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Medley Management Inc. Reports Third Quarter 2015 Results and Declares $0.20 Per Share Dividend

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NEW YORK, Nov. 16, 2015 (GLOBE NEWSWIRE) -- Medley Management Inc. (NYSE: MDLY) today reported its financial results for the three months ended September 30, 2015.

Highlights

  • Total assets under management were $4.0 billion
  • Fee earning assets under management were $3.4 billion
  • Core Net Income Per Share was $0.01 for Q3 2015
  • U.S. GAAP net income attributable to Medley Management Inc. was $0.04 per share for Q3 2015
  • Declared $0.20 per share dividend for Q3 2015 payable on December 4, 2015
  • Raised over $500 million of new institutional AUM following quarter-end


"We are pleased with our performance at Medley over the past year. We now have over $4.5 billion of AUM at the firm, having raised over $500 million from institutional investors already this current quarter," said Seth Taube, Co-Chief Executive Officer of Medley Management Inc. "For the September quarter, our overall financial results were impacted by significant market volatility. Despite the challenging market environment, our underlying business remains strong, and this same market volatility is creating an increasingly attractive backdrop to deploy capital." 

Standalone Results of Operations for the Three Months Ended September 30, 2015

Management fees increased by 3%, or $0.5 million, to $18.1 million for the three months ended September 30, 2015 as compared to $17.6 million for the same period in 2014. This increase was offset by a reversal in performance fee revenue and a decrease in other income and fees to $(12.7) million for the three months ended September 30, 2015 compared to $6.2 million for the same period in 2014. The decrease of performance fee revenue was due primarily to the reversal of performance fees of our private funds as a result of a decrease in the asset values within their underlying portfolios. Total revenues decreased by 77%, or $18.4 million, to $5.4 million for the three months ended September 30, 2015 compared to $23.8 million for the same period in 2014. Exclusive of the impact of performance fees, total revenues would have decreased by 2%, or $0.4 million, to $20.0 million for the three months ended September 30, 2015 compared to $20.4 million for the same period in 2014.

Total expenses decreased by 53%, or $4.3 million, to $3.9 million for the three months ended September 30, 2015 compared to $8.2 million for the same period in 2014. The decrease was due primarily to reversals in performance fee compensation. Exclusive of performance fee compensation, total expenses would have decreased by 17%, or $1.6 million, to $7.5 million for the three months ended September 30, 2015 compared to $9.1 million for the same period in 2014.

Total other expense, net increased by $0.9 million to $2.8 million for the three months ended September 30, 2015 compared to $1.9 million for the same period in 2014. The increase was due primarily to a $0.8 million increase in other expenses.            

Pre-Tax Core Net Income decreased by $12.8 million, to $0.5 million for the three months ended September 30, 2015 compared to the same period in 2014. Core Net Income Per Share was $0.01 per share for the three months ended September 30, 2015, compared to $0.25 per share for the same period in 2014. Exclusive of the impact of performance fees1, Pre-Tax Core Net Income would have decreased by $1.3 million, to $8.3 million for the three months ended September 30, 2015 compared to the same period in 2014. Exclusive of the impact of performance fees1, Core Net Income Per Share would have been $0.16 per share for the three months ended September 30, 2015, compared to $0.18 per share for the same period in 2014.

Core EBITDA decreased by $12.6 million, to $2.8 million for the three months ended September 30, 2015 compared to $15.4 million for the same period in 2014. Exclusive of the impact of performance fees1, Core EBITDA would have decreased by $1.2 million, to $10.5 million for the three months ended September 30, 2015 compared to $11.7 million for the same period in 2014.

Standalone Results of Operations for the Nine Months Ended September 30, 2015

Management fees increased by 19%, or $9.1 million, to $56.6 million for the nine months ended September 30, 2015 compared to $47.5 million for the same period in 2014. This increase was offset by a decrease in performance fee revenue and other income and fees to $(5.1) million for the nine months ended September 30, 2015 compared to $18.7 million for the same period in 2014. Total revenues decreased by 22%, or $14.7 million, to $51.4 million for the nine months ended September 30, 2015 compared to $66.2 million for the same period in 2014. Exclusive of performance fees, total revenues would have increased by 13%, or $7.4 million, to $62.1 million for the nine months ended September 30, 2015 compared to $54.7 million for the same period in 2014.

Total expenses decreased by 14% or, $4.4 million, to $25.7 million for the nine months ended September 30, 2015 compared to $30.1 million for the same period in 2014. The variance was due primarily to reversals in performance fee compensation. Exclusive of performance fee compensation, total expenses would have increased by 9% or $2.5 million to $30.3 million for the nine months ended September 30, 2015 compared to $27.8 million for the same period in 2014.   

Total other expense, net increased by $2.3 million to $6.8 million for the nine months ended September 30, 2015 compared to $4.4 million for the same period in 2014. The increase was due primarily to a $3.0 million increase in interest expense.

Pre-Tax Core Net Income decreased by 18%, or $5.5 million, to $25.4 million for the nine months ended September 30, 2015 compared to $30.9 million for the same period in 2014.  Core Net Income Per Share decreased by 17% to $0.48 per share for the nine months ended September 30, 2015, compared to $0.58 per share for the same period in 2014. Exclusive of the impact of performance fees1, Pre-Tax Core Net Income would have increased by 20%, or $4.7 million, to $28.6 million for the nine months ended September 30, 2015 compared to $23.9 million for the same period in 2014. Exclusive of the impact of performance fees1, Core Net Income Per Share would have increased by 18% to $0.53 per share for the nine months ended September 30, 2015, compared to $0.45 per share for the same period in 2014.

Core EBITDA decreased by $2.5 million to $32.1 million for the nine months ended September 30, 2015 compared to $34.6 million for the same period in 2014. Exclusive of the impact of performance fees1, Core EBITDA would have increased by $7.7 million to $35.2 million for the nine months ended September 30, 2015 compared to $27.5 million for the same period in 2014.

Investor Contact   Media Contact
     
 Sam Anderson   Liz Bruce – Fitzroy Communications 
 212.759.0777   212.498.9197

_________________________

1 The impact of performance fees on our standalone income statement includes the impact of performance fee revenue, performance fee compensation and the portion of net income attributable to non-controlling interests in consolidated subsidiaries relating to performance fee revenue.

Medley has also provided additional information in its Third Quarter 2015 Earnings Presentation, which can be viewed at www.mdly.com under "Investor Relations – Events/Investor Presentations."

Note: The financial results prior to September 29, 2014 reflect those of our operating subsidiaries, Medley LLC and Medley GP Holdings LLC and their consolidated subsidiaries prior to our initial public offering ("IPO") and the related reorganization.

Key Performance Indicators:            
             
  For the Three Months Ended
 For the Nine Months Ended
  September 30,  September 30,
  (unaudited) (unaudited)
  2015 2014 2015 2014
  (Amounts in thousands, except AUM, share and per share data)
Consolidated Financial Data:            
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC $ 1,057  $ 12,513  $ 18,161  $ 28,482 
             
Standalone Data:            
Pre-Tax Core Net Income (1) $ 540  $ 13,297  $ 25,434  $ 30,925 
Core Net Income (1)   701    12,713    22,877    29,858 
Core EBITDA (2)   2,790    15,416    32,110    34,594 
Core Net Income Per Share (3) $ 0.01  $ 0.25  $ 0.48  $ 0.58 
Core Net Income Margin (4)   5.7%   31.8%   28.2%   26.6%
Pro-Forma Weighted Average Shares Outstanding (5)   30,455,796    30,484,637    30,456,326    30,484,693 
             
Other Data (at period end, in millions):            
AUM $ 4,002  $ 3,635  $ 4,002  $ 3,635 
Fee Earning AUM   3,401    3,036    3,401    3,036 
                     
(1) Pre-Tax Core Net Income is calculated as Core Net Income before income taxes. Core Net Income reflects standalone net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC adjusted to exclude reimbursable expenses associated with the launch of funds, certain one-time severance costs and stock-based compensation associated with restricted stock units that were granted in connection with our IPO. In addition, for the three and nine months ended September 30, 2014, Core Net Income includes the pro-forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense, that, prior to our reorganization and IPO, were recorded as distributions from members' capital. Please refer to the reconciliation of Core Net Income to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC in Exhibit B for additional details. 
                     
(2) Core EBITDA is calculated as Core Net Income before interest expense, income taxes and depreciation. Please refer to the reconciliation of Core EBITDA to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC in Exhibit B for additional details.
                     
(3) Core Net Income Per Share is calculated as Core Net Income, adjusted for the income tax effect of assuming that all of our pre-tax earnings are subject to federal, state and local corporate income taxes, divided by Pro-Forma Weighted Average Shares Outstanding (as defined below).  We assumed an effective corporate tax rate of 43.0% for all periods presented. Please refer to the calculation of Core Net Income Per Share in Exhibit B and C for additional details.
                     
(4) Core Net Income Margin equals Core Net Income Per Share divided by total standalone revenue per share for the respective periods presented.
                     
(5) The calculation of Pro-Forma Weighted Average Shares Outstanding assumes the conversion by the pre-IPO holders of 23,333,333 Medley LLC units for 23,333,333 shares of Class A common stock at the beginning of each period presented and, at the beginning of each period in 2014, the issuance of 6,000,000 shares of Class A common stock in connection with our IPO and the grant of 1,151,389 restricted stock units in connection with our IPO, adjusted for actual forfeitures and additional grants during the period.


Fee Earning AUM

The table below presents the quarter to date roll forward of our total fee earning AUM:
             
          % of AUM
 Permanent  Long-dated    Permanent  Long-dated
 Capital  Private Funds   Capital   Private Funds
 Vehicles  and SMAs Total Vehicles and SMAs
 (Dollars in millions)    
Beginning balance, June 30, 2015$  2,241  $  1,109  $  3,350   67%  33%
Commitments   143     21     164     
Capital reduction   (12)    -     (12)    
Distributions   (32)    (18)    (50)    
Change in fund value   (34)    (17)    (51)    
Ending balance, September 30, 2015$  2,306  $  1,095  $  3,401   68%  32%


Total fee earning AUM increased by 2%, or $51 million, to $3.4 billion at September 30, 2015 compared to June 30, 2015. The permanent capital vehicles' share of fee earning AUM increased to 68% at September 30, 2015 compared to 67% at June 30, 2015.

The table below presents the year-to-date roll forward of our total fee earning AUM:
             
          % of AUM
 Permanent  Long-dated    Permanent  Long-dated
 Capital  Private Funds   Capital   Private Funds
 Vehicles  and SMAs Total Vehicles and SMAs
 (Dollars in millions)    
Beginning balance, December 31, 2014$  2,047  $  1,011  $  3,058   67%  33%
Commitments   360     209     569     
Capital reduction   (22)    (17)    (39)    
Distributions   (104)    (86)    (190)    
Change in fund value   25     (22)    3     
Ending balance, September 30, 2015$  2,306  $  1,095  $  3,401   68%  32%


Total fee earning AUM increased by 11%, or $342 million, to $3.4 billion at September 30, 2015 compared to December 31, 2014. The permanent capital vehicles' share of fee earning AUM increased to 68% at September 30, 2015 compared to 67% at December 31, 2014.

Dividend Declaration

On November 12, 2015, the Company's Board of Directors declared a quarterly dividend of $0.20 per share of Class A common stock, for the third quarter 2015, payable on December 4, 2015, to shareholders of record of the Company's Class A common stock as of the close of business on November 25, 2015.

Subsequent Event

Following quarter end, Medley executed investment management agreements with new and existing institutional investors, increasing AUM by in excess of $500 million. These commitments increased our assets under management to over $4.5 billion.

Conference Call and Webcast Information

We will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Monday, November 16, 2015 to discuss our third quarter 2015 financial results. 

All interested parties may participate in the conference call by dialing (877) 474-9504 approximately 5-10 minutes prior to the call. International callers should dial (857) 244-7557. Participants should reference Medley Management Inc. and the participant passcode of 77294151 when prompted. Following the call you may access a replay of the event via audio webcast. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through the Company's website, http://www.mdly.com. To listen to the live call, please go to the Company's website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the Company's website.

About Medley

Medley is an asset management firm offering yield solutions to retail and institutional investors. Medley's national direct origination franchise, with over 80 people, is a premier provider of capital to the middle market in the U.S. As of November 11, 2015, Medley had in excess of $4.5 billion of assets under management in two business development companies, Medley Capital Corporation (NYSE: MCC), the Sierra Income Corporation, as well as private investment vehicles. Over the past 13 years, we have invested in excess of $6.0 billion to help over 300 companies grow across 35 industries in North America. For additional information, please visit Medley Management Inc. at www.mdly.com.

Forward-Looking Statements

Statements included herein may contain "forward-looking statements". Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission, including those described in the section "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Except as required by law, the Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements made herein speak only as of the date of this press release.

This press release does not constitute an offer for any Medley fund.

Available Information

Medley Management Inc.'s filings with the Securities and Exchange Commission, press releases, earnings releases and other financial information are available at www.mdly.com.

Exhibit A.  Standalone Statements of Operations of Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
            
 For the Three Months Ended For the Nine Months Ended
 September 30, September 30,
 (unaudited) (unaudited)
 2015 2014 2015 2014
 (Amounts in thousands)
Revenues           
Management fees$  18,135  $  17,616  $  56,578  $  47,516 
Performance fees   (14,595)    3,395     (10,627)    11,471 
Other revenues and fees   1,891     2,787     5,496     7,183 
Total revenues   5,431     23,798     51,447     66,170 
            
Expenses           
Compensation and benefits   5,914     5,677     19,532     15,010 
Performance fee compensation   (3,660)    (921)    (4,578)    2,237 
General, administrative and other expenses   1,626     3,458     10,756     12,821 
Total expenses   3,880     8,214     25,710     30,068 
            
Other income (expense)           
Dividend income   222     222     665     665 
Interest expense   (2,141)    (2,016)    (6,335)    (3,380)
Other expenses, net   (838)    (87)    (1,087)    (1,707)
Total other expense, net   (2,757)    (1,881)    (6,757)    (4,422)
Income before income taxes$  (1,206) $  13,703  $  18,980  $  31,680 
Provision for (benefit from) income taxes   (113)    578     1,953     1,026 
Net income (loss)   (1,093)    13,125     17,027     30,654 
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries   (2,150)    612     (1,134)    2,172 
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC$  1,057  $  12,513  $  18,161  $  28,482 


Exhibit B.  Reconciliation of Standalone Core Net Income and Core EBITDA to Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC
            
 For the Three Months Ended For the Nine Months Ended
 September 30, September 30,
 (unaudited) (unaudited)
 2015 2014 2015 2014
 (Amounts in thousands)
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC$  1,057  $  12,513  $ 18,161 $  28,482 
Reimbursable fund startup expenses (1)   (943)    1,195    2,751    4,591 
Severance expense (1)   -     -    121    (5)
IPO date award stock-based compensation (1)   587     74    1,844    74 
Adjustment for pre-IPO guaranteed payments to members (1)(2)   -     (1,069)   -    (3,284)
Core Net Income$  701  $  12,713  $ 22,877 $  29,858 
Interest expense   2,141     2,016    6,335    3,380 
Income taxes   (161)    584    2,557    1,067 
Depreciation and amortization   109     103    341    289 
Core EBITDA$  2,790  $  15,416  $ 32,110 $  34,594 
                  
(1) Amounts are presented net of income taxes.
 
(2) Represents a pro-forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense, that, prior to our reorganization and IPO, were treated as distributions from members' capital.


Exhibit C. Calculation of Core Net Income Per Share (Standalone)
            
 For the Three Months Ended For the Nine Months Ended
 September 30, September 30,
 (unaudited) (unaudited)
 2015 2014 2015 2014
 (Amounts in thousands, except share and per share amounts)
Numerator           
Core Net Income$  701  $  12,713  $  22,877  $  29,858 
Add: Income taxes   (161)    584     2,557     1,067 
Pre-Tax Core Net Income   540     13,297     25,434     30,925 
            
Denominator           
Class A shares  6,000,211     6,000,000     6,000,071     6,000,000 
Conversion of LLC Units to Class A shares   23,333,333    23,333,333    23,333,333    23,333,333 
Restricted stock units (1)  1,122,252    1,151,304    1,122,922    1,151,360 
Pro-Forma Weighted Average Shares Outstanding (1)   30,455,796    30,484,637    30,456,326    30,484,693 
Pre-Tax Core Net Income Per Share$  0.02  $  0.44  $  0.84  $  1.01 
Less: corporate income taxes per share (2)   (0.01)    (0.19)    (0.36)    (0.43)
Core Net Income Per Share$  0.01  $  0.25  $  0.48  $  0.58 
                    
(1) The calculation of Pro-Forma Weighted Average Shares Outstanding assumes the conversion by the pre-IPO holders of 23,333,333 Medley LLC units for 23,333,333 shares of Class A common stock at the beginning of each period presented and, at the beginning of each period in 2014, the issuance of 6,000,000 shares of Class A common stock in connection with our IPO and the grant of 1,151,389 restricted stock units in connection with our IPO, adjusted for actual forfeitures and additional grants during the period.
                    
(2) Represents a per share adjustment for income taxes assuming that all of our standalone pre-tax earnings were subject to federal, state and local income taxes. We assumed an effective corporate tax rate of 43.0% for all periods presented.


Exhibit D. Condensed Consolidated Statements of Operations of Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC)
            
 For the Three Months Ended
 For the Nine Months Ended
 September 30, September 30,
 (unaudited) (unaudited)
 2015 2014 2015 2014
 (Amounts in thousands, except share and per share data)
Revenues           
Management fees$  15,870  $  17,013  $  52,280  $  43,466 
Performance fees   (1,948)    965     920     3,337 
Other revenues and fees   1,891     2,787     5,496     7,183 
Total revenues   15,813     20,765     58,696     53,986 
            
Expenses           
Compensation and benefits   5,914     5,677     19,532     15,010 
Performance fee compensation   (3,660)    (921)    (4,578)    2,237 
Consolidated Funds expenses   542     296     1,969     1,129 
General, administrative and other expenses   1,626     3,458     10,756     12,821 
Total expenses   4,422     8,510     27,679     31,197 
            
Other income (expense)           
Dividend income   222     222     665     665 
Interest expense   (2,141)    (2,016)    (6,335)    (3,380)
Other expenses, net   (865)    (268)    (1,317)    (1,586)
Interest and other income of Consolidated Funds   21,843     17,880     61,739     51,476 
Interest expense of Consolidated Funds   (3,804)    (2,524)    (11,418)    (5,586)
Net realized gain (loss) on investments of Consolidated Funds   (31,965)    (499)    (31,013)    789 
Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds   16,011     (2,369)    13,616     (9,540)
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds   1,610     1,300     1,112     103 
Total other income, net   911     11,726     27,049     32,941 
Income before income taxes   12,302     23,981     58,066     55,730 
Provision for (benefit from) income taxes   (77)    923     2,864     2,174 
Net income   12,379     23,058     55,202     53,556 
Net income attributable to non-controlling interests in Consolidated Funds   13,472     9,933     38,175     22,902 
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries   (2,150)    612     (1,134)    2,172 
Net income attributable to non-controlling interests in Medley LLC   785  $  12,135     15,576  $  28,104 
Net income attributable to Medley Management Inc.$  272     378  $  2,585     378 
            
Net income per Class A common stock:           
Basic$  0.04  $  0.05(1)  $  0.38  $  0.05(1) 
Diluted$  0.04  $  0.05(1)  $  0.38  $  0.05(1) 
Weighted average shares - Basic and Diluted   6,000,211    6,000,000    6,000,071    6,000,000 
 
(1) Based on net income attributed to Medley Management Inc. from September 29, 2014 to September 30, 2014


Exhibit E.  Condensed Consolidated Balance Sheets of Medley Management Inc.
      
 As of   
 September 30, As of
 2015 December 31,
 (unaudited)  2014
 (Amounts in thousands)
Assets     
Cash and cash equivalents$  63,754  $  87,206 
Investments, at fair value   10,884     9,901 
Management fees receivable   14,800     15,173 
Performance fees receivable   6,493     5,573 
Other assets   13,966     9,230 
      
Assets of Consolidated Funds:     
Cash and cash equivalents   105,122     38,111 
Investments, at fair value   778,971     734,870 
Interest and dividends receivable   6,124     6,654 
Other assets   3,803     3,681 
Total assets$  1,003,917  $  910,399 
      
Liabilities and Equity     
Loans payable$  102,697  $  103,057 
Accounts payable, accrued expenses and other liabilities   20,739     27,583 
Performance fee compensation payable   5,759     11,807 
      
Liabilities of Consolidated Funds:     
Accounts payable, accrued expenses and other liabilities   2,199     5,767 
Secured borrowings   134,047     141,135 
Total liabilities   265,441     289,349 
      
Equity     
Class A Common Stock   60     60 
Class B Common Stock   -     - 
Capital deficit   (8)    (2,384)
Retained earnings   108     272 
Total stockholders' equity (deficit), Medley Management Inc.   160     (2,052)
Non-controlling interests in Consolidated Funds   755,827     625,548 
Non-controlling interests in consolidated subsidiaries   (708)    1,526 
Non-controlling interests in Medley LLC   (16,803)    (3,972)
Total equity   738,476     621,050 
Total liabilities and equity$  1,003,917  $  910,399 


Exhibit F.  Condensed Consolidating Statements of Operations and Consolidated Balance Sheets of Medley Management Inc. (Prior to September 29, 2014, Medley LLC and Medley GP Holdings LLC) 
            
 For the Three Months Ended September 30, 2015
  (unaudited)
   Consolidated     
 Standalone Funds Eliminations Consolidated
 (Amounts in thousands)
Revenues:           
Management fees$  18,135  $  -  $  (2,265) $  15,870 
Performance fees   (14,595)    -     12,647     (1,948)
Other revenues and fees   1,891     -     -     1,891 
Total revenues   5,431     -     10,382     15,813 
            
Expenses:           
Compensation and benefits   5,914     -     -     5,914 
Performance fee compensation   (3,660)    -     -     (3,660)
Consolidated Funds expenses   -     2,807     (2,265)    542 
General, administrative and other expenses   1,626     -     -     1,626 
Total expenses   3,880     2,807     (2,265)    4,422 
            
Other income (expense):           
Dividend income   222     -     -     222 
Interest expense   (2,141)    -     -     (2,141)
Other income (expenses), net   (838)    -     (27)    (865)
Interest and other income of Consolidated Funds   -     21,843     -     21,843 
Interest expense of Consolidated Funds   -     (3,804)    -     (3,804)
Net realized gain (loss) on investments of Consolidated Funds   -     (31,965)    -     (31,965)
Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds   -     16,011     -     16,011 
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds   -     1,610     -     1,610 
Total other income (expense), net   (2,757)    3,695     (27)    911 
Income (loss) before income taxes   (1,206)    888     12,620     12,302 
Provision for (benefit from) income taxes   (113)    36     -     (77)
Net income (loss)   (1,093)    852     12,620     12,379 
Net income attributable to non-controlling interests in Consolidated Funds   -     -     13,472     13,472 
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries   (2,150)    -     -     (2,150)
Net income attributable to non-controlling interests in Medley LLC   785     -     -     785 
Net income attributable to Medley Management Inc.$  272  $  852  $  (852) $  272 


 For the Nine Months Ended September 30, 2015
 (unaudited)
   Consolidated     
 Standalone Funds Eliminations Consolidated
 (Amounts in thousands)
Revenues:           
Management fees$  56,578  $  -  $  (4,298) $  52,280 
Performance fees   (10,627)    -     11,547     920 
Other revenues and fees   5,496     -     -     5,496 
Total revenues   51,447     -     7,249     58,696 
            
Expenses:           
Compensation and benefits   19,532     -     -     19,532 
Performance fee compensation   (4,578)    -     -     (4,578)
Consolidated Funds expenses   -     6,267     (4,298)    1,969 
General, administrative and other expenses   10,756     -     -     10,756 
Total expenses   25,710     6,267     (4,298)    27,679 
            
Other income (expense):           
Dividend income   665     -     -     665 
Interest expense   (6,335)    -     -     (6,335)
Other income (expenses), net   (1,087)    -     (230)    (1,317)
Interest and other income of Consolidated Funds   -     61,739     -     61,739 
Interest expense of Consolidated Funds   -     (11,418)    -     (11,418)
Net realized gain (loss) on investments of Consolidated Funds   -     (31,013)    -     (31,013)
Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds   -     13,616     -     13,616 
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds   -     1,112     -     1,112 
Total other income (expense), net   (6,757)    34,036     (230)    27,049 
Income before income taxes   18,980     27,769     11,317     58,066 
Provision for income taxes   1,953     911     -     2,864 
Net income   17,027     26,858     11,317     55,202 
Net income attributable to non-controlling interests in Consolidated Funds   -     -     38,175     38,175 
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries   (1,134)    -     -     (1,134)
Net income attributable to non-controlling interests in Medley LLC   15,576     -     -     15,576 
Net income attributable to Medley Management Inc.$  2,585  $  26,858  $  (26,858) $  2,585 


 For the Three Months Ended September 30, 2014
 (unaudited)
   Consolidated     
 Standalone Funds Eliminations Consolidated
 (Amounts in thousands)
Revenues:           
Management fees$  17,616  $  -  $  (603) $  17,013 
Performance fees   3,395     -     (2,430)    965 
Other revenues and fees   2,787     -     -     2,787 
Total revenues   23,798     -     (3,033)    20,765 
            
Expenses:           
Compensation and benefits   5,677     -     -     5,677 
Performance fee compensation   (921)    -     -     (921)
Consolidated Funds expenses   -     899     (603)    296 
General, administrative and other expenses   3,458     -     -     3,458 
Total expenses   8,214     899     (603)    8,510 
            
Other income (expense):           
Dividend income   222     -     -     222 
Interest expense   (2,016)    -     -     (2,016)
Other income (expenses), net   (87)    -     (181)    (268)
Interest and other income of Consolidated Funds   -     17,880     -     17,880 
Interest expense of Consolidated Funds   -     (2,524)    -     (2,524)
Net realized gain (loss) on investments of Consolidated Funds   -     (499)    -     (499)
Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds   -     (2,369)    -     (2,369)
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds   -     1,300     -     1,300 
Total other income (expense), net   (1,881)    13,788     (181)    11,726 
Income before income taxes   13,703     12,889     (2,611)    23,981 
Provision for income taxes   578     345     -     923 
Net income   13,125     12,544     (2,611)    23,058 
Net income attributable to non-controlling interests in Consolidated Funds   -     -     9,933     9,933 
Net income attributable to non-controlling interests in consolidated subsidiaries   612     -     -     612 
Net income attributable to non-controlling interests in Medley LLC   12,135     -     -     12,135 
Net income attributable to Medley LLC$  378  $  12,544  $  (12,544) $  378 



 For the Nine Months Ended September 30, 2014
 (unaudited)
   Consolidated     
 Standalone Funds Eliminations Consolidated
 (Amounts in thousands)
Revenues:           
Management fees$  47,516  $  -  $  (4,050) $  43,466 
Performance fees   11,471     -     (8,134)    3,337 
Other revenues and fees   7,183     -     -     7,183 
Total revenues   66,170     -     (12,184)    53,986 
            
Expenses:           
Compensation and benefits   15,010     -     -     15,010 
Performance fee compensation   2,237     -     -     2,237 
Consolidated Funds expenses   -     5,179     (4,050)    1,129 
General, administrative and other expenses   12,821     -     -     12,821 
Total expenses   30,068     5,179     (4,050)    31,197 
            
Other income (expense):           
Dividend income   665     -     -     665 
Interest expense   (3,380)    -     -     (3,380)
Other income (expenses), net   (1,707)    -     121     (1,586)
Interest and other income of Consolidated Funds   -     51,476     -     51,476 
Interest expense of Consolidated Funds   -     (5,586)    -     (5,586)
Net realized gain (loss) on investments of Consolidated Funds   -     789     -     789 
Net change in unrealized appreciation (depreciation) on investments of Consolidated Funds   -     (9,540)    -     (9,540)
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds   -     103     -     103 
Total other income (expense), net   (4,422)    37,242     121     32,941 
Income before income taxes   31,680     32,063     (8,013)    55,730 
Provision for income taxes   1,026     1,148     -     2,174 
Net income   30,654     30,915     (8,013)    53,556 
Net income attributable to non-controlling interests in Consolidated Funds   -     -     22,902     22,902 
Net income attributable to non-controlling interests in consolidated subsidiaries   2,172     -     -     2,172 
Net income attributable to non-controlling interests in Medley LLC   28,104     -     -     28,104 
Net income attributable to Medley LLC$  378  $  30,915  $  (30,915) $  378 


 As of September 30, 2015
 (unaudited)
   Consolidated     
 Standalone Funds Eliminations Consolidated
 (Amounts in thousands)
Assets           
Cash and cash equivalents$  63,754  $ - $  -  $  63,754 
Investments, at fair value   11,114    -    (230)    10,884 
Management fees receivable   15,215    -    (415)    14,800 
Performance fees receivable   6,493    -    -     6,493 
Other assets   15,268    -    (1,302)    13,966 
            
Assets of Consolidated Funds:           
Cash and cash equivalents   -    105,122    -     105,122 
Investments, at fair value   -    778,971    -     778,971 
Interest and dividends receivable   -    6,124    -     6,124 
Other assets   -    3,803    -     3,803 
Total assets$  111,844  $ 894,020 $  (1,947) $  1,003,917 
            
Liabilities and equity           
Loans payable$  102,697  $ - $  -  $  102,697 
Accounts payable, accrued expenses and other liabilities   20,739    -    -     20,739 
Performance fee compensation payable   5,759    -    -     5,759 
            
Liabilities of Consolidated Funds:           
Accounts payable, accrued expenses and other liabilities   -    3,916    (1,717)    2,199 
Secured borrowings   -    134,047    -     134,047 
Total liabilities   129,195    137,963    (1,717)    265,441 
            
Equity           
Class A Common Stock   60    -    -     60 
Class B Common Stock   -    -    -     - 
Capital deficit   (8)   -    -     (8)
Retained earnings   108    -    -     108 
Total stockholders' equity (deficit), Medley Management Inc.   160    -    -     160 
Non-controlling interests in Consolidated Funds   -    -    755,827     755,827 
Non-controlling interests in consolidated subsidiaries   (708)   -    -     (708)
Non-controlling interests in Medley LLC   (16,803)   -    -     (16,803)
Members' equity of consolidated funds   -    756,057    (756,057)    - 
Total (deficit) equity   (17,351)   756,057    (230)    738,476 
Total liabilities and equity$  111,844  $ 894,020 $  (1,947) $  1,003,917 


 As of December 31, 2014
   Consolidated     
 Standalone Funds Eliminations Consolidated
 (Amounts in thousands)
Assets           
Cash and cash equivalents$  87,206  $ - $  -  $  87,206 
Investments, at fair value   22,143    -    (12,242)    9,901 
Management fees receivable   15,173    -    -     15,173 
Performance fees receivable   5,573    -    -     5,573 
Other assets   9,230    -    -     9,230 
            
Assets of Consolidated Funds:           
Cash and cash equivalents   -    38,111    -     38,111 
Investments, at fair value   -    734,870    -     734,870 
Interest and dividends receivable   -    6,654    -     6,654 
Other assets   -    5,057    (1,376)    3,681 
Total assets$  139,325  $ 784,692 $  (13,618) $  910,399 
            
Liabilities and equity           
Loans payable$  103,057  $ - $  -  $  103,057 
Accounts payable, accrued expenses and other liabilities   28,959    -    (1,376)    27,583 
Performance fee compensation payable   11,807    -    -     11,807 
            
Liabilities of Consolidated Funds:           
Accounts payable, accrued expenses and other liabilities   -    5,767    -     5,767 
Secured borrowings   -    141,135    -     141,135 
Total liabilities   143,823    146,902    (1,376)    289,349 
            
Equity           
Class A Common Stock   60    -    -     60 
Class B Common Stock   -    -    -     - 
Capital deficit   (2,384)   -    -     (2,384)
Retained earnings   272    -    -     272 
Total stockholders' equity (deficit), Medley Management Inc.   (2,052)   -    -     (2,052)
Non-controlling interests in Consolidated Funds   -    -    625,548     625,548 
Non-controlling interests in consolidated subsidiaries   1,526    -    -     1,526 
Non-controlling interests in Medley LLC   (3,972)   -    -     (3,972)
Members' equity of consolidated funds   -    637,790    (637,790)    - 
Total (deficit) equity   (4,498)   637,790    (12,242)    621,050 
Total liabilities and equity$  139,325  $ 784,692 $  (13,618) $  910,399 

 

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