Diamond Hill(DHIL) - 2024 Q3 - Quarterly Report

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$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$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$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$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]