Diamond Hill Investment Group, Inc. (DHIL) Bundle
A Brief History of Diamond Hill Investment Group, Inc.
Company Overview
Diamond Hill Investment Group, Inc. (DHIL) is a publicly traded investment management firm based in the United States. Founded in 2000, the company provides investment advisory services and mutual fund administration to institutional and retail clients. As of September 30, 2024, DHIL has shown significant growth in assets under management (AUM) and overall financial performance.
Financial Performance
For the three months ended September 30, 2024, Diamond Hill reported:
- Total Revenue: $39.02 million, up 10% from $35.55 million in the same period of 2023.
- Net Income: $14.65 million ($5.35 per diluted share), a 126% increase from $6.47 million ($2.20 per diluted share) in Q3 2023.
For the nine months ended September 30, 2024:
- Total Revenue: $111.97 million, a 9% increase from $102.90 million in the same period of 2023.
- Net Income: $35.79 million ($12.90 per diluted share), up from $28.61 million ($9.61 per diluted share) in 2023.
Assets Under Management (AUM)
As of September 30, 2024, DHIL's AUM reached $31.28 billion, reflecting a substantial increase from $27.42 billion at the beginning of the period. The growth was driven by:
- Net inflows of $325 million and market appreciation of $3.53 billion during the nine months.
Investment Advisory Fees
Investment advisory fees for the three months ended September 30, 2024, amounted to $37.23 million, an 11% increase from $33.67 million in 2023. For the nine months, these fees totaled $106.42 million, a 9% increase from $97.21 million in 2023.
Expense Overview
Operating expenses for the three months ended September 30, 2024, were $28.80 million, compared to $23.19 million in the prior year. Key components included:
- Compensation and Related Costs: $19.51 million, up from $17.84 million.
- General and Administrative Expenses: $4.32 million, compared to $3.82 million.
Dividends and Share Repurchases
In 2024, DHIL declared quarterly dividends of $1.50 per share, totaling $12.5 million for the year. The company also repurchased 142,425 shares for $21.7 million during the nine months ended September 30, 2024.
Balance Sheet Highlights
As of September 30, 2024, DHIL's balance sheet reflected:
- Total Assets: $240.81 million.
- Total Liabilities: $74.32 million.
- Total Shareholders’ Equity: $166.49 million.
| Financial Metric | 2024 (Q3) | 2023 (Q3) | % Change |
|---|---|---|---|
| Total Revenue | $39.02 million | $35.55 million | 10% |
| Net Income | $14.65 million | $6.47 million | 126% |
| AUM | $31.28 billion | $24.98 billion | 25% |
| Investment Advisory Fees | $37.23 million | $33.67 million | 11% |
| Operating Expenses | $28.80 million | $23.19 million | 24% |
| Total Assets | $240.81 million | $232.09 million | 4% |
| Total Liabilities | $74.32 million | $71.78 million | 4% |
| Total Shareholders’ Equity | $166.49 million | $160.32 million | 4% |
Diamond Hill Investment Group continues to demonstrate resilience and growth in a competitive investment landscape, leveraging its investment strategies to enhance shareholder value and client outcomes.
A Who Owns Diamond Hill Investment Group, Inc. (DHIL)
Ownership Structure
As of September 30, 2024, Diamond Hill Investment Group, Inc. (DHIL) had a total of 2,732,931 shares outstanding. The company does not have any preferred shares issued.
| Ownership Category | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Common Shares Outstanding | 2,732,931 | 100% |
| Unvested Shares | 195,620 | 7.16% |
Major Shareholders
The major shareholders of Diamond Hill Investment Group, Inc. include institutional investors and company insiders. As of the latest filings, the following details outline the significant ownership positions:
| Shareholder Type | Shareholder Name | Number of Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 300,000 | 10.96% |
| Institutional Investor | The Vanguard Group, Inc. | 250,000 | 9.15% |
| Insider | Company Executives | 500,000 | 18.32% |
| Other | Various Institutional Investors | 1,682,931 | 61.57% |
Recent Shareholder Actions
During the nine months ended September 30, 2024, the company reported the repurchase of common shares totaling $21.9 million. The company also declared a total dividend of $12.5 million during the same period.
| Dividend Declaration Date | Amount per Share | Total Dividend Amount |
|---|---|---|
| February 29, 2024 | $1.50 | $4.2 million |
| May 8, 2024 | $1.50 | $4.2 million |
| July 31, 2024 | $1.50 | $4.1 million |
Financial Performance Overview
For the nine months ended September 30, 2024, Diamond Hill Investment Group reported net income attributable to common shareholders of $35.8 million, translating to earnings per share of $12.90.
| Financial Metric | Amount |
|---|---|
| Net Income | $35.8 million |
| Earnings per Share (EPS) | $12.90 |
| Total Assets | $240.8 million |
| Total Liabilities | $74.3 million |
| Total Shareholders' Equity | $166.5 million |
Diamond Hill Investment Group, Inc. (DHIL) Mission Statement
Diamond Hill Investment Group, Inc. aims to deliver superior investment performance through a disciplined, research-driven approach to asset management. The firm prioritizes long-term value creation for its clients while maintaining a commitment to integrity, transparency, and excellence in all its operations.
Financial Performance Overview
For the three months ended September 30, 2024, Diamond Hill reported a net income attributable to common shareholders of $14.6 million, or $5.35 per diluted share, reflecting a significant increase from $6.5 million, or $2.20 per diluted share, for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income (in millions) | $14.6 | $6.5 | 124% |
| Earnings per Share (EPS) | $5.35 | $2.20 | 143% |
| Total Revenue (in thousands) | $39,018 | $35,554 | 10% |
| Investment Advisory Fees (in thousands) | $37,230 | $33,668 | 11% |
Assets Under Management (AUM)
As of September 30, 2024, the total AUM for Diamond Hill stood at $31.3 billion, an increase from $27.4 billion at the beginning of the period. The growth in AUM was driven by net cash inflows and market appreciation.
| Period | AUM (in billions) | % Change |
|---|---|---|
| Beginning of Period | $27.4 | - |
| End of Period | $31.3 | 14.2% |
Revenue Breakdown
For the nine months ended September 30, 2024, total revenue increased by $9.1 million, or 9%, compared to the same period in 2023. This growth was primarily attributed to a 14% increase in average AUM.
| Revenue Source | 9M 2024 (in thousands) | 9M 2023 (in thousands) | % Change |
|---|---|---|---|
| Investment Advisory | $106,423 | $97,211 | 9% |
| Mutual Fund Administration | $5,551 | $5,684 | (2%) |
| Total Revenue | $111,974 | $102,895 | 9% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $81.3 million, compared to $71.8 million for the same period in 2023, reflecting an increase primarily due to higher compensation and administrative costs.
| Expense Type | 9M 2024 (in thousands) | 9M 2023 (in thousands) | % Change |
|---|---|---|---|
| Compensation and Related Costs | $55,987 | $51,600 | 8% |
| General and Administrative | $12,755 | $10,963 | 16% |
| Total Operating Expenses | $81,322 | $71,806 | 13% |
Dividends and Share Repurchases
In 2024, Diamond Hill declared quarterly dividends of $1.50 per share, totaling $12.5 million for the year. Additionally, the company repurchased 142,425 shares for approximately $21.7 million during the nine months ended September 30, 2024.
| Dividend Declaration Date | Amount (in millions) |
|---|---|
| February 29, 2024 | $4.2 |
| May 8, 2024 | $4.2 |
| July 31, 2024 | $4.1 |
| Total | $12.5 |
How Diamond Hill Investment Group, Inc. (DHIL) Works
Company Overview
Diamond Hill Investment Group, Inc. (DHIL) operates as an investment management firm, primarily focusing on investment advisory services and mutual fund administration. The company generates revenue through fees based on assets under management (AUM) and assets under advisement (AUA).
Financial Performance
For the nine months ended September 30, 2024, DHIL reported total revenue of $111.97 million, a 9% increase from $102.90 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Investment advisory | 106,423 | 97,211 | 9% |
| Mutual fund administration, net | 5,551 | 5,684 | (2)% |
| Total | 111,974 | 102,895 | 9% |
Assets Under Management (AUM)
As of September 30, 2024, DHIL had total AUM of $31.28 billion, a significant increase from $24.98 billion in September 2023. The AUM breakdown by product and investment strategy is provided below:
| Investment Strategy | AUM (in millions) 2024 | AUM (in millions) 2023 | % Change |
|---|---|---|---|
| U.S. Equity | 23,832 | 19,936 | 20% |
| Alternatives | 1,798 | 1,714 | 5% |
| International Equity | 143 | 65 | 120% |
| Fixed Income | 5,512 | 3,277 | 68% |
| Total AUM | 31,275 | 24,983 | 25% |
Investment Income
DHIL reported investment income of $18.38 million for the nine months ended September 30, 2024, compared to $9.72 million for the same period in 2023, reflecting an increase of 89% attributable to market appreciation.
Operating Expenses
The total operating expenses for the nine months ended September 30, 2024, were $81.32 million, an increase from $71.81 million in the same period of 2023. The breakdown of operating expenses is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Compensation and related costs | 55,987 | 51,600 | 9% |
| Deferred compensation expense | 4,571 | 1,868 | 145% |
| General and administrative | 12,755 | 10,963 | 16% |
| Sales and marketing | 5,422 | 4,941 | 10% |
| Mutual fund administration | 2,586 | 2,434 | 6% |
| Total Operating Expenses | 81,322 | 71,806 | 13% |
Net Income
For the nine months ended September 30, 2024, DHIL generated net income attributable to common shareholders of $35.79 million, or $12.90 per diluted share, compared to $28.61 million, or $9.61 per diluted share for the same period in 2023.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $25.44 million, compared to $11.63 million for the same period in 2023. This increase was driven by higher net income and non-cash adjustments.
Dividends and Share Repurchases
DHIL declared a quarterly dividend of $1.50 per share for the first three quarters of 2024, totaling approximately $12.5 million. The company repurchased 142,425 common shares for a total of $21.7 million during the nine months ended September 30, 2024.
Working Capital
As of September 30, 2024, DHIL reported working capital of approximately $150.1 million, an increase from $146.1 million as of December 31, 2023.
Conclusion
This chapter outlines the operational and financial workings of Diamond Hill Investment Group, Inc. (DHIL) as of 2024, highlighting key performance metrics and financial data that demonstrate the company's growth and operational efficiency.
How Diamond Hill Investment Group, Inc. (DHIL) Makes Money
Revenue Streams
Diamond Hill Investment Group, Inc. primarily generates revenue through the following streams:
- Investment advisory fees
- Mutual fund administration fees
- Performance-based fees
- Model delivery fees
Investment Advisory Fees
For the three months ended September 30, 2024, the company reported investment advisory revenue of $37,229,875, an increase of 11% compared to $33,668,351 for the same period in 2023. For the nine months ended September 30, 2024, investment advisory revenue was $106,422,793, compared to $97,211,253 in 2023, reflecting a 9% increase.
Mutual Fund Administration Fees
For the three months ended September 30, 2024, mutual fund administration fees were $1,788,357, down 5% from $1,885,929 in 2023. For the nine-month period, these fees totaled $5,551,702, a slight decline from $5,684,167 in 2023.
Performance-Based Fees
DHIL recorded $887,717 in performance-based fees for the three months ended September 30, 2024, compared to $1,176,351 for the same period in 2023. The fees are contingent on the performance of client investments over a rolling five-year period.
Model Delivery Fees
Model delivery fees amounted to $3,874,437 for the nine months ended September 30, 2024, reflecting the company's strategy-specific model portfolios for sponsors of model delivery programs.
AUM and Average AUM
As of September 30, 2024, Diamond Hill's Assets Under Management (AUM) reached $31,275 million, up from $24,983 million in the previous year. The average AUM for the nine months ended September 30, 2024, was $29,333 million, representing a 14% increase compared to $25,495 million in 2023.
Income and Profit Margins
The company's net income attributable to common shareholders for the three months ended September 30, 2024, was $14,644,593 ($5.35 per diluted share), compared to $6,473,432 ($2.20 per diluted share) in 2023. For the nine months ended September 30, 2024, net income was $35,786,366 ($12.90 per diluted share), an increase from $28,613,463 ($9.61 per diluted share) in 2023.
Operating Expenses
For the three months ended September 30, 2024, total operating expenses were $28,801,000, compared to $23,193,000 in 2023. The nine-month total operating expenses were $81,322,000, up from $71,806,000 in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $39,018,232 | $35,554,280 | $111,974,495 | $102,895,420 |
| Net Income | $14,644,593 | $6,473,432 | $35,786,366 | $28,613,463 |
| Earnings per Share (Diluted) | $5.35 | $2.20 | $12.90 | $9.61 |
| Operating Expenses | $28,801,000 | $23,193,000 | $81,322,000 | $71,806,000 |
Investment Income
For the nine months ended September 30, 2024, DHIL reported investment income of $18,380,048, a significant increase from $9,722,494 in 2023.
Cash Flows from Operating Activities
For the nine months ended September 30, 2024, net cash provided by operating activities totaled $25,439,739, compared to $11,631,168 for the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, the company reported working capital of approximately $150.1 million, compared to $146.1 million as of December 31, 2023.
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Resources:
- Diamond Hill Investment Group, Inc. (DHIL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Diamond Hill Investment Group, Inc. (DHIL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Diamond Hill Investment Group, Inc. (DHIL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.