Artisan Partners(US:APAM)2025-02-25 22:24Assets Under Management (AUM) - As of December 31, 2024, the company's assets under management (AUM) increased to $161.2 billion, a rise of $11.0 billion or 7% from $150.2 billion at the end of 2023, driven by $15.9 billion in market appreciation, offset by $3.7 billion in net client cash outflows and $1.2 billion in distributions not reinvested [250]. - The average AUM for the year ended December 31, 2024, was $160.2 billion, reflecting a 15.0% increase from $139.3 billion in 2023 [250]. - Total Assets Under Management (AUM) reached $161,208 million [269]. - As of December 31, 2024, total assets under management (AUM) reached $161,208 million, an increase from $150,167 million in 2023, representing a growth of 7.0% [271]. - The retail channel represented 3.3% of total AUM as of December 31, 2024, a decrease from 3.8% in 2023, indicating a trend towards institutional and intermediary channels [271]. - Institutional AUM accounted for 62.2% of total AUM as of December 31, 2024, compared to 63.0% in 2023, indicating a slight shift in distribution channels [271]. - Approximately 54% of AUM were invested in strategies focused on non-U.S. companies, and 45% were in currencies other than the U.S. dollar [391]. Revenue and Income - Total revenue for the year ended December 31, 2024, was $1,111.8 million, marking a 14.0% increase from $975.1 million in 2023 [250]. - Management fees rose to $1,096.9 million in 2024, up from $970.8 million in 2023, reflecting a growth of 12.9% [416]. - Net income attributable to Artisan Partners Asset Management Inc. for 2024 was $259.7 million, compared to $222.3 million in 2023, marking an increase of 16.8% [416]. - Basic earnings per share increased to $3.66 in 2024, up from $3.19 in 2023, representing a growth of 14.7% [416]. - Adjusted net income for the year ended December 31, 2024, was $287.3 million, up from $233.1 million in 2023, representing a 23.2% increase [342]. - Adjusted net income per adjusted share increased to $3.55 in 2024 from $2.89 in 2023, reflecting a 22.8% growth [342]. Client Cash Flows - Net client cash flows for 2024 were $(3.7) billion, compared to $(4.1) billion in 2023, indicating a slight improvement in client retention [257]. - The company experienced gross client cash inflows of $25.7 billion and outflows of $29.3 billion during 2024, resulting in net client cash flows of $(3.7) billion [260]. - Gross client cash inflows for the year ended December 31, 2024, totaled $25,650 million, while gross outflows were $29,349 million, resulting in net client cash flows of -$3,699 million [270]. - The net client cash flows for Artisan Funds were -$811 million, while Separate Accounts and Other experienced net outflows of -$2.888 billion for the year ended December 31, 2024 [273]. Expenses and Costs - Total operating expenses increased by $73.7 million, or 11%, to $745.2 million in 2024, driven by a $64.7 million increase in total compensation and benefits [324]. - Total compensation and benefits represented 53% of revenues in 2024, down from 54% in 2023 [326]. - Fixed compensation costs, excluding long-term incentive compensation, are expected to increase in the mid- to low-single digits in 2025 [292]. - General and administrative costs are expected to remain consistent with 2024 levels [307]. Dividends - The company declared and distributed dividends of $3.16 per share of Class A common stock during 2024, with a total of $3.48 per share declared for the fiscal year [250]. - The quarterly dividend for Class A common stock increased to $2.82 per share in 2024 from $2.31 in 2023, a rise of 22% [354]. - Artisan Partners Holdings' total distributions increased to $354.8 million in 2024 from $293.0 million in 2023, representing a 20.9% increase [353]. Investment Performance - Global Opportunities Strategy AUM is $20,591 million with a 1-year return of 16.13% [267]. - Global Discovery Strategy AUM is $1,808 million with a 1-year return of 17.51% [267]. - U.S. Mid-Cap Growth Strategy AUM is $12,952 million with a 1-year return of 13.27% [267]. - Value Equity Strategy AUM is $4,915 million with a 1-year return of 13.49% [267]. - Developing World Strategy AUM is $4,100 million with a 1-year return of 30.04% [268]. - Credit Opportunities Strategy AUM is $272 million with a 1-year return of 18.06% [268]. - The average annual total returns for the Global Equity Strategy over 5 years is 8.44% [267]. - The average annual value added since inception for the Global Discovery Strategy is 677 basis points [267]. Financial Position - Cash and cash equivalents as of December 31, 2024, were $201.2 million, compared to $141.0 million in 2023, indicating a 42.7% increase [343]. - Total stockholders' equity increased to $422.002 million by December 31, 2024, up from $351.351 million at the end of 2023, reflecting a growth of about 20.0% [423]. - The total liabilities as of December 31, 2024, were $868.8 million, up from $802.1 million in 2023, reflecting an increase of 8.3% [414]. - Cash flows from operating activities for 2024 were $372.838 million, compared to $253.028 million in 2023, indicating a significant increase of approximately 47.5% [427]. Tax and Compliance - The effective income tax rate increased to 20.6% in 2024 from 18.7% in 2023, primarily due to a decrease in non-controlling interests and limitations on executive compensation deductions [330]. - The company recognized a liability of $341.5 million under TRAs as of December 31, 2024, representing 85% of expected tax benefits [357]. - The company has not recorded a valuation allowance on any deferred tax assets as of December 31, 2024 [384]. - The company has utilized professionals with specialized skills to assist in evaluating audit evidence related to deferred tax assets and TRA, indicating a focus on compliance and accuracy in financial reporting [410].