Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that ...

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 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: 001-10994 VIRTUS INVESTMENT PARTNERS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporatio ...

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 ...

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section provides an overview of Q1 2024 financial highlights, including GAAP and non-GAAP performance, key earnings metrics, sales, net flows, and assets under management [Q1 2024 Financial Highlights (Unaudited)](index=1&type=section&id=Q1%202024%20Financial%20Highlights%20%28Unaudited%29) Virtus Investment Partners reported Q1 2024 financial results, with GAAP and non-GAAP metrics showing revenue and adjusted operating income growth, while GAAP net income and diluted EPS declined year-over-year Q1 2024 Key Financial Metrics (Million USD, except per share data) | Metric | March 31, 2024 | March 31, 2023 | Y/Y Change | December 31, 2023 | Q/Q Change | | :---------------------------------------------------------- | :------------- | :------------- | :--------- | :---------------- | :--------- | | **U.S. GAAP Financial Metrics** | | | | | | | Revenue | $222.0 | $197.9 | 12 % | $214.6 | 3 % | | Operating Expenses | $189.7 | $169.3 | 12 % | $175.6 | 8 % | | Operating Income (Loss) | $32.3 | $28.6 | 13 % | $39.0 | (17 %) | | Operating Margin | 14.5 % | 14.4 % | | 18.2 % | | | Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $29.9 | $38.6 | (23 %) | $30.8 | (3 %) | | Diluted EPS | $4.10 | $5.21 | (21 %) | $4.21 | (3 %) | | **Non-GAAP Financial Metrics (1)** | | | | | | | Adjusted Revenue | $200.2 | $176.9 | 13 % | $193.4 | 4 % | | Adjusted Operating Expenses | $143.8 | $129.5 | 11 % | $129.5 | 11 % | | Adjusted Operating Income (Loss) | $56.4 | $47.4 | 19 % | $63.9 | (12 %) | | Adjusted Operating Margin | 28.2 % | 26.8 % | | 33.0 % | | | Adjusted Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $39.4 | $31.1 | 27 % | $44.8 | (12 %) | | Adjusted Diluted EPS | $5.41 | $4.20 | 29 % | $6.11 | (11 %) | [Earnings Summary](index=1&type=section&id=Earnings%20Summary) The company achieved diluted EPS of $4.10 and adjusted diluted EPS of $5.41 in Q1 2024, with total sales of $7.6 billion, net outflows of $1.2 billion, and AUM of $179.3 billion - Diluted EPS was **$4.10**; adjusted diluted EPS was **$5.41**[3](index=3&type=chunk) - Total sales reached **$7.6 billion**; net outflows were **$1.2 billion**; and assets under management (AUM) stood at **$179.3 billion**[3](index=3&type=chunk) [Assets Under Management and Asset Flows](index=2&type=section&id=Assets%20Under%20Management%20and%20Asset%20Flows) This section details the company's AUM and asset flows, including an overview of net flows, AUM breakdown by product and asset class, average management fees, and asset flows by product category [Overview of AUM and Net Flows](index=2&type=section&id=Overview%20of%20AUM%20and%20Net%20Flows) As of March 31, 2024, total AUM reached **$179.3 billion**, growing 4% quarter-over-quarter due to market performance and retail separate account net inflows, with total sales up 22% and significantly improved net outflows Assets Under Management and Asset Flows (Billion USD) | Metric | March 31, 2024 | March 31, 2023 | Y/Y Change | December 31, 2023 | Q/Q Change | | :------------------------- | :------------- | :------------- | :--------- | :---------------- | :--------- | | Total AUM at Period End | $179.3 | $154.8 | 16 % | $172.3 | 4 % | | Average Total AUM | $173.4 | $152.4 | 14 % | $162.7 | 7 % | | Total Sales | $7.6 | $6.2 | 22 % | $6.2 | 22 % | | Net Flows | ($1.2) | ($1.9) | (37 %) | ($3.8) | (68 %) | - As of March 31, 2024, total AUM was **$179.3 billion**, a **4% increase** from **$172.3 billion** on December 31, 2023, primarily driven by market performance and net inflows into retail separate accounts, partially offset by net outflows from institutional accounts and open-end funds[4](index=4&type=chunk) - Total sales increased **22% quarter-over-quarter** to **$7.6 billion**, with growth across all product categories, including institutional sales up **47% to $1.7 billion**, retail separate accounts up **12% to $2.4 billion**, and open-end funds up **18% to $3.5 billion**[5](index=5&type=chunk) - Net outflows improved from **($3.8 billion)** in the prior quarter to **($1.2 billion)**, with positive net inflows in retail separate accounts, ETFs, and global funds; institutional net outflows improved from **($2.2 billion)** to **($1.3 billion)**, and open-end fund net outflows significantly improved from **($2.0 billion)** to **($0.6 billion)**[6](index=6&type=chunk) [Assets Under Management - By Product and Asset Class](index=7&type=section&id=Assets%20Under%20Management%20-%20Product%20and%20Asset%20Class) At quarter-end, the company's AUM by product category showed growth in open-end funds, retail separate accounts, and institutional accounts, while by asset class, equity AUM significantly increased, with fixed income and alternative investments slightly decreasing End-of-Period AUM by Product Category (Million USD) | Product Category | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | | :------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | | Open-End Funds | $53,865 | $56,828 | $54,145 | $56,062 | $57,818 | | Closed-End Funds | $10,358 | $10,166 | $9,472 | $10,026 | $10,064 | | Retail Separate Accounts | $37,397 | $38,992 | $38,665 | $43,202 | $46,816 | | Institutional Accounts | $53,229 | $62,330 | $60,257 | $62,969 | $64,613 | | **Total** | **$154,849** | **$168,316** | **$162,539** | **$172,259** | **$179,311** | End-of-Period AUM by Asset Class (Million USD) | Asset Class | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | | :------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | | Equity | $87,511 | $91,211 | $87,984 | $96,703 | $103,501 | | Fixed Income | $36,596 | $38,361 | $37,352 | $37,192 | $37,037 | | Multi-Asset | $20,597 | $20,914 | $19,937 | $21,411 | $21,975 | | Alternative Investments | $10,145 | $17,830 | $17,266 | $16,953 | $16,798 | | **Total** | **$154,849** | **$168,316** | **$162,539** | **$172,259** | **$179,311** | [Assets Under Management - Average Management Fees Earned](index=8&type=section&id=Assets%20Under%20Management%20-%20Average%20Management%20Fees%20Earned) In Q1 2024, the average management fee rate for all products was **41.9 basis points**, a slight decrease from the prior quarter, with closed-end funds having the highest rate, institutional accounts the lowest, and a significant decline in institutional performance-related fees Average Management Fee Rates by Product Category (Basis Points) | Product Category | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | | :------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | | Open-End Funds | 47.6 | 49.3 | 51.1 | 49.7 | 49.9 | | Closed-End Funds | 57.1 | 57.6 | 58.2 | 58.4 | 58.7 | | Retail Separate Accounts | 44.2 | 44.1 | 43.3 | 43.3 | 43.9 | | Institutional Accounts | 31.8 | 31.6 | 30.3 | 33.2 | 30.8 | | **All Products** | **42.0** | **42.2** | **42.0** | **42.6** | **41.9** | Performance-Related Fees (Basis Points) | Product Category | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | | :------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | | Institutional Accounts | 0.2 | 0.2 | 0.4 | 2.2 | 0.3 | | **All Products** | **0.1** | **0.1** | **0.1** | **0.8** | **0.1** | [Assets Under Management - Asset Flows by Product](index=9&type=section&id=Assets%20Under%20Management%20-%20Asset%20Flows%20by%20Product) In Q1 2024, the company's total net outflows were **$1.238 billion**, a significant improvement from the prior quarter, with retail separate accounts achieving positive net inflows of **$678 million**, while open-end funds and institutional accounts remained in net outflow, though with reduced magnitudes Asset Flows by Product Category (Million USD) | Metric | Open-End Funds | Closed-End Funds | Retail Separate Accounts | Institutional Accounts | Total | | :----------------- | :------------- | :--------------- | :----------------------- | :--------------------- | :----------- | | Beginning Balance | $56,062 | $10,026 | $43,202 | $62,969 | $172,259 | | Inflows | $3,476 | $0 | $2,373 | $1,734 | $7,583 | | Outflows | ($4,104) | $0 | ($1,695) | ($3,022) | ($8,821) | | Net Flows | ($628) | $0 | $678 | ($1,288) | ($1,238) | | Market Performance | $2,560 | $239 | $2,936 | $3,001 | $8,736 | | Other | ($176) | ($201) | $0 | ($69) | ($446) | | Ending Balance | $57,818 | $10,064 | $46,816 | $64,613 | $179,311 | [Financial Performance (GAAP & Non-GAAP)](index=3&type=section&id=Financial%20Performance%20%28GAAP%20%26%20Non-GAAP%29) This section presents the company's Q1 2024 financial performance, detailing both GAAP and non-GAAP results, including revenue, operating income, expenses, and diluted EPS, highlighting key adjustments and drivers [GAAP Results](index=3&type=section&id=GAAP%20Results) In Q1 2024, GAAP operating income decreased **17% quarter-over-quarter** to **$32.3 million**, primarily due to revenue growth being offset by increased operating expenses, with diluted net EPS at **$4.10** including several non-recurring adjustments, and the effective tax rate falling to **19%** - Operating income was **$32.3 million**, a **17% decrease** from the prior quarter, as a **3% increase** in revenue (reflecting higher average AUM) was offset by an **8% increase** in operating expenses[8](index=8&type=chunk) - Diluted net EPS was **$4.10**, including fair value adjustments to minority interests in affiliates (**-$0.69**), amortization of early lease termination costs (**-$0.12**), and acquisition and integration costs (**-$0.11**), partially offset by realized and unrealized gains on investments (**+$0.76**)[9](index=9&type=chunk) - The effective tax rate decreased from **26%** in the prior quarter to **19%**, primarily reflecting changes in valuation allowances related to marketable securities[10](index=10&type=chunk) U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited, Thousand USD, except per share data) | Metric | March 31, 2024 | March 31, 2023 | Y/Y Change | December 31, 2023 | Q/Q Change | | :---------------------------------------------------------- | :------------- | :------------- | :--------- | :---------------- | :--------- | | **Revenue** | | | | | | | Investment Management Fees | $188,360 | $164,478 | 15 % | $182,149 | 3 % | | Distribution and Service Fees | $14,030 | $14,153 | (1 %) | $13,535 | 4 % | | Administrative and Shareholder Service Fees | $18,678 | $18,359 | 2 % | $18,189 | 3 % | | Other Revenue and Fees | $974 | $884 | 10 % | $714 | 36 % | | **Total Revenue** | **$222,042** | **$197,874** | **12 %** | **$214,587** | **3 %** | | **Operating Expenses** | | | | | | | Employment Expenses | $115,163 | $98,614 | 17 % | $99,847 | 15 % | | Distribution and Other Asset-Based Expenses | $24,348 | $23,715 | 3 % | $23,470 | 4 % | | Other Operating Expenses | $31,375 | $30,730 | 2 % | $31,164 | 1 % | | Operating Expenses of Consolidated Investment Products | $690 | $700 | (1 %) | $2,611 | (74 %) | | Restructuring Expenses | $797 | — | N/M | $133 | 499 % | | Change in Fair Value of Contingent Consideration | — | — | N/M | $1,290 | (100 %) | | Depreciation Expense | $2,028 | $1,145 | 77 % | $1,670 | 21 % | | Amortization Expense | $15,335 | $14,391 | 7 % | $15,446 | (1 %) | | **Total Operating Expenses** | **$189,736** | **$169,295** | **12 %** | **$175,631** | **8 %** | | **Operating Income (Loss)** | **$32,306** | **$28,579** | **13 %** | **$38,956** | **(17 %)** | | **Other Income (Expense)** | | | | | | | Net Realized and Unrealized Gains (Losses) on Investments | $3,416 | $2,670 | 28 % | $4,056 | (16 %) | | Net Realized and Unrealized Gains (Losses) of Consolidated Investment Products | $1,535 | $2,596 | (41 %) | $449 | 242 % | | Net Other Income (Expense) | $550 | ($343) | N/M | $622 | (12 %) | | **Total Net Other Income (Expense)** | **$5,501** | **$4,923** | **12 %** | **$5,127** | **7 %** | | **Interest Income (Expense)** | | | | | | | Interest Expense | ($5,681) | ($5,005) | 14 % | ($5,987) | (5 %) | | Interest and Dividend Income | $3,469 | $3,238 | 7 % | $3,673 | (6 %) | | Interest and Dividend Income from Investments of Consolidated Investment Products | $51,115 | $46,814 | 9 % | $53,206 | (4 %) | | Interest Expense of Consolidated Investment Products | ($40,012) | ($35,203) | 14 % | ($43,182) | (7 %) | | **Total Net Interest Income (Expense)** | **$8,891** | **$9,844** | **(10 %)** | **$7,710** | **15 %** | | **Income (Loss) Before Income Taxes** | **$46,698** | **$43,346** | **8 %** | **$51,793** | **(10 %)** | | Income Tax Expense (Benefit) | $8,831 | $8,703 | 1 % | $13,294 | (34 %) | | **Net Income (Loss)** | **$37,867** | **$34,643** | **9 %** | **$38,499** | **(2 %)** | | Noncontrolling Interests | ($8,009) | $3,981 | N/M | ($7,665) | 4 % | | **Net Income (Loss) Attributable to Virtus Investment Partners, Inc.** | **$29,858** | **$38,624** | **(23 %)** | **$30,834** | **(3 %)** | | Basic EPS | $4.19 | $5.33 | (21 %) | $4.30 | (3 %) | | Diluted EPS | $4.10 | $5.21 | (21 %) | $4.21 | (3 %) | | Cash Dividends Declared Per Common Share | $1.90 | $1.65 | 15 % | $1.90 | — % | | Weighted Average Shares Outstanding - Basic | 7,119 | 7,245 | (2 %) | 7,178 | (1 %) | | Weighted Average Shares Outstanding - Diluted | 7,287 | 7,410 | (2 %) | 7,320 | — % | [Non-GAAP Results](index=3&type=section&id=Non-GAAP%20Results) In Q1 2024, adjusted revenue grew **4% quarter-over-quarter** to **$200.2 million**, driven by increased average AUM, but adjusted operating income and diluted EPS declined quarter-over-quarter due to seasonal employment expenses and higher variable incentive compensation - Adjusted revenue was **$200.2 million**, a **4% increase** from the prior quarter, primarily due to a **7% increase** in average AUM, partially offset by lower performance fees[11](index=11&type=chunk) - Adjusted employment expenses were **$111.6 million**, an increase from the prior quarter, primarily due to **$10.9 million** in seasonal expenses (mainly payroll taxes and benefits related to the timing of annual incentive payments) and higher variable incentive compensation[12](index=12&type=chunk) - Adjusted operating income was **$56.4 million**, with a related margin of **28.2%**, a decrease from the prior quarter, primarily due to seasonal employment expenses, partially offset by higher investment management fees and lower other operating expenses[13](index=13&type=chunk) - Adjusted diluted net EPS attributable to Virtus Investment Partners, Inc. was **$5.41**, an **11% decrease** from the prior quarter, primarily reflecting **$1.11 per share** in seasonal expenses, partially offset by increased adjusted revenue and lower adjusted other operating expenses[14](index=14&type=chunk) [Balance Sheet & Capital Management](index=4&type=section&id=Balance%20Sheet%20%26%20Capital%20Management) This section provides an overview of the company's balance sheet and capital management activities, including key asset and liability items, working capital, debt levels, and share repurchase activities [Select Balance Sheet Items (Unaudited)](index=4&type=section&id=Select%20Balance%20Sheet%20Items%20%28Unaudited%29) As of March 31, 2024, the company's cash and cash equivalents significantly decreased, but working capital grew quarter-over-quarter, total debt remained stable, and net debt substantially increased to **$134.2 million**, with **$5 million** in share repurchases during the quarter Select Balance Sheet Items (Million USD) | Metric | March 31, 2024 | March 31, 2023 | Y/Y Change | December 31, 2023 | Q/Q Change | | :-------------------------------------- | :------------- | :------------- | :--------- | :---------------- | :--------- | | Cash and Cash Equivalents | $123.9 | $213.4 | (42 %) | $239.6 | (48 %) | | Total Debt (1) | $258.1 | $260.9 | (1 %) | $258.8 | — % | | Contingent Consideration (2) | $66.7 | $101.2 | (34 %) | $90.9 | (27 %) | | Redeemable Noncontrolling Interests (3) | $80.0 | $88.2 | (9 %) | $74.2 | 8 % | | Total Equity Excluding Noncontrolling Interests | $871.7 | $837.9 | 4 % | $864.0 | 1 % | | Working Capital (4) | $123.4 | $208.3 | (41 %) | $109.1 | 13 % | | Net Debt (Cash) (5) | $134.2 | $47.5 | 183 % | $19.2 | N/M | - Working capital was **$123.4 million**, an increase from **$109.1 million** on December 31, 2023, as earnings exceeded capital returns[16](index=16&type=chunk) - During the quarter, the company repurchased **21,108 shares** for **$5.0 million** and net settled an additional **42,588 shares** for **$9.9 million**[17](index=17&type=chunk) - As of March 31, 2024, net debt was **$134.2 million**, or **0.4x** EBITDA[17](index=17&type=chunk) [Non-GAAP Information and Reconciliations](index=10&type=section&id=Non-GAAP%20Information%20and%20Reconciliations) This section provides comprehensive non-GAAP information, including detailed reconciliation tables from GAAP to non-GAAP metrics, explanatory notes for each adjustment, and clear definitions of the non-GAAP measures used [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliation tables adjusting U.S. GAAP financial metrics to non-GAAP measures, including revenue, operating expenses, operating income, income before taxes, income tax expense, and net income attributable to Virtus Investment Partners, Inc., aiming to offer a clearer view of the company's core investment management operations Revenue Reconciliation (Thousand USD) | Metric | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :-------------------------------------- | :------------- | :------------- | :---------------- | | Total Revenue, GAAP | $222,042 | $197,874 | $214,587 | | Revenue of Consolidated Investment Products (1) | $2,544 | $2,750 | $2,258 | | Investment Management Fees (2) | ($10,316) | ($9,561) | ($9,933) | | Distribution and Service Fees (2) | ($14,032) | ($14,154) | ($13,537) | | **Adjusted Total Revenue** | **$200,238** | **$176,909** | **$193,375** | Operating Expenses Reconciliation (Thousand USD) | Metric | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :-------------------------------------- | :------------- | :------------- | :---------------- | | Total Operating Expenses, GAAP | $189,736 | $169,295 | $175,631 | | Expenses of Consolidated Investment Products (1) | ($690) | ($700) | ($2,611) | | Distribution and Other Asset-Based Expenses (3) | ($24,348) | ($23,715) | ($23,470) | | Amortization of Intangible Assets (4) | ($15,335) | ($14,391) | ($15,446) | | Restructuring Expenses (5) | ($797) | — | ($133) | | Deferred Compensation and Related Investments (6) | ($1,249) | ($572) | ($925) | | Acquisition and Integration Costs (7) | ($1,042) | ($965) | ($3,050) | | Other (8) | ($2,444) | $592 | ($472) | | **Adjusted Total Operating Expenses** | **$143,831** | **$129,544** | **$129,524** | Operating Income (Loss) Reconciliation (Thousand USD) | Metric | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :-------------------------------------- | :------------- | :------------- | :---------------- | | Operating Income (Loss), GAAP | $32,306 | $28,579 | $38,956 | | Consolidated Investment Products (Gains) Losses (1) | $3,234 | $3,450 | $4,869 | | Amortization of Intangible Assets (4) | $15,335 | $14,391 | $15,446 | | Restructuring Expenses (5) | $797 | — | $133 | | Deferred Compensation and Related Investments (6) | $1,249 | $572 | $925 | | Acquisition and Integration Costs (7) | $1,042 | $965 | $3,050 | | Other (8) | $2,444 | ($592) | $472 | | **Adjusted Operating Income (Loss)** | **$56,407** | **$47,365** | **$63,851** | Income (Loss) Before Income Taxes Reconciliation (Thousand USD) | Metric | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :-------------------------------------- | :------------- | :------------- | :---------------- | | Income (Loss) Before Income Taxes, GAAP | $46,698 | $43,346 | $51,793 | | Consolidated Investment Products (Gains) Losses (1) | ($1,819) | ($1,412) | ($1,316) | | Amortization of Intangible Assets (4) | $15,335 | $14,391 | $15,446 | | Restructuring Expenses (5) | $797 | — | $133 | | Deferred Compensation and Related Investments (6) | ($400) | ($344) | ($783) | | Acquisition and Integration Costs (7) | $1,042 | $965 | $3,050 | | Other (8) | $2,444 | ($592) | $472 | | Seed Capital and CLO Investment (Gains) Losses (9) | ($7,333) | ($10,140) | ($5,078) | | **Adjusted Income (Loss) Before Income Taxes** | **$56,764** | **$46,214** | **$63,717** | Income Tax Expense (Benefit) Reconciliation (Thousand USD) | Metric | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :-------------------------------------- | :------------- | :------------- | :---------------- | | Income Tax Expense (Benefit), GAAP | $8,831 | $8,703 | $13,294 | | Tax Impact: | | | | | Amortization of Intangible Assets (4) | $3,993 | $4,025 | $4,202 | | Restructuring Expenses (5) | $208 | — | $36 | | Deferred Compensation and Related Investments (6) | ($104) | ($96) | ($213) | | Acquisition and Integration Costs (7) | $271 | $270 | $830 | | Other (8) | $1,056 | $1,745 | ($11) | | Seed Capital and CLO Investment (Gains) Losses (9) | $529 | ($1,722) | ($801) | | **Adjusted Income Tax Expense (Benefit)** | **$14,784** | **$12,925** | **$17,337** | Net Income (Loss) Attributable to Virtus Investment Partners, Inc. Reconciliation (Thousand USD) | Metric | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :---------------------------------------------------------- | :------------- | :------------- | :---------------- | | Net Income (Loss) Attributable to Virtus Investment Partners, Inc., GAAP | $29,858 | $38,624 | $30,834 | | Amortization of Intangible Assets, Net of Tax (4) | $10,863 | $9,687 | $10,764 | | Restructuring Expenses, Net of Tax (5) | $589 | — | $97 | | Deferred Compensation and Related Investments (6) | ($296) | ($248) | ($570) | | Acquisition and Integration Costs, Net of Tax (7) | $771 | $695 | $2,220 | | Other, Net of Tax (8) | $5,476 | ($9,236) | $5,689 | | Seed Capital and CLO Investment (Gains) Losses, Net of Tax (9) | ($7,862) | ($8,418) | ($4,277) | | **Adjusted Net Income (Loss) Attributable to Virtus Investment Partners, Inc.** | **$39,399** | **$31,104** | **$44,757** | [Notes to Reconciliations](index=12&type=section&id=Notes%20to%20Reconciliations) This section details the reclassifications and adjustments in non-GAAP reconciliations, including consolidated investment products, investment management/distribution service fees, intangible asset amortization, restructuring, deferred compensation, acquisition and integration costs, and seed capital and CLO investment gains/losses, aiming for a clearer view of operating performance - Consolidated Investment Products: Excludes revenues and expenses from the operating activities of mutual funds and CLOs consolidated in the financial statements to reflect the company's operating results from managing third-party client assets[31](index=31&type=chunk) - Investment Management/Distribution and Service Fees: Deducts fees paid to third-party intermediaries who own retail client relationships and are responsible for product distribution and client servicing[32](index=32&type=chunk)[33](index=33&type=chunk) - Amortization of Intangible Assets: Excludes non-cash amortization or impairment charges related to acquisition-related intangible assets to aid comparison with other asset managers that have not made acquisitions[36](index=36&type=chunk) - Restructuring Expenses: Excludes non-recurring expenses related to business restructuring, such as lease abandonment charges and severance costs[36](index=36&type=chunk) - Deferred Compensation and Related Investments: Adjusts compensation expense, gains and losses, and interest and dividend income related to the market performance of deferred compensation and related balance sheet investments[36](index=36&type=chunk) - Acquisition and Integration Costs: Excludes expenses directly related to acquisition and integration activities, including deal-related employment expenses, transaction closing costs, changes in fair value of contingent consideration, professional fees, and financing costs[36](index=36&type=chunk)[37](index=37&type=chunk) - Other: Adjusts for certain expenses that do not reflect the ongoing profitability of the business, such as fair value measurement of minority interests in affiliates, non-capitalized debt issuance costs, amortization of lease termination fees, and tax adjustments unrelated to current operating results[37](index=37&type=chunk) - Seed Capital and CLO Investment (Gains) Losses: Excludes realized and unrealized gains and losses on seed capital and CLO investments, which are highly volatile and do not reflect the company's operating results from providing investment management and related services[38](index=38&type=chunk) [Definitions of Non-GAAP Measures](index=14&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section defines key non-GAAP financial measures used by the company, including adjusted revenue, adjusted operating expenses, adjusted operating margin, and adjusted EPS, which aim to better reflect the ongoing operating performance of the core investment management business - Adjusted Revenue: Refers to fee revenues paid by clients for investment management and related services, excluding the impact of operating activities of consolidated investment products, and deducting fees paid to third-party client intermediaries[39](index=39&type=chunk) - Adjusted Operating Expenses: Refers to expenses incurred from ongoing operations, excluding amortization or impairment of intangible assets, restructuring and severance charges, the impact of consolidated investment products, acquisition and integration-related costs, and other expenses not reflecting the ongoing profitability of the business[40](index=40&type=chunk) - Adjusted Operating Margin: An efficiency measure representing adjusted operating income divided by adjusted revenue[41](index=41&type=chunk) - Adjusted Earnings (Loss) Per Share: Refers to adjusted net income (loss) attributable to Virtus Investment Partners, Inc. divided by the adjusted weighted average shares outstanding (basic or diluted)[42](index=42&type=chunk) [Company Information & Forward-Looking Statements](index=5&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) This section provides an overview of Virtus Investment Partners, details regarding investor conference calls, and important disclosures about forward-looking statements, including associated risks and the company's policy on updates [About Virtus Investment Partners, Inc.](index=5&type=section&id=About%20Virtus%20Investment%20Partners%2C%20Inc.) Virtus Investment Partners is a unique partnership of boutique investment managers dedicated to providing diverse investment management products and services across various disciplines and product types for individual and institutional investors - Virtus Investment Partners (NYSE: VRTS) is a unique partnership of boutique investment managers dedicated to the long-term success of individual and institutional investors[20](index=20&type=chunk) - The company offers investment management products and services through its affiliated managers and select subadvisers, each with distinct investment styles and autonomous investment processes to meet a wide range of investor needs[20](index=20&type=chunk) [Conference Call and Investor Presentation](index=5&type=section&id=Conference%20Call%20and%20Investor%20Presentation) Management will host an investor conference call and webcast on April 26, 2024, to discuss financial results and related matters, with presentation materials and a replay available on the company's investor relations website - Management will host an investor conference call and webcast on Friday, April 26, 2024, at 10:00 a.m. Eastern Time, to discuss financial results[19](index=19&type=chunk) - The conference presentation will be available in the investor relations section of virtus.com, where a replay of the call will also be available for at least one year[19](index=19&type=chunk) [Forward-Looking Information](index=15&type=section&id=Forward-Looking%20Information) This press release contains forward-looking statements based on expectations, assumptions, and projections about the company and market, which are not guarantees of future results or performance and involve significant risks and uncertainties, with no commitment to update or revise any such statements - This press release contains forward-looking statements based on a range of expectations, assumptions, and projections about the company and the market, which are not guarantees of future results or performance and involve significant risks and uncertainties[43](index=43&type=chunk)[44](index=44&type=chunk) - The business and forward-looking statements involve significant known and unknown risks and uncertainties, including AUM reductions, failure to realize expected benefits from strategic transactions, termination of investment advisory agreements, reputational harm, inability to satisfy debt covenants, inability to attract and retain key personnel, competitive challenges, technology system disruptions, investment losses, and regulatory and legal developments[45](index=45&type=chunk) - The company does not undertake or plan to update or revise any forward-looking statements to reflect actual results, plans, assumptions, estimates, or projections, or other circumstances occurring after the date of this release[47](index=47&type=chunk)

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 ...