Victory Capital Reports Strong Second Quarter Results and Record Earnings Per Share

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

[{"type":"text","content":"\nSecond-Quarter Highlights\n\n\n\nTotal Client Assets of $173.8 billion\n\n\n\nLong-term gross flows of $5.8 billion\n\n\n\nLong-term net flows of ($1.7) billion\n\n\n\nGAAP operating margin of 50.4%\n\n\n\nGAAP net income per diluted share of $1.12\n\n\n\nAdjusted EBITDA margin of 53.0%\n\n\n\nAdjusted net income with tax benefit per diluted share of $1.31\n\n\n\nBoard authorizes an 11% increase in regular quarterly cash dividend to $0.41\n\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 June 30, 2024.\n\n\n“Our most significant development during the first half of 2024 was forging the long-term agreement to become strategic partners with Amundi,” said David Brown, Chairman and Chief Executive Officer. “Upon closing, we will be combining Amundi’s US business into Victory Capital and have reciprocal global exclusive 15-year distribution agreements. This transaction is extremely compelling with multiple strategic elements that will make our Company even better. It is also financially attractive with anticipated double-digit earnings accretion within a year, and it will immediately provide us with greater financial flexibility resulting from the strengthening of our balance sheet.\n\n\n“During the second quarter, our business continued to perform exceptionally well. We generated the highest adjusted earnings per diluted share with tax benefit, adjusted EBITDA, and adjusted EBITDA margin, for any quarter in our history.\n\n\n“Our Investment Franchises continued to deliver excellent investment performance for our clients. Through the end of June, the percentage of our AUM outperforming benchmarks over the respective 3-, 5-, and 10-year periods was 60%, 77%, and 79%. In addition, 68% of our AUM in mutual funds and ETFs was rated four or five stars overall by Morningstar.\n\n\n“As a result of our strong cash flow generation, the amount of cash on our balance sheet increased by 49% during the quarter, reaching $119 million at the end of June. This combined with the higher earnings resulted in our net debt to EBITDA ratio declining to 1.9X. In addition, the Board authorized another 11% increase in our quarterly cash dividend from $0.37 to $0.41, which will be paid in September.\n\n\n“As always, we continue to ...

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