Affiliated Managers : Reconciliation of Q2 2025 Guidance Range

Published: 2025-05-08 20:08:40 ET AMG

Published on 05/08/2025 at 20:08

Reconciliation of Q2 2025 Guidance Range

Guidance Range

Low High

Intangible amortization and impairments 29 29

Notes

Guidance Range

Low High

(in millions, except per share data)

Net income (controlling interest)

$ 104

$ 115

Interest Expense

Income Taxes1

Intangible amortization and impairments

Other items2

Adjusted EBITDA (controlling interest)

$ 210

$ 225

Adjusted EBITDA (controlling interest), Economic net income (controlling interest), and Economic earnings per share are important supplemental financial measures for management, as they enable management to assess our performance before our share of certain non-cash GAAP expenses primarily related to the acquisition of interests in Affiliates and to improve comparability between periods. Adjusted EBITDA (controlling interest) represents our performance before our share of interest expense, income and certain non-income based taxes, depreciation, amortization, impairments, gains and losses related to Affiliate Transactions, and non-cash items such as certain Affiliate equity activity, gains and losses on our contingent payment obligations, and unrealized gains and losses on seed capital, general partner commitments, and other strategic investments.

Adjusted EBITDA (controlling interest) is also adjusted to include realized economic gains and losses related to these seed capital, general partner commitments, and other strategic investments. Under our Economic net income (controlling interest) definition, we adjust Net income (controlling interest) for our share of pre-tax intangible amortization and impairments related to intangible assets (including the portion attributable to equity method investments in Affiliates), deferred taxes attributable to intangible assets, gains and losses related to Affiliate Transactions, net of tax, and other economic items which include certain Affiliate equity activity, gains and losses related to contingent payment obligations, tax windfalls and shortfalls from share-based compensation, unrealized gains and losses on seed capital, general partner commitments, and other strategic investments, and realized economic gains and losses related to these seed capital, general partner commitments, and other strategic investments. Economic earnings per share represents Economic net income (controlling interest) divided by the Average shares outstanding (adjusted diluted).

Average shares outstanding (adjusted diluted) presented in this reconciliation differs from Average shares outstanding (diluted) primarily by the potential issuance of shares upon settlement of Redeemable non-controlling interests and the assumed conversion of TRUPS shares (an aggregate of 2.1 million shares for the three months ended March 31, 2025).

Other economic items3

Economic net income (controlling interest)

$ 148

$ 159

Average shares outstanding (adjusted diluted)

29.6

Economic earnings per share

$ 5.01

$ 5.39

Intangible-related deferred taxes 15 15

Note: Numbers may not foot due to rounding.

As of May 8, 2025. Guidance assumes market blend up 1% QTD and up to $10mm in net performance fee EBITDA.

Includes equity method income taxes.

Includes $2mm of controlling-interest depreciation and $1mm of realized economic gains for guidance purposes.

Includes $1mm of realized economic gains after-tax for guidance purposes.

We believe that many investors use our Adjusted EBITDA (controlling interest) when comparing our financial performance to other companies in the investment management industry. Economic net income (controlling interest) and Economic earnings per share are used by management and our Board of Directors as our principal performance benchmarks, including as one of the measures for determining executive compensation. These non-GAAP performance measures are provided in addition to, but not as a substitute for, Net income (controlling interest), Earnings per share, or other GAAP performance measures. For additional information on our non-GAAP performance measures, see our most recent periodic reports on Form 10-K and Form 10-Q, which are accessible on the SEC's website at https://www.sec.gov.

Forward-looking statements speak only as of the date they are made. The Q2 2025 guidance range and this reconciliation constitute forward-looking statements made as of May 8, 2025, and we undertake no obligation to publicly update or review these or any other forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. In that respect, we caution readers not to place undue reliance on any forward-looking statements.

Disclaimer

AMG - Affiliated Managers Group Inc. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 22:28 UTC.