HARTFORD, Conn., April 29, 2022 /PRNewswire/ -- Virtus Investment Partners, Inc. (NASDAQ: VRTS) today reported financial results for the three months ended March 31, 2022.
Financial Highlights (Unaudited) (in millions, except per share data or as noted) |
|||||||||
Three Months Ended |
Three |
||||||||
3/31/2022 |
3/31/2021 |
Change |
12/31/2021 |
Change |
|||||
U.S. GAAP Financial Measures |
|||||||||
Revenues |
$ 252.4 |
$ 216.9 |
16% |
$ 266.3 |
(5%) |
||||
Operating expenses |
$ 186.9 |
$ 154.8 |
21% |
$ 182.6 |
2% |
||||
Operating income (loss) |
$ 65.6 |
$ 62.1 |
6% |
$ 83.7 |
(22%) |
||||
Operating margin |
26.0% |
28.7% |
31.4% |
||||||
Net income (loss) attributable to Virtus Investment Partners, Inc. |
$ 33.1 |
$ 36.6 |
(10%) |
$ 49.8 |
(34%) |
||||
Earnings (loss) per share - diluted |
$ 4.22 |
$ 4.54 |
(7%) |
$ 6.29 |
(33%) |
||||
Weighted average shares outstanding - diluted |
7.839 |
8.052 |
(3%) |
7.929 |
(1%) |
||||
Non-GAAP Financial Measures (1) |
|||||||||
Revenues, as adjusted |
$ 221.9 |
$ 187.3 |
18% |
$ 232.6 |
(5%) |
||||
Operating expenses, as adjusted |
$ 131.9 |
$ 109.3 |
21% |
$ 115.8 |
14% |
||||
Operating income (loss), as adjusted |
$ 90.1 |
$ 78.0 |
16% |
$ 116.8 |
(23%) |
||||
Operating margin, as adjusted |
40.6% |
41.6% |
50.2% |
||||||
Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted |
$ 61.7 |
$ 54.6 |
13% |
$ 82.1 |
(25%) |
||||
Earnings (loss) per share - diluted, as adjusted |
$ 7.87 |
$ 6.78 |
16% |
$ 10.36 |
(24%) |
||||
Weighted average shares outstanding - diluted, as adjusted |
7.839 |
8.052 |
(3%) |
7.929 |
(1%) |
(1) |
See the information beginning on page 10 for reconciliations to the most directly comparable U.S. GAAP measures and other important disclosures |
Earnings Summary
The company presents U.S. GAAP and non-GAAP earnings information in this release. Management believes that the non-GAAP financial measures presented reflect the company's operating results from providing investment management and related services to individuals and institutions and uses these measures to evaluate financial performance. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Reconciliations of the non-GAAP financial measures to the most comparable U.S. GAAP measures can be found beginning on page 10 of this earnings release.
Assets Under Management and Asset Flows (in billions) |
|||||||||
Three Months Ended |
Three |
||||||||
3/31/2022 |
3/31/2021 |
Change |
12/31/2021 |
Change |
|||||
Ending total assets under management |
$ 183.3 |
$ 168.9 |
9% |
$ 187.2 |
(2%) |
||||
Average total assets under management |
$ 190.1 |
$ 154.3 |
23% |
$ 184.6 |
3% |
||||
Total sales |
$ 9.4 |
$ 10.6 |
(11%) |
$ 8.7 |
8% |
||||
Net flows |
$ (2.0) |
$ 2.5 |
N/M |
$ — |
N/M |
||||
N/M - Not Meaningful |
Total assets under management of $183.3 billion at March 31, 2022 compared with $187.2 billion at December 31, 2021. The addition of $14.7 billion of assets from the January 1, 2022 acquisition of Stone Harbor Investment Partners and positive net flows in institutional and retail separate accounts were more than offset by market performance and open-end fund net outflows. In addition, other fee earning assets of $3.5 billion compared with $3.8 billion at December 31, 2021.
Total sales increased 8% to $9.4 billion from $8.7 billion due to growth in open-end funds and institutional, which reached its second highest quarterly level. Open-end fund sales of $5.0 billion increased 14%, with increases in most strategies, particularly leveraged finance, domestic equity, and alternatives. Institutional sales of $2.4 billion grew 16% from $2.1 billion and included increases in existing mandates as well as new mandates at multiple affiliates, including Stone Harbor. Retail separate account sales of $2.0 billion compared with $2.2 billion.
Net flows were ($2.0) billion as positive net flows in institutional and retail separate accounts were more than offset by open-end fund net outflows. Institutional net flows of $0.8 billion, up from $0.5 billion, were positive for the sixth consecutive quarter and included a positive emerging markets debt contribution. Retail separate accounts generated positive net flows of $0.6 billion with continued net inflows in both the intermediary sold and private client channels. Open-end fund net flows of ($3.4) billion compared with ($1.6) billion in the prior quarter, with higher net outflows particularly in more growth-oriented equity strategies.
Operating income of $65.6 million compared with $83.7 million in the prior quarter due to a 5% decrease in total revenues and a 2% increase in total operating expenses. The decrease in total revenues was primarily due to a lower average fee rate as a result of the impact of market performance, the addition of the lower average fee Stone Harbor assets, and two fewer days in the quarter. The increase in operating expenses included $9.7 million of seasonal items, increased intangible asset amortization, and higher employment and other operating expenses primarily due to the acquisition of Stone Harbor and business initiatives.
Net income attributable to Virtus Investment Partners, Inc. of $4.22 per diluted common share included ($1.97) of realized and unrealized losses on investments, ($0.61) of acquisition and integration costs, and ($0.57) of fair value adjustments to affiliate noncontrolling interests. Net income per diluted share in the prior quarter of $6.29 included a ($1.16) fair value adjustment to affiliate noncontrolling interests, ($1.14) of fair value adjustments to contingent consideration, ($0.47) of expense for a collateralized loan obligation (CLO) reset transaction, ($0.28) of realized and unrealized losses on investments, and ($0.19) of acquisition and integration costs. The fair value adjustments to affiliate noncontrolling interests reflected an increase in the value of the affiliate.
The effective tax rate during the quarter of 30% compared with 31% in the prior quarter.
Non-GAAP Results
Revenues, as adjusted, of $221.9 million declined from $232.6 million in the prior quarter due to a lower average fee rate and two fewer days in the quarter, partially offset by higher average assets due to the addition of Stone Harbor.
Employment expenses, as adjusted, of $101.6 million increased from $92.0 million in the prior quarter due to $9.7 million of seasonal items, primarily payroll taxes and benefits related to the timing of annual incentive payments. Other operating expenses, as adjusted, of $29.3 million increased sequentially from $22.9 million due to the addition of Stone Harbor and $1.3 million of business initiative discrete expenses.
Operating income, as adjusted, of $90.1 million and the related margin of 40.6% compared with $116.8 million and 50.2% in the prior quarter primarily due to the seasonal employment expenses and lower investment management fees.
Net income attributable to Virtus Investment Partners, Inc., as adjusted, per diluted common share was $7.87, a decrease of $2.49, or 24%, from $10.36 in the prior quarter. The sequential decline primarily reflected seasonal employment expenses and lower investment management fees.
The effective tax rate, as adjusted, of 27% was unchanged from the prior quarter.
Select Balance Sheet Items (Unaudited) (in millions) |
|||||||||
As of |
As of |
||||||||
3/31/2022 |
3/31/2021 |
Change |
12/31/2021 |
Change |
|||||
Cash and cash equivalents |
$ 225.2 |
$ 228.3 |
(1%) |
$ 378.9 |
(41%) |
||||
Gross debt (1) |
$ 273.6 |
$ 199.8 |
37% |
$ 274.3 |
—% |
||||
Contingent consideration (2) |
$ 130.7 |
$ 137.7 |
(5%) |
$ 162.6 |
(20%) |
||||
Redeemable noncontrolling interests (3) |
$ 129.3 |
$ 98.1 |
32% |
$ 126.5 |
2% |
||||
Total equity exc. noncontrolling interests |
$ 816.5 |
$ 729.4 |
12% |
$ 828.3 |
(1%) |
||||
Working capital (4) |
$ 196.1 |
$ 211.1 |
(7%) |
$ 219.8 |
(11%) |
||||
Net debt (cash) (5) |
$ 48.4 |
$ (28.5) |
N/M |
$ (104.6) |
N/M |
(1) |
Excludes deferred financing costs of $7.7 million, $4.0 million, and $8.0 million, as of March 31, 2022, March 31, 2021, and December 31, 2021, respectively |
(2) |
Represents estimates of revenue participation and contingent payments |
(3) |
Excludes redeemable noncontrolling interests of consolidated investment products of $9.4 million, $14.4 million, and $12.4 million as of March 31, 2022, |
(4) |
Defined as cash and cash equivalents plus accounts receivable, net, less accrued compensation and benefits, accounts payable and accrued liabilities, dividends |
(5) |
Defined as gross debt less cash and cash equivalents |
N/M - Not Meaningful |
Working capital of $196.1 million at March 31, 2022 compared with $219.8 million at December 31, 2021 as net cash generated from the business was more than offset by return of capital to shareholders and the closing payment for Stone Harbor.
During the quarter, the company returned $30.0 million to shareholders through the repurchase of 125,452 shares of common stock. In addition, the company net settled 61,859 shares for $13.4 million to satisfy employee tax obligations.
Conference Call
Management will host an investor conference call on Friday, April 29, 2022, at 10 a.m. Eastern to discuss these financial results and related matters. The webcast of the call can be accessed in the Investor Relations section of virtus.com, or by telephone at 877-930-7765 for callers in the U.S. and Canada or 253-336-7413 for international callers (Conference ID: 8588601). The presentation that will be reviewed as part of the conference call will be available prior to the call in the Investor Relations section of virtus.com. A replay of the call will be available through May 6, 2022 by telephone at 855-859-2056 (U.S. and Canada) or 404-537-3406 (international) (Conference ID: 8588601).
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.
U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) |
|||||||||
Three Months Ended |
Three |
||||||||
3/31/2022 |
3/31/2021 |
Change |
12/31/2021 |
Change |
|||||
Revenues |
|||||||||
Investment management fees |
$ 206,817 |
$ 173,269 |
19% |
$ 213,673 |
(3%) |
||||
Distribution and service fees |
20,007 |
20,348 |
(2%) |
23,464 |
(15%) |
||||
Administration and shareholder service fees |
24,344 |
22,560 |
8% |
27,615 |
(12%) |
||||
Other income and fees |
1,272 |
720 |
77% |
1,510 |
(16%) |
||||
Total revenues |
252,440 |
216,897 |
16% |
266,262 |
(5%) |
||||
Operating Expenses |
|||||||||
Employment expenses |
105,993 |
91,759 |
16% |
91,496 |
16% |
||||
Distribution and other asset-based expenses |
32,846 |
32,294 |
2% |
36,032 |
(9%) |
||||
Other operating expenses |
31,712 |
19,580 |
62% |
25,808 |
23% |
||||
Operating expenses of consolidated investment products |
740 |
559 |
32% |
1,705 |
(57%) |
||||
Change in fair value of contingent consideration |
— |
— |
N/M |
12,400 |
(100%) |
||||
Depreciation expense |
935 |
1,098 |
(15%) |
906 |
3% |
||||
Amortization expense |
14,662 |
9,465 |
55% |
14,262 |
3% |
||||
Total operating expenses |
186,888 |
154,755 |
21% |
182,609 |
2% |
||||
Operating Income (Loss) |
65,552 |
62,142 |
5% |
83,653 |
(22%) |
||||
Other Income (Expense) |
|||||||||
Realized and unrealized gain (loss) on investments, net |
(2,982) |
891 |
N/M |
1,026 |
N/M |
||||
Realized and unrealized gain (loss) of consolidated investment products, net |
(13,344) |
(4,687) |
185% |
2,980 |
N/M |
||||
Other income (expense), net |
287 |
1,771 |
(84%) |
632 |
(55%) |
||||
Total other income (expense), net |
(16,039) |
(2,025) |
N/M |
4,638 |
N/M |
||||
Interest Income (Expense) |
|||||||||
Interest expense |
(2,279) |
(2,314) |
(2%) |
(2,322) |
(2%) |
||||
Interest and dividend income |
328 |
136 |
141% |
793 |
(59%) |
||||
Interest and dividend income of investments of consolidated investment products |
20,380 |
23,876 |
(15%) |
20,765 |
(2%) |
||||
Interest expense of consolidated investment products |
(12,088) |
(14,448) |
(16%) |
(18,056) |
(33%) |
||||
Total interest income (expense), net |
6,341 |
7,250 |
(13%) |
1,180 |
437% |
||||
Income (Loss) Before Income Taxes |
55,854 |
67,367 |
(17%) |
89,471 |
(38%) |
||||
Income tax expense (benefit) |
16,735 |
15,153 |
10% |
27,458 |
(39%) |
||||
Net Income (Loss) |
39,119 |
52,214 |
(25%) |
62,013 |
(37%) |
||||
Noncontrolling interests |
(6,060) |
(15,626) |
(61%) |
(12,173) |
(50%) |
||||
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. |
$ 33,059 |
$ 36,588 |
(10%) |
$ 49,840 |
(34%) |
||||
Earnings (Loss) Per Share - Basic |
$ 4.38 |
$ 4.79 |
(9%) |
$ 6.54 |
(33%) |
||||
Earnings (Loss) Per Share - Diluted |
$ 4.22 |
$ 4.54 |
(7%) |
$ 6.29 |
(33%) |
||||
Cash Dividends Declared Per Common Share |
$ 1.50 |
$ 0.82 |
83% |
$ 1.50 |
—% |
||||
Weighted Average Shares Outstanding - Basic |
7,546 |
7,633 |
(1%) |
7,623 |
(1%) |
||||
Weighted Average Shares Outstanding - Diluted |
7,839 |
8,052 |
(3%) |
7,929 |
(1%) |
||||
N/M - Not Meaningful |
Assets Under Management - Product and Asset Class (in millions) |
|||||||||
Three Months Ended |
|||||||||
3/31/2021 |
06/30/2021 |
9/30/2021 |
12/31/2021 |
3/31/2022 |
|||||
By Product (period end): |
|||||||||
Open-End Funds (1) |
$ 73,185 |
$ 76,593 |
$ 74,365 |
$ 78,706 |
$ 73,149 |
||||
Closed-End Funds |
11,664 |
11,993 |
11,721 |
12,068 |
12,060 |
||||
Retail Separate Accounts |
37,244 |
40,578 |
41,528 |
44,538 |
40,824 |
||||
Institutional Accounts (2) |
46,787 |
49,474 |
49,691 |
51,874 |
57,309 |
||||
Total |
$ 168,880 |
$ 178,638 |
$ 177,305 |
$ 187,186 |
$ 183,342 |
||||
By Product (average) (3) |
|||||||||
Open-End Funds (1) |
$ 67,137 |
$ 75,285 |
$ 76,368 |
$ 80,303 |
$ 75,537 |
||||
Closed-End Funds |
9,340 |
11,936 |
12,091 |
12,043 |
11,762 |
||||
Retail Separate Accounts |
32,118 |
37,244 |
40,578 |
41,528 |
44,538 |
||||
Institutional Accounts (2) |
45,749 |
48,413 |
50,542 |
50,693 |
58,269 |
||||
Total |
$ 154,344 |
$ 172,878 |
$ 179,579 |
$ 184,567 |
$ 190,106 |
||||
By Asset Class (period end): |
|||||||||
Equity |
$ 106,183 |
$ 113,751 |
$ 112,732 |
$ 116,546 |
$ 102,989 |
||||
Fixed Income |
35,069 |
35,426 |
35,240 |
34,261 |
45,418 |
||||
Multi-Asset (4) |
22,498 |
23,668 |
23,641 |
24,853 |
23,415 |
||||
Alternatives (5) |
5,130 |
5,793 |
5,692 |
11,526 |
11,520 |
||||
Total |
$ 168,880 |
$ 178,638 |
$ 177,305 |
$ 187,186 |
$ 183,342 |
Assets Under Management - Average Management Fees Earned (6) (in basis points) |
|||||||||
Three Months Ended |
|||||||||
3/31/2021 |
6/30/2021 |
9/30/2021 |
12/31/2021 |
3/31/2022 |
|||||
By Product: |
|||||||||
Open-End Funds (1) |
47.5 |
45.9 |
45.7 |
48.5 |
46.5 |
||||
Closed-End Funds |
56.2 |
55.1 |
56.2 |
55.5 |
58.4 |
||||
Retail Separate Accounts |
45.7 |
44.2 |
44.0 |
44.6 |
43.6 |
||||
Institutional Accounts (2)(7) |
32.1 |
32.8 |
31.3 |
32.6 |
31.5 |
||||
All Products (7) |
43.1 |
42.5 |
42.0 |
43.7 |
41.9 |
(1) |
Represents assets under management of U.S. retail funds, global funds, exchange traded funds, and variable insurance funds |
(2) |
Represents assets under management of institutional separate and commingled accounts including structured products |
(3) |
Averages are calculated as follows: |
- Funds - average daily or weekly balances |
|
- Retail Separate Accounts - prior-quarter ending balance |
|
- Institutional Accounts - average of month-end balances in quarter |
|
(4) |
Includes strategies with substantial holdings in at least two of the following asset classes: equity, fixed income and alternatives |
(5) |
Consists of event-driven, real estate securities, infrastructure, long/short, and other strategies |
(6) |
Represents investment management fees, as adjusted, divided by average assets. Investment management fees, as adjusted, exclude the impact of consolidated |
(7) |
Includes performance-related fees, in basis points, earned during the three months ended as follows: |
3/31/2021 |
6/30/2021 |
9/30/2021 |
12/31/2021 |
3/31/2022 |
|||||
Institutional Accounts |
0.6 |
0.7 |
0.5 |
0.6 |
0.5 |
||||
All Products |
0.2 |
0.2 |
0.1 |
0.1 |
0.1 |
Assets Under Management - Asset Flows by Product (in millions) |
|||||||||
Three Months Ended |
|||||||||
3/31/2021 |
6/30/2021 |
9/30/2021 |
12/31/2021 |
3/31/2022 |
|||||
Open-End Funds (1) |
|||||||||
Beginning balance |
$ 51,608 |
$ 73,185 |
$ 76,593 |
$ 74,365 |
$ 78,706 |
||||
Inflows |
6,028 |
4,975 |
3,809 |
4,346 |
4,956 |
||||
Outflows |
(5,335) |
(5,079) |
(5,168) |
(5,943) |
(8,378) |
||||
Net flows |
693 |
(104) |
(1,359) |
(1,597) |
(3,422) |
||||
Market performance |
1,228 |
3,573 |
(775) |
2,282 |
(6,907) |
||||
Other (2) |
19,656 |
(61) |
(94) |
3,656 |
4,772 |
||||
Ending balance |
$ 73,185 |
$ 76,593 |
$ 74,365 |
$ 78,706 |
$ 73,149 |
||||
Closed-End Funds |
|||||||||
Beginning balance |
$ 5,914 |
$ 11,664 |
$ 11,993 |
$ 11,721 |
$ 12,068 |
||||
Inflows |
— |
— |
3 |
19 |
8 |
||||
Outflows |
— |
— |
— |
— |
— |
||||
Net flows |
— |
— |
3 |
19 |
8 |
||||
Market performance |
105 |
514 |
(114) |
718 |
(196) |
||||
Other (2) |
5,645 |
(185) |
(161) |
(390) |
180 |
||||
Ending balance |
$ 11,664 |
$ 11,993 |
$ 11,721 |
$ 12,068 |
$ 12,060 |
||||
Retail Separate Accounts |
|||||||||
Beginning balance |
$ 29,751 |
$ 37,244 |
$ 40,578 |
$ 41,528 |
$ 44,538 |
||||
Inflows |
2,699 |
2,273 |
2,003 |
2,240 |
2,022 |
||||
Outflows |
(896) |
(833) |
(1,231) |
(1,125) |
(1,394) |
||||
Net flows |
1,803 |
1,440 |
772 |
1,115 |
628 |
||||
Market performance |
2,141 |
1,910 |
178 |
1,895 |
(4,342) |
||||
Other (2) |
3,549 |
(16) |
— |
— |
— |
||||
Ending balance |
$ 37,244 |
$ 40,578 |
$ 41,528 |
$ 44,538 |
$ 40,824 |
Institutional Accounts (3) |
|||||||||
Beginning balance |
$ 44,921 |
$ 46,787 |
$ 49,474 |
$ 49,691 |
$ 51,874 |
||||
Inflows |
1,884 |
2,302 |
1,808 |
2,107 |
2,449 |
||||
Outflows |
(1,868) |
(2,184) |
(1,727) |
(1,625) |
(1,623) |
||||
Net flows |
16 |
118 |
81 |
482 |
826 |
||||
Market performance |
1,216 |
2,785 |
258 |
1,438 |
(5,012) |
||||
Other (2) |
634 |
(216) |
(122) |
263 |
9,621 |
||||
Ending balance |
$ 46,787 |
$ 49,474 |
$ 49,691 |
$ 51,874 |
$ 57,309 |
||||
Total |
|||||||||
Beginning balance |
$ 132,194 |
$ 168,880 |
$ 178,638 |
$ 177,305 |
$ 187,186 |
||||
Inflows |
10,611 |
9,550 |
7,623 |
8,712 |
9,435 |
||||
Outflows |
(8,099) |
(8,096) |
(8,126) |
(8,693) |
(11,395) |
||||
Net flows |
2,512 |
1,454 |
(503) |
19 |
(1,960) |
||||
Market performance |
4,690 |
8,782 |
(453) |
6,333 |
(16,457) |
||||
Other (2) |
29,484 |
(478) |
(377) |
3,529 |
14,573 |
||||
Ending balance |
$ 168,880 |
$ 178,638 |
$ 177,305 |
$ 187,186 |
$ 183,342 |
(1) |
Represents assets under management of U.S. retail funds, global funds, exchange traded funds, and variable insurance funds |
(2) |
Represents open-end and closed-end fund distributions net of reinvestments, the net change in assets from cash management strategies, and the impact |
(3) |
Represents assets under management of institutional separate and commingled accounts including structured products |
Non-GAAP Information and Reconciliations(in thousands except per share data)
The non-GAAP financial measures included in this release differ from financial measures determined in accordance with U.S. GAAP as a result of the reclassification of certain income statement items, as well as the exclusion of certain expenses and other items that are not reflective of the earnings generated from providing investment management and related services. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures.
The following are reconciliations and related notes of the most comparable U.S. GAAP measure to each non-GAAP measure:
Three Months Ended |
|||||
Revenues |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Total revenues, GAAP |
$ 252,440 |
$ 216,897 |
$ 266,262 |
||
Consolidated investment products revenues (1) |
2,354 |
2,673 |
2,374 |
||
Investment management fees (2) |
(12,838) |
(11,943) |
(12,567) |
||
Distribution and service fees (2) |
(20,008) |
(20,351) |
(23,465) |
||
Total revenues, as adjusted |
$ 221,948 |
$ 187,276 |
$ 232,604 |
Operating Expenses |
|||||
Total operating expenses, GAAP |
$ 186,888 |
$ 154,755 |
$ 182,609 |
||
Consolidated investment products expenses (1) |
(740) |
(559) |
(1,705) |
||
Distribution and other asset-based expenses (3) |
(32,846) |
(32,294) |
(36,032) |
||
Amortization of intangible assets (4) |
(14,662) |
(9,465) |
(14,262) |
||
Acquisition and integration expenses (5) |
(6,667) |
(2,647) |
(14,454) |
||
Other (6) |
(122) |
(480) |
(374) |
||
Total operating expenses, as adjusted |
$ 131,851 |
$ 109,310 |
$ 115,782 |
Operating Income (Loss) |
|||||
Operating income (loss), GAAP |
$ 65,552 |
$ 62,142 |
$ 83,653 |
||
Consolidated investment products (earnings) losses (1) |
3,094 |
3,232 |
4,079 |
||
Amortization of intangible assets (4) |
14,662 |
9,465 |
14,262 |
||
Acquisition and integration expenses (5) |
6,667 |
2,647 |
14,454 |
||
Other (6) |
122 |
480 |
374 |
||
Operating income (loss), as adjusted |
$ 90,097 |
$ 77,966 |
$ 116,822 |
||
Operating margin, GAAP |
26.0% |
28.7% |
31.4% |
||
Operating margin, as adjusted |
40.6% |
41.6% |
50.2% |
Three Months Ended |
|||||
Income (Loss) Before Taxes |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Income (loss) before taxes, GAAP |
$ 55,854 |
$ 67,367 |
$ 89,471 |
||
Consolidated investment products (earnings) losses (1) |
806 |
(30) |
(517) |
||
Amortization of intangible assets (4) |
14,662 |
9,465 |
14,262 |
||
Acquisition and integration expenses (5) |
6,667 |
2,647 |
14,454 |
||
Other (6) |
122 |
480 |
374 |
||
Seed capital and CLO investments (gains) losses (7) |
10,735 |
(1,533) |
(1,285) |
||
Income (loss) before taxes, as adjusted |
$ 88,846 |
$ 78,396 |
$ 116,759 |
Income Tax Expense (Benefit) |
|||||
Income tax expense (benefit), GAAP |
$ 16,735 |
$ 15,153 |
$ 27,458 |
||
Tax impact of: |
|||||
Amortization of intangible assets (4) |
3,974 |
2,528 |
3,844 |
||
Acquisition and integration expenses (5) |
1,807 |
707 |
3,896 |
||
Other (6) |
2,603 |
2,931 |
(850) |
||
Seed capital and CLO investments (gains) losses (7) |
(1,041) |
(377) |
(2,880) |
||
Income tax expense (benefit), as adjusted |
$ 24,078 |
$ 20,942 |
$ 31,468 |
||
Effective tax rate, GAAPA |
30.0% |
22.5% |
30.7% |
||
Effective tax rate, as adjustedB |
27.1% |
26.7% |
27.0% |
A |
Reflects income tax expense (benefit), GAAP, divided by income (loss) before taxes, GAAP |
B |
Reflects income tax expense (benefit), as adjusted, divided by income (loss) before taxes, as adjusted |
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. |
|||||
Net income (loss) attributable to Virtus Investment Partners, Inc., GAAP |
$ 33,059 |
$ 36,588 |
$ 49,840 |
||
Amortization of intangible assets, net of tax (4) |
9,952 |
6,201 |
9,682 |
||
Acquisition and integration expenses, net of tax (5) |
4,860 |
1,940 |
10,558 |
||
Other, net of tax (6) |
2,007 |
11,047 |
10,455 |
||
Seed capital and CLO investments (gains) losses, net of tax (7) |
11,776 |
(1,156) |
1,595 |
||
Net income (loss) attributable to Virtus Investment Partners, Inc., as |
$ 61,654 |
$ 54,620 |
$ 82,130 |
||
Weighted average shares outstanding - diluted |
7,839 |
8,052 |
7,929 |
||
Earnings (loss) per share - diluted, GAAP |
$ 4.22 |
$ 4.54 |
$ 6.29 |
||
Earnings (loss) per share - diluted, as adjusted |
$ 7.87 |
$ 6.78 |
$ 10.36 |
Three Months Ended |
|||||
Administration and Shareholder Services Fees |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Administration and shareholder service fees, GAAP |
$ 24,344 |
$ 22,560 |
$ 27,615 |
||
Consolidated investment products fees (1) |
43 |
61 |
50 |
||
Administration and shareholder service fees, as adjusted |
$ 24,387 |
$ 22,621 |
$ 27,665 |
Employment Expenses |
|||||
Employment expenses, GAAP |
$ 105,993 |
$ 91,759 |
$ 91,496 |
||
Acquisition and integration expenses (5) |
(4,282) |
(867) |
846 |
||
Other (6) |
(122) |
(480) |
(346) |
||
Employment expenses, as adjusted |
$ 101,589 |
$ 90,412 |
$ 91,996 |
Other Operating Expenses |
|||||
Other operating expenses, GAAP |
$ 31,712 |
$ 19,580 |
$ 25,808 |
||
Acquisition and integration expenses (5) |
(2,385) |
(1,780) |
(2,900) |
||
Other (6) |
— |
— |
(28) |
||
Other operating expenses, as adjusted |
$ 29,327 |
$ 17,800 |
$ 22,880 |
Total Other Income (Expense), Net, |
|||||
Total other income (expense), net GAAP |
$ (16,039) |
$ (2,025) |
$ 4,638 |
||
Consolidated investment products (1) |
5,136 |
5,256 |
(2,866) |
||
Seed capital and CLO investments (gains) losses (7) |
10,735 |
(1,533) |
(1,285) |
||
Total other income (expense), net as adjusted |
$ (168) |
$ 1,698 |
$ 487 |
Interest and Dividend Income |
|||||
Interest and dividend income, GAAP |
$ 328 |
$ 136 |
$ 793 |
||
Consolidated investment products (1) |
868 |
910 |
979 |
||
Interest and dividend income, as adjusted |
$ 1,196 |
$ 1,046 |
$ 1,772 |
Total Noncontrolling Interests |
|||||
Total noncontrolling interests, GAAP |
$ (6,060) |
$ (15,626) |
$ (12,173) |
||
Consolidated investment products (1) |
(806) |
30 |
517 |
||
Amortization of intangible assets (4) |
(736) |
(736) |
(736) |
||
Other (6) |
4,488 |
13,498 |
9,231 |
||
Total noncontrolling interests, as adjusted |
$ (3,114) |
$ (2,834) |
$ (3,161) |
Notes to Reconciliations:
Reclassifications:
1. Consolidated investment products - Revenues and expenses generated by operating activities of mutual funds and CLOs that are consolidated in the financial statements. Management believes that excluding these operating activities to reflect net revenues and expenses of the company prior to the consolidation of these products is consistent with the approach of reflecting its operating results from managing third-party client assets.
Other Adjustments:
Revenue Related
2. Investment management/Distribution and service fees - Each of these revenue line items is reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing the product and servicing the client. The amount of fees fluctuates each period, based on a predetermined percentage of the value of assets under management, and varies based on the type of investment product. The specific adjustments are as follows:
Investment management fees - Based on specific agreements, the portion of investment management fees passed-through to third-party intermediaries for services to investors in sponsored investment products.
Distribution and service fees - Based on distinct arrangements, fees collected by the company then passed-through to third-party client intermediaries for services to investors in sponsored investment products. The adjustment represents all of the company's distribution and service fees that are recorded as a separate line item on the condensed consolidated statements of operations.
Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries.
Expense Related
3. Distribution and other asset-based expenses - Primarily payments to third-party client intermediaries for providing services to investors in sponsored investment products. Management believes that making this adjustment aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries.
4. Amortization of intangible assets - Non-cash amortization expense or impairment expense, if any, attributable to acquisition-related intangible assets, including any portion that is allocated to noncontrolling interests. Management believes that making this adjustment aids in comparing the company's operating results with other asset management firms that have not engaged in acquisitions.
5. Acquisition and integration expenses - Expenses that are directly related to acquisition and integration activities. Acquisition expenses include transaction closing costs, change in fair value of contingent consideration, certain professional fees, and financing fees. Integration expenses include costs incurred that are directly attributable to combining businesses, including compensation, restructuring and severance charges, professional fees, consulting fees, and other expenses. Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that have not engaged in acquisitions.
Components of Acquisition and Integration Expenses for the respective periods are shown below:
Three Months Ended |
|||||
Acquisition and Integration Expenses |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Employment expenses |
$ 4,282 |
$ 867 |
$ (846) |
||
Other operating expenses |
2,385 |
1,780 |
2,900 |
||
Change in fair value of contingent consideration |
— |
— |
12,400 |
||
Total Acquisition and Integration Expenses |
$ 6,667 |
$ 2,647 |
$ 14,454 |
6. Other - Certain expenses that are not reflective of the ongoing earnings generation of the business. Employment expenses and noncontrolling interests are adjusted for fair value measurements of affiliate minority interests. Other operating expenses are adjusted for non-capitalized debt issuance costs. Interest expense is adjusted to remove gains on early extinguishment of debt and the write-off of previously capitalized costs associated with the modification of debt. Income tax expense (benefit) items are adjusted for uncertain tax positions, changes in tax law, valuation allowances, and other unusual or infrequent items not related to current operating results to reflect a normalized effective rate. Management believes that making these adjustments aids in comparing the company's operating results with prior periods.
Components of Other for the respective periods are shown below:
Three Months Ended |
|||||
Other |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Employment expense fair value adjustments |
$ 122 |
$ 480 |
$ 346 |
||
Non-capitalized debt issuance costs |
— |
— |
28 |
||
Tax impact of adjustments |
(33) |
(128) |
(101) |
||
Other discrete tax adjustments |
(2,570) |
(2,803) |
951 |
||
Affiliate minority interest fair value adjustments |
4,488 |
13,498 |
9,231 |
||
Total Other |
$ 2,007 |
$ 11,047 |
$ 10,455 |
Seed Capital and CLO Related
7. Seed capital and CLO investments (gains) losses - Gains and losses (realized and unrealized) of seed capital and CLO investments. Gains and losses (realized and unrealized) generated by investments in seed capital and CLO investments can vary significantly from period to period and do not reflect the company's operating results from providing investment management and related services. Management believes that making this adjustment aids in comparing the company's operating results with prior periods and with other asset management firms that do not have meaningful seed capital and CLO investments.
Revenues, as adjusted, comprise the fee revenues paid by clients for investment management and related services. Revenues, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP, namely in excluding the impact of operating activities of consolidated investment products and reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing the product and servicing the client.
Operating expenses, as adjusted, is calculated to reflect expenses from ongoing continuing operations. Operating expenses, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP expenses in that they exclude amortization or impairment, if any, of intangible assets, restructuring and severance, the effect of consolidated investment products, acquisition and integration-related expenses and certain other expenses that do not reflect the ongoing earnings generation of the business.
Operating margin, as adjusted, is a metric used to evaluate efficiency represented by operating income, as adjusted, divided by revenues, as adjusted.
Earnings (loss) per share, as adjusted, represent net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted, divided by weighted average shares outstanding, as adjusted, on either a basic or diluted basis.
Forward-Looking Information
This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995, as amended. These statements may be identified by such forward-looking terminology as "expect," "estimate," "intent," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," "opportunity," "predict," "would," "potential," "future," "forecast," "guarantee," "assume," "likely," "target" or similar statements or variations of such terms.
Our forward-looking statements are based on a series of expectations, assumptions and projections about the company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans and ability to borrow, for all future periods. All forward-looking statements are as of the date of this release only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially.
Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Annual Report on Form 10-K, as supplemented by our periodic filings with the Securities and Exchange Commission (the "SEC"), as well as the following risks and uncertainties resulting from: (i) any reduction in our assets under management; (ii) general domestic and global economic, political and pandemic conditions; (iii) inability to achieve the expected benefits of our strategic transactions; (iv) the ongoing effects of the COVID-19 pandemic and associated global economic disruption; (v) withdrawal, renegotiation or termination of investment advisory agreements; (vi) damage to our reputation; (vii) inability to satisfy financial covenants and payments related to our indebtedness; (viii) inability to attract and retain key personnel; (ix) challenges from the competition we face in our business; (x) adverse developments related to unaffiliated subadvisers; (xi) negative changes in key distribution relationships; (xii) interruptions in or failure to provide critical technological service by us or third parties; (xiii) loss on our investments; (xiv) lack of sufficient capital on satisfactory terms; (xv) adverse regulatory and legal developments; (xvi) failure to comply with investment guidelines or other contractual requirements; (xvii) adverse civil litigation and government investigations or proceedings; (xviii) unfavorable changes in tax laws or limitations; (xix) volatility associated with our common stock; (xx) inability to make quarterly common stock dividends; (xxi) certain corporate governance provisions in our charter and bylaws; (xxii) losses or costs not covered by insurance; (xxiii) impairment of goodwill or intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2021 Annual Report on Form 10-K and our other periodic reports filed with the SEC could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.
Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the company's periodic reports filed with the SEC and are available on our website at virtus.com under "Investor Relations." You are urged to carefully consider all such factors.
The company does not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or affect any of the forward-looking statements contained in or accompanying this release, such statements or disclosures will be deemed to modify or supersede such statements in this release.
SOURCE Virtus Investment Partners, Inc.
ХАРТФОРД, Коннектикут, 29 апреля 2022 г. /PRNewswire/ -- Virtus Investment Partners, Inc. (NASDAQ: VRTS) сегодня сообщила о финансовых результатах за три месяца, закончившихся 31 марта 2022 года.
Financial Highlights (Unaudited) (in millions, except per share data or as noted) |
|||||||||
Three Months Ended |
Three |
||||||||
3/31/2022 |
3/31/2021 |
Change |
12/31/2021 |
Change |
|||||
U.S. GAAP Financial Measures |
|||||||||
Revenues |
$ 252.4 |
$ 216.9 |
16% |
$ 266.3 |
(5%) |
||||
Operating expenses |
$ 186.9 |
$ 154.8 |
21% |
$ 182.6 |
2% |
||||
Operating income (loss) |
$ 65.6 |
$ 62.1 |
6% |
$ 83.7 |
(22%) |
||||
Operating margin |
26.0% |
28.7% |
31.4% |
||||||
Net income (loss) attributable to Virtus Investment Partners, Inc. |
$ 33.1 |
$ 36.6 |
(10%) |
$ 49.8 |
(34%) |
||||
Earnings (loss) per share - diluted |
$ 4.22 |
$ 4.54 |
(7%) |
$ 6.29 |
(33%) |
||||
Weighted average shares outstanding - diluted |
7.839 |
8.052 |
(3%) |
7.929 |
(1%) |
||||
Non-GAAP Financial Measures (1) |
|||||||||
Revenues, as adjusted |
$ 221.9 |
$ 187.3 |
18% |
$ 232.6 |
(5%) |
||||
Operating expenses, as adjusted |
$ 131.9 |
$ 109.3 |
21% |
$ 115.8 |
14% |
||||
Operating income (loss), as adjusted |
$ 90.1 |
$ 78.0 |
16% |
$ 116.8 |
(23%) |
||||
Operating margin, as adjusted |
40.6% |
41.6% |
50.2% |
||||||
Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted |
$ 61.7 |
$ 54.6 |
13% |
$ 82.1 |
(25%) |
||||
Earnings (loss) per share - diluted, as adjusted |
$ 7.87 |
$ 6.78 |
16% |
$ 10.36 |
(24%) |
||||
Weighted average shares outstanding - diluted, as adjusted |
7.839 |
8.052 |
(3%) |
7.929 |
(1%) |
(1) |
See the information beginning on page 10 for reconciliations to the most directly comparable U.S. GAAP measures and other important disclosures |
Сводная информация о доходах
В этом выпуске компания представляет информацию о доходах по ОПБУ США и не по ОПБУ. Руководство считает, что представленные финансовые показатели, не относящиеся к GAAP, отражают операционные результаты компании от предоставления услуг по управлению инвестициями и связанных с ними услуг частным лицам и учреждениям, и использует эти показатели для оценки финансовых результатов. Финансовые показатели, не относящиеся к ОПБУ, имеют существенные ограничения и не должны рассматриваться изолированно или в качестве замены показателей ОПБУ США. Сверку финансовых показателей, не относящихся к ОПБУ, с наиболее сопоставимыми показателями по ОПБУ США можно найти, начиная со страницы 10 настоящего отчета о прибылях и убытках.
Assets Under Management and Asset Flows (in billions) |
|||||||||
Three Months Ended |
Three |
||||||||
3/31/2022 |
3/31/2021 |
Change |
12/31/2021 |
Change |
|||||
Ending total assets under management |
$ 183.3 |
$ 168.9 |
9% |
$ 187.2 |
(2%) |
||||
Average total assets under management |
$ 190.1 |
$ 154.3 |
23% |
$ 184.6 |
3% |
||||
Total sales |
$ 9.4 |
$ 10.6 |
(11%) |
$ 8.7 |
8% |
||||
Net flows |
$ (2.0) |
$ 2.5 |
N/M |
$ — |
N/M |
||||
N/M - Not Meaningful |
Общая сумма активов под управлением на 31 марта 2022 года составила 183,3 миллиарда долларов по сравнению с 187,2 миллиарда долларов на 31 декабря 2021 года. Увеличение активов на 14,7 миллиарда долларов в результате приобретения Stone Harbor Investment Partners 1 января 2022 года и положительные чистые потоки на отдельных счетах институциональных и розничных инвесторов были более чем компенсированы показателями рынка и чистым оттоком средств из открытых фондов. Кроме того, другие активы, приносящие комиссионные доходы, составили 3,5 миллиарда долларов по сравнению с 3,8 миллиардами долларов на 31 декабря 2021 года.
Общий объем продаж увеличился на 8% до $9,4 млрд с $8,7 млрд благодаря росту открытых фондов и институциональных инвесторов, который достиг своего второго по величине квартального уровня. Объем продаж открытых фондов в размере 5,0 млрд долларов увеличился на 14%, при этом увеличилось большинство стратегий, в частности финансирование с привлечением заемных средств, внутренний капитал и альтернативные варианты. Институциональные продажи в размере 2,4 миллиарда долларов выросли на 16% с 2,1 миллиарда долларов и включали увеличение существующих мандатов, а также новых мандатов в нескольких филиалах, включая Stone Harbor. Розничные продажи с отдельного счета составили 2,0 миллиарда долларов по сравнению с 2,2 миллиардами долларов.
Чистые потоки составили (2,0 млрд. долл. США), поскольку положительные чистые потоки на отдельных счетах институциональных и розничных компаний были более чем компенсированы чистым оттоком средств из открытых фондов. Институциональные чистые потоки в размере 0,8 миллиарда долларов, по сравнению с 0,5 миллиарда долларов, были положительными шестой квартал подряд и включали положительный вклад долга развивающихся рынков. Отдельные счета розничной торговли обеспечили положительный чистый приток средств в размере 0,6 миллиарда долларов США при продолжающемся чистом притоке средств как по каналам посреднических продаж, так и по каналам частных клиентов. Чистый приток средств из открытых фондов составил (3,4 миллиарда долларов) по сравнению с (1,6 миллиарда долларов) в предыдущем квартале, при этом чистый отток был выше, особенно в более ориентированных на рост стратегиях акционерного капитала.
Операционная прибыль составила 65,6 млн долларов по сравнению с 83,7 млн долларов в предыдущем квартале из-за снижения общей выручки на 5% и увеличения общих операционных расходов на 2%. Снижение общей выручки было вызвано главным образом более низкой средней ставкой комиссионных в результате влияния рыночных показателей, добавлением более низкой средней платы за активы Stone Harbor и меньшим количеством дней в квартале. Увеличение операционных расходов включало в себя сезонные расходы на сумму 9,7 млн. долл. США, увеличение амортизации нематериальных активов, а также увеличение занятости и других операционных расходов, в основном из-за приобретения Stone Harbor и бизнес-инициатив.
Чистая прибыль, приходящаяся на Virtus Investment Partners, Inc. в размере 4,22 доллара США на разводненную обыкновенную акцию, включала (1,97 доллара США) реализованные и нереализованные убытки по инвестициям, (0,61 доллара США) затраты на приобретение и интеграцию и (0,57 доллара США) корректировки справедливой стоимости дочерних неконтролирующих долей участия. Чистая прибыль на разводненную акцию в предыдущем квартале в размере 6,29 долл. США включала (1,16 долл. США) корректировку справедливой стоимости дочерних неконтролирующих долей участия, (1,14 долл. США) корректировку справедливой стоимости условного вознаграждения, (0,47 долл. США) расходы по сделке по возврату обеспеченного кредитного обязательства (CLO), (0,28 долл. США) реализованные и нереализованные убытки от инвестиций, а также (0,19 долл. США) затраты на приобретение и интеграцию. Корректировки справедливой стоимости неконтролирующих долей участия аффилированного лица отразили увеличение стоимости аффилированного лица.
Эффективная налоговая ставка в течение квартала составила 30% по сравнению с 31% в предыдущем квартале.
Результаты, не относящиеся к ОПБУ
Скорректированная выручка в размере 221,9 млн долларов снизилась с 232,6 млн долларов в предыдущем квартале из-за более низкой средней ставки комиссионных и меньшего количества дней в квартале, что частично компенсируется более высокими средними активами из-за добавления Stone Harbor.
Скорректированные расходы на трудоустройство в размере 101,6 млн долларов увеличились с 92,0 млн долларов в предыдущем квартале из-за сезонных статей в размере 9,7 млн долларов, в первую очередь налогов на заработную плату и льгот, связанных со сроками ежегодных стимулирующих выплат. Прочие операционные расходы, с учетом поправок, в размере 29,3 млн. долл. США последовательно увеличились с 22,9 млн. долл. США из-за добавления Stone Harbor и 1,3 млн. долл. США отдельных расходов на бизнес-инициативы.
Скорректированный операционный доход составил 90,1 млн долларов США и соответствующую маржу в 40,6% по сравнению с 116,8 млн долларов США и 50,2% в предыдущем квартале, в основном из-за сезонных расходов на трудоустройство и более низких сборов за управление инвестициями.
Чистая прибыль, приходящаяся на Virtus Investment Partners, Inc., с учетом корректировки, на одну разводненную обыкновенную акцию составила 7,87 доллара, что на 2,49 доллара, или на 24%, меньше, чем 10,36 доллара в предыдущем квартале. Последовательное снижение в первую очередь отразилось на сезонных расходах на трудоустройство и снижении платы за управление инвестициями.
Эффективная налоговая ставка с учетом поправок в размере 27% не изменилась по сравнению с предыдущим кварталом.
Select Balance Sheet Items (Unaudited) (in millions) |
|||||||||
As of |
As of |
||||||||
3/31/2022 |
3/31/2021 |
Change |
12/31/2021 |
Change |
|||||
Cash and cash equivalents |
$ 225.2 |
$ 228.3 |
(1%) |
$ 378.9 |
(41%) |
||||
Gross debt (1) |
$ 273.6 |
$ 199.8 |
37% |
$ 274.3 |
—% |
||||
Contingent consideration (2) |
$ 130.7 |
$ 137.7 |
(5%) |
$ 162.6 |
(20%) |
||||
Redeemable noncontrolling interests (3) |
$ 129.3 |
$ 98.1 |
32% |
$ 126.5 |
2% |
||||
Total equity exc. noncontrolling interests |
$ 816.5 |
$ 729.4 |
12% |
$ 828.3 |
(1%) |
||||
Working capital (4) |
$ 196.1 |
$ 211.1 |
(7%) |
$ 219.8 |
(11%) |
||||
Net debt (cash) (5) |
$ 48.4 |
$ (28.5) |
N/M |
$ (104.6) |
N/M |
(1) |
Excludes deferred financing costs of $7.7 million, $4.0 million, and $8.0 million, as of March 31, 2022, March 31, 2021, and December 31, 2021, respectively |
(2) |
Represents estimates of revenue participation and contingent payments |
(3) |
Excludes redeemable noncontrolling interests of consolidated investment products of $9.4 million, $14.4 million, and $12.4 million as of March 31, 2022, |
(4) |
Defined as cash and cash equivalents plus accounts receivable, net, less accrued compensation and benefits, accounts payable and accrued liabilities, dividends |
(5) |
Defined as gross debt less cash and cash equivalents |
N/M - Not Meaningful |
Оборотный капитал составил 196,1 млн долларов США на 31 марта 2022 года по сравнению с 219,8 млн долларов США на 31 декабря 2021 года, поскольку чистые денежные средства, полученные от бизнеса, были более чем компенсированы возвратом капитала акционерам и платой за закрытие Stone Harbor.
В течение квартала компания вернула акционерам 30,0 млн долларов США путем обратного выкупа 125 452 обыкновенных акций. Кроме того, компания погасила 61 859 акций за 13,4 миллиона долларов, чтобы выполнить налоговые обязательства сотрудников.
Конференц-связь
Руководство проведет селекторное совещание с инвесторами в пятницу, 29 апреля 2022 года, в 10 часов утра по восточному времени, чтобы обсудить эти финансовые результаты и связанные с ними вопросы. Доступ к веб-трансляции звонка можно получить в разделе по связям с инвесторами virtus.com , или по телефону 877-930-7765 для абонентов в США и Канаде или 253-336-7413 для международных абонентов (идентификатор конференции: 8588601). Презентация, которая будет рассмотрена в рамках телефонной конференции, будет доступна до звонка в разделе по связям с инвесторами virtus.com . Повторный вызов будет доступен до 6 мая 2022 года по телефону 855-859-2056 (США и Канада) или 404-537-3406 (международный) (Идентификатор конференции: 8588601).
О компании Virtus Investment Partners, Inc.
Virtus Investment Partners (NASDAQ: VRTS) - это уникальное партнерство бутик-инвестиционных менеджеров, исключительно приверженных долгосрочному успеху индивидуальных и институциональных инвесторов. Мы предоставляем продукты и услуги по управлению инвестициями от наших аффилированных менеджеров, каждый из которых имеет свой собственный инвестиционный стиль и автономный инвестиционный процесс, а также отдельных субадвайзеров. Инвестиционные решения доступны в различных дисциплинах и типах продуктов для удовлетворения широкого спектра потребностей инвесторов. Дополнительная информация о нашей фирме, инвестиционных партнерах и стратегиях доступна по адресу virtus.com .
U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) |
|||||||||
Three Months Ended |
Three |
||||||||
3/31/2022 |
3/31/2021 |
Change |
12/31/2021 |
Change |
|||||
Revenues |
|||||||||
Investment management fees |
$ 206,817 |
$ 173,269 |
19% |
$ 213,673 |
(3%) |
||||
Distribution and service fees |
20,007 |
20,348 |
(2%) |
23,464 |
(15%) |
||||
Administration and shareholder service fees |
24,344 |
22,560 |
8% |
27,615 |
(12%) |
||||
Other income and fees |
1,272 |
720 |
77% |
1,510 |
(16%) |
||||
Total revenues |
252,440 |
216,897 |
16% |
266,262 |
(5%) |
||||
Operating Expenses |
|||||||||
Employment expenses |
105,993 |
91,759 |
16% |
91,496 |
16% |
||||
Distribution and other asset-based expenses |
32,846 |
32,294 |
2% |
36,032 |
(9%) |
||||
Other operating expenses |
31,712 |
19,580 |
62% |
25,808 |
23% |
||||
Operating expenses of consolidated investment products |
740 |
559 |
32% |
1,705 |
(57%) |
||||
Change in fair value of contingent consideration |
— |
— |
N/M |
12,400 |
(100%) |
||||
Depreciation expense |
935 |
1,098 |
(15%) |
906 |
3% |
||||
Amortization expense |
14,662 |
9,465 |
55% |
14,262 |
3% |
||||
Total operating expenses |
186,888 |
154,755 |
21% |
182,609 |
2% |
||||
Operating Income (Loss) |
65,552 |
62,142 |
5% |
83,653 |
(22%) |
||||
Other Income (Expense) |
|||||||||
Realized and unrealized gain (loss) on investments, net |
(2,982) |
891 |
N/M |
1,026 |
N/M |
||||
Realized and unrealized gain (loss) of consolidated investment products, net |
(13,344) |
(4,687) |
185% |
2,980 |
N/M |
||||
Other income (expense), net |
287 |
1,771 |
(84%) |
632 |
(55%) |
||||
Total other income (expense), net |
(16,039) |
(2,025) |
N/M |
4,638 |
N/M |
||||
Interest Income (Expense) |
|||||||||
Interest expense |
(2,279) |
(2,314) |
(2%) |
(2,322) |
(2%) |
||||
Interest and dividend income |
328 |
136 |
141% |
793 |
(59%) |
||||
Interest and dividend income of investments of consolidated investment products |
20,380 |
23,876 |
(15%) |
20,765 |
(2%) |
||||
Interest expense of consolidated investment products |
(12,088) |
(14,448) |
(16%) |
(18,056) |
(33%) |
||||
Total interest income (expense), net |
6,341 |
7,250 |
(13%) |
1,180 |
437% |
||||
Income (Loss) Before Income Taxes |
55,854 |
67,367 |
(17%) |
89,471 |
(38%) |
||||
Income tax expense (benefit) |
16,735 |
15,153 |
10% |
27,458 |
(39%) |
||||
Net Income (Loss) |
39,119 |
52,214 |
(25%) |
62,013 |
(37%) |
||||
Noncontrolling interests |
(6,060) |
(15,626) |
(61%) |
(12,173) |
(50%) |
||||
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. |
$ 33,059 |
$ 36,588 |
(10%) |
$ 49,840 |
(34%) |
||||
Earnings (Loss) Per Share - Basic |
$ 4.38 |
$ 4.79 |
(9%) |
$ 6.54 |
(33%) |
||||
Earnings (Loss) Per Share - Diluted |
$ 4.22 |
$ 4.54 |
(7%) |
$ 6.29 |
(33%) |
||||
Cash Dividends Declared Per Common Share |
$ 1.50 |
$ 0.82 |
83% |
$ 1.50 |
—% |
||||
Weighted Average Shares Outstanding - Basic |
7,546 |
7,633 |
(1%) |
7,623 |
(1%) |
||||
Weighted Average Shares Outstanding - Diluted |
7,839 |
8,052 |
(3%) |
7,929 |
(1%) |
||||
N/M - Not Meaningful |
Assets Under Management - Product and Asset Class (in millions) |
|||||||||
Three Months Ended |
|||||||||
3/31/2021 |
06/30/2021 |
9/30/2021 |
12/31/2021 |
3/31/2022 |
|||||
By Product (period end): |
|||||||||
Open-End Funds (1) |
$ 73,185 |
$ 76,593 |
$ 74,365 |
$ 78,706 |
$ 73,149 |
||||
Closed-End Funds |
11,664 |
11,993 |
11,721 |
12,068 |
12,060 |
||||
Retail Separate Accounts |
37,244 |
40,578 |
41,528 |
44,538 |
40,824 |
||||
Institutional Accounts (2) |
46,787 |
49,474 |
49,691 |
51,874 |
57,309 |
||||
Total |
$ 168,880 |
$ 178,638 |
$ 177,305 |
$ 187,186 |
$ 183,342 |
||||
By Product (average) (3) |
|||||||||
Open-End Funds (1) |
$ 67,137 |
$ 75,285 |
$ 76,368 |
$ 80,303 |
$ 75,537 |
||||
Closed-End Funds |
9,340 |
11,936 |
12,091 |
12,043 |
11,762 |
||||
Retail Separate Accounts |
32,118 |
37,244 |
40,578 |
41,528 |
44,538 |
||||
Institutional Accounts (2) |
45,749 |
48,413 |
50,542 |
50,693 |
58,269 |
||||
Total |
$ 154,344 |
$ 172,878 |
$ 179,579 |
$ 184,567 |
$ 190,106 |
||||
By Asset Class (period end): |
|||||||||
Equity |
$ 106,183 |
$ 113,751 |
$ 112,732 |
$ 116,546 |
$ 102,989 |
||||
Fixed Income |
35,069 |
35,426 |
35,240 |
34,261 |
45,418 |
||||
Multi-Asset (4) |
22,498 |
23,668 |
23,641 |
24,853 |
23,415 |
||||
Alternatives (5) |
5,130 |
5,793 |
5,692 |
11,526 |
11,520 |
||||
Total |
$ 168,880 |
$ 178,638 |
$ 177,305 |
$ 187,186 |
$ 183,342 |
Assets Under Management - Average Management Fees Earned (6) (in basis points) |
|||||||||
Three Months Ended |
|||||||||
3/31/2021 |
6/30/2021 |
9/30/2021 |
12/31/2021 |
3/31/2022 |
|||||
By Product: |
|||||||||
Open-End Funds (1) |
47.5 |
45.9 |
45.7 |
48.5 |
46.5 |
||||
Closed-End Funds |
56.2 |
55.1 |
56.2 |
55.5 |
58.4 |
||||
Retail Separate Accounts |
45.7 |
44.2 |
44.0 |
44.6 |
43.6 |
||||
Institutional Accounts (2)(7) |
32.1 |
32.8 |
31.3 |
32.6 |
31.5 |
||||
All Products (7) |
43.1 |
42.5 |
42.0 |
43.7 |
41.9 |
(1) |
Represents assets under management of U.S. retail funds, global funds, exchange traded funds, and variable insurance funds |
(2) |
Represents assets under management of institutional separate and commingled accounts including structured products |
(3) |
Averages are calculated as follows: |
- Funds - average daily or weekly balances |
|
- Retail Separate Accounts - prior-quarter ending balance |
|
- Institutional Accounts - average of month-end balances in quarter |
|
(4) |
Includes strategies with substantial holdings in at least two of the following asset classes: equity, fixed income and alternatives |
(5) |
Consists of event-driven, real estate securities, infrastructure, long/short, and other strategies |
(6) |
Represents investment management fees, as adjusted, divided by average assets. Investment management fees, as adjusted, exclude the impact of consolidated |
(7) |
Includes performance-related fees, in basis points, earned during the three months ended as follows: |
3/31/2021 |
6/30/2021 |
9/30/2021 |
12/31/2021 |
3/31/2022 |
|||||
Institutional Accounts |
0.6 |
0.7 |
0.5 |
0.6 |
0.5 |
||||
All Products |
0.2 |
0.2 |
0.1 |
0.1 |
0.1 |
Assets Under Management - Asset Flows by Product (in millions) |
|||||||||
Three Months Ended |
|||||||||
3/31/2021 |
6/30/2021 |
9/30/2021 |
12/31/2021 |
3/31/2022 |
|||||
Open-End Funds (1) |
|||||||||
Beginning balance |
$ 51,608 |
$ 73,185 |
$ 76,593 |
$ 74,365 |
$ 78,706 |
||||
Inflows |
6,028 |
4,975 |
3,809 |
4,346 |
4,956 |
||||
Outflows |
(5,335) |
(5,079) |
(5,168) |
(5,943) |
(8,378) |
||||
Net flows |
693 |
(104) |
(1,359) |
(1,597) |
(3,422) |
||||
Market performance |
1,228 |
3,573 |
(775) |
2,282 |
(6,907) |
||||
Other (2) |
19,656 |
(61) |
(94) |
3,656 |
4,772 |
||||
Ending balance |
$ 73,185 |
$ 76,593 |
$ 74,365 |
$ 78,706 |
$ 73,149 |
||||
Closed-End Funds |
|||||||||
Beginning balance |
$ 5,914 |
$ 11,664 |
$ 11,993 |
$ 11,721 |
$ 12,068 |
||||
Inflows |
— |
— |
3 |
19 |
8 |
||||
Outflows |
— |
— |
— |
— |
— |
||||
Net flows |
— |
— |
3 |
19 |
8 |
||||
Market performance |
105 |
514 |
(114) |
718 |
(196) |
||||
Other (2) |
5,645 |
(185) |
(161) |
(390) |
180 |
||||
Ending balance |
$ 11,664 |
$ 11,993 |
$ 11,721 |
$ 12,068 |
$ 12,060 |
||||
Retail Separate Accounts |
|||||||||
Beginning balance |
$ 29,751 |
$ 37,244 |
$ 40,578 |
$ 41,528 |
$ 44,538 |
||||
Inflows |
2,699 |
2,273 |
2,003 |
2,240 |
2,022 |
||||
Outflows |
(896) |
(833) |
(1,231) |
(1,125) |
(1,394) |
||||
Net flows |
1,803 |
1,440 |
772 |
1,115 |
628 |
||||
Market performance |
2,141 |
1,910 |
178 |
1,895 |
(4,342) |
||||
Other (2) |
3,549 |
(16) |
— |
— |
— |
||||
Ending balance |
$ 37,244 |
$ 40,578 |
$ 41,528 |
$ 44,538 |
$ 40,824 |
Institutional Accounts (3) |
|||||||||
Beginning balance |
$ 44,921 |
$ 46,787 |
$ 49,474 |
$ 49,691 |
$ 51,874 |
||||
Inflows |
1,884 |
2,302 |
1,808 |
2,107 |
2,449 |
||||
Outflows |
(1,868) |
(2,184) |
(1,727) |
(1,625) |
(1,623) |
||||
Net flows |
16 |
118 |
81 |
482 |
826 |
||||
Market performance |
1,216 |
2,785 |
258 |
1,438 |
(5,012) |
||||
Other (2) |
634 |
(216) |
(122) |
263 |
9,621 |
||||
Ending balance |
$ 46,787 |
$ 49,474 |
$ 49,691 |
$ 51,874 |
$ 57,309 |
||||
Total |
|||||||||
Beginning balance |
$ 132,194 |
$ 168,880 |
$ 178,638 |
$ 177,305 |
$ 187,186 |
||||
Inflows |
10,611 |
9,550 |
7,623 |
8,712 |
9,435 |
||||
Outflows |
(8,099) |
(8,096) |
(8,126) |
(8,693) |
(11,395) |
||||
Net flows |
2,512 |
1,454 |
(503) |
19 |
(1,960) |
||||
Market performance |
4,690 |
8,782 |
(453) |
6,333 |
(16,457) |
||||
Other (2) |
29,484 |
(478) |
(377) |
3,529 |
14,573 |
||||
Ending balance |
$ 168,880 |
$ 178,638 |
$ 177,305 |
$ 187,186 |
$ 183,342 |
(1) |
Represents assets under management of U.S. retail funds, global funds, exchange traded funds, and variable insurance funds |
(2) |
Represents open-end and closed-end fund distributions net of reinvestments, the net change in assets from cash management strategies, and the impact |
(3) |
Represents assets under management of institutional separate and commingled accounts including structured products |
Информация и выверки, не относящиеся к GAAP (в тысячах, за исключением данных на акцию)
Финансовые показатели, не относящиеся к ОПБУ, включенные в этот выпуск, отличаются от финансовых показателей, определенных в соответствии с ОПБУ США, в результате реклассификации определенных статей отчета о прибылях и убытках, а также исключения определенных расходов и других статей, которые не отражают доходы, полученные от предоставления услуг по управлению инвестициями и связанных с ними услуг. Финансовые показатели, не относящиеся к ОПБУ, имеют существенные ограничения и не должны рассматриваться изолированно или в качестве замены показателей ОПБУ США.
Ниже приведены выверки и соответствующие примечания к наиболее сопоставимым показателям ОПБУ США с каждым показателем, не относящимся к ОПБУ:
Three Months Ended |
|||||
Revenues |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Total revenues, GAAP |
$ 252,440 |
$ 216,897 |
$ 266,262 |
||
Consolidated investment products revenues (1) |
2,354 |
2,673 |
2,374 |
||
Investment management fees (2) |
(12,838) |
(11,943) |
(12,567) |
||
Distribution and service fees (2) |
(20,008) |
(20,351) |
(23,465) |
||
Total revenues, as adjusted |
$ 221,948 |
$ 187,276 |
$ 232,604 |
Operating Expenses |
|||||
Total operating expenses, GAAP |
$ 186,888 |
$ 154,755 |
$ 182,609 |
||
Consolidated investment products expenses (1) |
(740) |
(559) |
(1,705) |
||
Distribution and other asset-based expenses (3) |
(32,846) |
(32,294) |
(36,032) |
||
Amortization of intangible assets (4) |
(14,662) |
(9,465) |
(14,262) |
||
Acquisition and integration expenses (5) |
(6,667) |
(2,647) |
(14,454) |
||
Other (6) |
(122) |
(480) |
(374) |
||
Total operating expenses, as adjusted |
$ 131,851 |
$ 109,310 |
$ 115,782 |
Operating Income (Loss) |
|||||
Operating income (loss), GAAP |
$ 65,552 |
$ 62,142 |
$ 83,653 |
||
Consolidated investment products (earnings) losses (1) |
3,094 |
3,232 |
4,079 |
||
Amortization of intangible assets (4) |
14,662 |
9,465 |
14,262 |
||
Acquisition and integration expenses (5) |
6,667 |
2,647 |
14,454 |
||
Other (6) |
122 |
480 |
374 |
||
Operating income (loss), as adjusted |
$ 90,097 |
$ 77,966 |
$ 116,822 |
||
Operating margin, GAAP |
26.0% |
28.7% |
31.4% |
||
Operating margin, as adjusted |
40.6% |
41.6% |
50.2% |
Three Months Ended |
|||||
Income (Loss) Before Taxes |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Income (loss) before taxes, GAAP |
$ 55,854 |
$ 67,367 |
$ 89,471 |
||
Consolidated investment products (earnings) losses (1) |
806 |
(30) |
(517) |
||
Amortization of intangible assets (4) |
14,662 |
9,465 |
14,262 |
||
Acquisition and integration expenses (5) |
6,667 |
2,647 |
14,454 |
||
Other (6) |
122 |
480 |
374 |
||
Seed capital and CLO investments (gains) losses (7) |
10,735 |
(1,533) |
(1,285) |
||
Income (loss) before taxes, as adjusted |
$ 88,846 |
$ 78,396 |
$ 116,759 |
Income Tax Expense (Benefit) |
|||||
Income tax expense (benefit), GAAP |
$ 16,735 |
$ 15,153 |
$ 27,458 |
||
Tax impact of: |
|||||
Amortization of intangible assets (4) |
3,974 |
2,528 |
3,844 |
||
Acquisition and integration expenses (5) |
1,807 |
707 |
3,896 |
||
Other (6) |
2,603 |
2,931 |
(850) |
||
Seed capital and CLO investments (gains) losses (7) |
(1,041) |
(377) |
(2,880) |
||
Income tax expense (benefit), as adjusted |
$ 24,078 |
$ 20,942 |
$ 31,468 |
||
Effective tax rate, GAAPA |
30.0% |
22.5% |
30.7% |
||
Effective tax rate, as adjustedB |
27.1% |
26.7% |
27.0% |
A |
Reflects income tax expense (benefit), GAAP, divided by income (loss) before taxes, GAAP |
B |
Reflects income tax expense (benefit), as adjusted, divided by income (loss) before taxes, as adjusted |
Net Income (Loss) Attributable to Virtus Investment Partners, Inc. |
|||||
Net income (loss) attributable to Virtus Investment Partners, Inc., GAAP |
$ 33,059 |
$ 36,588 |
$ 49,840 |
||
Amortization of intangible assets, net of tax (4) |
9,952 |
6,201 |
9,682 |
||
Acquisition and integration expenses, net of tax (5) |
4,860 |
1,940 |
10,558 |
||
Other, net of tax (6) |
2,007 |
11,047 |
10,455 |
||
Seed capital and CLO investments (gains) losses, net of tax (7) |
11,776 |
(1,156) |
1,595 |
||
Net income (loss) attributable to Virtus Investment Partners, Inc., as |
$ 61,654 |
$ 54,620 |
$ 82,130 |
||
Weighted average shares outstanding - diluted |
7,839 |
8,052 |
7,929 |
||
Earnings (loss) per share - diluted, GAAP |
$ 4.22 |
$ 4.54 |
$ 6.29 |
||
Earnings (loss) per share - diluted, as adjusted |
$ 7.87 |
$ 6.78 |
$ 10.36 |
Three Months Ended |
|||||
Administration and Shareholder Services Fees |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Administration and shareholder service fees, GAAP |
$ 24,344 |
$ 22,560 |
$ 27,615 |
||
Consolidated investment products fees (1) |
43 |
61 |
50 |
||
Administration and shareholder service fees, as adjusted |
$ 24,387 |
$ 22,621 |
$ 27,665 |
Employment Expenses |
|||||
Employment expenses, GAAP |
$ 105,993 |
$ 91,759 |
$ 91,496 |
||
Acquisition and integration expenses (5) |
(4,282) |
(867) |
846 |
||
Other (6) |
(122) |
(480) |
(346) |
||
Employment expenses, as adjusted |
$ 101,589 |
$ 90,412 |
$ 91,996 |
Other Operating Expenses |
|||||
Other operating expenses, GAAP |
$ 31,712 |
$ 19,580 |
$ 25,808 |
||
Acquisition and integration expenses (5) |
(2,385) |
(1,780) |
(2,900) |
||
Other (6) |
— |
— |
(28) |
||
Other operating expenses, as adjusted |
$ 29,327 |
$ 17,800 |
$ 22,880 |
Total Other Income (Expense), Net, |
|||||
Total other income (expense), net GAAP |
$ (16,039) |
$ (2,025) |
$ 4,638 |
||
Consolidated investment products (1) |
5,136 |
5,256 |
(2,866) |
||
Seed capital and CLO investments (gains) losses (7) |
10,735 |
(1,533) |
(1,285) |
||
Total other income (expense), net as adjusted |
$ (168) |
$ 1,698 |
$ 487 |
Interest and Dividend Income |
|||||
Interest and dividend income, GAAP |
$ 328 |
$ 136 |
$ 793 |
||
Consolidated investment products (1) |
868 |
910 |
979 |
||
Interest and dividend income, as adjusted |
$ 1,196 |
$ 1,046 |
$ 1,772 |
Total Noncontrolling Interests |
|||||
Total noncontrolling interests, GAAP |
$ (6,060) |
$ (15,626) |
$ (12,173) |
||
Consolidated investment products (1) |
(806) |
30 |
517 |
||
Amortization of intangible assets (4) |
(736) |
(736) |
(736) |
||
Other (6) |
4,488 |
13,498 |
9,231 |
||
Total noncontrolling interests, as adjusted |
$ (3,114) |
$ (2,834) |
$ (3,161) |
Примечания к выверкам:
Реклассификации:
1. Консолидированные инвестиционные продукты - доходы и расходы, полученные в результате операционной деятельности взаимных фондов и ОО, которые консолидируются в финансовой отчетности. Руководство считает, что исключение этой операционной деятельности для отражения чистых доходов и расходов компании до консолидации этих продуктов соответствует подходу к отражению ее операционных результатов от управления активами сторонних клиентов.
Другие Корректировки:
Доходы, Связанные
2. Плата за управление инвестициями / Дистрибуцию и обслуживание - Каждая из этих статей дохода сокращена, чтобы исключить сборы, передаваемые сторонним посредникам-клиентам, которые владеют отношениями с розничными клиентами и несут ответственность за распространение продукта и обслуживание клиента. Размер комиссионных колеблется каждый период, исходя из заранее определенного процента от стоимости активов под управлением, и варьируется в зависимости от типа инвестиционного продукта. Конкретные корректировки заключаются в следующем:
Плата за управление инвестициями - На основе конкретных соглашений часть платы за управление инвестициями передается сторонним посредникам за услуги инвесторам в спонсируемых инвестиционных продуктах.
Плата за распространение и обслуживание - На основе отдельных соглашений сборы, взимаемые компанией, затем передаются сторонним клиентским посредникам за услуги инвесторам в спонсируемых инвестиционных продуктах. Корректировка представляет собой все сборы компании за распространение и обслуживание, которые отражаются отдельной строкой в сокращенных консолидированных отчетах о прибылях и убытках.
Руководство считает, что внесение этих корректировок помогает сравнить операционные результаты компании с другими фирмами по управлению активами, которые не используют сторонних клиентских посредников.
Расходы, Связанные
3. Расходы на распределение и другие расходы, связанные с активами, - в первую очередь платежи сторонним клиентским посредникам за предоставление услуг инвесторам в спонсируемых инвестиционных продуктах. Руководство считает, что внесение этой корректировки помогает сравнить операционные результаты компании с другими фирмами по управлению активами, которые не используют сторонних клиентских посредников.
4. Амортизация нематериальных активов - Неденежные расходы на амортизацию или расходы на обесценение, если таковые имеются, относящиеся к нематериальным активам, связанным с приобретением, включая любую часть, которая распределяется между неконтролирующими долями участия. Руководство считает, что внесение этой корректировки помогает сравнить операционные результаты компании с другими фирмами по управлению активами, которые не занимались приобретениями.
5. Расходы на приобретение и интеграцию - Расходы, непосредственно связанные с деятельностью по приобретению и интеграции. Расходы на приобретение включают затраты на закрытие сделки, изменение справедливой стоимости условного вознаграждения, определенные профессиональные гонорары и финансовые сборы. Расходы на интеграцию включают понесенные расходы, непосредственно связанные с объединением бизнеса, включая компенсацию, реструктуризацию и выходные пособия, профессиональные гонорары, гонорары за консультации и другие расходы. Руководство считает, что внесение этих корректировок помогает сравнить операционные результаты компании с другими фирмами по управлению активами, которые не занимались приобретениями.
Компоненты расходов на приобретение и интеграцию за соответствующие периоды показаны ниже:
Three Months Ended |
|||||
Acquisition and Integration Expenses |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Employment expenses |
$ 4,282 |
$ 867 |
$ (846) |
||
Other operating expenses |
2,385 |
1,780 |
2,900 |
||
Change in fair value of contingent consideration |
— |
— |
12,400 |
||
Total Acquisition and Integration Expenses |
$ 6,667 |
$ 2,647 |
$ 14,454 |
6. Прочие - Определенные расходы, которые не отражают текущее получение прибыли от бизнеса. Расходы на оплату труда и неконтролирующие доли участия корректируются с учетом оценки справедливой стоимости аффилированных миноритарных долей участия. Прочие операционные расходы скорректированы с учетом некапитализированных затрат на выпуск долговых обязательств. Процентные расходы корректируются с целью исключения прибыли от досрочного погашения долга и списания ранее капитализированных затрат, связанных с изменением долга. Статьи расходов (выгод) по налогу на прибыль корректируются с учетом неопределенных налоговых позиций, изменений в налоговом законодательстве, оценочных резервов и других необычных или редких статей, не связанных с текущими операционными результатами, для отражения нормализованной эффективной ставки. Руководство считает, что внесение этих корректировок помогает сравнить операционные результаты компании с предыдущими периодами.
Компоненты Прочих за соответствующие периоды показаны ниже:
Three Months Ended |
|||||
Other |
3/31/2022 |
3/31/2021 |
12/31/2021 |
||
Employment expense fair value adjustments |
$ 122 |
$ 480 |
$ 346 |
||
Non-capitalized debt issuance costs |
— |
— |
28 |
||
Tax impact of adjustments |
(33) |
(128) |
(101) |
||
Other discrete tax adjustments |
(2,570) |
(2,803) |
951 |
||
Affiliate minority interest fair value adjustments |
4,488 |
13,498 |
9,231 |
||
Total Other |
$ 2,007 |
$ 11,047 |
$ 10,455 |
Начальный капитал и связанные с CLO
7. Начальный капитал и инвестиции в CLO (прибыль) убытки - Прибыли и убытки (реализованные и нереализованные) от начального капитала и инвестиций в CLO. Прибыли и убытки (реализованные и нереализованные), возникающие в результате инвестиций в начальный капитал и инвестиций CLO, могут значительно варьироваться от периода к периоду и не отражают операционные результаты компании от предоставления услуг по управлению инвестициями и связанных с ними услуг. Руководство считает, что внесение этой корректировки помогает сравнить операционные результаты компании с предыдущими периодами и с другими фирмами по управлению активами, у которых нет значительного начального капитала и инвестиций в CLO.
Скорректированные доходы включают комиссионные доходы, уплачиваемые клиентами за управление инвестициями и связанные с ними услуги. Скорректированная выручка для целей расчета чистой прибыли, относящейся к Virtus Investment Partners, Inc., скорректированная, отличается от ОПБУ США, а именно тем, что исключает влияние операционной деятельности консолидированных инвестиционных продуктов и уменьшается, чтобы исключить комиссионные, передаваемые сторонним посредникам, которые владеют отношениями с розничными клиентами и несут ответственность для распространения продукта и обслуживания клиента.
Скорректированные операционные расходы рассчитываются с учетом расходов, связанных с текущей продолжающейся деятельностью. Скорректированные операционные расходы для целей расчета чистой прибыли, относящейся к Virtus Investment Partners, Inc., скорректированные, отличаются от расходов по ОПБУ США тем, что они исключают амортизацию или обесценение, если таковые имеются, нематериальных активов, реструктуризацию и выход из группы, влияние консолидированных инвестиционных продуктов, расходы, связанные с приобретением и интеграцией, и некоторые другие расходы, которые не отражают текущее получение прибыли от бизнеса.
Скорректированная операционная маржа - это показатель, используемый для оценки эффективности, представленный скорректированным операционным доходом, деленным на скорректированную выручку.
Скорректированная прибыль (убыток) на акцию представляет собой чистую прибыль (убыток), относящуюся к Virtus Investment Partners, Inc., скорректированную, деленную на средневзвешенное количество акций в обращении, скорректированное, на базовой или разводненной основе.
Прогнозная информация
Настоящий пресс-релиз содержит заявления, которые являются или могут рассматриваться как заявления прогнозного характера. Все заявления, которые не являются историческими фактами, включая заявления о наших убеждениях или ожиданиях, являются "прогнозными заявлениями" по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года с внесенными в него поправками. Эти заявления могут быть идентифицированы с помощью такой прогнозной терминологии, как "ожидать", "оценивать", "намерение", "планировать", "намереваться", "полагать", "предвидеть", "может", "будет", "должен", "может", "продолжать", "проект", "возможность", "прогнозировать", "будет", "потенциал", "будущее", "прогноз", "гарантия", "предполагать", "вероятно", "цель" или аналогичные утверждения или варианты таких терминов.
Наши прогнозные заявления основаны на ряде ожиданий, предположений и прогнозов относительно компании и рынков, на которых мы работаем, не являются гарантией будущих результатов или результатов деятельности и сопряжены со значительными рисками и неопределенностью, включая предположения и прогнозы относительно наших активов под управлением, притока и оттока чистых активов, операционных денежных средств потоки, бизнес-планы и возможность заимствования на все будущие периоды. Все прогнозные заявления сделаны только на дату настоящего выпуска. Компания не может дать никаких гарантий в том, что такие ожидания или прогнозные заявления окажутся верными. Фактические результаты могут существенно отличаться.
Наш бизнес и наши прогнозные заявления связаны с существенным известные и неизвестные риски и неопределенности, включая те, которые обсуждаются в разделе "Факторы риска" и "описание и анализ финансового состояния и результатов деятельности" в 2021 наш годовой отчет по форме 10-K, дополненные наши периодические заявок по ценным бумагам и биржам (далее - "комиссия"), а также риски и неопределенности, вытекающие из: (I) любое сокращение активов под управлением, а также (II) общие отечественных и мировых экономических, политических и пандемии условий; (III) в неспособности к достижению ожидаемых выгод от стратегических операций; (IV) в связи с сохраняющимся воздействием COVID-19 пандемией и связанных с ними глобальных экономических потрясений; (в) изъятие, перезаключения или расторжения инвестиционного консультативного соглашения; (VI) в ущерб нашей репутации; (VII) и невозможности удовлетворить финансовые обязательства и платежи, связанные с нашей задолженности; (VIII в) невозможность привлечения и удержания ключевого персонала; (іх) проблемы конкуренции с которыми мы сталкиваемся в нашей компании; (Х) неблагоприятные явления, связанные с неаффилированными subadvisers; (Си) негативные изменения в основных распределительных отношений; (ХІІ) перебои или отказ в предоставлении технологических услуг нам или третьим лицам; (XIII в) убыток от инвестиций; (XIV), в отсутствие достаточного капитала на приемлемых условиях; (XV в) неблагоприятные нормативно-правовых разработок; (XVI в.) несоблюдение инвестиционные рекомендации или иных договорных требований; (XVII в.) неблагоприятные гражданского судопроизводства и правительственных расследований или судебных разбирательств; (XVIII в.) неблагоприятных изменений в налоговом законодательстве или ограничений; (XIX в) изменчивость, связанную с нашим обыкновенным акциям; (ХХ) невозможность сделать квартальных дивидендов по простым акциям; (XXI) от определенных корпоративного управления положения нашего устава и Устава; (ХХІІ) убытки или расходы не покрываются договором страхования; (ХХІІІ) от обесценения гудвила или нематериальных активов; и другие риски и неопределенности. Любое возникновение или любое существенное неблагоприятное изменение одного или нескольких факторов риска или рисков и неопределенностей, упомянутых выше, в нашем Годовом отчете за 2021 год по форме 10-K и других наших периодических отчетах, поданных в SEC, может существенно и негативно повлиять на нашу деятельность, финансовые результаты, денежные потоки, перспективы и ликвидность.
Некоторые другие факторы, которые могут повлиять на нашу дальнейшую деятельность, перспективы, финансовые результаты и ликвидность, или которые могут привести к тому, что фактические результаты будут отличаться от таких прогнозных заявлений, обсуждаются или включаются в периодические отчеты компании, подаваемые в SEC, и доступны на нашем веб-сайте по адресу virtus.com в разделе "Отношения с инвесторами". Вам настоятельно рекомендуется тщательно учитывать все такие факторы.
Компания не обязуется и не планирует обновлять или пересматривать какие-либо такие прогнозные заявления, чтобы отразить фактические результаты, изменения в планах, предположениях, оценках или прогнозах или другие обстоятельства, произошедшие после даты настоящего выпуска, даже если такие результаты, изменения или обстоятельства ясно дают понять, что любая прогнозная информация не будет реализовано. Если в будущем мы сделаем какие-либо публичные заявления или раскрытия, которые изменят или повлияют на какие-либо прогнозные заявления, содержащиеся в этом выпуске или сопровождающие его, такие заявления или раскрытия будут считаться изменяющими или заменяющими такие заявления в этом выпуске.
ИСТОЧНИК Virtus Investment Partners, Inc.
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