Diamond Hill Investment Group, Inc. (DHIL) reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenue for the third quarter increased by 10% to $39.0 million, up from $35.6 million in 2023. This growth was primarily driven by a rise in investment advisory revenue, which reached $37.2 million, an 11% increase from $33.7 million in the prior year. For the nine-month period, total revenue rose by 9% to $112.0 million, compared to $102.9 million in 2023.

Net income for the third quarter surged to $14.6 million, a substantial increase from $5.2 million in 2023, while net income attributable to common shareholders also rose significantly from $6.5 million to $14.6 million. Earnings per share (EPS) for the third quarter reached $5.35, compared to $2.20 in the previous year. For the nine months ended September 30, 2024, net income totaled $35.8 million, up from $28.6 million in 2023, with EPS increasing from $9.61 to $12.90.

Investment income showed a notable recovery, with net investment income for the third quarter at $9.7 million, compared to a loss of $4.6 million in 2023. The company’s total assets as of September 30, 2024, were $240.8 million, an increase from $232.1 million at the end of 2023. Cash and cash equivalents decreased to $33.7 million from $47.0 million, while investments rose to $163.3 million from $147.7 million.

Operating expenses for the third quarter increased to $28.8 million from $23.2 million in 2023, attributed to higher compensation and related costs, which rose by 9% year-over-year. Deferred compensation expenses also increased significantly, reflecting changes in market conditions. The operating profit margin for the third quarter was 26%, down from 35% in the previous year, primarily due to these increased expenses.

As of September 30, 2024, Diamond Hill Capital Management, Inc. reported total Assets Under Management (AUM) of $31.3 billion, a 25% increase from $25.0 billion in 2023. This growth was driven by market appreciation and net inflows into the company’s strategies, despite some net outflows in equity segments.

The company also announced a quarterly cash dividend of $1.50 per share, expected to reduce shareholders' equity by approximately $4.1 million. Overall, DHIL's financial results reflect a strong recovery and growth trajectory, supported by strategic management of assets and increased revenue streams.

About DIAMOND HILL INVESTMENT GROUP INC

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