Cash Earnings per Diluted Share of $0.70 for Fourth Quarter and $2.46 for 2008
Gross Margin Percentage Improved to 19.2% from 17.5% in the Third Quarter of 2008
NEW YORK, Feb. 10 /PRNewswire-FirstCall/ -- National Financial Partners Corp. (
4Q 4Q % 4Q 3Q % Financial Highlights* 2008 2007 Change 2008 2008 Change --------------------- ---- ---- ------ ---- ---- ----- (Dollars in millions, except per share data) Revenue $299.3 $355.9 -15.9% $299.3 $277.3 7.9% Gross Margin % 19.2% 19.1% 19.2% 17.5% Net (loss) income (10.7) 19.3 NM (10.7) 5.1 NM Net (loss) income per diluted share (0.26) 0.47 NM (0.26) 0.12 NM Cash earnings 28.4 33.6 -15.5% 28.4 23.7 19.8% Cash earnings excluding management agreement buyout, net of tax 28.4 33.6 -15.5% 28.4 23.7 19.8% Cash earnings per diluted share 0.70 0.82 -14.6% 0.70 0.56 25.0% Cash earnings per diluted share excluding management agreement buyout, net of tax $0.70 $0.82 -14.6% $0.70 $0.56 25.0% "Same store" revenue growth/ decline -17.1% 7.6% -17.1% -14.4% Net "same store" revenue growth/ decline -12.7% 7.7% -12.7% -11.3% "Same store" gross margin growth/decline -18.0% 0.3% -18.0% -22.6% Financial Highlights* FY 2008 FY 2007 % Change --------------------- ------- ------- ------- (Dollars in millions, except per share data) Revenue $1,150.4 $1,194.3 -3.7% Gross Margin % 18.1% 18.8% Net (loss) income 14.8 54.2 -72.7% Net (loss) income per diluted share 0.36 1.35 -73.3% Cash earnings 100.5 105.5 -4.7% Cash earnings excluding management agreement buyout, net of tax 100.5 113.2 -11.2% Cash earnings per diluted share 2.46 2.62 -6.1% Cash earnings per diluted share excluding management agreement buyout, net of tax $2.46 $2.81 -12.5% "Same store" revenue growth/decline -8.7% 0.3% Net "same store" revenue growth/ decline -6.9% 2.6% "Same store" gross margin growth/ decline -16.0% -3.1% * This summary includes financial measures not calculated based on generally accepted accounting principles.
NFP reported a fourth quarter 2008 net loss of $10.7 million, or a loss of $0.26 per diluted share, compared with net income of $19.3 million, or income of $0.47 per diluted share, in the fourth quarter of 2007. Fourth quarter 2008 cash earnings was $28.4 million, or $0.70 per diluted share, compared with $33.6 million, or $0.82 per diluted share, in the fourth quarter of 2007. The net loss during the quarter was the result of a $31.0 million impairment of goodwill and intangible assets. Cash earnings declined primarily as a result of a decline in "same store" revenue offset in part by lower commissions and fees, operating and management fee expenses. (As of the fourth quarter of 2008, the Company modified its definition of cash earnings, a non-GAAP measure, to reduce cash earnings for the tax benefit of impairment of goodwill and intangible assets. Prior periods have been modified on a comparable basis. Cash earnings is now defined as net income excluding amortization of intangibles, depreciation, and the after-tax impact of the impairment of goodwill and intangible assets. A full reconciliation of net income to cash earnings is provided in the attached tables.)
Jessica Bibliowicz, chairman, president and chief executive officer, said, "Operating performance improved from the third to the fourth quarter of 2008. As we outlined previously, we are focused on reducing firm operating expenses. Our efforts impacted gross margin percentage, which improved 1.7 percentage points sequentially in the fourth quarter of 2008. In addition, we executed an amendment to our credit facility agreement in December, achieving our goal of obtaining additional financial flexibility in a difficult economic environment. Our focus remains on operating as efficiently as possible to maintain the profitability of our firms in a challenging economy.
Compared with the fourth quarter of 2007, our employee benefits businesses, which have been the focus of our acquisition strategy for the last several years, generated strong 'same store' revenue and gross margin growth. The increase in benefits revenue was offset by declines in our life insurance and financial advisory businesses."
From the third to the fourth quarter of 2008, cash earnings increased $4.7 million, or 19.8%, and cash earnings per diluted share increased $0.14, or 25.0%. Revenue improved $22.0 million, or 7.9%, and gross margin as a percentage of revenue improved from 17.5% to 19.2%. The sequential quarter improvement in gross margin percentage was the result of lower commissions and fees and operating expenses as a percentage of revenue partially offset by increased management fees as a percentage of revenue.
Compared with the corresponding prior year period, "same store" gross margin declined 18.0% in the fourth quarter of 2008 and 16.0% for the full year. The decline for the quarter and year was the result of a decline in revenue partially offset by lower commissions and fees and management fee expenses for firms included in the "same store" calculation. The fourth quarter decline in "same store" gross margin was offset additionally by a decline in operating expenses for those firms included in the "same store" calculation. "Same store" calculations generally encompass firms that were owned by NFP for at least four full quarters at the beginning of the fourth quarter of 2008. More detailed definitions can be found in the Company's quarterly financial supplement, which is available on the Company's Web site at www.nfp.com.
For the full year 2008, cash earnings was $100.5 million, or $2.46 per diluted share, compared with cash earnings, excluding the cost of a management agreement buyout, net of tax, of $113.2 million, or $2.81 per diluted share in 2007. More detailed financial information can be found in the Company's quarterly financial supplement, which is available on the Company's Web site at www.nfp.com.
Fourth Quarter Results
Revenue decreased $56.6 million, or 15.9%, to $299.3 million in the fourth quarter of 2008 from the prior year period. Components of the decrease included:
These revenue decreases were offset in part by $6.2 million of revenue growth from firms acquired subsequent to the start of the fourth quarter of 2007 as well as adjustments for eliminations. Net "same store" revenue, which is revenue less commissions and fees expense for firms included in the "same store" calculation, declined 12.7% during the fourth quarter of 2008.
Gross margin before management fees was $109.5 million in the fourth quarter of 2008, a decrease of $26.4 million, or 19.4%, from the prior year period. Gross margin, which includes management fees as a component of cost of services, was $57.5 million in the fourth quarter of 2008, a decrease of $10.5 million, or 15.4%, from the prior year period.
As a percentage of revenue, gross margin was 19.2% in the fourth quarter of 2008 compared with 19.1% in the prior year period. Despite the revenue decline, the gross margin percentage was stable as a result of lower commissions and fees expense, an expense which varies directly with revenue, and lower management fees expense as a percentage of revenue, partially offset by higher operating expenses as a percentage of revenue. In absolute terms, operating expenses declined 2.4% in the fourth quarter of 2008 compared with the prior year period due to expense reduction initiatives and dispositions partially offset by expenses from new firms.
Management fees as a percentage of gross margin before management fees was 47.5% in the fourth quarter of 2008 versus 50.0% a year ago. Management fees include a component based on annual performance as well as an additional incentive component in which the Company's firms are rewarded for achieving growth targets based on three-year performance cycles resulting in accruals for potential incentive payments. The decline in management fee percentage during the quarter was the result of a reduction in incentive payment accruals to $0.7 million during the fourth quarter of 2008 versus $5.4 million in the prior year period.
General and administrative expense (G&A) increased $0.6 million, or 4.4%, to $15.3 million in the fourth quarter of 2008 compared with the prior year period. G&A included $1.4 million in severance expense related to a 20% headcount reduction at the Company's New York-based corporate headquarters in the fourth quarter of 2008.
In the fourth quarter of 2008, the Company took a $31.0 million impairment charge related to eighteen firms. The higher than typical level of impairments reflected the impact of the current economic environment on both the risk adjusted discount rate and future cash flow assumptions utilized in the Company's impairment analysis. The Company reviews and evaluates the financial and operating results of its acquired firms on a firm-by-firm basis for potential impairments throughout the year.
Amortization of intangibles increased 5.7% in the fourth quarter of 2008 due to acquisition activity in prior periods. Fourth quarter 2008 taxes were higher than pre-tax income due to the non-deductible nature of certain impairments.
Acquisitions
In 2008, the Company completed 20 transactions (including 13 sub-acquisitions) representing $16.8 million in base earnings. These acquisitions generated revenue of approximately $60.8 million in 2007, the most recent full year prior to acquisition. (The term base earnings represents the cumulative preferred portion of the pre-tax earnings before owners' compensation of acquired firms that the Company capitalizes at the time of acquisition.) Since its third quarter earnings announcement, the Company has completed a small number of previously agreed upon sub-acquisitions.
Earnings Conference Call & Presentation
The Company will conduct its fourth quarter 2008 earnings conference call and audio webcast on February 11, 2009, from 8:00 to 9:00 a.m. (ET). The conference call will be available live via telephone and the Internet. To access the call, dial (617) 213-8895 (when prompted, callers should provide the access code "NFP"). The conference call and webcast will be accompanied by a presentation. The presentation will be available for electronic download on the Company's Web site approximately one hour before the conference call and webcast is scheduled to begin. The presentation may also be viewed automatically upon connecting to the webcast. To listen to the conference call over the Internet, visit www.nfp.com/ir. The conference call will be available for replay via telephone and Internet for a period of 90 days. To listen to a replay of the conference call via telephone, dial (888) 286-8010. The access code for the replay is 25079234. To access the replay of the conference call over the Internet, visit the above-mentioned Web site.
Reconciliation of Non-GAAP Measures
The Company analyzes its performance using non-GAAP measures called cash earnings and cash earnings per diluted share (both including and excluding management agreement buyout, net of tax), gross margin before management fees and percentages or calculations using these measures. The Company believes these non-GAAP measures provide additional meaningful methods of evaluating certain aspects of the Company's operating performance from period to period on a basis that may not be otherwise apparent under GAAP. As of the fourth quarter of 2008, the Company modified its definition of cash earnings to reduce cash earnings for the tax benefit of impairment of goodwill and intangible assets. Prior periods have been modified on a comparable basis. Cash earnings is now defined as net income, excluding amortization of intangibles, depreciation, and the after-tax impact of the impairment of goodwill and intangible assets. Cash earnings per diluted share is calculated by dividing cash earnings by the number of weighted average diluted shares outstanding for the period indicated. Cash earnings and cash earnings per diluted share should not be viewed as substitutes for net income and net income per diluted share, respectively. Gross margin before management fees should not be viewed as a substitute for gross margin. A full reconciliation of these non-GAAP measures to their GAAP counterparts is provided in the Company's quarterly financial supplement, available on the Investor Relations section of the Company's Web site at www.nfp.com.
About National Financial Partners Corp.
Founded in 1998, NFP is a leading independent distributor of financial services products to high net worth individuals and companies. NFP is headquartered in New York and operates a distribution network of over 175 owned firms. For more information, please visit www.nfp.com.
Forward-Looking Statements
This release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words "anticipate," "expect," "intend," "plan," "believe," "estimate," "may," "project," "will" and "continue" and similar expressions of a future or forward-looking nature. Forward-looking statements may include discussions concerning revenue, expenses, earnings, cash flow, impairments, losses, dividends, capital structure, credit facilities, market and industry conditions, premium and commission rates, interest rates, contingencies, the direction or outcome of regulatory investigations and litigation, income taxes and NFP's operations or strategy. These forward-looking statements are based on management's current views with respect to future results, and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those contemplated by a forward-looking statement include: (1) NFP's success in acquiring high quality independent financial services distribution firms, (2) the performance of NFP's firms following acquisition, (3) competition in the business of providing financial services to high net worth individuals and companies, (4) NFP's ability, through its operating structure, to respond quickly and effectively to regulatory, operational or financial situations, (5) NFP's ability to manage its business effectively and profitably through the principals of its firms, and any losses that NFP may take, on dispositions of firms or otherwise, (6) changes in tax laws, including the elimination or modification of the federal estate tax and any change in the tax treatment of life insurance products, (7) developments in the pricing, design or underwriting of insurance products, revisions in mortality tables by life expectancy underwriters or changes in NFP's relationships with insurance companies, (8) changes in premiums and commission rates and the rates of other fees paid to NFP's firms, including life settlement and registered investment advisory fees, (9) a recessionary economic environment, resulting in fewer sales of financial services or products, including rising unemployment which could impact group benefit sales based on reduced headcount, and the availability of credit in connection with the purchase of such products or services, or consumer hesitancy in spending, (10) adverse results or other consequences from litigation, arbitration, regulatory investigations and inquiries, or internal compliance initiatives, including those related to compensation agreements with insurance companies and activities within the life settlements industry, (11) uncertainty in the financial services, insurance and life settlements industries arising from investigations into certain business practices and subpoenas received from various governmental authorities and related litigation, (12) the reduction of NFP's revenue and earnings due to the elimination or modification of compensation arrangements, including contingent compensation arrangements and the adoption of internal initiatives to enhance compensation transparency, including the transparency of fees paid for life settlements transactions, (13) changes in interest rates or general economic and credit market conditions, including changes that adversely affect NFP's ability to access capital, such as the global credit crisis that began in 2007 and continues today, (14) the occurrence of events or circumstances that could be indicators of impairment to goodwill and intangible assets which require the Company to test for impairment, and the impact of any impairments that the Company may take, (15) securities and capital markets behavior, including fluctuations in the price of NFP's common stock and recent uncertainty in the U.S. financial markets, (16) the impact of legislation or regulations in jurisdictions in which NFP's subsidiaries operate, including the possible adoption of comprehensive and exclusive federal regulation over all interstate insurers and the uncertain impact of proposals for legislation regulating the financial services industry, (17) the impact of the adoption or modification of certain accounting treatments or policies and changes in underlying assumptions, relating to, among other things, impairments, which may lead to adverse financial results, (18) adverse results or other consequences from higher than anticipated compliance costs, including those related to expenses arising from internal reviews of business practices and regulatory investigations or those arising from compliance with state or federal laws, (19) the continued availability of borrowings and letters of credit under NFP's credit facility, and (20) other factors described in NFP's filings with the Securities and Exchange Commission (the "SEC"), including those set forth in NFP's Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on February 19, 2008, and in NFP's Quarterly Report on Form 10-Q for the period ended September 30, 2008, filed with the SEC on November 7, 2008. Forward-looking statements speak only as of the date on which they are made. NFP expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited-in thousands, except per share data) Three Months Ended Year Ended December 31, December 31, ------------ ------------ 2008 2007 2008 2007 ---- ---- ---- ---- Revenue: Commissions and fees $299,252 $355,884 $1,150,387 $1,194,294 Cost of services: Commissions and fees 87,381 115,017 362,868 386,460 Operating expenses (1) 102,387 104,918 408,968 371,610 Management fees (2) 51,956 67,921 170,683 211,825 ------ ------ ------- ------- Total cost of services 241,724 287,856 942,519 969,895 ------ ------ ------- ------- Gross margin 57,528 68,028 207,868 224,399 ------ ------ ------- ------- Corporate and other expenses: General and administrative 15,289 14,646 64,189 58,495 Amortization of intangibles 9,871 9,340 39,194 34,303 Impairment of goodwill and intangible assets 31,031 2,222 41,257 7,877 Depreciation 3,665 3,045 13,371 11,010 Management agreement buyout - - - 13,046 Loss (gain) on sale of subsidiaries 2 120 (7,663) (1,864) -- --- ------ ------ Total corporate and other expenses 59,858 29,373 150,348 122,867 ------ ------ ------ ------- Income from operations (2,330) 38,655 57,520 101,532 Net interest and other (1,337) (486) (5,691) (878) ------ ------ ------ ------- Income before income taxes (3,667) 38,169 51,829 100,654 Income tax expense 7,043 18,895 36,993 46,422 -------- ------- ------- ------- Net (loss) income $(10,710) $19,274 $14,836 $54,232 ======== ======= ======= ======= Earnings per share: Basic $(0.27) $0.50 $0.38 $1.42 ====== ===== ===== ===== Diluted $(0.26) $0.47 $0.36 $1.35 ====== ===== ===== ===== Weighted average shares outstanding: Basic 39,720 38,807 39,543 38,119 ====== ====== ====== ====== Diluted 40,725 40,892 40,933 40,254 ====== ====== ====== ====== (1) Excludes amortization and depreciation shown separately in Corporate and other expenses. (2) Excludes management agreement buyout shown separately in Corporate and other expenses. CALCULATION OF GROSS MARGIN (Unaudited-in thousands, except per share data) Three Months Ended Year Ended December 31, December 31, ------------ ------------ 2008 2007 2008 2007 ---- ---- ---- ---- Revenue $299,252 $355,884 $1,150,387 $1,194,294 Cost of services: Commissions and fees 87,381 115,017 362,868 386,460 Operating expenses (1) 102,387 104,918 408,968 371,610 ------- ------- ------- ------- Gross margin before management fees 109,484 135,949 378,551 436,224 Management fees (2) 51,956 67,921 170,683 211,825 ------ ------ ------- ------- Gross margin $57,528 $68,028 $207,868 $224,399 ======= ======= ======== ======== Gross margin as a percentage of revenue 19.2% 19.1% 18.1% 18.8% Gross margin before management fees as a percentage of revenue 36.6% 38.2% 32.9% 36.5% Management fees, as a percentage of gross margin before management fees (2) 47.5% 50.0% 45.1% 48.6% RECONCILIATION OF NET INCOME TO CASH EARNINGS (Unaudited-in thousands, except per share data) Three Months Ended Year Ended December 31, December 31, ------------ ------------ 2008 2007 2008 2007 ---- ---- ---- ---- GAAP net (loss) income $(10,710) $19,274 $14,836 $54,232 Amortization of intangibles 9,871 9,340 39,194 34,303 Depreciation 3,665 3,045 13,371 11,010 Impairment of goodwill and intangible assets 31,031 2,222 41,257 7,877 Tax benefit of impairment of goodwill and intangible assets (5,474) (300) (8,137) (1,899) ------ ---- ------ ------ Cash earnings (3) $28,383 $33,581 $100,521 $105,523 Management agreement buyout, net of tax - - - 7,681 ---- ---- ---- ----- Cash earnings excluding management agreement buyout, net of tax (3) $28,383 $33,581 $100,521 $113,204 GAAP net (loss) income per share - diluted $(0.26) $0.47 $0.36 $1.35 Amortization of intangibles 0.24 0.23 0.96 0.85 Depreciation 0.09 0.07 0.33 0.27 Impairment of goodwill and intangible assets 0.76 0.05 1.01 0.20 Tax benefit of impairment of goodwill and intangible assets (0.13) (0.01) (0.20) (0.05) ----- ----- ----- ----- Cash earnings per share - diluted (4) $0.70 $0.82 $2.46 $2.62 Management agreement buyout, net of tax - - - 0.19 ---- ---- ---- ---- Cash earnings per share - diluted excluding management agreement buyout, net of tax (4) $0.70 $0.82 $2.46 $2.81 (1) Excludes amortization and depreciation shown separately in Corporate and other expenses. (2) Excludes management agreement buyout shown separately in Corporate and other expenses. (3) As of the fourth quarter of 2008, the Company modified its definition of cash earnings to reduce cash earnings for the tax benefit of impairment of goodwill and intangible assets. Prior periods have been modified on a comparable basis. Cash earnings is now defined as net income excluding amortization of intangibles, depreciation, and the after-tax impact of the impairment of goodwill and intangible assets. (4) The sum of the per-share components of cash earnings per share - diluted and cash earnings per share - diluted excluding management agreement buyout, net of tax, may not agree to cash earnings per share - diluted and cash earnings per share - diluted excluding management agreement buyout, net of tax, due to rounding. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited-in thousands) December 31, December 31, 2008 2007 ---- ---- ASSETS Current assets: Cash and cash equivalents $48,621 $114,182 Cash, cash equivalents and securities purchased under resale agreements in premium trust accounts 75,109 80,403 Commissions, fees and premiums receivable, net 140,758 151,195 Due from principals and/or certain entities they own 16,329 14,366 Notes receivable, net 6,496 5,658 Deferred tax assets 9,435 17,413 Other current assets 19,284 17,034 ------ ------ Total current assets 316,032 400,251 Property and equipment, net 51,683 31,823 Deferred tax assets 24,858 20,561 Intangibles, net 462,123 475,149 Goodwill, net 635,693 610,499 Notes receivable, net 23,683 12,588 Other non-current assets 29,213 9,209 ------ ----- Total assets $1,543,285 $1,560,080 ========== ========== LIABILITIES Current liabilities: Premiums payable to insurance carriers $73,159 $78,450 Borrowings 148,000 126,000 Income taxes payable - 2,480 Due to principals and/or certain entities they own 38,791 68,493 Accounts payable 28,513 33,404 Dividends payable - 8,171 Accrued liabilities 54,380 84,360 ------ ------ Total current liabilities 342,843 401,358 Deferred tax liabilities 119,399 116,115 Convertible senior notes 230,000 230,000 Other non-current liabilities 62,874 49,440 ------ ------ Total liabilities 755,116 796,913 ------- ------- STOCKHOLDERS' EQUITY Preferred stock at par value - - Common stock at par value 4,388 4,244 Additional paid-in capital 834,263 780,678 Retained earnings 109,024 119,197 Accumulated other comprehensive income (50) - Treasury stock (159,456) (140,952) -------- -------- Total stockholders' equity 788,169 763,167 ------- ------- Total liabilities and stockholders' equity $1,543,285 $1,560,080 ========== ========== CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited-in thousands) Three Months Ended Year Ended December 31, December 31, ------------ ------------ 2008 2007 2008 2007 ---- ---- ---- ---- Cash flow from operating activities Net (loss) income $(10,710) $19,274 $14,836 $54,232 Adjustments to reconcile to net cash provided by operating activities: Deferred taxes (3,448) (3,194) (3,425) (14,516) Stock-based compensation 2,591 3,415 12,623 12,900 Impairment of goodwill and intangible assets 31,031 2,222 41,257 7,877 Amortization of intangibles 9,871 9,340 39,194 34,303 Depreciation 3,665 3,045 13,371 11,010 Loss (gain) on sale of subsidiaries 2 120 (7,663) (1,864) Other, net (26) (2) (26) 3,663 (Increase) decrease in operating assets: Cash, cash equivalents and securities purchased under resale agreements in premium trust accounts 6,833 (420) 11,570 (6,359) Commissions, fees and premiums receivable, net (30,490) (33,178) 13,962 (13,451) Due from principals and/or certain entities they own 15,857 4,298 (1,889) (4,219) Notes receivable, net - current (37) (497) (926) (1,023) Other current assets 5,351 1,260 2,235 (746) Notes receivable, net - non- current (3,495) 458 (11,171) (3,467) Other non-current assets 1,916 161 (11,637) 1,778 Increase (decrease) in operating liabilities: Premiums payable to insurance carriers (8,560) 1,780 (11,477) 4,268 Income taxes payable (3,355) 4,459 (2,480) (7,007) Due to principals and/or certain entities they own 72 22,634 (33,142) 2,978 Accounts payable 7,116 7,609 (5,309) (7,053) Accrued liabilities 4,563 13,333 (17,718) 22,982 Other non-current liabilities 3,367 7,716 14,266 12,120 ----- ----- ------ ------ Total adjustments 42,824 44,559 41,615 54,174 ------ ------ ------ ------ Net cash provided by operating activities 32,114 63,833 56,451 108,406 Cash flow from investing activities: Proceeds from disposal of subsidiaries 92 - 22,615 1,920 Purchases of property and equipment, net (2,919) (4,993) (33,241) (13,308) Payments for acquired firms, net of cash, and contingent consideration (12,587) (71,027) (76,369) (206,366) ------- ------- ------- -------- Net cash used in investing activities (15,414) (76,020) (86,995) (217,754) Cash flow from financing activities: Repayments of borrowings (45,000) (24,000) (177,000) (161,000) Proceeds from borrowings 20,000 70,000 199,000 204,000 Proceeds from convertible senior notes - - - 230,000 Convertible senior notes issuance costs - - - (7,578) Proceeds from warrants sold - - - 34,040 Proceeds of call options - - - (55,890) Proceeds from stock-based awards, including tax benefit (1,999) 1,250 1,482 19,277 Shares cancelled to pay withholding taxes (135) (2,636) (815) (3,425) Payments for treasury stock repurchase - - (24,612) (106,605) Dividends paid (8,389) (6,919) (33,072) (27,495) ------ ------ ------- ------- Net cash (used in) provided by financing activities (35,523) 37,695 (35,017) 125,324 ------- ------ ------- ------- Net (decrease) increase in cash and cash equivalents (18,823) 25,508 (65,561) 15,976 Cash and cash equivalents, beginning of period 67,444 88,674 114,182 98,206 ------ ------ ------- ------ Cash and cash equivalents, end of the period $48,621 $114,182 $48,621 $114,182 ======= ======== ======= ======== Supplemental disclosures of cash flow information Cash paid for income taxes $7,502 $12,937 $37,470 $48,571 Cash paid for interest $2,188 $2,061 $9,756 $6,657
SOURCE National Financial Partners Corp.