Janus Henderson(US:JHG)2023-05-03 10:05Revenue Performance - Revenue for Q1 2023 was $495.8 million, a decrease of $124.2 million, or 20%, compared to Q1 2022[87]. - Total revenue for Q1 2023 was $495.8 million, a decrease of 20% compared to $620.0 million in Q1 2022, primarily driven by a decline in management fees[108]. - Adjusted revenue for Q1 2023 was $383.8 million, compared to $478.2 million in Q1 2022, reflecting a decline of 19.8%[131]. Assets Under Management (AUM) - Average Assets Under Management (AUM) increased to $310.5 billion, up 8.1% from December 31, 2022, driven by market performance and net inflows[91]. - Total Assets Under Management (AUM) increased from $287.3 billion as of March 31, 2022, to $310.5 billion as of March 31, 2023, representing an increase of 8%[101]. - Average AUM decreased by 23% from $396.7 billion in Q1 2022 to $304.5 billion in Q1 2023, with equities down 17%, fixed income down 18%, and multi-asset down 15%[100]. - Approximately 31.4% of AUM was non-USD-denominated, with a $1.3 billion increase in AUM due to currency fluctuations during Q1 2023[92]. Net Inflows and Investment Performance - Net inflows for Q1 2023 were $5.5 billion, reflecting mandate wins from institutional clients across various investment strategies[87]. - The total percentage of AUM outperforming benchmarks over 1 year was 67%, with alternatives showing a 69% outperformance[90]. - AUM performance by capability showed 94% of Multi-Asset AUM outperformed benchmarks over three years[90]. - Investment performance showed that 94% of Multi-Asset AUM outperformed benchmarks over 3 years[90]. Operating Income and Expenses - Operating income for Q1 2023 was $100.4 million, a decrease of $57.0 million, or 36%, compared to Q1 2022, with an operating margin of 20.3%[89]. - Total operating expenses for Q1 2023 were $395.4 million, a decrease of $67.2 million, or 15%, compared to Q1 2022[87]. - Operating expenses decreased by 15% from $462.6 million in Q1 2022 to $395.4 million in Q1 2023, with significant reductions in employee compensation and distribution expenses[114]. - Employee compensation and benefits decreased by $24.3 million, primarily due to a reduction in variable compensation and lower headcount[115]. Earnings and Dividends - Diluted earnings per share for Q1 2023 were $0.53, or $0.55 on an adjusted basis[87]. - The Board of Directors declared a $0.39 per share dividend for Q1 2023, to be paid on May 31, 2023[141]. - Adjusted diluted earnings per share decreased from $0.75 in Q1 2022 to $0.55 in Q1 2023[131]. - Net income attributable to JHG for Q1 2023 was $87.4 million, a decrease of $16.2 million, or 16%, compared to Q1 2022[90]. Cash Flow and Financial Position - Cash and cash equivalents decreased from $1,156.5 million as of December 31, 2022, to $829.4 million as of March 31, 2023[135]. - Cash flows from operating activities for Q1 2023 were $(108.2) million, compared to $(57.5) million in Q1 2022[148]. - Cash used for investing activities in Q1 2023 was $(235.1) million, compared to $(16.9) million in Q1 2022[150]. - The company has a $200 million Credit Facility with an option to increase borrowing capacity by an additional $50 million, maturing on February 16, 2024[146]. Tax and Regulatory Compliance - The effective tax rate decreased from 26.8% in Q1 2022 to 21.3% in Q1 2023[125]. - The combined capital requirement for the FCA-supervised regulatory group is £204.2 million ($252.5 million), with £211.9 million ($262.0 million) of capital above the requirement as of March 31, 2023[138]. Other Financial Metrics - Performance fees fell from $8.4 million in Q1 2022 to a loss of $14.9 million in Q1 2023, a decrease of 77%[110]. - Shareowner servicing fees decreased by 17% to $51.5 million, driven by a decline in average AUM[112]. - Investment gains (losses), net improved by $49.8 million, moving from a loss of $32.2 million in Q1 2022 to a gain of $17.6 million in Q1 2023[122]. - The company anticipates achieving approximately $40 million to $45 million in gross-cost efficiencies while investing in business growth initiatives[128].