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ASSOCIATED CAPITAL GROUP, INC. Reports Fourth Quarter and Full Year Results
ACAssociated Capital Group(AC) GlobeNewswire·2025-02-05 22:05

Financial Performance - Associated Capital Group reported fourth quarter revenues of 5.2million,adecreasefrom5.2 million, a decrease from 5.6 million in the same quarter of 2023 [3] - For the full year 2024, revenues increased to 13.2millionfrom13.2 million from 12.7 million in 2023 [9] - The company experienced an operating loss before management fee of 12.9millionfor2024,comparedto12.9 million for 2024, compared to 11.5 million in 2023 [9][10] Assets Under Management (AUM) - AUM at the end of 2024 was 1.25billion,downfrom1.25 billion, down from 1.59 billion at the end of 2023, reflecting net outflows of 363million[11]−ThedeclineinAUMwasattributedtoclientreallocationstootherassetclasses,particularlyinthemergerarbitragestrategy[11][19]InvestmentIncome−Netinvestmentandothernon−operatingincomeforthefourthquarterwas363 million [11] - The decline in AUM was attributed to client reallocations to other asset classes, particularly in the merger arbitrage strategy [11][19] Investment Income - Net investment and other non-operating income for the fourth quarter was 4.4 million, significantly lower than 26.7millionintheprioryear[7]−Forthefullyear,netinvestmentincomewas26.7 million in the prior year [7] - For the full year, net investment income was 71.5 million, up from 63.8millionin2023,primarilyduetohigherdividendincomefromGAMCO[10]ShareholderReturns−Thecompanyreturned63.8 million in 2023, primarily due to higher dividend income from GAMCO [10] Shareholder Returns - The company returned 58.6 million, or 2.72pershare,toshareholdersthroughdividendsandsharerepurchasesin2024[4][24]−Bookvaluepershareatyear−end2024was2.72 per share, to shareholders through dividends and share repurchases in 2024 [4][24] - Book value per share at year-end 2024 was 42.14, reflecting a slight increase from 42.11ayearearlier[5][4]MergerArbitrageStrategy−Themergerarbitragestrategygeneratedgrossreturnsof5.8342.11 a year earlier [5][4] Merger Arbitrage Strategy - The merger arbitrage strategy generated gross returns of 5.83% for the full year 2024, outperforming the return on 90-day T-Bills [15][17] - The strategy has a historical record of positive net returns in 38 of the last 40 years [15] M&A Market Overview - Worldwide M&A activity totaled 3.2 trillion in 2024, a 10% increase from 2023, with the US accounting for approximately 1.4trillion[19]−Thetechnologysectorleddealactivitywithapproximately1.4 trillion [19] - The technology sector led deal activity with approximately 500 billion, marking a 32% increase compared to 2023 [19] Corporate Strategy - The company plans to leverage its capital for acquisitions and alliances to broaden product offerings and enhance distribution [22] - Associated Capital Group aims to continue repurchasing shares, with 353,116 Class A shares repurchased in 2024 [25][26]