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]

Group 1 - Air Canada reached a tentative four-year deal with the Air Line Pilots Association (ALPA), representing over 5,200 pilots, avoiding a potential strike that could have disrupted operations [1][2] - The terms of the deal will remain confidential until a ratification vote by union members and approval by Air Canada's Board of Directors, expected to occur within the next month [1][2] - The new deal acknowledges the contributions and professionalism of pilots and aims to provide a framework for the carrier's growth [2] Group 2 - Without a deal, either side could have issued a 72-hour strike or lockout notice, which could have started as early as last Sunday [2] - Air Canada shares on the Toronto Stock Exchange (TSX) have declined by 15% this year [2]

Group 1 - Air Canada is preparing to shut down most of its operations due to a potential strike or lockout resulting from a labor dispute with its pilots [1] - The airline has warned that if no agreement is reached with the Air Line Pilots Association (ALPA) by Sunday, either side can issue a 72-hour strike or lockout notice, leading to a wind-down plan that would suspend all flights by September 18 [1] - The union represents over 5,200 pilots for both Air Canada and Air Canada Rouge [2] Group 2 - Air Canada CEO Michael Rousseau stated that the ALPA's salary demands exceed average Canadian wage increases, and a shutdown is likely unless the union moderates its demands [3] - The ALPA chair accused Air Canada of not addressing key issues such as fair compensation and quality-of-life improvements during negotiations [3] - Air Canada is negotiating with other carriers to provide seats for customers if a strike occurs, and passengers with canceled flights will receive full refunds and can reschedule trips without charge [3] Group 3 - Air Canada shares fell nearly 2% on the Toronto Stock Exchange (TSX) [4]

Group 1 - Associated Capital Group, Inc. has set October 18, 2024, as the registration date for its 2024 Shareholder Designated Charitable Contribution (SDCC) of $0.20 per share for all registered Class A and Class B shareholders [1][2] - The total estimated contribution based on 21.4 million outstanding shares will be approximately $4.3 million, with forms provided to registered holders to designate recognized 501(c)(3) charitable organizations by December 6, 2024 [2] - Since becoming a public company, shareholders of Associated Capital have donated approximately $42 million to over 190 different charities addressing various local, national, and international concerns [2] Group 2 - Associated Capital is a diversified global financial services company based in Greenwich, Connecticut, providing alternative investment management through Gabelli & Company Investment Advisers, Inc. [3] - 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, and Gabelli Principal Strategies Group, LLC, created in December 2015 [3]