Artificial Intelligence
WisdomTree Announces Fourth Quarter 2019 Results – Diluted EPS of $0.02 ($0.06 as adjusted)
NEW YORK, Jan. 31, 2020 (GLOBE NEWSWIRE) — WisdomTree Investments, Inc. (NASDAQ: WETF) today reported financial results for the fourth quarter of 2019.
$4.3 million net income ($10.11 million net income, as adjusted), see “Non-GAAP Financial Measurements” for additional information.
$63.6 billion of ending AUM, an increase of 6.1% resulting from market appreciation and net inflows for the quarter and an increase of 17.6% for the full year.
$368 million of net inflows ($560 million of net inflows excluding HEDJ/DXJ), driven by flows into our U.S. equity, fixed income and emerging markets products, partly offset by outflows from our commodity and international developed market equity products. For the full year, net inflows were $572 million or $3.3 billion excluding outflows from HEDJ/DXJ.
0.44% average global advisory fee, unchanged from the prior quarter.
$68.9 million of operating revenues, an increase of 1.8% primarily due to higher average AUM of our U.S. listed products.
81.2% gross margin1 for our U.S. Business, a 0.4 point increase due to higher revenues.
70.7% gross margin1 for our International Business, a 1.9 point decrease due to higher market making fees incurred in connection with transitioning to new arrangements as well as costs associated with preparing our products for Brexit.
21.5% operating income margin (22.0%1 as adjusted), a 2.3 point decrease (2.1 point decrease, as adjusted1) primarily due to higher non-compensation expenses, partly offset by higher revenues.
$6.0 million of available capital used to pay down debt, in connection with our capital management strategy.
$0.03 quarterly dividend declared, payable on February 26, 2020 to stockholders of record as of the close of business February 12, 2020.
We are currently pursuing an exit from our $58 million investment in AdvisorEngine Inc. While the process is not yet finalized, we estimate taking a non-cash impairment charge of $22.0 million to $30.0 million in the fourth quarter, which is not yet included in these unaudited financial results. The final impairment charge will be recognized and disclosed in our Form 10-K. We do not anticipate the exit of our investment will drive any asset attrition or change our organic growth outlook.
Update from Jonathan Steinberg, WisdomTree CEO
“WisdomTree exited 2019 with momentum building across our business. The performance track records of our funds remain excellent with thirty-five 4- or 5-star Morningstar rated funds across our ETF and UCITS product range. We’ve generated positive net flows in four of the past five quarters, adoption of our model portfolios by advisors is accelerating and we are excited by the recent launch of the Siegel-WisdomTree models.” |
“As we look toward 2020, we are focused on capitalizing on the tailwinds that exist in our business, continuing to drive operating efficiencies and prudently investing to remain at the forefront of industry innovation. For example, in January we announced a strategic investment in Securrency, Inc., a blockchain-based financial services infrastructure company. Blockchain has the potential to be revolutionary in financial services and we believe we have the right vision and the right partner to be a global leader in digital assets. There are reasons to be optimistic, and I believe WisdomTree has reached an inflection point with top line and bottom line growth set to emerge.” |
OPERATING AND FINANCIAL HIGHLIGHTS
Three Months Ended | |||||||||||||||
Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|||||||||||
Consolidated Operating Highlights ($, in billions): | |||||||||||||||
AUM | $ | 63.6 | $ | 60.0 | $ | 60.4 | $ | 59.1 | $ | 54.1 | |||||
Net inflows/(outflows) | $ | 0.4 | $ | (0.7 | ) | $ | 0.3 | $ | 0.6 | $ | 0.2 | ||||
Average AUM | $ | 61.9 | $ | 60.3 | $ | 58.6 | $ | 57.7 | $ | 56.4 | |||||
Average advisory fee | 0.44 | % | 0.44 | % | 0.45 | % | 0.46 | % | 0.47 | % | |||||
Consolidated Financial Highlights ($, in millions, except per share amounts): | |||||||||||||||
Operating revenues | $ | 68.9 | $ | 67.7 | $ | 66.3 | $ | 65.5 | $ | 67.9 | |||||
Net income/(loss) | $ | 4.3 | $ | 4.2 | $ | 2.5 | $ | 8.8 | $ | (11.6 | ) | ||||
Diluted earnings/(loss) per share | $ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.05 | $ | (0.08 | ) | ||||
Operating income margin | 21.5 | % | 23.8 | % | 18.0 | % | 16.3 | % | 17.4 | % | |||||
As Adjusted (Non-GAAP1): | |||||||||||||||
Gross Margin – U.S. Business | 81.2 | % | 80.8 | % | 80.3 | % | 80.4 | % | 80.2 | % | |||||
Gross Margin – International Business | 70.7 | % | 72.6 | % | 69.5 | % | 70.1 | % | 69.1 | % | |||||
Net income, as adjusted | $ | 10.1 | $ | 10.6 | $ | 7.8 | $ | 7.7 | $ | 9.8 | |||||
Diluted earnings per share, as adjusted | $ | 0.06 | $ | 0.06 | $ | 0.05 | $ | 0.05 | $ | 0.06 | |||||
Operating income margin, as adjusted | 22.0 | % | 24.1 | % | 20.2 | % | 19.9 | % | 21.9 | % | |||||
RECENT BUSINESS DEVELOPMENTS
Company News
- In November 2019, we entered into an agreement to sell our Canadian asset management business to CI Financial Corp. (TSX: CIX); and we were named as European Smart Beta Provider of the Year at the Funds Europe Awards 2019.
- In January 2020, we announced a strategic investment in Securrency, Inc. with plans to pursue the integration of blockchain technology into the ETF ecosystem; we announced the appointment of Ravinder Azad as Head of UK and Nordic Sales; and we announced the collaboration with Professor Jeremy Siegel to design and launch two model portfolios – The Siegel-WisdomTree Global Equity Model and the Siegel-WisdomTree Longevity Model.
Product News
- In November 2019, we launched the Mortgage Plus Bond Fund (MTGP) in the U.S. on the NYSE Arca; the WisdomTree Artificial Intelligence UCITS ETF (WTAI) reached its one-year anniversary, and the WisdomTree Emerging Markets Equity Income UCITS ETF (DEM) and WisdomTree Emerging Markets Small Cap Dividend UCITS ETF (DGSG) reached their five-year anniversaries.
- In December 2019, we declared final capital gains distributions for our U.S. ETFs; we announced the closing and liquidation of three ETFs in January 2020 – DYB, WBAL and RPUT; and we announced the launch of the WisdomTree Bitcoin ETP (BTCW) on the Swiss stock exchange (SIX).
- In January 2020, we announced the unitholders’ approval of proposed change in manager for our Canadian ETFs.
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended |
Years Ended |
||||||||||||||||||||||||||
Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||||||
Advisory fees | $ | 68,179 | $ | 67,006 | $ | 65,627 | $ | 64,840 | $ | 67,191 | $ | 265,652 | $ | 271,104 | |||||||||||||
Other income | 728 | 712 | 666 | 645 | 676 | 2,751 | 3,012 | ||||||||||||||||||||
Total revenues | 68,907 | 67,718 | 66,293 | 65,485 | 67,867 | 268,403 | 274,116 | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||
Compensation and benefits | 19,280 | 18,880 | 21,300 | 21,301 | 18,838 | 80,761 | 74,515 | ||||||||||||||||||||
Fund management and administration | 15,650 | 15,110 | 15,576 | 15,166 | 15,861 | 61,502 | 56,686 | ||||||||||||||||||||
Marketing and advertising | 3,551 | 3,022 | 2,910 | 2,680 | 3,672 | 12,163 | 13,884 | ||||||||||||||||||||
Sales and business development | 5,329 | 4,354 | 4,171 | 4,422 | 5,036 | 18,276 | 17,153 | ||||||||||||||||||||
Contractual gold payments | 3,516 | 3,502 | 3,110 | 3,098 | 2,917 | 13,226 | 8,512 | ||||||||||||||||||||
Professional and consulting fees | 1,604 | 1,259 | 1,296 | 1,482 | 2,854 | 5,641 | 7,984 | ||||||||||||||||||||
Occupancy, communications and equipment | 1,587 | 1,549 | 1,548 | 1,618 | 1,544 | 6,302 | 6,203 | ||||||||||||||||||||
Depreciation and amortization | 253 | 259 | 264 | 269 | 303 | 1,045 | 1,301 | ||||||||||||||||||||
Third-party distribution fees | 1,146 | 1,503 | 1,919 | 2,400 | 1,813 | 6,968 | 6,611 | ||||||||||||||||||||
Acquisition and disposition- related costs | 366 | 190 | 33 | 313 | 1,008 | 902 | 11,454 | ||||||||||||||||||||
Other | 1,816 | 1,959 | 2,255 | 2,053 | 2,202 | 8,083 | 8,534 | ||||||||||||||||||||
Total expenses | 54,098 | 51,587 | 54,382 | 54,802 | 56,048 | 214,869 | 212,837 | ||||||||||||||||||||
Operating income | 14,809 | 16,131 | 11,911 | 10,683 | 11,819 | 53,534 | 61,279 | ||||||||||||||||||||
Other Income/(Expenses): | |||||||||||||||||||||||||||
Interest expense | (2,606 | ) | (2,832 | ) | (2,910 | ) | (2,892 | ) | (2,859 | ) | (11,240 | ) | (7,962 | ) | |||||||||||||
(Loss)/gain on revaluation of deferred consideration – gold payments | (5,354 | ) | (6,306 | ) | (4,037 | ) | 4,404 | (5,410 | ) | (11,293 | ) | 12,220 | |||||||||||||||
Interest income | 936 | 799 | 818 | 779 | 800 | 3,332 | 3,093 | ||||||||||||||||||||
Impairments | — | — | — | (572 | ) | (17,386 | ) | (572 | ) | (17,386 | ) | ||||||||||||||||
Other gains and losses, net | (2 | ) | 843 | 284 | (4,627 | ) | 439 | (3,502 | ) | (205 | ) | ||||||||||||||||
Income/(loss) before income taxes | 7,783 | 8,635 | 6,066 | 7,775 | (12,597 | ) | 30,259 | 51,039 | |||||||||||||||||||
Income tax expense/(benefit) | 3,525 | 4,483 | 3,587 | (1,049 | ) | (1,033 | ) | 10,546 | 14,406 | ||||||||||||||||||
Net income/(loss) | $ | 4,258 | $ | 4,152 | $ | 2,479 | $ | 8,824 | $ | (11,564 | ) | $ | 19,713 | $ | 36,633 | ||||||||||||
Earnings/(loss) per share – basic | $ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.05 | $ | (0.08 | ) | $ | 0.12 | $ | 0.23 | ||||||||||||
Earnings/(loss) per share – diluted | $ | 0.022 | $ | 0.02 | $ | 0.01 | $ | 0.05 | $ | (0.08 | ) | $ | 0.12 | $ | 0.23 | ||||||||||||
Weighted average common shares – basic | 151,948 | 151,897 | 151,818 | 151,625 | 151,083 | 151,823 | 146,645 | ||||||||||||||||||||
Weighted average common shares – diluted | 167,203 | 167,163 | 167,249 | 166,811 | 151,083 | 166,977 | 158,415 | ||||||||||||||||||||
As Adjusted (Non-GAAP1) | |||||||||||||||||||||||||||
Compensation and benefits | $ | 19,280 | $ | 18,880 | $ | 19,825 | $ | 19,281 | $ | 16,824 | |||||||||||||||||
Total expenses | $ | 53,732 | $ | 51,397 | $ | 52,874 | $ | 52,469 | $ | 53,026 | |||||||||||||||||
Operating income | $ | 15,175 | $ | 16,321 | $ | 13,419 | $ | 13,016 | $ | 14,841 | |||||||||||||||||
Income before income taxes | $ | 13,503 | $ | 15,131 | $ | 11,611 | $ | 10,586 | $ | 13,221 | |||||||||||||||||
Income tax expense | $ | 3,396 | $ | 4,489 | $ | 3,798 | $ | 2,849 | $ | 3,392 | |||||||||||||||||
Net income | $ | 10,107 | $ | 10,642 | $ | 7,813 | $ | 7,737 | $ | 9,829 | |||||||||||||||||
Earnings per share – diluted | $ | 0.06 | $ | 0.06 | $ | 0.05 | $ | 0.05 | $ | 0.06 | |||||||||||||||||
QUARTERLY HIGHLIGHTS
Operating Revenues
- Operating revenues increased 1.8% from the third quarter of 2019 primarily due to higher average AUM of our U.S. listed products arising from market appreciation and net inflows.
- Operating revenues increased 1.5% from the fourth quarter of 2018 primarily due to higher average AUM of our International listed products arising from market appreciation and net inflows, partly offset by a 3 basis point decline in our average global advisory fee due to AUM mix shift.
- Our average global advisory fee was 0.44% during the third and fourth quarters of 2019 and 0.47% during the fourth quarter of 2018.
Operating Expenses
- Operating expenses increased 4.9% from the third quarter of 2019 due to higher sales and business development expenses inclusive of costs associated with the launch of our Bitcoin ETP; higher fund management and administration costs due to higher market making fees in connection with transitioning to new arrangements, as well as costs associated with preparing our products for Brexit; and higher marketing and advertising expenses, compensation, and professional fees.
- Operating expenses decreased 3.5% from the fourth quarter of 2018 largely due to lower professional fees, acquisition and disposition-related costs and third-party distribution fees.
Other Income/(Expenses)
- We recognized a non-cash loss on revaluation of deferred consideration of ($5.4) million and ($6.3) million during the fourth and third quarters of 2019, and ($5.4) million during the fourth quarter of 2018. These losses arose due to an increase in forward-looking gold prices when compared to the previous periods forward-looking gold curves. The magnitude of any gain or loss recognized is highly correlated to the magnitude of the change in the forward-looking price of gold.
- Interest expense decreased 8.0% from the third quarter of 2019 due to a lower level of debt outstanding. During the third and fourth quarters of 2019, we used $21.0 million of available capital to pay down our debt in connection with our capital management strategy.
Income Taxes
- Our effective income tax rate for the fourth quarter of 45.3% resulted in income tax expense of $3.5 million. Our tax rate differs from the federal statutory tax rate of 21% primarily due to a non-deductible loss on revaluation of deferred consideration, a valuation allowance on foreign net operating losses, state and local taxes and non-deductible executive compensation, partly offset by a lower tax rate on foreign earnings.
Our adjusted effective income tax rate was 25.1%1.
ANNUAL HIGHLIGHTS
Our operating results for the current year are not directly comparable to the prior year due to our acquisition of ETFS, which was completed on April 11, 2018.
- Operating revenues decreased 2.1% as compared to 2018 to a 3 basis point decline in our average global advisory fee and lower average AUM of our U.S. listed products due to AUM mix shift, partly offset by higher revenues earned from the ETFS acquired business, which were recognized for the entire year of 2019.
- Operating expenses increased 1.0% as compared to 2018 due to expenses associated with the ETFS acquired business, which were recognized for the entire year of 2019, and higher compensation expenses. These items were partly offset by lower acquisition and disposition-related costs, professional fees, marketing and advertising expenses and fund management and administration costs associated with our U.S. listed products.
- Significant changes in items reported in other income/(expenses) include a non-cash loss on revaluation of deferred consideration of ($11.3) million in 2019 as compared to a gain of $12.2 million in 2018; a 41.2% increase in interest expense as borrowing under our term loan commenced on April 11, 2018 and a $4.3 million non-cash charge arising from the release of a tax-related indemnification asset which arose from tax exposures assumed from the ETFS acquisition. This item was recognized upon the expiration of the statute of limitations which occurred in the first quarter of 2019 and an equal and offsetting benefit was recognized in income tax expense.
- Our effective income tax rate for 2019 of 34.9% resulted in income tax expense of $10.5 million. Our effective income tax rate differs from the federal statutory rate of 21% primarily due to a valuation allowance on foreign net operating losses, a non-deductible loss on revaluation of deferred consideration, non-deductible executive compensation, state and local income taxes and tax shortfalls associated with the vesting and exercise of stock-based compensation awards, partly offset by a $4.3 million reduction in unrecognized tax benefits and a lower tax rate on foreign earnings.
CONFERENCE CALL
WisdomTree will discuss its results and operational highlights during a conference call on Friday, January 31, 2020 at 9:00 a.m. ET. The call-in number will be (877) 303-7209. Anyone outside the U.S. or Canada should call (970) 315-0420. The slides used during the presentation will be available at http://ir.wisdomtree.com. For those unable to join the conference call at the scheduled time, an audio replay will be available on http://ir.wisdomtree.com.
ABOUT WISDOMTREE
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe and Canada (collectively, “WisdomTree”), is an ETF and ETP sponsor and asset manager headquartered in New York. WisdomTree offers products covering equity, commodity, fixed income, leveraged and inverse, currency and alternative strategies. WisdomTree currently has approximately $63.2 billion in assets under management globally.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
Contact Information:
1 See “Non-GAAP Financial Measurements.”
2 Earnings per share calculated pursuant to the two-class method.
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(in thousands)
(Unaudited)
The following tables set forth the pre-tax operating results for our U.S. Business and International Business segments.
U.S. BUSINESS SEGMENT
Three Months Ended | Years Ended | ||||||||||||||||||||||||||
Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||||||
Advisory fees | $ | 42,952 | $ | 41,950 | $ | 43,070 | $ | 42,517 | $ | 45,633 | $ | 170,489 | $ | 204,298 | |||||||||||||
Other income | 76 | 81 | 76 | 106 | 126 | 339 | 608 | ||||||||||||||||||||
Total revenues | 43,028 | 42,031 | 43,146 | 42,623 | 45,759 | 170,828 | 204,906 | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||
Compensation and benefits | 14,947 | 14,531 | 16,696 | 16,779 | 14,370 | 62,953 | 58,307 | ||||||||||||||||||||
Fund management and administration | 8,070 | 8,072 | 8,505 | 8,340 | 9,038 | 32,987 | 35,728 | ||||||||||||||||||||
Marketing and advertising |
2,745 | 2,411 | 2,336 | 2,162 | 2,704 | 9,654 | 11,003 | ||||||||||||||||||||
Sales and business development | 3,144 | 3,124 | 2,867 | 3,359 | 3,747 | 12,494 | 13,426 | ||||||||||||||||||||
Professional and consulting fees | 1,144 | 908 | 1,055 | 1,072 | 2,166 | 4,179 | 6,169 | ||||||||||||||||||||
Occupancy, communications and equipment | 1,235 | 1,215 | 1,211 | 1,283 | 1,205 | 4,944 | 5,162 | ||||||||||||||||||||
Depreciation and amortization | 235 | 238 | 242 | 246 | 280 | 961 | 1,215 | ||||||||||||||||||||
Third-party distribution fees | 914 | 1,404 | 1,867 | 2,338 | 1,789 | 6,523 | 6,457 | ||||||||||||||||||||
Acquisition and disposition-related costs | 170 | — | — | 11 | 72 | 181 | 8,289 | ||||||||||||||||||||
Other | 1,403 | 1,574 | 1,628 | 1,586 | 1,617 | 6,191 | 6,674 | ||||||||||||||||||||
Total expenses | 34,007 | 33,477 | 36,407 | 37,176 | 36,988 | 141,067 | 152,430 | ||||||||||||||||||||
Operating income | 9,021 | 8,554 | 6,739 | 5,447 | 8,771 | 29,761 | 52,476 | ||||||||||||||||||||
Other Income/(Expenses): | |||||||||||||||||||||||||||
Interest expense | (197 | ) | (197 | ) | (194 | ) | (192 | ) | (197 | ) | (780 | ) | (566 | ) | |||||||||||||
Interest income | 936 | 793 | 818 | 779 | 800 | 3,326 | 3,093 | ||||||||||||||||||||
Impairments | — | — | — | (572 | ) | (17,386 | ) | (572 | ) | (17,386 | ) | ||||||||||||||||
Other gains and losses, net | (54 | ) | 235 | (54 | ) | 145 | 266 | 272 | 292 | ||||||||||||||||||
Income/(loss) before income taxes | $ | 9,706 | $ | 9,385 | $ | 7,309 | $ | 5,607 | $ | (7,746 | ) | $ | 32,007 | $ | 37,909 | ||||||||||||
Operating income margin | 21.0 | % | 20.4 | % | 15.6 | % | 12.8 | % | 19.2 | % | 17.4 | % | 25.6 | % |
INTERNATIONAL BUSINESS SEGMENT
Three Months Ended |
Years Ended |
||||||||||||||||||||||||||
Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||||||
Advisory fees | $ | 25,227 | $ | 25,056 | $ | 22,557 | $ | 22,323 | $ | 21,558 | $ | 95,163 | $ | 66,806 | |||||||||||||
Other income | 652 | 631 | 590 | 539 | 550 | 2,412 | 2,404 | ||||||||||||||||||||
Total revenues | 25,879 | 25,687 | 23,147 | 22,862 | 22,108 | 97,575 | 69,210 | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||
Compensation and benefits | 4,333 | 4,349 | 4,604 | 4,522 | 4,468 | 17,808 | 16,208 | ||||||||||||||||||||
Fund management and administration | 7,580 | 7,038 | 7,071 | 6,826 | 6,823 | 28,515 | 20,958 | ||||||||||||||||||||
Marketing and advertising | 806 | 611 | 574 | 518 | 968 | 2,509 | 2,881 | ||||||||||||||||||||
Sales and business development | 2,185 | 1,230 | 1,304 | 1,063 | 1,289 | 5,782 | 3,727 | ||||||||||||||||||||
Contractual gold payments | 3,516 | 3,502 | 3,110 | 3,098 | 2,917 | 13,226 | 8,512 | ||||||||||||||||||||
Professional and consulting fees | 460 | 351 | 241 | 410 | 688 | 1,462 | 1,815 | ||||||||||||||||||||
Occupancy, communications and equipment | 352 | 334 | 337 | 335 | 339 | 1,358 | 1,041 | ||||||||||||||||||||
Depreciation and amortization | 18 | 21 | 22 | 23 | 23 | 84 | 86 | ||||||||||||||||||||
Third-party distribution fees | 232 | 99 | 52 | 62 | 24 | 445 | 154 | ||||||||||||||||||||
Acquisition and disposition-related costs | 196 | 190 | 33 | 302 | 936 | 721 | 3,165 | ||||||||||||||||||||
Other | 413 | 385 | 627 | 467 | 585 | 1,892 | 1,860 | ||||||||||||||||||||
Total expenses | 20,091 | 18,110 | 17,975 | 17,626 | 19,060 | 73,802 | 60,407 | ||||||||||||||||||||
Operating income | 5,788 | 7,577 | 5,172 | 5,236 | 3,048 | 23,773 | 8,803 | ||||||||||||||||||||
Other Income/(Expenses): | |||||||||||||||||||||||||||
Interest expense | (2,409 | ) | (2,635 | ) | (2,716 | ) | (2,700 | ) | (2,662 | ) | (10,460 | ) | (7,396 | ) | |||||||||||||
(Loss)/gain on revaluation of deferred consideration – gold payments | (5,354 | ) | (6,306 | ) | (4,037 | ) | 4,404 | (5,410 | ) | (11,293 | ) | 12,220 | |||||||||||||||
Interest income | — | 6 | — | — | — | 6 | — | ||||||||||||||||||||
Other gains and losses, net | 52 | 608 | 338 | (4,772 | ) | 173 | (3,774 | ) | (497 | ) | |||||||||||||||||
(Loss)/income before income taxes | $ | (1,923 | ) | $ | (750 | ) | $ | (1,243 | ) | $ | 2,168 | $ | (4,851 | ) | $ | (1,748 | ) | $ | 13,130 | ||||||||
Operating income margin | 22.4 | % | 29.5 | % | 22.3 | % | 22.9 | % | 13.8 | % | 24.4 | % | 12.7 | % |
WisdomTree Investments, Inc. | |||||||||||||||||||
Key Operating Statistics (Unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|||||||||||||||
GLOBAL ETPs (in millions) | |||||||||||||||||||
Beginning of period assets | $ | 59,981 | $ | 60,389 | $ | 59,112 | $ | 54,094 | $ | 59,140 | |||||||||
Inflows/(outflows) | 368 | (694 | ) | 337 | 561 | 245 | |||||||||||||
Market appreciation/(depreciation) | 3,269 | 467 | 940 | 4,544 | (5,291 | ) | |||||||||||||
Fund closures | (3 | ) | (181 | ) | — | (87 | ) | — | |||||||||||
End of period assets | $ | 63,615 | $ | 59,981 | $ | 60,389 | $ | 59,112 | $ | 54,094 | |||||||||
Average assets during the period | $ | 61,858 | $ | 60,306 | $ | 58,575 | $ | 57,683 | $ | 56,423 | |||||||||
Average advisory fee during the period | 0.44 | % | 0.44 | % | 0.45 | % | 0.46 | % | 0.47 | % | |||||||||
Revenue days | 92 | 92 | 91 | 90 | 92 | ||||||||||||||
Number of ETFs – end of the period | 367 | 366 | 536 | 534 | 537 | ||||||||||||||
U.S. LISTED ETFs (in millions) | |||||||||||||||||||
Beginning of period assets | $ | 37,592 | $ | 39,220 | $ | 39,366 | $ | 35,486 | $ | 41,556 | |||||||||
Inflows/(outflows) | 563 | (1,198 | ) | (166 | ) | 147 | (894 | ) | |||||||||||
Market appreciation/(depreciation) | 2,448 | (430 | ) | 20 | 3,820 | (5,176 | ) | ||||||||||||
Fund closures | (3 | ) | — | — | (87 | ) | — | ||||||||||||
End of period assets | $ | 40,600 | $ | 37,592 | $ | 39,220 | $ | 39,366 | $ | 35,486 | |||||||||
Average assets during the period | $ | 39,094 | $ | 37,857 | $ | 38,945 | $ | 38,061 | $ | 38,246 | |||||||||
Average advisory fee during the period | 0.44 | % | 0.44 | % | 0.44 | % | 0.45 | % | 0.47 | % | |||||||||
Number of ETFs – end of the period | 80 | 80 | 79 | 77 | 85 | ||||||||||||||
INTERNATIONAL LISTED ETPs (in millions) | |||||||||||||||||||
Beginning of period assets | $ | 22,389 | $ | 21,169 | $ | 19,746 | $ | 18,608 | $ | 17,584 | |||||||||
Inflows/(outflows) | (195 | ) | 504 | 503 | 414 | 1,139 | |||||||||||||
Market appreciation/(depreciation) | 821 | 897 | 920 | 724 | (115 | ) | |||||||||||||
Fund closures | — | (181 | ) | — | — | — | |||||||||||||
End of period assets | $ | 23,015 | $ | 22,389 | $ | 21,169 | $ | 19,746 | $ | 18,608 | |||||||||
Average assets during the period | $ | 22,764 | $ | 22,449 | $ | 19,630 | $ | 19,622 | $ | 18,177 | |||||||||
Average advisory fee during the period | 0.44 | % | 0.44 | % | 0.46 | % | 0.47 | % | 0.47 | % | |||||||||
Number of ETPs – end of the period | 287 | 286 | 457 | 457 | 452 | ||||||||||||||
PRODUCT CATEGORIES (in millions) | |||||||||||||||||||
Commodity & Currency | |||||||||||||||||||
Beginning of period assets | $ | 19,954 | $ | 18,446 | $ | 16,978 | $ | 16,213 | $ | 14,998 | |||||||||
Inflows/(outflows) | (267 | ) | 534 | 563 | 227 | 988 | |||||||||||||
Market appreciation/(depreciation) | 639 | 974 | 905 | 538 | 227 | ||||||||||||||
End of period assets | $ | 20,326 | $ | 19,954 | $ | 18,446 | $ | 16,978 | $ | 16,213 | |||||||||
Average assets during the period | $ | 20,146 | $ | 19,796 | $ | 16,912 | $ | 16,995 | $ | 15,620 | |||||||||
U.S. Equity | |||||||||||||||||||
Beginning of period assets | $ | 16,416 | $ | 16,021 | $ | 15,880 | $ | 13,335 | $ | 15,186 | |||||||||
Inflows/(outflows) | 468 | 242 | 103 | 632 | 393 | ||||||||||||||
Market appreciation/(depreciation) | 1,002 | 153 | 38 | 1,913 | (2,244 | ) | |||||||||||||
End of period assets | $ | 17,886 | $ | 16,416 | $ | 16,021 | $ | 15,880 | $ | 13,335 | |||||||||
Average assets during the period | $ | 17,112 | $ | 16,004 | $ | 15,808 | $ | 14,947 | $ | 14,291 | |||||||||
International Developed Market Equity | |||||||||||||||||||
Beginning of period assets | $ | 12,541 | $ | 13,687 | $ | 14,414 | $ | 14,508 | $ | 19,385 | |||||||||
Inflows/(outflows) | (122 | ) | (1,001 | ) | (729 | ) | (1,530 | ) | (2,216 | ) | |||||||||
Market appreciation/(depreciation) | 1,006 | (145 | ) | 2 | 1,436 | (2,661 | ) | ||||||||||||
End of period assets | $ | 13,425 | $ | 12,541 | $ | 13,687 | $ | 14,414 | $ | 14,508 | |||||||||
Average assets during the period | $ | 13,001 | $ | 12,747 | $ | 13,957 | $ | 14,506 | $ | 16,869 |
Three Months Ended | |||||||||||||||||||
Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|||||||||||||||
Emerging Market Equity | |||||||||||||||||||
Beginning of period assets | $ | 5,814 | $ | 6,090 | $ | 5,730 | $ | 5,278 | $ | 5,346 | |||||||||
Inflows/(outflows) | 193 | 173 | 367 | (84 | ) | 232 | |||||||||||||
Market appreciation/(depreciation) | 516 | (449 | ) | (7 | ) | 536 | (300 | ) | |||||||||||
End of period assets | $ | 6,523 | $ | 5,814 | $ | 6,090 | $ | 5,730 | $ | 5,278 | |||||||||
Average assets during the period | $ | 6,111 | $ | 5,851 | $ | 5,785 | $ | 5,502 | $ | 5,148 | |||||||||
Fixed Income | |||||||||||||||||||
Beginning of period assets | $ | 3,655 | $ | 4,258 | $ | 4,023 | $ | 2,570 | $ | 1,720 | |||||||||
Inflows/(outflows) | 220 | (582 | ) | 208 | 1,418 | 880 | |||||||||||||
Market appreciation/(depreciation) | 34 | (21 | ) | 27 | 35 | (30 | ) | ||||||||||||
End of period assets | $ | 3,909 | $ | 3,655 | $ | 4,258 | $ | 4,023 | $ | 2,570 | |||||||||
Average assets during the period | $ | 3,856 | $ | 4,050 | $ | 4,119 | $ | 3,511 | $ | 2,140 | |||||||||
Leveraged & Inverse | |||||||||||||||||||
Beginning of period assets | $ | 1,130 | $ | 1,149 | $ | 1,226 | $ | 1,083 | $ | 1,250 | |||||||||
Inflows/(outflows) | (55 | ) | 11 | (63 | ) | 83 | (18 | ) | |||||||||||
Market appreciation/(depreciation) | 71 | (30 | ) | (14 | ) | 60 | (149 | ) | |||||||||||
End of period assets | $ | 1,146 | $ | 1,130 | $ | 1,149 | $ | 1,226 | $ | 1,083 | |||||||||
Average assets during the period | $ | 1,186 | $ | 1,154 | $ | 1,199 | $ | 1,213 | $ | 1,193 | |||||||||
Alternatives | |||||||||||||||||||
Beginning of period assets | $ | 468 | $ | 514 | $ | 628 | $ | 755 | $ | 674 | |||||||||
Inflows/(outflows) | (69 | ) | (48 | ) | (108 | ) | (141 | ) | 178 | ||||||||||
Market appreciation/(depreciation) | 1 | 2 | (6 | ) | 14 | (97 | ) | ||||||||||||
End of period assets | $ | 400 | $ | 468 | $ | 514 | $ | 628 | $ | 755 | |||||||||
Average assets during the period | $ | 443 | $ | 490 | $ | 574 | $ | 666 | $ | 712 | |||||||||
Closed ETPs | |||||||||||||||||||
Beginning of period assets | $ | 3 | $ | 224 | $ | 233 | $ | 352 | $ | 581 | |||||||||
Inflows/(outflows) | — | (23 | ) | (4 | ) | (44 | ) | (192 | ) | ||||||||||
Market appreciation/(depreciation) | — | (17 | ) | (5 | ) | 12 | (37 | ) | |||||||||||
Fund closures | (3 | ) | (181 | ) | — | (87 | ) | — | |||||||||||
End of period assets | $ | — | $ | 3 | $ | 224 | $ | 233 | $ | 352 | |||||||||
Average assets during the period | $ | 3 | $ | 214 | $ | 221 | $ | 343 | $ | 450 | |||||||||
Headcount – U.S. Business segment | 137 | 142 | 143 | 141 | 153 | ||||||||||||||
Headcount – International Business segment | 71 | 70 | 71 | 75 | 75 |
Note: Previously issued statistics may be restated due to fund closures and trade adjustments
Source: WisdomTree
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
Dec. 31, 2019 |
Dec. 31, 2018 |
||||||
(Unaudited) |
|||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 74,972 | $ | 77,784 | |||
Securities owned, at fair value | 17,319 | 8,873 | |||||
Accounts receivable | 26,838 | 25,834 | |||||
Income taxes receivable | — | 1,181 | |||||
Prepaid expenses | 3,724 | 4,441 | |||||
Other current assets | 207 | 163 | |||||
Total current assets | 123,060 | 118,276 | |||||
Fixed assets, net | 8,127 | 9,122 | |||||
Notes receivable | 33,310 | 28,722 | |||||
Securities held-to-maturity | 16,863 | 20,180 | |||||
Deferred tax assets, net | 7,398 | 7,042 | |||||
Investments, carried at cost | 36,192 | 28,080 | |||||
Right of use assets – operating leases | 18,161 | — | |||||
Goodwill | 85,856 | 85,856 | |||||
Intangible assets | 603,294 | 603,209 | |||||
Other noncurrent assets | 983 | 2,155 | |||||
Total assets | $ | 933,244 | $ | 902,642 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
LIABILITIES | |||||||
Current liabilities: | |||||||
Fund management and administration payable | $ | 22,021 | $ | 22,508 | |||
Compensation and benefits payable | 26,501 | 18,453 | |||||
Deferred consideration – gold payments | 13,953 | 11,765 | |||||
Securities sold, but not yet purchased, at fair value | 582 | 1,698 | |||||
Operating lease liabilities | 3,682 | — | |||||
Income taxes payable | 3,372 | — | |||||
Accounts payable and other liabilities | 8,930 | 8,377 | |||||
Total current liabilities | 79,041 | 62,801 | |||||
Debt | 175,956 | 194,592 | |||||
Deferred consideration – gold payments | 159,071 | 149,775 | |||||
Operating lease liabilities | 19,057 | — | |||||
Deferred rent payable | — | 4,570 | |||||
Total liabilities | 433,125 | 411,738 | |||||
Preferred stock – Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding | 132,569 | 132,569 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Common stock, par value $0.01; 250,000 shares authorized: | |||||||
Issued and outstanding: 155,264 and 153,202 at December 31, 2019 and December 31, 2018, respectively | 1,553 | 1,532 | |||||
Additional paid-in capital | 373,043 | 363,655 | |||||
Accumulated other comprehensive income | 945 | 467 | |||||
Accumulated deficit | (7,991 | ) | (7,319 | ) | |||
Total stockholders’ equity | 367,550 | 358,335 | |||||
Total liabilities and stockholders’ equity | $ | 933,244 | $ | 902,642 | |||
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Years Ended | |||||||
Dec. 31, 2019 |
Dec. 31, 2018 |
||||||
Cash flows from operating activities: | |||||||
Net income | $ | 19,713 | $ | 36,633 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Advisory fees received in gold and other precious metals | (49,887 | ) | (32,238 | ) | |||
Contractual gold payments | 13,226 | 8,512 | |||||
Stock-based compensation | 11,590 | 13,255 | |||||
Loss/(gain) on revaluation of deferred consideration – gold payments | 11,293 | (12,220 | ) | ||||
Amortization of right of use asset | 3,174 | — | |||||
Amortization of credit facility issuance costs | 2,888 | 2,087 | |||||
Paid-in-kind interest income | (2,498 | ) | (1,974 | ) | |||
Depreciation and amortization | 1,045 | 1,301 | |||||
Impairments | 572 | 17,386 | |||||
Deferred income taxes | (349 | ) | (6,083 | ) | |||
Other | (173 | ) | 798 | ||||
Changes in operating assets and liabilities: | |||||||
Securities owned, at fair value | (8,446 | ) | (7,182 | ) | |||
Accounts receivable | (19 | ) | 3,804 | ||||
Income taxes receivable/payable | 4,524 | 5,706 | |||||
Prepaid expenses | 738 | 427 | |||||
Gold and other precious metals | 35,886 | 25,604 | |||||
Other assets | 172 | 984 | |||||
Fund management and administration payable | (476 | ) | 221 | ||||
Compensation and benefits payable | 7,885 | (16,050 | ) | ||||
Securities sold, but not yet purchased, at fair value | (1,116 | ) | 748 | ||||
Operating lease liabilities | (3,587 | ) | — | ||||
Accounts payable and other liabilities | 677 | (4,251 | ) | ||||
Net cash provided by operating activities | 46,832 | 37,468 | |||||
Cash flows from investing activities: | |||||||
Purchase of fixed assets | (47 | ) | (71 | ) | |||
Purchase of investments | (8,112 | ) | — | ||||
Funding of notes receivable | (2,090 | ) | (8,000 | ) | |||
Proceeds from held-to-maturity securities maturing or called prior to maturity | 3,244 | 1,107 | |||||
Proceeds from sales and maturities of debt securities available-for-sale | — | 64,498 | |||||
Cash paid for acquisition, net of cash acquired | — | (239,313 | ) | ||||
Net cash used in investing activities | (7,005 | ) | (181,779 | ) | |||
Cash flows from financing activities: | |||||||
Dividends paid | (20,385 | ) | (19,236 | ) | |||
Repayment of debt | (21,000 | ) | — | ||||
Shares repurchased | (2,341 | ) | (2,885 | ) | |||
Credit facility issuance costs | — | (8,690 | ) | ||||
Preferred stock issuance costs | — | (181 | ) | ||||
Proceeds from the issuance of debt | — | 200,000 | |||||
Proceeds from exercise of stock options | 160 | 191 | |||||
Net cash (used in)/provided by financing activities | (43,566 | ) | 169,199 | ||||
Increase/(decrease) in cash flows due to changes in foreign exchange rate | 927 | (1,297 | ) | ||||
(Decrease)/increase in cash and cash equivalents | (2,812 | ) | 23,591 | ||||
Cash and cash equivalents – beginning of year | 77,784 | 54,193 | |||||
Cash and cash equivalents – year | $ | 74,972 | $ | 77,784 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for taxes | $ | 10,060 | $ | 14,398 | |||
Cash paid for interest | $ | 8,037 | $ | 5,577 | |||
Non-GAAP Financial Measurements
In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this release include:
- Adjusted compensation, operating income, total expenses, income before income taxes, income tax expense, net income and diluted earnings per share. We disclose adjusted compensation, operating income, total expenses, income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measures provides investors with a consistent way to analyze our performance. These non-GAAP financial measures exclude the following:
- Unrealized gains or losses on the revaluation of deferred consideration: Deferred consideration is an obligation we assumed in connection with the ETFS acquisition that is carried at fair value. This item represents the present value of an obligation to pay fixed ounces of gold into perpetuity and is measured using forward-looking gold prices. Changes in the forward-looking price of gold may have a material impact on the carrying value of the deferred consideration and our reported financial results. We exclude this item when calculating our non-GAAP financial measurements as it is not core to our operating business. The item is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary of ours that is based in Jersey, a jurisdiction where we are subject to a zero percent tax rate.
- Tax shortfalls and windfalls upon vesting and exercise of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting and exercise of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce volatility in earnings and are not core to our operating business.
- Other items: Impairment charges, severance expense and acquisition and disposition-related costs are excluded when calculating our non-GAAP financial measurements.
- Adjusted effective income tax rate. We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.
- Gross margin and gross margin percentage. We disclose our gross margin and gross margin percentage as non-GAAP financial measurements for our U.S. Business segment and International Business segment because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These ratios also assist us in analyzing the profitability of our products. We define gross margin as total operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total operating revenues.
- Adjusted operating income margin. We disclose adjusted operating income margin as a non-GAAP financial measurement on a consolidated basis, as well as for our U.S. Business segment and International Business segment in order to report our operating income margin exclusive of items that are non-recurring or not core to our operating business.
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED)
(in thousands)
(Unaudited)
Three Months Ended |
|||||||||||||||||||
Adjusted Net Income and Diluted Earnings per Share: | Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Net income/(loss), as reported | $ | 4,258 | $ | 4,152 | $ | 2,479 | $ | 8,824 | $ | (11,564 | ) | ||||||||
Add back/(deduct): Unrealized loss/(gain) on revaluation of deferred consideration | 5,354 | 6,306 | 4,037 | (4,404 | ) | 5,410 | |||||||||||||
Add back: Severance expense, net of income taxes | — | — | 1,194 | 1,521 | 1,526 | ||||||||||||||
Add back/(deduct): Tax shortfalls/(windfalls) upon vesting and exercise of stock-based compensation awards | 142 | 30 | 76 | 971 | (403 | ) | |||||||||||||
Add back: Impairments, net of income taxes | — | — | — | 572 | 14,048 | ||||||||||||||
Add back: Acquisition and disposition-related costs, net of income taxes | 353 | 154 | 27 | 253 | 812 | ||||||||||||||
Adjusted net income | $ | 10,107 | $ | 10,642 | $ | 7,813 | $ | 7,737 | $ | 9,829 | |||||||||
Weighted average common shares – diluted | 167,203 | 167,163 | 167,249 | 166,811 | 166,686 | ||||||||||||||
Adjusted earnings per share – diluted | $ | 0.06 | $ | 0.06 | $ | 0.05 | $ | 0.05 | $ | 0.06 | |||||||||
Three Months Ended |
|||||||||||||||||||
Adjusted Operating Income and Adjusted Operating | Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
||||||||||||||
Income Margin: | 2019 | 2019 | 2019 | 2019 | 2018 | ||||||||||||||
Operating revenues | $ | 68,907 | $ | 67,718 | $ | 66,293 | $ | 65,485 | $ | 67,867 | |||||||||
Operating income | $ | 14,809 | $ | 16,131 | $ | 11,911 | $ | 10,683 | $ | 11,819 | |||||||||
Add back: Severance expense, before income taxes | — | — | 1,475 | 2,020 | 2,014 | ||||||||||||||
Add back: Acquisition and disposition-related costs, before income taxes | 366 | 190 | 33 | 313 | 1,008 | ||||||||||||||
Adjusted operating income | $ | 15,175 | $ | 16,321 | $ | 13,419 | $ | 13,016 | $ | 14,841 | |||||||||
Adjusted operating income margin | 22.0 | % | 24.1 | % | 20.2 | % | 19.9 | % | 21.9 | % | |||||||||
Three Months Ended |
|||||||||||||||||||
Adjusted Compensation: | Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Compensation expense | $ | 19,280 | $ | 18,880 | $ | 21,300 | $ | 21,301 | $ | 18,838 | |||||||||
Deduct: Severance expense, before income taxes | — | — | (1,475 | ) | (2,020 | ) | (2,014 | ) | |||||||||||
Adjusted compensation expense | $ | 19,280 | $ | 18,880 | $ | 19,825 | $ | 19,281 | $ | 16,824 | |||||||||
Three Months Ended |
|||||||||||||||||||
Adjusted Total Operating Expenses: | Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Total operating expenses | $ | 54,098 | $ | 51,587 | $ | 54,382 | $ | 54,802 | $ | 56,048 | |||||||||
Deduct: Severance expense, before income taxes | — | — | (1,475 | ) | (2,020 | ) | (2,014 | ) | |||||||||||
Deduct: Acquisition and disposition-related costs, before income taxes | (366 | ) | (190 | ) | (33 | ) | (313 | ) | (1,008 | ) | |||||||||
Adjusted operating expenses | $ | 53,732 | $ | 51,397 | $ | 52,874 | $ | 52,469 | $ | 53,026 | |||||||||
Three Months Ended |
|||||||||||||||||||
Adjusted Income Before Income Taxes: | Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Income/(loss) before income taxes | $ | 7,783 | $ | 8,635 | $ | 6,066 | $ | 7,775 | $ | (12,597 | ) | ||||||||
Add back/(deduct): Unrealized loss/(gain) on revaluation of deferred consideration | 5,354 | 6,306 | 4,037 | (4,404) | 5,410 | ||||||||||||||
Add back: Loss recognized upon reduction of a tax-related indemnification asset | — | — | — | 4,310 | — | ||||||||||||||
Add back: Severance expense, before income taxes | — | — | 1,475 | 2,020 | 2,014 | ||||||||||||||
Add back: Impairments, before income taxes | — | — | — | 572 | 17,386 | ||||||||||||||
Add back: Acquisition and disposition-related costs, before income taxes | 366 | 190 | 33 | 313 | 1,008 | ||||||||||||||
Adjusted income before income taxes | $ | 13,503 | $ | 15,131 | $ | 11,611 | $ | 10,586 | $ | 13,221 | |||||||||
Three Months Ended |
|||||||||||||||||||
Adjusted Income Tax Expense and Adjusted Effective Income Tax Rate: | Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
||||||||||||||
2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||||||
Adjusted income before income taxes (above) | $ | 13,503 | $ | 15,131 | $ | 11,611 | $ | 10,586 | $ | 13,221 | |||||||||
Income tax expense/(benefit) | $ | 3,525 | $ | 4,483 | $ | 3,587 | $ | (1,049 | ) | $ | (1,033 | ) | |||||||
Add back: Tax benefit arising from reduction of a tax-related indemnification asset | — | — | — | 4,310 | — | ||||||||||||||
Add back: Tax benefit arising from severance expense | — | — | 281 | 499 | 488 | ||||||||||||||
Add back: Tax benefit arising from impairments | — | — | — | — | 3,338 | ||||||||||||||
Add back/(deduct): Tax windfalls/(shortfalls) upon vesting and exercise of stock-based compensation awards | (142 | ) | (30 | ) | (76 | ) | (971 | ) | 403 | ||||||||||
Add back: Tax benefit arising from acquisition and disposition-related costs | 13 | 36 | 6 | 60 | 196 | ||||||||||||||
Adjusted income tax expense | $ | 3,396 | $ | 4,489 | $ | 3,798 | $ | 2,849 | $ | 3,392 | |||||||||
Adjusted effective income tax rate | 25.1 | % | 29.7 | % | 32.7 | % | 26.9 | % | 25.7 | % | |||||||||
WISDOMTREE INVESTMENTS, INC. AND SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATION (SEGMENTS)
(in thousands)
(Unaudited)
Three Months Ended | |||||||||||||||||||
Gross Margin and Gross Margin Percentage (U.S. Business): | Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
||||||||||||||
Operating revenues | $ | 43,028 | $ | 42,031 | $ | 43,146 | $ | 42,623 | $ | 45,759 | |||||||||
Less: Fund management and administration | (8,070 | ) | (8,072 | ) | (8,505 | ) | (8,340 | ) | (9,038 | ) | |||||||||
Gross margin | $ | 34,958 | $ | 33,959 | $ | 34,641 | $ | 34,283 | $ | 36,721 | |||||||||
Gross margin percentage (U.S. Business) | 81.2 | % | 80.8 | % | 80.3 | % | 80.4 | % | 80.2 | % | |||||||||
Three Months Ended | |||||||||||||||||||
Adjusted Operating Income Margin (U.S. Business): | Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
||||||||||||||
Operating revenues | $ | 43,028 | $ | 42,031 | $ | 43,146 | $ | 42,623 | $ | 45,759 | |||||||||
Operating income | $ | 9,021 | $ | 8,554 | $ | 6,739 | $ | 5,447 | $ | 8,771 | |||||||||
Add back: Severance expense, before income taxes | — | — | 1,366 | 2,020 | 2,014 | ||||||||||||||
Add back: Acquisition and disposition-related costs, before income taxes | 170 | — | — | 11 | 72 | ||||||||||||||
Adjusted operating income | $ | 9,191 | $ | 8,554 | $ | 8,105 | $ | 7,478 | $ | 10,857 | |||||||||
Adjusted operating income margin (U.S. Business) | 21.4 | % | 20.4 | % | 18.8 | % | 17.5 | % | 23.7 | % | |||||||||
Three Months Ended | |||||||||||||||||||
Gross Margin and Gross Margin Percentage (International): | Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
||||||||||||||
Operating revenues | $ | 25,879 | $ | 25,687 | $ | 23,147 | $ | 22,862 | $ | 22,108 | |||||||||
Less: Fund management and administration | (7,580 | ) | (7,038 | ) | (7,071 | ) | (6,826 | ) | (6,823 | ) | |||||||||
Gross margin | $ | 18,299 | $ | 18,649 | $ | 16,076 | $ | 16,036 | $ | 15,285 | |||||||||
Gross margin percentage (International) | 70.7 | % | 72.6 | % | 69.5 | % | 70.1 | % | 69.1 | % | |||||||||
Three Months Ended | |||||||||||||||||||
Adjusted Operating Income Margin (International): | Dec. 31, 2019 |
Sept. 30, 2019 |
June 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
||||||||||||||
Operating revenues | $ | 25,879 | $ | 25,687 | $ | 23,147 | $ | 22,862 | $ | 22,108 | |||||||||
Operating income | $ | 5,788 | $ | 7,577 | $ | 5,172 | $ | 5,236 | $ | 3,048 | |||||||||
Add back: Severance expense, before income taxes | — | — | 109 | — | — | ||||||||||||||
Add back: Acquisition and disposition-related costs, before income taxes | 196 | 190 | 33 | 302 | 936 | ||||||||||||||
Adjusted operating income | $ | 5,984 | $ | 7,767 | $ | 5,314 | $ | 5,538 | $ | 3,984 | |||||||||
Adjusted operating income margin (International) | 23.1 | % | 30.2 | % | 23.0 | % | 24.2 | % | 18.0 | % | |||||||||
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
In particular, forward-looking statements in this press release may include statements about
- anticipated trends, conditions and investor sentiment in the global markets and ETPs;
- anticipated levels of inflows into and outflows out of our ETPs;
- our ability to deliver favorable rates of return to investors;
- competition in our business;
- our ability to develop new products and services;
- our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;
- our ability to successfully operate and expand our business in non-U.S. markets; and
- the effect of laws and regulations that apply to our business.
Our business is subject to many risks and uncertainties, including without limitation:
- declining prices of securities, precious metals and other commodities can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETP investors to sell their fund shares and trigger redemptions;
- fluctuations in the amount and mix of our AUM, whether caused by disruptions in the financial markets or otherwise, may negatively impact revenues and operating margins, and may impede our ability to refinance our debt upon maturity, increase the cost of borrowing or result in our debt being called prior to maturity;
- withdrawals or broad changes in investments in our ETPs by investors with significant positions may negatively impact revenues and operating margins;
- competitive pressures could reduce revenues and profit margins;
- we derive a substantial portion of our revenues from a limited number of products, and as a result, our operating results are particularly exposed to investor sentiment toward investing in the products’ strategies and our ability to maintain the AUM of these products, as well as the performance of these products and market-specific and political and economic risk;
- a significant portion of our AUM is held in ETPs that invest in foreign securities and we therefore have substantial exposure to foreign market conditions and are subject to currency exchange rate risks;
- net outflows in our two largest currency hedged ETPs – the WisdomTree Europe Hedged Equity Fund and the WisdomTree Japan Hedged Equity Fund – have had, and in the future could continue to have, a negative impact on our revenues;
- over the last few years, we have expanded our business globally. This expansion subjects us to increased operational, regulatory, financial and other risks;
- many of our ETPs have a limited track record, and poor investment performance could cause our revenues to decline; and
- we depend on third parties to provide many critical services to operate our business and our ETPs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETP investors.
Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018.
The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.
Artificial Intelligence
More than $9 Million Awarded to High School Scientists and Engineers at the Regeneron International Science and Engineering Fair 2024
Grace Sun, 16, receives $75,000 Top Award for a new kind of organic electrochemical transistor at the world’s largest pre-college science, technology, engineering and math (STEM) competition.
TARRYTOWN, N.Y. and WASHINGTON, May 17, 2024 /PRNewswire/ — Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) and Society for Science (the Society) announced that Grace Sun, 16, of Lexington, Kentucky, won the $75,000 top award, the George D. Yancopoulos Innovator Award, named in honor of the pioneering drug researcher and Regeneron co-Founder, Board co-Chair, President and Chief Scientific Officer, in the 2024 Regeneron International Science and Engineering Fair (Regeneron ISEF), the world’s largest pre-college science and engineering competition. Other top prizes went to projects in second-order cone programming, microplastics filtration and multi-sensory therapy for dementia.
The top winners were honored during two award ceremonies: the Special Awards on May 16 and the Grand Awards Ceremony on the morning of May 17. In total, over $9 million USD was awarded to the finalists based on their projects’ creativity, innovation and depth of scientific inquiry. The competition featured nearly 2,000 young scientists representing 49 U.S. states and nearly 70 countries, regions and territories across the world.
Grace Sun, 16, of Lexington, Kentucky, won first place and received the $75,000 George D. Yancopoulos Innovator Award for her research on building a better organic electrochemical transistor that she hopes will be used to develop new electronic devices that could help detect and treat serious illnesses like diabetes, epilepsy and organ failure. To overcome the problems that have previously prevented such devices from working effectively inside the body, Grace developed a new way of chemically treating their organic components, which greatly improved their laboratory performance.
Michelle Wei, 17, of San Jose, California, received one of two Regeneron Young Scientist Awards of $50,000 for her research to improve the speed and efficiency of a type of software that is useful in many fields such as machine learning, transportation and financial systems. Michelle’s new approach involved determining a quick approximate solution to the second-order cone programming problem, then splitting the initial cone into smaller cones, which enabled her new algorithm to greatly outperform previous approaches.
Krish Pai, 17, of Del Mar, California, received the second Regeneron Young Scientist Award of $50,000 for his machine-learning research to identify microbial genetic sequences that can be modified to biodegrade plastic. His new software, called Microby, scans databases of microorganisms and determines which ones can be changed genetically to biodegrade plastics. In tests, he identified two microorganisms that can be genetically modified to degrade plastic at a cost he believes would be ten times less than traditional recycling.
“Congratulations to the Regeneron International Science and Engineering Fair 2024 winners,” said Maya Ajmera, President and CEO, Society for Science and Executive Publisher, Science News. “I’m truly inspired by the ingenuity and determination shown by these remarkable students. Coming from around the world with diverse backgrounds and academic disciplines, these students have shown that it is possible to come together in unity to tackle some of the toughest challenges facing our world today, and I could not be prouder.”
Regeneron ISEF provides a global stage for the world’s best and brightest young scientists and engineers. Through this competition, Regeneron and the Society are fostering the next generation of STEM leaders who are pioneering solutions to improve our world. Since 2020, Regeneron has provided STEM experiences to approximately 2.4 million students, on track to meet its goal of 2.5 million by 2025.
“The talent, intelligence and potential of this year’s Regeneron ISEF finalists is truly inspiring, and I congratulate each on their remarkable achievements,” said George D. Yancopoulos, M.D., Ph.D., co-Founder, Board co-Chair, President and Chief Scientific Officer of Regeneron. “Science competitions like ISEF were pivotal in shaping my own career and fueling my passion to fight back against disease. I look forward to seeing these students continue to push the boundaries of science and technology to create positive and sustainable change for all humanity.”
Other top honors from the competition include:
Justin Huang and Victoria Ou, both 17, of Woodlands, Texas, received the Gordon E. Moore Award for Positive Outcomes for Future Generations of $50,000 for their new prototype filtration system that uses ultrasonic waves to remove microscopic plastic particles from water. In lab tests, the acoustic force from the high-frequency sound waves removed between 84% and 94% of the suspended microplastic particles in a single pass. The students are now working to scale up and fine-tune their experimental system.
Ingrid Wai Hin Chan, 17, of Hong Kong, China received the Craig R. Barrett Award for Innovation of $10,000 for her research on using a multi-sensory therapy for dementia patients. Her mixed therapy app would allow patients to practice physical and cognitive skills through a personalized, immersive environment using virtual reality headsets. Ingrid conducted an eight-week study with six people living with dementia and found that the cognitive function of patients who used her prototype improved in several areas. She believes her app could serve as a viable option for dementia patients with limited access to in-person professional therapy.
Tanishka Balaji Aglave, 15, of Valrico, Florida, received the H. Robert Horvitz Prize for Fundamental Research of $10,000 for her investigation into a natural alternative treatment against citrus greening, a disease that threatens citrus farming in many parts of the world and is currently only treated with antibiotics. Tanishka injected the trunks of infected trees with an extract from the curry leaf tree, and found through tests that this potential method could effectively and sustainably manage citrus greening disease.
Maddux Alexander Springer, 18, of Honolulu, Hawaii, received the Peggy Scripps Award for Science Communication of $10,000 for his research into fibropapillomatosis (FP), a disease that is the primary cause of death in green sea turtles. Some turtles he studied in Kaneohe Bay, Hawaii, were stricken with a disease that causes internal and external tumors that inhibit their everyday lives. After analyzing the turtles’ diet of green algae, Maddux concluded that this disease, wastewater, invasive algae and the amino acid arginine all pose a grave risk to these endangered sea creatures.
Ria Kamat, 17, of Hackensack, New Jersey; Anna Oliva, 17, of Houston, TX; and Shuhan Luo, 18, of Worcester, MA, received the Dudley R. Herschbach SIYSS Award, which provides finalists an all-expense paid trip to attend the Stockholm International Youth Science Seminar during Nobel Week in Stockholm, Sweden.
Jack Shannon, 18, of Clane, Kildare, Ireland, and Nikhil Vemuri, 17, of Cary, North Carolina, received the EU Contest for Young Scientists Award. Their projects will represent Regeneron ISEF at the EU Contest for Young Scientists to be held this September in Katowice, Poland.
For more information about the top winners and access to visual assets visit: https://www.societyforscience.org/isef-2024-media-kit.
The full list of Special Award ISEF 2024 Finalists can be found at https://www.societyforscience.org/press-release/regeneron-isef-2024-special-awards-winners.
In addition to the Top Award winners, more than 450 finalists received awards and prizes for their innovative research, including “First Award” winners, who each received a $5,000 prize.
The following lists the First Award winners for each of the 22 categories, from which the Top Awards were chosen:
Animal Sciences, sponsored by Society for ScienceMaddux Alexander Springer, Honolulu, Hawaii
Behavioral and Social Sciences, sponsored by Society for ScienceAndrew Y. Liang, San Jose, California
Biochemistry, sponsored by RegeneronAmy Hong Xiao, Garden City, New York
Biomedical and Health Sciences, sponsored by RegeneronRia Kamat, Hackensack, New Jersey; Kevin Xuan Lei, Shanghai, China
Biomedical Engineering, sponsored by Alfred E. Mann CharitiesAyush Garg, Dublin, California; Divij Motwani, Palo Alto, California; Akash Ashish Pai, Portland, Oregon
Cellular and Molecular Biology, sponsored by RegeneronLara and Maya Sarah Hammoud, Beverly Hills, Michigan
Chemistry, sponsored by Society for ScienceAkilan Sankaran, Albuquerque, New Mexico; Arjun Suresh Malpani and Siddharth Daniel D’costa, Portland, Oregon
Computational Biology and Bioinformatics, sponsored by RegeneronKun-Hyung Roh, Bronx, New York
Earth and Environmental Sciences, sponsored by Google.orgNikhil Vemuri, Durham, North Carolina; Justin Yizhou Huang and Victoria Ou, The Woodlands, Texas
Embedded Systems, sponsored by HPChloe Rae and Sophie Rose Filion, Welland, Ontario, Canada
Energy: Sustainable Materials and Design, sponsored by Siemens EnergyAlia Wahban, Hamilton, Ontario, Canada
Engineering Technology: Statics and Dynamics, sponsored by Howmet Aerospace FoundationChiyo Nakatsuji, Bunkyoku, Tokyo, Japan; Kevin Shen, Olympia, Washington
Environmental Engineering, sponsored by JacobsKrish Pai, San Diego, California; Jack Shannon, Clane, Kildare, Ireland
Materials Science, sponsored by Howmet Aerospace FoundationGrace Sun, Lexington, Kentucky
Mathematics, sponsored by Akamai FoundationAnna Oliva, Houston, Texas
Microbiology, sponsored by Schattner FoundationMatthew Chang, Irvine, California
Physics and Astronomy, sponsored by Richard F. Caris Charitable Trust IIHarini Thiagarajan and Vishal Ranganath Yalla, Bothell, Washington; Shuhan Luo, Worcester, Massachusetts
Plant Sciences, sponsored by Society for SciencePauline Estrada, Fresno, California; Tanishka Balaji Aglave, Dover, Florida
Robotics and Intelligent Machines, sponsored by RegeneronMichal Lajciak, Dubnica nad Vahom, Trenciansky kraj, Slovakia; Anthony Efthimiadis, Oakville, Ontario, Canada
Systems Software, sponsored by MicrosoftMichelle Wei, San Jose, California
Technology Enhances the Arts, sponsored by Society for ScienceAnant Khandelwal, Sritan Motati and Siddhant Sood, Alexandria, Virginia
Translational Medical Science, sponsored by RegeneronZheng-Chi Lee, West Lafayette, Indiana; Ingrid Wai Hin Chan, Hong Kong, China
The full list of all award-winning ISEF 2024 finalists is available here: https://www.societyforscience.org/press-release/regeneron-isef-2024-full-awards.
View all the finalists’ research here: https://projectboard.world/isef.
About the Regeneron International Science and Engineering FairThe Regeneron International Science and Engineering Fair (Regeneron ISEF), a program of Society for Science for over 70 years, is the world’s largest global science competition for high school students. Through a global network of local, regional and national science fairs, millions of students are encouraged to explore their passion for scientific inquiry. Each spring, a group of these students is selected as finalists and offered the opportunity to compete for approximately U.S. $9 million in awards and scholarships.
In 2019, Regeneron became the title sponsor of ISEF to help reward and celebrate the best and brightest young minds globally and encourage them to pursue careers in STEM to positively impact the world. Regeneron ISEF is supported by a community of additional sponsors, including Akamai Foundation, Alfred E. Mann Charities, Aramco, Caltech, Google.org, Gordon and Betty Moore Foundation, Howmet Aerospace Foundation, HP, , Jacobs, King Abdulaziz & his Companions Foundation for Giftedness and Creativity, Microsoft, National Geographic Society, Richard F. Caris Charitable Trust II, Rise, an initiative of Schmidt Futures and the Rhodes Trust, Schattner Foundation, Siemens Energy, Annenburg Foundation, Ballmer Group, Broadcom Foundation, Cesco Linguistic Services, Conrad N. Hilton Foundation, Edison International, Insaco, Oracle Academy, The Eli and Edythe Broad Foundation, The Ralph M. Parsons Foundation and US Army ROTC. Many are entrepreneurs across a wide range of industries. Learn more at https://www.societyforscience.org/isef/.
About Society for ScienceSociety for Science is a champion for science, dedicated to promoting the understanding and appreciation of science and the vital role it plays in human advancement. Established in 1921, Society for Science is best known for its award-winning journalism through Science News and Science News Explores, its world-class science research competitions for students, including the Regeneron Science Talent Search, the Regeneron International Science and Engineering Fair and the Thermo Fisher Scientific Junior Innovators Challenge, and its outreach and equity programming that seeks to ensure that all students have an opportunity to pursue a career in STEM. A 501(c)(3) membership organization, Society for Science is committed to inform, educate and inspire. Learn more at www.societyforscience.org and follow us on Facebook, Twitter, Instagram and Snapchat (Society4Science).
About RegeneronRegeneron (NASDAQ: REGN) is a leading biotechnology company that invents, develops and commercializes life-transforming medicines for people with serious diseases. Founded and led by physician-scientists, our unique ability to repeatedly and consistently translate science into medicine has led to numerous approved treatments and product candidates in development, most of which were homegrown in our laboratories. Our medicines and pipeline are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neurological diseases, hematologic conditions, infectious diseases and rare diseases.
Regeneron believes that operating as a good corporate citizen is crucial to delivering on our mission. We approach corporate responsibility with three goals in mind: to improve the lives of people with serious diseases, to foster a culture of integrity and excellence and to build sustainable communities. Regeneron is proud to be included on the Dow Jones Sustainability World Index and the Civic 50 list of the most “community-minded” companies in the U.S. Throughout the year, Regeneron empowers and supports employees to give back through our volunteering, pro bono and matching gift programs. Our most significant philanthropic commitments are in the area of early science education, including the Regeneron Science Talent Search and the Regeneron International Science and Engineering Fair (ISEF).
For more information, please visit www.Regeneron.com or follow Regeneron on LinkedIn, Instagram, Facebook or X.
More information about the top winners and access to visual assets visit: https://www.societyforscience.org/isef-2024-media-kit.
Media ContactsJoseph Brown, [email protected]
Gayle Kansagor, Society for [email protected]
Photo – https://mma.prnewswire.com/media/2416174/Regeneron_ISEF_2024_Winners_Photo.jpg
Logo – https://mma.prnewswire.com/media/2416197/Society_for_Science_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/more-than-9-million-awarded-to-high-school-scientists-and-engineers-at-the-regeneron-international-science-and-engineering-fair-2024-302149316.html
Artificial Intelligence
J.P. Morgan Life Sciences Private Capital, Blue Horizon Advisors and United Al Saqer Announce Winner of Inaugural 2024 Life Sciences Innovation Summit
In conjunction with Abu Dhabi Global Healthcare Week 2024
ABU DHABI, UAE, May 17, 2024 /PRNewswire/ — J.P. Morgan Life Sciences Private Capital, Blue Horizon Advisors and United Al Saqer Group announced today Rayees Rahman of Harmonic Discovery as the winner of the inaugural J.P. Morgan Asset Management: Life Sciences Innovation Summit. Harmonic Discovery is a precision pharmacology company applying its generative chemistry platform to advance next-generation kinase inhibitors.
In partnership with the Department of Health – Abu Dhabi (DoH), the Summit took place on May 14-15, 2024 at Cleveland Clinic Abu Dhabi and showcased the 11 innovative finalists, as well as highlighted existing innovators and opportunities in the Emirate of Abu Dhabi. The event also featured keynote speeches from Dr. Laurie Glimcher of Dana-Farber Cancer Institute, Dr. Shahrukh Hashmi of the Department of Health – Abu Dhabi, and Dr. David Ho of Columbia University Medical Center and provided attendees networking opportunities to gain valuable insights into the future of life sciences innovation.
In addition, the jury designated Chun-Hao Huang of Algen Biotechnologies as honourable mention. Algen Biotechnologies is a platform therapeutics and drug discovery company using world-leading CRISPR and AI to find treatments for cancer, inflammation and metabolic diseases.
The winners were selected by an esteemed, international panel of judges, which included:Laurie Glimcher, MD, President and CEO at Dana-Farber Cancer InstituteJorge Guzman, MD, CEO at Cleveland Clinic Abu DhabiProf. Shahrukh Khurshid Hashmi, MD, Director of Research, Department of Health, Abu DhabiYasmine Hayek Kobeissi, PhD, CQF, BSc., Executive Director at Blue Horizon AdvisorsAnya Schiess, Managing Partner at J.P. Morgan Life Sciences Private CapitalWalid Zaher, PhD, Co-Founder and CEO, Carexso
Dr. Asma Al Mannaei, Executive Director of the Research and Innovation Centre at the Department of Health – Abu Dhabi said: “Under the directives of the UAE’s wise leadership, and renowned for its world-leading medical infrastructure, Abu Dhabi stands at the forefront of healthcare excellence, offering an unparalleled opportunity for advancement in healthcare for global partners. It was our utmost pleasure hosting the J.P. Morgan Asset Management Life Sciences Innovation Summit 2024 on the sidelines of Abu Dhabi Global Healthcare Week and we commend the winners for their pioneering efforts in driving impactful advancements in healthcare; their dedication to innovation not only transforms the landscape of medicine, but also holds the promise of improving lives worldwide.”
Stephen Squinto, PhD, Chief Investment Officer, J.P. Morgan Life Sciences Private Capital said: “We are thrilled with the level of biotech passion and innovation that we observed at this year’s Summit in Abu Dhabi. The energy was truly palpable we are thrilled to announce Rayees Rahman as the winner of our first Life Sciences Innovation Summit. Harmonic Discovery’s approach embodies the next generation of drug discovery and development. We appreciate the time and effort of all participants and cannot wait for our next event in the region.”
Nabil Kobeissi, Chief Executive Officer of Blue Horizon Advisors, said: “As the main sponsor, we are committed to nurturing and fostering the growth of all 11 finalists in this vibrant biotech ecosystem. This Summit marks the beginning of a transformative journey, and we are confident that it will pave the way for a flourishing hub in the region. We are also pleased to announce that we will commit to invest in and partner with the winner, Harmonic Discovery, to support its future growth in the region.”
Sponsors for the event included J.P. Morgan Life Sciences Private Capital, J.P. Morgan Commercial Bank, Blue Horizon Advisors, United Al Saqer Group, Thermo Fisher Scientific, and Salam Capital. The Summit organisation, logistics and finalist recruitment were facilitated by Lyfebulb.
Of importance, at the Summit, Mr. Mohamed Al Breiki, Executive Director of Sustainable Development at Masdar City, announced that Masdar City Free Zone would award all 11 Finalists complimentary business licenses to further support their establishment in the region. Masdar City is one of the world’s most sustainable urban developments and innovation hubs with a growing focus on life science entrepreneurship in Abu Dhabi.
View original content:https://www.prnewswire.co.uk/news-releases/jp-morgan-life-sciences-private-capital-blue-horizon-advisors-and-united-al-saqer-announce-winner-of-inaugural-2024-life-sciences-innovation-summit-302149186.html
Artificial Intelligence
Congregating in the Lion City for a Win-Win Future of Intelligent Computing at the Global Data Center Facility Summit 2024
SINGAPORE, May 17, 2024 /PRNewswire/ — On May 17, 2024, the Global Data Center Facility Summit 2024 was held in Singapore with the theme of “Power the Digital Era Forward.” At the summit, over 600 data center industry leaders, technical experts, and ecosystem partners gathered to discuss new trends and opportunities of the global data center industry in the intelligent computing era. The attendees also got to experience all-scenario, all-ecosystem, and all-service end-to-end (E2E) solutions, share innovative practices of green data centers in the Asia Pacific and Europe, and experience the exhibition vehicle to unveil the mystery of Outdoor PowerPOD that features one power system per container. By fully embracing the intelligent computing era, Huawei strives to power the digital era forward.
Seizing Opportunities Brought by AI and Jointly Building Green & Reliable Computing Infrastructure
At the opening speech, Charles Yang, Senior Vice President of Huawei and President of Marketing, Sales and Services, Huawei Digital Power, noted that since ChatGPT ushered in the AI era, large models keep pushing the limits of computing power and the intelligent computing industry is witnessing an unprecedented construction boom. As predicted, 100 GW will be added to the global data center installed capacity and the market value will exceed US$600 billion in the next five years.
According to Charles, with opportunities come challenges. The primary challenge concerning the data center industry is reliability and electricity. Data centers are scaling up from the MW-level to the GW-level. E2E reliability of data centers is becoming even more important than ever. In response to the opportunities, Huawei will work with customers and partners to expand the industry space.
Steering Data Centers to the AI Era with Product + Service + Ecosystem
During the summit, Sun Xiaofeng, President of Huawei Data Center Facility & Critical Power Business, delivered a speech titled “Power the Digital Era Forward. ” He stated that as AI large models are penetrating, the surging compute demands drive the expansive growth in data center.
To address the challenges, Huawei strives to build product + service + ecosystem E2E data center solutions that feature fast deployment, flexible cooling, green energy, and ultimate reliability.
Fast deployment: Data centers are fully modularized and prefabricated to ensure high quality and efficient construction.Flexible cooling: Air-liquid fusion and integrated cooling source emerges as the optimal cooling architecture for intelligent computing.Green energy: New generation-grid-load-storage integrated solution is built to ensure the sound operations of intelligent computing centers.Ultimate reliability: Data centers are safeguarded through reliable products and preventive protection.Currently, Huawei’s global service network covers more than 170 countries with over 1800 professional engineers, providing 24/7 technical support. With N+ flagship service centers, Huawei has built a one-hour service radius for its customers.
The ecosystem is a key part for a win-win future of intelligent computing. Huawei works with partners to develop comprehensive E2E solutions and provide customers with one-stop data center services.
During the summit, Huawei and the ASEAN Centre for Energy released a white paper on “Building Next Generation Data Center Facility in ASEAN.” The document provides insights into the status quo, challenges, and trends of data centers in the ASEAN region, and emphasizes that efficient and energy-saving products and solutions should be applied. It also proposes future-oriented policy recommendations for data center markets.
In the ecosystem exhibition area, Huawei showcased scenario-based solutions for large-, medium-, and small-sized data centers, and demonstrated data center consulting, design, integrated development, and delivery capabilities with dozens of ecosystem partners including CIMC, Weichai, CSCEC, and Huashi.
On a special note, the Huawei Outdoor PowerPOD exhibition vehicle made its global debut. The Huawei Outdoor PowerPOD features one power system per container, outdoor deployment, plug-and-play, and high protection rating and reliability. It has become the preferred choice for decoupling the power supply architecture.
A single tree cannot make a forest.
AI is presenting great opportunities. By delving into the industry, aggregating partner ecosystems, and making innovations applicable to transformations, Huawei will continue to help customers build reliable computing infrastructure, accelerating the industry to embrace AI and powering the digital era forward.
Photo – https://mma.prnewswire.com/media/2415818/Global_Data_Center_Facility_Summit_2024.jpg
View original content:https://www.prnewswire.co.uk/news-releases/congregating-in-the-lion-city-for-a-win-win-future-of-intelligent-computing-at-the-global-data-center-facility-summit-2024-302148973.html
-
Uncategorized5 days ago
Crossover Markets Becomes First Crypto ECN to Integrate with Talos
-
Uncategorized5 days ago
Precisely Showcases Critical Role of Trusted Data in AI at the Gartner® Data & Analytics Summit in London
-
Artificial Intelligence5 days ago
MSI Highlights Optimized AI Platforms to Accelerate Compute-Intensive Applications at ISC 2024
-
Artificial Intelligence5 days ago
Advanced HPC Server Platforms by MiTAC and TYAN Spotlighted at ISC High Performance 2024
-
Uncategorized3 days ago
Artificial intelligence tool detects sex-related differences in brain structure
-
Artificial Intelligence7 days ago
Elevate Your Virtual Reality Experience with KIWI design RGB Vertical Stand, Now Available on Meta’s Website
-
Artificial Intelligence5 days ago
LG CEO EMBARKS ON STRATEGIC U.S. VISIT TO ENHANCE AI INITIATIVES
-
Artificial Intelligence5 days ago
Supermicro’s Rack Scale Liquid-Cooled Solutions with the Industry’s Latest Accelerators Target AI and HPC Convergence