Janus Henderson Group plc Reports Fourth Quarter and Full-Year 2023 Results
- Strong long-term investment performance with the majority of AUM outperforming benchmarks
- Significant increase in AUM by 9% quarter over quarter and 17% year over year
- Reduction in net outflows compared to the previous year
- Quarterly dividend declared and capital returned through dividends and share buybacks
- None.
Insights
The reported increase in assets under management (AUM) by 17% year over year and the reduction in net outflows from US htmlspecialchars(json_encode($0.7)) billion in 2023 compared to US htmlspecialchars(json_encode($30.8)) billion in 2022 are positive indicators of the company's financial health and investor confidence. The 9% quarter over quarter AUM growth, coupled with a strong balance sheet and over US$1.0 billion in cash and cash equivalents, suggests robust cash flow management and a solid liquidity position. The declaration of a quarterly dividend of US htmlspecialchars(json_encode($0.39)) per share and the return of US htmlspecialchars(json_encode($321)) million in capital through dividends and share buybacks reflect a shareholder-friendly capital allocation policy.
However, the presence of net outflows, even though reduced, indicates potential challenges in retaining and attracting capital, which could be a concern for long-term growth. The investment performance data, with 60% to 71% of AUM outperforming relevant benchmarks over various time frames, provides evidence of strong fund management capabilities, which could be a key factor in future investor decisions. These results may positively influence the stock's attractiveness to investors looking for companies with strong financial performance and prudent capital management strategies.
The financial results of Janus Henderson Group plc highlight several market trends and investor behaviors. The increase in AUM and improved net flows suggest a recovering investment climate, possibly reflecting greater investor confidence or a shift in market dynamics. The company's focus on cost management and strategic reinvestment indicates a response to industry headwinds, such as fee compression and the demand for innovative investment products.
Furthermore, the diversified AUM across equities, fixed income, multi-asset and alternatives, with varying degrees of outperformance, suggests that Janus Henderson is catering to a wide range of investor preferences and risk profiles. This diversification is particularly relevant in an uncertain geopolitical and economic environment, as it allows the company to hedge against market volatility and cater to the stability-seeking behavior of investors. The emphasis on a 'fortress balance sheet' and disciplined investment processes may resonate with stakeholders looking for resilience in their investment choices during uncertain times.
The reported financial results can be seen as a microcosm of the broader economic landscape. The 17% year-over-year growth in AUM is indicative of an economy where investors are actively seeking growth opportunities, potentially capitalizing on market corrections or expansions. The reduction in net outflows suggests an improved investor sentiment, which could be a result of macroeconomic factors such as easing monetary policies, fiscal stimulus, or stabilization in geopolitical tensions.
The strong cash generation and disciplined cost management reported by Janus Henderson may reflect broader economic trends of companies optimizing operations for efficiency in a potentially inflationary or economically uncertain environment. The company's strategic positioning and focus on growth despite industry headwinds align with the notion that firms are adapting to a rapidly changing economic landscape, with an emphasis on agility and proactive management.
-
Solid long-term investment performance, with
60% ,69% , and71% of assets under management (“AUM”) outperforming relevant benchmarks on a three-, five-, and 10-year basis, respectively, as of December 31, 2023 -
AUM increased
9% quarter over quarter and17% year over year toUS as of December 31, 2023$334.9 billion -
US of net outflows in 2023 compared to$(0.7) billion US of net outflows in 20221$(30.8) billion -
US of net outflows in fourth quarter 2023 compared to$(3.1) billion US of net outflows in fourth quarter 2022$(11.0) billion -
Fourth quarter 2023 diluted EPS of
US , or$0.74 US on an adjusted basis$0.82 -
Strong balance sheet and cash generation, with over
US in cash and cash equivalents and$1.0 billion US of cash provided from operating activities in 2023$442 million -
Board declared a quarterly dividend of
US per share; returned$0.39 US in capital through dividends and share buybacks in 2023$321 million
Fourth quarter 2023 diluted earnings per share of
Ali Dibadj, Chief Executive Officer, stated:
"The year ended strongly with fourth quarter results that delivered year-over-year improvement in net flows, a stable management fee rate, solid core revenues, continued cost management, growth in operating income and EPS, and an AUM tailwind entering 2024.
"The tremendous amount of work that began in 2022 to reposition Janus Henderson for greater success is paying off, as evidenced in our 2023 results. During 2023, we executed on our strategy, implemented cost efficiencies to facilitate strategic reinvestment in the business, simplified our operating model, and reinforced our culture through articulating our Mission, Values, and Purpose—all while keeping our clients, and their clients, at the heart of everything we do.
"The current environment remains uncertain, geopolitical tensions are heightened, and we continue to face industry headwinds. Throughout, our focus remains the same—we will control what we can control and position Janus Henderson for growth. We have a fortress balance sheet, strong cash generation, disciplined investment teams and processes, and efficient cost management.
"As we enter 2024, and mark Janus Henderson’s 90th anniversary of providing a world-class investment experience, we are encouraged by many signs of clear progress, which we believe has us squarely on the path to achieving our ambitions of organic growth and delivering superior outcomes for our clients, their clients, colleagues, shareholders, and other stakeholders.”
1 |
Net flows exclude Intech, the sale of which was completed March 31, 2022. |
SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ millions, except per share data or as noted)
The Company presents its financial results in US$ and in accordance with accounting principles generally accepted in
|
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Three months ended |
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Year ended |
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31 Dec |
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30 Sep |
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31 Dec |
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31 Dec |
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31 Dec |
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2023 |
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2023 |
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2022 |
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2023 |
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2022 |
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GAAP basis: |
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|
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Revenue |
|
|
568.5 |
|
|
|
521.0 |
|
|
|
515.2 |
|
|
|
2,101.8 |
|
|
|
2,203.6 |
|
Operating expenses |
|
|
424.8 |
|
|
|
399.3 |
|
|
|
447.4 |
|
|
|
1,618.1 |
|
|
|
1,713.8 |
|
Operating income |
|
|
143.7 |
|
|
|
121.7 |
|
|
|
67.8 |
|
|
|
483.7 |
|
|
|
489.8 |
|
Operating margin |
|
|
25.3 |
% |
|
|
23.4 |
% |
|
|
13.2 |
% |
|
|
23.0 |
% |
|
|
22.2 |
% |
Net income attributable to JHG |
|
|
121.3 |
|
|
|
93.5 |
|
|
|
65.0 |
|
|
|
392.0 |
|
|
|
372.4 |
|
Diluted earnings per share |
|
|
0.74 |
|
|
|
0.56 |
|
|
|
0.39 |
|
|
|
2.37 |
|
|
|
2.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Adjusted basis: |
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|
|
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|
|
|
|
|
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|
|
|
|
Revenue |
|
|
455.2 |
|
|
|
405.0 |
|
|
|
405.2 |
|
|
|
1,645.9 |
|
|
|
1,705.3 |
|
Operating expenses |
|
|
299.0 |
|
|
|
279.6 |
|
|
|
282.0 |
|
|
|
1,137.2 |
|
|
|
1,128.6 |
|
Operating income |
|
|
156.2 |
|
|
|
125.4 |
|
|
|
123.2 |
|
|
|
508.7 |
|
|
|
576.7 |
|
Operating margin |
|
|
34.3 |
% |
|
|
31.0 |
% |
|
|
30.4 |
% |
|
|
30.9 |
% |
|
|
33.8 |
% |
Net income attributable to JHG |
|
|
135.2 |
|
|
|
106.7 |
|
|
|
102.0 |
|
|
|
435.2 |
|
|
|
433.8 |
|
Diluted earnings per share |
|
|
0.82 |
|
|
|
0.64 |
|
|
|
0.61 |
|
|
|
2.63 |
|
|
|
2.60 |
|
DIVIDEND AND SHARE REPURCHASE
On January 31, 2024, the Board declared a fourth quarter dividend in respect of the three months ended December 31, 2023, of
As part of the
AUM AND FLOWS (in US$ billions)
FX reflects movement in AUM resulting from changes in foreign currency rates as non-US$ denominated AUM is translated into US$. Redemptions include impact of client switches.
Total comparative AUM and flows
|
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Three months ended |
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Year ended |
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31 Dec |
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30 Sep |
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31 Dec |
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31 Dec |
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|
31 Dec |
|
|||||
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Opening AUM |
|
|
308.3 |
|
|
|
322.1 |
|
|
|
274.6 |
|
|
|
287.3 |
|
|
|
432.3 |
|
Sales |
|
|
14.4 |
|
|
|
11.8 |
|
|
|
14.8 |
|
|
60.9 |
|
|
60.5 |
|
||
Redemptions |
|
|
(17.5 |
) |
|
|
(14.4 |
) |
|
|
(25.8 |
) |
|
(61.6 |
) |
|
(97.0 |
) |
||
Net sales / (redemptions) |
|
|
(3.1 |
) |
|
|
(2.6 |
) |
|
|
(11.0 |
) |
|
(0.7 |
) |
|
(36.5 |
) |
||
Market / FX |
|
|
29.7 |
|
|
|
(11.2 |
) |
|
|
23.7 |
|
|
48.3 |
|
|
(80.2 |
) |
||
Disposals1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
(28.3 |
) |
||
Closing AUM |
|
|
334.9 |
|
|
|
308.3 |
|
|
|
287.3 |
|
|
334.9 |
|
|
287.3 |
|
||
1 |
Disposals relate to the sale of Intech. |
Quarterly AUM and flows by capability
|
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Fixed |
|
|
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Equities |
|
|
Income |
|
|
Multi-Asset |
|
|
Alternatives |
|
|
Total |
|
|||||
AUM 31 Dec 2022 |
|
|
171.3 |
|
|
|
59.8 |
|
|
|
45.5 |
|
|
|
10.7 |
|
|
|
287.3 |
|
Sales |
|
|
10.7 |
|
|
|
7.3 |
|
|
|
1.0 |
|
|
|
0.5 |
|
|
|
19.5 |
|
Redemptions |
|
|
(7.4 |
) |
|
|
(3.7 |
) |
|
|
(1.8 |
) |
|
|
(1.1 |
) |
|
|
(14.0 |
) |
Net sales / (redemptions) |
|
|
3.3 |
|
|
|
3.6 |
|
|
|
(0.8 |
) |
|
|
(0.6 |
) |
|
|
5.5 |
|
Market / FX |
|
|
13.9 |
|
|
|
1.6 |
|
|
|
2.1 |
|
|
|
0.1 |
|
|
|
17.7 |
|
AUM 31 Mar 2023 |
|
|
188.5 |
|
|
|
65.0 |
|
|
|
46.8 |
|
|
|
10.2 |
|
|
|
310.5 |
|
Sales |
|
|
8.6 |
|
|
|
5.1 |
|
|
|
1.1 |
|
|
|
0.4 |
|
|
|
15.2 |
|
Redemptions |
|
|
(8.6 |
) |
|
|
(4.1 |
) |
|
|
(1.8 |
) |
|
|
(1.2 |
) |
|
|
(15.7 |
) |
Net sales / (redemptions) |
|
|
— |
|
|
|
1.0 |
|
|
|
(0.7 |
) |
|
|
(0.8 |
) |
|
|
(0.5 |
) |
Market / FX |
|
|
10.6 |
|
|
|
(0.1 |
) |
|
|
1.6 |
|
|
|
— |
|
|
|
12.1 |
|
Reclassifications |
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
AUM 30 Jun 2023 |
|
|
199.5 |
|
|
|
65.9 |
|
|
|
47.7 |
|
|
|
9.0 |
|
|
|
322.1 |
|
Sales |
|
|
5.7 |
|
|
|
4.8 |
|
|
|
1.0 |
|
|
|
0.3 |
|
|
|
11.8 |
|
Redemptions |
|
|
(8.0 |
) |
|
|
(3.9 |
) |
|
|
(1.7 |
) |
|
|
(0.8 |
) |
|
|
(14.4 |
) |
Net sales / (redemptions) |
|
|
(2.3 |
) |
|
|
0.9 |
|
|
|
(0.7 |
) |
|
|
(0.5 |
) |
|
|
(2.6 |
) |
Market / FX |
|
|
(8.0 |
) |
|
|
(1.7 |
) |
|
|
(1.7 |
) |
|
|
0.2 |
|
|
|
(11.2 |
) |
Reclassifications |
|
|
(1.3 |
) |
|
|
— |
|
|
|
0.6 |
|
|
|
0.7 |
|
|
|
— |
|
AUM 30 Sep 2023 |
|
|
187.9 |
|
|
|
65.1 |
|
|
|
45.9 |
|
|
|
9.4 |
|
|
|
308.3 |
|
Sales |
|
|
6.0 |
|
|
|
6.9 |
|
|
|
1.0 |
|
|
|
0.5 |
|
|
|
14.4 |
|
Redemptions |
|
|
(9.2 |
) |
|
|
(5.2 |
) |
|
|
(2.4 |
) |
|
|
(0.7 |
) |
|
|
(17.5 |
) |
Net sales / (redemptions) |
|
|
(3.2 |
) |
|
|
1.7 |
|
|
|
(1.4 |
) |
|
|
(0.2 |
) |
|
|
(3.1 |
) |
Market / FX |
|
|
20.4 |
|
|
|
4.7 |
|
|
|
4.4 |
|
|
|
0.2 |
|
|
|
29.7 |
|
AUM 31 Dec 2023 |
|
|
205.1 |
|
|
|
71.5 |
|
|
|
48.9 |
|
|
|
9.4 |
|
|
|
334.9 |
|
Average AUM by capability
|
|
Three months ended |
|
|
Year ended |
|
||||||||||||||
|
|
31 Dec |
|
|
30 Sep |
|
|
31 Dec |
|
|
31 Dec |
|
|
31 Dec |
|
|||||
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Equities |
|
|
191.9 |
|
|
|
196.9 |
|
|
|
171.3 |
|
|
|
191.6 |
|
|
|
193.2 |
|
Fixed Income |
|
66.8 |
|
|
66.1 |
|
|
59.0 |
|
|
65.5 |
|
|
|
67.2 |
|
||||
Multi-Asset |
|
46.9 |
|
|
47.7 |
|
|
45.5 |
|
|
47.1 |
|
|
|
49.2 |
|
||||
Quantitative Equities |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
7.7 |
|
||||
Alternatives |
|
9.3 |
|
|
9.4 |
|
|
10.7 |
|
|
9.6 |
|
|
|
11.5 |
|
||||
Total |
|
314.9 |
|
|
320.1 |
|
|
286.5 |
|
|
313.8 |
|
|
|
328.8 |
|
||||
INVESTMENT PERFORMANCE
% of AUM outperforming benchmark (as of December 31, 2023)
Capability |
|
1-year |
|
|
3-year |
|
|
5-year |
|
|
10-year |
|
||||
Equities |
|
|
42 |
% |
|
|
48 |
% |
|
|
57 |
% |
|
|
60 |
% |
Fixed Income |
|
|
79 |
% |
|
|
66 |
% |
|
|
88 |
% |
|
|
91 |
% |
Multi-Asset |
|
|
8 |
% |
|
|
96 |
% |
|
|
97 |
% |
|
|
97 |
% |
Alternatives |
|
|
57 |
% |
|
|
97 |
% |
|
|
100 |
% |
|
|
100 |
% |
Total |
|
|
44 |
% |
|
|
60 |
% |
|
|
69 |
% |
|
|
71 |
% |
Outperformance is measured based on composite performance gross of fees versus primary benchmark, except where a strategy has no benchmark index or corresponding composite in which case the most relevant metric is used: (1) composite gross of fees versus zero for absolute return strategies, (2) fund net of fees versus primary index, or (3) fund net of fees versus Morningstar peer group average or median. Non-discretionary and separately managed account assets are included with a corresponding composite where applicable.
Cash management vehicles, ETF-enhanced beta strategies, Managed CDOs, Private Equity funds, and custom non-discretionary accounts with no corresponding composite are excluded from the analysis. Performance across all time periods excludes Intech, the sale of which was completed March 31, 2022. Excluded assets represent
% of mutual fund AUM in top 2 Morningstar quartiles (as of December 31, 2023)
Capability |
|
1-year |
|
|
3-year |
|
|
5-year |
|
|
10-year |
|
||||
Equities |
|
|
57 |
% |
|
|
66 |
% |
|
|
80 |
% |
|
|
91 |
% |
Fixed Income |
|
|
42 |
% |
|
|
33 |
% |
|
|
59 |
% |
|
|
64 |
% |
Multi-Asset |
|
|
97 |
% |
|
|
96 |
% |
|
|
95 |
% |
|
|
95 |
% |
Alternatives |
|
|
33 |
% |
|
|
85 |
% |
|
|
14 |
% |
|
|
100 |
% |
Total |
|
|
63 |
% |
|
|
68 |
% |
|
|
80 |
% |
|
|
89 |
% |
Includes Janus Investment Fund, Janus Aspen Series and Clayton Street Trust (
Analysis based on “primary” share class (Class I Shares, Institutional Shares, or share class with longest history for
ETFs and funds not ranked by Morningstar are excluded from the analysis. Capabilities defined by Janus Henderson. © 2023 Morningstar, Inc. All Rights Reserved.
FOURTH QUARTER AND FULL-YEAR 2023 RESULTS BRIEFING INFORMATION
Chief Executive Officer Ali Dibadj and Chief Financial Officer Roger Thompson will present these results on February 1, 2024, on a conference call and webcast to be held at 9:00 a.m. ET.
Those wishing to participate should call:
|
833 470 1428 |
|||
|
0808 189 6484 |
|||
All other countries |
+1 929 526 1599 |
|||
Conference ID |
235741 |
Access to the webcast and accompanying slides will be available via the investor relations section of Janus Henderson’s website (ir.janushenderson.com).
About Janus Henderson
Janus Henderson Group is a leading global active asset manager dedicated to helping clients define and achieve superior financial outcomes through differentiated insights, disciplined investments, and world-class service. As of December 31, 2023, Janus Henderson had approximately
FINANCIAL DISCLOSURES
Condensed consolidated statements of comprehensive income (unaudited)
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Three months ended |
|
|
Year ended |
|
||||||||||||||
|
|
31 Dec |
|
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30 Sep |
|
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31 Dec |
|
|
31 Dec |
|
|
31 Dec |
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|||||
(in US$ millions, except per share data or as noted) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees |
|
|
427.1 |
|
|
|
434.9 |
|
|
|
405.6 |
|
|
|
1,700.1 |
|
|
|
1,799.4 |
|
Performance fees |
|
|
41.7 |
|
|
|
(15.8 |
) |
|
|
14.3 |
|
|
|
5.1 |
|
|
|
(10.7 |
) |
Shareowner servicing fees |
|
|
53.6 |
|
|
|
54.9 |
|
|
|
51.3 |
|
|
|
213.3 |
|
|
|
224.0 |
|
Other revenue |
|
|
46.1 |
|
|
|
47.0 |
|
|
|
44.0 |
|
|
|
183.3 |
|
|
|
190.9 |
|
Total revenue |
|
|
568.5 |
|
|
|
521.0 |
|
|
|
515.2 |
|
|
|
2,101.8 |
|
|
|
2,203.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
156.1 |
|
|
|
149.2 |
|
|
|
159.4 |
|
|
|
593.3 |
|
|
|
611.5 |
|
Long-term incentive plans |
|
|
41.7 |
|
|
|
32.6 |
|
|
|
47.5 |
|
|
|
167.4 |
|
|
|
180.7 |
|
Distribution expenses |
|
|
113.3 |
|
|
|
116.0 |
|
|
|
110.0 |
|
|
|
455.9 |
|
|
|
498.3 |
|
Investment administration |
|
|
12.3 |
|
|
|
12.4 |
|
|
|
11.8 |
|
|
|
47.4 |
|
|
|
49.4 |
|
Marketing |
|
|
8.9 |
|
|
|
9.6 |
|
|
|
6.3 |
|
|
|
36.6 |
|
|
|
27.1 |
|
General, administrative and occupancy |
|
|
87.6 |
|
|
|
73.7 |
|
|
|
69.2 |
|
|
|
294.6 |
|
|
|
279.3 |
|
Impairment of goodwill and intangible assets |
|
|
— |
|
|
|
— |
|
|
|
35.8 |
|
|
|
— |
|
|
|
35.8 |
|
Depreciation and amortization |
|
|
4.9 |
|
|
|
5.8 |
|
|
|
7.4 |
|
|
|
22.9 |
|
|
|
31.7 |
|
Total operating expenses |
|
|
424.8 |
|
|
|
399.3 |
|
|
|
447.4 |
|
|
|
1,618.1 |
|
|
|
1,713.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
143.7 |
|
|
|
121.7 |
|
|
|
67.8 |
|
|
|
483.7 |
|
|
|
489.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(3.2 |
) |
|
|
(3.2 |
) |
|
|
(3.1 |
) |
|
|
(12.7 |
) |
|
|
(12.6 |
) |
Investment gains (losses), net |
|
|
24.8 |
|
|
|
(5.9 |
) |
|
|
17.3 |
|
|
|
43.4 |
|
|
|
(113.3 |
) |
Other non-operating income (expense), net |
|
|
11.9 |
|
|
|
(13.4 |
) |
|
|
4.8 |
|
|
|
12.6 |
|
|
|
11.5 |
|
Income before taxes |
|
|
177.2 |
|
|
|
99.2 |
|
|
|
86.8 |
|
|
|
527.0 |
|
|
|
375.4 |
|
Income tax provision |
|
|
(32.9 |
) |
|
|
(13.2 |
) |
|
|
(5.6 |
) |
|
|
(100.3 |
) |
|
|
(100.9 |
) |
Net income |
|
|
144.3 |
|
|
|
86.0 |
|
|
|
81.2 |
|
|
|
426.7 |
|
|
|
274.5 |
|
Net loss (income) attributable to noncontrolling interests |
|
|
(23.0 |
) |
|
|
7.5 |
|
|
|
(16.2 |
) |
|
|
(34.7 |
) |
|
|
97.9 |
|
Net income attributable to JHG |
|
|
121.3 |
|
|
|
93.5 |
|
|
|
65.0 |
|
|
|
392.0 |
|
|
|
372.4 |
|
Less: allocation of earnings to participating stock-based awards |
|
|
(3.5 |
) |
|
|
(2.8 |
) |
|
|
(2.1 |
) |
|
|
(11.2 |
) |
|
|
(11.3 |
) |
Net income attributable to JHG common shareholders |
|
|
117.8 |
|
|
|
90.7 |
|
|
|
62.9 |
|
|
|
380.8 |
|
|
|
361.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding (in millions) |
|
|
160.1 |
|
|
|
160.8 |
|
|
|
160.1 |
|
|
|
160.4 |
|
|
|
161.7 |
|
Diluted weighted-average shares outstanding (in millions) |
|
|
160.2 |
|
|
|
160.9 |
|
|
|
160.4 |
|
|
|
160.5 |
|
|
|
162.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (in US$) |
|
|
0.74 |
|
|
|
0.56 |
|
|
|
0.39 |
|
|
|
2.37 |
|
|
|
2.23 |
|
Reconciliation of non-GAAP financial information
In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components, as defined by the SEC. These measures are not in accordance with, or a substitute for, GAAP, and our financial measures may be different from non-GAAP financial measures used by other companies. We have provided a reconciliation of our non-GAAP components to the most directly comparable GAAP components. The following are reconciliations of GAAP revenue, operating expenses, operating income, net income attributable to JHG, and diluted earnings per share to adjusted revenue, adjusted operating expenses, adjusted operating income, adjusted net income attributable to JHG, and adjusted diluted earnings per share.
|
|
Three months ended |
|
|
Year ended |
|
||||||||||||||
|
|
31 Dec |
|
|
30 Sep |
|
|
31 Dec |
|
|
31 Dec |
|
|
31 Dec |
|
|||||
(in US$ millions, except per share data or as noted) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Reconciliation of revenue to adjusted revenue |
||||||||||||||||||||
Revenue |
|
|
568.5 |
|
|
|
521.0 |
|
|
|
515.2 |
|
|
|
2,101.8 |
|
|
|
2,203.6 |
|
Management fees1 |
|
|
(40.8 |
) |
|
|
(41.4 |
) |
|
|
(39.3 |
) |
|
|
(164.8 |
) |
|
|
(193.2 |
) |
Shareowner servicing fees1 |
|
|
(42.9 |
) |
|
|
(43.9 |
) |
|
|
(42.4 |
) |
|
|
(172.4 |
) |
|
|
(185.2 |
) |
Other revenue1 |
|
|
(29.6 |
) |
|
|
(30.7 |
) |
|
|
(28.3 |
) |
|
|
(118.7 |
) |
|
|
(119.9 |
) |
Adjusted revenue |
|
|
455.2 |
|
|
|
405.0 |
|
|
|
405.2 |
|
|
|
1,645.9 |
|
|
|
1,705.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating expenses to adjusted operating expenses |
||||||||||||||||||||
Operating expenses |
|
|
424.8 |
|
|
|
399.3 |
|
|
|
447.4 |
|
|
|
1,618.1 |
|
|
|
1,713.8 |
|
Employee compensation and benefits2 |
|
|
(2.2 |
) |
|
|
(0.9 |
) |
|
|
(16.8 |
) |
|
|
(5.8 |
) |
|
|
(16.8 |
) |
Long-term incentive plans2 |
|
|
(0.5 |
) |
|
|
2.4 |
|
|
|
(2.1 |
) |
|
|
(1.2 |
) |
|
|
(21.1 |
) |
Distribution expenses1 |
|
|
(113.3 |
) |
|
|
(116.0 |
) |
|
|
(110.0 |
) |
|
|
(455.9 |
) |
|
|
(498.3 |
) |
General, administration and occupancy2 |
|
|
(9.6 |
) |
|
|
(4.7 |
) |
|
|
(0.2 |
) |
|
|
(16.3 |
) |
|
|
(9.5 |
) |
Impairment of goodwill and intangible assets3 |
|
|
— |
|
|
|
— |
|
|
|
(35.8 |
) |
|
|
— |
|
|
|
(35.8 |
) |
Depreciation and amortization3 |
|
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(1.7 |
) |
|
|
(3.7 |
) |
Adjusted operating expenses |
|
|
299.0 |
|
|
|
279.6 |
|
|
|
282.0 |
|
|
|
1,137.2 |
|
|
|
1,128.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
|
|
156.2 |
|
|
|
125.4 |
|
|
|
123.2 |
|
|
|
508.7 |
|
|
|
576.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
25.3 |
% |
|
|
23.4 |
% |
|
|
13.2 |
% |
|
|
23.0 |
% |
|
|
22.2 |
% |
Adjusted operating margin |
|
|
34.3 |
% |
|
|
31.0 |
% |
|
|
30.4 |
% |
|
|
30.9 |
% |
|
|
33.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income attributable to JHG to adjusted net income attributable to JHG |
||||||||||||||||||||
Net income attributable to JHG |
|
|
121.3 |
|
|
|
93.5 |
|
|
|
65.0 |
|
|
|
392.0 |
|
|
|
372.4 |
|
Employee compensation and benefits2 |
|
|
2.2 |
|
|
|
0.9 |
|
|
|
16.8 |
|
|
|
5.8 |
|
|
|
16.8 |
|
Long-term incentive plans2 |
|
|
0.5 |
|
|
|
(2.4 |
) |
|
|
2.1 |
|
|
|
1.2 |
|
|
|
21.1 |
|
General, administration and occupancy2 |
|
|
9.6 |
|
|
|
4.7 |
|
|
|
0.2 |
|
|
|
16.3 |
|
|
|
9.5 |
|
Impairment of goodwill and intangible assets3 |
|
|
— |
|
|
|
— |
|
|
|
35.8 |
|
|
|
— |
|
|
|
35.8 |
|
Depreciation and amortization3 |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.5 |
|
|
|
1.7 |
|
|
|
3.7 |
|
Investment gains (losses), net4 |
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
0.4 |
|
|
|
12.5 |
|
|
|
0.4 |
|
Other non-operating income, net4 |
|
|
3.0 |
|
|
|
25.6 |
|
|
|
0.1 |
|
|
|
28.6 |
|
|
|
0.3 |
|
Income tax provision5 |
|
|
(1.8 |
) |
|
|
(15.9 |
) |
|
|
(18.9 |
) |
|
|
(22.9 |
) |
|
|
(26.2 |
) |
Adjusted net income attributable to JHG |
|
|
135.2 |
|
|
|
106.7 |
|
|
|
102.0 |
|
|
|
435.2 |
|
|
|
433.8 |
|
Less: allocation of earnings to participating stock-based awards |
|
|
(3.9 |
) |
|
|
(3.2 |
) |
|
|
(3.4 |
) |
|
|
(12.4 |
) |
|
|
(13.1 |
) |
Adjusted net income attributable to JHG common shareholders |
|
|
131.3 |
|
|
|
103.5 |
|
|
|
98.6 |
|
|
|
422.8 |
|
|
|
420.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted common shares outstanding – diluted (in millions) |
|
|
160.2 |
|
|
|
160.9 |
|
|
|
160.4 |
|
|
|
160.5 |
|
|
|
162.0 |
|
Diluted earnings per share (in US$) |
|
|
0.74 |
|
|
|
0.56 |
|
|
|
0.39 |
|
|
|
2.37 |
|
|
|
2.23 |
|
Adjusted diluted earnings per share (in US$) |
|
|
0.82 |
|
|
|
0.64 |
|
|
|
0.61 |
|
|
|
2.63 |
|
|
|
2.60 |
|
1 |
JHG contracts with third-party intermediaries to distribute and service certain of its investment products. Fees for distribution and servicing related activities are either provided for separately in an investment product’s prospectus or are part of the management fee. Under both arrangements, the fees are collected by JHG and passed through to third-party intermediaries who are responsible for performing the applicable services. The majority of distribution and servicing fees collected by JHG are passed through to third-party intermediaries. JHG management believes that the deduction of distribution and servicing fees from revenue in the computation of adjusted revenue reflects the pass-through nature of these revenues. In certain arrangements, JHG performs the distribution and servicing activities and retains the applicable fees. Revenues for distribution and servicing activities performed by JHG are not deducted from GAAP revenue. |
2 |
Adjustments include rent expense, rent income, other rent-related adjustments associated with subleased office space, and the acceleration of long-term incentive plan expense related to the departure of certain employees. Adjustments for the three months and year ended December 31, 2023, also include a |
3 |
Investment management contracts have been identified as a separately identifiable intangible asset arising on the acquisition of subsidiaries and businesses. Such contracts are recognized at the net present value of the expected future cash flows arising from the contracts at the date of acquisition. For segregated mandate contracts, the intangible asset is amortized on a straight-line basis over the expected life of the contracts. Adjustments for the three months and year ended December 31, 2022, also include impairment charges of certain mutual fund investment management contracts, client relationships and trademarks. JHG management believes these non-cash and acquisition-related costs are not representative of our ongoing operations. |
4 |
Adjustments for the year ended December 31, 2023, include a provision for a credit loss and a contingent consideration fair value adjustment related to the 2022 sale of Intech, a correction due to an error of previously recognized earnings associated with an equity method investment and accumulated foreign currency translation expense related to JHG liquidated entities. Adjustments for the three months ended December 31, 2023, primarily consist of accumulated foreign currency translation expense related to JHG liquidated entities. The adjustment for the three months ended September 30, 2023, consists of a provision for a credit loss and a contingent consideration fair value adjustment related to the 2022 sale of Intech. JHG management believes these costs are not representative of our ongoing operations. |
5 |
The tax impact of the adjustments is calculated based on the applicable |
Condensed consolidated balance sheets (unaudited) |
||||||||
|
|
31 Dec |
|
|
31 Dec |
|
||
(in US$ millions) |
|
2023 |
|
|
2022 |
|
||
Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
1,152.4 |
|
|
|
1,162.3 |
|
Investment securities |
|
|
334.2 |
|
|
|
261.6 |
|
Property, equipment and software, net |
|
|
44.2 |
|
|
|
51.8 |
|
Intangible assets and goodwill, net |
|
|
3,721.6 |
|
|
|
3,667.8 |
|
Assets of consolidated variable interest entities |
|
|
405.9 |
|
|
|
352.0 |
|
Other assets |
|
|
838.3 |
|
|
|
742.3 |
|
Total assets |
|
|
6,496.6 |
|
|
|
6,237.8 |
|
|
|
|
|
|
|
|
|
|
Liabilities, redeemable noncontrolling interests and equity: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
304.6 |
|
|
|
307.5 |
|
Deferred tax liabilities, net |
|
|
570.8 |
|
|
|
574.6 |
|
Liabilities of consolidated variable interest entities |
|
|
3.2 |
|
|
|
4.3 |
|
Other liabilities |
|
|
762.5 |
|
|
|
754.9 |
|
Redeemable noncontrolling interests |
|
|
317.2 |
|
|
|
233.9 |
|
Total equity |
|
|
4,538.3 |
|
|
|
4,362.6 |
|
Total liabilities, redeemable noncontrolling interests and equity |
|
|
6,496.6 |
|
|
|
6,237.8 |
|
Condensed consolidated statements of cash flows (unaudited) |
||||||||||||||||||||
|
|
Three months ended |
|
Year ended |
||||||||||||||||
|
|
31 Dec |
|
30 Sep |
|
31 Dec |
|
31 Dec |
|
31 Dec |
||||||||||
(in US$ millions) |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
Cash provided by (used for): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating activities |
|
|
161.5 |
|
|
|
216.9 |
|
|
|
146.0 |
|
|
|
441.6 |
|
|
|
473.3 |
|
Investing activities |
|
|
(86.8 |
) |
|
|
16.0 |
|
|
|
(52.5 |
) |
|
|
(328.9 |
) |
|
|
58.5 |
|
Financing activities |
|
|
(76.1 |
) |
|
|
(91.5 |
) |
|
|
(3.9 |
) |
|
|
(151.9 |
) |
|
|
(419.1 |
) |
Effect of exchange rate changes |
|
|
29.2 |
|
|
|
(25.5 |
) |
|
|
51.1 |
|
|
|
30.9 |
|
|
|
(54.9 |
) |
Net change during period |
|
|
27.8 |
|
|
|
115.9 |
|
|
|
140.7 |
|
|
|
(8.3 |
) |
|
|
57.8 |
|
Basis of preparation
In the opinion of management of Janus Henderson Group plc, the condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly present the financial position, results of operations, and cash flows of JHG in accordance with GAAP. Such financial statements have been prepared in accordance with the instructions to Form 10‑Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The financial statements should be read in conjunction with the annual consolidated financial statements and notes presented in Janus Henderson’s Annual Report on Form 10‑K for the year ended December 31, 2022, filed with the SEC (Commission File No. 001‑38103). Events subsequent to the balance sheet date have been evaluated for inclusion in the financial statements through the issuance date and are included in the notes to the condensed consolidated financial statements.
FORWARD-LOOKING STATEMENTS DISCLAIMER
Past performance is no guarantee of future results. Investing involves risk, including the possible loss of principal and fluctuation of value.
This document includes statements concerning potential future events involving Janus Henderson Group plc that could differ materially from the events that actually occur. The differences could be caused by a number of factors, including, but not limited to, increasing interest rates and inflation, volatility, or disruption in financial markets, our investment performance as compared to third-party benchmarks or competitive products, redemptions and other withdrawals from the funds and accounts we manage, and other factors identified in JHG’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2022, and in other filings or furnishings made by the Company with the Securities and Exchange Commission from time to time (Commission File No. 001‑38103), including those that appear under headings such as “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Many of these factors are beyond the control of JHG and its management. Any forward-looking statements contained in this document are as of the date on which such statements were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise, except as required by law.
Annualized, pro forma, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.
The information, statements, and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.
Not all products or services are available in all jurisdictions.
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries.
© Janus Henderson Group plc.
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Investor enquiries:
Jim Kurtz
Head of Investor Relations
+1 303 336 4529
jim.kurtz@janushenderson.com
Or
Investor Relations
investor.relations@janushenderson.com
Media enquiries:
Nicole Mullin
Director of Media Relations
+44 (0)20 7818 2511
nicole.mullin@janushenderson.com
Candice Sun
Head of Corporate Communications,
+1 303 336 5452
candice.sun@janushenderson.com
Source: Janus Henderson Group plc
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