Affiliated Managers Group, Inc. (NYSE: AMG) stock rose over 2.9% on 4th Feb, 2019 (as of 10:42 am GMT-5; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 18. Net client cash flows for the fourth quarter of 2018 were $(15.8) billion. AMG’s aggregate assets under management were $736 billion at December 31, 2018. for the fourth quarter of 2018, net income (controlling interest) is $(151.3) million, compared to $315.4 million for the same period of 2017. For the fourth quarter of 2018, Economic net income is of $185.8 million, compared to $261.3 million for the same period of 2017. For the fourth quarter of 2018, Adjusted EBITDA is $191.3 million, compared to $361.3 million for the same period of 2017. For the fourth quarter of 2018, Aggregate fees were $1.2 billion, compared to $1.7 billion for the same period of 2017.
AMG in the fourth quarter of FY 18 has reported the adjusted earnings per share of $3.53, beating the analysts’ estimates for the adjusted earnings per share of $3.51. The company had reported the adjusted revenue of $564.4 million in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $555.9 billion.
Meanwhile, AMG has appointment Jay C. Horgen as President, effective immediately. Mr. Horgen will also continue to serve as Chief Financial Officer. Nathaniel Dalton, who was previously President and Chief Executive Officer, will continue as Chief Executive Officer of AMG.
The company also declared a first-quarter cash dividend of $0.32 per common share, which represents an increase of approximately 7% over the prior level, payable March 1, 2019 to stockholders of record as of the close of business on February 14, 2019. In addition, AMG has increased the share repurchase authorization to a total of five million shares. During the fourth quarter of 2018, AMG repurchased approximately $75.5 million in stock, and for the full year ended December 31, 2018, a total of approximately $489.5 million.
On the other hand, AMG has signed (i) an Amended and Restated Credit Agreement, providing for a $1.25 billion five-year senior unsecured multicurrency revolving credit facility maturing on January 18, 2024, with Bank of America, N.A., and (ii) a Third Amended and Restated Term Credit Agreement, providing for a $450 million four-year senior unsecured term loan credit facility maturing on January 18, 2023, with Bank of America, N.A.. The Company may increase the commitments under the Revolving Credit Agreement by up to $500 million and borrow up to an additional $75 million under the Term Credit Agreement.