Janus Henderson Group plc Reports First Quarter 2021 Diluted EPS of US$0.88, or US$0.91 on an Adjusted Basis

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Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’) published its first quarter 2021 results for the period ended 31 March 2021.

First quarter 2021 operating income was US$192.5 million compared to US$227.0 million in the fourth quarter 2020 and US$(332.4) million in the first quarter 2020. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, was US$201.5 million in the first quarter 2021 compared to US$231.7 million in the fourth quarter 2020 and US$164.5 million in the first quarter 2020.

First quarter 2021 diluted earnings per share of US$0.88 decreased 14% compared to US$1.02 in the fourth quarter 2020 and increased versus US$(1.35) in the first quarter 2020. Adjusted diluted earnings per share of US$0.91 in the first quarter 2021 decreased 13% compared to US$1.04 in the fourth quarter 2020 and increased 52% versus US$0.60 in the first quarter 2020.

Dick Weil, Chief Executive Officer of Janus Henderson Group plc, stated:

“Our first quarter results reflect solid long-term investment performance, strong financials and continued capital return to shareholders.

“We remain confident in the momentum we are seeing in several areas of our business, including our Intermediary channel, Fixed Income and Multi-Asset capabilities, and within Equities, European Equities, Life Sciences and Sustainable Equities.

“We continue to be financially disciplined while focusing on investing in strategic growth and returning excess cash to shareholders. We returned over US$290 million through dividends and share buybacks in the first quarter, and we are pleased to announce a 6% dividend increase.”

SUMMARY OF FINANCIAL RESULTS (unaudited) (in US$ millions, except per share data or as noted)

The Group presents its financial results in US$ and in accordance with accounting principles generally accepted in the United States of America (‘US GAAP’ or ‘GAAP’). However, JHG management evaluates the profitability of the Group and its ongoing operations using additional non-GAAP financial measures. Management uses these performance measures to evaluate the business, and adjusted values are consistent with internal management reporting. See ‘Reconciliation of non-GAAP financial information’ below for additional information.

 

 

Three months ended

 

 

31 Mar

 

31 Dec

 

31 Mar

 

 

2021

 

2020

 

2020

GAAP basis:

 

 

 

 

 

 

Revenue

 

644.0

 

657.2

 

554.9

 

Operating expenses

 

451.5

 

430.2

 

887.3

 

Operating income (loss)

 

192.5

 

227.0

 

(332.4

)

Operating margin

 

29.9

%

34.5

%

(59.9

)%

Net income (loss) attributable to JHG

 

155.5

 

186.8

 

(247.0

)

Diluted earnings (loss) per share

 

0.88

 

1.02

 

(1.35

)

 

 

 

 

 

 

 

Adjusted basis:

 

 

 

 

 

 

Revenue

 

516.6

 

528.5

 

442.7

 

Operating expenses

 

315.1

 

296.8

 

278.2

 

Operating income

 

201.5

 

231.7

 

164.5

 

Operating margin

 

39.0

%

43.8

%

37.2

%

Net income attributable to JHG

 

161.5

 

189.0

 

112.7

 

Diluted earnings per share

 

0.91

 

1.04

 

0.60

 

First quarter 2021 adjusted revenue of US$516.6 million decreased from the fourth quarter 2020 result of US$528.5 million primarily as a result of lower performance fees due to seasonality. First quarter 2021 adjusted net income attributable to JHG of US$161.5 million declined compared to US$189.0 million in the fourth quarter 2020 primarily due to the seasonal performance fees and larger net investment gains in the fourth quarter 2020.

DIVIDEND AND SHARE BUYBACK

On 28 April 2021, the Board approved a 6% increase in the quarterly dividend and declared a first quarter dividend in respect of the three months ended 31 March 2021 of US$0.38 per share. Shareholders on the register on the record date of 11 May 2021 will be paid the dividend on 27 May 2021. Janus Henderson does not offer a dividend reinvestment plan.

JHG purchased 8.1 million of its ordinary shares on the NYSE and its CHESS Depositary Interests (CDIs) on the ASX in the first quarter, primarily as part of its participation in Dai-ichi Life’s registered secondary public offering, for a total outlay of US$230.2 million.

Net tangible assets per share

US$

 

31 Mar 2021

 

31 Dec 2020

Net tangible assets / (liabilities) per ordinary share

 

2.81

 

3.68

Net tangible assets are defined by the ASX as being total assets less intangible assets less total liabilities ranking ahead of, or equally with, claims of ordinary shares.

AUM AND FLOWS (in US$ billions)

FX reflects movement in AUM resulting from changes in foreign currency rates as non-US$ denominated AUM is translated into US$. Redemptions include impact of client switches.

Total Group comparative AUM and flows

 

 

Three months ended

 

 

31 Mar

 

31 Dec

 

31 Mar

 

 

2021

 

2020

 

2020

Opening AUM

 

401.6

 

 

358.3

 

 

374.8

 

Sales

 

20.7

 

 

23.2

 

 

21.4

 

Redemptions

 

(24.0

)

 

(24.3

)

 

(33.6

)

Net sales / (redemptions)