AGF Management (AGF) Q4 2024 earnings summary

Executive summary

• Ended fiscal 2024 with AUM and fee-earning assets of $54 billion, a 27% year-over-year increase, reflecting growth across all business lines.

• Achieved strong investment performance, with 60% of strategies outperforming peers over three and five years and multiple industry awards for fund performance.

• Strategic investments in Kensington Capital Partners and New Holland Capital expanded alternatives and diversified the business.

• Maintained a robust capital position with $341 million in investments and net cash of $38 million, supporting capital allocation flexibility.

• Quarterly dividend declared at $0.115 per share, with a 30% payout of free cash flow.

Financial highlights

• Adjusted EBITDA for FY 2024 was $166.4 million, up 26% year-over-year, with adjusted diluted EPS of $1.67, a 25% increase.

• Adjusted net income attributable to equity owners was $111.6 million for FY 2024, up 24% year-over-year.

• Net management fees for FY 2024 were $318.4 million, up 8% year-over-year.

• AGF Capital Partners adjusted revenues were $72.9 million for FY 2024, up 119% year-over-year, driven by the Kensington acquisition.

• Free cash flow for FY 2024 was $95.4 million, with 30% paid out as dividends.

Outlook and guidance

• SG&A guidance for 2025 is $245 million, a 3% year-over-year increase, reflecting inflation and KCPL consolidation.

• Effective tax rate expected to be around 23.1% going forward.

• Focus remains on delivering consistent investment performance, maintaining sales momentum, expanding private capital and alternatives, and meeting expense guidance.

• Plans to continue investing in growth, particularly in AGF Capital Partners, leveraging a strong balance sheet.