Virtus Investment Partners Inc (VRTS) Q3 2023 Earnings: A Comprehensive Analysis
Virtus Investment Partners Inc (NASDAQ:VRTS) reported diluted earnings per share of $4.19 and adjusted diluted earnings per share of $6.21.
The company reported total sales of $5.8B, net flows of ($1.5B), and assets under management of $162.5B.
Operating income increased by 15% from the previous quarter, reaching $44.9 million.
Net income attributable to Virtus Investment Partners, Inc. was $30.9 million, a slight decrease from the previous quarter.
On October 27, 2023, Virtus Investment Partners Inc (NASDAQ:VRTS) released its financial results for the third quarter of 2023. The company reported a diluted earnings per share of $4.19 and an adjusted diluted earnings per share of $6.21. Total sales for the quarter were $5.8 billion, with net flows of ($1.5 billion) and assets under management amounting to $162.5 billion.
Financial Performance Overview
The company's revenues for the quarter were $219.3 million, marking a 4% increase from the same period in the previous year. Operating expenses also increased by 5% to $174.4 million. The operating income for the quarter was $44.9 million, a 2% increase from the same period in the previous year. However, the net income attributable to Virtus Investment Partners Inc decreased by 3% to $30.9 million.
Assets Under Management and Asset Flows
The total assets under management at the end of the quarter were $162.5 billion, a decrease from $168.3 billion at the end of the previous quarter. This decrease was primarily due to market performance and open-end fund net outflows. Total sales for the quarter were $5.8 billion, a decrease from $7.6 billion in the previous quarter. Net flows for the quarter were ($1.5 billion), compared with breakeven net flows in the previous quarter.
GAAP and Non-GAAP Results
According to the GAAP results, the operating income of $44.9 million increased by 15% from the previous quarter due to an increase in revenues reflecting higher average assets under management. The non-GAAP results showed that revenues, as adjusted, of $197.5 million increased by 4% from the previous quarter primarily due to higher average assets under management.
Balance Sheet and Cash Flow
The company's working capital at the end of the quarter was $73.4 million, a decrease from $124.0 million at the end of the previous quarter. During the quarter, the company increased its quarterly dividend by 15% to $1.90 per share and repurchased 74,015 shares of common stock for $15.0 million. The company also repaid $20.0 million of the revolving credit facility during the quarter.
Looking Forward
Virtus Investment Partners Inc continues to focus on providing investment management and related services to individuals and institutions. The company's financial performance in the third quarter of 2023 reflects its commitment to this mission. However, the decrease in net income and total assets under management indicates some challenges that the company needs to address.
Explore the complete 8-K earnings release (here) from Virtus Investment Partners Inc for further details.
This article first appeared on GuruFocus.
