Associated Capital Group(AC) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 were $2.1 million, down from $3.0 million in Q1 2024, reflecting a decrease of approximately 30%[90] - Net income attributable to shareholders for Q1 2025 was $7.7 million, down from $13.8 million in Q1 2024, representing a decline of approximately 44%[90] - The company reported a net gain from investments of $10.9 million in Q1 2025, down from $16.8 million in Q1 2024[96] Assets Under Management - Assets under management (AUM) at the end of Q1 2025 were $1.3 billion, a decrease of 18.1% compared to $1.5 billion in Q1 2024[99] - Total AUM as of March 31, 2025, was $1,269 million, reflecting a net increase from $1,248 million as of December 31, 2024[101] - Assets under management (AUM) increased by $21 million for the quarter ended March 31, 2025, driven by market appreciation of $33 million and currency fluctuations of $13 million, partially offset by net investor outflows of $25 million[102] Expenses - Management fee expense decreased to $1.1 million in Q1 2025 from $2.0 million in Q1 2024, a reduction of 45%[94] - Compensation expenses increased to $4.4 million in Q1 2025 from $3.8 million in Q1 2024, primarily due to higher stock-based compensation[93] Cash and Investments - The company ended Q1 2025 with approximately $870.8 million in cash and investments, providing flexibility for strategic objectives[88] - Cash, cash equivalents, and restricted cash at the end of the period were $317.4 million, down from $341.0 million at the beginning of the period[104] - The company had cash and cash equivalents of $293.9 million, investments in U.S. Treasury Bills of $64.0 million, and $202.1 million of investments net of securities sold as of March 31, 2025[104] Cash Flow - Net cash used in operating activities was $8.1 million for the three months ended March 31, 2025, compared to $1.1 million for the same period in 2024[105][106] - Net cash provided by investing activities was $1.2 million, primarily from proceeds of $0.6 million from sales of securities[105] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $8.3 million for the three months ended March 31, 2025[104] Tax and Incentives - The effective tax rate for Q1 2025 was 26.3%, compared to 21.5% in Q1 2024, primarily due to deferred tax benefits from a foreign investment[97] - Unrecognized incentive fees for Q1 2025 amounted to $2.0 million, with no material unrecognized fees in Q1 2024[92] Liquidity Position - The company’s principal assets include cash, treasury securities, and marketable securities, indicating a strong liquidity position despite net cash used in operating activities[103] - The company anticipates that available liquid assets will be sufficient to meet cash requirements as it builds out its operating business[104] Operating Cash Flows - Operating cash flows in 2025 were impacted by $7.7 million of net decreases in securities and $6.7 million in adjustments for noncash items[105]