BrightSphere Investment (BSIG) - 2025 Q1 - Quarterly Results

Financial Performance - Acadian reported positive net cash flow (NCCF) of $3.8 billion in Q1 2025, the strongest quarter in nineteen years, reflecting a significant increase of 850% compared to the previous year[34]. - Economic net income (ENI) for Q1 2025 was $20.3 million, a 17% increase from $17.4 million in Q1 2024, with ENI earnings per share rising 23% to $0.54[4][7]. - U.S. GAAP net income attributable to controlling interests was $20.1 million, a 38% increase from $14.6 million in Q1 2024, with diluted EPS rising 46% to $0.54[7][34]. - Total revenue increased by 13.4% to $119.9 million in Q1'25, driven by higher management fees and performance fees[85]. - Management fees rose by 10% to $112.9 million, reflecting a 12% increase in average AUM due to market appreciation and positive net cash flow[95]. - Performance fees surged by 71% to $5.3 million in Q1'25 compared to Q1'24[94]. - Net income attributable to controlling interests increased by 37.7% to $20.1 million in Q1'25[86]. - Diluted earnings per share rose by 45.9% to $0.54 in Q1'25[86]. - Consolidated revenue increased from $105.7 million in Q1'24 to $119.9 million in Q1'25, representing a growth of 13.5%[129]. - Economic net income (ENI) for the Quant & Solutions Segment rose from $31.4 million in Q1'24 to $34.9 million in Q1'25, an increase of 11.1%[129]. - Income before income taxes grew from $21.8 million in Q1'24 to $32.1 million in Q1'25, marking a significant increase of 47.0%[129]. Assets and Management - Total assets under management (AUM) reached $121.9 billion as of March 31, 2025, marking a 10% increase from $110.4 billion a year earlier[32][34]. - Assets under management (AUM) increased from $110.4 billion in Q1'24 to $121.9 billion in Q1'25, reflecting a net flow of $3.8 billion[112]. - Enhanced Equity strategies, a key product initiative, saw AUM double to approximately $12 billion year-over-year, targeting the $16 trillion global passive equity market[59]. Shareholder Returns - Acadian repurchased 0.8 million shares of common stock for a total of $19.4 million in Q1 2025, resulting in a 2.0% reduction in total shares outstanding since the end of 2024[6][7]. - The Board of Directors declared a quarterly interim dividend of $0.01 per share, payable on June 27, 2025[8]. - The company returned $1.4 billion in excess capital to stockholders over the last five years through share buybacks and dividends[78]. Operational Efficiency - The operating margin improved to 27% in Q1'25, up from 22% in Q1'24, reflecting enhanced operational efficiency[86]. - Earnings after variable compensation for Q1'25 increased to $33.5 million, a 15% rise from Q1'24[107]. - Fixed compensation and benefits expenses rose from $21.6 million in Q1'24 to $22.9 million in Q1'25, an increase of 6.0%[129]. - Variable compensation expenses increased from $26.0 million in Q1'24 to $29.4 million in Q1'25, reflecting a rise of 13.1%[129]. - Unallocated corporate expenses remained relatively stable, decreasing slightly from $4.6 million in Q1'24 to $4.5 million in Q1'25[129]. Debt and Leverage - The leverage ratio stood at 2.0x, with a net leverage ratio of 1.3x[72]. - The leverage ratio increased from 1.5x in Q1'24 to 2.0x in Q1'25, indicating a rise in debt relative to earnings[110]. Tax and Expenses - The company reported an income tax expense of $6.1 million in Q1'24, which increased to $8.3 million in Q1'25, a rise of 36.1%[129]. - Interest income slightly decreased from $1.3 million in Q1'24 to $1.1 million in Q1'25, a decline of 15.4%[129]. - Net consolidated funds' investment gains increased from $1.7 million in Q1'24 to $3.6 million in Q1'25, representing a growth of 111.8%[129]. Other Financial Metrics - The company maintained a cash balance of approximately $120 million and an outstanding balance of $80 million on its revolving credit facility as of March 31, 2025[6]. - Total assets decreased from $703.2 million in December 2024 to $677.3 million in March 2025[110]. - Total liabilities also decreased from $616.1 million to $584.8 million during the same period[110]. - Adjusted EBITDA increased from $31.9 million in Q1'24 to $35.2 million in Q1'25[116]. - The ENI management fee rate remained stable at 38% for both Q1'24 and Q1'25[112]. - The Acadian LLC key employee distribution ratio rose to 9.3% in Q1'25, an increase of 172 basis points from Q1'24[107].