sotheby's (BID) Key Developments
Sotheby's Announces Executive Changes, Effective August 31, 2015
Jun 26 15
Bruno Vinciguerra, who currently serves as Sotheby's Chief Operating Officer, will terminate employment with Sotheby's, effective August 31, 2015. Mr. Vinciguerra's responsibilities will be assumed by Tad Smith, Sotheby's Chief Executive Officer.
Sotheby's Announces Credit Agreement with General Electric Capital Corporation
Jun 15 15
Sotheby's and certain of its wholly-owned subsidiaries are party to a credit agreement with an international syndicate of lenders led by General Electric Capital Corporation, which provides for separate dedicated revolving credit facilities for Sotheby's Agency segment and its Finance segment. On June 15, 2015, the Credit Agreements were amended to increase the commitments thereunder in order to support the continued growth of the Finance segment's loan portfolio. Specifically, among other things, the amendment will: Increase the commitments of the Finance Credit Agreement from $550 million to approximately $1 billion. There was no increase to the commitments of the Agency Credit Agreement as a result of this amendment. As a result of the increase to the commitments of the Finance Credit Agreement, the aggregate commitments under the Credit Agreements will increase from $850 million to approximately $1.3 billion. Increase the accordion feature from $100 million to $150 million. Though new commitments would need to be obtained, the uncommitted accordion feature permits Sotheby's to increase the aggregate commitments of either or both of the Agency and Finance credit facilities by up to $150 million until February 23, 2020, which may result in an expedited arrangement process. Extend the scheduled maturity date of the Credit Agreements from August 22, 2019 to August 22, 2020. Extend the scheduled maturity date of the $50 million incremental revolving credit facility under the Agency Credit Agreement from August 21, 2015 to August 22, 2016, which maturity date may be extended for an additional 365 days on an annual basis with the consent of the lenders under such Incremental Facility who agree to extend their incremental commitments. Sotheby's incurred approximately $2.7 million in fees related to the amendment of the Credit Agreements, which will be amortized on a straight-line basis through the August 22, 2020 extended maturity date of the Credit Agreements.
Sotheby's Announces Executive Changes, Effective From June 30, 2015
Jun 1 15
Alfredo Gangotena, who currently serves as Sotheby's Chief Marketing Officer, will terminate employment with Sotheby's, effective from June 30, 2015. Mr. Gangotena's responsibilities will be assumed by Mr. David Goodman, Sotheby's newly appointed Executive Vice President of Digital Development and Marketing.
Sotheby's Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2015
May 11 15
Sotheby's reported unaudited consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company’s total revenues were $155,675,000 compared to $156,811,000 a year ago. Operating income was $18,404,000 compared to $4,091,000 a year ago. Income before taxes was $7,913,000 compared to loss before income tax of $5,718,000 a year ago. Net income was $5,133,000 compared to net loss of $5,895,000 a year ago. Net income attributable to company was $5,202,000 or $0.07 per share compared to net loss of $6,114,000 or $0.09 per share a year ago. Adjusted operating income was $22,234,000 compared to $9,794,000 a year ago. Adjusted net income was $7,423,000 compared to net loss of $2,977,000 a year ago. Adjusted diluted earnings per share $0.11 against adjusted loss per share of $0.04 for the same period a year ago. This improvement in adjusted operating income was principally due to an 8% increase in auction commission revenues, attributable to improved auction commission margins, and 3% growth in Net Auction Sales. The improvement in auction commission margin is primarily due to the change in the buyer's premium rate structure enacted on 1 February 2015 and a lower level of buyer's premium shared with consignors. The comparison of first quarter Adjusted Operating Income versus the prior year also benefits from the continued growth of Sotheby's Financial Services loan portfolio, as well as a lower level of professional fees. The improvement in net income was due to $3.1 million income tax charge recorded in the prior year quarter related to the enactment of new legislation in New York State.
Lauren Gioia to Head Communications at Sotheby’s
May 8 15
Sotheby’s CEO Tad Smith has convinced Lauren Gioia, who had decided months ago to leave the company, to take the role of Worldwide Head of Communications for Sotheby’s.