Core Insights - AssetMark announced the recipients of its 2024 Practice Excellence Awards, recognizing financial advisory firms for operational excellence and technology adoption [1] - The awards highlight the importance of digital tools in enhancing client service and operational efficiency within the financial advisory sector [1] Group 1: Awards and Recognition - The 2024 Operations Excellence Award was given to firms such as Personal Benefit Financial and B. Riley Wealth Management for accuracy in client requests [1] - The 2024 Digital Practice Award recognized firms like Financial Independence, LLC and GTX Wealth for their overall adoption of AssetMark's digital tools [1] - The 2024 Green Planet Award was awarded to firms including ERSI Wealth Management and Beyond Wealth Management Group for their adoption of eDelivery [1] Group 2: Company Overview - AssetMark operates a wealth management platform that supports independent financial advisors and their clients, providing flexible solutions that enhance client engagement and drive efficiency [2] - The company, founded in 1996 and based in Concord, California, has over 1,000 employees and serves more than 9,200 financial advisors and 257,000 investor households [2] - As of March 31, 2024, AssetMark reported $116.9 billion in platform assets [2]

CONCORD, Calif., June 03, 2024 (GLOBE NEWSWIRE) -- AssetMark (NYSE:AMK), a leading wealth management platform for financial advisors, today announced the recipients of its 2024 Practice Excellence Awards. These awards, now in their seventh year, recognize financial advisory firms that have made significant achievements in the areas of operational excellence and technology adoption at AssetMark. This year's honorees are: 2024 Operations Excellence Award – Accuracy of Submitted Client RequestsSharla Rountree, ...

PHILADELPHIA, May 30, 2024 /PRNewswire/ -- Kaskela Law LLC announces that it is investigating AssetMark Financial Holdings, Inc. (NYSE: AMK) ("AssetMark") on behalf of the company's investors.On April 25, 2024, AssetMark announced that it had agreed to be acquired by private equity firm GTCR at a price of $35.25 per share in cash.  Following the closing of the proposed transaction, AssetMark's shareholders will be cashed out of their investment position and the company's shares will no longer be publicly tr ...

Core Viewpoint - Kaskela Law LLC is investigating AssetMark Financial Holdings, Inc. regarding the acquisition by GTCR at a price of $35.25 per share, questioning whether this price adequately reflects the company's value and if there were any breaches of fiduciary duties by the company's officers or directors [1][2]. Group 1: Acquisition Details - AssetMark announced an agreement to be acquired by GTCR for $35.25 per share in cash on April 25, 2024 [1]. - Following the acquisition, AssetMark's shareholders will be cashed out and the company's shares will cease to be publicly traded [1]. Group 2: Investigation Focus - The investigation aims to assess if the buyout price is sufficient and if there were any violations of securities laws or fiduciary duties by AssetMark's management [2]. - Prior to the acquisition announcement, at least one analyst had a price target of $41.00 per share for AssetMark, indicating a potential undervaluation in the buyout offer [2]. Group 3: Legal Representation - Kaskela Law LLC specializes in representing investors in cases of securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis [3].

CONCORD, Calif., May 14, 2024 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE:AMK) released its "AssetMark Monthly Knowledge" Report today. Company results for the month of April 2024 include: Platform assets of $113.7 billion at the end of April, up 17.3% year-over-year.Net flows were $696 million in the month of April, up 60.7% year-over-year.AssetMark Trust Company client cash was $2.86 billion, down 0.3% year-over-year.Number of households increased 6.0% year-over-year to 261,430 at the end ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2024 show significant net income growth and a pending merger agreement with GTCR [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and stockholders' equity increased as of March 31, 2024, driven by higher cash balances and retained earnings Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $247,626 | $217,680 | | Total current assets | $322,093 | $291,111 | | Goodwill | $487,909 | $487,909 | | **Total assets** | **$1,656,826** | **$1,620,563** | | **Liabilities & Equity** | | | | Total current liabilities | $69,247 | $75,842 | | Total liabilities | $347,312 | $353,181 | | Total stockholders' equity | $1,309,514 | $1,267,382 | | **Total liabilities and stockholders' equity** | **$1,656,826** | **$1,620,563** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 2024 net income rose significantly due to revenue growth and the non-recurrence of a prior-year SEC settlement accrual Q1 2024 vs Q1 2023 Income Statement (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenue | $190,266 | $170,298 | | Total operating expenses | $138,576 | $124,148 | | Other (income) expense, net | ($332) | $19,865 | | Income before income taxes | $49,728 | $23,938 | | Net income | $37,964 | $17,222 | | Diluted EPS | $0.50 | $0.23 | - The significant increase in net income was largely due to a **$20.0 million accrual for an SEC settlement** recorded in 'Other (income) expense, net' during Q1 2023, which did not recur in Q1 2024[72](index=72&type=chunk)[163](index=163&type=chunk)[165](index=165&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased in Q1 2024 due to higher net income, while investing cash use grew and financing activities were nil Cash Flow Summary (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $47,415 | $39,126 | | Net cash used in investing activities | ($17,469) | ($13,932) | | Net cash used in financing activities | $0 | ($25,000) | | **Net change in cash** | **$29,946** | **$194** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, goodwill stability, debt, and disclose the significant subsequent merger agreement with GTCR - On April 25, 2024, the Company entered into a merger agreement with GTCR Everest Borrower, LLC, valued at approximately **$2.62 billion**[81](index=81&type=chunk) - In September 2023, the company settled with the SEC regarding a previously disclosed matter, paying a civil penalty of **$9.5 million** and disgorgement and prejudgment interest of **$8.8 million**, with a **$20 million** accrual recorded in Q1 2023[72](index=72&type=chunk)[194](index=194&type=chunk) - The company's goodwill balance remained unchanged at **$487.9 million** as of March 31, 2024, and a qualitative analysis determined it was not impaired[37](index=37&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q1 2024 revenue and asset growth, the pending GTCR merger, and improved non-GAAP metrics [Overview and Merger Agreement](index=19&type=section&id=Overview%20and%20Merger%20Agreement) The company agreed to be acquired by an affiliate of GTCR for $35.25 per share, pending regulatory approvals - On April 25, 2024, the company entered into a merger agreement with GTCR Everest Borrower, LLC, where stockholders will receive **$35.25 per share in cash**[87](index=87&type=chunk)[88](index=88&type=chunk) - The company's majority stockholder, HIIHL, has already provided the required stockholder approval for the merger via written consent[89](index=89&type=chunk)[91](index=91&type=chunk) [Financial and Operational Highlights](index=20&type=section&id=Financial%20and%20Operational%20Highlights) The company reported double-digit year-over-year growth in revenue, net income, platform assets, and engaged advisers in Q1 2024 Q1 2024 Financial Highlights (YoY) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $190.3M | $170.3M | +11.7% | | Net Income | $38.0M | $17.2M | +120.9% | | Adjusted EBITDA | $65.9M | $58.8M | +12.1% | Asset and Adviser Growth (as of March 31) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Platform Assets | $116.9B | $96.2B | +21.5% | | Engaged Advisers | 3,208 | 2,976 | +7.8% | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Revenue growth was driven by higher asset-based fees, while a significant increase in net income was aided by a non-recurring prior-year expense Revenue Breakdown (in thousands) | Revenue Type | Q1 2024 | Q1 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Asset-based | $149,984 | $131,039 | $18,945 | 14.5% | | Spread-based | $30,093 | $31,999 | ($1,906) | (6.0)% | | Subscription-based | $4,252 | $3,544 | $708 | 20.0% | | **Total Revenue** | **$190,266** | **$170,298** | **$19,968** | **11.7%** | - Asset-based expenses increased by **$7.4 million (19.8%)** due to higher platform assets[156](index=156&type=chunk) - Employee compensation rose by **$3.1 million (6.6%)** due to increased salaries and related expenses to support growth[158](index=158&type=chunk) [Non-GAAP Financial Metrics](index=24&type=section&id=Non-GAAP%20Financial%20Metrics) Adjusted EBITDA and Adjusted Net Income both grew in Q1 2024, excluding items like share-based compensation and a prior-year SEC accrual Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $37,964 | $17,222 | | Adjustments (Taxes, Interest, D&A) | $19,557 | $15,440 | | **EBITDA** | **$57,921** | **$32,662** | | Share-based compensation | $4,168 | $3,822 | | Reorganization and integration costs | $3,841 | $1,909 | | Accrual for SEC settlement | $0 | $20,000 | | Other adjustments | ($23) | $405 | | **Adjusted EBITDA** | **$65,907** | **$58,788** | Adjusted Net Income Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $37,964 | $17,222 | | Acquisition-related amortization | $2,180 | $2,174 | | Expense adjustments | $3,853 | $22,216 | | Share-based compensation | $4,168 | $3,822 | | Other (income) expense, net | ($35) | $88 | | Tax effect of adjustments | ($2,910) | ($5,821) | | **Adjusted net income** | **$45,220** | **$39,701** | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash from operations and its credit facility, with cash and equivalents of $247.6 million - As of March 31, 2024, the company had cash and cash equivalents of **$247.6 million**[166](index=166&type=chunk) - The company has a 2022 Credit Agreement which includes a **$375.0 million** revolving credit facility and a term loan, with an outstanding balance of **$93.8 million** as of March 31, 2024[169](index=169&type=chunk)[171](index=171&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risk from asset values, interest rate risk from client cash programs, and variable-rate debt - A **1% decrease** in the aggregate value of assets on the platform would have caused pre-tax income for the quarter to decline by approximately **$1.3 million**[181](index=181&type=chunk) - A **100 basis point** change in short-term interest rates would result in an approximate **$22.4 million** annual change in income before taxes from the client cash program[184](index=184&type=chunk) - A **100 basis point** increase in the interest rate on the 2022 Credit Agreement would decrease annual income before taxes by approximately **$0.9 million**[185](index=185&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the quarter-end with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective[188](index=188&type=chunk) - There were no material changes in the company's internal control over financial reporting during the first quarter of 2024[189](index=189&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material impact from ongoing legal proceedings, referencing a previously disclosed and settled SEC matter - In September 2023, the company settled a matter with the SEC, paying a **$9.5 million** civil penalty and **$8.8 million** in disgorgement and prejudgment interest[194](index=194&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from its pending merger, market volatility, competition, regulation, cybersecurity, and its controlling stockholder [Risks Related to the Merger](index=37&type=section&id=Risks%20Related%20to%20the%20Merger) The pending merger with GTCR creates uncertainty, operational restrictions, and risks of non-completion or potential litigation - The company is subject to business uncertainties and contractual restrictions while the merger is pending, which could harm business relationships and financial results[195](index=195&type=chunk) - Failure to complete the merger could adversely affect the business and stock price, and the company may be required to pay a termination fee of approximately **$80.8 million** under certain circumstances[196](index=196&type=chunk)[198](index=198&type=chunk) [Risks Related to Business and Regulation](index=38&type=section&id=Risks%20Related%20to%20Business%20and%20Regulation) Business risks include revenue volatility from market conditions, intense competition, and compliance with extensive government regulations - Revenue may fluctuate significantly due to market conditions, as a majority of revenue is asset-based[202](index=202&type=chunk)[210](index=210&type=chunk) - The company operates in an intensely competitive industry and derives nearly all revenue from the financial advisory sector, making it vulnerable to industry downturns[205](index=205&type=chunk)[207](index=207&type=chunk) - The business is subject to extensive and evolving government regulation in the U.S., and failure to comply could result in fines, sanctions, or revocation of registrations[297](index=297&type=chunk)[305](index=305&type=chunk) [Risks Related to IP, Data, and Cybersecurity](index=46&type=section&id=Risks%20Related%20to%20IP,%20Data,%20and%20Cybersecurity) The company faces significant threats from cyber-attacks, data breaches, evolving AI risks, and complex data privacy regulations - The company is exposed to data and cybersecurity risks that could result in data breaches, service interruptions, and significant liability due to the sensitive financial information it stores[255](index=255&type=chunk) - The integration and use of Artificial Intelligence (AI) exposes the company to risks including potential biases, cybersecurity threats, and a rapidly evolving regulatory landscape[284](index=284&type=chunk)[285](index=285&type=chunk) - The company must comply with numerous, evolving data protection regulations like California's CCPA/CPRA and Europe's GDPR, which imposes significant compliance costs[262](index=262&type=chunk)[266](index=266&type=chunk)[272](index=272&type=chunk) [Risks Related to Controlling Stockholder and Ownership](index=52&type=section&id=Risks%20Related%20to%20Controlling%20Stockholder%20and%20Ownership) The PRC-based controlling stockholder introduces risks related to foreign laws, CFIUS review, and exemptions from certain NYSE governance rules - The controlling stockholder, HTSC, is subject to PRC laws and regulations that may influence decisions and require PRC regulatory approval for certain corporate actions[286](index=286&type=chunk)[288](index=288&type=chunk) - Future acquisitions may be subject to review by the Committee on Foreign Investment in the United States (CFIUS), which could delay or block transactions[293](index=293&type=chunk) - The company is a "controlled company" under NYSE rules due to HTSC's majority ownership, exempting it from requirements like having a majority of independent directors[331](index=331&type=chunk) [Other Information (Items 2-6)](index=62&type=section&id=Other%20Information%20(Items%202-6)) This section confirms no unregistered equity sales, defaults, or new 10b5-1 plans, and lists the exhibits filed with the report - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2024[350](index=350&type=chunk) - The sections for Unregistered Sales of Equity Securities, Defaults Upon Senior Securities, and Mine Safety Disclosures are not applicable[349](index=349&type=chunk)

AssetMark Financial (AMK) came out with quarterly earnings of $0.60 per share, missing the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.64%. A quarter ago, it was expected that this financial services company would post earnings of $0.57 per share when it actually produced earnings of $0.59, delivering a surprise of 3.51%.Over the last four q ...

EXHIBIT 99.1 AssetMark Reports $116.9B Platform Assets for First Quarter 2024 CONCORD, Calif., May 1, 2024, (GLOBE NEWSWIRE) — AssetMark Financial Holdings, Inc. (NYSE: AMK) today announced financial results for the quarter ended March 31, 2024. First Quarter 2024 Financial and Operational Highlights • Net income for the quarter was $38.0 million, or $0.51 per share. • Adjusted net income for the quarter was $45.2 million, or $0.60 per share, on total revenue of $190.3 million. • Adjusted EBITDA for the qua ...

CONCORD, Calif., April 10, 2024 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE:AMK) released its "AssetMark Monthly Knowledge" Report today. Company results for the month of March 2024 include: Platform assets of $116.9 billion at the end of March, up 21.5% year-over-year.Net flows were $833 million in the month of March, up 12.0% year-over-year.AssetMark Trust Company client cash was $3.17 billion, down 0.6% year-over-year.Number of households increased 5.5% year-over-year to 257,162 at the e ...

AssetMark Financial (AMK) shares rallied 6.6% in the last trading session to close at $36.82. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.4% loss over the past four weeks.The release of the latest job report has made investors bullish on the economy. The job report, which has come out better than expected, reflects continued strength in the economy. Also, it confirms that the labor market remains resili ...