Janus Capital Group Inc. Announces Fourth Quarter 2012 Results

  Janus Capital Group Inc. Announces Fourth Quarter 2012 Results

Business Wire

DENVER -- January 24, 2013

Janus Capital Group Inc. (“JCG”) (NYSE: JNS) today reported fourth quarter net
income of $31.2 million, or $0.17 per diluted share, compared with third
quarter 2012 net income of $25.1million, or $0.14 per diluted share, and net
income of $35.7 million, or $0.19 per diluted share, in the fourth quarter
2011.

Fourth quarter 2012 net income included an intangible asset impairment charge
of $0.02 per share related to the redemption of a sub-advised account. Third
quarter 2012 net income included an intangible asset impairment charge of
$0.01 per share also related to the redemption of a sub-advised account.

For the full-year 2012, net income totaled $102.3 million, or $0.55 per
diluted share, compared with net income of $142.9 million, or $0.78 per
diluted share, for 2011.

Flows and Assets Under Management

Average assets under management during the fourth quarter 2012 were $155.6
billion compared with $155.5 billion during the third quarter 2012 and $149.2
billion during the fourth quarter 2011.

At December 31, 2012, JCG’s total assets under management were $156.8 billion
compared with $158.2billion at September 30, 2012 and $148.2 billion at
December 31, 2011.

The decrease in complex-wide assets during the fourth quarter 2012 primarily
reflects long-term net outflows of $3.6 billion offset by net market
appreciation of $2.1 billion. Fundamental equity and mathematical equity
long-term net outflows totaled $2.7 billion and $1.6 billion, respectively,
while fixed income long-term net inflows totaled $0.7 billion. The increase in
year-over-year assets under management was the result of $20.6 billion of net
market appreciation offset by $12.0 billion of long-term net outflows.

Investment Performance

As of December 31, 2012, 50% of complex-wide mutual funds had a 4- or 5-star
Overall Morningstar Rating^TM.^1

As of December 31, 2012, 68%, 20% and 48% of fundamental equity mutual fund
assets ranked in the top half of their Morningstar 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 Morningstar categories on a one-, three- and five-year
total return basis as of December 31, 2012.^3

Mathematical equity relative investment performance has continued to be
strong, with 63%, 87% and 67% of strategies surpassing their respective
benchmarks, net of fees, over the one-, three- and five-year periods,
respectively, as of December 31, 2012.^4

Financial Discussion

Financial Highlights
(dollars in millions, except per share data or as noted)
                                                             
                    Three Months Ended             Year Ended
                    December 31,   September 30,   December 31,   December 31,
                    2012           2012            2012           2011
                                                                  
Average Assets      $  155.6       $   155.5       $  156.3       $  162.3
(in billions)
Ending AUM (in      $  156.8       $   158.2       $  156.8       $  148.2
billions)
Revenues            $  216.6       $   209.0       $  850.0       $  981.9
Operating           $  158.6       $   161.1       $  635.5       $  670.1
Expenses
Operating Income    $  58.0        $   47.9        $  214.5       $  311.8
Operating Margin       26.8   %        22.9   %       25.2   %       31.8   %
                                                                  
Net Income
Attributable to     $  31.2        $   25.1        $  102.3       $  142.9
JCG
                                                                  
Diluted Earnings   $  0.17      $   0.14      $  0.55      $  0.78   
per Share

Fourth quarter 2012 revenues of $216.6 million increased from third quarter
2012, primarily due to higher private account performance fees. Fourth quarter
2012 operating expenses of $158.6 million decreased $2.5million, or 1.6%,
from third quarter 2012, primarily due to lower compensation expenses
partially offset by an intangible asset impairment of $5.0 million and an
increase in discretionary expenses.

Capital and Liquidity

At December 31, 2012, JCG had stockholders’ equity of $1.4 billion, cash and
investments of $725.6million and outstanding debt of $545.1 million.

Cash flows from operations during the fourth quarter 2012 were $67.4 million
compared with $75.3million during the third quarter 2012 and $74.3 million
during the fourth quarter 2011.

As part of its capital and liquidity management, JCG repurchased 293,100
shares of its common stock at an average price of $8.84 per share and a total
cost of $2.6 million during the fourth quarter 2012.

On December 10, 2012, JCG’s Board of Directors declared a regular quarterly
cash dividend of $0.06per share. The quarterly dividend was paid on December
31, 2012, to stockholders of record at the close of business on December 21,
2012. This accelerated quarterly cash dividend was intended to replace the
quarterly cash dividend which would have been declared in January 2013.

Fourth Quarter 2012 Earnings Call Information

JCG will discuss its results during a conference call on Thursday, January
24,2013, at 10 a.m. Eastern Standard 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 December 2012, JCG managed $156.8 billion in assets for
shareholders, clients and institutions around the globe. Based in Denver, JCG
also has offices in Frankfurt, Amsterdam, Paris, London, Milan, Munich,
Zurich, Singapore, Hong Kong, Tokyo, Melbourne, Dubai and Taipei.


^1 For the period ending December 31, 2012, 40%, 43% and 55% 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 42, 40 and 29 funds, respectively.
42 funds were included in the analysis for the Overall period.

^2 References Morningstar relative performance on an asset-weighted basis. For
the 10-year period ending December 31, 2012, 80% of the fundamental equity
mutual fund assets outperformed the majority of their Morningstar peers based
on total returns. For the 1-, 3-, 5- and 10-year periods ending December 31,
2012, 66%, 38%, 59% and 76% of the 41, 34, 32 and 25 fundamental equity mutual
funds outperformed the majority of their Morningstar peers based on total
returns.

^3 References Morningstar relative performance on an asset-weighted basis. For
the 10-year period ending December 31, 2012, 80% of the fixed income mutual
fund assets outperformed the majority of their Morningstar peers based on
total returns. For the 1-, 3-, 5- and 10-year periods ending December 31,
2012, 50%, 75%, 100% and 75% of the 6, 4, 4 and 4 fixed income mutual funds
outperformed the majority of their Morningstar peers based on total returns.

^4 For the period ending December 31, 2012, 0%, 75%, 50% and 33% 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) and Janus INTECH U.S. Low Volatility Portfolio – Service
Shares (9/12).


JANUS CAPITAL GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
                                                               
                    Three Months Ended                   Year Ended
                    December     September   December    December    December
                    31,          30,         31,         31,         31,
                    2012         2012        2011        2012        2011
Revenues:
Investment          $  193.8     $ 194.1     $ 190.9     $ 782.3     $ 844.3
management fees
Performance fees       (13.6 )     (20.9 )     (9.2  )     (75.4 )     (11.7 )
Shareowner
servicing fees        36.4      35.8      33.9      143.1     149.3 
and other
Total                 216.6     209.0     215.6     850.0     981.9 
                                                                     
Operating
expenses:
Employee
compensation and       65.1        70.8        62.1        274.5       294.9
benefits
Long-term
incentive              15.7        16.2        10.7        66.7        63.0
compensation
Marketing and          7.3         5.4         7.5         23.6        28.0
advertising
Distribution           30.8        32.3        30.5        126.8       141.7
Depreciation and       12.5        9.9         7.8         38.5        33.3
amortization
General,
administrative        27.2      26.5      26.4      105.4     109.2 
and occupancy
Total                 158.6     161.1     145.0     635.5     670.1 
                                                                     
Operating income       58.0        47.9        70.6        214.5       311.8
                                                                     
Interest expense       (11.1 )     (11.1 )     (11.7 )     (45.0 )     (51.0 )
Investment gains       4.2         7.6         1.2         11.1        (21.9 )
(losses), net
Other income, net      1.0         0.3         2.0         3.2         3.8
Loss on early
extinguishment of      -           -           -           (7.2  )     (9.9  )
debt
Income tax            (19.3 )    (17.0 )    (22.4 )    (64.7 )    (79.4 )
provision
                                                                     
Net income             32.8        27.7        39.7        111.9       153.4
                                                                     
Noncontrolling        (1.6  )    (2.6  )    (4.0  )    (9.6  )    (10.5 )
interests
                                                                     
Net income
attributable to     $  31.2     $ 25.1     $ 35.7     $ 102.3    $ 142.9 
JCG
                                                                     
Diluted
weighted-average
shares                 185.7       185.3       184.0       185.1       184.2
outstanding (in
millions)
                                                                     
Diluted earnings
per share
attributable to     $  0.17      $ 0.14      $ 0.19      $ 0.55      $ 0.78
JCG common
shareholders
                                                                     
Average assets
under management    $  155.6     $ 155.5     $ 149.2     $ 156.3     $ 162.3
(in billions)
                                                                             

JANUS CAPITAL GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
                                                         
                                             December 31,   December 31,
                                             2012           2011
Assets
Cash and cash equivalents                    $   387.0      $   360.0
Investment securities                            338.6          312.0
Other assets                                     171.0          185.1
Property and equipment, net                      33.3           36.9
Intangibles and goodwill, net                   1,730.5       1,750.0
Total Assets                                 $   2,660.4    $   2,644.0
                                                            
Liabilities and Stockholders' Equity
Debt                                         $   545.1      $   595.2
Other liabilities                                244.2          278.0
Deferred income taxes                            436.0          421.7
Stockholders' equity                            1,435.1       1,349.1
Total Liabilities and Stockholders' Equity   $   2,660.4    $   2,644.0
                                                                

UNAUDITED CONDENSED CONSOLIDATED
CASH FLOW INFORMATION
(dollars in millions)
                                                              
              Three Months Ended                       Year Ended
              December 31,   September     December    December     December
                             30,           31,         31,          31,
              2012           2012          2011        2012         2011
Cash
provided by
(used in)
Operating     $  67.4        $  75.3       $ 74.3      $ 208.9      $ 224.6
activities
Investing        (6.9   )       (13.9  )     (33.1 )     (38.2  )     21.7
activities
Financing       (26.2  )      (12.8  )    (10.6 )    (143.7 )    (259.5 )
activities
Net change
during        $  34.3       $  48.6      $ 30.6     $ 27.0      $ (13.2  )
period
                                                                             

JANUS CAPITAL GROUP INC.
ASSETS & FLOWS BY INVESTMENT DISCIPLINE
(dollars in billions)
                                                                 
                       Three Months Ended                  Year Ended
                       December    September   December    December    December
                       31, 2012    30, 2012    31, 2011    31, 2012    31, 2011
Growth/Core ^ (1)
Beginning of period    $ 54.2      $ 52.7      $ 47.3      $ 49.7      $ 60.9
assets
Sales                    2.4         2.3         1.6         9.9         10.7
Redemptions             (3.5  )    (3.9  )    (3.4  )    (14.8 )    (18.7 )
Net redemptions          (1.1  )     (1.6  )     (1.8  )     (4.9  )     (8.0  )
Market / fund           0.7       3.1       4.2       9.0       (3.2  )
performance
End of period assets   $ 53.8     $ 54.2     $ 49.7     $ 53.8     $ 49.7  
                                                                       
Global/International
Beginning of period    $ 17.5      $ 17.6      $ 18.6      $ 18.4      $ 27.9
assets
Sales                    0.9         0.7         0.9         3.6         4.8
Redemptions             (1.7  )    (1.5  )    (1.6  )    (6.4  )    (7.7  )
Net redemptions          (0.8  )     (0.8  )     (0.7  )     (2.8  )     (2.9  )
Market / fund           1.2       0.7       0.5       2.3       (6.6  )
performance
End of period assets   $ 17.9     $ 17.5     $ 18.4     $ 17.9     $ 18.4  
                                                                       
Mathematical Equity
^ (2)
Beginning of period    $ 41.9      $ 39.2      $ 38.0      $ 39.9      $ 44.1
assets
Sales                    1.2         2.6         0.7         4.9         4.5
Redemptions             (2.8  )    (2.3  )    (2.9  )    (10.5 )    (9.5  )
Net sales                (1.6  )     0.3         (2.2  )     (5.6  )     (5.0  )
(redemptions)
Market / fund           (0.1  )    2.4       4.1       5.9       0.8   
performance
End of period assets   $ 40.2     $ 41.9     $ 39.9     $ 40.2     $ 39.9  
                                                                       
Fixed Income ^(1)
Beginning of period    $ 25.6      $ 23.8      $ 18.6      $ 20.6      $ 15.3
assets
Sales                    2.6         2.8         2.9         11.6        10.7
Redemptions             (1.9  )    (1.8  )    (1.5  )    (7.6  )    (5.8  )
Net sales                0.7         1.0         1.4         4.0         4.9
Market / fund           0.1       0.8       0.6       1.8       0.4   
performance
End of period assets   $ 26.4     $ 25.6     $ 20.6     $ 26.4     $ 20.6  
                                                                       
Value ^(3)
Beginning of period    $ 17.6      $ 17.7      $ 17.0      $ 18.1      $ 19.8
assets
Sales                    0.8         1.0         0.9         4.0         5.3
Redemptions             (1.6  )    (1.9  )    (1.6  )    (6.7  )    (6.5  )
Net redemptions          (0.8  )     (0.9  )     (0.7  )     (2.7  )     (1.2  )
Market / fund           0.2       0.8       1.8       1.6       (0.5  )
performance
End of period assets   $ 17.0     $ 17.6     $ 18.1     $ 17.0     $ 18.1  
                                                                       
Money Market
Beginning of period    $ 1.4       $ 1.4       $ 1.5       $ 1.5       $ 1.5
assets
Sales                    0.3         0.2         0.2         0.8         1.0
Redemptions             (0.2  )    (0.2  )    (0.2  )    (0.8  )    (1.0  )
Net sales                0.1         -           -           -           -
Market / fund           -         -         -         -         -     
performance
End of period assets   $ 1.5      $ 1.4      $ 1.5      $ 1.5      $ 1.5   
                                                                       
Total Company
Beginning of period    $ 158.2     $ 152.4     $ 141.0     $ 148.2     $ 169.5
assets
Sales                    8.2         9.6         7.2         34.8        37.0
Redemptions             (11.7 )    (11.6 )    (11.2 )    (46.8 )    (49.2 )
Net redemptions          (3.5  )     (2.0  )     (4.0  )     (12.0 )     (12.2 )
Market / fund           2.1       7.8       11.2      20.6      (9.1  )
performance
End of period assets   $ 156.8    $ 158.2    $ 148.2    $ 156.8    $ 148.2 
                                                                       
Total Excluding
Money Market
Beginning of period    $ 156.8     $ 151.0     $ 139.5     $ 146.7     $ 168.0
assets
Sales                    7.9         9.4         7.0         34.0        36.0
Redemptions             (11.5 )    (11.4 )    (11.0 )    (46.0 )    (48.2 )
Net redemptions          (3.6  )     (2.0  )     (4.0  )     (12.0 )     (12.2 )
Market / fund           2.1       7.8       11.2      20.6      (9.1  )
performance
End of period assets   $ 155.3    $ 156.8    $ 146.7    $ 155.3    $ 146.7 
                                                                       
Each line has been rounded on the schedule individually to increase the accuracy
of the amounts presented.

Notes:
(1)  Growth/core and fixed income assets reflect a 50%/50% split of the Janus
      Balanced Fund between the two categories.
      Represents all assets managed by INTECH Investment Management LLC.
(2)   Year-to-date 2011 gross sales and redemptions exclude the transfer of
      $1.1 billion within mathematical equity strategies in the first quarter
      2011.
(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. INTECH strategies included in the analysis are those
with at least a one-year track record.

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.

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 three-year performance
history.

The Morningstar percentile ranking is based on the fund’s total-return
percentile rank relative to all funds that have the same category for the same
time period. The highest (or most favorable) percentile rank is 1%, and the
lowest (or least favorable) percentile rank is 100%. Morningstar total-return
includes both income and capital gains or losses and is not adjusted for sales
charges. The top-performing funds in a category will always receive a rank of
1.

Morningstar 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 Morningstar relative ranking. 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.

Please consider the charges, risks, expenses and investment objectives
carefully before investing. For a prospectus containing this and other
information, please call Janus 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
 
Press spacebar to pause and continue. Press esc to stop.