Exhibit 99.1
AMG REPORTS FINANCIAL AND
OPERATING RESULTS FOR FIRST QUARTER 2001
COMPANY REPORTS CASH EPS OF $0.89
NET CLIENT CASH FLOWS FROM DIRECTLY MANAGED ASSETS WERE $880 MILLION
Contact: Darrell W. Crate
Affiliated Managers Group, Inc.
(617) 747-3300
BOSTON, MA, APRIL 25, 2001 - Affiliated Managers Group, Inc. (NYSE: AMG)
today reported its financial and operating results for the quarter ended
March 31, 2001.
Cash earnings per share ("Cash EPS") for the first quarter of 2001 were $0.89
versus Cash EPS of $0.92 for the first quarter of 2000. This decrease from
the prior year reflects the impact of the broad equity market decline which
offset earnings gains from net client cash flows. (Cash EPS is the Company's
reported EPS figure plus the non-cash charges on a per share basis for
depreciation and amortization of intangible assets which arise from the use
of the purchase method of accounting. The Company considers Cash EPS to be
the most meaningful measure of its financial performance.) Diluted earnings
per share for the first quarter of 2001 were $0.53, compared to $0.60 for the
first quarter of 2000. Cash Net Income (net income plus the non-cash charges
for depreciation and amortization of intangible assets) was $20.2 million,
compared to $21.2 for the first quarter of 2000, while EBITDA was $31.3
million, compared to $34.7 million for the same period of 2000. Revenues for
the first quarter of 2001 were $100.5 million, compared to $114.8 million for
the first quarter of 2000. Net income for the first quarter of 2001 was $11.9
million, compared to $13.8 million for the same period of 2000.
The aggregate assets under management of AMG's affiliated investment
management firms at March 31, 2001 were $69.7 billion. Aggregate net client
cash flows of directly managed assets were $880 million, while outflows of
overlay assets were $1.35 billion during the quarter. These aggregate net
client cash flows (including directly managed and overlay assets) for the
quarter resulted in a net increase of approximately $3.9 million to AMG's
annualized EBITDA.
"While the sharp declines in the equity market during the first quarter
obviously presented challenges for our Affiliates, we were pleased with their
results relative to their competitors and benchmarks," said William J. Nutt,
Chairman and Chief Executive Officer. "The strength of our Affiliates'
businesses is seen in their solid net client inflows during the quarter,
especially as measured in terms of increased contribution to earnings. Once
again, AMG benefited from the diversification among our Affiliate group," Mr.
Nutt continued. "The results of our value managers such as Tweedy, Browne;
Rorer; Skyline and Systematic helped offset market-related declines in
managed assets among Affiliates focused on growth sectors of the market."
"Notwithstanding the market environment, we continue to invest in growth
initiatives," said Sean Healey, President and Chief Operating Officer. "Our
investment in Dublin Fund Distributors, a firm which distributes alternative
investment products in the European institutional and high net worth markets,
offers great potential for stand-alone growth as well as enhanced
distribution of Affiliates' products. In addition, on April 10, we announced
the merger of our Renaissance Affiliate with another Cincinnati-based
manager, Bowling Portfolio Management, which should enhance AMG's earnings
growth while benefiting the firms' management partners. Finally, we remain
committed to and confident in our strategy of investing in growing mid-sized
asset management firms."
AMG is an asset management company that acquires and holds majority interests
in a diverse group of mid-sized investment management firms. The Company's
strategy is to generate growth through the internal growth of its existing
Affiliates, as well as investments in new Affiliates. AMG's innovative
transaction structure allows individual members of each Affiliate's
management to retain or receive significant direct ownership in their firm
while maintaining operating autonomy. In addition, AMG provides centralized
assistance to its Affiliates in strategic matters, marketing, distribution,
product development and operations.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal securities laws.
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 interest in investment management
firms, the investment performance of our Affiliates and their ability to
effectively market their investment strategies, and other risks detailed from
time to time in AMG's filings with the Securities and Exchange Commission.
Reference is hereby made to the "Cautionary Statements" set forth in the
Company's Form 10-K for the year ended December 31, 2000.
FINANCIAL TABLES FOLLOW
A teleconference will be held with AMG's management at 11:00 a.m. EDT today.
Parties interested in listening to the teleconference can dial 1-800-952-4707
(domestic calls) or 1-703-871-3077 (international calls) starting at 10:45
a.m. EDT. Those wishing to listen to the teleconference should dial the
appropriate number at least ten minutes before the call begins. The
teleconference will be available for replay from approximately one hour after
the conclusion of the call until 5:00 p.m. EDT on Wednesday, May 2, 2001. To
access the replay, please dial 1-888-266-2086, pass code 5095254. The live
call and the replay (through May 2, 2001) can also be accessed via the Web at
www.amg.com.
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FOR MORE INFORMATION ON AFFILIATED MANAGERS GROUP, INC.,
PLEASE VISIT AMG'S WEB SITE AT www.amg.com
Affiliated Managers Group, Inc.
Financial Highlights
(dollars in thousands, except per share data)
Three Months Three Months
Ended Ended
3/31/00 3/31/01
------------ ------------
Revenues $ 114,798 $ 100,475
EBITDA (A) $ 34,659 $ 31,304
Net Income $ 13,815 $ 11,930
Cash Net Income (B) $ 21,212 $ 20,190
Average shares outstanding - diluted 23,099,721 22,567,819
Earnings per share - diluted $ 0.60 $ 0.53
Cash earnings per share - diluted (C) $ 0.92 $ 0.89
December 31 March 31
2000 2001
------------ ----------
Total debt $ 151,800 $ 147,500
Stockholders' equity $ 493,910 $ 505,614
Affiliated Managers Group, Inc.
Financial Highlights
(dollars in thousands, except as indicated)
Three Months
Ended
3/31/01
------------
Assets under management (at period end, in
millions): $ 69,730
Revenues: $100,475
Owners' Allocation (D): $ 49,688
EBITDA Contribution (E): $ 35,806
Reconciliation of EBITDA Contribution to EBITDA:
Total EBITDA Contribution (as above) $ 35,806
Less, holding company expenses (4,502)
-------------
EBITDA $ 31,304
=============
Notes:
(A) EBITDA represents earnings before interest expense, income taxes,
depreciation and amortization.
(B) Cash Net Income represents net income plus depreciation and amortization.
(C) Cash earnings per share represents Cash Net Income divided by average
shares outstanding.
(D) Owners' Allocation represents the portion of an Affiliate's revenues which
is allocated to the owners of that Affiliate, including AMG, generally
in proportion to their ownership interest, pursuant to the revenue sharing
agreement with such Affiliate.
(E) EBITDA Contribution represents the portion of an Affiliate's revenues
that is allocated to AMG after amounts retained by the Affiliate for
compensation and day-to-day operating and overhead expenses, but before
the interest, income taxes, depreciation and amortization expenses of the
Affiliate.
Affiliated Managers Group, Inc.
Consolidated Statements of Income
(dollars in thousands, except per share data)
Quarter Ended March 31,
2000 2001
------------- -------------
Revenues $ 114,798 $ 100,475
Operating expenses:
Compensation and related expenses 44,415 34,208
Amortization of intangible assets 6,444 6,902
Depreciation and other amortization 953 1,358
Selling, general and administrative 16,628 18,080
Other operating expenses 2,423 2,615
------------- -------------
70,863 63,163
------------- -------------
Operating income 43,935 37,312
------------- -------------
Non-operating (income) and
expenses:
Investment and other income (1,638) (524)
Interest expense 3,847 3,161
------------- -------------
2,209 2,637
------------- -------------
Income before minority interest
and income taxes 41,726 34,675
Minority interest (18,311) (14,792)
------------- -------------
Income before income taxes 23,415 19,883
Income taxes 9,600 7,953
------------- -------------
Net income $ 13,815 $ 11,930
============= =============
Average shares outstanding - basic 22,722,493 22,063,166
Average shares outstanding - diluted 23,099,721 22,567,819
Earnings per share - basic $ 0.61 $ 0.54
Earnings per share - diluted $ 0.60 $ 0.53
Affiliated Managers Group, Inc.
Consolidated Balance Sheets
(in thousands)
December 31, March 31,
2000 2001
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 31,612 $ 27,147
Investment advisory fees receivable 66,126 51,313
Other current assets 15,448 15,558
--------- ---------
Total current assets 113,186 94,018
Fixed assets, net 15,346 15,087
Equity investment in Affiliate 1,816 1,747
Acquired client relationships, net 199,354 197,296
Goodwill, net 444,116 441,791
Other assets 19,912 18,522
--------- ---------
Total assets $ 793,730 $ 768,461
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 86,800 $ 54,943
--------- ---------
Total current liabilities 86,800 54,943
Senior bank debt 151,000 146,700
Deferred taxes 31,907 33,159
Other long-term liabilities 2,636 2,786
Subordinated debt 800 800
--------- ---------
Total liabilities 273,143 238,388
Minority interest 26,677 24,459
Stockholders' equity:
Common stock 235 235
Additional paid-in capital 407,057 407,559
Accumulated other comprehensive income (342) (1,620)
Retained earnings 140,513 152,443
--------- ---------
547,463 558,617
Less treasury shares (53,553) (53,003)
Total stockholders' equity 493,910 505,614
--------- ---------
Total liabilities and stockholders' equity $ 793,730 $ 768,461
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