Colony Capital beats by $0.03, reports revs in-line
- Reports Q3 (Sep) funds from operations of $0.20 per share, $0.03 better than the S&P Capital IQ Consensus of $0.17; revenues fell 14.6% year/year to $674.77 mln vs the $673.2 mln two analyst estimate.
- Following a strategic review process, the Company announced that it is implementing a corporate restructuring and reorganization plan to match resources that further align its increasing focus on the investment management business under an ‘asset-light' business model while exiting certain non-core businesses and assets. The plan is expected to deliver $50 to $55 million ($45 to $50 million on a cash basis) of annual compensation and administrative cost savings on a run-rate basis by year-end 2019 and will result in a reduction of the Company's global workforce by approximately 15%. The majority of the benefit of the restructuring efforts will be seen in 2019 and early 2020, although some benefits may be realized in the fourth quarter of 2018.
- The Company's Board of Directors declared a fourth quarter 2018 cash dividend of $0.11 per share of Class A and Class B common stock.