8-KEarnings & ResultsRegulation FDExhibits & Filings

Ares Management Corp 8-K Report, Financial Results (Feb 15, 2018)

Filed February 15, 2018For Securities:ARESARES-PB

Summary

Ares Management Corp. (ARES) filed an 8-K on February 15, 2018, primarily announcing its financial results for the fourth quarter and full year ended December 31, 2017, alongside a significant strategic tax election. Investors should note the company's decision to elect to be taxed as a corporation, effective March 1, 2018, which marks a material shift in its corporate structure and tax implications. This change will affect how the company is taxed moving forward, with the first month under corporate taxation being March 2018. The filing also provides details on a distribution to common unitholders for the five months ending February 28, 2018, amounting to $0.40 per common unit, which includes a portion for Q4 2017 and the initial two months of 2018. Following the corporate election, a dividend of $0.0933 per common share was declared for March 2018. These announcements were accompanied by a press release and an earnings presentation, offering further insights into the company's performance and the rationale behind its strategic decisions.

Key Highlights

  • 1Ares Management Corp. announced its Q4 and full-year 2017 financial results via press release and earnings presentation.
  • 2Effective March 1, 2018, Ares Management Corp. elected to be taxed as a corporation, a significant structural change.
  • 3A distribution of $0.40 per common unit was declared for the five months ending February 28, 2018.
  • 4This distribution includes $0.25 for Q4 2017 and $0.15 for the first two months of 2018.
  • 5A dividend of $0.0933 per common share was declared for March 2018, reflecting the new corporate tax status.
  • 6The information is furnished and not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934.

Frequently Asked Questions

The most significant event is Ares Management Corp.'s election to be taxed as a corporation, effective March 1, 2018. This changes its tax structure from its previous form to that of a C-corporation.

A total distribution of $0.40 per common unit was declared for the five months ending February 28, 2018. This amount is inclusive of the fourth quarter of 2017 ($0.25 per common unit) and the first two months of 2018 ($0.15 per common unit).

Following the corporate tax election, the company declared a dividend of $0.0933 per common share for March 2018, the first month of its new corporate tax status. This indicates a shift to a dividend structure for shareholders, with different tax implications compared to previous unit distributions.

More detailed financial results for Q4 and full-year 2017, as well as information regarding the corporate status election, are available in the press release (Exhibit 99.1) and the earnings presentation (Exhibit 99.2 and 99.3) attached to this 8-K filing.