AMG Reports Financial and Operating Results for the Second Quarter and First Half of 2024
AMG reported strong financial results for Q2 and H1 2024. Key highlights include:
- Q2 EPS of $2.26 and Economic EPS of $4.67
- H1 Net income of $226 million and Economic Net Income of $343 million
- H1 Economic EPS of $10.06, up 17% year-over-year
- Positive net client cash flows in Q2, driven by private markets fundraising
- $327 million in share repurchases in Q2, totaling $477 million in H1
AMG's focus on areas of secular demand and alternative strategies has enhanced its growth prospects. The company's disciplined capital allocation strategy, including investments in new and existing Affiliates, has positioned it well for future growth.
AMG ha riportato risultati finanziari solidi per il secondo trimestre e il primo semestre del 2024. I principali punti salienti includono:
- EPS del Q2 di 2,26 $ e EPS Economico di 4,67 $
- Reddito netto H1 di 226 milioni di dollari e Reddito Netto Economico di 343 milioni di dollari
- EPS Economico H1 di 10,06 $, in crescita del 17% rispetto all'anno precedente
- Flussi di cassa netti positivi dei clienti nel Q2, sostenuti dal fundraising nei mercati privati
- 327 milioni di dollari in riacquisti di azioni nel Q2, per un totale di 477 milioni di dollari nel H1
Il focus di AMG su aree di domanda secolare e strategie alternative ha migliorato le sue prospettive di crescita. La strategia disciplinata di allocazione del capitale dell'azienda, inclusi investimenti in Affiliati nuovi ed esistenti, la ha ben posizionata per la crescita futura.
AMG reportó resultados financieros sólidos para el segundo trimestre y el primer semestre de 2024. Los aspectos más destacados incluyen:
- EPS del Q2 de 2,26 $ y EPS Económico de 4,67 $
- Ingreso neto H1 de 226 millones de dólares e Ingreso Neto Económico de 343 millones de dólares
- EPS Económico H1 de 10,06 $, un aumento del 17% interanual
- Flujos de efectivo netos positivos de clientes en el Q2, impulsados por la recaudación de fondos en mercados privados
- 327 millones de dólares en recompras de acciones en el Q2, totalizando 477 millones de dólares en H1
El enfoque de AMG en áreas de demanda secular y estrategias alternativas ha mejorado sus perspectivas de crecimiento. La estrategia disciplinada de asignación de capital de la empresa, que incluye inversiones en Afiliados nuevos y existentes, la ha posicionado bien para el crecimiento futuro.
AMG는 2024년 2분기 및 상반기 기본 재무 결과를 보고했습니다. 주요 하이라이트는 다음과 같습니다:
- 2분기 주당 순이익(EPS) 2.26달러 및 경제적 EPS 4.67달러
- 상반기 순이익 2억 2600만 달러 및 경제적 순이익 3억 4300만 달러
- 상반기 경제적 EPS 10.06달러, 전년 대비 17% 증가
- 사모 시장 자금 조달에 힘입어 2분기 고객 순 현금 흐름 긍정적
- 2분기에 3억 2700만 달러 규모의 자사주 매입, 상반기 총 4억 7700만 달러
AMG의 세속적 수요 및 대체 전략에 대한 집중은 성장 전망을 향상시켰습니다. 회사의 엄격한 자본 배정 전략은 신규 및 기존 제휴사에 대한 투자를 포함하여 미래 성장을 위한 좋은 위치를 점하고 있습니다.
AMG a rapporté de solides résultats financiers pour le deuxième trimestre et le premier semestre 2024. Les principaux points forts incluent :
- BPA du T2 de 2,26 $ et BPA économique de 4,67 $
- Revenu net H1 de 226 millions de dollars et Revenu Net Économique de 343 millions de dollars
- BPA économique H1 de 10,06 $, en hausse de 17 % par rapport à l'année précédente
- Flux de liquidités nets positifs des clients au T2, soutenus par des levées de fonds sur les marchés privés
- 327 millions de dollars en rachat d'actions au T2, totalisant 477 millions de dollars pour le H1
Le focus d'AMG sur les domaines de demande séculaire et les stratégies alternatives a amélioré ses perspectives de croissance. La stratégie disciplinée d'allocation de capital de l'entreprise, notamment les investissements dans de nouveaux et anciens Affiliés, l'a bien positionnée pour la croissance future.
AMG meldete starke Finanzergebnisse für das 2. Quartal sowie das 1. Halbjahr 2024. Wichtige Höhepunkte sind:
- Q2 EPS von 2,26 $ und wirtschaftliches EPS von 4,67 $
- Nettogewinn H1 von 226 Millionen $ und wirtschaftlicher Nettogewinn von 343 Millionen $
- Wirtschaftliches EPS H1 von 10,06 $, ein Anstieg um 17 % im Jahresvergleich
- Positive Netto-Kunden-Cashflows im Q2, bedingt durch Fundraising im Privatmarkt
- 327 Millionen $ an Aktienrückkäufen im Q2, insgesamt 477 Millionen $ im H1
AMGs Fokus auf Bereiche mit säkularem Wachstum und alternative Strategien hat die Wachstumsaussichten verbessert. Die disziplinierte Kapitalallokationsstrategie des Unternehmens, einschließlich Investitionen in neue und bestehende Partnerunternehmen, hat es gut für zukünftiges Wachstum positioniert.
- Economic EPS increased 17% year-over-year to $10.06 in H1 2024
- Positive net client cash flows in Q2 2024
- Strong private markets fundraising performance
- AUM increased to $701.0 billion as of June 30, 2024
- Repurchased $477 million in common stock during H1 2024
- Board increased share repurchase authorization
- Net income (controlling interest) decreased from $259.8 million in H1 2023 to $225.8 million in H1 2024
- Diluted EPS decreased from $6.74 in H1 2023 to $6.49 in H1 2024
- Net client cash flows for H1 2024 were negative at -$2.9 billion
Insights
AMG's Q2 2024 results present a mixed picture with some positive indicators and areas of concern. The company reported
Key positives include:
- Positive net client cash flows in Q2, driven by strength in private markets fundraising
- Continued business momentum in alternative strategies
- Robust share repurchase program, with
$327 million in Q2 and$477 million in H1
However, there are some concerning aspects:
- GAAP EPS decreased from
$3.25 in Q2 2023 to$2.26 in Q2 2024 - Net income (controlling interest) fell from
$125.3 million to$76.0 million year-over-year for Q2
The divergence between GAAP and Economic earnings is notable and warrants further investigation. While the company's focus on alternative strategies and private markets appears to be paying off, the decline in GAAP earnings could be a red flag for some investors. The substantial share repurchases may be supporting EPS growth, but it's important to monitor whether this is sustainable in the long term.
Overall, AMG's strategic shift towards areas of secular demand and its capital allocation strategy seem to be yielding results, but investors should keep a close eye on the underlying GAAP performance in the coming quarters.
AMG's Q2 2024 results reflect the evolving landscape of the asset management industry. The company's focus on alternative strategies and private markets is a shrewd move, aligning with broader industry trends. This strategic positioning has contributed to positive net client cash flows in Q2, bucking the trend of outflows seen in many traditional asset managers.
Key market insights:
- The shift towards alternative investments continues, with AMG benefiting from increased demand in private markets and liquid alternatives
- AMG's AUM growth to
$701.0 billion indicates resilience in a challenging market environment - The company's ability to generate positive cash flows suggests strong client confidence and product relevance
However, it's important to note that the asset management industry remains highly competitive and subject to market volatility. AMG's strategy of investing in areas of secular demand is sound, but execution will be crucial. The company's emphasis on capital allocation, including investments in new and existing Affiliates, as well as seed capital, demonstrates a proactive approach to growth.
Looking ahead, AMG's differentiated business profile, with a significant contribution from alternative strategies, could provide a competitive edge. However, investors should monitor how this translates into sustained GAAP earnings growth and long-term shareholder value creation. The market will likely focus on AMG's ability to continue attracting and retaining assets in high-growth areas while managing costs and maintaining profitability.
Company reports EPS of
- Net income (controlling interest) of
$226 million , Economic Net Income (controlling interest) of$343 million in the first half of the year - Economic Earnings per share of
$10.06 in the first half of the year, increased17% year-over-year - Positive net client cash flows in the second quarter, driven by continued strength in private markets fundraising
- Repurchased
$327 million in common stock, bringing total share repurchases to$477 million in the first half of the year
WEST PALM BEACH, Fla., July 29, 2024 (GLOBE NEWSWIRE) -- AMG, a strategic partner to leading independent investment management firms globally, today reported its financial and operating results for the second quarter and six months ended June 30, 2024.
Jay C. Horgen, President and Chief Executive Officer of AMG, said:
“AMG reported Economic Earnings per share of
“AMG's focus on investing in areas of secular demand has enhanced the long-term growth prospects of our business and positions us to capitalize on the current market environment. With alternative strategies across private markets and liquid alternatives meaningfully contributing to AMG’s earnings, our business profile is differentiated in our industry. Looking ahead, we see increasing opportunities to invest for growth, in both new and existing Affiliates, to further evolve our business toward these areas.
“Disciplined capital allocation is fundamental to our strategy, and by deploying our capital to the areas of highest growth and return, we can create meaningful incremental value over time. Over the past five years, we have allocated approximately
| FINANCIAL HIGHLIGHTS | Three Months Ended | Six Months Ended | ||||||||||||||
| (in millions, except as noted and per share data) | 6/30/2023 | 6/30/2024 | 6/30/2023 | 6/30/2024 | ||||||||||||
| Operating Performance Measures | ||||||||||||||||
| AUM (at period end, in billions) | $ | 673.9 | $ | 701.0 | $ | 673.9 | $ | 701.0 | ||||||||
| Average AUM (in billions) | 668.9 | 693.1 | 664.7 | 686.5 | ||||||||||||
| Net client cash flows (in billions) | (10.5 | ) | 0.9 | (13.7 | ) | (2.9 | ) | |||||||||
| Aggregate fees | 1,003.1 | 1,098.1 | 2,508.2 | 2,569.7 | ||||||||||||
| Financial Performance Measures | ||||||||||||||||
| Net income (controlling interest) | $ | 125.3 | $ | 76.0 | $ | 259.8 | $ | 225.8 | ||||||||
| Earnings per share (diluted)(1) | 3.25 | 2.26 | 6.74 | 6.49 | ||||||||||||
| Supplemental Performance Measures(2) | ||||||||||||||||
| Adjusted EBITDA (controlling interest) | $ | 214.3 | $ | 217.5 | $ | 431.1 | $ | 477.3 | ||||||||
| Economic net income (controlling interest) | 167.3 | 155.9 | 325.4 | 342.6 | ||||||||||||
| Economic earnings per share | 4.45 | 4.67 | 8.63 | 10.06 | ||||||||||||
For additional information on our Supplemental Performance Measures, including reconciliations to GAAP, see the Financial Tables and Notes.
Capital Management
During the second 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 a diverse array of 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 June 30, 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 13747210. 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) | |||||||||||||||||||
| BY STRATEGY - QUARTER TO DATE | Alternatives | Global Equities | U.S. Equities | Multi-Asset & Fixed Income | Total | ||||||||||||||
| AUM, March 31, 2024 | $ | 248.7 | $ | 192.0 | $ | 149.8 | $ | 108.9 | $ | 699.4 | |||||||||
| Client cash inflows and commitments | 13.2 | 5.1 | 4.7 | 5.9 | 28.9 | ||||||||||||||
| Client cash outflows | (6.9 | ) | (8.9 | ) | (7.1 | ) | (5.1 | ) | (28.0 | ) | |||||||||
| Net client cash flows | 6.3 | (3.8 | ) | (2.4 | ) | 0.8 | 0.9 | ||||||||||||
| New investments | 0.7 | — | — | — | 0.7 | ||||||||||||||
| Market changes | (0.9 | ) | 1.6 | (1.2 | ) | 1.7 | 1.2 | ||||||||||||
| Foreign exchange | 0.1 | (0.2 | ) | (0.2 | ) | (0.0 | ) | (0.3 | ) | ||||||||||
| Realizations and distributions (net) | (0.6 | ) | (0.1 | ) | (0.0 | ) | (0.1 | ) | (0.8 | ) | |||||||||
| Other | 2.3 | (3.1 | ) | 0.6 | 0.1 | (0.1 | ) | ||||||||||||
| AUM, June 30, 2024 | $ | 256.6 | $ | 186.4 | $ | 146.6 | $ | 111.4 | $ | 701.0 | |||||||||
| BY STRATEGY - YEAR TO DATE | Alternatives | Global Equities | U.S. Equities | Multi-Asset & Fixed Income | Total | ||||||||||||||
| AUM, December 31, 2023 | $ | 238.8 | $ | 186.6 | $ | 142.8 | $ | 104.5 | $ | 672.7 | |||||||||
| Client cash inflows and commitments | 22.4 | 9.8 | 9.6 | 12.3 | 54.1 | ||||||||||||||
| Client cash outflows | (11.5 | ) | (18.3 | ) | (17.5 | ) | (9.7 | ) | (57.0 | ) | |||||||||
| Net client cash flows | 10.9 | (8.5 | ) | (7.9 | ) | 2.6 | (2.9 | ) | |||||||||||
| New investments | 0.7 | — | — | — | 0.7 | ||||||||||||||
| Market changes | 6.6 | 12.6 | 11.8 | 4.7 | 35.7 | ||||||||||||||
| Foreign exchange | (0.4 | ) | (1.3 | ) | (0.5 | ) | (0.3 | ) | (2.5 | ) | |||||||||
| Realizations and distributions (net) | (2.6 | ) | (0.1 | ) | (0.0 | ) | (0.1 | ) | (2.8 | ) | |||||||||
| Other | 2.6 | (2.9 | ) | 0.4 | 0.0 | 0.1 | |||||||||||||
| AUM, June 30, 2024 | $ | 256.6 | $ | 186.4 | $ | 146.6 | $ | 111.4 | $ | 701.0 | |||||||||
| BY CLIENT TYPE - QUARTER TO DATE | Institutional | Retail | High Net Worth | Total | |||||||||||
| AUM, March 31, 2024 | $ | 369.6 | $ | 202.8 | $ | 127.0 | $ | 699.4 | |||||||
| Client cash inflows and commitments | 14.8 | 9.4 | 4.7 | 28.9 | |||||||||||
| Client cash outflows | (10.7 | ) | (11.4 | ) | (5.9 | ) | (28.0 | ) | |||||||
| Net client cash flows | 4.1 | (2.0 | ) | (1.2 | ) | 0.9 | |||||||||
| New investments | 0.5 | — | 0.2 | 0.7 | |||||||||||
| Market changes | (0.2 | ) | 0.3 | 1.1 | 1.2 | ||||||||||
| Foreign exchange | (0.3 | ) | 0.1 | (0.1 | ) | (0.3 | ) | ||||||||
| Realizations and distributions (net) | (0.7 | ) | (0.1 | ) | (0.0 | ) | (0.8 | ) | |||||||
| Other | (3.3 | ) | 0.3 | 2.9 | (0.1 | ) | |||||||||
| AUM, June 30, 2024 | $ | 369.7 | $ | 201.4 | $ | 129.9 | $ | 701.0 | |||||||
| BY CLIENT TYPE - YEAR TO DATE | Institutional | Retail | High Net Worth | Total | |||||||||||
| AUM, December 31, 2023 | $ | 354.9 | $ | 196.0 | $ | 121.8 | $ | 672.7 | |||||||
| Client cash inflows and commitments | 25.1 | 17.8 | 11.2 | 54.1 | |||||||||||
| Client cash outflows | (20.0 | ) | (26.0 | ) | (11.0 | ) | (57.0 | ) | |||||||
| Net client cash flows | 5.1 | (8.2 | ) | 0.2 | (2.9 | ) | |||||||||
| New investments | 0.5 | — | 0.2 | 0.7 | |||||||||||
| Market changes | 16.7 | 13.8 | 5.2 | 35.7 | |||||||||||
| Foreign exchange | (1.6 | ) | (0.5 | ) | (0.4 | ) | (2.5 | ) | |||||||
| Realizations and distributions (net) | (2.6 | ) | (0.1 | ) | (0.1 | ) | (2.8 | ) | |||||||
| Other | (3.3 | ) | 0.4 | 3.0 | 0.1 | ||||||||||
| AUM, June 30, 2024 | $ | 369.7 | $ | 201.4 | $ | 129.9 | $ | 701.0 | |||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||
| Three Months Ended | |||||||
| (in millions, except per share data) | 6/30/2023 | 6/30/2024 | |||||
| Consolidated revenue | $ | 512.5 | $ | 500.3 | |||
| Consolidated expenses: | |||||||
| Compensation and related expenses | 228.9 | 215.3 | |||||
| Selling, general and administrative | 85.2 | 89.4 | |||||
| Intangible amortization and impairments | 12.5 | 7.3 | |||||
| Interest expense | 30.9 | 33.5 | |||||
| Depreciation and other amortization | 3.3 | 3.1 | |||||
| Other expenses (net) | 13.8 | 10.8 | |||||
| Total consolidated expenses | 374.6 | 359.4 | |||||
| Equity method income (net)(3) | 55.8 | 18.1 | |||||
| Investment and other income | 26.5 | 19.3 | |||||
| Income before income taxes | 220.2 | 178.3 | |||||
| Income tax expense | 32.8 | 43.3 | |||||
| Net income | 187.4 | 135.0 | |||||
| Net income (non-controlling interests) | (62.1 | ) | (59.0 | ) | |||
| Net income (controlling interest) | $ | 125.3 | $ | 76.0 | |||
| Average shares outstanding (basic) | 35.9 | 31.5 | |||||
| Average shares outstanding (diluted) | 42.1 | 35.3 | |||||
| Earnings per share (basic) | $ | 3.49 | $ | 2.42 | |||
| Earnings per share (diluted)(1) | $ | 3.25 | $ | 2.26 | |||
| RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(2) | |||||||
| Three Months Ended | |||||||
| (in millions, except per share data) | 6/30/2023 | 6/30/2024 | |||||
| Net income (controlling interest) | $ | 125.3 | $ | 76.0 | |||
| Intangible amortization and impairments | 29.4 | 65.6 | |||||
| Intangible-related deferred taxes | 15.0 | 14.7 | |||||
| Affiliate Transactions | (1.1 | ) | — | ||||
| Other economic items | (1.3 | ) | (0.4 | ) | |||
| Economic net income (controlling interest) | $ | 167.3 | $ | 155.9 | |||
| Average shares outstanding (adjusted diluted) | 37.6 | 33.4 | |||||
| Economic earnings per share | $ | 4.45 | $ | 4.67 | |||
| Net income (controlling interest) | $ | 125.3 | $ | 76.0 | |||
| Interest expense | 30.9 | 33.5 | |||||
| Income taxes | 31.6 | 42.3 | |||||
| Intangible amortization and impairments | 29.4 | 65.6 | |||||
| Affiliate Transactions | (1.4 | ) | — | ||||
| Other items | (1.5 | ) | 0.1 | ||||
| Adjusted EBITDA (controlling interest) | $ | 214.3 | $ | 217.5 | |||
See Notes for additional information.
| CONSOLIDATED STATEMENTS OF INCOME | |||||||
| Six Months Ended | |||||||
| (in millions, except per share data) | 6/30/2023 | 6/30/2024 | |||||
| Consolidated revenue | $ | 1,029.9 | $ | 1,000.3 | |||
| Consolidated expenses: | |||||||
| Compensation and related expenses | 451.2 | 455.7 | |||||
| Selling, general and administrative | 182.3 | 181.1 | |||||
| Intangible amortization and impairments | 25.0 | 14.5 | |||||
| Interest expense | 61.3 | 63.4 | |||||
| Depreciation and other amortization | 7.0 | 6.1 | |||||
| Other expenses (net) | 28.3 | 19.9 | |||||
| Total consolidated expenses | 755.1 | 740.7 | |||||
| Equity method income (net)(3) | 114.5 | 135.7 | |||||
| Investment and other income | 64.3 | 37.2 | |||||
| Income before income taxes | 453.6 | 432.5 | |||||
| Income tax expense | 77.7 | 98.7 | |||||
| Net income | 375.9 | 333.8 | |||||
| Net income (non-controlling interests) | (116.1 | ) | (108.0 | ) | |||
| Net income (controlling interest) | $ | 259.8 | $ | 225.8 | |||
| Average shares outstanding (basic) | 35.9 | 32.1 | |||||
| Average shares outstanding (diluted) | 40.2 | 36.0 | |||||
| Earnings per share (basic) | $ | 7.23 | $ | 7.02 | |||
| Earnings per share (diluted)(1) | $ | 6.74 | $ | 6.49 | |||
| RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(2) | |||||||
| Six Months Ended | |||||||
| (in millions, except per share data) | 6/30/2023 | 6/30/2024 | |||||
| Net income (controlling interest) | $ | 259.8 | $ | 225.8 | |||
| Intangible amortization and impairments | 58.8 | 91.2 | |||||
| Intangible-related deferred taxes | 29.8 | 30.9 | |||||
| Affiliate Transactions | (17.4 | ) | — | ||||
| Other economic items | (5.6 | ) | (5.3 | ) | |||
| Economic net income (controlling interest) | $ | 325.4 | $ | 342.6 | |||
| Average shares outstanding (adjusted diluted) | 37.7 | 34.0 | |||||
| Economic earnings per share | $ | 8.63 | $ | 10.06 | |||
| Net income (controlling interest) | $ | 259.8 | $ | 225.8 | |||
| Interest expense | 61.4 | 63.4 | |||||
| Income taxes | 74.1 | 99.7 | |||||
| Intangible amortization and impairments | 58.8 | 91.2 | |||||
| Affiliate Transactions | (23.0 | ) | — | ||||
| Other items | 0.0 | (2.8 | ) | ||||
| Adjusted EBITDA (controlling interest) | $ | 431.1 | $ | 477.3 | |||
See Notes for additional information.
| CONSOLIDATED BALANCE SHEETS | |||||||
| Period Ended | |||||||
| (in millions) | 12/31/2023 | 6/30/2024 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 813.6 | $ | 865.5 | |||
| Receivables | 368.4 | 457.2 | |||||
| Investments in marketable securities | 461.0 | 167.3 | |||||
| Goodwill | 2,523.6 | 2,516.1 | |||||
| Acquired client relationships (net) | 1,812.4 | 1,795.6 | |||||
| Equity method investments in Affiliates (net) | 2,288.5 | 2,161.6 | |||||
| Fixed assets (net) | 67.3 | 62.8 | |||||
| Other investments | 480.9 | 530.3 | |||||
| Other assets | 243.9 | 288.6 | |||||
| Total assets | $ | 9,059.6 | $ | 8,845.0 | |||
| Liabilities and Equity | |||||||
| Payables and accrued liabilities | $ | 628.5 | $ | 637.3 | |||
| Debt | 2,537.5 | 2,525.2 | |||||
| Deferred income tax liability (net) | 463.8 | 499.1 | |||||
| Other liabilities | 466.3 | 529.7 | |||||
| Total liabilities | 4,096.1 | 4,191.3 | |||||
| Redeemable non-controlling interests | 393.4 | 391.0 | |||||
| Equity: | |||||||
| Common stock | 0.6 | 0.6 | |||||
| Additional paid-in capital | 741.4 | 712.8 | |||||
| Accumulated other comprehensive loss | (167.6 | ) | (163.7 | ) | |||
| Retained earnings | 6,389.6 | 6,614.7 | |||||
| 6,964.0 | 7,164.4 | ||||||
| Less: treasury stock, at cost | (3,376.1 | ) | (3,833.5 | ) | |||
| Total stockholders’ equity | 3,587.9 | 3,330.9 | |||||
| Non-controlling interests | 982.2 | 931.8 | |||||
| Total equity | 4,570.1 | 4,262.7 | |||||
| Total liabilities and equity | $ | 9,059.6 | $ | 8,845.0 | |||
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 | Six Months Ended | |||||||||||||||
| (in millions) | 6/30/2023 | 6/30/2024 | 6/30/2023 | 6/30/2024 | ||||||||||||
| Numerator | ||||||||||||||||
| Net income (controlling interest) | $ | 125.3 | $ | 76.0 | $ | 259.8 | $ | 225.8 | ||||||||
| Income from hypothetical settlement of Redeemable non-controlling interests, net of taxes | 8.2 | 0.3 | 4.5 | 0.7 | ||||||||||||
| Interest expense on junior convertible securities, net of taxes | 3.4 | 3.4 | 6.7 | 6.7 | ||||||||||||
| Net income (controlling interest), as adjusted | $ | 136.9 | $ | 79.7 | $ | 271.0 | $ | 233.2 | ||||||||
| Denominator | ||||||||||||||||
| Average shares outstanding (basic) | 35.9 | 31.5 | 35.9 | 32.1 | ||||||||||||
| Effect of dilutive instruments: | ||||||||||||||||
| Stock options and restricted stock units | 1.7 | 1.9 | 1.8 | 1.9 | ||||||||||||
| Hypothetical issuance of shares to settle Redeemable non-controlling interests | 2.8 | 0.2 | 0.8 | 0.3 | ||||||||||||
| Junior convertible securities | 1.7 | 1.7 | 1.7 | 1.7 | ||||||||||||
| Average shares outstanding (diluted) | 42.1 | 35.3 | 40.2 | 36.0 | ||||||||||||
| (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 | Six Months Ended | |||||||||||||||
| (in millions) | 6/30/2023 | 6/30/2024 | 6/30/2023 | 6/30/2024 | ||||||||||||
| Average shares outstanding (diluted) | 42.1 | 35.3 | 40.2 | 36.0 | ||||||||||||
| Hypothetical issuance of shares to settle Redeemable non-controlling interests | (2.8 | ) | (0.2 | ) | (0.8 | ) | (0.3 | ) | ||||||||
| Junior convertible securities | (1.7 | ) | (1.7 | ) | (1.7 | ) | (1.7 | ) | ||||||||
| Average shares outstanding (adjusted diluted) | 37.6 | 33.4 | 37.7 | 34.0 | ||||||||||||
| (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 | Six Months Ended | |||||||||||||||
| (in millions) | 6/30/2023 | 6/30/2024 | 6/30/2023 | 6/30/2024 | ||||||||||||
| Equity method earnings | $ | 76.7 | $ | 78.9 | $ | 156.3 | $ | 217.3 | ||||||||
| Equity method intangible amortization and impairments | (20.9 | ) | (60.8 | ) | (41.8 | ) | (81.6 | ) | ||||||||
| Equity method income (net) | $ | 55.8 | $ | 18.1 | $ | 114.5 | $ | 135.7 | ||||||||
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.
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 & Media Relations:
Patricia Figueroa
+1 (617) 747-3300
ir@amg.com
pr@amg.com
FAQ
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