Summary
Affiliated Managers Group, Inc. (AMG) reported a challenging year in 2019, with net income (controlling interest) dropping significantly to $15.7 million from $243.6 million in 2018. This decline was largely driven by substantial increases in intangible amortization and impairments, particularly related to equity method investments, and a decrease in Adjusted EBITDA. Aggregate fees also decreased by 9% to $4,962.7 million, reflecting an 8% reduction in average assets under management, impacted by client outflows in certain strategies and a slight decline in the asset-based fee ratio. Despite these financial headwinds, AMG continued its strategy of investing in high-quality boutique investment management firms. The company completed an investment in Garda Capital Partners LP and announced the acquisition of Comvest Partners. AMG also focused on returning capital to shareholders, repurchasing approximately $421.4 million of its common stock and paying dividends. The company's liquidity remains solid, with $539.6 million in cash and cash equivalents at year-end 2019, and it maintains compliance with its debt covenants.
Financial Highlights
41 data points| Revenue | $2.24B |
| SG&A Expenses | $376.80M |
| Operating Expenses | $1.62B |
| Interest Expense | $76.20M |
| Net Income | $15.70M |
| EPS (Basic) | $0.31 |
| EPS (Diluted) | $0.31 |
| Shares Outstanding (Basic) | 50.50M |
| Shares Outstanding (Diluted) | 50.60M |
Key Highlights
- 1Net income (controlling interest) significantly decreased by 94% to $15.7 million in 2019, primarily due to increased intangible amortization and impairments.
- 2Aggregate fees decreased by 9% to $4,962.7 million, driven by an 8% decline in average assets under management, particularly in alternative and global equity strategies.
- 3The company completed an investment in Garda Capital Partners LP and announced the acquisition of Comvest Partners, continuing its strategy of acquiring boutique asset managers.
- 4AMG returned $421.4 million to shareholders through share repurchases and paid $66.1 million in dividends in 2019.
- 5Total assets under management decreased to $722.5 billion as of December 31, 2019, down from $736.0 billion at the end of 2018.
- 6Adjusted EBITDA (controlling interest) declined by 12% to $841.6 million, reflecting lower aggregate fees and decreased earnings at certain affiliates.
- 7The company's debt remained manageable, with total debt at $1,793.8 million as of December 31, 2019, and it was in compliance with its debt covenants.