Fortress Investment Q4 Profit Down - Quick Facts

(RTTNews) - Fortress Investment Group LLC (FIG) reported that its fourth-quarter of 2014 net income attributable to class A shareholders declined to $61.37 million from $145.81 million in the prior year. Net income was $0.24 per Class A share, compared to $0.49 per Class A share, for the fourth quarter of 2013.

The year-over-year decrease in Fortress's fourth quarter 2014 GAAP net income was primarily driven by a $286 million increase in GAAP expenses, partially offset by a $105 million increase in GAAP revenues.

The increase in GAAP expenses was primarily attributable to $219 million of expenses associated with the Non-Investment Manager as a result of the consolidation of New Senior and New Media, as well as a $67 million increase in Investment Manager expenses primarily related to compensation and benefits.

Total Revenues grew to $670.58 million from $565.54 million in the prior year.

The increase in GAAP revenues was primarily attributable to $229 million of revenues from the Non-Investment Manager as a result of the consolidation of New Senior and New Media, partially offset by a $124 million decrease in Investment Manager revenues primarily related to lower incentive income.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share and revenues of $238.42 million. Analysts' estimates typically exclude special items.

Fortress's Board of Directors declared a fourth quarter 2014 cash dividend of $0.38 per dividend paying share, comprised of a base quarterly cash dividend of $0.08 per dividend paying share and a special cash dividend of $0.30 per dividend paying share. The dividend is payable on March 17, 2015 to Class A shareholders of record as of the close of business on March 12, 2015.