Victory Capital Reports Record Third-Quarter 2021 Financial Results

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

[{"type":"text","content":"\nThird Quarter 2021 Highlights\n\n\nTotal Assets Under Management (AUM) of $159.9 billion\n\n\nLong-term gross flows of $5.7 billion\n\n\nLong-term net inflows of $0.1 billion\n\n\nGAAP operating margin expands to 43.7%\n\n\nAdjusted EBITDA margin expands to 50.8%1\n\n\nGAAP net income of $1.00 per diluted share\n\n\nAdjusted net income with tax benefit of $1.25 per diluted share1\n\n\nBoard authorizes 13% increase in regular quarterly cash dividend\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 September 30, 2021.\n\n“Adjusted EBITDA margins were greater than 50% for the past five consecutive quarters. Over that same period, we generated sequential growth in revenue and earnings, and set new records for both in the third quarter,” said David Brown, Chairman and Chief Executive Officer. “The third quarter also marked our second consecutive quarter of achieving positive net flows. Additionally during the quarter we announced the launch of our alternative investments platform with the acquisition of New Energy Capital.\n\n“Today, we also disclosed plans to become a leader in the growing SMA market segment with the acquisition of WestEnd Advisors—a fast growing third-party ETF model specialist. Combining WestEnd’s excellent investment performance with the depth and breadth of our established distribution creates a tremendous opportunity to accelerate organic growth and create substantial value.\n\n“We continued to allocate capital to reduce debt in the third quarter, and lowered our net leverage ratio to 1.3x. At the same time, we also increased our cash position to help fund the NEC acquisition, which closed earlier this week. For the WestEnd acquisition, fully committed debt financing is already in place. Additionally, our Board declared another increase in our quarterly cash dividend, which was raised to $0.17 per share.\n\n“Importantly, as always, we continued to focus on our top priority which is generating strong investment performance and serving our clients.”\n\n\n\n1 The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any meas...

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