Company Information - The company is listed on the New York Stock Exchange under the trading symbol AC[3] - The company is incorporated in Delaware with IRS Employer Identification No. 47-3965991[3] - The address of the principal executive offices is 191 Mason Street, Greenwich, CT 06830[3] Financial Reporting - Associated Capital Group, Inc. announced a preliminary range for its book value per share for the quarter ended March 31, 2025[4] - The press release related to the financial results is filed as Exhibit 99.1[4] - The report was signed by Ian J. McAdams, Chief Financial Officer, on April 7, 2025[8] - The filing is made pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934[4] - The report does not include detailed financial statements or operational results[5] - The information provided is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[5] - The company has not indicated if it is an emerging growth company[3]

Assets Under Management (AUM) - As of December 31, 2024, the company managed approximately $1.25 billion in assets under management (AUM), a decrease from $1.59 billion at December 31, 2023, representing a decline of about 21.6%[26] - The AUM composition includes 80.4% from merger arbitrage ($1.003 billion) and 16.7% from long/short value strategies ($209 million) as of December 31, 2024[26] - Total assets under management (AUM) decreased by 21.6% to $1,248 million as of December 31, 2024, down from $1,591 million in 2023[96] - The company’s revenues are highly correlated to the level of assets under management (AUM) and investment performance[112] Financial Performance - Net income for the year ended December 31, 2024, was $44.3 million, an increase from $37.5 million in 2023, primarily driven by higher dividend income[110] - Total revenues for 2024 were $13.2 million, a 3.9% increase from $12.7 million in 2023[100] - Investment advisory and incentive fees rose to $12.8 million in 2024, compared to $12.3 million in 2023, reflecting a 3.5% increase[101] - Total revenues for 2024 increased to $13,175,000 from $12,683,000 in 2023, representing a growth of 3.9%[154] - Net income attributable to Associated Capital Group, Inc.'s shareholders rose to $44,328,000 in 2024, compared to $37,451,000 in 2023, marking an increase of 18.7%[154] - Basic and diluted net income per share increased to $2.08 in 2024 from $1.72 in 2023, reflecting a growth of 20.9%[154] Cash and Investments - Cash and cash equivalents at the end of 2024 totaled $299.6 million, down from $317.5 million in 2023[86] - The company ended 2024 with approximately $864.1 million in cash and investments, providing flexibility for strategic objectives[94] - The company had cash and cash equivalents of $325.7 million at the end of 2024, down from $347.1 million at the end of 2023[112] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $21.4 million in 2024[112] - The company had investments in U.S. Treasury Bills totaling $68.3 million as of December 31, 2024[112] Expenses and Liabilities - Management fee expense increased to $5.9 million in 2024 from $5.4 million in 2023[105] - Total liabilities increased to $36,991,000 in 2024 from $30,719,000 in 2023, an increase of 20.3%[157] - Dividends declared increased to $46,750,000 in 2024 from $4,346,000 in 2023, a significant rise[161] - Net cash provided by operating activities decreased to $26,874,000 in 2024 from $145,075,000 in 2023, a decline of 81.5%[166] - Net cash used in financing activities increased to $59,208,000 in 2024 from $25,039,000 in 2023, an increase of 136.1%[168] Strategic Initiatives - The company is reviewing the launch of new products, including private equity and direct investment funds, to leverage its core strengths in fundamental investing[25] - The company aims to grow its Investment Partnerships advisory operations by introducing new products and expanding internationally[31] - The company plans to pursue partnerships and joint ventures to enhance its product offerings and distribution capabilities, particularly in Asian and European markets[35] - The company has a proprietary portfolio of cash and investments aimed at expanding geographic presence and pursuing strategic acquisitions[29] Regulatory and Compliance - The company is subject to extensive regulations, including the Advisers Act, which imposes fiduciary duties and disclosure obligations on registered investment advisers[41] - The company is subject to EU regulations on OTC derivatives, requiring central clearing and reporting of all derivative contracts[55] - The company is classified as a "smaller reporting company," allowing it to take advantage of certain exemptions from various reporting requirements[59] Competition and Market Position - The company faces intense competition in the alternative asset management industry, competing with larger firms that may have greater resources[36] - The Company’s principal market is in the United States, focusing on alternative investment management[172] Employee and Organizational Structure - As of March 11, 2025, the company had a full-time staff of 24, with 9 in portfolio management, research, and trading, 7 in marketing and shareholder servicing, and 8 in finance, legal, operations, and administration[58] Investment Strategies - The Company primarily earns management fees based on a percentage of assets under management, which directly influences revenue generation[203] - Performance-based advisory fees are typically 15%-20% of investment performance, with a "high water mark" provision requiring recovery of losses before earning fees[205] - The Company charges asset-based advisory fees at a rate of 1%-1.5% per annum, recognized monthly in advance based on the net asset value of clients[205] Other Financial Metrics - The effective tax rate decreased to 15.8% in 2024 from 19.5% in 2023, primarily due to dividends received deductions[108] - Net gains from investments were $42.8 million in 2024, slightly down from $43.0 million in 2023[107] - The Company reported a significant investment income of $150 million from the distribution of GAMCO shares during the Spin-off[174] - As of December 31, 2024, the Company held 699,749 shares of GAMCO Class A common stock, a decrease from 2,386,295 shares in 2023[174]

Financial Results Announcement - Associated Capital Group, Inc. announced a preliminary range for its book value per share for the quarter and year ended December 31, 2024[4] - The press release related to the financial results is filed as Exhibit 99.1 to the Form 8-K[4] Report Details - The report was signed by Ian J. McAdams, Chief Financial Officer, on January 15, 2025[8]

Financial Performance - The company reported fourth quarter revenues of $5.2 million, a decrease from $5.6 million in the same quarter of 2023 [3] - For the full year 2024, revenues increased to $13.2 million from $12.7 million in 2023 [9] - The operating loss before management fee for the fourth quarter was $3.1 million, compared to a loss of $2.5 million in the fourth quarter of 2023 [7][9] - Net income for the fourth quarter was $4.3 million, down from $16.3 million in the prior year [32] - The company reported a net income of $44.3 million for the full year 2024, compared to $37.5 million in 2023 [32] Assets Under Management (AUM) - AUM at the end of 2024 was $1.25 billion, down from $1.59 billion at the end of 2023 [2][11] - The decrease in AUM was attributed to net outflows of $363 million and currency fluctuations, partially offset by market appreciation of $49 million [11] - The merger arbitrage strategy saw significant outflows, particularly from the GAMCO Merger Arbitrage UCITS [11] Investment Strategy and Performance - The company's merger arbitrage strategy generated gross returns of 5.83% for the full year 2024, with net returns of 3.82% [15] - The strategy has historically outperformed 90-day T-Bills, with a consistent record of positive net returns in 38 of the last 40 years [15][16] - The company aims to leverage its research and investment capabilities to pursue acquisitions and broaden its product offerings [21] Shareholder Returns - The company returned $58.6 million to shareholders in 2024 through dividends and share repurchases [5] - Dividends paid in 2024 amounted to $2.20 per share, with a total of $46.8 million distributed [23] - The company repurchased 353,116 Class A shares for $11.8 million during the year [24] Market Context - Worldwide M&A activity reached $3.2 trillion in 2024, a 10% increase from 2023, with the US accounting for approximately $1.4 trillion [18] - The technology sector led M&A activity with $500 billion in deals, a 32% increase from the previous year [18] - Changes in regulatory appointments in the US are expected to facilitate an increase in deal activity [19]

Financial Performance - Associated Capital Group reported fourth quarter revenues of $5.2 million, a decrease from $5.6 million in the same quarter of 2023 [3] - For the full year 2024, revenues increased to $13.2 million from $12.7 million in 2023 [9] - The company experienced an operating loss before management fee of $12.9 million for 2024, compared to $11.5 million in 2023 [9][10] Assets Under Management (AUM) - AUM at the end of 2024 was $1.25 billion, down from $1.59 billion at the end of 2023, reflecting net outflows of $363 million [11] - The decline in AUM was attributed to client reallocations to other asset classes, particularly in the merger arbitrage strategy [11][19] Investment Income - Net investment and other non-operating income for the fourth quarter was $4.4 million, significantly lower than $26.7 million in the prior year [7] - For the full year, net investment income was $71.5 million, up from $63.8 million in 2023, primarily due to higher dividend income from GAMCO [10] Shareholder Returns - The company returned $58.6 million, or $2.72 per share, to shareholders through dividends and share repurchases in 2024 [4][24] - Book value per share at year-end 2024 was $42.14, reflecting a slight increase from $42.11 a year earlier [5][4] Merger Arbitrage Strategy - The merger arbitrage strategy generated gross returns of 5.83% for the full year 2024, outperforming the return on 90-day T-Bills [15][17] - The strategy has a historical record of positive net returns in 38 of the last 40 years [15] M&A Market Overview - Worldwide M&A activity totaled $3.2 trillion in 2024, a 10% increase from 2023, with the US accounting for approximately $1.4 trillion [19] - The technology sector led deal activity with approximately $500 billion, marking a 32% increase compared to 2023 [19] Corporate Strategy - The company plans to leverage its capital for acquisitions and alliances to broaden product offerings and enhance distribution [22] - Associated Capital Group aims to continue repurchasing shares, with 353,116 Class A shares repurchased in 2024 [25][26]

Financial Performance - Net income attributable to Associated Capital Group, Inc.'s shareholders for Q3 2024 was $23.2 million, compared to a net loss of $16,000 in Q3 2023, indicating a significant turnaround [98]. - Total revenues for Q3 2024 were $2.4 million, an increase of 9.1% from $2.2 million in Q3 2023, driven by higher investment advisory and incentive fees [99]. - Investment advisory and incentive fees for Q3 2024 were $2.31 million, up from $2.10 million in Q3 2023, reflecting a growth of approximately 10.1% [98]. - The company reported a net gain from investments of $26.2 million in Q3 2024, compared to a loss of $2.2 million in Q3 2023, highlighting strong performance in its securities portfolio [102]. - Total revenues for the nine months ended September 30, 2024, were $8.0 million, up from $7.0 million in the same period in 2023, with GAMCO International SICAV revenues increasing to $4.0 million from $2.9 million [106]. - Investment gains increased to $42.8 million in Q3 2024 from $21.6 million in Q3 2023, indicating improved performance of the securities portfolio [112]. Assets Under Management (AUM) - Total assets under management (AUM) at the end of Q3 2024 was $1,340 million, down from $1,588 million in Q3 2023, representing a decrease of approximately 15.6% [89]. - Average AUM for Q3 2024 was $1,349 million, down from $1,580 million in Q3 2023, a decline of about 14.6% [89]. - Assets under management (AUM) decreased to $1.3 billion as of September 30, 2024, from $1.6 billion at December 31, 2023, primarily due to investor outflows [116]. - Net investor outflows for the quarter ended September 30, 2024, amounted to $93 million, offset by market appreciation of $60 million [119]. Expenses - Compensation expenses increased to $4.2 million in Q3 2024 from $4.1 million in Q3 2023, primarily due to higher performance-based compensation accruals [102]. - Management fee expense for Q3 2024 was $3.3 million, with no management fee expense recorded in Q3 2023, indicating a shift in compensation structure [103]. - Management fee expense rose to $5.7 million for the nine months ended September 30, 2024, compared to $3.1 million in the prior year, reflecting a higher incentive-based compensation [109]. Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $286.2 million, down from $399.5 million at the end of September 2023 [127]. - Net cash used in operating activities was $45.8 million for the nine months ended September 30, 2024, driven by an increase in trading securities [123]. Shareholder Equity - Total shareholders' equity as of September 30, 2024, was $892.8 million, down from $907.0 million at the end of 2023, largely due to a special dividend of $2 per share declared in September 2024 [96]. - Unrecognized incentive fees as of September 30, 2024, approximated $2.9 million, with no material unrecognized incentive fees reported in the prior year [101]. - Shareholder-designated contributions decreased to $0.4 million for the nine months ended September 30, 2024, compared to $1.6 million in the prior year [114]. Taxation - The effective tax rate for the nine months ended September 30, 2024, was 22.1%, up from 14.3% in the prior year, primarily due to deferred tax benefits from a foreign investment [115]. Legal Matters - The company is not currently subject to any legal proceedings involving claims for damages exceeding 10% of its consolidated assets [132]. - Management believes that potential legal matters are not material to the company's financial condition, operations, or cash flows as of September 30, 2024 [132]. - The condensed consolidated financial statements include necessary provisions for probable and estimable losses related to legal actions [132]. - The company evaluates reasonably possible losses and makes necessary disclosures if material [132].

Financial Results Announcement - Associated Capital Group announced a preliminary range for its book value per share for the quarter ended September 30, 2024[5]. - The press release related to the financial results was filed as Exhibit 99.1 on October 7, 2024[4]. - The report is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[5]. - The Chief Financial Officer, Ian J. McAdams, signed the report on October 7, 2024[8].

Core Insights - Associated Capital Group, Inc. reported financial results for the third quarter of 2024, highlighting a decrease in assets under management (AUM) and an increase in net income compared to the previous year [1][4][5]. Financial Performance - AUM at the end of the quarter was $1.34 billion, down from $1.59 billion a year earlier, reflecting a net outflow of $288 million and currency fluctuations [10][4]. - Total revenues for the third quarter were $2.415 million, an increase from $2.200 million in the same quarter of 2023 [2][5]. - Net income for the quarter was $23.242 million, compared to a loss of $16,000 in the prior year [2][26]. - Net income per share was $1.09, up from $0.00 in the same quarter of 2023 [2][26]. Shareholder Returns - The company returned $45.9 million to shareholders through dividends and share repurchases in the third quarter [1]. - A special cash dividend of $2.00 per share was declared, alongside a semi-annual dividend of $0.10 per share [16][17]. - Since its spin-off in 2015, the company has returned approximately $181.9 million to shareholders through share repurchases and $81.1 million in dividends [18]. Investment Strategy - The company focuses on alternative investment strategies, particularly in merger arbitrage, which generated gross returns of 4.88% for the third quarter [12][13]. - Global M&A activity reached $2.3 trillion in the first nine months of 2024, a 16% increase from the previous year, with the U.S. leading in dealmaking [13]. Operating Expenses - Total operating expenses, excluding management fees, were $6.0 million in the third quarter, up from $5.7 million in the same quarter of 2023 [7][2]. - The management fee for the quarter was $3.3 million, compared to none in the previous year [8][21]. Taxation - The effective tax rate for the quarter was 22.9%, significantly lower than the 60.8% rate in the same quarter of the previous year, which was affected by deferred tax expenses [9][2].

Group 1 - Associated Capital Group, Inc. announced a preliminary range for its third quarter book value of $41.85 to $42.05 per share, excluding a $2 per share special dividend declared in September 2024 [1] - The estimated book values show a decrease from $42.87 at June 30, 2024, and $42.11 at December 31, 2023, but an increase from $41.43 at September 30, 2023 [1] - The company will provide further details on its financial results in November [1] Group 2 - Associated Capital Group, Inc. is a diversified global financial services company based in Greenwich, Connecticut, providing alternative investment management through Gabelli & Company Investment Advisers, Inc. [2] - The company has earmarked proprietary capital for its direct investment business, which includes Gabelli Private Equity Partners, LLC, formed in August 2017 with $150 million of authorized capital [2] - Gabelli Principal Strategies Group, LLC was created in December 2015 to pursue strategic operating initiatives [2]

Group 1 - Associated Capital Group, Inc. declared a special cash dividend of $2.00 per share, totaling approximately $42.4 million, payable on November 4, 2024, to shareholders of record as of October 21, 2024 [1] - Since becoming a public company in 2015, Associated Capital has returned approximately $81.1 million to shareholders through dividends [1] Group 2 - Associated Capital Group, Inc. is a diversified global financial services company based in Greenwich, Connecticut, providing alternative investment management through Gabelli & Company Investment Advisers, Inc. [2] - The company has earmarked proprietary capital for its direct investment business, which includes Gabelli Private Equity Partners, LLC, formed in August 2017 with $150 million of authorized capital [2] - Gabelli Principal Strategies Group, LLC was created in December 2015 to pursue strategic operating initiatives [2]