NEW YORK, Dec. 20, 2019 (GLOBE NEWSWIRE) — Pzena Investment Management, Inc. (NYSE: PZN) provides preliminary information related to the anticipated financial impact of one-time events.
During December 2019 and the first quarter of 2020, we intend to issue approximately 5.4 million unit-based awards to a number of the firm’s key contributors pursuant to the terms of our equity incentive plans. As a result of these issuances, in addition to costs related to certain employee departures and other one-time items, the firm will recognize approximately $25 million in non-recurring Compensation and Benefits expense in the fourth quarter of 2019 based on the current share price. Most of this cost is non-cash and the exact amount of such expense will be a function of the closing price on the date of issuance.We believe the key contributors to our success should have a significant ownership stake in our business. As of December 31, 2019, we will have 54 employee-owners, including our three founders (of a total staff of 119), positioned within all of our functional areas. We believe this ownership model results in a shared sense of purpose with our shareholders, our clients and their advisers and we intend to continue fostering a culture of ownership through our equity incentive plans.About Pzena Investment ManagementPzena Investment Management, LLC, the firm’s operating company, is a value-oriented investment management firm. Founded in 1995, Pzena Investment Management has built a diverse, global client base. More firm and stock information is posted at www.pzena.com.Forward-Looking StatementsThis press release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements provide the Company’s current views, expectations, or forecasts of future events and performance, and include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or phrases such as “anticipate,” “believe,” “continue,” “ongoing,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking.Among the factors that could cause actual results to differ from those expressed or implied by a forward-looking statement are those described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 8, 2019 and in the Company’s Quarterly Reports on Form 10-Q as filed with the SEC. In light of these risks, uncertainties, assumptions, and factors, actual results could differ materially from those expressed or implied in the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this release.The Company is not under any obligation and does not intend to make publicly available any update or other revisions to any forward-looking statements to reflect circumstances existing after the date of this release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.Gary Bachman, 212-583-0225 or bachman@pzena.com.
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