0000909108-11-000043.txt : 20110729 0000909108-11-000043.hdr.sgml : 20110729 20110729164319 ACCESSION NUMBER: 0000909108-11-000043 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110729 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110729 DATE AS OF CHANGE: 20110729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIAMOND HILL INVESTMENT GROUP INC CENTRAL INDEX KEY: 0000909108 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] IRS NUMBER: 650190407 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24498 FILM NUMBER: 11997897 BUSINESS ADDRESS: STREET 1: 325 JOHN H MCCONNELL BLVD STREET 2: SUITE 200 CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 6142553333 MAIL ADDRESS: STREET 1: 325 JOHN H MCCONNELL BLVD STREET 2: SUITE 200 CITY: COLUMBUS STATE: OH ZIP: 43215 FORMER COMPANY: FORMER CONFORMED NAME: BANC STOCK GROUP INC DATE OF NAME CHANGE: 19971016 FORMER COMPANY: FORMER CONFORMED NAME: HEARTLAND GROUP OF COMPANIES INC DATE OF NAME CHANGE: 19940301 FORMER COMPANY: FORMER CONFORMED NAME: HEARTLAND FINANCIAL GROUP INC DATE OF NAME CHANGE: 19930714 8-K 1 x8k-0711.txt DIAMOND HILL INVESTMENT GROUP, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________ FORM 8-K CURRENT REPORT _______________________ PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 29, 2011 Diamond Hill Investment Group, Inc. ------------------------------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) Ohio ------------------------------------------------------------------------------ (State or Other Jurisdiction of Incorporation) 000-24498 65-0190407 ------------------------------------------------------------------------------ (Commission File Number) (I.R.S. Employer Identification No.) 325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215 ------------------------------------------------------------------------------ (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (614) 255-3333 ------------------------------------------------------------------------------ (Former Name or Former Address, if Changed Since Last Report) Item 2.02 Results of Operations and Financial Condition --------- --------------------------------------------- Registrant has reported its results of operations for the fiscal quarter ended June 30, 2011, as described in Registrant's press release dated July 29, 2011, a copy of which is filed herewith as Exhibit 99.1 and incorporated herein by reference. Item 9.01. Financial Statements and Exhibits --------- --------------------------------------------- Exhibit No. Document ----------- -------- 99.1 Press release issued by the Registrant dated July 29, 2011. SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DIAMOND HILL INVESTMENT GROUP, INC. Date: July 29, 2011 By: /s/ James F. Laird ------------------------------- James F. Laird, Chief Financial Officer and Secretary EX-99 2 ex991-0711.txt PRESS RELEASE ^ Diamond Hill ------------ Investments FOR IMMEDIATE RELEASE: Investor Contact: James F. Laird-Chief Financial Officer 614-255-3353 (jlaird@diamond-hill.com) DIAMOND HILL INVESTMENT GROUP, INC. REPORTS RESULTS FOR SECOND QUARTER 2011 Columbus, Ohio - July 29, 2011 - Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) today reported unaudited results for the quarter ended June 30, 2011 as summarized below. The limited information that follows in this release is not adequate for making an informed investment judgment, therefore we urge investors to read our Form 10-Q. Whenever possible, we will post our report on a Friday afternoon so that investors have a maximum amount of time to digest the information contained therein. Three Months Ended June 30, 2011 2010 Change Revenue $16,827,523 $13,754,235 22% Net operating income 5,851,046 4,101,913 43% Operating margin 35% 30% Investment return 90,362 (1,183,703) Net income 3,728,889 1,829,858 104% Earnings per share - diluted $1.26 $0.66 91% Six Months Ended June 30, 2011 2010 Change Revenue $33,277,271 $27,145,143 23% Net operating income 11,299,585 8,030,517 41% Operating margin 34% 30% Investment return 461,143 (938,786) Net income 7,360,624 4,500,178 64% Earnings per share - diluted $2.54 $1.64 55% As Of June 30, December 31, June 30, 2011 2010 2010 Assets under management (millions) $9,186 $8,623 $6,482 Book value per share (a) $ 8.25 $ 2.68 $12.36 Total outstanding shares 3,002,874 2,795,683 2,777,177 (a) - A $13 per share special dividend was paid in December 2010. Change in Assets Under Management For the Six Months Ended June 30, (in millions) 2011 2010 AUM at beginning of the period $8,623 $6,283 Net cash inflows (outflows) mutual funds 2 440 sub-advised mutual funds 77 (1) separate accounts 34 290 private investment funds (20) (0) 93 729 Net market appreciation (depreciation) and income 470 (530) Increase during the period 563 199 AUM at end of the period $9,186 $6,482 About Diamond Hill: Diamond Hill provides investment management services to institutions and financial intermediaries seeking to preserve and build capital. The firm currently manages mutual funds, separate accounts and private investment funds. For more information on Diamond Hill, visit www.diamond-hill.com. Use of Supplemental Data as Non-GAAP Performance Measure Net Operating Income After Tax As supplemental information, we are providing performance measures that are based on methodologies other than generally accepted accounting principles ("non-GAAP") for "Net Operating Income After Tax" that management uses as benchmarks in evaluating and comparing the period-to-period operating performance of Diamond Hill Investment Group, Inc. (the "Company") and its subsidiaries. The Company defines "net operating income after tax" as the Company's net operating income less income tax provision excluding investment return and the tax impact related to the investment return. The Company believes that "net operating income after tax" provides a good representation of the Company's operating performance, as it excludes the impact of investment return on financial results. The amount of the investment portfolio and market fluctuations on the investments can change significantly from one period to another, which can distort the underlying earnings potential of a company. We also believe "net operating income after tax" is an important metric in estimating the value of an asset management business. This non-GAAP measure is provided in addition to net income and net operating income and is not a substitute for net income or net operating income and may not be comparable to non-GAAP performance measures of other companies. Three Months Ended June 30, (in thousands, except per share data) 2011 2010 Net operating income, GAAP basis $5,851 $4,102 Non-GAAP adjustments: Tax provision excluding impact of investment return 2,179 1,530 Net operating income after tax, non-GAAP basis 3,672 2,572 Net operating income after tax per diluted share, non-GAAP basis $1.24 $0.93 Six Months Ended June 30, (in thousands, except per share data) 2011 2010 Net operating income, GAAP basis $11,300 $8,031 Non-GAAP adjustments: Tax provision excluding impact of investment return 4,228 2,935 Net operating income after tax, non-GAAP basis 7,072 5,096 Net operating income after tax per diluted share, non-GAAP basis $2.44 $1.85 The tax provision excluding impact of investment return is calculated by applying the tax rate from the actual tax provision to net operating income. The Company's management does not promote that investors consider the above non-GAAP financial measures alone, or as a substitute for, financial information prepared in accordance with GAAP. ------------------------------------- Throughout this press release, the Company may make forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to such matters as anticipated operating results, prospects for achieving the critical threshold of assets under management, technology developments,economic trends (including interest rates and market volatility), expected transactions and acquisitions and similar matters. The words "believe," "expect," "anticipate," "estimate," "should," "hope," "seek," "plan," "intend" and similar expressions identify forward-looking statements that speak only as of the date thereof. While the Company believes that the assumptions underlying its forward-looking statements are reasonable, investors are cautioned that any of the assumptions could prove to be inaccurate and accordingly, the actual results and experiences of the Company could differ materially from the anticipated results or other expectations expressed by the Company in its forward-looking statements. Factors that could cause such actual results or experiences to differ from results discussed in the forward-looking statements include, but are not limited to: the adverse effect from a decline in the securities markets; a decline in the performance of the Company's products; changes in interest rates; a general or prolonged downturn in the economy; changes in government policy and regulation, including monetary policy; changes in the Company's ability to attract or retain key employees; unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations; and other risks identified from time-to-time in the Company's other public documents on file with the U.S. Securities and Exchange Commission. ### 325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215 614-255-3333 info@diamond-hill.com