Teton Advisors, Inc. Reports Full Year and Fourth Quarter Results
-
Full year fully diluted GAAP EPS of
$0.75 compared to$1.18 a year ago. Fourth quarter fully diluted GAAP EPS of$0.19 compared to$0.27 a year ago.
-
Full year fully diluted Cash EPS1 of
$0.98 compared to$1.62 a year ago. Fourth quarter fully diluted Cash EPS1 of$0.26 compared to$0.49 a year ago.
-
Full year Revenues of
$12.0 million , down 13% year-over-year. Fourth quarter Revenues of$2.9 million , down 11% quarter-over-quarter.
-
Full year Average AUM of
$1.4 billion , down 17% year-over-year.
-
Net cash, cash equivalents and marketable securities totaled
$23.5 million or$14.30 per share as ofDecember 31, 2023 , an increase of 8.7% compared to a net of$21.6 million or$13.16 per share at the prior year end.
“Our bottom-up, fundamental, research driven, active management investment strategies, with a focus on small and mid-cap companies, stand to benefit from the rotation by investors back to value and inefficiently priced equities,” said
“Teton’s very capable platform, with an extensive amount of distribution agreements in place, serving retail, institutional, and high net worth clients, positions us well to attract new investment teams and client accounts and to grow both organically and through acquisitions,” said
Fourth quarter net income and fully diluted earnings per share were
Fourth quarter Revenues were
Financial Highlights | |||||||||||
($'s in 000's except AUM and per share data) | |||||||||||
Fourth Quarter |
|
Full Year |
|||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||
AUM - average (in millions) |
$ |
1,277 |
$ |
1,541 |
$ |
1,408 |
$ |
1,691 |
|||
AUM - end of period (in millions) |
$ |
1,346 |
$ |
1,498 |
$ |
1,346 |
$ |
1,498 |
|||
Revenues |
$ |
2,850 |
$ |
3,190 |
$ |
12,043 |
$ |
13,778 |
|||
Income before interest, taxes, depreciation & | |||||||||||
amortization, and impairment |
|
631 |
|
1,191 |
|
1,850 |
|
2,901 |
|||
Impairment of intangible asset |
|
59 |
|
400 |
|
59 |
|
400 |
|||
Net income |
|
300 |
|
426 |
|
1,205 |
|
1,601 |
|||
Net income per fully diluted share |
$ |
0.19 |
$ |
0.27 |
$ |
0.75 |
$ |
1.18 |
1Cash earnings and cash earnings per fully diluted share are non-GAAP performance measures and are explained and reconciled in the Supplemental Financial Information section starting on page 6 of this press release. The quarterly and full year results include the non-cash amortization expense of our intangible assets. In addition, the Company recognized a non-cash impairment charge of
Notice of Teton’s Annual General Meeting
The Company cordially invites you to participate in its 2024 Annual Meeting of Shareholders (the “Annual Meeting”) to be held on
For access to the webcast of each meeting, you must register at https://www.tetonadv.com/register. After registering, you will receive a confirmation email containing information about joining the meeting from a computer or telephone. Any questions can be directed to our Secretary at info@tetonadv.com or (914) 457-1077.
Table I |
||||||
|
||||||
Unaudited Condensed Consolidated Statements of Income |
||||||
For the Three Months Ended |
||||||
2023 |
|
2022 |
||||
Revenues | ||||||
Investment advisory fees - mutual funds, net |
$ |
1,906,268 |
$ |
2,353,846 |
||
Investment advisory fees - separate accounts |
|
587,911 |
|
650,154 |
||
Distribution fees and other income, net |
|
356,031 |
|
186,334 |
||
Total revenues |
|
2,850,210 |
|
3,190,334 |
||
Operating expenses | ||||||
Compensation |
|
1,075,301 |
|
558,462 |
||
Sub-advisory fees |
|
323,745 |
|
460,791 |
||
Distribution costs |
|
319,784 |
|
392,071 |
||
Marketing and administrative fees |
|
40,913 |
|
50,140 |
||
Advanced commissions |
|
3,305 |
|
2,925 |
||
Other operating expenses |
|
456,189 |
|
535,404 |
||
Total operating expenses |
|
2,219,237 |
|
1,999,793 |
||
Income before interest, taxes, depreciation, amortization and impairment |
|
630,973 |
|
1,190,541 |
||
Depreciation and amortization |
|
84,182 |
|
84,160 |
||
Impairment of intangible asset |
|
59,000 |
|
400,000 |
||
Income before income taxes |
|
487,791 |
|
706,381 |
||
Income tax provision |
|
187,896 |
|
280,819 |
||
Net income |
$ |
299,895 |
$ |
425,562 |
||
Net income per share: | ||||||
Basic |
$ |
0.19 |
$ |
0.27 |
||
Fully diluted |
$ |
0.19 |
$ |
0.27 |
||
Weighted average shares outstanding: | ||||||
Basic |
|
1,599,440 |
|
1,600,899 |
||
Fully diluted |
|
1,616,609 |
|
1,603,082 |
Table II |
||||||
|
||||||
Condensed Consolidated Statements of Income |
||||||
For the Years Ended |
||||||
2023 |
|
2022 |
||||
Revenues | ||||||
Investment advisory fees - mutual funds, net |
$ |
10,923,634 |
$ |
10,596,589 |
||
Investment advisory fees - separate accounts |
|
18,598 |
|
2,912,715 |
||
Distribution fees and other income, net |
|
1,102,504 |
|
268,329 |
||
Total revenues |
|
12,044,736 |
|
13,777,633 |
||
Operating expenses | ||||||
Compensation |
|
5,102,161 |
|
5,030,627 |
||
Sub-advisory fees |
|
179,543 |
|
2,131,362 |
||
Distribution costs |
|
1,369,024 |
|
1,629,606 |
||
Marketing and administrative fees |
|
18,379 |
|
169,288 |
||
Advanced commissions |
|
1,505,402 |
|
20,884 |
||
Other operating expenses |
|
2,020,302 |
|
1,894,477 |
||
Total operating expenses |
|
10,194,811 |
|
10,876,244 |
||
Income before interest, taxes, depreciation, amortization and impairment |
|
1,849,925 |
|
2,901,389 |
||
Depreciation and amortization |
|
336,727 |
|
336,957 |
||
Impairment of intangible asset |
|
59,000 |
|
400,000 |
||
Income before income taxes |
|
1,454,198 |
|
2,164,432 |
||
Income tax provision |
|
249,080 |
|
563,493 |
||
Net income |
$ |
1,205,118 |
$ |
1,600,939 |
||
Net income per share: | ||||||
Basic |
$ |
0.75 |
$ |
1.18 |
||
Fully diluted |
$ |
0.75 |
$ |
1.18 |
||
Weighted average shares outstanding: | ||||||
Basic |
|
1,599,440 |
|
1,357,915 |
||
Fully diluted |
|
1,612,300 |
|
1,360,949 |
||
Table III |
|||||
|
|||||
Condensed Consolidated Statements of Financial Condition |
|||||
As of |
|||||
2023 |
|
2022 |
|||
ASSETS | |||||
Cash and cash equivalents |
$ |
20,781,885 |
$ |
26,995,341 |
|
Investment advisory fees receivable |
|
846,781 |
|
999,299 |
|
Intangible assets, net |
|
2,589,113 |
|
2,974,011 |
|
Investments in securities |
|
2,706,683 |
|
2,559,401 |
|
Deferred tax asset |
|
3,002,595 |
|
3,183,152 |
|
Other assets |
|
541,782 |
|
549,952 |
|
Total assets |
$ |
30,468,839 |
$ |
37,261,156 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Due to broker |
$ |
- |
$ |
7,947,111 |
|
Compensation payable |
|
746,277 |
|
255,038 |
|
Payable to affiliates |
|
216,340 |
|
436,943 |
|
Distribution costs payable |
|
191,801 |
|
359,315 |
|
Income tax payable |
|
81,040 |
|
67,197 |
|
Accrued expenses and other liabilities |
|
1,153,112 |
|
1,632,569 |
|
Total liabilities |
|
2,388,570 |
|
10,698,173 |
|
Total stockholders' equity |
|
28,080,269 |
|
26,562,983 |
|
Total liabilities and stockholders' equity |
$ |
30,468,839 |
$ |
37,261,156 |
|
Supplemental Financial Information
As supplemental information, we provide a non-
In calculating quarterly and full year Cash Earnings, we add back to net income, the non-cash amortization expense associated with our intangible assets. In addition, as a result of an assessment of the carrying value of the intangible assets, the Company recognized a non-cash impairment charge of
The following table provides a reconciliation of net income to Cash Earnings and Cash Earnings Per Share for the quarterly periods presented:
For the Quarter Ended |
|||||
(unaudited) |
2023 |
|
2022 |
||
Net income |
$ |
299,895 |
$ |
425,562 |
|
Add: Intangible amortization - customer relationships |
|
81,475 |
|
81,475 |
|
Add: Impairment of intangible assets (net of tax impact) |
|
41,330 |
|
280,200 |
|
Cash Earnings |
$ |
422,700 |
$ |
787,237 |
|
Cash Earnings Per Fully Diluted Share |
$ |
0.26 |
$ |
0.49 |
The following table provides a reconciliation of net income to Cash Earnings and Cash Earnings Per Share for the full year periods presented:
For the Years Ended |
|||||
2023 |
|
2022 |
|||
Net income |
$ |
1,205,118 |
$ |
1,600,939 |
|
Add: Intangible amortization - customer relationships |
|
325,898 |
|
325,898 |
|
Add: Impairment of intangible assets (net of tax impact) |
|
41,330 |
|
280,200 |
|
Cash Earnings |
$ |
1,572,346 |
$ |
2,207,037 |
|
Cash Earnings Per Fully Diluted Share |
$ |
0.98 |
$ |
1.62 |
ABOUT TETON
Notification to all
Class B shares are convertible on a one-for-one basis into Class A shares that trade through multiple market makers on OTCQX: TETAA. Tetonshareholders may convert their Class BShares intoClass A Shares, which most recently traded at
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
Our disclosure and analysis in this press release contain some forward-looking statements. Forward-looking statements give our current expectations or forecasts of future events. Such statements are subject to contingencies and uncertainties, some or all of which may be material. We direct your attention to the cautionary statements regarding forward-looking information set forth in documents on Teton’s website. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations or if we receive any additional information relating to the subject matter of our forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240402196958/en/
Chief Financial Officer
(914) 457-1074
For further information, please visit: www.tetonadv.com
Source: