Press Release
<< Back
WisdomTree Announces Second Quarter 2012 Results
Record revenues of
WisdomTree CEO
_______________ | |
1 Proforma operating income and certain other proforma amounts described below are non-GAAP financial measurements. Please see the section entitled "Non-GAAP Financial Measurements" for a reconciliation of these measurements to GAAP. |
Assets Under Management
ETF assets under management ("AUM") were
Summary Operating and Financial Highlights
Three Months Ended | Change From | ||||
|
|
|
|
|
|
Operating Highlights (in millions): | 2012 | 2012 | 2011 | 2012 | 2011 |
ETF AUM |
|
|
|
(4.4%) | 16.0% |
ETF net inflows |
|
|
|
(85.3%) | (80.1%) |
Average ETF AUM |
|
|
|
6.0% | 25.3% |
Average ETF advisory fee | 0.54% | 0.54% | 0.55% | -- | (.01) |
Market share of industry inflows | 1.6% | 4.3% | 5.8% | (2.7) | (4.2) |
Financial Highlights (in thousands): |
|||||
Total revenues |
|
|
|
6.4% | 22.0% |
Net income |
|
|
|
(88.4%) | (81.3%) |
Proforma operating income (non-GAAP) |
|
|
|
69.2% | 285.7% |
Six Months Ended | |||||
|
|
||||
Operating Highlights (in millions): | 2012 | 2011 | Change | ||
ETF AUM |
|
|
16.0% | ||
ETF net inflows |
|
|
(11.0%) | ||
Average ETF AUM |
|
|
31.4% | ||
Average ETF advisory fee | 0.54% | 0.56% | (.02) | ||
Market share of industry inflows | 3.6% | 5.6% | (2.0) | ||
Financial Highlights (in thousands): |
|||||
Total revenues |
|
|
26.6% | ||
Net income |
|
|
47.4% | ||
Proforma operating income (non-GAAP) |
|
|
269.6% |
Performance
75% of the
Second Quarter Financial Discussion
Revenues
Total revenues increased 22.0% to a record
Margins
Our gross margin, which is our total revenues less fund management and administration expenses and third party sharing arrangements, was 67% in the second quarter of 2012 as compared to 57% and 63% in the second quarter of 2011 and the first quarter of 2012, respectively, primarily due to the change in mix of assets under management.
Our pre-tax margin was 1% in the second quarter of 2012 as compared to 4% in the second quarter of 2011 and 6% in the first quarter of 2012. Excluding non-operating expenses related to our patent litigation and ETF shareholder proxy, our proforma pre-tax operating margin was 15% in the second quarter of 2012 as compared to 5% in the second quarter of 2011 and 10% in the first quarter of 2012.
Expenses
Total expenses increased 26.4% to
During the second quarter, our insurance carrier agreed to fund a significant majority of the costs for defending our patent infringement lawsuit with
Three Months Ended | Change from | ||||
|
|
|
|
|
|
2012 | 2012 | 2011 | 2012 | 2011 | |
Total expenses |
|
|
|
12.2% | 26.4% |
Patent litigation expenses | (821) | (672) | -- | ||
Insurance reimbursement | 1,012 | -- | -- | ||
ETF shareholder proxy expenses | (3,198) | (66) | -- | ||
Initial exchange listing expenses | -- | -- | (124) | ||
Proforma operating expenses |
|
|
|
(0.3%) | 8.5% |
-
Compensation and benefits expense increased 18.8% to
$5.5 million compared to the second quarter of 2011. This increase was primarily due to higher stock based compensation expense due to equity awards granted to our employees as part of their 2011 year end incentive compensation as well as costs associated with higher headcount. Our headcount at the end of the second quarter of 2012 was 66 compared to 61 at the second quarter of 2011.
Compensation and benefits expense decreased 6.5% compared to the first quarter of 2012. Included in the first quarter was higher payroll taxes from employees exercising stock options in connection with our secondary offering and 2011 year-end bonus payments in the first quarter. Partly offsetting this decrease was an increase in expenses associated with higher headcount.
-
Fund management and administration expenses decreased 2.9% to
$5.6 million compared to the second quarter of 2011. Included in the second quarter of 2011 was a non-recurring charge of$0.7 million related to reimbursing the WisdomTree India ETF for excess fees collected by the Company as a result of overestimating the Company's operating expense recapture fees for the India ETF's fiscal year endedMarch 31 , 2011. Partly offsetting this decrease was a$0.2 million increase in portfolio management, fund administration and accounting, index licensing and distribution fees due to higher average assets under management. In addition, we incurred$0.2 million in higher auditing and legal related expenses.
Fund management and administration expenses increased 2.4% compared to the first quarter of 2012 primarily due to security movement fees as a result of the WisdomTree international and emerging market ETFs annual rebalancing partly offset by fee reductions from our service provider.
-
Marketing and advertising expenses increased 14.1% to
$1.5 million compared to the second quarter of 2011 and 16.7% compared to the first quarter of 2012 primarily due to higher levels of advertising related activities.
-
Sales and business development expenses decreased 7.8% to
$0.8 million compared to the second quarter of 2011 and decreased 2.1% compared to the first quarter of 2012 primarily due to lower product development related expenses.
-
Professional and consulting fees increased 45.0% to
$1.4 million compared to the second quarter of 2011 and 26.3% compared to the first quarter of 2012. This increase was primarily due to executive recruiting fees related to our previously announced search for a new chief operating officer position as well as higher accounting and legal fees as a result of becoming a fully reporting, exchange-listed company.
-
Occupancy, communication and equipment expense increased 31.6% to
$0.4 million compared to the second quarter of 2011 and 24.6% compared to the first quarter of 2012. Beginning in the second quarter, we began occupying office space we had sub-leased to a third party.
-
Third-party sharing arrangements expense decreased 18.7% to
$1.2 million compared to the second quarter of 2011. This decrease was primarily due to lower AUM in our currency and international fixed income ETFs subject to the profit sharing arrangements withBank of New York Mellon . These expenses decreased 29.6% compared to the first quarter of 2012. Included in the first quarter was a charge of$0.4 million related to terminating our agreement withAdvisors Asset Management related to marketing our ETFs in the regional broker-dealer channel. This function is now handled by our own sales and marketing force.
-
Other expenses increased 62.6% to
$0.7 million compared to the second quarter of 2011 and 22.0% compared to the first quarter of 2012 primarily due to higher general and administrative expenses.
-
ETF shareholder proxy - We incurred approximately
$3.2 million in expenses related to the proxy solicitation of the WisdomTree ETF shareholders. We expect to incur an additional$0.2 to $0.3 million in the third quarter.
-
Litigation and Insurance Reimbursement - We incurred approximately
$0.8 million in expenses in the second quarter of 2012 related to our patent infringement lawsuit. We have recognized a$1.0 million reimbursement from our insurance carrier for a net credit of$0.2 million in the second quarter.
-
We incurred
$0.1 million in advisory expenses in the second quarter of 2011 related to listing our common stock on NASDAQ.
First Half Year Results
Total revenues increased 26.6% to
Total expenses increased 26.0% to
Balance Sheet
As of
Conference Call
WisdomTree will discuss its results and operational highlights during a conference call on
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
In particular, forward-looking statements in this press release may include statements about:
-
anticipated trends, conditions and investor sentiment in the global markets;
-
anticipated levels of inflows into and outflows out of our exchange traded funds;
-
our ability to deliver favorable rates of return to investors;
-
our ability to develop new products and services;
-
our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;
-
competition in our business;
-
the effect of laws and regulations that apply to our business; and
- our views on litigation to which we are subject.
Our business is subject to many risks and uncertainties, including without limitation:
-
We have only a limited operating history and, as a result, recent historical growth may not provide an accurate representation of the growth we may experience in the future, which may make it difficult to evaluate our future prospects.
-
Challenging market conditions associated with declining prices of securities can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETF shareholders to sell their fund shares and trigger redemptions.
-
Fluctuations in the amount and mix of our AUM may negatively impact revenue and operating margin.
-
Most of our assets under management are held in ETFs that invest in foreign securities and we therefore have substantial exposure to foreign market conditions and are subject to currency exchange rate risks.
-
We derive a substantial portion of our revenue from products invested in emerging markets and are exposed to the market-specific political and economic risks as well as general investor sentiment regarding future growth of those markets.
-
We derive a substantial portion of our revenue from a limited number of products and, as a result, our operating results are particularly exposed to the performance of those funds, investor sentiment toward the strategies pursued by those funds and our ability to maintain the assets under management of those funds.
-
The WisdomTree ETFs have a limited track record, and poor investment performance could cause our revenue to decline.
-
We depend on other third parties to provide many critical services to operate our business and the WisdomTree ETFs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETF shareholders.
- We are currently, and may from time to time in the future be, involved in legal proceedings that could require significant management time and attention, possibly resulting in significant expense or in an unfavorable outcome, which could have a material adverse effect on our business, financial conditions, results of operations and cash flows.
Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, please see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended
The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.
About WisdomTree
WisdomTree® is the marketing name for
The
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in thousands, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Three Months Ended | % Change From | Six Months Ended | ||||||
|
|
|
|
|
|
|
% | |
2012 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | Change | |
Revenues | ||||||||
ETF advisory fees | $ 20,230 | $ 18,975 | $ 16,514 | 6.6% | 22.5% | $ 39,205 | $ 30,787 | 27.3% |
Other income | 163 | 195 | 202 | -16.4% | -19.3% | 358 | 462 | -22.5% |
Total revenues | 20,393 | 19,170 | 16,716 | 6.4% | 22.0% | 39,563 | 31,249 | 26.6% |
Expenses | ||||||||
Compensation and benefits | 5,477 | 5,857 | 4,610 | -6.5% | 18.8% | 11,334 | 9,827 | 15.3% |
Fund management and administration | 5,567 | 5,439 | 5,736 | 2.4% | -2.9% | 11,006 | 9,898 | 11.2% |
Marketing and advertising | 1,548 | 1,326 | 1,357 | 16.7% | 14.1% | 2,874 | 2,329 | 23.4% |
Sales and business development | 842 | 860 | 913 | -2.1% | -7.8% | 1,702 | 1,658 | 2.7% |
Professional and consulting fees | 1,401 | 1,109 | 966 | 26.3% | 45.0% | 2,510 | 1,943 | 29.2% |
Occupancy, communication and equipment | 375 | 301 | 285 | 24.6% | 31.6% | 676 | 558 | 21.1% |
Depreciation and amortization | 75 | 71 | 67 | 5.6% | 11.9% | 146 | 132 | 10.6% |
Third party sharing arrangements | 1,229 | 1,745 | 1,512 | -29.6% | -18.7% | 2,974 | 2,640 | 12.7% |
Other | 743 | 609 | 457 | 22.0% | 62.6% | 1,352 | 914 | 47.9% |
ETF shareholder proxy | 3,198 | 66 | -- | 4745.5% | n/a | 3,264 | -- | n/a |
Litigation | (191) | 672 | -- | -128.4% | n/a | 481 | -- | n/a |
Exchange listing | -- | -- | 124 | n/a | n/a | -- | 506 | n/a |
Total expenses | 20,264 | 18,055 | 16,027 | 12.2% | 26.4% | 38,319 | 30,405 | 26.0% |
Income before provision for income taxes | 129 | 1,115 | 689 | -88.4% | -81.3% | 1,244 | 844 | 47.4% |
Provision for income taxes | -- | -- | -- | -- | -- | |||
Net income | $ 129 | $ 1,115 | $ 689 | -88.4% | -81.3% | $ 1,244 | $ 844 | 47.4% |
Net income per share - basic | $ 0.00 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Net income per share - diluted | $ 0.00 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Weighted average common shares - basic | 121,920 | 119,182 | 113,950 | 120,551 | 113,708 | |||
Weighted average common shares - diluted | 138,477 | 137,400 | 134,887 | 137,748 | 134,694 |
|
|||||
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(in thousands, except per share amounts) | |||||
(Unaudited) | |||||
Three Months Ended | Six Months Ended | ||||
|
|
|
|
|
|
2012 | 2012 | 2011 | 2012 | 2011 | |
Revenues | |||||
ETF advisory fees | $ 20,230 | $ 18,975 | $ 16,514 | $ 39,205 | $ 30,787 |
Other income | 163 | 195 | 202 | 358 | 462 |
Total revenues | 20,393 | 19,170 | 16,716 | 39,563 | 31,249 |
Operating expenses | |||||
Compensation and benefits | 5,477 | 5,857 | 4,610 | 11,334 | 9,827 |
Fund management and administration | 5,567 | 5,439 | 5,736 | 11,006 | 9,898 |
Marketing and advertising | 1,548 | 1,326 | 1,357 | 2,874 | 2,329 |
Sales and business development | 842 | 860 | 913 | 1,702 | 1,658 |
Professional and consulting fees | 1,401 | 1,109 | 966 | 2,510 | 1,943 |
Occupancy, communication and equipment | 375 | 301 | 285 | 676 | 558 |
Depreciation and amortization | 75 | 71 | 67 | 146 | 132 |
Third party sharing arrangements | 1,229 | 1,745 | 1,512 | 2,974 | 2,640 |
Other | 743 | 609 | 457 | 1,352 | 914 |
Total proforma operating expenses | 17,257 | 17,317 | 15,903 | 34,574 | 29,899 |
Proforma operating income | 3,136 | 1,853 | 813 | 4,989 | 1,350 |
ETF shareholder proxy | 3,198 | 66 | -- | 3,264 | -- |
Litigation | (191) | 672 | -- | 481 | -- |
Exchange listing | -- | -- | 124 | -- | 506 |
Income before provision for income taxes | 129 | 1,115 | 689 | 1,244 | 844 |
Provision for income taxes | -- | -- | -- | -- | -- |
Net income | $ 129 | $ 1,115 | $ 689 | $ 1,244 | $ 844 |
|
||
CONSOLIDATED BALANCE SHEET | ||
(in thousands, except per share amount) | ||
|
|
|
2012 | 2011 | |
(Unaudited) | ||
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | $ 39,300 | $ 25,630 |
Accounts receivable | 7,605 | 5,625 |
Other current assets | 2,104 | 1,601 |
Total current assets | 49,009 | 32,856 |
Fixed assets, net | 576 | 597 |
Investments | 9,787 | 9,056 |
Other noncurrent assets | 43 | 58 |
Total assets | $ 59,415 | $ 42,567 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
LIABILITIES | ||
Current liabilities: | ||
Fund management and administration payable | $ 12,534 | $ 10,035 |
Compensation and benefits payable | 2,806 | 4,168 |
Accounts payable and other liabilities | 6,795 | 2,360 |
Total current liabilities | 22,135 | 16,563 |
Other noncurrent liabilities | 82 | 151 |
Total liabilities | 22,217 | 16,714 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value |
||
issued: 124,375 and 116,703 | 1,243 | 1,167 |
outstanding: 122,731 and 115,392 | ||
Additional paid-in capital | 173,772 | 163,747 |
Accumulated deficit | (137,817) | (139,061) |
Total stockholders' equity | 37,198 | 25,853 |
Total liabilities and stockholders' equity | $ 59,415 | $ 42,567 |
|
||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
(in thousands) | ||
(Unaudited) | ||
Six Months Ended | ||
June 30, | June 30, | |
2012 | 2011 | |
Cash flows from operating activities | ||
Net income | $ 1,244 | $ 844 |
Non-cash items included in net income: | ||
Depreciation and amortization | 146 | 132 |
Stock-based compensation | 4,033 | 3,624 |
Deferred rent | (71) | (77) |
Accretion to interest income and other | 80 | 46 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,980) | (907) |
Other assets | (497) | (864) |
Fund management and administration payable | 2,499 | 1,751 |
Compensation and benefits payable | (1,362) | (1,057) |
Accounts payable and other liabilities | 4,438 | 165 |
Net cash provided by operating activities | 8,530 | 3,657 |
Cash flows from investing activities | ||
Purchase of fixed assets | (125) | (55) |
Purchase of investments | (5,241) | (2,893) |
Proceeds from the redemption of investments | 4,437 | 3,267 |
Net cash (used in)/provided by investing activities | (929) | 319 |
Cash flows from financing activities | ||
Net proceeds from sale of common stock | 4,329 | -- |
Shares repurchased | (1,033) | (1,823) |
Proceeds from exercise of stock options | 2,773 | -- |
Net cash provided by/(used in) financing activities | 6,069 | (1,823) |
Net increase in cash and cash equivalents | 13,670 | 2,153 |
Cash and cash equivalents - beginning of period | 25,630 | 14,233 |
Cash and cash equivalents - end of period | $ 39,300 | $ 16,386 |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes | $ 16 | $ 11 |
Non-cash investing and financing activities: | ||
Cashless exercise of stock options | $ -- | $ 391 |
|
|||||
Key Operating Statistics (Unaudited) | |||||
Three Months Ended | Six Months Ended | ||||
|
|
|
|
|
|
2012 | 2012 | 2011 | 2012 | 2011 | |
Total ETFs (in millions) | |||||
Beginning of period assets | 15,691 | 12,182 | 11,284 | 12,182 | 9,891 |
Inflows/(outflows) | 338 | 2,299 | 1,699 | 2,637 | 2,963 |
Market appreciation/(depreciation) | (1,025) | 1,210 | (49) | 185 | 80 |
End of period assets | 15,004 | 15,691 | 12,934 | 15,004 | 12,934 |
Average assets during the period | 15,116 | 14,265 | 12,062 | 14,690 | 11,178 |
ETF Industry and Market Share (in billions) | |||||
ETF industry net inflows | 20.7 | 53.2 | 29.2 | 73.9 | 52.8 |
WisdomTree market share of industry inflows | 1.6% | 4.3% | 5.8% | 3.6% | 5.6% |
International Developed Equity ETFs (in millions) | |||||
Beginning of period assets | 2,964 | 2,407 | 2,865 | 2,407 | 2,311 |
Inflows/(outflows) | 137 | 302 | 33 | 439 | 508 |
Market appreciation/(depreciation) | (255) | 255 | (31) | -- | 48 |
End of period assets | 2,846 | 2,964 | 2,867 | 2,846 | 2,867 |
Average assets during the period | 2,853 | 2,680 | 2,854 | 2,767 | 2,659 |
Emerging Markets Equity ETFs (in millions) | |||||
Beginning of period assets | 5,594 | 3,613 | 3,759 | 3,613 | 3,780 |
Inflows/(outflows) | 462 | 1,398 | 344 | 1,860 | 403 |
Market appreciation/(depreciation) | (626) | 583 | (115) | (43) | (195) |
End of period assets | 5,430 | 5,594 | 3,988 | 5,430 | 3,988 |
Average assets during the period | 5,398 | 4,780 | 3,863 | 5,089 | 3,740 |
US Equity ETFs (in millions) | |||||
Beginning of period assets | 4,275 | 3,429 | 2,218 | 3,429 | 2,057 |
Inflows/(outflows) | (113) | 565 | 374 | 452 | 427 |
Market appreciation/(depreciation) | (68) | 281 | 20 | 213 | 128 |
End of period assets | 4,094 | 4,275 | 2,612 | 4,094 | 2,612 |
Average assets during the period | 4,101 | 3,990 | 2,364 | 4,045 | 2,264 |
Currency ETFs (in millions) | |||||
Beginning of period assets | 881 | 950 | 1,467 | 950 | 1,179 |
Inflows/(outflows) | (82) | (104) | 383 | (186) | 654 |
Market appreciation/(depreciation) | (30) | 35 | 46 | 5 | 63 |
Reclass to Int'l Fixed Income | |||||
End of period assets | 769 | 881 | 1,896 | 769 | 1,896 |
Average assets during the period | 828 | 935 | 1,677 | 881 | 1,506 |
International Fixed Income ETFs (in millions) | |||||
Beginning of period assets | 1,735 | 1,506 | 902 | 1,506 | 564 |
Inflows/(outflows) | (8) | 161 | 442 | 153 | 777 |
Market appreciation/(depreciation) | (29) | 68 | 35 | 39 | 38 |
Reclass from Currency | |||||
End of period assets | 1,698 | 1,735 | 1,379 | 1,698 | 1,379 |
Average assets during the period | 1,716 | 1,627 | 1,195 | 1,671 | 937 |
Alternative Strategy ETFs (in millions) | |||||
Beginning of period assets | 242 | 277 | 73 | 277 | -- |
Inflows/(outflows) | (58) | (23) | 123 | (81) | 194 |
Market appreciation/(depreciation) | (17) | (12) | (4) | (29) | (2) |
End of period assets | 167 | 242 | 192 | 167 | 192 |
Average assets during the period | 220 | 253 | 109 | 237 | 72 |
Average ETF assets during the period | |||||
Emerging markets equity ETFs | 36% | 33% | 32% | 35% | 34% |
US equity ETFs | 27% | 28% | 20% | 27% | 20% |
International developed equity ETFs | 19% | 19% | 23% | 19% | 24% |
International fixed income ETFs | 11% | 12% | 10% | 11% | 8% |
Currency ETFs | 6% | 7% | 14% | 6% | 13% |
Alternative strategy ETFs | 1% | 1% | 1% | 2% | 1% |
Total | 100% | 100% | 100% | 100% | 100% |
Average ETF advisory fee during the period | |||||
Alternative strategy ETFs | 0.95% | 0.95% | 0.95% | 0.95% | 0.95% |
Emerging markets equity ETFs | 0.66% | 0.67% | 0.70% | 0.64% | 0.70% |
International fixed income ETFs | 0.55% | 0.55% | 0.55% | 0.55% | 0.55% |
International developed equity ETFs | 0.54% | 0.55% | 0.54% | 0.54% | 0.54% |
Currency ETFs | 0.50% | 0.49% | 0.49% | 0.53% | 0.51% |
US equity ETFs | 0.35% | 0.35% | 0.34% | 0.35% | 0.34% |
Blended total | 0.54% | 0.54% | 0.55% | 0.54% | 0.56% |
Number of ETFs - end of the period | |||||
International developed equity ETFs | 18 | 18 | 18 | 18 | 18 |
US equity ETFs | 12 | 12 | 12 | 12 | 12 |
Currency ETFs | 7 | 7 | 9 | 7 | 9 |
International fixed income ETFs | 5 | 5 | 2 | 5 | 2 |
Emerging markets equity ETFs | 4 | 4 | 4 | 4 | 4 |
Alternative strategy ETFs | 2 | 2 | 1 | 2 | 1 |
Total | 48 | 48 | 46 | 48 | 46 |
Headcount | 66 | 64 | 61 | 66 | 61 |
Note: Previously issued statistics may be restated due to trade adjustments | |||||
Source: |
Non-GAAP Financial Measurements |
In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. The non-GAAP financial measurements included in this release include proforma net income, proforma expenses and proforma pre-tax operating margin. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in
the context with our GAAP results. We have disclosed our results excluding certain non-operating items. We consider the costs associated with (1) our patent litigation with |
|
|||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
GAAP to NON-GAAP RECONCILIATION | |||||
(in thousands) | |||||
(Unaudited) | |||||
For the Three Months Ended | For the Six Months Ended | ||||
|
|
|
|
|
|
2012 | 2012 | 2011 | 2012 | 2011 | |
GAAP total expenses | $ 20,264 | $ 18,055 | $ 16,027 | $ 38,319 | $ 30,405 |
Less ETF shareholder proxy | (3,198) | (66) | -- | (3,264) | -- |
Less patent litigation | 191 | (672) | -- | (481) | -- |
Less initial exchange listing | -- | -- | (124) | -- | (506) |
Proforma operating expenses | $ 17,257 | $ 17,317 | $ 15,903 | $ 34,574 | $ 29,899 |
GAAP net income | $ 129 | $ 1,115 | $ 689 | $ 1,244 | $ 844 |
Add ETF shareholder proxy | 3,198 | 66 | -- | 3,264 | -- |
Add patent litigation | (191) | 672 | -- | 481 | -- |
Add initial exchange listing | -- | -- | 124 | -- | 506 |
Proforma net income | $ 3,136 | $ 1,853 | $ 813 | $ 4,989 | $ 1,350 |
GAAP net income | $ 129 | $ 1,115 | $ 689 | $ 1,244 | $ 844 |
Divide GAAP total revenue | 20,393 | 19,170 | 16,716 | 39,563 | 31,249 |
GAAP pre-tax margin | 0.6% | 5.8% | 4.1% | 3.1% | 2.7% |
Proforma pre-tax net income | $ 3,136 | $ 1,853 | $ 813 | $ 4,989 | $ 1,350 |
Divide GAAP total revenue | 20,393 | 19,170 | 16,716 | 39,563 | 31,249 |
Proforma pre-tax operating margin | 15.4% | 9.7% | 4.9% | 12.6% | 4.3% |
CONTACT:Source:WisdomTree Investments, Inc. Stuart Bell /Jessica Zaloom +1.917.267.3702 / +1.917.267.3735 sbell@wisdomtree.com / jzaloom@wisdomtree.com
News Provided by Acquire Media