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Sep 30, 2020
Diamond Hill Q3 2020 Earnings Report
Diamond Hill reported results for the third quarter of 2020.
Key Takeaways
Diamond Hill Investment Group reported a decrease in revenue and net income for Q3 2020, primarily due to a shift towards lower fee strategies. Despite these challenges, the company saw net inflows and maintained a strong cash position. The board approved a special cash dividend and the initiation of a quarterly dividend.
Assets under management (AUM) reached $22.3 billion, an increase from $20.6 billion in the previous quarter and $22.2 billion year-over-year.
Net inflows were $98 million, compared to $332 million in the same period of 2019.
Revenue decreased to $31.2 million, down from $34.6 million in Q3 2019, due to a higher mix of assets in lower fee strategies.
Net income attributable to common shareholders was $10.6 million, a decrease from $11.4 million in Q3 2019.
Forward Guidance
Diamond Hill anticipates the continuation of the COVID-19 pandemic to potentially affect future operating results, cash flows, and financial position. However, the full impact remains uncertain due to the unpredictable duration and severity of the pandemic and its economic consequences.
Positive Outlook
- The Company expects to pay an ongoing quarterly dividend of $1.00 per share.
- The board of directors will consider paying an additional special dividend each year.
- The company's approach to capital allocation is designed to ensure sufficient cash to run the business in any market environment.
- The approach to capital allocation will allow the company to invest in new strategies.
- The approach to capital allocation will allow the company to return capital to shareholders.
Challenges Ahead
- The COVID-19 pandemic could continue to affect the company's results of operations.
- The COVID-19 pandemic could continue to affect the company's cash flows.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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