Summary
Affiliated Managers Group, Inc. (AMG) reported solid financial performance for the nine months ended September 30, 2011, demonstrating robust revenue growth and a significant increase in net income attributable to controlling interest. Total revenue rose by 39% to $1,302.4 million, driven by a 40% increase in average assets under management to $332.4 billion. Net income for the controlling interest more than doubled, increasing by 63% to $124.6 million, with diluted earnings per share reaching $2.34, up from $1.57 in the prior year period. The company's asset management business, diversified across mutual fund, institutional, and high net worth channels, saw substantial growth in assets under management. This growth was fueled by net client cash flows and strategic investments in new affiliates, despite some headwinds from global equity market declines. Operating expenses also increased, reflecting this growth and investments, but the company managed to achieve substantial operating leverage, leading to the strong net income performance. AMG's financial position remains solid, with cash and cash equivalents at $323.3 million. The company has managed its debt effectively, with its internal leverage ratio at a healthy 1.2:1 as of September 30, 2011, and it remains compliant with its bank loan covenants. The company also announced a significant amendment and restatement of its credit facility, increasing its borrowing capacity and extending maturities, providing further financial flexibility.
Financial Highlights
45 data points| SG&A Expenses | $83.50M |
| Operating Expenses | $287.80M |
| Operating Income | $126.00M |
| Interest Expense | $18.10M |
| Net Income | $40.10M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 51.90M |
| Shares Outstanding (Diluted) | 53.00M |
Key Highlights
- 1Revenue increased by 39% to $1,302.4 million for the first nine months of 2011 compared to the same period in 2010.
- 2Net income attributable to controlling interest grew by 63% to $124.6 million for the first nine months of 2011.
- 3Diluted earnings per share rose significantly to $2.34 for the nine months ended September 30, 2011, up from $1.57 in the prior year.
- 4Total assets under management increased by 9% to $305.9 billion as of September 30, 2011, driven by net client cash flows and new affiliate investments.
- 5The company maintained strong liquidity with $323.3 million in cash and cash equivalents at the end of the period.
- 6AMG amended and restated its credit facility in November 2011, increasing its total borrowing capacity and extending maturities, enhancing financial flexibility.
- 7Despite market volatility, the company's diversified business model across distribution channels and asset classes contributed to resilient performance.