Janus Capital Profit Rises On Back Of Higher AUM

Janus Capital Group Inc (NYSE:JNS), a global investment management firm, announced its fourth quarter results today and reported higher fourth quarter profit.

Janus Capital’s results beat estimates

Janus Capital reported fourth-quarter net income attributable to the company of $38.3 million or $0.21 per share, higher than $31.2 million or $0.17 per share in the previous year.  13 analysts polled by Thomson Reuters, on average, anticipated the company to earn $0.19 per share for the quarter.

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The investment management firm’s revenues too increased to $226.2 million from $216.6 million a year ago. This is against analysts estimates of $225.22 million for the quarter.

The following table highlights the latest financial performance reported by Janus Capital today:

Higher revenue aided by higher AUM

As can be deduced from the above table, Janus Capital Group Inc (NYSE:JNS)’s fourth quarter 2013 revenues of $226.2 million increased from third quarter 2013, largely due to higher average assets under management and private account performance fee revenue.

However, the global investment management firm’s fourth quarter 2013 operating expenses of $159.2 million increased $0.5 million, or 0.3% from third quarter 2013, largely due to higher marketing expenses, partially offset by lower compensation expenses.  Janus’ fourth quarter 2013 compensation expense reflects a $6.2 million benefit as a result of shifting a portion of year-end compensation from cash to long term incentive awards.

Janus Capital Group Inc (NYSE:JNS) had stockholders’ equity of $1.5 billion as on December 31, 2013, while cash and investments stood at $830 million and outstanding debt stood at $544.6 million. Its cash flows from operations during the fourth quarter were $92.1 million against $78.3 million reported during the third quarter 2013 and $67.4 million clocked during the fourth quarter 2012.

Recently, Citi analysts dissected U.S. mutual fund flows in September in their research work and noted retail inflows were $78 billion in September comprising $34 billion in long-term inflows and $43 billion in money market flows.  On an MTM basis, long-term flows jumped $61 billion of which $32 billion accrued to Equities and $28 billion to Fixed Income. This was considered creditable given the volatile markets and the uncertainty in Washington due to the shutdown and debt ceiling.