Associated Capital Group Reports Mixed Q3 Results with Revenue Growth, Operating Loss, and Special Dividend

Associated Capital Group, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, total revenues increased to $2.415 million from $2.200 million in the same period of 2023. For the nine months ended September 30, 2024, revenues rose to $8.021 million, up from $7.047 million in the prior year. The growth in revenue was primarily driven by higher investment advisory and incentive fees, which reached $2.310 million for the third quarter and $7.706 million for the nine months, compared to $2.098 million and $6.789 million, respectively, in 2023.

Despite the revenue growth, total expenses for the third quarter surged to $9.331 million from $5.721 million in 2023, leading to an operating loss of $(6.916 million), compared to $(3.521 million) in the prior year. For the nine-month period, total expenses increased to $23.581 million from $19.172 million, resulting in an operating loss of $(15.560 million), up from $(12.125 million) in 2023.

A significant highlight for the quarter was a net gain from investments of $26.173 million, a substantial recovery from a loss of $(2.173 million) in the same quarter of 2023. This contributed to a net income attributable to shareholders of $23.242 million for the third quarter, compared to a loss of $(16,000) in 2023. For the nine months, net income rose to $40.048 million from $21.109 million in the prior year.

The company declared a special cash dividend of $2.00 per share, totaling $42.494 million, payable on November 4, 2024. This dividend declaration reflects a strategic decision to return capital to shareholders, contrasting with no dividends declared in the same quarter of the previous year.

As of September 30, 2024, total assets increased to $977.153 million from $943.797 million at the end of 2023, while total liabilities rose significantly to $78.500 million from $30.719 million. Total equity decreased to $892.817 million from $906.975 million, primarily due to the special dividend.

The company’s cash and cash equivalents decreased to $260.868 million from $317.487 million at the end of 2023, reflecting a net cash used in operating activities of $(45.844 million) for the nine months, compared to a net cash provided of $194.815 million in the same period of 2023.

Overall, Associated Capital Group, Inc. demonstrated a mixed performance with increased revenues and net income, but also faced higher expenses and a significant operating loss, alongside strategic capital returns to shareholders.