Diamond Hill Investment Group, Inc. Reports 2013 Financial Results PR Newswire COLUMBUS, Ohio, Feb. 28, 2014 COLUMBUS, Ohio, Feb.28, 2014 /PRNewswire/ --Diamond Hill Investment Group, Inc. (the "Company," "we," "us") (NASDAQ: DHIL) today reported results for the year ended December31, 2013. We plan to file our 2013 Form 10-K on Friday, March 7, 2014. Summary of Results of Operations (in thousands, except per share figures) Three Months Ended Year Ended December 31, December 31, 2013 2012 % Change 2013 2012 % Change Revenues: Investment $ 19,180 $ 14,689 31% $ 69,967 $ 57,783 21% advisory Mutual fund 3,144 2,293 37% 11,465 8,874 29% administration, net Total revenue 22,324 16,982 31% 81,432 66,657 22% Operating expenses 12,890 10,435 24% 50,750 42,229 20% Net operating income 9,434 6,547 44% 30,682 24,428 26% Investment 1,482 229 4,950 1,654 income Income before taxes 10,916 6,776 61% 35,632 26,082 37% Net income $ 6,750 $ 4,825 40% $ 22,155 $ 16,931 31% Earnings per share - $ 2.10 $ 1.53 37% $ 6.94 $ 5.44 28% diluted Operating profit 42% 39% 38% 37% margin Selected Balance Sheet Data (in thousands, except per share figures) December 31, 2013 2012 Assets Cash equivalents and $ 51,833 $ 24,375 investment portfolio Accounts receivable 13,002 10,439 Deferred taxes 8,063 2,452 Other assets 2,455 3,970 Total assets $ 75,353 $ 41,236 Liabilities 30,410 19,500 Total shareholders' equity 44,943 21,736 Total liabilities and $ 75,353 $ 41,236 shareholders' equity Book value per share(a) $ 13.80 $ 6.86 Outstanding shares 3,257 3,170 (a) - A $3 per share special dividend was paid in December 2013 and an $8 per share special dividend was paid in December 2012. Change in Assets Under Management For the Year Ended December 31, (in millions) 2013 2012 AUM at beginning of the year $ 9,429 $ 8,671 Net cash inflows (outflows) proprietary funds 713 429 sub-advised funds (758) (149) institutional accounts (263) (499) (308) (219) Net market appreciation and 3,065 977 income Increase during the year 2,757 758 AUM at end of the year $ 12,186 $ 9,429 About Diamond Hill: We are an independent investment management firm with significant employee ownership and $12 billion in assets under management as of January 31, 2014. We provide investment management services to institutions and individuals throughmutual funds, institutional separate accounts, and private investment funds. Our entire investment team shares the same intrinsic value investment philosophy focused on absolute returns, and our interests are firmly aligned with our clients through significant investment in its strategies. For more information visit www.diamond-hill.com. Use of Supplemental Data as Non-GAAP Performance Measure Net Operating Income After Tax As supplemental information, we provide performance measures that are based on methodologies other than generally accepted accounting principles ("non-GAAP") for "Net Operating Income After Tax" that management uses as benchmarks in evaluating and comparing the period-to-period operating performance of the Company and subsidiaries. The Company defines "net operating income after tax" as our net operating income less income tax provision excluding investment income and the tax impact related to the investment income. We believe that "net operating income after tax" provides a good representation of our operating performance, as it excludes the impact of investment income on financial results. The amount of the investment portfolio and market fluctuations on the investments may change significantly from one period to another, which can distort the underlying earnings of a company. We also believe "net operating income after tax" is an important metric in estimating the value of an asset management business. This non-GAAP measure is provided in addition to net income and net operating income and is not a substitute for net income or net operating income and may not be comparable to non-GAAP performance measures of other companies. Year Ended December 31, (in thousands, except per share data) 2013 2012 Net operating income, GAAP basis $ 30,682 $ 24,428 Non-GAAP adjustments: Tax provision excluding impact of investment 11,605 8,571 income Net operating income after tax, non-GAAP basis $ 19,077 $ 15,857 Net operating income after tax per diluted share, $ 5.97 $ 5.10 non-GAAP basis The tax provision excluding impact of investment income is calculated by applying the tax rate calculated from the income statement to net operating income. Our management does not promote that investors consider the above non-GAAP financial measures alone, or as a substitute for, financial information prepared in accordance with GAAP. Throughout this press release, we may make forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to such matters as anticipated operating results, prospects and levels of assets under management, technological developments, economic trends (including interest rates and market volatility), expected transactions and similar matters. The words "believe," "expect," "anticipate," "estimate," "should," "hope," "seek," "plan," "intend" and similar expressions identify forward-looking statements that speak only as of the date thereof. While we believe that the assumptions underlying our forward-looking statements are reasonable, investors are cautioned that any of the assumptions could prove to be inaccurate and accordingly, our actual results and experiences could differ materially from the anticipated results or other expectations expressed in our forward-looking statements. Factors that could cause such actual results or experiences to differ from results discussed in the forward-looking statements include, but are not limited to: the adverse effect from a decline in the securities markets; a decline in the performance of our products; changes in interest rates; changes in national and local economic and political conditions, including the effects of implementation of the Budget Control Act of 2011, the American Taxpayer Relief Act of 2012, the Jumpstart Our Business Startups Act of 2012 and the continuing economic uncertainty in various parts of the world; changes in government policy and regulation, including monetary policy; changes in our ability to attract or retain key employees; unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations; and other risks identified from time-to-time in other public documents on file with the U. S. Securities and Exchange Commission. SOURCE Diamond Hill Investment Group, Inc. Website: http://www.diamond-hill.com Contact: Investor: James F. Laird-Chief Financial Officer, 614-255-3353 (firstname.lastname@example.org)
Diamond Hill Investment Group, Inc. Reports 2013 Financial Results
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