Victory Capital Reports Strong Third Quarter Results and Record Earnings Per Share
Victory Capital (VCTR) reported strong Q3 2024 financial results with total client assets reaching $181.1 billion. The company achieved record quarterly adjusted earnings per diluted share of $1.35, with GAAP operating margin at 53.3% and adjusted EBITDA margin at 53.7%. Revenue increased 7.6% year-over-year to $225.6 million. The Board authorized a 7% increase in quarterly cash dividend to $0.44 per share. The company maintained strong investment performance with 73% and 77% of AUM outperforming benchmarks over 5- and 10-year periods, respectively. Integration work with Amundi continues, with anticipated closing in Q1 2025 and expected $100 million in annualized expense synergies.
Victory Capital (VCTR) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con il totale degli asset dei clienti che ha raggiunto i 181,1 miliardi di dollari. L'azienda ha registrato utili rettificati per azione diluita pari a 1,35 dollari, un margine operativo GAAP del 53,3% e un margine EBITDA rettificato del 53,7%. I ricavi sono aumentati del 7,6% rispetto all'anno precedente, arrivando a 225,6 milioni di dollari. Il Consiglio ha autorizzato un aumento del 7% del dividendo in contante trimestrale a 0,44 dollari per azione. L'azienda ha mantenuto una forte performance di investimento, con il 73% e il 77% degli AUM che hanno superato gli indici di riferimento nei periodi di 5 e 10 anni, rispettivamente. I lavori di integrazione con Amundi continuano, con una chiusura prevista per il primo trimestre del 2025 e sinergie di costo annuali attese per 100 milioni di dollari.
Victory Capital (VCTR) reportó sólidos resultados financieros en el tercer trimestre de 2024, con activos totales de clientes que alcanzan los 181,1 mil millones de dólares. La compañía logró un récord de ganancias ajustadas por acción diluida de $1,35, con un margen operativo GAAP del 53,3% y un margen EBITDA ajustado del 53,7%. Los ingresos aumentaron un 7,6% interanual, alcanzando los 225,6 millones de dólares. La Junta autorizó un aumento del 7% en el dividendo en efectivo trimestral a $0,44 por acción. La empresa mantuvo un fuerte rendimiento de inversión, con el 73% y el 77% de los AUM superando los índices de referencia durante períodos de 5 y 10 años, respectivamente. El trabajo de integración con Amundi continúa, con un cierre anticipado en el primer trimestre de 2025 y sinergias de gastos anuales esperadas de 100 millones de dólares.
Victory Capital (VCTR)는 2024년 3분기 강력한 재무 실적을 보고하며, 고객 자산 총액이 1,811억 달러에 달했습니다. 이 회사는 희석 주당 조정 수익률이 1.35달러에 달하고, GAAP 운영 마진은 53.3%, 조정된 EBITDA 마진은 53.7%를 기록했습니다. 수익은 전년 대비 7.6% 증가하여 2억 2,560만 달러에 이르렀습니다. 이사회는 분기 배당금을 0.44달러로 7% 인상하는 것을 승인했습니다. 이 회사는 5년 및 10년 기간에 각각 73% 및 77%의 AUM이 벤치마크를 초과하여 강력한 투자 성과를 유지했습니다. Amundi와의 통합 작업이 계속되고 있으며, 2025년 1분기 내 마무리가 예상되며 연간 1억 달러의 비용 시너지가 기대됩니다.
Victory Capital (VCTR) a rapporté de solides résultats financiers pour le troisième trimestre 2024, avec un total d'actifs clients atteignant 181,1 milliards de dollars. L'entreprise a atteint un niveau record de bénéfices ajustés par action diluée à 1,35 $, avec une marge opérationnelle GAAP de 53,3 % et une marge EBITDA ajustée de 53,7 %. Les revenus ont augmenté de 7,6 % par rapport à l'année précédente, atteignant 225,6 millions de dollars. Le Conseil a autorisé une augmentation de 7 % du dividende en espèces trimestriel à 0,44 $ par action. L'entreprise a maintenu de solides performances d'investissement, avec 73 % et 77 % des AUM surpassant les indices de référence sur des périodes de 5 et 10 ans, respectivement. Les travaux d'intégration avec Amundi se poursuivent, avec une clôture prévue au premier trimestre 2025 et des synergies de coûts annuelles attendues de 100 millions de dollars.
Victory Capital (VCTR) meldete starke Finanzzahlen für das 3. Quartal 2024, mit einem Gesamtvermögen von 181,1 Milliarden Dollar. Das Unternehmen erreichte einen Rekordwert bei den bereinigten Erträgen pro verwässerter Aktie von 1,35 $ sowie eine GAAP-Betriebsrunde von 53,3 % und eine bereinigte EBITDA-Marge von 53,7 %. Die Einnahmen stiegen im Jahresvergleich um 7,6 % auf 225,6 Millionen Dollar. Der Vorstand genehmigte eine Erhöhung der vierteljährlichen Bar-Dividende um 7 % auf 0,44 Dollar pro Aktie. Das Unternehmen hielt eine starke Investmentperformance aufrecht, wobei 73 % und 77 % der verwalteten Vermögen (AUM) die Benchmarks über einen Zeitraum von 5 bzw. 10 Jahren übertrafen. Die Integrationsarbeiten mit Amundi gehen weiter, mit einem voraussichtlichen Abschluss im 1. Quartal 2025 und erwarteten jährlichen Kostensynergien von 100 Millionen Dollar.
- Record quarterly adjusted earnings per diluted share of $1.35
- Revenue increased 7.6% YoY to $225.6 million
- GAAP operating margin expanded to 53.3% from 38.2% YoY
- Adjusted EBITDA increased 13.1% YoY to $121.3 million
- Board approved 7% dividend increase to $0.44 per share
- Strong investment performance with 73% of AUM outperforming 5-year benchmarks
- Net outflows of $2.6 billion in Q3 2024
- Long-term net flows remained negative at ($2.6) billion
- Total debt outstanding of $992 million as of September 30, 2024
Insights
Victory Capital delivered an impressive Q3 performance with several record-breaking metrics. Revenue grew 7.6% year-over-year to
Key positives include strong cash position of
Investment performance metrics are solid, with
Third-Quarter Highlights
-
Total Client Assets of
$181.1 billion -
Long-term gross flows of
$5.9 billion -
Long-term net flows of
( $2.6) billion -
GAAP operating margin of
53.3% -
GAAP net income per diluted share of
$1.24 -
Adjusted EBITDA margin of
53.7% -
Adjusted net income with tax benefit per diluted share of
$1.35 -
Board authorizes an
7% increase in regular quarterly cash dividend to$0.44
“During the third quarter, we made excellent progress toward closing the Amundi transaction,” said David Brown, Chairman and Chief Executive Officer. “We reached a formal agreement early in the quarter and, in October, our shareholders approved all proxy proposals on the ballot at our Special Meeting of Stockholders.
“Integration work is proceeding, and we are working with Amundi’s non-
“Our business performance was strong through the first nine months of 2024. In the third quarter, we achieved the highest quarterly adjusted earnings per diluted share with tax benefit, adjusted EBITDA, and adjusted EBITDA margin in the history of our firm. Through the end of September, the percentage of our AUM outperforming benchmarks over the respective 3-, 5-, and 10-year periods was
“Cash on the balance sheet was
“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 Nine Months Ended | |||||||||||||||||||
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
| Assets Under Management1 | ||||||||||||||||||||
| Ending | $ | 176,113 |
|
$ | 168,681 |
|
$ | 148,879 |
|
$ | 176,113 |
|
$ | 148,879 |
|
|||||
| Average | 171,876 |
|
167,484 |
|
156,491 |
|
167,631 |
|
153,983 |
|
||||||||||
| AUM Long-term Flows2 | ||||||||||||||||||||
| Long-term Gross | $ | 5,876 |
|
$ | 5,813 |
|
$ | 4,955 |
|
$ | 18,640 |
|
$ | 16,294 |
|
|||||
| Long-term Net | (2,631 |
) |
(1,701 |
) |
(2,000 |
) |
(5,361 |
) |
(4,250 |
) |
||||||||||
| AUM Money Market/Short-term Flows | ||||||||||||||||||||
| Money Market / Short-term Gross | $ | 244 |
|
$ | 255 |
|
$ | 193 |
|
$ | 734 |
|
$ | 666 |
|
|||||
| Money Market / Short-term Net | (5 |
) |
(43 |
) |
(19 |
) |
(147 |
) |
(345 |
) |
||||||||||
| AUM Total Flows | ||||||||||||||||||||
| Total Gross | $ | 6,120 |
|
$ | 6,067 |
|
$ | 5,149 |
|
$ | 19,375 |
|
$ | 16,959 |
|
|||||
| Total Net | (2,636 |
) |
(1,744 |
) |
(2,019 |
) |
(5,508 |
) |
(4,595 |
) |
||||||||||
| Consolidated Financial Results (GAAP) | ||||||||||||||||||||
| Revenue | $ | 225.6 |
|
$ | 219.6 |
|
$ | 209.7 |
|
$ | 661.1 |
|
$ | 615.2 |
|
|||||
| AUM revenue realization (in bps) | 52.1 |
|
52.6 |
|
53.1 |
|
52.6 |
|
53.3 |
|
||||||||||
| Operating expenses | 105.3 |
|
109.0 |
|
129.6 |
|
345.3 |
|
373.1 |
|
||||||||||
| Income from operations | 120.4 |
|
110.6 |
|
80.0 |
|
315.8 |
|
242.1 |
|
||||||||||
| Operating margin | 53.3 |
% |
50.4 |
% |
38.2 |
% |
47.8 |
% |
39.4 |
% |
||||||||||
| Net income | 82.0 |
|
74.3 |
|
52.0 |
|
211.9 |
|
158.0 |
|
||||||||||
| Earnings per diluted share | $ | 1.24 |
|
$ | 1.12 |
|
$ | 0.77 |
|
$ | 3.21 |
|
$ | 2.30 |
|
|||||
| Cash flow from operations | 99.8 |
|
79.7 |
|
91.6 |
|
248.2 |
|
233.2 |
|
||||||||||
| Adjusted Performance Results (Non-GAAP)3 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 121.3 |
|
$ | 116.5 |
|
$ | 107.2 |
|
$ | 350.1 |
|
$ | 310.4 |
|
|||||
| Adjusted EBITDA margin | 53.7 |
% |
53.0 |
% |
51.1 |
% |
53.0 |
% |
50.5 |
% |
||||||||||
| Adjusted net income | 78.9 |
|
76.5 |
|
70.3 |
|
228.0 |
|
202.3 |
|
||||||||||
| Tax benefit of goodwill and acquired intangible assets | 10.1 |
|
10.1 |
|
9.5 |
|
30.0 |
|
28.6 |
|
||||||||||
| Adjusted net income with tax benefit | 89.0 |
|
86.6 |
|
79.8 |
|
258.0 |
|
230.9 |
|
||||||||||
| Adjusted net income with tax benefit per diluted share | $ | 1.35 |
|
$ | 1.31 |
|
$ | 1.18 |
|
$ | 3.91 |
|
$ | 3.36 |
|
|||||
| _____________________________________________________ | ||||||||||||||||||||
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 September 30, 2024, Victory Capital had total client assets of
As of September 30, 2024, Victory Capital offered 126 investment strategies through its 11 autonomous Investment Franchises and Solutions Platform. The table below presents outperformance against benchmarks by AUM as of September 30, 2024.
| Percentage of AUM Outperforming Benchmark | ||||||
| Trailing | Trailing | Trailing | Trailing | |||
| 1-Year | 3-Years | 5-Years | 10-Years | |||
|
|
|
|
|
|
|
Third Quarter 2024 Compared with Second Quarter 2024
Revenue increased
Adjusted net income with tax benefit increased
Third Quarter 2024 Compared with Third Quarter 2023
Revenue for the three months ended September 30, 2024, increased
Operating expenses decreased
Adjusted net income with tax benefit increased
Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023
Revenue for the nine months ended September 30, 2024, increased
Operating expenses decreased
Adjusted net income with tax benefit increased
Balance Sheet / Capital Management
The total debt outstanding as of September 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, November 8, 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.
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 Nine Months Ended |
||||||||||||||||||
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
| Revenue | ||||||||||||||||||||
| Investment management fees | $ | 177,809 |
|
$ | 173,163 |
|
$ | 163,953 |
|
$ | 520,757 |
|
$ | 480,199 |
|
|||||
| Fund administration and distribution fees | 47,819 |
|
46,458 |
|
45,735 |
|
140,349 |
|
135,035 |
|
||||||||||
| Total revenue | 225,628 |
|
219,621 |
|
209,688 |
|
661,106 |
|
615,234 |
|
||||||||||
| Expenses | ||||||||||||||||||||
| Personnel compensation and benefits | 43,243 |
|
55,660 |
|
54,501 |
|
158,357 |
|
167,043 |
|
||||||||||
| Distribution and other asset-based expenses | 36,828 |
|
36,474 |
|
38,160 |
|
109,565 |
|
113,158 |
|
||||||||||
| General and administrative | 14,029 |
|
14,385 |
|
13,947 |
|
42,426 |
|
39,585 |
|
||||||||||
| Depreciation and amortization | 7,510 |
|
7,551 |
|
12,333 |
|
22,662 |
|
33,663 |
|
||||||||||
| Change in value of consideration payable for acquisition of business | (1,600 |
) |
(8,200 |
) |
10,336 |
|
2,400 |
|
19,236 |
|
||||||||||
| Acquisition-related costs | 5,075 |
|
3,049 |
|
116 |
|
9,150 |
|
134 |
|
||||||||||
| Restructuring and integration costs | 180 |
|
105 |
|
246 |
|
777 |
|
275 |
|
||||||||||
| Total operating expenses | 105,265 |
|
109,024 |
|
129,639 |
|
345,337 |
|
373,094 |
|
||||||||||
| Income from operations | 120,363 |
|
110,597 |
|
80,049 |
|
315,769 |
|
242,140 |
|
||||||||||
| Operating margin | 53.3 |
% |
50.4 |
% |
38.2 |
% |
47.8 |
% |
39.4 |
% |
||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest income and other income (expense) | 3,551 |
|
1,557 |
|
1,452 |
|
8,673 |
|
4,967 |
|
||||||||||
| Interest expense and other financing costs | (16,414 |
) |
(16,279 |
) |
(15,580 |
) |
(49,179 |
) |
(44,721 |
) |
||||||||||
| Loss on debt extinguishment | — |
|
(100 |
) |
— |
|
(100 |
) |
— |
|
||||||||||
| Total other expense, net | (12,863 |
) |
(14,822 |
) |
(14,128 |
) |
(40,606 |
) |
(39,754 |
) |
||||||||||
| Income before income taxes | 107,500 |
|
95,775 |
|
65,921 |
|
275,163 |
|
202,386 |
|
||||||||||
| Income tax expense | (25,517 |
) |
(21,524 |
) |
(13,914 |
) |
(63,238 |
) |
(44,435 |
) |
||||||||||
| Net income | $ | 81,983 |
|
$ | 74,251 |
|
$ | 52,007 |
|
$ | 211,925 |
|
$ | 157,951 |
|
|||||
| Earnings per share of common stock | ||||||||||||||||||||
| Basic | $ | 1.26 |
|
$ | 1.15 |
|
$ | 0.79 |
|
$ | 3.28 |
|
$ | 2.38 |
|
|||||
| Diluted | 1.24 |
|
1.12 |
|
0.77 |
|
3.21 |
|
2.30 |
|
||||||||||
| Weighted average number of shares outstanding | ||||||||||||||||||||
| Basic | 64,875 |
|
64,734 |
|
65,774 |
|
64,667 |
|
66,504 |
|
||||||||||
| Diluted | 66,057 |
|
66,075 |
|
67,676 |
|
66,044 |
|
68,636 |
|
||||||||||
| Dividends declared per share | $ | 0.41 |
|
$ | 0.37 |
|
$ | 0.32 |
|
$ | 1.115 |
|
$ | 0.96 |
|
|||||
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 Nine Months Ended | |||||||||||||||||||
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
| Net income (GAAP) | $ | 81,983 |
|
$ | 74,251 |
|
$ | 52,007 |
|
$ | 211,925 |
|
$ | 157,951 |
|
|||||
| Income tax expense | (25,517 |
) |
(21,524 |
) |
(13,914 |
) |
(63,238 |
) |
(44,435 |
) |
||||||||||
| Income before income taxes | $ | 107,500 |
|
$ | 95,775 |
|
$ | 65,921 |
|
$ | 275,163 |
|
$ | 202,386 |
|
|||||
| Interest expense | 15,649 |
|
15,468 |
|
14,660 |
|
46,828 |
|
42,288 |
|
||||||||||
| Depreciation | 2,210 |
|
2,252 |
|
2,302 |
|
6,731 |
|
6,569 |
|
||||||||||
| Other business taxes | 366 |
|
414 |
|
636 |
|
1,149 |
|
1,402 |
|
||||||||||
| Amortization of acquisition-related intangible assets | 5,300 |
|
5,299 |
|
10,032 |
|
15,931 |
|
27,094 |
|
||||||||||
| Stock-based compensation | 972 |
|
940 |
|
1,451 |
|
3,239 |
|
4,993 |
|
||||||||||
| Acquisition, restructuring and exit costs | (11,513 |
) |
(4,520 |
) |
11,463 |
|
(1,328 |
) |
23,396 |
|
||||||||||
| Debt issuance costs | 775 |
|
874 |
|
762 |
|
2,404 |
|
2,266 |
|
||||||||||
| Adjusted EBITDA | $ | 121,259 |
|
$ | 116,502 |
|
$ | 107,227 |
|
$ | 350,117 |
|
$ | 310,394 |
|
|||||
| Adjusted EBITDA margin | 53.7 |
% |
53.0 |
% |
51.1 |
% |
53.0 |
% |
50.5 |
% |
||||||||||
| Net income (GAAP) | $ | 81,983 |
|
$ | 74,251 |
|
$ | 52,007 |
|
$ | 211,925 |
|
$ | 157,951 |
|
|||||
| Adjustment to reflect the operating performance of the Company | ||||||||||||||||||||
| Other business taxes | 366 |
|
414 |
|
636 |
|
1,149 |
|
1,402 |
|
||||||||||
| Amortization of acquisition-related intangible assets | 5,300 |
|
5,299 |
|
10,032 |
|
15,931 |
|
27,094 |
|
||||||||||
| Stock-based compensation | 972 |
|
940 |
|
1,451 |
|
3,239 |
|
4,993 |
|
||||||||||
| Acquisition, restructuring and exit costs | (11,513 |
) |
(4,520 |
) |
11,463 |
|
(1,328 |
) |
23,396 |
|
||||||||||
| Debt issuance costs | 775 |
|
874 |
|
762 |
|
2,404 |
|
2,266 |
|
||||||||||
| Tax effect of above adjustments | 1,025 |
|
(753 |
) |
(6,085 |
) |
(5,349 |
) |
(14,786 |
) |
||||||||||
| Adjusted net income | $ | 78,908 |
|
$ | 76,505 |
|
$ | 70,266 |
|
$ | 227,971 |
|
$ | 202,316 |
|
|||||
| Adjusted net income per diluted share | $ | 1.19 |
|
$ | 1.16 |
|
$ | 1.04 |
|
$ | 3.45 |
|
$ | 2.95 |
|
|||||
| Tax benefit of goodwill and acquired intangible assets | $ | 10,141 |
|
$ | 10,141 |
|
$ | 9,536 |
|
$ | 30,030 |
|
$ | 28,597 |
|
|||||
| Tax benefit of goodwill and acquired intangible assets per diluted share | $ | 0.15 |
|
$ | 0.15 |
|
$ | 0.14 |
|
$ | 0.45 |
|
$ | 0.42 |
|
|||||
| Adjusted net income with tax benefit | $ | 89,049 |
|
$ | 86,646 |
|
$ | 79,802 |
|
$ | 258,001 |
|
$ | 230,913 |
|
|||||
| Adjusted net income with tax benefit per diluted share | $ | 1.35 |
|
$ | 1.31 |
|
$ | 1.18 |
|
$ | 3.91 |
|
$ | 3.36 |
|
|||||
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) |
||||||
| September 30, 2024 | December 31, 2023 | |||||
| Assets | ||||||
| Cash and cash equivalents | $ | 188,248 |
$ | 123,547 |
||
| Receivables | 96,922 |
87,570 |
||||
| Prepaid expenses | 7,932 |
5,785 |
||||
| Investments, at fair value | 34,743 |
31,808 |
||||
| Property and equipment, net | 13,720 |
19,578 |
||||
| Goodwill | 981,805 |
981,805 |
||||
| Other intangible assets, net | 1,265,901 |
1,281,832 |
||||
| Other assets | 22,854 |
10,691 |
||||
| Total assets | $ | 2,612,125 |
$ | 2,542,616 |
||
| Liabilities and stockholders' equity | ||||||
| Accounts payable and accrued expenses | $ | 61,256 |
$ | 56,477 |
||
| Accrued compensation and benefits | 45,595 |
55,456 |
||||
| Consideration payable for acquisition of business | 139,600 |
217,200 |
||||
| Deferred tax liability, net | 152,335 |
128,714 |
||||
| Other liabilities | 56,016 |
42,499 |
||||
| Long-term debt, net1 | 982,661 |
989,269 |
||||
| Total liabilities | 1,437,463 |
1,489,615 |
||||
| Stockholders' equity | ||||||
| Common stock, 2024 - 600,000,000 shares authorized, 83,679,920 shares issued and 64,924,081 shares outstanding; 2023 - 600,000,000 shares authorized, 82,404,305 shares issued and 64,254,714 shares outstanding |
837 |
824 |
||||
| Additional paid-in capital | 746,917 |
728,283 |
||||
| Treasury stock, at cost: 2024 - 18,755,839 shares; 2023 - 18,149,591 shares | (470,727) |
(444,286) |
||||
| Accumulated other comprehensive income | 21,955 |
31,328 |
||||
| Retained earnings | 875,680 |
736,852 |
||||
| Total stockholders' equity | 1,174,662 |
1,053,001 |
||||
| Total liabilities and stockholders' equity | $ | 2,612,125 |
$ | 2,542,616 |
||
1 Balances at September 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 | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
2024 |
|
2024 |
|
2023 |
||||||||
| Beginning AUM | $ | 168,681 |
|
$ | 170,342 |
|
$ | 157,161 |
|
|||
| Beginning other assets1 | 5,094 |
|
5,117 |
|
4,461 |
|
||||||
| Beginning total client assets | 173,775 |
|
175,459 |
|
161,622 |
|
||||||
| AUM net cash flows | (2,636 |
) |
(1,744 |
) |
(2,019 |
) |
||||||
| Other assets net cash flows | (446 |
) |
18 |
|
300 |
|
||||||
| Total client assets net cash flows | (3,082 |
) |
(1,727 |
) |
(1,719 |
) |
||||||
| AUM market appreciation (depreciation) | 10,076 |
|
83 |
|
(4,755 |
) |
||||||
| Other assets market appreciation (depreciation) | 333 |
|
(40 |
) |
(134 |
) |
||||||
| Total client assets market appreciation (depreciation) | 10,409 |
|
43 |
|
(4,888 |
) |
||||||
| AUM realizations and distributions | (2 |
) |
— |
|
— |
|
||||||
| Acquired & divested assets / Net transfers | (7 |
) |
(1 |
) |
(1,508 |
) |
||||||
| Ending AUM | 176,113 |
|
168,681 |
|
148,879 |
|
||||||
| Ending other assets | 4,981 |
|
5,094 |
|
4,627 |
|
||||||
| Ending total client assets | 181,094 |
|
173,775 |
|
153,506 |
|
||||||
| Average total client assets2 | 176,806 |
|
172,392 |
|
161,147 |
|
||||||
| For the Nine Months Ended | ||||||||||||
| September 30, | September 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 | (5,508 |
) |
(4,595 |
) |
||||||||
| Other assets net cash flows | (952 |
) |
(791 |
) |
||||||||
| Total client assets net cash flows | (6,460 |
) |
(5,386 |
) |
||||||||
| AUM market appreciation (depreciation) | 20,337 |
|
7,335 |
|
||||||||
| Other assets market appreciation (depreciation) | 644 |
|
228 |
|
||||||||
| Total client assets market appreciation (depreciation) | 20,982 |
|
7,563 |
|
||||||||
| AUM realizations and distributions | (2 |
) |
(73 |
) |
||||||||
| Acquired & divested assets / Net transfers | (38 |
) |
(1,549 |
) |
||||||||
| Ending AUM | 176,113 |
|
148,879 |
|
||||||||
| Ending other assets | 4,981 |
|
4,627 |
|
||||||||
| Ending total client assets | 181,094 |
|
153,506 |
|
||||||||
| Average total client assets3 | 172,688 |
|
158,779 |
|
||||||||
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 September 30, 2024, June 30, 2024 and September 30, 2023 total client assets revenue realization was 50.8 basis points, 51.2 basis points and 51.6 basis points, respectively. |
||||||||||||
3 For the nine-month periods ending September 30, 2024 and 2023 total client assets revenue realization was 51.1 basis points and 51.8 basis points, respectively. |
||||||||||||
Victory Capital Holdings, Inc. and Subsidiaries Total Assets Under Management1 (unaudited; in millions except for percentages) |
||||||||||||
September 30, |
|
June 30, |
|
September 30, |
||||||||
2024 |
|
2024 |
|
2023 |
||||||||
| Beginning assets under management | $ | 168,681 |
|
$ | 170,342 |
|
$ | 157,161 |
|
|||
| Gross client cash inflows | 6,120 |
|
6,067 |
|
5,149 |
|
||||||
| Gross client cash outflows | (8,756 |
) |
(7,812 |
) |
(7,168 |
) |
||||||
| Net client cash flows | (2,636 |
) |
(1,744 |
) |
(2,019 |
) |
||||||
| Market appreciation (depreciation) | 10,076 |
|
83 |
|
(4,755 |
) |
||||||
| Realizations and distributions | (2 |
) |
— |
|
— |
|
||||||
| Acquired & divested assets / Net Transfers | (7 |
) |
(1 |
) |
(1,508 |
) |
||||||
| Ending assets under management | 176,113 |
|
168,681 |
|
148,879 |
|
||||||
| Average assets under management | 171,876 |
|
167,484 |
|
156,491 |
|
||||||
| For the Nine Months Ended | ||||||||||||
September 30, |
|
September 30, |
||||||||||
2024 |
|
2023 |
||||||||||
| Beginning assets under management | $ | 161,322 |
|
$ | 147,762 |
|
||||||
| Gross client cash inflows | 19,375 |
|
16,959 |
|
||||||||
| Gross client cash outflows | (24,882 |
) |
(21,554 |
) |
||||||||
| Net client cash flows | (5,508 |
) |
(4,595 |
) |
||||||||
| Market appreciation (depreciation) | 20,337 |
|
7,335 |
|
||||||||
| Realizations and distributions | (2 |
) |
(73 |
) |
||||||||
| Acquired assets / Net transfers | (38 |
) |
(1,549 |
) |
||||||||
| Ending assets under management | 176,113 |
|
148,879 |
|
||||||||
| Average assets under management | 167,631 |
|
153,983 |
|
||||||||
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 | ||||||||||||
September 30, |
|
June 30, |
|
September 30, |
||||||||
2024 |
|
2024 |
|
2023 |
||||||||
| Beginning other assets (institutional) | $ | 5,094 |
|
$ | 5,117 |
|
$ | 4,461 |
|
|||
| Gross client cash inflows | — |
|
467 |
|
300 |
|
||||||
| Gross client cash outflows | (446 |
) |
(449 |
) |
— |
|
||||||
| Net client cash flows | (446 |
) |
18 |
|
300 |
|
||||||
| Market appreciation (depreciation) | 333 |
|
(40 |
) |
(134 |
) |
||||||
| Realizations and distributions | — |
|
— |
|
— |
|
||||||
| Acquired & divested assets / Net transfers | — |
|
— |
|
— |
|
||||||
| Ending other assets (institutional) | 4,981 |
|
5,094 |
|
4,627 |
|
||||||
| Average other assets (institutional)2 | 4,930 |
|
4,909 |
|
4,656 |
|
||||||
| For the Nine Months Ended | ||||||||||||
| September 30, | September 30, | |||||||||||
2024 |
2023 |
|||||||||||
| Beginning other assets (institutional) | $ | 5,289 |
|
$ | 5,190 |
|
||||||
| Gross client cash inflows | 467 |
|
400 |
|
||||||||
| Gross client cash outflows | (1,419 |
) |
(1,191 |
) |
||||||||
| Net client cash flows | (952 |
) |
(791 |
) |
||||||||
| Market appreciation (depreciation) | 644 |
|
228 |
|
||||||||
| Realizations and distributions | — |
|
— |
|
||||||||
| Acquired & divested assets / Net transfers | — |
|
— |
|
||||||||
| Ending other assets (institutional) | 4,981 |
|
4,627 |
|
||||||||
| Average other assets (institutional)3 | 5,057 |
|
4,796 |
|
||||||||
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 September 30, 2024, June 30, 2024 and September 30, 2023 total other assets (institutional) revenue realization was 3.4 basis points, 3.4 basis points and 3.6 basis points, respectively. |
||||||||||||
3 For the nine-month periods ending September 30, 2024 and 2023 total other assets (institutional) revenue realization was 3.5 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 |
||||||||||||||||||||||
| 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 |
|
||||||||||
| 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 |
|
||||||||||
| September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||
| Beginning assets under management | $ | 30,007 |
|
$ | 15,664 |
|
$ | 26,098 |
|
$ | 12,170 |
|
$ | 15,392 |
|
$ | 51,375 |
|
$ | 3,301 |
|
$ | 154,009 |
|
$ | 3,152 |
|
$ | 157,161 |
|
||||||||||
| Gross client cash inflows | 1,224 |
|
458 |
|
892 |
|
51 |
|
392 |
|
1,688 |
|
249 |
|
4,955 |
|
193 |
|
5,149 |
|
||||||||||||||||||||
| Gross client cash outflows | (1,769 |
) |
(920 |
) |
(1,343 |
) |
(282 |
) |
(519 |
) |
(1,720 |
) |
(402 |
) |
(6,955 |
) |
(213 |
) |
(7,168 |
) |
||||||||||||||||||||
| Net client cash flows | (545 |
) |
(462 |
) |
(451 |
) |
(231 |
) |
(126 |
) |
(32 |
) |
(153 |
) |
(2,000 |
) |
(19 |
) |
(2,019 |
) |
||||||||||||||||||||
| Market appreciation (depreciation) | (1,224 |
) |
(547 |
) |
(460 |
) |
(287 |
) |
(451 |
) |
(1,895 |
) |
71 |
|
(4,793 |
) |
39 |
|
(4,755 |
) |
||||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||||||||||||||||
| Acquired assets / Net transfers | (2 |
) |
(5 |
) |
(1,397 |
) |
(57 |
) |
(8 |
) |
(78 |
) |
3 |
|
(1,545 |
) |
37 |
|
(1,508 |
) |
||||||||||||||||||||
| Ending assets under management | $ | 28,235 |
|
$ | 14,650 |
|
$ | 23,790 |
|
$ | 11,596 |
|
$ | 14,807 |
|
$ | 49,371 |
|
$ | 3,222 |
|
$ | 145,671 |
|
$ | 3,208 |
|
$ | 148,879 |
|
||||||||||
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 Nine 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 |
||||||||||||||||||||||
| September 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 | 3,353 |
|
1,650 |
|
3,925 |
|
209 |
|
2,227 |
|
6,343 |
|
935 |
|
18,640 |
|
734 |
|
19,375 |
|
||||||||||||||||||||
| Gross client cash outflows | (5,804 |
) |
(2,980 |
) |
(4,514 |
) |
(1,127 |
) |
(1,871 |
) |
(6,472 |
) |
(1,234 |
) |
(24,001 |
) |
(881 |
) |
(24,882 |
) |
||||||||||||||||||||
| Net client cash flows | (2,451 |
) |
(1,330 |
) |
(589 |
) |
(918 |
) |
356 |
|
(129 |
) |
(299 |
) |
(5,361 |
) |
(147 |
) |
(5,508 |
) |
||||||||||||||||||||
| Market appreciation (depreciation) | 4,196 |
|
1,014 |
|
1,265 |
|
2,595 |
|
2,713 |
|
8,390 |
|
34 |
|
20,208 |
|
129 |
|
20,337 |
|
||||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(2 |
) |
(2 |
) |
— |
|
(2 |
) |
||||||||||||||||||||
| Acquired assets / Net transfers | (16 |
) |
(51 |
) |
50 |
|
(72 |
) |
(89 |
) |
(13 |
) |
14 |
|
(177 |
) |
139 |
|
(38 |
) |
||||||||||||||||||||
| Ending assets under management | $ | 32,333 |
|
$ | 15,591 |
|
$ | 25,081 |
|
$ | 14,239 |
|
$ | 19,752 |
|
$ | 62,544 |
|
$ | 3,178 |
|
$ | 172,720 |
|
$ | 3,393 |
|
$ | 176,113 |
|
||||||||||
| September 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 | 4,083 |
|
2,186 |
|
2,952 |
|
222 |
|
1,329 |
|
4,427 |
|
1,095 |
|
16,294 |
|
666 |
|
16,959 |
|
||||||||||||||||||||
| Gross client cash outflows | (3,988 |
) |
(2,921 |
) |
(4,239 |
) |
(957 |
) |
(1,648 |
) |
(5,141 |
) |
(1,650 |
) |
(20,544 |
) |
(1,010 |
) |
(21,554 |
) |
||||||||||||||||||||
| Net client cash flows | 95 |
|
(735 |
) |
(1,287 |
) |
(735 |
) |
(319 |
) |
(715 |
) |
(555 |
) |
(4,250 |
) |
(345 |
) |
(4,595 |
) |
||||||||||||||||||||
| Market appreciation (depreciation) | 237 |
|
280 |
|
203 |
|
1,488 |
|
1,044 |
|
3,792 |
|
180 |
|
7,224 |
|
111 |
|
7,335 |
|
||||||||||||||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(73 |
) |
(73 |
) |
— |
|
(73 |
) |
||||||||||||||||||||
| Acquired assets / Net transfers | 13 |
|
2 |
|
(1,479 |
) |
(130 |
) |
(79 |
) |
(23 |
) |
8 |
|
(1,689 |
) |
140 |
|
(1,549 |
) |
||||||||||||||||||||
| Ending assets under management | $ | 28,235 |
|
$ | 14,650 |
|
$ | 23,790 |
|
$ | 11,596 |
|
$ | 14,807 |
|
$ | 49,371 |
|
$ | 3,222 |
|
$ | 145,671 |
|
$ | 3,208 |
|
$ | 148,879 |
|
||||||||||
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 | |||||||||||||
| 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 |
|
||||
| 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 |
|
||||
| September 30, 2023 | ||||||||||||||||
| Beginning assets under management | $ | 105,916 |
|
$ | 5,193 |
|
$ | 46,052 |
|
$ | 157,161 |
|
||||
| Gross client cash inflows | 3,283 |
|
232 |
|
1,633 |
|
5,149 |
|
||||||||
| Gross client cash outflows | (5,119 |
) |
(557 |
) |
(1,492 |
) |
(7,168 |
) |
||||||||
| Net client cash flows | (1,836 |
) |
(324 |
) |
141 |
|
(2,019 |
) |
||||||||
| Market appreciation (depreciation) | (2,925 |
) |
(165 |
) |
(1,665 |
) |
(4,755 |
) |
||||||||
| Realizations and distributions | — |
|
— |
|
— |
|
— |
|
||||||||
| Acquired assets / Net transfers | (17 |
) |
6 |
|
(1,497 |
) |
(1,508 |
) |
||||||||
| Ending assets under management | $ | 101,138 |
|
$ | 4,710 |
|
$ | 43,031 |
|
$ | 148,879 |
|
||||
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 Nine Months Ended | By Vehicle | |||||||||||||||
| Separate | ||||||||||||||||
| Accounts | ||||||||||||||||
| Mutual | and Other | |||||||||||||||
| Funds1 | ETFs2 | Vehicles3 | Total | |||||||||||||
| September 30, 2024 | ||||||||||||||||
| Beginning assets under management | $ | 108,802 |
|
$ | 4,970 |
|
$ | 47,551 |
|
$ | 161,322 |
|
||||
| Gross client cash inflows | 11,409 |
|
1,923 |
|
6,043 |
|
19,375 |
|
||||||||
| Gross client cash outflows | (16,543 |
) |
(785 |
) |
(7,555 |
) |
(24,882 |
) |
||||||||
| Net client cash flows | (5,134 |
) |
1,138 |
|
(1,512 |
) |
(5,508 |
) |
||||||||
| Market appreciation (depreciation) | 13,624 |
|
550 |
|
6,164 |
|
20,337 |
|
||||||||
| Realizations and distributions | — |
|
— |
|
(2 |
) |
(2 |
) |
||||||||
| Acquired assets / Net transfers | (248 |
) |
36 |
|
174 |
|
(38 |
) |
||||||||
| Ending assets under management | $ | 117,044 |
|
$ | 6,694 |
|
$ | 52,375 |
|
$ | 176,113 |
|
||||
| September 30, 2023 | ||||||||||||||||
| Beginning assets under management | $ | 99,447 |
|
$ | 5,627 |
|
$ | 42,688 |
|
$ | 147,762 |
|
||||
| Gross client cash inflows | 11,468 |
|
625 |
|
4,866 |
|
16,959 |
|
||||||||
| Gross client cash outflows | (15,388 |
) |
(1,211 |
) |
(4,955 |
) |
(21,554 |
) |
||||||||
| Net client cash flows | (3,921 |
) |
(586 |
) |
(89 |
) |
(4,595 |
) |
||||||||
| Market appreciation (depreciation) | 5,648 |
|
(329 |
) |
2,015 |
|
7,335 |
|
||||||||
| Realizations and distributions | — |
|
— |
|
(73 |
) |
(73 |
) |
||||||||
| Acquired assets / Net transfers4 | (36 |
) |
(3 |
) |
(1,511 |
) |
(1,549 |
) |
||||||||
| Ending assets under management | $ | 101,138 |
|
$ | 4,710 |
|
$ | 43,031 |
|
$ | 148,879 |
|
||||
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/20241107097306/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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How much are Victory Capital's (VCTR) total assets under management as of Q3 2024?
What is Victory Capital's (VCTR) new quarterly dividend payment?
What was Victory Capital's (VCTR) revenue in Q3 2024?
