Diamond Hill(DHIL) - 2024 Q3 - Quarterly Results

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]