Federated Hermes Files Q3 2024 10-Q

TL;DR

**Federated Hermes Q3 2024 10-Q filed. Financials look steady.**

AI Summary

Federated Hermes, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial position and performance, including its assets under management and revenue streams. Specific financial figures and operational details for the third quarter of 2024 are presented.

Why It Matters

This filing provides investors with a detailed look at Federated Hermes' financial health and operational performance during the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 20240930 — Reporting Period End Date (Indicates the end of the fiscal quarter being reported.)
• 20241025 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• FEDERATED HERMES, INC. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241025 (date) — Date of filing
• 1001 LIBERTY AVENUE (address) — Company's business and mail address
• PITTSBURGH (location) — City of company's address
• PA (location) — State of company's address
• 15222 (zip_code) — Zip code of company's address
• 4122881900 (phone_number) — Company's business phone number

FAQ

Filing Documents

• fhi-20240930.htm (10-Q) — 1896KB
• exhibit311-2024q3.htm (EX-31.1) — 11KB
• exhibit312-2024q3.htm (EX-31.2) — 11KB
• exhibit32-2024q3.htm (EX-32) — 9KB
• 0001056288-24-000025.txt ( ) — 8068KB
• fhi-20240930.xsd (EX-101.SCH) — 43KB
• fhi-20240930_cal.xml (EX-101.CAL) — 72KB
• fhi-20240930_def.xml (EX-101.DEF) — 296KB
• fhi-20240930_lab.xml (EX-101.LAB) — 582KB
• fhi-20240930_pre.xml (EX-101.PRE) — 443KB
• fhi-20240930_htm.xml (XML) — 1119KB

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 40

Controls and Procedures

Item 4. Controls and Procedures 40

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41

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; 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; money market funds' potential yield advantage in a falling interest rate environment; 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),

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (dollars in thousands) (unaudited) September 30, 2024 December 31, 2023 ASSETS Current Assets Cash and Cash Equivalents $ 374,952 $ 383,180 Investments—Consolidated Investment Companies 116,380 70,543 Investments—Affiliates and Other 73,696 106,952 Receivables, net of reserve of $ 21 and $ 21 , respectively 79,095 75,721 Receivables—Affiliates 39,133 48,694 Prepaid Expenses 33,627 29,739 Other Current Assets 6,303 5,900 Total Current Assets 723,186 720,729 Long-Term Assets Goodwill 813,547 807,156 Intangible Assets, net of accumulated amortization of $ 77,340 and $ 64,112 , respectively 342,588 409,449 Property and Equipment, net of accumulated depreciation of $ 122,146 and $ 119,852 , respectively 27,553 30,711 Right-of-Use Assets, net 90,471 99,265 Other Long-Term Assets 40,206 34,534 Total Long-Term Assets 1,314,365 1,381,115 Total Assets $ 2,037,551 $ 2,101,844 LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses $ 98,112 $ 88,290 Accrued Compensation and Benefits 127,215 158,392 Lease Liabilities 16,186 16,283 Other Current Liabilities 21,625 24,378 Total Current Liabilities 263,138 287,343 Long-Term Liabilities Long-Term Debt 348,040 347,843 Long-Term Deferred Tax Liability, net 176,423 186,292 Long-Term Lease Liabilities 83,593 93,816 Other Long-Term Liabilities 29,433 32,453 Total Long-Term Liabilities 637,489 660,404 Total Liabilities 900,627 947,747 Commitments and Contingencies (Note (17)) TEMPORARY EQUITY Redeemable Noncontrolling Interests in Subsidiaries 53,408 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 497,341 474,814 Additional Paid-In Capital from Treasury Stock Transactions 0 2 Retained Earnings 1,207,794 1,194,561

View Full Filing

View this 10-Q filing on SEC EDGAR