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| 8-K - 8-K - DIAMOND HILL INVESTMENT GROUP INC | dhil-2014630x8xkxearningsr.htm |
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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 SECOND QUARTER 2014
Columbus, Ohio - July 30, 2014 - Diamond Hill Investment Group, Inc. (the “Company,” "we," "us") (NASDAQ:DHIL) today reported unaudited results for the quarter ended June 30, 2014 and filed its Form 10-Q.
Three Months Ended June 30, | ||||||||||
2014 | 2013 | Change | ||||||||
Revenue | $ | 25,440,213 | $ | 19,914,101 | 28% | |||||
Net operating income | 9,673,605 | 7,151,691 | 35% | |||||||
Operating margin | 38 | % | 36 | % | ||||||
Investment income | 1,321,914 | 728,725 | ||||||||
Net income | 6,928,034 | 4,711,545 | 47% | |||||||
Earnings per share - diluted | $ | 2.12 | $ | 1.45 | 46% | |||||
Six Months Ended June 30, | ||||||||||
2014 | 2013 | Change | ||||||||
Revenue | $ | 48,629,309 | $ | 38,289,476 | 27% | |||||
Net operating income | 18,245,390 | 13,779,305 | 32% | |||||||
Operating margin | 38 | % | 36 | % | ||||||
Investment income | 1,838,442 | 2,553,384 | ||||||||
Net income | 12,677,633 | 10,042,277 | 26% | |||||||
Earnings per share - diluted | $ | 3.90 | $ | 3.12 | 25% | |||||
325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215 614-255-3333 info@diamond-hill.com
As Of | ||||||||||||
June 30, 2014 | December 31, 2013 | June 30, 2013 | ||||||||||
Assets under management (millions) | $ | 14,204 | $ | 12,186 | $ | 10,427 | ||||||
Book value per share (a) | $ | 19.61 | $ | 13.80 | $ | 12.06 | ||||||
Total outstanding shares | 3,306,084 | 3,257,247 | 3,261,594 | |||||||||
(a) - A $3 per share special dividend was paid in December 2013.
Change in Assets Under Management | |||||||
For the Three Months Ended June 30, | |||||||
(in millions) | 2014 | 2013 | |||||
AUM at beginning of the period | $ | 12,986 | $ | 10,574 | |||
Net cash inflows (outflows) | |||||||
proprietary funds | 482 | 218 | |||||
sub-advised funds | 66 | (782 | ) | ||||
institutional accounts | 65 | (142 | ) | ||||
613 | (706 | ) | |||||
Net market appreciation and income | 605 | 559 | |||||
Increase (decrease) during the period | 1,218 | (147 | ) | ||||
AUM at end of the period | $ | 14,204 | $ | 10,427 | |||
Change in Assets Under Management | |||||||
For the Six Months Ended June 30, | |||||||
(in millions) | 2014 | 2013 | |||||
AUM at beginning of the period | $ | 12,186 | $ | 9,429 | |||
Net cash inflows (outflows) | |||||||
proprietary funds | 847 | 360 | |||||
sub-advised funds | 99 | (819 | ) | ||||
institutional accounts | 226 | (175 | ) | ||||
1,172 | (634 | ) | |||||
Net market appreciation and income | 846 | 1,632 | |||||
Increase during the period | 2,018 | 998 | |||||
AUM at end of the period | $ | 14,204 | $ | 10,427 | |||
About Diamond Hill:
We are an independent investment management firm with significant employee ownership and $14.2 billion in assets under management as of June 30, 2014. We provide investment management services to institutions and individuals through mutual funds, institutional separate accounts, and private investment funds. Our entire investment team shares the same intrinsic value investment philosophy focused on absolute returns, and our interests are firmly aligned with our clients through significant investment in its strategies. For more information visit www.diamond-hill.com.
325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215 614-255-3333 info@diamond-hill.com
Use of Supplemental Data as Non-GAAP Performance Measure
Net Operating Income After Tax
As supplemental information, we provide 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 subsidiaries.
The Company defines “net operating income after tax” as our net operating income less income tax provision, excluding investment income and the tax impact related to the investment income. We believe that “net operating income after tax” provides a good representation of our 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 may 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||
Net operating income, GAAP basis | $ | 9,674 | $ | 7,152 | 35% | $ | 18,245 | $ | 13,779 | 32% | |||||||||
Non-GAAP adjustments: | |||||||||||||||||||
Tax provision excluding impact of investment income | (3,579 | ) | (2,876 | ) | 24% | (6,728 | ) | (5,307 | ) | 27% | |||||||||
Net operating income after tax, non-GAAP basis | $ | 6,095 | $ | 4,276 | 43% | $ | 11,517 | $ | 8,472 | 36% | |||||||||
Net operating income after tax per diluted share, non-GAAP basis | $ | 1.87 | $ | 1.32 | 42% | $ | 3.54 | $ | 2.63 | 35% | |||||||||
The tax provision excluding impact of investment income is calculated by applying the tax rate calculated from the income statement to net operating income.
Our 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.
325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215 614-255-3333 info@diamond-hill.com