Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Dividend, Conference Call, Webcast, Stock Sale/Buyback

Victory Capital Reports First-Quarter 2022 Financial Results and New $100 Million Share Repurchase Program


Victory Capital Holdings, Inc. (NASDAQ: VCTR) ("Victory Capital" or "the Company") today reported financial results for the quarter ended March 31, 2022.

"We had positive organic growth momentum across all of our channels as we entered into 2022, and it continued through the end of the quarter. This was our third quarter, out of the last four, with positive net long-term inflows," said David Brown, Chairman and Chief Executive Officer. "This is particularly gratifying, given the challenging macroeconomic and geopolitical backdrop during the period and the associated market disruptions. Our institutional, retail intermediary, as well as our direct investor business all achieved sequential and year-over-year improvement in both gross and net long-term asset flows. This culminated in quarterly gross sales of $11 billion and positive net long-term inflows of $3 billion during the quarter.

"Investment performance was also exceptional during the quarter. A majority of our strategies continued to outperform their benchmarks over the 1-, 3-, 5-, and 10-year periods. Through quarter-end, 78% and 83%, of our total AUM outperformed benchmarks over the critical 3-year and 5-year periods, respectively.

"Our variable cost structure enabled us to generate healthy profit margins in the first quarter. Margins were in line with previous guidance and our consolidated average fee rate decreased, as expected, due to a shift in product mix associated with the WestEnd Advisors ("WestEnd") acquisition.

"Strong and predictable cash flow generation has allowed us to continue paying down debt at a fast pace. Since the beginning of the year, we have repaid a total of $90 million of debt. With our current $15 million share repurchase authorization nearing completion, the Board authorized a new $100 million share repurchase plan, which is the largest in our history. This new program provides us with flexibility to be more opportunistic with repurchase activity.

"As always, we continue to focus on our top priority, which is generating strong investment performance and serving our clients."

1

Total AUM includes both discretionary and non-discretionary client assets.

2

The Company reports its financial results in accordance with generally accepted accounting principles ("GAAP"). Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section "Information Regarding Non-GAAP Financial Measures" at the end of this press release for an explanation of Non-GAAP financial measures and a reconciliation to the nearest GAAP financial measure.

The table below presents AUM, and certain GAAP and non-GAAP ("adjusted") financial results. Due to rounding, AUM values and other amounts in this press release may not add up precisely to the totals provided.

(in millions except per share amounts or as otherwise noted)

 

For the Three Months Ended

March 31,

 

December 31,

 

March 31,

2022

 

2021

 

2021

Assets Under Management1
Ending $

178,098

 

$

183,654

 

$

154,331

 

Average

176,863

 

162,295

 

151,090

 

 
Long-term Flows2
Long-term Gross $

11,012

 

$

5,481

 

$

6,726

 

Long-term Net

3,043

 

(3,402

)

(983

)

 
Money Market/Short-term Flows
Money Market/Short-term Gross $

124

 

$

84

 

$

108

 

Money Market/Short-term Net

(53

)

(98

)

(191

)

 
Total Flows
Total Gross $

11,136

 

$

5,565

 

$

6,833

 

Total Net

2,990

 

(3,500

)

(1,174

)

 
Consolidated Financial Results (GAAP)
Revenue $

230.0

 

$

229.1

 

$

212.9

 

Revenue realization (in bps)

52.7

 

56.0

 

57.2

 

Operating expenses

128.5

 

139.3

 

123.2

 

Income from operations

101.5

 

89.8

 

89.8

 

Operating margin

44.1

%

39.2

%

42.1

%

Net income

71.3

 

69.7

 

65.2

 

Earnings per diluted share $

0.97

 

$

0.94

 

$

0.88

 

Cash flow from operations

74.8

 

112.1

 

79.6

 

 
Adjusted Performance Results (Non-GAAP)3
Adjusted EBITDA $

114.4

 

$

114.9

 

$

106.8

 

Adjusted EBITDA margin

49.7

%

50.2

%

50.2

%

Adjusted net income

81.1

 

86.4

 

76.7

 

Tax benefit of goodwill and acquired intangible assets

9.3

 

7.3

 

6.9

 

Adjusted net income with tax benefit

90.4

 

93.7

 

83.6

 

Adjusted net income with tax benefit per diluted share $

1.23

 

$

1.27

 

$

1.13

 

___________________________

1

 

Total AUM includes both discretionary and non-discretionary client assets.

2

 

Long-term AUM is defined as total AUM excluding Money Market and Short-term assets.

3

 

The Company reports its financial results in accordance with GAAP. Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section "Information Regarding Non-GAAP Financial Measures" at the end of this press release for an explanation of Non-GAAP financial measures and a reconciliation to the nearest GAAP financial measure.

 

AUM, Flows and Investment Performance

Victory Capital's AUM decreased by $5.6 billion to $178.1 billion at March 31, 2022, compared with $183.7 billion at December 31, 2021. The decrease was due to negative market action of $8.3 billion, partially offset by net inflows of $3.0 billion. Total gross flows for the first quarter were $11.1 billion, including long-term gross flows of $11.0 billion.

As of March 31, 2022, Victory Capital offered 129 investment strategies through its 12 autonomous Investment Franchises and Solutions Platform. The table below presents outperformance against benchmarks by AUM as of March 31, 2022.

Percentage of AUM Outperforming Benchmark

Trailing

 

Trailing

 

Trailing

 

Trailing

1-Year

 

3-Years

 

5-Years

 

10-Years

68%

 

78%

 

83%

 

79%

First Quarter 2022 Compared with Fourth Quarter 2021

Revenue increased $0.9 million to $230.0 million, in the first quarter, compared with $229.1 million in the fourth quarter, due to additional revenue associated with the WestEnd acquisition, which closed on December 31, 2021, partially offset by two fewer days in the quarter and lower revenue realization due to changes in asset mix, resulting from the impact of WestEnd and lower average net assets. GAAP operating margin expanded 490 basis points in the first quarter to 44.1%, up from 39.2% in the fourth quarter, due to lower acquisition-related costs as a result of the WestEnd and New Energy Capital ("NEC") acquisitions in the fourth quarter of 2021 and a non-cash $6.7 million difference in amounts recorded to the change in fair value of consideration payable for acquisitions, partially offset by continued investments to support future growth. First quarter GAAP net income rose 2% to $71.3 million, up from $69.7 million in the prior quarter. On a per-share basis, GAAP net income advanced 3% to $0.97 per diluted share in the first quarter, versus $0.94 per diluted share in the fourth quarter.

Adjusted net income with tax benefit decreased 3% to $90.4 million in the first quarter, down from $93.7 million in the fourth quarter. On a per-share basis, adjusted net income with tax benefit decreased 3% to $1.23 per diluted share in the first quarter, from $1.27 per diluted share in the prior quarter. Adjusted EBITDA decreased $0.6 million to $114.4 million in the first quarter compared to $114.9 million in the fourth quarter. Adjusted EBITDA margin contracted 50 basis points in the first quarter of 2022 to 49.7% compared with 50.2% in the prior quarter primarily due to higher seasonal payroll taxes and benefits.

First Quarter 2022 Compared with First Quarter 2021

Revenue for the three months ended March 31, 2022, rose 8% to $230.0 million, compared with $212.9 million in the same quarter of 2021. The increase was primarily due to higher average AUM partially offset by lower revenue realization as a result of the WestEnd acquisition.

GAAP operating margin was 44.1% in the first quarter, a 200 basis point increase from 42.1% in the same quarter of 2021. Operating expenses increased 4% to $128.5 million, compared with $123.2 million in the first quarter of 2021. The increase was primarily due to continued investments to support future growth as well as an increase in personnel expense from acquisitions, partially offset by a non-cash $6.0 million difference in amounts recorded to the change in fair value of consideration payable for acquisitions. GAAP net income rose 9% to $71.3 million, or $0.97 per diluted share, in the first quarter compared with $65.2 million, or $0.88 per diluted share, in the same quarter of 2021.

Adjusted net income with tax benefit advanced 8% to $90.4 million, or $1.23 per diluted share, in the first quarter, compared with $83.6 million, or $1.13 per diluted share in the same quarter last year. Adjusted EBITDA rose 7% to $114.4 million, compared with $106.8 million in the same quarter of 2021. Year-over-year, adjusted EBITDA margin contracted 50 basis points to 49.7% in the first quarter of 2022, compared with 50.2% in the same quarter last year.

Balance Sheet / Capital Management

During the first quarter, the Company reduced outstanding debt by an additional $70.0 million. The total debt outstanding as of March 31, 2022 was approximately $1,081 million and consisted of an existing term loan balance of $646 million and the 2021 Incremental Term Loans balance of $435 million. Subsequent to March 31, 2022, the Company reduced outstanding debt on the 2021 Incremental Term Loans by $20.0 million.

During the first quarter, the Company repurchased 293 thousand shares under its current share repurchase program, which is nearing completion. The Company's Board of Directors approved a new common stock repurchase program authorizing the repurchase of up to $100 million of its common stock. Under the new program, which will commence immediately upon completion of the current program, the Company may purchase its shares from time to time until December 31, 2023 in privately negotiated transactions, through block trades, pursuant to open market purchases, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the SEC. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company's shares, trading volume, capital availability, Company performance and general economic and market conditions. The share repurchase program may be suspended or discontinued at any time.

The Company's Board of Directors also approved a regular quarterly cash dividend of $0.25 per share. The dividend is payable on June 27, 2022, to shareholders of record on June 10, 2022.

Conference Call, Webcast and Slide Presentation

The Company will host a conference call tomorrow morning, May 6, at 8:00 a.m. ET to discuss the results. Analysts and investors may participate in the question-and-answer session. To participate in the conference call, please call (888) 330-3571 (domestic) or (646) 960-0657 (international), shortly before 8:00 a.m. ET and reference the Victory Capital Conference Call. A live, listen-only webcast will also be available via the investor relations section of the Company's website at https://ir.vcm.com. Prior to the call, a supplemental slide presentation that will be used during the conference call will be available on the Events and Presentations page of the Company's investor relations website. For anyone who is unable to join the live event, an archive of the webcast will be available for replay shortly after the call concludes.

About Victory Capital

Victory Capital is a diversified global asset management firm with $178.1 billion in assets under management as of March 31, 2022. It was ranked ninth on Fortune's list of the 100 Fastest Growing Companies for 2021. The Company operates a next-generation business model combining boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform.

Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 12 autonomous Investment Franchises and a Solutions Platform, Victory Capital offers a wide array of investment products, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, and a 529 Education Savings Plan.

For more information, please visit www.vcm.com or follow us: Twitter and LinkedIn.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "assume," "budget," "continue," "estimate," "future," "objective," "outlook," "plan," "potential," "predict," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Victory Capital's control such as the COVID-19 pandemic and its effect on our business, operations and financial results going forward, as discussed in Victory Capital's filings with the SEC, that could cause Victory Capital's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements.

Although it is not possible to identify all such risks and factors, they include, among others, the following: reductions in AUM based on investment performance, client withdrawals, difficult market conditions and other factors such as a pandemic; the nature of the Company's contracts and investment advisory agreements; the Company's ability to maintain historical returns and sustain its historical growth; the Company's dependence on third parties to market its strategies and provide products or services for the operation of its business; the Company's ability to retain key investment professionals or members of its senior management team; the Company's reliance on the technology systems supporting its operations; the Company's ability to successfully acquire and integrate new companies; the concentration of the Company's investments in long-only small- and mid-cap equity and U.S. clients; risks and uncertainties associated with non-U.S. investments; the Company's efforts to establish and develop new teams and strategies; the ability of the Company's investment teams to identify appropriate investment opportunities; the Company's ability to limit employee misconduct; the Company's ability to meet the guidelines set by its clients; the Company's exposure to potential litigation (including administrative or tax proceedings) or regulatory actions; the Company's ability to implement effective information and cyber security policies, procedures and capabilities; the Company's substantial indebtedness; the potential impairment of the Company's goodwill and intangible assets; disruption to the operations of third parties whose functions are integral to the Company's ETF platform; the Company's determination that Victory Capital is not required to register as an "investment company" under the 1940 Act; the fluctuation of the Company's expenses; the Company's ability to respond to recent trends in the investment management industry; the level of regulation on investment management firms and the Company's ability to respond to regulatory developments; the competitiveness of the investment management industry; the level of control over the Company retained by Crestview GP; the Company's status as an emerging growth company and a controlled company; and other risks and factors listed under "Risk Factors" and elsewhere in the Company's filings with the SEC.

Such forward-looking statements are based on numerous assumptions regarding Victory Capital's present and future business strategies and the environment in which it will operate in the future. Any forward-looking statement made in this press release speaks only as of the date hereof. Except as required by law, Victory Capital assumes no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

©2021 Fortune Media IP Limited All rights reserved. Fortune is a registered trademark of Fortune Media IP Limited and is used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Victory Capital Management, Inc.

Fortune's annual list ranks the top performing, publicly traded companies in revenues, profits and stock returns over the three-year period ended April 30, 2021.

Victory Capital Holdings, Inc. and Subsidiaries

Unaudited Consolidated Statements of Operations

(in thousands except per share data and percentages)

 

For the Three Months Ended

March 31,

 

December 31,

 

March 31,

2022

 

2021

 

2021

Revenue
Investment management fees $

179,465

 

$

174,867

 

$

160,284

 

Fund administration and distribution fees

50,554

 

54,255

 

52,665

 

Total revenue

230,019

 

229,122

 

212,949

 

 
Expenses
Personnel compensation and benefits

64,901

 

62,528

 

59,006

 

Distribution and other asset-based expenses

43,584

 

45,200

 

42,103

 

General and administrative

12,762

 

12,904

 

13,310

 

Depreciation and amortization

10,607

 

5,384

 

4,385

 

Change in value of consideration payable for acquisition of business

(3,500

)

3,200

 

2,500

 

Acquisition-related costs

117

 

9,997

 

(164

)

Restructuring and integration costs

9

 

85

 

2,053

 

Total operating expenses

128,480

 

139,298

 

123,193

 

 
Income from operations

101,539

 

89,824

 

89,756

 

Operating margin

44.1

%

39.2

%

42.1

%

 
Other income (expense)
Interest income and other income (expense)

(207

)

1,498

 

2,734

 

Interest expense and other financing costs

(9,233

)

(5,799

)

(6,845

)

Loss on debt extinguishment

(1,555

)

?

 

(2,781

)

Total other income (expense), net

(10,995

)

(4,301

)

(6,892

)

 
Income before income taxes

90,544

 

85,523

 

82,864

 

 
Income tax expense

(19,271

)

(15,781

)

(17,662

)

 
Net income $

71,273

 

$

69,742

 

$

65,202

 

 
Earnings per share of common stock
Basic $

1.04

 

$

1.02

 

$

0.96

 

Diluted

0.97

 

0.94

 

0.88

 

 
Weighted average number of shares outstanding
Basic

68,747

 

68,378

 

67,761

 

Diluted

73,652

 

73,973

 

74,108

 

 
Dividends declared per share $

0.25

 

$

0.17

 

$

0.09

 

 
Victory Capital Holdings, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures1

(unaudited; in thousands except per share data and percentages)

 

For the Three Months Ended

March 31,

 

December 31,

 

March 31,

2022

 

2021

 

2021

Net income (GAAP) $

71,273

 

$

69,742

 

$

65,202

 

Income tax expense

(19,271

)

(15,781

)

(17,662

)

Income before income taxes $

90,544

 

$

85,523

 

$

82,864

 

Interest expense

8,724

 

5,328

 

7,310

 

Depreciation

1,954

 

1,746

 

1,246

 

Other business taxes

590

 

383

 

374

 

Amortization of acquisition-related intangible assets

8,656

 

3,638

 

3,138

 

Stock-based compensation

2,633

 

2,499

 

4,636

 

Acquisition, restructuring and exit costs

(844

)

15,188

 

4,389

 

Debt issuance costs

2,061

 

532

 

2,793

 

Losses from equity method investments

57

 

104

 

92

 

Adjusted EBITDA $

114,375

 

$

114,941

 

$

106,842

 

Adjusted EBITDA margin

49.7

%

50.2

%

50.2

%

 
 
Net income (GAAP) $

71,273

 

$

69,742

 

$

65,202

 

Adjustment to reflect the operating performance of the Company
Other business taxes

590

 

383

 

374

 

Amortization of acquisition-related intangible assets

8,656

 

3,638

 

3,138

 

Stock-based compensation

2,633

 

2,499

 

4,636

 

Acquisition, restructuring and exit costs

(844

)

15,188

 

4,389

 

Debt issuance costs

2,061

 

532

 

2,793

 

Tax effect of above adjustments

(3,274

)

(5,560

)

(3,832

)

Adjusted net income $

81,095

 

$

86,422

 

$

76,700

 

Adjusted net income per diluted share $

1.10

 

$

1.17

 

$

1.03

 

 
Tax benefit of goodwill and acquired intangible assets $

9,322

 

$

7,258

 

$

6,918

 

Tax benefit of goodwill and acquired intangible assets per diluted share $

0.13

 

$

0.10

 

$

0.09

 

 
Adjusted net income with tax benefit $

90,417

 

$

93,680

 

$

83,618

 

Adjusted net income with tax benefit per diluted share $

1.23

 

$

1.27

 

$

1.13

 

1

The Company reports its financial results in accordance with GAAP. Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section "Information Regarding Non-GAAP Financial Measures" at the end of this press release for an explanation of Non-GAAP financial measures and a reconciliation to the nearest GAAP financial measure.

 
Victory Capital Holdings, Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except for shares)

 

March 31, 2022

 

December 31, 2021

Assets
Cash and cash equivalents $

38,550

 

$

69,533

 

Receivables

93,713

 

104,305

 

Prepaid expenses

7,914

 

6,654

 

Investments, at fair value

32,388

 

31,724

 

Property and equipment, net

24,760

 

25,295

 

Goodwill

981,805

 

981,805

 

Other intangible assets, net

1,341,140

 

1,349,797

 

Other assets

52,322

 

10,633

 

Total assets $

2,572,592

 

$

2,579,746

 

 
Liabilities and stockholders' equity
Accounts payable and accrued expenses $

47,587

 

$

62,102

 

Accrued compensation and benefits

43,388

 

53,905

 

Consideration payable for acquisition of business

305,553

 

309,380

 

Deferred tax liability, net

76,176

 

63,120

 

Other liabilities

53,085

 

33,388

 

Long-term debt, net1

1,060,529

 

1,127,924

 

Total liabilities

1,586,318

 

1,649,819

 

 
Stockholders' equity
Common stock, $0.01 par value per share:
2022 - 600,000,000 shares authorized, 77,947,578 shares issued and 68,789,615 shares outstanding; 2021 - 600,000,000 shares authorized, 77,242,372 shares issued and 68,662,779 shares outstanding

779

 

772

 

Additional paid-in capital

678,812

 

673,572

 

Treasury stock, at cost: 2022 - 9,157,963 shares; 2021 - 8,579,593 shares

(171,954

)

(153,200

)

Accumulated other comprehensive income (loss)

22,171

 

5,972

 

Retained earnings

456,466

 

402,811

 

Total stockholders' equity

986,274

 

929,927

 

Total liabilities and stockholders' equity $

2,572,592

 

$

2,579,746

 

1

Balances at March 31, 2022 and December 31, 2021 are shown net of unamortized loan discount and debt issuance costs in the amount of $20.7 million and $23.3 million, respectively. The gross amount of the debt outstanding was $1,081.2 million as of March 31, 2022 and $1,151.2 million as of December 31, 2021.

 

Victory Capital Holdings, Inc. and Subsidiaries

Assets Under Management

(unaudited; in millions except for percentages)

 

For the Three Months Ended

 

% Change from

March 31,

 

December 31,

 

March 31,

 

December 31,

 

March 31,

2022

 

 

2021

 

 

2021

 

 

2021

 

2021

Beginning assets under management $

183,654

 

$

159,889

 

$

147,241

 

15%

 

25%

Gross client cash inflows

11,136

 

5,565

 

6,833

 

100%

 

63%

Gross client cash outflows

(8,145

)

(9,065

)

(8,007

)

-10%

 

2%

Net client cash flows

2,990

 

(3,500

)

(1,174

)

N/A

 

N/A

Market appreciation (depreciation)

(8,250

)

7,224

 

7,718

 

N/A

 

N/A

Realizations and distributions

(30

)

?

 

?

 

N/A

 

N/A

Acquired assets / Net transfers1

(266

)

20,042

 

547

 

N/A

 

N/A

Ending assets under management

178,098

 

183,654

 

154,331

 

-3%

 

15%

Average assets under management

176,863

 

162,295

 

151,090

 

9%

 

17%

 

1

The three months ended December 31, 2021 includes acquired assets of $795 million and $19.3 billion associated with the NEC and WestEnd acquisitions, which closed on November 1, 2021 and December 31, 2021, respectively. The WestEnd acquired assets had no economic impact on operations in 2021 and no effect on asset flows, revenues, or earnings in the fourth-quarter period ended December 31, 2021. The three months ended March 31, 2021 includes the transfer in of $547 million of assets associated with the THB Asset Management ("THB") acquisition, which closed on March 1, 2021.

 
Victory Capital Holdings, Inc. and Subsidiaries

Assets Under Management by Asset Class

(unaudited; in millions)

 
For the Three Months Ended

By Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

Global /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mid

 

U.S. Small

 

Fixed

 

U.S. Large

 

Non-U.S.

 

 

 

 

Alternative

 

Total

 

Money Market/

 

 

 

Cap Equity

 

Cap Equity

 

Income

 

Cap Equity

 

Equity

 

Solutions

 

Investments

 

Long-term

 

Short-term

 

Total

March 31, 2022
Beginning assets under management $

30,578

 

$

20,094

 

$

35,154

 

$

15,766

 

$

16,050

 

$

60,364

 

$

2,548

 

$

180,554

 

$

3,100

 

$

183,654

 

Gross client cash inflows

2,433

 

1,118

 

1,604

 

126

 

1,241

 

2,802

 

1,688

 

11,012

 

124

 

11,136

 

Gross client cash outflows

(1,834

)

(1,352

)

(2,149

)

(383

)

(618

)

(1,475

)

(157

)

(7,969

)

(176

)

(8,145

)

Net client cash flows

599

 

(235

)

(545

)

(258

)

624

 

1,327

 

1,531

 

3,043

 

(53

)

2,990

 

Market appreciation (depreciation)

(655

)

(1,381

)

(1,541

)

(1,083

)

(1,096

)

(2,470

)

(28

)

(8,255

)

5

 

(8,250

)

Realizations and distributions

?

 

?

 

?

 

?

 

?

 

?

 

(30

)

(30

)

?

 

(30

)

Acquired assets / Net transfers

21

 

11

 

3

 

123

 

77

 

(565

)

3

 

(327

)

61

 

(266

)

Ending assets under management $

30,543

 

$

18,489

 

$

33,071

 

$

14,548

 

$

15,654

 

$

58,656

 

$

4,025

 

$

174,985

 

$

3,113

 

$

178,098

 

 
December 31, 20211
Beginning assets under management $

29,798

 

$

19,863

 

$

36,931

 

$

14,803

 

$

15,840

 

$

38,330

 

$

1,158

 

$

156,722

 

$

3,166

 

$

159,889

 

Gross client cash inflows

1,564

 

762

 

1,386

 

96

 

533

 

782

 

358

 

5,481

 

84

 

5,565

 

Gross client cash outflows

(2,617

)

(1,205

)

(3,077

)

(367

)

(577

)

(968

)

(73

)

(8,883

)

(182

)

(9,065

)

Net client cash flows

(1,053

)

(443

)

(1,691

)

(271

)

(44

)

(186

)

286

 

(3,402

)

(98

)

(3,500

)

Market appreciation (depreciation)

1,840

 

942

 

133

 

1,025

 

291

 

2,959

 

23

 

7,213

 

10

 

7,224

 

Acquired assets / Net transfers2

(8

)

(269

)

(220

)

209

 

(37

)

19,262

 

1,081

 

20,020

 

22

 

20,042

 

Ending assets under management $

30,578

 

$

20,094

 

$

35,154

 

$

15,766

 

$

16,050

 

$

60,364

 

$

2,548

 

$

180,554

 

$

3,100

 

$

183,654

 

 
March 31, 20211
Beginning assets under management $

26,230

 

$

18,368

 

$

36,639

 

$

14,230

 

$

14,141

 

$

33,676

 

$

422

 

$

143,706

 

$

3,534

 

$

147,241

 

Gross client cash inflows

1,741

 

1,072

 

2,025

 

98

 

646

 

839

 

304

 

6,726

 

108

 

6,833

 

Gross client cash outflows

(1,854

)

(1,696

)

(1,705

)

(432

)

(673

)

(1,323

)

(26

)

(7,709

)

(299

)

(8,007

)

Net client cash flows

(112

)

(624

)

320

 

(334

)

(26

)

(484

)

278

 

(983

)

(191

)

(1,174

)

Market appreciation (depreciation)

3,032

 

2,024

 

(219

)

604

 

754

 

1,516

 

8

 

7,720

 

(2

)

7,718

 

Acquired assets / Net transfers3

6

 

461

 

73

 

(52

)

25

 

1

 

1

 

515

 

32

 

547

 

Ending assets under management $

29,156

 

$

20,230

 

$

36,813

 

$

14,448

 

$

14,894

 

$

34,709

 

$

709

 

$

150,958

 

$

3,373

 

$

154,331

 

1

Beginning in January 2022, the Company's "Other" asset class has been categorized to Solutions, Fixed Income, Global / Non-U.S. Equity, and Alternative Investments based on the underlying investment strategy. Additionally, all assets managed using alternative investment strategies are now included in the Company's Alternative Investments asset class. Prior-period figures have been adjusted accordingly.

2

 

The three months ended December 31, 2021 includes acquired assets of $795 million and $19.3 billion associated with the NEC and WestEnd acquisitions, which closed on November 1, 2021 and December 31, 2021, respectively. The WestEnd acquired assets had no economic impact on operations in 2021 and no effect on asset flows, revenues, or earnings in the fourth-quarter period ended December 31, 2021.

3

 

The three months ended March 31, 2021 includes the transfer in of $547 million of assets associated with the THB acquisition, which closed on March 1, 2021.

 
Victory Capital Holdings, Inc. and Subsidiaries

Assets Under Management by Vehicle

(unaudited; in millions)

 
For the Three Months Ended

By Vehicle

 

 

 

 

 

 

Separate

 

 

 

 

 

 

 

 

 

Accounts and

 

 

 

Mutual

 

 

 

 

Other Pooled

 

 

 

Funds1

 

ETFs2

 

Vehicles3

 

Total

March 31, 2022
Beginning assets under management $

124,142

 

$

4,871

 

$

54,641

 

$

183,654

 

Gross client cash inflows

6,590

 

543

 

4,003

 

11,136

 

Gross client cash outflows

(6,383

)

(69

)

(1,694

)

(8,145

)

Net client cash flows

207

 

474

 

2,308

 

2,990

 

Market appreciation (depreciation)

(5,964

)

(99

)

(2,187

)

(8,250

)

Realizations and distributions

?

 

?

 

(30

)

(30

)

Acquired assets / Net transfers

(266

)

?

 

?

 

(266

)

Ending assets under management $

118,119

 

$

5,246

 

$

54,733

 

$

178,098

 

 
December 31, 2021
Beginning assets under management $

121,367

 

$

4,371

 

$

34,151

 

$

159,889

 

Gross client cash inflows

4,289

 

260

 

1,016

 

5,565

 

Gross client cash outflows

(6,925

)

(65

)

(2,075

)

(9,065

)

Net client cash flows

(2,635

)

195

 

(1,059

)

(3,500

)

Market appreciation (depreciation)

5,426

 

308

 

1,489

 

7,224

 

Acquired assets / Net transfers4

(15

)

(3

)

20,060

 

20,042

 

Ending assets under management $

124,142

 

$

4,871

 

$

54,641

 

$

183,654

 

 
March 31, 20211
Beginning assets under management $

112,998

 

$

3,976

 

$

30,267

 

$

147,241

 

Gross client cash inflows

5,465

 

240

 

1,128

 

6,833

 

Gross client cash outflows

(6,293

)

(117

)

(1,598

)

(8,007

)

Net client cash flows

(828

)

123

 

(469

)

(1,174

)

Market appreciation (depreciation)

5,575

 

343

 

1,801

 

7,718

 

Acquired assets / Net transfers5

85

 

?

 

462

 

547

 

Ending assets under management $

117,830

 

$

4,441

 

$

32,061

 

$

154,331

 

1

Includes institutional and retail share classes, money market and VIP funds.

2

 

Represents only ETF assets held by third parties. Excludes ETF assets held by other Victory Capital products.

3

 

Includes collective trust funds, wrap program accounts, UMAs, UCITS, private funds and non-U.S. domiciled pooled vehicles.

4

 

The three months ended December 31, 2021 includes acquired assets of $795 million and $19.3 billion associated with the NEC and WestEnd acquisitions, which closed on November 1, 2021 and December 31, 2021, respectively. The WestEnd acquired assets had no economic impact on operations in 2021 and no effect on asset flows, average assets, revenues, or earnings in the fourth-quarter period ended December 31, 2021.

5

 

Includes the transfer in of $547 million of assets associated with the THB acquisition, which closed on March 1, 2021.

 

Information Regarding Non-GAAP Financial Measures

Victory Capital uses non-GAAP financial measures referred to as Adjusted EBITDA and Adjusted Net Income to measure the operating profitability of the Company. These measures eliminate the impact of one-time acquisition, restructuring and integration costs and demonstrate the ongoing operating earnings metrics of the Company. The Company has included these non-GAAP measures to provide investors with the same financial metrics used by management to assess the operating performance of the Company.

Adjusted EBITDA

Adjustments made to GAAP Net Income to calculate Adjusted EBITDA, as applicable, are:

Adjusted Net Income

Adjustments made to GAAP Net Income to calculate Adjusted Net Income, as applicable, are:

Tax Benefit of Goodwill and Acquired Intangible Assets

Due to Victory Capital's acquisitive nature, tax deductions allowed on acquired intangible assets and goodwill provide it with additional significant supplemental economic benefit. The tax benefit of goodwill and intangible assets represent the tax benefits associated with deductions allowed for intangible assets and goodwill generated from prior acquisitions in which the Company received a step-up in basis for tax purposes. Acquired intangible assets and goodwill may be amortized for tax purposes, generally over a 15-year period. The tax benefit from amortization on these assets is included to show the full economic benefit of deductions for all acquired intangible assets with a step-up in tax basis.


These press releases may also interest you

at 01:05
POXEL SA (Euronext : POXEL - FR0012432516), a clinical stage biopharmaceutical company developing innovative treatments for chronic serious diseases with metabolic pathophysiology, including non-alcoholic steatohepatitis (NASH) and rare metabolic...

at 01:00
Jazeera Paints, the leading manufacturer of paints, colors, and construction solutions in the Middle East and North Africa, opened its sixth showroom in Iraq. The new showroom is in Ranya, a city in the Northeast of the Kurdistan Region which has...

at 01:00
Sohu.com Limited ("Sohu" or the "Company"), China's leading online media, video, and game business group, today reported unaudited financial results for the second quarter ended June 30, 2022. Second Quarter Highlights Total revenues were US$195...

at 00:42
We are advised by Microsmallcap.com that journalists and other readers should disregard the news release, US Tax Credit Could Rev Up Electric Vehicle Production In Canada, issued 04-Aug-2022 over PR Newswire. SOURCE Microsmallcap.com

at 00:34
Halper Sadeh LLP, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to:...

at 00:14
Hong Kong Aerospace Technology Group Limited (01725. HK) has been actively preparing for mass production since the beginning of this summer, following the signing of fit-out contracts for the construction of the Satellite Manufacturing Center, and...



News published on 5 may 2022 at 16:45 and distributed by: