For the first quarter of 2017, diluted earnings per share were $2.13, compared to $1.90 for the same period of 2016, and Economic earnings per share (“Economic EPS”) were $3.21, compared to $2.92 for the same period of 2016. For the first quarter of 2017, Net income was $122.5 million, compared to $104.0 million for the same period of 2016. For the first quarter of 2017, Economic net income was $183.2 million, compared to $159.3 million for the same period of 2016. For the first quarter of 2017, Adjusted EBITDA was $243.8 million, compared to $215.7 million for the same period of 2016. For the first quarter of 2017, Revenue was $544.3 million, compared to $545.4 million for the same period of 2016. For the first quarter of 2017, Aggregate revenue, which includes revenue from consolidated Affiliates as well as Equity method revenue (which represents asset-based fees and performance fees earned by Affiliates accounted for under the equity method), was $1.4 billion, compared to $1.0 billion for the same period of 2016. (Economic EPS, Economic net income, and Adjusted EBITDA are defined in the attached tables, along with reconciliations to the most directly comparable GAAP measure.)

Net client cash flows for the first quarter of 2017 were $(1.3) billion. AMG’s aggregate assets under management were approximately $754 billion at March 31, 2017.
AMG repurchased approximately $80 million in stock, or 0.5 million common shares, during the first quarter of 2017. The Company initiated a cash dividend in the first quarter, and yesterday, announced a second-quarter cash dividend of $0.20 per common share, payable May 25, 2017 to stockholders of record as of the close of business on May 11, 2017.

“AMG had a strong start to 2017, including year-over-year growth of 10% in our Economic earnings per share, which were $3.21 for the first quarter,” stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. “Through successful execution across all aspects of our growth strategy, our assets under management have grown 17% since the first quarter of 2016 to a record $754 billion – reflecting positive organic growth from net client cash flows over the period, the long-term track records of alpha generation by our Affiliates, and the addition of excellent new Affiliates.”

“Our positive net flows into alternative strategies were offset by elevated outflows from U.S. equity strategies, resulting in modest outflows overall for the quarter,” Mr. Healey continued. “Our Affiliates generated excellent investment performance across their industry-leading product sets, particularly in alternatives and global equities. We continue to see strong client demand across a diverse array of liquid and illiquid alternative strategies, and while our Affiliates’ equity products saw overall outflows during the quarter, client appetite remains robust for differentiated equity strategies focused on non-U.S. markets. Lower correlations, higher volatility, and the shift from monetary to fiscal policy worldwide will favor the abilities of skilled active managers, providing an increasingly constructive environment for performance-oriented managers running truly active strategies to generate excess returns. As global clients continue to seek outperformance from value-added strategies for the alpha portions of their portfolios, the best alpha managers will gain increasing market share, and given their long-term records of investment outperformance in attractive return-oriented areas, we expect our Affiliates to benefit from this trend.”

“Finally, we have an outstanding ongoing opportunity to enhance our earnings growth and the diversity of our business through accretive investments in new Affiliates. With our unique competitive position and track record of successful partnerships, our opportunity set remains unmatched in the industry. Through our disciplined commitment to prudent capital allocation, consistent return of capital to shareholders, and enhancing the organic growth of our Affiliates, we are positioned to generate substantial shareholder value ahead.”

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