Attached files
^
Diamond Hill
------------
Investments
FOR IMMEDIATE RELEASE:
Investor Contact:
James F. Laird - Chief Financial Officer
614-255-3353 (jlaird@diamond-hill.com)
DIAMOND HILL INVESTMENT GROUP, INC. REPORTS RESULTS FOR THIRD QUARTER 2013
Columbus, Ohio - November 1, 2013 - Diamond Hill Investment Group, Inc.
(the "Company") (NASDAQ:DHIL) today reported unaudited results for the quarter
ended September 30, 2013 and filed its Form 10-Q.
Three Months Ended
September 30,
2013 2012 Change
Revenue $20,779,915 $16,859,607 23%
Net operating income 7,469,601 6,030,220 24%
Operating margin 36% 36%
Investment income 913,551 620,600
Net income 5,361,736 4,166,786 29%
Earnings per share - diluted $1.67 $1.32 27%
Nine Months Ended
September 30,
2013 2012 Change
Revenue $59,029,185 $49,634,682 19%
Net operating income 21,248,907 17,881,289 19%
Operating margin 36% 36%
Investment income 3,466,935 1,423,899
Net income 15,404,014 12,106,236 27%
Earnings per share - diluted $4.84 $3.91 24%
As Of
September 30, December 31, September 30,
2013 2012 2012
Assets under management (millions) $11,040 $9,429 $9,681
Book value per share $14.01 $6.86 $12.94
Total outstanding shares 3,263,677 3,169,987 3,160,768
An $8 per share special dividend was paid in December 2012.
Change in Assets Under Management
For the Three Months Ended September 30,
(in millions) 2013 2012
AUM at beginning of the period $10,427 $ 9,164
Net cash inflows (outflows)
proprietary funds 78 161
sub-advised funds 57 (42)
institutional accounts (50) (191)
85 (72)
Net market appreciation and income 528 589
Increase during the period 613 517
AUM at end of the period $11,040 $ 9,681
Change in Assets Under Management
For the Nine Months Ended September 30,
(in millions) 2013 2012
AUM at beginning of the period $ 9,429 $ 8,671
Net cash inflows (outflows)
proprietary funds 437 368
sub-advised funds (762) (117)
institutional accounts (225) (171)
(550) 80
Net market appreciation and income 2,161 930
Increase during the period 1,611 1,010
AUM at end of the period $11,040 $ 9,681
About Diamond Hill:
Diamond Hill is an independent investment management firm with significant
employee ownership and $11.0 billion in assets under management as of
September 30, 2013. The firm provides investment management services to
institutions and individuals through mutual funds, institutional separate
accounts, and private investment funds. Diamond Hill's entire investment team
shares the same intrinsic value investment philosophy focused on absolute
returns, and the firm's interests are firmly aligned with its clients through
significant investment in its strategies. For more information on
Diamond Hill, visit www.diamond-hill.com.
Use of Supplemental Data as Non-GAAP Performance Measure
Net Operating Income After Tax
As supplemental information, we are providing performance measures that are
based on methodologies other than generally accepted accounting principles
("non-GAAP") for "Net Operating Income After Tax" that management uses as
benchmarks in evaluating and comparing the period-to-period operating
performance of the Company and its subsidiaries.
The Company defines "net operating income after tax" as the Company's net
operating income less its income tax provision, excluding investment income
and the tax impact related to the investment income. The Company believes
that "net operating income after tax" provides a good representation of the
Company's operating performance, as it excludes the impact of investment
income on financial results. The amount of the investment portfolio and
market fluctuations on the investments can change significantly from one
period to another, which can distort the underlying earnings of
a company. We also believe "net operating income after tax" is an important
metric in estimating the value of an asset management business. This
non-GAAP measure is provided in addition to net income and net operating
income and is not a substitute for net income or net operating income and
may not be comparable to non-GAAP performance measures of other companies.
Three Months Ended September 30,
(in thousands, except per share data) 2013 2012
Net operating income, GAAP basis $ 7,470 $ 6,030
Non-GAAP adjustments:
Tax provision excluding impact of investment income 2,692 2,252
Net operating income after tax, non-GAAP basis $ 4,778 3,778
Net operating income after tax per diluted share,
non-GAAP basis $ 1.49 $ 1.20
Nine Months Ended September 30,
(in thousands, except per share data) 2013 2012
Net operating income, GAAP basis $ 21,249 $ 17,881
Non-GAAP adjustments:
Tax provision excluding impact of investment income 8,006 6,668
Net operating income after tax, non-GAAP basis $ 13,243 11,213
Net operating income after tax per diluted share,
non-GAAP basis $ 4.16 $ 3.62
The tax provision excluding impact of investment income is calculated by
applying the tax rate calculated from the income statement to net operating
income.
The Company's management does not promote that investors consider the above
non-GAAP financial measures alone, or as a substitute for, financial
information prepared in accordance with GAAP.
----------------------------------------
Throughout this press release, the Company may make forward-looking statements
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
(the "Exchange Act"), relating to such matters as anticipated operating
results, prospects for achieving the critical threshold of AUM,
technological developments, economic trends (including interest rates and
market volatility), expected transactions and acquisitions and similar
matters. The words "believe," "expect," "anticipate," "estimate," "should,"
"hope," "seek," "plan," "intend" and similar expressions identify
forward-looking statements that speak only as of the date thereof.
While the Company believes that the assumptions underlying its
forward-looking statements are reasonable, investors are cautioned that
any of the assumptions could prove to be inaccurate and accordingly, the actual
results and experiences of the Company could differ materially from the
anticipated results or other expectations expressed by the Company in its
forward-looking statements. Factors that could cause such actual results or
experiences to differ from results discussed in the forward-looking statements
include, but are not limited to: the adverse effect from a decline in the
securities markets; a decline in the performance of the Company's products;
changes in interest rates; changes in national and local economic and
political conditions, including the effects of implementation of the American
Taxpayer Relief Act of 2012 and the Jumpstart Our Business Startups Act
of 2012 and the continuing economic uncertainty in various parts of the world;
changes in government policy and regulation, including monetary policy; changes
in the Company's ability to attract or retain key employees; unforeseen costs
and other effects related to legal proceedings or investigations of governmental
and self-regulatory organizations; and other risks identified from time-to-time
in the Company's other public documents on file with the U. S. Securities and
Exchange Commission ("SEC").
325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215
614-255-3333 info@diamond-hill.com
