ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) filed Form 10-Q, wherein it reported that for the quarter closed September 30, 2016 total revenues declined by $0.8 million over the same period, a year earlier. The management fees recorded a decline of $0.5 million, which was mainly due to YoY drop in average AUM of $0.383 billion.
ZAIS recorded a $0.3 million drop in incentive income mainly due to incentive income identified during the quarter closed September 30, 2015 pertaining to a managed account which sold in 2015 and also residual incentive income obtained which linked to 2014 fund performance, partially offset by a jump in incentive income identified during the quarter closed September 30, 2016 pertaining to a deposit in which incentive income formed as of close September 2016. Also, a managed account was liquidated at the close of September 2016.
Some adjustments to revenue were made when computing Adjusted EBITDA (Non-GAAP) for the quarter closed September 2016. Management fee elimination of $0.2 million will be added to management fee income. There exist no revenues adjustment when computing Adjusted EBITDA (Non-GAAP) for the quarter closed September 2015.
There was increase in benefits and compensation mainly due to a $2 million jump in incentive compensation pertaining to the increase for year-end bonuses last year and the payment of maintenance bonuses in the quarter closed September 2016; offset by a $1.3 million drop in salaries and linked payroll taxes and other advantages due to the decline in force and other rearrangement. ZAIS reported that there was a $0.1 million drop in severance expenses and a $0.1 million drop in equity compensation pertaining to a jump in the projected forfeiture rate on the firm’s B-0 units.
In the last trading session, the stock price of ZAIS closed flat at $9.70. The market cap of firm now stands at $231.44 million.