AMG Reports Financial and Operating Results for Fourth Quarter and Full Year 2007.Company Reports EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $1.53, Cash EPS of $2.15 for Fourth Quarter, EPS of $4.58, Cash EPS of $6.65 for Full Year 2007 BOSTON Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. -- Affiliated Managers Group, Inc. (NYSE NYSE See: New York Stock Exchange : AMG AMG All Music Guide (music website) AMG All Media Guide (group of media websites) AMG All Movie Guide (Movie website) AMG Arzneimittelgesetz (German Law) ) today reported its financial and operating results for the fourth quarter and full year 2007. Cash earnings per share ("Cash EPS") for the fourth quarter of 2007 were $2.15, compared to $1.79 for the fourth quarter of 2006, while diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter of 2007 were $1.53, compared to $1.21 for the same period of 2006. Cash Net Income was $81.8 million for the fourth quarter of 2007, compared to $68.6 million for the fourth quarter of 2006. Net Income for the fourth quarter of 2007 was $60.9 million, compared to $49.0 million for the fourth quarter of 2006. (Cash EPS and Cash Net Income are defined in the attached tables.) For the fourth quarter of 2007, revenue was $383.0 million, compared to $328.8 million for the fourth quarter of 2006. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the fourth quarter of 2007 was $132.9 million, compared to $105.2 million for the same period of 2006. For the year ended December December: see month. 31, 2007, Cash Net Income was $258.7 million, while EBITDA was $418.2 million. For the same period, Net Income was $182.0 million, on revenue of $1.4 billion. For the year ended December 31, 2006, Cash Net Income was $222.5 million, while EBITDA was $342.1 million. For the same period, Net Income was $151.3 million, on revenue of $1.2 billion. Net client cash flows for the fourth quarter of 2007 were approximately $(7.2) billion, with flows in the institutional, mutual fund, and high net worth channels of $(6.4) billion, $(500) million, and $(300) million, respectively. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma for a pending investment, aggregate assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. were $282.7 billion at December 31, 2007. "We reported strong earnings growth for the quarter and full year, with Cash earnings per share of $2.15, an increase of 20%, and $6.65, an increase of 17%, respectively, over the prior year periods," stated Sean M. Healey Healey is a surname originally from the Sligo area of the Republic of Ireland and the Gaelic word O hEalaighthe which derives from the word 'ealadhach' meaning indigenous. Other versions of this surname include Haly, Haley, Haily, Hely, Healy, O'Healey, O'Haly and many more. , President and Chief Executive Officer. "We were pleased with our results for the quarter, and although we experienced outflows in some of our quantitative products during a challenging period for many quantitative managers, broadly speaking Adv. 1. broadly speaking - without regard to specific details or exceptions; "he interprets the law broadly" broadly, generally, loosely , our Affiliates generated excellent performance in 2007. Highlights of the quarter included the strong investment performance of our global and international managers, such as Tweedy, Browne and Genesis, as well as growth equities managers Friess Associates and TimesSquare, which significantly outperformed their benchmarks for the quarter and full year and also attracted new business." Mr. Healey continued, "Looking ahead to 2008, notwithstanding recent market volatility, we are in an excellent position to continue to generate strong growth. Through our Affiliates' diverse array of outstanding investment products, we actively participate in the industry's fastest growing and most dynamic areas, such as global and international equities and alternative investment strategies. We have significantly increased the breadth of our alternative investment products to include more than 40 distinct investment strategies, many of which are relatively uncorrelated with the equity markets. As we continue to enhance our exposure in this area, we are confident that these products will provide a substantial upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside contribution to our earnings going forward." "In addition to the ongoing growth of our Affiliates, we made tremendous progress in enhancing our Affiliates' businesses through the establishment of our global distribution platform," Mr. Healey added. "With a distribution office in Sydney Sydney, city, Australia Sydney, city (1991 pop. 3,097,956), capital of New South Wales, SE Australia, surrounding Port Jackson inlet on the Pacific Ocean. Sydney is Australia's largest city, chief port, and main cultural and industrial center. , Australia, and the near-term opening of our London office, we are helping our Affiliates attract and serve non-U.S. clients. Given the early success of this initiative, we continue to identify a number of opportunities worldwide where our boutique Boutique A small investment firm specializing in offering specific, but limited services to a select number of individuals. Notes: These investment firms are the alternatives to large financial supermarkets. They provide a highly personalized environment for investing. investment managers are recognized for their investment expertise and broad appeal to sophisticated investors." Mr. Healey concluded, "Finally, the momentum in our new investments area has never been stronger. We recently completed investments in two outstanding alternative investment managers, ValueAct Capital and BlueMountain Capital Management, and currently have a number of very attractive investment prospects in the pipeline. With substantial financial capacity, we are confident that we will continue to generate meaningful growth in earnings by executing accretive investments in the highest quality firms. Through our ongoing discussions with prospective firms, it's clear that AMG has an established reputation as an innovative and helpful partner to our Affiliates, making us uniquely positioned to execute upon a range of investment opportunities." About Affiliated Managers Group, Inc. AMG is an asset management company with equity investments in a diverse group of boutique investment management firms. AMG's strategy is to generate growth through the internal growth of its existing Affiliates, as well as through investments in new Affiliates. AMG's innovative transaction structure allows individual members of each Affiliate's management team to retain or receive significant direct equity ownership in their firm while maintaining operating autonomy. In addition, AMG provides centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations. For more information, please visit the Company's Web site at www.amg.com. Certain matters discussed in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay , competition for acquisitions of interests in investment management firms, the ability to close pending investments, the investment performance of our Affiliates and their ability to effectively market their investment strategies, and other risks detailed from time to time in AMG's filings with the Securities and Exchange Commission. Reference is hereby made to the "Cautionary Statements" set forth in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2006. Financial Tables Follow A teleconference will be held with AMG's management at 11:00 a.m. Eastern time today. Parties interested in listening to the teleconference should dial 1-800-366-7449 (domestic calls) or 1-303-262-2191 (international calls) starting at 10:45 a.m. Eastern time. Those wishing to listen to the teleconference should dial the appropriate number at least ten minutes before the call begins. The teleconference will be available for replay approximately one hour after the conclusion of the call. To access the replay, please dial 1-800-405-2236 (domestic calls) or 1-303-590-3000 (international calls) and enter the pass code, 11107395#. The live call and the replay of the session, and the additional financial information referenced during the teleconference, may also be accessed via the Web at www.amg.com. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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