Associated Capital Group, Inc. Reports Second Quarter Results

Core Viewpoint - Associated Capital Group, Inc. reported a decline in assets under management (AUM) and net income for the second quarter of 2024, while also announcing a charitable contribution and shareholder returns through dividends and share repurchases [1][3][13]. Financial Performance - AUM at the end of the second quarter was $1.36 billion, down from $1.55 billion at the end of the previous quarter [1][3][7]. - Book value per share increased to $42.87 from $42.80 at the end of the previous quarter [1]. - Total revenues for the second quarter were $2.6 million, compared to $2.4 million in the same quarter of 2023 [4][21]. - Net income for the quarter was $2.985 million, a decrease from $3.371 million in the same quarter of 2023 [2][22]. Revenue Breakdown - Revenues from the GAMCO International SICAV – GAMCO Merger Arbitrage increased to $1.3 million from $1.0 million year-over-year [4]. - Other revenues decreased slightly to $1.3 million from $1.4 million in the prior year [4]. Operating Expenses - Total operating expenses, excluding management fees, rose to $5.8 million from $5.3 million in the same quarter of 2023, primarily due to increased marketing expenses and stock-based compensation [5][21]. - The management fee for the quarter was $0.4 million, down from $0.5 million in the previous year [6]. Investment Income - Net investment and other non-operating income was $7.3 million, down from $8.6 million in the same quarter of 2023, influenced by market conditions and interest income [6][21]. - The effective tax rate for the quarter was 19.1%, significantly lower than the 35.8% rate in the same quarter of the previous year [6]. Shareholder Returns - The company returned $4.4 million to shareholders through dividends and share repurchases in the second quarter [1][14]. - A charitable contribution of $4.3 million, or $0.20 per share, was approved by the Board of Directors [1][13]. Market Context - Worldwide M&A activity reached $1.5 trillion in the first half of 2024, an 18% increase compared to the previous year, with U.S. deal-making accounting for 53% of this activity [10].