For those who don't want the volatility of Internuts, AMG had a nice little bounce after meeting estimates. It's my newest addition to the 50% portfolio.
Wednesday April 21, 8:47 am Eastern Time
Company Press Release
SOURCE: Affiliated Managers Group, Inc.
AMG Reports Financial and Operating Results for First Quarter of 1999
Company Reports First Quarter EPS of $0.36, a 44% Increase Over Prior Year
BOSTON, April 21 /PRNewswire/ -- Affiliated Managers Group, Inc. (NYSE: AMG - news), an asset management holding company, today reported its financial and operating results for the first quarter ended March 31, 1999. Among the quarter's significant events were the completion of AMG's investment in Rorer Asset Management, LLC (''Rorer'') in January, a successful equity offering in February, and on April 1, the closing of the Company's previously announced acquisition of The Managers Funds LLC.
Diluted earnings per share for the first quarter of 1999 were $0.36, a 44% increase over diluted earnings per share of $0.25 for the first quarter of 1998. On the same per share basis, EBITDA as adjusted (net income plus non-cash items, as defined in Note 2 to the attached Summary Financial Data) was $0.65 for the first quarter of 1999, a 35% increase compared to $0.48 per share for the first quarter of 1998. Aggregate net income for the first quarter of 1999 was $7.5 million, compared to $4.5 million for the first quarter of 1998, and aggregate EBITDA as adjusted for the first quarter of 1999 was $13.5 million, compared to $8.8 million for the first quarter of 1998. Earnings before interest expense, income taxes, depreciation and amortization (''EBITDA'') for the first quarter of 1999 was $22.2 million versus $14.9 million for the first quarter of 1998, and revenues for the first quarter of 1999 were $68.1 million versus $45.7 million for the first quarter of 1998.
Assets under management at March 31, 1999 were $64.2 billion. Aggregate net client cash flow for directly managed assets was $381.0 million for the first quarter of 1999, while overlay assets (which generally carry lower fees than directly managed assets) declined by $1.1 billion during this period. Assets under management by Tweedy, Browne Company LLC, AMG's largest Affiliate based on EBITDA Contribution (as defined in Note 4 to the attached Summary Financial Data), rose to $6.7 billion.
''Our strong financial results this quarter are attributable to both the internal growth of existing Affiliates and growth through new investments, such as Rorer,'' said William J. Nutt, Chairman, Chief Executive Officer, and President of AMG. ''In addition, our equity offering has strengthened our capital base and ability to finance new investments.'' Nutt continued, ''Finally, our acquisition of The Managers Funds LLC was an attractive stand-alone investment and provides us with a mutual fund platform which will allow our Affiliates to access retail distribution channels on a cost-effective basis in the future.''
AMG addresses the succession and transition issues facing the principals of growing mid-sized investment management firms. The Company's strategy is to generate growth through investments in new Affiliates, as well as through the internal growth of its existing Affiliates. AMG's innovative transaction structure allows individual members of each Affiliate's management to retain or receive significant direct ownership in their firm while maintaining operating autonomy. In addition, AMG provides centralized assistance to its Affiliates, when requested, in strategic matters, marketing and distribution, product development, and operations support. To date, AMG has made investments in 13 Affiliates and acquired a mutual fund subsidiary.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. 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, the availability of equity and debt financing, competition for acquisitions of interest in investment management firms, the performance of the existing funds and operations at The Managers Funds LLC, our ability to develop a cost-effective means for our Affiliates to offer mutual funds on terms acceptable to us, our Affiliates, and The Managers Funds LLC, and other risks detailed from time to time in AMG's filings with the Securities and Exchange Commission. Reference is hereby made to the ''Cautionary Statements'' set forth in the Company's Form 10-K for the year ended December 31, 1998.
Affiliated Managers Group, Inc.
Summary Financial Data
(dollars in thousands, except as indicated and share and per share data)
Three months Three months
Ended 3/31/98 Ended 3/31/99
Statement of Income Data:
Revenues $45,723 $68,127
Other operating expenses 24,688 36,278
Depreciation and amortization 4,342 6,002
Operating income 16,693 25,847
Investment and other income (311) (912)
Interest expense 3,074 3,445
Income before minority interest and
income taxes 13,930 23,314
Minority interest (6,493) (10,528)
Income before income taxes 7,437 12,786
Income tax expense 2,975 5,242
Net income $4,462 $7,544
Average shares outstanding - basic 17,594,555 19,023,027
Average shares outstanding - diluted 18,176,428 20,726,355
Net income per share - basic $0.25 $0.40
Net income per share - diluted $0.25 $0.36
Other Financial Data:
EBITDA(A) $14,853 $22,233
EBITDA as adjusted (B) $8,804 $13,546
EBITDA as adjusted per share $0.48 $0.65
(under same method used
to calculate diluted
earnings per share)
Dec. 31 March 31
Balance Sheet Data: 1998 1999
Senior debt $190,500 $158,000
Subordinated debt 800 800
Stockholder's equity $313,655 $422,775
Affiliated Mangers Group, Inc.
Summary Financial Data
(dollars in thousands, except as indicated)
Supplemental Reported Information:
Assets under management Three months
(at period end, in millions): Ended 3/31/99
Tweedy, Browne $6,708
Other Affiliates 57,462
Total $64,170
Revenues:
Tweedy, Browne $20,459
Other Affiliates 47,668
Total $68,127
Owners' Allocation (C):
Tweedy, Browne $14,198
Other Affiliates 20,964
Total $35,162
EBITDA Contribution(D):
Tweedy, Browne $10,226
Other Affiliates 14,507
Total $24,733
Reconciliation of EBITDA Contribution to EBITDA:
Total EBITDA (as above) $24,733
Less, holding company expenses (2,500)
EBITDA $22,233
Notes:
(A) EBITDA represents earnings before interest expense, income taxes,
depreciation and amortization
(B) EBITDA as adjusted represents earnings after interest expense and
income taxes but before depreciation and amortization
(C) Owners' Allocation represents the portion of an Affiliate's revenues
which is allocated to the owners or that Affiliate, including AMG,
generally in proportion to their ownership interest, pursuant to the
revenue sharing agreement with such Affiliate
(D) EBITDA Contribution represents the portion of an Affiliate's revenues
that is allocated to AMG after amounts retained by the Affiliate for
compensation and day-to-day operating and overhead expenses, before
the interest, income taxes, depreciation and amortization expenses of
the Affiliate.
SOURCE: Affiliated Managers Group, Inc.
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