OREANDA-NEWS. Medley Management Inc. today reported its financial results for its first quarter ended March 31, 2016.

“In the first quarter of 2016, our assets under management grew by 5% to $5 billion, or 28% year over year.  With substantial capital available to invest and planned new product expansion we are well positioned for growth in the quarters and years ahead,” said Brook Taube, Co-CEO of Medley.

Results of Operations for the Three Months Ended March 31, 2016

Total revenues decreased by 31%, or $7.9 million, for the three months ended March 31, 2016 compared to the same period in 2015. This decrease was primarily due to a reversal in performance fee revenue of $0.6 million for the three months ended March 31, 2016 compared to an accrual of performance fee revenue of $6.3 million for the same period in 2015. Exclusive of performance fees, total revenues would have decreased by 5%, or $1.0 million, to $18.2 million compared to the same period in 2015.

Total expenses increased by 16% or, $1.9 million, to $13.8 million for the three months ended March 31, 2016 compared to the same period in 2015. The increase was due primarily to an increase in general, administrative and other expenses as a result of higher expense support agreement expenses related to Sierra Income Corporation, one of our permanent capital vehicles. 

Total other expense, net increased by $0.5 million to $2.6 million for the three months ended March 31, 2016 compared to the same period in 2015.  The increase was due primarily to an increase in expense associated with our revenue share payable.            

Pre-Tax Core Net Income decreased by $6.5 million, to $6.8 million for the three months ended March 31, 2016 compared to the same period in 2015.  Core Net Income Per Share was $0.13 for the three months ended March 31, 2016 compared to $0.25 for the same period in 2015. Exclusive of the impact of performance fees1, Pre-Tax Core Net Income would have decreased by $1.1 million to $7.3 million for the three months ended March 31, 2016 compared to the same period in 2015 and Core Net Income Per Share would have been $0.14 for the three months ended March 31, 2016 compared to $0.16 for the same period in 2015.

Core EBITDA decreased by $6.4 million to $9.1 million for the three months ended March 31, 2016 compared to the same period in 2015. Exclusive of the impact of performance fees1, Core EBITDA would have decreased by $0.9 million to $9.6 million for the three months ended March 31, 2016, compared to the same period in 2015.