Janus Capital Group Inc. Announces Third Quarter 2012 Results

  Janus Capital Group Inc. Announces Third Quarter 2012 Results

Business Wire

DENVER -- October 25, 2012

Janus Capital Group Inc. (“JCG”) (NYSE: JNS) today reported third quarter net
income of $25.1 million, or $0.14 per diluted share, compared with second
quarter 2012 net income of $23.4million, or $0.13 per diluted share and net
income of $27.4 million, or $0.15 per diluted share, in the third quarter
2011. Third quarter 2012 net income included an intangible asset impairment
charge of $0.01 per share related to the redemption of a sub-advised account.
Third quarter 2011 net income included a net charge of $0.06 per share
primarily related to mark-to-market losses on investments.

Flows and Assets Under Management

Average assets under management during the third quarter 2012 were $155.5
billion compared with $155.0 billion during the second quarter 2012 and $155.9
billion during the third quarter 2011.

At September 30, 2012, JCG’s total assets under management were $158.2 billion
compared with $152.4billion at June 30, 2012 and $141.0 billion at September
30, 2011.

The increase in complex-wide assets during the third quarter 2012 primarily
reflects net market appreciation of $7.8 billion offset by long-term net
outflows of $2.0 billion. Fixed income and mathematical equity long-term net
inflows totaled $1.0 billion and $0.3 billion, respectively, while fundamental
equity long-term net outflows totaled $3.3 billion.

Investment Performance

As of September 30, 2012, 42% of complex-wide mutual funds have a 4- or 5-star
Overall Morningstar Rating^TM.^1

As of September 30, 2012, 38%, 26% and 49% of fundamental equity mutual funds
ranked in the top half of their Lipper categories on a one-, three- and
five-year total return basis, respectively.^2

Fixed income mutual funds continue to generate strong long-term relative
investment performance with 54%, 75% and 100% of mutual fund assets ranked in
the top half of their Lipper categories on a one-, three- and five-year total
return basis as of September 30, 2012.^3

Mathematical equity relative investment performance has improved, with 82%,
93% and 75% of strategies surpassing their respective benchmarks, net of fees,
over the one-, three- and five-year periods, respectively, as of September 30,
2012.^4

Financial Discussion

 Financial Highlights                                    
  (dollars in millions, except per share data or as noted)
                 
                                  Three Months Ended
                                  September 30,     June 30,     September 30,
                                  2012              2012         2011
                                                                 
                                                                 
  Average Assets (in              $ 155.5           $ 155.0      $ 155.9
  billions)
  Ending AUM (in billions)        $ 158.2           $ 152.4      $ 141.0
  Revenues                        $ 209.0           $ 206.0      $ 236.9
  Operating Expenses              $ 161.1           $ 153.9      $ 162.7
  Operating Income                $ 47.9            $ 52.1       $ 74.2
  Operating Margin                22.9%             25.3%        31.3%
                                                                 
  Net Income                      $ 25.1            $ 23.4       $ 27.4
                                                                 
  Diluted Earnings per Share      $ 0.14            $ 0.13       $ 0.15
                                                                 

Third quarter 2012 revenues of $209.0 million increased slightly from second
quarter 2012, primarily due to higher average assets under management driven
by market appreciation. Third quarter 2012 operating expenses of $161.1
million increased $7.2million, or 4.7% from second quarter 2012, primarily
from higher variable compensation expenses and long-term incentive
compensation. Additionally, the third quarter 2012 included an intangible
asset impairment of $2.5million related to the redemption of a sub-advised
account.

Capital and Liquidity

At September 30, 2012, JCG had stockholders’ equity of $1.4 billion, cash and
investments of $683.6million and outstanding debt of $542.8 million.

Cash flows from operations during the third quarter 2012 were $75.3 million
compared with $71.1million during the second quarter 2012 and $47.8 million
during the third quarter 2011.

As part of its capital and liquidity management, JCG repurchased 773,300
shares of its common stock at an average price of $8.12 per share and a total
cost of $6.3 million during the third quarter 2012.

On October 23, 2012, JCG’s Board of Directors declared a regular quarterly
cash dividend of $0.06per share. The quarterly dividend will be paid on
November 19, 2012, to stockholders of record at the close of business on
November 5, 2012.

Third Quarter 2012 Earnings Call Information

JCG will discuss its results during a conference call on Thursday, October
25,2012, at 10 a.m. Eastern Daylight Time. The call-in number will be (888)
397-5338. Anyone outside the U.S. or Canada should call (719) 325-2145. The
slides used during the presentation will be available in the investor
relations section of the Janus Capital Group website (http://ir.janus.com)
approximately one hour prior to the call. For those unable to join the
conference call at the scheduled time, an audio replay will be available on
www.janus.com/ir.

About Janus Capital Group Inc.

Janus Capital Group Inc. (“JCG”) is a global investment firm offering
strategies from three individual investment boutiques: Janus Capital
Management LLC (“Janus”), INTECH Investment Management LLC (“INTECH”) and
Perkins Investment Management LLC (“Perkins”). Each manager employs a
research-intensive approach that is distinct within its respective asset
class. This multi-boutique approach enables the firm to provide style-specific
expertise across an array of strategies, including growth, value and
mathematical equities, fixed income and alternatives through one common
distribution platform.

At the end of September 2012, JCG managed $158.2 billion in assets for
shareholders, clients and institutions around the globe. Based in Denver, JCG
also has offices in Frankfurt, The Hague, Paris, London, Milan, Munich,
Zurich, Singapore, Hong Kong, Tokyo, Melbourne, Dubai and Taipei.

^1 For the period ending September 30, 2012, 30%, 38% and 50% of complex-wide
mutual funds had a 4- or 5-star Morningstar rating for the 3-, 5- and 10-year
periods based on risk-adjusted returns for 43, 40 and 28 funds, respectively.
43 funds were included in the analysis for the overall period.

^2 References Lipper relative performance on an asset-weighted basis. For the
10-year period ending September 30, 2012, 79% of the 24 fundamental equity
mutual funds outperformed the majority of their Lipper peers on an
asset-weighted basis. For the 1-, 3-, 5- and 10-year periods ending September
30, 2012, 41%, 40%, 56% and 71% of the 41, 35, 32 and 24fundamental equity
mutual funds outperformed the majority of their Lipper peers based on total
returns.

^3 References Lipper relative performance on an asset-weighted basis. For the
10-year period ending September 30, 2012, 79% of the 4 fixed income mutual
funds outperformed the majority of their Lipper peers on an asset-weighted
basis. For the 1-, 3-, 5- and 10-year periods ending September 30, 2012, 60%,
75%, 100% and 75% of the 5, 4, 4 and 4 fixed income mutual funds outperformed
the majority of their peers based on total returns.

^4 For the period ending September 30, 2012, 25%, 75%, 50% and 40% of the
mathematical equity mutual funds were beating their benchmarks on a 1-, 3-,
5-year and since-fund inception basis. Funds included in the analysis and
their inception dates are: INTECH U.S. Growth Fund – Class S (1/03); INTECH
U.S. Core Fund – Class T (2/03); INTECH U.S. Value Fund – Class I (12/05);
INTECH International Fund – Class I (5/07); INTECH Global Dividend Fund –
Class I (12/11).

                                                          
JANUS CAPITAL GROUP INC.
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data or as noted)
          
                                                                  
                                   Three Months Ended
                                   September        June 30,      September
                                   30,                            30,
                                   2012             2012          2011
Revenues:
    Investment management fees     $  194.1         $ 192.4       $  202.2
    Performance fees                  (20.9  )        (21.9 )        (3.1   )
    Shareowner servicing fees        35.8          35.5         37.8   
    and other
           Total                     209.0         206.0        236.9  
                                                                  
Operating expenses:
    Employee compensation and         70.8            66.6           71.2
    benefits
    Long-term incentive               16.2            15.2           16.4
    compensation
    Marketing and                     5.4             6.1            6.2
    advertising
    Distribution                      32.3            31.4           35.5
    Depreciation and                  9.9             8.0            8.1
    amortization
    General, administrative          26.5          26.6         25.3   
    and occupancy
           Total                     161.1         153.9        162.7  
                                                                  
Operating income                      47.9            52.1           74.2
                                                                  
Interest expense                      (11.1  )        (11.0 )        (13.0  )
Investment gains (losses), net        7.6             (7.0  )        (23.4  )
Other income, net                     0.3             1.8            1.4
Income tax provision                 (17.0  )       (11.2 )       (11.9  )
                                                                  
Net income                            27.7            24.7           27.3
                                                                  
Noncontrolling interests             (2.6   )       (1.3  )       0.1    
                                                                  
Net income attributable to JCG     $  25.1         $ 23.4       $  27.4   
                                                                  
                                                                  
Diluted weighted-average
shares outstanding (in                185.3           185.4          184.0
millions)
                                                                  
                                                                  
Diluted earnings per share
    attributable to JCG common     $  0.14          $ 0.13        $  0.15
    shareholders
                                                                  
Average Assets Under               $  155.5         $ 155.0       $  155.9
Management (in billions)
                                                                  

                                                             
JANUS CAPITAL GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
          
                                              September 30,       December 31,
                                              2012                2011
  Assets
    Cash and cash equivalents                 $ 352.7             $ 360.0
    Investment securities                     330.9               312.0
    Other assets                              169.0               185.1
    Property and equipment, net               33.4                36.9
    Intangible assets and goodwill, net       1,738.4             1,750.0
             Total Assets                     $ 2,624.4           $ 2,644.0
                                                                  
  Liabilities and Stockholders' Equity
    Debt                                      $ 542.8             $ 595.2
    Other liabilities and redeemable          235.0               278.0
    noncontrolling interests
    Deferred income taxes                     435.0               421.7
    Stockholders' equity                      1,411.6             1,349.1
             Total Liabilities and            $ 2,624.4           $ 2,644.0
             Stockholders' Equity
                                                                  

                                                            
UNAUDITED CONDENSED CASH FLOW INFORMATION
(dollars in millions)
                           
                                 Three Months Ended
                                 September 30,     June 30,      September 30,
                                 2012              2012          2011
  Cash provided by (used in):
     Operating activities        $   75.3          $ 71.1        $  47.8
     Investing activities            (13.9  )        6.9            116.0
     Financing activities           (12.8  )       (26.0 )       (103.9  )
             Net change during   $   48.6         $ 52.0       $  59.9    
             period
                                                                 

                                                             
JANUS CAPITAL GROUP INC.
ASSETS & FLOWS BY INVESTMENT DISCIPLINE
(dollars in billions)
                           
                               Three Months Ended
                               September 30,     June 30,         September
                               2012              2012             30, 2011
Growth/Core ^(1)
   Beginning of period         $   52.7          $  56.6          $  58.5
   assets
   Sales                           2.3              2.2              2.9
   Redemptions                    (3.9   )        (3.5   )        (4.7   )
   Net redemptions                 (1.6   )         (1.3   )         (1.8   )
   Market/fund performance        3.1            (2.6   )        (9.4   )
   End of period assets        $   54.2         $  52.7         $  47.3   
                                                                  
Global/International
   Beginning of period         $   17.6          $  21.2          $  26.1
   assets
   Sales                           0.7              1.0              0.8
   Redemptions                    (1.5   )        (1.7   )        (2.2   )
   Net redemptions                 (0.8   )         (0.7   )         (1.4   )
   Market/fund performance        0.7            (2.9   )        (6.1   )
   End of period assets        $   17.5         $  17.6         $  18.6   
                                                                  
Mathematical Equity ^ (2)
   Beginning of period         $   39.2          $  42.7          $  45.5
   assets
   Sales                           2.6              0.6              1.0
   Redemptions                    (2.3   )        (3.1   )        (1.7   )
   Net sales (redemptions)         0.3              (2.5   )         (0.7   )
   Market/fund performance        2.4            (1.0   )        (6.8   )
   End of period assets        $   41.9         $  39.2         $  38.0   
                                                                  
Fixed Income ^(1)
   Beginning of period         $   23.8          $  22.7          $  17.2
   assets
   Sales                           2.8              3.2              3.8
   Redemptions                    (1.8   )        (2.1   )        (1.7   )
   Net sales                       1.0              1.1              2.1
   Market/fund performance        0.8            -              (0.7   )
   End of period assets        $   25.6         $  23.8         $  18.6   
                                                                  
Value ^(3)
   Beginning of period         $   17.7          $  19.3          $  21.0
   assets
   Sales                           1.0              1.0              1.2
   Redemptions                    (1.9   )        (1.5   )        (1.8   )
   Net redemptions                 (0.9   )         (0.5   )         (0.6   )
   Market/fund performance        0.8            (1.1   )        (3.4   )
   End of period assets        $   17.6         $  17.7         $  17.0   
                                                                  
Money Market
   Beginning of period         $   1.4           $  1.5           $  1.5
   assets
   Sales                           0.2              0.1              0.3
   Redemptions                    (0.2   )        (0.2   )        (0.3   )
   Net redemptions                 -                (0.1   )         -
   Market/fund performance        -              -              -      
   End of period assets        $   1.4          $  1.4          $  1.5    
                                                                  
Total Company
   Beginning of period         $   152.4         $  164.0         $  169.8
   assets
   Sales                           9.6              8.1              10.0
   Redemptions                    (11.6  )        (12.1  )        (12.3  )
   Net redemptions                 (2.0   )         (4.0   )         (2.3   )
   Market/fund performance        7.8            (7.6   )        (26.5  )
   End of period assets        $   158.2        $  152.4        $  141.0  
                                                                  
Total Excluding Money
Market
   Beginning of period         $   151.0         $  162.5         $  168.3
   assets
   Sales                           9.4              8.0              9.7
   Redemptions                    (11.4  )        (11.9  )        (12.1  )
   Net redemptions                 (2.0   )         (3.9   )         (2.4   )
   Market/fund performance        7.8            (7.6   )        (26.4  )
   End of period assets        $   156.8        $  151.0        $  139.5  
                                                                  

Notes:
(1)   Growth/core and fixed income assets reflect a 50%/50% split of the
        Janus Balanced Fund between the two categories.
(2)     Represents all assets managed by INTECH Investment Management LLC.
(3)     Represents all assets managed by Perkins Investment Management LLC.
        

Data presented reflects past performance, which is no guarantee of future
results. Due to market volatility, current performance may be higher or lower
than the performance shown. Call 877.33JANUS (52687) or visit
janus.com/advisor/mutual-funds for performance, rankings and ratings current
to the most recent month-end.

Janus Capital Group Inc. (“JCG”) provides investment advisory services through
its primary subsidiaries, Janus Capital ManagementLLC (“Janus”), INTECH
Investment ManagementLLC (“INTECH”) and Perkins Investment ManagementLLC
(“Perkins”).

“Complex-Wide Mutual Funds” means all affiliated mutual funds managed by
Janus, INTECH and Perkins. “Fundamental Equity Mutual Funds” means all mutual
funds managed by Janus or Perkins that invest in equity securities. “Fixed
Income Mutual Funds” means all mutual funds managed by Janus that invest
primarily in fixed income securities. “Mathematical Equity Strategies” means
all discretionary managed accounts (not mutual funds) that are advised or
sub-advised by INTECH.

Mutual fund relative performance analysis shown is for each Fund's initial
share class: Class T, S or I Shares in the Janus retail fund (“JIF”) trust and
the Institutional or Service Shares in the Janus Aspen Series (“JAS”). These
share classes may not be eligible for purchase by all investors. Other share
classes may have higher sales and management fees, which can result in
differences in performance.

Investing involves risk, including the possible loss of principal. The value
of your investment will fluctuate over time and you may gain or lose money. A
fund’s performance may be affected by risks that include those associated with
non-diversification, non-investment grade debt securities,
high-yield/high-risk securities, undervalued or overlooked companies,
investments in specific industries or countries and potential conflicts of
interest. Additional risks to funds may include those associated with
investing in foreign securities, emerging markets, initial public offerings,
real estate investment trusts (“REITs”), derivatives, short sales and
companies with relatively small market capitalizations. Each fund has
different risks. Please see a Janus prospectus for more information about
risk, fund holdings and other details.

Lipper performance on an asset-weighted basis is calculated by takingall
funds and assigningthe assets under management("AUM")in each respective
fundto either the 1st, 2nd, 3rd or 4th quartile bucket based on each fund's
respective Lipper relative rankings. The total AUM of each quartile’s bucket
is then divided bycomplex-wide total AUM to arrive at the respective percent
of AUM in each bucket. Lipper, a wholly-owned subsidiary of Thomson Reuters,
provides independent insight on global collective investments including mutual
funds, retirement funds, hedge funds, fund fees and expenses to the asset
management and media communities. Lipper ranks the performance of mutual funds
within a classification of funds that have similar investment objectives.
Funds not ranked by Lipper are not included in the analysis.

The Overall Morningstar Rating^TM for a fund is derived from a weighted-
average of the performance figures associated with its three-, five- and
ten-year (if applicable) Morningstar Rating^TM metrics. For each fund with at
least a three-year history, Morningstar calculates a Morningstar Rating^TM
based on a Morningstar Risk-Adjusted Return measure that accounts for
variation in a fund’s monthly performance (including the effects of sales
charges, loads, and redemption fees), placing more emphasis on downward
variations and rewarding consistent performance. The top 10% of the funds in
each category receive 5 stars, the next 22.5% receive 4stars, the next 35%
receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive
1star. (Each share class is counted as a fraction of one fund within this
scale and rated separately, which may cause slight variations in the
distribution percentages). The Morningstar Rating^TM may differ among share
classes of a mutual fund as a result of different sales loads and/or expense
structures. It may be based, in part, on the performance of a predecessor
fund. Morningstar does not rank funds with less than a 3-year performance
history.

Please consider the charges, risks, expenses and investment objectives
carefully before investing. For a prospectus containing this and other
information, please call JCG at

(800) 525-3713 or download the file from www.janus.com/info. Read it carefully
before you invest or send money.

Funds distributed by Janus Distributors LLC.

Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Statements preceded by, followed by or that
otherwise include the words "believes," "expects," "anticipates," "intends,"
"projects," "estimates," "plans," "may increase," "may fluctuate," "forecast"
and similar expressions or future or conditional verbs such as "will,"
"should," "would," "may" and "could" are generally forward-looking in nature
and not historical facts. Any statements that refer to expectations or other
characterizations of future events, circumstances or results are
forward-looking statements. These statements are based on the beliefs and
assumptions of Company management based on information currently available to
management.

Various risks, uncertainties, assumptions and factors that could cause future
results to differ materially from those expressed by the forward-looking
statements included in this press release include, but are not limited to,
risks specified in the Company's Annual Report on Form10-K for the year ended
December31, 2011 included under headings such as "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and in other filings and furnishings made by the Company with the
SEC from time to time. In light of these risks, uncertainties, assumptions and
factors, the forward-looking events discussed in this press release may not
occur. Many of these factors are beyond the control of the Company and its
management. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated, or if no
date is stated, as of the date of this press release. Except for the Company's
ongoing obligations to disclose material information under the applicable
securities law and stock exchange rules, the Company undertakes no obligation
to release publicly any revisions to any forward-looking statements, to report
events or to report the occurrence of unanticipated events.

Contact:

Janus Capital Group Inc.
John Groneman, 303-336-7466
 
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