Janus Henderson(US:JHG)2022-10-31 21:22Revenue and Income - Revenue for Q3 2022 was $512.9 million, a decrease of $174.5 million, or 25% compared to Q3 2021[104] - Net income attributable to the company in Q3 2022 was $107.6 million, a decrease of $89.2 million, or 45% compared to Q3 2021[106] - Total revenue for the nine months ended September 30, 2022, was $1,688.4 million, down 18% from $2,069.8 million in the same period of 2021[126] - Adjusted revenue for the three months ended September 30, 2022, was $394.2 million, down from $545.3 million in the same period of 2021[160] Assets Under Management (AUM) - Assets Under Management (AUM) decreased to $274.6 billion, down 8% from June 30, 2022, primarily due to market challenges and net outflows of $5.8 billion[104] - AUM as of September 30, 2022, decreased by $157.7 billion, or 36%, from December 31, 2021, due to negative market movements and net redemptions[108] - As of September 30, 2022, the total Closing Assets Under Management (AUM) decreased to $274.6 billion from $419.3 billion as of September 30, 2021, representing a decline of approximately 35%[118] - The company experienced net outflows of $71.2 billion in the nine months ended September 30, 2022, compared to net sales of $45.7 billion in the same period of 2021[113] Operating Expenses - Total operating expenses for Q3 2022 were $392.2 million, a decrease of $46.9 million, or 11% compared to Q3 2021[105] - Total operating expenses for the three months ended September 30, 2022, were $392.2 million, a decrease of 11% compared to the same period in 2021[134] - Employee compensation and benefits decreased by $23.7 million for the three months ended September 30, 2022, primarily due to a reduction in variable compensation[135] - Distribution expenses decreased by $23.4 million and $18.5 million for the three and nine months ended September 30, 2022, respectively, due to a decline in average AUM[139] Management and Performance Fees - Management fees for the three months ended September 30, 2022, were $426.2 million, a decrease of 24% from $564.5 million in the same period of 2021, primarily due to lower average AUM[126] - Performance fees for the nine months ended September 30, 2022, were negative $25.0 million, compared to positive $95.0 million in the same period of 2021, indicating a significant decline in performance-related income[126] - Performance fees for the three months ended September 30, 2022, decreased by $13.2 million, primarily due to negative performance fees from U.S. mutual funds[129] - For the nine months ended September 30, 2022, performance fees decreased by $120.0 million, mainly due to declines in SICAV and UK OEICs, as well as increased negative performance fees from U.S. mutual funds[130] Cash and Financing - The company had over $1.0 billion in cash and cash equivalents as of Q3 2022[104] - Cash provided by operating activities in Q3 2022 was $221.9 million, with a cash balance at the end of the period of $1,035.7 million[104] - Cash inflows from investing activities were $111.0 million during the nine months ended September 30, 2022, compared to cash outflows of $265.8 million in the same period of 2021[179] - The company has a new share buyback program authorized for up to $200 million, but no shares were repurchased during the three months ended September 30, 2022[167] Market Conditions and Outlook - Market impacts contributed to a decrease of $85.7 billion in AUM due to unfavorable market conditions[113] - Future outlook remains cautious due to market volatility, with strategic adjustments planned to mitigate risks and capitalize on growth opportunities[113] - The company is focusing on market expansion and new product development to enhance AUM recovery in the upcoming quarters[113] Tax and Impairment - The effective tax rate for the three months ended September 30, 2022, was 19.6%, compared to 21.0% for the same period in 2021[152] - Goodwill and intangible asset impairment charges decreased by $44.4 million during the nine months ended September 30, 2022, compared to the same period in 2021[144] - The effective tax rate for the nine months ended September 30, 2022, was impacted by a decrease in pre-tax book income and an increase in disallowed noncontrolling interest loss[153] Currency and Foreign Exchange - Approximately 31% of AUM was non-USD denominated as of September 30, 2022[109] - The foreign exchange impact on AUM was noted, reflecting changes in currency rates affecting non-USD-denominated AUM[114] - The impact of foreign exchange (FX) on AUM was noted, with non-USD-denominated AUM being translated into USD, affecting the overall figures[114]