Virtus Investment Q2 2024 Results – 5% Revenue Increase, 42% Net Income Decrease

By Tamara Parker • Friday, July 26 08:07 • Permanent Link

Virtus Investment Partners, Inc. has released its financial results for the second quarter of 2024, revealing several key metrics and changes compared to the same period in 2023 and the first quarter of 2024.

In terms of U.S. GAAP financial measures, the company reported a 5% increase in revenues, reaching $224.4 million compared to $213.5 million in the prior year. Operating income stood at $44.2 million, marking a 13% increase from the previous quarter. However, net income attributable to Virtus Investment Partners, Inc. experienced a significant decrease, falling 42% to $17.6 million, and earnings per share * diluted dropped by 41% to $2.43.

Non-GAAP financial measures showed a 7% increase in adjusted revenues, reaching $203.0 million, and a 7% increase in adjusted operating income, amounting to $66.0 million. Adjusted net income attributable to Virtus Investment Partners, Inc. saw an 18% rise to $47.3 million, with earnings per share * diluted, as adjusted, increasing by 20% to $6.53.

Assets under management decreased by 3%, reaching $173.6 billion at June 30, 2024, due to market performance and net outflows in U.S. retail funds and institutional accounts, partially offset by positive net flows in retail separate accounts, exchange-traded funds (ETFs), and global funds. Total sales of $6.1 billion declined from $7.6 billion in the first quarter, primarily due to lower sales of U.S. retail funds and institutional accounts. Net flows amounted to ($2.6) billion, compared with ($1.2) billion in the first quarter.

The company's balance sheet items also witnessed changes, with cash and cash equivalents decreasing by 9% to $183.0 million, and gross debt decreasing by 16% to $252.4 million.

Furthermore, the weighted average shares outstanding * diluted decreased by 2% compared to the same period last year, standing at 7.242 million shares.

As a result of these announcements, the company's shares have moved 3.5% on the market, and are now trading at a price of $245.79. For more information, read the company's full 8-K submission here.

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