(RTTNews) - Wednesday, asset management company Affiliated Managers Group, Inc. (AMG: News ) said its third quarter profit increased from the year ago quarter, while cash earnings declined as revenues declined across the board. Cash earnings for the quarter, however, came in above Street expectations, while revenues fell short.

The Prides Crossing, Massachusetts-based company's third-quarter net income rose to $17.8 million from $16.5 million in the third quarter of 2008. Earnings per share for the third quarter increased to $0.40 from $0.39 in the prior-year quarter.

Cash net income for the third quarter decreased to $45.6 million from $52.8 million a year ago. Cash earnings decreased to $1.05 per share from $1.28 in the comparable quarter last year.

On average, 10 analysts polled by Thomson Reuters estimated earnings of $1.04 per share for the quarter. Analysts' estimates typically exclude special items.

Cash net income includes intangible amortization, intangible-related deferred taxes, APB 14-1 expense, affiliate equity expense, and affiliate depreciation.

Revenue for the third quarter decreased to $217.5 million from $290.8 million in the prior-year period. Analysts expected revenue of $227.88 million for the quarter.

Segment wise, revenue from mutual fund decreased to $80.68 million from $115.17 million a year ago. Institutional revenue decreased to $109.92 million from $141.65 million last year. High net worth revenue decreased to $26.86 million from $34.01 million in 2008.
The aggregate assets under management of AMG's affiliated investment management firms increased to $199.33 billion at the end of third quarter from $173.80 billion at the end of the second quarter.

Operating income for the quarter decreased to $61.61 million from $97.18 million in the year-earlier quarter.

For the nine-month period, the company reported cash net income of $125.8 million, compared to $173.1 million a year ago. On a per share basis, cash earnings declined to $2.99 from $4.27 in the similar period last year.

Net income for the period decreased to $34.9 million or $0.82 per share from $82.3 million or $2.02 per share last year. Revenue for the period decreased to $597.2 million from $934.8 million.

AMG is currently losing $1.85 or 2.85%, trading at $63.09 on a volume of 63 thousand shares on the NYSE.

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by RTT Staff Writer

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