Affiliated Managers Group Inc. (AMG, Financial) filed Quarterly Report for the period ended 2012-09-30.
Affiliated Managers Group Inc has a market cap of $6.37 billion; its shares were traded at around $128.5 with a P/E ratio of 19 and P/S ratio of 3.7. Affiliated Managers Group Inc had an annual average earning growth of 4.9% over the past 10 years.
(1)As described above, our average assets under management considers balances used to bill revenue during the reporting period. Assets under management attributable to investments in new Affiliates are included on a weighted average basis for the period from the closing date of the respective investment. (2)In 2012, we changed our estimate of payments to be made under certain of our contingent payment arrangements. During the first half of 2012, we recognized a gain totaling $57.3 million ($39.6 million attributable to the controlling interest) as a result of this change. The controlling interest portion of the gain was allocated $19.1 million, $20.2 million and $0.3 million to our Mutual Fund, Institutional and High Net Worth channels, respectively. (3)During the first half of 2012, we reduced the carrying value of an indefinite-lived intangible asset at one of our Affiliates and, accordingly, recorded pre-tax expenses of $102.2 million. (4)During the three months ended June 30, 2011, we determined that the value of a cost method investment had been reduced to zero, and recorded a $12.8 million write-down which was allocated to our High Net Worth distribution channel. (5)EBITDA, including a reconciliation to cash flow from operations, is discussed in "Supplemental Liquidity Measure" on page 46.
Our revenue in the Institutional distribution channel decreased $3.8 million (or 1%) in the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011, primarily from a decline in our average fee rates (4%) and a decline in performance fees (1%) offset by an increase in average assets under management from our consolidated Affiliates of 4%. The decline in average fee rates resulted from changes in our business mix as described above. Consolidated performance fee revenue decreased $4.4 million to $20.5 million for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011. The increase in average assets under management resulted principally from investment performance and net client cash flows.
(1)We are required to use the equity method of accounting for certain of our investments and, as such, do not separately report these Affiliates' revenues or expenses (including intangible amortization) in our income statement. Our share of these investments' amortization, $8.2 million and $10.2 million for the three months ended September 30, 2011 and 2012, respectively, and $24.8 million and $26.5 million for the nine months ended September 30, 2011 and 2012, respectively, is reported in Income from equity method investments. (2)Our reported intangible amortization, $22.1 million and $24.0 million for the three months ended September 30, 2011 and 2012, respectively, includes $3.4 million and $4.3 million, respectively, of amortization attributable to our non-controlling interests, amounts not added back to Net income (controlling interest) to measure our Economic net income. Our reported intangible amortization, $66.3 million and $169.1 million for the nine months ended September 30, 2011 and 2012, respectively, includes $10.2 million and $11.5 million, respectively, of amortization attributable to our non-controlling interests. The reported intangible amortization for the nine months ended September 30, 2012 includes a $102.2 million expense associated with the reduction of carrying value of an indefinite-lived intangible asset at one of our Affiliates during the first half of 2012.
During the first half of 2012, we reduced our estimate of payments to be made under these arrangements and recognized a gain totaling $57.3 million ($39.6 million of which is attributable to the controlling interest). No changes to our estimate of payments occurred during the three months ended September 30, 2012. Changes to our projected future payment amounts could materially affect the amount of Imputed interest expense and contingent payment arrangements we recognize in any period. For example, a 1% change in our assumed discount rate or a 1% change in our projected revenue (assuming all other factors remain constant) at Affiliates with these types of arrangements, would result in an increase or decrease to our Imputed interest expense and contingent payment arrangements of $1.1 million and $4.4 million, respectively, of which $0.1 million and $2.5 million, respectively, relate to amounts expected to be settled in the fourth quarter of 2012.
Read the The complete Report
Affiliated Managers Group Inc has a market cap of $6.37 billion; its shares were traded at around $128.5 with a P/E ratio of 19 and P/S ratio of 3.7. Affiliated Managers Group Inc had an annual average earning growth of 4.9% over the past 10 years.
Highlight of Business Operations:
(1)During the first half of 2012, we reduced the carrying value of an indefinite-lived intangible asset at one of our Affiliates by $102.2 million and we also reduced our current estimate of contingent payment obligations and recognized a gain of $57.3 million ($39.6 million attributable to the controlling interest). Excluding these valuation adjustments, Net income (controlling interest) and Earnings per sharediluted would have been $137.8 million and $2.61 for the nine months ended September 30, 2012. Management believes the disclosure of Net income (controlling interest) and Earnings per sharediluted excluding these valuation adjustments, both non-GAAP measures, provides for a better comparison between current and prior periods. (2)Economic net income and Economic earnings per share, including a reconciliation of Economic net income to Net income, are discussed in "Supplemental Performance Measures" on page 43.(1)As described above, our average assets under management considers balances used to bill revenue during the reporting period. Assets under management attributable to investments in new Affiliates are included on a weighted average basis for the period from the closing date of the respective investment. (2)In 2012, we changed our estimate of payments to be made under certain of our contingent payment arrangements. During the first half of 2012, we recognized a gain totaling $57.3 million ($39.6 million attributable to the controlling interest) as a result of this change. The controlling interest portion of the gain was allocated $19.1 million, $20.2 million and $0.3 million to our Mutual Fund, Institutional and High Net Worth channels, respectively. (3)During the first half of 2012, we reduced the carrying value of an indefinite-lived intangible asset at one of our Affiliates and, accordingly, recorded pre-tax expenses of $102.2 million. (4)During the three months ended June 30, 2011, we determined that the value of a cost method investment had been reduced to zero, and recorded a $12.8 million write-down which was allocated to our High Net Worth distribution channel. (5)EBITDA, including a reconciliation to cash flow from operations, is discussed in "Supplemental Liquidity Measure" on page 46.
Our revenue in the Institutional distribution channel decreased $3.8 million (or 1%) in the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011, primarily from a decline in our average fee rates (4%) and a decline in performance fees (1%) offset by an increase in average assets under management from our consolidated Affiliates of 4%. The decline in average fee rates resulted from changes in our business mix as described above. Consolidated performance fee revenue decreased $4.4 million to $20.5 million for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011. The increase in average assets under management resulted principally from investment performance and net client cash flows.
(1)We are required to use the equity method of accounting for certain of our investments and, as such, do not separately report these Affiliates' revenues or expenses (including intangible amortization) in our income statement. Our share of these investments' amortization, $8.2 million and $10.2 million for the three months ended September 30, 2011 and 2012, respectively, and $24.8 million and $26.5 million for the nine months ended September 30, 2011 and 2012, respectively, is reported in Income from equity method investments. (2)Our reported intangible amortization, $22.1 million and $24.0 million for the three months ended September 30, 2011 and 2012, respectively, includes $3.4 million and $4.3 million, respectively, of amortization attributable to our non-controlling interests, amounts not added back to Net income (controlling interest) to measure our Economic net income. Our reported intangible amortization, $66.3 million and $169.1 million for the nine months ended September 30, 2011 and 2012, respectively, includes $10.2 million and $11.5 million, respectively, of amortization attributable to our non-controlling interests. The reported intangible amortization for the nine months ended September 30, 2012 includes a $102.2 million expense associated with the reduction of carrying value of an indefinite-lived intangible asset at one of our Affiliates during the first half of 2012.
During the first half of 2012, we reduced our estimate of payments to be made under these arrangements and recognized a gain totaling $57.3 million ($39.6 million of which is attributable to the controlling interest). No changes to our estimate of payments occurred during the three months ended September 30, 2012. Changes to our projected future payment amounts could materially affect the amount of Imputed interest expense and contingent payment arrangements we recognize in any period. For example, a 1% change in our assumed discount rate or a 1% change in our projected revenue (assuming all other factors remain constant) at Affiliates with these types of arrangements, would result in an increase or decrease to our Imputed interest expense and contingent payment arrangements of $1.1 million and $4.4 million, respectively, of which $0.1 million and $2.5 million, respectively, relate to amounts expected to be settled in the fourth quarter of 2012.
Read the The complete Report
