Financial Performance - Net income for 2024 was $740.6 million, representing an 18% decrease from $906.1 million in 2023, primarily due to a prior year gain from the sale of an equity interest[147]. - The company experienced net client cash flows of negative $13.9 million in 2024, with significant outflows in equity strategies[139]. - Economic net income (controlling interest) decreased by 2% in 2024 to $701.6 million, impacted by increased taxes and interest expenses[149]. - The company reported a 4% increase in Adjusted EBITDA (controlling interest) to $973.1 million in 2024[148]. - Consolidated revenue decreased by $16.9 million or 1% in 2024, primarily due to a $20.3 million or 1% decrease from asset-based fees[152]. - Net income (controlling interest) decreased by $161.3 million or 24% in 2024, primarily due to a pre-tax gain associated with the Veritable Transaction recognized in 2023[173]. - Investment and other income decreased by $39.7 million or 34% in 2024, primarily due to a $35.3 million decrease in net realized and unrealized gains on investments[169]. - Earnings per share (diluted) for 2024 was $15.13, down from $17.42 in 2023[253]. - The Company’s consolidated revenue for 2024 was $2,040.9 million, a decrease of 0.9% from 2023[253]. - Total consolidated expenses for 2024 were $1,507.8 million, reflecting a slight increase from $1,496.6 million in 2023[253]. Assets and Liabilities - As of December 31, 2024, the company's total assets under management reached approximately $707.9 billion, reflecting a 5% increase from $672.7 billion in 2023[132]. - Average assets under management for 2024 were $700.5 billion, a 6% increase from $660.3 billion in 2023[136]. - Total assets decreased from $9,059.6 million in 2023 to $8,830.9 million in 2024, a decline of 2.5%[259]. - Total liabilities increased from $4,096.1 million in 2023 to $4,182.2 million in 2024, an increase of 2.1%[259]. - The company’s equity decreased from $4,570.1 million in 2023 to $4,298.2 million in 2024, a decline of 5.9%[262]. Cash Flow - Operating cash flow for 2024 was $932.1 million, primarily driven by net income of $740.6 million and distributions from equity method investments of $403.9 million[189]. - Investing cash flow for 2024 was $379.1 million, mainly due to $898.1 million from maturities and sales of investment securities[190]. - Financing cash flow for 2024 was a net outflow of $1,175.9 million, primarily due to $709.8 million in common stock repurchases and $400.0 million in senior notes repayment[191]. - Cash flow from operating activities decreased from $1,054.7 million in 2022 to $874.3 million in 2023, with a slight recovery expected to $932.1 million in 2024[267]. - Cash flow from investing activities improved significantly from a negative $109.9 million in 2022 to a positive $264.5 million in 2023, and further to $379.1 million in 2024[267]. - Cash flow used in financing activities was $1,402.9 million in 2022, reduced to $758.3 million in 2023, with an expected increase to $1,175.9 million in 2024[267]. Investments and Affiliates - The company completed a minority investment in NorthBridge Partners, LLC, a private markets manager, on February 6, 2025[133]. - The company anticipates further evolution of its business mix through investments in new and existing Affiliates to capitalize on industry growth trends[139]. - The equity method investments in affiliates (net) balance was $2,246.6 million as of December 31, 2024[248]. - Management recognized a $39.9 million expense to reduce the carrying value of an equity method investment in an affiliate to fair value due to anticipated declines in assets under management[248]. - The company’s investments in affiliates, net of cash acquired, were $291.1 million in 2022, projected to be $294.7 million in 2023, and significantly reduced to $5.9 million in 2024[267]. Debt and Financing - As of December 31, 2024, the carrying value of total debt was $3.4 billion, with a weighted average maturity of 21 years[196]. - The bank leverage ratio as of December 31, 2024, was 0.9x, significantly below the maximum allowed ratio of 3.25x[199]. - The company fully repaid $400.0 million of 2024 senior notes in the first quarter of 2024[200]. - The company issued $400.0 million of 2034 senior unsecured notes in Q3 2024, with a maturity date of August 20, 2034[200]. - The company intends to use the net proceeds from the 2034 senior notes for general corporate purposes, including share repurchases and debt repayment[202]. - As of December 31, 2024, the company had $341.7 million of principal outstanding in junior convertible trust preferred securities maturing in 2037[204]. Tax and Compliance - Income tax expense decreased by $2.7 million or 1% in 2024, with an effective rate of 25.5% compared to 20.9% in 2023[171]. - Unrecognized tax benefits are recorded based on the likelihood of sustaining uncertain tax positions, with related interest and penalties included in income tax expense[319]. - The Company assesses the recoverability of deferred tax assets, considering future taxable income and recent operations, adjusting the valuation allowance as necessary[318]. Shareholder Returns - Share repurchases amounted to $706.0 million, indicating a significant investment in returning capital to shareholders[263]. - The company entered into an equity distribution program with an aggregate sales price of up to $500.0 million, with no sales occurring as of December 31, 2024[206]. Goodwill and Impairment - The company completed its annual qualitative goodwill impairment assessment as of September 30, 2024, with no impairment indicated[219]. - For the year ended December 31, 2024, the company recorded a $39.9 million expense to reduce the carrying value of an Affiliate to fair value[226]. Currency and Interest Rate Sensitivity - As of December 31, 2024, a 1% change in interest rates would have resulted in a $226.1 million net change in the fair value of fixed rate securities[229]. - A 1% change in the pound sterling, Canadian dollar, and Euro to U.S. dollar exchange rates would have resulted in changes to stockholders' equity of $8.4 million, $1.9 million, and $1.5 million, respectively[231]. - For the year ended December 31, 2024, a 1% change in the pound sterling, Canadian dollar, and Euro to U.S. dollar exchange rates would have resulted in annual changes to income before income taxes of $1.2 million, $0.3 million, and $0.0 million, respectively[231].

Affiliated Managers Group, Inc. (NYSE:AMG) Q4 2024 Earnings Conference Call February 6, 2025 8:30 AM ET Company Participants Patricia Figueroa - Head, Investor Relations Jay Horgen - President & Chief Executive Officer Tom Wojcik - Chief Operating Officer Dava Ritchea - Chief Financial Officer Conference Call Participants Trevor Dodds - Jefferies Bill Katz - TD Cowen Operator Greetings and welcome to AMG Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. ...

Q4 2024 Investor Overview AMG: Strategic Partner to Industry-Leading Independent Investment Firms 30+ years of partnering with leading investment specialists 35+ independent Affiliates offering diverse suite of investment products All data as of 12/31/24. 2 Focus on Alternatives: Approximately 50% of AMG Earnings Generated by Alternatives Liquid Alternatives ~$141B AUM Differentiated Long-Only ~$432B AUM Private Markets ~$135B AUM Alternatives include private markets and liquid alternatives strategies. Diff ...

Core Viewpoint - Affiliated Managers Group (AMG) reported quarterly earnings of $6.53 per share, exceeding the Zacks Consensus Estimate of $6.02 per share, but down from $6.86 per share a year ago, indicating an earnings surprise of 8.47% [1][2] Financial Performance - The company posted revenues of $524.2 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.17%, compared to $502.7 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Performance - Affiliated Managers shares have declined approximately 1.4% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.15, with expected revenues of $533.66 million, and for the current fiscal year, the EPS estimate is $22.83 on revenues of $2.19 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Financial - Investment Management industry, to which Affiliated Managers belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could be a useful metric for investors [5]

Financial Performance - AMG reported EPS of $4.92 and Economic EPS of $6.53 for Q4 2024, with full-year EPS of $15.13 and Economic EPS of $21.36[1]. - Economic earnings per share grew by 10% year-over-year, reflecting AMG's strategic evolution and disciplined capital allocation[2]. - The company reported net income of $162.1 million for Q4 2024, down from $196.2 million in Q4 2023[12]. - Consolidated revenue for the year ended December 31, 2023, was $2,057.8 million, a slight increase from $2,040.9 million in 2024[14]. - Net income attributable to controlling interest decreased to $672.9 million in 2023 from $511.6 million in 2024, reflecting a decline of approximately 25%[14]. - Earnings per share (diluted) for 2023 was $17.42, down from $15.13 in 2024, indicating a decrease of about 13.1%[14]. - Adjusted EBITDA for the full year was $973.1 million, compared to $935.7 million in the previous year[5]. - Adjusted EBITDA (controlling interest) rose to $935.7 million in 2023, compared to $973.1 million in 2024, showing a decrease of approximately 3.8%[15]. - Economic net income (controlling interest) was $717.8 million in 2023, slightly down from $701.6 million in 2024, a decline of about 2.4%[15]. Assets and Liabilities - AMG's total assets under management (AUM) increased to approximately $708 billion by the end of 2024, up from $672.7 billion at the end of 2023[7]. - Total assets decreased from $9,059.6 million in 2023 to $8,830.9 million in 2024, a reduction of approximately 2.5%[16]. - Cash and cash equivalents increased to $950.0 million in 2024 from $813.6 million in 2023, representing a growth of about 16.8%[16]. - Total liabilities increased from $4,096.1 million in 2023 to $4,182.2 million in 2024, an increase of about 2.1%[16]. Shareholder Actions - The company repurchased approximately $700 million in common stock, representing about 13% of shares outstanding in 2024[5]. - AMG's fourth-quarter cash dividend was set at $0.01 per share, payable on March 4, 2025[6]. - Average shares outstanding (diluted) decreased from 42.2 million in 2023 to 36.1 million in 2024, a reduction of approximately 14.5%[14]. Market Activity - AMG's private markets Affiliates raised approximately $24 billion in 2024, indicating strong demand for specialized strategies[3]. - AMG announced a partnership with NorthBridge Partners, focusing on industrial logistics real estate, enhancing its private markets participation[4]. - Net client cash flows for the year were negative at $(13.9) billion, with Q4 2024 net client cash flows at $(8.3) billion[5]. Forward-Looking Statements - AMG's forward-looking statements include expectations regarding business performance, financial results, and liquidity[25]. - The company anticipates potential changes in investment performance and growth rates of its Affiliates[25]. - AMG emphasizes the importance of competition for acquisitions in the investment management sector[25]. - The company highlights risks related to the availability of equity and debt financing affecting its operations[25]. - AMG's earnings contributions are influenced by the mix of Affiliate performances[25]. - The company does not undertake any obligation to publicly update forward-looking statements except as required by law[25]. - AMG encourages investors to regularly consult its Investor Relations section for important financial information[26].

Financial Performance - Company reported EPS of $4.92 and Economic EPS of $6.53 for Q4 2024, with full-year EPS of $15.13 and Economic EPS of $21.36 [1][6] - Net income (controlling interest) for Q4 2024 was $162.1 million, down from $196.2 million in Q4 2023 [15] - Full-year net income (controlling interest) decreased to $511.6 million in 2024 from $672.9 million in 2023 [18] Growth Strategy - Company achieved a 10% growth in Economic EPS for 2024 compared to the previous year, attributed to strategic evolution and disciplined capital allocation [2][6] - AMG's private markets Affiliates raised approximately $24 billion in 2024, indicating strong demand for specialized strategies [3] - The company announced a new partnership with NorthBridge Partners, focusing on last-mile logistics, a sector benefiting from the digital economy [4] Assets Under Management (AUM) - AUM increased from $672.7 billion at the end of 2023 to $707.9 billion at the end of 2024 [5][9] - Average AUM rose from $660.3 billion in 2023 to $700.5 billion in 2024 [5] Capital Management - Company repurchased approximately $700 million in common stock in 2024, representing about 13% of shares outstanding [6][8] - A cash dividend of $0.01 per share was announced for Q4 2024, payable in March 2025 [8] Financial Highlights - Consolidated revenue for 2024 was $2,040.9 million, slightly down from $2,057.8 million in 2023 [17] - Total consolidated expenses increased to $1,507.8 million in 2024 from $1,496.6 million in 2023 [17] - Adjusted EBITDA (controlling interest) for 2024 was $973.1 million, up from $935.7 million in 2023 [19]

Company reports EPS of $4.92, Economic EPS of $6.53 in the fourth quarter of 2024EPS of $15.13, Economic EPS of $21.36 for the full year 2024 New partnership with NorthBridge Partners, a private markets manager specializing in industrial logistics real estate assetsNet income (controlling interest) of $512 million, Economic Net Income (controlling interest) of $702 million10% full-year Economic Earnings per share growth reflects AMG’s ongoing strategic evolution and disciplined capital allocation strategyRe ...

AMG invests in NorthBridge, a private markets manager specializing in industrial logistics real estate assets NorthBridge to leverage AMG’s strategic capabilities to enhance its long-term success and continue to build an enduring firm Partnership broadens AMG’s exposure to secular growth areas WEST PALM BEACH, Fla., Feb. 06, 2025 (GLOBE NEWSWIRE) -- AMG, a strategic partner to leading independent investment management firms globally, today announced that it acquired a minority equity interest in NorthBr ...

Conference Call Scheduled for 8:30 a.m. Eastern Time WEST PALM BEACH, Fla., Jan. 31, 2025 (GLOBE NEWSWIRE) -- AMG (NYSE: AMG) will report financial and operating results for the fourth quarter and full year ended December 31, 2024 on Thursday, February 6, 2025. A conference call will be held at 8:30 a.m. Eastern time on the same day. In addition to quarterly results, the conference call may include discussion of management’s expectations of future financial and operating results. Jay C. Horgen, President an ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Affiliated Managers Group (AMG) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they mi ...