Affiliated Managers Group (AMG) Financials

Affiliated Managers Group (NYSE:AMG) has displayed notable financial performance and operational trends over the last four years through their quarterly results. Below is a summary of key findings and trends based on analysis of their income statements, cash flow statements, and balance sheets from Q3 2022 through Q1 2025.

• Consistent net income attributable to common shareholders: AMG’s net income to common shareholders has generally remained strong, with Q1 2025 at $72.4 million, and prior quarters showing significantly higher earnings (e.g., $196.1M in Q4 2023, $217M in Q3 2023, and peaking notably at $777.9M in Q4 2022 on an annualized basis).
• Solid operating cash flow generation: Net cash from continuing operating activities consistently exceeded $200 million in recent quarters (e.g., $208.9M in Q1 2025 and over $254.9M in Q4 2023), reflecting healthy core cash generation from business operations.
• Stable total assets with strong goodwill and intangible assets base: Total assets have hovered around $8.7B to $9B over the last several quarters, with goodwill and intangible assets making up significant portions (~$2.5B goodwill and ~$1.7B intangible assets as of Q1 2025), indicating substantial investments in brand and acquired businesses.
• Consistent dividend payments: The company paid a stable dividend of $0.01 per common share each quarter over the period analyzed, signaling steady shareholder returns.
• Effective management of share repurchases: AMG has actively repurchased shares, with large repurchase amounts especially in Q1 2025 (-$176.2M in repurchases) and continuing through prior quarters, which can support earnings per share growth.
• Reduction in revenue and net income in recent quarters compared to earlier periods: For example, Q1 2025 revenue was $571.9M with net income to common shareholders at $72.4M, compared to Q4 2022’s revenue of $1.47B and net income of about $778M. This decline requires monitoring but may be associated with market conditions or investment cycles.
• Significant non-cash amortization expense: Amortization expenses increased sharply to $83.3M in Q1 2025 compared to earlier quarters, which may impact reported earnings but is a non-cash charge reflecting acquisitions or intangible asset amortization.
• Declining net realized and unrealized capital gains: The net capital gains on investments swung from large positive amounts (e.g., $518M in Q2 2024) to a modest gain of $75.3M in Q1 2025, and negative values in some earlier quarters, indicating exposure to market volatility impacting earnings.
• Strong cash outflows in financing activities: Financing cash flows are typically negative, reflecting dividends, repurchases, and other financing uses totaling -$316.9M in Q1 2025, which may affect liquidity despite healthy operating cash flow.
• High level of long-term debt: Long-term debt remained steady near $2.6B over recent quarters, which represents leverage that investors should monitor given interest expense and repayment schedules.

Summary: AMG has maintained profitability supported by strong operating cash flows and shareholder returns through dividends and buybacks. However, recent quarters show a decrease in overall revenue and net income, partly due to fluctuating investment gains and rising amortization expense. The company's sizeable intangible asset base and leverage underline the importance of monitoring market conditions and integration of acquisitions. Investors should watch for recovery of investment returns and sustainable earnings growth moving forward.