Victory Capital Reports Record Fourth-Quarter and Full-Year Earnings Per Share
Victory Capital (NASDAQ: VCTR) reported record fourth-quarter and full-year 2024 results, with total client assets reaching $176.1 billion. The company achieved its highest-ever adjusted earnings per diluted share ($1.45), adjusted EBITDA ($125.5 million), and adjusted EBITDA margin (54.0%) for both Q4 and full-year periods.
Key Q4 metrics include long-term gross flows of $6.6 billion, net outflows of $1.7 billion, and a GAAP operating margin of 48.1%. The Board authorized a 7% increase in quarterly cash dividend to $0.47 per share and approved a new $200 million share repurchase program.
The company is progressing with its strategic relationship with Amundi Asset Management, including the acquisition of its U.S. business (former Pioneer Investments), expected to close by Q1 2025 with anticipated expense synergies of $100 million. Investment performance remained strong, with 73% and 79% of AUM outperforming benchmarks over 5 and 10-year periods respectively.
Victory Capital (NASDAQ: VCTR) ha riportato risultati record per il quarto trimestre e l'intero anno 2024, con il totale delle attività dei clienti che ha raggiunto i 176,1 miliardi di dollari. L'azienda ha raggiunto il suo massimo storico in termini di utili per azione rettificati (1,45 dollari), EBITDA rettificato (125,5 milioni di dollari) e margine EBITDA rettificato (54,0%) sia per il quarto trimestre che per l'intero anno.
I principali indicatori del quarto trimestre includono flussi lordi a lungo termine di 6,6 miliardi di dollari, deflussi netti di 1,7 miliardi di dollari e un margine operativo GAAP del 48,1%. Il Consiglio ha autorizzato un aumento del 7% del dividendo in contante trimestrale a 0,47 dollari per azione ed ha approvato un nuovo programma di riacquisto di azioni da 200 milioni di dollari.
L'azienda sta progredendo nella sua relazione strategica con Amundi Asset Management, inclusa l'acquisizione della sua attività statunitense (ex Pioneer Investments), che si prevede si concluderà entro il primo trimestre del 2025 con sinergie di costo anticipate di 100 milioni di dollari. Le performance di investimento sono rimaste solide, con il 73% e il 79% degli AUM che hanno superato i benchmark su periodi di 5 e 10 anni, rispettivamente.
Victory Capital (NASDAQ: VCTR) reportó resultados récord para el cuarto trimestre y el año completo 2024, con activos totales de clientes alcanzando los 176.1 mil millones de dólares. La empresa logró sus más altos resultados en ganancias ajustadas por acción diluida (1.45 dólares), EBITDA ajustado (125.5 millones de dólares) y margen EBITDA ajustado (54.0%) tanto para el cuarto trimestre como para el año completo.
Los métricas clave del cuarto trimestre incluyen flujos brutos a largo plazo de 6.6 mil millones de dólares, salidas netas de 1.7 mil millones de dólares y un margen operativo GAAP del 48.1%. La Junta autorizó un aumento del 7% en el dividendo en efectivo trimestral a 0.47 dólares por acción y aprobó un nuevo programa de recompra de acciones por 200 millones de dólares.
La empresa está avanzando en su relación estratégica con Amundi Asset Management, incluyendo la adquisición de su negocio en EE. UU. (anterior Pioneer Investments), que se espera cerrar para el primer trimestre de 2025 con sinergias de costos anticipadas de 100 millones de dólares. El rendimiento de las inversiones se mantuvo fuerte, con el 73% y el 79% de los AUM superando puntos de referencia en períodos de 5 y 10 años, respectivamente.
Victory Capital (NASDAQ: VCTR)는 2024년 4분기 및 전체 연도에 대한 기록적인 결과를 발표했습니다. 고객 자산 총액이 1,761억 달러에 도달했습니다. 이 회사는 분기 및 전체 연도 모두에 대해 조정된 희석 주당순이익 (1.45달러), 조정 EBITDA (1억 2,550만 달러) 및 조정 EBITDA 마진 (54.0%)의 최고치를 기록했습니다.
4분기 주요 지표로는 66억 달러의 장기 총 유입, 17억 달러의 순 유출, GAAP 운영 마진 48.1%이 포함됩니다. 이사회는 분기 현금 배당금을 주당 0.47달러로 7% 인상하기로 승인하고, 2억 달러 규모의 새로운 자사주 매입 프로그램을 승인했습니다.
회사는 아문디 자산 관리와의 전략적 관계를 발전시키고 있으며, 미국 사업(구 파이오니어 인베스트먼츠)의 인수도 포함되어 있으며, 2025년 1분기까지 마감될 것으로 예상되며, 1억 달러의 비용 시너지를 기대하고 있습니다. 투자 성과는 여전히 강력했으며, 73% 및 79%의 운용 자산(AUM)이 각각 5년 및 10년 기간 동안 벤치마크를 초과했습니다.
Victory Capital (NASDAQ: VCTR) a annoncé des résultats record pour le quatrième trimestre et l'année complète 2024, avec des actifs totaux des clients atteignant 176,1 milliards de dollars. L'entreprise a réalisé des bénéfices ajustés par action diluée (1,45 dollar), un EBITDA ajusté (125,5 millions de dollars) et une marge EBITDA ajustée (54,0%) les plus élevés de son histoire pour les périodes T4 et annuelles.
Les indicateurs clés du T4 incluent des flux bruts à long terme de 6,6 milliards de dollars, des sorties nettes de 1,7 milliard de dollars et une marge d'exploitation GAAP de 48,1%. Le Conseil a autorisé une augmentation de 7% du dividende en espèces trimestriel à 0,47 dollar par action et a approuvé un nouveau programme de rachat d'actions de 200 millions de dollars.
L'entreprise progresse dans sa relation stratégique avec Amundi Asset Management, y compris l'acquisition de son activité américaine (ancien Pioneer Investments), prévue pour clôturer au premier trimestre 2025 avec des synergies de coûts anticipées de 100 millions de dollars. La performance des investissements est restée solide, avec 73% et 79% des actifs sous gestion (AUM) surpassant les indices de référence sur des périodes de 5 et 10 ans, respectivement.
Victory Capital (NASDAQ: VCTR) hat für das vierte Quartal und das gesamte Jahr 2024 Rekordzahlen gemeldet, mit einem Gesamtvolumen an Kundenvermögen von 176,1 Milliarden US-Dollar. Das Unternehmen erzielte die höchsten je erreichten angepassten Erträge pro verwässerter Aktie (1,45 US-Dollar), angepasstes EBITDA (125,5 Millionen US-Dollar) und eine angepasste EBITDA-Marge (54,0%) sowohl für das vierte Quartal als auch für das gesamte Jahr.
Wichtige Kennzahlen für das vierte Quartal sind langfristige Bruttozuflüsse von 6,6 Milliarden US-Dollar, Nettoabflüsse von 1,7 Milliarden US-Dollar und eine GAAP-Betriebsgewinnmarge von 48,1%. Der Vorstand genehmigte eine Erhöhung der vierteljährlichen Bareinlage um 7% auf 0,47 US-Dollar pro Aktie und genehmigte ein neues Aktienrückkaufprogramm über 200 Millionen US-Dollar.
Das Unternehmen entwickelt seine strategische Beziehung zu Amundi Asset Management weiter, einschließlich der Übernahme des US-Geschäfts (ehemals Pioneer Investments), die voraussichtlich im ersten Quartal 2025 abgeschlossen sein wird, mit erwarteten Kostensynergien von 100 Millionen US-Dollar. Die Anlageperformance blieb stark, mit 73% und 79% der verwalteten Vermögen, die in den Zeiträumen von 5 und 10 Jahren die Benchmarks übertroffen haben.
- Record Q4 adjusted earnings per share of $1.45, up from $1.15 YoY
- Revenue increased 12.9% YoY to $232.4 million in Q4
- GAAP operating margin expanded 620 basis points YoY to 48.1%
- Board approved $200 million share repurchase program
- Quarterly dividend increased 7% to $0.47 per share
- 73% and 79% of AUM outperforming benchmarks over 5 and 10-year periods
- Net outflows of $1.7 billion in Q4
- Total AUM decreased by $4.2 billion QoQ to $171.9 billion
- AUM revenue realization declined to 52.5 bps from 53.6 bps YoY
Insights
Victory Capital's Q4 2024 results showcase exceptional operational execution and financial strength. The company achieved record-breaking performance across multiple metrics:
- Adjusted EBITDA margin expanded to
54.0% , reflecting robust operational efficiency and scalability - Investment performance remains strong with
73% and79% of AUM outperforming benchmarks over 5 and 10-year periods respectively 66% of mutual funds and ETFs achieved 4 or 5-star Morningstar ratings, positioning the firm favorably for future asset gathering
The strategic acquisition of Amundi's U.S. business (Pioneer Investments) represents a transformative opportunity. The projected
While net outflows of
Fourth-Quarter Highlights
-
Total Client Assets of
$176.1 billion -
Long-term gross flows of
$6.6 billion -
Long-term net flows of
( $1.7) billion -
GAAP operating margin of
48.1% -
GAAP net income per diluted share of
$1.17 -
Adjusted EBITDA margin of
54.0% -
Adjusted net income with tax benefit per diluted share of
$1.45 -
Board authorizes
7% increase in regular quarterly cash dividend to$0.47 -
New
$200 million
“2024 was a transformational year for Victory Capital,” said David Brown, Chairman and Chief Executive Officer. “During 2024, we entered into a strategic relationship with Amundi Asset Management S.A.S ("Amundi”) that will elevate our Company in several ways. Through the acquisition of its
“We remain on track to close the acquisition by the end of the first quarter of 2025, and we are reaffirming our previous guidance of
“Our business and financial performance for the fourth quarter and full year produced record results. We achieved the highest adjusted earnings per diluted share with tax benefit, adjusted EBITDA, and adjusted EBITDA margin in the history of our firm for both the quarterly and full-year periods.
“Our Investment Franchises and Solutions platform continued to deliver strong investment performance for our clients. The percentage of our AUM outperforming benchmarks over the respective 3-, 5-, and 10-year periods was
“We continued to return capital to our shareholders during the quarter. In December, the Board authorized a new
“As always, we continue to focus on serving our clients, which is our top priority.”
1 Total AUM includes both discretionary and non-discretionary client assets. |
2 The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section “Information Regarding Non-GAAP Financial Measures” at the end of this press release for an explanation of Non-GAAP financial measures and a reconciliation to the nearest GAAP financial measure. |
The table below presents AUM, and certain GAAP and non-GAAP (“adjusted”) financial results. Due to rounding, AUM values and other amounts in this press release may not add up precisely to the totals provided.
(in millions except per share amounts or as otherwise noted) |
||||||||||||||||||||
For the Three Months Ended |
|
For the Year Ended |
||||||||||||||||||
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
| Assets Under Management1 | ||||||||||||||||||||
| Ending | $ | 171,930 |
|
$ | 176,113 |
|
$ | 161,322 |
|
$ | 171,930 |
|
$ | 161,322 |
|
|||||
| Average | 175,741 |
|
171,876 |
|
151,870 |
|
169,658 |
|
153,455 |
|
||||||||||
| AUM Long-term Flows2 | ||||||||||||||||||||
| Long-term Gross | $ | 6,615 |
|
$ | 5,876 |
|
$ | 6,357 |
|
$ | 25,255 |
|
$ | 22,651 |
|
|||||
| Long-term Net | (1,729 |
) |
(2,631 |
) |
(1,334 |
) |
(7,090 |
) |
(5,584 |
) |
||||||||||
| AUM Money Market/Short-term Flows | ||||||||||||||||||||
| Money Market / Short-term Gross | $ | 178 |
|
$ | 244 |
|
$ | 188 |
|
$ | 912 |
|
$ | 853 |
|
|||||
| Money Market / Short-term Net | (140 |
) |
(5 |
) |
(47 |
) |
(287 |
) |
(391 |
) |
||||||||||
| AUM Total Flows | ||||||||||||||||||||
| Total Gross | $ | 6,793 |
|
$ | 6,120 |
|
$ | 6,545 |
|
$ | 26,167 |
|
$ | 23,504 |
|
|||||
| Total Net | (1,870 |
) |
(2,636 |
) |
(1,381 |
) |
(7,377 |
) |
(5,976 |
) |
||||||||||
| Consolidated Financial Results (GAAP) | ||||||||||||||||||||
| Revenue | $ | 232.4 |
|
$ | 225.6 |
|
$ | 205.8 |
|
$ | 893.5 |
|
$ | 821.0 |
|
|||||
| AUM revenue realization (in bps) | 52.5 |
|
52.1 |
|
53.6 |
|
52.6 |
|
53.4 |
|
||||||||||
| Operating expenses | 120.6 |
|
105.3 |
|
119.5 |
|
466.0 |
|
492.6 |
|
||||||||||
| Income from operations | 111.7 |
|
120.4 |
|
86.3 |
|
427.5 |
|
328.5 |
|
||||||||||
| Operating margin | 48.1 |
% |
53.3 |
% |
41.9 |
% |
47.8 |
% |
40.0 |
% |
||||||||||
| Net income | 76.9 |
|
82.0 |
|
55.2 |
|
288.9 |
|
213.2 |
|
||||||||||
| Earnings per diluted share | $ | 1.17 |
|
$ | 1.24 |
|
$ | 0.82 |
|
$ | 4.38 |
|
$ | 3.12 |
|
|||||
| Cash flow from operations | 91.8 |
|
99.8 |
|
97.1 |
|
340.0 |
|
330.3 |
|
||||||||||
| Adjusted Performance Results (Non-GAAP)3 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 125.5 |
|
$ | 121.3 |
|
$ | 107.6 |
|
$ | 475.6 |
|
$ | 418.0 |
|
|||||
| Adjusted EBITDA margin | 54.0 |
% |
53.7 |
% |
52.3 |
% |
53.2 |
% |
50.9 |
% |
||||||||||
| Adjusted net income | 85.0 |
|
78.9 |
|
67.4 |
|
312.9 |
|
269.7 |
|
||||||||||
| Tax benefit of goodwill and acquired intangible assets | 10.1 |
|
10.1 |
|
9.7 |
|
40.2 |
|
38.3 |
|
||||||||||
| Adjusted net income with tax benefit | 95.1 |
|
89.0 |
|
77.0 |
|
353.1 |
|
307.9 |
|
||||||||||
| Adjusted net income with tax benefit per diluted share | $ | 1.45 |
|
$ | 1.35 |
|
$ | 1.15 |
|
$ | 5.36 |
|
$ | 4.51 |
|
|||||
1 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. |
2 Long-term AUM is defined as total AUM excluding Money Market and Short-term assets. |
3 The Company reports its financial results in accordance with GAAP. Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section “Information Regarding Non-GAAP Financial Measures” at the end of this press release for an explanation of Non-GAAP financial measures and a reconciliation to the nearest GAAP financial measure. |
AUM, Flows and Investment Performance
At December 31, 2024, Victory Capital had total client assets of
As of December 31, 2024, Victory Capital offered 124 investment strategies through its 11 autonomous Investment Franchises and Solutions Platform. The table below presents outperformance against benchmarks by AUM as of December 31, 2024.
| Percentage of AUM Outperforming Benchmark | ||||||
Trailing |
|
Trailing |
|
Trailing |
|
Trailing |
1-Year |
|
3-Years |
|
5-Years |
|
10-Years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2024 Compared with Third Quarter 2024
Revenue increased
Adjusted net income with tax benefit increased
Fourth Quarter 2024 Compared with Fourth Quarter 2023
Revenue for the three months ended December 31, 2024, increased
Adjusted net income with tax benefit increased
Year Ended December 31, 2024 Compared with Year Ended December 31, 2023
Revenue for the year ended December 31, 2024, increased
Operating expenses decreased
Adjusted net income with tax benefit increased
Balance Sheet / Capital Management
The total debt outstanding as of December 31, 2024 was approximately
The Company’s Board of Directors approved a regular quarterly cash dividend of
Conference Call, Webcast and Slide Presentation
The Company will host a conference call tomorrow morning, February 7, at 8:00 a.m. ET to discuss the results. Analysts and investors may participate in the question-and-answer session. To participate in the conference call, please call 1-800-715-9871 (domestic) or 1-646-307-1963 (international), shortly before 8:00 a.m. ET and reference the Victory Capital Conference Call. A live, listen-only webcast will also be available via the investor relations section of the Company’s website at https://ir.vcm.com. Prior to the call, a supplemental slide presentation that will be used during the conference call will be available on the Events and Presentations page of the Company’s investor relations website. For anyone who is unable to join the live event, an archive of the webcast will be available for replay shortly after the call concludes.
About Victory Capital
Victory Capital is a diversified global asset management firm with total assets under management of
Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 11 autonomous Investment Franchises and a Solutions Business, Victory Capital offers a wide array of investment products and services, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, a 529 Education Savings Plan, and brokerage services.
Victory Capital is headquartered in
FORWARD-LOOKING STATEMENTS
This earnings release may contain forward-looking statements within the meaning of applicable
Although it is not possible to identify all such risks and factors, they include, among others, the following: continued geopolitical uncertainty including the conflicts in
Such forward-looking statements are based on numerous assumptions regarding Victory Capital’s present and future business strategies and the environment in which it will operate in the future. Any forward-looking statement made in this press release speaks only as of the date hereof. Except as required by law, Victory Capital assumes no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.
Victory Capital Holdings, Inc. and Subsidiaries Unaudited Consolidated Statements of Operations (in thousands except per share data and percentages) |
||||||||||||||||||||
For the Three Months Ended |
|
For the Year Ended |
||||||||||||||||||
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
| Revenue | ||||||||||||||||||||
| Investment management fees | $ | 183,826 |
|
$ | 177,809 |
|
$ | 160,677 |
|
$ | 704,583 |
|
$ | 640,876 |
|
|||||
| Fund administration and distribution fees | 48,545 |
|
47,819 |
|
45,117 |
|
188,894 |
|
180,152 |
|
||||||||||
| Total revenue | 232,371 |
|
225,628 |
|
205,794 |
|
893,477 |
|
821,028 |
|
||||||||||
| Expenses | ||||||||||||||||||||
| Personnel compensation and benefits | 58,857 |
|
43,243 |
|
53,949 |
|
217,214 |
|
220,992 |
|
||||||||||
| Distribution and other asset-based expenses | 36,924 |
|
36,828 |
|
36,438 |
|
146,489 |
|
149,596 |
|
||||||||||
| General and administrative | 14,268 |
|
14,029 |
|
16,702 |
|
56,694 |
|
56,287 |
|
||||||||||
| Depreciation and amortization | 7,514 |
|
7,510 |
|
7,984 |
|
30,176 |
|
41,647 |
|
||||||||||
| Change in value of consideration payable for acquisition of business | 294 |
|
(1,600 |
) |
4,000 |
|
2,694 |
|
23,236 |
|
||||||||||
| Acquisition-related costs | 2,135 |
|
5,075 |
|
83 |
|
11,285 |
|
217 |
|
||||||||||
| Restructuring and integration costs | 634 |
|
180 |
|
320 |
|
1,411 |
|
595 |
|
||||||||||
| Total operating expenses | 120,626 |
|
105,265 |
|
119,476 |
|
465,963 |
|
492,570 |
|
||||||||||
| Income from operations | 111,745 |
|
120,363 |
|
86,318 |
|
427,514 |
|
328,458 |
|
||||||||||
| Operating margin | 48.1 |
% |
53.3 |
% |
41.9 |
% |
47.8 |
% |
40.0 |
% |
||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest income and other income (expense) | 1,768 |
|
3,551 |
|
3,765 |
|
10,441 |
|
8,732 |
|
||||||||||
| Interest expense and other financing costs | (14,657 |
) |
(16,414 |
) |
(16,561 |
) |
(63,836 |
) |
(61,282 |
) |
||||||||||
| Loss on debt extinguishment | (263 |
) |
— |
|
— |
|
(363 |
) |
— |
|
||||||||||
| Total other expense, net | (13,152 |
) |
(12,863 |
) |
(12,796 |
) |
(53,758 |
) |
(52,550 |
) |
||||||||||
| Income before income taxes | 98,593 |
|
107,500 |
|
73,522 |
|
373,756 |
|
275,908 |
|
||||||||||
| Income tax expense | (21,654 |
) |
(25,517 |
) |
(18,316 |
) |
(84,892 |
) |
(62,751 |
) |
||||||||||
| Net income | $ | 76,939 |
|
$ | 81,983 |
|
$ | 55,206 |
|
$ | 288,864 |
|
$ | 213,157 |
|
|||||
| Earnings per share of common stock | ||||||||||||||||||||
| Basic | $ | 1.19 |
|
$ | 1.26 |
|
$ | 0.85 |
|
$ | 4.47 |
|
$ | 3.22 |
|
|||||
| Diluted | 1.17 |
|
1.24 |
|
0.82 |
|
4.38 |
|
3.12 |
|
||||||||||
| Weighted average number of shares outstanding | ||||||||||||||||||||
| Basic | 64,428 |
|
64,875 |
|
65,309 |
|
64,607 |
|
66,202 |
|
||||||||||
| Diluted | 65,519 |
|
66,057 |
|
66,935 |
|
65,928 |
|
68,214 |
|
||||||||||
| Dividends declared per share | $ | 0.44 |
|
$ | 0.41 |
|
$ | 0.32 |
|
$ | 1.555 |
|
$ | 1.28 |
|
|||||
Victory Capital Holdings, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures1 (unaudited; in thousands except per share data and percentages) |
||||||||||||||||||||
For the Three Months Ended |
|
For the Year Ended |
||||||||||||||||||
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
| Net income (GAAP) | $ | 76,939 |
|
$ | 81,983 |
|
$ | 55,206 |
|
$ | 288,864 |
|
$ | 213,157 |
|
|||||
| Income tax expense | (21,654 |
) |
(25,517 |
) |
(18,316 |
) |
(84,892 |
) |
(62,751 |
) |
||||||||||
| Income before income taxes | $ | 98,593 |
|
$ | 107,500 |
|
$ | 73,522 |
|
$ | 373,756 |
|
$ | 275,908 |
|
|||||
| Interest expense | 13,971 |
|
15,649 |
|
15,532 |
|
60,799 |
|
57,820 |
|
||||||||||
| Depreciation | 2,228 |
|
2,210 |
|
2,273 |
|
8,959 |
|
8,842 |
|
||||||||||
| Other business taxes | 376 |
|
366 |
|
305 |
|
1,525 |
|
1,707 |
|
||||||||||
| Amortization of acquisition-related intangible assets | 5,286 |
|
5,300 |
|
5,711 |
|
21,217 |
|
32,805 |
|
||||||||||
| Stock-based compensation | 1,007 |
|
972 |
|
1,503 |
|
4,246 |
|
6,496 |
|
||||||||||
| Acquisition, restructuring and exit costs | 3,063 |
|
(11,513 |
) |
5,586 |
|
1,735 |
|
28,982 |
|
||||||||||
| Debt issuance costs | 981 |
|
775 |
|
3,128 |
|
3,385 |
|
5,394 |
|
||||||||||
| Adjusted EBITDA | $ | 125,505 |
|
$ | 121,259 |
|
$ | 107,560 |
|
$ | 475,622 |
|
$ | 417,954 |
|
|||||
| Adjusted EBITDA margin | 54.0 |
% |
53.7 |
% |
52.3 |
% |
53.2 |
% |
50.9 |
% |
||||||||||
| Net income (GAAP) | $ | 76,939 |
|
$ | 81,983 |
|
$ | 55,206 |
|
$ | 288,864 |
|
$ | 213,157 |
|
|||||
| Adjustment to reflect the operating performance of the Company | ||||||||||||||||||||
| Other business taxes | 376 |
|
366 |
|
305 |
|
1,525 |
|
1,707 |
|
||||||||||
| Amortization of acquisition-related intangible assets | 5,286 |
|
5,300 |
|
5,711 |
|
21,217 |
|
32,805 |
|
||||||||||
| Stock-based compensation | 1,007 |
|
972 |
|
1,503 |
|
4,246 |
|
6,496 |
|
||||||||||
| Acquisition, restructuring and exit costs | 3,063 |
|
(11,513 |
) |
5,586 |
|
1,735 |
|
28,982 |
|
||||||||||
| Debt issuance costs | 981 |
|
775 |
|
3,128 |
|
3,385 |
|
5,394 |
|
||||||||||
| Tax effect of above adjustments | (2,679 |
) |
1,025 |
|
(4,061 |
) |
(8,028 |
) |
(18,847 |
) |
||||||||||
| Adjusted net income | $ | 84,973 |
|
$ | 78,908 |
|
$ | 67,378 |
|
$ | 312,944 |
|
$ | 269,694 |
|
|||||
| Adjusted net income per diluted share | $ | 1.30 |
|
$ | 1.19 |
|
$ | 1.01 |
|
$ | 4.75 |
|
$ | 3.95 |
|
|||||
| Tax benefit of goodwill and acquired intangible assets | $ | 10,141 |
|
$ | 10,141 |
|
$ | 9,655 |
|
$ | 40,171 |
|
$ | 38,252 |
|
|||||
| Tax benefit of goodwill and acquired intangible assets per diluted share | $ | 0.15 |
|
$ | 0.15 |
|
$ | 0.14 |
|
$ | 0.61 |
|
$ | 0.56 |
|
|||||
| Adjusted net income with tax benefit | $ | 95,114 |
|
$ | 89,049 |
|
$ | 77,033 |
|
$ | 353,115 |
|
$ | 307,946 |
|
|||||
| Adjusted net income with tax benefit per diluted share | $ | 1.45 |
|
$ | 1.35 |
|
$ | 1.15 |
|
$ | 5.36 |
|
$ | 4.51 |
|
|||||
1 The Company reports its financial results in accordance with GAAP. Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section “Information Regarding Non-GAAP Financial Measures” at the end of this press release for an explanation of Non-GAAP financial measures and a reconciliation to the nearest GAAP financial measure. |
Victory Capital Holdings, Inc. and Subsidiaries Unaudited Consolidated Balance Sheets (In thousands, except for shares) |
|||||||||
| December 31, 2024 | December 31, 2023 | ||||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 126,731 |
|
$ | 123,547 |
|
|||
| Investment management fees receivable | 83,307 |
|
71,888 |
|
|||||
| Fund administration and distribution fees receivable | 16,014 |
|
14,238 |
|
|||||
| Other receivables | 1,346 |
|
1,444 |
|
|||||
| Prepaid expenses | 8,634 |
|
5,785 |
|
|||||
| Investments in proprietary funds, at fair value | 605 |
|
534 |
|
|||||
| Deferred compensation plan investments, at fair value | 34,608 |
|
31,274 |
|
|||||
| Property and equipment, net | 11,874 |
|
19,578 |
|
|||||
| Goodwill | 981,805 |
|
981,805 |
|
|||||
| Other intangible assets, net | 1,260,614 |
|
1,281,832 |
|
|||||
| Other assets | 22,053 |
|
10,691 |
|
|||||
| Total assets | $ | 2,547,591 |
|
$ | 2,542,616 |
|
|||
| Liabilities and stockholders' equity | |||||||||
| Accounts payable and accrued expenses | $ | 57,951 |
|
$ | 56,477 |
|
|||
| Accrued compensation and benefits | 51,648 |
|
55,456 |
|
|||||
| Consideration payable for acquisition of business | 139,894 |
|
217,200 |
|
|||||
| Deferred compensation plan liability | 34,608 |
|
31,274 |
|
|||||
| Deferred tax liability, net | 157,120 |
|
128,714 |
|
|||||
| Other liabilities | 20,871 |
|
11,225 |
|
|||||
| Long-term debt(1) | 963,862 |
|
989,269 |
|
|||||
| Total liabilities | 1,425,954 |
|
1,489,615 |
|
|||||
| Stockholders' equity: | |||||||||
| Common stock; |
839 |
|
824 |
|
|||||
| Additional paid-in capital | 752,371 |
|
728,283 |
|
|||||
| Treasury stock, at cost: 2024 - 20,294,737 shares; 2023 - 18,149,591 shares | (574,856 |
) |
(444,286 |
) |
|||||
| Accumulated other comprehensive income | 18,683 |
|
31,328 |
|
|||||
| Retained earnings | 924,600 |
|
736,852 |
|
|||||
| Total stockholders' equity | 1,121,637 |
|
1,053,001 |
|
|||||
| Total liabilities and stockholders’ equity | $ | 2,547,591 |
|
$ | 2,542,616 |
|
|||
1 Balances at December 31, 2024 and 2023 are shown net of unamortized loan discount and debt issuance costs in the amount of |
Victory Capital Holdings, Inc. and Subsidiaries Total Client Assets (unaudited; in millions) |
||||||||||||
| For the Three Months Ended | ||||||||||||
December 31, |
|
September 30, |
|
December 31, |
||||||||
2024 |
|
|
2024 |
|
|
2023 |
|
|||||
| Beginning AUM | $ | 176,113 |
|
$ | 168,681 |
|
$ | 148,879 |
|
|||
| Beginning other assets1 | 4,981 |
|
5,094 |
|
4,627 |
|
||||||
| Beginning total client assets | 181,094 |
|
173,775 |
|
153,506 |
|
||||||
| AUM net cash flows | (1,870 |
) |
(2,636 |
) |
(1,381 |
) |
||||||
| Other assets net cash flows | (675 |
) |
(446 |
) |
200 |
|
||||||
| Total client assets net cash flows | (2,545 |
) |
(3,082 |
) |
(1,181 |
) |
||||||
| AUM market appreciation (depreciation) | (2,237 |
) |
10,076 |
|
13,853 |
|
||||||
| Other assets market appreciation (depreciation) | (141 |
) |
333 |
|
462 |
|
||||||
| Total client assets market appreciation (depreciation) | (2,378 |
) |
10,409 |
|
14,315 |
|
||||||
| AUM realizations and distributions | — |
|
(2 |
) |
(27 |
) |
||||||
| Acquired & divested assets / Net transfers | (76 |
) |
(7 |
) |
(2 |
) |
||||||
| Ending AUM | 171,930 |
|
176,113 |
|
161,322 |
|
||||||
| Ending other assets | 4,165 |
|
4,981 |
|
5,289 |
|
||||||
| Ending total client assets | 176,096 |
|
181,094 |
|
166,611 |
|
||||||
| Average total client assets2 | 180,104 |
|
176,806 |
|
156,734 |
|
||||||
For the Year Ended |
||||||||||||
December 31, |
|
December 31, |
||||||||||
2024 |
|
|
2023 |
|
||||||||
| Beginning AUM | $ | 161,322 |
|
$ | 147,762 |
|
||||||
| Beginning other assets1 | 5,289 |
|
5,190 |
|
||||||||
| Beginning total client assets | 166,611 |
|
152,952 |
|
||||||||
| AUM net cash flows | (7,377 |
) |
(5,976 |
) |
||||||||
| Other assets net cash flows | (1,627 |
) |
(591 |
) |
||||||||
| Total client assets net cash flows | (9,004 |
) |
(6,567 |
) |
||||||||
| AUM market appreciation (depreciation) | 18,100 |
|
21,188 |
|
||||||||
| Other assets market appreciation (depreciation) | 504 |
|
690 |
|
||||||||
| Total client assets market appreciation (depreciation) | 18,604 |
|
21,878 |
|
||||||||
| AUM realizations and distributions | (2 |
) |
(100 |
) |
||||||||
| Acquired & divested assets / Net transfers | (113 |
) |
(1,552 |
) |
||||||||
| Ending AUM | 171,930 |
|
161,322 |
|
||||||||
| Ending other assets | 4,165 |
|
5,289 |
|
||||||||
| Ending total client assets | 176,096 |
|
166,611 |
|
||||||||
| Average total client assets3 | 174,542 |
|
158,268 |
|
||||||||
1 Includes low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class within the by asset class table and in Separate Accounts and Other Pooled Vehicles within the by vehicle table. These assets are included as part of Victory’s Regulatory Assets Under Management reported in Form ADV Part 1. |
2 For the three-month periods ending December 31, 2024, September 30, 2024 and December 31, 2023 total client assets revenue realization was 51.3 basis points, 50.8 basis points and 52.1 basis points, respectively. |
3 For the year ended December 31, 2024 and 2023 total client assets revenue realization was 51.2 basis points and 51.9 basis points, respectively. |
Victory Capital Holdings, Inc. and Subsidiaries Total Assets Under Management1 (unaudited; in millions) |
||||||||||||
| For the Three Months Ended | ||||||||||||
December 31, |
|
September 30, |
|
December 31, |
||||||||
2024 |
|
|
2024 |
|
|
2023 |
|
|||||
| Beginning assets under management | $ | 176,113 |
|
$ | 168,681 |
|
$ | 148,879 |
|
|||
| Gross client cash inflows | 6,793 |
|
6,120 |
|
6,545 |
|
||||||
| Gross client cash outflows | (8,663 |
) |
(8,756 |
) |
(7,926 |
) |
||||||
| Net client cash flows | (1,870 |
) |
(2,636 |
) |
(1,381 |
) |
||||||
| Market appreciation (depreciation) | (2,237 |
) |
10,076 |
|
13,853 |
|
||||||
| Realizations and distributions | — |
|
(2 |
) |
(27 |
) |
||||||
| Acquired & divested assets / Net Transfers | (76 |
) |
(7 |
) |
(2 |
) |
||||||
| Ending assets under management | 171,930 |
|
176,113 |
|
161,322 |
|
||||||
| Average assets under management | 175,741 |
|
171,876 |
|
151,870 |
|
||||||
| For the Year Ended | ||||||||||||
December 31, |
|
December 31, |
||||||||||
2024 |
|
|
2023 |
|
||||||||
| Beginning assets under management | $ | 161,322 |
|
$ | 147,762 |
|
||||||
| Gross client cash inflows | 26,167 |
|
23,504 |
|
||||||||
| Gross client cash outflows | (33,545 |
) |
(29,480 |
) |
||||||||
| Net client cash flows | (7,377 |
) |
(5,976 |
) |
||||||||
| Market appreciation (depreciation) | 18,100 |
|
21,188 |
|
||||||||
| Realizations and distributions | (2 |
) |
(100 |
) |
||||||||
| Acquired assets / Net transfers | (113 |
) |
(1,552 |
) |
||||||||
| Ending assets under management | 171,930 |
|
161,322 |
|
||||||||
| Average assets under management | 169,658 |
|
153,455 |
|
||||||||
1 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. |
Victory Capital Holdings, Inc. and Subsidiaries Other Assets (Institutional)1 (unaudited; in millions) |
||||||||||||
For the Three Months |
||||||||||||
December 31, |
|
September 30, |
|
December 31, |
||||||||
2024 |
|
2024 |
|
2023 |
||||||||
| Beginning other assets (institutional) | $ | 4,981 |
|
$ | 5,094 |
|
$ | 4,627 |
||||
| Gross client cash inflows | — |
|
— |
|
200 |
|||||||
| Gross client cash outflows | (675 |
) |
(446 |
) |
— |
|||||||
| Net client cash flows | (675 |
) |
(446 |
) |
200 |
|||||||
| Market appreciation (depreciation) | (141 |
) |
333 |
|
462 |
|||||||
| Realizations and distributions | — |
|
— |
|
— |
|||||||
| Acquired & divested assets / Net transfers | — |
|
— |
|
— |
|||||||
| Ending other assets (institutional) | 4,165 |
|
4,981 |
|
5,289 |
|||||||
| Average other assets (institutional)2 | 4,363 |
|
4,930 |
|
4,864 |
|||||||
| For the Year Ended | ||||||||||||
December 31, |
|
December 31, |
||||||||||
2024 |
|
2023 |
||||||||||
| Beginning other assets (institutional) | $ | 5,289 |
|
$ | 5,190 |
|
||||||
| Gross client cash inflows | 467 |
|
600 |
|
||||||||
| Gross client cash outflows | (2,094 |
) |
(1,191 |
) |
||||||||
| Net client cash flows | (1,627 |
) |
(591 |
) |
||||||||
| Market appreciation (depreciation) | 504 |
|
690 |
|
||||||||
| Realizations and distributions | — |
|
— |
|
||||||||
| Acquired & divested assets / Net transfers | — |
|
— |
|
||||||||
| Ending other assets (institutional) | 4,165 |
|
5,289 |
|
||||||||
| Average other assets (institutional)3 | 4,883 |
|
4,813 |
|
||||||||
1 Includes low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class within the by asset class table and in Separate Accounts and Other Pooled Vehicles within the by vehicle table. These assets are included as part of Victory’s Regulatory Assets Under Management reported in Form ADV Part 1. |
2 For the three-month periods ending December 31, 2024, September 30, 2024 and December 31, 2023 total other assets (institutional) revenue realization was 3.2 basis points, 3.4 basis points and 3.6 basis points, respectively. |
3 For the year ended December 31, 2024 and 2023 total other assets (institutional) revenue realization was 3.4 basis points and 3.6 basis points, respectively. |
Victory Capital Holdings, Inc. and Subsidiaries Assets Under Management by Asset Class (unaudited; in millions) |
||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | By Asset Class | |||||||||||||||||||||||||||||||||||||||
| Global / | ||||||||||||||||||||||||||||||||||||||||
| Fixed | Non- |
Alternative | Total | Money Market/ | Total | |||||||||||||||||||||||||||||||||||
| Cap Equity | Cap Equity | Income | Cap Equity | Equity | Solutions | Investments | Long-term | Short-term | AUM1 | |||||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Beginning assets under management | $ | 32,333 |
|
$ | 15,591 |
|
$ | 25,081 |
|
$ | 14,239 |
|
$ | 19,752 |
|
$ | 62,544 |
|
$ | 3,178 |
|
$ | 172,720 |
|
$ | 3,393 |
|
$ | 176,113 |
|
||||||||||
| Gross client cash inflows | 1,163 |
|
393 |
|
987 |
|
75 |
|
1,535 |
|
2,291 |
|
170 |
|
6,615 |
|
178 |
|
6,793 |
|
||||||||||||||||||||
| Gross client cash outflows | (1,881 |
) |
(1,215 |
) |
(1,391 |
) |
(413 |
) |
(1,023 |
) |
(2,037 |
) |
(384 |
) |
(8,344 |
) |
(319 |
) |
(8,663 |
) |
||||||||||||||||||||
| Net client cash flows | (718 |
) |
(822 |
) |
(404 |
) |
(338 |
) |
513 |
|
254 |
|
(214 |
) |
(1,729 |
) |
(140 |
) |
(1,870 |
) |
||||||||||||||||||||
| Market appreciation (depreciation) | (1,008 |
) |
21 |
|
(342 |
) |
279 |
|
(1,143 |
) |
(100 |
) |
13 |
|
(2,279 |
) |
43 |
|
(2,237 |
) |
||||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||||||||||
| Acquired assets / Net transfers | (24 |
) |
(6 |
) |
66 |
|
(32 |
) |
(26 |
) |
(105 |
) |
3 |
|
(125 |
) |
48 |
|
(76 |
) |
||||||||||||||||||||
| Ending assets under management | $ | 30,584 |
|
$ | 14,785 |
|
$ | 24,402 |
|
$ | 14,148 |
|
$ | 19,095 |
|
$ | 62,593 |
|
$ | 2,980 |
|
$ | 168,586 |
|
$ | 3,344 |
|
$ | 171,930 |
|
||||||||||
| September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Beginning assets under management | $ | 31,015 |
|
$ | 15,182 |
|
$ | 24,398 |
|
$ | 13,983 |
|
$ | 18,459 |
|
$ | 58,936 |
|
$ | 3,390 |
|
$ | 165,362 |
|
$ | 3,320 |
|
$ | 168,681 |
|
||||||||||
| Gross client cash inflows | 975 |
|
584 |
|
1,344 |
|
73 |
|
578 |
|
2,143 |
|
179 |
|
5,876 |
|
244 |
|
6,120 |
|
||||||||||||||||||||
| Gross client cash outflows | (2,300 |
) |
(1,278 |
) |
(1,640 |
) |
(486 |
) |
(485 |
) |
(1,877 |
) |
(443 |
) |
(8,508 |
) |
(249 |
) |
(8,756 |
) |
||||||||||||||||||||
| Net client cash flows | (1,325 |
) |
(694 |
) |
(296 |
) |
(413 |
) |
94 |
|
265 |
|
(263 |
) |
(2,631 |
) |
(5 |
) |
(2,636 |
) |
||||||||||||||||||||
| Market appreciation (depreciation) | 2,649 |
|
1,105 |
|
973 |
|
690 |
|
1,212 |
|
3,368 |
|
51 |
|
10,049 |
|
27 |
|
10,076 |
|
||||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(2 |
) |
(2 |
) |
— |
|
(2 |
) |
||||||||||||||||||||
| Acquired assets / Net transfers | (5 |
) |
(2 |
) |
6 |
|
(21 |
) |
(13 |
) |
(25 |
) |
3 |
|
(58 |
) |
51 |
|
(7 |
) |
||||||||||||||||||||
| Ending assets under management | $ | 32,333 |
|
$ | 15,591 |
|
$ | 25,081 |
|
$ | 14,239 |
|
$ | 19,752 |
|
$ | 62,544 |
|
$ | 3,178 |
|
$ | 172,720 |
|
$ | 3,393 |
|
$ | 176,113 |
|
||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
| Beginning assets under management | $ | 28,235 |
|
$ | 14,650 |
|
$ | 23,790 |
|
$ | 11,596 |
|
$ | 14,807 |
|
$ | 49,371 |
|
$ | 3,222 |
|
$ | 145,671 |
|
$ | 3,208 |
|
$ | 148,879 |
|
||||||||||
| Gross client cash inflows | 1,008 |
|
555 |
|
1,072 |
|
62 |
|
1,251 |
|
1,910 |
|
498 |
|
6,357 |
|
188 |
|
6,545 |
|
||||||||||||||||||||
| Gross client cash outflows | (1,548 |
) |
(938 |
) |
(1,890 |
) |
(329 |
) |
(657 |
) |
(1,977 |
) |
(352 |
) |
(7,691 |
) |
(234 |
) |
(7,926 |
) |
||||||||||||||||||||
| Net client cash flows | (541 |
) |
(383 |
) |
(818 |
) |
(267 |
) |
595 |
|
(67 |
) |
146 |
|
(1,334 |
) |
(47 |
) |
(1,381 |
) |
||||||||||||||||||||
| Market appreciation (depreciation) | 2,917 |
|
1,698 |
|
1,392 |
|
1,320 |
|
1,387 |
|
5,012 |
|
91 |
|
13,816 |
|
38 |
|
13,853 |
|
||||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(27 |
) |
(27 |
) |
— |
|
(27 |
) |
||||||||||||||||||||
| Acquired assets / Net transfers | (8 |
) |
(6 |
) |
(8 |
) |
(15 |
) |
(16 |
) |
(20 |
) |
(1 |
) |
(74 |
) |
72 |
|
(3 |
) |
||||||||||||||||||||
| Ending assets under management | $ | 30,604 |
|
$ | 15,959 |
|
$ | 24,355 |
|
$ | 12,635 |
|
$ | 16,772 |
|
$ | 54,296 |
|
$ | 3,431 |
|
$ | 158,051 |
|
$ | 3,271 |
|
$ | 161,322 |
|
||||||||||
1Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. |
Victory Capital Holdings, Inc. and Subsidiaries Assets Under Management by Asset Class (unaudited; in millions) |
||||||||||||||||||||||||||||||||||||||||
| For the Year Ended | By Asset Class | |||||||||||||||||||||||||||||||||||||||
| Global / | ||||||||||||||||||||||||||||||||||||||||
| Fixed | Non- |
Alternative | Total | Money Market/ | Total | |||||||||||||||||||||||||||||||||||
| Cap Equity | Cap Equity | Income | Cap Equity | Equity | Solutions | Investments | Long-term | Short-term | AUM1 | |||||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Beginning assets under management | $ | 30,604 |
|
$ | 15,959 |
|
$ | 24,355 |
|
$ | 12,635 |
|
$ | 16,772 |
|
$ | 54,296 |
|
$ | 3,431 |
|
$ | 158,051 |
|
$ | 3,271 |
|
$ | 161,322 |
|
||||||||||
| Gross client cash inflows | 4,516 |
|
2,043 |
|
4,912 |
|
284 |
|
3,762 |
|
8,634 |
|
1,105 |
|
25,255 |
|
912 |
|
26,167 |
|
||||||||||||||||||||
| Gross client cash outflows | (7,685 |
) |
(4,195 |
) |
(5,905 |
) |
(1,540 |
) |
(2,893 |
) |
(8,509 |
) |
(1,618 |
) |
(32,345 |
) |
(1,200 |
) |
(33,545 |
) |
||||||||||||||||||||
| Net client cash flows | (3,169 |
) |
(2,152 |
) |
(993 |
) |
(1,256 |
) |
869 |
|
125 |
|
(513 |
) |
(7,090 |
) |
(287 |
) |
(7,377 |
) |
||||||||||||||||||||
| Market appreciation (depreciation) | 3,189 |
|
1,035 |
|
924 |
|
2,873 |
|
1,570 |
|
8,290 |
|
47 |
|
17,929 |
|
172 |
|
18,100 |
|
||||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(2 |
) |
(2 |
) |
— |
|
(2 |
) |
||||||||||||||||||||
| Acquired assets / Net transfers | (40 |
) |
(58 |
) |
116 |
|
(104 |
) |
(115 |
) |
(118 |
) |
17 |
|
(301 |
) |
188 |
|
(113 |
) |
||||||||||||||||||||
| Ending assets under management | $ | 30,584 |
|
$ | 14,785 |
|
$ | 24,402 |
|
$ | 14,148 |
|
$ | 19,095 |
|
$ | 62,593 |
|
$ | 2,980 |
|
$ | 168,586 |
|
$ | 3,344 |
|
$ | 171,930 |
|
||||||||||
| December 31, 20231 | ||||||||||||||||||||||||||||||||||||||||
| Beginning assets under management | $ | 27,892 |
|
$ | 15,103 |
|
$ | 26,353 |
|
$ | 10,973 |
|
$ | 14,160 |
|
$ | 46,317 |
|
$ | 3,663 |
|
$ | 144,460 |
|
$ | 3,302 |
|
$ | 147,762 |
|
||||||||||
| Gross client cash inflows | 5,090 |
|
2,741 |
|
4,024 |
|
284 |
|
2,581 |
|
6,337 |
|
1,593 |
|
22,651 |
|
853 |
|
23,504 |
|
||||||||||||||||||||
| Gross client cash outflows | (5,536 |
) |
(3,859 |
) |
(6,129 |
) |
(1,286 |
) |
(2,304 |
) |
(7,119 |
) |
(2,002 |
) |
(28,235 |
) |
(1,245 |
) |
(29,480 |
) |
||||||||||||||||||||
| Net client cash flows | (446 |
) |
(1,117 |
) |
(2,105 |
) |
(1,002 |
) |
276 |
|
(781 |
) |
(409 |
) |
(5,584 |
) |
(391 |
) |
(5,976 |
) |
||||||||||||||||||||
| Market appreciation (depreciation) | 3,153 |
|
1,978 |
|
1,595 |
|
2,809 |
|
2,431 |
|
8,804 |
|
270 |
|
21,039 |
|
149 |
|
21,188 |
|
||||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(100 |
) |
(100 |
) |
— |
|
(100 |
) |
||||||||||||||||||||
| Acquired assets / Net transfers | 5 |
|
(4 |
) |
(1,487 |
) |
(145 |
) |
(96 |
) |
(43 |
) |
7 |
|
(1,763 |
) |
211 |
|
(1,552 |
) |
||||||||||||||||||||
| Ending assets under management | $ | 30,604 |
|
$ | 15,959 |
|
$ | 24,355 |
|
$ | 12,635 |
|
$ | 16,772 |
|
$ | 54,296 |
|
$ | 3,431 |
|
$ | 158,051 |
|
$ | 3,271 |
|
$ | 161,322 |
|
||||||||||
1Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. |
Victory Capital Holdings, Inc. and Subsidiaries Assets Under Management by Vehicle (unaudited; in millions) |
||||||||||||||||
| For the Three Months Ended | By Vehicle | |||||||||||||||
| Separate | ||||||||||||||||
| Accounts | ||||||||||||||||
| Mutual | and Other | |||||||||||||||
| Funds1 | ETFs2 | Vehicles3 | Total AUM4 | |||||||||||||
| December 31, 2024 | ||||||||||||||||
| Beginning assets under management | $ | 117,044 |
|
$ | 6,694 |
|
$ | 52,375 |
|
$ | 176,113 |
|
||||
| Gross client cash inflows | 3,545 |
|
1,167 |
|
2,082 |
|
6,793 |
|
||||||||
| Gross client cash outflows | (5,865 |
) |
(130 |
) |
(2,667 |
) |
(8,663 |
) |
||||||||
| Net client cash flows | (2,320 |
) |
1,036 |
|
(586 |
) |
(1,870 |
) |
||||||||
| Market appreciation (depreciation) | (1,063 |
) |
(146 |
) |
(1,028 |
) |
(2,237 |
) |
||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
||||||||
| Acquired assets / Net transfers | (15 |
) |
(76 |
) |
15 |
|
(76 |
) |
||||||||
| Ending assets under management | $ | 113,645 |
|
$ | 7,508 |
|
$ | 50,777 |
|
$ | 171,930 |
|
||||
| September 30, 2024 | ||||||||||||||||
| Beginning assets under management | $ | 112,584 |
|
$ | 5,440 |
|
$ | 50,657 |
|
$ | 168,681 |
|
||||
| Gross client cash inflows | 3,553 |
|
992 |
|
1,575 |
|
6,120 |
|
||||||||
| Gross client cash outflows | (5,526 |
) |
(158 |
) |
(3,073 |
) |
(8,756 |
) |
||||||||
| Net client cash flows | (1,973 |
) |
834 |
|
(1,498 |
) |
(2,636 |
) |
||||||||
| Market appreciation (depreciation) | 6,443 |
|
426 |
|
3,208 |
|
10,076 |
|
||||||||
| Realizations and distributions | — |
|
— |
|
(2 |
) |
(2 |
) |
||||||||
| Acquired assets / Net transfers | (10 |
) |
(7 |
) |
10 |
|
(7 |
) |
||||||||
| Ending assets under management | $ | 117,044 |
|
$ | 6,694 |
|
$ | 52,375 |
|
$ | 176,113 |
|
||||
| December 31, 2023 | ||||||||||||||||
| Beginning assets under management | $ | 101,138 |
|
$ | 4,710 |
|
$ | 43,031 |
|
$ | 148,879 |
|
||||
| Gross client cash inflows | 4,126 |
|
343 |
|
2,076 |
|
6,545 |
|
||||||||
| Gross client cash outflows | (5,887 |
) |
(356 |
) |
(1,682 |
) |
(7,926 |
) |
||||||||
| Net client cash flows | (1,761 |
) |
(13 |
) |
394 |
|
(1,381 |
) |
||||||||
| Market appreciation (depreciation) | 9,466 |
|
273 |
|
4,115 |
|
13,853 |
|
||||||||
| Realizations and distributions | — |
|
— |
|
(27 |
) |
(27 |
) |
||||||||
| Acquired assets / Net transfers | (41 |
) |
— |
|
39 |
|
(3 |
) |
||||||||
| Ending assets under management | $ | 108,802 |
|
$ | 4,970 |
|
$ | 47,551 |
|
$ | 161,322 |
|
||||
1 Includes institutional and retail share classes, money market and VIP funds. |
2 Represents only ETF assets held by third parties. Excludes ETF assets held by other Victory Capital products. |
3 Includes collective trust funds, wrap program accounts, UMAs, UCITS, private funds and non- |
4 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. |
Victory Capital Holdings, Inc. and Subsidiaries Assets Under Management by Vehicle (unaudited; in millions) |
||||||||||||||||
| For the Year Ended | By Vehicle | |||||||||||||||
| Separate | ||||||||||||||||
| Accounts | ||||||||||||||||
| Mutual | and Other | |||||||||||||||
| Funds1 | ETFs2 | Vehicles3 | Total | |||||||||||||
| December 31, 2024 | ||||||||||||||||
| Beginning assets under management | $ | 108,802 |
|
$ | 4,970 |
|
$ | 47,551 |
|
$ | 161,322 |
|
||||
| Gross client cash inflows | 14,954 |
|
3,089 |
|
8,124 |
|
26,167 |
|
||||||||
| Gross client cash outflows | (22,408 |
) |
(915 |
) |
(10,222 |
) |
(33,545 |
) |
||||||||
| Net client cash flows | (7,454 |
) |
2,174 |
|
(2,097 |
) |
(7,377 |
) |
||||||||
| Market appreciation (depreciation) | 12,561 |
|
404 |
|
5,136 |
|
18,100 |
|
||||||||
| Realizations and distributions | — |
|
— |
|
(2 |
) |
(2 |
) |
||||||||
| Acquired assets / Net transfers | (263 |
) |
(40 |
) |
189 |
|
(113 |
) |
||||||||
| Ending assets under management | $ | 113,645 |
|
$ | 7,508 |
|
$ | 50,777 |
|
$ | 171,930 |
|
||||
| December 31, 2023 | ||||||||||||||||
| Beginning assets under management | $ | 99,447 |
|
$ | 5,627 |
|
$ | 42,688 |
|
$ | 147,762 |
|
||||
| Gross client cash inflows | 15,594 |
|
969 |
|
6,942 |
|
23,504 |
|
||||||||
| Gross client cash outflows | (21,276 |
) |
(1,567 |
) |
(6,637 |
) |
(29,480 |
) |
||||||||
| Net client cash flows | (5,682 |
) |
(599 |
) |
305 |
|
(5,976 |
) |
||||||||
| Market appreciation (depreciation) | 15,114 |
|
(56 |
) |
6,130 |
|
21,188 |
|
||||||||
| Realizations and distributions | — |
|
— |
|
(100 |
) |
(100 |
) |
||||||||
| Acquired assets / Net transfers4 | (77 |
) |
(3 |
) |
(1,471 |
) |
(1,552 |
) |
||||||||
| Ending assets under management | $ | 108,802 |
|
$ | 4,970 |
|
$ | 47,551 |
|
$ | 161,322 |
|
||||
1 Includes institutional and retail share classes, money market and VIP funds. |
2 Represents only ETF assets held by third parties. Excludes ETF assets held by other Victory Capital products. |
3 Includes collective trust funds, wrap program accounts, UMAs, UCITS, private funds and non- |
4 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. |
Information Regarding Non-GAAP Financial Measures
Victory Capital uses non-GAAP financial measures referred to as Adjusted EBITDA and Adjusted Net Income to measure the operating profitability of the Company. These measures eliminate the impact of one-time acquisition, restructuring and integration costs and demonstrate the ongoing operating earnings metrics of the Company. The Company has included these non-GAAP measures to provide investors with the same financial metrics used by management to assess the operating performance of the Company.
Adjusted EBITDA
Adjustments made to GAAP Net Income to calculate Adjusted EBITDA, as applicable, are:
- Adding back income tax expense;
- Adding back interest paid on debt and other financing costs, net of interest income;
- Adding back depreciation on property and equipment;
- Adding back other business taxes;
- Adding back amortization expense on acquisition-related intangible assets;
- Adding back stock-based compensation expense associated with equity awards issued from pools created in connection with the management-led buyout and various acquisitions and as a result of equity grants related to the IPO;
- Adding back direct incremental costs of acquisitions, including restructuring costs;
- Adding back debt issuance cost expense;
- Adjusting for earnings/losses on equity method investments.
Adjusted Net Income
Adjustments made to GAAP Net Income to calculate Adjusted Net Income, as applicable, are:
- Adding back other business taxes;
- Adding back amortization expense on acquisition-related intangible assets;
- Adding back stock-based compensation expense associated with equity awards issued from pools created in connection with the management-led buyout and various acquisitions and as a result of any equity grants related to the IPO;
- Adding back direct incremental costs of acquisitions, including restructuring costs;
- Adding back debt issuance cost expense;
- Subtracting an estimate of income tax expense applied to the sum of the adjustments above.
Tax Benefit of Goodwill and Acquired Intangible Assets
Due to Victory Capital’s acquisitive nature, tax deductions allowed on acquired intangible assets and goodwill provide it with additional significant supplemental economic benefit. The tax benefit of goodwill and intangible assets represent the tax benefits associated with deductions allowed for intangible assets and goodwill generated from prior acquisitions in which the Company received a step-up in basis for tax purposes. Acquired intangible assets and goodwill may be amortized for tax purposes, generally over a 15-year period. The tax benefit from amortization on these assets is included to show the full economic benefit of deductions for all acquired intangible assets with a step-up in tax basis.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206913675/en/
Investors:
Matthew Dennis, CFA
Chief of Staff
Director, Investor Relations
216-898-2412
mdennis@vcm.com
Media:
Jessica Davila
Director, Global Communications
210-694-9693
jessica_davila@vcm.com
Source: Victory Capital Holdings, Inc.
FAQ
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