AMG Reports Financial and Operating Results for the Third Quarter and Nine Months Ended September 30, 2024
Company reports EPS of $3.78, Economic EPS of $4.82 in the third quarter of 2024
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, increased 18% 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 18% in Economic Earnings per share, reflecting the ongoing momentum in our business and the positive impact of our disciplined capital allocation strategy.
"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 $7 billion in the quarter, reflecting the strength of the ongoing demand for our Affiliates' specialized strategies. During the quarter, we continued to invest AMG's capital and resources in and alongside our Affiliates to enhance their growth, including by collaborating to develop additional innovative alternative solutions, across both private markets and liquid alternatives, for the U.S. wealth marketplace. 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. As we form partnerships with additional new Affiliates in areas of secular demand and continue to invest in existing Affiliates, including by leveraging our capital formation capabilities, we expect to accelerate the evolution of AMG's business profile toward alternatives and enhance our long-term growth prospects.
"Our excellent capital position was further strengthened through the issuance of $400 million in senior notes in the quarter, extending the average duration of our debt to more than 20 years. Given our unique partnership model, proven strategic capabilities, and ample financial flexibility, we see increasing opportunities to invest for growth in both new and existing Affiliates, and create meaningful additional shareholder value over time."
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 $103 million in common stock, bringing total year-to-date repurchases to approximately $580 million. The Company also announced a third-quarter cash dividend of $0.01 per share of common stock, payable November 29, 2024 to stockholders of record as of the close of business on November 14, 2024.
About AMGAMG (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 $728 billion across a diverse range of private markets, liquid alternative, and differentiated long-only investment strategies. For more information, please visit the Company's website at www.amg.com.
Conference Call, Replay, and Presentation InformationA 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)
