Associated Capital Group, Inc. Reports Increased First Quarter Book Value

Core Viewpoint - Associated Capital Group, Inc. reported its financial results for the first quarter of 2024, showing a decrease in assets under management (AUM) and net income compared to the previous year, while revenues increased significantly [1][2][3]. Financial Performance - AUM at the end of Q1 2024 was $1.55 billion, down from $1.80 billion at the end of Q1 2023, reflecting a decrease of approximately 14% year-over-year [3][7]. - Total revenues for Q1 2024 were $3.0 million, an increase of 22% from $2.5 million in Q1 2023 [4][22]. - Net income for Q1 2024 was $13.8 million, down from $17.8 million in Q1 2023, representing a decline of about 22% [2][23]. - Net income per share (diluted) decreased to $0.64 from $0.81 in the prior year [2][23]. Revenue Breakdown - Revenues from the GAMCO International SICAV – GAMCO Merger Arbitrage increased to $1.7 million in Q1 2024 from $1.1 million in Q1 2023 [4]. - Other revenues decreased slightly to $1.3 million from $1.4 million year-over-year [4]. Operating Expenses - Total operating expenses, excluding management fees, rose to $6.0 million in Q1 2024 from $5.1 million in Q1 2023, primarily due to increased marketing expenses and stock-based compensation [5][22]. - The management fee for Q1 2024 was $2.0 million, down from $2.5 million in Q1 2023 [6]. Investment Income - Net investment and other non-operating income was $22.6 million in Q1 2024, compared to $24.7 million in Q1 2023, driven by mark-to-market increases from GAMCO holdings and merger arbitrage partnerships [6][22]. Shareholder Actions - The Board of Directors declared a semi-annual dividend of $0.10 per share, payable on June 27, 2024 [14]. - The company repurchased 117,354 Class A shares for $3.9 million during the first quarter [14]. Market Context - Global M&A activity reached $798 billion in Q1 2024, a 38% increase compared to the same period in 2023, with the US accounting for 61% of this activity [11]. - The energy and power sector was the most active, followed by technology and financials [11].