Artisan Partners (APAM) Q4 Earnings Meet Estimates, AUM Rises

Core Viewpoint - Artisan Partners Asset Management Inc. reported a solid fourth-quarter performance with adjusted net income per share meeting expectations, although annual adjusted net income showed a decline year over year [1][2]. Financial Performance - Fourth-quarter adjusted net income per share was 78 cents, a 20% increase year over year [1] - Net income attributable to Artisan Partners on a GAAP basis was $64.8 million, up from $52.9 million in the prior year quarter [1] - Total revenues for the fourth quarter were $249 million, reflecting a 10.2% year-over-year increase and surpassing the Zacks Consensus Estimate of $243.8 million [2] - For the full year 2023, revenues decreased by 1.8% to $975.1 million, but still exceeded the consensus estimate of $969.9 million [2] - Total operating expenses rose to $172.6 million, a 10.6% increase year over year, driven by higher costs across all components except operating costs [2][3] Assets Under Management (AUM) - As of December 31, 2023, ending AUM was $150.2 billion, a 10% increase from the previous quarter, primarily due to investment returns [4] - Average AUM totaled $140.3 billion, down 1% from the prior quarter [4] Balance Sheet Position - Cash and cash equivalents increased to $141 million from $114.8 million as of December 31, 2022 [5] - The debt leverage ratio was reported at 0.6x as of December 31, 2023 [5] Dividend Declaration - The board declared a variable fourth-quarter dividend of 68 cents per share and a special dividend of 34 cents per share, payable on February 29 to shareholders of record as of February 15 [6] Industry Context - Other asset managers like BlackRock and Invesco also reported strong earnings, with BlackRock's adjusted earnings at $9.66 per share and Invesco's at 47 cents per share, both exceeding consensus estimates [9]