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Janus Capital Group Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 26, 2011 04:22PM

Janus Capital Group Inc. (JNS) filed Quarterly Report for the period ended 2011-09-30. Janus Capital Group Inc has a market cap of $1.28 billion; its shares were traded at around $6.88 with a P/E ratio of 8 and P/S ratio of 1.3. The dividend yield of Janus Capital Group Inc stocks is 2.9%.



Highlight of Business Operations:

Net investment losses totaling $23.4 million for the three months ended September 30, 2011 include a $12.8 million loss from mark-to-market adjustments on the mutual fund share award economic hedge and $21.6 million of mark-to-market losses on trading securities. The mark-to-market losses on trading securities were partially offset by $13.1 million of gains generated by an economic hedging strategy implemented in late 2008, covering the majority of seed capital. The hedging strategy utilizes futures contracts to mitigate a portion of the earnings volatility created by the mark-to-market accounting of seed capital investments. JCG may modify or discontinue the hedging strategy at any time.

JCG’s income tax provision for the three months ended September 30, 2011 and 2010 includes the reversal of $4.0 million and $14.1 million of income tax contingency reserves, respectively, as a result of the expiration of statutes of limitations, creating a net tax benefit of $2.5 million and $9.0 million, respectively.

Net investment losses totaling $23.1 million for the nine months ended September 30, 2011 include an $11.3 million loss from mark-to-market adjustments on the mutual fund share award economic hedge and $19.1 million of mark-to-market losses on trading securities. The mark-to-market losses on trading securities were partially offset by $8.4 million of gains generated by an economic hedging strategy implemented in late 2008, covering the majority of seed capital. The hedging strategy utilizes futures contracts to mitigate a portion of the earnings volatility created by the mark-to-market accounting of seed capital investments. JCG may modify or discontinue the hedging strategy at any time.

Cash provided by investing activities for the nine months ended September 30, 2011, includes purchases, sales and maturities of investments as well as economic hedging and vesting of mutual fund share awards. Purchases of investments totaling $158.2 million include $93.0 million from the seeding of new investment products in the second quarter 2011. Sales and maturities of investments totaling $218.0 million include the maturity of $93.1 million of U.S. Treasury notes, which were purchased in the second quarter 2010 and matured in August 2011, and proceeds of $32.6 million from the disposal of structured investment vehicle securities in the first quarter 2011. Cash used for investing activities for the comparable prior year period primarily represents $121.7 million for the net purchase of investments.

Cash used for financing activities for the nine months ended September 30, 2011, primarily represents the repayment of $213.1 million principal amount of long-term debt for $223.0 million, $12.1 million of distributions to noncontrolling interests and $18.6 million of dividends paid to stockholders. Cash used for financing activities for the comparable prior year period primarily represents $31.4 million for the purchase of an additional 3% interest in INTECH combined with $12.2 million of distributions to noncontrolling interests and $7.4 million of dividends paid to stockholders.

Read the The complete Report



Stocks Discussed: JNS,
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