Diamond Hill Investment Group Inc (DHIL) Reports Q3 2023 Earnings and Declares Quarterly Dividend
Assets under management (AUM) and assets under advisement (AUA) combined remained stable at $26.6 billion in Q3 2023.
Net client outflows were $343.0 million, a significant decrease from $760.0 million of net outflows for the third quarter of 2022.
Revenue was $35.6 million, a 7% decrease from $38.3 million for the third quarter of 2022.
Net income attributable to common shareholders was $6.5 million, a 46% decrease from $12.0 million for the third quarter of 2022.
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Diamond Hill Investment Group Inc (NASDAQ:DHIL) released its unaudited financial results for the third quarter of 2023 on October 31, 2023. The company reported a stable AUM and AUA combined of $26.6 billion, compared to $26.6 billion as of December 31, 2022, and $25.6 billion as of September 30, 2022. However, the company saw a decrease in net client inflows and revenue, and a significant drop in net income attributable to common shareholders.
Financial Highlights
The company's revenue for Q3 2023 was $35.6 million, a 7% decrease from $38.3 million for the same period in 2022. The operating profit margin was 35%, compared to 42% for the third quarter of 2022. The company also recorded an investment loss of $4.6 million, compared to an investment loss of $8.0 million for the third quarter of 2022.
Net income attributable to common shareholders was $6.5 million, a significant decrease from $12.0 million for the third quarter of 2022. Earnings per share attributable to common shareholders - diluted was $2.20, compared to $3.90 for the third quarter of 2022.
Company's Commentary
The investments we are making to diversify our business continue to show promise, said Heather Brilliant, CEO. Our fixed income strategies experienced inflows again in the third quarter and performance remains strong, helping partially offset outflows from some of our US equity strategies. We remain focused on generating excellent, long-term client outcomes in all market environments.
Dividend Declaration
The company's board of directors approved the payment of a regular quarterly cash dividend of $1.50 per share. The dividend will be paid on December 8, 2023, to the company's shareholders of record as of November 24, 2023.
Financial Tables Summary
The company's total operating expenses for Q3 2023 were $23,193,086, a 4% increase from $22,232,077 for the same period in 2022. Net operating income was $12,361,194, a 23% decrease from $16,032,597 for the third quarter of 2022.
For the nine months ended September 30, 2023, the company's revenue was $102,895,420, a 14% decrease from $119,542,174 for the same period in 2022. Net income attributable to common shareholders was $28,613,463, a 12% increase from $25,557,278 for the same period in 2022.
Assets Under Management and Assets Under Advisement Data
The total AUM and AUA at the end of the period was $26.6 billion, compared to $25.6 billion for the same period in 2022. The average AUM and AUA combined was $27.8 billion, compared to $28.1 billion for the third quarter of 2022.
Explore the complete 8-K earnings release (here) from Diamond Hill Investment Group Inc for further details.
This article first appeared on GuruFocus.
