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Jun 30, 2021
Virtus Q2 2021 Earnings Report
Virtus reported strong financial results, driven by increased revenues and effective cost management.
Key Takeaways
Virtus Investment Partners reported a significant increase in financial performance for Q2 2021. Net income attributable to common stockholders increased by 458% to $63.0 million, and diluted earnings per share rose by 450% to $7.86. Total AUM increased 6% to $178.6 billion.
Earnings per share - diluted increased to $7.86, and as adjusted, earnings per share - diluted reached $9.07.
Total sales amounted to $9.6 billion, with net flows of $1.3 billion.
Total Assets Under Management (AUM) reached $178.6 billion.
Operating income increased 39% to $86.4 million.
Forward Guidance
Virtus expects the Stone Harbor Investment Partners acquisition to be modestly accretive to earnings per share, as adjusted, and to close near year-end.
Positive Outlook
- Acquisition of Stone Harbor Investment Partners expected to close near year-end.
- Transaction expected to be modestly accretive to earnings per share, as adjusted.
- Stone Harbor Investment Partners has $15.3 billion of assets under management as of June 30, 2021.
- Acquisition will be funded with existing financial resources.
- The company reduced gross debt in the quarter by $5.9 million to $193.8 million.
Challenges Ahead
- Closing of the Stone Harbor transaction is subject to customary closing conditions.
- Regulatory approvals are required for the Stone Harbor transaction.
- Approvals by the Stone Harbor fund board and fund shareholders are needed.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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