Virtus Investment Partners(US:VRTS)2020-11-05 21:45Financial Performance - Net income per diluted share was $3.71 in Q3 2020, compared to $2.95 in Q3 2019[105] - Total sales reached $7.6 billion in Q3 2020, an increase of $2.9 billion, or 60.3%, from $4.8 billion in Q3 2019[105] - Total revenues for the three months ended September 30, 2020, were $154.8 million, an increase of $8.8 million, or 6.1%, compared to $145.9 million in the same period of 2019[124] - Net income for the three months ended September 30, 2020, was $40.9 million, representing an increase of $15.6 million, or 61.4%, compared to $25.4 million in the same period of 2019[123] - Total operating expenses for the three months ended September 30, 2020, were $113.8 million, an increase of $3.6 million, or 3.3%, compared to $110.2 million in the same period of 2019[130] Assets Under Management - Assets under management were $116.5 billion as of September 30, 2020, an increase of $12.4 billion, or 11.9%, from September 30, 2019[107] - Average long-term assets under management increased to $104.4 billion for the nine months ended September 30, 2020, up $5.0 billion, or 5.1%, from the prior year[108] - Open-End Funds assets under management increased by $2.2 billion, or 5.3%, to $43.4 billion as of September 30, 2020[110] - Retail Separate Accounts saw a significant increase of $5.9 billion, or 31.1%, to $24.7 billion as of September 30, 2020[110] - Institutional Accounts increased by $5.6 billion, or 18.2%, to $36.6 billion as of September 30, 2020[110] Market Performance - The company experienced market appreciation of $15.2 billion and $7.1 billion in Q2 and Q3 2020, respectively[103] - Market performance contributed $7,119 million to total long-term assets under management for the three months ended September 30, 2020[114] Inflows and Outflows - Open-End Funds experienced net inflows of $387 million for the three months ended September 30, 2020, compared to net outflows of $182 million in the same period of 2019[112] - Retail Separate Accounts saw net inflows of $1,110 million for the three months ended September 30, 2020, compared to $384 million in the same period of 2019[112] - Institutional Accounts had a net outflow of $306 million for the three months ended September 30, 2020, compared to a net outflow of $1,365 million in Q3 2019[112] Fees and Expenses - The average management fee for Open-End Funds increased to 59.5 basis points in Q3 2020 from 56.6 basis points in Q3 2019[119] - The average fee rate for all products increased to 46.6 basis points in Q3 2020 from 46.3 basis points in Q3 2019[119] - Investment management fees increased by $9.8 million, or 8.1%, for the three months ended September 30, 2020, and by $20.1 million, or 5.9%, for the nine months ended September 30, 2020, compared to the same periods in the prior year[125] - Employment expenses increased by $6.2 million, or 10.1%, for the three months ended September 30, 2020, totaling $67.5 million[131] - Distribution and service fees decreased by $0.6 million, or 6.2%, for the three months ended September 30, 2020, compared to the same period in 2019[127] Cash Flow and Debt - Operating cash flow for the nine months ended September 30, 2020 was a net outflow of $380.3 million, an increase of $277.3 million from the prior year[159] - Total debt decreased by $59.8 million, or 21.5%, from $277.8 million at December 31, 2019 to $218.0 million at September 30, 2020[151] - Cash and cash equivalents decreased by $19.6 million, or 8.8%, from $221.8 million at December 31, 2019 to $202.2 million at September 30, 2020[151] - Net cash provided by financing activities increased by $191.9 million to $305.8 million for the nine months ended September 30, 2020, compared to $113.9 million for the same period in 2019[161] Tax and Other Income - The estimated effective tax rate increased to 33.9% for the nine months ended September 30, 2020, compared to 24.0% for the same period in 2019[149] - Other income (expense), net decreased by $1.1 million, or 57.4%, for the nine months ended September 30, 2020 compared to the same period in the prior year[143] - Total other income increased by $10.8 million, or 234.4%, compared to the same period in 2019, reaching $6.2 million[139] Strategic Developments - The company entered into a strategic partnership with Allianz Global Investors, expected to close in Q1 2021[106] - There were no material changes in the company's contractual obligations since December 31, 2019[163] - The company is primarily exposed to market risk associated with unfavorable movements in interest rates and securities prices, with no material changes reported during the three and nine months ended September 30, 2020[166]