##### Table of Contents



UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-Q
 
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED: June 30, 2007
 - OR -
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
 Commission File Number: 000-51003
 
 CALAMOS ASSET MANAGEMENT, INC.
 (Exact Name of Registrant as Specified in its Charter)
 
 Delaware
    
    32-0122554(State or Other Jurisdiction of
    
    (I.R.S. EmployerIncorporation or Organization)
    
    Identification No.)2020 Calamos Court, Naperville, Illinois
    
    60563(Address of Principal Executive Offices)
    
    (Zip Code)
 (630) 245-7200
 
 þ o
  o þ o
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONItem 1. Financial StatementsItem 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 3. Quantitative and Qualitative Disclosures About Market RiskItem 4. Controls and ProceduresPART II  OTHER INFORMATIONItem 1. Legal ProceedingsItem 2. Unregistered Sales of Equity Securities and Use of ProceedsItem 4. Submission of Matters to a Vote of Security HoldersItem 6. ExhibitsSIGNATURESManagement Services and Resources AgreementAmendment No.1 to Employment Agreement with Nick P. CalamosAmendment No.1 to Employment Agreement with Patrick H. DudasikAmendment No.1 to Employment Agreement with James S. Hamman, Jr.CertificationCertificationSection 906 CertificationSection 906 Certification    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 CALAMOS ASSET MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except share data)
 June 30,
    
    
    December 31,2007
    
    
    2006(unaudited)ASSETS:Current assetsCash and cash equivalents
    
    $
    147,604
    
    
    $
    328,841Receivables:Affiliates and affiliated funds
    
    
    24,912
    
    
    
    26,569Customers
    
    
    9,132
    
    
    
    10,218Investment securities
    
    
    312,654
    
    
    
    143,112Partnership securities
    
    
    138,218
    
    
    
    86,409Prepaid expenses
    
    
    2,658
    
    
    
    2,383Deferred tax assets, net
    
    
    6,212
    
    
    
    7,375Other assets
    
    
    4,164
    
    
    
    67Total current assets
    
    
    645,554
    
    
    
    604,974Non-current assetsDeferred tax assets, net
    
    
    88,477
    
    
    
    91,865Deferred sales commissions
    
    
    40,207
    
    
    
    49,891Property and equipment, net of accumulated depreciation ($17,113
at 6/30/07 and $13,233 at 12/31/06)
    
    
    44,731
    
    
    
    43,615Other non-current assets
    
    
    1,418
    
    
    
    1,443Total non-current assets
    
    
    174,833
    
    
    
    186,814Total assets
    
    
    820,387
    
    
    
    791,788LIABILITIES AND STOCKHOLDERS EQUITY:Current liabilitiesAccounts payable:Brokers
    
    
    20,881
    
    
    
    20,969Affiliates and affiliated funds
    
    
    443
    
    
    
    264Accrued compensation and benefits
    
    
    12,654
    
    
    
    22,722Accrued expenses and other current liabilities
    
    
    33,923
    
    
    
    6,890Total current liabilities
    
    
    67,901
    
    
    
    50,845Long-term liabilitiesLong-term debt
    
    
    150,000
    
    
    
    150,000Other long-term liabilities
    
    
    8,332
    
    
    
    8,003Total long-term liabilities
    
    
    158,332
    
    
    
    158,003Total liabilities
    
    
    226,233
    
    
    
    208,848Minority interest in partnership investments
    
    
    50,549
    
    
    
    48,850Minority interest in Calamos Holdings LLC
    
    
    341,070
    
    
    
    319,513Stockholders equity:Class A Common Stock, $0.01 par value. Authorized 600,000,000 shares;
23,324,082 shares issued and 22,536,282 shares outstanding at
6/30/07; 23,161,898 shares issued and outstanding at 12/31/06
    
    
    233
    
    
    
    232Class B Common Stock, $0.01 par value. Authorized 1,000 shares; issued
and outstanding 100 shares
    
    
    0
    
    
    
    0Additional paid-in capital
    
    
    156,292
    
    
    
    157,724Retained earnings
    
    
    58,457
    
    
    
    52,261Accumulated other comprehensive income
    
    
    6,393
    
    
    
    4,360Treasury stock, at cost; 787,800 shares
    
    
    (18,840
    )
    
    
    Total stockholders equity
    
    
    202,535
    
    
    
    214,577Total liabilities, minority interest and stockholders equity
    
    $
    820,387
    
    
    $
    791,788
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CALAMOS ASSET MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Six Months Ended June 30, 2007 and 2006
(in thousands, except share data)
(unaudited)
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Investment management fees
    
    $
    78,313
    
    
    $
    84,328
    
    
    $
    156,788
    
    
    $
    165,807Distribution and underwriting fees
    
    
    35,560
    
    
    
    38,997
    
    
    
    71,741
    
    
    
    77,137Other
    
    
    894
    
    
    
    1,028
    
    
    
    1,938
    
    
    
    2,027Total revenues
    
    
    114,767
    
    
    
    124,353
    
    
    
    230,467
    
    
    
    244,971Expenses:Employee compensation and benefits
    
    
    22,512
    
    
    
    18,287
    
    
    
    43,278
    
    
    
    37,293Distribution and underwriting expense
    
    
    25,196
    
    
    
    25,864
    
    
    
    50,223
    
    
    
    50,829Amortization of deferred sales commissions
    
    
    7,278
    
    
    
    8,123
    
    
    
    15,156
    
    
    
    15,863Marketing and sales promotion
    
    
    29,731
    
    
    
    4,487
    
    
    
    33,213
    
    
    
    7,710General and administrative
    
    
    9,118
    
    
    
    7,645
    
    
    
    17,510
    
    
    
    14,704Total operating expenses
    
    
    93,835
    
    
    
    64,406
    
    
    
    159,380
    
    
    
    126,399Operating income
    
    
    20,932
    
    
    
    59,947
    
    
    
    71,087
    
    
    
    118,572Other income (expense):Net interest income (expense)
    
    
    1,495
    
    
    
    820
    
    
    
    3,489
    
    
    
    1,182Investment and other income
    
    
    7,378
    
    
    
    (7,927
    )
    
    
    7,770
    
    
    
    4,004Minority interest in partnership investments
    
    
    (3,020
    )
    
    
    5,171
    
    
    
    (2,269
    )
    
    
    (1,091
    )Total other income (expense), net
    
    
    5,853
    
    
    
    (1,936
    )
    
    
    8,990
    
    
    
    4,095Income before minority interest in Calamos
Holdings LLC and income taxes
    
    
    26,785
    
    
    
    58,011
    
    
    
    80,077
    
    
    
    122,667Minority interest in Calamos Holdings LLC
    
    
    20,367
    
    
    
    44,486
    
    
    
    61,075
    
    
    
    94,109Income before income taxes
    
    
    6,418
    
    
    
    13,525
    
    
    
    19,002
    
    
    
    28,558Income taxes
    
    
    2,613
    
    
    
    5,424
    
    
    
    7,663
    
    
    
    11,452Net income
    
    $
    3,805
    
    
    $
    8,101
    
    
    $
    11,339
    
    
    $
    17,106Earnings per shareBasic
    
    $
    0.17
    
    
    $
    0.35
    
    
    $
    0.49
    
    
    $
    0.74Diluted
    
    $
    0.16
    
    
    $
    0.34
    
    
    $
    0.48
    
    
    $
    0.73Weighted average shares outstandingBasic
    
    
    22,846,901
    
    
    
    23,161,998
    
    
    
    23,084,223
    
    
    
    23,161,998Diluted
    
    
    100,289,411
    
    
    
    100,845,107
    
    
    
    100,525,789
    
    
    
    100,823,214Cash dividends per share
    
    $
    0.11
    
    
    $
    0.09
    
    
    $
    0.22
    
    
    $
    0.18
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CALAMOS ASSET MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
Six Months Ended June 30, 2007
(in thousands)
(unaudited)
 AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    TreasuryStock
    
    
    Capital
    
    
    Earnings
    
    
    Income
    
    
    Stock
    
    
    TotalBalance at December 31, 2006
    
    $
    232
    
    
    $
    157,724
    
    
    $
    52,261
    
    
    $
    4,360
    
    
    $
    
    
    
    $
    214,577Net income
    
    
    
    
    
    
    
    
    
    
    11,339
    
    
    
    
    
    
    
    
    
    
    
    11,339Changes in unrealized gains on
available-for-sale securities,
net of
minority interest and income
taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,233
    
    
    
    
    
    
    
    2,233Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,572Issuance of common stock
(162,184 Class A common shares)
    
    
    1
    
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Purchase of common stock
(787,800 Class A common shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,840
    )
    
    
    (18,840
    )Cumulative impact of changes in
ownership of Calamos Holdings
LLC
    
    
    
    
    
    
    (2,231
    )
    
    
    7
    
    
    
    (200
    )
    
    
    
    
    
    
    (2,424
    )Compensation expense recognized
under stock incentive plans, net
of minority interest
    
    
    
    
    
    
    800
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    800Dividend equivalent accrued
under stock incentive plans, net
of minority interest
    
    
    
    
    
    
    
    
    
    
    (72
    )
    
    
    
    
    
    
    
    
    
    
    (72
    )Dividends declared
    
    
    
    
    
    
    
    
    
    
    (5,078
    )
    
    
    
    
    
    
    
    
    
    
    (5,078
    )Balance at June 30, 2007
    
    $
    233
    
    
    $
    156,292
    
    
    $
    58,457
    
    
    $
    6,393
    
    
    $
    (18,840
    )
    
    $
    202,535
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CALAMOS ASSET MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 2007 and 2006
(in thousands)
(unaudited)
 2007
    
    
    2006Cash and cash equivalents at beginning of year
    
    $
    328,841
    
    
    $
    210,469Cash flows from operating activities:Net income
    
    
    11,339
    
    
    
    17,106Adjustments to reconcile net income to net cash provided by
operating activities:Minority interest in partnership investments
    
    
    2,269
    
    
    
    1,091Minority interest in Calamos Holdings LLC
    
    
    61,075
    
    
    
    94,109Amortization of deferred sales commissions
    
    
    15,156
    
    
    
    15,863Other depreciation and amortization
    
    
    4,024
    
    
    
    3,424Unrealized depreciation (appreciation) on CFS securities
and partnership securities
    
    
    (5,305
    )
    
    
    (1,965
    )Deferred taxes
    
    
    3,290
    
    
    
    4,556Stock-based compensation
    
    
    3,478
    
    
    
    3,107Employee taxes paid on vesting under stock incentive plans
    
    
    (1,853
    )
    
    
    (2,255
    )(Increase) decrease in assets:Accounts receivable:Affiliates and affiliated mutual funds
    
    
    1,600
    
    
    
    (898
    )Customers
    
    
    1,086
    
    
    
    (911
    )Deferred sales commissions
    
    
    (5,472
    )
    
    
    (17,278
    )Other assets
    
    
    (4,875
    )
    
    
    (765
    )Increase (decrease) in liabilities:Accounts payable
    
    
    91
    
    
    
    2,241Accrued compensation and benefits and deferred compensation
    
    
    (10,068
    )
    
    
    (6,566
    )Other liabilities and accrued expenses
    
    
    27,650
    
    
    
    (4,254
    )Net cash provided by operating activities
    
    
    103,485
    
    
    
    106,605Cash flows used in investing activities:Net additions to property and equipment
    
    
    (4,997
    )
    
    
    (5,812
    )Net purchases of investment securities
    
    
    (153,102
    )
    
    
    (728
    )Net changes in partnership securities
    
    
    (47,375
    )
    
    
    (838
    )Net cash used in investing activities
    
    
    (205,474
    )
    
    
    (7,378
    )Cash flows used in financing activities:Deferred tax benefit on vesting under stock incentive plans
    
    
    (209
    )
    
    
    (289
    )Purchase of common stock
    
    
    (18,840
    )
    
    
    Cash distributions paid to minority shareholders
    
    
    (55,121
    )
    
    
    (50,577
    )Cash dividends paid to common shareholders
    
    
    (5,078
    )
    
    
    (4,169
    )Net cash used in financing activities
    
    
    (79,248
    )
    
    
    (55,035
    )Net increase (decrease) in cash
    
    
    (181,237
    )
    
    
    44,192Cash and cash equivalents at end of period
    
    $
    147,604
    
    
    $
    254,661
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CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
 (1) Organization and Description of Business
  (2) Basis of Presentation
      -6-




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CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 (3) Partnership Securities
  June 30,
    
    
    December 31,(in thousands)
    
    2007
    
    
    2006Calamos Equity Opportunities Fund LP:Securities owned
    
    $
    112,737
    
    
    $
    110,956Securities sold but not yet purchased
    
    
    (25,789
    )
    
    
    (24,104
    )Accrued expenses and other current liabilities
    
    
    (566
    )
    
    
    (4,190
    )Other current assets
    
    
    22
    
    
    
    71Calamos Equity Opportunities Fund LP securities, net
    
    
    86,404
    
    
    
    82,733Calamos Market Neutral Opportunities Fund LP:Securities owned
    
    
    73,519
    
    
    
    Securities sold but not yet purchased
    
    
    (20,672
    )
    
    
    Accrued expenses and other current liabilities
    
    
    (1,364
    )
    
    
    Other current assets
    
    
    331
    
    
    
    Calamos Market Neutral Opportunities Fund LP securities, net
    
    
    51,814
    
    
    
    Investment in Calamos Multi-Strategy, L.P.
    
    
    
    
    
    
    3,676Partnership securities
    
    $
    138,218
    
    
    $
    86,409
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CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 (4) Earnings Per Share
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,(in thousands, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Earnings per share  basicEarnings available to common shareholders
    
    $
    3,805
    
    
    $
    8,101
    
    
    $
    11,339
    
    
    $
    17,106Weighted average shares outstanding
    
    
    22,847
    
    
    
    23,162
    
    
    
    23,084
    
    
    
    23,162Earnings per share  basic
    
    $
    0.17
    
    
    $
    0.35
    
    
    $
    0.49
    
    
    $
    0.74Earnings per share  dilutedIncome before minority interest in CalamosHoldings LLC and income taxes
    
    $
    26,785
    
    
    $
    58,011
    
    
    $
    80,077
    
    
    $
    122,667Less: Impact of income taxes
    
    
    10,906
    
    
    
    23,262
    
    
    
    32,295
    
    
    
    49,189Earnings available to common shareholders
    
    $
    15,879
    
    
    $
    34,749
    
    
    $
    47,782
    
    
    $
    73,478Weighted average shares outstanding
    
    
    22,847
    
    
    
    23,162
    
    
    
    23,084
    
    
    
    23,162Conversion of membership units for common
stock
    
    
    77,000
    
    
    
    77,000
    
    
    
    77,000
    
    
    
    77,000Dilutive impact of restricted stock units
    
    
    387
    
    
    
    539
    
    
    
    376
    
    
    
    514Dilutive impact of stock options
    
    
    55
    
    
    
    144
    
    
    
    66
    
    
    
    147Weighted average diluted shares outstanding
    
    
    100,289
    
    
    
    100,845
    
    
    
    100,526
    
    
    
    100,823Earnings per share  diluted
    
    $
    0.16
    
    
    $
    0.34
    
    
    $
    0.48
    
    
    $
    0.73
  Share-Based Payment
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CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 (5) Incentive Compensation Plan
     (6) Income Taxes
 Accounting for Uncertainty in Income Taxes  an interpretation of FASB Statement No. 109.
   (7) Common Stock Repurchase
  -9-




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CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 (8) Minority Interest in Calamos Holdings LLC
   (in thousands)Minority interest at December 31, 2006
    
    $
    319,513Issuance of common stock under stock incentive plans
    
    
    (520
    )Purchase of common stock
    
    
    2,723Income allocated to minority interests
    
    
    61,075Compensation expense recognized under stock incentive plans
    
    
    2,677Shares withheld for taxes paid on vesting under stock incentive plans
    
    
    (1,422
    )Changes in unrealized gains on available-for-sale securities
    
    
    12,379Dividend equivalent accrued under stock incentive plans
    
    
    (234
    )Dividends declared
    
    
    (55,121
    )Minority interest at June 30, 2007
    
    $
    341,070
  June 30,
    
    
    December 31,(in thousands)
    
    2007
    
    
    2006Cash and equivalents
    
    $
    23,654
    
    
    $
    18,796Current deferred tax assets, net
    
    
    6,212
    
    
    
    7,375Other current assets
    
    
    3,146
    
    
    
    432Total current assets
    
    
    33,012
    
    
    
    26,603Non-current deferred tax assets, net
    
    
    88,478
    
    
    
    91,865Investment in subsidiaries
    
    
    418,399
    
    
    
    435,208Total non-current assets
    
    
    506,877
    
    
    
    527,073Total assets
    
    
    539,889
    
    
    
    553,676Total current liabilities
    
    
    52
    
    
    
    Total stockholders equity
    
    
    539,837
    
    
    
    553,676Total liabilities, minority interest and
stockholders equity
    
    $
    539,889
    
    
    $
    553,676
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CALAMOS ASSET MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 (9) Recently Issued Accounting Pronouncements
 Fair Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities  Including an amendment of FASB Statement No. 115
 (10) Subsequent Event
  -11-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    June 30,(in millions)
    
    2007
    
    
    2006Mutual FundsOpen-end funds
    
    $
    25,996
    
    
    $
    28,087Closed-end funds
    
    
    7,290
    
    
    
    6,130Total mutual funds
    
    
    33,286
    
    
    
    34,217Separate AccountsInstitutional accounts
    
    
    4,710
    
    
    
    5,460Managed accounts
    
    
    5,677
    
    
    
    6,038Alternative investments
    
    
    138
    
    
    
    97Total separate accounts
    
    
    10,525
    
    
    
    11,595Total assets under management
    
    $
    43,811
    
    
    $
    45,812
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Operating Results
 Second Quarter and Six Months Ended June 30, 2007 Compared to Second Quarter and Six Months Ended
June 30, 2006
 Assets Under Management
  Three Months Ended June 30,
    
    
    Six Months Ended June 30,Change
    
    
    
    
    
    
    
    
    
    
    Change($ in millions)
    
    2007
    
    
    2006
    
    
    Amount
    
    
    Percent
    
    
    2007
    
    
    2006
    
    
    Amount
    
    
    PercentMutual FundsBeginning assets under management
    
    $
    32,086
    
    
    $
    35,392
    
    
    $
    (3,306
    )
    
    
    9
    %
    
    $
    33,704
    
    
    $
    32,244
    
    
    $
    1,460
    
    
    
    5
    %Net purchases (redemptions)
    
    
    (766
    )
    
    
    654
    
    
    
    (1,420
    )
    
    
    *
    
    
    
    (2,718
    )
    
    
    2,047
    
    
    
    (4,765
    )
    
    
    *Market appreciation (depreciation)
    
    
    1,966
    
    
    
    (1,829
    )
    
    
    3,795
    
    
    
    *
    
    
    
    2,300
    
    
    
    (74
    )
    
    
    2,374
    
    
    
    *Ending assets under management
    
    
    33,286
    
    
    
    34,217
    
    
    
    (931
    )
    
    
    3
    
    
    
    33,286
    
    
    
    34,217
    
    
    
    (931
    )
    
    
    3Average assets under management
    
    
    32,979
    
    
    
    34,948
    
    
    
    (1,969
    )
    
    
    6
    
    
    
    32,995
    
    
    
    34,603
    
    
    
    (1,608
    )
    
    
    5Separate AccountsBeginning assets under management
    
    
    10,464
    
    
    
    12,209
    
    
    
    (1,745
    )
    
    
    14
    
    
    
    11,021
    
    
    
    11,561
    
    
    
    (540
    )
    
    
    5Net purchases (redemptions)
    
    
    (540
    )
    
    
    (124
    )
    
    
    (416
    )
    
    
    *
    
    
    
    (1,219
    )
    
    
    (71
    )
    
    
    (1,148
    )
    
    
    *Market appreciation (depreciation)
    
    
    601
    
    
    
    (490
    )
    
    
    1,091
    
    
    
    *
    
    
    
    723
    
    
    
    105
    
    
    
    618
    
    
    
    *Ending assets under management
    
    
    10,525
    
    
    
    11,595
    
    
    
    (1,070
    )
    
    
    9
    
    
    
    10,525
    
    
    
    11,595
    
    
    
    (1,070
    )
    
    
    9Average assets under management
    
    
    10,565
    
    
    
    11,985
    
    
    
    (1,420
    )
    
    
    12
    
    
    
    10,696
    
    
    
    11,968
    
    
    
    (1,272
    )
    
    
    11Total Assets Under ManagementBeginning assets under management
    
    
    42,550
    
    
    
    47,601
    
    
    
    (5,051
    )
    
    
    11
    
    
    
    44,725
    
    
    
    43,805
    
    
    
    920
    
    
    
    2Net purchases (redemptions)
    
    
    (1,306
    )
    
    
    530
    
    
    
    (1,836
    )
    
    
    *
    
    
    
    (3,937
    )
    
    
    1,976
    
    
    
    (5,913
    )
    
    
    *Market appreciation (depreciation)
    
    
    2,567
    
    
    
    (2,319
    )
    
    
    4,886
    
    
    
    *
    
    
    
    3,023
    
    
    
    31
    
    
    
    2,992
    
    
    
    *Ending assets under management
    
    
    43,811
    
    
    
    45,812
    
    
    
    (2,001
    )
    
    
    4
    
    
    
    43,811
    
    
    
    45,812
    
    
    
    (2,001
    )
    
    
    4Average assets under management
    
    $
    43,544
    
    
    $
    46,933
    
    
    $
    (3,389
    )
    
    
    7
    %
    
    $
    43,692
    
    
    $
    46,571
    
    
    $
    (2,879
    )
    
    
    6
    %
 
 *
    
    Not meaningful.   Results of Operations
 Overview
  -13-




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##### Table of Contents



Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,($ in thousands)
    
    2007
    
    2006
    
    2007
    
    2006Operating expenses
    
    $
    93,835
    
    
    $
    64,406
    
    
    $
    159,380
    
    
    $
    126,399Termination of closed-end fund compensation agreements
    
    
    19,500
    
    
    
    
    
    
    
    19,500
    
    
    
    Closed-end fund structuring fees
    
    
    6,904
    
    
    
    
    
    
    
    6,904
    
    
    
    Operating expenses, as adjusted
    
    $
    67,431
    
    
    $
    64,406
    
    
    $
    132,976
    
    
    $
    126,399Operating income
    
    $
    20,932
    
    
    $
    59,947
    
    
    $
    71,087
    
    
    $
    118,572Termination of closed-end fund compensation agreements
    
    
    19,500
    
    
    
    
    
    
    
    19,500
    
    
    
    Closed-end fund structuring fees
    
    
    6,904
    
    
    
    
    
    
    
    6,904
    
    
    
    Operating income, as adjusted
    
    $
    47,336
    
    
    $
    59,947
    
    
    $
    97,491
    
    
    $
    118,572Net income
    
    $
    3,805
    
    
    $
    8,101
    
    
    $
    11,339
    
    
    $
    17,106Termination of closed-end fund compensation agreements
    
    
    2,634
    
    
    
    
    
    
    
    2,634
    
    
    
    Closed-end fund structuring fees
    
    
    933
    
    
    
    
    
    
    
    933
    
    
    
    Net income, as adjusted
    
    $
    7,372
    
    
    $
    8,101
    
    
    $
    14,906
    
    
    $
    17,106
 Operating Income
   Revenues
  Three Months Ended June 30,
    
    
    Six Months Ended June 30,Change
    
    
    
    
    
    
    
    
    
    
    Change($ in thousands)
    
    2007
    
    
    2006
    
    
    Amount
    
    
    Percent
    
    
    2007
    
    
    2006
    
    
    Amount
    
    
    PercentInvestment management fees
    
    $
    78,313
    
    
    $
    84,328
    
    
    $
    (6,015
    )
    
    
    7
    %
    
    $
    156,788
    
    
    $
    165,807
    
    
    $
    (9,019
    )
    
    
    5
    %Distribution and
underwriting fees
    
    
    35,560
    
    
    
    38,997
    
    
    
    (3,437
    )
    
    
    9
    
    
    
    71,741
    
    
    
    77,137
    
    
    
    (5,396
    )
    
    
    7Other
    
    
    894
    
    
    
    1,028
    
    
    
    (134
    )
    
    
    13
    
    
    
    1,938
    
    
    
    2,027
    
    
    
    (89
    )
    
    
    4Total revenues
    
    $
    114,767
    
    
    $
    124,353
    
    
    $
    (9,586
    )
    
    
    8
    %
    
    $
    230,467
    
    
    $
    244,971
    
    
    $
    (14,504
    )
    
    
    6
    %
 -14-




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##### Table of Contents



Operating Expenses
   Three Months Ended June 30,
    
    
    Six Months Ended June 30,Change
    
    
    
    
    
    
    
    
    
    
    Change($ in thousands)
    
    2007
    
    
    2006
    
    
    Amount
    
    
    Percent
    
    
    2007
    
    
    2006
    
    
    Amount
    
    
    PercentEmployee compensation and benefits
    
    $
    22,512
    
    
    $
    18,287
    
    
    $
    4,225
    
    
    
    23
    %
    
    $
    43,278
    
    
    $
    37,293
    
    
    $
    5,985
    
    
    
    16
    %Distribution and underwriting
expense
    
    
    25,196
    
    
    
    25,864
    
    
    
    (668
    )
    
    
    3
    
    
    
    50,223
    
    
    
    50,829
    
    
    
    (606
    )
    
    
    1Amortization of deferred sales
commissions
    
    
    7,278
    
    
    
    8,123
    
    
    
    (845
    )
    
    
    10
    
    
    
    15,156
    
    
    
    15,863
    
    
    
    (707
    )
    
    
    4Marketing and sales promotion
    
    
    29,731
    
    
    
    4,487
    
    
    
    25,244
    
    
    
    563
    
    
    
    33,213
    
    
    
    7,710
    
    
    
    25,503
    
    
    
    331General and administrative
    
    
    9,118
    
    
    
    7,645
    
    
    
    1,473
    
    
    
    19
    
    
    
    17,510
    
    
    
    14,704
    
    
    
    2,806
    
    
    
    19Total operating expenses
    
    $
    93,835
    
    
    $
    64,406
    
    
    $
    29,429
    
    
    
    46
    %
    
    $
    159,380
    
    
    $
    126,399
    
    
    $
    32,981
    
    
    
    26
    %
   -15-




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##### Table of Contents



Other Income (Expense), Net
  Three Months Ended June 30,
    
    
    Six Months Ended June 30,($ in thousands)
    
    2007
    
    
    2006
    
    
    Change
    
    
    2007
    
    
    2006
    
    
    ChangeNet interest income (expense)
    
    $
    1,495
    
    
    $
    820
    
    
    $
    675
    
    
    $
    3,489
    
    
    $
    1,182
    
    
    $
    2,307Investment and other income
    
    
    7,378
    
    
    
    (7,927
    )
    
    
    15,305
    
    
    
    7,770
    
    
    
    4,004
    
    
    
    3,766Minority interest in partnership
investments
    
    
    (3,020
    )
    
    
    5,171
    
    
    
    (8,191
    )
    
    
    (2,269
    )
    
    
    (1,091
    )
    
    
    (1,178
    )Total other income (expense), net
    
    $
    5,853
    
    
    $
    (1,936
    )
    
    $
    7,789
    
    
    $
    8,990
    
    
    $
    4,095
    
    
    $
    4,895
    -16-




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##### Table of Contents



Income Taxes
  Net Income
   Liquidity and Capital Resources
   June 30,
    
    December 31,(in thousands)
    
    2007
    
    2006Statements of financial condition data:Cash and cash equivalents
    
    $
    147,604
    
    
    $
    328,841Receivables
    
    
    34,044
    
    
    
    36,787Investment securities
    
    
    312,654
    
    
    
    143,112Partnership securities
    
    
    138,218
    
    
    
    86,409Deferred tax assets, net
    
    
    94,689
    
    
    
    99,240Deferred sales commissions
    
    
    40,207
    
    
    
    49,891Long-term debt
    
    
    150,000
    
    
    
    150,000
  June 30,(in thousands)
    
    2007
    
    2006Cash flow data:Net cash provided by operating activities
    
    $
    103,485
    
    
    $
    106,605Net cash used in investing activities
    
    
    (205,474
    )
    
    
    (7,378
    )Net cash used in financing activities
    
    
    (79,248
    )
    
    
    (55,035
    )
    -17-




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##### Table of Contents



Recently Issued Accounting Pronouncements
 Fair Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities  Including an amendment of FASB Statement No. 115
 Critical Accounting Policies
  Forward-Looking Information
    -18-




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##### Table of Contents



Risk Factors
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
  
 Item 4. Controls and Procedures
   -19-




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##### Table of Contents



PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  (c)
    
    
    (d)Total Number of
    
    
    Maximum NumberShares Purchased as
    
    
    of Shares that May(a)
    
    
    (b)
    
    
    Part of Publicly
    
    
    be PurchasedTotal Number of
    
    
    Average Price Paid
    
    
    Announced Plans or
    
    
    Under the Plans orShares Purchased
    
    
    Per Share
    
    
    Programs
    
    
    ProgramsApril 1  April 30, 2007
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    2,000,000May 1  May 31, 2007
    
    
    787,800
    
    
    
    23.91
    
    
    
    787,800
    
    
    
    1,212,200June 1  June 30, 2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,212,200Total
    
    
    787,800
    
    
    $
    23.91
    
    
    
    787,800
    
    
    
    1,212,200
 
 Item 4. Submission of Matters to a Vote of Security Holders
  Class A Shares
    
    Class B Shares
    
    Class A Shares
    
    Class B SharesElection of:
    
    For
    
    For
    
    Withheld
    
    WithheldJohn P. Calamos, Sr.
    
    
    n/a
    
    
    
    768,000,000
    
    
    
    n/a
    
    
    
    0Nick P. Calamos
    
    
    n/a
    
    
    
    768,000,000
    
    
    
    n/a
    
    
    
    0G. Bradford Bulkley
    
    
    20,120,020
    
    
    
    768,000,000
    
    
    
    498,936
    
    
    
    0Mitchell S. Feiger
    
    
    20,119,096
    
    
    
    768,000,000
    
    
    
    499,860
    
    
    
    0Richard W. Gilbert
    
    
    20,120,116
    
    
    
    768,000,000
    
    
    
    498,840
    
    
    
    0Arthur L. Knight
    
    
    20,119,616
    
    
    
    768,000,000
    
    
    
    499,340
    
    
    
    0
  -20-




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##### Table of Contents



Item 6. Exhibits
 3(i)
    
    Amended and Restated Certificate of Incorporation of the Registrant (incorporated by
reference to Exhibit 3.1 to the Registrants Current Report on Form 8-K filed with the
Securities and Exchange Commission on November 2, 2004).3(ii)
    
    Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.2 to
the Registrants Current Report on Form 8-K filed with the Securities and Exchange
Commission on April 26, 2005).3(iii)
    
    Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.2 to
the Registrants Current Report on Form 8-K filed with the Securities and Exchange
Commission on January 23, 2007).3(iv)
    
    Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.2 to
the Registrants Current Report on Form 8-K filed with the Securities and Exchange
Commission on March 8, 2007).4.1
    
    Stockholders Agreement among John P. Calamos, Sr., Nick P. Calamos and John P. Calamos,
Jr., certain trusts controlled by them, Calamos Family Partners, Inc. and the Registrant
(incorporated by reference to Exhibit 4.1 to the Registrants Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on December 3, 2004).4.2
    
    Registration Rights Agreement between Calamos Family Partners, Inc., John P. Calamos, Sr.
and the Registrant (incorporated by reference to Exhibit 4.2 to the Registrants Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on December 3, 2004).10.1
    
    Management Services and Resources Agreement by and among the Registrant, Calamos Family
Partners, Inc. and Calamos Property Holdings LLC.10.2
    
    Amendment Number 1 to Employment Agreement between the Registrant and Nick P. Calamos.10.3
    
    Amendment Number 1 to Employment Agreement between the Registrant and Patrick H. Dudasik.10.4
    
    Amendment Number 1 to Employment Agreement between the Registrant and James S. Hamman, Jr.31.1
    
    Certification pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act.31.2
    
    Certification pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act.32.1
    
    Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.32.2
    
    Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
 -21-




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##### Table of Contents



SIGNATURES
  CALAMOS ASSET MANAGEMENT, INC.
                         (Registrant)Date:  August 8, 2007
    By:
    /s/ Patrick H. DudasikPatrick H. DudasikExecutive Vice President, Chief Operating
Officer,
Chief Financial Officer and Treasurer -22-