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Victory Capital Posts Record Third Quarter 2019 Financial Results
Second Consecutive Quarter of Positive Net Flows and Positive Net Flows Year-to-Date
Third Quarter 2019 Highlights
- Total AUM of $145.8 billion
- Long-term net inflows of $726 million; long-term gross flows of $7.5 billion
- GAAP operating margin of 25.9%; GAAP earnings of $0.35 per diluted share
- Adjusted net income with tax benefit per diluted share of $0.911
- Adjusted EBITDA margin of 44.8%1
- Debt reduced by $63 million
- Board authorizes regular quarterly cash dividend of $0.05 per share
SAN ANTONIO--(BUSINESS WIRE)--November 4, 2019--Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or “the Company”) today reported financial results for the three and nine months ended September 30, 2019.
“I’m pleased to report that Victory Capital continued to deliver excellent financial results in the third quarter of 2019, our first quarter post the acquisition of USAA Asset Management Company,” said David Brown, Chairman and Chief Executive Officer. “Revenue and adjusted net income more than doubled sequentially and adjusted EBITDA margin expanded to a record 44.8%. This marks our third consecutive quarter of meaningful margin expansion, which demonstrates the power of our integrated business model.
“Total AUM grew to $145.8 billion as of September 30, 2019. Long-term net inflows were positive for the second consecutive quarter at $726 million and are $3.3 billion year to date. Long-term gross flows were $7.5 billion for the quarter.
“Our integration efforts following the close of the USAA Asset Management acquisition continue to progress well, and we expect to achieve our previously disclosed cost synergies ahead of schedule. The direct channel for USAA members was reopened on July 1, 2019, and our call center, which is staffed largely by former USAA employees, is actively serving members’ investment needs.
“We paid down $63 million of debt during the quarter. Subsequent to quarter-end, we paid down an additional $40 million, bringing our total debt reduction since July 1, 2019, to $103 million. Additionally, today, we declared a second consecutive quarterly cash dividend of $0.05 per share.
“Looking ahead, our long-term corporate vision remains focused on leveraging our full suite of strategies to drive organic growth while maintaining the capital flexibility to pursue strategic acquisitions that we believe will augment our existing business. As in the past, serving the needs of our clients remains our top priority.”
1 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 see 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 following information was filed by Victory Capital Holdings, Inc. (VCTR) on Monday, November 4, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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