006423/en/
Source:
Investor Relations Contact
JMP Group LLC
Andrew Palmer, 415-835-8978
apalmer@jmpg.com
Media Relations Contacts
Dukas Linden Public Relations, Inc.
Zach Leibowitz, 646-722-6528
zach@dlpr.com
or
Alyssa Noud, 646-722-6525
alyssa@dlpr.com