AMG Reports Financial and Operating Results for the Third Quarter and Nine Months Ended September 30, 2024
AMG reported strong Q3 2024 financial results with Economic Earnings per share of $4.82, showing an 18% year-over-year increase. The company achieved Net income of $124 million and Economic Net Income of $153 million. Alternative strategies significantly contributed to earnings, with dedicated private markets Affiliates raising approximately $7 billion in the quarter. The company repurchased $103 million in common stock during Q3, bringing year-to-date repurchases to $580 million. AMG also issued $400 million in senior notes, extending average debt duration to over 20 years.
AMG ha riportato forti risultati finanziari nel terzo trimestre del 2024, con un utile economico per azione di $4,82, che segna un aumento del 18% rispetto all'anno precedente. L'azienda ha raggiunto un utile netto di $124 milioni e un utile netto economico di $153 milioni. Le strategie alternative hanno contribuito significativamente agli utili, con gli Affiliati dei mercati privati che hanno raccolto circa $7 miliardi nel trimestre. L'azienda ha riacquistato $103 milioni di azioni ordinarie durante il terzo trimestre, portando il totale degli riacquisti dall'inizio dell'anno a $580 milioni. AMG ha inoltre emesso $400 milioni in note senior, estendendo la durata media del debito a oltre 20 anni.
AMG reportó sólidos resultados financieros en el tercer trimestre de 2024, con ganancias económicas por acción de $4,82, lo que representa un aumento del 18% en comparación con el año anterior. La compañía logró ingresos netos de $124 millones y ingresos netos económicos de $153 millones. Las estrategias alternativas contribuyeron significativamente a las ganancias, con los afiliados de mercados privados que recaudaron aproximadamente $7 mil millones en el trimestre. La empresa recompró $103 millones en acciones comunes durante el tercer trimestre, llevando el total de recompras en lo que va del año a $580 millones. AMG también emitió $400 millones en notas senior, extendiendo la duración promedio de la deuda a más de 20 años.
AMG는 2024년 3분기에 강력한 재무 결과를 보고했으며, 주당 경제 이익이 $4.82로 전년 대비 18% 증가했습니다. 회사는 순이익이 $1억 2천 4백만 달러와 경제 순이익이 $1억 5천 3백만 달러를 달성했습니다. 대안 전략이 수익에 크게 기여했으며, 전용 사모 시장의 제휴사들이 분기 동안 약 70억 달러를 모집했습니다. 회사는 3분기 동안 1억 3백만 달러의 보통주를 재매입하여 연초부터 재매입 총액을 5억 8천만 달러로 늘렸습니다. 또한 AMG는 4억 달러의 선순위 노트를 발행하여 평균 채무 기간을 20년 이상으로 연장했습니다.
AMG a annoncé de solides résultats financiers pour le troisième trimestre de 2024, avec un bénéfice économique par action de 4,82 $, ce qui représente une augmentation de 18 % par rapport à l'année précédente. La société a réalisé un revenu net de 124 millions $ et un revenu net économique de 153 millions $. Les stratégies alternatives ont contribué de manière significative aux bénéfices, les filiales dédiées aux marchés privés ayant levé environ 7 milliards $ au cours du trimestre. La société a racheté 103 millions $ d'actions ordinaires au cours du troisième trimestre, portant le total des rachats depuis le début de l'année à 580 millions $. AMG a également émis 400 millions $ de titres seniors, prolongeant la durée moyenne de sa dette à plus de 20 ans.
AMG berichtete über starke Finanzzahlen im dritten Quartal 2024, mit wirtschaftlichen Erträgen pro Aktie von 4,82 $, was einem Anstieg von 18 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte Nettoeinkommen von 124 Millionen $ und wirtschaftliches Nettoeinkommen von 153 Millionen $. Alternative Strategien trugen erheblich zum Gewinn bei, wobei dedizierte private Marktpartner im Quartal etwa 7 Milliarden $ einwarben. Das Unternehmen hat im dritten Quartal 103 Millionen $ an Stammaktien zurückgekauft, was die Rückkäufe seit Jahresbeginn auf 580 Millionen $ anhebt. AMG gab außerdem 400 Millionen $ in nachrangigen Anleihen aus, womit die durchschnittliche Laufzeit der Schulden auf über 20 Jahre verlängert wurde.
- Economic EPS grew 18% year-over-year to $4.82
- Private markets Affiliates raised $7 billion in Q3
- Year-to-date share repurchases reached $580 million
- Net client cash outflows improved from -$9.4B to -$2.8B year-over-year
- AUM increased to $728.4B from $635.8B year-over-year
- Net income decreased from $217M to $123.6M year-over-year
- Diluted EPS declined from $5.48 to $3.78 year-over-year
- Continued net client cash outflows of -$2.8B in Q3
Insights
AMG's Q3 2024 results demonstrate strong financial performance with notable highlights. Economic EPS grew
The balance sheet position improved with a
AMG's strategic pivot toward alternative investments and private markets positions them well in the current market environment. The successful fundraising of
The improvement in net client cash flows, though still negative, suggests stabilizing investor sentiment. The company's focus on expanding its alternatives platform and wealth management solutions indicates a forward-thinking approach to capturing growth in high-demand sectors. The extended debt maturity profile provides significant financial flexibility for future strategic investments and acquisitions.
Company reports EPS of
- Net income (controlling interest) of
$124 million , Economic Net Income (controlling interest) of$153 million - Economic Earnings per share of
$4.82 for the quarter, increased18% year-over-year - Repurchased
$103 million in common stock, bringing year-to-date share repurchases to$580 million
WEST PALM BEACH, Fla., Nov. 04, 2024 (GLOBE NEWSWIRE) -- AMG, a strategic partner to leading independent investment management firms globally, today reported its financial and operating results for the third quarter and nine months ended September 30, 2024.
Jay C. Horgen, President and Chief Executive Officer of AMG, said:
“AMG delivered strong results in the third quarter, including year-over-year growth of
“Our growth strategy continues to drive the evolution of our business mix toward secular growth areas, with alternative strategies meaningfully, and increasingly, contributing to AMG’s earnings. AMG’s dedicated private markets Affiliates raised approximately
“Our excellent capital position was further strengthened through the issuance of
| FINANCIAL HIGHLIGHTS | Three Months Ended | Nine Months Ended | |||||||||||||
| (in millions, except as noted and per share data) | 9/30/2023 | 9/30/2024 | 9/30/2023 | 9/30/2024 | |||||||||||
| Operating Performance Measures | |||||||||||||||
| AUM (at period end, in billions) | $ | 635.8 | $ | 728.4 | $ | 635.8 | $ | 728.4 | |||||||
| Average AUM (in billions) | 663.8 | 711.7 | 664.4 | 694.9 | |||||||||||
| Net client cash flows (in billions) | (9.4 | ) | (2.8 | ) | (23.1 | ) | (5.6 | ) | |||||||
| Aggregate fees | 997.5 | 1,157.1 | 3,505.7 | 3,726.8 | |||||||||||
| Financial Performance Measures | |||||||||||||||
| Net income (controlling interest) | $ | 217.0 | $ | 123.6 | $ | 476.8 | $ | 349.5 | |||||||
| Earnings per share (diluted)(1) | 5.48 | 3.78 | 12.28 | 10.25 | |||||||||||
| Supplemental Performance Measures(2) | |||||||||||||||
| Adjusted EBITDA (controlling interest) | $ | 208.4 | $ | 214.1 | $ | 639.6 | $ | 691.4 | |||||||
| Economic net income (controlling interest) | 149.5 | 153.2 | 474.9 | 495.8 | |||||||||||
| Economic earnings per share | 4.08 | 4.82 | 12.72 | 14.90 | |||||||||||
For additional information on our Supplemental Performance Measures, including reconciliations to GAAP, see the Financial Tables and Notes.
Capital Management
During the third 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 September 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 13749048. 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, June 30, 2024 | $ | 256.6 | $ | 186.4 | $ | 146.6 | $ | 111.4 | $ | 701.0 | |||||
| Client cash inflows and commitments | 14.3 | 3.9 | 4.7 | 4.4 | 27.3 | ||||||||||
| Client cash outflows | (6.9 | ) | (10.2 | ) | (8.4 | ) | (4.6 | ) | (30.1 | ) | |||||
| Net client cash flows | 7.4 | (6.3 | ) | (3.7 | ) | (0.2 | ) | (2.8 | ) | ||||||
| New investments* | — | — | — | 0.7 | 0.7 | ||||||||||
| Market changes | 1.1 | 11.2 | 8.3 | 3.6 | 24.2 | ||||||||||
| Foreign exchange | 2.8 | 3.0 | 0.4 | 0.5 | 6.7 | ||||||||||
| Realizations and distributions (net) | (1.3 | ) | (0.0 | ) | (0.0 | ) | (0.1 | ) | (1.4 | ) | |||||
| Other | (0.1 | ) | 0.0 | 0.0 | 0.1 | — | |||||||||
| AUM, September 30, 2024 | $ | 266.5 | $ | 194.3 | $ | 151.6 | $ | 116.0 | $ | 728.4 | |||||
| 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 | 36.7 | 13.6 | 14.3 | 16.8 | 81.4 | ||||||||||
| Client cash outflows | (18.4 | ) | (28.4 | ) | (25.9 | ) | (14.3 | ) | (87.0 | ) | |||||
| Net client cash flows | 18.3 | (14.8 | ) | (11.6 | ) | 2.5 | (5.6 | ) | |||||||
| New investments | 0.7 | — | — | 0.7 | 1.4 | ||||||||||
| Market changes | 7.7 | 23.8 | 20.1 | 8.3 | 59.9 | ||||||||||
| Foreign exchange | 2.4 | 1.8 | (0.1 | ) | 0.2 | 4.3 | |||||||||
| Realizations and distributions (net) | (3.9 | ) | (0.1 | ) | (0.1 | ) | (0.2 | ) | (4.3 | ) | |||||
| Other | 2.5 | (3.0 | ) | 0.5 | 0.0 | 0.0 | |||||||||
| AUM, September 30, 2024 | $ | 266.5 | $ | 194.3 | $ | 151.6 | $ | 116.0 | $ | 728.4 | |||||
| BY CLIENT TYPE - QUARTER TO DATE | Institutional | Retail | High Net Worth | Total | ||||||||
| AUM, June 30, 2024 | $ | 369.7 | $ | 201.4 | $ | 129.9 | $ | 701.0 | ||||
| Client cash inflows and commitments | 11.7 | 8.5 | 7.1 | 27.3 | ||||||||
| Client cash outflows | (11.7 | ) | (13.2 | ) | (5.2 | ) | (30.1 | ) | ||||
| Net client cash flows | (0.0 | ) | (4.7 | ) | 1.9 | (2.8 | ) | |||||
| New investments* | — | — | 0.7 | 0.7 | ||||||||
| Market changes | 9.2 | 9.4 | 5.6 | 24.2 | ||||||||
| Foreign exchange | 3.6 | 2.9 | 0.2 | 6.7 | ||||||||
| Realizations and distributions (net) | (1.3 | ) | (0.1 | ) | (0.0 | ) | (1.4 | ) | ||||
| Other | (6.1 | ) | (0.4 | ) | 6.5 | — | ||||||
| AUM, September 30, 2024 | $ | 375.1 | $ | 208.5 | $ | 144.8 | $ | 728.4 | ||||
| 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 | 36.8 | 26.3 | 18.3 | 81.4 | ||||||||
| Client cash outflows | (31.7 | ) | (39.1 | ) | (16.2 | ) | (87.0 | ) | ||||
| Net client cash flows | 5.1 | (12.8 | ) | 2.1 | (5.6 | ) | ||||||
| New investments | 0.5 | — | 0.9 | 1.4 | ||||||||
| Market changes | 26.0 | 23.1 | 10.8 | 59.9 | ||||||||
| Foreign exchange | 2.0 | 2.4 | (0.1 | ) | 4.3 | |||||||
| Realizations and distributions (net) | (3.9 | ) | (0.3 | ) | (0.1 | ) | (4.3 | ) | ||||
| Other | (9.5 | ) | 0.1 | 9.4 | 0.0 | |||||||
| AUM, September 30, 2024 | $ | 375.1 | $ | 208.5 | $ | 144.8 | $ | 728.4 | ||||
__________________________
* Includes assets under management related to a new investment made by an existing Affiliate.
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||
| Three Months Ended | |||||||||
| (in millions, except per share data) | 9/30/2023 | 9/30/2024 | |||||||
| Consolidated revenue | $ | 525.2 | $ | 516.4 | |||||
| Consolidated expenses: | |||||||||
| Compensation and related expenses | 211.8 | 220.8 | |||||||
| Selling, general and administrative | 91.1 | 97.0 | |||||||
| Intangible amortization and impairments | 12.5 | 7.3 | |||||||
| Interest expense | 31.1 | 34.7 | |||||||
| Depreciation and other amortization | 3.0 | 3.3 | |||||||
| Other expenses (net) | 7.9 | 11.6 | |||||||
| Total consolidated expenses | 357.4 | 374.7 | |||||||
| Equity method income (net)(3) | 39.8 | 52.6 | |||||||
| Affiliate Transaction gain(4) | 133.1 | — | |||||||
| Investment and other income | 23.0 | 22.8 | |||||||
| Income before income taxes | 363.7 | 217.1 | |||||||
| Income tax expense | 77.7 | 31.3 | |||||||
| Net income | 286.0 | 185.8 | |||||||
| Net income (non-controlling interests) | (69.0 | ) | (62.2 | ) | |||||
| Net income (controlling interest) | $ | 217.0 | $ | 123.6 | |||||
| Average shares outstanding (basic) | 34.9 | 30.1 | |||||||
| Average shares outstanding (diluted) | 43.4 | 35.0 | |||||||
| Earnings per share (basic) | $ | 6.22 | $ | 4.11 | |||||
| Earnings per share (diluted)(1) | $ | 5.48 | $ | 3.78 | |||||
| RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(2) | |||||||||
| Three Months Ended | |||||||||
| (in millions, except per share data) | 9/30/2023 | 9/30/2024 | |||||||
| Net income (controlling interest) | $ | 217.0 | $ | 123.6 | |||||
| Intangible amortization and impairments | 29.8 | 27.5 | |||||||
| Intangible-related deferred taxes | 14.7 | 15.6 | |||||||
| Affiliate Transactions(4) | (104.7 | ) | — | ||||||
| Other economic items | (7.3 | ) | (13.5 | ) | |||||
| Economic net income (controlling interest) | $ | 149.5 | $ | 153.2 | |||||
| Average shares outstanding (adjusted diluted) | 36.6 | 31.8 | |||||||
| Economic earnings per share | $ | 4.08 | $ | 4.82 | |||||
| Net income (controlling interest) | $ | 217.0 | $ | 123.6 | |||||
| Interest expense | 31.1 | 34.7 | |||||||
| Income taxes | 76.6 | 33.3 | |||||||
| Intangible amortization and impairments | 29.8 | 27.5 | |||||||
| Affiliate Transactions(4) | (139.6 | ) | — | ||||||
| Other items | (6.5 | ) | (5.0 | ) | |||||
| Adjusted EBITDA (controlling interest) | $ | 208.4 | $ | 214.1 | |||||
See Notes for additional information.
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||
| Nine Months Ended | |||||||||
| (in millions, except per share data) | 9/30/2023 | 9/30/2024 | |||||||
| Consolidated revenue | $ | 1,555.2 | $ | 1,516.6 | |||||
| Consolidated expenses: | |||||||||
| Compensation and related expenses | 663.0 | 676.5 | |||||||
| Selling, general and administrative | 273.4 | 278.1 | |||||||
| Intangible amortization and impairments | 37.5 | 21.8 | |||||||
| Interest expense | 92.4 | 98.1 | |||||||
| Depreciation and other amortization | 10.0 | 9.4 | |||||||
| Other expenses (net) | 36.2 | 31.5 | |||||||
| Total consolidated expenses | 1,112.5 | 1,115.4 | |||||||
| Equity method income (net)(3) | 154.3 | 188.3 | |||||||
| Affiliate Transaction gain(4) | 133.1 | — | |||||||
| Investment and other income | 87.2 | 60.0 | |||||||
| Income before income taxes | 817.3 | 649.5 | |||||||
| Income tax expense | 155.4 | 130.0 | |||||||
| Net income | 661.9 | 519.5 | |||||||
| Net income (non-controlling interests) | (185.1 | ) | (170.0 | ) | |||||
| Net income (controlling interest) | $ | 476.8 | $ | 349.5 | |||||
| Average shares outstanding (basic) | 35.6 | 31.4 | |||||||
| Average shares outstanding (diluted) | 42.9 | 35.2 | |||||||
| Earnings per share (basic) | $ | 13.41 | $ | 11.11 | |||||
| Earnings per share (diluted)(1) | $ | 12.28 | $ | 10.25 | |||||
| RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(2) | |||||||||
| Nine Months Ended | |||||||||
| (in millions, except per share data) | 9/30/2023 | 9/30/2024 | |||||||
| Net income (controlling interest) | $ | 476.8 | $ | 349.5 | |||||
| Intangible amortization and impairments | 88.6 | 118.7 | |||||||
| Intangible-related deferred taxes | 44.6 | 46.6 | |||||||
| Affiliate Transactions(4) | (122.1 | ) | — | ||||||
| Other economic items | (13.0 | ) | (19.0 | ) | |||||
| Economic net income (controlling interest) | $ | 474.9 | $ | 495.8 | |||||
| Average shares outstanding (adjusted diluted) | 37.3 | 33.3 | |||||||
| Economic earnings per share | $ | 12.72 | $ | 14.90 | |||||
| Net income (controlling interest) | $ | 476.8 | $ | 349.5 | |||||
| Interest expense | 92.4 | 98.1 | |||||||
| Income taxes | 150.7 | 133.0 | |||||||
| Intangible amortization and impairments | 88.6 | 118.7 | |||||||
| Affiliate Transactions(4) | (162.7 | ) | — | ||||||
| Other items | (6.2 | ) | (7.9 | ) | |||||
| Adjusted EBITDA (controlling interest) | $ | 639.6 | $ | 691.4 | |||||
See Notes for additional information.
| CONSOLIDATED BALANCE SHEETS | |||||||||
| Period Ended | |||||||||
| (in millions) | 12/31/2023 | 9/30/2024 | |||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 813.6 | $ | 1,010.7 | |||||
| Receivables | 368.4 | 457.1 | |||||||
| Investments in marketable securities | 461.0 | 66.1 | |||||||
| Goodwill | 2,523.6 | 2,532.0 | |||||||
| Acquired client relationships (net) | 1,812.4 | 1,807.1 | |||||||
| Equity method investments in Affiliates (net) | 2,288.5 | 2,148.4 | |||||||
| Fixed assets (net) | 67.3 | 61.0 | |||||||
| Other investments | 480.9 | 532.8 | |||||||
| Other assets | 243.9 | 287.8 | |||||||
| Total assets | $ | 9,059.6 | $ | 8,903.0 | |||||
| Liabilities and Equity | |||||||||
| Payables and accrued liabilities | $ | 628.5 | $ | 625.7 | |||||
| Debt | 2,537.5 | 2,619.7 | |||||||
| Deferred income tax liability (net) | 463.8 | 522.0 | |||||||
| Other liabilities | 466.3 | 464.5 | |||||||
| Total liabilities | 4,096.1 | 4,231.9 | |||||||
| Redeemable non-controlling interests | 393.4 | 397.1 | |||||||
| Equity: | |||||||||
| Common stock | 0.6 | 0.6 | |||||||
| Additional paid-in capital | 741.4 | 711.3 | |||||||
| Accumulated other comprehensive loss | (167.6 | ) | (139.2 | ) | |||||
| Retained earnings | 6,389.6 | 6,738.1 | |||||||
| 6,964.0 | 7,310.8 | ||||||||
| Less: treasury stock, at cost | (3,376.1 | ) | (3,994.5 | ) | |||||
| Total stockholders’ equity | 3,587.9 | 3,316.3 | |||||||
| Non-controlling interests | 982.2 | 957.7 | |||||||
| Total equity | 4,570.1 | 4,274.0 | |||||||
| Total liabilities and equity | $ | 9,059.6 | $ | 8,903.0 | |||||
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 | Nine Months Ended | |||||||||||||
| (in millions) | 9/30/2023 | 9/30/2024 | 9/30/2023 | 9/30/2024 | ||||||||||
| Numerator | ||||||||||||||
| Net income (controlling interest) | $ | 217.0 | $ | 123.6 | $ | 476.8 | $ | 349.5 | ||||||
| Income from hypothetical settlement of Redeemable non-controlling interests, net of taxes | 17.1 | 5.2 | 39.4 | 1.0 | ||||||||||
| Interest expense on junior convertible securities, net of taxes | 3.4 | 3.4 | 10.1 | 10.1 | ||||||||||
| Net income (controlling interest), as adjusted | $ | 237.5 | $ | 132.2 | $ | 526.3 | $ | 360.6 | ||||||
| Denominator | ||||||||||||||
| Average shares outstanding (basic) | 34.9 | 30.1 | 35.6 | 31.4 | ||||||||||
| Effect of dilutive instruments: | ||||||||||||||
| Stock options and restricted stock units | 1.7 | 1.7 | 1.7 | 1.9 | ||||||||||
| Hypothetical issuance of shares to settle Redeemable non-controlling interests | 5.1 | 1.5 | 3.9 | 0.2 | ||||||||||
| Junior convertible securities | 1.7 | 1.7 | 1.7 | 1.7 | ||||||||||
| Average shares outstanding (diluted) | 43.4 | 35.0 | 42.9 | 35.2 | ||||||||||
| (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 | Nine Months Ended | |||||||||||||
| (in millions) | 9/30/2023 | 9/30/2024 | 9/30/2023 | 9/30/2024 | ||||||||||
| Average shares outstanding (diluted) | 43.4 | 35.0 | 42.9 | 35.2 | ||||||||||
| Hypothetical issuance of shares to settle Redeemable non-controlling interests | (5.1 | ) | (1.5 | ) | (3.9 | ) | (0.2 | ) | ||||||
| Junior convertible securities | (1.7 | ) | (1.7 | ) | (1.7 | ) | (1.7 | ) | ||||||
| Average shares outstanding (adjusted diluted) | 36.6 | 31.8 | 37.3 | 33.3 | ||||||||||
| (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 | Nine Months Ended | |||||||||||||||||
| (in millions) | 9/30/2023 | 9/30/2024 | 9/30/2023 | 9/30/2024 | ||||||||||||||
| Equity method earnings | $ | 61.0 | $ | 75.3 | $ | 217.3 | $ | 292.6 | ||||||||||
| Equity method intangible amortization and impairments | (21.2 | ) | (22.7 | ) | (63.0 | ) | (104.3 | ) | ||||||||||
| Equity method income (net) | $ | 39.8 | $ | 52.6 | $ | 154.3 | $ | 188.3 | ||||||||||
| (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 | Nine Months Ended | |||||||||||||||
| (in millions) | 9/30/2023 | 9/30/2024 | 9/30/2023 | 9/30/2024 | ||||||||||||
| Affiliate Transaction gain | $ | 133.1 | $ | — | $ | 133.1 | $ | — | ||||||||
| Investment and other income - Realized gains on EQT shares | 6.5 | — | 29.6 | — | ||||||||||||
| Affiliate Transactions, pre-tax | 139.6 | — | 162.7 | — | ||||||||||||
| Income taxes | (34.9 | ) | — | (40.6 | ) | — | ||||||||||
| Affiliate Transactions, after-tax | $ | 104.7 | $ | — | $ | 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 & Media Relations: | Patricia Figueroa |
| +1 (617) 747-3300 | |
| ir@amg.com | |
| pr@amg.com |
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