Highbury Financial Inc. reported audited consolidated earnings results for the third quarter and nine months ended September 30, 2009. Net income attributable to the company for the third quarter of 2009 was $851,580 compared to $641,004 for the third quarter of 2008. Cash net income attributable to the company was $1,108,134 for the three months ended September 30, 2009 compared to $920,265 for the three months ended September 30, 2008. Diluted cash EPS for the third quarter of 2009 was $0.09 compared to $0.10 for the third quarter of 2008. Diluted earnings per common share for the third quarter of 2009 were $0.07 compared to $0.07 for the third quarter of 2008. Adjusted EBITDA for the three months ended September 30, 2009 was $1,105,339 compared to $1,099,742 for the three months ended September 30, 2008. For the third quarter of 2009, revenue was $11,196,682 compared to $9,595,927 for the third quarter of 2008. Operating income was $1,491,641 against $9,595,927 a year ago. Income before provision for income taxes was $1,944,848 against $1,799,707 a year ago. Net cash provided by operating activities was $2,658,460 against $1,968,028 a year ago. Net income attributable to the company for the first nine months of 2009 was $1,967,392 compared to $2,166,164 for the first nine months of 2008. Cash net income attributable to the company was $2,736,216 for the nine months ended September 30, 2009 compared to $3,007,006 for the nine months ended September 30, 2008. Diluted cash EPS for the first nine months of 2009 were $0.27 compared to $0.33 for the first nine months of 2008. Diluted earnings per common share for the first nine months of 2009 were $0.19 compared to $0.24 for the first nine months of 2008. Adjusted EBITDA for the nine months ended September 30, 2009 was $2,939,215 compared to $3,625,351 for the nine months ended September 30, 2008. For the first nine months of 2009, revenue was $27,456,743 compared to $28,555,443 for the first nine months of 2008. Operating income was $6,540,351 against $4,232,622 a year ago. Income before provision for income taxes was $6,133,339 against $4,700,259 a year ago. Net cash provided by operating activities was $6,191,431 against $4,190,805 a year ago. Purchase of fixed assets was $2,756 against $14,576 a year ago. Purchase of investments was $2,000,000 against $3,888,759 a year ago.

On October 1, 2009, Highbury Financial Inc. and City National Bank executed an amendment to the credit agreement, dated as of November 9, 2006, as amended by a first amendment to credit agreement dated October 31, 2007 and a second amendment to credit agreement dated October 1, 2008, which provides for an extension of the amended credit agreement through September 30, 2010 and modifies certain provisions of the amended credit agreement. The third amendment to credit agreement amends the rate at which borrowings will bear interest, at Highbury's option, to either (i) for a LIBOR loan, the greater of (w) 3.50% and (x) the LIBOR interest rate plus 2.75% per year or (ii) for a prime rate loan, the greater of (y) 3.50% and (z) the fluctuating prime rate plus 0.50% per year.

Highbury Financial Inc. will make its regular quarterly dividend payment of $0.05 per share as well as a special dividend payment of $1.50 per share on October 7, 2009 to holders of record as of October 6, 2009.