8-K 1 c50328e8vk.htm FORM 8-K e8vk
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): March 30, 2009
NUVEEN INVESTMENTS, INC.
(Exact name of registrant as specified in its charter)
         
Delaware   1-11123   36-3817266
(State or other   (Commission File Number)   (IRS Employer
jurisdiction of       Identification
incorporation)       Number)
     
333 West Wacker Drive, Chicago, Illinois   60606
(Address of principal executive offices)   (Zip Code)
(312) 917-7700
(Registrant’s telephone number, including area code)
N/A
(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:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

 

Section 2 — Financial Information
Item 2.02 Results of Operations and Financial Condition.
     The information in Item 2.02 of this Report shall be deemed “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. Unless otherwise indicated, the terms “we”, “us”, “our”, “the Company” and “Nuveen Investments” refer to Nuveen Investments, Inc. and, where appropriate, its subsidiaries.
As previously announced, Nuveen Investments will host a conference call to discuss its fourth quarter and full year 2008 results on Tuesday, March 31, 2009 at 10:00 am central time. To access this call live or to listen to an audio replay, visit the investor relations section of the Company’s website at www.nuveen.com.
The following schedules summarize the Company’s results and are intended to accompany the conference call. Table 1 includes sales, net flows, and assets under management for all quarters in 2007 and 2008. Table 2 provides Q4 2008 and Q4 2007 Adjusted EBITDA as defined by our Bank Credit Agreement. The schedule also provides Adjusted EBITDA for the last twelve-month period, which represents all quarters in 2008. Table 3 reconciles Adjusted EBITDA as defined by the Bank Credit Agreement to income before taxes for the same periods (other than Q4 2007).

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TABLE 1
Nuveen Investments
Sales, Net Flows and Assets Under Management
For the Periods Ended December 31, 2007, and December 31, 2008
Unaudited
                                                                                 
    2007   2008
    1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Total   1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Total
 
Gross sales (in millions):
                                                                                
Mutual funds
   $ 1,682       1,859       1,212       1,314       6,066     $ 1,354       1,839       1,635       1,487       6,315  
Managed accounts-retail
     2,759       2,260       1,764       1,809       8,592       1,701       2,118       2,026       2,068       7,914  
Managed accounts-institutional
     3,398       2,576       2,112       1,703       9,789       1,197       1,363       2,840       1,357       6,757  
Closed-end funds
     296       1,133       47       231       1,706       2       (0 )     (0 )     (0 )     2  
 
Total funds and accounts
   $ 8,134       7,827       5,135       5,057       26,153     $ 4,254       5,321       6,501       4,912       20,988  
 
 
                                                                                
Net Flows (in millions):
                                                                                
Mutual funds
   $ 1,015       621       (3 )     (32 )     1,601     $ 61       744       147       (537 )     416  
Managed accounts-retail
     (547 )     (1,253 )     (1,782 )     (2,125 )     (5,707 )     (2,523 )     (1,823 )     (1,895 )     (2,680 )     (8,921 )
Managed accounts-institutional
     2,249       1,390       337       (244 )     3,733       (584 )     112       1,174       (116 )     586  
Closed-end funds
     316       1,147       38       217       1,717       3       48       (1,172 )     (1,250 )     (2,370 )
 
Total funds and accounts
   $ 3,033       1,906       (1,411 )     (2,184 )     1,344     $ (3,042 )     (919 )     (1,745 )     (4,582 )     (10,288 )
 
 
                                                                                
Managed funds and accounts (in millions):
                                                                                
Assets under management:
                                                                                
Beginning of period
   $ 161,609       166,095       171,602       170,394       161,609     $ 164,307       153,026       151,833       134,065       164,307  
Acquisition of HydePark accounts
     —       363       —       —       363       —       —       —       —       —  
Acquisition of Winslow Capital accounts
     —       —       —       —       —       —       —       —       4,542       4,542  
Sales — funds and accounts
     8,134       7,827       5,135       5,057       26,153       4,254       5,321       6,501       4,912       20,988  
Dividend reinvestments
     103       108       109       390       709       69       155       (170 )     493       547  
Redemptions and withdrawals
     (5,204 )     (6,029 )     (6,655 )     (7,630 )     (25,518 )     (7,365 )     (6,394 )     (8,076 )     (9,988 )     (31,823 )
 
Total net flows into funds and accounts
     3,033       1,906       (1,411 )     (2,184 )     1,344       (3,042 )     (919 )     (1,745 )     (4,582 )     (10,288 )
Appreciation / (depreciation) of managed assets
     1,453       3,238       203       (3,903 )     991       (8,240 )     (274 )     (16,022 )     (14,802 )     (39,338 )
 
End of period
   $ 166,095       171,602       170,394       164,307       164,307     $ 153,026       151,833       134,065       119,223       119,223  
 
 
                                                                                
Recap by product type:
                                                                                
Mutual funds
   $ 19,584       20,160       19,967       19,195             $ 18,415       19,064       17,661       14,689          
Closed-end funds
     53,091       53,423       53,234       52,305               50,626       50,095       44,710       39,858          
Managed accounts-retail
     58,713       59,495       58,119       54,919               49,431       47,671       40,368       34,860          
Managed accounts-institutional
     34,707       38,524       39,074       37,888               34,553       35,002       31,326       29,817          
                     
Total assets under management
   $ 166,095       171,602       170,394       164,307             $ 153,026       151,833       134,065       119,223          
 
 
                                                                                
Recap by manager:
                                                                                
Nuveen
   $ 79,430       78,565       77,489       76,282             $ 74,914       75,031       69,650       64,649          
NWQ
     36,277       38,599       37,352       34,575               29,650       28,301       23,159       17,264          
Rittenhouse
     3,333       3,235       3,258       2,982               2,669       2,093       1,713       1,258          
Santa Barbara
     4,583       5,040       5,073       4,571               3,789       3,833       3,352       2,658          
Symphony
     8,953       10,293       10,427       10,822               9,838       10,202       9,960       7,113          
Tradewinds
     33,518       35,316       35,143       33,281               30,537       30,779       24,749       20,606          
HydePark
     —       553       1,653       1,794               1,629       1,594       1,483       1,134          
Winslow Capital
     —       —       —       —               —       —       —       4,542          
                     
Total assets under management
   $ 166,095       171,602       170,394       164,307             $ 153,026       151,833       134,065       119,223          
 
 
                                                                                
Recap by style:
                                                                                
Equity-based
   $ 85,531       90,728       89,276       83,577             $ 74,083       72,449       59,495       52,064          
Municipals
     64,519       64,014       64,156       64,121               63,073       63,513       60,714       57,540          
Taxable income-oriented
     16,045       16,859       16,962       16,609               15,870       15,871       13,857       9,619          
                     
Total assets under management
   $ 166,095       171,602       170,394       164,307             $ 153,026       151,833       134,065       119,223          
 

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TABLE 2
Nuveen Investments
Adjusted EBITDA (1)
Unaudited
(in thousands)
                         
    Q4 2008     Q4 2007     2008  
Operating Revenues
                        
Advisory Fees
   $ 150,459     $ 201,413     $ 707,431  
Underwriting & Distribution Revenue
     6,251       1,800       9,442  
Performance Fees / Other
     4,712       6,519       23,918  
 
                  
Total Operating Revenue
     161,422       209,732       740,791  
 
                  
 
                        
Adjusted Operating Expenses (2)
                        
Compensation & Benefits
     44,556       72,028       229,417  
Advertising & Promotion
     3,371       4,082       13,701  
Occupancy & Equipment
     4,734       4,346       18,492  
Travel & Entertainment
     2,863       3,454       11,995  
Outside & Professional Services
     10,365       10,781       41,353  
Other Operating Expenses
     6,157       5,993       21,590  
Minority Interest Expense
     73       1,818       2,003  
Pro forma Savings
     (2,214 )     (1,750 )     (13,561 )
 
                  
Total Operating Expenses
     69,905       100,752       324,990  
 
                  
 
                        
Adjusted Other Income/(Expense) (2)
     (1,202 )     508       333  
 
                        
 
                  
Subtotal
     90,315       109,488       416,134  
 
Winslow Pro forma
     1,850       —       7,400  
 
                        
 
                  
Adjusted EBITDA (1)
   $ 92,165     $ 109,488     $ 423,534  
 
                  
 
(1)   Earnings before interest, taxes, depreciation and amortization (EBITDA) is presented on an adjusted basis consistent with the definitions included in our Bank Credit Agreement. Adjusted EBITDA is a non-GAAP financial measure and has been included because it is a basis upon which our management assesses and will assess our operating performance. Adjusted EBITDA is not a measure of our liquidity or financial performance under GAAP. Our measure of adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
 
(2)   Balances exclude the impact of consolidated investment vehicles in which Nuveen has no economic interest and include adjustments consistent with our Bank Credit Agreement and thus are non-GAAP financial measures.

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TABLE 3
Nuveen Investments
Adjusted EBITDA (1) Reconciliation
Unaudited
(in thousands)
This table presents adjustments reconciling income before taxes shown in the Company’s financial statements to Adjusted EBITDA (1) calculated in accordance with the Company’s Credit Agreement.
                 
    Q4 2008     2008  
Income before taxes
     (2,125,242 )     (2,139,075 )
 
                
Net interest expense
     68,737       265,444  
Amortization & depreciation
     19,186       75,189  
 
                
Adjustments per Credit Agreement:
                
Non-cash compensation
     9,585       39,384  
Deal related expenses
     145       2,280  
Retention, severance and recruiting expense
     52,192       75,866  
Structured products distribution expense
     7,169       10,738  
Non-recurring items
     2,008,049       2,010,545  
Pro forma restructuring
     2,214       13,561  
Debt and investment related expenses
     48,280       62,202  
 
                
 
            
Subtotal
     90,315       416,134  
Winslow pro forma
     1,850       7,400  
 
                
 
            
Adjusted EBITDA (1)
   $ 92,165     $ 423,534  
 
            
 
(1)   Earnings before interest, taxes, depreciation and amortization (EBITDA) is presented on an adjusted basis consistent with the definitions included in our Bank Credit Agreement. Adjusted EBITDA is a non-GAAP financial measure and has been included because it is a basis upon which our management assesses and will assess our operating performance. Adjusted EBITDA is not a measure of our liquidity or financial performance under GAAP. Our measure of adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

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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.
             
Date: March 30, 2009   NUVEEN INVESTMENTS, INC.    
 
            
 
  By:
Name: 		  /s/ John L. MacCarthy
 
John L. MacCarthy 		       
 
  Title:   Executive Vice President    

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