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

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

FOURTH QUARTER HIGHLIGHTS:

  *Quarterly revenue of $145.1 million including reimbursable expenses
    (representing a $20.6 million or 16.5% increase over the corresponding
    prior year quarter) and $139.9 million excluding reimbursable expenses
    (representing a $20.9 million or 17.6% increase over the corresponding
    prior year quarter)
  *Adjusted EBITDA^(1) of $27.1 million, representing a 19.3% margin and a
    $2.9 million or 11.9% increase over the corresponding prior year quarter
  *Adjusted Pro Forma Net Income^(1) of $0.34 per share, compared to $0.32
    per share for the corresponding prior year quarter
  *Declares a quarterly dividend of $0.09 per share of Class A common stock

FULL YEAR HIGHLIGHTS:

  *Full year revenue of $484.7 million including reimbursable expenses
    (representing a $87.8 million or 22.1% increase over the prior year) and
    $469.2 million excluding reimbursable expenses (representing a $85.2
    million or 22.2% increase over the prior year)
  *Adjusted EBITDA^(1) of $83.7 million, representing a 17.9% margin and a
    $19.0 million or 29.4% increase over the prior year
  *Adjusted Pro Forma Net Income^(1) of $1.01 per share, compared to $0.82
    per share for the prior year

Business Wire

NEW YORK -- February 25, 2013

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

Results

For the quarter ended December31, 2012, revenue excluding reimbursable
expenses increased $20.9 million or 17.6% to $139.9 million, compared to
$119.0 million for the corresponding prior year quarter. Adjusted EBITDA^(1)
for the quarter was $27.1 million, representing 19.3% of revenue excluding
reimbursable expenses, compared to $24.2 million for the corresponding prior
year quarter, representing 20.3% of revenue excluding reimbursable expenses.
Net income attributable to Duff & Phelps Corporation was $6.1 million, or
$0.16 per share of Class A common stock on a fully diluted basis, compared to
$7.0 million, or $0.23 per share for the corresponding prior year quarter.
Adjusted Pro Forma Net Income^(1) was $13.4 million, or $0.34 per share on a
fully exchanged, fully diluted basis, compared to $12.4 million, or $0.32 per
share, for the corresponding prior year quarter.

For the year ended December31, 2012, revenue excluding reimbursable expenses
increased $85.2 million or 22.2% to $469.2 million, compared to $383.9 million
for the prior year. Adjusted EBITDA^(1) for the year was $83.7 million,
representing 17.9% of revenue excluding reimbursable expenses, compared to
$64.7 million for the prior year, representing 16.9% of revenue excluding
reimbursable expenses. Net income attributable to Duff & Phelps Corporation
was $22.3 million, or $0.62 per share of Class A common stock on a fully
diluted basis, compared to $18.6 million, or $0.63 per share for the prior
year. Adjusted Pro Forma Net Income^(1) was $39.3 million, or $1.01 per share
on a fully exchanged, fully diluted basis, compared to $31.7 million, or $0.82
per share, for the prior year.

"The strong fourth quarter results reflect continued momentum in several of
our businesses including dispute consulting, complex asset valuations and
middle market investment banking, as well as the positive impact specifically
related to the anticipated tax changes resulting from the fiscal cliff
discussions—such as transaction opinions provided for dividend
recapitalizations," commented Noah Gottdiener, chief executive officer.
"Overall, I am pleased with our 2012 results."

_______________

^(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.

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 March19, 2013 to shareholders of record on
March8, 2013.

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)

Earnings Call Webcast

As a result of the pending merger, the Company will not be holding an earnings
conference call. Please refer to the Company's Annual Report on Form 10-K that
will be filed subsequent to this press release for additional discussion of
the Company's results.

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
                                                  
                         Quarter Ended                 Year Ended
                         December 31,   December 31,   December 31,   December
                         2012          2011           2012          31,
                                                                      2011
Net income
attributable to          $  6,065       $  7,045       $  22,264      $ 18,614
Duff & Phelps
Corporation
Net income
attributable to          590            4,110          4,037          11,115
noncontrolling
interest
Provision for            7,630          5,566          20,022         13,841
income taxes
Other
expense/(income),        (292       )   1,591         1,069         1,703
net
Operating income         13,993         18,312         47,392         45,273
Depreciation and         5,128          3,230          18,138         11,164
amortization
Equity-based
compensation
associated with          —              (34        )   22             207
Legacy Units and
IPO Options^(1)
Acquisition
retention                3,029          1,024          9,536          1,624
expenses^(2)
Restructuring            (28        )   95             1,796          4,090
charges^(3)
Acquisition,
integration and
corporate                4,951         1,571         6,865         2,372
development
costs^(4)
Adjusted EBITDA          $  27,073     $  24,198     $  83,749     $ 64,730
                                                                        


Reconciliation of Adjusted Pro Forma Net Income
                                                              
                       Quarter Ended                 Year Ended
                       December 31,   December 31,   December 31,   December
                       2012          2011           2012           31,
                                                                    2011
Net income
attributable to        $  6,065       $  7,045       $  22,264      $ 18,614
Duff & Phelps
Corporation
Net income
attributable to        590            4,110          4,037          11,115
noncontrolling
interest
Equity-based
compensation
associated with        —              (34        )   22             207
Legacy Units and
IPO Options^(1)
Acquisition
retention              3,029          1,024          9,536          1,624
expenses^(2)
Restructuring          (28        )   95             1,796          4,090
charges^(3)
Acquisition,
integration and
corporate              4,951          1,571          6,865          2,372
development
costs^(4)
Loss from the
write off of an        —              1,500          376            1,500
investment^(5)
Adjustment to
provision for          (1,197     )   (2,910     )   (5,621     )   (7,824   )
income taxes^(6)
Adjusted Pro
Forma Net              $  13,410     $  12,401     $  39,275     $ 31,698 
Income, as
defined
                                                                    
Fully diluted
weighted average       37,245         27,674         34,585         27,832
shares of Class
A common stock
Weighted average
New Class A            2,002         10,650        4,466         10,883   
Units
outstanding
Pro forma fully
exchanged, fully       39,247        38,324        39,051        38,715   
diluted shares
outstanding
                                                                    
Adjusted Pro
Forma Net Income
per fully              $  0.34       $  0.32       $  1.01       $ 0.82   
exchanged, fully
diluted share
outstanding



_______________
      Represents elimination of equity-compensation expense from Legacy Units
(1)  associated with ownership units of D&P Acquisitions ("Legacy Units") and
      stock options granted in conjunction with our IPO ("IPO Options"). See
      further detail in the Notes to the Consolidated Financial Statements.
      Acquisition retention expenses include expense associated with equity or
      cash-based retention incentives to certain individuals who became
      employees of the Company through an acquisition. Equity-based incentives
      are typically subject to certain annual or cliff vesting provisions over
      three years contingent upon certain conditions which include employment.
(2)   Cash-based incentives are generally subject to certain annual or cliff
      vesting provisions up to four years contingent upon certain conditions
      which may include employment. Cash-based retentive incentives may also
      include incentives paid to acquired employees upon the closing of an
      acquisition. These incentives may be in addition to future grants or
      cash bonuses awarded as a component of ongoing incentive compensation.


      In June 2011, the Company identified opportunities for cost savings
      through office consolidations of underutilized space and workforce
      reductions of non-client service professionals. The Company incurred
      restructuring charges of $4,090 during the year ended December 31, 2011
(3)  related to these initiatives. In March 2012, the Company identified
      opportunities for cost savings through the elimination of our M&A
      Advisory practice in France and certain Investment Banking positions in
      France. The Company incurred restructuring charges of $1,796 during the
      year ended December 31, 2012 related to these initiatives and for
      changes in estimates of original assumptions.
      Acquisition, integration and corporate development costs include fees
      and charges associated with acquisitions and ongoing corporate
      development initiatives, including costs resulting from the pending
      merger. These costs are primarily comprised of (i) professional fees
      from legal, accounting, investment banking and other services, (ii)
(4)   integration costs principally related to marketing, information
      technology, finance and real estate that are incremental and one-time in
      nature, (iii) gains or losses resulting from the recalculation of
      contingent consideration, (iv) foreign currency gains or losses from the
      translation of acquisition-related intercompany loans and (v) other
      charges such as regulatory filing fees and travel and entertainment
      expenses that are incremental in nature.
      Reflects a charge from the write off of a minority investment. The
(5)   charge is reflected in "Other expense" on the Company's Consolidated
      Statements of Operations.
      Represents an adjustment to reflect an assumed annual effective
      corporate tax rate of approximately 39.5% and 40.6% as applied to the
      years ended December 31, 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
(6)   jurisdiction. 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, 2012 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

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

                      Quarter Ended              Year Ended
                         December      December      December      December
                         31,          31,           31,          31,
                         2012          2011          2012          2011
Revenue                  $ 139,917     $ 118,980     $ 469,164     $ 383,940
Reimbursable             5,218        5,573        15,537       12,934    
expenses
Total revenue            145,135       124,553       484,701       396,874
                                                                   
Direct client
service costs
Compensation and
benefits (includes
$4,259 and $3,705
of equity-
based compensation
for the quarters
ended December 31,
2012 and                 77,070        62,934        256,089       209,606
2011,
respectively, and
$19,098 and
$17,086 for the
years ended
December 31, 2012
and 2011,
respectively)
Other direct
client service           4,476         4,089         13,119        9,048
costs
Acquisition
retention expenses
(includes $734 and
$454 of equity-
based compensation
for the quarters
ended December 31,
2012 and                 3,029         1,024         9,536         1,624
2011,
respectively, and
$2,908 and $1,054
for the years
ended
December 31, 2012
and 2011,
respectively)
Reimbursable             5,361        5,589        15,734       13,073    
expenses
                         89,936       73,636       294,478      233,351   
Operating expenses
Selling, general
and administrative
(includes $824 and
$633 of
equity-based
compensation for
the quarters ended
December 31,             31,155        27,709        116,032       100,624
2012 and 2011,
respectively, and
$3,531 and $3,744
for the years
ended December 31,
2012 and 2011,
respectively)
Depreciation and         5,128         3,230         18,138        11,164
amortization
Restructuring            (28       )   95            1,796         4,090
charges
Acquisition,
integration and          4,951        1,571        6,865        2,372     
corporate
development costs
                         41,206       32,605       142,831      118,250   
                                                                   
Operating income         13,993        18,312        47,392        45,273
                                                                   
Other
expense/(income),
net
Interest income          (22       )   (8        )   (59       )   (77       )
Interest expense         256           97            748           275
Other                    (526      )   1,502        380          1,505     
expense/(income)
                         (292      )   1,591        1,069        1,703     
                                                                   
Income before            14,285        16,721        46,323        43,570
income taxes
Provision for            7,630        5,566        20,022       13,841    
income taxes
Net income               6,655         11,155        26,301        29,729
Less: Net income
attributable to          590          4,110        4,037        11,115    
noncontrolling
interest
Net income
attributable to          $ 6,065      $ 7,045      $ 22,264     $ 18,614  
Duff & Phelps
Corporation
                                                                   
Weighted average
shares of Class A
common stock
outstanding
Basic                    35,704        26,685        33,267        26,958
Diluted                  37,245        27,674        34,585        27,832
                                                                   
Net income per
share attributable
to stockholders of
Class A common
stock of Duff &
Phelps Corporation
Basic                    $ 0.16        $ 0.24        $ 0.64        $ 0.65
Diluted                  $ 0.16        $ 0.23        $ 0.62        $ 0.63
                                                                   
Cash dividends
declared per             $ 0.09        $ 0.08        $ 0.36        $ 0.32
common share


                                                                                                                                                                                            
DUFF & PHELPS CORPORATION AND SUBSIDIARIES

QUARTERLY REVENUE BY SEGMENT

(In thousands)

(Unaudited)
                                                                                                                                                                                                                           
                 2011                                                               2012                                                                    Variance                         Variance
                                                                                                                                                                Q4 2011 vs Q4 2012               2011 vs 2012
                   Q1          Q2        Q3          Q4           Total           Q1           Q2           Q3           Q4           Total           Dollar             Percent      Dollar             Percent
Financial
Advisory
Valuation          $ 37,614     $ 32,604     $ 33,887     $ 39,046      $ 143,151       $ 39,490      $ 33,610      $ 33,895      $ 43,334      $ 150,329       $        4,288      11.0  %      $        7,178      5.0   %
Advisory^(a)
Tax                7,547        15,128       9,572        8,698         40,945          5,488         13,035        11,008        10,295        39,826          1,597               18.4  %      (1,119          )   (2.7  )%
Services^(b)
Dispute &
Legal              13,436      13,005      18,319      22,032       66,792         14,675       19,979       22,708       24,430       81,792         2,398              10.9  %      15,000             22.5  %
Management
Consulting^(c)
                   58,597      60,737      61,778      69,776       250,888        59,653       66,624       67,611       78,059       271,947        8,283              11.9  %      21,059             8.4   %
                                                                                                                                                                                                                     
Alternative
Asset Advisory
Portfolio          6,519        6,220        6,730        6,272         25,741          7,622         6,059         6,417         5,725         25,823          (547            )   (8.7  )%     82                  0.3   %
Valuation
Complex Asset      5,321        4,125        3,998        4,631         18,075          4,904         4,048         6,270         5,828         21,050          1,197               25.8  %      2,975               16.5  %
Solutions
Due Diligence      1,645       4,070       2,643       3,492        11,850         2,423        2,312        2,516        2,926        10,177         (566            )   (16.2 )%     (1,673          )   (14.1 )%
                   13,485      14,415      13,371      14,395       55,666         14,949       12,419       15,203       14,479       57,050         84                 0.6   %      1,384              2.5   %
                                                                                                                                                                                                                     
Investment
Banking
M&A                1,450        1,853        5,741        16,568        25,612          9,354         14,953        8,145         18,537        50,989          1,969               11.9  %      25,377              99.1  %
Advisory^(d)
Transaction        8,231        7,266        7,466        5,811         28,774          6,742         8,171         5,957         13,830        34,700          8,019               138.0 %      5,926               20.6  %
Opinions
Global
Restructuring      3,283       3,615       3,672       12,430       23,000         15,647       12,322       11,497       15,012       54,478         2,582              20.8  %      31,478             136.9 %
Advisory^(e)
                   12,964      12,734      16,879      34,809       77,386         31,743       35,446       25,599       47,379       140,167        12,570             36.1  %      62,781             81.1  %
                                                                                                                                                                                                                     
Total Revenue
(excluding         $ 85,046    $ 87,886    $ 92,028    $ 118,980    $ 383,940      $ 106,345    $ 114,489    $ 108,413    $ 139,917    $ 469,164      $        20,937    17.6  %      $        85,224    22.2  %
reimbursables)
                                                                                                                                                                                                                           


_______________                             
                                               For the year ended December 31,
                                               2012, M&A Advisory includes
                                               $2,846 of incremental revenue
                                               from our acquisition of Growth
      For the year ended December 31,          Capital Partners from the
      2012, Valuation Advisory                 beginning of the year through
      includes $2,362 of incremental           June 30, 2012, the one year
      revenue from our acquisition of          anniversary of the acquisition.
      Ceteris from the effective date          For the year ended December 31,
(a)  of the acquisition (October 18,    (d)   2011, M&A Advisory includes
      2012) through the end of the             $7,507 of incremental revenue
      year. Ceteris is an independent          from the effective date of the
      provider of transfer pricing and         acquisition (June 30, 2011)
      valuation advisory services.             through the end of the year.
                                               Growth Capital Partners is a
                                               Houston-based investment
                                               banking firm focused on
                                               transactions in the middle
                                               market.
      For the year ended December 31,
      2012, Tax Services includes $279
      of incremental revenue from our
      acquisition of Growth Capital            For the year ended December 31,
      Partners from the beginning of           2012, M&A Advisory also
      the year through June 30, 2012,          includes $17,023 of incremental
      the one year anniversary of the          revenue from our acquisition of
      acquisition. For the year ended          Pagemill Partners from the
(b)   December 31, 2011, Tax Services          beginning of the year through
      includes $543 of incremental             December 31, 2012, the one year
      revenue from the effective date          anniversary of the acquisition.
      of the acquisition (June 30,             Pagemill Partners is a Silicon
      2011) through the end of the             Valley-based investment banking
      year. Growth Capital Partners is         firm.
      a Houston-based investment
      banking firm focused on
      transactions in the middle
      market.
                                               
                                               For the year ended December 31,
                                               2012, Global Restructuring
      For the year ended December 31,          Advisory includes $28,520 of
      2012, Dispute & Legal Management         incremental revenue from our
      Consulting includes $891 of              acquisition of MCR from the
      incremental revenue from our             beginning of the year through
      acquisition of iEnvision                 October 31, 2012, the one year
      Technology from the effective            anniversary of the acquisition.
      date of the acquisition (October         For the year ended December 31,
(c)   4, 2012) through the end of the    (e)   2011, Global Restructuring
      year. iEnvision Technology is an         Advisory includes $4,726 of
      advisory firm that assists law           incremental revenue from the
      firms and corporate legal                effective date of the
      departments with implementation          acquisition (October 31, 2011)
      of document and data management          through the end of the year.
      systems.                                 MCR is a United Kingdom-based
                                               partnership specializing in
                                               insolvency, turnaround and
                                               restructuring services.
                                               
                                               For the year ended December 31,
                                               2012, Global Restructuring
                                               Advisory includes $7,405 of
                                               incremental revenue from our
                                               acquisition of the
                                               Toronto-based financial
                                               restructuring practice of RSM
                                               Ricther from the beginning of
                                               the year through December 9,
                                               2012, the one year anniversary
                                               of the acquisition. For the
                                               year ended December 31, 2011,
                                               Global Restructuring Advisory
                                               includes $321 of incremental
                                               revenue from the effective date
                                               of the acquisition (December 9,
                                               2011) through the end of the
                                               year.



DUFF & PHELPS CORPORATION AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(In thousands, except headcount data)
(Unaudited)



                   Quarter Ended                Year Ended
                      December 31,   December 31,   December 31,   December
                      2012          2011           2012          31,
                                                                   2011
Financial
Advisory
Revenue
(excluding            $  78,059      $  69,776      $  271,947     $ 250,888
reimbursables)
Segment
operating             $  13,118      $  14,848      $  50,778      $ 45,212
income
Segment
operating             16.8       %   21.3       %   18.7       %   18.0      %
income margin
                                                                   
Alternative
Asset Advisory
Revenue
(excluding            $  14,479      $  14,395      $  57,050      $ 55,666
reimbursables)
Segment
operating             $  2,108       $  3,545       $  12,759      $ 12,890
income
Segment
operating             14.6       %   24.6       %   22.4       %   23.2      %
income margin
                                                                   
Investment
Banking
Revenue
(excluding            $  47,379      $  34,809      $  140,167     $ 77,386
reimbursables)
Segment
operating             $  11,990      $  5,821       $  20,409      $ 6,767
income
Segment
operating             25.3       %   16.7       %   14.6       %   8.7       %
income margin
                                                                   
Totals
Revenue
(excluding            $  139,917     $  118,980     $  469,164     $ 383,940
reimbursables)
                                                                   
Segment
operating             $  27,216      $  24,214      $  83,946      $ 64,869
income
Net client
reimbursable          (143       )   (16        )   (197       )   (139      )
expenses
Equity-based
compensation
from Legacy           —              34             (22        )   (207      )
Units and IPO
Options
Depreciation
and                   (5,128     )   (3,230     )   (18,138    )   (11,164   )
amortization
Acquisition
retention             (3,029     )   (1,024     )   (9,536     )   (1,624    )
expenses
Restructuring         28             (95        )   (1,796     )   (4,090    )
charges
Acquisition,
integration and
corporate             (4,951     )   (1,571     )   (6,865     )   (2,372    )
development
costs
Operating             $  13,993     $  18,312     $  47,392     $ 45,273  
income

                                                                   
Average Client
Service
Professionals
Financial             691            584            640            575
Advisory
Alternative           106            99             103            94
Asset Advisory
Investment            315           213           306           158       
Banking
Total                 1,112         896           1,049         827       
                                                                   
End of Period
Client Service
Professionals
Financial             704            590            704            590
Advisory
Alternative           105            100            105            100
Asset Advisory
Investment            311           303           311           303       
Banking
Total                 1,120         993           1,120         993       
                                                                             


DUFF & PHELPS CORPORATION AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT - CONTINUED

(In thousands, except headcount data)

(Unaudited)
                     
                         Quarter Ended              Year Ended
                         December      December      December      December
                         31,          31,           31,          31,
                         2012          2011          2012          2011
Revenue per Client
Service
Professional
Financial Advisory       $ 113         $ 119         $ 425         $ 436
Alternative Asset        $ 137         $ 145         $ 554         $ 592
Advisory
Investment Banking       $ 150         $ 163         $ 458         $ 490
Total                    $ 126         $ 133         $ 447         $ 464
                         
                                                                   
Utilization^(a)
Financial Advisory       75.4      %   81.7      %   73.1      %   73.8      %
Alternative Asset        62.5      %   63.0      %   60.2      %   61.2      %
Advisory
                                                                   
Rate-Per-Hour^(b)
Financial Advisory       $ 372         $ 356         $ 344         $ 343
Alternative Asset        $ 487         $ 516         $ 501         $ 515
Advisory
                         
                                                                   
Revenue (excluding
reimbursables)
Financial Advisory       $ 78,059      $ 69,776      $ 271,947     $ 250,888
Alternative Asset        14,479        14,395        57,050        55,666
Advisory
Investment Banking       47,379       34,809       140,167      77,386    
Total                    $ 139,917    $ 118,980    $ 469,164    $ 383,940 
                                                                   
Average Managing
Directors
Financial Advisory       106           90            97            92
Alternative Asset        23            24            23            25
Advisory
Investment Banking       73           58           74           47        
Total                    202          172          194          164       
                                                                   
End of Period
Managing Directors
Financial Advisory       110           92            110           92
Alternative Asset        23            24            23            24
Advisory
Investment Banking       71           76           71           76        
Total                    204          192          204          192       
                                                                   
Revenue per
Managing Director
Financial Advisory       $ 736         $ 775         $ 2,804       $ 2,727
Alternative Asset        $ 630         $ 600         $ 2,480       $ 2,227
Advisory
Investment Banking       $ 649        $ 600        $ 1,894      $ 1,647   
Total                    $ 693        $ 692        $ 2,418      $ 2,341   


DUFF & PHELPS CORPORATION AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(In thousands, except headcount data)

(Unaudited)
_______________
      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 revenue 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 revenue used to calculate rate-per-hour exclude revenue
      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       Q4       YTD
Average
Client
Service
Professionals


Financial           574     562     576     584     575       600       612       646       691       640
Advisory
Alternative
Asset               87      94      98      99      94        99        101       106       106       103
Advisory
Investment          129    128    147    213    158      302      291      310      315      306
Banking
                    790    784    821    896    827      1,001    1,004    1,062    1,112    1,049
                                                                                                      
                                                                                                      
End of Period
Client
Service
Professionals
Financial           571     552     580     590               605       612       657       704
Advisory
Alternative
Asset               90      97      100     100               94        103       106       105
Advisory
Investment          127    131    149    303              294      292      311      311   
Banking
                    788    780    829    993              993      1,007    1,074    1,120 
                                                                                                      
                                                                                                      
                                                                                                      
                    2011                                      2012
                    Q1      Q2      Q3      Q4      YTD       Q1        Q2        Q3        Q4        YTD
Average
Managing
Directors
Financial           94      93      91      90      92        92        95        96        106       97
Advisory
Alternative
Asset               26      25      25      24      25        23        23        24        23        23
Advisory
Investment          39     41     48     58     47       76       74       73       73       74
Banking
                    159    159    164    172    164      191      192      193      202      194
                                                                                                      
                                                                                                      
End of Period
Managing
Directors
Financial           94      91      90      92                95        95        96        110
Advisory
Alternative
Asset               26      25      25      24                23        23        24        23
Advisory
Investment          39     43     50     76               73       73       73       71    
Banking
                    159    159    165    192              191      191      193      204   
                                                                                                      

                                                               
DUFF & PHELPS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

                                                   December 31,   December 31,
                                                   2012           2011
ASSETS
Current assets
Cash and cash equivalents                          $  68,732      $   38,986
Accounts receivable (net of allowance for
doubtful accounts of $2,037 and $1,753 at          79,360         77,795
December 31,
2012 and 2011, respectively)
Unbilled services                                  54,159         51,427
Prepaid expenses and other current assets          10,980         8,257
Net deferred income taxes, current                 1,819         2,545
Total current assets                               215,050       179,010
                                                                  
Property and equipment (net of accumulated
depreciation of $39,534 and $32,516 at December    49,926         33,632
31, 2012
and 2011, respectively)
Goodwill                                           205,653        192,970
Intangible assets (net of accumulated
amortization of $35,144 and $25,626 at December    38,201         40,977
31, 2012 and
2011, respectively)
Other assets                                       16,969         13,942
Investments related to deferred compensation       28,775         23,542
plan
Net deferred income taxes, less current portion    161,339       115,826
Total non-current assets                           500,863       420,889
Total assets                                       $  715,913    $   599,899
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                                   $  5,131       $   4,148
Accrued expenses                                   23,939         22,612
Accrued compensation and benefits                  54,315         41,518
Liability related to deferred compensation plan,   506            646
current portion
Deferred revenues                                  6,388          4,185
Due to noncontrolling unitholders, current         7,623         6,209
portion
Total current liabilities                          97,902        79,318
                                                                  
Long-term debt                                     22,500         —
Liability related to deferred compensation plan,   28,361         23,083
less current portion
Other long-term liabilities                        36,511         32,248
Due to noncontrolling unitholders, less current    140,458       101,557
portion
Total non-current liabilities                      227,830       156,888
Total liabilities                                  325,732       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; 42,420 and 31,646
shares                                             424            316
issued and outstanding at December 31, 2012 and
2011, respectively)
Class B common stock, par value $0.0001 per
share (50,000 shares authorized; zero and 10,488
shares                                             —              1
issued and outstanding at December 31, 2012 and
2011, respectively)
Additional paid-in capital                         352,858        252,572
Accumulated other comprehensive income             2,620          287
Retained earnings                                  34,279        25,631
Total stockholders' equity of Duff & Phelps        390,181        278,807
Corporation
Noncontrolling interest                            —             84,886
Total stockholders' equity                         390,181       363,693
Total liabilities and stockholders' equity         $  715,913    $   599,899
                                                                  


DUFF & PHELPS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

                                                Year Ended
                                                   December 31,  December 31,
                                                   2012           2011
Cash flows from operating activities:
Net income                                         $  26,301      $  29,729
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                      18,138         11,164
Equity-based compensation                          25,537         21,884
Bad debt expense                                   1,628          3,363
Net deferred income taxes                          6,432          4,811
Other                                              3,385          3,295
Changes in assets and liabilities
providing/(using) cash, net of acquired
balances:
Accounts receivable                                387            (19,821    )
Unbilled services                                  (1,015     )   (14,471    )
Prepaid expenses and other current assets          (2,591     )   1,399
Other assets                                       (4,339     )   (146       )
Accounts payable and accrued expenses              4,698          5,527
Accrued compensation and benefits                  18,363         4,379
Deferred revenues                                  2,069          1,756
Other liabilities                                  (2,916     )   (869       )
Due to noncontrolling unitholders from
payments pursuant to the Tax Receivable            (6,033     )   (5,536     )
Agreement
Net cash provided by operating activities          90,044        46,464     
                                                                  
Cash flows from investing activities:
Purchases of property and equipment                (23,706    )   (8,057     )
Business acquisitions, net of cash acquired        (13,614    )   (53,464    )
Purchases of investments                           (3,150     )   (6,200     )
Increase in restricted cash                        —             (6,400     )
Net cash used in investing activities              (40,470    )   (74,121    )
                                                                  
Cash flows from financing activities:
Borrowings under revolving line of credit          35,000         —
Repayments of revolving line of credit             (12,500    )   —
Net proceeds from sale of Class A common           49,244         —
stock
Redemption of noncontrolling unitholders           (58,972    )   —
Dividends                                          (13,683    )   (9,989     )
Repurchases of Class A common stock                (9,284     )   (28,891    )
Payments of contingent consideration related       (6,550     )   —
to acquisitions
Distributions and other payments to                (4,082     )   (8,447     )
noncontrolling unitholders
Payments of debt issuance costs                    —              (302       )
Proceeds from exercises of stock options           16             267
Excess tax benefit from equity-based               836           963        
compensation
Net cash used in financing activities              (19,975    )   (46,399    )
                                                                  
Effect of exchange rate on cash and cash           147           (286       )
equivalents
                                                                  
Net increase/(decrease) in cash and cash           29,746         (74,342    )
equivalents
Cash and cash equivalents at beginning of          38,986        113,328    
year
Cash and cash equivalents at end of period         $  68,732     $  38,986  



DUFF & PHELPS CORPORATION AND SUBSIDIARIES

ADJUSTED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

                                Quarter Ended December 31, 2012
                                   As Reported  Adjustments      Adjusted Pro
                                                                  Forma
Revenue                            $ 139,917     $  —             $  139,917
Reimbursable expenses              5,218        —               5,218      
Total revenue                      145,135      —               145,135    
                                                                  
Direct client service costs
Compensation and benefits          77,070        —                77,070
Other direct client service        4,476         —                4,476
costs
Acquisition retention              3,029         (3,029    ) ^(2) —
expenses
Reimbursable expenses              5,361        —               5,361      
                                   89,936       (3,029    )      86,907     
                                                                  
Operating expenses
Selling, general and               31,155        —                31,155
administrative
Depreciation and                   5,128         —                5,128
amortization
Restructuring charges              (28       )   28          ^(3) —
Acquisition, integration and       4,951        (4,951    ) ^(4) —          
corporate development costs
                                   41,206       (4,923    )      36,283     
                                                                  
Operating income                   13,993        7,952            21,945
                                                                  
Other expense/(income), net
Interest income                    (22       )   —                (22        )
Interest expense                   256           —                256
Other expense/(income)             (526      )   —               (526       )
                                   (292      )   —               (292       )
                                                                  
Income before income taxes         14,285        7,952            22,237
Provision for income taxes         7,630        1,197      ^(6) 8,827      
Net income                         6,655         6,755            13,410
Less: Net income
attributable to                    590          (590      )      —          
noncontrolling interest
Net income attributable to         $ 6,065      $  7,345        $  13,410  
Duff & Phelps Corporation
                                                                  
                                                                  
Pro forma fully exchanged, fully diluted shares outstanding       39,247     
                                                                  
Adjusted Pro Forma Net Income per fully exchanged, fully          $  0.34    
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)

                              Quarter Ended December 31, 2011
                                 As Reported  Adjustments       Adjusted Pro
                                                                  Forma
Revenue                          $ 118,980     $  —               $  118,980
Reimbursable expenses            5,573        —                 5,573      
Total revenue                    124,553      —                 124,553    
                                                                  
Direct client service
costs
Compensation and benefits        62,934        32          ^(1)  62,966
Other direct client              4,089         —                  4,089
service costs
Acquisition retention            1,024         (1,024    ) ^(2)  —
expenses
Reimbursable expenses            5,589        —                 5,589      
                                 73,636       (992      )        72,644     
                                                                  
Operating expenses
Selling, general and             27,709        2           ^(1)  27,711
administrative
Depreciation and                 3,230         —                  3,230
amortization
Restructuring charges            95            (95       ) ^(3)  —
Acquisition, integration
and corporate development        1,571        (1,571    ) ^(4)  —          
costs
                                 32,605       (1,664    )        30,941     
                                                                  
Operating income                 18,312        2,656              20,968
                                                                  
Other expense/(income),
net
Interest income                  (8        )   —                  (8         )
Interest expense                 97            —                  97
Other expense                    1,502        (1,500    ) ^(5)  2          
                                 1,591        (1,500    )        91         
                                                                  
Income before income taxes       16,721        4,156              20,877
Provision for income taxes       5,566        2,910      ^(6)  8,476      
Net income                       11,155        1,246              12,401
Less: Net income
attributable to                  4,110        (4,110    )        —          
noncontrolling interest
Net income attributable to       $ 7,045      $  5,356          $  12,401  
Duff & Phelps Corporation
                                                                  
                                                                  
Pro forma fully exchanged, fully diluted shares                   38,324     
outstanding
                                                                  
Adjusted Pro Forma Net Income per fully exchanged, fully          $  0.32    
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)

                              Year Ended December 31, 2012
                                 As Reported  Adjustments       Adjusted Pro
                                                                  Forma
Revenue                          $ 469,164     $  —               $  469,164
Reimbursable expenses            15,537       —                 15,537     
Total revenue                    484,701      —                 484,701    
                                                                  
Direct client service
costs
Compensation and benefits        256,089       43          ^(1)  256,132
Other direct client              13,119        —                  13,119
service costs
Acquisition retention            9,536         (9,536    ) ^(2)  —
expenses
Reimbursable expenses            15,734       —                 15,734     
                                 294,478      (9,493    )        284,985    
                                                                  
Operating expenses
Selling, general and             116,032       (65       ) ^(1)  115,967
administrative
Depreciation and                 18,138        —                  18,138
amortization
Restructuring charges            1,796         (1,796    ) ^(3)  —
Acquisition, integration
and corporate development        6,865        (6,865    ) ^(4)  —          
costs
                                 142,831      (8,726    )        134,105    
                                                                  
Operating income                 47,392        18,219             65,611
                                                                  
Other expense/(income),
net
Interest income                  (59       )   —                  (59        )
Interest expense                 748           —                  748
Other expense                    380          (376      ) ^(5)  4          
                                 1,069        (376      )        693        
                                                                  
Income before income taxes       46,323        18,595             64,918
Provision for income taxes       20,022       5,621      ^(6)  25,643     
Net income                       26,301        12,974             39,275
Less: Net income
attributable to                  4,037        (4,037    )        —          
noncontrolling interest
Net income attributable to       $ 22,264     $  17,011         $  39,275  
Duff & Phelps Corporation
                                                                  
                                                                  
Pro forma fully exchanged, fully diluted shares                   39,051     
outstanding
                                                                  
Adjusted Pro Forma Net Income per fully exchanged, fully          $  1.01    
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)

                              Year Ended December 31, 2011
                                 As Reported  Adjustments       Adjusted Pro
                                                                  Forma
Revenue                          $ 383,940     $  —               $  383,940
Reimbursable expenses            12,934       —                 12,934     
Total revenue                    396,874      —                 396,874    
                                                                  
Direct client service
costs
Compensation and benefits        209,606       273         ^(1)  209,879
Other direct client              9,048         —                  9,048
service costs
Acquisition retention            1,624         (1,624    ) ^(2)  —
expenses
Reimbursable expenses            13,073       —                 13,073     
                                 233,351      (1,351    )        232,000    
                                                                  
Operating expenses
Selling, general and             100,624       (480      ) ^(1)  100,144
administrative
Depreciation and                 11,164        —                  11,164
amortization
Restructuring charges            4,090         (4,090    ) ^(3)  —
Acquisition, integration
and corporate development        2,372        (2,372    ) ^(4)  —          
costs
                                 118,250      (6,942    )        111,308    
                                                                  
Operating income                 45,273        8,293              53,566
                                                                  
Other expense/(income),
net
Interest income                  (77       )   —                  (77        )
Interest expense                 275           —                  275
Other expense                    1,505        (1,500    ) ^(5)  5          
                                 1,703        (1,500    )        203        
                                                                  
Income before income taxes       43,570        9,793              53,363
Provision for income taxes       13,841       7,824      ^(6)  21,665     
Net income                       29,729        1,969              31,698
Less: Net income
attributable to                  11,115       (11,115   )        —          
noncontrolling interest
Net income attributable to       $ 18,614     $  13,084         $  31,698  
Duff & Phelps Corporation
                                                                  
                                                                  
Pro forma fully exchanged, fully diluted shares                   38,715     
outstanding
                                                                  
Adjusted Pro Forma Net Income per fully exchanged, fully          $  0.82    
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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