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Artisan Partners(APAM) - 2024 Q4 - Earnings Call Transcript
2025-02-05 19:00
Financial Data and Key Metrics Changes - In the fourth quarter, revenues rose by 6% sequentially and increased by 19% compared to the same quarter last year [23][26] - Adjusted operating income was up 12% sequentially and 37% year-over-year, driven by revenue growth outpacing operating expense increases [28][29] - Assets under management (AUM) ended at $161 billion, down 4% from the previous quarter but up 7% year-over-year [24][25] Business Line Data and Key Metrics Changes - The fixed income business achieved its tenth consecutive quarter of positive flows, with net inflows of $3.6 billion in 2024 [25][26] - The Denver-based credit team raised $1.7 billion in net inflows, while the Boston-based Emsights Capital Group raised $1.9 billion, collectively managing nearly $15 billion across six strategies [10][11] - 13 out of 25 investment strategies achieved net inflows in 2024, with 10 strategies exceeding $100 million in inflows [7][8] Market Data and Key Metrics Changes - The average AUM for the fourth quarter was up 2% sequentially and 18% year-over-year, while full-year average AUM improved by 15% [25][28] - Approximately 3% of AUM is subject to performance fees, with a weighted average recurring fee rate of 68 basis points for the quarter [27][29] Company Strategy and Development Direction - The company aims to build durable investment franchises by supporting investment talent and focusing on long-term growth [4][20] - There is a commitment to expanding the investment platform, developing existing franchises, and tapping into demand for high-value-added investments [22][33] - The company is strategically managing capacity in its international value strategy to maintain performance [38] Management's Comments on Operating Environment and Future Outlook - Management anticipates moderate strategic moves in asset allocation due to current macroeconomic uncertainties, with a focus on inflation and global market volatility [49][50] - The company is well-positioned to capture opportunities in active management as volatility in markets can benefit their strategies [51][52] Other Important Information - The company declared a quarterly dividend of $0.84 per share and a year-end special dividend of $0.50, totaling a 25% increase in dividends compared to 2023 [31][32] - The balance sheet remains strong with $155 million in seed capital and an unused $100 million revolving credit facility [29][30] Q&A Session Summary Question: Discussion on organic growth rate and fee rate - Management noted that the organic growth and fee rate changes are influenced by foundational assets in fixed income strategies, which have performance-based fees that can lower the overall fee rate [39][40] Question: Seed capital needs and payout rate for 2025 - The payout ratio is expected to remain in the mid-90s range, with some gains on seed capital realized in 2024 and more anticipated in 2025 [42][43] Question: Response to volatility in global and international emerging markets - Management indicated that there is a hesitance in the market due to macroeconomic factors, expecting only moderate strategic moves in asset allocation [49][50]
Artisan Partners(APAM) - 2024 Q4 - Annual Results
2025-02-04 21:27
Assets Under Management (AUM) - Assets Under Management (AUM) at December 31, 2024, was $161.2 billion, a 7% increase from $150.2 billion at December 31, 2023, primarily due to investment returns of $15.9 billion[11][16] - The average AUM for the year ended December 31, 2024, was $160.2 billion, a 15% increase from $139.3 billion in 2023[21] - Artisan Partners' assets under management (AUM) included non-discretionary assets reported at $105 million as of December 31, 2024, up from $78 million in 2023[34] - Total Assets Under Management (AUM) reached $161.208 billion, with significant contributions from various strategies[72] - Ending assets under management decreased to $161,208 million for the three months ended December 31, 2024, down 4.0% from $167,840 million in the previous quarter[55] - Average assets under management for the year ended December 31, 2024, were $160,232 million, compared to $139,321 million in 2023, indicating an increase of about 15.0%[67] Financial Performance - Revenues for the December 2024 quarter were $297.0 million, a 19% increase from $249.0 million in the December 2023 quarter, driven by higher average AUM and a $10.6 million increase in performance fee revenue[12][17] - Operating income for the year ended December 31, 2024, was $366.6 million, a 21% increase from $303.6 million in 2023, with an operating margin of 33.0% compared to 31.1% in 2023[21][23] - Adjusted net income for the December 2024 quarter was $85.2 million, or $1.05 per adjusted share, compared to $62.8 million, or $0.78 per adjusted share, in the December 2023 quarter[20] - GAAP net income for the year ended December 31, 2024, was $259.7 million, or $3.66 per share, up from $222.3 million, or $3.19 per share, in 2023[25] - Adjusted net income for the year ended December 31, 2024, was $287.3 million, or $3.55 per adjusted share, compared to $233.1 million, or $2.89 per adjusted share, in 2023[25] - Operating income for the three months ended December 31, 2024, was $109.1 million, representing a 43.0% increase from $76.4 million in the same quarter of 2023[45] - Net income attributable to Artisan Partners Asset Management Inc. for the three months ended December 31, 2024, was $69.7 million, up from $64.8 million in the same period last year, reflecting an increase of 4.8%[47] - Basic earnings per share for Class A common shares for the three months ended December 31, 2024, were $0.97, compared to $0.92 for the same period in 2023, marking a 5.4% increase[47] Cash Flow and Dividends - Cash and cash equivalents increased to $201.2 million at December 31, 2024, from $141.0 million at December 31, 2023[26] - The company declared a variable quarterly dividend of $0.84 per share and a special dividend of $0.50 per share for the December 2024 quarter[30] - The variable quarterly dividend represents approximately 80% of the cash generated in the December 2024 quarter[30] - The company expects to pay a quarterly dividend of approximately 80% of cash generated from operations, subject to board approval[31] Operating Expenses - Operating expenses for the year ended December 31, 2024, were $745.2 million, an 11% increase from $671.5 million in 2023, primarily due to a $64.7 million increase in compensation and benefits[22] - Total operating expenses for the three months ended December 31, 2024, were $187.9 million, up from $172.6 million in the same period last year, indicating an increase of 8.0%[45] Client Cash Flows - The company reported $3.6 billion in net inflows from its credit-oriented investment franchises in 2024, with nearly $15 billion managed across six different strategies[3][4] - Gross client cash inflows for the year ended December 31, 2024, were $25,650 million, a 19.9% increase from $21,395 million in 2023[55] - Net client cash flows for the year ended December 31, 2024, were $(3,699) million, a 9.2% improvement compared to $(4,076) million in 2023[55] - Gross client cash inflows for the quarter were $7.649 billion, while gross client cash outflows totaled $8.473 billion, resulting in net client cash flows of negative $824 million[58] Investment Performance - The Developing World strategy generated a cumulative return of 157.03% since inception, significantly outperforming the MSCI Emerging Markets Index's cumulative return of 38.83%[6] - The Artisan Sustainable Emerging Markets Strategy reported an AUM of $1,552 million, achieving a 7.50% return[72] - The U.S. Mid-Cap Growth Strategy had an AUM of $20,591 million, with a 1-year return of 16.13%[70] - The Global Opportunities Strategy achieved a 1-year return of 17.49% with an AUM of $12,410 million[70] - The Emerging Markets Debt Opportunities Strategy reported an AUM of $1,024 million, with a return of 10.85%[72] - The China Post-Venture Strategy had a 1-year return of 14.48% with an AUM of $178 million[70] - The Value Income Strategy achieved a return of 25.02% with an AUM of $16 million[70] - The International Value Strategy reported an AUM of $43,911 million, with a 1-year return of 7.77%[70] - The Developing World Strategy had a remarkable 1-year return of 30.04% with an AUM of $4,100 million[72] - The Global Unconstrained Strategy achieved a return of 12.25% with an AUM of $701 million[72] Balance Sheet - Total stockholders' equity rose to $422.0 million at December 31, 2024, compared to $351.4 million at December 31, 2023[28] - Total liabilities rose to $868.8 million as of December 31, 2024, compared to $802.1 million as of December 31, 2023, reflecting an increase of 8.3%[54] - Total assets increased to $1,618.8 million as of December 31, 2024, compared to $1,405.9 million as of December 31, 2023, representing a growth of 15.1%[54]
Artisan Partners Asset Management Inc. Reports 4Q24 and Year Ended December 31, 2024 Results and Quarterly and Special Annual Dividend
Globenewswire· 2025-02-04 21:16
Core Viewpoint - Artisan Partners Asset Management Inc. reported its financial results for the quarter and year ended December 31, 2024, and declared a quarterly and special annual dividend [1]. Financial Results - The Company will discuss its financial results in a conference call scheduled for February 5, 2025, at 1:00 p.m. (Eastern Time) [2]. - The call will be hosted by key executives including the CEO, President, and CFO, with supplemental materials available on the Company's website [2]. Company Overview - Artisan Partners is a global investment management firm that offers a wide range of high value-added investment strategies to sophisticated clients worldwide [3]. - The firm has been focused on attracting experienced investment professionals since its establishment in 1994, managing client assets through autonomous investment teams [3].
Artisan Partners Asset Management Inc. to Announce 4Q24 and Full-Year Results on February 4, 2025
Globenewswire· 2025-01-21 21:16
Group 1 - Artisan Partners Asset Management Inc. will report its fourth quarter and full-year 2024 financial results on February 4, 2025 [1] - A conference call to discuss the results will be hosted by CEO Eric Colson, President Jason Gottlieb, and CFO C.J. Daley on February 5, 2025 [1] - The earnings release and supplemental materials will be available on the investor relations section of artisanpartners.com [1] Group 2 - A live webcast of the conference call will be accessible via the investor relations section of artisanpartners.com [2] - Participants can join the conference call using specific dial-in numbers for the United States and international callers [2] - An audio replay of the conference call will be available shortly after the event and can be accessed until February 12, 2025 [2] Group 3 - Artisan Partners is a global investment management firm offering a range of high value-added investment strategies [3] - The firm has been focused on attracting experienced investment professionals since its establishment in 1994 [3] - Artisan Partners' investment teams manage a diverse array of strategies across multiple asset classes [3]
New Strong Sell Stocks for January 20th
ZACKS· 2025-01-20 12:11
Stocks Added to Zacks Rank 5 (Strong Sell) List - Baidu, Inc (BIDU) is an internet search services company with a Zacks Consensus Estimate for current year earnings revised downward by 8.2% over the last 60 days [1] - Artisan Partners Asset Management Inc (APAM) is an investment management company with a Zacks Consensus Estimate for current year earnings revised downward by 8.9% over the last 60 days [1] - Conagra Brands, Inc (CAG) is a packaged food company with a Zacks Consensus Estimate for current year earnings revised downward by 5% over the last 60 days [2]
Artisan Partners Asset Management Inc. Reports December 2024 Assets Under Management
Globenewswire· 2025-01-10 21:16
Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $161.2 billion as of December 31, 2024, with Artisan Funds and Artisan Global Funds contributing $77.6 billion and separate accounts and other AUM accounting for $83.6 billion [1][2] AUM Breakdown - Artisan Funds distributions not reinvested amounted to approximately $450 million, impacting the December month-end AUM [1] - The AUM by strategy includes: - Global Opportunities: $20.591 billion - U.S. Mid-Cap Growth: $12.952 billion - U.S. Small-Cap Growth: $3.094 billion - International Value: $43.911 billion - Global Value: $28.364 billion [2][3] Additional Information - AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $105.0 million for which Artisan Partners provides investment models to managed account sponsors [4] - Artisan Partners is a global investment management firm established in 1994, focusing on high value-added investment strategies across multiple asset classes [5]
New Strong Buy Stocks for December 11th
ZACKS· 2024-12-11 12:26
Group 1 - Premier, Inc. (PINC) has seen a 5.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - DXP Enterprises, Inc. (DXPE) has experienced a 14.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Peoples Financial Services Corp. (PFIS) has reported a 27.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Colony Bankcorp, Inc. (CBAN) has seen a 3.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Artisan Partners Asset Management Inc. (APAM) has experienced a 3.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]
New Strong Buy Stocks for November 22nd
ZACKS· 2024-11-22 12:05
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:StoneX Group Inc. (SNEX) : This global financial services network provider has seen the Zacks Consensus Estimate for its current year earnings increasing 8.7% over the last 60 days.Packaging Corporation of America (PKG) : This containerboard and corrugated packaging company has seen the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.Artisan Partners Asset Management Inc. (APAM) : This investme ...
Best Income Stocks to Buy for November 22nd
ZACKS· 2024-11-22 09:46
Here is one stock with buy rank and strong income characteristics for investors to consider today, November 22:Artisan Partners Asset Management Inc. (APAM) : This investment management company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.9% the last 60 days.This Zacks Rank #1 company has a dividend yield of 7.0%, compared with the industry average of 2.6%.See the full list of top ranked stocks here. Find more top income stocks with some of our great premium screens. ...
Best Value Stocks to Buy for November 22nd
ZACKS· 2024-11-22 09:41
Group 1: Stock Recommendations - StoneX Group Inc. (SNEX) has a Zacks Rank 1, with a current year earnings estimate increase of 8.7% over the last 60 days, and a P/E ratio of 12.78 compared to 24.65 for the S&P, possessing a Value Score of B [1] - Norwegian Cruise Line Holdings Ltd. (NCLH) also holds a Zacks Rank 1, with a current year earnings estimate increase of 1.9% over the last 60 days, and a P/E ratio of 16.35 compared to 23.70 for the industry, possessing a Value Score of A [2] - Artisan Partners Asset Management Inc. (APAM) carries a Zacks Rank 1, with a current year earnings estimate increase of 3.9% over the last 60 days, and a P/E ratio of 13.43 compared to 15.20 for the industry, possessing a Value Score of B [3]