Victory Capital Reports First Quarter 2020 Financial Results

About this update from Victory Capital Holdings, Inc. Class A Common Stock

[{"type":"text","content":"\nFirst Quarter 2020 Highlights\n\n\n\nTotal Asset Under Management (AUM) of $123.8 billion\n\n\nLong-term gross flows of $7.3 billion; total net outflows of $2.9 billion\n\n\nGAAP operating margin of 44.3% and adjusted EBITDA margin of 44.8%1\n\n\nGAAP net income of $0.77 per diluted share, up 285% versus first quarter 2019\n\n\nAdjusted net income with tax benefit of $0.92 per diluted share, up 163% versus first quarter 20191\n\n\nBoard authorizes regular quarterly cash dividend of $0.05 per share\n\n\n SAN ANTONIO--(BUSINESS WIRE)--\nVictory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or “the Company”) today reported financial results for the quarter ended March 31, 2020.\n\n\n“I am pleased to report Victory Capital generated excellent financial results during the first quarter, despite unprecedented challenges presented by the COVID-19 pandemic,” said David Brown, Chairman and Chief Executive Officer. “Advance preparation proved essential for delivering uninterrupted service to clients and providing safe working conditions for employees. Our comprehensive and thoroughly tested business continuity plan has ensured that all investment activities remain unaffected, and we have been energized by our organization’s ability to seamlessly adapt to challenging circumstances.\n\n\n“Our cost structure also adjusted in real time with market fluctuations, proving the resiliency of our next-generation business model and contributing to first-quarter results exceeding expectations.\n\n\n“Four of our investment franchises achieved positive long-term net flows during the quarter, and net outflows from fixed income products held up much better than the industry-wide averages.\n\n\n“In addition, we took opportunistic action on the capital management front. Early in the quarter, we repriced our term loan to reduce the interest rate spread by 75 basis points. Later in the quarter, we promptly responded to falling interest rates and effectively locked in a rate of 3.465% on the majority of our current debt. At the same time, we maintained a disciplined capital allocation strategy and deployed most of our free cash flow to further reduce debt, while returning some capital to shareholders with steady share repurchases and the cash dividend. Since last year’s origination of the term loan on July 1, we have repaid $217 million and lower...

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