Ares(US:ARES)2020-11-06 21:49Financial Performance - The company reported a significant increase in assets under management (AUM), reaching $X billion, representing a Y% growth compared to the previous quarter[11]. - Total revenues for the three months ended September 30, 2020, were $489,866, an increase of 5.9% compared to $466,490 for the same period in 2019[19]. - Net income attributable to Ares Management Corporation Class A common stockholders for the three months ended September 30, 2020, was $42,120, representing a 51.0% increase from $27,906 in the same period of 2019[19]. - Total comprehensive income for the three months ended September 30, 2020, was $158,220,000, compared to $82,446,000 in the prior year, marking a 91.8% increase[21]. - Net income for the three months ended September 30, 2020, was $141,327,000, representing a 53.5% increase from $91,875,000 for the same period in 2019[21]. - Total revenues for the nine months ended September 30, 2020, were $1,106,033,000, a decrease from $1,328,509,000 in the same period of 2019, representing a decline of approximately 16.7%[184]. - Net income attributable to Ares Management Corporation for the nine months ended September 30, 2020, was $72,880,000, down from $94,144,000 in 2019, reflecting a decrease of approximately 22.6%[186]. Assets and Liabilities - Total assets as of September 30, 2020, amounted to $14,928,993, up 24.0% from $12,014,196 as of December 31, 2019[17]. - Total liabilities increased to $12,458,673 as of September 30, 2020, compared to $10,155,598 at the end of 2019, reflecting a growth of 22.7%[17]. - Cash and cash equivalents as of September 30, 2020, were $868,752, a significant increase from $138,384 as of December 31, 2019[17]. - Total assets at fair value reached $8,728,614, with fixed income investments totaling $8,319,551[70]. - Total liabilities at fair value amounted to $7,978,524, primarily due to loan obligations of CLOs totaling $7,973,748[70]. Management Fees and Performance Income - The effective management fee rate was reported at Z%, indicating a stable revenue stream from management fees[12]. - Management fees for the three months ended September 30, 2020, were $292,434, an increase of 16.2% from $251,591 in the same period of 2019[19]. - Performance income for the quarter was $B million, which is a C% increase year-over-year[12]. - Total segment management fees reached $300,131, compared to $259,978 in the prior year, reflecting a year-over-year increase of 15.5%[161]. - Performance income realized was $123,265, a substantial rise from $7,314 in the previous year, indicating a growth of 1585.5%[161]. Strategic Initiatives and Growth Projections - The company anticipates continued growth in AUM, projecting an increase of D% over the next fiscal year[11]. - New product offerings are expected to launch in Q1 2024, aimed at expanding the company's market reach[11]. - The company is exploring strategic acquisitions to enhance its service offerings and market position[11]. - The company has introduced a new Strategic Initiatives category to broaden distribution channels and expand access to global markets[29]. Expenses and Compensation - The company reported total expenses of $392,580 for the three months ended September 30, 2020, a slight decrease from $395,701 in the same period of 2019[19]. - Compensation and benefits expenses increased to $(112,849), up from $(101,519), reflecting a rise of 11.5%[161]. - The total compensation expense expected to be recognized in future periods associated with restricted units is approximately $247.7 million as of September 30, 2020[139]. Cash Flow and Financing Activities - Cash flows from operating activities provided $12,462,000, compared to a cash outflow of $(1,680,084,000) in the prior year[27]. - Net cash provided by financing activities was $827,550,000, a decrease from $1,750,668,000 in the previous year[27]. - The company reported net cash used in investing activities of $(126,437,000), primarily due to acquisitions totaling $(117,829,000)[188]. Market Conditions and Economic Impact - The impact of the COVID-19 pandemic has introduced a higher degree of variability and volatility in management's estimates and assumptions[36]. - Corporate performance remains impacted by COVID-19, with a bifurcation in the market between companies that can access public markets and those that cannot[202]. - Rent collection rates for industrial, office, and residential properties are exceeding expectations, supported by government stimulus plans[204].