Federated Hermes, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Federated Hermes, Inc. has filed its Q1 2024 10-Q report.</b>

AI Summary

FEDERATED HERMES, INC. (FHI) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. Federated Hermes, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. The filing was made on April 26, 2024. The company's principal business is Investment Advice (SIC 6282).

Why It Matters

For investors and stakeholders tracking FEDERATED HERMES, INC., this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational details for Federated Hermes, Inc. for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's financial health, investment strategies, and market position in the asset management industry.

Risk Assessment

Risk Level: low — FEDERATED HERMES, INC. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant new risks or disclosures beyond routine financial reporting.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand the company's performance drivers and outlook.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-01-01 — Quarter Start Date (Quarterly report period)
• 2024-04-26 — Filing Date (Date the report was filed)
• 1231 — Fiscal Year End (Company's fiscal year end)

Key Players & Entities

• FEDERATED HERMES, INC. (company) — Filer name
• 0001056288 (company) — Central Index Key
• 20240331 (date) — Period of report
• 20240426 (date) — Filing date
• 1001 LIBERTY AVENUE (address) — Business address street 1
• PITTSBURGH (location) — Business address city
• PA (location) — Business address state
• 15222 (postal_code) — Business address zip

FAQ

Industry Context

Federated Hermes operates in the investment management industry, providing a range of investment and administrative services to institutional and retail clients.

Regulatory Implications

The company is subject to regulations governing investment advisors and asset managers, overseen by bodies like the SEC.

What Investors Should Do

1. Analyze the revenue and net income figures for Q1 2024 compared to prior periods.
2. Review any disclosed risk factors or legal proceedings mentioned in the full filing.
3. Assess the company's cash position and debt levels as detailed in the balance sheet.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-04-26: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first set of quarterly financial data for the year.

Filing Documents

• fhi-20240331.htm (10-Q) — 1417KB
• exhibit311-2024q1.htm (EX-31.1) — 11KB
• exhibit312-2024q1.htm (EX-31.2) — 11KB
• exhibit32-2024q1.htm (EX-32) — 9KB
• 0001056288-24-000014.txt (&nbsp;) — 6854KB
• fhi-20240331.xsd (EX-101.SCH) — 43KB
• fhi-20240331_cal.xml (EX-101.CAL) — 71KB
• fhi-20240331_def.xml (EX-101.DEF) — 293KB
• fhi-20240331_lab.xml (EX-101.LAB) — 572KB
• fhi-20240331_pre.xml (EX-101.PRE) — 432KB
• fhi-20240331_htm.xml (XML) — 820KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets 4 Consolidated Statements of Income 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Changes in Equity 7 Consolidated Statements of Cash Flows 8 Notes to the Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 40

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 40

Risk Factors

Item 1A. Risk Factors 40

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41

Other Information 41

Item 5. Other Information 41

Exhibits

Item 6. Exhibits 42

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements in this report on Form 10-Q constitute forward-looking statements, which involve known and unknown risks, uncertainties, and other factors that could cause the actual results, levels of activity, performance or achievements of Federated Hermes, Inc. and its consolidated subsidiaries (collectively, Federated Hermes), or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are typically identified by words or phrases such as "forecast," "project," "predict," "trend," "approximate," "potential," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may," and similar expressions. Among other forward-looking statements, such statements include certain statements relating to, or, as applicable, statements concerning management's assessments, beliefs, expectations, assumptions, judgments, projections or estimates regarding: asset flows, levels, values and mix and their impact; the possibility and potential impact of impairments; business mix; the level, timing, degree and impact of changes in interest rates or gross or net yields; rates of inflation; fee rates and recognition; sources, levels and recognition of revenues, expenses, gains, losses, income and earnings; the level and impact of reimbursements, rebates or assumptions of fund-related expenses and fee waivers for competitive reasons such as to maintain positive or zero net yields (Voluntary Yield-related Fee Waivers), to maintain certain fund expense ratios, to meet regulatory requirements or to meet contractual requirements (collectively, Fee Waivers); whether, under what circu

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (dollars in thousands) (unaudited) March 31, 2024 December 31, 2023 ASSETS Current Assets Cash and Cash Equivalents $ 359,782 $ 383,180 Investments—Consolidated Investment Companies 123,912 70,543 Investments—Affiliates and Other 74,838 106,952 Receivables, net of reserve of $ 21 and $ 21 , respectively 71,648 75,721 Receivables—Affiliates 49,277 48,694 Prepaid Expenses 34,072 29,739 Other Current Assets 6,127 5,900 Total Current Assets 719,656 720,729 Long-Term Assets Goodwill 805,925 807,156 Intangible Assets, net of accumulated amortization of $ 66,747 and $ 64,112 , respectively 404,148 409,449 Property and Equipment, net of accumulated depreciation of $ 121,187 and $ 119,852 , respectively 28,621 30,711 Right-of-Use Assets, net 95,556 99,265 Other Long-Term Assets 33,066 34,534 Total Long-Term Assets 1,367,316 1,381,115 Total Assets $ 2,086,972 $ 2,101,844 LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses $ 88,403 $ 88,290 Accrued Compensation and Benefits 66,452 158,392 Lease Liabilities 16,114 16,283 Income Taxes Payable 23,804 142 Other Current Liabilities 17,726 24,236 Total Current Liabilities 212,499 287,343 Long-Term Liabilities Long-Term Debt 347,909 347,843 Long-Term Deferred Tax Liability, net 188,616 186,292 Long-Term Lease Liabilities 89,593 93,816 Other Long-Term Liabilities 27,798 32,453 Total Long-Term Liabilities 653,916 660,404 Total Liabilities 866,415 947,747 Commitments and Contingencies (Note (17)) TEMPORARY EQUITY Redeemable Noncontrolling Interests in Subsidiaries 73,130 25,845 PERMANENT EQUITY Federated Hermes, Inc. Shareholders' Equity Common Stock: Class A, No Par Value, 20,000 Shares Authorized, 9,000 Shares Issued and Outstanding 189 189 Class B, No Par Value, 900,000,000 Shares Authorized, 99,505,456 Shares Issued 485,076 474,814 Additional Paid-In Capital from Treasury Stock Transactions 0 2 Retained E

View Full Filing

View this 10-Q filing on SEC EDGAR