Associated Capital Group(AC) - 2024 Q3 - Quarterly Report

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$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].