Diamond Hill Investment Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Diamond Hill Investment Group Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial performance and business operations.</b>

AI Summary

DIAMOND HILL INVESTMENT GROUP INC (DHIL) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Diamond Hill Investment Group Inc. filed a 10-Q report for the period ending March 31, 2024. The company's principal business is investment advice. The filing includes data for the fiscal year ending December 31. Previous company names include Banc Stock Group Inc. and Heartland Group of Companies Inc. The filing is from May 8, 2024.

Why It Matters

For investors and stakeholders tracking DIAMOND HILL INVESTMENT GROUP INC, this filing contains several important signals. This 10-Q filing provides investors with an updated view of Diamond Hill's financial health and operational status for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current market position and future prospects in the investment advisory sector.

Risk Assessment

Risk Level: low — DIAMOND HILL INVESTMENT GROUP INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand revenue drivers and operational costs for Q1 2024.

Key Numbers

• 2024-03-31 — Period of Report (Conformed period of report)
• 2024-05-08 — Filed As Of Date (Filed as of date)
• 1997-10-16 — Date of Name Change (Former company name change date)
• 1994-03-01 — Date of Name Change (Former company name change date)
• 1993-07-14 — Date of Name Change (Former company name change date)

Key Players & Entities

• DIAMOND HILL INVESTMENT GROUP INC (company) — Filer name
• BANC STOCK GROUP INC (company) — Former company name
• HEARTLAND GROUP OF COMPANIES INC (company) — Former company name
• HEARTLAND FINANCIAL GROUP INC (company) — Former company name
• OH (location) — State of incorporation and business address
• 6142553333 (phone) — Business phone number

FAQ

Industry Context

Diamond Hill Investment Group Inc. operates in the investment advice sector, providing services related to managing assets and funds.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including quarterly reporting requirements under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the revenue and expense details for the first quarter of 2024.
2. Examine any disclosures regarding changes in investment strategies or market conditions.
3. Review the balance sheet and cash flow statement for the period.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending March 31, 2024. Previous filings would need to be compared for year-over-year or sequential changes.

Key Financial Figures

• $250,000 — it Insurance Corporation ("FDIC") up to $250,000. The Company's credit risk in the event

Filing Documents

• dhil-20240331.htm (10-Q) — 811KB
• ex-311x20240331.htm (EX-31.1) — 10KB
• ex-312x20240331.htm (EX-31.2) — 10KB
• ex-321x20240331.htm (EX-32.1) — 5KB
• dhil-20240331_g1.jpg (GRAPHIC) — 602KB
• 0000909108-24-000023.txt (&nbsp;) — 6006KB
• dhil-20240331.xsd (EX-101.SCH) — 35KB
• dhil-20240331_cal.xml (EX-101.CAL) — 55KB
• dhil-20240331_def.xml (EX-101.DEF) — 156KB
• dhil-20240331_lab.xml (EX-101.LAB) — 464KB
• dhil-20240331_pre.xml (EX-101.PRE) — 324KB
• dhil-20240331_htm.xml (XML) — 474KB

: FINANCIAL INFORMATION

Part I: FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

: OTHER INFORMATION

Part II: OTHER INFORMATION 30

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 32

Other Information

Item 5. Other Information 32

Exhibits

Item 6. Exhibits 33

Signatures

Signatures 34 2 Table of Contents

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

: Financial Statements

ITEM 1: Financial Statements Diamond Hill Investment Group, Inc. Consolidated Balance Sheets 3/31/2024 12/31/2023 (Unaudited) ASSETS Cash and cash equivalents $ 17,592,320 $ 46,991,879 Investments 154,922,301 147,738,862 Accounts receivable 21,295,728 18,051,241 Prepaid expenses 3,238,126 3,509,460 Income taxes receivable — 1,620,864 Property and equipment, net of depreciation 2,280,748 2,591,604 Deferred taxes 9,756,586 11,590,438 Total assets $ 209,085,809 $ 232,094,348 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Accounts payable and accrued expenses $ 5,610,105 $ 6,190,370 Accrued incentive compensation 6,786,756 29,500,000 Income taxes payable 859,479 — Deferred compensation 37,543,829 36,087,170 Total liabilities 50,800,169 71,777,540 Permanent shareholders' equity Common shares, no par value: 7,000,000 shares authorized; 2,804,668 issued and outstanding at March 31, 2024 (inclusive of 247,481 unvested shares); 2,823,076 issued and outstanding at December 31, 2023 (inclusive of 190,172 unvested shares) 19,029,598 22,164,410 Preferred shares, undesignated, 1,000,000 shares authorized and unissued — — Deferred equity compensation ( 23,075,385 ) ( 15,392,418 ) Retained earnings 162,331,427 153,544,816 Total permanent shareholders' equity 158,285,640 160,316,808 Total liabilities and shareholders' equity $ 209,085,809 $ 232,094,348 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents Diamond Hill Investment Group, Inc. Consolidated Statements of Income (unaudited) Three Months Ended March 31, 2024 2023 REVENUES: Investment advisory $ 34,351,793 $ 32,042,459 Mutual fund administration, net 1,943,137 1,948,044 Total revenue 36,294,930 33,990,503 OPERATING EXPENSES: Compensation and related costs, excluding deferred compensation expense 18,147,465 16,362,908 Deferred compensation expense 3,190,363 744,511 General and administrative 4,140,206 3,506,070 Sale

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) Note 1 Business and Organization Diamond Hill Investment Group, Inc., an Ohio corporation ("DHIL" and, collectively with its subsidiaries, the "Company"), derives its consolidated revenues and net income from investment advisory and fund administration services provided by its wholly-owned subsidiary, Diamond Hill Capital Management, Inc., an Ohio corporation ("DHCM"). DHCM is a registered investment adviser. DHCM is the investment adviser and administrator for the Diamond Hill Funds (the "Funds"), a series of open-end mutual funds. DHCM also provides investment advisory services to Diamond Hill Micro Cap Fund, LP ("DHMF"), a private fund, as well as separately managed accounts, collective investment trusts ("CITs"), other pooled vehicles including sub-advised funds, and model delivery programs. Note 2 Significant Accounting Policies Basis of Presentation The accompanying unaudited, condensed, and consolidated financial statements of the Company as of March 31, 2024 and December 31, 2023, and for the three-month periods ended March 31, 2024 and 2023, have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"), the instructions to Form 10-Q, and Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X. Accordingly, the accompanying financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company's management ("management"), all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the financial condition and results of operations as of the dates, and for the interim periods, presented, have been included. The accompanying unaudited, condensed, and consolidated financial statements and these footnotes should be read in conjunction with the audited consolidated financial statements of the Company included in

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View this 10-Q filing on SEC EDGAR