Summary
Affiliated Managers Group, Inc. (AMG) reported a strong performance for the six months ended June 30, 2017, with Net Income attributable to controlling interest increasing by 17% to $248.8 million, compared to $212.3 million in the prior year. This growth was driven by a significant increase in aggregate revenue, up 30% to $2,588.7 million, largely propelled by a 65% surge in equity method revenue. Assets under management also saw robust growth, rising 19% to $772.1 billion, reflecting strong client demand for active return-oriented strategies. The company's financial health remains solid, with ample liquidity and manageable debt levels, positioning it favorably for continued growth.
Financial Highlights
43 data pointsBeta
Financial Statements
Beta
| Revenue | $570.90M |
| SG&A Expenses | $89.10M |
| Operating Expenses | $394.90M |
| Operating Income | $275.90M |
| Interest Expense | $23.10M |
| Net Income | $126.30M |
| EPS (Basic) | $2.24 |
| EPS (Diluted) | $2.22 |
| Shares Outstanding (Basic) | 56.30M |
| Shares Outstanding (Diluted) | 58.70M |
Key Highlights
- 1Net income attributable to controlling interest grew 17% to $248.8 million for the six months ended June 30, 2017.
- 2Aggregate revenue increased 30% to $2,588.7 million for the first six months of 2017, driven by a substantial 65% rise in equity method revenue.
- 3Assets under management (AUM) increased by 19% to $772.1 billion as of June 30, 2017, highlighting strong investor demand for active management strategies.
- 4Average assets under management (AUM) rose by 18% to $764.4 billion for the three months ended June 30, 2017, and 19% for the six months ended June 30, 2017, indicating solid growth in managed assets.
- 5Operating expenses decreased slightly by 0.1% to $737.7 million for the six months ended June 30, 2017, primarily due to a reduction in Selling, general and administrative expenses and Intangible amortization and impairments.
- 6The company maintained a strong liquidity position, with cash and cash equivalents of $364.6 million as of June 30, 2017.
- 7AMG redeemed $200.0 million of its 6.375% senior unsecured notes due 2042 on August 15, 2017, demonstrating proactive debt management.
Frequently Asked Questions
The primary driver of revenue growth was a substantial 65% increase in equity method revenue, which was largely due to a 41% increase in asset-based revenue and a 24% increase in performance fees from equity method affiliates. This was complemented by a modest 1% increase in revenue from consolidated affiliates.
Assets Under Management (AUM) showed strong growth, increasing by 19% to $772.1 billion as of June 30, 2017. This growth was particularly strong in equity method affiliates, which saw a 31% increase in AUM, contributing significantly to the overall rise.
Equity Method Revenue represents the earnings from affiliates that are accounted for using the equity method. As AMG increasingly utilizes this accounting method for its affiliates, this revenue stream has become a more significant contributor to the company's overall financial performance, as seen in the substantial growth reported for the first half of 2017.
Total operating expenses for the consolidated affiliates decreased slightly by 0.1% to $737.7 million for the six months ended June 30, 2017. This was primarily due to a decrease in Selling, general and administrative expenses (down 8%) and Intangible amortization and impairments (down 21%).