Release Details

Company Reports EPS of $5.50, Economic EPS of $4.68 for Fourth Quarter;
EPS of $12.03, Economic EPS of $14.60 for Full Year 2017

WEST PALM BEACH, Fla., Jan. 29, 2018 (GLOBE NEWSWIRE) -- Affiliated Managers Group, Inc. (NYSE:AMG) today reported its financial and operating results for the fourth quarter and full year 2017.
                               
For the fourth quarter of 2017, diluted earnings per share were $5.50 compared to $2.67 for the same period of 2016, and Economic earnings per share (“Economic EPS”) were $4.68 (which excludes the impact of recent changes in U.S. tax law), compared to $3.80 for the same period of 2016.  For the fourth quarter of 2017, Net income was $315.4 million, compared to $150.2 million for the same period of 2016. For the fourth quarter of 2017, Economic net income was $261.3 million, compared to $211.2 million for the same period of 2016. For the fourth quarter of 2017, Adjusted EBITDA was $361.3 million, compared to $289.7 million for the same period of 2016. For the fourth quarter of 2017, Aggregate fees (previously referred to as Aggregate revenue; consists of the total asset- and performance-based fees of all Affiliates, as further set forth in Note B) were $1.7 billion, compared to $1.3 billion for the same period of 2016.  (Economic EPS, Economic net income, and Adjusted EBITDA are defined in the attached tables, along with reconciliations to the most directly comparable GAAP measure.) 

For the year ended December 31, 2017, diluted earnings per share were $12.03, compared to $8.57 for 2016, and Economic earnings per share were $14.60, compared to $12.84 for 2016. For the year ended December 31, 2017, Net income was $689.5 million, compared to $472.8 million for 2016. For the year ended December 31, 2017, Economic net income was $824.4 million, compared to $703.6 million for 2016. For the year ended December 31, 2017, Adjusted EBITDA was $1.1 billion, compared to $945.5 million for 2016. For the year ended December 31, 2017, Aggregate fees were $5.5 billion, compared to $4.3 billion for 2016.

Net client cash flows for the fourth quarter of 2017 were $1.0 billion, and for the full year were $4.7 billion. AMG’s aggregate assets under management were approximately $836 billion at December 31, 2017. 

Today, AMG announced a first quarter cash dividend of $0.30 per common share, representing an increase of 50% over the prior level, payable February 23, 2018 to stockholders of record as of the close of business on February 8, 2018. In addition, AMG’s Board of Directors increased the Company’s share repurchase authorization to a total of five million shares. During the fourth quarter of 2017, the Company repurchased approximately 718,000 shares, and for the full year ended December 31, 2017, approximately 2.4 million shares.

“AMG generated excellent results for the fourth quarter and the full year 2017, including record Economic earnings per share of $4.68 for the quarter and $14.60 for the year,” stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. “In addition to growth in our Economic earnings per share of 23% and 14% over the respective periods of 2016, our assets under management increased 21% year-over-year to a record $836 billion, driven by the long-term investment outperformance of our alpha-generating Affiliates and the strong execution of our growth strategy, including organic growth from net client cash flows and the ongoing success of our strategic initiatives to support and enhance our Affiliates’ new business momentum. Given the strength of our competitive position along with the increased scale and earnings power of our business, we have outstanding prospects for continued earnings growth going forward.”

“We are pleased with the organic growth we generated in 2017, particularly given our substantial exposure to uncorrelated alternative strategies, which are optimally positioned for periods of market volatility,” Mr. Healey continued. “Across our diverse active equity and alternative product set, our Affiliates generated positive net client cash flows during both the quarter and the year, notwithstanding continued industry-wide net outflows in actively-managed product areas. Looking ahead, as one of the leading providers of alpha-generating strategies globally, AMG is well-positioned to meet increasing client demand for differentiated return streams.”
                                                      
Mr. Healey concluded, “We are confident in our ability to continue to generate strong long-term earnings growth through accretive investments in outstanding new Affiliates, while also consistently returning capital to shareholders through dividends and share repurchases. Reflecting this confidence in our forward prospects, our Board of Directors approved a 50% increase in our dividend along with an additional stock repurchase authorization. Given our significant and growing scale, along with the ongoing organic growth of our business and our disciplined commitment to capital allocation, we are well-positioned to create long-term shareholder value.”  

About AMG

AMG is a global asset management company with equity investments in leading boutique investment management firms. AMG’s innovative partnership approach allows each Affiliate’s management team to own significant equity in their firm while maintaining operational autonomy. AMG’s strategy is to generate shareholder value through the growth of existing Affiliates, as well as through investments in new Affiliates and additional investments in existing Affiliates. In addition, AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations. As of December 31, 2017, AMG’s aggregate assets under management were approximately $836 billion in more than 550 investment products across a broad range of active, return-oriented strategies. For more information, please visit the Company’s website at www.amg.com.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws.  These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements.  You can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “preliminary,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “intends,” “plans,” “estimates,” “pending investments,” “anticipates” or the negative version of these words or other comparable words.  Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing, competition for acquisitions of interests in investment management firms, the ability to close pending investments, the investment performance and growth rates of our Affiliates and their ability to effectively market their investment strategies, the mix of Affiliate contributions to our earnings, new or revised laws and regulations (including tax legislation) or interpretations and guidance relating thereto, and other risks, uncertainties and assumptions, including those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.  These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC.  We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. We have presented certain non‐GAAP and operating performance measures in this press release, which are provided in addition to, but not as substitutes for, GAAP measures of performance. Additional information is provided in the attached tables.

From time to time, AMG may use its website as a distribution channel of material Company information.  AMG routinely posts financial and other important information regarding the Company in the Investor Relations section of its website at www.amg.com and encourages investors to consult that section regularly. 

Financial Tables Follow

A teleconference will be held with AMG’s management at 8:30 a.m. Eastern time today.  Parties interested in listening to the teleconference should dial 1-877-407-8291 (U.S. calls) or 1-201-689-8345 (non-U.S. calls) starting at 8:15 a.m. Eastern time.  Those wishing to listen to the teleconference should dial the appropriate number at least ten minutes before the call begins.

The teleconference will also be available for replay beginning approximately one hour after the conclusion of the call.  To hear a replay of the call, please dial 1-877-660-6853 (U.S. calls) or 1-201-612-7415 (non-U.S. calls) and provide conference ID 13675825.  The live call and replay of the session, and additional financial information referenced during the teleconference, can also be accessed via AMG’s website at http://www.amg.com/InvestorRelations/.

Affiliated Managers Group, Inc.