Victory Capital Reports Strong Second Quarter Results and Record Earnings Per Share
Victory Capital Holdings (NASDAQ: VCTR) reported strong Q2 2024 results with record earnings per share. Key highlights include:
- Total client assets of $173.8 billion
- GAAP operating margin of 50.4%
- GAAP net income per diluted share of $1.12
- Adjusted EBITDA margin of 53.0%
- Adjusted net income with tax benefit per diluted share of $1.31
The company announced a strategic partnership with Amundi, combining Amundi's US business into Victory Capital. The Board authorized an 11% increase in quarterly cash dividend to $0.41. Investment performance remained strong, with 60%, 77%, and 79% of AUM outperforming benchmarks over 3-, 5-, and 10-year periods, respectively.
Victory Capital Holdings (NASDAQ: VCTR) ha riportato risultati eccellenti per il secondo trimestre del 2024, con guadagni per azione record. Tra i punti salienti:
- Totale attivi dei clienti di 173,8 miliardi di dollari
- Margine operativo GAAP del 50,4%
- Utile netto GAAP per azione diluita di 1,12 dollari
- Margine EBITDA rettificato del 53,0%
- Utile netto rettificato con beneficio fiscale per azione diluita di 1,31 dollari
L'azienda ha annunciato una partnership strategica con Amundi, unendo il business statunitense di Amundi a Victory Capital. Il Consiglio ha autorizzato un aumento dell'11% del dividendo in contante trimestrale, portandolo a 0,41 dollari. Le performance d'investimento sono rimaste solide, con il 60%, 77% e 79% degli AUM che hanno superato i benchmark rispettivamente su periodi di 3, 5 e 10 anni.
Victory Capital Holdings (NASDAQ: VCTR) informó sobre sólidos resultados en el segundo trimestre de 2024, con ganancias por acción récord. Los puntos destacados incluyen:
- Activos totales de los clientes de 173.8 mil millones de dólares
- Margen operativo GAAP del 50.4%
- Ingreso neto GAAP por acción diluida de 1.12 dólares
- Margen EBITDA ajustado del 53.0%
- Ingreso neto ajustado con beneficio fiscal por acción diluida de 1.31 dólares
La compañía anunció una alianza estratégica con Amundi, combinando el negocio estadounidense de Amundi con Victory Capital. La Junta autorizó un aumento del 11% en el dividendo en efectivo trimestral a 0.41 dólares. El rendimiento de las inversiones se mantuvo fuerte, con el 60%, 77% y 79% de los AUM superando los índices de referencia en períodos de 3, 5 y 10 años, respectivamente.
Victory Capital Holdings (NASDAQ: VCTR)는 2024년 2분기 실적을 발표하며 기록적인 주당 순이익을 기록했습니다. 주요 하이라이트는:
- 총 고객 자산 1738억 달러
- GAAP 운영 마진 50.4%
- 희석 주당 GAAP 순이익 1.12 달러
- 조정된 EBITDA 마진 53.0%
- 조정된 세금 혜택 순이익 희석 주당 1.31 달러
회사는 Amundi와의 전략적 파트너십을 발표하며, Amundi의 미국 사업을 Victory Capital과 통합했습니다. 이사회는 분기 현금 배당금을 11% 인상하여 0.41 달러로 결정했습니다. 투자 성과는 여전히 강력했으며, AUM의 60%, 77%, 79%가 각각 3년, 5년 및 10년 기간 동안 벤치마크를 초과했습니다.
Victory Capital Holdings (NASDAQ: VCTR) a annoncé de solides résultats pour le deuxième trimestre 2024, avec des bénéfices par action records. Les principaux faits saillants incluent :
- Actifs totaux des clients de 173,8 milliards de dollars
- Marge opérationnelle GAAP de 50,4%
- Revenu net GAAP par action diluée de 1,12 dollar
- Marge EBITDA ajustée de 53,0%
- Revenu net ajusté avec avantage fiscal par action diluée de 1,31 dollar
L'entreprise a annoncé un partenariat stratégique avec Amundi, intégrant les activités américaines d'Amundi dans Victory Capital. Le Conseil a autorisé une augmentation de 11% du dividende trimestriel en espèces, le portant à 0,41 dollar. La performance des investissements est demeurée solide, avec 60%, 77% et 79% des AUM surperformant les indices de référence sur des périodes de 3, 5 et 10 ans, respectivement.
Victory Capital Holdings (NASDAQ: VCTR) hat im zweiten Quartal 2024 starke Ergebnisse mit rekordverdächtigen Gewinnen pro Aktie veröffentlicht. Die wichtigsten Highlights sind:
- Gesamtvermögen der Kunden von 173,8 Milliarden Dollar
- GAAP-Betriebsgewinnmarge von 50,4%
- GAAP-Nettoeinkommen pro verwässerter Aktie von 1,12 Dollar
- Bereinigte EBITDA-Marge von 53,0%
- Bereinigtes Nettoeinkommen mit Steuervergünstigung pro verwässerter Aktie von 1,31 Dollar
Das Unternehmen kündigte eine strategische Partnerschaft mit Amundi an, wobei Amundis US-Geschäft mit Victory Capital kombiniert wird. Der Vorstand genehmigte eine Erhöhung der vierteljährlichen Barausschüttung um 11% auf 0,41 Dollar. Die Anlagerendite blieb stark, wobei 60%, 77% und 79% der AUM die Benchmarks in den jeweiligen Zeiträumen von 3, 5 und 10 Jahren übertroffen haben.
- Record adjusted earnings per diluted share with tax benefit of $1.31
- GAAP operating margin expanded to 50.4%, up 1110 basis points from Q1
- Adjusted EBITDA increased 3.7% quarter-over-quarter to $116.5 million
- Revenue increased 7.5% year-over-year to $219.6 million
- 11% increase in quarterly cash dividend to $0.41 per share
- Strategic partnership with Amundi expected to provide double-digit earnings accretion within a year
- Total AUM decreased by $1.7 billion quarter-over-quarter to $168.7 billion
- Net outflows of $1.7 billion in Q2 2024
- Long-term net outflows of $1.7 billion in Q2 2024
Insights
Victory Capital's Q2 results demonstrate strong financial performance. Revenue increased 7.5% year-over-year to
Notably, adjusted EBITDA increased 12% to
However, it's important to note the net outflows of
Victory Capital's Q2 results reveal a company effectively navigating market challenges. The 60%, 77% and 79% of AUM outperforming benchmarks over 3-, 5- and 10-year periods respectively, demonstrate strong investment performance. This track record is important for attracting and retaining clients in the competitive asset management industry.
The announced strategic partnership with Amundi is a game-changer. It provides Victory Capital with global distribution capabilities and the potential for significant earnings accretion. This move could substantially enhance Victory's competitive position and growth prospects in the international markets.
However, the net outflows of
The reduction in net debt to EBITDA ratio to 1.9X and increased cash position provide financial flexibility for future strategic moves or weathering potential market downturns.
Victory Capital's Q2 results highlight its strong position in the asset management industry. The company's ability to maintain high profit margins and grow revenues in a challenging market environment is commendable. The
The strategic partnership with Amundi is a significant development. It not only provides Victory with access to Amundi's U.S. business but also opens up global distribution channels through 15-year exclusive agreements. This could be a major growth driver, especially in markets where Victory currently has presence.
However, the persistent net outflows are a concern. While the
Overall, Victory Capital's strong financial performance and strategic moves position it well in the competitive asset management landscape.
Second-Quarter Highlights
-
Total Client Assets of
$173.8 billion -
Long-term gross flows of
$5.8 billion -
Long-term net flows of
( $1.7) billion -
GAAP operating margin of
50.4% -
GAAP net income per diluted share of
$1.12 -
Adjusted EBITDA margin of
53.0% -
Adjusted net income with tax benefit per diluted share of
$1.31 -
Board authorizes an
11% increase in regular quarterly cash dividend to$0.41
“Our most significant development during the first half of 2024 was forging the long-term agreement to become strategic partners with Amundi,” said David Brown, Chairman and Chief Executive Officer. “Upon closing, we will be combining Amundi’s US business into Victory Capital and have reciprocal global exclusive 15-year distribution agreements. This transaction is extremely compelling with multiple strategic elements that will make our Company even better. It is also financially attractive with anticipated double-digit earnings accretion within a year, and it will immediately provide us with greater financial flexibility resulting from the strengthening of our balance sheet.
“During the second quarter, our business continued to perform exceptionally well. We generated the highest adjusted earnings per diluted share with tax benefit, adjusted EBITDA, and adjusted EBITDA margin, for any quarter in our history.
“Our Investment Franchises continued to deliver excellent investment performance for our clients. Through the end of June, the percentage of our AUM outperforming benchmarks over the respective 3-, 5-, and 10-year periods was
“As a result of our strong cash flow generation, the amount of cash on our balance sheet increased by
“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 Six Months Ended |
|||||||||||||||||
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|||||||||||
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||
| Assets Under Management1 | |||||||||||||||||||
| Ending | $ | 168,681 |
|
$ | 170,342 |
|
$ | 157,161 |
|
$ | 168,681 |
|
$ | 157,161 |
|
||||
| Average | 167,484 |
|
163,533 |
|
152,925 |
|
165,508 |
|
152,729 |
|
|||||||||
| AUM Long-term Flows2 | |||||||||||||||||||
| Long-term Gross | $ | 5,813 |
|
$ | 6,952 |
|
$ | 5,491 |
|
$ | 12,764 |
|
$ | 11,339 |
|
||||
| Long-term Net | (1,701 |
) |
(1,028 |
) |
(1,110 |
) |
(2,729 |
) |
(2,250 |
) |
|||||||||
| AUM Money Market/Short-term Flows | |||||||||||||||||||
| Money Market / Short-term Gross | $ | 255 |
|
$ | 236 |
|
$ | 231 |
|
$ | 491 |
|
$ | 472 |
|
||||
| Money Market / Short-term Net | (43 |
) |
(99 |
) |
(316 |
) |
(142 |
) |
(325 |
) |
|||||||||
| AUM Total Flows | |||||||||||||||||||
| Total Gross | $ | 6,067 |
|
$ | 7,187 |
|
$ | 5,722 |
|
$ | 13,255 |
|
$ | 11,811 |
|
||||
| Total Net | (1,744 |
) |
(1,127 |
) |
(1,426 |
) |
(2,871 |
) |
(2,576 |
) |
|||||||||
| Consolidated Financial Results (GAAP) | |||||||||||||||||||
| Revenue | $ | 219.6 |
|
$ | 215.9 |
|
$ | 204.2 |
|
$ | 435.5 |
|
$ | 405.5 |
|
||||
| AUM revenue realization (in bps) | 52.6 |
|
53.0 |
|
53.6 |
|
52.8 |
|
53.4 |
|
|||||||||
| Operating expenses | 109.0 |
|
131.0 |
|
116.7 |
|
240.1 |
|
243.5 |
|
|||||||||
| Income from operations | 110.6 |
|
84.8 |
|
87.5 |
|
195.4 |
|
162.1 |
|
|||||||||
| Operating margin | 50.4 |
% |
39.3 |
% |
42.9 |
% |
44.9 |
% |
40.0 |
% |
|||||||||
| Net income | 74.3 |
|
55.7 |
|
56.7 |
|
129.9 |
|
105.9 |
|
|||||||||
| Earnings per diluted share | $ | 1.12 |
|
$ | 0.84 |
|
$ | 0.83 |
|
$ | 1.97 |
|
$ | 1.53 |
|
||||
| Cash flow from operations | 79.7 |
|
68.7 |
|
77.4 |
|
148.4 |
|
141.6 |
|
|||||||||
| Adjusted Performance Results (Non-GAAP)3 | |||||||||||||||||||
| Adjusted EBITDA | $ | 116.5 |
|
$ | 112.4 |
|
$ | 104.0 |
|
$ | 228.9 |
|
$ | 203.2 |
|
||||
| Adjusted EBITDA margin | 53.0 |
% |
52.1 |
% |
50.9 |
% |
52.6 |
% |
50.1 |
% |
|||||||||
| Adjusted net income | 76.5 |
|
72.6 |
|
66.4 |
|
149.1 |
|
132.1 |
|
|||||||||
| Tax benefit of goodwill and acquired intangible assets | 10.1 |
|
9.7 |
|
9.5 |
|
19.9 |
|
19.1 |
|
|||||||||
| Adjusted net income with tax benefit | 86.6 |
|
82.3 |
|
75.9 |
|
169.0 |
|
151.1 |
|
|||||||||
| Adjusted net income with tax benefit per diluted share | $ | 1.31 |
|
$ | 1.25 |
|
$ | 1.11 |
|
$ | 2.56 |
|
$ | 2.19 |
|
||||
| _________________________________ | |||||||||||||||||||
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 June 30, 2024, Victory Capital had total client assets of
As of June 30, 2024, Victory Capital offered 122 investment strategies through its 11 autonomous Investment Franchises and Solutions Platform. The table below presents outperformance against benchmarks by AUM as of June 30, 2024.
Percentage of AUM Outperforming Benchmark |
||||||
Trailing |
|
Trailing |
|
Trailing |
|
Trailing |
1-Year |
|
3-Years |
|
5-Years |
|
10-Years |
|
|
|
|
|
|
|
Second Quarter 2024 Compared with First Quarter 2024
Revenue increased
Adjusted net income with tax benefit increased
Second Quarter 2024 Compared with Second Quarter 2023
Revenue for the three months ended June 30, 2024, increased
Operating expenses decreased
Adjusted net income with tax benefit increased
Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023
Revenue for the six months ended June 30, 2024, increased
Operating expenses decreased
Adjusted net income with tax benefit increased
Balance Sheet / Capital Management
The total debt outstanding as of June 30, 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, August 9, 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 (888) 330-3571 (domestic) or (646) 960-0657 (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.
Important Additional Information and Where to Find It
This communication discusses the proposed acquisition of Amundi Holdings US, Inc. (“Amundi US”) by the Company. In connection with the transaction, the Company intends to file a proxy statement and certain other documents regarding the transaction with the SEC. The definitive version of the proxy statement (if and when available) will be mailed to the Company’s stockholders.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTIONS CONTEMPLATED BY THE CONTRIBUTION AGREEMENT AND RELATED MATTERS.
Investors and security holders may obtain, free of charge, copies of the proxy statement (when it is available) and other documents that are filed or will be filed with the SEC by the Company through the website maintained by the SEC at www.sec.gov or the Investor Relations portion of the Company's website at https://ir.vcm.com.
Participants in the Solicitation
The Company and certain of its directors, executive officers and other employees may be deemed to be “participants” in the solicitation of proxies from the Company’s stockholders with respect to the special meeting of stockholders that will be held to consider and vote upon the approval of the share issuance in connection with the proposed acquisition of Amundi US by the Company. Additional information regarding the identity of the participants, and their respective direct and indirect interests in the transaction, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the transaction (if and when they become available). Information relating to the Company’s executive officers and directors can also be found in the Company’s proxy statement for its 2024 annual meeting of stockholders, which was filed with the SEC on March 28, 2024. Investors and security holders may obtain free copies of these documents using the sources indicated above.
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 Six Months Ended |
||||||||||||||||
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||||
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||
| Revenue | |||||||||||||||||||
| Investment management fees | $ | 173,163 |
|
$ | 169,785 |
|
$ | 159,410 |
|
$ | 342,948 |
|
$ | 316,246 |
|
||||
| Fund administration and distribution fees | 46,458 |
|
46,072 |
|
44,816 |
|
92,530 |
|
89,300 |
|
|||||||||
| Total revenue | 219,621 |
|
215,857 |
|
204,226 |
|
435,478 |
|
405,546 |
|
|||||||||
| Expenses | |||||||||||||||||||
| Personnel compensation and benefits | 55,660 |
|
59,454 |
|
54,940 |
|
115,114 |
|
112,542 |
|
|||||||||
| Distribution and other asset-based expenses | 36,474 |
|
36,263 |
|
37,344 |
|
72,737 |
|
74,998 |
|
|||||||||
| General and administrative | 14,385 |
|
14,012 |
|
13,250 |
|
28,397 |
|
25,638 |
|
|||||||||
| Depreciation and amortization | 7,551 |
|
7,601 |
|
9,650 |
|
15,152 |
|
21,330 |
|
|||||||||
| Change in value of consideration payable for acquisition of business | (8,200 |
) |
12,200 |
|
1,500 |
|
4,000 |
|
8,900 |
|
|||||||||
| Acquisition-related costs | 3,049 |
|
1,026 |
|
16 |
|
4,075 |
|
18 |
|
|||||||||
| Restructuring and integration costs | 105 |
|
492 |
|
— |
|
597 |
|
29 |
|
|||||||||
| Total operating expenses | 109,024 |
|
131,048 |
|
116,700 |
|
240,072 |
|
243,455 |
|
|||||||||
| Income from operations | 110,597 |
|
84,809 |
|
87,526 |
|
195,406 |
|
162,091 |
|
|||||||||
| Operating margin | 50.4 |
% |
39.3 |
% |
42.9 |
% |
44.9 |
% |
40.0 |
% |
|||||||||
| Other income (expense) | |||||||||||||||||||
| Interest income and other income (expense) | 1,557 |
|
3,565 |
|
1,971 |
|
5,122 |
|
3,515 |
|
|||||||||
| Interest expense and other financing costs | (16,279 |
) |
(16,486 |
) |
(14,902 |
) |
(32,765 |
) |
(29,141 |
) |
|||||||||
| Gain (loss) on debt extinguishment | (100 |
) |
— |
|
— |
|
(100 |
) |
— |
|
|||||||||
| Total other expense, net | (14,822 |
) |
(12,921 |
) |
(12,931 |
) |
(27,743 |
) |
(25,626 |
) |
|||||||||
| Income before income taxes | 95,775 |
|
71,888 |
|
74,595 |
|
167,663 |
|
136,465 |
|
|||||||||
| Income tax expense | (21,524 |
) |
(16,197 |
) |
(17,924 |
) |
(37,721 |
) |
(30,521 |
) |
|||||||||
| Net income | $ | 74,251 |
|
$ | 55,691 |
|
$ | 56,671 |
|
$ | 129,942 |
|
$ | 105,944 |
|
||||
| Earnings per share of common stock | |||||||||||||||||||
| Basic | $ | 1.15 |
|
$ | 0.86 |
|
$ | 0.85 |
|
$ | 2.01 |
|
$ | 1.58 |
|
||||
| Diluted | 1.12 |
|
0.84 |
|
0.83 |
|
1.97 |
|
1.53 |
|
|||||||||
| Weighted average number of shares outstanding | |||||||||||||||||||
| Basic | 64,734 |
|
64,389 |
|
66,466 |
|
64,561 |
|
66,874 |
|
|||||||||
| Diluted | 66,075 |
|
65,972 |
|
68,500 |
|
66,025 |
|
69,037 |
|
|||||||||
| Dividends declared per share | $ | 0.37 |
|
$ | 0.335 |
|
$ | 0.32 |
|
$ | 0.705 |
|
$ | 0.64 |
|
||||
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 Six Months Ended |
||||||||||||||||
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||||
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||
| Net income (GAAP) | $ | 74,251 |
|
$ | 55,691 |
|
$ | 56,671 |
|
$ | 129,942 |
|
$ | 105,944 |
|
||||
| Income tax expense | (21,524 |
) |
(16,197 |
) |
(17,924 |
) |
(37,721 |
) |
(30,521 |
) |
|||||||||
| Income before income taxes | $ | 95,775 |
|
$ | 71,888 |
|
$ | 74,595 |
|
$ | 167,663 |
|
$ | 136,465 |
|
||||
| Interest expense | 15,468 |
|
15,711 |
|
14,146 |
|
31,179 |
|
27,628 |
|
|||||||||
| Depreciation | 2,252 |
|
2,269 |
|
2,296 |
|
4,521 |
|
4,267 |
|
|||||||||
| Other business taxes | 414 |
|
369 |
|
382 |
|
783 |
|
766 |
|
|||||||||
| Amortization of acquisition-related intangible assets | 5,299 |
|
5,332 |
|
7,353 |
|
10,631 |
|
17,062 |
|
|||||||||
| Stock-based compensation | 940 |
|
1,327 |
|
1,538 |
|
2,267 |
|
3,542 |
|
|||||||||
| Acquisition, restructuring and exit costs | (4,520 |
) |
14,705 |
|
2,949 |
|
10,185 |
|
11,933 |
|
|||||||||
| Debt issuance costs | 874 |
|
755 |
|
756 |
|
1,629 |
|
1,504 |
|
|||||||||
| Adjusted EBITDA | $ | 116,502 |
|
$ | 112,356 |
|
$ | 104,015 |
|
$ | 228,858 |
|
$ | 203,167 |
|
||||
| Adjusted EBITDA margin | 53.0 |
% |
52.1 |
% |
50.9 |
% |
52.6 |
% |
50.1 |
% |
|||||||||
| Net income (GAAP) | $ | 74,251 |
|
$ | 55,691 |
|
$ | 56,671 |
|
$ | 129,942 |
|
$ | 105,944 |
|
||||
| Adjustment to reflect the operating performance of the Company | |||||||||||||||||||
| Other business taxes | 414 |
|
369 |
|
382 |
|
783 |
|
766 |
|
|||||||||
| Amortization of acquisition-related intangible assets | 5,299 |
|
5,332 |
|
7,353 |
|
10,631 |
|
17,062 |
|
|||||||||
| Stock-based compensation | 940 |
|
1,327 |
|
1,538 |
|
2,267 |
|
3,542 |
|
|||||||||
| Acquisition, restructuring and exit costs | (4,520 |
) |
14,705 |
|
2,949 |
|
10,185 |
|
11,933 |
|
|||||||||
| Debt issuance costs | 874 |
|
755 |
|
756 |
|
1,629 |
|
1,504 |
|
|||||||||
| Tax effect of above adjustments | (753 |
) |
(5,621 |
) |
(3,244 |
) |
(6,374 |
) |
(8,701 |
) |
|||||||||
| Adjusted net income | $ | 76,505 |
|
$ | 72,558 |
|
$ | 66,405 |
|
$ | 149,063 |
|
$ | 132,050 |
|
||||
| Adjusted net income per diluted share | $ | 1.16 |
|
$ | 1.10 |
|
$ | 0.97 |
|
$ | 2.26 |
|
$ | 1.91 |
|
||||
| Tax benefit of goodwill and acquired intangible assets | $ | 10,141 |
|
$ | 9,748 |
|
$ | 9,537 |
|
$ | 19,889 |
|
$ | 19,061 |
|
||||
| Tax benefit of goodwill and acquired intangible assets per diluted share | $ | 0.15 |
|
$ | 0.15 |
|
$ | 0.14 |
|
$ | 0.30 |
|
$ | 0.28 |
|
||||
| Adjusted net income with tax benefit | $ | 86,646 |
|
$ | 82,306 |
|
$ | 75,942 |
|
$ | 168,952 |
|
$ | 151,111 |
|
||||
| Adjusted net income with tax benefit per diluted share | $ | 1.31 |
|
$ | 1.25 |
|
$ | 1.11 |
|
$ | 2.56 |
|
$ | 2.19 |
|
||||
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 Condensed Consolidated Balance Sheets |
|||||||
(In thousands, except for shares) |
|||||||
|
|
|
|
||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
| Assets | |||||||
| Cash and cash equivalents | $ | 118,970 |
|
$ | 123,547 |
|
|
| Receivables | 100,660 |
|
87,570 |
|
|||
| Prepaid expenses | 6,979 |
|
5,785 |
|
|||
| Investments, at fair value | 33,759 |
|
31,808 |
|
|||
| Property and equipment, net | 15,599 |
|
19,578 |
|
|||
| Goodwill | 981,805 |
|
981,805 |
|
|||
| Other intangible assets, net | 1,271,200 |
|
1,281,832 |
|
|||
| Other assets | 12,309 |
|
10,691 |
|
|||
| Total assets | $ | 2,541,281 |
|
$ | 2,542,616 |
|
|
| Liabilities and stockholders' equity | |||||||
| Accounts payable and accrued expenses | $ | 54,528 |
|
$ | 56,477 |
|
|
| Accrued compensation and benefits | 54,020 |
|
55,456 |
|
|||
| Consideration payable for acquisition of business | 141,200 |
|
217,200 |
|
|||
| Deferred tax liability, net | 142,418 |
|
128,714 |
|
|||
| Other liabilities | 44,579 |
|
42,499 |
|
|||
| Long-term debt, net1 | 981,724 |
|
989,269 |
|
|||
| Total liabilities | 1,418,469 |
|
1,489,615 |
|
|||
| Stockholders' equity | |||||||
| Common stock, 2024 - 600,000,000 shares authorized, 83,454,313 shares issued and 64,808,655 shares outstanding; 2023 - 600,000,000 shares authorized, 82,404,305 shares issued and 64,254,714 shares outstanding |
835 |
|
824 |
|
|||
| Additional paid-in capital | 741,490 |
|
728,283 |
|
|||
| Treasury stock, at cost: 2024 - 18,645,658 shares; 2023 - 18,149,591 shares | (464,944 |
) |
(444,286 |
) |
|||
| Accumulated other comprehensive income | 25,024 |
|
31,328 |
|
|||
| Retained earnings | 820,407 |
|
736,852 |
|
|||
| Total stockholders' equity | 1,122,812 |
|
1,053,001 |
|
|||
| Total liabilities and stockholders' equity | $ | 2,541,281 |
|
$ | 2,542,616 |
|
|
1 Balances at June 30, 2024 and December 31, 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 |
||||||||||
|
June 30, |
|
March 31, |
|
June 30, |
||||||
|
2024 |
|
2024 |
|
2023 |
||||||
| Beginning AUM | $ | 170,342 |
|
$ | 161,322 |
|
$ | 153,356 |
|
||
| Beginning other assets1 | 5,117 |
|
5,289 |
|
5,265 |
|
|||||
| Beginning total client assets | 175,459 |
|
166,611 |
|
158,621 |
|
|||||
| AUM net cash flows | (1,744 |
) |
(1,127 |
) |
(1,426 |
) |
|||||
| Other assets net cash flows | 18 |
|
(524 |
) |
(996 |
) |
|||||
| Total client assets net cash flows | (1,727 |
) |
(1,651 |
) |
(2,422 |
) |
|||||
| AUM market appreciation (depreciation) | 83 |
|
10,178 |
|
5,346 |
|
|||||
| Other assets market appreciation (depreciation) | (40 |
) |
352 |
|
192 |
|
|||||
| Total client assets market appreciation (depreciation) | 43 |
|
10,529 |
|
5,537 |
|
|||||
| AUM realizations and distributions | — |
|
— |
|
(73 |
) |
|||||
| Acquired & divested assets / Net transfers | (1 |
) |
(31 |
) |
(41 |
) |
|||||
| Ending AUM | 168,681 |
|
170,342 |
|
157,161 |
|
|||||
| Ending other assets | 5,094 |
|
5,117 |
|
4,461 |
|
|||||
| Ending total client assets | 173,775 |
|
175,459 |
|
161,622 |
|
|||||
| Average total client assets2 | 172,392 |
|
168,865 |
|
157,372 |
|
|||||
For the Six Months Ended |
|||||||||||
June 30, |
|
June 30, |
|||||||||
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 | (2,871 |
) |
(2,576 |
) |
|||||||
| Other assets net cash flows | (506 |
) |
(1,091 |
) |
|||||||
| Total client assets net cash flows | (3,377 |
) |
(3,667 |
) |
|||||||
| AUM market appreciation (depreciation) | 10,261 |
|
12,089 |
|
|||||||
| Other assets market appreciation (depreciation) | 311 |
|
362 |
|
|||||||
| Total client assets market appreciation (depreciation) | 10,572 |
|
12,451 |
|
|||||||
| AUM realizations and distributions | — |
|
(73 |
) |
|||||||
| Acquired & divested assets / Net transfers | (31 |
) |
(42 |
) |
|||||||
| Ending AUM | 168,681 |
|
157,161 |
|
|||||||
| Ending other assets | 5,094 |
|
4,461 |
|
|||||||
| Ending total client assets | 173,775 |
|
161,622 |
|
|||||||
| Average total client assets3 | 170,629 |
|
157,595 |
|
|||||||
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 June 30, 2024, March 31, 2024 and June 30, 2023 total client assets revenue realization was 51.2 basis points, 51.4 basis points and 52.1 basis points, respectively. |
|||||||||||
3 For the six-month periods ending June 30, 2024 and 2023 total client assets revenue realization was 51.3 basis points and 51.9 basis points, respectively. |
|||||||||||
|
|||||||||||
Victory Capital Holdings, Inc. and Subsidiaries |
|||||||||||
Total Assets Under Management1 |
|||||||||||
(unaudited; in millions except for percentages) |
|||||||||||
|
|
||||||||||
|
For the Three Months Ended |
||||||||||
|
June 30, |
|
March 31, |
|
June 30, |
||||||
|
2024 |
|
2024 |
|
2023 |
||||||
| Beginning assets under management | $ | 170,342 |
|
$ | 161,322 |
|
$ | 153,356 |
|
||
| Gross client cash inflows | 6,067 |
|
7,187 |
|
5,722 |
|
|||||
| Gross client cash outflows | (7,812 |
) |
(8,314 |
) |
(7,148 |
) |
|||||
| Net client cash flows | (1,744 |
) |
(1,127 |
) |
(1,426 |
) |
|||||
| Market appreciation (depreciation) | 83 |
|
10,178 |
|
5,346 |
|
|||||
| Realizations and distributions | — |
|
— |
|
(73 |
) |
|||||
| Acquired & divested assets / Net Transfers | (1 |
) |
(31 |
) |
(41 |
) |
|||||
| Ending assets under management | 168,681 |
|
170,342 |
|
157,161 |
|
|||||
| Average assets under management | 167,484 |
|
163,533 |
|
152,925 |
|
|||||
For the Six Months Ended |
|||||||||||
June 30, |
|
June 30, |
|||||||||
2024 |
|
2023 |
|||||||||
| Beginning assets under management | $ | 161,322 |
|
$ | 147,762 |
|
|||||
| Gross client cash inflows | 13,255 |
|
11,811 |
|
|||||||
| Gross client cash outflows | (16,126 |
) |
(14,386 |
) |
|||||||
| Net client cash flows | (2,871 |
) |
(2,576 |
) |
|||||||
| Market appreciation (depreciation) | 10,261 |
|
12,089 |
|
|||||||
| Realizations and distributions | — |
|
(73 |
) |
|||||||
| Acquired assets / Net transfers | (31 |
) |
(42 |
) |
|||||||
| Ending assets under management | 168,681 |
|
157,161 |
|
|||||||
| Average assets under management | 165,508 |
|
152,729 |
|
|||||||
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 |
||||||||||
|
June 30, |
|
March 31, |
|
June 30, |
||||||
|
2024 |
|
2024 |
|
2023 |
||||||
| Beginning other assets (institutional) | $ | 5,117 |
|
$ | 5,289 |
|
$ | 5,265 |
|
||
| Gross client cash inflows | 467 |
|
— |
|
100 |
|
|||||
| Gross client cash outflows | (449 |
) |
(524 |
) |
(1,096 |
) |
|||||
| Net client cash flows | 18 |
|
(524 |
) |
(996 |
) |
|||||
| Market appreciation (depreciation) | (40 |
) |
352 |
|
192 |
|
|||||
| Realizations and distributions | — |
|
— |
|
— |
|
|||||
| Acquired & divested assets / Net transfers | — |
|
— |
|
— |
|
|||||
| Ending other assets (institutional) | 5,094 |
|
5,117 |
|
4,461 |
|
|||||
| Average other assets (institutional)2 | 4,909 |
|
5,332 |
|
4,447 |
|
|||||
For the Six Months Ended |
|||||||||||
June 30, |
|
June 30, |
|||||||||
2024 |
|
2023 |
|||||||||
| Beginning other assets (institutional) | $ | 5,289 |
|
$ | 5,190 |
|
|||||
| Gross client cash inflows | 467 |
|
100 |
|
|||||||
| Gross client cash outflows | (973 |
) |
(1,191 |
) |
|||||||
| Net client cash flows | (506 |
) |
(1,091 |
) |
|||||||
| Market appreciation (depreciation) | 311 |
|
362 |
|
|||||||
| Realizations and distributions | — |
|
— |
|
|||||||
| Acquired & divested assets / Net transfers | — |
|
— |
|
|||||||
| Ending other assets (institutional) | 5,094 |
|
4,461 |
|
|||||||
| Average other assets (institutional)3 | 5,120 |
|
4,866 |
|
|||||||
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 June 30, 2024, March 31, 2024 and June 30, 2023 total other assets (institutional) revenue realization was 3.4 basis points, 3.5 basis points and 3.6 basis points, respectively. |
|||||||||||
3 For the six-month periods ending June 30, 2024 and 2023 total other assets (institutional) revenue realization was 3.5 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 |
||||||||||||||||||||
| June 30, 2024 | |||||||||||||||||||||||||||||||||||||||
| Beginning assets under management | $ | 32,918 |
|
$ | 16,297 |
|
$ | 24,481 |
|
$ | 13,895 |
|
$ | 18,200 |
|
$ | 57,833 |
|
$ | 3,465 |
|
$ | 167,089 |
|
$ | 3,253 |
|
$ | 170,342 |
|
|||||||||
| Gross client cash inflows | 1,007 |
|
559 |
|
1,283 |
|
67 |
|
558 |
|
2,035 |
|
303 |
|
5,813 |
|
255 |
|
6,067 |
|
|||||||||||||||||||
| Gross client cash outflows | (1,659 |
) |
(778 |
) |
(1,508 |
) |
(309 |
) |
(635 |
) |
(2,184 |
) |
(442 |
) |
(7,514 |
) |
(298 |
) |
(7,812 |
) |
|||||||||||||||||||
| Net client cash flows | (652 |
) |
(218 |
) |
(225 |
) |
(241 |
) |
(77 |
) |
(150 |
) |
(139 |
) |
(1,701 |
) |
(43 |
) |
(1,744 |
) |
|||||||||||||||||||
| Market appreciation (depreciation) | (1,247 |
) |
(893 |
) |
116 |
|
350 |
|
367 |
|
1,273 |
|
58 |
|
24 |
|
60 |
|
83 |
|
|||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||||||||||
| Acquired assets / Net transfers | (4 |
) |
(4 |
) |
26 |
|
(21 |
) |
(32 |
) |
(21 |
) |
6 |
|
(50 |
) |
50 |
|
(1 |
) |
|||||||||||||||||||
| Ending assets under management | $ | 31,015 |
|
$ | 15,182 |
|
$ | 24,398 |
|
$ | 13,983 |
|
$ | 18,459 |
|
$ | 58,936 |
|
$ | 3,390 |
|
$ | 165,362 |
|
$ | 3,320 |
|
$ | 168,681 |
|
|||||||||
| March 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 | 1,371 |
|
507 |
|
1,298 |
|
68 |
|
1,090 |
|
2,165 |
|
452 |
|
6,952 |
|
236 |
|
7,187 |
|
|||||||||||||||||||
| Gross client cash outflows | (1,845 |
) |
(925 |
) |
(1,367 |
) |
(332 |
) |
(751 |
) |
(2,410 |
) |
(349 |
) |
(7,980 |
) |
(335 |
) |
(8,314 |
) |
|||||||||||||||||||
| Net client cash flows | (474 |
) |
(418 |
) |
(69 |
) |
(264 |
) |
339 |
|
(245 |
) |
103 |
|
(1,028 |
) |
(99 |
) |
(1,127 |
) |
|||||||||||||||||||
| Market appreciation (depreciation) | 2,795 |
|
801 |
|
176 |
|
1,555 |
|
1,133 |
|
3,749 |
|
(75 |
) |
10,135 |
|
42 |
|
10,178 |
|
|||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||||||||||
| Acquired assets / Net transfers | (7 |
) |
(45 |
) |
18 |
|
(31 |
) |
(44 |
) |
33 |
|
5 |
|
(69 |
) |
38 |
|
(31 |
) |
|||||||||||||||||||
| Ending assets under management | $ | 32,918 |
|
$ | 16,297 |
|
$ | 24,481 |
|
$ | 13,895 |
|
$ | 18,200 |
|
$ | 57,833 |
|
$ | 3,465 |
|
$ | 167,089 |
|
$ | 3,253 |
|
$ | 170,342 |
|
|||||||||
| June 30, 2023 | |||||||||||||||||||||||||||||||||||||||
| Beginning assets under management | $ | 29,035 |
|
$ | 15,648 |
|
$ | 26,535 |
|
$ | 11,425 |
|
$ | 14,868 |
|
$ | 49,151 |
|
$ | 3,317 |
|
$ | 149,979 |
|
$ | 3,377 |
|
$ | 153,356 |
|
|||||||||
| Gross client cash inflows | 1,259 |
|
743 |
|
873 |
|
87 |
|
559 |
|
1,522 |
|
449 |
|
5,491 |
|
231 |
|
5,722 |
|
|||||||||||||||||||
| Gross client cash outflows | (1,126 |
) |
(1,128 |
) |
(1,324 |
) |
(290 |
) |
(585 |
) |
(1,738 |
) |
(408 |
) |
(6,601 |
) |
(547 |
) |
(7,148 |
) |
|||||||||||||||||||
| Net client cash flows | 132 |
|
(386 |
) |
(451 |
) |
(204 |
) |
(26 |
) |
(216 |
) |
41 |
|
(1,110 |
) |
(316 |
) |
(1,426 |
) |
|||||||||||||||||||
| Market appreciation (depreciation) | 824 |
|
404 |
|
48 |
|
954 |
|
575 |
|
2,490 |
|
12 |
|
5,307 |
|
38 |
|
5,346 |
|
|||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(73 |
) |
(73 |
) |
— |
|
(73 |
) |
|||||||||||||||||||
| Acquired assets / Net transfers | 16 |
|
(2 |
) |
(34 |
) |
(4 |
) |
(25 |
) |
(49 |
) |
4 |
|
(95 |
) |
53 |
|
(41 |
) |
|||||||||||||||||||
| Ending assets under management | $ | 30,007 |
|
$ | 15,664 |
|
$ | 26,098 |
|
$ | 12,170 |
|
$ | 15,392 |
|
$ | 51,375 |
|
$ | 3,301 |
|
$ | 154,009 |
|
$ | 3,152 |
|
$ | 157,161 |
|
|||||||||
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 |
|||||||||||||||||||||||||||||||||||||||
Assets Under Management by Asset Class |
|||||||||||||||||||||||||||||||||||||||
(unaudited; in millions) |
|||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||
| For the Six 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 |
||||||||||||||||||||
| June 30, 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 | 2,378 |
|
1,066 |
|
2,581 |
|
136 |
|
1,648 |
|
4,200 |
|
755 |
|
12,764 |
|
491 |
|
13,255 |
|
|||||||||||||||||||
| Gross client cash outflows | (3,504 |
) |
(1,703 |
) |
(2,874 |
) |
(641 |
) |
(1,386 |
) |
(4,595 |
) |
(791 |
) |
(15,493 |
) |
(632 |
) |
(16,126 |
) |
|||||||||||||||||||
| Net client cash flows | (1,126 |
) |
(637 |
) |
(294 |
) |
(505 |
) |
262 |
|
(394 |
) |
(36 |
) |
(2,729 |
) |
(142 |
) |
(2,871 |
) |
|||||||||||||||||||
| Market appreciation (depreciation) | 1,548 |
|
(92 |
) |
292 |
|
1,905 |
|
1,501 |
|
5,022 |
|
(17 |
) |
10,159 |
|
102 |
|
10,261 |
|
|||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||||||||||||||
| Acquired assets / Net transfers | (11 |
) |
(49 |
) |
44 |
|
(51 |
) |
(76 |
) |
12 |
|
11 |
|
(119 |
) |
88 |
|
(31 |
) |
|||||||||||||||||||
| Ending assets under management | $ | 31,015 |
|
$ | 15,182 |
|
$ | 24,398 |
|
$ | 13,983 |
|
$ | 18,459 |
|
$ | 58,936 |
|
$ | 3,390 |
|
$ | 165,362 |
|
$ | 3,320 |
|
$ | 168,681 |
|
|||||||||
| June 30, 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 | 2,858 |
|
1,728 |
|
2,060 |
|
170 |
|
936 |
|
2,739 |
|
846 |
|
11,339 |
|
472 |
|
11,811 |
|
|||||||||||||||||||
| Gross client cash outflows | (2,219 |
) |
(2,001 |
) |
(2,896 |
) |
(675 |
) |
(1,129 |
) |
(3,421 |
) |
(1,248 |
) |
(13,589 |
) |
(797 |
) |
(14,386 |
) |
|||||||||||||||||||
| Net client cash flows | 640 |
|
(273 |
) |
(836 |
) |
(504 |
) |
(192 |
) |
(683 |
) |
(403 |
) |
(2,250 |
) |
(325 |
) |
(2,576 |
) |
|||||||||||||||||||
| Market appreciation (depreciation) | 1,461 |
|
827 |
|
663 |
|
1,775 |
|
1,495 |
|
5,687 |
|
108 |
|
12,017 |
|
72 |
|
12,089 |
|
|||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(73 |
) |
(73 |
) |
— |
|
(73 |
) |
|||||||||||||||||||
| Acquired assets / Net transfers | 15 |
|
7 |
|
(82 |
) |
(74 |
) |
(71 |
) |
55 |
|
6 |
|
(144 |
) |
103 |
|
(42 |
) |
|||||||||||||||||||
| Ending assets under management | $ | 30,007 |
|
$ | 15,664 |
|
$ | 26,098 |
|
$ | 12,170 |
|
$ | 15,392 |
|
$ | 51,375 |
|
$ | 3,301 |
|
$ | 154,009 |
|
$ | 3,152 |
|
$ | 157,161 |
|
|||||||||
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 |
|||||||||||||||
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 |
||||||||
| June 30, 2024 | |||||||||||||||
| Beginning assets under management | $ | 113,897 |
|
$ | 5,229 |
|
$ | 51,217 |
|
$ | 170,342 |
|
|||
| Gross client cash inflows | 3,553 |
|
480 |
|
2,034 |
|
6,067 |
|
|||||||
| Gross client cash outflows | (5,061 |
) |
(178 |
) |
(2,573 |
) |
(7,812 |
) |
|||||||
| Net client cash flows | (1,508 |
) |
302 |
|
(539 |
) |
(1,744 |
) |
|||||||
| Market appreciation (depreciation) | 385 |
|
(91 |
) |
(211 |
) |
83 |
|
|||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
|||||||
| Acquired assets / Net transfers | (190 |
) |
— |
|
190 |
|
(1 |
) |
|||||||
| Ending assets under management | $ | 112,584 |
|
$ | 5,440 |
|
$ | 50,657 |
|
$ | 168,681 |
|
|||
| March 31, 2024 | |||||||||||||||
| Beginning assets under management | $ | 108,802 |
|
$ | 4,970 |
|
$ | 47,551 |
|
$ | 161,322 |
|
|||
| Gross client cash inflows | 4,303 |
|
451 |
|
2,434 |
|
7,187 |
|
|||||||
| Gross client cash outflows | (5,956 |
) |
(449 |
) |
(1,909 |
) |
(8,314 |
) |
|||||||
| Net client cash flows | (1,653 |
) |
2 |
|
525 |
|
(1,127 |
) |
|||||||
| Market appreciation (depreciation) | 6,796 |
|
215 |
|
3,167 |
|
10,178 |
|
|||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
|||||||
| Acquired assets / Net transfers | (48 |
) |
43 |
|
(26 |
) |
(31 |
) |
|||||||
| Ending assets under management | $ | 113,897 |
|
$ | 5,229 |
|
$ | 51,217 |
|
$ | 170,342 |
|
|||
| June 30, 2023 | |||||||||||||||
| Beginning assets under management | $ | 103,246 |
|
$ | 5,555 |
|
$ | 44,554 |
|
$ | 153,356 |
|
|||
| Gross client cash inflows | 3,639 |
|
175 |
|
1,908 |
|
5,722 |
|
|||||||
| Gross client cash outflows | (4,863 |
) |
(421 |
) |
(1,864 |
) |
(7,148 |
) |
|||||||
| Net client cash flows | (1,224 |
) |
(246 |
) |
44 |
|
(1,426 |
) |
|||||||
| Market appreciation (depreciation) | 3,923 |
|
(117 |
) |
1,540 |
|
5,346 |
|
|||||||
| Realizations and distributions | — |
|
— |
|
(73 |
) |
(73 |
) |
|||||||
| Acquired assets / Net transfers | (28 |
) |
— |
|
(13 |
) |
(41 |
) |
|||||||
| Ending assets under management | $ | 105,916 |
|
$ | 5,193 |
|
$ | 46,052 |
|
$ | 157,161 |
|
|||
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 Six Months Ended | By Vehicle |
||||||||||||||
|
|
|
|
|
|
|
Separate |
|
|
|
|||||
|
|
|
|
|
|
|
Accounts |
|
|
|
|||||
|
Mutual |
|
|
|
|
and Other |
|
|
|
||||||
|
Funds1 |
|
ETFs2 |
|
Vehicles3 |
|
Total |
||||||||
| June 30, 2024 | |||||||||||||||
| Beginning assets under management | $ | 108,802 |
|
$ | 4,970 |
|
$ | 47,551 |
|
$ | 161,322 |
|
|||
| Gross client cash inflows | 7,856 |
|
930 |
|
4,468 |
|
13,255 |
|
|||||||
| Gross client cash outflows | (11,017 |
) |
(627 |
) |
(4,482 |
) |
(16,126 |
) |
|||||||
| Net client cash flows | (3,161 |
) |
304 |
|
(14 |
) |
(2,871 |
) |
|||||||
| Market appreciation (depreciation) | 7,181 |
|
124 |
|
2,956 |
|
10,261 |
|
|||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
|||||||
| Acquired assets / Net transfers | (238 |
) |
43 |
|
164 |
|
(31 |
) |
|||||||
| Ending assets under management | $ | 112,584 |
|
$ | 5,440 |
|
$ | 50,657 |
|
$ | 168,681 |
|
|||
| June 30, 2023 | |||||||||||||||
| Beginning assets under management | $ | 99,447 |
|
$ | 5,627 |
|
$ | 42,688 |
|
$ | 147,762 |
|
|||
| Gross client cash inflows | 8,185 |
|
393 |
|
3,233 |
|
11,811 |
|
|||||||
| Gross client cash outflows | (10,269 |
) |
(655 |
) |
(3,463 |
) |
(14,386 |
) |
|||||||
| Net client cash flows | (2,084 |
) |
(262 |
) |
(230 |
) |
(2,576 |
) |
|||||||
| Market appreciation (depreciation) | 8,573 |
|
(164 |
) |
3,680 |
|
12,089 |
|
|||||||
| Realizations and distributions | — |
|
— |
|
(73 |
) |
(73 |
) |
|||||||
| Acquired assets / Net transfers4 | (19 |
) |
(9 |
) |
(13 |
) |
(42 |
) |
|||||||
| Ending assets under management | $ | 105,916 |
|
$ | 5,193 |
|
$ | 46,052 |
|
$ | 157,161 |
|
|||
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/20240808090434/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
What were Victory Capital's Q2 2024 earnings per share?
How did Victory Capital's AUM change in Q2 2024?
What was Victory Capital's revenue for Q2 2024?
How did Victory Capital's GAAP operating margin change in Q2 2024?
