Company Reports EPS of $2.13; Economic EPS of $3.21
WEST PALM BEACH, Fla., May 01, 2017 (GLOBE NEWSWIRE) -- Affiliated Managers Group, Inc. (NYSE:AMG)
today reported its financial and operating results for the quarter ended March 31, 2017.
For the first quarter of 2017, diluted earnings per share were $2.13, compared to $1.90 for the same period of 2016, and
Economic earnings per share (“Economic EPS”) were $3.21, compared to $2.92 for the same period of 2016. For the first quarter
of 2017, Net income was $122.5 million, compared to $104.0 million for the same period of 2016. For the first quarter of 2017,
Economic net income was $183.2 million, compared to $159.3 million for the same period of 2016. For the first quarter of
2017, Adjusted EBITDA was $243.8 million, compared to $215.7 million for the same period of 2016. For the first quarter of 2017,
Revenue was $544.3 million, compared to $545.4 million for the same period of 2016. For the first quarter of 2017, Aggregate
revenue, which includes revenue from consolidated Affiliates as well as Equity method revenue (which represents asset-based fees
and performance fees earned by Affiliates accounted for under the equity method), was $1.4 billion, compared to $1.0 billion for
the same period of 2016. (Economic EPS, Economic net income, and Adjusted EBITDA are defined in the attached tables, along with
reconciliations to the most directly comparable GAAP measure.)
Net client cash flows for the first quarter of 2017 were $(1.3) billion. AMG’s aggregate assets under management were
approximately $754 billion at March 31, 2017.
AMG repurchased approximately $80 million in stock, or 0.5 million common shares, during the first quarter of 2017. The Company
initiated a cash dividend in the first quarter, and today, announced a second-quarter cash dividend of $0.20 per common share,
payable May 25, 2017 to stockholders of record as of the close of business on May 11, 2017.
“AMG had a strong start to 2017, including year-over-year growth of 10% in our Economic earnings per share, which were $3.21 for
the first quarter,” stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. “Through successful execution across
all aspects of our growth strategy, our assets under management have grown 17% since the first quarter of 2016 to a record $754
billion – reflecting positive organic growth from net client cash flows over the period, the long-term track records of alpha
generation by our Affiliates, and the addition of excellent new Affiliates.”
“Our positive net flows into alternative strategies were offset by elevated outflows from U.S. equity strategies, resulting in
modest outflows overall for the quarter,” Mr. Healey continued. “Our Affiliates generated excellent investment performance across
their industry-leading product sets, particularly in alternatives and global equities. We continue to see strong client demand
across a diverse array of liquid and illiquid alternative strategies, and while our Affiliates’ equity products saw overall
outflows during the quarter, client appetite remains robust for differentiated equity strategies focused on non-U.S. markets. Lower
correlations, higher volatility, and the shift from monetary to fiscal policy worldwide will favor the abilities of skilled active
managers, providing an increasingly constructive environment for performance-oriented managers running truly active strategies to
generate excess returns. As global clients continue to seek outperformance from value-added strategies for the alpha portions
of their portfolios, the best alpha managers will gain increasing market share, and given their long-term records of
investment outperformance in attractive return-oriented areas, we expect our Affiliates to benefit from this trend.”
“Finally, we have an outstanding ongoing opportunity to enhance our earnings growth and the diversity of our business through
accretive investments in new Affiliates. With our unique competitive position and track record of successful partnerships, our
opportunity set remains unmatched in the industry. Through our disciplined commitment to prudent capital allocation, consistent
return of capital to shareholders, and enhancing the organic growth of our Affiliates, we are positioned to generate substantial
shareholder value ahead.”
About AMG
AMG is a global asset management company with equity investments in leading boutique investment management firms. AMG’s
innovative partnership approach allows each Affiliate’s management team to own significant equity in their firm while maintaining
operational autonomy. AMG’s strategy is to generate shareholder value through the growth of existing Affiliates, as well as through
investments in new Affiliates and additional investments in existing Affiliates. In addition, AMG provides centralized assistance
to its Affiliates in strategic matters, marketing, distribution, product development and operations. As of March 31, 2017, AMG’s
aggregate assets under management were approximately $754 billion in more than 550 investment products across a broad range of
active, return-oriented strategies. For more information, please visit the Company’s website at www.amg.com.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal
securities laws. These statements include, but are not limited to, statements related to our expectations regarding the performance
of our business, our financial results, our liquidity and capital resources and other non-historical statements. You can identify
these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,”
“continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “intends,” “plans,” “estimates,” “pending
investments,” “anticipates” or the negative version of these words or other comparable words. Actual results and the timing of
certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of
factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and
debt financing, competition for acquisitions of interests in investment management firms, the ability to close pending investments,
the investment performance and growth rates of our Affiliates and their ability to effectively market their investment strategies,
the mix of Affiliate contributions to our earnings and other risks, uncertainties and assumptions, including those described under
the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016, as such factors may be
updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no
obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments
or otherwise, except as required by applicable law.
From time to time, AMG may use its website as a distribution channel of material Company information. AMG routinely posts
financial and other important information regarding the Company in the Investor Relations section of its website at www.amg.com and
encourages investors to consult that section regularly.
Financial Tables Follow
A teleconference will be held with AMG’s management at 8:30 a.m. Eastern time today. Parties interested in listening to
the teleconference should dial 1-877-407-8291 (U.S. calls) or 1-201-689-8345 (non-U.S. calls) starting at 8:15 a.m. Eastern time.
Those wishing to listen to the teleconference should dial the appropriate number at least ten minutes before the call
begins.
The teleconference will also be available for replay beginning approximately one hour after the conclusion of the call.
To hear a replay of the call, please dial 1-877-660-6853 (U.S. calls) or 1-201-612-7415 (non-U.S. calls) and provide conference ID
13661068. The live call and replay of the session, and additional financial information referenced during the teleconference, can
also be accessed via AMG’s website at http://www.amg.com/InvestorRelations/.
Investor and Media Relations:
Alexandra Lynn
Selene Oh
+1 (617) 747-3300
ir@amg.com
pr@amg.com
| |
|
|
|
|
| AMG |
| Financial and Operating Measures |
| (in millions, except as noted and per share data) |
| |
|
|
|
|
| |
|
Three Months |
|
Three Months |
| |
|
Ended |
|
Ended |
| |
|
3/31/16 |
|
3/31/17 |
| Operating Performance Measures |
|
|
|
|
| |
|
|
|
|
| Assets under management (at period end, in billions) (A) |
|
$ |
642.0 |
|
$ |
753.5 |
| |
|
|
|
|
| Average assets under management (in billions) (A) |
|
$ |
626.6 |
|
$ |
744.5 |
| |
|
|
|
|
| Revenue |
|
$ |
545.4 |
|
$ |
544.3 |
| |
|
|
|
|
| Equity method revenue (B) |
|
$ |
450.7 |
|
$ |
819.7 |
| |
|
|
|
|
| Financial Performance Measures |
|
|
|
|
| |
|
|
|
|
| Net income (controlling interest) |
|
$ |
104.0 |
|
$ |
122.5 |
| |
|
|
|
|
| Economic net income (controlling interest) (C) |
|
$ |
159.3 |
|
$ |
183.2 |
| |
|
|
|
|
| Adjusted EBITDA (controlling interest) (D) |
|
$ |
215.7 |
|
$ |
243.8 |
| |
|
|
|
|
| |
|
|
|
|
| Average shares outstanding (diluted) |
|
|
56.6 |
|
|
59.2 |
| |
|
|
|
|
| Earnings per share (diluted) |
|
$ |
1.90 |
|
$ |
2.13 |
| |
|
|
|
|
| Average shares outstanding (adjusted diluted) (E) |
|
|
54.4 |
|
|
57.0 |
| |
|
|
|
|
| Economic earnings per share (E) |
|
$ |
2.92 |
|
$ |
3.21 |
| |
|
|
|
|
| |
|
|
|
|
| |
|
December 31, 2016 |
|
March 31, 2017 |
| Balance Sheet Measures |
|
|
|
|
| |
|
|
|
|
| Cash and cash equivalents |
|
$ |
430.8 |
|
$ |
293.6 |
| |
|
|
|
|
| Senior bank debt |
|
$ |
868.6 |
|
$ |
783.7 |
| |
|
|
|
|
| Senior notes |
|
$ |
939.4 |
|
$ |
940.0 |
| |
|
|
|
|
| Convertible securities |
|
$ |
301.6 |
|
$ |
302.3 |
| |
|
|
|
|
| Stockholders’ equity |
|
$ |
3,619.6 |
|
$ |
3,584.9 |
| |
| |
|
|
|
|
| AMG |
| Reconciliations of Earnings Per Share
Calculation |
| (in millions, except per share data) |
| |
|
|
|
|
| |
|
Three Months |
|
Three Months |
| |
|
Ended |
|
Ended |
| |
|
3/31/16 |
|
3/31/17 |
| |
|
|
|
|
| Net income (controlling interest) |
|
$ |
104.0 |
|
|
$ |
122.5 |
|
| Convertible securities interest expense, net |
|
|
3.8 |
|
|
|
3.8 |
|
| Net income (controlling interest), as adjusted |
|
$ |
107.8 |
|
|
$ |
126.3 |
|
| |
|
|
|
|
| Average shares outstanding (diluted) |
|
|
56.6 |
|
|
|
59.2 |
|
| |
|
|
|
|
| Earnings per share (diluted) |
|
$ |
1.90 |
|
|
$ |
2.13 |
|
| |
|
|
|
|
| |
|
|
|
|
| Reconciliations of Average Shares
Outstanding |
| (in millions) |
| |
|
|
|
|
| |
|
Three Months |
|
Three Months |
| |
|
Ended |
|
Ended |
| |
|
3/31/16 |
|
3/31/17 |
| |
|
|
|
|
| Average shares outstanding (diluted) |
|
|
56.6 |
|
|
|
59.2 |
|
| Assumed issuance of junior convertible securities shares |
|
|
(2.2 |
) |
|
|
(2.2 |
) |
| Average shares outstanding (adjusted diluted) (E) |
|
|
54.4 |
|
|
|
57.0 |
|
| |
|
|
|
|
| |
|
|
|
|
|
|
| AMG |
| Assets Under Management |
| (in billions) |
| |
|
|
|
|
|
|
|
|
|
| Assets Under Management by Strategy |
|
|
|
|
|
|
|
|
|
| |
Alternatives |
|
Global
Equities |
|
U.S.
Equities |
|
Multi-asset
& Other |
|
Total |
| Assets under management, December 31, 2016 |
$ |
252.4 |
|
|
$ |
233.9 |
|
|
$ |
110.1 |
|
|
$ |
92.3 |
|
|
$ |
688.7 |
|
| Client cash inflows and commitments |
|
12.2 |
|
|
|
7.8 |
|
|
|
3.4 |
|
|
|
4.5 |
|
|
|
27.9 |
|
| Client cash outflows and realizations |
|
(8.0 |
) |
|
|
(8.9 |
) |
|
|
(8.0 |
) |
|
|
(4.3 |
) |
|
|
(29.2 |
) |
| Net client cash flows |
|
4.2 |
|
|
|
(1.1 |
) |
|
|
(4.6 |
) |
|
|
0.2 |
|
|
|
(1.3 |
) |
| New investments |
|
30.6 |
|
|
|
1.5 |
|
|
|
- |
|
|
|
3.3 |
|
|
|
35.4 |
|
| Market changes |
|
3.5 |
|
|
|
17.4 |
|
|
|
5.4 |
|
|
|
3.4 |
|
|
|
29.7 |
|
| Foreign exchange |
|
0.9 |
|
|
|
1.1 |
|
|
|
- |
|
|
|
0.2 |
|
|
|
2.2 |
|
| Other |
|
(1.0 |
) |
|
|
(0.2 |
) |
|
|
(0.0 |
) |
|
|
- |
|
|
|
(1.2 |
) |
| Assets under management, March 31, 2017 |
$ |
290.6 |
|
|
$ |
252.6 |
|
|
$ |
110.9 |
|
|
$ |
99.4 |
|
|
$ |
753.5 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Assets Under Management by Client Type |
|
|
|
|
|
|
|
|
| |
|
|
Institutional |
|
Retail |
|
High Net
Worth |
|
Total |
| Assets under management, December 31, 2016 |
|
|
$ |
401.2 |
|
|
$ |
188.3 |
|
|
$ |
99.2 |
|
|
$ |
688.7 |
|
| Client cash inflows and commitments |
|
|
|
11.5 |
|
|
|
12.3 |
|
|
|
4.1 |
|
|
|
27.9 |
|
| Client cash outflows and realizations |
|
|
|
(15.5 |
) |
|
|
(10.2 |
) |
|
|
(3.5 |
) |
|
|
(29.2 |
) |
| Net client cash flows |
|
|
|
(4.0 |
) |
|
|
2.1 |
|
|
|
0.6 |
|
|
|
(1.3 |
) |
| New investments |
|
|
|
31.0 |
|
|
|
1.2 |
|
|
|
3.2 |
|
|
|
35.4 |
|
| Market changes |
|
|
|
16.2 |
|
|
|
9.3 |
|
|
|
4.2 |
|
|
|
29.7 |
|
| Foreign exchange |
|
|
|
1.4 |
|
|
|
0.7 |
|
|
|
0.1 |
|
|
|
2.2 |
|
| Other |
|
|
|
(1.0 |
) |
|
|
(0.0 |
) |
|
|
(0.2 |
) |
|
|
(1.2 |
) |
| Assets under management, March 31, 2017 |
|
|
$ |
444.8 |
|
|
$ |
201.6 |
|
|
$ |
107.1 |
|
|
$ |
753.5 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
| AMG |
| Reconciliations of Supplemental Financial
Performance Measures |
| (in millions, except per share data) |
| |
|
|
|
|
| |
|
Three Months |
|
Three Months |
| |
|
Ended |
|
Ended |
| |
|
3/31/16 |
|
3/31/17 |
| |
|
|
|
|
| Net income (controlling interest) |
|
$ |
104.0 |
|
|
$ |
122.5 |
| Intangible amortization and impairments |
|
|
34.4 |
|
|
|
38.5 |
| Intangible-related deferred taxes |
|
|
22.1 |
|
|
|
19.8 |
| Other economic items (F) |
|
|
(1.2 |
) |
|
|
2.4 |
| Economic net income (controlling interest) (C) |
|
$ |
159.3 |
|
|
|
183.2 |
| |
|
|
|
|
| Average shares outstanding (adjusted diluted) (E) |
|
|
54.4 |
|
|
|
57.0 |
| Economic earnings per share (E) |
|
$ |
2.92 |
|
|
$ |
3.21 |
| |
|
|
|
|
| Net income (controlling interest) |
|
$ |
104.0 |
|
|
$ |
122.5 |
| Interest expense |
|
|
22.3 |
|
|
|
21.9 |
| Imputed interest and contingent payment arrangements |
|
|
(2.0 |
) |
|
|
0.8 |
| Income taxes |
|
|
55.1 |
|
|
|
57.8 |
| Depreciation and other amortization |
|
|
1.9 |
|
|
|
2.3 |
| Intangible amortization and impairments |
|
|
34.4 |
|
|
|
38.5 |
| Adjusted EBITDA (controlling interest) (D) |
|
$ |
215.7 |
|
|
$ |
243.8 |
| |
|
|
|
|
| |
|
|
|
| AMG |
| Consolidated Statements of
Income |
| (in millions, except per share data) |
| |
|
|
|
| |
Three Months Ended |
| |
March 31, |
| |
2016
|
|
2017
|
| |
|
|
|
| Revenue |
$ |
545.4 |
|
|
$ |
544.3 |
|
| Operating expenses: |
|
|
|
| Compensation and related expenses |
|
226.7 |
|
|
|
242.0 |
|
| Selling, general and administrative |
|
95.9 |
|
|
|
88.7 |
|
| Intangible amortization and impairments |
|
26.6 |
|
|
|
21.9 |
|
| Depreciation and other amortization |
|
5.0 |
|
|
|
5.2 |
|
| Other operating expenses, net |
|
12.4 |
|
|
|
9.9 |
|
| |
|
366.6 |
|
|
|
367.7 |
|
| Operating income |
|
178.8 |
|
|
|
176.6 |
|
| |
|
|
|
| Income from equity method investments |
|
68.0 |
|
|
|
85.9 |
|
| |
|
|
|
| Other non-operating (income) and expenses: |
|
|
|
| Investment and other income |
|
(4.0 |
) |
|
|
(13.5 |
) |
| Interest expense |
|
22.3 |
|
|
|
21.9 |
|
| Imputed interest expense and |
|
|
|
| contingent payment arrangements (G) |
|
(2.0 |
) |
|
|
0.8 |
|
| |
|
16.3 |
|
|
|
9.2 |
|
| |
|
|
|
| Income before income taxes |
|
230.5 |
|
|
|
253.3 |
|
| |
|
|
|
| Income taxes (H) |
|
57.0 |
|
|
|
59.7 |
|
| Net income |
|
173.5 |
|
|
|
193.6 |
|
| |
|
|
|
| Net income (non-controlling interests) |
|
(69.5 |
) |
|
|
(71.1 |
) |
| |
|
|
|
| Net income (controlling interest) |
$ |
104.0 |
|
|
$ |
122.5 |
|
| |
|
|
|
| Average shares outstanding (basic) |
|
54.0 |
|
|
|
56.7 |
|
| Average shares outstanding (diluted) |
|
56.6 |
|
|
|
59.2 |
|
| |
|
|
|
| Earnings per share (basic) |
$ |
1.93 |
|
|
$ |
2.16 |
|
| Earnings per share (diluted) |
$ |
1.90 |
|
|
$ |
2.13 |
|
| Dividends per share |
$ |
- |
|
|
$ |
0.20 |
|
| |
| |
|
|
|
|
| AMG |
| Consolidated Balance Sheets |
| (in millions) |
| |
|
|
|
|
| |
|
December
31, |
|
March 31, |
| |
|
2016 |
|
2017 |
| Assets |
|
|
|
|
| Cash and cash equivalents |
|
$ |
430.8 |
|
|
$ |
293.6 |
|
| Receivables |
|
|
383.3 |
|
|
|
449.0 |
|
| Investments in marketable securities |
|
|
122.4 |
|
|
|
115.5 |
|
| Other investments |
|
|
147.5 |
|
|
|
148.8 |
|
| Fixed assets, net |
|
|
110.1 |
|
|
|
109.1 |
|
| Goodwill |
|
|
2,628.1 |
|
|
|
2,633.7 |
|
| Acquired client relationships, net |
|
|
1,497.4 |
|
|
|
1,482.4 |
|
| Equity investments in Affiliates |
|
|
3,368.3 |
|
|
|
3,298.8 |
|
| Other assets |
|
|
61.2 |
|
|
|
59.2 |
|
| Total assets |
|
$ |
8,749.1 |
|
|
$ |
8,590.1 |
|
| |
|
|
|
|
| Liabilities and Equity |
|
|
|
|
| Payables and accrued liabilities |
|
$ |
729.3 |
|
|
$ |
541.6 |
|
| Senior bank debt |
|
|
868.6 |
|
|
|
783.7 |
|
| Senior notes |
|
|
939.4 |
|
|
|
940.0 |
|
| Convertible securities |
|
|
301.6 |
|
|
|
302.3 |
|
| Deferred income taxes |
|
|
660.8 |
|
|
|
666.7 |
|
| Other liabilities |
|
|
149.4 |
|
|
|
253.3 |
|
| Total liabilities |
|
|
3,649.1 |
|
|
|
3,487.6 |
|
| |
|
|
|
|
| Redeemable non-controlling interests |
|
673.5 |
|
|
|
733.5 |
|
| Equity: |
|
|
|
|
| Common stock |
|
|
0.6 |
|
|
|
0.6 |
|
| Additional paid-in capital |
|
|
1,073.5 |
|
|
|
925.2 |
|
| Accumulated other comprehensive loss |
|
(122.9 |
) |
|
|
(108.7 |
) |
| Retained earnings |
|
|
3,054.4 |
|
|
|
3,165.4 |
|
| |
|
|
4,005.6 |
|
|
|
3,982.5 |
|
| Less: treasury stock, at cost |
|
|
(386.0 |
) |
|
|
(397.6 |
) |
| Total stockholders’ equity |
|
|
3,619.6 |
|
|
|
3,584.9 |
|
| Non-controlling interests |
|
|
806.9 |
|
|
|
784.1 |
|
| Total equity |
|
|
4,426.5 |
|
|
|
4,369.0 |
|
| Total liabilities and equity |
|
$ |
8,749.1 |
|
|
$ |
8,590.1 |
|
| |
|
|
|
|
| |
| AMG |
|
| Notes |
|
| (in millions) |
|
| |
|
| (A) |
Assets under management is presented on a current basis without regard
to the timing of the inclusion of an |
| |
Affiliate’s financial results in our Consolidated Financial
Statements. Average assets under management provides a |
| |
more meaningful relationship to our financial and operating results as
it reflects both the particular billing patterns of |
| |
Affiliate sponsored products and client accounts and corresponds with
the timing of the inclusion of an Affiliate’s |
|
| |
financial results in our Consolidated Financial Statements. |
| |
|
|
|
|
|
|
|
|
|
|
| (B) |
Equity method revenue consists of asset-based and performance fees
earned by our Affiliates accounted for under |
| |
the equity method. Equity method revenue provides management and
investors with additional information on the |
| |
operating performance of our equity method Affiliates. Equity
method revenue is also combined with Revenue to |
| |
determine Aggregate revenue, which is an aggregate operating measure
used by management and investors to evaluate |
| |
operating performance and material trends across our entire business,
regardless of accounting treatment of our |
| |
Affiliates. |
|
| |
|
| (C) |
Under our Economic net income (controlling interest) definition, we
add to Net income (controlling interest) |
|
| |
our share of pre-tax intangible amortization and impairments
(including the portion attributable to equity method |
| |
investments in Affiliates), deferred taxes related to intangible
assets, and other economic items which include |
|
| |
non-cash imputed interest (principally related to the accounting for
convertible securities and contingent payment |
| |
arrangements) and certain Affiliate equity expenses. We consider
Economic net income (controlling interest) an |
| |
important measure of our financial performance, as we believe it best
represents our performance before our share |
| |
of non-cash expenses relating to the acquisition of interests in
Affiliates, and it is therefore employed as our principal |
| |
performance measure. This non-GAAP performance measure is
provided in addition to, but not as a substitute for, |
| |
Net income (controlling interest) or any other GAAP measure of
financial performance. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
We add back intangible amortization and impairments attributable to
acquired client relationships because these |
| |
expenses do not correspond to the changes in the value of these
assets, which do not diminish predictably over time. |
| |
The portion of deferred taxes generally attributable to intangible
assets (including goodwill) is added back because |
| |
we believe it is unlikely these accruals will be used to settle
material tax obligations. We add back non-cash imputed |
| |
interest and reductions or increases in contingent payment
arrangements because it better reflects our contractual |
| |
interest obligations. We add back non-cash expenses relating to
certain transfers of equity between Affiliate |
|
| |
partners when these transfers have no dilutive effect to
shareholders. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (D) |
Adjusted EBITDA (controlling interest) represents our performance
before our share of interest expense, income |
| |
taxes, depreciation, amortization, impairments and adjustments to our
contingent payment obligations. We believe |
| |
that many investors use this information when assessing the financial
performance of companies in the investment |
| |
management industry. This non-GAAP performance measure is
provided in addition to, but not as a substitute for, |
| |
Net income (controlling interest) or any other GAAP measure of
financial performance. |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (E) |
Economic earnings per share represents Economic net income
(controlling interest) divided by the Average shares |
| |
outstanding (adjusted diluted). In this calculation, the
potential share issuance in connection with our convertible |
| |
securities is measured using a “treasury stock” method. Under
this method, only the net number of shares of common |
| |
stock equal to the value of the convertible securities in excess of
par, if any, are deemed to be outstanding. We |
| |
believe the inclusion of net shares under a treasury stock method best
reflects the benefit of the increase in available |
| |
capital resources (which could be used to repurchase shares of common
stock) that occurs when these securities |
| |
are converted and we are relieved of our debt obligation. This
method does not take into account any increase or |
| |
decrease in our cost of capital in an assumed conversion.
Economic earnings per share is provided in addition to, |
| |
but not as a substitute for, Earnings per share (diluted) or any other
GAAP measure of financial performance. |
|
| |
|
|
|
|
|
|
|
|
|
|
| (F) |
For the three months ended March 31, 2016 and 2017, Other economic
items are net of income taxes of $0.7 and |
| |
$0.3, respectively. |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (G) |
For the three months ended March 31, 2016, Imputed interest and
contingent payment arrangements include |
|
| |
gains from adjustments to our contingent payment obligations of
$2.8. There were no contingent payment |
|
| |
adjustments in the three months ended March 31, 2017. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (H) |
Our consolidated income tax provision includes taxes attributable to
controlling interests, and to a lesser extent, |
| |
taxes attributable to non-controlling interests, as follows: |
|
|
|
|
|
|
| |
|
|
| |
Three Months Ended |
|
|
|
|
| |
March 31, |
|
|
|
|
| |
2016 |
|
2017 |
|
|
|
|
| |
Taxes attributable to controlling interests |
|
|
$ |
55.1 |
|
|
$ |
57.8 |
|
|
|
|
|
| |
Taxes attributable to non-controlling interests |
|
|
1.9 |
|
|
|
1.9 |
|
|
|
|
|
| |
Total income taxes |
|
|
$ |
57.0 |
|
|
$ |
59.7 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Income before taxes (controlling interests) |
|
$ |
159.1 |
|
|
$ |
180.3 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Effective tax rate (controlling interest) |
|
|
|
34.6 |
% |
|
|
32.1 |
% |
|
|
|
|
| |
