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Associated Capital Group, Inc.(AC), a leading financial services compa ny, has announced its financial results for the first quarter of 2023. The company reported a net income of $17.8 million, marking a significant turnaround compared to the net loss of $16.2 million in the same period last year. Additionally, the company generated revenue of $2.5 million during the quarter.
Financial Condition
The condensed consolidated statements of financial condition as of March 31, 2023, reveal that Associated Capital Group, Inc. had total assets amounting to $942.9 million, reflecting a slight increase compared to the previous quarter's figure of $927.7 million. The assets included cash and cash equivalents of $396.8 million, investments in U.S. Treasury Bills of $4.9 million, and investments in equity securities totaling $217.0 million. Other assets, such as investments in partnerships, receivables, and goodwill, amounted to $326.1 million.
On the liabilities side, the company's total liabilities stood at $29.7 million, with payable to brokers amounting to $15.2 million and compensation payable at $8.9 million. The company also had redeemable noncontrolling interests totaling $7.2 million.
Income and Expenses
For the three months ended March 31, 2023, Associated Capital Group, Inc. generated revenues of $2.5 million. The majority of the revenue came from investment advisory and incentive fees, which amounted to $2.4 million, while other revenues accounted for $54,000.
The company reported total expenses of $7.6 million, consisting of compensation expenses of $3.6 million, management fees of $2.5 million, and other operating expenses of $1.5 million.
Net Income and Earnings per Share
Associated Capital Group, Inc. recorded an operating loss of $5.1 million during the first quarter of 2023. However, the company experienced a significant boost in other income, primarily driven by a net gain of $20.5 million from investments. This resulted in a net income of $17.8 million attributable to Associated Capital Group, Inc.'s shareholders.
The net income per share attributable to the company's shareholders was $0.81 on both a basic and diluted basis. The weighted average shares outstanding for the quarter were 21,970,000.
Associated Capital Group, Inc. has shown strong financial performance in the first quarter of 2023, reporting a net income of $17.8 million compared to a net loss in the same period last year. The company's revenue stood at $2.5 million, reflecting its continued success in the financial services industry. With its diverse portfolio of assets and a positive outlook, Associated Capital Group, Inc. is well-positioned for future growth and profitability.