Associated Capital Group(US:AC)2021-11-07 16:00Assets Under Management (AUM) - Assets Under Management (AUM) at the end of Q3 2021 reached $1,680 million, up from $1,251 million in Q3 2020, representing a year-over-year increase of 34.2%[132] - Average AUM for Q3 2021 was $1,651 million compared to $1,280 million in Q3 2020, indicating a growth of 28.9%[132] - Assets under management (AUM) reached $1.7 billion as of September 30, 2021, reflecting a 34.3% increase compared to the same quarter in 2020[153] - Assets Under Management (AUM) increased to $1,680 million as of September 30, 2021, up 24.35% from $1,351 million on December 31, 2020[154] - Net inflows contributed $82 million to AUM for the quarter ended September 30, 2021, offset by market losses of $13 million[155] Financial Performance - Net income per share (diluted) for Q3 2021 was $0.07, down from $0.26 in Q3 2020, reflecting a decrease of 73.1%[132] - Total revenues for the quarter ended September 30, 2021, were $2.1 million, a $0.2 million increase from the prior year[142] - Advisory and incentive fees amounted to $2.0 million for the quarter, up $0.1 million from the comparable quarter of 2020[142] - The operating loss for the quarter was $0.2 million, significantly reduced from $3.6 million in the prior year[141] - Net income for the quarter was $1.5 million, or $0.07 per diluted share, compared to $5.8 million, or $0.26 per diluted share, in the prior year[141] - Total expenses for the quarter were $2.3 million, compared to $5.5 million in the prior year[141] - Investment gains for the quarter were $5.7 million, down from $15.6 million in the comparable quarter of 2020[144] - For the nine months ended September 30, 2021, total revenues were $6.9 million, consistent with the prior year's period[147] - Compensation expenses for the nine months ended September 30, 2021, were $11.7 million, an increase from $8.4 million in the prior year[148] - Net gain from investments for the nine months was $79.3 million, compared to a loss of $34.8 million in the prior year[149] Cash and Investments - The company ended Q3 2021 with approximately $947 million in cash and investments, including $344.5 million in cash and cash equivalents[137] - Cash and cash equivalents at the end of the period were $569.8 million, including $225 million related to an unsettled T-bill rollover trade[157] - Net cash provided by operating activities was $488.1 million for the nine months ended September 30, 2021, excluding the impact of the unsettled rollover, it was $262.8 million[159] - The company reported a net increase from continuing operations of $530.3 million for the nine months ended September 30, 2021, compared to a net decrease of $294.8 million for the same period in 2020[157] Shareholders' Equity - Total shareholders' equity as of September 30, 2021, was $932 million, or $42.24 per share, compared to $899 million, or $40.36 per share, as of December 31, 2020[138] - Book value per share increased to $42.24 in Q3 2021 from $38.25 in Q3 2020, marking an increase of 5.2%[132] Strategic Initiatives - The proprietary capital is expected to be utilized for investments in managed funds, new product seed capital, and strategic acquisitions[127] - The company announced a $175 million initial public offering for its SPAC, PMV Consumer Acquisition Corp., targeting businesses with enterprise valuations between $200 million and $3.5 billion[125] - The company has maintained a diversified portfolio to mitigate deal-specific risks in its investment strategies[122] Operational Resilience - The impact of COVID-19 did not significantly affect the company's AUM, and operations continued without material disruption during remote work arrangements[129][130] Internal Controls and Compliance - The company experienced a material weakness in internal control over financial reporting as of September 30, 2021, due to insufficient personnel with technical accounting skills[166] - Management has implemented a remediation plan to address the material weakness, including hiring additional qualified personnel and improving segregation of duties[169] - The company anticipates that the material weakness will be remediated by the end of fiscal 2021[170] - The company is not currently subject to any legal proceedings that involve claims exceeding 10% of consolidated assets[172] Risk Factors - Forward-looking statements indicate potential risks including declines in securities markets and changes in government policy[171]