NEW YORK, Aug. 14 -- Medley Management Inc. issued the following news release:Medley Management Inc. (NYSE: MDLY) ("MDLY" or the "Company") today reported its financial results for its second quarter ended June 30, 2020. Summary * Fee earning assets under management were $1.7 billion as of June 30, 2020 * Total assets under management were $3.6 billion as of June 30, 2020 * Total revenues were $8.6 million for the three months ended June 30, 2020 and $16.4 million for the six months ended June 30, 2020 * U.S. GAAP net loss per share attributable to Medley Management Inc. was $0.12 for Q2 2020 * Core Net Loss Per Share was $0.11 for Q2 2020 Results of Operations for the Three Months Ended June 30, 2020 Total revenues were $8.6 million for the three months ended June 30, 2020 compared to $12.9 million for the same period in 2019. Revenues consisted of $8.1 million of management fees and other revenue and $0.4 million of investment income. The decrease in total revenues was due primarily to lower base management fees as a result of a decrease in fee earning assets under management, which was mainly driven by a reduction in leverage and decline in portfolio valuations. Total expenses from operations were $10.0 million for the three months ended June 30, 2020 compared to $11.1 million for the same period in 2019. The decrease was due primarily to a decrease in professional fees, primarily driven by lower costs associated with our terminated merger with Sierra Income Corporation ("Sierra"). Included in total expenses are costs associated with our terminated merger of $0.6 million and $1.1 million for the three months ended June 30, 2020 and 2019, respectively. Total other expenses, net were $8.2 million for the three months ended June 30, 2020 and consisted of $2.6 million of interest expense and $5.5 million of other expenses. Of the $5.5 million in other expenses, $5.2 million was attributed to the revaluation of our revenue share payable. Total other expenses, net were $8.7 million for the three months ended June 30, 2019 and consisted of $2.9 million of interest expense and $6.0 million of unrealized loss on shares held of Medley Capital Corporation ("MCC"), offset in part by $0.2 million of dividend income. Net loss attributable to Medley Management Inc. and non-controlling interests in Medley LLC was $8.5 million for the three months ended June 30, 2020 compared to a net loss of $1.1 million for the same period in 2019. Medley Management Inc.'s net loss per share was $0.12 for the three months ended June 30, 2020 compared to a net loss per share of $0.03 for the same period in 2019. Pre-Tax Core Net Income (Loss) was $(7.1) million for the three months ended June 30, 2020 compared to $0.8 million for the same period in 2019. Core Net Income (Loss) Per Share was $(0.11) for the three months ended June 30, 2020, compared to $0.02 for the same period in 2019. Core EBITDA was $(4.3) million for the three months ended June 30, 2020 compared to $3.8 million for the same period in 2019. Results of Operations for the Six Months Ended June 30, 2020 Total revenues were $16.4 million for the six months ended June 30, 2020 compared to $26.7 million for the same period in 2019. Revenues consisted of $18.1 million of management fees and other revenue and $1.7 million of investment loss. The decrease was due primarily to lower base management fees as a result of a decrease in fee-earning assets under management, which was mainly driven by a decline in portfolio valuations, a reduction in leverage, and a decline in investment income due to equity losses and reversal of previously recorded carried interest. Total expenses from operations were $21.2 million for the six months ended June 30, 2020 compared to $22.3 million for the same period in 2019. The decrease was due primarily to a decline in compensation and benefits as a result of lower average headcount and discretionary bonuses, offset in part by an increase in professional fees. Included in total expenses are costs associated with our terminated merger of $2.5 million and $1.4 million for the six months ended June 30, 2020 and 2019, respectively. Total other expenses, net were $10.7 million for the six months ended June 30, 2020 and consisted of $5.4 million of interest expense and $5.4 million of other expenses, offset in part by $0.1 million of dividend income. Of the $5.4 million in other expenses, $5.0 million was attributed to the revaluation of our revenue share payable. Total other expenses, net were $7.4 million for the six months ended June 30, 2019 and consisted of $5.8 million of interest expense and $2.4 million of unrealized losses on shares held of MCC offset in part by $0.8 million of dividend income. Net loss attributable to Medley Management Inc. and non-controlling interests in Medley LLC was $14.2 million for the six months ended June 30, 2020 compared to $1.5 million for the same period in 2019. Medley Management Inc.'s net loss per share was $0.32 for the six months ended June 30, 2020 compared to $0.04 for the same period in 2019. Pre-Tax Core Net Income (Loss) was $(10.7) million for the six months ended June 30, 2020 compared to $1.6 million for the same period in 2019. Core Net Loss Per Share was $0.17 for the six months ended June 30, 2020, compared to Core Net Income Per Share of $.03 for the same period in 2019. Core EBITDA was $(4.9) million for the six months ended June 30, 2020 compared to $7.7 million for the same period in 2019. Key Performance Indicators: Disclaimer: The table has been omitted (The document can be viewed at https://managementinvestors.mdly.com/2020-08-14-Medley-Management-Inc-Reports-Second-Quarter-2020-Results). About Medley Medley is an alternative asset management firm offering yield solutions to retail and institutional investors. Medley's national direct origination franchise is a premier provider of capital to the middle market in the U.S. Medley has $3.6 billion of assets under management in two business development companies, Medley Capital Corporation (NYSE:MCC) (TASE:MCC) and Sierra Income Corporation, and several private investment vehicles. Over the past 18 years, Medley has provided capital to over 400 companies across 35 industries in North America. [1] Medley LLC, the operating company of Medley Management Inc., has outstanding bonds which trade on the NYSE under the symbols (NYSE:MDLX) and (NYSE:MDLQ). Footnote: [1] Medley Management Inc. is the parent company of Medley LLC and several registered investment advisors (collectively, "Medley"). Assets under management refers to assets of our funds, which represents the sum of the net asset value of such funds, the drawn and undrawn debt (at the fund level, including amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). Assets under management are as of June 30, 2020. Source: Medley Management Inc. |
