Associated Capital Group, Inc. Reports First Quarter Results

Associated Capital Group, Inc. (AC), a diversified financial services company based in Greenwich, Connecticut, has released its financial results for the first quarter ended March 31, 2025. The company reported a mix of financial outcomes, reflecting both strengths and challenges in the current market environment.

Financial Highlights

For the first quarter of 2025, Associated Capital Group reported total revenues of $2.1 million, a decrease from $3.0 million in the same period of 2024. The company's net income for the quarter was $7.7 million, down from $13.8 million in the first quarter of the previous year. Earnings per share (EPS) diluted were $0.36, compared to $0.64 in Q1 2024.

Assets Under Management (AUM) increased slightly to $1.27 billion at the end of March 2025, up from $1.25 billion at the end of December 2024. The book value per share also saw a modest increase, ending the quarter at $42.51 compared to $42.14 at the end of the previous quarter.

Business and Operational Highlights

The company's merger arbitrage strategy performed well, generating a gross return of 3.77% (2.81% net of fees) for the first quarter. However, revenues generated by the GAMCO International SICAV – GAMCO Merger Arbitrage were lower at $0.9 million compared to $1.7 million in the prior year period, due to lower average AUM in 2025.

Operating expenses, excluding management fees, increased to $6.3 million from $6.0 million in Q1 2024. This increase was primarily driven by a $0.9 million mark-to-market expense on phantom RSAs due to an increase in AC's stock price, partially offset by lower variable-based sales and marketing costs on the SICAV of $0.6 million.

Strategic Initiatives and Corporate Developments

In March 2025, Doug Jamieson retired as CEO and President but will continue serving as a Director. Patrick Huvane was named Interim CEO. The company declared a semi-annual dividend of $0.10 per share, payable on June 26, 2025, to shareholders of record on June 12, 2025. Additionally, AC repurchased 39,018 Class A shares for $1.4 million at an average price of $36.32 per share during the first quarter.

Associated Capital Group plans to accelerate the use of its capital by pursuing acquisitions and alliances to broaden its product offerings and add new sources of distribution. The company also aims to make direct investments in operating businesses using various techniques and structures.

Management's Perspective

Interim CEO Patrick Huvane expressed optimism about the company's future, stating, "The prospects for Associated Capital Group remain strong, and we are well-positioned to grow value in the face of an uncertain environment. I am privileged to take on this opportunity to serve AC shareholders."

Future Outlook

The company remains optimistic about ongoing M&A activity, supported by a more accommodative antitrust environment and pent-up demand from acquirers. Despite recent market volatility, the company believes that its strategic initiatives and strong market position will continue to drive growth.

SEC Filing: Associated Capital Group, Inc. [ AC ] - 8-K - May. 09, 2025