Affiliated Managers Group, Inc. (NYSE: AMG) today reported its
financial and operating results for the second quarter and six
months ended June 30, 2023.
Jay C. Horgen, President and Chief
Executive Officer of AMG, said:“In the second quarter, AMG
reported an increase of 10% in Economic Earnings per share relative
to the year-ago quarter, reflecting the disciplined execution of
our capital allocation strategy across both growth investments and
share repurchases. AMG’s focus on investing in areas of secular
demand continues to diversify and enhance the long-term growth
prospects of our business.
“Recently, we announced our partnership with
Forbion, a leading European venture capital and growth equity firm,
broadening our participation in both private markets and life
sciences, a fast-growing sector with increasing client allocations.
AMG’s unique approach continues to resonate with the highest
quality independent firms as they seek a strategic, engaged partner
that can enhance their long-term growth potential. Given the
increasing demand for our solution set in a favorable transaction
environment, we see a significant opportunity to establish new
partnerships.
“Our excellent capital position — which will be
further enhanced by the proceeds from the recently announced
Veritable transaction — and distinct competitive advantages, honed
over 30 years, continue to differentiate AMG. We remain confident
in our ability to generate significant additional shareholder value
over time, as we invest in new and existing Affiliates while also
returning excess capital to shareholders within our disciplined
capital allocation framework.”
FINANCIAL
HIGHLIGHTS |
|
Three Months Ended |
|
Six Months Ended |
(in millions, except as noted
and per share data) |
|
6/30/2022 |
|
6/30/2023 |
|
6/30/2022 |
|
6/30/2023 |
Operating Performance
Measures |
|
|
|
|
|
|
|
|
AUM (at period end, in billions) |
|
$ |
690.9 |
|
|
$ |
673.9 |
|
|
$ |
690.9 |
|
|
$ |
673.9 |
|
Average AUM (in billions) |
|
|
728.1 |
|
|
|
668.9 |
|
|
|
757.7 |
|
|
|
664.7 |
|
Net client cash flows (in billions) |
|
|
(11.4 |
) |
|
|
(10.5 |
) |
|
|
(13.6 |
) |
|
|
(13.7 |
) |
Aggregate fees |
|
|
1,179.6 |
|
|
|
1,003.1 |
|
|
|
2,510.0 |
|
|
|
2,508.2 |
|
Financial Performance
Measures |
|
|
|
|
|
|
|
|
Net income (controlling interest) |
|
$ |
109.4 |
|
|
$ |
125.3 |
|
|
$ |
255.4 |
|
|
$ |
259.8 |
|
Earnings per share (diluted)(1) |
|
|
2.68 |
|
|
|
3.25 |
|
|
|
6.10 |
|
|
|
6.74 |
|
Supplemental
Performance Measures(2) |
|
|
|
|
|
|
|
|
Adjusted EBITDA (controlling interest) |
|
$ |
214.9 |
|
|
$ |
214.3 |
|
|
$ |
454.9 |
|
|
$ |
431.1 |
|
Economic net income (controlling interest) |
|
|
161.6 |
|
|
|
167.3 |
|
|
|
340.1 |
|
|
|
325.4 |
|
Economic earnings per share |
|
|
4.06 |
|
|
|
4.45 |
|
|
|
8.41 |
|
|
|
8.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For additional information on our Supplemental Performance
Measures, including the impact of a definition change on Adjusted
EBITDA (controlling interest), Economic net income (controlling
interest), and Economic earnings per share and reconciliations to
GAAP, see the Financial Tables and Notes.
Capital Management During the second quarter of
2023, the Company completed the execution of the $225 million
accelerated share repurchase program (the “ASR”) entered into at
year-end 2022, and repurchased an additional $44 million in common
stock, bringing total year-to-date share repurchases, inclusive of
the ASR, to approximately $269 million. The Company also announced
a second-quarter cash dividend of $0.01 per share of common stock,
payable August 21, 2023 to stockholders of record as of the close
of business on August 7, 2023.
About AMGAMG is a leading partner to
independent investment management firms globally. AMG’s strategy is
to generate long‐term value by investing in a diverse array of
high-quality independent partner-owned firms, through a proven
partnership approach, and allocating resources across AMG’s unique
opportunity set to the areas of highest growth and return. AMG’s
innovative partnership approach enables each Affiliate’s management
team to own significant equity in their firm while maintaining
operational and investment autonomy. In addition, AMG offers its
Affiliates growth capital, distribution, and other strategic
value-added capabilities, which enhance the long-term growth of
these independent businesses, and enable them to align equity
incentives across generations of principals to build enduring
franchises. As of June 30, 2023, AMG’s aggregate assets under
management were approximately $674 billion across a broad range of
differentiated investment strategies. For more information, please
visit the Company’s website at www.amg.com.
Conference Call, Replay and Presentation
InformationA conference call will be held with AMG’s
management at 8:30 a.m. Eastern time today. Parties interested in
listening to the conference call should dial 1-877-407-8291 (U.S.
calls) or 1-201-689-8345 (non-U.S. calls) shortly before the call
begins.
The conference call will also be available for replay beginning
approximately one hour after the conclusion of the call. To hear a
replay of the call, please dial 1-877-660-6853 (U.S. calls) or
1-201-612-7415 (non-U.S. calls) and provide conference ID 13739862.
The live call and replay of the session and a presentation
highlighting the Company’s performance can also be accessed via
AMG’s website at https://ir.amg.com/.
Financial Tables Follow
ASSETS UNDER MANAGEMENT – STATEMENT OF
CHANGES (in billions)
BY STRATEGY –
QUARTER TO DATE |
|
Alternatives |
Global Equities |
U.S. Equities |
Multi-Asset &Fixed
Income |
Total |
AUM, March 31, 2023 |
|
$ |
223.7 |
|
$ |
192.6 |
|
$ |
137.0 |
|
$ |
114.7 |
|
$ |
668.0 |
|
Client cash inflows and commitments |
|
|
5.6 |
|
|
4.5 |
|
|
4.8 |
|
|
4.7 |
|
|
19.6 |
|
Client cash outflows |
|
|
(5.3 |
) |
|
(12.2 |
) |
|
(7.9 |
) |
|
(4.7 |
) |
|
(30.1 |
) |
Net client cash
flows |
|
|
0.3 |
|
|
(7.7 |
) |
|
(3.1 |
) |
|
(0.0 |
) |
|
(10.5 |
) |
Market changes |
|
|
1.7 |
|
|
4.4 |
|
|
6.5 |
|
|
2.2 |
|
|
14.8 |
|
Foreign exchange |
|
|
1.1 |
|
|
1.6 |
|
|
0.4 |
|
|
0.2 |
|
|
3.3 |
|
Realizations and distributions (net) |
|
|
(1.2 |
) |
|
(0.1 |
) |
|
(0.0 |
) |
|
(0.1 |
) |
|
(1.4 |
) |
Other |
|
|
0.1 |
|
|
(0.3 |
) |
|
(0.1 |
) |
|
0.0 |
|
|
(0.3 |
) |
AUM, June 30,
2023 |
|
$ |
225.7 |
|
$ |
190.5 |
|
$ |
140.7 |
|
$ |
117.0 |
|
$ |
673.9 |
|
BY STRATEGY –
YEAR TO DATE |
|
Alternatives |
Global Equities |
U.S. Equities |
Multi-Asset &Fixed
Income |
Total |
AUM, December 31, 2022 |
|
$ |
220.9 |
|
$ |
186.1 |
|
$ |
133.3 |
|
$ |
110.5 |
|
$ |
650.8 |
|
Client cash inflows and commitments |
|
|
15.7 |
|
|
9.3 |
|
|
9.8 |
|
|
9.7 |
|
|
44.5 |
|
Client cash outflows |
|
|
(11.6 |
) |
|
(22.1 |
) |
|
(15.2 |
) |
|
(9.3 |
) |
|
(58.2 |
) |
Net client cash
flows |
|
|
4.1 |
|
|
(12.8 |
) |
|
(5.4 |
) |
|
0.4 |
|
|
(13.7 |
) |
Market changes |
|
|
1.7 |
|
|
15.2 |
|
|
12.3 |
|
|
5.8 |
|
|
35.0 |
|
Foreign exchange |
|
|
1.9 |
|
|
2.4 |
|
|
0.5 |
|
|
0.2 |
|
|
5.0 |
|
Realizations and distributions (net) |
|
|
(2.7 |
) |
|
(0.1 |
) |
|
(0.0 |
) |
|
(0.1 |
) |
|
(2.9 |
) |
Other |
|
|
(0.2 |
) |
|
(0.3 |
) |
|
(0.0 |
) |
|
0.2 |
|
|
(0.3 |
) |
AUM, June 30,
2023 |
|
$ |
225.7 |
|
$ |
190.5 |
|
$ |
140.7 |
|
$ |
117.0 |
|
$ |
673.9 |
|
BY CLIENT TYPE –
QUARTER TO DATE |
|
Institutional |
Retail |
High NetWorth |
Total |
AUM, March 31, 2023 |
|
$ |
337.9 |
|
$ |
196.6 |
|
$ |
133.5 |
|
$ |
668.0 |
|
Client cash inflows and commitments |
|
|
7.4 |
|
|
7.3 |
|
|
4.9 |
|
|
19.6 |
|
Client cash outflows |
|
|
(13.5 |
) |
|
(10.8 |
) |
|
(5.8 |
) |
|
(30.1 |
) |
Net client cash
flows |
|
|
(6.1 |
) |
|
(3.5 |
) |
|
(0.9 |
) |
|
(10.5 |
) |
Market changes |
|
|
6.1 |
|
|
5.9 |
|
|
2.8 |
|
|
14.8 |
|
Foreign exchange |
|
|
1.9 |
|
|
1.1 |
|
|
0.3 |
|
|
3.3 |
|
Realizations and distributions (net) |
|
|
(0.8 |
) |
|
(0.6 |
) |
|
(0.0 |
) |
|
(1.4 |
) |
Other |
|
|
0.2 |
|
|
(0.3 |
) |
|
(0.2 |
) |
|
(0.3 |
) |
AUM, June 30,
2023 |
|
$ |
339.2 |
|
$ |
199.2 |
|
$ |
135.5 |
|
$ |
673.9 |
|
BY CLIENT TYPE –
YEAR TO DATE |
|
Institutional |
Retail |
High NetWorth |
Total |
AUM, December 31, 2022 |
|
$ |
333.5 |
|
$ |
188.9 |
|
$ |
128.4 |
|
$ |
650.8 |
|
Client cash inflows and commitments |
|
|
16.8 |
|
|
17.5 |
|
|
10.2 |
|
|
44.5 |
|
Client cash outflows |
|
|
(25.2 |
) |
|
(22.4 |
) |
|
(10.6 |
) |
|
(58.2 |
) |
Net client cash
flows |
|
|
(8.4 |
) |
|
(4.9 |
) |
|
(0.4 |
) |
|
(13.7 |
) |
Market changes |
|
|
13.4 |
|
|
14.0 |
|
|
7.6 |
|
|
35.0 |
|
Foreign exchange |
|
|
2.8 |
|
|
1.9 |
|
|
0.3 |
|
|
5.0 |
|
Realizations and distributions (net) |
|
|
(2.1 |
) |
|
(0.7 |
) |
|
(0.1 |
) |
|
(2.9 |
) |
Other |
|
|
(0.0 |
) |
|
0.0 |
|
|
(0.3 |
) |
|
(0.3 |
) |
AUM, June 30,
2023 |
|
$ |
339.2 |
|
$ |
199.2 |
|
$ |
135.5 |
|
$ |
673.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
Three Months Ended |
(in millions, except per share
data) |
|
6/30/2022 |
|
6/30/2023 |
|
|
|
|
|
Consolidated revenue |
|
$ |
604.1 |
|
|
$ |
512.5 |
|
|
|
|
|
|
Consolidated
expenses: |
|
|
|
|
Compensation and related expenses |
|
|
268.2 |
|
|
|
228.9 |
|
Selling, general and administrative |
|
|
93.1 |
|
|
|
85.2 |
|
Intangible amortization and impairments |
|
|
12.5 |
|
|
|
12.5 |
|
Interest expense |
|
|
27.3 |
|
|
|
30.9 |
|
Depreciation and other amortization |
|
|
4.7 |
|
|
|
3.3 |
|
Other expenses (net) |
|
|
(5.2 |
) |
|
|
13.8 |
|
Total consolidated
expenses |
|
|
400.6 |
|
|
|
374.6 |
|
|
|
|
|
|
Equity method income
(net)(3) |
|
|
30.5 |
|
|
|
55.8 |
|
Investment and other income
(expense) |
|
|
(22.0 |
) |
|
|
26.5 |
|
Income before income
taxes |
|
|
212.0 |
|
|
|
220.2 |
|
|
|
|
|
|
Income tax expense |
|
|
38.0 |
|
|
|
32.8 |
|
Net
income |
|
|
174.0 |
|
|
|
187.4 |
|
|
|
|
|
|
Net income (non-controlling
interests) |
|
|
(64.6 |
) |
|
|
(62.1 |
) |
Net income
(controlling interest) |
|
$ |
109.4 |
|
|
$ |
125.3 |
|
|
|
|
|
|
Average shares outstanding
(basic) |
|
|
38.7 |
|
|
|
35.9 |
|
Average shares outstanding
(diluted) |
|
|
44.5 |
|
|
|
42.1 |
|
|
|
|
|
|
Earnings per share
(basic) |
|
$ |
2.83 |
|
|
$ |
3.49 |
|
Earnings per share
(diluted)(1) |
|
$ |
2.68 |
|
|
$ |
3.25 |
|
RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE
MEASURES(2)
|
|
Three Months Ended |
(in millions, except per share
data) |
|
6/30/2022 |
|
6/30/2023 |
|
|
|
|
|
Net income (controlling interest) |
|
$ |
109.4 |
|
|
$ |
125.3 |
|
Intangible amortization and impairments |
|
|
43.1 |
|
|
|
29.4 |
|
Intangible-related deferred taxes |
|
|
12.8 |
|
|
|
15.0 |
|
BPEA Transaction(4) |
|
|
— |
|
|
|
(1.1 |
) |
Other economic items |
|
|
(3.7 |
) |
|
|
(1.3 |
) |
Economic net income
(controlling interest) |
|
$ |
161.6 |
|
|
$ |
167.3 |
|
|
|
|
|
|
Average shares outstanding
(adjusted diluted) |
|
|
39.9 |
|
|
|
37.6 |
|
Economic earnings per
share |
|
$ |
4.06 |
|
|
$ |
4.45 |
|
|
|
|
|
|
Net income
(controlling interest) |
|
$ |
109.4 |
|
|
$ |
125.3 |
|
Interest expense |
|
|
27.3 |
|
|
|
30.9 |
|
Income taxes |
|
|
35.9 |
|
|
|
31.6 |
|
Intangible amortization and impairments |
|
|
43.1 |
|
|
|
29.4 |
|
BPEA Transaction(4) |
|
|
— |
|
|
|
(1.4 |
) |
Other items |
|
|
(0.8 |
) |
|
|
(1.5 |
) |
Adjusted EBITDA
(controlling interest) |
|
$ |
214.9 |
|
|
$ |
214.3 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME
|
|
Six Months Ended |
(in millions, except per share
data) |
|
6/30/2022 |
|
6/30/2023 |
|
|
|
|
|
Consolidated revenue |
|
$ |
1,211.4 |
|
|
$ |
1,029.9 |
|
|
|
|
|
|
Consolidated
expenses: |
|
|
|
|
Compensation and related expenses |
|
|
523.2 |
|
|
|
451.2 |
|
Selling, general and administrative |
|
|
182.6 |
|
|
|
182.3 |
|
Intangible amortization and impairments |
|
|
25.0 |
|
|
|
25.0 |
|
Interest expense |
|
|
56.4 |
|
|
|
61.3 |
|
Depreciation and other amortization |
|
|
8.1 |
|
|
|
7.0 |
|
Other expenses (net) |
|
|
0.4 |
|
|
|
28.3 |
|
Total consolidated
expenses |
|
|
795.7 |
|
|
|
755.1 |
|
|
|
|
|
|
Equity method income
(net)(3) |
|
|
79.1 |
|
|
|
114.5 |
|
Investment and other income
(expense) |
|
|
(8.4 |
) |
|
|
64.3 |
|
Income before income
taxes |
|
|
486.4 |
|
|
|
453.6 |
|
|
|
|
|
|
Income tax expense |
|
|
93.8 |
|
|
|
77.7 |
|
Net
income |
|
|
392.6 |
|
|
|
375.9 |
|
|
|
|
|
|
Net income (non-controlling
interests) |
|
|
(137.2 |
) |
|
|
(116.1 |
) |
Net income
(controlling interest) |
|
$ |
255.4 |
|
|
$ |
259.8 |
|
|
|
|
|
|
Average shares outstanding
(basic) |
|
|
39.2 |
|
|
|
35.9 |
|
Average shares outstanding
(diluted) |
|
|
48.1 |
|
|
|
40.2 |
|
|
|
|
|
|
Earnings per share
(basic) |
|
$ |
6.52 |
|
|
$ |
7.23 |
|
Earnings per share
(diluted)(1) |
|
$ |
6.10 |
|
|
$ |
6.74 |
|
RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE
MEASURES(2)
|
|
Six Months Ended |
(in millions, except per share
data) |
|
6/30/2022 |
|
6/30/2023 |
|
|
|
|
|
Net income (controlling interest) |
|
$ |
255.4 |
|
|
$ |
259.8 |
|
Intangible amortization and impairments |
|
|
75.0 |
|
|
|
58.8 |
|
Intangible-related deferred taxes |
|
|
28.5 |
|
|
|
29.8 |
|
BPEA Transaction(4) |
|
|
— |
|
|
|
(17.4 |
) |
Other economic items |
|
|
(18.8 |
) |
|
|
(5.6 |
) |
Economic net income
(controlling interest) |
|
$ |
340.1 |
|
|
$ |
325.4 |
|
|
|
|
|
|
Average shares outstanding
(adjusted diluted) |
|
|
40.5 |
|
|
|
37.7 |
|
Economic earnings per
share |
|
$ |
8.41 |
|
|
$ |
8.63 |
|
|
|
|
|
|
Net income
(controlling interest) |
|
$ |
255.4 |
|
|
$ |
259.8 |
|
Interest expense |
|
|
56.4 |
|
|
|
61.4 |
|
Income taxes |
|
|
86.4 |
|
|
|
74.1 |
|
Intangible amortization and impairments |
|
|
75.0 |
|
|
|
58.8 |
|
BPEA Transaction(4) |
|
|
— |
|
|
|
(23.0 |
) |
Other items |
|
|
(18.3 |
) |
|
|
0.0 |
|
Adjusted EBITDA
(controlling interest) |
|
$ |
454.9 |
|
|
$ |
431.1 |
|
|
|
|
|
|
|
|
|
|
See Notes for additional information.
CONSOLIDATED BALANCE SHEET
|
|
Period Ended |
(in millions) |
|
12/31/2022 |
|
6/30/2023 |
|
|
|
|
|
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
429.2 |
|
|
$ |
785.5 |
|
Receivables |
|
|
316.0 |
|
|
|
487.1 |
|
Investments in marketable securities |
|
|
716.9 |
|
|
|
444.2 |
|
Goodwill |
|
|
2,648.7 |
|
|
|
2,659.6 |
|
Acquired client relationships (net) |
|
|
1,876.0 |
|
|
|
1,863.1 |
|
Equity method investments in Affiliates (net) |
|
|
2,139.5 |
|
|
|
1,943.8 |
|
Fixed assets (net) |
|
|
68.5 |
|
|
|
66.3 |
|
Other investments |
|
|
421.6 |
|
|
|
457.0 |
|
Other assets |
|
|
264.6 |
|
|
|
259.5 |
|
Total
assets |
|
$ |
8,881.0 |
|
|
$ |
8,966.1 |
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
Payables and accrued liabilities |
|
$ |
778.3 |
|
|
$ |
602.5 |
|
Debt |
|
|
2,535.3 |
|
|
|
2,536.4 |
|
Deferred income tax liability (net) |
|
|
464.7 |
|
|
|
487.6 |
|
Other liabilities |
|
|
461.7 |
|
|
|
470.3 |
|
Total
liabilities |
|
|
4,240.0 |
|
|
|
4,096.8 |
|
|
|
|
|
|
Redeemable non-controlling
interests |
|
|
465.4 |
|
|
|
500.9 |
|
Equity: |
|
|
|
|
Common stock |
|
|
0.6 |
|
|
|
0.6 |
|
Additional paid-in capital |
|
|
695.5 |
|
|
|
651.9 |
|
Accumulated other comprehensive loss |
|
|
(203.4 |
) |
|
|
(161.2 |
) |
Retained earnings |
|
|
5,718.2 |
|
|
|
5,977.2 |
|
|
|
|
6,210.9 |
|
|
|
6,468.5 |
|
Less: treasury stock, at
cost |
|
|
(2,980.6 |
) |
|
|
(3,070.5 |
) |
Total stockholders’
equity |
|
|
3,230.3 |
|
|
|
3,398.0 |
|
Non-controlling interests |
|
|
945.3 |
|
|
|
970.4 |
|
Total
equity |
|
|
4,175.6 |
|
|
|
4,368.4 |
|
Total liabilities and
equity |
|
$ |
8,881.0 |
|
|
$ |
8,966.1 |
|
Notes
(1) |
Earnings per
share (diluted) adjusts for the dilutive effect of the potential
issuance of incremental shares of our common stock. |
|
|
|
We assume the settlement of all of our Redeemable
non-controlling interests using the maximum number of shares
permitted under our arrangements. The issuance of shares and the
related income acquired are excluded from the calculation if an
assumed purchase of Redeemable non-controlling interests would be
anti-dilutive to diluted earnings per share. |
|
|
|
We are required to apply the if-converted method to our
outstanding junior convertible securities when calculating Earnings
per share (diluted). Under the if-converted method, shares that are
issuable upon conversion are deemed outstanding, regardless of
whether the securities are contractually convertible into our
common stock at that time. For this calculation, the interest
expense (net of tax) attributable to these dilutive securities is
added back to Net income (controlling interest), reflecting the
assumption that the securities have been converted. Issuable shares
for these securities and related interest expense are excluded from
the calculation if an assumed conversion would be anti-dilutive to
diluted earnings per share. |
|
|
|
The following table provides a reconciliation of the numerator
and denominator used in the calculation of basic and diluted
earnings per share: |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
(in millions) |
|
6/30/2022 |
|
6/30/2023 |
|
6/30/2022 |
|
6/30/2023 |
|
Numerator |
|
|
|
|
|
|
|
|
|
Net income (controlling interest) |
|
$ |
109.4 |
|
|
$ |
125.3 |
|
|
$ |
255.4 |
|
|
$ |
259.8 |
|
|
Income from hypothetical
settlement of Redeemable non-controlling interests, net of
taxes |
|
|
6.6 |
|
|
|
8.2 |
|
|
|
30.8 |
|
|
|
4.5 |
|
|
Interest expense on junior
convertible securities, net of taxes |
|
|
3.5 |
|
|
|
3.4 |
|
|
|
7.3 |
|
|
|
6.7 |
|
|
Net income (controlling
interest), as adjusted |
|
$ |
119.5 |
|
|
$ |
136.9 |
|
|
$ |
293.5 |
|
|
$ |
271.0 |
|
|
Denominator |
|
|
|
|
|
|
|
|
|
Average shares outstanding
(basic) |
|
|
38.7 |
|
|
|
35.9 |
|
|
|
39.2 |
|
|
|
35.9 |
|
|
Effect of dilutive
instruments: |
|
|
|
|
|
|
|
|
|
Stock options and restricted stock units |
|
|
1.2 |
|
|
|
1.7 |
|
|
|
1.3 |
|
|
|
1.8 |
|
|
Hypothetical issuance of shares to settle Redeemable
non-controlling interests |
|
|
2.8 |
|
|
|
2.8 |
|
|
|
5.7 |
|
|
|
0.8 |
|
|
Junior convertible securities |
|
|
1.8 |
|
|
|
1.7 |
|
|
|
1.9 |
|
|
|
1.7 |
|
|
Average shares outstanding
(diluted) |
|
|
44.5 |
|
|
|
42.1 |
|
|
|
48.1 |
|
|
|
40.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
As
supplemental information, we provide non-GAAP performance measures
of Adjusted EBITDA (controlling interest), Economic net income
(controlling interest), and Economic earnings per share. Management
utilizes these non-GAAP performance measures to assess our
performance before our share of certain non-cash expenses and to
improve comparability between periods. In the first quarter of
2023, we updated the definitions of Adjusted EBITDA (controlling
interest) and Economic net income (controlling interest) to reflect
AMG’s strategic evolution, including our increased allocation of
capital toward private markets and liquid alternatives. To align
with the economic impact of these capital allocation decisions, the
updated definitions of Adjusted EBITDA (controlling interest) and
Economic net income (controlling interest): (i) include only the
realized economic gains and losses on seed capital, general partner
commitments, and other strategic investments and (ii) exclude any
unrealized gains and losses on strategic investments (consistent
with the existing treatment of seed capital and general partner
commitments). We have retroactively applied this definition change
to prior periods. The following table presents the impact on the
three and six months ended June 30, 2022: |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
(in millions, except per share
data) |
|
6/30/2022 |
|
6/30/2022 |
|
Adjusted EBITDA (controlling interest) - As reported |
|
$ |
214.9 |
|
|
$ |
454.9 |
|
|
Adjusted EBITDA (controlling
interest) - Prior definition |
|
|
213.4 |
|
|
|
468.7 |
|
|
Change |
|
$ |
1.5 |
|
|
$ |
(13.8 |
) |
|
% Change |
|
|
0.7 |
% |
|
|
(2.9 |
)% |
|
|
|
|
|
|
|
Economic net income
(controlling interest) - As reported |
|
$ |
161.6 |
|
|
$ |
340.1 |
|
|
Economic net income
(controlling interest) - Prior definition |
|
|
160.5 |
|
|
|
350.5 |
|
|
Change |
|
$ |
1.1 |
|
|
$ |
(10.4 |
) |
|
% Change |
|
|
0.7 |
% |
|
|
(3.0 |
)% |
|
|
|
|
|
|
|
Economic earnings per share -
As reported |
|
$ |
4.06 |
|
|
$ |
8.41 |
|
|
Economic earnings per share -
Prior definition |
|
|
4.03 |
|
|
|
8.67 |
|
|
Change |
|
$ |
0.03 |
|
|
$ |
(0.26 |
) |
|
% Change |
|
|
0.7 |
% |
|
|
(3.0 |
)% |
|
Adjusted
EBITDA (controlling interest) represents our performance before our
share of interest expense, income and certain non-income based
taxes, depreciation, amortization, impairments, gains and losses
related to the BPEA Transaction, and non-cash items such as certain
Affiliate equity activity, gains and losses on our contingent
payment obligations, and unrealized gains and losses on seed
capital, general partner commitments, and other strategic
investments. Adjusted EBITDA (controlling interest) is also
adjusted to include realized economic gains and losses related to
these seed capital, general partner commitments, and other
strategic investments. We believe that many investors use this
non-GAAP measure when assessing the financial performance of
companies in the investment management industry.Under our Economic
net income (controlling interest) definition, we adjust Net income
(controlling interest) for our share of pre-tax intangible
amortization and impairments (including the portion attributable to
equity method investments in Affiliates), deferred taxes related to
intangible assets, gains and losses related to the BPEA
Transaction, net of tax, and other economic items which include
gains and losses related to contingent payment obligations, tax
windfalls and shortfalls from share-based compensation, certain
Affiliate equity activity, unrealized gains and losses on seed
capital, general partner commitments, and other strategic
investments, and realized economic gains and losses related to
these seed capital, general partner commitments, and other
strategic investments. Economic net income (controlling interest)
is used by management and our Board of Directors as our principal
performance benchmark, including as one of the measures for
aligning executive compensation with stockholder value.Economic
earnings per share represents Economic net income (controlling
interest) divided by the Average shares outstanding (adjusted
diluted). In this calculation, we exclude the potential shares
issued upon settlement of Redeemable non-controlling interests from
Average shares outstanding (adjusted diluted) because we intend to
settle those obligations without issuing shares, consistent with
all prior Affiliate equity purchase transactions. The potential
share issuance in connection with our junior convertible securities
is measured using a “treasury stock” method. Under this method,
only the net number of shares of common stock equal to the value of
the junior convertible securities in excess of par, if any, are
deemed to be outstanding. We believe the inclusion of net shares
under a treasury stock method best reflects the benefit of the
increase in available capital resources (which could be used to
repurchase shares of our common stock) that occurs when these
securities are converted and we are relieved of our debt
obligation.The following table provides a reconciliation of Average
shares outstanding (adjusted diluted): |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
(in millions) |
|
6/30/2022 |
|
6/30/2023 |
|
6/30/2022 |
|
6/30/2023 |
|
Average shares outstanding (diluted) |
|
44.5 |
|
|
42.1 |
|
|
48.1 |
|
|
40.2 |
|
|
Hypothetical issuance of shares to settle Redeemable
non-controlling interests |
|
(2.8 |
) |
|
(2.8 |
) |
|
(5.7 |
) |
|
(0.8 |
) |
|
Junior convertible securities |
|
(1.8 |
) |
|
(1.7 |
) |
|
(1.9 |
) |
|
(1.7 |
) |
|
Average shares outstanding
(adjusted diluted) |
|
39.9 |
|
|
37.6 |
|
|
40.5 |
|
|
37.7 |
|
|
These non-GAAP
performance measures are provided in addition to, but not as a
substitute for, Net income (controlling interest), Earnings per
share, or other GAAP performance measures. For additional
information on our non-GAAP measures, see our most recent Annual
and Quarterly Reports on Form 10-K and 10-Q, respectively, which
are accessible on the SEC’s website at www.sec.gov. |
|
|
(3) |
The following
table presents equity method earnings and equity method intangible
amortization and impairments, which in aggregate form Equity method
income (net): |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
(in millions) |
|
6/30/2022 |
|
6/30/2023 |
|
6/30/2022 |
|
6/30/2023 |
|
Equity method earnings |
|
$ |
65.1 |
|
|
$ |
76.7 |
|
|
$ |
137.0 |
|
|
$ |
156.3 |
|
|
Equity method intangible
amortization and impairments |
|
|
(34.6 |
) |
|
|
(20.9 |
) |
|
|
(57.9 |
) |
|
|
(41.8 |
) |
|
Equity method income (net) |
|
$ |
30.5 |
|
|
$ |
55.8 |
|
|
$ |
79.1 |
|
|
$ |
114.5 |
|
(4) |
For the three
and six months ended June 30, 2023, gains on ordinary shares of EQT
AB ("EQT"), a public company listed on Nasdaq Stockholm (EQT.ST),
were $1.4 million and $23.0 million on a pre-tax basis,
respectively, and $1.1 million and $17.4 million on a post-tax
basis, respectively. We received the EQT shares through the sale of
our equity interest in Baring Private Equity Asia (“BPEA”), in
connection with the strategic combination of BPEA and EQT, which
was completed in the fourth quarter of 2022 (the “BPEA
Transaction”). |
Forward-Looking Statements and Other
Matters
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal
securities laws. These statements include, but are not limited to,
statements related to our expectations regarding the performance of
our business, our financial results, our liquidity and capital
resources, and other non-historical statements. You can identify
these forward-looking statements by the use of words such as
“outlook,” “guidance,” “believes,” “expects,” “potential,”
"preliminary," “continues,” “may,” “will,” “should,” “seeks,”
“approximately,” “predicts,” “projects,” “positioned,” “prospects,”
“intends,” “plans,” “estimates,” “pending investments,”
“anticipates,” or the negative version of these words or other
comparable words. Actual results and the timing of certain events
could differ materially from those projected in or contemplated by
the forward-looking statements due to a number of factors,
including changes in the securities or financial markets or in
general economic conditions, pandemics and related changes in the
global economy, capital markets and the asset management industry,
the availability of equity and debt financing, competition for
acquisitions of interests in investment management firms,
uncertainties relating to closing of pending investments or
transactions and potential changes in the anticipated benefits
thereof, the investment performance and growth rates of our
Affiliates and their ability to effectively market their investment
strategies, the mix of Affiliate contributions to our earnings, and
other risks, uncertainties, and assumptions, including those
described under the section entitled “Risk Factors” in our most
recent Annual Report on Form 10-K and Quarterly Reports on Form
10-Q. Such factors may be updated from time to time in our periodic
filings with the SEC. These factors should not be construed as
exhaustive and should be read in conjunction with the other
cautionary statements that are included in this release and in our
filings with the SEC. We undertake no obligation to publicly update
or review any forward-looking statements, whether as a result of
new information, future developments, or otherwise, except as
required by applicable law.
From time to time, AMG may use its website as a distribution
channel of material Company information. AMG routinely posts
financial and other important information regarding the Company in
the Investor Relations section of its website at
www.amg.com and encourages investors to consult that section
regularly.
Investor Relations:Patricia Figueroa
Media Relations:Ann Imes
+1 (617) 747-3300ir@amg.compr@amg.com
Affiliated Managers (NYSE:AMG)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Affiliated Managers (NYSE:AMG)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024