Diamond Hill Investment Group Inc. (DHIL, Financial) filed Quarterly Report for the period ended 2011-06-30.
Diamond Hill Investment Group Inc. has a market cap of $225.7 million; its shares were traded at around $77.75 with a P/E ratio of 16.2 and P/S ratio of 4.1. Diamond Hill Investment Group Inc. had an annual average earning growth of 32.4% over the past 5 years.
Investment Advisory Fees. Investment advisory fees increased by $2.9 million, or 24%, from the quarter ended June 30, 2010 to the quarter ended June 30, 2011. Investment advisory fees are calculated as a percent of average net AUM at various levels depending on the investment product. The Companys average advisory fee rate for the three months ended June 30, 2011 was 0.63% compared to 0.70% for the three months ended June 30, 2010. The decrease in the average advisory fee rate is due to an overall change in the composition of AUM where long-short strategies, which pay a higher advisory fee, made up 25% of total AUM as of June 30, 2011 compared to 34% of total AUM as of June 30, 2010 while long only strategies, which have a lower advisory fee, made up 59% of total AUM as of June 30, 2011 compared to 50% of total AUM as of June 30, 2010. The Companys average AUM during the quarter ended June 30, 2011 was $9.3 billion compared to $6.8 billion for the quarter ended June 30, 2010. Despite the 0.07% decrease in average advisory fee rate during second quarter 2011 compared to second quarter 2010, the fee rate was being charged on a greater asset base as the average AUM increased 38% from second quarter 2010 to second quarter 2011 resulting in an increase in the overall fees earned during the period. The Company anticipates the average advisory fee rate to continue to decrease throughout 2011 based upon the continued change in asset composition due to asset growth in lower fee strategies.
Mutual Fund Administration Fees. Mutual fund administration fees increased $205 thousand, or 11%, from the quarter ended June 30, 2010 to the quarter ended June 30, 2011. Mutual fund administration fees include administration fees received from Diamond Hill Funds, which are calculated as a percent of average mutual fund AUM, and all Beacon Hill fee revenue. The increase in the mutual fund administration fee is due to a 17% increase in average mutual fund AUM from $3.8 billion for the quarter ended June 30, 2010 to $4.4 billion for the quarter ended June 30, 2011 offset by a decrease in the overall blended net administration fee rate from 0.16% for the quarter ended June 30, 2010 to 0.15% for the quarter ended June 30, 2011.
Compensation and Related Costs. Employee compensation and benefits increased $1.1 million, or 14%, during the three months ended June 30, 2011 compared to the same period a year ago primarily due to a $780 thousand increase in restricted stock expense related to an overall increase in the total amount of long-term equity awards outstanding in 2011 compared to 2010 and a $247 thousand increase in base salaries and related benefits due an increase in employee headcount, while incentive compensation remained flat quarter-over-quarter.
The Company generated net income of $7,360,624 ($2.54 per diluted share) for the six months ended June 30, 2011, compared with net income of $4,500,178 ($1.64 per diluted share) for the six months ended June 30, 2010. While net income increased $2.9 million, revenue for the period increased $6.1 million and net investment return increased $1.4 million offset by a $2.9 million increase in operating expenses and a $1.8 million increase in the income tax provision from the six months ended June 30, 2010 to the six months ended June 30, 2011. Operating profit margin increased to 34% for the six months ended June 30, 2011 from 30% for the six months ended June 30, 2010. The Company expects that its operating margin will fluctuate from period to period based on various factors including revenues; investment results; employee performance; staffing levels; development of investment strategies, products, or channels; and industry comparisons.
Compensation and Related Costs. Employee compensation and benefits increased $2.5 million, or 16%, during the six months ended June 30, 2011 compared to the same period a year ago, primarily due to an increase of $1.5 million in incentive compensation during the period consistent with a 42% increase in AUM and the associated increase in operating income. Further contributors to the overall increase in compensation expense were restricted stock expense, which increased by $733 thousand due to an overall increase in the total amount of long-term equity awards outstanding in 2011 compared to 2010, and base salaries and related benefits, which increased by $233 thousand due to an increase in employee headcount.
Read the The complete Report
Diamond Hill Investment Group Inc. has a market cap of $225.7 million; its shares were traded at around $77.75 with a P/E ratio of 16.2 and P/S ratio of 4.1. Diamond Hill Investment Group Inc. had an annual average earning growth of 32.4% over the past 5 years.
Highlight of Business Operations:
The Company generated net income of $3,728,889 ($1.26 per diluted share) for the three months ended June 30, 2011, compared with net income of $1,829,858 ($0.66 per diluted share) for the three months ended June 30, 2010. While net income increased $1.9 million, revenue for the period increased $3.1 million and net investment return increased $1.3 million offset by a $1.3 million increase in operating expenses and a $1.2 million increase in the income tax provision. Operating profit margin increased to 35% for second quarter 2011 from 30% for second quarter 2010. The Company expects that its operating margin will fluctuate from period to period based on various factors including revenues; investment results; employee performance; staffing levels; development of investment strategies, products, or channels; and industry comparisons.Investment Advisory Fees. Investment advisory fees increased by $2.9 million, or 24%, from the quarter ended June 30, 2010 to the quarter ended June 30, 2011. Investment advisory fees are calculated as a percent of average net AUM at various levels depending on the investment product. The Companys average advisory fee rate for the three months ended June 30, 2011 was 0.63% compared to 0.70% for the three months ended June 30, 2010. The decrease in the average advisory fee rate is due to an overall change in the composition of AUM where long-short strategies, which pay a higher advisory fee, made up 25% of total AUM as of June 30, 2011 compared to 34% of total AUM as of June 30, 2010 while long only strategies, which have a lower advisory fee, made up 59% of total AUM as of June 30, 2011 compared to 50% of total AUM as of June 30, 2010. The Companys average AUM during the quarter ended June 30, 2011 was $9.3 billion compared to $6.8 billion for the quarter ended June 30, 2010. Despite the 0.07% decrease in average advisory fee rate during second quarter 2011 compared to second quarter 2010, the fee rate was being charged on a greater asset base as the average AUM increased 38% from second quarter 2010 to second quarter 2011 resulting in an increase in the overall fees earned during the period. The Company anticipates the average advisory fee rate to continue to decrease throughout 2011 based upon the continued change in asset composition due to asset growth in lower fee strategies.
Mutual Fund Administration Fees. Mutual fund administration fees increased $205 thousand, or 11%, from the quarter ended June 30, 2010 to the quarter ended June 30, 2011. Mutual fund administration fees include administration fees received from Diamond Hill Funds, which are calculated as a percent of average mutual fund AUM, and all Beacon Hill fee revenue. The increase in the mutual fund administration fee is due to a 17% increase in average mutual fund AUM from $3.8 billion for the quarter ended June 30, 2010 to $4.4 billion for the quarter ended June 30, 2011 offset by a decrease in the overall blended net administration fee rate from 0.16% for the quarter ended June 30, 2010 to 0.15% for the quarter ended June 30, 2011.
Compensation and Related Costs. Employee compensation and benefits increased $1.1 million, or 14%, during the three months ended June 30, 2011 compared to the same period a year ago primarily due to a $780 thousand increase in restricted stock expense related to an overall increase in the total amount of long-term equity awards outstanding in 2011 compared to 2010 and a $247 thousand increase in base salaries and related benefits due an increase in employee headcount, while incentive compensation remained flat quarter-over-quarter.
The Company generated net income of $7,360,624 ($2.54 per diluted share) for the six months ended June 30, 2011, compared with net income of $4,500,178 ($1.64 per diluted share) for the six months ended June 30, 2010. While net income increased $2.9 million, revenue for the period increased $6.1 million and net investment return increased $1.4 million offset by a $2.9 million increase in operating expenses and a $1.8 million increase in the income tax provision from the six months ended June 30, 2010 to the six months ended June 30, 2011. Operating profit margin increased to 34% for the six months ended June 30, 2011 from 30% for the six months ended June 30, 2010. The Company expects that its operating margin will fluctuate from period to period based on various factors including revenues; investment results; employee performance; staffing levels; development of investment strategies, products, or channels; and industry comparisons.
Compensation and Related Costs. Employee compensation and benefits increased $2.5 million, or 16%, during the six months ended June 30, 2011 compared to the same period a year ago, primarily due to an increase of $1.5 million in incentive compensation during the period consistent with a 42% increase in AUM and the associated increase in operating income. Further contributors to the overall increase in compensation expense were restricted stock expense, which increased by $733 thousand due to an overall increase in the total amount of long-term equity awards outstanding in 2011 compared to 2010, and base salaries and related benefits, which increased by $233 thousand due to an increase in employee headcount.
Read the The complete Report
