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ASSOCIATED CAPITAL GROUP, INC. Reports听First Quarter Results

• Performance for our Merger Arbitrage strategy in the first quarter was 3.8% before expenses and 2.8% after expenses
• Assets Under Management (鈥淎UM鈥�): $1.27听产颈濒濒颈辞苍 at听March 31, 2025 compared to $1.25听产颈濒濒颈辞苍 at December 31, 2024
• Book Value per share ended the quarter at $42.51 per share vs $42.14 per share at听December 31, 2024

GREENWICH, Conn., May 08, 2025 (GLOBE NEWSWIRE) -- Associated Capital Group, Inc. (鈥淎C鈥� or the 鈥淐ompany鈥�), a diversified financial services company, today reported its financial results for the听first quarter ended March 31, 2025.

In March 2025, Doug Jamieson retired as our Chief Executive Officer and President but will continue serving the Company as a Director. We thank him for his years of dedicated service and look forward to his continued contributions as a member of the Board of Directors. Patrick Huvane was named Interim Chief Executive Officer upon Doug Jamieson鈥檚 retirement.

鈥淭he prospects for Associated Capital Group remain strong and we are well positioned to grow value in the face of an uncertain environment. I am privileged to take on this opportunity to serve AC shareholders.鈥� Mr. Huvane said.

Financial Highlights
($ in 000's except AUM and听per share data)

First听Quarter Financial Data

• Assets under management ended the quarter at $1.27 billion versus $1.25 billion at December 31, 2024.听
• Book value was $42.51 per share at March 31, 2025 versus $42.14 per share at December 31, 2024.听

First听Quarter Results

Total revenues in the first quarter were $2.1 million compared to $3.0 million in the first quarter of 2024.听 Revenues generated by the GAMCO International SICAV 鈥� GAMCO Merger Arbitrage (the 鈥淪ICAV鈥�) were $0.9 million versus $1.7听million in the prior year period due to lower average AUM in 2025. All other revenues were $1.2 million compared to $1.3听million in the year-ago quarter.

Total operating expenses, excluding management fee, were $6.3 million in the first quarter of 2025 and $6.0听million in the first quarter of 2024. The increase is driven primarily by $0.9 million of mark to market expense on phantom RSA鈥檚 driven by an increase in AC鈥檚 stock price compared to 2024, partially offset by lower variable-based sales and marketing costs on the SICAV of $0.6 million.

Net investment and other non-operating income听was $15.8 million for the first quarter听of 2025 compared to $22.6听million in the first quarter of 2024. The primary driver of the听2025 quarter's results was our听merger arbitrage听partnerships.听Interest income was lower in the 2025 quarter due to lower average interest rates in the first quarter of 2025.

For the quarter ended March 31, 2025, the management fee was $1.1听million versus $2.0听million for the three months ended March 31,听2024.

The effective tax rate applied to our pre-tax income for the quarter ended March 31, 2025听was 26.3%. In the year ago quarter, the effective tax rate was 21.5%; 2024鈥檚 lower rate is听primarily driven by deferred tax benefits from a foreign investment.

Assets Under Management (AUM)

Assets under management at听March 31, 2025 were $1.27 billion, $21 million higher than year-end 2024听primarily due to听market appreciation听of $33 million and听the impact of currency fluctuations in听non-US dollar denominated classes of investment funds ($13 million). These increases were partially offset by net outflows of $25 million.听

(a) Includes $401, $408, and $580听of sub-advisory AUM related to GAMCO International SICAV - GAMCO Merger Arbitrage, $70, $68, and $66 of sub-advisory AUM related to Gabelli Merchant Partners Plc (f/k/a Gabelli Merger Plus+ Trust Plc), respectively.
(b) Assets under management represent the assets invested in this strategy that are attributable to Associated Capital Group, Inc.

Alternative Investment Management

The alternative investment strategy offerings center around our merger arbitrage strategy which has an absolute return focus of generating returns independent of the broad equity and fixed income markets. We also offer strategies utilizing fundamental, active, event-driven and special situations investments.

Merger Arbitrage

For the听first quarter of听2025, the听longest continuously offered fund in the merger arbitrage strategy generated gross returns of 3.77% (2.81% net of fees). A summary of the听performance is as follows:

^{(a) Net听performance is net of fees and expenses, unless otherwise noted. Performance shown for an actual fund in this strategy. The performance of other funds in this strategy may vary. Past performance is no guarantee of future results.
(b) Represents annualized returns through听March 31, 2025
(c) Inception Date: February 1985}

Global M&A activity for the first quarter of 2025 totaled $890 billion, an increase of 15% compared to the first quarter of 2024. Technology was the most active sector with $165 billion, accounting for 19% of total value, followed by Financials ($165 billion or 19%) and Energy & Power ($126 billion or 14%). Europe was a bright spot with M&A totaling $154 billion in Q1 2025, a 12% increase compared to Q1 2024, while Asia Pacific M&A increased 59% to $187 billion. Both of these regions experienced their strongest performance in 3 years. Private Equity remained active, accounting for 21% of deal volume overall, or about $185 billion. This was the third strongest opening quarter for private equity and is indicative of the values PE firms are finding and reflective of the approximately $3 trillion of 鈥渄ry powder鈥� private equity firms have to deploy. Despite recent market volatility creating uncertainty, we believe a more accommodative antitrust environment and pent-up demand from acquirers should be supportive of ongoing M&A activity.

The Merger Arbitrage strategy is offered by mandate and client type through partnerships and offshore corporations serving听accredited as well as institutional investors. The strategy is also offered in separately managed accounts, a Luxembourg UCITS (an entity organized as an Undertaking for Collective Investment in Transferrable Securities)听and a听London Stock Exchange listed investment company, Gabelli Merchant Partners Plc (GMP-LN) (f/k/a Gabelli Merger Plus+ Trust Plc).听

Acquisitions

Associated Capital Group's plan is to accelerate the use of its capital. We intend to leverage our research and investment capabilities by pursuing acquisitions and alliances that will broaden our product offerings and add new sources of distribution. In addition, we may make direct investments in operating businesses using a variety of techniques and structures to accomplish our objectives.

Gabelli Private Equity Partners, LLC was created to launch a private equity business, somewhat akin to the success our predecessor PE firm had in the 1980s. We will continue our outreach initiatives with business owners, corporate management, and various financial sponsors. We are activating our program of buying privately owned, family started businesses, controlled and operated by the founding family.

Shareholder Compensation

On May 7, 2025, the Board of Directors declared a semi-annual dividend of $0.10 per share, which is听payable听on听June 26, 2025听to shareholders of record on June 12, 2025.

During the听first quarter of 2025, AC repurchased听39,018 Class A shares, for $1.4 million, at an average price of $36.32 per share. In the听first quarter of 2024, AC repurchased听117,354 Class A shares, for $3.9 million, at an average price of $33.63 per share.

Since our spin-off from GAMCO听on November 30, 2015, AC has returned $184.2听million to shareholders through share repurchases, exchange offers and听dividends of $83.2听million.

At March 31, 2025, there were 21.145 million shares outstanding, consisting of听2.194 million Class A shares and听18.951 million Class B shares outstanding.

About Associated Capital Group, Inc.

Associated Capital Group, Inc. (NYSE:AC), based in Greenwich, Connecticut, is a diversified global financial services company that provides alternative investment management through Gabelli & Company Investment Advisers, Inc. (鈥淕CIA鈥�). We have also earmarked听proprietary capital for our direct investment business that invests in new and existing businesses. The direct investment business is developing along several core pillars including听Gabelli Private Equity Partners, LLC (鈥淕PEP鈥�), formed in August 2017 with $150 million of authorized capital as a 鈥渇und-less鈥� sponsor. We also created听Gabelli Principal Strategies Group, LLC (鈥淕PS鈥�) in December 2015听to pursue strategic operating initiatives.

Operating Loss Before Management Fee

Operating loss before management fee expense represents a non-GAAP financial measure used by management to evaluate its business operations.听We believe this measure is useful in illustrating the operating results of the Company as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company鈥檚 proprietary investment portfolio and interest expense.

^{(1) Management fee expense is incentive-based and is equal to 10% of Income before management fee and income taxes and excludes the impact of consolidating entities. For the three months ended March 31, 2025听and 2024, Income before management fee, income taxes and excluding consolidated entities was $11,028 and听$19,822, respectively. As a result, $1,103 and $1,982 was accrued for the 10% management fee expense in the first quarters 2025 and 2024, respectively.}

^{(1) Certain captions include听amounts related to a consolidated variable interest entity听("VIE") and voting interest entity听("VOE");听refer to footnote 4 of the Condensed Consolidated Financial Statements included in the 10-Q report to be filed for the quarter ended听March 31, 2025 for more details on the impact of consolidating these entities.
(2) Investment in GAMCO stock: 674,700, 699,749听and 2,382,170 shares, respectively.}

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain 鈥渇orward-looking statements鈥� within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥減roject,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渂elieve,鈥� and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe. Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, and a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10 and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.

A photo accompanying this announcement is available at听