Associated Capital Group (AC) Q2 2024 earnings summary

Executive summary

• Net income attributable to shareholders was $2.99 million for Q2 2024, down from $3.37 million in Q2 2023; six-month net income was $16.81 million, down from $21.13 million year-over-year.

• Revenues for Q2 2024 were $2.60 million, up from $2.38 million in Q2 2023; six-month revenues were $5.61 million, up from $4.85 million year-over-year.

• Assets under management (AUM) declined to $1.36 billion at June 30, 2024, from $1.59 billion at December 31, 2023, and $1.55 billion at June 30, 2023.

• Book value per share increased to $42.87 at June 30, 2024, from $42.11 at December 31, 2023, and $41.41 at June 30, 2023.

• $4.4 million was returned to shareholders via dividends and share repurchases in Q2 2024.

Financial highlights

• Q2 2024 diluted EPS was $0.14, compared to $0.15 in Q2 2023; six-month diluted EPS was $0.78, down from $0.96 year-over-year.

• Operating loss for Q2 2024 was $3.67 million, slightly higher than $3.47 million in Q2 2023.

• Net investment and other non-operating income was $7.3 million, down from $8.6 million in Q2 2023.

• Interest and dividend income increased to $7.86 million in Q2 2024 from $5.97 million in Q2 2023, driven by higher interest rates.

• Effective tax rate for the six months ended June 30, 2024 was 21.1%, up from 13.8% in the prior year period.

Outlook and guidance

• Management expects continued volatility in short-term fund returns due to global conflicts and market conditions.

• Plans to accelerate capital deployment through acquisitions and alliances to broaden product offerings and distribution.

• Available liquid assets are expected to be sufficient to meet cash requirements as the business grows.

• Strategic objectives include potential acquisitions, seeding new strategies, and continued share repurchases and dividends.

• Continued focus on direct investments in operating businesses and private equity initiatives.