Virtus Investment Partners, Inc. (NYSE:VRTS) Q1 2024 Earnings Conference Call April 26, 2024 10:00 AM ET Company Participants Sean Rourke - IR George Aylward - President and Chief Executive Officer Mike Angerthal - Executive Vice President and Chief Financial Officer Conference Call Participants Crispin Love - Piper Sandler Michael Cyprys - Morgan Stanley Bradley Hays - TD Cowen Operator Good morning. My name is Dede, and I will be your conference operator today. I would like to welcome everyone to the Virt ...

FIRST QUARTER EARNINGS PRESENTATION April 26, 2024 George R. Aylward President and Chief Executive Officer Michael A. Angerthal Executive Vice President and Chief Financial Officer IMPORTANT DISCLOSURES This presentation 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 ...

News Release Virtus Investment Partners Announces Financial Results for First Quarter 2024 Hartford, CT, April 26, 2024 - Virtus Investment Partners, Inc. (NYSE: VRTS) today reported financial results for the three months ended March 31, 2024. Financial Highlights (Unaudited) (in millions, except per share data or as noted) | | | | Three Months Ended | | | | Three Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 3/31/2024 | | 3/31/2023 | Change | | 12/31/2023 | Change | | U.S. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ 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 1-10994 VIRTUS INVESTMENT PARTNERS, INC. (Exact name of registrant as specified in its charter) Delaware 26-3962811 State or other ...

Virtus Investment Partners, Inc. (NYSE:VRTS) Q4 2023 Earnings Conference Call February 2, 2024 10:00 AM ET Company Participants Sean Rourke - IR George Aylward - President &| CEO Michael Angerthal - CFO Conference Call Participants Crispin Love - Piper Sandler Bradley Hays - TD Cowan Michael Cyprys - Morgan Stanley Operator Good morning. My name is Dede, and I will be your conference operator today. I would like to welcome everyone to the Virtus Investment Partners Quarterly Conference Call. The slide prese ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 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: 001-10994 VIRTUS INVESTMENT PARTNERS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpor ...

Virtus Investment Partners, Inc. (NYSE:VRTS) Q3 2023 Results Conference Call October 27, 2023 10:00 AM ET Company Participants Sean Rourke - IR George Aylward - President and CEO Mike Angerthal - CFO Conference Call Participants Michael Cyprys - Morgan Stanley Operator Good morning. My name is Dede, and I will be your conference operator today. I would like to welcome everyone to the Virtus Investment Partners quarterly conference call. The slide presentation for this call is available in the Investor Relat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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: 001-10994 VIRTUS INVESTMENT PARTNERS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - Total assets under management (AUM) increased by 9% to $168 billion, driven by the addition of AlphaSimplex and market appreciation [8][15] - Sales rose by 22% sequentially to $7.6 billion, reflecting strong institutional business momentum [8][21] - Earnings per share (EPS) as adjusted increased to $5.43 from $4.20 in the first quarter, marking a 29% increase [12][32] Business Line Data and Key Metrics Changes - Institutional net inflows were $2.2 billion, a significant improvement from modest net outflows in the previous quarter [9][23] - Retail separate account sales remained largely unchanged, with net outflows of $0.1 billion compared to net inflows of $0.1 billion in the first quarter [10][24] - Fund net outflows were $2.1 billion, slightly worse than $1.8 billion in the first quarter, with fixed income strategies showing improvement [10][23] Market Data and Key Metrics Changes - Institutional AUM now represents 37% of total AUM, up from 32% a year ago, while non-US clients increased to 17% from 15% [17] - Approximately 69% of institutional assets and 89% of retail separate account assets outperformed their benchmarks over five years [18] - Positive net flows were observed in global funds and ETFs, indicating improved trends in the market [11][24] Company Strategy and Development Direction - The company is focused on diversifying its business through the addition of new affiliates and expanding investment capabilities in less correlated and alternative strategies [7][16] - There is a strong emphasis on maintaining a well-positioned balance sheet while returning capital to shareholders and investing in growth initiatives [13][34] - The company continues to evaluate M&A opportunities, particularly in areas that enhance diversification and align with less correlated investment strategies [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the institutional pipeline, noting strong demand across various strategies and geographies [39] - The macroeconomic environment for fixed income strategies is expected to improve as clarity on interest rates increases [41] - The company anticipates continued positive trends in AUM and sales, supported by market appreciation and strategic initiatives [12][11] Other Important Information - The operating margin improved to 32.3%, up from 26.8% in the previous quarter, primarily due to seasonal employment expenses [12][31] - The company repurchased approximately 52,000 shares for $10 million during the quarter, reflecting its commitment to returning capital to shareholders [14][35] Q&A Session Summary Question: Fee rate dynamics with large institutional inflows - Management explained that the fee rate is influenced by the mix of AUM and the strategies involved, with institutional business now comprising a larger portion of total AUM [37][38] Question: Update on institutional pipeline and demand trends - Management confirmed a strong institutional pipeline with diverse strategies and geographies, indicating continued strength in demand [39] Question: Expectations for fixed income demand - Management noted that while retail outflows have slowed, there is potential for increased interest in fixed income strategies as clarity on rates improves [41] Question: Capital allocation and M&A activity - Management reiterated the priority of paying down the credit facility while also considering share repurchases and evaluating M&A opportunities that align with strategic goals [47][48] Question: Contingent payments from acquisitions - Management provided details on upcoming cash payments related to contingent considerations from previous acquisitions, indicating a structured payment timeline [50]

Financial Performance - Net income per diluted share for Q1 2023 was $5.21, an increase of $0.99, or 23.5%, compared to $4.22 in Q1 2022[96] - Net income attributable to Virtus Investment Partners, Inc. increased by 16.8% to $38.6 million in Q1 2023, up from $33.1 million in Q1 2022[106] - Earnings per share (diluted) rose by 23.5% to $5.21 in Q1 2023, compared to $4.22 in Q1 2022[106] - Total revenues decreased by 21.6% to $197.9 million in Q1 2023 from $252.4 million in Q1 2022, primarily due to lower average assets under management[106] Assets Under Management - Total assets under management as of March 31, 2023, were $154.8 billion, a decrease of $28.5 billion, or 15.5%, from March 31, 2022, but an increase of $5.5 billion, or 3.7%, from December 31, 2022[96] - Open-End Funds saw a decrease in assets under management from $73.1 billion in 2022 to $53.9 billion in 2023, a decline of $19.3 billion, or 26.4%[97] - Institutional Accounts experienced a decrease in assets under management from $57.3 billion in 2022 to $53.2 billion in 2023, a decline of $4.1 billion, or 7.1%[97] - Average assets under management decreased by $37.7 billion, or 19.9%, from $190.1 billion in 2022 to $152.4 billion in 2023[97] - Average assets under management for open-end funds decreased from $75.5 billion in 2022 to $54.1 billion in 2023, a decline of 28.4%[103] Sales and Outflows - Total sales in Q1 2023 were $6.2 billion, a decrease of $3.2 billion, or 33.9%, from $9.4 billion in Q1 2022[96] - Net outflows in Q1 2023 were $1.9 billion, compared to $2.0 billion in Q1 2022[96] Expenses - Total operating expenses decreased by 9.4% to $169.3 million in Q1 2023 from $186.9 million in Q1 2022[113] - Employment expenses decreased by $7.4 million, or 7.0%, to $98.6 million in Q1 2023, primarily due to lower incentive compensation[114] - Distribution and service fees decreased by $5.9 million, or 29.3%, to $14.2 million in Q1 2023, reflecting lower sales and assets for open-end funds[109] Market Performance - The company reported $7.8 billion in positive market performance in Q1 2023, partially offsetting net outflows[99] - Realized and unrealized gains on investments improved by $5.7 million in Q1 2023 compared to the same period in the prior year[121] Cash Flow - Net cash used in operating activities improved by $38.8 million, or 47.5%, to $(43.0) million for the three months ended March 31, 2023, compared to $(81.8) million in the prior year[138] - Net cash used in investing activities decreased by $9.4 million, or 41.8%, to $(13.1) million for the three months ended March 31, 2023, compared to $(22.6) million in the same period last year[139] - Net cash used in financing activities decreased by $30.7 million to $(115.1) million for the three months ended March 31, 2023, from $(145.8) million in the prior year[140] Interest and Tax - Interest expense increased by $2.7 million, or 119.6%, to $(5.0) million for the three months ended March 31, 2023, compared to the same period in the prior year[125] - Interest and dividend income surged by $2.9 million, or 887.2%, reaching $3.2 million for the three months ended March 31, 2023, primarily due to higher interest earned on cash balances[126] - Interest and dividend income from investments of CIP rose by $26.4 million, or 129.7%, totaling $46.8 million for the three months ended March 31, 2023, driven by higher average interest rates and a new CLO added in Q4 2022[127][128] - Interest expense of CIP increased by $23.1 million, or 191.2%, to $(35.2) million for the three months ended March 31, 2023, primarily due to higher average interest rates[129] - The estimated effective tax rate decreased to 20.1% for the three months ended March 31, 2023, from 30.0% in the prior year, primarily due to excess tax benefits associated with stock-based compensation[130] Acquisition - The company completed the acquisition of AlphaSimplex Group, LLC for $130.0 million, financed with existing resources and $50.0 million drawn from a revolving credit facility[95] Cash and Equivalents - Cash and cash equivalents decreased by $124.8 million, or 36.9%, to $213.4 million as of March 31, 2023, compared to $338.2 million at December 31, 2022[131] Debt - The Company had $260.9 million outstanding under its Term Loan as of March 31, 2023, with no outstanding borrowings under the revolving credit facility[141]