Virtus Investment Partners(US:VRTS)2021-04-30 12:00Assets Under Management (AUM) and Flows - AUM increased sequentially by 28% to $168.9 billion, driven by the addition of AllianzGI (AGI) assets, market appreciation, and positive net flows[11, 19] - Sales increased sequentially by 19% to $10.6 billion due to higher sales of open-end funds and retail separate accounts[11, 23] - Net flows were $2.4 billion, representing 7.5% annualized organic growth, with positive net flows in retail separate accounts, open-end funds, exchange traded funds, and institutional accounts[11, 23] - Multi-asset AUM represented 13.3% of total AUM, up 410 bps sequentially, including the $6.5 billion Virtus AllianzGI Income & Growth Fund[19] Financial Performance - Operating income, as adjusted, was $78.0 million, including $9.4 million of seasonal employment expenses[12] - Operating margin, as adjusted, was 41.6%, up 130 bps sequentially; excluding seasonal items, the operating margin was 46.6%[12] - Earnings per diluted share, as adjusted, increased sequentially by $1.63, or 32%, to $6.78; seasonal items impacted earnings by ($0.85)[12] - Investment management fees, as adjusted, increased sequentially by $27.1 million, or 20%, to $187.3 million due to higher average AUM[28] Capital Activities and Balance Sheet - The company net settled 57,885 shares for $15.1 million and repurchased an additional 19,912 shares for $5.0 million[13] - Debt was reduced by $5.9 million, continuing consistent quarterly debt reduction[13] - Working capital increased sequentially by 23% to $211 million due to cash generation and capital activities[44, 45] - A revenue participation liability of $137.7 million was recorded related to the AllianzGI partnership[44, 45]