Victory Capital(VCTR)2025-02-06 21:36Financial Performance - Victory Capital reported total client assets of $176.1 billion and assets under management (AUM) of $171.9 billion as of December 31, 2024[14]. - The company achieved record adjusted earnings per diluted share of $1.45, a 23.5% increase compared to $1.15 in the same quarter last year[20]. - Revenue for the fourth quarter increased by 12.9% to $232.4 million, driven by higher average AUM[19]. - Adjusted EBITDA for the fourth quarter rose 16.7% to $125.5 million, with an adjusted EBITDA margin of 54.0%[21]. - For the year ended December 31, 2024, revenue increased by 8.8% to $893.5 million compared to $821.0 million in 2023[22]. - GAAP net income for the fourth quarter was $76.9 million, a decrease of 6.2% from the previous quarter[17]. - Net income for the three months ended December 31, 2024, was $76.9 million, compared to $55.2 million for the same period last year, marking a 39.3% increase[37]. - Basic earnings per share for the year ended December 31, 2024, was $4.47, up from $3.22 in 2023, indicating a 39.0% growth[37]. - Operating margin for the three months ended December 31, 2024, was 48.1%, compared to 41.9% in the same period last year[37]. Client Flows and AUM - The company experienced long-term net outflows of $1.7 billion during the fourth quarter, with total gross flows of $6.8 billion[9]. - Total assets under management reached $171.9 billion, with total client assets at $176.1 billion as of December 31, 2024[27]. - For the year ended December 31, 2024, gross client cash inflows totaled $26.167 billion, compared to $23.504 billion in 2023, reflecting a growth of approximately 11.2%[48]. - The net client cash flows for the year ended December 31, 2024, were $(7.377) billion, a decline from $(5.976) billion in 2023, indicating a worsening outflow situation[48]. - Gross client cash inflows for the three months ended December 31, 2024, were $6.793 billion, while gross client cash outflows were $8.663 billion, resulting in net client cash flows of -$1.870 billion[61]. Dividends and Share Repurchase - The board authorized a new $200 million share repurchase program and a 7% increase in the quarterly cash dividend to $0.47 per share[7]. - The company declared dividends of $0.44 per share for the three months ended December 31, 2024, an increase from $0.32 in the same period last year[37]. Strategic Initiatives - The company is on track to close the acquisition of Amundi's U.S. business by the end of Q1 2025, expecting $100 million in expense synergies[5]. - The company is focused on expanding its investment strategies and integrating new acquisitions to enhance growth potential[32]. - Future outlook includes navigating geopolitical uncertainties and achieving expected synergies from the proposed transaction with Amundi[32]. - The company emphasizes the importance of maintaining historical returns and sustaining growth amidst market challenges[32]. Market Conditions and Asset Management - Market appreciation for the year ended December 31, 2024, was $18.100 billion, down from $21.188 billion in 2023, showing a decrease of about 14.5%[48]. - Market depreciation for the same period was $2.237 billion, contributing to the overall decline in AUM[61]. - The ending AUM as of December 31, 2024, was $171.930 billion, compared to $161.322 billion at the end of 2023, representing an increase of approximately 6.5%[48]. - The company’s AUM from ETFs was reported at $52.375 billion as of December 31, 2024[60]. Financial Position - The company’s total liabilities decreased to $1.425 billion as of December 31, 2024, from $1.490 billion in the previous year[42]. - Cash and cash equivalents increased to $126.731 million as of December 31, 2024, compared to $123.547 million at the end of 2023[42]. - The company’s retained earnings rose to $924.600 million as of December 31, 2024, up from $736.852 million in the previous year, reflecting a growth of 25.5%[42].