1Q 2024 Earnings Release

May 2, 2024Apollo Global Management, Inc. Reports First Quarter 2024 Results~PAGE-BREAK~Our solid FRE and SRE results in the first quarter were on-trend with normalized growth rates for the business.Capital formation and origination activity in the quarter were robust, with inflows and debt origination volume each totaling $40 billion.With visible momentum across the platform, we're confident in our ability to deliver on our financial targets for the year.Apollo Reports First Quarter 2024 ResultsNew York, May 2, 2024 - Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, "Apollo") today reported results for the first quarter ended March 31, 2024.DividendApollo Global Management, Inc. has declared a cash dividend of $0.4625 per share of its Common Stock for the first quarter ended March 31, 2024.This dividend will be paid on May 31, 2024 to holders of record at the close of business on May 17, 2024.Apollo Global Management, Inc. has also declared and set aside for payment a cash dividend of $0.8438 per share of its Mandatory Convertible Preferred Stock, which will be paid on July 31, 2024 to holders of record at the close of business on July 15, 2024.The declaration and payment of dividends on the Common Stock and the Mandatory Convertible Preferred Stock are at the sole discretion of Apollo Global Management, Inc.'s board of directors.Apollo cannot assure its stockholders that they will receive any dividends in the future.Conference CallApollo will host a public audio webcast on Thursday, May 2, 2024 at 8:30 a.m.EasteTime.During the webcast, members of Apollo's senior management team will review Apollo's financial results for the first quarter ended March 31, 2024.The webcast may be accessed at ir.apollo.com.For those unable to listen to the live broadcast, there will be a replay of the webcast available at the same link one hour after the event.Apollo distributes its earnings releases via its website and email distribution lists.Those interested in receiving firm updates by email can sign up for them at ir.apollo.com.Marc Rowan Chief Executive Officer~PAGE-BREAK~About ApolloApollo is a high-growth, global alternative asset manager.In our asset management business, we seek to provide our clients excess retuat every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity.For more than three decades, our investing expertise across our fully integrated platform has served the financial retuneeds of our clients and provided businesses with innovative capital solutions for growth.Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions.Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes.As of March 31, 2024, Apollo had approximately $671 billion of assets under management.To leamore, please visit www.apollo.com.Forward-Looking StatementsIn this press release, references to "Apollo," "we," "us," "our" and the "Company" refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require.This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.These statements include, but are not limited to, discussions related to Apollo's expectations regarding the performance of its business, its liquidity and capital resources and other non-historical statements.These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management.When used in this press release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements.Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.These statements are subject to certain risks, uncertainties and assumptions, including risks relating to inflation, interest rate fluctuations and market conditions generally, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management's assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, Athene's ability to maintain or improve financial strength ratings, the impact of Athene's reinsurers failing to meet their assumed obligations, Athene's ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, and litigation risks, among others.We believe these factors include but are not limited to those described under the section entitled "Risk Factors" in our annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 27, 2024, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov.These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our other filings with the SEC.We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.This press release does not constitute an offer of any Apollo fund.Investor and Media Relations ContactsFor investors please contact:Noah GunnGlobal Head of Investor RelationsApollo Global Management, [email protected] media inquiries please contact:Joanna RoseGlobal Head of Corporate CommunicationsApollo Global Management, [email protected]~PAGE-BREAK~Apollo Global Management, Inc. First Quarter 2024 Earnings~PAGE-BREAK~1Q'24  Per Share  LTM 1Q'24  Per ShareGAAP Financial Measures ($ in millions, except per share amounts)Net Income Attributable to Apollo Global Management, Inc. Common Stockholders  $1,403  $2.31Segment and Non-GAAP Financial Measures ($ in millions, except per share amounts)Fee Related Earnings ("FRE")  $462  $0.75  $1,833  $3.00Spread Related Earnings ("SRE")  $817  $1.32  $3,237  $5.30Fee and Spread Related Earnings  $1,279  $2.07  $5,070  $8.30Principal Investing Income ("PII")  $21  $0.03  $96  $0.15Adjusted Net Income ("ANI")  $1,064  $1.72  $4,301  $7.04Assets Under Management ($ in billions)Total Assets Under Management ("AUM")  $671Fee-Generating AUM ("FGAUM")  $506 1Q'24  LTM 1Q'24Business Drivers ($ in billions)Inflows  $40  $140Gross Capital Deployment  $57  $172Debt Origination  $40  $118First Quarter 2024 Financial Highlights• GAAP Net Income Attributable to Apollo Global Management, Inc. Common Stockholders was $1.4 billion for the quarter ended March 31, 2024, or $2.31 per share• Apollo's primary non-GAAP earnings metric, Adjusted Net Income, which represents the sum of FRE, SRE, and PII, less HoldCo interest and other financing costs and taxes, totaled $1.1 billion, or $1.72 per share, for the first quarterThis presentation contains non-GAAP financial information and defined terms which are described on pages 31 to 35. The non-GAAP financial information contained herein is reconciled to GAAP financial information on pages 26 to 30. Per share calculations are based on end of period Adjusted Net Income Shares Outstanding. LTM 1Q'24 per share amounts represent the sum of the last four quarters. See page 21 for the share reconciliation. "NM" as used throughout this presentation indicates data has not been presented as it was deemed not meaningful, unless the context otherwise provides.  1~PAGE-BREAK~(In millions, except per share amounts)  1Q'23  4Q'23  1Q'24RevenuesAsset ManagementManagement fees  $414  $444  $438Advisory and transaction fees, net  155  141  169Investment income (loss)  452  150  402Incentive fees  15  21  26Retirement ServicesPremiums  96  3,586  101Product charges  198  226  238Net investment income  2,612  3,354  3,576Investment related gains (losses)  1,065  2,621  1,677Revenues of consolidated variable interest entities  281  495  411Other revenues  13  8  2Total Revenues  5,301  11,046  7,040ExpensesAsset ManagementCompensation and benefits  (670)  (979)  (667)Interest expense  (31)  (47)  (51)General, administrative and other  (197)  (229)  (240)Retirement ServicesInterest sensitive contract benefits  (1,289)  (2,595)  (2,884)Future policy and other policy benefits  (466)  (4,088)  (543)Market risk benefits remeasurement gains (losses)  (346)  (570)  154Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired  (138)  (186)  (207)Policy and other operating expenses  (437)  (481)  (453)Total Expenses  (3,574)  (9,175)  (4,891)Other Income (Loss) - Asset ManagementNet gains (losses) from investment activities  (2)  21  39Net gains (losses) from investment activities of consolidated variable interest entities  34  35  25Other income (loss), net  32  34  (26)Total Other Income (Loss)  64  90  38Income (loss) before income tax (provision) benefit  1,791  1,961  2,187Income tax (provision) benefit  (253)  1,620  (422)Net income (loss)  1,538  3,581  1,765Net (income) loss attributable to non-controlling interests  (528)  (825)  (338)Net income (loss) attributable to Apollo Global Management, Inc.  1,010  2,756  1,427Preferred stock dividends  -  (24)  (24)Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders  $1,010  $2,732  $1,403Earnings (Loss) per shareNet income (loss) attributable to Common Stockholders - Basic  $1.67  $4.53  $2.31Net income (loss) attributable to Common Stockholders - Diluted  $1.66  $4.44  $2.28Weighted average shares outstanding - Basic  584  584  588Weighted average shares outstanding - Diluted  584  601  605GAAP Income Statement (Unaudited)21. 4Q'23 includes a one-time tax benefit of $1.8 billion resulting from the establishment of deferred tax assets related to the Government of Bermuda's enactment of the Corporate Income Tax Act of 2023.~PAGE-BREAK~Delivered solid first quarter results across both the Asset Management and Retirement Services businesses• FRE of $462 million driven by solid growth in fee related revenues• SRE of $817 million driven by robust organic growth and strong profitability• Combined, FRE and SRE totaled $1.3 billion in the first quarter, increasing 18% year-over-year and showcasing the predictable and growing earnings power of the combined business model• Total AUM of $671 billion benefited from inflows of $40 billion in the first quarter and $140 billion over the last twelve months, driving a 12% increase year-over-yearContinued execution on three strategic growth pillars• Origination: Record quarterly debt origination volume of $40 billion, with platforms contributing more than half of the total• Global Wealth: Solid fundraising activity from individual investors across more than twenty discrete products with a growing contribution from Apollo's diversified semi-liquid product suite• Capital Solutions: Near-record quarterly fee revenue driven primarily by debt-related investment activity in the first quarterFirst Quarter 2024 Business Highlights✓✓3~PAGE-BREAK~($ in millions, except per share amounts)  1Q'23  4Q'23  1Q'24  LTM 1Q'23  LTM 1Q'24Management fees  $577  $635  $652  $2,206  $2,555Capital solutions fees and other, net  138  116  141  488  541Fee-related performance fees  27  44  46  85  165Fee-related compensation  (211)  (200)  (220)  (790)  (844)Non-compensation expenses  (134)  (138)  (157)  (492)  (584)Fee Related Earnings   $397  $457  $462  $1,497  $1,833Net investment spread  921  959  1,022  3,286  4,126Other operating expenses  (124)  (119)  (114)  (477)  (471)Interest and other financing costs  (109)  (92)  (91)  (326)  (418)Spread Related Earnings  $688  $748  $817  $2,483  $3,237Fee and Spread Related Earnings  $1,085  $1,205  $1,279  $3,980  $5,070Principal Investing Income   $8  $51  $21  $105  $96Segment Income  $1,093  $1,256  $1,300  $4,085  $5,166HoldCo interest and other financing costs  (21)  (11)  (15)  (104)  (82)Taxes and related payables  (227)  (63)  (221)  (807)  (783)Adjusted Net Income  $845  $1,182  $1,064  $3,174  $4,301ANI per share  $1.42  $1.91  $1.72  $5.31  $7.041.Represents interest and other financing costs related to Apollo Global Management, Inc. not attributable to any specific segment.Total Segment Earnings4~PAGE-BREAK~($ in millions, except per share amounts)  1Q'23  4Q'23  1Q'24  LTM 1Q'23  LTM 1Q'24Management fees  $577  $635  $652  $2,206  $2,555Capital solutions fees and other, net  138  116  141  488  541Fee-related performance fees  27  44  46  85  165Fee-related compensation  (211)  (200)  (220)  (790)  (844)Non-compensation expenses  (134)  (138)  (157)  (492)  (584)Fee Related Earnings   $397  $457  $462  $1,497  $1,833Net investment spread  921  959  1,022  3,286  4,126Other operating expenses  (124)  (119)  (114)  (477)  (471)Interest and other financing costs  (109)  (92)  (91)  (326)  (418)Notable items  (25)  -  -  (41)  (90)Spread Related Earnings, Excluding Notable Items  $663  $748  $817  $2,442  $3,147Fee and Spread Related Earnings, Excluding Notable Items  $1,060  $1,205  $1,279  $3,939  $4,980Principal Investing Income   $8  $51  $21  $105  $96Segment Income, Excluding Notable Items  $1,068  $1,256  $1,300  $4,044  $5,076HoldCo interest and other financing costs  (21)  (11)  (15)  (104)  (82)Taxes and related payables  (222)  (63)  (221)  (799)  (764)Adjusted Net Income, Excluding Notable Items  $825  $1,182  $1,064  $3,141  $4,230ANI per share, Excluding Notable Items  $1.38  $1.91  $1.72  $5.24  $6.92Total Segment Earnings, Excluding Notable Items5Note: Notable Items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments.As a supplemental item, the Company provides the difference between management's long-term expectation of generating an 11% average annual retuand reported alternative net investment income.See page 10 for further details.~PAGE-BREAK~Segment Details~PAGE-BREAK~

Attachments

• Original Link
• Original Document
• Permalink

Disclaimer

Apollo Global Management Inc. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 10:30:47 UTC.