Diamond Hill(DHIL) - 2025 Q1 - Quarterly Results

Financial Performance - Revenue for the first quarter of 2025 was $37.1 million, a 2% increase from $36.3 million in the first quarter of 2024[8] - Net income attributable to common shareholders was $10.4 million, down 20% from $13.0 million in the first quarter of 2024[6] - Earnings per share attributable to common shareholders - diluted was $3.77, an 18% decrease from $4.62 in the first quarter of 2024[6] - The net operating profit margin was 35%, compared to 23% for the first quarter of 2024[6] - Investment income was $1.1 million, significantly down from $9.4 million in the first quarter of 2024, representing an 88% decrease[6] Shareholder Returns - The company returned approximately $7.8 million to shareholders, including $3.6 million through share repurchases and $4.2 million through dividends[6] - The Company declared a quarterly cash dividend of $1.50 per common share, payable on June 13, 2025[5] Assets Management - Assets under management (AUM) and assets under advisement (AUA) combined were $31.6 billion, a decrease from $31.9 billion as of December 31, 2024[6] - Average AUM and AUA combined were $32.3 billion, compared to $30.1 billion for the first quarter of 2024[6] - Net client outflows were $529 million, compared to net inflows of $118 million for the first quarter of 2024[6] Risks and Challenges - The Company faces significant risks that may impact its actual results, including potential reductions in Assets Under Management (AUM) or Assets Under Administration (AUA) [15] - Challenges from competition and industry trends towards lower fee strategies are identified as key risks [15] - The Company emphasizes the importance of compliance with investment guidelines and contractual requirements to mitigate risks [15] - Technological changes, including the integration of artificial intelligence (AI), are critical for the Company's future success [15] - The Company acknowledges the potential impact of adverse regulatory and legal developments on its operations [15] - Economic uncertainties, including changes in interest rates and inflation, are highlighted as factors that could affect performance [15] - The Company is aware of the risks associated with civil litigation and government investigations [15] - The ongoing economic uncertainty in various parts of the world is a concern for the Company's future outlook [15] Forward-Looking Statements - The Company does not commit to updating forward-looking statements unless required by law, acknowledging the unpredictability of future events [16] - The Company does not endorse third-party projections regarding future performance, emphasizing its own risk assessments [16]