Manning & Napier, Inc.

CIK:0001524223|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues
Total revenue	$ 33,797	$ 36,077	$ 69,346	$ 70,228
Expenses
Compensation and related costs	14,542	18,347	35,249	37,221
Distribution, servicing and custody expenses	2,177	2,497	4,457	4,855
Other operating costs	9,973	7,463	21,450	14,173
Total operating expenses	26,692	28,307	61,156	56,249
Operating income	7,105	7,770	8,190	13,979
Non-operating income (loss)
Interest expense	(2)	(1)	(3)	(3)
Interest and dividend income	(41)	108	(1)	231
Change in liability under tax receivable agreement	11	(228)	11	(228)
Net gains (losses) on investments	(2,569)	377	(3,215)	714
Total non-operating income (loss)	(2,601)	256	(3,208)	714
Income before provision for income taxes	4,504	8,026	4,982	14,693
Provision for income taxes	2,064	1,285	1,318	1,988
Net income attributable to controlling and noncontrolling interests	2,440	6,741	3,664	12,705
Less: net income attributable to noncontrolling interests	96	816	134	1,540
Net income attributable to Manning & Napier, Inc.	$ 2,344	$ 5,925	$ 3,530	$ 11,165
Net income per share available to Class A common stock
Basic (in dollars per share)	$ 0.12	$ 0.35	$ 0.19	$ 0.65
Diluted (in dollars per share)	$ 0.11	$ 0.29	$ 0.16	$ 0.55
Weighted average shares of Class A common stock outstanding
Basic (in shares)	19,124,332	16,956,265	19,056,827	16,991,188
Diluted (in shares)	21,833,563	20,314,285	21,730,594	20,290,914
Investment management fees
Revenues
Total revenue	$ 29,292	$ 31,252	$ 60,119	$ 60,928
Distribution and shareholder servicing
Revenues
Total revenue	1,945	2,236	4,027	4,389
Custodial services
Revenues
Total revenue	1,588	1,721	3,265	3,366
Other revenue
Revenues
Total revenue	$ 972	$ 868	$ 1,935	$ 1,545

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income attributable to controlling and noncontrolling interests	$ 3,664	$ 12,705
Adjustment to reconcile net income to net cash provided by operating activities:
Equity-based compensation	1,025	2,103
Depreciation and amortization	3,252	909
Change in amounts payable under tax receivable agreement	(11)	228
Impairment of long-lived assets	430	0
Net losses (gains) on investment securities	3,215	(714)
Deferred income taxes	1,074	1,240
(Increase) decrease in operating assets and increase (decrease) in operating liabilities:
Accounts receivable	4,353	(619)
Prepaid expenses and other assets	(441)	1,215
Other long-term assets	1,122	1,261
Accounts payable	276	130
Accrued expenses and other liabilities	(9,529)	(9,226)
Deferred revenue	(1,168)	1,459
Other long-term liabilities	(1,633)	(1,434)
Net cash provided by operating activities	5,629	9,257
Cash flows from investing activities:
Purchase of property and equipment	(396)	(53)
Sale of investments	10,958	5,369
Purchase of investments	(29,540)	(6,157)
Proceeds from maturity of investments	5,155	1,250
Net cash provided by (used in) investing activities	(13,823)	409
Cash flows from financing activities:
Distributions to noncontrolling interests	(90)	(572)
Dividends paid on Class A common stock	(1,912)	0
Payment of shares withheld to satisfy withholding requirements	(1,678)	(5,602)
Purchases of treasury stock	0	(5,337)
Payment of capital lease obligations	(33)	(18)
Payment of issuing common stock costs	0	(56)
Net cash used in financing activities	(3,713)	(11,585)
Net decrease in cash and cash equivalents	(11,907)	(1,919)
Cash and cash equivalents:
Beginning of period	73,489	57,635
End of period	$ 61,582	$ 55,716

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 61,582	$ 73,489
Accounts receivable	9,499	13,851
Investment securities	34,814	24,608
Prepaid expenses and other assets	14,812	17,147
Total current assets	120,707	129,095
Property and equipment, net	2,107	2,109
Operating lease right-of-use assets	12,431	14,457
Net deferred tax assets, non-current	16,785	17,859
Goodwill	4,829	4,829
Other long-term assets	2,990	3,074
Total assets	159,849	171,423
Liabilities
Accounts payable	2,067	1,791
Accrued expenses and other liabilities	26,932	36,388
Deferred revenue	11,795	12,963
Total current liabilities	40,794	51,142
Operating lease liabilities, non-current	11,998	14,226
Amounts payable under tax receivable agreement, non-current	13,503	13,499
Other long-term liabilities	151	155
Total liabilities	66,446	79,022
Commitments and contingencies (Note 9)
Common stock, shares outstanding (shares)	19,124,332	18,754,080
Common stock, shares authorized (shares)	300,000,000	300,000,000
Shareholders’ equity
Class A common stock, $0.01 par value; 300,000,000 shares authorized; 19,873,337 and 19,124,332 shares issued and outstanding at June 30, 2022, 19,503,085 and 18,754,080 shares issued and outstanding at December 31, 2021	$ 199	$ 195
Treasury stock, at cost, 749,005 shares at June 30, 2022 and December 31, 2021	(5,666)	(5,666)
Additional paid-in capital	104,062	104,740
Retained deficit	(3,951)	(5,569)
Accumulated other comprehensive loss	(344)	(337)
Total shareholders’ equity	94,300	93,363
Noncontrolling interests	(897)	(962)
Total shareholders’ equity and noncontrolling interests	93,403	92,401
Total liabilities, shareholders’ equity and noncontrolling interests	$ 159,849	$ 171,423
Common stock, shares issued (shares)	19,873,337	19,503,085
Treasury stock, shares	749,005	749,005
Common stock, par value (dollars per share)	$ 0.01	$ 0.01