Och-Ziff posts 4Q loss on reorganization costs

Och-Ziff Capital Management Group LLC said Thursday it narrowed its loss in the fourth quarter as it incurred charges tied to its initial public offering in November 2007.

Och-Ziff lost $112.2 million, or $1.49 per share, compared with a loss of $774.6 million a year earlier.

The asset manager recorded a charge of $422.2 million during the fourth quarter tied to its reorganization and initial public offering in November 2007. The charges stem from equity interests awarded to the company's owners before the offering. The interests vest over five years, and Och-Ziff expects to report a net loss each quarter until that period ends.

The company also took a non-cash charge of $34.3 million tied to restricted stock awards issued at the time of the IPO.

Distributable earnings, which Och-Ziff considers a meaningful view of its operating performance, totaled $33 million, or 8 cents per share, during the fourth quarter.

Analysts polled by Thomson Reuters, on average, forecast earnings of 2 cents per share for the quarter. Analysts do not always include special charges in their estimates.

Total revenue at Och-Ziff fell to $146.3 million during the fourth quarter, from $770.2 million during the year-ago period.

Total assets under management fell to $27 billion as of Dec. 31, 19 percent less than the $33.4 billion under management a year earlier.

For full year 2008, Och-Ziff lost $510.6 million, or $11.15 per share, compared with a loss of $915 million, or $6.86 per share, in 2007.

Total revenue fell 59.7 percent to $604.4 million from $1.5 billion a year ago.

Shares of Och-Ziff closed at $5.42 on Wednesday.