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Artio Global Investors Reports First Quarter 2013 Results



  Artio Global Investors Reports First Quarter 2013 Results

Business Wire

NEW YORK -- May 06, 2013

Artio Global Investors Inc. (NYSE: ART) (“Artio Global Investors”, together
with its subsidiaries, “Artio Global” or the “Company”) today reported its
results for the quarter ended March 31, 2013.

                              Financial  Update

  * Adjusted^1 net loss attributable to Artio Global Investors of $5.2
    million, or $0.09 per diluted share, for the first quarter of 2013 (GAAP
    net loss attributable to Artio Global Investors of $10.7 million, or $0.18
    per diluted share)
  * Assets under management of $11.5 billion as of March 31, 2013
  * Investment management fees of $15.3 million for the first quarter of 2013
  * Effective fee rate^2 of 48.0 basis points for the first quarter of 2013

First quarter 2013 adjusted results are presented to provide a more meaningful
comparison between periods and exclude the after-tax impact of certain items,
including, but not limited to, certain general and administrative costs
associated with the pending acquisition by Aberdeen Asset Management PLC (the
“acquisition”).

For the first quarter of 2013, adjusted net loss attributable to Artio Global
Investors was $5.2 million, or $0.09 per diluted share, a decrease from
adjusted net income attributable to Artio Global Investors of $1.5 million, or
$0.02 per diluted share, for the fourth quarter of 2012, and a decrease from
adjusted net income attributable to Artio Global Investors of $6.5 million, or
$0.11 per diluted share, for the first quarter of 2012.

On a GAAP basis, net loss attributable to Artio Global Investors for the first
quarter of 2013 was $10.7 million, or $0.18 per diluted share, as compared to
a net loss attributable to Artio Global Investors of $1.5 million, or $0.03
per diluted share, for the fourth quarter of 2012, and a decrease from net
income attributable to Artio Global Investors of $4.6 million, or $0.08 per
diluted share, for the first quarter of 2012.

The following tables compare the Company’s GAAP results and adjusted results.
See Exhibits 3 – 4 of this news release for a reconciliation of the Company’s
GAAP results to adjusted results.

                             
                            Three Months Ended
                           
                            (unaudited, in millions, except per share amounts)
                            Mar. 31,    Mar. 31,   %         Dec. 31,   %
                                                                       
                            2013        2012       Change    2012       Change
Revenue^3, GAAP             $15  .6     $43  .9    (64  %)   $20 .8     (25 %)
Operating income            ($11 .6)    $8   .2    NM        ($4 .1)    182 %
(loss), GAAP
Operating income            ($8  .2)    $10  .8    (176 %)   $0  .7     NM
(loss), adjusted
Net income (loss)
attributable to Artio       ($10 .7)    $4   .6    NM        ($1 .5)    NM
Global Investors,
GAAP
Net income (loss)
attributable to Artio       ($5  .2)    $6   .5    (180 %)   $1  .5     NM
Global Investors,
adjusted
Diluted EPS, GAAP           ($0  .18)   $0   .08   NM        ($0 .03)   NM
Diluted EPS, adjusted       ($0  .09)   $0   .11   (182 %)   $0  .02    NM
NM – Not Meaningful                                                      
                                                                         

First Quarter of 2013 Comparison with First Quarter of 2012

Assets Under Management and Net Client Cash Flows

Assets under management were $11.5 billion as of March 31, 2013, down $15.1
billion, or 57%, from $26.6 billion as of March 31, 2012, due primarily to net
client cash outflows.

Net client cash outflows for the first quarter of 2013 were $3.1 billion,
driven by net client cash outflows in our International Equity I and II
strategies.^4

Revenues and Other Operating Income

Revenues and other operating income for the first quarter of 2013 totaled
$15.6 million, down 64% from $43.9 million for the first quarter of 2012. The
decrease was driven primarily by lower investment management fees of $15.3
million for the first quarter of 2013, down 64% from $42.8 million for the
first quarter of 2012, due primarily to lower average assets under management
and a decrease in the effective fee rate.

Expenses

Employee Compensation and Benefits

For the first quarter of 2013, adjusted employee compensation and benefits
expenses were $14.6 million, down 27% from $19.9 million for the first quarter
of 2012. The decrease was due primarily to a reduction in incentive
compensation accruals and a decrease in costs associated with lower headcount.

GAAP employee compensation and benefits expenses for the first quarter of 2013
were $14.6 million, a decrease of 35% from $22.3 million for the first quarter
of 2012, due primarily to the reasons noted above and the elimination of the
amortization expense related to RSUs awarded at the time of the Company’s
Initial Public Offering.

Shareholder Servicing and Marketing Expenses

Shareholder servicing and marketing expenses for the first quarter of 2013
were $1.9 million, down 46% from $3.6 million for the first quarter of 2012,
driven primarily by lower platform costs, reflecting a decrease in average
assets under management in proprietary funds and a decline in marketing costs.

General and Administrative Expenses

Adjusted general and administrative expenses for the first quarter of 2013
were $7.3 million, a decrease of 24% from $9.6 million for the first quarter
of 2012, due primarily to a decrease in expenses associated with lower
headcount, and other cost saving initiatives.

GAAP general and administrative expenses for the first quarter of 2013 were
$10.7 million, an increase of 10% from $9.7 million for the first quarter of
2012, due primarily to legal fees related to the acquisition, partly offset by
the reasons noted above.

Non-operating Income

Adjusted non-operating income for the first quarter of 2013 was $1.1 million,
a decrease of 42% from $1.9 million for the first quarter of 2012, primarily
reflecting a decrease in gains from seed capital investments during the first
quarter of 2013.

GAAP non-operating income for the first quarter of 2013 was $1.7 million, a
decrease of 34% from $2.6 million for the first quarter of 2012, due primarily
to the reason noted above.

Income Taxes

For the first quarter of 2013, adjusted income tax benefit was $1.9 million,
as compared to adjusted income tax expense of $6.3 million in the first
quarter of 2012, due primarily to a decrease in taxable income.

GAAP income tax expense was $0.3 million for the first quarter of 2013,
compared to $5.3 million for the first quarter of 2012. The first quarter of
2013 included a valuation allowance taken on the Company’s deferred tax assets
recorded in the first quarter of 2013, and the non-deductibility of project
costs related to the acquisition.

First Quarter of 2013 Comparison with Fourth Quarter of 2012

Assets Under Management

Assets under management were $11.5 billion as of March 31, 2013, a decrease of
$2.8 billion, or 20%, from $14.3 billion as of December 31, 2012, due to net
client cash outflows, partly offset by market appreciation.

Revenues and Other Operating Income

Revenues and other operating income for the first quarter of 2013 totaled
$15.6 million, down 25% from $20.8 million for the fourth quarter of 2012,
driven primarily by lower investment management fees. Investment management
fees were $15.3 million for the first quarter of 2013, down 25% from $20.5
million for the fourth quarter of 2012, due primarily to a decrease in average
assets under management and a decline in the effective fee rate.

Expenses

Employee Compensation and Benefits

For the first quarter of 2013, adjusted employee compensation and benefits
expenses were $14.6 million, an increase of 39% from $10.4 million for the
fourth quarter of 2012, due primarily to an increase in accruals related to
the Company’s long-term incentive plan.

GAAP employee compensation and benefits expenses for the first quarter of 2013
were $14.6 million, a decrease of 4% from $15.1 million for the fourth quarter
of 2012, due primarily to the compensation charge associated with
organizational changes in the fourth quarter of 2012, partly offset by the
reason noted above.

Shareholder Servicing and Marketing Expenses

Shareholder servicing and marketing expenses for the first quarter of 2013
were $1.9 million, a decrease of 9% from $2.1 million for the fourth quarter
of 2012, due primarily to lower platform costs, reflecting a decrease in
average assets under management in proprietary funds.

General and Administrative Expenses

Adjusted general and administrative expenses were $7.3 million for the first
quarter of 2013, a decrease of 3% from $7.6 million for the fourth quarter of
2012, due primarily to lower expenses across most categories.

GAAP general and administrative expenses were $10.7 million for the first
quarter of 2013, an increase of 40% from $7.7 million for the fourth quarter
of 2012, due primarily to legal fees related to the acquisition, partly offset
by the reason noted above.

Non-operating Income

Adjusted non-operating income for the first quarter of 2013 was $1.1 million,
a decrease of 33% from $1.7 million for the fourth quarter of 2012, primarily
reflecting a decrease in gains from seed capital investments.

GAAP non-operating income for the first quarter of 2013 was $1.7 million, a
decrease of 37% from $2.7 million for the fourth quarter of 2012, due
primarily to the reason noted above.

Income Taxes

For the first quarter of 2013, adjusted income tax benefit was $1.9 million,
compared to adjusted income tax expense of $0.8 million in the fourth quarter
of 2012, due primarily to a decrease in taxable income.

GAAP income tax expense for the first quarter of 2013 was $0.3 million,
compared to GAAP income tax benefit of $0.5 million for the fourth quarter of
2012. The change was due primarily to a valuation allowance taken on the
Company’s deferred tax assets recorded in the first quarter of 2013, a
write-off of deferred tax assets associated with the vesting of equity awards
at a price below their grant date fair value in the first quarter of 2013 and
the non-deductibility of project costs related to the acquisition, partly
offset by the reason noted above.

Liquidity and Capital

As of March 31, 2013, the Company had cash (excluding amounts held in the
Company’s Consolidated Investment Products) of $66.6 million, seed capital
investments^5 in our strategies of $45.8 million and investments held for
deferred compensation of $10.2 million.

Total stockholders’ equity on the Statement of Financial Position was $133.4
million as of March 31, 2013, compared to $141.0 million as of December 31,
2012.

Share Repurchase

No shares were repurchased during the first quarter of 2013. As of March 31,
2013, the Company retained authorization from the Board of Directors to
repurchase 2,226,061 shares of its Class A common stock through December 31,
2013. Pursuant to the terms of the merger agreement with Aberdeen Asset
Management PLC (“Aberdeen”) , the Company may not repurchase shares of its
Class A common stock without consent from Aberdeen, except in connection with
the terms of share-based payments.

Shares

As of March 31, 2013, there were 60,548,105 total shares of Class A common
stock outstanding.

                                   * * * *

About Us

Artio Global Investors Inc. is the indirect holding company of Artio Global
Management LLC (“Artio Global”), a registered investment adviser that actively
invests in global fixed income and equity markets, primarily for institutional
and intermediary clients.

Headquartered in New York City, Artio Global offers a select group of
investment strategies, including High Grade Fixed Income, High Yield,
International Equity and Global Equity. Access to these strategies is offered
through a variety of investment vehicles, including separate accounts,
commingled funds and mutual funds.

For more information, please visit www.artioglobal.com.

                                   * * * *

Cautionary Note Regarding Forward-Looking Statements

In addition to historical information, this news release may contain
forward‐looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements regarding  the intrinsic
value of our common stock, investor behavior, net client cash flows, our
compensation costs and adjusted compensation ratio, use of our free cash flow
and declaration of dividends. These forward‐looking statements are based on
the Company’s current assumptions, expectations and projections about future
events. Words like “believe”, “anticipate”, “intend”, “estimate”, “expect”,
“project”, and similar expressions are used to identify forward‐looking
statements, although not all forward-looking statements contain these words.
These forward‐looking statements discuss matters that necessarily involve a
number of risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by the forward‐looking statements.

Among the factors that could cause actual results to differ from those
expressed or implied by a forward‐looking statement are those described in the
sections entitled “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in the Company’s report on Form
10‐K (File No. 001‐34457) filed with the Securities and Exchange Commission on
March 4, 2013. Other unknown or unpredictable factors also could have material
adverse effects on the Company’s future results, performance, or achievements.

Any forward‐looking statements in this news release speak only as of the date
of this news release. The Company is not under any obligation and does not
intend to make publicly available any update or other revisions to any
forward‐looking statements to reflect circumstances existing after the date of
this news release or to reflect the occurrence of future events even if
experience or future events make it clear that any expected results expressed
or implied by those forward‐looking statements will not be realized.

                                   * * * *

This news release is not sales material, nor is it an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be any sale of
securities in any state or jurisdiction in which any such offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.

^1 See Exhibits 3 - 4 of this news release for a reconciliation of the
Company’s U.S. GAAP results to its non-GAAP adjusted results (“adjusted”).

^2 Effective fee rate is defined as annualized investment management fees
(based on the number of days in the period) divided by the average assets
under management for the period.

^3 Represents total revenues and other operating income.

^4 See Exhibit 8 for more information on “Assets under Management by
Investment Strategy”.

^5 See Exhibit 6 for more information.

                                                                                        
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                                           Exhibit
                                                                                       - 1
Consolidated Statements of Operations
(unaudited, in thousands, except share and per share amounts or as noted)
                                                                            
                      Three Months Ended                                     % Change From
                                                                             Mar.      Dec.
                      Mar. 31, 2013     Mar. 31, 2012    Dec. 31, 2012       31,       31,
                                                                             2012      2012
Revenues and
other operating
income:
Investment            $ 15,336          $ 42,771         $ 20,484            (64  %)   (25  %)
management fees
Net gains
(losses) on
funds held for          299               1,160            315               (74  %)   (5   %)
deferred
compensation
Foreign                 (39        )      (1         )     (10        )      NM        NM
currency losses
Total revenues
and other               15,596            43,930           20,789            (64  %)   (25  %)
operating
income
                                                                                        
Expenses:
Employee
compensation            14,551            22,334           15,094            (35  %)   (4   %)
and benefits
Shareholder
servicing and           1,941             3,624            2,135             (46  %)   (9   %)
marketing
General and             10,718            9,738            7,673             10   %    40   %
administrative
Total expenses          27,210            35,696           24,902            (24  %)   9    %
                                                                                        
Operating
income (loss)           (11,614    )      8,234            (4,113     )      NM        182  %
before income
tax expense
                                                                                        
Non-operating           1,681             2,556            2,670             (34  %)   (37  %)
income
Income (loss)
before income           (9,933     )      10,790           (1,443     )      (192 %)   NM
tax expense
                                                                                        
Income taxes            270               5,322            (522       )      (95  %)   152  %
Net income              (10,203    )      5,468            (921       )      NM        NM
(loss)
                                                                                        
Net income
attributable to
non-controlling         -                 190              -                 (100 %)   NM
interests in
AGH ^(1)
Net income
attributable to
non-controlling         539               678              617               (21  %)   (13  %)
interests in
CIP ^(2)
Net income
(loss)
attributable to       $ (10,742    )    $ 4,600          $ (1,538     )      NM        NM
Artio Global
Investors
                                                                                        
Net income
(loss) per
share
attributable to
Artio Global
Investors:
Basic                 $ (0.18      )    $ 0.08           $ (0.03      )      NM        NM
Diluted               $ (0.18      )    $ 0.08           $ (0.03      )      NM        NM
                                                                                        
Weighted
average shares
used in net
income (loss)
per share
attributable to
Artio Global
Investors:
Basic                   60,349,980        58,192,573       59,994,425        4    %    1    %
Diluted ^(3)            60,349,980        58,474,697       59,994,425        3    %    1    %
                                                                                        
NM - Not
Meaningful
                                                                                        
                                                                                        
Assets under
management ($         $ 11,513          $ 26,645         $ 14,332            (57  %)   (20  %)
in millions)
                                                                                        
Average assets
under
management ($         $ 12,968          $ 28,551         $ 15,932            (55  %)   (19  %)
in millions)
^(4)
                                                                                        
Effective fee
rate (basis             48.0              60.3             51.1
points) ^(5)
                                                                                        
Effective tax           -2.7       %      49.3       %     36.2       %
rate
                                                                                        
Employee
compensation
and benefits as
a percentage of
total
revenues and
other operating         93.3       %      50.8       %     72.6       %
income ^(6)
                                                                                        
Operating               (74.5      %)     18.7       %     (19.8      %)
margin ^(7)
                                                                                        

1.   Represents non-controlling interests in Artio Global Holdings LLC.
2.   Represents non-controlling interests in the Consolidated Investment
     Products.
3.   The effect of the assumed conversion of the Principals' New Class A Units
     was antidilutive for the three months ended Mar. 31, 2012.
     Average assets under management for a period is computed on the
4.   beginning-of-first-month balance and all end-of-month balances in the
     period.
     Effective fee rate is defined as annualized investment management fees
5.   (based on the number of days in the period) divided by the average assets
     under management for the period.
6.   Calculated as employee compensation and benefits expense divided by total
     revenues and other operating income.
7.   Calculated as operating income before income tax expense divided by total
     revenues and other operating income.
      

                                                                            
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                                           Exhibit
                                                                                       - 2
Non-GAAP Adjusted Consolidated Statements of Operations
(unaudited, in thousands, except share and per share amounts or as noted)
                                                                                        
                        Three Months Ended                                   % Change From
                                                                             Mar.      Dec.
                        Mar. 31, 2013    Mar. 31, 2012    Dec. 31, 2012      31,       31,
                                                                             2012      2012
Revenues and
other operating
income:
Investment              $ 15,336         $ 42,771         $ 20,484           (64  %)   (25  %)
management fees
Net gains
(losses) on
funds held for            299              1,160            315              (74  %)   (5   %)
deferred
compensation
Foreign                   (39        )     (1         )     (10        )     NM        NM
currency losses
Total revenues
and other                 15,596           43,930           20,789           (64  %)   (25  %)
operating
income
                                                                                        
Expenses:
Employee
compensation              14,551           19,912           10,438           (27  %)   39   %
and benefits
Shareholder
servicing and             1,941            3,624            2,135            (46  %)   (9   %)
marketing
General and               7,322            9,616            7,551            (24  %)   (3   %)
administrative
Total expenses            23,814           33,152           20,124           (28  %)   18   %
                                                                                        
Operating
income (loss)             (8,218     )     10,778           665              (176 %)   NM
before income
tax expense
                                                                                        
Non-operating             1,137            1,949            1,693            (42  %)   (33  %)
income
Income (loss)
before income             (7,081     )     12,727           2,358            (156 %)   NM
tax expense
                                                                                        
Income taxes              (1,915     )     6,266            830              (131 %)   NM
Net income                (5,166     )     6,461            1,528            (180 %)   NM
(loss)
                                                                                        
Net income
attributable to
non-controlling           -                -                -                NM        NM
interests in
AGH ^(1)
Net income
attributable to
non-controlling           -                -                -                NM        NM
interests in
CIP ^(2)
Net income
(loss)
attributable to         $ (5,166     )   $ 6,461          $ 1,528            (180 %)   NM
Artio Global
Investors
                                                                                        
Net income
(loss) per
diluted share           $ (0.09      )   $ 0.11           $ 0.02             (182 %)   NM
attributable to
Artio Global
Investors
                                                                                        
Weighted
average diluted
shares used in
net income
(loss) per
share
attributable to
Artio Global              60,349,980       59,674,697       61,151,288       1    %    (1   %)
Investors
                                                                                        
NM - Not
Meaningful
                                                                                        
                                                                                        
Assets under
management ($           $ 11,513         $ 26,645         $ 14,332           (57  %)   (20  %)
in millions)
                                                                                        
Average assets
under
management ($           $ 12,968         $ 28,551         $ 15,932           (55  %)   (19  %)
in millions) ^
(3)
                                                                                        
Effective fee
rate (basis               48.0             60.3             51.1
points) ^(4)
                                                                                        
Effective tax             27.0       %     49.2       %     35.2       %
rate
                                                                                        
Employee
compensation
and benefits as
a percentage of
total
revenues and
other operating           93.3       %     45.3       %     50.2       %
income ^(5)
                                                                                        
Operating                 -52.7      %     24.5       %     3.2        %
margin ^(6)
                                                                                        

1.   Represents non-controlling interests in Artio Global Holdings LLC.
2.   Represents non-controlling interests in Consolidated Investment Products.
     Average assets under management for a period is computed on the
3.   beginning-of-first-month balance and all end-of-month balances in the
     period.
     Effective fee rate is defined as annualized investment management fees
4.   (based on the number of days in the period) divided by the average assets
     under management for the period.
5.   Calculated as employee compensation and benefits expense divided by total
     revenues and other operating income.
6.   Calculated as operating income before income tax expense divided by total
     revenues and other operating income.
      

                                                                                                                                                                      
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                                                                                                                         Exhibit - 3
Reconciliation of GAAP to Non-GAAP Adjusted Consolidated Statements of Operations
(unaudited, in thousands, except share and per share amounts)
                                                                                                                                                  
See Exhibit 4 for notes describing adjustments set forth below.
                                                                                                                                                                      
                                                                                                                                                                      
                      Three Months Ended Mar. 31, 2013                    Three Months Ended Mar. 31, 2012                        Three Months Ended Dec. 31, 2012
                      GAAP             Adjustments     Adjusted           GAAP             Adjustments         Adjusted           GAAP             Adjustments       Adjusted
Revenues and
other operating
income:
Investment            $ 15,336         $  -            $ 15,336           $ 42,771         $ -                 $ 42,771           $ 20,484         $ -               $ 20,484
management fees
Net gains
(losses) on
funds held for          299               -              299                1,160            -                   1,160              315              -                 315
deferred
compensation
Foreign                 (39        )      -              (39        )       (1         )     -                   (1         )       (10        )     -                 (10        )
currency losses
Total revenues
and other               15,596            -              15,596             43,930           -                   43,930             20,789           -                 20,789      
operating
income
                                                                                                                                                                      
Expenses:
Employee
compensation            14,551            -              14,551             22,334           (2,422    ) (a,b)   19,912             15,094           (4,656    ) (b)   10,438
and benefits
Shareholder
servicing and           1,941             -              1,941              3,624            -                   3,624              2,135            -                 2,135
marketing
General and                                                                                                                                                      (h
administrative          10,718            (3,396 ) (k)   7,322              9,738            (122      ) (l)     9,616              7,673            (122      ) ,     7,551       
                                                                                                                                                                 i)
Total expenses          27,210            (3,396 )       23,814             35,696           (2,544    )         33,152             24,902           (4,778    )       20,124      
                                                                                                                                                                      
Operating
income (loss)           (11,614    )      3,396          (8,218     )       8,234            2,544               10,778             (4,113     )     4,778             665
before income
tax expense
                                                                                                                                                                      
Non-operating                                      (g                                                                                                            (g
income                  1,681             (544   ) ,     1,137              2,556            (607      ) (g,l)   1,949              2,670            (977      ) ,     1,693       
                                                   j)                                                                                                            j)
Income (loss)
before income           (9,933     )      2,852          (7,081     )       10,790           1,937               12,727             (1,443     )     3,801             2,358
tax expense
                                                                                                                                                                      
Income taxes            270               (2,185 ) (c)   (1,915     )       5,322            944         (c)     6,266              (522       )     1,352       (c)   830         
Net income              (10,203    )      5,037          (5,166     )       5,468            993                 6,461              (921       )     2,449             1,528
(loss)
                                                                                                                                                                      
Net income
attributable to
non-controlling         -                 -              -                  190              (190      ) (d)     -                  -                -                 -
interests in
AGH
Net income
attributable to
non-controlling         539               (539   ) (g)   -                  678              (678      ) (g)     -                  617              (617      ) (g)   -           
interests in
CIP
Net income
(loss)
attributable to       $ (10,742    )   $  5,576        $ (5,166     )     $ 4,600          $ 1,861             $ 6,461            $ (1,538     )   $ 3,066           $ 1,528       
Artio Global
Investors
                                                                                                                                                                      
                                                                                                                                                                      
Net income
(loss) per
diluted share
attributable to
Artio Global
Investors             $ (0.18      )                   $ (0.09      )     $ 0.08                               $ 0.11             $ (0.03      )                     $ 0.02
                                                                                                                                                                      
Weighted
average diluted
shares used in
net income
(loss) per
share
attributable to         60,349,980        —              60,349,980         58,474,697       1,200,000   (e)     59,674,697         59,994,425       1,156,863   (f)   61,151,288
Artio Global
Investors
                                                                                                                                                                                   

                                                                    
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                       Exhibit - 4
Notes to Reconciliation of GAAP to Non-GAAP Adjusted Consolidated
Statements of Operations
     
                                                                    
Management believes the Non-GAAP adjustments set forth below
provide more meaningful comparisons between periods. Additional
information on the reorganization of the Company's ownership
structure and the related non-recurring items are discussed in the
Company's prospectus dated September 23, 2009.
                                                                    
                                                                    
      Adjustments to exclude the amortization expense associated
(a)   with the RSUs awarded at the time of the IPO, as the
      granting of the awards was one-time in nature.
       
                                                                    
(b)   Adjustments to exclude certain compensation costs associated
      with organizational changes.
                                                                    
                                                                    
      The adjustment to income taxes for the three months ended
      Mar 31, 2012 reflect the tax effect of the assumed full
      exchange of the Principals' non-controlling interests for
(c)   Class A common stock on the first day of the respective
      period, since prior to such exchange, income tax expense
      excludes the U.S. federal and state taxes for the income
      attributable to the Principals.
       
       
      Adjustments to reflect the tax effects of excluding the
      amortization expense associated with the RSUs awarded at the
      time of the IPO and the tax effects of excluding costs
      associated with organizational changes.
       
                                                                    
      Adjustments also exclude a valuation allowance on the
      Company's deferred tax assets, the tax effect of excluding
      the offshore fund expense and costs associated with the
      wind-down of the Company's US Equity strategies and
      reductions in infrastructure requirements.
       
                                                                    
      Adjustment to eliminate the Principals' non-controlling
(d)   interests which are assumed to be exchanged for Class A
      common stock on the first day of the
      respective period.
                                                                    
                                                                    
      Adjusted diluted shares outstanding, for the three months
      ended Mar. 31, 2012, assumes the Principals have fully
(e)   exchanged their New Class A Units in Artio Global Holdings
      LLC for an equivalent amount of shares of the Company's
      Class A common stock.
       
                                                                    
      Adjusted diluted shares outstanding for the three months
(f)   ended Dec. 31, 2012, include the dilutive impact of the
      unvested RSUs which are anti-dilutive under GAAP.
       
                                                                    
      Adjustments to eliminate third-party investors' economic
      interests in the Consolidated Investment Products from both
      Net income (loss) attributable to non-controlling interests
(g)   in the Consolidated Investment Products and Non-operating
      income (loss). Management believes these adjustments provide
      a more useful measure for comparing Non-operating income
      between periods.
       
       
(h)   Adjustment to eliminate the offshore fund expense.
                                                                    
                                                                    
      Adjustment to eliminate costs associated with the wind-down
(i)   of the Company's US Equity strategies and reductions in
      infrastructure requirements.
                                                                    
                                                                    
      Adjustment to eliminate non-operating income related to a
(j)   reduction in amounts payable under the tax receivable
      agreement.
                                                                    
                                                                    
(k)   Adjustment to exclude costs related to the acquisition by
      Aberdeen Asset Management PLC.
                                                                    
      Adjustments to eliminate the one-time write-off of
(l)   unamortized debt issuance costs in connection with the early
      repayment of the Company's term debt.

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                            Exhibit
                                                                        - 5
Reconciliation of Net Income (loss) to Adjusted EBITDA
(unaudited, in thousands)
                                                             
                   Three Months Ended                         % Change From
                   Mar. 31,       Mar. 31,     Dec. 31,       Mar.      Dec.
                   2013           2012         2012           31,       31,
                                                              2012      2012
                                                                         
Net Income         $ (10,203 )    $ 5,468      $ (921   )
(loss)
Add: Interest,
taxes,
depreciation         3,301          9,889        582     
and
amortization
EBITDA             $ (6,902  )    $ 15,357     $ (339   )     (145 %)   NM
                                                                         
Add: Other
non-operating        (1,000  )      (2,057 )     (2,778 )
(income) loss
Add:
Compensation
adjustments
associated           -              213          3,926
with
organizational
changes
Add:
Acquisition          3,396          -            -
related costs
Add: General &
Administrative       -              122          122     
adjustments
Adjusted           $ (4,506  )    $ 13,635     $ 931          (133 %)   NM
EBITDA
                                                                         
Adjusted
EBITDA margin        (28.9   %)     31.0   %     4.5    %
^1
                                                                         
                                                                         
1. Calculated as Adjusted EBITDA divided by total revenues and other operating
income.
 

                                                                      
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                         Exhibit - 6
Condensed Consolidating Statement of Financial Position as of March
31, 2013
(unaudited, in thousands)
                                                      
                                                                     Artio Global
                                        Consolidated                 Investors
                                                                     Inc.
                        Before          Investment                   and
                                                                     Subsidiaries
                        Consolidation   Products       Eliminations  Consolidated
                        ^(1)
                                                                      
Assets:
Cash                    $  66,641       $   1,933      $  -          $ 68,574
Investments, at
fair value:
Artio Global
funds held for             10,186           -             -            10,186
deferred
compensation
Seed money                 -                49,810        -            49,810
investments
Investments in
the
Consolidated               45,765           -             (45,765 )    -
Investment
Products
Fees receivable
and accrued
fees, net of               9,322            -             -            9,322
allowance for
doubtful
accounts
Deferred taxes,
net of
valuation                  9,798            -             -            9,798
allowance of
$180,486
Income taxes               15,268           -             -            15,268
receivable
Other Assets               6,894            16,783        -            23,677    
Total Assets            $  163,874      $   68,526     $  (45,765 )  $ 186,635   
                                                                      
Liabilities and
Equity:
Liability under
total return            $  -            $   2,921      $  -          $ 2,921
swap
Investments
sold, not yet
purchased by
the
Consolidated
Investment
Products, at               -                2,062         -            2,062
fair value
Accrued
compensation               11,123           -             -            11,123
and benefits
Accounts
payable and                7,066            -             -            7,066
accrued
expenses
Accrued income             1,443            -             -            1,443
taxes payable
Due under tax
receivable                 9,985            -             -            9,985
agreement
Other                      857              5,434         -            6,291     
Liabilities
Total                      30,474           10,417        -            40,891    
liabilities
                                                                      
Members' equity            -                33,652        (33,652 )    -
Net asset value            -                24,457        (24,457 )    -
Common stock               60               -             -            60
Additional                 665,633          -             -            665,633
paid-in capital
Accumulated                (532,293 )       -             -            (532,293 )
deficit
Total
stockholders'              133,400          58,109        (58,109 )    133,400
equity
Non-controlling            -                -             12,344       12,344    
interests
Total equity               133,400          58,109        (45,765 )    145,744   
Total
liabilities and         $  163,874      $   68,526     $  (45,765 )  $ 186,635   
equity
                                                                      
                                                                      
                                                                      
Total Cash,
Investments
owned by the
Consolidated
Investment
Products,
and seed money          $  112,406
investments

      
     Represents Artio Global Investors Inc. and subsidiaries with the
1.   investment in the Consolidated Investment Products accounted for under
     the equity method.
      

                                                             
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                           Exhibit
                                                                       - 7
Assets under Management by Investment Vehicle
(unaudited, in millions)
                                                                        
                     Three Months Ended                       % Change From
                     Mar. 31,     Mar. 31,     Dec. 31,       Mar.     Dec.
                     2013         2012         2012           31,      31,
                                                              2012     2012
                                                                        
Proprietary
Funds
Beginning
assets under         $ 7,202      $ 13,366     $ 8,920        (46  %)  (19  %)
management
Gross client           533          1,235        472          (57  %)  13   %
cash inflows
Gross client           (1,666 )     (2,712 )     (2,458 )     39   %   32   %
cash outflows
Net client             (1,133 )     (1,477 )     (1,986 )     23   %   43   %
cash flows
Transfers
between                -            52           -            (100 %)  NM
investment
vehicles
Total client           (1,133 )     (1,425 )     (1,986 )     20   %   43   %
cash flows
Market
appreciation           171          921          268          (81  %)  (36  %)
(depreciation)
Ending assets
under                  6,240        12,862       7,202        (51  %)  (13  %)
management
                                                                        
                                                                        
Institutional
Commingled
Funds
Beginning
assets under         $ 1,793        4,912        2,598        (63  %)  (31  %)
management
Gross client           1            32           10           (97  %)  (90  %)
cash inflows
Gross client           (796   )     (1,107 )     (896   )     28   %   11   %
cash outflows
Net client             (795   )     (1,075 )     (886   )     26   %   10   %
cash flows
Transfers
between                (4     )     13           (8     )     (131 %)  50   %
investment
vehicles
Total client           (799   )     (1,062 )     (894   )     25   %   11   %
cash flows
Market
appreciation           66           496          89           (87  %)  (26  %)
(depreciation)
Ending assets
under                  1,060        4,346        1,793        (76  %)  (41  %)
management
                                                                        
                                                                        
Separate
Accounts
Beginning
assets under         $ 4,496        9,799        5,194        (54  %)  (13  %)
management
Gross client           78           101          48           (23  %)  63   %
cash inflows
Gross client           (1,184 )     (2,694 )     (854   )     56   %   (39  %)
cash outflows
Net client             (1,106 )     (2,593 )     (806   )     57   %   (37  %)
cash flows
Transfers
between                4            (65    )     8            106  %   (50  %)
investment
vehicles
Total client           (1,102 )     (2,658 )     (798   )     59   %   (38  %)
cash flows
Market
appreciation           84           717          100          (88  %)  (16  %)
(depreciation)
Ending assets
under                  3,478        7,858        4,496        (56  %)  (23  %)
management
                                                                        
                                                                        
Sub-advisory
Accounts
Beginning
assets under         $ 841          2,282        955          (63  %)  (12  %)
management
Gross client           80           39           3            105  %   NM
cash inflows
Gross client           (192   )     (889   )     (152   )     78   %   (26  %)
cash outflows
Net client             (112   )     (850   )     (149   )     87   %   25   %
cash flows
Transfers
between                -            -            -            NM       NM
investment
vehicles
Total client           (112   )     (850   )     (149   )     87   %   25   %
cash flows
Market
appreciation           6            147          35           (96  %)  (83  %)
(depreciation)
Ending assets
under                  735          1,579        841          (53  %)  (13  %)
management
                                                                        
                                                                        
Total Assets
under
Management
Beginning
assets under           14,332       30,359       17,667       (53  %)  (19  %)
management
Gross client           692          1,407        533          (51  %)  30   %
cash inflows
Gross client           (3,838 )     (7,402 )     (4,360 )     48   %   12   %
cash outflows
Net client             (3,146 )     (5,995 )     (3,827 )     48   %   18   %
cash flows
Transfers
between                -            -            -            NM       NM
investment
vehicles
Total client           (3,146 )     (5,995 )     (3,827 )     48   %   18   %
cash flows
Market
appreciation           327          2,281        492          (86  %)  (34  %)
(depreciation)
Ending assets
under                $ 11,513     $ 26,645     $ 14,332       (57  %)  (20  %)
management
                                                                        

                                                                          
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                             Exhibit
                                                                         - 8
Assets under Management by Investment Strategy
(unaudited, in millions)
                                                                       
                     Three Months Ended                       % Change From
                     Mar. 31,     Mar. 31,     Dec. 31,       Mar.       Dec.
                     2013         2012         2012           31,        31,
                                                              2012       2012
                                                                          
International
Equity I
Beginning
assets under         $ 2,236      $ 8,680      $ 3,746        (74  %)    (40  %)
management
Gross client           26           131          22           (80  %)    18   %
cash inflows
Gross client           (1,089 )     (3,108 )     (1,702 )     65   %     36   %
cash outflows
Net client             (1,063 )     (2,977 )     (1,680 )     64   %     37   %
cash flows
Transfers
between                -            -            -            NM         NM
investment
strategies
Total client           (1,063 )     (2,977 )     (1,680 )     64   %     37   %
cash flows
Market
appreciation           99           767          170          (87  %)    (42  %)
(depreciation)
Ending assets
under                  1,272        6,470        2,236        (80  %)    (43  %)
management
                                                                          
International
Equity II
Beginning
assets under         $ 2,158        10,897       3,090        (80  %)    (30  %)
management
Gross client           60           191          40           (69  %)    50   %
cash inflows
Gross client           (1,348 )     (3,621 )     (1,124 )     63   %     (20  %)
cash outflows
Net client             (1,288 )     (3,430 )     (1,084 )     62   %     (19  %)
cash flows
Transfers
between                -            -            -            NM         NM
investment
strategies
Total client           (1,288 )     (3,430 )     (1,084 )     62   %     (19  %)
cash flows
Market
appreciation           91           1,038        152          (91  %)    (40  %)
(depreciation)
Ending assets
under                  961          8,505        2,158        (89  %)    (55  %)
management
                                                                          
High Grade
Fixed Income
Beginning
assets under         $ 5,618        5,503        5,676        2    %     (1   %)
management
Gross client           284          332          240          (14  %)    18   %
cash inflows
Gross client           (544   )     (204   )     (335   )     (167 %)    (62  %)
cash outflows
Net client             (260   )     128          (95    )     NM         (174 %)
cash flows
Transfers
between                7            -            12           NM         (42  %)
investment
strategies
Total client           (253   )     128          (83    )     NM         NM
cash flows
Market
appreciation           19           83           25           (77  %)    (24  %)
(depreciation)
Ending assets
under                  5,384        5,714        5,618        (6   %)    (4   %)
management
                                                                          
High Yield
Beginning
assets under         $ 4,193        4,295        4,604        (2   %)    (9   %)
management
Gross client           321          730          218          (56  %)    47   %
cash inflows
Gross client           (790   )     (317   )     (762   )     (149 %)    (4   %)
cash outflows
Net client             (469   )     413          (544   )     NM         14   %
cash flows
Transfers
between                (7     )     -            (12    )     NM         42   %
investment
strategies
Total client           (476   )     413          (556   )     NM         14   %
cash flows
Market
appreciation           111          259          145          (57  %)    (23  %)
(depreciation)
Ending assets
under                  3,828        4,967        4,193        (23  %)    (9   %)
management
                                                                          
Global Equity
Beginning
assets under         $ 110          721          467          (85  %)    (76  %)
management
Gross client           1            1            2            0    %     (50  %)
cash inflows
Gross client           (66    )     (137   )     (359   )     52   %     82   %
cash outflows
Net client             (65    )     (136   )     (357   )     52   %     82   %
cash flows
Transfers
between                -            -            -            NM         NM
investment
strategies
Total client           (65    )     (136   )     (357   )     52   %     82   %
cash flows
Market
appreciation           7            93           -            (92  %)    NM
(depreciation)
Ending assets
under                  52           678          110          (92  %)    (53  %)
management
                                                                               

                                                                        
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                           Exhibit
                                                                       - 8
Assets under Management by Investment Strategy
(unaudited, in millions)
                                                                     
                       Three Months Ended                   % Change From
                       Mar. 31,     Mar. 31,   Dec. 31,     Mar.       Dec.
                       2013         2012       2012         31,        31,
                                                            2012       2012
                                                                        
US Equity
  Beginning
  assets under         $ -          178        29           (100 %)    (100 %)
  management
  Gross client           -          21         10           (100 %)    (100 %)
  cash inflows
  Gross client           -          (11    )   (38    )     100  %     100  %
  cash outflows
  Net client             -          10         (28    )     (100 %)    100  %
  cash flows
  Transfers
  between                -          -          -            NM         NM
  investment
  strategies
  Total client           -          10         (28    )     (100 %)    100  %
  cash flows
  Market
  appreciation           -          32         (1     )     (100 %)    100  %
  (depreciation)
  Ending assets
  under                  -          220        -            (100 %)    NM
  management
                                                                        
Other ^ (1)
  Beginning
  assets under         $ 17         85         55           (80  %)    (69  %)
  management
  Gross client           -          1          1            (100 %)    (100 %)
  cash inflows
  Gross client           (1     )   (4     )   (40    )     75   %     98   %
  cash outflows
  Net client             (1     )   (3     )   (39    )     67   %     97   %
  cash flows
  Transfers
  between                -          -          -            NM         NM
  investment
  strategies
  Total client           (1     )   (3     )   (39    )     67   %     97   %
  cash flows
  Market
  appreciation           -          9          1            (100 %)    (100 %)
  (depreciation)
  Ending assets
  under                  16         91         17           (82  %)    (6   %)
  management
                                                                        
Total Assets
under Management
  Beginning
  assets under           14,332     30,359     17,667       (53  %)    (19  %)
  management
  Gross client           692        1,407      533          (51  %)    30   %
  cash inflows
  Gross client           (3,838 )   (7,402 )   (4,360 )     48   %     12   %
  cash outflows
  Net client             (3,146 )   (5,995 )   (3,827 )     48   %     18   %
  cash flows
  Transfers
  between                -          -          -            NM         NM
  investment
  strategies
  Total client           (3,146 )   (5,995 )   (3,827 )     48   %     18   %
  cash flows
  Market
  appreciation           327        2,281      492          (86  %)    (34  %)
  (depreciation)
  Ending assets
  under                  11,513     26,645     14,332       (57  %)    (20  %)
  management
                                                                        

1.   Other includes the Local Emerging Markets Debt Fund, Global Credit
     Opportunities Fund, Other International Equity and Other strategies.
      

                                                                                                                                   
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES                                                                                      Exhibit
                                                                                                                                  - 9
Mutual Fund Performance Data ^ (1)
                                                                                                                          
                                                                                                                                   
                  Morningstar Ratings /
                  Funds in Total Universe (# of        Lipper Percentile Rankings (PR) / Funds in Total Universe (# of Funds)
                  Funds)
                                                       YTD          1-Year       3-Year        5-Year        10-Year
                           # of                             # of         # of          # of          # of          # of
Fund              Rating   Funds   Category            PR   Funds   PR   Funds   PR    Funds   PR    Funds   PR    Funds   Classification
                                                                                                                                   
Artio                                                                                                                      International
International     2        835     Foreign Large       49   315     79   303     98    270     100   212     81    98      Multi-Cap
Equity Fund,                       Blend                                                                                   Growth
Class A
Artio                                                                                                                      International
International     2        835     Foreign Large       47   315     75   303     97    270     99    212     75    98      Multi-Cap
Equity Fund,                       Blend                                                                                   Growth
Class I
                                                                                                                                   
Artio                                                                                                                      International
International     2        835     Foreign Large       51   315     57   303     95    270     94    212     N/A   N/A     Multi-Cap
Equity II                          Blend                                                                                   Growth
Fund, Class A
Artio                                                                                                                      International
International     2        835     Foreign Large       50   315     54   303     93    270     92    212     N/A   N/A     Multi-Cap
Equity II                          Blend                                                                                   Growth
Fund, Class I
                                                                                                                                   
Artio Select                                                                                                               Global
Opportunities     2        1,075   World Stock         78   219     83   209     90    143     79    83      N/A   N/A     Multi-Cap
Fund, Class A                                                                                                              Growth
Artio Select                                                                                                               Global
Opportunities     2        1,075   World Stock         76   219     83   209     89    143     75    83      N/A   N/A     Multi-Cap
Fund, Class I                                                                                                              Growth
                                                                                                                                   
Artio Global                                                                                                               High
High Income       3        682     High Yield Bond     21   582     35   523     92    436     39    384     12    264     Yield
Fund, Class A
Artio Global                                                                                                               High
High Income       4        682     High Yield Bond     18   582     31   523     88    436     30    384     7     264     Yield
Fund, Class I
                                                                                                                                   
Artio Total                        Intermediate-Term                                                                       Intermediate
Return Bond       4        1,265   Bond                60   626     67   594     36    536     47    457     16    312     Investment
Fund, Class A                                                                                                              Grade Debt
Artio Total                        Intermediate-Term                                                                       Intermediate
Return Bond       4        1,265   Bond                58   626     59   594     28    536     37    457     11    312     Investment
Fund, Class I                                                                                                              Grade Debt
                                                                                                                                   
Artio
Emerging                           Emerging Markets                                                                        Emerging
Markets Local     N/A      N/A     Bond                16   90      87   74      N/A   N/A     N/A   N/A     N/A   N/A     Markets Local
Debt Fund,                                                                                                                 Currency Debt
Class A
Artio
Emerging                           Emerging Markets                                                                        Emerging
Markets Local     N/A      N/A     Bond                14   90      86   74      N/A   N/A     N/A   N/A     N/A   N/A     Markets Local
Debt Fund,                                                                                                                 Currency Debt
Class I
                                                                                                                                   
                                                                                                                                   
Note: Data as
of March 31,
2013
                                                                                                                                   
NA: Not
applicable
                                                                                                                                   

     Lipper, a wholly-owned subsidiary of Reuters, provides independent
     insight on global collective investments including mutual funds,
     retirement funds, hedge funds and fund fees and expenses to the asset
     management and media communities. Lipper ranks the performance of mutual
1.   funds within a classification of funds that have similar investment
     objectives. Rankings are historical with capital gains and dividends
     reinvested and do not include the effect of loads. If an expense waiver
     was in effect, it may have had a material effect on the total return or
     yield for the period.
      
     For each mutual fund with at least a three-year history, Morningstar
     calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted
     Return measure that accounts for variation in a fund’s monthly
     performance (including the effects of sales charges, loads, and
     redemption fees), placing more emphasis on downward variations and
     rewarding consistent performance. The top 10% of funds in each category
     receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3
     stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star.
     (Each share class is counted as a fraction of one fund within this scale
     and rated separately, which may cause slight variations in the
     distribution percentages.) The Overall Morningstar Rating for a mutual
     fund is derived from a weighted average of the performance figures
     associated with its three-, five- and ten-year (if applicable)
     Morningstar Rating metrics. A fund's independent Morningstar Rating
     metric is then compared against the mutual fund universe breakpoints to
     determine its hypothetical rating. The information contained herein: (1)
     is proprietary to Morningstar; (2) may not be copied or distributed; and
     (3) is not warranted to be accurate, complete or timely. Neither
     Morningstar nor its content providers are responsible for any damages or
     losses arising from any use of this information. Data presented reflect
     past performance, which is no guarantee of future results. © 2013
     Morningstar, Inc. All Rights Reserved. This news release is not sales
     material, nor is it an offer to sell or a solicitation of an offer to buy
     any securities, nor shall there be any sale of securities in any state or
     jurisdiction in which any such offer, solicitation or sale would be
     unlawful prior to registration or qualification under the securities laws
     of any such state or jurisdiction.

Contact:

Investor Relations:
Artio Global Investors Inc.
Peter Sands, +1 212-297-3891
Head of Investor Relations
ir@artioglobal.com
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