ASSOCIATED CAPITAL GROUP, INC. Reports First Quarter Results
Associated Capital Group (AC) reported its Q1 2025 financial results with AUM of $1.27 billion, up from $1.25 billion in Q4 2024. The company's Merger Arbitrage strategy delivered 3.8% gross returns (2.8% net) in Q1. Key financial metrics include:
- Total revenues: $2.1 million (down from $3.0 million in Q1 2024)
- Net income: $7.7 million ($0.36 per share)
- Book value: $42.51 per share (up from $42.14 in Q4 2024)
The company announced a leadership change with Patrick Huvane appointed as Interim CEO following Doug Jamieson's retirement. AC declared a semi-annual dividend of $0.10 per share and repurchased 39,018 Class A shares for $1.4 million at an average price of $36.32 per share during Q1 2025.
Associated Capital Group (AC) ha comunicato i risultati finanziari del primo trimestre 2025 con un AUM di 1,27 miliardi di dollari, in aumento rispetto agli 1,25 miliardi di dollari del quarto trimestre 2024. La strategia di Merger Arbitrage ha generato rendimenti lordi del 3,8% (2,8% netti) nel primo trimestre. I principali indicatori finanziari sono:
- Ricavi totali: 2,1 milioni di dollari (in calo rispetto ai 3,0 milioni del primo trimestre 2024)
- Utile netto: 7,7 milioni di dollari (0,36 dollari per azione)
- Valore contabile: 42,51 dollari per azione (in aumento rispetto a 42,14 del quarto trimestre 2024)
L'azienda ha annunciato un cambio ai vertici con la nomina di Patrick Huvane come Amministratore Delegato ad interim dopo il pensionamento di Doug Jamieson. AC ha dichiarato un dividendo semestrale di 0,10 dollari per azione e ha riacquistato 39.018 azioni di Classe A per 1,4 milioni di dollari a un prezzo medio di 36,32 dollari per azione nel primo trimestre 2025.
Associated Capital Group (AC) reportó sus resultados financieros del primer trimestre de 2025 con un AUM de 1.270 millones de dólares, aumentando desde 1.250 millones en el cuarto trimestre de 2024. La estrategia de Arbitraje de Fusiones entregó rendimientos brutos del 3,8% (2,8% netos) en el primer trimestre. Las métricas financieras clave incluyen:
- Ingresos totales: 2,1 millones de dólares (por debajo de 3,0 millones en el primer trimestre de 2024)
- Ingreso neto: 7,7 millones de dólares (0,36 dólares por acción)
- Valor contable: 42,51 dólares por acción (aumentando desde 42,14 en el cuarto trimestre de 2024)
La compañía anunció un cambio en el liderazgo con la nombramiento de Patrick Huvane como CEO interino tras la jubilación de Doug Jamieson. AC declaró un dividendo semestral de 0,10 dólares por acción y recompró 39.018 acciones Clase A por 1,4 millones de dólares a un precio promedio de 36,32 dólares por acción durante el primer trimestre de 2025.
Associated Capital Group(AC)는 2025년 1분기 재무 실적을 발표하며 운용자산총액(AUM)이 12억 7천만 달러로 2024년 4분기의 12억 5천만 달러에서 증가했다고 밝혔습니다. 회사의 합병 차익거래 전략은 1분기에 총 3.8% 수익률(순수익률 2.8%)을 기록했습니다. 주요 재무 지표는 다음과 같습니다:
- 총 수익: 210만 달러 (2024년 1분기 300만 달러 대비 감소)
- 순이익: 770만 달러 (주당 0.36달러)
- 장부가치: 주당 42.51달러 (2024년 4분기 42.14달러 대비 상승)
회사는 더그 제이미슨의 은퇴 이후 패트릭 휴베인(Patrick Huvane)을 임시 CEO로 임명하는 경영진 변화를 발표했습니다. AC는 주당 0.10달러의 반기 배당금을 선언했으며, 2025년 1분기 동안 평균 주당 36.32달러에 39,018주의 클래스 A 주식을 140만 달러에 재매입했습니다.
Associated Capital Group (AC) a publié ses résultats financiers du premier trimestre 2025 avec un actif sous gestion (AUM) de 1,27 milliard de dollars, en hausse par rapport à 1,25 milliard au quatrième trimestre 2024. La stratégie de Merger Arbitrage a généré un rendement brut de 3,8 % (2,8 % net) au premier trimestre. Les principaux indicateurs financiers sont :
- Revenus totaux : 2,1 millions de dollars (en baisse par rapport à 3,0 millions au premier trimestre 2024)
- Résultat net : 7,7 millions de dollars (0,36 dollar par action)
- Valeur comptable : 42,51 dollars par action (en hausse par rapport à 42,14 au quatrième trimestre 2024)
L'entreprise a annoncé un changement de direction avec la nomination de Patrick Huvane en tant que PDG par intérim suite à la retraite de Doug Jamieson. AC a déclaré un dividende semestriel de 0,10 dollar par action et a racheté 39 018 actions de classe A pour 1,4 million de dollars à un prix moyen de 36,32 dollars par action au cours du premier trimestre 2025.
Associated Capital Group (AC) meldete seine Finanzergebnisse für das erste Quartal 2025 mit einem verwalteten Vermögen (AUM) von 1,27 Milliarden US-Dollar, gegenüber 1,25 Milliarden US-Dollar im vierten Quartal 2024. Die Merger-Arbitrage-Strategie erzielte im ersten Quartal Bruttorenditen von 3,8 % (netto 2,8 %). Wichtige Finanzkennzahlen umfassen:
- Gesamterlöse: 2,1 Millionen US-Dollar (Rückgang von 3,0 Millionen im ersten Quartal 2024)
- Nettogewinn: 7,7 Millionen US-Dollar (0,36 US-Dollar je Aktie)
- Buchwert: 42,51 US-Dollar je Aktie (Anstieg von 42,14 im vierten Quartal 2024)
Das Unternehmen gab einen Führungswechsel bekannt, bei dem Patrick Huvane zum Interim-CEO ernannt wurde nach dem Rücktritt von Doug Jamieson. AC erklärte eine halbjährliche Dividende von 0,10 US-Dollar je Aktie und kaufte im ersten Quartal 2025 39.018 Aktien der Klasse A für 1,4 Millionen US-Dollar zu einem durchschnittlichen Preis von 36,32 US-Dollar je Aktie zurück.
- Merger Arbitrage strategy performed well with 3.8% gross returns in Q1 2025
- AUM increased to $1.27 billion from $1.25 billion in Q4 2024
- Book value per share increased to $42.51 from $42.14 in Q4 2024
- Strong net investment income of $15.8 million in Q1 2025
- Continued shareholder returns through dividends and share repurchases
- Total revenues declined to $2.1 million from $3.0 million in Q1 2024
- Operating loss increased to $4.2 million from $3.0 million in Q1 2024
- Net income decreased to $7.7 million from $13.8 million in Q1 2024
- Net outflows of $25 million in AUM during Q1 2025
Insights
Associated Capital shows mixed Q1 results with strong investment returns (merger arbitrage up 3.8%) offsetting declining operating revenues and AUM outflows, while maintaining shareholder-friendly capital allocation.
Associated Capital Group delivered mixed results in Q1 2025, with robust investment performance but weaker operating metrics. The firm's flagship merger arbitrage strategy generated impressive
Assets under management increased modestly to
The financial results reveal contrasting narratives. Total revenues fell to
Despite operational challenges, AC's investment portfolio performed well, generating
Book value per share increased to
AC's capital allocation remains shareholder-friendly, with a
The leadership transition from Doug Jamieson to Patrick Huvane as Interim CEO introduces some uncertainty, though Jamieson's continued board presence provides continuity. Management's stated focus on accelerating capital deployment through acquisitions and building a private equity business signals a strategic orientation toward growth beyond the current core operations.
- Performance for our Merger Arbitrage strategy in the first quarter was
3.8% before expenses and2.8% after expenses - Assets Under Management (“AUM”):
$1.27 billion at March 31, 2025 compared to$1.25 billion at December 31, 2024 - Book Value per share ended the quarter at
$42.51 per share vs$42.14 per share at December 31, 2024
GREENWICH, Conn., May 08, 2025 (GLOBE NEWSWIRE) -- Associated Capital Group, Inc. (“AC” or the “Company”), a diversified financial services company, today reported its financial results for the first quarter ended March 31, 2025.
In March 2025, Doug Jamieson retired as our Chief Executive Officer and President but will continue serving the Company as a Director. We thank him for his years of dedicated service and look forward to his continued contributions as a member of the Board of Directors. Patrick Huvane was named Interim Chief Executive Officer upon Doug Jamieson’s retirement.
“The prospects for Associated Capital Group remain strong and we are well positioned to grow value in the face of an uncertain environment. I am privileged to take on this opportunity to serve AC shareholders.” Mr. Huvane said.
Financial Highlights
($ in 000's except AUM and per share data)
| (Unaudited) | Three months ended | |||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| AUM - end of period (in millions) | $ | 1,268 | $ | 1,248 | $ | 1,549 | ||||||
| AUM - average (in millions) | 1,261 | 1,291 | 1,556 | |||||||||
| Revenues | 2,129 | 5,154 | 3,011 | |||||||||
| Operating loss before management fee (Non-GAAP) | (4,185 | ) | (3,059 | ) | (2,988 | ) | ||||||
| Investment and other non-operating income, net | 15,834 | 4,372 | 22,625 | |||||||||
| Income before income taxes | 10,546 | 1,179 | 17,655 | |||||||||
| Net income | 7,669 | 4,280 | 13,821 | |||||||||
| Net income per share-diluted | 0.36 | 0.20 | 0.64 | |||||||||
| Class A shares outstanding (000's) | 2,194 | 2,234 | 2,469 | |||||||||
| Class B " " | 18,951 | 18,951 | 18,951 | |||||||||
| Total " " | 21,145 | 21,185 | 21,420 | |||||||||
| Book value per share | $ | 42.51 | $ | 42.14 | $ | 42.80 | ||||||
First Quarter Financial Data
- Assets under management ended the quarter at
$1.27 billion versus$1.25 billion at December 31, 2024. - Book value was
$42.51 per share at March 31, 2025 versus$42.14 per share at December 31, 2024.
First Quarter Results
Total revenues in the first quarter were
Total operating expenses, excluding management fee, were
Net investment and other non-operating income was
For the quarter ended March 31, 2025, the management fee was
The effective tax rate applied to our pre-tax income for the quarter ended March 31, 2025 was
Assets Under Management (AUM)
Assets under management at March 31, 2025 were
| March 31, | December 31, | March 31, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| ($ in millions) | ||||||||||||
| Merger Arbitrage(a) | $ | 1,012 | $ | 1,003 | $ | 1,262 | ||||||
| Long/Short Value(b) | 221 | 209 | 251 | |||||||||
| Other | 36 | 36 | 36 | |||||||||
| Total AUM | $ | 1,269 | $ | 1,248 | $ | 1,549 | ||||||
(a) Includes
(b) Assets under management represent the assets invested in this strategy that are attributable to Associated Capital Group, Inc.
Alternative Investment Management
The alternative investment strategy offerings center around our merger arbitrage strategy which has an absolute return focus of generating returns independent of the broad equity and fixed income markets. We also offer strategies utilizing fundamental, active, event-driven and special situations investments.
Merger Arbitrage
For the first quarter of 2025, the longest continuously offered fund in the merger arbitrage strategy generated gross returns of
| Full Year | ||||||||||||||||||||||||||||||||
| Performance%(a) | 1Q '25 | 1Q '24 | 2024 | 2023 | 2022 | 2021 | 5 Year(b) | Since 1985(b)(c) | ||||||||||||||||||||||||
| Merger Arb | ||||||||||||||||||||||||||||||||
| Gross | 3.77 | 1.33 | 5.83 | 5.49 | 4.47 | 10.81 | 9.57 | 10.02 | ||||||||||||||||||||||||
| Net | 2.81 | 0.87 | 3.82 | 3.56 | 2.75 | 7.78 | 7.09 | 7.09 | ||||||||||||||||||||||||
(a) Net performance is net of fees and expenses, unless otherwise noted. Performance shown for an actual fund in this strategy. The performance of other funds in this strategy may vary. Past performance is no guarantee of future results.
(b) Represents annualized returns through March 31, 2025
(c) Inception Date: February 1985
Global M&A activity for the first quarter of 2025 totaled
The Merger Arbitrage strategy is offered by mandate and client type through partnerships and offshore corporations serving accredited as well as institutional investors. The strategy is also offered in separately managed accounts, a Luxembourg UCITS (an entity organized as an Undertaking for Collective Investment in Transferrable Securities) and a London Stock Exchange listed investment company, Gabelli Merchant Partners Plc (GMP-LN) (f/k/a Gabelli Merger Plus+ Trust Plc).
Acquisitions
Associated Capital Group's plan is to accelerate the use of its capital. We intend to leverage our research and investment capabilities by pursuing acquisitions and alliances that will broaden our product offerings and add new sources of distribution. In addition, we may make direct investments in operating businesses using a variety of techniques and structures to accomplish our objectives.
Gabelli Private Equity Partners, LLC was created to launch a private equity business, somewhat akin to the success our predecessor PE firm had in the 1980s. We will continue our outreach initiatives with business owners, corporate management, and various financial sponsors. We are activating our program of buying privately owned, family started businesses, controlled and operated by the founding family.
Shareholder Compensation
On May 7, 2025, the Board of Directors declared a semi-annual dividend of
During the first quarter of 2025, AC repurchased 39,018 Class A shares, for
Since our spin-off from GAMCO on November 30, 2015, AC has returned
At March 31, 2025, there were 21.145 million shares outstanding, consisting of 2.194 million Class A shares and 18.951 million Class B shares outstanding.
About Associated Capital Group, Inc.
Associated Capital Group, Inc. (NYSE:AC), based in Greenwich, Connecticut, is a diversified global financial services company that provides alternative investment management through Gabelli & Company Investment Advisers, Inc. (“GCIA”). We have also earmarked proprietary capital for our direct investment business that invests in new and existing businesses. The direct investment business is developing along several core pillars including Gabelli Private Equity Partners, LLC (“GPEP”), formed in August 2017 with
Operating Loss Before Management Fee
Operating loss before management fee expense represents a non-GAAP financial measure used by management to evaluate its business operations. We believe this measure is useful in illustrating the operating results of the Company as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense.
| Three Months Ended March 31, | ||||||||
| ($ in 000's) | 2025 | 2024 | ||||||
| Operating loss - GAAP | $ | (5,288 | ) | $ | (4,970 | ) | ||
| Add: management fee expense (1) | 1,103 | 1,982 | ||||||
| Operating loss before management fee - Non-GAAP | $ | (4,185 | ) | $ | (2,988 | ) | ||
(1) Management fee expense is incentive-based and is equal to
| Table I | ||||||||||||
| ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Amounts in thousands) | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| ASSETS | ||||||||||||
| Cash, cash equivalents and US Treasury Bills(1) | $ | 357,813 | $ | 367,850 | $ | 395,386 | ||||||
| Investments in securities and partnerships(1) | 506,156 | 487,623 | 442,458 | |||||||||
| Investment in GAMCO stock(2) | 15,599 | 16,920 | 51,026 | |||||||||
| Receivable from brokers(1) | 25,458 | 27,634 | 32,966 | |||||||||
| Income taxes receivable, including deferred tax assets, net(1) | 3,310 | 6,021 | 6,444 | |||||||||
| Other receivables(1) | 1,752 | 4,778 | 2,126 | |||||||||
| Other assets(1) | 23,169 | 24,463 | 23,776 | |||||||||
| Total assets | $ | 933,257 | $ | 935,289 | $ | 954,182 | ||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||||||
| Payable to brokers(1) | $ | 5,258 | $ | 5,491 | $ | 6,332 | ||||||
| Income taxes payable, including deferred tax liabilities, net | - | - | 1,723 | |||||||||
| Compensation payable(1) | 12,456 | 17,747 | 11,545 | |||||||||
| Securities sold short, not yet purchased(1) | 8,754 | 8,436 | 9,439 | |||||||||
| Accrued expenses and other liabilities(1) | 2,149 | 5,317 | 2,514 | |||||||||
| Total liabilities | $ | 28,617 | $ | 36,991 | $ | 31,553 | ||||||
| Redeemable noncontrolling interests(1) | 5,682 | 5,592 | 5,779 | |||||||||
| Total equity | 898,958 | 892,706 | 916,850 | |||||||||
| Total liabilities, redeemable noncontrolling interests and equity | $ | 933,257 | $ | 935,289 | $ | 954,182 | ||||||
(1) Certain captions include amounts related to a consolidated variable interest entity ("VIE") and voting interest entity ("VOE"); refer to footnote 4 of the Condensed Consolidated Financial Statements included in the 10-Q report to be filed for the quarter ended March 31, 2025 for more details on the impact of consolidating these entities.
(2) Investment in GAMCO stock: 674,700, 699,749 and 2,382,170 shares, respectively.
| Table II | ||||||||
| ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Investment advisory and incentive fees | $ | 2,004 | $ | 2,907 | ||||
| Other revenues | 125 | 104 | ||||||
| Total revenues | 2,129 | 3,011 | ||||||
| Compensation | 4,448 | 3,820 | ||||||
| Other operating expenses | 1,866 | 2,179 | ||||||
| Total expenses | 6,314 | 5,999 | ||||||
| Operating loss before management fee | (4,185 | ) | (2,988 | ) | ||||
| Investment gain | 10,892 | 16,794 | ||||||
| Dividend income from GAMCO | 54 | 95 | ||||||
| Interest and dividend income, net | 4,919 | 5,805 | ||||||
| Shareholder-designated contribution | (31 | ) | (69 | ) | ||||
| Investment and other non-operating income, net | 15,834 | 22,625 | ||||||
| Income before management fee and income taxes | 11,649 | 19,637 | ||||||
| Management fee | 1,103 | 1,982 | ||||||
| Income before income taxes | 10,546 | 17,655 | ||||||
| Income tax expense | 2,777 | 3,798 | ||||||
| Income before noncontrolling interests | 7,769 | 13,857 | ||||||
| Income attributable to noncontrolling interests | 100 | 36 | ||||||
| Net income attributable to Associated Capital Group, Inc. | $ | 7,669 | $ | 13,821 | ||||
| Net income per share attributable to Associated Capital Group, Inc.: | ||||||||
| Basic and Diluted | $ | 0.36 | $ | 0.64 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic and Diluted | 21,166 | 21,500 | ||||||
| Shares outstanding - end of period | 21,145 | 21,420 | ||||||
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe. Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, and a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10 and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.
| Contact: | Ian McAdams Chief Financial Officer (914) 921-5078 |
| For further information please visit https://www.associated-capital-group.com/ | |
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8f083310-4b5e-4b0f-8176-453a01cbd4c1
FAQ
What was Associated Capital Group's (AC) AUM in Q1 2025?
How did AC's Merger Arbitrage strategy perform in Q1 2025?
Who is the new CEO of Associated Capital Group (AC)?
What dividend did Associated Capital Group (AC) declare for Q1 2025?
What was AC's book value per share in Q1 2025?
