Medley Management Inc (NYSE:MDLY) swung to a loss in the second quarter while revenue declined to $8.6 million from $12.9 million.
The New York-based company reported financial figures on Friday, at which time it said total revenues were $8.6 million for the three months ended June 30, 2020 compared to $12.9 million for the same period in 2019.
Revenues consisted of $8.1 million of management fees and other revenue and $0.4 million of investment income. The decrease in total revenues was due primarily to lower base management fees as a result of a decrease in fee earning assets under management, which was mainly driven by a reduction in leverage and decline in portfolio valuations.
Total expenses from operations were $10.0 million for the three months ended June 30, 2020 compared to $11.1 million for the same period in 2019. The decrease was due primarily to a decrease in professional fees, primarily driven by lower costs associated with its terminated merger with Sierra Income Corporation. Included in total expenses are costs associated with Baxter’s terminated merger of $0.6 million and $1.1 million for the three months ended June 30, 2020 and 2019, respectively.
Net loss was $8.5 million for the quarter, compared to a net loss of $1.1 million for the same period in 2019. Medley Management Inc.'s net loss per share was $0.12 for the three months ended June 30, 2020 compared to a net loss per share of $0.03 for the same period in 2019.
Shares tumbled six cents, or 8.7%, to 64.79 cents.
