AMG Reports Financial and Operating Results for the Fourth Quarter and Full Year 2024
AMG reported strong financial results for Q4 and full-year 2024, with Economic EPS reaching $6.53 and $21.36 respectively. The company achieved a 10% full-year Economic Earnings growth, driven by strategic evolution and disciplined capital allocation. Assets Under Management (AUM) increased to $707.9 billion by year-end.
Key highlights include a new partnership with NorthBridge Partners, specializing in industrial logistics real estate, and private markets Affiliates raising approximately $24 billion during the year. The company demonstrated strong shareholder returns through $700 million in share repurchases, representing about 13% of outstanding shares.
Financial metrics show net income (controlling interest) of $511.6 million for 2024, with Adjusted EBITDA reaching $973.1 million. The company announced a Q4 cash dividend of $0.01 per share, payable March 4, 2025.
AMG ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024, con un utile per azione economico (EPS) che ha raggiunto i $6.53 e $21.36 rispettivamente. L'azienda ha ottenuto una crescita dell'utile economico del 10% per l'intero anno, grazie a una evoluzione strategica e a una allocazione disciplinata del capitale. Le attività sotto gestione (AUM) sono aumentate a $707.9 miliardi entro la fine dell'anno.
I punti salienti includono una nuova partnership con NorthBridge Partners, specializzata nel settore immobiliare logistico industriale, e gli Affiliati dei mercati privati che hanno raccolto circa $24 miliardi nel corso dell'anno. L'azienda ha dimostrato forti ritorni per gli azionisti attraverso riacquisti di azioni per $700 milioni, pari a circa il 13% delle azioni in circolazione.
I parametri finanziari mostrano un reddito netto (interesse di controllo) di $511.6 milioni per il 2024, con un EBITDA rettificato che ha raggiunto $973.1 milioni. L'azienda ha annunciato un dividendo in contante per il quarto trimestre di $0.01 per azione, che sarà pagato il 4 marzo 2025.
AMG informó sobre resultados financieros sólidos para el cuarto trimestre y todo el año 2024, con un beneficio por acción económico (EPS) alcanzando los $6.53 y $21.36 respectivamente. La compañía logró un crecimiento del 10% en los beneficios económicos a lo largo del año, impulsada por una evolución estratégica y una asignación disciplinada de capital. Los activos bajo gestión (AUM) aumentaron a $707.9 mil millones al final del año.
Los puntos destacados incluyen una nueva asociación con NorthBridge Partners, especializada en bienes raíces logísticos industriales, y los afiliados de mercados privados que recaudaron aproximadamente $24 mil millones durante el año. La compañía demostró fuertes rendimientos para los accionistas a través de recompras de acciones por $700 millones, representando aproximadamente el 13% de las acciones en circulación.
Las métricas financieras muestran un ingreso neto (interés de control) de $511.6 millones para 2024, con un EBITDA ajustado que alcanzó los $973.1 millones. La compañía anunció un dividendo en efectivo para el cuarto trimestre de $0.01 por acción, pagadero el 4 de marzo de 2025.
AMG는 2024년 4분기 및 전체 연도에 대해 강력한 재무 결과를 보고했습니다. 경제적 주당 순이익 (EPS)은 각각 $6.53 및 $21.36에 도달했습니다. 회사는 전략적 진화와 자본 할당에 대한 원칙적인 접근 덕분에 연간 경제적 수익이 10% 성장했습니다. 운용 자산 (AUM)은 연말까지 $707.9억 달러로 증가했습니다.
주요 하이라이트에는 산업 물류 부동산에 특화된 NorthBridge Partners와의 새로운 파트너십이 포함되며, 사모 시장의 회원들은 연간 약 $240억 달러를 모집했습니다. 회사는 약 13%의 자사주 매입을 통해 $7억 달러의 주주 수익을 보여주었습니다.
재무 지표는 2024년 기준으로 고통받는 이익이 $511.6 백만 달러, 조정 EBITDA는 $973.1 백만 달러에 도달했음을 보여줍니다. 회사는 2025년 3월 4일 지급될 4분기 현금 배당금을 주당 $0.01로 발표했습니다.
AMG a rapporté de solides résultats financiers pour le quatrième trimestre et pour l'année entière 2024, avec un bénéfice par action économique (EPS) atteignant respectivement 6,53 $ et 21,36 $. L'entreprise a enregistré une croissance des bénéfices économiques de 10 % sur l'ensemble de l'année, impulsée par une évolution stratégique et une allocation de capital disciplinée. Les actifs sous gestion (AUM) ont augmenté à 707,9 milliards de dollars à la fin de l'année.
Les points forts incluent un nouveau partenariat avec NorthBridge Partners, spécialisé dans l'immobilier logistique industriel, et les filiales de marchés privés ayant levé environ 24 milliards de dollars au cours de l'année. L'entreprise a montré de bons rendements pour les actionnaires grâce à des rachats d'actions d'un montant de 700 millions de dollars, représentant environ 13 % des actions en circulation.
Les indicateurs financiers montrent un bénéfice net (intérêt contrôlant) de 511,6 millions de dollars pour 2024, avec un EBITDA ajusté atteignant 973,1 millions de dollars. L'entreprise a annoncé un dividende en espèces pour le quatrième trimestre de 0,01 $ par action, payable le 4 mars 2025.
AMG berichtete über starke finanzielle Ergebnisse für das vierte Quartal und das gesamte Jahr 2024, wobei das wirtschaftliche Ergebnis pro Aktie (EPS) jeweils $6,53 und $21,36 erreichte. Das Unternehmen erzielte ein Wirtschaftswachstum der Erträge von 10% im gesamten Jahr, bedingt durch strategische Evolution und disziplinierte Kapitalallokation. Assets Under Management (AUM) stiegen bis zum Jahresende auf $707,9 Milliarden.
Wichtige Highlights umfassen eine neue Partnerschaft mit NorthBridge Partners, die sich auf industrielle Logistikimmobilien spezialisiert, sowie die privaten Marktteilnehmer, die im Laufe des Jahres etwa $24 Milliarden eingeworben haben. Das Unternehmen zeigte starke Renditen für die Aktionäre durch Aktienrückkäufe in Höhe von $700 Millionen, was etwa 13% der ausstehenden Aktien entspricht.
Die finanziellen Kennzahlen zeigen ein Nettoeinkommen (im beherrschenden Interesse) von $511,6 Millionen für 2024, wobei das bereinigte EBITDA $973,1 Millionen erreichte. Das Unternehmen kündigte eine Barausschüttung für das vierte Quartal von $0,01 pro Aktie an, die am 4. März 2025 zahlbar sein wird.
- 10% growth in full-year Economic EPS to $21.36
- AUM increased to $707.9 billion from $672.7 billion
- Private markets Affiliates raised $24 billion during 2024
- Significant shareholder returns via $700 million share repurchase
- Strategic expansion through NorthBridge Partners partnership
- Net client cash outflows of $13.9 billion in 2024
- Net income decreased to $511.6 million from $672.9 million YoY
- Q4 EPS declined to $4.92 from $5.15 YoY
- Economic net income decreased to $701.6 million from $717.8 million YoY
Insights
AMG's FY2024 results reveal a company in strategic transformation, with several key developments warranting investor attention. The 10% growth in Economic EPS to $21.36 demonstrates strong execution, particularly notable given challenging market conditions. The results highlight three critical strategic vectors:
1. Business Mix Evolution: The shift toward alternatives is gaining momentum, evidenced by
2. Capital Allocation Excellence: The
3. Strategic Acquisitions: The NorthBridge Partners investment is particularly well-timed, targeting the high-growth last-mile logistics sector. This move capitalizes on two secular trends: e-commerce growth and supply chain reorganization, while diversifying AMG's alternative investment portfolio.
However, the persistent net outflows of
The minimal dividend of
Company reports EPS of
EPS of
- New partnership with NorthBridge Partners, a private markets manager specializing in industrial logistics real estate assets
- Net income (controlling interest) of
$512 million , Economic Net Income (controlling interest) of$702 million 10% full-year Economic Earnings per share growth reflects AMG’s ongoing strategic evolution and disciplined capital allocation strategy- Repurchased
$700 million in common stock or approximately13% of shares outstanding in 2024
WEST PALM BEACH, Fla., Feb. 06, 2025 (GLOBE NEWSWIRE) -- AMG, a strategic partner to leading independent investment management firms globally, today reported its financial and operating results for the fourth quarter and year ended December 31, 2024.
Jay C. Horgen, President and Chief Executive Officer of AMG, said:
“AMG delivered record Economic Earnings per share in 2024; growth of
“In 2024, we continued to strategically evolve our business, increasing our exposure to alternatives, which further enhances our long-term growth prospects. AMG’s private markets Affiliates raised approximately
“This morning, we announced our investment in NorthBridge Partners, a leading vertically integrated real estate manager with excellent forward prospects, given its deep expertise and targeted investment strategy in last-mile logistics, a high-growth sector benefiting from the expanding digital economy and evolving supply chain dynamics. Our partnership with NorthBridge broadens AMG’s participation in private markets and underscores our focus on investing in areas of secular growth. AMG's proven ability to magnify the competitive advantages of partner-owned firms, while also preserving their independence, continues to differentiate AMG’s partnership model and is highly valued by prospective Affiliates.
“Our execution across each element of our growth strategy, including investing in new Affiliate partnerships, investing in our existing Affiliates, and investing in AMG's capabilities to magnify our Affiliates' success, is driving the evolution of our distinctive business profile. Given AMG’s proven strategic capabilities and 30-year track record of successful partnerships, our opportunities to invest in growth are expanding. With our ample financial flexibility and disciplined capital allocation framework, we enter 2025 in an excellent position to continue executing on our strategy, and create meaningful incremental shareholder value over time.”
| FINANCIAL HIGHLIGHTS | Three Months Ended | Years Ended | |||||||||||||
| (in millions, except as noted and per share data) | 12/31/2023 | 12/31/2024 | 12/31/2023 | 12/31/2024 | |||||||||||
| Operating Performance Measures | |||||||||||||||
| AUM (at period end, in billions) | $ | 672.7 | $ | 707.9 | $ | 672.7 | $ | 707.9 | |||||||
| Average AUM (in billions) | 648.1 | 717.3 | 660.3 | 700.5 | |||||||||||
| Net client cash flows (in billions) | (6.1 | ) | (8.3 | ) | (29.2 | ) | (13.9 | ) | |||||||
| Aggregate fees | 1,560.9 | 1,509.2 | 5,066.6 | 5,236.0 | |||||||||||
| Financial Performance Measures | |||||||||||||||
| Net income (controlling interest) | $ | 196.2 | $ | 162.1 | $ | 672.9 | $ | 511.6 | |||||||
| Earnings per share (diluted)(1) | 5.15 | 4.92 | 17.42 | 15.13 | |||||||||||
| Supplemental Performance Measures(2) | |||||||||||||||
| Adjusted EBITDA (controlling interest) | $ | 296.2 | $ | 281.7 | $ | 935.7 | $ | 973.1 | |||||||
| Economic net income (controlling interest) | 242.9 | 205.8 | 717.8 | 701.6 | |||||||||||
| Economic earnings per share | 6.86 | 6.53 | 19.48 | 21.36 | |||||||||||
For additional information on our Supplemental Performance Measures, including reconciliations to GAAP, see the Financial Tables and Notes.
Capital Management
During the fourth quarter of 2024, the Company repurchased approximately
About AMG
AMG (NYSE: AMG) is a strategic partner to leading independent investment management firms globally. AMG’s strategy is to generate long‐term value by investing in high-quality independent partner-owned firms, through a proven partnership approach, and allocating resources across AMG's unique opportunity set to the areas of highest growth and return. Through its distinctive approach, AMG magnifies its Affiliates' existing advantages and actively supports their independence and ownership culture. As of December 31, 2024, AMG’s aggregate assets under management were approximately
Conference Call, Replay and Presentation Information
A conference call will be held with AMG’s management at 8:30 a.m. Eastern time today. Parties interested in listening to the conference call should dial 1-877-407-8291 (U.S. calls) or 1-201-689-8345 (non-U.S. calls) shortly before the call begins.
The conference call will also be available for replay beginning approximately one hour after the conclusion of the call. To hear a replay of the call, please dial 1-877-660-6853 (U.S. calls) or 1-201-612-7415 (non-U.S. calls) and provide conference ID 13750674. The live call and replay of the session and a presentation highlighting the Company's performance can also be accessed via AMG’s website at https://ir.amg.com/.
Financial Tables Follow
| ASSETS UNDER MANAGEMENT - STATEMENTS OF CHANGES (in billions) | ||||||||||||||||
| Alternatives | Differentiated Long-Only | |||||||||||||||
| BY STRATEGY - QUARTER TO DATE | Private Markets | Liquid Alternatives | Equities | Multi-Asset & Fixed Income | Total | |||||||||||
| AUM, September 30, 2024 | $ | 131.2 | $ | 135.3 | $ | 345.9 | $ | 116.0 | $ | 728.4 | ||||||
| Client cash inflows and commitments | 5.6 | 8.9 | 10.2 | 5.2 | 29.9 | |||||||||||
| Client cash outflows | (0.1 | ) | (7.3 | ) | (25.8 | ) | (5.0 | ) | (38.2 | ) | ||||||
| Net client cash flows | 5.5 | 1.6 | (15.6 | ) | 0.2 | (8.3 | ) | |||||||||
| Market changes | (0.2 | ) | 3.5 | (2.5 | ) | 0.4 | 1.2 | |||||||||
| Foreign exchange | (0.5 | ) | (3.1 | ) | (6.3 | ) | (1.3 | ) | (11.2 | ) | ||||||
| Realizations and distributions (net) | (0.7 | ) | (0.2 | ) | (1.3 | ) | (0.1 | ) | (2.3 | ) | ||||||
| Other | 0.1 | 3.6 | (4.0 | ) | 0.4 | 0.1 | ||||||||||
| AUM, December 31, 2024 | $ | 135.4 | $ | 140.7 | $ | 316.2 | $ | 115.6 | $ | 707.9 | ||||||
| Alternatives | Differentiated Long-Only | |||||||||||||||
| BY STRATEGY - YEAR TO DATE | Private Markets | Liquid Alternatives | Equities | Multi-Asset & Fixed Income | Total | |||||||||||
| AUM, December 31, 2023 | $ | 114.8 | $ | 124.0 | $ | 329.4 | $ | 104.5 | $ | 672.7 | ||||||
| Client cash inflows and commitments | 23.7 | 27.5 | 38.1 | 22.1 | 111.4 | |||||||||||
| Client cash outflows | (0.2 | ) | (25.6 | ) | (80.2 | ) | (19.3 | ) | (125.3 | ) | ||||||
| Net client cash flows | 23.5 | 1.9 | (42.1 | ) | 2.8 | (13.9 | ) | |||||||||
| New investments | 0.7 | — | — | 0.7 | 1.4 | |||||||||||
| Market changes | 0.4 | 10.6 | 41.4 | 8.7 | 61.1 | |||||||||||
| Foreign exchange | (0.3 | ) | (0.8 | ) | (4.6 | ) | (1.2 | ) | (6.9 | ) | ||||||
| Realizations and distributions (net) | (4.4 | ) | (0.5 | ) | (1.4 | ) | (0.3 | ) | (6.6 | ) | ||||||
| Other | 0.7 | 5.5 | (6.5 | ) | 0.4 | 0.1 | ||||||||||
| AUM, December 31, 2024 | $ | 135.4 | $ | 140.7 | $ | 316.2 | $ | 115.6 | $ | 707.9 | ||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| Three Months Ended | ||||||||
| (in millions, except per share data) | 12/31/2023 | 12/31/2024 | ||||||
| Consolidated revenue | $ | 502.7 | $ | 524.2 | ||||
| Consolidated expenses: | ||||||||
| Compensation and related expenses | 244.5 | 238.8 | ||||||
| Selling, general and administrative | 84.8 | 98.4 | ||||||
| Intangible amortization and impairments | 10.8 | 7.3 | ||||||
| Interest expense | 31.4 | 35.2 | ||||||
| Depreciation and other amortization | 3.0 | 4.0 | ||||||
| Other expenses (net) | 9.6 | 8.8 | ||||||
| Total consolidated expenses | 384.1 | 392.5 | ||||||
| Equity method income (net)(3) | 125.7 | 124.5 | ||||||
| Affiliate Transaction gains(4) | — | — | ||||||
| Investment and other income | 29.8 | 17.5 | ||||||
| Income before income taxes | 274.1 | 273.7 | ||||||
| Income tax expense | 29.8 | 52.6 | ||||||
| Net income | 244.3 | 221.1 | ||||||
| Net income (non-controlling interests) | (48.1 | ) | (59.0 | ) | ||||
| Net income (controlling interest) | $ | 196.2 | $ | 162.1 | ||||
| Average shares outstanding (basic) | 33.7 | 30.1 | ||||||
| Average shares outstanding (diluted) | 41.3 | 36.0 | ||||||
| Earnings per share (basic) | $ | 5.83 | $ | 5.39 | ||||
| Earnings per share (diluted)(1) | $ | 5.15 | $ | 4.92 | ||||
| RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(2) | ||||||||
| Three Months Ended | ||||||||
| (in millions, except per share data) | 12/31/2023 | 12/31/2024 | ||||||
| Net income (controlling interest) | $ | 196.2 | $ | 162.1 | ||||
| Intangible amortization and impairments | 39.9 | 30.5 | ||||||
| Intangible-related deferred taxes | 12.8 | 15.3 | ||||||
| Affiliate Transactions(4) | — | — | ||||||
| Other economic items | (6.0 | ) | (2.1 | ) | ||||
| Economic net income (controlling interest) | $ | 242.9 | $ | 205.8 | ||||
| Average shares outstanding (adjusted diluted) | 35.4 | 31.5 | ||||||
| Economic earnings per share | $ | 6.86 | $ | 6.53 | ||||
| Net income (controlling interest) | $ | 196.2 | $ | 162.1 | ||||
| Interest expense | 31.4 | 35.2 | ||||||
| Income taxes | 34.5 | 54.9 | ||||||
| Intangible amortization and impairments | 39.9 | 30.5 | ||||||
| Affiliate Transactions(4) | — | — | ||||||
| Other items | (5.8 | ) | (1.0 | ) | ||||
| Adjusted EBITDA (controlling interest) | $ | 296.2 | $ | 281.7 | ||||
| See Notes for additional information. | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| Years Ended | ||||||||
| (in millions, except per share data) | 12/31/2023 | 12/31/2024 | ||||||
| Consolidated revenue | $ | 2,057.8 | $ | 2,040.9 | ||||
| Consolidated expenses: | ||||||||
| Compensation and related expenses | 907.5 | 915.3 | ||||||
| Selling, general and administrative | 358.2 | 376.5 | ||||||
| Intangible amortization and impairments | 48.3 | 29.0 | ||||||
| Interest expense | 123.8 | 133.3 | ||||||
| Depreciation and other amortization | 13.0 | 13.4 | ||||||
| Other expenses (net) | 45.8 | 40.3 | ||||||
| Total consolidated expenses | 1,496.6 | 1,507.8 | ||||||
| Equity method income (net)(3) | 280.0 | 312.7 | ||||||
| Affiliate Transaction gains(4) | 133.1 | — | ||||||
| Investment and other income | 117.1 | 77.4 | ||||||
| Income before income taxes | 1,091.4 | 923.2 | ||||||
| Income tax expense | 185.3 | 182.6 | ||||||
| Net income | 906.1 | 740.6 | ||||||
| Net income (non-controlling interests) | (233.2 | ) | (229.0 | ) | ||||
| Net income (controlling interest) | $ | 672.9 | $ | 511.6 | ||||
| Average shares outstanding (basic) | 35.1 | 31.1 | ||||||
| Average shares outstanding (diluted) | 42.2 | 36.1 | ||||||
| Earnings per share (basic) | $ | 19.18 | $ | 16.45 | ||||
| Earnings per share (diluted)(1) | $ | 17.42 | $ | 15.13 | ||||
| RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(2) | ||||||||
| Years Ended | ||||||||
| (in millions, except per share data) | 12/31/2023 | 12/31/2024 | ||||||
| Net income (controlling interest) | $ | 672.9 | $ | 511.6 | ||||
| Intangible amortization and impairments | 128.5 | 149.2 | ||||||
| Intangible-related deferred taxes | 57.3 | 61.9 | ||||||
| Affiliate Transactions(4) | (122.1 | ) | — | |||||
| Other economic items | (18.8 | ) | (21.1 | ) | ||||
| Economic net income (controlling interest) | $ | 717.8 | $ | 701.6 | ||||
| Average shares outstanding (adjusted diluted) | 36.8 | 32.8 | ||||||
| Economic earnings per share | $ | 19.48 | $ | 21.36 | ||||
| Net income (controlling interest) | $ | 672.9 | $ | 511.6 | ||||
| Interest expense | 123.8 | 133.3 | ||||||
| Income taxes | 185.2 | 187.9 | ||||||
| Intangible amortization and impairments | 128.5 | 149.2 | ||||||
| Affiliate Transactions(4) | (162.7 | ) | — | |||||
| Other items | (12.0 | ) | (8.9 | ) | ||||
| Adjusted EBITDA (controlling interest) | $ | 935.7 | $ | 973.1 | ||||
| See Notes for additional information. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| Years Ended | ||||||||
| (in millions) | 12/31/2023 | 12/31/2024 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 813.6 | $ | 950.0 | ||||
| Receivables | 368.4 | 409.7 | ||||||
| Investments | 941.9 | 595.6 | ||||||
| Goodwill | 2,523.6 | 2,504.9 | ||||||
| Acquired client relationships (net) | 1,812.4 | 1,777.8 | ||||||
| Equity method investments in Affiliates (net) | 2,288.5 | 2,246.6 | ||||||
| Fixed assets (net) | 67.3 | 57.6 | ||||||
| Other assets | 243.9 | 288.7 | ||||||
| Total assets | $ | 9,059.6 | $ | 8,830.9 | ||||
| Liabilities and Equity | ||||||||
| Payables and accrued liabilities | $ | 628.5 | $ | 639.1 | ||||
| Debt | 2,537.5 | 2,620.2 | ||||||
| Deferred tax liability (net) | 463.8 | 520.5 | ||||||
| Other liabilities | 466.3 | 402.4 | ||||||
| Total liabilities | 4,096.1 | 4,182.2 | ||||||
| Redeemable non-controlling interests | 393.4 | 350.5 | ||||||
| Equity: | ||||||||
| Common stock | 0.6 | 0.6 | ||||||
| Additional paid-in capital | 741.4 | 733.1 | ||||||
| Accumulated other comprehensive loss | (167.6 | ) | (163.6 | ) | ||||
| Retained earnings | 6,389.6 | 6,899.8 | ||||||
| 6,964.0 | 7,469.9 | |||||||
| Less: treasury stock, at cost | (3,376.1 | ) | (4,124.6 | ) | ||||
| Total stockholders’ equity | 3,587.9 | 3,345.3 | ||||||
| Non-controlling interests | 982.2 | 952.9 | ||||||
| Total equity | 4,570.1 | 4,298.2 | ||||||
| Total liabilities and equity | $ | 9,059.6 | $ | 8,830.9 | ||||
| Notes | |
| (1) | Earnings per share (diluted) adjusts for the dilutive effect of the potential issuance of incremental shares of our common stock. |
| We assume the settlement of all of our Redeemable non-controlling interests using the maximum number of shares permitted under our arrangements. The issuance of shares and the related income acquired are excluded from the calculation if an assumed purchase of Redeemable non-controlling interests would be anti-dilutive to diluted earnings per share. | |
| We are required to apply the if-converted method to our outstanding junior convertible securities when calculating Earnings per share (diluted). Under the if-converted method, shares that are issuable upon conversion are deemed outstanding, regardless of whether the securities are contractually convertible into our common stock at that time. For this calculation, the interest expense (net of tax) attributable to these dilutive securities is added back to Net income (controlling interest), reflecting the assumption that the securities have been converted. Issuable shares for these securities and related interest expense are excluded from the calculation if an assumed conversion would be anti-dilutive to diluted earnings per share. | |
| The following table provides a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share: | |
| Three Months Ended | Years Ended | ||||||||||||
| (in millions) | 12/31/2023 | 12/31/2024 | 12/31/2023 | 12/31/2024 | |||||||||
| Numerator | |||||||||||||
| Net income (controlling interest) | $ | 196.2 | $ | 162.1 | $ | 672.9 | $ | 511.6 | |||||
| Income from hypothetical settlement of Redeemable non-controlling interests, net of taxes | 12.9 | 11.7 | 49.0 | 20.5 | |||||||||
| Interest expense on junior convertible securities, net of taxes | 3.4 | 3.4 | 13.4 | 13.4 | |||||||||
| Net income (controlling interest), as adjusted | $ | 212.5 | $ | 177.2 | $ | 735.3 | $ | 545.5 | |||||
| Denominator | |||||||||||||
| Average shares outstanding (basic) | 33.7 | 30.1 | 35.1 | 31.1 | |||||||||
| Effect of dilutive instruments: | |||||||||||||
| Stock options and restricted stock units | 1.7 | 1.4 | 1.7 | 1.7 | |||||||||
| Hypothetical issuance of shares to settle Redeemable non-controlling interests | 4.2 | 2.8 | 3.7 | 1.6 | |||||||||
| Junior convertible securities | 1.7 | 1.7 | 1.7 | 1.7 | |||||||||
| Average shares outstanding (diluted) | 41.3 | 36.0 | 42.2 | 36.1 | |||||||||
| (2) | As supplemental information, we provide non-GAAP performance measures of Adjusted EBITDA (controlling interest), Economic net income (controlling interest), and Economic earnings per share. We believe that many investors use our Adjusted EBITDA (controlling interest) when comparing our financial performance to other companies in the investment management industry. Management utilizes these non-GAAP performance measures to assess our performance before our share of certain non-cash GAAP expenses primarily related to the acquisition of interests in Affiliates and to improve comparability between periods. Economic net income (controlling interest) and Economic earnings per share are used by management and our Board of Directors as our principal performance benchmarks, including as one of the measures for determining executive compensation. These non-GAAP performance measures are provided in addition to, but not as a substitute for, Net income (controlling interest), Earnings per share, or other GAAP performance measures. For additional information on our non-GAAP measures, see our most recent Annual and Quarterly Reports on Form 10-K and 10-Q, respectively, which are accessible on the SEC's website at www.sec.gov. |
| Adjusted EBITDA (controlling interest) represents our performance before our share of interest expense, income and certain non-income based taxes, depreciation, amortization, impairments, gains and losses related to Affiliate Transactions, and non-cash items such as certain Affiliate equity activity, gains and losses on our contingent payment obligations, and unrealized gains and losses on seed capital, general partner commitments, and other strategic investments. Adjusted EBITDA (controlling interest) is also adjusted to include realized economic gains and losses related to these seed capital, general partner commitments, and other strategic investments. | |
| Under our Economic net income (controlling interest) definition, we adjust Net income (controlling interest) for our share of pre-tax intangible amortization and impairments related to intangible assets (including the portion attributable to equity method investments in Affiliates) because these expenses do not correspond to the changes in the value of these assets, which do not diminish predictably over time. We also adjust for deferred taxes attributable to intangible assets because we believe it is unlikely these accruals will be used to settle material tax obligations. Further, we adjust for gains and losses related to Affiliate Transactions, net of tax, and other economic items. Other economic items include certain Affiliate equity activity, gains and losses related to contingent payment obligations, tax windfalls and shortfalls from share-based compensation, unrealized gains and losses on seed capital, general partner commitments, and other strategic investments, and realized economic gains and losses related to these seed capital, general partner commitments, and other strategic investments. | |
| Economic earnings per share represents Economic net income (controlling interest) divided by the Average shares outstanding (adjusted diluted). In this calculation, we exclude the potential shares issued upon settlement of Redeemable non-controlling interests from Average shares outstanding (adjusted diluted) because we intend to settle those obligations without issuing shares, consistent with all prior Affiliate equity purchase transactions. The potential share issuance in connection with our junior convertible securities is measured using a “treasury stock” method. Under this method, only the net number of shares of common stock equal to the value of the junior convertible securities in excess of par, if any, are deemed to be outstanding. We believe the inclusion of net shares under a treasury stock method best reflects the benefit of the increase in available capital resources (which could be used to repurchase shares of our common stock) that occurs when these securities are converted and we are relieved of our debt obligation. | |
| The following table provides a reconciliation of Average shares outstanding (adjusted diluted): |
| Three Months Ended | Years Ended | ||||||||||||
| (in millions) | 12/31/2023 | 12/31/2024 | 12/31/2023 | 12/31/2024 | |||||||||
| Average shares outstanding (diluted) | 41.3 | 36.0 | 42.2 | 36.1 | |||||||||
| Hypothetical issuance of shares to settle Redeemable non-controlling interests | (4.2 | ) | (2.8 | ) | (3.7 | ) | (1.6 | ) | |||||
| Junior convertible securities | (1.7 | ) | (1.7 | ) | (1.7 | ) | (1.7 | ) | |||||
| Average shares outstanding (adjusted diluted) | 35.4 | 31.5 | 36.8 | 32.8 | |||||||||
| (3) | The following table presents equity method earnings and equity method intangible amortization and impairments, which in aggregate form Equity method income (net): | ||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||
| (in millions) | 12/31/2023 | 12/31/2024 | 12/31/2023 | 12/31/2024 | |||||||||||||
| Equity method earnings | $ | 158.3 | $ | 150.1 | $ | 375.6 | $ | 442.7 | |||||||||
| Equity method intangible amortization and impairments | (32.6 | ) | (25.6 | ) | (95.6 | ) | (130.0 | ) | |||||||||
| Equity method income (net) | $ | 125.7 | $ | 124.5 | $ | 280.0 | $ | 312.7 | |||||||||
| (4) | The following table presents the impact of the completion of our previously announced sales of our equity interests in Veritable, LP to a third party in the third quarter of 2023, and Baring Private Equity Asia to EQT AB (“EQT”), a public company listed on Nasdaq Stockholm (EQT ST), in the fourth quarter of 2022, pursuant to which we received ordinary shares of EQT: | ||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||
| (in millions) | 12/31/2023 | 12/31/2024 | 12/31/2023 | 12/31/2024 | |||||||||||||
| Affiliate Transaction gain | $ | — | $ | — | $ | 133.1 | $ | — | |||||||||
| Investment and other income - Realized gains on EQT shares | — | — | 29.6 | — | |||||||||||||
| Affiliate Transactions, pre-tax | — | — | 162.7 | — | |||||||||||||
| Income taxes | — | — | (40.6 | ) | — | ||||||||||||
| Affiliate Transactions, after-tax | $ | — | $ | — | $ | 122.1 | $ | — | |||||||||
Forward-Looking Statements and Other Matters
Certain matters discussed in this press release issued by Affiliated Managers Group, Inc. (“AMG” or the “Company”) may constitute forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “preliminary,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “positioned,” “prospects,” “intends,” “plans,” “estimates,” “pending investments,” “anticipates,” or the negative version of these words or other comparable words. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing, competition for acquisitions of interests in investment management firms, uncertainties relating to closing of pending investments or transactions and potential changes in the anticipated benefits thereof, the investment performance and growth rates of our Affiliates and their ability to effectively market their investment strategies, the mix of Affiliate contributions to our earnings, and other risks, uncertainties, and assumptions, including those described under the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors may be updated from time to time in our periodic filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by applicable law.
This release does not constitute an offer of any products, investment vehicles, or services of any AMG Affiliate.
From time to time, AMG may use its website as a distribution channel of material Company information. AMG routinely posts financial and other important information regarding the Company in the Investor Relations section of its website at www.amg.com and encourages investors to consult that section regularly.
Investor and Media Relations
Patricia Figueroa
+1 (617) 747-3300
ir@amg.com
pr@amg.com
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