e10vq
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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þ |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED: March 31, 2007
- OR -
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o |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
Commission File Number: 000-51003
CALAMOS ASSET MANAGEMENT, INC.
(Exact Name of Registrant as Specified in its Charter)
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Delaware
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32-0122554 |
(State or Other Jurisdiction of
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(I.R.S. Employer |
Incorporation or Organization)
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Identification No.) |
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2020 Calamos Court, Naperville, Illinois
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60563 |
(Address of Principal Executive Offices)
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(Zip Code) |
(630) 245-7200
(Registrants telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports) and (2) has been subject
to such filing requirements for the past 90 days. þ Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,
or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in
Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer o Accelerated filer þ Non-accelerated filer o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of
the Exchange Act). o Yes þ No
At
April 30, 2007, the company had 23,324,082 shares of Class A common stock and 100 shares of Class B
common stock outstanding.
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
CALAMOS ASSET MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except share data)
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March 31, |
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December 31, |
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2007 |
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2006 |
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(unaudited) |
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ASSETS: |
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Current assets |
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Cash and cash equivalents |
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$ |
263,833 |
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$ |
328,841 |
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Receivables: |
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Affiliates and affiliated funds |
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25,461 |
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26,431 |
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Customers |
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9,115 |
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10,218 |
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Investment securities |
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193,050 |
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143,112 |
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Partnership
securities |
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120,184 |
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90,528 |
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Prepaid expenses |
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3,299 |
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2,383 |
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Deferred tax assets, net |
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6,602 |
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7,375 |
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Other assets |
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8,128 |
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138 |
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Total current assets |
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629,672 |
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609,026 |
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Non-current assets |
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Deferred tax assets, net |
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91,018 |
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91,865 |
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Deferred sales commissions |
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45,037 |
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49,891 |
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Property and equipment, net of accumulated depreciation ($15,147
at 3/31/07 and $13,233 at 12/31/06) |
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43,352 |
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43,615 |
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Other non-current assets |
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1,352 |
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1,443 |
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Total non-current assets |
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180,759 |
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186,814 |
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Total assets |
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810,431 |
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795,840 |
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LIABILITIES AND STOCKHOLDERS EQUITY: |
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Current liabilities |
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Accounts payable: |
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Brokers |
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20,369 |
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20,969 |
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Affiliates and affiliated funds |
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224 |
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264 |
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Accrued compensation and benefits |
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6,705 |
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22,722 |
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Accrued expenses and other current liabilities |
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24,333 |
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10,942 |
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Total current liabilities |
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51,631 |
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54,897 |
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Long-term liabilities |
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Long-term debt |
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150,000 |
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150,000 |
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Other long-term liabilities |
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8,014 |
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8,003 |
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Total long-term liabilities |
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158,014 |
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158,003 |
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Total liabilities |
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209,645 |
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212,900 |
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Minority interest in partnership investments |
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47,472 |
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48,850 |
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Minority interest in Calamos Holdings LLC |
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332,657 |
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319,513 |
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Stockholders equity: |
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Class A Common Stock, $0.01 par value. Authorized 600,000,000 shares;
issued and outstanding 23,324,082 shares at 3/31/07 and 23,161,898
shares at 12/31/06 |
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233 |
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232 |
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Class B Common Stock, $0.01 par value. Authorized 1,000 shares; issued
and outstanding 100 shares |
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0 |
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0 |
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Additional paid-in capital |
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158,362 |
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157,724 |
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Retained earnings |
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57,196 |
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52,261 |
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Accumulated other comprehensive income |
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4,866 |
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4,360 |
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Total stockholders equity |
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220,657 |
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214,577 |
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Total liabilities, minority interest and stockholders equity |
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$ |
810,431 |
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$ |
795,840 |
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See accompanying notes to consolidated financial statements.
-2-
CALAMOS ASSET MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2007 and 2006
(in thousands, except share data)
(unaudited)
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2007 |
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2006 |
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Revenues: |
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Investment management fees |
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$ |
78,475 |
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$ |
81,479 |
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Distribution and underwriting fees |
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36,181 |
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38,140 |
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Other |
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1,044 |
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999 |
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Total revenues |
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115,700 |
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120,618 |
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Expenses: |
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Employee compensation and benefits |
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20,766 |
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19,006 |
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Distribution and underwriting expense |
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25,027 |
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24,965 |
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Amortization of deferred sales commissions |
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7,878 |
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7,740 |
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Marketing and sales promotion |
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3,482 |
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3,223 |
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General and administrative |
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8,392 |
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7,059 |
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Total operating expenses |
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65,545 |
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61,993 |
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Operating income |
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50,155 |
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58,625 |
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Other income (expense): |
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Net interest income (expense) |
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1,994 |
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362 |
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Investment and other income |
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392 |
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11,931 |
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Minority interest in partnership investments |
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751 |
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(6,262 |
) |
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Total other income (expense), net |
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3,137 |
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6,031 |
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Income before minority interest in Calamos Holdings LLC
and income taxes |
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53,292 |
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64,656 |
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Minority interest in Calamos Holdings LLC |
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40,708 |
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49,623 |
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Income before income taxes |
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12,584 |
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15,033 |
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Income taxes |
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5,050 |
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6,028 |
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Net income |
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$ |
7,534 |
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$ |
9,005 |
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Earnings per share |
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Basic |
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$ |
0.32 |
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$ |
0.39 |
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Diluted |
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$ |
0.32 |
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$ |
0.38 |
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Weighted average shares outstanding |
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Basic |
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23,324,182 |
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23,161,998 |
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Diluted |
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100,764,966 |
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100,973,155 |
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Cash dividends per share |
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$ |
0.11 |
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$ |
0.09 |
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See accompanying notes to consolidated financial statements.
-3-
CALAMOS ASSET MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
Three Months Ended March 31, 2007
(in thousands)
(unaudited)
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Accumulated |
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Additional |
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Other |
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Common |
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Paid-in |
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Retained |
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Comprehensive |
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Stock |
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Capital |
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Earnings |
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Income |
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Total |
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Balance at December 31, 2006 |
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$ |
232 |
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$ |
157,724 |
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$ |
52,261 |
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$ |
4,360 |
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$ |
214,577 |
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Net income |
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7,534 |
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7,534 |
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Changes in unrealized gains on available-for-sale securities, net of minority interest and
income taxes |
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|
470 |
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|
470 |
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Total comprehensive income |
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8,004 |
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Issuance of common stock under stock
incentive plans (162,184 Class A
common shares) |
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1 |
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261 |
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36 |
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|
298 |
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Compensation expense recognized under
stock incentive plans, net of minority
interest |
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377 |
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|
377 |
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Dividend equivalent accrued under stock
incentive plans, net of minority interest |
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(33 |
) |
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(33 |
) |
Dividends declared |
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(2,566 |
) |
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(2,566 |
) |
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Balance at March 31, 2007 |
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$ |
233 |
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$ |
158,362 |
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$ |
57,196 |
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$ |
4,866 |
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$ |
220,657 |
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See accompanying notes to consolidated financial statements.
-4-
CALAMOS ASSET MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2007 and 2006
(in thousands)
(unaudited)
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2007 |
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2006 |
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Cash and cash equivalents at beginning of year |
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$ |
328,841 |
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$ |
210,469 |
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Cash flows from operating activities: |
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Net income |
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7,534 |
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|
9,005 |
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Adjustments to reconcile net income to net cash provided by
operating activities: |
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Minority interest in partnership investments |
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(751 |
) |
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|
6,262 |
|
Minority interest in Calamos Holdings LLC |
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|
40,708 |
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|
49,623 |
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Amortization of deferred sales commissions |
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|
7,878 |
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|
7,740 |
|
Other depreciation and amortization |
|
|
1,985 |
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|
|
1,653 |
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Unrealized depreciation (appreciation) on CFS securities
and partnership securities |
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|
950 |
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|
(11,132 |
) |
Deferred taxes |
|
|
1,516 |
|
|
|
2,672 |
|
Stock-based compensation |
|
|
1,622 |
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|
|
1,788 |
|
Employee taxes paid on vesting under stock incentive plans |
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(1,853 |
) |
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|
(2,255 |
) |
(Increase) decrease in assets: |
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Accounts receivable: |
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|
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Affiliates and affiliated mutual funds |
|
|
913 |
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|
(2,353 |
) |
Customers |
|
|
1,103 |
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|
(1,941 |
) |
Deferred sales commissions |
|
|
(3,024 |
) |
|
|
(9,447 |
) |
Other assets |
|
|
(9,271 |
) |
|
|
(959 |
) |
Increase (decrease) in liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(640 |
) |
|
|
1,802 |
|
Accrued compensation and benefits and deferred compensation |
|
|
(16,017 |
) |
|
|
(11,991 |
) |
Other liabilities and accrued expenses |
|
|
13,853 |
|
|
|
1,521 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
46,506 |
|
|
|
41,988 |
|
|
|
|
|
|
|
|
|
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|
|
|
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Cash flows used in investing activities: |
|
|
|
|
|
|
|
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Net additions to property and equipment |
|
|
(1,651 |
) |
|
|
(3,615 |
) |
Net
purchases of securities and partnership securities |
|
|
(77,743 |
) |
|
|
(1,763 |
) |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(79,394 |
) |
|
|
(5,378 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in financing activities: |
|
|
|
|
|
|
|
|
Deferred tax benefit on vesting under stock incentive plans |
|
|
(209 |
) |
|
|
(289 |
) |
Cash distributions paid to minority shareholders |
|
|
(29,345 |
) |
|
|
(31,185 |
) |
Cash dividends paid to common shareholders |
|
|
(2,566 |
) |
|
|
(2,085 |
) |
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
(32,120 |
) |
|
|
(33,559 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash |
|
|
(65,008 |
) |
|
|
3,051 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
263,833 |
|
|
$ |
213,520 |
|
|
|
|
|
|
|
|
See accompanying notes to consolidated financial statements.
-5-
CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(1) Organization and Description of Business
Calamos Asset Management, Inc. (CAM), together with its subsidiaries (the Company), primarily
provides investment advisory services to individuals, to institutional investors and to a family of
open-end and closed-end funds. CAM operates and controls all of the business and affairs of Calamos
Holdings LLC (Holdings) and, as a result of this control, consolidates the financial results of
Holdings with its own financial results.
(2) Basis of Presentation
The consolidated financial statements as of March 31, 2007 and for the three months ended March 31,
2007 and 2006 have not been audited by the Companys independent registered public accounting firm.
In the opinion of management, these statements contain all adjustments, including those of a normal
recurring nature, necessary for fair presentation of the financial condition and results of
operations. The results for the interim periods ended March 31 are not necessarily indicative of
the results to be obtained for a full fiscal year. Certain amounts for the prior year have been
reclassified to conform to the current years presentation.
Calamos Family Partners, Inc.s (CFP) and John P. Calamos, Sr.s combined 76.8% and 76.9% interest
in Holdings at March 31, 2007 and 2006, respectively, is represented as minority interest in the
Companys financial statements. Income before minority interest in Calamos Holdings LLC and income
taxes, which was $53.3 million for the three months ended March 31, 2007, included approximately
$253,500 of investment income earned on cash and cash equivalents held solely by CAM during the
same period. This portion of CAMs investment income is not reduced by any minority interests;
therefore, the resulting minority interest is less than 76.8% for the three months ended March 31,
2007.
During the first quarter of 2007, Calamos Market Neutral Opportunities Fund LP was established as a
private investment partnership that is primarily comprised of highly liquid marketable securities.
Calamos Partners LLC, a subsidiary of Holdings, is the general partner. As of March 31, 2007, the
Company had a net interest of $50.3 million (99.0%) in this partnership. As of March 31, 2007 and
December 31, 2006, the Company had a net interest of $33.8 million (41.8%) and $33.9 million
(41.0%) in Calamos Equity Opportunities Fund LP, respectively.
Because substantially all the activities of these partnerships (collectively, the Partnerships) are
conducted on behalf of the Company and its related parties, the Company consolidates the financial
results of the Partnerships into its results. The assets and liabilities of the Partnerships are
presented in their respective captions and the combined minority interests are presented as
minority interest in partnerships in the consolidated statements of financial condition. The income
is presented as investment and other income in the consolidated statements of operations. The
Company carries these investments at fair value.
Management of the Company has made a number of estimates and assumptions relating to the reporting
of assets, liabilities, revenues and expenses and the disclosure of contingent assets and
liabilities to prepare these consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America. Actual results could differ from
these estimates.
(3) Partnership Securities
Partnership
securities, as presented below, represent the investment securities
held by the
Partnerships, net of securities sold but not yet purchased, which are presented as liabilities on
the underlying financial statements of the Partnerships.
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
(in thousands) |
|
2007 |
|
|
2006 |
|
Calamos Equity Opportunities Fund LP: |
|
|
|
|
|
|
|
|
Securities owned |
|
$ |
102,015 |
|
|
$ |
110,956 |
|
Securities sold but not yet purchased |
|
|
(14,139 |
) |
|
|
(24,104 |
) |
|
|
|
|
|
|
|
Calamos Equity Opportunities Fund LP securities, net |
|
|
87,876 |
|
|
|
86,852 |
|
Calamos Market Neutral Opportunities Fund LP: |
|
|
|
|
|
|
|
|
Securities owned |
|
|
47,365 |
|
|
|
|
|
Securities sold but not yet purchased |
|
|
(15,057 |
) |
|
|
|
|
|
|
|
|
|
|
|
Calamos Market Neutral Opportunities Fund LP securities, net |
|
|
32,308 |
|
|
|
|
|
Investment in Calamos Multi-Strategy, L.P. |
|
|
|
|
|
|
3,676 |
|
|
|
|
|
|
|
|
Partnership securities |
|
$ |
120,184 |
|
|
$ |
90,528 |
|
|
|
|
|
|
|
|
During the first quarter of 2007, the Company liquidated its investment in Calamos Multi-Strategy,
L.P., which resulted in a realized loss of approximately $12,000.
-6-
CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(4) Earnings Per Share
The following table reflects the calculation of basic and diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
(in thousands, except per share data) |
|
2007 |
|
|
2006 |
|
Earnings per share basic |
|
|
|
|
|
|
|
|
Earnings available to common shareholders |
|
$ |
7,534 |
|
|
$ |
9,005 |
|
Weighted average shares outstanding |
|
|
23,324 |
|
|
|
23,162 |
|
|
|
|
|
|
|
|
Earnings per share basic |
|
$ |
0.32 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share diluted |
|
|
|
|
|
|
|
|
Income before minority interest in Calamos
Holdings LLC and income taxes |
|
$ |
53,292 |
|
|
$ |
64,656 |
|
Less: Impact of income taxes |
|
|
21,386 |
|
|
|
25,927 |
|
|
|
|
|
|
|
|
Earnings available to common shareholders |
|
$ |
31,906 |
|
|
$ |
38,729 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
23,324 |
|
|
|
23,162 |
|
Conversion of membership units for common stock |
|
|
77,000 |
|
|
|
77,000 |
|
Dilutive impact of restricted stock units |
|
|
368 |
|
|
|
660 |
|
Dilutive impact of stock options |
|
|
73 |
|
|
|
151 |
|
|
|
|
|
|
|
|
Weighted average shares and potential dilutive
shares outstanding |
|
|
100,765 |
|
|
|
100,973 |
|
|
|
|
|
|
|
|
Earnings per share diluted |
|
$ |
0.32 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
Diluted shares outstanding for the three months ended March 31, 2007 and 2006 are calculated (a)
assuming CFP and John P. Calamos, Sr. exchanged all of their membership units in Holdings for
shares of the Companys Class A common stock on a one-for-one basis and (b) including the effect of
outstanding restricted stock unit and stock option awards. An effective tax rate of 40.1% was
applied to income before minority interest in Calamos Holdings LLC and income taxes in calculating
diluted earnings available to common shareholders for the three months ended March 31, 2007 and
2006.
The Company uses the treasury stock method to reflect the dilutive effect of unvested restricted
stock units (RSUs) and unexercised stock options on diluted earnings per share. Under the treasury
stock method, if the average market price of common stock increases above the options exercise
price, the proceeds that would be assumed to be realized from the exercise of the option would be
assumed to be used to acquire outstanding shares of common stock. However, pursuant to the
Financial Accounting Standards Boards (FASB) Statement of Financial Accounting Standard (SFAS) No.
123(R), Share-Based Payment (SFAS 123(R)), the awards may be anti-dilutive even when the market
price of the underlying stock exceeds the related exercise price. This result is possible because
compensation cost, attributed to future services, not yet recognized is included as a component of
the assumed proceeds upon exercise. As such, the dilutive effect of such options and RSUs would
-7-
CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
result in the addition of a net number of shares to the weighted average number of shares used in
the calculation of diluted earnings per share. For the three months ended March 31, 2007, stock
options for 1,441,187 shares and RSUs for 383,962 shares were excluded from the computation of
diluted earnings per share as they were anti-dilutive. For the three months ended March 31, 2006,
stock options for 665,362 shares were excluded from the computation of diluted earnings per share
as they were anti-dilutive. No RSUs were anti-dilutive during the three months ended March 31,
2006.
(5) Incentive Compensation Plan
Certain employees of the Company participate in an incentive compensation plan, which includes
stock options and RSUs. The Company may issue new shares or may purchase shares of CAMs Class A
common stock as part of its share repurchase program upon the exercise of stock options and upon
conversion of RSUs. The Annual Report on Form 10-K for the year ended December 31, 2006 provides
details of this plan and its provisions.
During the first quarter of 2007, the Company granted 769,407 shares of stock options and 256,469
shares of RSUs. There were no forfeitures during the quarter. The weighted average fair value of
stock options at the date of grant for the three months ended March 31, 2007 was $10.70, which was
estimated on the date of grant using the Black-Scholes option-pricing model. The assumptions used
were a dividend yield of 1.67%, expected volatility of 35%, a risk-free interest rate of 4.7% and
an expected life of 7.5 years.
During the first quarter of 2007, 231,249 shares of RSUs were exercised, of which 162,184 RSUs, net
of units withheld for taxes, were converted, on a one-for-one basis, for shares of CAMs Class A
common stock. This conversion changed CAMs ownership in Holdings to 23.2%. The total intrinsic
value and the fair value of the converted shares was $4.4 million. The total tax benefit realized
in connection with the exercise of the RSUs during the three months ended March 31, 2007 was
$588,000, as the Company receives tax benefits based upon the portion of Holdings income that it
recognizes.
Expense recorded in connection with the RSUs and stock options was $1.6 million during the three
months ended March 31, 2007 of which $377,000, net of minority interest, was credited as additional
paid-in capital. Expense recorded in connection with the RSUs and stock options was $1.8 million
during the three months ended March 31, 2006 of which $414,000, net of minority interest, was
credited as additional paid-in capital. The amount of deferred tax asset created was $151,000 and
$166,000 during the three months ended March 31, 2007 and 2006, respectively, as the Company
receives tax benefits based upon the portion of Holdings income that it recognizes. At March 31,
2007, approximately $28.8 million of total unrecognized compensation expense related to nonvested
stock option and RSU awards is expected to be recognized over a weighted-average period of 4.5
years.
(6) Accounting for Uncertainty in Income Taxes
Effective January 1, 2007, the Company adopted the provisions of FASB Interpretation No. 48 (FIN
48), Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109. At
March 31, 2007, the Company had no unrecognized tax benefits and it does not anticipate any
unrecognized tax benefits arising in the next 12 months that would result in a material change to
its financial position. As a result, the Company recognized no liability for unrecognized tax
benefits in connection with the adoption of FIN 48. A reconciliation is not provided as the
beginning and ending amounts of unrecognized benefits are zero with no interim additions,
reductions or settlements.
While the Company does not have any accrued interest or penalties related to uncertain tax
positions at March 31, 2007, any future interest or penalties will be recognized in income tax
expense when determined.
The Company files income tax returns in the U.S. federal jurisdiction and various states. The
Company is no longer subject to U.S. federal, state and local examinations by tax authorities for
years before 2004. The Internal Revenue Service (IRS) commenced its examination of the Companys
U.S. income tax return for 2004 in the first quarter of 2007. As of March 31, 2007, the IRS has
proposed no adjustments to the Companys tax return as filed.
-8-
CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(7) Recently Issued Accounting Pronouncements
In September 2006, the FASB issued SFAS 157, Fair Value Measurements, which defines fair value,
establishes a framework for measuring fair value and requires additional disclosure regarding fair
value measurements. SFAS 157 is effective for the Company beginning January 1, 2008. The Company is
currently evaluating the impact, if any, that the adoption of SFAS 157 will have on its financial
statements.
In February 2007, the FASB issued SFAS 159, The Fair Value Option for Financial Assets and
Financial Liabilities Including an amendment of FASB Statement No. 115, which permits the
measurement of many financial instruments and certain other items at fair value. SFAS 159 is
effective for the Company beginning January 1, 2008. The Company is currently evaluating the
impact, if any, that the adoption of SFAS 159 will have on its financial statements.
-9-
Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
We provide investment advisory services to institutions and individuals, managing $42.6 billion in
client assets at March 31, 2007. Our operating results fluctuate primarily due to changes in the
total value and composition of our assets under management. The value and composition of our assets
under management are, and will continue to be, influenced by a variety of factors including
purchases and redemptions of shares of mutual funds and separate accounts that we manage,
fluctuations in the financial markets around the world that result in appreciation or depreciation
of assets under management and our introduction of new investment strategies and products.
The value and composition of our assets under management and our ability to continue to attract
clients depend on a variety of factors including the education of our clients about our investment
philosophy, the delivery of best-in-class service, the relative investment performance of our
investment products as compared to competing offerings and market indices, the competitive
conditions in the mutual fund, asset management and broader financial services sectors, investor
sentiment and confidence, and our decision to open or close products and strategies when deemed to
be in the best interests of our clients.
We market our investment strategies to our clients through a variety of products designed to suit
their investment needs. We currently offer five types of mutual fund and separate account
investment products. The following table details our assets under management at March 31, 2007 and
2006.
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
(in millions) |
|
2007 |
|
|
2006 |
|
Mutual Funds |
|
|
|
|
|
|
|
|
Open-end funds |
|
$ |
25,706 |
|
|
$ |
29,216 |
|
Closed-end funds |
|
|
6,380 |
|
|
|
6,176 |
|
|
|
|
|
|
|
|
Total mutual funds |
|
|
32,086 |
|
|
|
35,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separate Accounts |
|
|
|
|
|
|
|
|
Institutional accounts |
|
|
4,849 |
|
|
|
5,716 |
|
Managed accounts |
|
|
5,482 |
|
|
|
6,393 |
|
Alternative investments |
|
|
133 |
|
|
|
100 |
|
|
|
|
|
|
|
|
Total separate accounts |
|
|
10,464 |
|
|
|
12,209 |
|
|
|
|
|
|
|
|
Total assets under management |
|
$ |
42,550 |
|
|
$ |
47,601 |
|
|
|
|
|
|
|
|
Our revenues are substantially comprised of investment management fees earned under contracts with
the mutual funds and separate accounts that we manage. Our revenues are also comprised of
distribution and underwriting fees, including asset-based distributions and/or service fees
received pursuant to Rule 12b-1 plans. Investment management fees and distribution and underwriting
fees may fluctuate based on a number of factors, including the total value and composition of our
assets under management, market appreciation or depreciation and the level of net purchases and
redemptions, which represent the sum of new client investments, additional funding from existing
clients, withdrawals of assets from and termination of client accounts and purchases and
redemptions of mutual fund shares. The mix of assets under management among our investment products
also has an impact on our revenues, as some products carry different fees than others.
Our largest operating expenses are related to the distribution of mutual funds, including Rule
12b-1 payments and the amortization of deferred sales commissions for open-end mutual funds, as
well as to employee compensation and benefits expense, which includes salaries, incentive
compensation and related benefits costs. Operating expenses may fluctuate due to a number of
factors, including changes in distribution expense as a result of fluctuations in mutual fund sales
and market appreciation or depreciation, variations in staffing and compensation, marketing-related
expenses that include supplemental distribution payments, and depreciation and amortization
relating to capital expenditures incurred to maintain and enhance our administrative and operating
services infrastructure.
-10-
Operating Results
Three Months Ended March 31, 2007 Compared to Three Months Ended March 31, 2006
Assets Under Management
Assets under management decreased by $5.1 billion, or 11%, to $42.6 billion at March 31, 2007 from
$47.6 billion at March 31, 2006. At March 31, 2007, our assets under management consisted of 75%
mutual funds and 25% separate accounts, as compared to 74% mutual funds and 26% separate accounts
at March 31, 2006.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
March 31, |
|
|
Change |
|
(in millions) |
|
2007 |
|
|
2006 |
|
|
Amount |
|
|
Percent |
|
Mutual Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning assets under management |
|
$ |
33,704 |
|
|
$ |
32,244 |
|
|
$ |
1,460 |
|
|
|
5 |
% |
Net purchases (redemptions) |
|
|
(1,952 |
) |
|
|
1,388 |
|
|
|
(3,340 |
) |
|
|
* |
|
Market appreciation |
|
|
334 |
|
|
|
1,760 |
|
|
|
(1,426 |
) |
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending assets under management |
|
|
32,086 |
|
|
|
35,392 |
|
|
|
(3,306 |
) |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets under management |
|
|
33,011 |
|
|
|
34,254 |
|
|
|
(1,243 |
) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separate Accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning assets under management |
|
|
11,021 |
|
|
|
11,561 |
|
|
|
(540 |
) |
|
|
5 |
|
Net purchases (redemptions) |
|
|
(679 |
) |
|
|
52 |
|
|
|
(731 |
) |
|
|
* |
|
Market appreciation |
|
|
122 |
|
|
|
596 |
|
|
|
(474 |
) |
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending assets under management |
|
|
10,464 |
|
|
|
12,209 |
|
|
|
(1,745 |
) |
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets under management |
|
|
10,770 |
|
|
|
12,012 |
|
|
|
(1,242 |
) |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets Under Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning assets under management |
|
|
44,725 |
|
|
|
43,805 |
|
|
|
920 |
|
|
|
2 |
|
Net purchases (redemptions) |
|
|
(2,631 |
) |
|
|
1,440 |
|
|
|
(4,071 |
) |
|
|
* |
|
Market appreciation |
|
|
456 |
|
|
|
2,356 |
|
|
|
(1,900 |
) |
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending assets under management |
|
|
42,550 |
|
|
|
47,601 |
|
|
|
(5,051 |
) |
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets under management |
|
$ |
43,781 |
|
|
$ |
46,266 |
|
|
$ |
(2,485 |
) |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the first quarter of 2007, net redemptions in our mutual funds were $1.9 billion, a decrease
of $3.3 billion from $1.4 billion of net purchases in the prior year quarter. The net outflows
during the three months ended March 31, 2007 were primarily due to lower purchases and higher
redemptions of our Growth Fund and our Growth and Income Fund, each of which comprise a significant
percentage of our total assets under management. We believe that the decreases in net flows are
attributable to the short-term underperformance of our Growth Fund and our Growth and Income Fund.
However, during the first quarter of 2007, we continued to experience net purchases in a number of
our mutual funds, primarily our Market Neutral Income Fund, Global Growth and Income Fund and
International Growth Fund.
Separate accounts had net redemptions of $679 million during the first quarter of 2007, mainly due
to separate account outflows in our equity and convertible strategies, compared to net purchases of
$52 million in the prior year quarter. The decrease in net flows of $731 million was principally
due to outflows in our growth strategies, driven by short-term underperformance. Our convertible
strategies remain closed to new investors.
-11-
Revenues
Total revenues decreased by $4.9 million, or 4%, to $115.7 million for the three months ended March
31, 2007 from $120.6 million for the prior year. The decrease was primarily due to lower investment
management fees and distribution and underwriting fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Change |
|
(in thousands) |
|
2007 |
|
|
2006 |
|
|
Amount |
|
|
Percent |
|
Investment management fees |
|
$ |
78,475 |
|
|
$ |
81,479 |
|
|
$ |
(3,004 |
) |
|
|
4 |
% |
Distribution and underwriting fees |
|
|
36,181 |
|
|
|
38,140 |
|
|
|
(1,959 |
) |
|
|
5 |
|
Other |
|
|
1,044 |
|
|
|
999 |
|
|
|
45 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
115,700 |
|
|
$ |
120,618 |
|
|
$ |
(4,918 |
) |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management fees decreased by $3.0 million, or 4%, to $78.5 million for the three months
ended March 31, 2007 from $81.5 million for the first quarter of 2006 as a result of a $2.5 billion
decrease in average assets under management. The decline in investment management fees was due
primarily to a decrease in open-end fund investment management fees, which were $50.2 million for
the three months ended March 31, 2007 compared to $52.9 million for the prior year period as a
result of a $1.5 billion decrease in open-end fund average assets under management. Conversely,
closed-end fund investment management fees increased to $13.4 million for the three months ended
March 31, 2007 from $12.8 million for the prior year as a result of an increase in closed-end fund
average assets under management of $271 million. Beginning in July 2007 and over the next five
years, we expect our closed-end fund investment management fee revenue to increase as the fee
waivers on our Convertible Opportunities and Income Fund and our Convertible and High Income Fund
expire. Investment management fees from separate accounts decreased to $14.9 million for the three
months ended March 31, 2007 from $15.8 million for the prior year as a result of a decrease in
separate accounts average assets under management of $1.2 billion. Investment management fees as a
percentage of average assets under management was 0.73% for the three months ended March 31, 2007
compared to 0.71% for the prior year.
Distribution and underwriting fees decreased by $2.0 million, or 5%, to $36.2 million for the three
months ended March 31, 2007 from $38.1 million for the first quarter of 2006, due to a $1.5 billion
decrease in open-end fund average assets under management and to a decrease in underwriter
commission that resulted from a decrease in Class A share sales.
Operating Expenses
Operating expenses increased by $3.6 million, or 6%, to $65.5 million for the three months ended
March 31, 2007 from $62.0 million for the prior year. The increase was primarily due to higher
employee compensation and benefits and general and administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Change |
|
(in thousands) |
|
2007 |
|
|
2006 |
|
|
Amount |
|
|
Percent |
|
Employee compensation and benefits |
|
$ |
20,766 |
|
|
$ |
19,006 |
|
|
$ |
1,760 |
|
|
|
9 |
% |
Distribution and underwriting expense |
|
|
25,027 |
|
|
|
24,965 |
|
|
|
62 |
|
|
|
0 |
|
Amortization of deferred sales
commissions |
|
|
7,878 |
|
|
|
7,740 |
|
|
|
138 |
|
|
|
2 |
|
Marketing and sales promotion |
|
|
3,482 |
|
|
|
3,223 |
|
|
|
259 |
|
|
|
8 |
|
General and administrative |
|
|
8,392 |
|
|
|
7,059 |
|
|
|
1,333 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
$ |
65,545 |
|
|
$ |
61,993 |
|
|
$ |
3,552 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits expense increased by $1.8 million for the three months ended
March 31, 2007 when compared to the prior year. This increase largely reflects the impact of adding
staff to support the following initiatives: expand our wealth management and institutional sales;
diversify our product offering by adding complementary fixed income and cash management strategies;
and strengthen our information technology infrastructure. The increase in employee compensation and
benefits resulting from a larger workforce was partially offset by a decrease in incentive
compensation expense to reflect below target company performance.
Distribution and underwriting expense remained largely constant for the three months ended March
31, 2007 when compared to the prior-year period. These expenses increased by $0.7 million for the
first quarter of 2007 when compared to the prior-year period, due to the growth in the Class C
share assets older than one year and were mostly offset by a decrease of $0.6 million
-12-
resulting from the decline in average open-end fund assets under management. Although the Rule
12b-1 fee rates we paid to broker-dealers and other intermediaries in the three months ended March
31, 2007 did not change from the rates paid in the prior year, we expect distribution expense to
vary with the change in open-end mutual funds assets under management.
Marketing and sales promotion expense increased by $0.3 million primarily due to an increase in
supplemental compensation payments. We expect that supplemental compensation payments will
fluctuate with changes in mutual fund purchases and assets under management.
General and administrative expense increased by $1.3 million, of which $0.7 million is attributable
to increases in occupancy, depreciation and business services related to supporting additional
staff. Further, an increase of $0.4 million was attributable to professional services, including
our decision to outsource certain facility-related functions, which were historically reflected in
employee compensation and benefits expense.
Other Income (Expense), Net
Other income (expense), net for the three months ended March 31, 2007 was a net income of $3.1
million as compared to a net income of $6.0 million for the three months ended March 31, 2006.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
(in thousands) |
|
2007 |
|
|
2006 |
|
|
Change |
|
Net interest income (expense) |
|
$ |
1,994 |
|
|
$ |
362 |
|
|
$ |
1,632 |
|
Investment and other income |
|
|
392 |
|
|
|
11,931 |
|
|
|
(11,539 |
) |
Minority interest in partnership
investments |
|
|
751 |
|
|
|
(6,262 |
) |
|
|
7,013 |
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense), net |
|
$ |
3,137 |
|
|
$ |
6,031 |
|
|
$ |
(2,894 |
) |
|
|
|
|
|
|
|
|
|
|
The change in net interest income (expense) of $1.6 million was solely due to an increase in
interest income on cash and cash equivalents, as interest expense of $2.0 million was constant
during each period presented.
Investment and other income decreased by $11.5 million primarily due to an unfavorable change of
$12.0 million in the market value of CFS securities and
partnership securities that we own. The
$7.0 million change in minority interest in partnership investments represents the corresponding
minority interests portion of the change in market value from our consolidated partnerships.
Further, the unrealized gains and losses on a significant portion of our investment securities are
not recorded as changes in net income; rather, these unrealized gains and losses are recognized as
changes to accumulated other comprehensive income, a component of stockholders equity. These
unrealized gains and losses are only recognized in our consolidated statements of operations when
they are realized, which occurs upon the sale of the securities and upon the receipt of capital
gains distributions, which typically occur during the fourth quarter of the calendar year. For the
first quarter of 2007 and 2006, net unrealized gains were generated by our investment securities of
$3.4 million and $8.3 million, respectively, of which $0.5 million and $1.1 million, net of
minority interest and taxes, respectively, were recognized as increases to accumulated other
comprehensive income.
Income Taxes
Income taxes as a percentage of income before income taxes was 40.1% for the first three months
of 2007 and 2006.
Liquidity and Capital Resources
Our current financial condition is highly liquid, with the majority of our assets representing our
corporate investment portfolio, which is comprised of cash and cash equivalents, investment
securities and partnership securities. We anticipate utilizing our cash and cash equivalent
balances to make investments in our products as opportunities arise, to invest in property and
equipment for our facility, to support our operations and to acquire shares under our share
repurchase program. Investment securities are principally comprised of company-sponsored mutual
funds. In addition, the underlying partnership securities are typically comprised of highly liquid
exchange-traded securities. Our working capital requirements historically have been met through
cash generated by our operations and long-term debt. We believe these
resources will be sufficient over the foreseeable future to meet our
requirements with respect to the foregoing activities and to support
future growth.
-13-
The following tables summarize key statements of financial condition data relating to our liquidity
and capital resources.
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
(in thousands) |
|
2007 |
|
2006 |
Statements of financial condition data: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
263,833 |
|
|
$ |
328,841 |
|
Receivables |
|
|
34,576 |
|
|
|
36,649 |
|
Investment securities |
|
|
193,050 |
|
|
|
143,112 |
|
Partnership
securities |
|
|
120,184 |
|
|
|
90,528 |
|
Deferred tax assets, net |
|
|
97,620 |
|
|
|
99,240 |
|
Deferred sales commissions |
|
|
45,037 |
|
|
|
49,891 |
|
Long-term debt |
|
|
150,000 |
|
|
|
150,000 |
|
Cash flows for the three months ended March 31, 2007 and 2006 are shown below:
|
|
|
|
|
|
|
|
|
|
|
March 31, |
(in thousands) |
|
2007 |
|
2006 |
Cash flow data: |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
46,506 |
|
|
$ |
41,988 |
|
Net cash used in investing activities |
|
|
(79,394 |
) |
|
|
(5,378 |
) |
Net cash used in financing activities |
|
|
(32,120 |
) |
|
|
(33,559 |
) |
Net cash provided by operating activities was $46.5 million for the three months ended March 31,
2007 and was primarily comprised of income before minority interest and income taxes of $53.3
million and net changes in working capital.
The payment of deferred sales commissions by us to financial intermediaries who sell Class B and C
shares of our open-end funds was $3.0 million for the three months ended March 31, 2007. We expect
that the payment of deferred sales commissions will vary in proportion to future sales of Class B
and C shares of open-end funds and that these commissions will continue to be funded by cash flows
from operations.
Net cash used in investing activities was $79.4 million for the three months ended March 31, 2007
and was primarily comprised of investments of $77.7 million in products managed by us. During the
first quarter of 2007, we made investments into Calamos Market Neutral Opportunities Fund LP with
$50 million and into the Calamos Global Equity Fund with $30 million. We anticipate increasing the
future level of investments in our products as opportunities arise.
Net cash used by financing activities was $32.1 million for the three months ended March 31, 2007
and was primarily comprised of distributions to minority shareholders of $29.3 million, including
distributions for their tax liabilities of $20.9 million, as well as dividends paid to common
shareholders of $2.6 million.
We expect our cash and liquidity requirements will be met with the cash on hand and through cash
generated by operations. Further, we have access to capital via debt
and equity capital markets that may assist in satisfying our capital requirements.
Recently Issued Accounting Pronouncements
In September 2006, the FASB issued SFAS 157, Fair Value Measurements, which defines fair value,
establishes a framework for measuring fair value and requires additional disclosure regarding fair
value measurements. SFAS 157 is effective for the Company beginning January 1, 2008. We are
currently evaluating the impact, if any, that the adoption of SFAS 157 will have on our financial
statements.
In February 2007, the FASB issued SFAS 159, The Fair Value Option for Financial Assets and
Financial Liabilities Including an amendment of FASB Statement No. 115, which permits the
measurement of many financial instruments and certain other items at fair value. SFAS 159 is
effective for the Company beginning January 1, 2008. We are currently evaluating the impact, if
any, that the adoption of SFAS 159 will have on our financial statements.
-14-
Critical Accounting Policies
Our significant accounting policies are described in note 3 of the Notes to the Consolidated
Financial Statements included in our Annual Report on Form 10-K for the year ended December 31,
2006. A discussion of critical accounting policies is included in Managements Discussion and
Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the
year ended December 31, 2006. There were no significant changes in our critical accounting policies
during the three months ended March 31, 2007.
Forward-Looking Information
From time to time, information or statements provided by us or on our behalf, including those
within this Quarterly Report on Form 10-Q, may contain certain forward-looking statements relating
to future events, future financial performance, strategies, expectations and competitive
environment, and regulations. These forward-looking statements include, without limitation,
statements regarding proposed new products; results of operations or liquidity; projections,
predictions, expectations, estimates or forecasts of our business, financial and operating results
and future economic performance; and managements goals and objectives and other similar
expressions concerning matters that are not historical facts.
Words such as may, will, should, could, would, predicts, potential, continue,
expects, anticipates, future, intends, plans, believes, estimates, and similar
expressions, as well as statements in future tense, identify forward-looking statements.
Forward-looking statements should not be read as a guarantee of future performance or results, and
will not necessarily be accurate indications of the times at, or by, which such performance or
results will be achieved. Forward-looking statements are based on information available at the time
those statements are made and/or managements good faith belief as of that time with respect to
future events, and are subject to risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in or suggested by the forward-looking
statements. Important factors that could cause such differences include, but are not limited to:
adverse changes in applicable laws or regulations; downward fee pressures and increased industry
competition; risks inherent to the investment management business; the loss of revenues due to
contract terminations and redemptions; our ownership structure; general declines in the prices of
securities; catastrophic or unpredictable events; the loss of key executives; the unavailability of
third-party retail distribution channels; increased costs of distribution; failure to recruit and
retain qualified personnel; a loss of assets, and thus revenues; fluctuation in the level of our
expenses; poor performance of our largest funds; damage to our reputation; the extent and timing of
any share repurchases; and our holding company structure. Further, the value and composition of our
assets under management are, and will continue to be, influenced by a variety of factors including,
among other things: purchases and redemptions of shares of the open-end funds and other investment
products; fluctuations in the financial markets around the world that result in appreciation or
depreciation of assets under management; our introduction of new investment strategies and
products; our ability to educate our clients about our investment philosophy and provide them with
best-in-class service; the relative investment performance of our investment products as compared
to competing offerings and market indices; competitive conditions in the mutual fund, asset
management and broader financial services sectors; investor sentiment and confidence; and our
decision to open or close products and strategies when deemed to be in the best interests of our
clients. Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2006 discusses
some of these and other important factors in detail under the caption Risk Factors.
Forward-looking statements speak only as of the date the statements are made. Readers should not
place undue reliance on any forward-looking statements. We assume no obligation to update
forward-looking statements to reflect actual results, changes in assumptions or changes in other
factors affecting forward-looking information, except to the extent required by applicable
securities laws.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
An analysis of our market risk was included in our Annual Report on Form 10-K for the year ended
December 31, 2006. There were no material changes to the Companys market risk during the three
months ended March 31, 2007.
-15-
Item 4. Controls and Procedures
Our management, including our principal executive and principal financial officers, has evaluated
the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the
Securities Exchange Act of 1934) as of March 31, 2007, and has concluded that such disclosure
controls and procedures are effective to ensure that information required to be disclosed by us in
the reports that we file or submit under the Securities Exchange Act of 1934 is recorded,
processed, summarized and reported within the time periods specified in the SECs rules and forms.
There were no changes in the companys internal control over financial reporting that occurred
during our first quarter that have materially affected, or are reasonably likely to materially
affect, the companys internal control over financial reporting.
PART II OTHER INFORMATION
Item 1. Legal Proceedings
In the normal course of business, we may be subject to various legal proceedings from time to time.
Currently, there are no material legal proceedings pending against us.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On October 19, 2006, the Board of Directors authorized the company to purchase up to 2.0 million
shares of Class A common stock. No shares have been purchased under this program as of March 31,
2007.
Item 6. Exhibits
|
|
|
3(i)
|
|
Amended and Restated Certificate of Incorporation of the Registrant
(incorporated by reference to Exhibit 3.1 to the Registrants Current Report
on Form 8-K filed with the Securities and Exchange Commission on November 2,
2004). |
|
|
|
3(ii)
|
|
Amended and Restated By-Laws of the Registrant (incorporated by reference to
Exhibit 3.2 to the Registrants Current Report on Form 8-K filed with the
Securities and Exchange Commission on April 26, 2005). |
|
|
|
3(iii)
|
|
Amended and Restated By-Laws of the Registrant (incorporated by reference to
Exhibit 3.2 to the Registrants Current Report on Form 8-K filed with the
Securities and Exchange Commission on January 23, 2007). |
|
|
|
3(iv)
|
|
Amended and Restated By-Laws of the Registrant (incorporated by reference to
Exhibit 3.2 to the Registrants Current Report on Form 8-K filed with the
Securities and Exchange Commission on March 8, 2007). |
|
|
|
4.1
|
|
Stockholders Agreement among John P. Calamos, Sr., Nick P. Calamos and John
P. Calamos, Jr., certain trusts controlled by them, Calamos Family Partners,
Inc. and the Registrant (incorporated by reference to Exhibit 4.1 to the
Registrants Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on December 3, 2004). |
|
|
|
4.2
|
|
Registration Rights Agreement between Calamos Family Partners, Inc., John P.
Calamos, Sr. and the Registrant (incorporated by reference to Exhibit 4.2 to
the Registrants Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on December 3, 2004). |
|
|
|
10.1
|
|
Employment Agreement between the Registrant and Philip E. Moriarty, II. |
|
|
|
31.1
|
|
Certification pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act. |
|
|
|
31.2
|
|
Certification pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act. |
|
|
|
32.1
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002. |
|
|
|
32.2
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002. |
-16-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALAMOS ASSET MANAGEMENT, INC. |
|
|
|
|
(Registrant) |
|
|
|
|
|
|
|
|
|
Date:
May 10, 2007
|
|
By:
|
|
/s/ Patrick H. Dudasik |
|
|
|
|
|
|
|
|
|
|
|
|
|
Patrick H. Dudasik |
|
|
|
|
|
|
Executive Vice President, Chief Operating Officer, |
|
|
|
|
|
|
Chief Financial Officer and Treasurer |
|
|
-17-