Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market Information for Common Stock
Our common stock trades on the New York Stock Exchange under the symbol “BSIG.” As of February 26, 2021 there were two registered stockholders of record.
Repurchases
The following table sets out information regarding repurchases of equity securities by the Company for the three months ended December 31, 2020:
Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value that may yet be purchased under the plans or programs (1)
(in millions)
October 1-31, 2020 117,700 $ 13.66 117,700 $ 241.8
November 1-30, 2020 627,001 14.52 627,001 232.7
December 1-31, 2020 — — — 232.7
Total 744,701 $ 14.38 744,701
(1) On February 3, 2016, our Board of Directors authorized a $150.0 million open market share repurchase program, which was approved by shareholders on March 15, 2016. On April 18, 2018, our Board of Directors approved an amendment to the existing repurchase contract, to permit us to repurchase shares from time to time, up to an aggregate limit of $600.0 million of shares.We repurchased 744,701 shares of common stock with an aggregate purchase price of $10.7 million under this program during the three months ended December 31, 2020. As of December 31, 2020, $232.7 million remained available to repurchase shares under the open market share repurchase program.
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Financial Performance Graph
This performance graph shall not be deemed “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of BSIG under the Securities Act.
The following graph compares the cumulative shareholder return on our common stock from October 8, 2014, the date of our initial public offering, through December 31, 2020, with the cumulative total return, during the same period, of the Standard & Poor’s 500 Index, the Standard & Poor’s 500 Financial Sector Index and a peer group comprised of Affiliated Managers Group, Inc., AllianceBernstein Holding L.P., Artisan Partners Asset Management, Inc.,Cohen & Steers, Inc., Eaton Vance Corp., Federated Investors, Inc., Franklin Resources, Inc., Invesco Ltd., Janus Henderson Group plc, T. Rowe Price Group, Inc., Victory Capital Management, and Virtus Investment Partners, Inc.
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Item 6. Selected Financial Data.
We present economic net income, or ENI, to help us describe our operating and financial performance. ENI is the key measure our management uses to evaluate the financial performance of, and make operational decisions for, our business. ENI is not audited, and is not a substitute for net income or other performance measures that are derived in accordance with U.S. GAAP. Furthermore, our calculation of ENI may differ from similarly titled measures provided by other companies. Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Supplemental Performance Measure—Economic Net Income and Segment Analysis” for a more thorough discussion of ENI and a reconciliation of ENI to U.S. GAAP net income.
The following table sets forth our selected historical consolidated financial data as of the dates and for the periods indicated. The data for each of the five years presented have been derived from our historical Consolidated Financial Statements audited under U.S. GAAP.
You should read our following selected historical consolidated financial data together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the historical Consolidated Financial Statements and the related notes thereto, included elsewhere in this Annual Report on Form 10-K.
Years ended December 31,
($ in millions, except per share data as noted) 2020 2019 2018 2017 2016
U.S. GAAP Statement of Operations Data (1) :
Management fees (2)
$ 697.9 $ 807.0 $ 905.0 $ 858.0 $ 659.9
Performance fees 7.8 (0.1) 9.8 26.5 2.6
Other revenues 7.3 6.0 9.6 1.2 0.9
Consolidated Funds’ revenue (2)
5.5 6.6 3.8 1.7 0.1
Total Revenue (2)
$ 718.5 $ 819.5 $ 928.2 $ 887.4 $ 663.5
Net income before tax from continuing operations attributable to controlling interests (3)
$ 398.8 $ 241.9 $ 141.3 $ 137.1 $ 161.0
Net income from continuing operations attributable to controlling interests (2)(3)
286.7 223.9 136.3 4.3 120.2
Net income (loss) from continuing operations (2)
315.5 240.0 130.2 9.2 120.0
U.S. GAAP operating margin (2)(4)
25 % 31 % 9 % 8 % 23 %
U.S. GAAP basic earnings per share from continuing operations attributable to controlling interests
$ 3.53 $ 2.45 $ 1.27 $ 0.04 $ 0.98
U.S. GAAP diluted earnings per share from continuing operations attributable to controlling interests
$ 3.49 $ 2.45 $ 1.26 $ 0.04 $ 0.98
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Years ended December 31,
($ in millions, unless otherwise noted) 2020 2019 2018 2017 2016
Non-GAAP Data:
Economic net income (5) :
Management fees $ 697.9 $ 807.0 $ 905.0 $ 858.0 $ 659.9
Performance fees 7.8 (0.1) 9.8 26.5 2.6
Other revenues 5.6 4.4 4.3 16.2 16.0
Total ENI revenue $ 711.3 $ 811.3 $ 919.1 $ 900.7 $ 678.5
Pre-tax economic net income $ 187.1 $ 210.8 $ 262.5 $ 251.3 $ 190.7
Economic net income 143.6 160.8 199.8 180.9 145.1
ENI operating margin (6)
35 % 35 % 38 % 38 % 35 %
ENI earnings per share, diluted 1.75 1.76 1.86 1.62 1.21
Other Operational Information (7) :
Assets under management at period end (in billions)
$ 156.7 $ 204.4 $ 206.3 $ 243.0 $ 240.4
Net client cash flows (in billions) (8)
(3.3) (32.7) (4.3) — 7.3
Annualized revenue impact of net flows (in millions) (9)
(22.0) (69.1) 19.1 54.8 44.2
Years ended December 31,
($ in millions) 2020 2019 2018 2017 2016
U.S. GAAP Balance Sheet Data:
Total assets (10)
$ 1,379.2 $ 1,419.7 $ 1,553.7 $ 1,491.7 $ 1,294.3
Total assets attributable to controlling interests 1,298.9 1,280.8 1,467.6 1,386.7 1,283.0
Total borrowings and debt (10)
394.3 568.8 393.3 426.3 392.3
Total borrowings and debt attributable to controlling interests 394.3 568.8 393.3 426.3 392.3
Total liabilities (10)
994.8 1,221.3 1,377.6 1,320.4 1,123.8
Total liabilities attributable to controlling interests
994.8 1,215.1 1,362.7 1,309.9 1,118.0
Total Equity (10)
$ 384.4 $ 198.4 $ 176.1 $ 171.3 $ 170.5
Redeemable non-controlling interests in consolidated Funds (2)
— (83.9) (41.9) (44.0) (5.5)
Non-controlling interests in consolidated
Funds (2)
(80.3) (48.8) (29.3) (50.6) —
Non-controlling interests (1.7) (1.3) (1.6) (1.3) (1.0)
Shareholders’ equity $ 302.4 $ 64.4 $ 103.3 $ 75.4 $ 164.0
(1) The U.S. GAAP Consolidated Statements of Operations Data above has been presented on a continuing operations basis. Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further discussion of our results of operations, including discontinued operations, and a reconciliation to the results from continuing operations.
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(2) Consolidated Statements of Operations data presented in accordance with U.S. GAAP include the results of consolidated Funds managed by our Affiliates where it has been determined these entities are controlled by us. There was no management fee elimination associated with Funds consolidation in 2016 through 2020. The net income from continuing operations presented as attributable to controlling interests exclude the income or loss directly attributable to third-party Fund investors, and represent the net amounts attributable to our shareholders. For the years ended December 31, 2016 through 2020, as a result of the purchase or deployment of seed capital investments, we consolidated certain Funds.
(3) The following table reconciles our net income attributable to controlling interests to our net income from continuing operations attributable to controlling interests and our pre-tax income from continuing operations attributable to controlling interests:
Years ended December 31,
($ in millions) 2020 2019 2018 2017 2016
Net income attributable to controlling interests $ 286.7 $ 223.9 $ 136.4 $ 4.2 $ 126.4
Exclude: Loss (profit) on disposal of discontinued operations attributable to controlling interests
— — (0.1) 0.1 (6.2)
Net income from continuing operations attributable to controlling interests
286.7 223.9 136.3 4.3 120.2
Add: Income tax expense 112.1 18.0 5.0 132.8 40.8
Pre-tax income from continuing operations attributable to controlling interests
$ 398.8 $ 241.9 $ 141.3 $ 137.1 $ 161.0
(4) U.S. GAAP operating margin equals operating income (loss) from continuing operations divided by total revenue. Excluding the effect of Funds consolidation, our U.S. GAAP operating margin would be 24% for the year ended December 31, 2020, 30% for the year ended December 31, 2019, 9% for the year ended December 31, 2018, 8% for the year ended December 31, 2017 and 23% for the year ended December 31, 2016.
(5) Economic net income, including a reconciliation to U.S. GAAP net income attributable to controlling interests, is discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Supplemental Performance Measure—Economic Net Income.” Pre-tax and post-tax ENI are presented after Affiliate key employee distributions. These measures are conceptually equivalent to net income before tax from continuing operations attributable to controlling interests and net income from continuing operations attributable to controlling interests, respectively.
(6) ENI operating margin is a non-GAAP efficiency measure, calculated based on ENI operating earnings divided by ENI revenue. For a more detailed discussion of the differences between U.S. GAAP net income and economic net income, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Supplemental Performance Measure—Economic Net Income and Segment Analysis.”
(7) On August 2, 2017, we entered into a non-binding term sheet to sell our stake in Heitman to Heitman’s management. Pursuant to this term sheet, we entered into a redemption agreement on November 17, 2017. Heitman stopped contributing to our financial results of operations as of November 30, 2017 and the transaction closed on January 5, 2018. We have broken the Heitman AUM and flows out of our AUM reporting as of July 1, 2017, in order to give the reader a better perspective of the ongoing business following the closing of this transaction. Unless specifically noted, flow information includes flows from Heitman for the first half of 2017, but excludes it thereafter, and AUM data at December 31, 2017 and thereafter excludes the Heitman AUM.
(8) Net flows and revenue impact of net flows for all periods above have been revised for the inclusion of reinvested income and distributions, and the exclusion of realizations. The impact of reinvested income and distributions was calculated using an average yield estimate for the year ended December 31, 2016.
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(9) Annualized revenue impact of net flows excludes market appreciation or depreciation. Annualized revenue impact of net flows represents the difference between annualized management fees expected to be earned on new accounts and net assets contributed to existing accounts, less the annualized management fees lost on terminated accounts or net assets withdrawn from existing accounts, including equity-accounted Affiliate. The annualized management fees are calculated by multiplying the annual gross fee rate for the relevant account by the net assets gained in the account in the event of a positive flow, excluding any current or future market appreciation or depreciation, or the net assets lost in the account in the event of an outflow, excluding any current or future market appreciation or depreciation. For a further discussion of the uses and limitations of the annualized revenue impact of net flows, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Assets Under Management.”
(10) Balance sheet data presented in accordance with U.S. GAAP for the years 2016, 2017, 2018, 2019 and 2020 include the results of Funds managed by our Affiliates where it has been determined these entities are controlled by our Company. Consolidated assets and liabilities of these entities that are attributable to third-party investors, or non-controlling interests, have the effect of increasing our consolidated assets and liabilities. The net assets and liabilities presented as attributable to controlling interests exclude the portions directly attributable to these third-party investors, and represent the net amounts attributable to our shareholders. Similarly, Shareholders’ equity represents our net assets after excluding net assets directly attributable to these third-party investors.
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