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Diamond Hill Investment Group's 2024 Financial Results

Diamond Hill Investment Group, Inc. (Nasdaq: DHIL) has released its financial results for the fourth quarter and the full year ended December 31, 2024. The company's performance showcases substantial growth across various metrics, indicating strong business resilience and successful investment strategies.

Key Financial Highlights

• - Assets Under Management (AUM): The combined AUM and assets under advisement (AUA) reached $31.9 billion, up from $29.2 billion by the end of 2023. This robust increase illustrates the company's effectiveness in attracting and retaining clients.
• - Average AUM and AUA: For 2024, the average AUM and AUA stood at $31.6 billion, an increase from $27.3 billion the previous year, reflecting a healthy growth trajectory.
• - Client Cash Flows: The company experienced net client outflows of $0.3 billion during 2024, a slight improvement from $0.5 billion the year prior.
• - Revenue Growth: Diamond Hill reported $151.1 million in revenue for 2024, compared to $136.7 million in 2023, marking an 11% increase.
• - Profit Margins: The net operating profit margin improved to 29% in 2024 from 26%, while the adjusted profit margin reached 32%, indicating better operational efficiency.
• - Investment Income: Investment income decreased to $15.1 million compared to $23.1 million in 2023, which reflects market fluctuations affecting returns on investments.
• - Net Income: The net income attributable to common shareholders was $43.2 million, slightly above the previous year's $42.2 million. This translates to diluted earnings per share of $15.66, up from $14.32 in 2023. Adjusted earnings per share also saw a significant increase to $12.92 from $10.28.

The company also demonstrated its commitment to returning capital to its shareholders, returning approximately $46.8 million throughout the year. This included $30.3 million used to repurchase 195,224 common shares and a $16.5 million allocation to dividends, totaling $6.00 per common share.

Strategic Insights from Leadership

Heather Brilliant, the CEO of Diamond Hill, commented on the year’s performance, stating, “Our revenue in 2024 was bolstered by meaningful inflows into our fixed income strategies and strong US market returns. Although we faced outflows in US equity, the balance between fixed income and equity investments provided a robust foundation for growth.” She further noted, “The improvement in our operating margin to 32% reflects our unwavering pursuit of operational excellence.”

Dividends and Future Outlook

The Board of Directors has approved a quarterly cash dividend of $1.50 per common share to be paid on March 21, 2025, benefiting shareholders on record as of March 10, 2025. This dividend reflects the company’s ongoing dedication to shareholder returns amidst fluctuating market conditions.

Conclusion

In conclusion, Diamond Hill Investment Group's results for 2024 highlight resilience, strategic growth in assets, and a clear commitment to returning capital to shareholders. As the firm continues to navigate the complexities of investment management, its focus on fixed income strategies and a solid revenue base suggests that it is well-positioned for future growth. Stakeholders and interested investors will be keen to follow the company's developments ahead, particularly on its strategies to address market challenges and opportunities.

For more information, please visit Diamond Hill's official site.