Victory Capital Reports Very Strong Second-Quarter 2021 Financial Results

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

[{"type":"text","content":"\nSecond Quarter 2021 Highlights\n\n\nTotal Assets Under Management (AUM) of $161.9 billion\n\n\nQuarterly long-term gross flows of $10.0 billion; long-term net inflows of $0.3 billion\n\n\nGAAP operating margin of 42.9% and adjusted EBITDA margin of 50.6%1\n\n\nGAAP net income of $0.93 per diluted share\n\n\nAdjusted net income with tax benefit of $1.18 per diluted share1\n\n\nBoard authorizes 25% increase in regular quarterly cash dividend\n\n\n SAN ANTONIO, Texas--(BUSINESS WIRE)--\nVictory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or “the Company”) today reported financial results for the quarter ended June 30, 2021.\n\n“During the second quarter and first half, we generated excellent investment performance for our clients and very strong financial results for our shareholders,” said David Brown, Chairman and Chief Executive Officer. “More than 70% of our AUM outperformed respective benchmarks for the 3-, 5-, and 10-year periods, and we recorded the fourth consecutive quarter of revenue and earnings growth, as well as adjusted EBITDA margin of greater than 50%.\n\n“Our organic growth also improved quarter-over-quarter for the fourth quarter in a row reflecting healthy investor demand for our investment products. This led to record high gross sales during the second quarter and resulted in positive long-term net flows.\n\n“Cash flow generated from operations remained robust. The cash dividend increase announced today marks the fifth consecutive quarterly increase and reflects our view of the strength of our business. Over the course of the last five quarters, we have tripled the cash dividend payable to shareholders. At the same time, we still allocated the majority of our excess cash flow to reducing debt as we paid down an additional $57 million of outstanding debt in the quarter. This was 14% more than in the first quarter of the year and resulted in our leverage ratio decreasing to 1.4 times at the end of the quarter.\n\n“Our evaluation of acquisition targets continues and, with the strength of our balance sheet, we are financially well positioned to execute on a strategic transaction.\n\n“We continue to make investments in the areas of technology, data, and distribution which are continuing to yield positive results. As always, serving our clients remains our top priority.”\n\n1 The Company reports its fin...

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