Federated Hermes Files Q2 2024 10-Q

TL;DR

**FEDERATED HERMES (FHI) Q2 10-Q FILED: Financials and operations update for investors.**

AI Summary

Federated Hermes, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company, which operates in the investment advice sector. Key financial figures and disclosures relevant to investors are presented in this report.

Why It Matters

This 10-Q filing provides crucial insights into Federated Hermes' financial health and operational performance for the second quarter of 2024, impacting investor decisions.

Risk Assessment

Risk Level: medium — As a financial services company, Federated Hermes is subject to market volatility and regulatory changes, which can impact its performance.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2023-12-31 — Previous Year End Date (Provides a comparison point for financial performance from the prior fiscal year-end.)

Key Players & Entities

• FEDERATED HERMES, INC. (company) — Filer
• 20240630 (date) — Reporting period end date
• 1001 LIBERTY AVENUE (address) — Business and mailing address
• PITTSBURGH (location) — City for business and mailing address
• PA (location) — State for business and mailing address
• 15222 (zip_code) — ZIP code for business and mailing address
• 4122881900 (phone_number) — Business phone number
• FEDERATED INVESTORS INC /PA/ (company) — Former company name
• 20200130 (date) — Date of name change
• 19980219 (date) — Date of previous name change

FAQ

Filing Documents

• fhi-20240630.htm (10-Q) — 1800KB
• exhibit311-2024q2.htm (EX-31.1) — 11KB
• exhibit312-2024q2.htm (EX-31.2) — 11KB
• exhibit32-2024q2.htm (EX-32) — 9KB
• 0001056288-24-000018.txt ( ) — 7903KB
• fhi-20240630.xsd (EX-101.SCH) — 45KB
• fhi-20240630_cal.xml (EX-101.CAL) — 71KB
• fhi-20240630_def.xml (EX-101.DEF) — 310KB
• fhi-20240630_lab.xml (EX-101.LAB) — 611KB
• fhi-20240630_pre.xml (EX-101.PRE) — 453KB
• fhi-20240630_htm.xml (XML) — 1034KB

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 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 42

Controls and Procedures

Item 4. Controls and Procedures 43

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 43

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43

Other Information 43

Item 5. Other Information 43

Exhibits

Item 6. Exhibits 44

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; projected growth rates, projected pre-tax profit margins, discount rates, and 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; potential changes to the Federal Reserve Board's (Federal Reserve) tapering policy or the Department of Treasury' s plans to purchase Treasury securities; 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 mainta

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (dollars in thousands) (unaudited) June 30, 2024 December 31, 2023 ASSETS Current Assets Cash and Cash Equivalents $ 307,433 $ 383,180 Investments—Consolidated Investment Companies 72,847 70,543 Investments—Affiliates and Other 72,599 106,952 Receivables, net of reserve of $ 21 and $ 21 , respectively 72,086 75,721 Receivables—Affiliates 44,472 48,694 Prepaid Expenses 37,911 29,739 Other Current Assets 5,953 5,900 Total Current Assets 613,301 720,729 Long-Term Assets Goodwill 806,069 807,156 Intangible Assets, net of accumulated amortization of $ 70,045 and $ 64,112 , respectively 335,554 409,449 Property and Equipment, net of accumulated depreciation of $ 122,372 and $ 119,852 , respectively 32,170 30,711 Right-of-Use Assets, net 92,464 99,265 Other Long-Term Assets 31,949 34,534 Total Long-Term Assets 1,298,206 1,381,115 Total Assets $ 1,911,507 $ 2,101,844 LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses $ 92,564 $ 88,290 Accrued Compensation and Benefits 93,153 158,392 Lease Liabilities 16,437 16,283 Other Current Liabilities 21,226 24,378 Total Current Liabilities 223,380 287,343 Long-Term Liabilities Long-Term Debt 347,974 347,843 Long-Term Deferred Tax Liability, net 181,403 186,292 Long-Term Lease Liabilities 85,748 93,816 Other Long-Term Liabilities 25,486 32,453 Total Long-Term Liabilities 640,611 660,404 Total Liabilities 863,991 947,747 Commitments and Contingencies (Note (17)) TEMPORARY EQUITY Redeemable Noncontrolling Interests in Subsidiaries 30,491 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 491,204 474,814 Additional Paid-In Capital from Treasury Stock Transactions 0 2 Retained Earnings 1,145,844 1,194,561 Treas

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View this 10-Q filing on SEC EDGAR