Associated Capital Reports Results for the Third Quarter 2024
Associated Capital Group (AC) reported Q3 2024 financial results with Assets Under Management (AUM) of $1.34 billion as of September 30, 2024, down from $1.59 billion in Q3 2023. The company posted total revenues of $2.4 million and net income of $23.2 million ($1.09 per share). Book value per share reached $42.02.
The company's merger arbitrage strategy generated gross returns of 4.88% in Q3. AC declared a special dividend of $2.00 per share and a semi-annual dividend of $0.10 per share. During Q3, the company repurchased 107,218 Class A shares for $3.4 million at an average price of $31.80 per share.
Associated Capital Group (AC) ha riportato i risultati finanziari del terzo trimestre 2024 con un patrimonio gestito (AUM) di 1,34 miliardi di dollari al 30 settembre 2024, in calo rispetto ai 1,59 miliardi di dollari del terzo trimestre 2023. L'azienda ha registrato ricavi totali di 2,4 milioni di dollari e un reddito netto di 23,2 milioni di dollari (1,09 dollari per azione). Il valore contabile per azione ha raggiunto i 42,02 dollari.
La strategia di arbitraggio delle fusioni dell'azienda ha generato rendimenti lordi del 4,88% nel terzo trimestre. AC ha dichiarato un dividendo speciale di 2,00 dollari per azione e un dividendo semestrale di 0,10 dollari per azione. Durante il terzo trimestre, l'azienda ha riacquistato 107.218 azioni di classe A per 3,4 milioni di dollari a un prezzo medio di 31,80 dollari per azione.
Associated Capital Group (AC) reportó resultados financieros del tercer trimestre de 2024, con activos bajo gestión (AUM) de 1,34 mil millones de dólares al 30 de septiembre de 2024, una disminución respecto a 1,59 mil millones de dólares en el tercer trimestre de 2023. La empresa registró ingresos totales de 2,4 millones de dólares y una ganancia neta de 23,2 millones de dólares (1,09 dólares por acción). El valor contable por acción alcanzó los 42,02 dólares.
La estrategia de arbitraje de fusiones de la compañía generó rendimientos brutos del 4,88% en el tercer trimestre. AC declaró un dividendo especial de 2,00 dólares por acción y un dividendo semestral de 0,10 dólares por acción. Durante el tercer trimestre, la empresa recompró 107,218 acciones de clase A por 3,4 millones de dólares a un precio medio de 31,80 dólares por acción.
Associated Capital Group (AC)는 2024년 3분기 재무 보고서를 발표하였으며, 2024년 9월 30일 기준 자산 운용 규모(AUM)는 13억 4천만 달러로, 2023년 3분기의 15억 9천만 달러에서 감소하였습니다. 회사는 총 수익 240만 달러 및 순이익 2320만 달러(주당 1.09 달러)를 기록하였으며, 주당 장부 가치는 42.02 달러에 도달하였습니다.
회사의 인수합병 차익거래 전략은 3분기에 4.88%의 총 수익률을 창출하였습니다. AC는 주당 2.00 달러의 특별 배당금과 주당 0.10 달러의 반기 배당금을 선언하였습니다. 3분기 동안, 회사는 31.80 달러의 평균 가격으로 3억 4천만 달러에 107,218주 클래스 A 주식을 재매입하였습니다.
Associated Capital Group (AC) a publié ses résultats financiers pour le troisième trimestre 2024, affichant des actifs sous gestion (AUM) de 1,34 milliard de dollars au 30 septembre 2024, en baisse par rapport à 1,59 milliard de dollars au troisième trimestre 2023. L'entreprise a enregistré des revenus totaux de 2,4 millions de dollars et un bénéfice net de 23,2 millions de dollars (1,09 dollar par action). La valeur comptable par action s'est élevée à 42,02 dollars.
La stratégie d'arbitrage de fusion de l'entreprise a généré des rendements bruts de 4,88 % au cours du troisième trimestre. AC a déclaré un dividende exceptionnel de 2,00 dollars par action et un dividende semestriel de 0,10 dollar par action. Au cours du troisième trimestre, l'entreprise a racheté 107 218 actions de classe A pour 3,4 millions de dollars à un prix moyen de 31,80 dollars par action.
Associated Capital Group (AC) hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem verwalteten Vermögen (AUM) von 1,34 Milliarden Dollar zum 30. September 2024, was einen Rückgang von 1,59 Milliarden Dollar im dritten Quartal 2023 darstellt. Das Unternehmen erzielte Gesamterlöse von 2,4 Millionen Dollar und einen Nettoertrag von 23,2 Millionen Dollar (1,09 Dollar pro Aktie). Der Buchwert pro Aktie betrug 42,02 Dollar.
Die Merger-Arbitrage-Strategie des Unternehmens erzielte im dritten Quartal eine Bruttorendite von 4,88 %. AC erklärte eine Sonderdividende von 2,00 Dollar pro Aktie und eine halbjährliche Dividende von 0,10 Dollar pro Aktie. Im dritten Quartal hat das Unternehmen 107.218 Stammaktien der Klasse A für 3.4 Millionen Dollar zu einem durchschnittlichen Preis von 31,80 Dollar pro Aktie zurückgekauft.
- Net income increased to $23.2 million in Q3 2024 from a loss of $16,000 in Q3 2023
- Investment and non-operating income grew to $37.2 million from $3.8 million YoY
- Quarterly revenues increased to $2.4 million from $2.2 million YoY
- Merger arbitrage strategy delivered strong gross returns of 4.88% in Q3 2024
- AUM declined to $1.34 billion from $1.59 billion YoY
- Net outflows of $288 million during the period
- Operating loss widened to $3.6 million from $3.5 million YoY
- Operating expenses increased to $6.0 million from $5.7 million YoY
Insights
Associated Capital's Q3 2024 results show mixed performance with notable highlights. Net income surged to
Shareholder returns remain robust with a
The broader M&A landscape shows encouraging signs with global activity reaching
- AUM:
$1.34 billion at September 30, 2024
- Book Value per share ended the quarter at
$42.02
- Returned
$45.9 million to shareholders through dividends declared and share repurchases in the third quarter
- Approved
$0.20 per share shareholder designated charitable contribution for registered shareholders, bringing total to$42 million since our spin-off in 2015
GREENWICH, Conn., Nov. 08, 2024 (GLOBE NEWSWIRE) -- Associated Capital Group, Inc. (“AC” or the “Company”), a diversified financial services company, today reported its financial results for the third quarter of 2024.
Financial Highlights
($ in 000's except AUM and per share data)
| (Unaudited) | Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| AUM - end of period (in millions) | $ | 1,340 | $ | 1,588 | $ | 1,340 | $ | 1,588 | ||||||||
| AUM - average (in millions) | 1,349 | 1,580 | 1,450 | 1,686 | ||||||||||||
| Revenues | 2,415 | 2,200 | 8,021 | 7,047 | ||||||||||||
| Operating loss before management fee (Non-GAAP) | (3,604 | ) | (3,533 | ) | (9,824 | ) | (9,050 | ) | ||||||||
| Investment and other non-operating income/(loss), net | 37,239 | 3,794 | 67,116 | 37,140 | ||||||||||||
| Income before income taxes and noncontrolling interests | 30,323 | 273 | 51,556 | 25,015 | ||||||||||||
| Net income/(loss) | 23,242 | (16 | ) | 40,048 | 21,109 | |||||||||||
| Net income/(loss) per share - basic and diluted | 1.09 | 0.00 | 1.87 | 0.97 | ||||||||||||
| Class A shares outstanding (000's) | 2,297 | 2,672 | 2,297 | 2,672 | ||||||||||||
| Class B " " | 18,951 | 18,951 | 18,951 | 18,951 | ||||||||||||
| Total " " | 21,248 | 21,623 | 21,248 | 21,623 | ||||||||||||
| Book value per share | $ | 42.02 | $ | 41.43 | $ | 42.02 | $ | 41.43 | ||||||||
Giving Back to Society - (Y)our "S" in ESG
AC seeks to be a good corporate citizen by supporting our community through sponsoring local organizations. On August 7, 2024, the Board of Directors approved up to a
Third Quarter Financial Data
- Assets under management ended the quarter at
$1.34 billion versus$1.59 billion at September 30, 2023.
- Book value was
$42.02 per share (ex-$2 per share dividend) compared to$41.43 per share at September 30, 2023.
Third Quarter Results
Total revenues in the third quarter of 2024 were
Starting in December 2023, the Company recognized
Total operating expenses, excluding management fee, were
Net investment and other non-operating income was
For the quarter ended September 30, 2024, the management fee was
The effective tax rate applied to our pre-tax income for the quarter ended September 30, 2024 was
Assets Under Management (AUM)
Assets under management at September 30, 2024 were
| September 30, | December 31, | September 30, | ||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| ($ in millions) | ||||||||||||
| Merger Arbitrage(a) | $ | 1,095 | $ | 1,312 | $ | 1,322 | ||||||
| Long/Short Value(b) | 208 | 244 | 233 | |||||||||
| Other | 37 | 35 | 33 | |||||||||
| Total AUM | $ | 1,340 | $ | 1,591 | $ | 1,588 | ||||||
(a) Includes
(b) Includes
Alternative Investment Management
The alternative investment strategy offerings center around our merger arbitrage strategy, which has an absolute return focus of generating returns independent of the broad equity and fixed income markets. We also offer strategies utilizing fundamental, active, event-driven and special situations investments.
Merger Arbitrage
For the third quarter of 2024, the longest continuously offered fund in the merger arbitrage strategy generated gross returns of
| Full Year | ||||||||||||||||||||||||||||||||||||||||
| Performance%(a) | 3Q '24 | 3Q '23 | YTD '24 | YTD '23 | 2023 | 2022 | 2021 | 2020 | 5 Year(b) | Since 1985(b)(c) | ||||||||||||||||||||||||||||||
| Merger Arb | ||||||||||||||||||||||||||||||||||||||||
| Gross | 4.88 | 2.88 | 4.82 | 2.23 | 5.49 | 4.47 | 10.81 | 9.45 | 7.66 | 10.01 | ||||||||||||||||||||||||||||||
| Net | 3.80 | 2.33 | 3.23 | 1.17 | 3.56 | 2.75 | 7.78 | 6.70 | 5.28 | 7.08 | ||||||||||||||||||||||||||||||
(a) Net performance is net of fees and expenses, unless otherwise noted. Performance shown for an actual fund in this strategy. The performance of other funds in this strategy may vary. Past performance is no guarantee of future results.
(b) Represents annualized returns through September 30, 2024
(c) Inception Date: February 1985
Global M&A activity totaled
The Merger Arbitrage strategy is offered by mandate and client type through partnerships and offshore corporations serving accredited as well as institutional investors. The strategy is also offered in separately managed accounts, a Luxembourg UCITS (an entity organized as an Undertaking for Collective Investment in Transferrable Securities) and a London Stock Exchange listed investment company, Gabelli Merger Plus+ Trust Plc (GMP-LN).
Acquisitions
Associated Capital Group's plan is to accelerate the use of its capital. We intend to leverage our research and investment capabilities by pursuing acquisitions and alliances that will broaden our product offerings and add new sources of distribution. In addition, we may make direct investments in operating businesses using a variety of techniques and structures to accomplish our objectives.
Gabelli Private Equity Partners was created to launch a private equity business, somewhat akin to the success our predecessor PE firm had in the 1980s. We will continue our outreach initiatives with business owners, corporate management, and various financial sponsors. We are activating our program of buying privately owned, family started businesses, controlled and operated by the founding family.
Shareholder Compensation
On September 19, 2024, the Board of Directors declared a special cash dividend of
During the third quarter, AC repurchased 107,218 Class A shares, totaling
Since our inception in 2015, AC has returned
At September 30, 2024, there were 21.248 million shares outstanding, consisting of 2.297 million Class A shares and 18.951 million Class B shares outstanding.
About Associated Capital Group, Inc.
Associated Capital Group, Inc. (NYSE:AC), based in Greenwich, Connecticut, is a diversified global financial services company that provides alternative investment management through Gabelli & Company Investment Advisers, Inc. (“GCIA”). We have also earmarked proprietary capital for our direct investment business that invests in new and existing businesses. The direct investment business is developing along several core pillars, including Gabelli Private Equity Partners, LLC (“GPEP”), which was formed in August 2017 with
Operating Loss Before Management Fee
Operating loss before management fee expense represents a non-GAAP financial measure used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of the Company as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense.
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| ($ in 000's) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating loss - GAAP | $ | (6,916 | ) | $ | (3,521 | ) | $ | (15,560 | ) | $ | (12,125 | ) | ||||
| Add: management fee expense (1) | 3,312 | (12 | ) | 5,736 | 3,075 | |||||||||||
| Operating loss before management fee - Non-GAAP | $ | (3,604 | ) | $ | (3,533 | ) | $ | (9,824 | ) | $ | (9,050 | ) | ||||
(1) Management fee expense is incentive-based and is equal to
| Table I | ||||||||||||
| ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Amounts in thousands) | ||||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| ASSETS | ||||||||||||
| Cash, cash equivalents and US Treasury Bills | $ | 376,697 | $ | 406,642 | $ | 384,214 | ||||||
| Investments in securities and partnerships | 472,528 | 420,706 | 433,480 | |||||||||
| Investment in GAMCO stock | 56,401 | 45,602 | 48,031 | |||||||||
| Receivable from brokers | 26,985 | 30,268 | 29,354 | |||||||||
| Income taxes receivable, including deferred tax assets, net | 2,588 | 8,474 | 7,804 | |||||||||
| Other receivables | 6,402 | 5,587 | 1,616 | |||||||||
| Other assets | 35,552 | 26,518 | 21,883 | |||||||||
| Total assets | $ | 977,153 | $ | 943,797 | $ | 926,382 | ||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||||||
| Payable to brokers | $ | 7,865 | $ | 4,459 | $ | 5,618 | ||||||
| Income taxes payable, including deferred tax liabilities, net | 989 | - | - | |||||||||
| Compensation payable | 17,488 | 15,169 | 10,915 | |||||||||
| Securities sold short, not yet purchased | 7,376 | 5,918 | 5,090 | |||||||||
| Accrued expenses and other liabilities | 2,288 | 5,173 | 1,957 | |||||||||
| Dividend payable | 42,494 | - | - | |||||||||
| Total liabilities | $ | 78,500 | $ | 30,719 | $ | 23,580 | ||||||
| Redeemable noncontrolling interests | 5,836 | 6,103 | 7,133 | |||||||||
| Total equity | 892,817 | 906,975 | 895,669 | |||||||||
| Total liabilities, redeemable noncontrolling interests and equity | $ | 977,153 | $ | 943,797 | $ | 926,382 | ||||||
(1) Certain captions include amounts related to a consolidated variable interest entity ("VIE") and voting interest entity ("VOE"); refer to footnote 4 of the Condensed Consolidated Financial Statements included in the 10-Q report to be filed for the quarter ended September 30, 2024 for more details on the impact of consolidating these entities.
(2) Investment in GAMCO stock: 2,303,023, 2,386,295 and 2,397,974 shares, respectively.
| Table II | ||||||||||||||||
| ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Investment advisory and incentive fees | $ | 2,310 | $ | 2,098 | $ | 7,706 | $ | 6,789 | ||||||||
| Other revenues | 105 | 102 | 315 | 258 | ||||||||||||
| Total revenues | 2,415 | 2,200 | 8,021 | 7,047 | ||||||||||||
| Compensation | 4,215 | 4,078 | 11,977 | 11,437 | ||||||||||||
| Other operating expenses | 1,804 | 1,655 | 5,868 | 4,660 | ||||||||||||
| Total expenses | 6,019 | 5,733 | 17,845 | 16,097 | ||||||||||||
| Operating loss before management fee | (3,604 | ) | (3,533 | ) | (9,824 | ) | (9,050 | ) | ||||||||
| Investment gain/(loss) | 26,173 | (2,173 | ) | 42,808 | 21,635 | |||||||||||
| Interest and dividend income from GAMCO | 4,700 | 96 | 5,362 | 288 | ||||||||||||
| Interest and dividend income, net | 6,366 | 6,106 | 19,395 | 16,821 | ||||||||||||
| Shareholder-designated contribution | - | (235 | ) | (449 | ) | (1,604 | ) | |||||||||
| Investment and other non-operating income, net | 37,239 | 3,794 | 67,116 | 37,140 | ||||||||||||
| Income before management fee and income taxes | 33,635 | 261 | 57,292 | 28,090 | ||||||||||||
| Management fee | 3,312 | (12 | ) | 5,736 | 3,075 | |||||||||||
| Income before income taxes | 30,323 | 273 | 51,556 | 25,015 | ||||||||||||
| Income tax expense | 6,933 | 166 | 11,415 | 3,586 | ||||||||||||
| Income before noncontrolling interests | 23,390 | 107 | 40,141 | 21,429 | ||||||||||||
| Income attributable to noncontrolling interests | 148 | 123 | 93 | 320 | ||||||||||||
| Net income/(loss) attributable to Associated Capital Group | $ | 23,242 | $ | (16 | ) | $ | 40,048 | $ | 21,109 | |||||||
| Net income per share attributable to Associated Capital Group | ||||||||||||||||
| Basic | $ | 1.09 | $ | 0.00 | $ | 1.87 | $ | 0.97 | ||||||||
| Diluted | $ | 1.09 | $ | 0.00 | $ | 1.87 | $ | 0.97 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 21,275 | 21,672 | 21,389 | 21,836 | ||||||||||||
| Diluted | 21,275 | 21,672 | 21,389 | 21,836 | ||||||||||||
| Actual shares outstanding - end of period | 21,248 | 21,623 | 21,248 | 21,623 | ||||||||||||
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe. Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, and a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10 and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.
| Contact: | Ian J. McAdams | |
| Chief Financial Officer | ||
| (914) 921-5078 | ||
| Associated-Capital-Group.com | ||
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/00f9af12-0742-4809-9ba5-ad5c4b21cd9d
FAQ
What was Associated Capital's (AC) AUM in Q3 2024?
What dividends did Associated Capital (AC) declare in Q3 2024?
What was Associated Capital's (AC) net income in Q3 2024?
How did Associated Capital's (AC) merger arbitrage strategy perform in Q3 2024?
