AGF Management Limited Reports Third Quarter 2024 Financial Results
September 25, 2024
TORONTO, Sept. 25, 2024 (GLOBE NEWSWIRE) --
- Reported quarterly adjusted diluted earnings per share of $0.37
- Total assets under management and fee-earning assets of $49.7 billion
- Declared quarterly dividend per share of 11.5 cents
AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the third quarter ended August 31, 2024.
AGF reported total assets under management and fee-earning assets1 of $49.7 billion compared to $47.8 billion as at May 31, 2024 and $42.3 billion as at August 31, 2023.
“Amid an uncertain economic backdrop and significant market volatility, we are pleased to see early signs of improvement with positive retail net flows complementing our solid investment performance,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. “This improvement can be attributed to our long-term strategic plan which diversifies our business across asset classes and client channels ensuring we thrive through changing market cycles.”
AGF’s mutual fund gross sales were $1,012 million for the quarter compared to $934 million in the previous quarter and $633 million in the prior year quarter. Mutual fund net sales were $14 million compared to net redemptions of $112 million in the previous quarter and net redemptions of $151 million in the prior year quarter.
“Given the current market environment and industry trends, we are pleased with the trajectory of our sales strategy,” said Judy Goldring, President and Head of Global Distribution, AGF. “Heading into the final months of 2024, we remain focused on diversifying our capabilities and offerings through a vehicle agnostic approach that meets the evolving needs of our clients.”
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1 Fee-earning assets represents assets in which AGF has carried interest ownership and earns recurring fees but does not have ownership interest in the managers
Key Business and Financial Highlights:
- AGF International Advisors Company Limited, a subsidiary of AGF, was once again accepted as a signatory to the UK Stewardship Code, a best-practice benchmark in investment stewardship.
- AGF Management Limited partnered with Archer Holdco, LLC – a leading technology-enabled service provider to the investment management industry – to help further grow its Separately Managed Accounts (SMA) model business through additional product offerings and investment strategies.
- AGF SAF Private Credit LP was named a Top Contender for a 2024 Canadian Hedge Fund Award Fund.
- Adjusted EBITDA2 for the three months ended August 31, 2024, was $40.2 million, compared to $37.0 million for the three months ended May 31, 2024 and $33.7 million in the prior year comparative period.
- Net management, advisory and administration fees2 were $78.7 million for the three months ended August 31, 2024, compared to $81.2 million for the three months ended May 31, 2024 and $73.8 million for the comparative prior year period.
- Adjusted revenue from AGF Capital Partners for the three months ended August 31, 2024, was $18.5 million, compared to $12.0 million for the three months ended May 31, 2024 and $7.3 million for the comparative prior year period. The increase quarter over quarter and year over year were driven by higher fair value adjustments and distribution income and the consolidation of a full quarter of KCPL financial results. Revenue from AGF Capital Partners can be variable quarter to quarter and can be impacted by fair value adjustments, timing of monetizations and cash distributions as well as performance fees and carried interest.
- Adjusted selling, general and administrative costs2 were $59.6 million for the three months ended August 31, 2024, compared to $60.0 million for the three months ended May 31, 2024 and $50.3 million for the comparative prior year period.
- Adjusted net income attributable to equity owners was $24.5 million ($0.37 adjusted diluted EPS) for the three months ended August 31, 2024, compared to $23.6 million ($0.35 adjusted diluted EPS) for the three months ended May 31, 2024 and $22.9 million ($0.34 adjusted diluted EPS) for the comparative prior year period.
| Three months ended | Nine months ended | |||||||||||||||
| August 31, | May 31, | August 31, | August 31, | August 31, | ||||||||||||
| (in millions of Canadian dollars, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenues | ||||||||||||||||
| Management, advisory and administration fees | $ | 114.4 | $ | 116.4 | $ | 107.4 | $ | 339.4 | $ | 324.0 | ||||||
| Trailing commissions and investment advisory fees | (35.7 | ) | (35.2 | ) | (33.6 | ) | (104.6 | ) | (101.5 | ) | ||||||
| Net management, advisory and administration fees2 | $ | 78.7 | $ | 81.2 | $ | 73.8 | $ | 234.8 | $ | 222.5 | ||||||
| Deferred sales charges | 1.4 | 1.9 | 1.8 | 5.3 | 5.7 | |||||||||||
| Adjusted revenue from AGF Capital Partners2 | 18.5 | 12.0 | 7.3 | 54.7 | 29.4 | |||||||||||
| Other revenue2 | 1.2 | 1.9 | 1.1 | 5.1 | 2.4 | |||||||||||
| Total adjusted net revenue2 | 99.8 | 97.0 | 84.0 | 299.9 | 260.0 | |||||||||||
| Selling, general and administrative | 66.3 | 68.2 | 50.2 | 192.3 | 156.2 | |||||||||||
| Adjusted selling, general and administrative2 | 59.6 | 60.0 | 50.3 | 173.1 | 155.0 | |||||||||||
| EBITDA2 | 33.0 | 26.6 | 33.8 | 104.8 | 103.8 | |||||||||||
| Adjusted EBITDA2 | 40.2 | 37.0 | 33.7 | 126.8 | 105.0 | |||||||||||
| Net income - equity owners of the Company | 20.3 | 18.1 | 23.0 | 68.9 | 70.9 | |||||||||||
| Adjusted net income - equity owners of the Company | 24.5 | 23.6 | 22.9 | 81.8 | 71.9 | |||||||||||
| Diluted earnings per share | 0.30 | 0.27 | 0.34 | 1.03 | 1.05 | |||||||||||
| Adjusted diluted earnings per share | 0.37 | 0.35 | 0.34 | 1.23 | 1.07 | |||||||||||
| Free cash flow2 | 29.1 | 23.7 | 22.9 | 73.9 | 62.8 | |||||||||||
| Dividends per share | 0.115 | 0.115 | 0.110 | 0.340 | 0.320 | |||||||||||