Victory Capital(US:VCTR)2022-08-08 12:39Financial Performance - Total revenue for Q2 2022 was $216,006,000, a decrease of 2% compared to $221,904,000 in Q2 2021[16] - Net income for Q2 2022 increased to $79,205,000, up 14% from $69,270,000 in Q2 2021[16] - Earnings per share (EPS) for Q2 2022 were $1.16 (basic) and $1.09 (diluted), compared to $1.02 and $0.93 in Q2 2021, representing increases of 14% and 17% respectively[16] - The company reported a total operating income of $119,326,000 for Q2 2022, an increase of 25% from $95,268,000 in Q2 2021[16] - Net income for the six months ended June 30, 2022, was $150,478 thousand, compared to $134,472 thousand for the same period in 2021, representing an increase of approximately 11.9%[24] - Total revenue for the six months ended June 30, 2022, was $446.0 million, compared to $434.9 million for the same period in 2021, reflecting a year-over-year increase[49] Assets and Liabilities - Total assets as of June 30, 2022, were $2,567,570,000, a slight decrease from $2,579,746,000 at the end of 2021[13] - Long-term debt decreased to $1,017,496,000 from $1,127,924,000 at the end of 2021, reflecting a reduction of approximately 10%[13] - Total stockholders' equity increased to $1,038,181,000 as of June 30, 2022, up from $929,927,000 at the end of 2021, marking an increase of about 12%[13] - Customer receivables as of June 30, 2022, totaled $90.9 million, down from $104.3 million at December 31, 2021[49] - The net carrying value of accounts receivable and accounts payable approximates fair value due to their short-term nature, with long-term debt fair value considered equal to its carrying value as of June 30, 2022[107] Cash Flow and Dividends - Cash provided by operating activities for the six months ended June 30, 2022, was $165,055 thousand, slightly higher than $164,172 thousand in 2021[24] - The company declared dividends of $0.25 per share in Q2 2022, up from $0.12 per share in Q2 2021[16] - The company paid dividends totaling $34,739 thousand in the six months ended June 30, 2022, compared to $14,638 thousand in 2021[24] - Total dividends paid or payable for the six months ended June 30, 2022, amounted to $34.9 million, including $34.3 million in quarterly dividends[132] Acquisitions - The company completed the acquisition of USAA Asset Management Company on July 1, 2019, enhancing its mutual fund and ETF businesses[26] - The Company completed the acquisition of THB Asset Management on March 1, 2021, with an acquired AUM of $547 million[28] - The acquisition of New Energy Capital Partners was finalized on November 1, 2021, with an AUM of $795 million[29] - WestEnd Advisors was acquired on December 31, 2021, with an AUM of $19.3 billion, making it the Company's twelfth investment franchise[30] - The company completed the acquisition of WestEnd on December 31, 2021, for an estimated purchase price of $716.1 million, with acquired assets totaling $19.3 billion[165][166] - The NEC Acquisition was completed on November 1, 2021, for a purchase price of $63.1 million, with acquired AUM totaling $795.0 million[168][169] Investment Management Fees - Investment management fees for the first half of 2022 were $347,594,000, an increase of 6% compared to $328,317,000 in the first half of 2021[16] - Total investment management fees for the three months ended June 30, 2022, were $168.1 million, slightly up from $168.0 million in the same period of 2021[49] - The Company’s investment management fees for the six months ended June 30, 2022 totaled $267.5 million, a decrease from $274.8 million in the same period of 2021[113] Market Performance and AUM - Assets under management (AUM) decreased by $23.2 billion, or 13.0%, to $154.9 billion as of June 30, 2022, from $178.1 billion at March 31, 2022, primarily due to negative market action of $21.7 billion[181] - As of June 30, 2022, the company has $154.9 billion in Assets Under Management (AUM) [158] - The ending AUM for the six months ended June 30, 2022 was $154.9 billion, a decrease of $28.7 billion, or 15.6%, from $183.7 billion at December 31, 2021[200] - The estimated net revenue growth rate for WestEnd is projected at 36% for the five-year average as of June 30, 2022, down from 38% at the acquisition date[89] Operating Expenses - Total operating expenses for the three months ended June 30, 2022 were $96.7 million, down from $126.6 million in the same period in 2021[204] - Personnel compensation and benefits for the three months ended June 30, 2022 were $57.6 million, an increase of $0.1 million, or 0.2%, from $57.5 million for the same period in 2021[211] Tax and Other Comprehensive Income - The effective tax rate for the three months ended June 30, 2022 was 24.6%, compared to 22.9% for the same period in 2021, with provisions for income taxes of $25.8 million and $20.6 million respectively[119] - Other comprehensive income for the first half of 2022 was $21,203,000, compared to $7,811,000 in the first half of 2021, indicating a significant improvement[19] - The company reported a net current period other comprehensive income of $21.2 million for the six months ended June 30, 2022 [143]