Q4 2012 Pzena Investment Management Earnings Conference Call

Wednesday, February 13, 2013 10:00 a.m. ET  


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PZN (Common Stock)

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PZENA INVESTMENT MANAGEMENT, INC. REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2012

  • 2012 revenue was $19.3 million for the fourth quarter and $76.3 million for the full year. 

  • 2012 operating income was $9.5 million for the fourth quarter and $37.2 million for the full year. 

  • 2012 GAAP diluted earnings per share was $0.08 for the fourth quarter and $0.32 for the full year.  For the same periods, non-GAAP diluted earnings per share was $0.08 and $0.31, respectively. 

  • Declared a year-end dividend of $0.16 per share - in line with the targeted cash dividend ratio of 70% to 80% of non-GAAP net income. 

NEW YORK, NEW YORK, February 12, 2013 - Pzena Investment Management, Inc. (NYSE: PZN) reported the following U.S. GAAP (U.S. Generally Accepted Accounting Principles) and non-GAAP basic and diluted net income and earnings per share for the three and twelve months ended December 31, 2012 and 2011 (in thousands, except per-share amounts):

  

  GAAP Basis Non-GAAP Basis
  For the Three Months Ended For the Three Months Ended 
  December 31,  December 31, 
  2012 2011 2012 2011
  (unaudited)
         
Basic Net Income$     956$     369$     891$     854
Basic Earnings Per Share$    0.09$    0.03$    0.08$    0.08
         
Diluted Net Income$   5,226$     369$   5,161$   5,063
Diluted Earnings Per Share$    0.08$    0.03$    0.08$    0.08
         
  GAAP Basis Non-GAAP Basis
  For the Twelve Months Ended For the Twelve Months Ended
  December 31,  December 31, 
  2012 2011 2012 2011
  (unaudited)
         
Basic Net Income$   3,840$   3,382$   3,419$   3,611
Basic Earnings Per Share$    0.36$    0.34$    0.32$    0.36
         
Diluted Net Income$ 20,821$ 20,631$ 20,399$ 23,156
Diluted Earnings Per Share$    0.32$    0.32$    0.31$     0.36

The results for the three and twelve months ended December 31, 2012 and 2011 include recurring adjustments related to the Company's tax receivable agreement and the associated liability to its selling and converting shareholders, in addition to the adjustments related to certain one-time charges recognized in operating expense in the fourth quarter of 2011.  Management believes that these accounting adjustments add a measure of non-operational complexity which obscures the underlying performance of the business.  In evaluating the financial condition and results of operations, management also reviews non-GAAP measures of earnings, which exclude these items.  Excluding these adjustments, non-GAAP diluted net income and non-GAAP diluted earnings per share were $5.2 million and $0.08, respectively, for the three months ended December 31, 2012, and $5.1 million and $0.08, respectively, for the three months ended December 31, 2011.  Non-GAAP diluted net income and non-GAAP diluted earnings per share were $20.4 million and $0.31, respectively, for the twelve months ended December 31, 2012 and $23.2 million and $0.36, respectively, for the twelve months ended December 31, 2011.  GAAP and non-GAAP net income for diluted earnings per share generally assume all operating company membership units are converted into Company stock at the beginning of the reporting period, and the resulting change to Company GAAP and non-GAAP net income associated with its increased interest in the operating company is taxed at the Company's effective tax rate, exclusive of the adjustments noted above and other one-time adjustments.  When this conversion results in an increase in earnings per share or a decrease in loss per share, diluted net income and diluted earnings per share are assumed to be equal to basic net income and basic earnings per share for the reporting period.

Management uses the non-GAAP measures to assess the strength of the underlying operations of the business.  It believes the non-GAAP measures provide information to better analyze the Company's operations between periods and over time.  Investors should consider the non-GAAP measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
       

Assets Under Management (unaudited)        
($ billions)          
  Three Months Ended Twelve Months Ended
  December 31, September 30, December 31, December 31, December 31,
  2012 2012 2011 2012 2011
           
Institutional Accounts          
  Assets          
     Beginning of Period $11.2$10.9$10.0$11.3$12.5
          Inflows 0.1  0.3  0.7  0.7  2.1
          Outflows (0.6) (0.7) (0.5) (2.8) (2.2)
          Net Flows (0.5) (0.4) 0.2 (2.1) (0.1)
          Market Appreciation/(Depreciation)0.5 0.7 1.1 2.0 (1.1)
     End of Period $11.2$11.2$11.3$11.2$11.3
           
Retail Accounts          
  Assets          
     Beginning of Period Assets$5.6$2.2$2.2$2.2$3.1
          Inflows 0.4  3.3  0.2  4.0  0.9
          Outflows (0.3) (0.3) (0.5) (1.0) (1.6)
          Net Flows 0.1 3.0 (0.3) 3.0 (0.7)
          Market Appreciation/(Depreciation)0.2 0.4 0.3 0.7 (0.2)
     End of Period $5.9$5.6$2.2$5.9$2.2
           
Total          
  Assets          
     Beginning of Period $16.8$13.1$12.2$13.5$15.6
          Inflows 0.5 3.6 0.9 4.7 3.0
          Outflows (0.9) (1.0) (1.0) (3.8) (3.8)
          Net Flows (0.4) 2.6 (0.1) 0.9 (0.8)
          Market Appreciation/(Depreciation)0.7 1.1 1.4 2.7 (1.3)
     End of Period $17.1$16.8$13.5$17.1$13.5
           

Financial Discussion  

Revenue (unaudited)      
($ thousands)      
  Three Months Ended
  December 31,  September 30, December 31, 
  2012 2012 2011
       
Institutional Accounts  $              15,809 $              15,741 $              16,596
Retail Accounts                3,503                3,120                2,340
    Total $              19,312 $              18,861 $              18,936
       
       
    Twelve Months Ended
    December 31,  December 31, 
    2012 2011
       
Institutional Accounts    $              64,919 $              72,002
Retail Accounts                11,361              11,043
    Total   $              76,280 $              83,045


Revenue was $19.3 million for the fourth quarter of 2012, an increase of 2.0% from $18.9 million for the fourth quarter of 2011, and an increase of 2.4% from $18.9 million for the third quarter of 2012.  For the twelve months ended December 31, 2012, revenues were $76.3 million, a decrease of 8.1%, from $83.0 million, for the twelve months ended December 31, 2011.

Average assets under management for the fourth quarter of 2012 was $16.8 billion, an increase of 27.3% from $13.2 billion for the fourth quarter of 2011, and an increase of 13.5% from $14.8 billion for the third quarter of 2012.  The increase from the fourth quarter of 2011 and from the third quarter of 2012 was primarily due to the full quarter impact of the large inflow associated with the Company's assignment to manage 28% of the Vanguard Windsor Fund as of the beginning of August 2012.  

The weighted average fee rate was 0.461% for the fourth quarter of 2012, decreasing from 0.573% for the fourth quarter of 2011, and from 0.508% for the third quarter of 2012.  The decrease from the fourth quarter of 2011 was primarily due to performance fees recognized during the fourth quarter of 2011 combined with a higher mix of assets in the Company's retail Large Cap Expanded Value strategy (formerly known as Large Cap Diversified Value) driven by the Vanguard assignment, which carries a lower fee.  The full quarter impact of the higher mix of assets in the Company's retail Large Cap Expanded Value strategy also drove the variance from the third quarter of 2012.

The weighted average fee rate for institutional accounts was 0.569% for the fourth quarter of 2012, decreasing from 0.608% for the fourth quarter of 2011, and decreasing from 0.575% for the third quarter of 2012.  The net decrease from the fourth quarter of 2011 was primarily due to performance fees recognized in the fourth quarter of 2011, partially offset by a higher mix of assets in the Company's Global strategy, which generally carries higher fee rates.  The decrease from the third quarter of 2012 was due to the timing of asset flows in our institutional accounts.

The weighted average fee rate for retail accounts was 0.248% for the fourth quarter of 2012, decreasing from 0.407% for the fourth quarter of 2011, and from 0.321% for the third quarter of 2012.  The decrease from the fourth quarter of 2011 and from the third quarter of 2012 was primarily due to the full quarter impact of the Vanguard assignment.

Total operating expenses were $9.8 million in the fourth quarter of 2012, decreasing from $14.8 million in the fourth quarter of 2011 and increasing from $9.5 million for the third quarter of 2012.  The increase from the third quarter of 2012 was a result of fluctuations in various expense categories and a slight increase in compensation cost.  The decrease in quarterly operating expenses year-over-year was primarily due to one-time charges associated with the sublease of excess real estate and a charge related to certain employee departures during the fourth quarter of 2011.  A reconciliation of GAAP to non-GAAP operating expenses is shown below:

Operating Expenses (unaudited)      
($ thousands)       
    Three Months Ended
    December 31, September 30, December 31,
    2012 2012 2011
         
Compensation and Benefits Expense$              7,881$              7,689$            10,190
General and Administrative Expense               1,963               1,764               4,654
    GAAP Operating Expenses               9,844               9,453             14,844
One-time Charges                       -                      -              (4,798)
    Non-GAAP Operating Expenses$              9,844$              9,453$             10,046
         
      Twelve Months Ended
      December 31, December 31,
      2012 2011
         
Compensation and Benefits Expense  $            31,755$            34,565
General and Administrative Expense                 7,346             10,626
    GAAP Operating Expenses               39,101             45,191
One-time Charges                         -              (4,798)
    Non-GAAP Operating Expenses  $            39,101$            40,393
         

As of December 31, 2012, employee headcount was 70, up from 67 at December 31, 2011 and from 68 at September 30, 2012.  

The operating margin was 49.0% on a GAAP basis for the fourth quarter of 2012, compared to 21.6% for the fourth quarter of 2011, and 49.9% for the third quarter of 2012.  The operating margin was 46.9% on a non-GAAP basis for the fourth quarter of 2011.

Other income/(expense) were income of $0.2 million and $1.5 million for the fourth quarters of 2012 and 2011, respectively, and an expense of $1.2 million for the third quarter of 2012.  Other income/(expense) includes the net realized and unrealized gain/(loss) recognized by the Company on its direct investments, as well as those recognized by the Company's external investors on their investments in investment partnerships that the Company is required to consolidate.  A portion of realized and unrealized gain/(loss) associated with the investments of the Company's outside interests are offset in net income attributable to non-controlling interests.  Fourth quarter 2012 other income/(expense) also included an expense of $0.3 million associated with an increase in the Company's liability to its selling and converting shareholders resulting from changes in the realizability of its related deferred tax asset.  Such adjustments generated income of $0.7 million in the fourth quarter of 2011 and an expense of $1.7 million in the third quarter of 2012.  Details of other income/(expense), as well as a reconciliation of the related GAAP and non-GAAP measures, are shown below:

  

Other Income/(Expense) (unaudited)      
($ thousands)      
  Three Months Ended
  December 31,  September 30, December 31, 
  2012 2012 2011
       
Net Interest and Dividend Income$                 97$                 94$               161
Net Realized and Unrealized Gain from Investments               459                395                354
Change in Liability to Selling and Converting Shareholders¹             (305)           (1,684)                726
Other Income/ (Expense)                (43)                (44)                297
    GAAP Other Income/ (Expense)                208           (1,239)             1,538
Change in Liability to Selling and Converting Shareholders¹               305             1,684              (726)
Outside Interests of Investment Partnerships²              (291)              (210)              (336)
    Non-GAAP Other Income, Net of Outside Interests $                222 $                235 $                476
       
    Twelve Months Ended
    December 31,  December 31, 
    2012 2011
       
Net Interest and Dividend Income  $               318$               405
Net Realized and Unrealized Gain/(Loss) from Investments             1,520              (355)
Change in Liability to Selling and Converting Shareholders¹           (2,647)            (1,581)
Other Income/ (Expense)                  (54)                  65
    GAAP Other Income/ (Expense)                (863)            (1,466)
Change in Liability to Selling and Converting Shareholders¹             2,647             1,581
Outside Interests of Investment Partnerships²                (854)                327
    Non-GAAP Other Income, Net of Outside Interests $                930 $                442
                                                                                                                            
  1. Reflects the change in liability to the Company's selling and converting shareholders associated with the deferred tax asset generated by the Company's initial public offering and subsequent unit conversions. 

  2. Represents the  non-controlling interest allocation of the (income)/loss of the Company's consolidated investment partnerships to its external investors. 


The Company recognized $1.0 million and $1.6 million in income tax expense for the fourth quarters of 2012 and 2011, respectively, and a $0.8 million income tax benefit for the third quarter of 2012.  Fourth quarter 2012 income taxes included $0.4 million in income associated with a decrease to the valuation allowance recorded against the Company's deferred tax asset related to the basis step ups associated with operating company unit exchanges.  Such adjustments generated $0.8 million in income tax expense in the fourth quarter of 2011 and $2.1 million in income tax benefit in the third quarter of 2012.  Details of the income tax expense/ (benefit), as well as a reconciliation of the related GAAP and non-GAAP measures, are shown below:  
Income Tax (Benefit)/Expense  (unaudited)      
($ thousands)      
  Three Months Ended
  December 31,  September 30, December 31, 
  2012 2012 2011
       
 GAAP Corporate Income Tax Expense  $                 686 $                 654 $                  255
 Add Back: Effects of One-Time Adjustments1                      -                      -                  333
     Non-GAAP Corporate Income Tax Expense                  686                  654                  588
 GAAP Unincorporated Business Tax Expense                   642                  594                  555
 Add Back: Effects of One-Time Adjustments1                      -                      -                       5
     Non-GAAP Unincorporated Business Tax Expense                  642                  594                  560
     Non-GAAP Income Tax Expense               1,328               1,248               1,148
         Change in Valuation Allowance2                 (370)             (2,075)                  768
         Less: Effects of One-Time Adjustments1                      -                       -                 (338)
 GAAP Income Tax Expense/(Benefit)  $                  958 $                 (827) $               1,578
       
    Twelve Months Ended
    December 31,  December 31, 
    2012 2011
       
 GAAP Corporate Income Tax Expense    $               2,559 $               2,323
 Add Back: Effects of One-Time Adjustments1                        -                   333
     Non-GAAP Corporate Income Tax Expense                 2,559               2,656
 GAAP Unincorporated Business Tax Expense                  2,420               2,617
 Add Back: Effects of One-Time Adjustments1                        -                      5
     Non-GAAP Unincorporated Business Tax Expense                 2,420               2,622
     Non-GAAP Income Tax Expense                  4,979                5,278
         Change in Valuation Allowance2                (3,068)              (1,795)
         Less: Effects of One-Time Adjustments1                        -                   (338)
 GAAP Income Tax Expense/(Benefit)    $               1,911 $               3,145
       

  

  1. Reflects the effects of certain one-time charges on income tax expense/(benefit). 

  2. Reflects the change in the valuation allowance assessed against the deferred tax asset established as part of the Company's initial public offering and subsequent unit conversions. 

Details of the non-controlling interests in the operations of the Company's operating company and consolidated subsidiaries, as well as a reconciliation of the related GAAP and non-GAAP measures, are shown below:  

Non-Controlling Interests (unaudited)      
($ thousands)      
     
  Three Months Ended
  December 31,  September 30, December 31, 
   2012   2012   2011 
       
 GAAP Operating Company Allocation¹  $                7,471 $                7,523 $                3,347
 Add Back: Effects of One-Time Adjustments2                       -                       -                4,017
     Non-GAAP Operating Company Allocation                 7,471                7,523                7,364
 Outside Interests of Investment Partnerships3                    291                   210                   336
     Non-GAAP Net Income Attributable to Non-Controlling Interests                 7,762                7,733                7,700
         Less: Effects of One-Time Adjustments2                       -                        -               (4,017)
 GAAP Net Income Attributable to Non-Controlling Interests  $                7,762 $                7,733 $                3,683
       
    Twelve Months Ended
    December 31,  December 31, 
     2012   2011 
       
 GAAP Operating Company Allocation¹    $              29,711 $              30,188
 Add Back: Effects of One-Time Adjustments2                         -                4,017
     Non-GAAP Operating Company Allocation                29,711               34,205
 Outside Interests of Investment Partnerships3                     854                  (327)
     Non-GAAP Net Income Attributable to Non-Controlling Interests                 30,565               33,878
         Less: Effects of One-Time Adjustments2                         -                (4,017)
 GAAP Net Income Attributable to Non-Controlling Interests    $              30,565 $              29,861
       
  1. Reflects the change in the liability to the Company's selling and converting shareholders associated with the deferred tax asset generated by the Company's initial public offering and subsequent unit conversions. 

  2. Represents the effects of certain one-time charges on non-controlling interests. 

  3. Represents the non-controlling interest allocation of (income)/loss of the Company's consolidated investment partnerships to its external investors. 

On February 5, 2013, the Company's Board of Directors approved a quarterly dividend of $0.16 per share of its Class A common stock to be declared on February 12, 2013.  The following dates apply to the dividend:

Record Date:         February 22, 2013

Payment Date:      March 7, 2013

During the last twelve months, inclusive of the dividend noted above, the Company declared total dividends of $0.25 per share of its Class A common stock.  

Fourth quarter 2012 Earnings Call Information

Pzena Investment Management, Inc. (NYSE: PZN) will hold a conference call to discuss the Company's financial results and outlook at 10:00 a.m. ET, Wednesday, February 13, 2013.  The call will be open to the public.

Webcast Instructions: To gain access to the webcast, which will be "listen-only," go to the Events page in the Investor Relations area of the Company's website, www.pzena.com.

Teleconference Instructions: To gain access to the conference call via telephone, U.S./Canada callers should dial 866-700-6067; international callers should dial 617-213-8834.  The conference ID number is 70941776.  

Replay: The conference call will be available for replay through February 28, 2013, on the web using the information given above.

About Pzena Investment Management

Pzena Investment Management, LLC, the firm's operating company, is a value-oriented investment management firm.  Founded in 1995, Pzena Investment Management has built a diverse, global client base.  More firm and stock information is posted at www.pzena.com.

Forward-Looking Statements

This press release may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current assumptions, expectations and projections about future events. Words like "believe," "anticipate," "intend," "estimate," "expect," "project," and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of the Company's management and involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.

Among the factors that could cause actual results to differ from those expressed or implied by a forward-looking statement are those described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K, as filed with the SEC on March 14, 2012 and in the Company's Quarterly Reports on Form 10-Q as filed with the SEC. In light of these risks, uncertainties, assumptions, and factors, actual results could differ materially from those expressed or implied in the forward-looking statements.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this release.

The Company is not under any obligation and does not intend to make publicly available any update or other revisions to any forward-looking statements to reflect circumstances existing after the date of this release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

Contact:  Gary Bachman, 212-355-1600 or bachman@pzena.com

 PZENA INVESTMENT MANAGEMENT, INC. 
 
       
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION 
 (in thousands) 
       
     As of 
    December 31,  December 31,
     2012   2011 
     (unaudited)   
 ASSETS     
  Cash and Cash Equivalents  $                     32,645 $                     35,083
  Restricted Cash                        1,030                       1,030
  Due from Broker                            22                          457
  Advisory Fees Receivable                      14,626                     14,717
  Investments, at Fair Value                        5,170                       4,919
  Prepaid Expenses and Other Assets                           719                          808
  Deferred Tax Asset, Net of Valuation Allowance     
   of $59,917 and $61,050, respectively                        9,688                       8,835
  Property and Equipment, Net     
   of Accumulated Depreciation of      
   $2,695 and $2,516, respectively                            779                           829
        TOTAL ASSETS  $                      64,679 $                      66,678
       
 LIABILITIES AND EQUITY     
  Liabilities:     
   Accounts Payable and Accrued Expenses  $                        4,305 $                        6,062
   Due to Broker                              23                               -
   Liability to Selling and Converting Shareholders                         9,656                      11,218
   Lease Liability                         1,203                        1,795
   Deferred Compensation Liability                         1,327                        1,173
   Other Liabilities                            199                           206
        TOTAL LIABILITIES                       16,713                      20,454
       
  Equity:     
   Total Pzena Investment Management, Inc.'s Equity                       14,569                      13,937
   Non-Controlling Interests                       33,397                      32,287
        TOTAL EQUITY                       47,966                      46,224
        TOTAL LIABILITIES AND EQUITY  $                      64,679 $                      66,678
       

 PZENA INVESTMENT MANAGEMENT, INC. 
           
 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS 
 (in thousands, except share and per-share amounts) 
           
           
    Three Months Ended Twelve Months Ended
    December 31,  December 31, 
     2012   2011   2012   2011 
           
 REVENUE  $            19,312 $            18,936 $            76,280 $            83,045
           
 EXPENSES         
 Compensation and Benefits Expense               7,881            10,190            31,755            34,565
 General and Administrative Expense               1,963               4,654               7,346             10,626
  TOTAL OPERATING EXPENSES               9,844             14,844             39,101             45,191
 Operating Income               9,468              4,092            37,179            37,854
           
 Other Income/(Expense)                  208               1,538                 (863)            (1,466)
           
 Income Before Taxes               9,676              5,630            36,316            36,388
           
 Income Tax Expense                  958               1,578               1,911               3,145
 Consolidated Net Income               8,718              4,052            34,405            33,243
           
 Less: Net Income Attributable to Non-Controlling Interests              7,762               3,683             30,565             29,861
           
 Net Income Attributable to Pzena          
   Investment Management, Inc.   $                 956  $                 369  $              3,840  $              3,382
           
 Earnings per Share - Basic and Diluted Attributable to        
 Pzena Investment Management, Inc. Common Stockholders:     
           
 Net Income for Basic Earnings per Share  $                 956 $                 369 $              3,840 $              3,382
 Basic Earnings per Share  $                0.09 $                0.03 $                0.36 $                0.34
 Basic Weighted Average Shares Outstanding       11,224,339      10,575,089      10,787,540        9,972,978
           
 Net Income for Diluted Earnings per Share  $              5,226 $                 369 $            20,821 $            20,631
 Diluted Earnings per Share  $                0.08 $                0.03 $                0.32 $                0.32
 Diluted Weighted Average Shares Outstanding      65,529,624      10,575,089      65,491,273      65,095,797

  

 PZENA INVESTMENT MANAGEMENT, INC. 
           
 UNAUDITED NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS 
 (in thousands, except share and per-share amounts) 
           
           
    Non-GAAP Basis Non-GAAP Basis
    Three Months Ended Twelve Months Ended
    December 31,  December 31, 
     2012   2011   2012   2011 
           
 REVENUE  $             19,312 $             18,936 $             76,280 $             83,045
           
 EXPENSES         
 Compensation and Benefits Expense                7,881               8,007             31,755             32,382
 General and Administrative Expense               1,963                2,039                7,346                8,011
  TOTAL OPERATING EXPENSES                9,844              10,046              39,101              40,393
 Operating Income                9,468               8,890             37,179             42,652
           
 Other Income, Net of Outside Interests                  222                  476                  930                  442
           
 Income Before Taxes and Operating Company Allocation              9,690               9,366             38,109             43,094
           
 Unincorporated Business Tax Expense                 642                  560               2,420               2,622
 Allocable Income                9,048               8,806             35,689             40,472
           
 Operating Company Allocation               7,471               7,364             29,711             34,205
 Income Before Corporate Income Taxes               1,577               1,442               5,978               6,267
           
 Corporate Income Tax Expense                  686                  588               2,559               2,656
 Non-GAAP Net Income  $                  891  $                  854  $               3,419  $               3,611
 Effect of One-time Adjustments                      -                   (443)                     -                   (443)
 Tax Receivable Agreement Income, Net of Taxes                    65                    (42)                  421                   214
 GAAP Net Income  $                  956  $                  369  $               3,840  $               3,382
           
 Earnings Per Share - Basic and Diluted Attributable to        
 Pzena Investment Management, Inc. Common Stockholders:     
           
  Net Income for Basic Earnings per Share  $                  891 $                  854 $               3,419 $               3,611
  Basic Earnings per Share  $                 0.08 $                 0.08 $                 0.32 $                 0.36
  Basic Weighted Average Shares Outstanding        11,224,339       10,575,089       10,787,540         9,972,978
           
  Net Income for Diluted Earnings per Share  $               5,161 $               5,063 $             20,399 $             23,156
  Diluted Earnings per Share  $                 0.08 $                 0.08 $                 0.31 $                 0.36
  Diluted Weighted Average Shares Outstanding       65,529,624       64,930,708       65,491,273       65,095,797

HUG#1677170

PZENA INVESTMENT MANAGEMENT, INC. ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2012 EARNINGS CONFERENCE CALL

New York, NY, January 29, 2013:  Pzena Investment Management, Inc. (NYSE: PZN) today announced that it will hold a conference call to discuss the Company's financial results and outlook at 10:00 a.m. ET, Wednesday, February 13, 2013.  The call will be open to the public.

Webcast Instructions: To gain access to the webcast, which will be "listen-only," go to the Events page in the Investor Relations area of the Company's website, www.pzena.com.

Teleconference Instructions: To gain access to the conference call via telephone, U.S./Canada callers should dial 866-700-6067; international callers should dial 617-213-8834.  The conference ID number is 70941776.   

Replay: The conference call will be available for replay through March 1, 2013, on the web using the information given above.

About Pzena
Pzena Investment Management, LLC, the firm's operating company, is a value-oriented investment management firm.  Founded in 1995, Pzena Investment Management has built a diverse, global client base.  More firm and stock information is posted at www.pzena.com.

Contact: Gary Bachman, 212-355-1600 or bachman@pzena.com.

 


HUG#1673987