Diamond Hill Investment Group Inc. (DHIL, Financial) filed Quarterly Report for the period ended 2012-06-30.
Diamond Hill Investment Group, Inc. has a market cap of $235.4 million; its shares were traded at around $73.7 with a P/E ratio of 15.7 and P/S ratio of 3.7. Diamond Hill Investment Group, Inc. had an annual average earning growth of 4.5% over the past 5 years.
As a percent of total second quarter 2012 revenues, investment advisory fees accounted for 87% and mutual fund administration fees made up the remaining 13%. This compared to 88% and 12%, respectively, for second quarter 2011.
The Company generated net income of $7.9 million ($2.59 per share) for the six months ended June 30, 2012, compared with net income of $7.4 million ($2.54 per share) for the six months ended June 30, 2011. Operating income increased by $551 thousand period over period primarily due to a decrease in operating expenses of $1.05 million offset by reduced revenue of $502 thousand. Net income increased $579 thousand for the period compared to the six months ended June 30, 2011. Operating profit margin increased to 36% for the six months ended June 30, 2012 from 34% for the six months ended June 30, 2011. 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.
Mutual Fund Administration Fees. Mutual fund administration revenues increased by $261 thousand, or 6%, for the six months ended June 30, 2012 compared to the six months 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 4.1% increase in average mutual fund AUM from $4.36 billion for the six months ended June 30, 2011 to $4.54 billion for the six months ended June 30, 2012.
Beacon Hills revenue for the three months ended June 30, 2012 and 2011 includes $131 thousand and $129 thousand, respectively, of inter-company revenue earned from services provided to DHCM. Beacon Hills revenue for the six months ended June 30, 2012 and 2011 includes $262 thousand and $260 thousand, respectively, of inter-company revenue earned from services provided to DHCM. These amounts have been eliminated from the Consolidated Statements of Income.
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Diamond Hill Investment Group, Inc. has a market cap of $235.4 million; its shares were traded at around $73.7 with a P/E ratio of 15.7 and P/S ratio of 3.7. Diamond Hill Investment Group, Inc. had an annual average earning growth of 4.5% over the past 5 years.
Highlight of Business Operations:
The Company generated net income of $3.3 million ($1.07 per share) for the three months ended June 30, 2012, compared with net income of $3.7 million ($1.26 per share) for the three months ended June 30, 2011. Operating income was flat period over period as revenue decreases were offset by decreases in operating expenses. Net income decreased $401 thousand, largely as a result of negative returns on the Companys corporate investments. Operating profit margin increased to 36% for second quarter 2012 from 35% for second quarter 2011. 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.As a percent of total second quarter 2012 revenues, investment advisory fees accounted for 87% and mutual fund administration fees made up the remaining 13%. This compared to 88% and 12%, respectively, for second quarter 2011.
The Company generated net income of $7.9 million ($2.59 per share) for the six months ended June 30, 2012, compared with net income of $7.4 million ($2.54 per share) for the six months ended June 30, 2011. Operating income increased by $551 thousand period over period primarily due to a decrease in operating expenses of $1.05 million offset by reduced revenue of $502 thousand. Net income increased $579 thousand for the period compared to the six months ended June 30, 2011. Operating profit margin increased to 36% for the six months ended June 30, 2012 from 34% for the six months ended June 30, 2011. 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.
Mutual Fund Administration Fees. Mutual fund administration revenues increased by $261 thousand, or 6%, for the six months ended June 30, 2012 compared to the six months 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 4.1% increase in average mutual fund AUM from $4.36 billion for the six months ended June 30, 2011 to $4.54 billion for the six months ended June 30, 2012.
Beacon Hills revenue for the three months ended June 30, 2012 and 2011 includes $131 thousand and $129 thousand, respectively, of inter-company revenue earned from services provided to DHCM. Beacon Hills revenue for the six months ended June 30, 2012 and 2011 includes $262 thousand and $260 thousand, respectively, of inter-company revenue earned from services provided to DHCM. These amounts have been eliminated from the Consolidated Statements of Income.
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