AFFILIATED MANAGERS GROUP, INC. Investor Relations: Anjali Aggarwal Media Relations: Jonathan Freedman
+1 (617) 747-3300 ir@amg.com pr@amg.com
AMG Reports Financial and Operating Results for the First Quarter of 2021
Company reports EPS of $3.41, Economic EPS of $4.28 in first quarter of 2021
- Invested inOCP Asia,a leading alternative manager in private markets providing customized lending solutions across Asia
- Evolved AMG's U.S. wealth distribution platform, expanding commitment to Affiliate growth and improving client outcomes
- Net Income (controlling interest) of $150 million, Economic Net Income of $185 million
- Adjusted EBITDA of $247 million, representing 23% year-over-year growth, primarily driven by Affiliate investment performance
- Repurchased $210 million in common stock during the quarter
WEST PALM BEACH, FL, May 3, 2021 - Affiliated Managers Group, Inc. (NYSE: AMG) today reported its financial and operating results for the first quarter of 2021.
Jay C. Horgen, President and Chief Executive Officer of AMG, said:
"AMG reported growth of 23% in Adjusted EBITDA and 35% in Economic earnings per share relative to the year-ago quarter, our third consecutive quarter of year-over-year growth, further demonstrating positive momentum across the business. Our results reflect strong Affiliate investment performance, improving organic growth trends, and the consistent execution of our growth strategy. Net client cash flows were positive excluding certain quantitative strategies, driven by strength in private markets, specialty fixed income, wealth management, and ESG strategies. With continued momentum in these secular growth areas, including through our strategic focus on new investments, along with increasing demand for active equities, particularly value-andimpact-oriented strategies, AMG is well-positioned for future organic growth.
"As economic activity accelerates and the macro environment presents additional favorable opportunities for active managers, we continue to focus on our core competitive advantages and invest for growth across new Affiliates, existing Affiliates, and our value-added central capabilities. During the quarter, we evolved our U.S. wealth distribution platform for the benefit of clients, by enhancing the quality of our product offering, lowering fees, and clarifying our presence in the market as the premier partner to world-class independent investment firms, all while aligning our capital and resources more fully with our Affiliate partners and their greatest opportunities for growth.
"Given the evolving competitive landscape and the strategic investments we have made over the last two years, AMG's partnership approach is resonating with a broader and more diverse array of high-quality independent firms operating in areas of strong client demand. Our partnership solutions and strategic capabilities are increasingly differentiated components of our approach, as evidenced by the series of new partnerships we have established over the last year. Most recently, we are pleased to welcome our newest Affiliate, OCP Asia, a leading alternative manager providing customized lending solutions with deep expertise in investing across private credit markets in Asia. Looking ahead, with our strong balance sheet and significant cash generation, we are well-positioned to capitalize on the considerable and growing opportunity set ahead, further enabling us to compound earnings growth and create significant shareholder value over time."
FINANCIAL HIGHLIGHTS | Three Months Ended | ||||||
(in millions, except as noted and per share data) | 3/31/2020 | 3/31/2021 | |||||
Operating Performance Measures | |||||||
AUM (at period end, in billions) | $ | 599.9 | $ | 738.0 | |||
Average AUM (in billions) | 663.0 | 733.6 | |||||
Net client cash flows (in billions) | (13.8) | (7.5) | |||||
Aggregate fees | 1,253.1 | 1,414.4 | |||||
Financial Performance Measures | |||||||
Net income (loss) (controlling interest) | $ | (15.6) | $ | 149.9 | |||
Earnings (loss) per share (diluted)(1) | (0.33) | 3.41 | |||||
Supplemental Performance Measures (2) | |||||||
Adjusted EBITDA (controlling interest) | $ | 200.4 | $ | 246.8 | |||
Economic net income (controlling interest) | 151.3 | 184.8 | |||||
Economic earnings per share | 3.16 | 4.28 |
For additional information on our Supplemental Performance Measures, including reconciliations to GAAP, see the Financial Tables and Notes.
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Capital Management
During the first quarter of 2021, the Company repurchased approximately $210 million in common stock and announced a first-quarter cash dividend of $0.01 per share of common stock, payable May 27, 2021 to stockholders of record as of the close of business on May 13, 2021.
About AMG
AMG is a leading partner to independent active investment management firms globally. AMG's strategy is to generate long‐term value by investing in a diverse array of excellent partner-owned investment firms, referred to as "Affiliates," through a proven partnership approach, and allocating resources across the Company'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, global 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 March 31, 2021, AMG's aggregate assets under management were approximately $738 billion, across a broad range of active, return-oriented strategies. For more information, please visit the Company's website at www.amg.com.
Conference Call, Replay and Presentation Information
A 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 13718538. 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
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ASSETS UNDER MANAGEMENT - STATEMENT OF CHANGES (in billions)
BY STRATEGY - QUARTER TO DATE | Alternatives | Global Equities | U.S. Equities | Multi-Asset & | Total | |||||
Fixed Income | ||||||||||
AUM, December 31, 2020 | $ | 216.5 | $ | 278.5 | $ | 103.5 | $ | 117.7 | $ | 716.2 |
Client cash inflows and commitments | 8.3 | 9.1 | 6.7 | 6.7 | 30.8 | |||||
Client cash outflows | (6.1) | (17.1) | (7.8) | (7.3) | (38.3) | |||||
Net client cash flows | 2.2 | (8.0) | (1.1) | (0.6) | (7.5) | |||||
New investments | - | 2.9 | 1.1 | - | 4.0 | |||||
Market changes | 4.4 | 10.5 | 7.0 | 2.5 | 24.4 | |||||
Foreign exchange | 0.3 | 0.8 | 0.1 | 0.2 | 1.4 | |||||
Realizations and distributions (net) | (0.4) | - | - | - | (0.4) | |||||
Other | (0.2) | - | 0.1 | - | (0.1) | |||||
AUM, March 31, 2021 | $ | 222.8 | $ | 284.7 | $ | 110.7 | $ | 119.8 | $ | 738.0 |
High Net | ||||||||||
BY CLIENT TYPE - QUARTER TO DATE | Institutional | Retail | Worth | Total | ||||||
AUM, December 31, 2020 | $ | 401.0 | $ | 189.3 | $ | 125.9 | $ | 716.2 | ||
Client cash inflows and commitments | 9.2 | 14.5 | 7.1 | 30.8 | ||||||
Client cash outflows | (15.5) | (17.3) | (5.5) | (38.3) | ||||||
Net client cash flows | (6.3) | (2.8) | 1.6 | (7.5) | ||||||
New investments | 2.2 | 0.9 | 0.9 | 4.0 | ||||||
Market changes | 12.1 | 8.4 | 3.9 | 24.4 | ||||||
Foreign exchange | 0.8 | 0.5 | 0.1 | 1.4 | ||||||
Realizations and distributions (net) | (0.4) | - | - | (0.4) | ||||||
Other | (0.5) | 0.5 | (0.1) | (0.1) | ||||||
AUM, March 31, 2021 | $ | 408.9 | $ | 196.8 | $ | 132.3 | $ | 738.0 | ||
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CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
Consolidated revenue
Consolidated expenses:
Compensation and related expenses
Selling, general and administrative
Intangible amortization and impairments
Interest expense
Depreciation and other amortization
Other expenses (net)
Total consolidated expenses
Equity method income (loss) (net)(3)
Investment and other income
Income before income taxes
Income tax expense
Net income
Net income (non-controlling interests)
Net income (loss) (controlling interest)
Average shares outstanding (basic)
Average shares outstanding (diluted)
Earnings (loss) per share (basic)
Earnings (loss) per share (diluted)(1)
RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(2)
(in millions, except per share data)
Net income (loss) (controlling interest)
Intangible amortization and impairments
Intangible-related deferred taxes
Other economic items
Economic net income (controlling interest)
Average shares outstanding (adjusted diluted)
Economic earnings per share
Net income (loss) (controlling interest)
Interest expense
Income taxes
Intangible amortization and impairments
Other items
Adjusted EBITDA (controlling interest)
See Notes for additional information.
Three Ended
3/31/2020 3/31/2021
$ 507.3 $ 559.1
207.8 246.9
90.378.8
20.67.5
19.527.5
5.14.3
11.013.5
354.3 378.5
(113.2) 51.7
2.432.3
42.2 264.6
2.250.5
40.0 214.1
(55.6) | (64.2) | ||
$ | (15.6) | $ | 149.9 |
47.842.6
47.845.4
$ | (0.33) | $ | 3.52 |
$ | (0.33) | $ | 3.41 |
Three Months Ended
3/31/2020 | 3/31/2021 | ||||
$ | (15.6) | $ | 149.9 | ||
195.7 | 40.6 | ||||
(31.0) | 8.9 | ||||
2.2 | (14.6) | ||||
$ | 151.3 | $ | 184.8 | ||
47.8 | 43.2 | ||||
$ | 3.16 | $ | 4.28 | ||
$ | (15.6) | $ | 149.9 | ||
19.5 | 27.5 | ||||
0.2 | 48.4 | ||||
195.7 | 40.6 |
0.6 (19.6)
$ 200.4 $ 246.8
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CONSOLIDATED BALANCE SHEET
Period | Ended | |||||
(in millions) | 12/31/2020 | 3/31/2021 | ||||
Assets | ||||||
Cash and cash equivalents | $ | 1,039.7 | $ | 766.2 | ||
Receivables | 421.6 | 509.3 | ||||
Investments in marketable securities | 74.9 | 108.8 | ||||
Goodwill | 2,661.4 | 2,666.2 | ||||
Acquired client relationships (net) | 1,048.8 | 1,044.3 | ||||
Equity method investments in Affiliates (net) | 2,074.8 | 1,999.5 | ||||
Fixed assets (net) | 79.6 | 76.1 | ||||
Other investments | 257.2 | 292.7 | ||||
Other assets | 230.9 | 217.5 | ||||
Total assets | $ | 7,888.9 | $ | 7,680.6 | ||
Liabilities and Equity | ||||||
Payables and accrued liabilities | $ | 712.4 | $ | 543.5 | ||
Debt | 2,312.1 | 2,303.1 | ||||
Deferred income tax liability (net) | 423.4 | 432.9 | ||||
Other liabilities | 452.2 | 483.2 | ||||
Total liabilities | 3,900.1 | 3,762.7 | ||||
Redeemable non-controlling interests | 671.5 | 730.6 | ||||
Equity: | ||||||
Common stock | 0.6 | 0.6 | ||||
Additional paid-in capital | 728.9 | 619.7 | ||||
Accumulated other comprehensive loss | (98.3) | (73.8) | ||||
Retained earnings | 4,005.5 | 4,154.9 | ||||
4,636.7 | 4,701.4 | |||||
Less: treasury stock, at cost | (1,857.0) | (2,050.2) | ||||
Total stockholders' equity | 2,779.7 | 2,651.2 | ||||
Non-controlling interests | 537.6 | 536.1 | ||||
Total equity | 3,317.3 | 3,187.3 | ||||
Total liabilities and equity | $ | 7,888.9 | $ | 7,680.6 | ||
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AMG - Affiliated Managers Group Inc. published this content on 03 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2021 10:58:08 UTC.
