UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of report (Date of earliest event reported):
February
13, 2019
JMP Group LLC
(Exact
Name of Registrant as Specified in Charter)
Delaware |
001-36802 |
47-1632931 |
||
(State or Other Jurisdiction of Incorporation) |
|
(Commission File Number) |
|
(I.R.S. Employer Identification No.) |
600 Montgomery Street, Suite 1100, San Francisco, California 94111
(Address
of Principal Executive Offices, including zip code)
415-835-8900
(Registrant’s
Telephone Number, Including Area Code)
(Former Name or
Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (17 CFR
§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR
§240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On February 13, 2019, JMP Group LLC (the “Company”) issued a press release announcing financial results for its fiscal year ended December 31, 2018 and fourth quarter ended December 31, 2018. A copy of the Company's press release containing this information is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) and will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.
The information furnished in this report, including Exhibit 99.1, shall not be deemed to constitute an admission that such information or exhibit is required to be furnished pursuant to Regulation FD or that such information or exhibit contains material information that is not otherwise publicly available. In addition, the Company does not assume any obligation to update such information or exhibit in the future.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
The following exhibits are furnished as
part of this Current Report on Form 8-K:
99.1 Press
release of the Company dated February 13, 2019.
Signature(s)
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 hereunto duly authorized.
JMP GROUP LLC |
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Date: | February 13, 2019 | By: |
/s/ Raymond Jackson |
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Raymond Jackson |
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Chief Financial Officer |
Exhibit 99.1
JMP Group Reports Fourth Quarter and Fiscal Year 2018 Financial Results
SAN FRANCISCO--(BUSINESS WIRE)--February 13, 2019--JMP Group LLC (NYSE: JMP), an investment banking and alternative asset management firm, reported financial results today for the quarter and full fiscal year ended December 31, 2018.
A summary of JMP Group’s operating results for the quarter and year ended December 31, 2018, and for comparable prior periods, is set forth below.
Quarter Ended | Year Ended | |||||||||||||
(in thousands, except per share amounts) | Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Total net revenues | $31,698 | $33,251 | $30,836 | $136,424 | $110,386 | |||||||||
Net income/(loss) attributable to JMP Group |
($203 | ) | $288 | ($1,373 | ) | ($2,187 | ) | ($15,883 | ) | |||||
Net income/(loss) attributable to JMP Group per share |
($0.01 | ) | $0.01 | ($0.06 | ) | ($0.10 | ) | ($0.74 | ) | |||||
Operating net income | $2,525 | $1,741 | $3,591 | $6,018 | $4,358 | |||||||||
Operating net income per share | $0.12 | $0.08 | $0.16 | $0.28 | $0.20 | |||||||||
Book value per share | $3.93 | $4.06 | $4.43 | $3.93 | $4.43 | |||||||||
Adjusted book value per share | $4.98 | $5.07 | $5.23 | $4.98 | $5.23 |
For more information about operating net income, including a reconciliation to net income, and adjusted book value per share, including a reconciliation to book value per share, see the section below titled “Non-GAAP Financial Measures.”
“We had a better-than-expected fourth quarter, with operating earnings of $0.12 per share,” said Chairman and Chief Executive Officer Joe Jolson. “JMP Securities contributed $0.08 per share, despite the sharp sell-off in the equities market, which limited capital markets activity in the period. For the full year, JMP Securities’ operating earnings per share were up nearly 20%, to $0.37 per share, driven by record advisory fee revenues that rose nearly 40%. As a result, JMP Securities generated an after-tax return on equity of more than 30% for 2018.
“Asset management fee income and investment income combined to contribute $0.14 of operating EPS, up 8% from the fourth quarter of 2017. Investment income covered our fixed corporate costs for the third consecutive quarter, and earnings of $0.12 per share produced by our untaxed pass-through entities more than covered our fourth-quarter cash distributions of $0.09 per share.
“We also initiated an aggressive corporate simplification strategy during the fourth quarter, intended to make our business less complicated to manage and easier for investors to understand. As disclosed in January, we have elected to be taxed as a C corporation going forward, which will increase our corporate tax rate but will eliminate Schedule K-1s for investors, removing substantial corporate costs and potentially increasing our appeal to institutional investors.”
Segment Results of Operations
A summary of JMP Group’s operating net income per share by segment for the quarter and year ended December 31, 2018, and for comparable prior periods, is set forth below.
Quarter Ended | Year Ended | ||||||||||||||
($ as shown) | Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||
Broker-dealer | $0.08 | $0.09 | $0.12 | $0.37 | $0.31 | ||||||||||
Asset management fee income | 0.01 | 0.00 | 0.02 | (0.03 | ) | 0.01 | |||||||||
Investment income | 0.14 | 0.10 | 0.12 | 0.34 | 0.23 | ||||||||||
Total asset management | 0.14 | 0.10 | 0.13 | 0.31 | 0.23 | ||||||||||
Corporate costs | (0.11 | ) | (0.11 | ) | (0.09 | ) | (0.41 | ) | (0.34 | ) | |||||
Operating EPS (diluted) | $0.12 | $0.08 | $0.16 | $0.28 | $0.20 |
Note: Due to rounding, numbers in columns above may not sum to totals presented. |
For more information about operating net income, including a reconciliation to net income, see the section below titled “Non-GAAP Financial Measures.”
Composition of Revenues
Investment Banking
Investment banking revenues were $17.8 million, a decrease of 21.0% from $22.5 million for the quarter ended December 31, 2017. For the year ended December 31, 2018, investment banking revenues were a record $88.1 million, an increase of 13.9% from $77.3 million for the year ended December 31, 2017.
A summary of the company’s investment banking revenues and transaction counts for the quarter and year ended December 31, 2018, and for comparable prior periods, is set forth below.
Quarter Ended | Year Ended | |||||||||||||||||||
Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||||||||
($ in thousands) | Count | Revenues | Count | Revenues | Count | Revenues | Count | Revenues | Count | Revenues | ||||||||||
Equity and debt origination |
17 | $7,383 | (1) | 21 | $11,366 | (1) | 21 | $12,863 | 90 | $54,660 | (1) | 103 | $53,355 | |||||||
Strategic advisory and private placements |
5 | 10,405 | 4 | 9,729 | 4 | 9,646 | 22 | 33,447 | 18 | 23,967 | ||||||||||
Total | 22 | $17,788 | (1) | 25 | $21,095 | (1) | 25 | $22,509 | 112 | $88,107 | (1) | 121 | $77,322 |
(1) | Prior to 2018, JMP Group presented investment banking revenues net of related expenses. In the quarter ended March 31, 2018, the company adopted new accounting guidance on revenue recognition, which resulted in the presentation of investment banking revenues and related expenses on a gross basis in the company’s financial statements. These related expenses were $0.8 million and $0.9 million for the quarters ended December 31 and September 30, 2018, respectively, and $6.5 million for the year ended December 31, 2018. |
Brokerage
Net brokerage revenues were $5.9 million, a decrease of 1.3% from $6.0 million for the quarter ended December 31, 2017. For the year ended December 31, 2018, net brokerage revenues were $20.7 million, a decrease of 2.0% from $21.1 million for the year ended December 31, 2017.
Total capital markets revenues, which consist of net brokerage revenues produced by the institutional equities division in addition to equity and debt origination revenues generated by the investment banking division, were $13.3 million and $75.4 million for the quarter and year ended December 31, 2018, respectively, compared to $18.9 million and $74.5 million for the quarter and year ended December 31, 2017, respectively.
Asset Management
Asset management fees were $3.6 million, a decrease of 8.3% from $4.0 million for the quarter ended December 31, 2017. For the year ended December 31, 2018, asset management fees were $19.1 million, an increase of 6.1% from $18.0 million for the year ended December 31, 2017.
A summary of the company’s client assets under management for the quarter ended December 31, 2018, and for comparable prior periods, is set forth below.
(in millions) | Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | |||
Harvest Capital Strategies, JMP Asset Management and HCAP Advisors |
$921 | $889 | $897 | |||
JMP Credit Advisors | 1,245 | 1,211 | 894 | |||
Client assets under management | 2,166 | 2,100 | 1,791 | |||
Assets under management by sponsored funds (1) | 3,462 | 3,753 | 3,313 | |||
Client assets under management, including sponsored funds |
$5,628 | $5,853 | $5,104 |
(1) | Funds managed by third-party asset managers in which JMP Group owns an economic interest. |
Principal Transactions
Principal transactions generated a net realized and unrealized loss of $0.8 million, compared to a net realized and unrealized loss of $2.8 million for the quarter ended December 31, 2017. For the year ended December 31, 2018, principal transactions generated a net realized and unrealized loss of $2.3 million, compared to a net realized and unrealized loss of $6.4 million for the year ended December 31, 2017.
Net Interest Income
Net interest income was $5.0 million, an increase of 106.1% from $2.4 million for the quarter ended December 31, 2017. For the year ended December 31, 2018, net interest income was $16.9 million, an increase of 127.2% from $7.5 million for the year ended December 31, 2017. The year-over-year increase was primarily due to a higher average loan balance for 2018 than for 2017, due to the reinvestment of funds that resulted from the liquidation of JMP Credit Advisors CLO I in February 2017.
Provision for Loan Losses
For the quarter ended December 31, 2018, the net loan loss provision was $0.9 million, including a general loan loss provision of $0.6 million and a specific loan loss provision of $0.3 million.
Expenses
Compensation and Benefits
Compensation and benefits expense was $21.3 million, compared to $21.6 million for the quarter ended December 31, 2017. As a percentage of net revenues, compensation and benefits expense was 67.2%, compared to 70.0% for the quarter ended December 31, 2017. With regard to annually awarded compensation, a non-GAAP measure that adjusts compensation expense related to share-based awards and deferred compensation, compensation and benefits expense was 67.5% of net revenues, compared to 72.6% for the quarter ended December 31, 2017.
For the year ended December 31, 2018, compensation and benefits expense was $97.4 million, compared to $90.6 million for the year ended December 31, 2017. As a percentage of net revenues, compensation and benefits expense was 71.4%, compared to 82.1% for the year ended December 31, 2017. With regard to annually awarded compensation, compensation and benefits expense was 71.2% of net revenues, compared to 81.1% for the year ended December 31, 2017.
For more information about compensation ratios, see the section below titled “Non-GAAP Financial Measures.”
Non-Compensation Expense
Non-compensation expense was $8.5 million and $39.1 million for the quarter and year ended December 31, 2018, respectively, compared to $7.9 million and $31.4 million for the quarter and year ended December 31, 2017, respectively. The year-over-year increases were in part attributable to the adoption of new accounting guidance on revenue recognition, which caused $0.8 million of investment banking-related expenses to be presented on a gross basis and to be included within non-compensation expense for the quarter ended December 31, 2018. For the year ended December 31, 2018, the amount was $6.5 million. In prior periods, such expenses were presented as a deduction from investment banking revenues.
Share Repurchase Activity
During the quarter ended December 31, 2018, JMP Group repurchased approximately 195,000 shares of its common stock at an aggregate cost of $0.9 million, or $4.79 per share. As of January 1, 2019, approximately 370,000 shares were eligible for repurchase through April 30, 2019.
Personnel
At December 31, 2018, the company had 228 full-time employees, compared to 224 at September 30, 2018, and 230 at December 31, 2017.
Non-GAAP Financial Measures
In addition to the GAAP financial results presented in this press release, JMP Group presents the non-GAAP financial measures discussed below. These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance. Furthermore, company management believes that this presentation enables a more meaningful comparison of JMP Group’s financial performance across various periods. However, the non-GAAP financial results presented should not be considered a substitute for results that are presented in a manner consistent with GAAP. A limitation of the non-GAAP financial measures presented is that the adjustments concern gains, losses or expenses that JMP Group generally expects to continue to recognize. The adjustment of these non-GAAP items should not be construed as an inference that these gains or expenses are unusual, infrequent or non-recurring. Therefore, both GAAP measures of JMP Group’s financial performance and the respective non-GAAP measures should be considered together. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies.
Compensation Ratio
A compensation ratio expresses compensation expense as a percentage of net revenues in a given period. As presented by JMP Group, an adjusted compensation ratio is a non-GAAP financial measure that utilizes adjusted compensation and benefits expense as the numerator. This adjusted ratio excludes certain compensation-related expenses that are or are not recognized under GAAP. In particular, the adjusted compensation ratio reverses compensation expense and unrealized mark-to-market gains or losses related to share-based awards and deferred compensation (so that the compensation expenses used in the numerator correspond to the adjusted net revenues generated in the periods presented).
A statement of JMP Group’s compensation ratio for the quarter and year ended December 31, 2018, and for comparable prior periods, is set forth below.
Quarter Ended | Year Ended | ||||||||||||||
($ in thousands) | Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||
Total net revenues | $31,698 | $33,251 | $30,836 | $136,424 | $110,386 | ||||||||||
Compensation and benefits | $21,289 | $22,671 | $21,588 | $97,359 | $90,601 | ||||||||||
Subtract/(add back): | |||||||||||||||
Share-based awards and deferred compensation | (122 | ) | 76 | (786 | ) | 167 | 1,077 | ||||||||
Adjusted compensation and benefits | $21,411 | $22,595 | $22,374 | $97,192 | $89,524 | ||||||||||
Ratio of compensation expense to net revenues |
67.2 | % | 68.2 | % | 70.0 | % | 71.4 | % | 82.1 | % | |||||
Ratio of adjusted compensation expense to net revenues |
67.5 | % | 68.0 | % | 72.6 | % | 71.2 | % | 81.1 | % |
Operating Net Income
Operating net income is a non-GAAP financial measure that (i) reverses compensation expense related to share-based awards and deferred compensation, (ii) reverses the general loan loss provision taken with regard to certain CLOs, (iii) excludes the impact of the early retirement of debt issued by JMP Group and a CLO, (iv) excludes transaction costs related to a CLO, (v) excludes amortization expense related to a CLO, (vi) reverses unrealized gains or losses related to real estate investment properties, (vii) reverses net unrealized gains and losses on strategic equity investments and warrants, and (viii) assumes an effective tax rate. In particular, operating net income adjusts for:
A reconciliation of JMP Group’s net income to its operating net income for the quarter and year ended December 31, 2018, and for comparable prior periods is set forth below.
Quarter Ended | Year Ended | ||||||||||||||
(in thousands, except per share amounts) | Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||
Net income/(loss) attributable to JMP Group | ($203 | ) | $288 | ($1,373 | ) | ($2,187 | ) | ($15,883 | ) | ||||||
Add back/(subtract): | |||||||||||||||
Income tax expense/(benefit) | 1,313 | 527 | 1,913 | 1,167 | 1,744 | ||||||||||
Income/(loss) before taxes | 1,110 | 815 | 540 | (1,020 | ) | (14,139 | ) | ||||||||
Add back/(subtract): | |||||||||||||||
Share-based awards and deferred compensation |
(122 | ) | 76 | (786 | ) | 167 | 1,077 | ||||||||
General loan loss provision/(reversal) – collateralized loan obligations |
530 | 855 | 680 | 2,878 | 1,377 | ||||||||||
Early retirement of debt | - | 170 | 1,067 | 1,488 | 6,499 | ||||||||||
Restructuring costs – CLO portfolios | - | - | 15 | 54 | 315 | ||||||||||
Amortization of intangible asset – CLO III | 69 | 69 | 69 | 276 | 276 | ||||||||||
Unrealized (gain)/loss – real estate-related depreciation and amortization |
369 | 260 | 1,173 | 2,233 | 7,645 | ||||||||||
Unrealized mark-to-market (gain)/loss – strategic equity investments and warrants |
837 | (327 | ) | 1,816 | 853 | 2,113 | |||||||||
Operating income/(loss) before taxes | 2,793 | 1,918 | 4,574 | 6,929 | 5,163 | ||||||||||
Income tax expense/(benefit) | 268 | 177 | 983 | 911 | 805 | ||||||||||
Operating net income/(loss) | $2,525 | $1,741 | $3,591 | $6,018 | $4,358 | ||||||||||
Operating net income/(loss) per share: | |||||||||||||||
Basic | $0.12 | $0.08 | $0.17 | $0.28 | $0.20 | ||||||||||
Diluted (1) | $0.12 | $0.08 | $0.16 | $0.28 | $0.20 | ||||||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 21,326 | 21,435 | 21,568 | 21,490 | 21,579 | ||||||||||
Diluted (1) | 21,614 | 21,737 | 22,017 | 21,701 | 21,980 |
(1) | On a GAAP basis, the weighted average number of diluted shares outstanding for the quarters ended December 31, 2018, and December 31, 2017, was 21,326,473 and 21,567,723, respectively, and for the years ended December 31, 2018, and December 31, 2017, was 21,490,277 and 21,579,107, respectively, equivalent to the weighted average number of basic shares outstanding, due to the company’s net loss for those periods. Under GAAP, in a period of net loss, dilutive securities are disregarded in the calculation of earnings per share. |
Book Value per Share
At December 31, 2018, JMP Group’s book value per share was $3.93. Adding back accumulated depreciation and amortization expense related to commercial real estate investments that is recognized by JMP Group as a result of equity method accounting reflects the reversal of that expense in the calculation of adjusted net revenues, adjusted principal transaction revenues and operating net income. Likewise, adding back the accumulated general loan loss provision related to collateralized loan obligations reflects the reversal of that provision in the calculation of adjusted net revenues and operating net income. Such reversals result in an adjusted book value per share of $4.98, as set forth below.
(in thousands, except per share amounts) | Dec. 31, 2018 | Sept. 30, 2018 | Dec. 31, 2017 | |||
Shareholders' equity | $83,707 | $86,734 | $96,335 | |||
Accumulated unrealized loss – real estate-related depreciation and amortization |
$14,184 | $13,815 | $11,950 | |||
Accumulated general loan loss provision – collateralized loan obligations |
8,337 | 7,806 | 5,458 | |||
Adjusted shareholders' equity | $106,227 | $108,355 | $113,743 | |||
Book value per share | $3.93 | $4.06 | $4.43 | |||
Adjusted book value per share | $4.98 | $5.07 | $5.23 | |||
Basic shares outstanding | 21,320 | 21,357 | 21,729 | |||
Quarterly operating ROE (1) | 11.8% | 7.9% | 14.6% | |||
LTM operating ROE (1) | 6.7% | 7.6% | 4.1% | |||
Quarterly adjusted operating ROE (1) | 9.4% | 6.4% | 12.5% | |||
LTM adjusted operating ROE (1) | 5.5% | 6.3% | 3.6% |
(1) | Operating return on equity (ROE) equals operating net income divided by average shareholders’ equity. Adjusted operating ROE equals operating net income divided by average adjusted shareholders’ equity. For more information about operating net income, including a reconciliation to net income attributable to JMP Group, see the section above titled “Operating Net Income.” |
Conference Call
JMP Group will hold a conference call to discuss the results detailed herein at 10:00 a.m. ET on Thursday, February 14, 2019. To participate in the call, dial (888) 566-6060 (domestic) or (973) 200-3100 (international). The conference identification number is 2372106.
The conference call will also be broadcast live over the Internet and will be accessible via a link in the investor relations section of the company’s website, at investor.jmpg.com/events.cfm. The Internet broadcast will be archived and will remain available on the website for future replay.
Cautionary Note Regarding Quarterly Financial Results
Due to the nature of its business, JMP Group’s quarterly revenues and net income may fluctuate materially depending on: the size and number of investment banking transactions on which it advises; the timing of the completion of those transactions; the size and number of securities trades which it executes for brokerage customers; the performance of its asset management funds and inflows and outflows of assets under management; gains or losses stemming from sales of or prepayments on, or losses stemming from defaults on, loans underlying the company’s collateralized loan obligations; and the effect of the overall condition of the securities markets and economy as a whole. Accordingly, revenues and net income in any particular quarter may not be indicative of future results. Furthermore, JMP Group’s compensation expense is generally based upon revenues and can fluctuate materially in any quarter, depending upon the amount and sorts of revenue recognized as well as other factors. The amount of compensation and benefits expense recognized in a particular quarter may not be indicative of such expense in any future period. As a result, the company suggests that its annual results may be the most meaningful gauge for investors in evaluating the performance of its business.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide JMP Group’s current expectations or forecasts about future events, including beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expected or implied by the forward-looking statements. The company’s actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Form 10-K for the year ended December 31, 2017, as filed with the U.S. Securities and Exchange Commission on March 28, 2018, as well as in the similarly captioned sections of other periodic reports filed by the company under the Exchange Act. The Form 10-K for the year ended December 31, 2017, and all other periodic reports are available on JMP Group’s website at www.jmpg.com and on the SEC’s website at www.sec.gov. Unless required by law, JMP Group undertakes no obligation to publicly update or revise any forward-looking statement to reflect circumstances or events after the date of this press release.
Disclosure Information
JMP Group uses the investor relations section of its website as a means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the company’s website in addition to its press releases, SEC filings, and investor conference calls and webcasts.
About JMP Group
JMP Group LLC is a diversified capital markets firm that provides investment banking, equity research, and sales and trading services to corporate and institutional clients as well as alternative asset management products and services to institutional and high-net-worth investors. JMP Group conducts its investment banking and research, sales and trading activities through JMP Securities; its hedge fund, venture and private capital, and credit management activities through Harvest Capital Strategies, JMP Asset Management and JMP Credit Advisors; and the management of Harvest Capital Credit Corporation (NASDAQ: HCAP), a business development company, through HCAP Advisors. For more information, visit www.jmpg.com.
JMP GROUP LLC Consolidated Statements of Financial Condition (Unaudited) |
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(in thousands) | Dec. 31, 2018 | Dec. 31, 2017 | ||
Assets | ||||
Cash and cash equivalents | $70,927 | $85,594 | ||
Restricted cash and deposits | 61,881 | 51,727 | ||
Marketable securities owned, at fair value | 18,874 | 20,825 | ||
Other investments | 16,124 | 27,984 | ||
Loans held for investment, net of allowance for loan losses | 29,608 | 83,948 | ||
Loans collateralizing asset-backed securities issued, net of allowance for loan losses |
1,161,463 | 765,583 | ||
Other assets | 32,365 | 40,965 | ||
Total assets | $1,391,242 | $1,076,626 | ||
Liabilities and Shareholders' Equity | ||||
Liabilities: | ||||
Marketable securities sold, but not yet purchased, at fair value | $4,626 | $7,919 | ||
Accrued compensation | 41,609 | 43,131 | ||
Asset-backed securities issued, net of issuance costs | 1,112,342 | 738,248 | ||
CLO warehouse facility | 22,500 | 61,250 | ||
Bond payable, net of issuance costs | 83,497 | 93,103 | ||
Note payable | 829 | - | ||
Other liabilities | 28,633 | 22,796 | ||
Total liabilities | 1,294,036 | 966,447 | ||
Shareholders' Equity: | ||||
Total JMP Group LLC shareholders' equity | 83,707 | 96,335 | ||
Non-redeemable non-controlling interest | 13,499 | 13,844 | ||
Total equity | 97,206 | 110,179 | ||
Total liabilities and shareholders' equity | $1,391,242 | $1,076,626 |
JMP GROUP LLC Consolidated Statements of Operations (Unaudited) |
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Quarter Ended | Year Ended | |||||||||||
(in thousands, except per share amounts) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||
Revenues: | ||||||||||||
Investment banking | $17,788 | $22,509 | $88,107 | $77,322 | ||||||||
Brokerage | 5,923 | 6,002 | 20,710 | 21,129 | ||||||||
Asset management fees | 3,643 | 3,971 | 19,148 | 18,049 | ||||||||
Principal transactions | (820 | ) | (2,829 | ) | (2,287 | ) | (6,437 | ) | ||||
Gain/(loss) on sale and payoff of loans | 356 | (411 | ) | (532 | ) | 797 | ||||||
Net dividend income | 346 | 371 | 1,281 | 1,188 | ||||||||
Other income | 351 | 430 | 1,017 | 1,351 | ||||||||
Non-interest revenues | 27,587 | 30,043 | 127,444 | 113,399 | ||||||||
Interest income | 19,463 | 11,496 | 66,494 | 41,159 | ||||||||
Interest expense | (14,427 | ) | (9,053 | ) | (49,552 | ) | (33,702 | ) | ||||
Net interest income | 5,036 | 2,443 | 16,942 | 7,457 | ||||||||
Gain/(loss) on repurchase or early retirement of debt | - | (775 | ) | (2,838 | ) | (6,107 | ) | |||||
Provision for loan losses | (925 | ) | (875 | ) | (5,124 | ) | (4,363 | ) | ||||
Total net revenues | 31,698 | 30,836 | 136,424 | 110,386 | ||||||||
Non-interest expenses: | ||||||||||||
Compensation and benefits | 21,289 | 21,588 | 97,359 | 90,601 | ||||||||
Administration | 1,658 | 1,465 | 8,904 | 7,464 | ||||||||
Brokerage, clearing and exchange fees | 724 | 921 | 3,097 | 3,209 | ||||||||
Travel and business development | 1,594 | 1,299 | 4,830 | 4,034 | ||||||||
Managed deal expenses | 321 | - | 4,849 | - | ||||||||
Communications and technology | 958 | 1,158 | 4,107 | 4,308 | ||||||||
Occupancy | 1,338 | 1,079 | 4,770 | 4,418 | ||||||||
Professional fees | 1,131 | 1,298 | 5,446 | 4,407 | ||||||||
Depreciation | 288 | 271 | 1,124 | 1,162 | ||||||||
Other | 462 | 417 | 1,994 | 2,410 | ||||||||
Total non-interest expense | 29,763 | 29,496 | 136,480 | 122,013 | ||||||||
Net income/(loss) before income tax | 1,935 | 1,340 | (56 | ) | (11,627 | ) | ||||||
Income tax expense/(benefit) | 1,313 | 1,913 | 1,167 | 1,744 | ||||||||
Net income/(loss) | 622 | (573 | ) | (1,223 | ) | (13,371 | ) | |||||
Less: Net income/(loss) attributable to non-redeemable non-controlling interest |
825 | 800 | 964 | 2,512 | ||||||||
Net income/(loss) attributable to JMP Group | ($203 | ) | ($1,373 | ) | ($2,187 | ) | ($15,883 | ) | ||||
Net income/(loss) attributable to JMP Group per share: | ||||||||||||
Basic |
($0.01 |
) |
($0.06 |
) |
($0.10 |
) |
($0.74 |
) |
||||
Diluted |
($0.01 |
) |
($0.06 |
) |
($0.10 |
) |
($0.74 |
) |
||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 21,326 | 21,568 | 21,490 | 21,579 | ||||||||
Diluted | 21,326 | 21,568 | 21,490 | 21,579 |
CONTACT:
Investor Relations Contact
JMP Group LLC
Andrew
Palmer
(415) 835-8978
apalmer@jmpg.com
Media Relations Contacts
Dukas Linden Public Relations, Inc.
Zach
Leibowitz
(646) 722-6528
zach@dlpr.com
Alyssa Noud
(646) 722-6525
alyssa@dlpr.com