AMG Files 10-Q: Details Subordinated Notes

TL;DR

AMG 10-Q filed. Shows debt details. Looks stable.

AI Summary

Affiliated Managers Group, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and includes information on various subordinated notes, such as the Five Point Eight Seventy Five Junior Subordinated Notes Due 2059 and Four Point Seventy Five Junior Subordinated Notes Due 2060. The company's fiscal year ends on December 31st.

Why It Matters

This filing provides investors with an update on Affiliated Managers Group's financial health and debt structure, crucial for understanding the company's stability and future prospects.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant financial distress.

Key Numbers

• 2024-09-30 — Reporting Period End (Quarterly financial update)
• 2024-11-07 — Filing Date (Date the report was submitted)

Key Players & Entities

• AFFILIATED MANAGERS GROUP, INC. (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241107 (date) — Filing Date
• FivePointEightSeventyFiveJuniorSubordinatedNotesDue2059 (dollar_amount) — Debt Instrument
• FourPointSeventyFiveJuniorSubordinatedNotesDue2060 (dollar_amount) — Debt Instrument

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock ($0.01 par value) AMG New York Stock Excha

Filing Documents

• amg-20240930.htm (10-Q) — 3717KB
• amg_09302024xexhibit311.htm (EX-31.1) — 11KB
• amg_09302024xexhibit312.htm (EX-31.2) — 11KB
• amg_09302024xexhibit321.htm (EX-32.1) — 6KB
• amg_09302024xexhibit322.htm (EX-32.2) — 6KB
• amg-20240930_g1.gif (GRAPHIC) — 15KB
• amg-20240930_g2.jpg (GRAPHIC) — 39KB
• 0001004434-24-000049.txt ( ) — 14024KB
• amg-20240930.xsd (EX-101.SCH) — 77KB
• amg-20240930_cal.xml (EX-101.CAL) — 86KB
• amg-20240930_def.xml (EX-101.DEF) — 341KB
• amg-20240930_lab.xml (EX-101.LAB) — 719KB
• amg-20240930_pre.xml (EX-101.PRE) — 531KB
• amg-20240930_htm.xml (XML) — 2850KB

Financial Statements (unaudited)

Financial Statements (unaudited) CONSOLIDATED STATEMENTS OF INCOME 2 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 3 CONSOLIDATED BALANCE SHEETS 4 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 5 CONSOLIDATED STATEMENTS OF CASH FLOWS 7 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 41 PART II Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 6. Exhibits 42 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data) (unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2024 2023 2024 Consolidated revenue $ 525.2 $ 516.4 $ 1,555.2 $ 1,516.6 Consolidated expenses: Compensation and related expenses 211.8 220.8 663.0 676.5 Selling, general and administrative 91.1 97.0 273.4 278.1 Intangible amortization and impairments 12.5 7.3 37.5 21.8 Interest expense 31.1 34.7 92.4 98.1 Depreciation and other amortization 3.0 3.3 10.0 9.4 Other expenses (net) 7.9 11.6 36.2 31.5 Total consolidated expenses 357.4 374.7 1,112.5 1,115.4 Equity method income (net) 39.8 52.6 154.3 188.3 Affiliate Transaction gain (Note 9) 133.1 — 133.1 — Investment and other income 23.0 22.8 87.2 60.0 Income before income taxes 363.7 217.1 817.3 649.5 Income tax expense 77.7 31.3 155.4 130.0 Net income 286.0 185.8 661.9 519.5 Net income (non-controlling interests) ( 69.0 ) ( 62.2 ) ( 185.1 ) ( 170.0 ) Net income (controlling interest) $ 217.0 $ 123.6 $ 476.8 $ 349.5 Average shares outstanding (basic) 34.9 30.1 35.6 31.4 Average shares outstanding (diluted) 43.4 35.0 42.9 35.2 Earnings per share (basic) $ 6.22 $ 4.11 $ 13.41 $ 11.11 Earnings per share (diluted) $ 5.48 $ 3.78 $ 12.28 $ 10.25 The accompanying notes are an integral part of the Consolidated Financial Statements. 3 Table of Contents AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) (unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2024 2023 2024 Net income $ 286.0 $ 185.8 $ 661.9 $ 519.5 Other comprehensive income (loss), net of tax: Fore

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Basis of Presentation and Use of Estimates The Consolidated Financial Statements of Affiliated Managers Group, Inc. ("AMG" or the "Company") have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for full year financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair statement of the Company's interim financial position and results of operations have been included and all intercompany balances and transactions have been eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for any other period or for the full year. The Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 includes additional information about its operations, financial position, and accounting policies, and should be read in conjunction with this Quarterly Report on Form 10-Q. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. All amounts in these notes, except per share data in the text and tables herein, are stated in millions unless otherwise indicate d . 2. Accounting Standards and Policies Recently Adopted Accounting Standards Effective January 1, 2024, the Company adopted Accounting Standard Update ("ASU") 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The adoption of this standard did not have a material impact on the Company's Consolidated Financial Statem

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) December 31, 2023 September 30, 2024 Cost $ 35.3 $ 37.6 Unrealized gains 2.6 4.7 Unrealized losses ( 0.0 ) ( 0.3 ) Fair value $ 37.9 $ 42.0 As of December 31, 2023 and September 30, 2024 , investments in equity securities include consolidated Affiliate sponsored investment products with fair values of $ 15.8 million and $ 11.9 million , respectively. For the three months ended September 30, 2023 , the Company recognized net unrealized losses on equity securities still held as of September 30, 2023 of $ 2.1 million . For the nine months ended September 30, 2023, the Company recognized net unrealized gains on equity securities still held as of September 30, 2023 of $ 1.3 million . For the three and nine months ended September 30, 2024 , the Company recognized net unrealized gains on equity securities still held as of September 30, 2024 of $ 2.0 million and $ 3.5 million , respectively. Debt Securities The following table summarizes the cost, gross unrealized gains, gross unrealized losses, and fair value of investments in U.S. Treasury securities classified as available-for-sale, all of which matured during the nine months ended September 30, 2024 , and consolidated Affiliate sponsored investment products classified as trading: Available-for-Sale Trading December 31, 2023 September 30, 2024 December 31, 2023 September 30, 2024 Cost $ 405.4 $ — $ 17.9 $ 23.3 Unrealized gains 0.0 — — 0.8 Unrealized losses ( 0.1 ) — ( 0.1 ) — Fair value $ 405.3 $ — $ 17.8 $ 24.1 For the three and nine months ended September 30, 2023 , the Company received $ 178.4 million and $ 280.1 million of proceeds from the maturity of available-for sale securities, respectively, and purchased $ 245.3 million and $ 420.3 million of available-for-sale securities, respectively. For the three months ended September 30, 2024 , the Company received $

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) December 31, 2023 September 30, 2024 Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity funds (1) $ 424.4 $ 187.2 $ 477.5 $ 215.7 Investments in other strategies (2) 6.1 — 4.9 — Total (3) $ 430.5 $ 187.2 $ 482.4 $ 215.7 ___________________________ (1) The Company accounts for the majority of its interests in private equity funds one quarter in arrears (adjusted for current period calls and distributions). These funds primarily invest in a broad range of third-party funds and direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years . (2) These are multi-disciplinary funds that invest across various asset classes and strategies, including equity and credit. Investments are generally redeemable on a daily, monthly, or quarterly basis. (3) Fair value attributable to the controlling interest was $ 324.9 million and $ 363.4 million as of December 31, 2023 and September 30, 2024 , respectively. Investments Without Readily Determinable Fair Values The Company made an investment in a private corporation where it does not exercise significant influence. Because this investment does not have a readily determinable fair value, the Company has elected to measure this investment at its cost minus impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments in the private corporation. The following table summarizes the cost, cumulative unrealized gains, and carrying amount of investments without readily determinable fair values: December 31, 2023 September 30, 2024 Cost $ 8.5 $ 8.5 Cumulative unrealized gains 41.9 41.9 Carrying amount $ 50.4 $ 50.4 For the three and nine months ended September 30, 2024 , the Company recorded no gains or lo

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) For the Nine Months Ended September 30, 2023 2024 Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Balance, beginning of period $ 371.2 $ 50.4 $ 421.6 $ 430.5 $ 50.4 $ 480.9 Purchases and commitments 62.0 — 62.0 78.1 — 78.1 Sales and distributions ( 49.4 ) — ( 49.4 ) ( 47.1 ) — ( 47.1 ) Net realized and unrealized gains 23.7 — 23.7 20.9 — 20.9 Balance, end of period $ 407.5 $ 50.4 $ 457.9 $ 482.4 $ 50.4 $ 532.8 5. Fair Value Measurement s The following tables summarize financial assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Investments in equity securities (1) $ 37.9 $ 37.9 $ — $ — Investments in debt securities (1) 423.1 — 423.1 — Financial Liabilities (2) Contingent payment obligations $ 14.7 $ — $ — $ 14.7 Affiliate equity purchase obligations 53.9 — — 53.9 Fair Value Measurements September 30, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Investments in equity securities (1) $ 42.0 $ 42.0 $ — $ — Investments in debt securities (1) 24.1 — 24.1 — Financial Liabilities (2) Contingent payment obligation

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View this 10-Q filing on SEC EDGAR