Duff & Phelps Reports 2012 Third Quarter Results, and Declares Quarterly Dividend

  Duff & Phelps Reports 2012 Third Quarter Results, and Declares Quarterly
  Dividend

HIGHLIGHTS:

  *Quarterly revenue of $111.7 million including reimbursable expenses
    (representing a $17.3 million or 18.3% increase over the corresponding
    prior year quarter) and $108.4 million excluding reimbursable expenses
    (representing a $16.4 million or 17.8% increase over the corresponding
    prior year quarter)
  *Adjusted EBITDA^(1) of $17.6 million, representing a 16.2% margin and a
    $2.2 million or 14.0% increase over the corresponding prior year quarter
  *Adjusted Pro Forma Net Income^(1) of $0.20 per share, compared to $0.20
    per share for the corresponding prior year quarter
  *Acquires iEnvision Technology, an advisory firm that assists law firms and
    corporate legal departments with implementation of document and data
    management systems, comprising 20 client service professionals (effective
    October 4, 2012)
  *Acquires CETERIS, an economic consulting firm that provides transfer
    pricing capabilities, strategic economic analysis and tax valuation
    services, comprising more than 36 client service professionals in 10
    offices across the U.S. (effective October 18, 2012)
  *Declares a quarterly dividend of $0.09 per share of Class A common stock

Business Wire

NEW YORK -- October 25, 2012

Duff & Phelps Corporation (NYSE: DUF), a leading independent financial
advisory and investment banking firm, today announced its third quarter 2012
financial results and declared a quarterly dividend.

Results

For the quarter ended September30, 2012, revenue excluding reimbursable
expenses increased $16.4 million or 17.8% to $108.4 million, compared to $92.0
million for the corresponding prior year quarter. Adjusted EBITDA^(1) for the
quarter was $17.6 million, representing 16.2% of revenue excluding
reimbursable expenses, compared to $15.4 million for the corresponding prior
year quarter, representing 16.7% of revenue excluding reimbursable expenses.
Net income attributable to Duff & Phelps Corporation was $5.7 million, or
$0.15 per share of Class A common stock on a fully diluted basis, compared to
$4.0 million, or $0.14 per share for the corresponding prior year quarter.
Adjusted Pro Forma Net Income^(1) was $7.7 million, or $0.20 per share on a
fully exchanged, fully diluted basis, compared to $7.4 million, or $0.20 per
share, for the corresponding prior year quarter.

For the nine months ended September30, 2012, revenue excluding reimbursable
expenses increased $64.3 million or 24.3% to $329.2 million, compared to
$265.0 million for the corresponding prior year period. Adjusted EBITDA^(1)
for the period was $56.7 million, representing 17.2% of revenue excluding
reimbursable expenses, compared to $40.5 million for the corresponding prior
year period, representing 15.3% of revenue excluding reimbursable expenses.
Net income attributable to Duff & Phelps Corporation was $16.2 million, or
$0.46 per share of Class A common stock on a fully diluted basis, compared to
$11.6 million, or $0.40 per share for the corresponding prior year period.
Adjusted Pro Forma Net Income^(1) was $25.9 million, or $0.66 per share on a
fully exchanged, fully diluted basis, compared to $19.3 million, or $0.50 per
share, for the corresponding prior year period.

"I am pleased with the performance and momentum we are seeing from our
services," commented Noah Gottdiener, chief executive officer. "We continued
to increase our revenue even in the face of a challenging market where there
is minimal large-scale M&A activity and low defaults rates. As a result of the
pipeline in several key areas of the business, I expect our momentum to
continue into the fourth quarter," continued Mr. Gottdiener. "Furthermore, we
remain poised to deliver additional growth when the M&A and restructuring
markets rebound in the future."

Declaration of Quarterly Dividend

The Company also announced today that its board of directors has declared a
quarterly dividend of $0.09 per share on its outstanding Class A common stock.
The dividend is payable on November16, 2012 to shareholders of record on
November6, 2012. Concurrent with the payment of the dividend, the Company
will also be distributing $0.09 per unit to holders of its New Class A Units.

_______________
^(1) Adjusted EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro Forma Net
Income per share are non-GAAP financial measures. See definitions and
disclosures herein.

Earnings Call Webcast

As previously announced, Duff & Phelps will host a conference call today,
October25, 2012, at 5:00 p.m. EDT to discuss the Company's financial results.
For participants who wish to take part in the question-and-answer portion of
the call, the telephone dial-in number in the United States is
+1-866-277-1182. The telephone dial-in number for participants outside the
United States is +1-617-597-5359. A live webcast and replay will be available
on our website at http://ir.duffandphelps.com.

About Duff & Phelps

As a leading global financial advisory and investment banking firm, Duff &
Phelps balances analytical skills, deep market insight and independence to
help clients make sound decisions. The firm provides expertise in the areas of
valuation, transactions, financial restructuring, alternative assets, disputes
and taxation, with more than 1,000 employees serving clients from offices in
North America, Europe and Asia. Investment banking services in the United
States are provided by Duff & Phelps Securities, LLC; Pagemill Partners; and
GCP Securities, LLC. Member FINRA/SIPC. M&A advisory services in the United
Kingdom and Germany are provided by Duff & Phelps Securities Ltd. Duff &
Phelps Securities Ltd. is authorized and regulated by the Financial Services
Authority. For more information, visit www.duffandphelps.com. (NYSE: DUF)

Non-GAAP Financial Measures

Adjusted EBITDA, Adjusted Pro Forma Net Income, and Adjusted Pro Forma Net
Income per share are non-GAAP financial measures. We believe these measures
provide a relevant and useful alternative measure of our ongoing profitability
and performance. We believe the Adjusted EBITDA, Adjusted Pro Forma Net
Income, and Adjusted Pro Forma Net Income per share, in addition to GAAP
financial measures, provide a relevant and useful benchmark for investors, in
order to assess our financial performance, ongoing operating results and
comparability to other companies in our industry. These measures are utilized
by our senior management to evaluate our overall performance.

We define Adjusted EBITDA as operating income before depreciation and
amortization, equity-based compensation originating prior to our IPO and
associated with grants of ownership units of D&P Acquisitions and stock
options granted in conjunction with our IPO and other items which are
generally not part of our ongoing operations, including but not limited to
restructuring charges and acquisition related expenses. We define Adjusted Pro
Forma Net Income as net income before equity compensation associated with
grants of ownership units of D&P Acquisitions and stock options granted in
conjunction with our IPO, and certain items which are generally not part of
our ongoing operations, including but not limited to restructuring charges and
acquisition related expenses, less pro forma corporate income tax applied at
an assumed effective corporate tax rate. Adjusted Pro Forma Net Income per
share consists of Adjusted Pro Forma Net Income divided by the fully dilutive
weighted average number of the Company's Class A and Class B shares for the
applicable period. These measures are reconciled in the tables below.

Adjusted EBITDA, Adjusted Pro Forma Net Income and Adjusted Pro Forma Net
Income per share are non-GAAP financial measures which are not prepared in
accordance with, and should not be considered a substitute for or superior to
measurements required by GAAP. The presentation of this additional information
is not meant to be considered in isolation or as a substitute for the most
directly comparable GAAP measures. In addition, these non-GAAP measures are
not defined in the same manner by all companies and may not be comparable to
other similarly titled measures of other companies.

Reconciliation of Adjusted EBITDA
                                                   
                      Three Months Ended              Nine Months Ended
                      September 30,   September 30,   September      September
                      2012           2011            30,           30,
                                                      2012           2011
Net income
attributable to       $  5,701        $  4,032        $  16,199      $  11,569
Duff & Phelps
Corporation
Net income
attributable to       515             2,404           3,447          7,005
noncontrolling
interest
Provision for         3,953           2,655           12,392         8,275
income taxes
Other
expense/(income),     171            26             1,361         112
net
Operating income      10,340          9,117           33,399         26,961
Depreciation and      4,765           2,878           13,010         7,934
amortization
Equity-based
compensation
associated with       —               (232       )    22             241
Legacy Units and
IPO Options^(1)
Acquisition           2,020           221             6,507          600
retention expenses
Restructuring         406             3,091           1,824          3,995
charges
Transaction and       35             335            1,914         801
integration costs
Adjusted EBITDA       $  17,566      $  15,410      $  56,676     $  40,532

Reconciliation of Adjusted Pro Forma Net Income
                                                             
                   Three Months Ended            Nine Months Ended
                   September      September      September 30,   September 30,
                   30,           30,            2012            2011
                   2012           2011
Net income
attributable to    $  5,701       $  4,032       $  16,199       $  11,569
Duff & Phelps
Corporation
Net income
attributable to    515            2,404          3,447           7,005
noncontrolling
interest
Equity-based
compensation
associated with    —              (232      )    22              241
Legacy Units and
IPO Options^(1)
Acquisition
retention          2,020          221            6,507           600
expenses
Restructuring      406            3,091          1,824           3,995
charges
Transaction and
integration        35             335            1,914           801
costs
Loss from the
write off of an    —              —              376             —
investment^(2)
Adjustment to
provision for      (1,023    )    (2,402    )    (4,424     )    (4,914     )
income taxes^(3)
Adjusted Pro
Forma Net          $  7,654      $  7,449      $  25,865      $  19,297  
Income, as
defined
                                                                 
Fully diluted
weighted average   36,208         27,060         33,718          27,834
shares of Class
A common stock
Weighted average
New Class A        2,897         10,813        5,294          10,962     
Units
outstanding
Pro forma fully
exchanged, fully   39,105        37,873        39,012         38,796     
diluted shares
outstanding
                                                                 
Adjusted Pro
Forma Net Income
per fully          $  0.20       $  0.20       $  0.66        $  0.50    
exchanged, fully
diluted share
outstanding

_______________
      Represents elimination of equity-compensation expense from Legacy Units
      associated with ownership units of D&P Acquisitions ("Legacy Units") and
(1)  stock options granted in conjunction with our IPO ("IPO Options"). See
      further detail in the notes to the condensed consolidated financial
      statements.
      Reflects a charge from the write off of a minority investment. The
(2)   charge is reflected in "Other expense" on the Company's Condensed
      Consolidated Statement of Operations.
      Represents an adjustment to reflect an assumed annual effective
      corporate tax rate of approximately 39.4% and 40.6% as applied to the
      three and nine months ended September 30, 2012 and 2011, respectively,
      which includes a provision for U.S. federal income taxes and assumes the
      highest statutory rates apportioned to each state, local and/or foreign
      jurisdiction. For the three months ended September 30, 2011, the pro
(3)   forma tax rate of 40.4% reflects a true-up adjustment relating to the
      six months ended June 30, 2011. Assumes (i) full exchange of existing
      unitholders' partnership units and Class B common stock of the Company
      into Class A common stock of the Company, (ii) the Company has adopted a
      conventional corporate tax structure and is taxed as a C Corporation in
      the U.S. at prevailing corporate rates and (iii) all deferred tax assets
      related to foreign operations are fully realizable.

Disclosure Regarding Forward-Looking Statements

Statements in this press release contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 (the “Exchange Act”), which reflect the
Company's current views with respect to, among other things, future events and
financial performance. The Company generally identifies forward looking
statements by terminology such as “outlook,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,”
“approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or
the negative version of those words or other comparable words. Any
forward-looking statements contained in this discussion are based upon our
historical performance and on our current plans, estimates and expectations.
The inclusion of this forward-looking information should not be regarded as a
representation by us, or any other person that the future plans, estimates or
expectations contemplated by us will be achieved. Such forward-looking
statements are subject to various risks and uncertainties and assumptions
relating to our operations, financial results, financial condition, business
prospects, growth strategy and liquidity. If one or more of these or other
risks or uncertainties materialize, or if our underlying assumptions prove to
be incorrect, our actual results may vary materially from those indicated in
these statements. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements and the
risk factors section that are included in our Annual Report on Form 10-K for
the year ended December31, 2011 and any subsequent filings of our Quarterly
Reports on Form 10-Q. The forward-looking statements included in this press
release are made only as of the date this press release was issued. The
Company does not undertake any obligation to publicly update or review any
forward-looking statement, whether as a result of new information, future
developments or otherwise.

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)
                                                  
                     Three Months Ended              Nine Months Ended
                     September 30,   September 30,   September     September
                     2012           2011            30,          30,
                                                     2012          2011
Revenue              $  108,413      $  92,028       $ 329,247     $ 264,960
Reimbursable         3,299          2,395          10,319       7,361     
expenses
Total revenue        111,712         94,423          339,566       272,321
                                                                   
Direct client
service costs
Compensation and
benefits (includes
$4,710 and $4,316
of equity-based
compensation for
the three months
ended September
30, 2012 and 2011,   58,630          50,705          179,019       146,672
respectively, and
$14,839 and
$13,381 for the
nine months ended
September 30, 2012
and 2011,
respectively)
Other direct
client service       3,330           2,050           8,643         4,959
costs
Acquisition
retention expenses
(includes $730 and
$221 of
equity-based
compensation for
the three months
ended September      2,020           221             6,507         600
30, 2012 and 2011,
respectively, and
$2,174 and $600
for the nine
months ended
September 30, 2012
and 2011,
respectively)
Reimbursable         3,364          2,415          10,373       7,484     
expenses
                     67,344         55,391         204,542      159,715   
Operating expenses
Selling, general
and administrative
(includes $844 and
$819 of
equity-based
compensation for
the three months
ended September      28,822          23,611          84,877        72,915
30, 2012 and 2011,
respectively, and
$2,707 and $3,111
for the nine
months ended
September 30, 2012
and 2011,
respectively)
Depreciation and     4,765           2,878           13,010        7,934
amortization
Restructuring        406             3,091           1,824         3,995
charges
Transaction and      35             335            1,914        801       
integration costs
                     34,028         29,915         101,625      85,645    
                                                                   
Operating income     10,340          9,117           33,399        26,961
                                                                   
Other
expense/(income),
net
Interest income      (4          )   (14        )    (37       )   (69       )
Interest expense     121             30              492           178
Other expense        54             10             906          3         
                     171            26             1,361        112       
                                                                   
Income before        10,169          9,091           32,038        26,849
income taxes
Provision for        3,953          2,655          12,392       8,275     
income taxes
Net income           6,216           6,436           19,646        18,574
Less: Net income
attributable to      515            2,404          3,447        7,005     
noncontrolling
interest
Net income
attributable to      $  5,701       $  4,032       $ 16,199     $ 11,569  
Duff & Phelps
Corporation
                                                                   
Weighted average
shares of Class A
common stock
outstanding
Basic                34,830          26,945          32,449        27,050
Diluted              36,208          27,060          33,718        27,834
                                                                   
Net income per
share attributable
to stockholders of
Class A common
stock of Duff &
Phelps Corporation
Basic                $  0.16         $  0.14         $ 0.48        $ 0.41
Diluted              $  0.15         $  0.14         $ 0.46        $ 0.40
                                                                   
Cash dividends
declared per         $  0.09         $  0.08         $ 0.27        $ 0.24
common share

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

QUARTERLY REVENUE BY SEGMENT

(In thousands)

(Unaudited)
                                                                                                                                                               
                                                                                                                                            Q3                      YTD
                 2011                                                               2012
                                                                                                                                            2012 vs 2011            2012 vs 2011
                 Q1          Q2          Q3          Q4           Total         Q1           Q2           Q3           Total         Dollar      Percent    Dollar      Percent
Financial
Advisory
Valuation        $ 37,614     $ 32,604     $ 33,887     $ 39,046      $ 143,151     $ 39,490      $ 33,610      $ 33,895      $ 106,995     $ 8          —     %    $ 2,890      2.8   %
Advisory
Tax Services     7,547        15,128       9,572        8,698         40,945        5,488         13,035        11,008        29,531        1,436        15.0  %    (2,716   )   (8.4  )%
Dispute &
Legal            13,436      13,005      18,319      22,032       66,792       14,675       19,979       22,708       57,362       4,389       24.0  %    12,602      28.2  %
Management
Consulting
                 58,597      60,737      61,778      69,776       250,888      59,653       66,624       67,611       193,888      5,833       9.4   %    12,776      7.1   %
                                                                                                                                                                                 
Alternative
Asset Advisory
Portfolio        6,519        6,220        6,730        6,272         25,741        7,622         6,059         6,417         20,098        (313     )   (4.7  )%   629          3.2   %
Valuation
Complex Asset    5,321        4,125        3,998        4,631         18,075        4,904         4,048         6,270         15,222        2,272        56.8  %    1,778        13.2  %
Solutions
Due Diligence    1,645       4,070       2,643       3,492        11,850       2,423        2,312        2,516        7,251        (127     )   (4.8  )%   (1,107   )   (13.2 )%
                 13,485      14,415      13,371      14,395       55,666       14,949       12,419       15,203       42,571       1,832       13.7  %    1,300       3.1   %
                                                                                                                                                                                 
Investment
Banking
M&A Advisory     1,450        1,853        5,741        16,568        25,612        9,354         14,953        8,145         32,452        2,404        41.9  %    23,408       258.8 %
Transaction      8,231        7,266        7,466        5,811         28,774        6,742         8,171         5,957         20,870        (1,509   )   (20.2 )%   (2,093   )   (9.1  )%
Opinions
Global
Restructuring    3,283       3,615       3,672       12,430       23,000       15,647       12,322       11,497       39,466       7,825       213.1 %    28,896      273.4 %
Advisory
                 12,964      12,734      16,879      34,809       77,386       31,743       35,446       25,599       92,788       8,720       51.7  %    50,211      117.9 %
                                                                                                                                                                                 
Total Revenue
(excluding       $ 85,046    $ 87,886    $ 92,028    $ 118,980    $ 383,940    $ 106,345    $ 114,489    $ 108,413    $ 329,247    $ 16,385    17.8  %    $ 64,287    24.3  %
reimbursables)

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(In thousands, except headcount data)

(Unaudited)
                                                
                   Three Months Ended              Nine Months Ended
                   September 30,   September 30,   September 30,   September
                   2012           2011            2012           30,
                                                                   2011
Financial
Advisory
Revenue
(excluding         $  67,611       $  61,778       $  193,888      $ 181,112
reimbursables)
Segment            $  14,056       $  10,995       $  37,660       $ 30,364
operating income
Segment
operating income   20.8       %    17.8       %    19.4        %   16.8      %
margin
                                                                   
Alternative
Asset Advisory
Revenue
(excluding         $  15,203       $  13,371       $  42,571       $ 41,271
reimbursables)
Segment            $  4,120        $  2,821        $  10,651       $ 9,345
operating income
Segment
operating income   27.1       %    21.1       %    25.0        %   22.6      %
margin
                                                                   
Investment
Banking
Revenue
(excluding         $  25,599       $  16,879       $  92,788       $ 42,577
reimbursables)
Segment
operating          $  (545    )    $  1,614        $  8,419        $ 946
income/(loss)
Segment
operating          (2.1       )%   9.6        %    9.1         %   2.2       %
income/(loss)
margin
                                                                   
Totals
Revenue
(excluding         $  108,413      $  92,028       $  329,247      $ 264,960
reimbursables)
                                                                   
Segment            $  17,631       $  15,430       $  56,730       $ 40,655
operating income
Net client
reimbursable       (65        )    (20        )    (54         )   (123      )
expenses
Equity-based
compensation
from Legacy        —               232             (22         )   (241      )
Units and IPO
Options
Depreciation and   (4,765     )    (2,878     )    (13,010     )   (7,934    )
amortization
Acquisition
retention          (2,020     )    (221       )    (6,507      )   (600      )
expenses
Restructuring      (406       )    (3,091     )    (1,824      )   (3,995    )
charges
Transaction and
integration        (35        )    (335       )    (1,914      )   (801      )
costs
Operating income   $  10,340      $  9,117       $  33,399      $ 26,961  
                                                                   
Average Client
Service
Professionals
Financial          646             576             621             572
Advisory
Alternative        106             98              103             93
Asset Advisory
Investment         310            147            303            136       
Banking
Total              1,062          821            1,027          801       
                                                                   
End of Period
Client Service
Professionals
Financial          657             580             657             580
Advisory
Alternative        106             100             106             100
Asset Advisory
Investment         311            149            311            149       
Banking
Total              1,074          829            1,074          829       
                                                                   
Revenue per
Client Service
Professional
Financial          $  105          $  107          $  312          $ 317
Advisory
Alternative        $  143          $  136          $  413          $ 444
Asset Advisory
Investment         $  83           $  115          $  306          $ 313
Banking
Total              $  102          $  112          $  321          $ 331

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT—CONTINUED

(In thousands, except utilization, rate-per-hour and headcount data)

(Unaudited)
                                                  
                     Three Months Ended              Nine Months Ended
                     September 30,   September 30,   September     September
                     2012           2011            30,          30,
                                                     2012          2011
Utilization^(a)
Financial Advisory   70.3        %   71.2       %    72.2      %   71.3      %
Alternative Asset    62.1        %   58.6       %    59.4      %   60.6      %
Advisory
                                                                   
Rate-Per-Hour^(b)
Financial Advisory   $  344          $  338          $ 334         $ 338
Alternative Asset    $  504          $  501          $ 506         $ 515
Advisory
                                                                   
Revenues
(excluding
reimbursables)
Financial Advisory   $  67,611       $  61,778       $ 193,888     $ 181,112
Alternative Asset    15,203          13,371          42,571        41,271
Advisory
Investment Banking   25,599         16,879         92,788       42,577    
Total                $  108,413     $  92,028      $ 329,247    $ 264,960 
                                                                   
Average Managing
Directors
Financial Advisory   96              91              94            92
Alternative Asset    24              25              23            25
Advisory
Investment Banking   73             48             74           43        
Total                193            164            191          160       
                                                                   
End of Period
Managing Directors
Financial Advisory   96              90              96            90
Alternative Asset    24              25              24            25
Advisory
Investment Banking   73             50             73           50        
Total                193            165            193          165       
                                                                   
Revenue per
Managing Director
Financial Advisory   $  704          $  679          $ 2,063       $ 1,969
Alternative Asset    $  633          $  535          $ 1,851       $ 1,651
Advisory
Investment Banking   $  351          $  352          $ 1,254       $ 990
Total                $  562          $  561          $ 1,724       $ 1,656

_______________
      The utilization rate for any given period is calculated by dividing the
      number of hours incurred by client service professionals who worked on
      client assignments (including internal projects for the Company) during
      the period by the total available working hours for all of such client
(a)  service professionals during the same period, assuming a 40 hour work
      week, less paid holidays and vacation days. Utilization excludes client
      service professionals associated with certain property tax services due
      to the nature of the work performed and client service professionals
      from certain acquisitions prior to their transition to the Company's
      financial system.
      Average billing rate-per-hour is calculated by dividing revenues for the
      period by the number of hours worked on client assignments (including
      internal projects for the Company) during the same period. Financial
(b)   Advisory revenues used to calculate rate-per-hour exclude revenues
      associated with certain property tax engagements. The average billing
      rate excludes certain hours from our acquisitions prior to their
      transition to the Company's financial system.

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

SUMMARY OF CLIENT SERVICE PROFESSIONALS

(Unaudited)
                                                       
                    2011                                    2012
                    Q1     Q2     Q3     Q4     YTD     Q1       Q2       Q3       YTD
Average
Client
Service
Professionals
Financial           574     562     576     584     575     600       612       646       621
Advisory
Alternative
Asset               87      94      98      99      94      99        101       106       103
Advisory
Investment          129    128    147    213    158    302      291      310      303
Banking
                    790    784    821    896    827    1,001    1,004    1,062    1,027
                                                                                          
                                                                                          
End of Period
Client
Service
Professionals
Financial           571     552     580     590             605       612       657
Advisory
Alternative
Asset               90      97      100     100             94        103       106
Advisory
Investment          127    131    149    303            294      292      311   
Banking
                    788    780    829    993            993      1,007    1,074 
                                                                                          
                                                                                          
                                                                                          
                    2011                                    2012
                    Q1      Q2      Q3      Q4      YTD     Q1        Q2        Q3        YTD
Average
Managing
Directors
Financial           94      93      91      90      92      92        95        96        94
Advisory
Alternative
Asset               26      25      25      24      25      23        23        24        23
Advisory
Investment          39     41     48     58     47     76       74       73       74
Banking
                    159    159    164    172    164    191      192      193      191
                                                                                          
                                                                                          
End of Period
Managing
Directors
Financial           94      91      90      92              95        95        96
Advisory
Alternative
Asset               26      25      25      24              23        23        24
Advisory
Investment          39     43     50     76             73       73       73    
Banking
                    159    159    165    192            191      191      193   

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)
                                                               
                                                  September 30,   December 31,
                                                  2012            2011
ASSETS
Current assets
Cash and cash equivalents                         $  46,837       $   38,986
Accounts receivable (net of allowance for
doubtful accounts of $1,918 and $1,753 at         73,455          77,795
September 30, 2012 and December 31, 2011,
respectively)
Unbilled services                                 59,932          51,427
Prepaid expenses and other current assets         9,264           8,257
Net deferred income taxes, current                2,285          2,545
Total current assets                              191,773        179,010
                                                                  
Property and equipment (net of accumulated
depreciation of $36,971 and $32,516 at            49,356          33,632
September 30, 2012 and December 31, 2011,
respectively)
Goodwill                                          195,726         192,970
Intangible assets (net of accumulated
amortization of $32,739 and $25,626 at            34,017          40,977
September 30, 2012 and December 31, 2011,
respectively)
Other assets                                      14,570          13,942
Investments related to deferred compensation      28,389          23,542
plan
Net deferred income taxes, less current portion   150,017        115,826
Total non-current assets                          472,075        420,889
Total assets                                      $  663,848     $   599,899
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                                  $  5,331        $   4,148
Accrued expenses                                  27,716          22,612
Accrued compensation and benefits                 26,560          41,518
Liability related to deferred compensation        625             646
plan, current portion
Deferred revenues                                 5,247           4,185
Due to noncontrolling unitholders, current        6,214          6,209
portion
Total current liabilities                         71,693         79,318
                                                                  
Long-term debt                                    17,500          —
Liability related to deferred compensation        27,945          23,083
plan, less current portion
Other long-term liabilities                       29,836          32,248
Due to noncontrolling unitholders, less current   137,726        101,557
portion
Total non-current liabilities                     213,007        156,888
Total liabilities                                 284,700        236,206
                                                                  
Commitments and contingencies
                                                                  
Stockholders' equity
Preferred stock (50,000 shares authorized; zero   —               —
issued and outstanding)
Class A common stock, par value $0.01 per share
(100,000 shares authorized; 40,399 and 31,646     404             316
shares issued and outstanding at September 30,
2012 and December 31, 2011, respectively)
Class B common stock, par value $0.0001 per
share (50,000 shares authorized; 2,029 and
10,488 shares issued and outstanding at           —               1
September 30, 2012 and December 31, 2011,
respectively)
Additional paid-in capital                        327,129         252,572
Accumulated other comprehensive income            2,390           287
Retained earnings                                 31,806         25,631
Total stockholders' equity of Duff & Phelps       361,729         278,807
Corporation
Noncontrolling interest                           17,419         84,886
Total stockholders' equity                        379,148        363,693
Total liabilities and stockholders' equity        $  663,848     $   599,899

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)
                                               
                                                 Nine Months Ended
                                                 September 30,  September 30,
                                                 2012            2011
                                                                 
Cash flows from operating activities:
Net income                                       $  19,646       $  18,574
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                    13,010          7,934
Equity-based compensation                        19,720          17,092
Bad debt expense                                 1,056           1,920
Net deferred income taxes                        2,243           5,919
Other                                            3,399           2,448
Changes in assets and liabilities
providing/(using) cash, net of acquired
balances:
Accounts receivable                              3,526           (5,236     )
Unbilled services                                (8,289     )    (15,416    )
Prepaid expenses and other current assets        (213       )    1,777
Other assets                                     (2,024     )    2,453
Accounts payable and accrued expenses            5,967           (5,541     )
Accrued compensation and benefits                (7,240     )    (18,201    )
Deferred revenues                                1,061           1,994
Other liabilities                                (5,274     )    (1,172     )
Net cash provided by operating activities        46,588         14,545     
                                                                 
Cash flows from investing activities:
Purchases of property and equipment              (18,254    )    (6,410     )
Business acquisitions, net of cash acquired      (1,432     )    (5,891     )
Purchases of investments                         (3,150     )    (3,500     )
Net cash used in investing activities            (22,836    )    (15,801    )
                                                                 
Cash flows from financing activities:
Borrowings under revolving line of credit        30,000          —
Repayments of revolving line of credit           (12,500    )    —
Net proceeds from sale of Class A common stock   49,244          —
Redemption of noncontrolling unitholders         (58,972    )    —
Dividends                                        (10,083    )    (7,502     )
Repurchases of Class A common stock              (6,941     )    (24,114    )
Payments of contingent consideration related     (5,314     )    —
to acquisitions
Distributions and other payments to              (2,196     )    (4,306     )
noncontrolling unitholders
Proceeds from exercises of stock options         16              267
Excess tax benefit from equity-based             711            867        
compensation
Net cash used in financing activities            (16,035    )    (34,788    )
                                                                 
Effect of exchange rate on cash and cash         134            310        
equivalents
                                                                 
Net increase/(decrease) in cash and cash         7,851           (35,734    )
equivalents
Cash and cash equivalents at beginning of year   38,986         113,328    
Cash and cash equivalents at end of period       $  46,837      $  77,594  

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)
                            
                              Three Months Ended September 30, 2012
                              As Reported  Adjustments     Adjusted Pro Forma
Revenues                      $ 108,413     $  —            $    108,413
Reimbursable expenses         3,299        —              3,299          
Total revenues                111,712      —              111,712        
                                                            
Direct client service costs
Compensation and benefits     58,630        —               58,630
Other direct client service   3,330         —               3,330
costs
Acquisition retention         2,020         (2,020    )     —
expenses
Reimbursable expenses         3,364        —              3,364          
                              67,344       (2,020    )     65,324         
                                                            
Operating expenses
Selling, general and          28,822        —               28,822
administrative
Depreciation and              4,765         —               4,765
amortization
Restructuring charges         406           (406      )     —
Transaction and integration   35           (35       )     —              
costs
                              34,028       (441      )     33,587         
                                                            
Operating income              10,340        2,461           12,801
                                                            
Other expense/(income), net
Interest income               (4        )   —               (4             )
Interest expense              121           —               121
Other expense                 54           —              54             
                              171          —              171            
                                                            
Income before income taxes    10,169        2,461           12,630
Provision for income taxes    3,953        1,023      (3) 4,976          
Net income                    6,216         1,438           7,654
Less: Net income
attributable to               515          (515      )     —              
noncontrolling interest
Net income attributable to    $ 5,701      $  1,953       $    7,654     
Duff & Phelps Corporation
                                                            
                                                            
Pro forma fully exchanged, fully diluted shares             39,105         
outstanding
                                                            
Adjusted Pro Forma Net Income per fully exchanged,          $    0.20      
fully diluted shares outstanding

See definition of Adjusted Pro Forma Net Income and accompanying footnotes in
the preceding section of this press release.

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)
                            
                              Three Months Ended September 30, 2011
                              As Reported  Adjustments     Adjusted Pro Forma
Revenues                      $  92,028     $  —            $    92,028
Reimbursable expenses         2,395        —              2,395          
Total revenues                94,423       —              94,423         
                                                            
Direct client service costs
Compensation and benefits     50,705        419         (1) 51,124
Other direct client service   2,050         —               2,050
costs
Acquisition retention         221           (221      )
expenses
Reimbursable expenses         2,415        —              2,415          
                              55,391       198            55,589         
                                                            
Operating expenses
Selling, general and          23,611        (187      ) (1) 23,424
administrative
Depreciation and              2,878         —               2,878
amortization
Restructuring charges         3,091         (3,091    )
Transaction and integration   335          (335      )     
costs
                              29,915       (3,613    )     26,302         
                                                            
Operating income              9,117         3,415           12,532
                                                            
Other expense/(income), net
Interest income               (14       )   —               (14            )
Interest expense              30            —               30
Other expense                 10           —              10             
                              26           —              26             
                                                            
Income before income taxes    9,091         3,415           12,506
Provision for income taxes    2,655        2,402      (3) 5,057          
Net income                    6,436         1,013           7,449
Less: Net income
attributable to               2,404        (2,404    )     
noncontrolling interest
Net income attributable to    $  4,032     $  3,417       $    7,449     
Duff & Phelps Corporation
                                                            
                                                            
Pro forma fully exchanged, fully diluted shares             37,873         
outstanding
                                                            
Adjusted Pro Forma Net Income per fully exchanged,          $    0.20      
fully diluted shares outstanding

See definition of Adjusted Pro Forma Net Income and accompanying footnotes in
the preceding section of this press release.

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)
                            
                              Nine Months Ended September 30, 2012
                              As Reported  Adjustments     Adjusted Pro Forma
Revenues                      $ 329,247     $  —            $    329,247
Reimbursable expenses         10,319       —              10,319         
Total revenues                339,566      —              339,566        
                                                            
Direct client service costs
Compensation and benefits     179,019       43          (1) 179,062
Other direct client service   8,643         —               8,643
costs
Acquisition retention         6,507         (6,507    )     —
expenses
Reimbursable expenses         10,373       —              10,373         
                              204,542      (6,464    )     198,078        
                                                            
Operating expenses
Selling, general and          84,877        (65       ) (1) 84,812
administrative
Depreciation and              13,010        —               13,010
amortization
Restructuring charges         1,824         (1,824    )     —
Transaction and integration   1,914        (1,914    )     —              
costs
                              101,625      (3,803    )     97,822         
                                                            
Operating income              33,399        10,267          43,666
                                                            
Other expense/(income), net
Interest income               (37       )   —               (37            )
Interest expense              492           —               492
Other expense                 906          (376      ) (2) 530            
                              1,361        (376      )     985            
                                                            
Income before income taxes    32,038        10,643          42,681
Provision for income taxes    12,392       4,424      (3) 16,816         
Net income                    19,646        6,219           25,865
Less: Net income
attributable to               3,447        (3,447    )     
noncontrolling interest
Net income attributable to    $ 16,199     $  9,666       $    25,865    
Duff & Phelps Corporation
                                                            
                                                            
Pro forma fully exchanged, fully diluted shares             39,012         
outstanding
                                                            
Adjusted Pro Forma Net Income per fully exchanged,          $    0.66      
fully diluted shares outstanding

See definition of Adjusted Pro Forma Net Income and accompanying footnotes in
the preceding section of this press release.

DUFF & PHELPS CORPORATION AND SUBSIDIARIES

ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)
                            
                              Nine Months Ended September 30, 2011
                              As Reported  Adjustments     Adjusted Pro Forma
Revenues                      $ 264,960     $  —            $    264,960
Reimbursable expenses         7,361        —              7,361          
Total revenues                272,321      —              272,321        
                                                            
Direct client service costs
Compensation and benefits     146,672       241         (1) 146,913
Other direct client service   4,959         —               4,959
costs
Acquisition retention         600           (600      )     —
expenses
Reimbursable expenses         7,484        —              7,484          
                              159,715      (359      )     159,356        
                                                            
Operating expenses
Selling, general and          72,915        (482      ) (1) 72,433
administrative
Depreciation and              7,934         —               7,934
amortization
Restructuring charges         3,995         (3,995    )     —
Transaction and integration   801          (801      )     —              
costs
                              85,645       (5,278    )     80,367         
                                                            
Operating income              26,961        5,637           32,598
                                                            
Other expense/(income), net
Interest income               (69       )   —               (69            )
Interest expense              178           —               178
Other expense                 3            —              3              
                              112          —              112            
                                                            
Income before income taxes    26,849        5,637           32,486
Provision for income taxes    8,275        4,914      (3) 13,189         
Net income                    18,574        723             19,297
Less: Net income
attributable to               7,005        (7,005    )     —              
noncontrolling interest
Net income attributable to    $ 11,569     $  7,728       $    19,297    
Duff & Phelps Corporation
                                                            
                                                            
Pro forma fully exchanged, fully diluted shares             38,796         
outstanding
                                                            
Adjusted Pro Forma Net Income per fully exchanged,          $    0.50      
fully diluted shares outstanding

See definition of Adjusted Pro Forma Net Income and accompanying footnotes in
the preceding section of this press release.

Contact:

Duff & Phelps Corporation
Investor Relations
Marty Dauer, +1-212-871-7700
investor.relations@duffandphelps.com
or
Media Relations
Alex Wolfe, +1-212-871-9087
alex.wolfe@duffandphelps.com
 
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