(AP) AssetMark Financial Holdings Inc. (AMK) reported second-quarter net income of $10 million, after reporting a loss in the same period a year earlier.
The Concord, California-based company said it had net income of 14 cents per share. Earnings, adjusted for stock option expense and costs related to mergers and acquisitions, came to 36 cents per share.
The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 34 cents per share.
“Our reframed growth strategy is starting to resonate with advisors, as evidenced by record results, greater share of wallet capture and record advisor satisfaction scores,” said AssetMark CEO Natalie Wolfsen.
“We realized record net flows, revenue, adjusted EBITDA, adjusted net income and adjusted EPS in the second quarter. The enhancements we have made to our platform and the deep relationships we have built with our advisors continue to pay dividends. The first half of the year has been outstanding, and I am excited to deliver what we have planned for advisors in the second half of 2021.”
The financial services company posted revenue of $128 million in the period, which also beat Street forecasts. Three analysts surveyed by Zacks expected $125.6 million.
Platform assets increased 33.8% year-over-year and 7.2% quarter-over-quarter to $84.6 billion, aided by quarterly record net flows of $2.2 billion and market impact net of fees of $3.5 billion. Year-to-date annualized net flows as a percentage of beginning-of-year platform assets were 11.2%.
More than 5,500 new households and 201 new producing advisors joined the AssetMark platform during the second quarter. In total, as of June 30, 2021 there were over 8,400 advisors (approximately 2,700 were engaged advisors) and over 196,400 investor households on the platform.
AssetMark realized a 26.6% annualized production lift from existing advisors for the second quarter, indicating that advisors continued to grow organically and increase wallet share on the platform.
