Release Details

 Company Reports EPS of $2.34; Economic EPS of $3.45

WEST PALM BEACH, Fla., Oct. 29, 2018 (GLOBE NEWSWIRE) -- Affiliated Managers Group, Inc. (NYSE: AMG) today reported its financial and operating results for the quarter ended September 30, 2018.

For the third quarter of 2018, diluted earnings per share were $2.34, compared to $2.22 for the same period of 2017, and Economic earnings per share (“Economic EPS”) were $3.45, compared to $3.41 for the same period of 2017. For the third quarter of 2018, Net income was $124.9 million, compared to $125.4 million for the same period of 2017. For the third quarter of 2018, Economic net income was $184.0 million, compared to $191.3 million for the same period of 2017. For the third quarter of 2018, Adjusted EBITDA was $237.8 million, compared to $256.3 million for the same period of 2017. For the third quarter of 2018, Revenue was $601.3 million, compared to $585.7 million for the same period of 2017. For the third quarter of 2018, Aggregate fees (an operating measure comprising the total asset- and performance-based fees of all Affiliates) were $1.3 billion, compared to $1.3 billion for the same period of 2017. (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 nine months ended September 30, 2018, Net income was $394.9 million, compared to $374.2 million for the same period of 2017. For the nine months ended September 30, 2018, Economic net income was $594.8 million, compared to $563.2 million for the same period of 2017. For the nine months ended September 30, 2018, Adjusted EBITDA was $770.5 million, compared to $754.8 million for the same period of 2017. For the nine months ended September 30, 2018, Revenue was $1.8 billion, compared to $1.7 billion for the same period of 2017.  For the nine months ended September 30, 2018, Aggregate fees were $4.2 billion, compared to $3.9 billion for the same period of 2017.

Net client cash flows for the third quarter of 2018 were $0.9 billion. AMG’s aggregate assets under management were approximately $830 billion at September 30, 2018.

AMG repurchased approximately $113 million in stock, or 0.8 million common shares, during the third quarter of 2018, and a total of approximately $414 million in the nine months ended September 30, 2018. The Company also announced a fourth-quarter cash dividend of $0.30 per common share, payable November 21, 2018 to stockholders of record as of the close of business on November 8, 2018.

“Notwithstanding industry headwinds, AMG generated solid results in the third quarter, including year-over-year growth in our Economic earnings per share, which were $3.45, and positive net client cash flows of approximately $1 billion,” stated Nathaniel Dalton, President and Chief Executive Officer of AMG. “AMG’s net inflows were driven by strong demand for alternative strategies from institutions around the world, partially offset by net outflows in equities. In a challenging environment for asset managers, our results reflect the diversity of our business and the quality of our Affiliates. Looking ahead, a shift from markets driven by excess liquidity to more fundamentally-driven markets provides a meaningfully more favorable environment for the best active managers to distinguish themselves, and given our Affiliates’ broad array of distinctive return streams, AMG is very well-positioned to benefit.”

Mr. Dalton concluded, “Over the past 25 years, AMG has demonstrated the ability to grow across market cycles — in addition to our substantial long-term organic growth opportunities, we continue to have an outstanding proprietary opportunity to partner with the most highly-regarded independent firms around the world, adding earnings accretion and further diversifying our alpha-oriented product set. With our global reputation as the partner of choice among excellent boutique managers, long track record of successful investments, and substantial financial flexibility, along with our commitment to disciplined capital allocation, we are uniquely positioned to generate meaningful shareholder value ahead.”

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 September 30, 2018, AMG’s aggregate assets under management were approximately $830 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,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “positioned,” “prospects,” “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 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, 2017, 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.

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 13684272. The live call and replay of the session, and a presentation highlighting the Company's performance can also be accessed via AMG’s website at http://www.amg.com/InvestorRelations/.

Financial Tables Follow

Statement of Changes — Quarter to Date

Statement of Changes — Year to Date

Statement of Changes — Quarter to Date

Statement of Changes — Year to Date

Affiliated Managers Group, Inc.