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Mar 31, 2020
Virtus Q1 2020 Earnings Report
Virtus Investment Partners' financial performance was mixed, with GAAP results showing a net loss while adjusted non-GAAP measures indicated profitability, influenced by market depreciation and strategic investments.
Key Takeaways
Virtus Investment Partners reported a GAAP net loss attributable to common stockholders of ($4.3) million, or ($0.58) per diluted share, while adjusted non-GAAP net income was $26.5 million, or $3.32 per diluted share. Total AUM decreased to $90.7 billion due to market depreciation, but total sales increased to $7.0 billion driven by higher sales across various product categories. The company actively managed its capital structure, repurchasing shares and reducing gross debt.
GAAP net loss attributable to common stockholders was ($4.3) million, or ($0.58) per diluted share.
Adjusted non-GAAP net income attributable to common stockholders was $26.5 million, or $3.32 per diluted share.
Total assets under management (AUM) decreased to $90.7 billion, primarily due to market depreciation of $16.6 billion.
Total sales increased to $7.0 billion, driven by higher sales in open-end funds, institutional accounts, retail separate accounts, and structured products.
Revenue by Segment
Forward Guidance
This press release contains forward-looking statements based on current expectations, assumptions, and projections, but actual results may differ materially due to various risks and uncertainties, including the COVID-19 pandemic, economic conditions, AUM fluctuations, and regulatory developments. The company does not undertake to update these statements.
Positive Outlook
- Continued commitment to long-term success of investors.
- Access to a variety of investment styles across multiple disciplines.
- Partnership of boutique investment managers.
- Offers products and services through affiliated managers and select subadvisers.
- Focus on providing distinctive investment strategies.
Challenges Ahead
- Ongoing effects of the COVID-19 pandemic and associated global economic disruption.
- Potential reduction in assets under management.
- Possible withdrawal, renegotiation, or termination of investment advisory agreements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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