AGF Management (AGF) Q3 2024 earnings summary

Executive summary

• Assets under management and fee-earning assets reached $49.7 billion as of August 31, 2024, up 18% year-over-year, driven by acquisitions, mutual fund growth, and strong investment performance.

• Adjusted diluted EPS was $0.37 for Q3 2024, up from $0.35 in the previous quarter and $0.34 a year ago.

• Board declared a quarterly dividend of $0.115 per share for Q3 2024.

• Positive retail net flows and improved investment performance amid market volatility.

• AGF completed the acquisition of a 51% stake in Kensington Capital Partners Limited (KCPL) in March 2024, consolidating its results.

Financial highlights

• Adjusted net income attributable to equity owners was $24.5 million, up from $22.9 million in the prior year.

• Adjusted EBITDA for Q3 2024 was $40.2 million, up from $37.0 million last quarter and $33.7 million year-over-year.

• Total adjusted net revenue was $99.8 million, up from $84.0 million year-over-year.

• Free cash flow for the quarter was $29.1 million, up from $22.9 million in the prior year.

• Adjusted SG&A was $59.6 million, up from $50.3 million year-over-year, reflecting KCPL acquisition and higher compensation.

Outlook and guidance

• Focus remains on delivering consistent investment performance, maintaining sales momentum, and diversifying capabilities.

• Management anticipates future capital allocation to balance shareholder returns and growth investments.

• Interest rate uncertainty and potential economic slowdown may drive continued market volatility and impact investment returns.

• Full-year adjusted SG&A guidance remains unchanged, with performance-based compensation running higher due to strong sales and investment performance.

• The company remains focused on disciplined capital allocation and monitoring market conditions closely.