from Horizon Kinetics Holding Corporation (NASDAQ:SLGD)
Horizon Kinetics Holding Corporation Reports Fourth Quarter and Annual Results
Annual and Fourth Quarter 2024 Highlights:
Revenues of $57.2 million for the year ended December 31, 2024, an increase of 21.0%
Revenues of $19.2 million for the fourth quarter of 2024, an increase of 81.8%
Net income attributable to Horizon Kinetics Holding Corporation of $75.8 million and $92.5 million, or $4.07 and $5.07 per common share for the three months and year ended December 31, 2024, respectively
Assets under management ("AUM") grew to $9.8 billion as of December 31, 2024, an increase of 18% for the fourth quarter and 52% for the year ended December 31, 2024
Board of Directors declares a $0.107 per share dividend
NEW YORK, NY / ACCESS Newswire / March 26, 2025 / Horizon Kinetics Holding Corporation (the "Company" or "HKHC") (OTC PINK:HKHC) reported financial results for its fourth quarter and year ended December 31, 2024.
The Company continued to grow revenues during the fourth quarter resulting from continued increases in AUM in its proprietary funds, separately managed accounts, ETFs and mutual funds. The increases in AUM across many of these platforms were largely driven by the increases in the market value of Texas Pacific Land Corporation ("TPL"), which increased 25% during the quarter and 111% for the year and Grayscale Bitcoin Trust ("GBTC"), which increased 47% during the quarter and 114% for the year.
The Company's revenue increases were partially offset by a variety of higher operating expenses, including higher commissions on the higher revenues and general and administrative costs related to the acquisition of Scott's Liquid Gold and various professional and legal fees.
The Company benefited from incentive fees of $51.7 million earned from proprietary funds during the year ended December 31, 2024, which were predominantly recorded during the fourth quarter. The economic benefit is reflected primarily in the attribution to redeemable noncontrolling interests in the consolidated statement of operations. Similarly, the Company benefited from its interests within the consolidated investment products of approximately $101.0 million for the year ended December 31, 2024 as a result of their unrealized gains of $840.7 million for the year ended December 31, 2024.
The Company also benefited from unrealized gains of $40.3 million and $16.4 million for the year and three months ended December 31, 2024, respectively, from its investment holdings as well as unrealized gains of $7.0 million and $4.2 million for the year and three months ended December 31, 2024, respectively, from its digital asset holdings.
In connection with the August 1, 2024 merger transaction, the Company converted from an LLC to a C-Corp for federal and state income tax purposes. As a result, the Company recognized a non-cash deferred income tax expense of $59.7 million related to the tax basis differences for certain assets, principally unrealized gains in various investments, digital assets and indefinite lived intangible assets.
On March 6, 2025, the Company issued a press release announcing that, on March 3, 2025, the Company's Board of Directors declared a cash dividend of $0.107 per share, payable on March 28, 2025, to shareholders of record as of the close of business on March 17, 2025.
Conference Call
Murray Stahl, Chairman and Chief Executive Officer, and Mark Herndon, Chief Financial Officer, will host a conference call on Wednesday, April 2, 2025, at 4:15 p.m. EDT. You may register for the conference call by clicking on the following link: https://attendee.gotowebinar.com/register/7489969312130245721
HORIZON KINETICS HOLDING CORPORATION
Consolidated Statements of Operations
(in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
As Restated | As Restated | |||||||||||||||
Revenue: | ||||||||||||||||
Management and advisory fees | $ | 18,209 | $ | 10,532 | $ | 55,486 | $ | 46,845 | ||||||||
Other income and fees | 995 | 33 | 1,695 | 418 | ||||||||||||
Total revenue | 19,204 | 10,565 | 57,181 | 47,263 | ||||||||||||
Operating expenses: | ||||||||||||||||
Compensation, related employee benefits, and cost of goods sold | 18,280 | 6,028 | 38,579 | 26,851 | ||||||||||||
Sales, distribution and marketing | 11,504 | 2,387 | 19,510 | 10,209 | ||||||||||||
Depreciation and amortization | 505 | 460 | 1,919 | 1,828 | ||||||||||||
General and administrative expenses | 2,950 | 2,818 | 10,383 | 8,493 | ||||||||||||
Expenses of consolidated investment products | 668 | 464 | 2,319 | 1,664 | ||||||||||||
Total operating expenses | 33,907 | 12,157 | 72,710 | 49,045 | ||||||||||||
Operating income (loss) | (14,703 | ) | (1,592 | ) | (15,529 | ) | (1,782 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Equity earnings (losses), net | 2,354 | (816 | ) | 6,037 | (2,448 | ) | ||||||||||
Interest and dividends | 453 | 357 | 1,714 | 826 | ||||||||||||
Other income (expense) | (127 | ) | (695 | ) | (2,985 | ) | (669 | ) | ||||||||
Investment and other income (losses) of consolidated investment products, net | 398,266 | 110,324 | 840,735 | 92,962 | ||||||||||||
Interest and dividend income of consolidated investment products | 2,883 | 3,849 | 20,377 | 14,206 | ||||||||||||
Unrealized gain on digital assets, net | 4,192 | - | 6,984 | - | ||||||||||||
Realized gain on investments, net | 90 | (21 | ) | 432 | 1,388 | |||||||||||
Unrealized gain (loss) on investments net | 16,386 | (4,638 | ) | 41,329 | (15,376 | ) | ||||||||||
Total other income (expense), net | 424,497 | 108,360 | 914,623 | 90,889 | ||||||||||||
Income before provision for income taxes | 409,794 | 106,768 | 899,094 | 89,107 | ||||||||||||
Income tax (expense) benefit | (33,548 | ) | 829 | (104,283 | ) | 122 | ||||||||||
Net income | 376,246 | 106,183 | 794,811 | 89,229 | ||||||||||||
Less: net income attributable to redeemable noncontrolling interests | (300,486 | ) | (103,754 | ) | (702,339 | ) | (93,721 | ) | ||||||||
Net income (loss) attributable to Horizon Kinetics Holding Corporation | $ | 75,760 | $ | 2,429 | $ | 92,472 | $ | (4,492 | ) | |||||||
Basic and diluted net income (loss) per common shares: | ||||||||||||||||
Net income (loss) | $ | 4.07 | $ | 0.14 | $ | 5.07 | $ | (0.25 | ) | |||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic and diluted | 18,634 | 17,984 | 18,256 | 17,984 | ||||||||||||
HORIZON KINETICS HOLDING CORPORATION
Consolidated Statements of Financial Condition
(in thousands)
December 31, | December 31, | |||||||
2024 | ||||||||