Associated Capital Reports Results for the Third Quarter 2024

Core Insights - Associated Capital Group, Inc. reported financial results for the third quarter of 2024, highlighting a decrease in assets under management (AUM) and an increase in net income compared to the previous year [1][4][5]. Financial Performance - AUM at the end of the quarter was $1.34 billion, down from $1.59 billion a year earlier, reflecting a net outflow of $288 million and currency fluctuations [10][4]. - Total revenues for the third quarter were $2.415 million, an increase from $2.200 million in the same quarter of 2023 [2][5]. - Net income for the quarter was $23.242 million, compared to a loss of $16,000 in the prior year [2][26]. - Net income per share was $1.09, up from $0.00 in the same quarter of 2023 [2][26]. Shareholder Returns - The company returned $45.9 million to shareholders through dividends and share repurchases in the third quarter [1]. - A special cash dividend of $2.00 per share was declared, alongside a semi-annual dividend of $0.10 per share [16][17]. - Since its spin-off in 2015, the company has returned approximately $181.9 million to shareholders through share repurchases and $81.1 million in dividends [18]. Investment Strategy - The company focuses on alternative investment strategies, particularly in merger arbitrage, which generated gross returns of 4.88% for the third quarter [12][13]. - Global M&A activity reached $2.3 trillion in the first nine months of 2024, a 16% increase from the previous year, with the U.S. leading in dealmaking [13]. Operating Expenses - Total operating expenses, excluding management fees, were $6.0 million in the third quarter, up from $5.7 million in the same quarter of 2023 [7][2]. - The management fee for the quarter was $3.3 million, compared to none in the previous year [8][21]. Taxation - The effective tax rate for the quarter was 22.9%, significantly lower than the 60.8% rate in the same quarter of the previous year, which was affected by deferred tax expenses [9][2].