Revenue and Earnings - Revenue for 2024 was $151.1 million, an increase of 11% compared to $136.7 million in 2023[3] - Adjusted earnings per share for 2024 were $12.92, compared to $10.28 in 2023, representing a 25.7% increase[3] - The net operating profit margin improved to 29% in 2024, up from 26% in 2023[3] - The adjusted operating margin improved to 32% in 2024, compared to 30% in 2023[3] Assets Under Management - Assets under management (AUM) at the end of 2024 were $30.0 billion, up from $27.4 billion at the end of 2023, reflecting a year-over-year increase of 5.8%[7] - Average AUM and AUA combined for 2024 was $31.6 billion, compared to $27.3 billion in 2023, an increase of 15.8%[3] Shareholder Returns - The company returned approximately $46.8 million to shareholders in 2024, including $30.3 million through share repurchases and $16.5 million in dividends[3] - The Company approved a quarterly cash dividend of $1.50 per common share, to be paid on March 21, 2025[5] Investment Income - Investment income for 2024 was $15.1 million, down from $23.1 million in 2023, a decline of 34.7%[3] Client Flows - Net client outflows were $0.3 billion in 2024, a decrease from $0.5 billion in 2023[3] Non-GAAP Financial Measures - The Company reported a non-GAAP effective tax rate of 26.8% for both 2024 and 2023[3] - The non-GAAP adjustments aim to clarify the core operating results by excluding the impact of the Consolidated Fund on the Company's GAAP consolidated statements[1] - The adjustments also account for net gains or losses from the non-consolidated investment portfolio, enhancing comparability of operating results[2] - The Company emphasizes that investors should not rely solely on non-GAAP financial measures as substitutes for GAAP-compliant financial information[4] Risks and Uncertainties - The Company faces risks that could materially affect actual results, including potential reductions in Assets Under Management (AUM) or Assets Under Administration (AUA)[14] - Forward-looking statements are subject to various risks and uncertainties, and actual results may differ significantly from expectations[15] - The Company does not commit to updating forward-looking statements unless required by law, acknowledging the emergence of new risks over time[16] - Factors such as competition, regulatory changes, and economic conditions may impact the Company's performance and strategic objectives[14] Technological Adaptation - The Company is focused on adapting to technological changes, including artificial intelligence, to enhance its business operations[14] Risk Factors - The Company has outlined various risk factors in its Annual Report that could influence its financial performance and strategic direction[14]

Core Insights - Diamond Hill Investment Group, Inc. (NASDAQ: DHIL) is highlighted as a favorable opportunity for net buyers of stocks due to its ability to grow assets under management [1] Company Analysis - The company has shown a strong capacity for asset growth, which is a positive indicator for potential investors [1] Market Context - The article reflects a broader perspective on market trends and the importance of identifying value in investment opportunities [1]

Revenue Growth - Total revenue for the three months ended September 30, 2024, was $39,018,232, an increase from $35,554,280 in the same period of 2023, representing a growth of approximately 6.9%[47][48] - For the nine months ended September 30, 2024, total revenue reached $111,974,495, compared to $102,895,420 for the same period in 2023, indicating an increase of about 8.5%[50][51] - Investment advisory revenue for the three months ended September 30, 2024, was $23,595,204, up from $21,714,872 in 2023, reflecting a growth of approximately 8.6%[47][48] - Mutual fund administration gross revenue for the three-month period ended September 30, 2024, was $6.4 million, up from $5.5 million in 2023, representing an increase of about 16.6%[59] - Total revenue for the three months ended September 30, 2024, was $39.0 million, a 10% increase from $35.6 million in the same period of 2023[128] - Total revenue for the nine months ended September 30, 2024, was $111.974 million, up from $102.895 million in 2023, reflecting a 9% increase[149] Investment Performance - The Company recorded net investment income of $18.4 million for the nine-month period ended September 30, 2024, compared to $9.7 million for the same period in 2023, indicating a significant increase of approximately 89.5%[68] - The Company experienced net cash inflows of $2.0 billion during the three months ended September 30, 2024, primarily due to market appreciation[126] - For the nine months ended September 30, 2024, AUM increased by $3.9 billion, driven by market appreciation and net inflows into the Company's strategies[126] - The Company reported a net market appreciation of $2.006 billion during the three months ended September 30, 2024[122] Assets and Liabilities - As of September 30, 2024, accounts receivable from the Funds amounted to $10.0 million, compared to $9.1 million as of December 31, 2023, showing an increase of approximately 9.9%[38] - Cash and cash equivalents as of September 30, 2024, included $2.0 million in demand deposits and $31.7 million in money market mutual funds, totaling $33.7 million[37] - Total investments as of September 30, 2024, amounted to $163.3 million, an increase from $147.7 million as of December 31, 2023, reflecting a growth of about 10.5%[67] - The Company has a committed Line of Credit Agreement allowing borrowing up to $25 million, with no borrowings outstanding as of September 30, 2024[76][77] - Deferred compensation liability increased to $38.9 million as of September 30, 2024, up from $36.1 million as of December 31, 2023[85] Shareholder Information - Net income attributable to common shareholders for the nine months ended September 30, 2024, was $35.8 million, compared to $28.6 million for the same period in 2023[100] - Basic earnings per share for the nine months ended September 30, 2024, was $12.90, up from $9.61 for the same period in 2023[100] - The Company approved a quarterly cash dividend of $1.50 per share, expected to reduce shareholders' equity by approximately $4.1 million[104] - The company expects to pay a regular quarterly dividend of $1.50 per share, totaling $12.5 million for the nine months ended September 30, 2024[161] Operating Expenses - Total expenses for the three months ended September 30, 2024, were $28.8 million, a 24% increase from $23.2 million in 2023[138] - Employee compensation and related costs (excluding deferred compensation) increased by 9% to $19.5 million for the three months ended September 30, 2024[138] - Total operating expenses for the nine months ended September 30, 2024, were $81,322,000, with net operating income of $30,653,000, leading to a net income of $35,786,000 attributable to common shareholders[177] Taxation - The effective income tax rate for the nine months ended September 30, 2024, was 27.0%, compared to 27.8% for the same period in 2023[93] - The effective tax rate for the three months ended September 30, 2024, was 26.4%, compared to 28.0% for the same period in 2023[179] Market and Client Strategy - The Company emphasizes a client alignment philosophy to ensure clients' interests come first, which is reflected in its investment strategies[111] - The average advisory fee rate decreased from 0.48% in the nine months ended September 30, 2023, to 0.46% in the same period of 2024[144] - The average advisory fee rate decreased from 0.48% to 0.46% due to growth in lower fee fixed income assets, which rose from 10% to 14% of AUM and AUA[150] Stock and Equity Compensation - The Company has 153,478 DHIL common shares available for grants under the 2022 Equity and Cash Incentive Plan as of September 30, 2024[78] - As of September 30, 2024, total outstanding restricted stock increased to 195,620 shares, with a weighted-average grant date price per share of $158.13[81] - Total deferred equity compensation related to unvested restricted stock was $18.5 million as of September 30, 2024[81] - The company repurchased 142,425 common shares for a total of $21.7 million during the nine months ended September 30, 2024[160]

Financial Performance - Revenue for Q3 2024 was $39.0 million, a 10% increase from $35.6 million in Q3 2023[5] - Net income attributable to common shareholders was $14.6 million, compared to $6.5 million in Q3 2023, representing a 126% increase[5] - Earnings per share attributable to common shareholders - diluted was $5.35, up 143% from $2.20 in Q3 2023[5] - For the three months ended September 30, 2023, the net income attributable to common shareholders was $6,473,000, with earnings per share of $2.20, reflecting a net operating profit margin of 35%[12] - For the nine months ended September 30, 2024, the GAAP basis net income was $35,786,000, with earnings per share of $12.90 and a net operating profit margin of 27%[12] - The adjusted non-GAAP basis for the nine months ended September 30, 2023, showed a net income of $23,841,000, with earnings per share of $8.01 and a net operating profit margin of 32%[12] Assets and Management - Total assets under management (AUM) and assets under advisement (AUA) reached $33.2 billion, up from $29.2 billion as of December 31, 2023, and $26.6 billion as of September 30, 2023[2] - Total fixed income assets reached $5.5 billion in Q3 2024, reflecting the launch of new investment strategies[2] Client Activity - The company reported net client outflows of $22.0 million, significantly improved from $343.0 million in net outflows for Q3 2023[2] Investment Income - Investment income was $9.7 million, compared to an investment loss of $4.6 million in Q3 2023[2] Shareholder Returns - The company returned approximately $7.5 million to shareholders, including $3.4 million through share repurchases and $4.1 million in dividends[2] - The board approved a quarterly cash dividend of $1.50 per common share, payable on December 6, 2024[3] - A new share repurchase plan was authorized, allowing for the repurchase of up to $50 million in common shares[4] Operating Expenses - The total operating expenses for the same period were $23,193,000, while the net operating income was $12,361,000[12] - The total operating expenses for the nine months ended September 30, 2023, were $71,806,000, with a net operating income of $31,089,000[12] - The company adjusted for deferred compensation liability, which impacted the net operating income by $(4,571,000) for the nine months ended September 30, 2024[12] Tax and Non-Operating Income - The non-GAAP effective tax rates were 26.4% for the three months ended September 30, 2024, and 28.0% for the three months ended September 30, 2023[13] - The company reported total nonoperating income (loss) of $(4,637,000) for the three months ended September 30, 2023[12] Forward-Looking Statements - Forward-looking statements include expectations regarding operating results, AUM levels, and technological developments, but are subject to various risks and uncertainties[15] Non-GAAP Measures - The company emphasizes that non-GAAP financial measures should not be considered alone or as a substitute for GAAP financial information[14]

Revenue and Growth - Total revenue for the three months ended June 30, 2024, was $36.7 million, compared to $33.4 million for the same period in 2023, representing an increase of approximately 9.5%[36] - Revenue from investment advisory services for the six months ended June 30, 2024, was $69.2 million, up from $63.5 million in the same period of 2023, reflecting a growth of about 8.5%[37] - Total revenue for the three months ended June 30, 2024, increased by $3.3 million, or 10%, compared to the same period in 2023, primarily due to a 16% increase in average AUM and AUA[98] - Total revenue for the six months ended June 30, 2024, increased by $5.6 million, or 8%, compared to the same period in 2023, primarily due to a 13% increase in total average AUM and AUA[108] Assets Under Management (AUM) - Total Assets Under Management (AUM) increased to $29.291 billion as of June 30, 2024, representing a 12% increase from $26.066 billion in June 2023[84] - The average AUM during the three months ended June 30, 2024, was $29.206 billion, compared to $25.056 billion in the same period of 2023[91] - The Company’s AUM by product showed a 90% increase in Collective Investment Trusts, rising from $975 million in June 2023 to $1.857 billion in June 2024[84] - Fixed Income AUM increased by 69% to $4.873 billion, driven by significant inflows into the Short Duration Securitized Bond and Core Fixed Income strategies[89] - The Large Cap strategy AUM increased to $17.917 billion, a 6% rise from $16.834 billion in June 2023[88] - The Company noted a 106% increase in International Equity AUM, growing from $65 million to $134 million[87] Financial Performance - Net operating income for the three months ended June 30, 2024, was $12.1 million, a 56% increase from $7.8 million in the same period in 2023[97] - Net income attributable to common shareholders for the three months ended June 30, 2024, was $8.1 million ($2.93 per diluted share), down from $9.4 million ($3.18 per diluted share) in the same period in 2023[100] - The company reported a net operating income of $12,133,000 for the three months ended June 30, 2024, compared to $7,786,000 for the same period in 2023, marking an increase of approximately 56%[131] - Net income attributable to common shareholders for the six months ended June 30, 2024, was $21.1 million ($7.57 per diluted share), compared to $22.1 million ($7.39 per diluted share) in the same period in 2023[109] Expenses and Costs - Total operating expenses for the three months ended June 30, 2024, were $24,529,000, compared to $25,564,000 for the same period in 2023, reflecting a decrease of approximately 4%[131] - Total operating expenses for the six months ended June 30, 2024, were $52,521,000, compared to $48,613,000 for the same period in 2023, reflecting an increase of approximately 8%[132] - Employee compensation and related costs (excluding deferred compensation) increased by $2.7 million, or 8%, to $36.5 million for the six months ended June 30, 2024[113] - General and administrative expenses increased by $1.3 million, or 18%, to $8.4 million, driven by technology support and research management system improvements[115] Investment Performance - The Company reported realized gains of $631,300 for the three months ended June 30, 2024, compared to a loss of $12,598 for the same period in 2023[53] - The company experienced $0.7 million in investment losses for the three months ended June 30, 2024, compared to $6.3 million in investment income for the same period in 2023[100] - The Company recorded a net investment income loss of $(654,591) for the three months ended June 30, 2024, compared to a gain of $6,276,708 for the same period in 2023[53] Shareholder Returns - The Company approved a quarterly cash dividend of $1.50 per share, expected to reduce shareholders' equity by approximately $4.1 million[75] - The company expects to pay a regular quarterly dividend of $1.50 per share, totaling $8.4 million for the first two quarters of 2024[120] - The company repurchased 120,049 common shares for a total of $18.4 million during the six months ended June 30, 2024[119] Tax and Regulatory Matters - The effective income tax rate for the six months ended June 30, 2024, was 27.5%, compared to 26.6% for the same period in 2023[68] - The effective tax rate for the three months ended June 30, 2024, was 29.2%, consistent with the same rate for the three months ended June 30, 2023[134] - The Company did not recognize any interest and penalties related to tax uncertainties during the six months ended June 30, 2024[70] Cash Flow and Liquidity - Net cash provided by operating activities was $6.9 million for the six months ended June 30, 2024, primarily driven by net income of $21.1 million[124] - Cash and cash equivalents, investments, and accounts receivable totaled $164.2 million as of June 30, 2024, compared to $181.8 million as of December 31, 2023[117] - The Company did not borrow under its $25 million line of credit during the six months ended June 30, 2024, and had no outstanding borrowings as of that date[57] Accounting and Estimates - The Company has maintained its critical accounting estimates with no material changes during the quarter ended June 30, 2024[136] - The Company recognizes revenue when performance obligations are satisfied under client contracts, with investment advisory fees recorded as services are performed[35]

Company Overview - Diamond Hill Investment Group Inc. has appointed Gordon Fowler as a Director, who will serve on the Audit Committee, Compensation Committee, and Nominating and Governance Committee [3] - As of June 30, 2024, Diamond Hill's assets under management and assets under advisement totaled $31.1 billion [5] Leadership Experience - Gordon Fowler brings over 40 years of experience in the financial services industry, including a 20-year tenure at Glenmede Corporation where he served as CEO and President [1] - Fowler has held various roles at J.P. Morgan Chase, culminating in the position of Chief Investment Officer of the J.P. Morgan Private Bank [1][2] Investment Philosophy - Diamond Hill emphasizes a valuation-driven investment philosophy, long-term perspective, capacity discipline, and client alignment [5] - Fowler expressed alignment with Diamond Hill's investment philosophy and commitment to client experience, aiming to strengthen the firm's position in active management [4][5]

RBFried/E+ via Getty Images Warren Buffett once said that, "We are a net buyer of stocks over time. Just like being a net buyer of food. I expect to buy food for the rest of my life and I hope that food prices go down tomorrow." Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) is an opportunity for long-term net buyers of stocks to invest in a business that has been chronically undervalued for years and that will continue to be undervalued. Diamond Hill has a simple business model, generates large amounts ...

United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-24498 DIAMOND HILL INVESTMENT GROUP, INC. (Exact name of registrant as specified in its charter) (State of incorporation) Ohio 6 ...

FOR IMMEDIATE RELEASE: Lara Hoffmans—Managing Director-Marketing 614-255-5550 (lhoffmans@diamond-hill.com) DIAMOND HILL INVESTMENT GROUP, INC. REPORTS RESULTS FOR FIRST QUARTER 2024 AND DECLARES QUARTERLY DIVIDEND COLUMBUS, Ohio - May 8, 2024 -- Diamond Hill Investment Group, Inc. (Nasdaq: DHIL) today reported unaudited financial results for the first quarter of 2024. The following are selected highlights for the quarter ended March 31, 2024: "Long-term investment performance has continued to improve across ...

Table of Contents United States Securities and Exchange Commission Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-24498 DIAMOND HILL INVESTMENT GROUP, INC. (Exact name of registrant as specified in its charter) Indicate by check ...