Diamond Hill Investment Group Files 10-Q for Q2 2024

TL;DR

DHIL 10-Q filed. Q2 2024 financials out. Check it.

AI Summary

Diamond Hill Investment Group Inc. reported its 10-Q filing for the period ending June 30, 2024. The company, formerly known as Banc Stock Group Inc., is based in Columbus, OH, and operates in the investment advice sector. The filing covers financial information for the second quarter and the first half of 2024.

Why It Matters

This filing provides investors with a quarterly update on Diamond Hill Investment Group's financial performance and operational status, crucial for assessing the company's health and investment potential.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated in the provided header information.

Key Players & Entities

• DIAMOND HILL INVESTMENT GROUP INC (company) — Filer
• 0000909108 (company) — Central Index Key
• COLUMBUS (location) — Business Address City
• OH (location) — Business Address State
• BANC STOCK GROUP INC (company) — Former Company Name
• 19971016 (date) — Date of Name Change
• 20240630 (date) — Conformed Period of Report
• 20240731 (date) — Filed as of Date

FAQ

Key Financial Figures

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

Filing Documents

• dhil-20240630.htm (10-Q) — 1115KB
• ex-311x20240630.htm (EX-31.1) — 10KB
• ex-312x20240630.htm (EX-31.2) — 10KB
• ex-321x20240630.htm (EX-32.1) — 6KB
• dhil-20240630_g1.jpg (GRAPHIC) — 602KB
• 0000909108-24-000033.txt ( ) — 6715KB
• dhil-20240630.xsd (EX-101.SCH) — 35KB
• dhil-20240630_cal.xml (EX-101.CAL) — 53KB
• dhil-20240630_def.xml (EX-101.DEF) — 148KB
• dhil-20240630_lab.xml (EX-101.LAB) — 470KB
• dhil-20240630_pre.xml (EX-101.PRE) — 321KB
• dhil-20240630_htm.xml (XML) — 642KB

: 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 32

Controls and Procedures

Item 4. Controls and Procedures 32

: OTHER INFORMATION

Part II: OTHER INFORMATION 33

Legal Proceedings

Item 1. Legal Proceedings 33

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 35

Signatures

Signatures 36 2 Table of Contents

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

: Financial Statements

ITEM 1: Financial Statements Diamond Hill Investment Group, Inc. Consolidated Balance Sheets 6/30/2024 12/31/2023 (Unaudited) ASSETS Cash and cash equivalents $ 23,449,563 $ 46,991,879 Investments 153,997,045 147,738,862 Accounts receivable 19,046,218 18,051,241 Prepaid expenses 3,091,514 3,509,460 Income taxes receivable 1,291,205 1,620,864 Property and equipment, net of depreciation 1,843,193 2,591,604 Deferred taxes 10,332,525 11,590,438 Total assets $ 213,051,263 $ 232,094,348 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Accounts payable and accrued expenses $ 5,274,101 $ 6,190,370 Accrued incentive compensation 14,566,153 29,500,000 Deferred compensation 36,674,694 36,087,170 Total liabilities 56,514,948 71,777,540 Permanent shareholders' equity Common shares, no par value: 7,000,000 shares authorized; 2,751,331 issued and outstanding at June 30, 2024 (inclusive of 192,694 unvested shares); 2,823,076 issued and outstanding at December 31, 2023 (inclusive of 190,172 unvested shares) 10,916,078 22,164,410 Preferred shares, undesignated, 1,000,000 shares authorized and unissued — — Deferred equity compensation ( 20,686,099 ) ( 15,392,418 ) Retained earnings 166,306,336 153,544,816 Total permanent shareholders' equity 156,536,315 160,316,808 Total liabilities and shareholders' equity $ 213,051,263 $ 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 REVENUES: Investment advisory $ 34,841,125 $ 31,500,443 $ 69,192,918 $ 63,542,902 Mutual fund administration, net 1,820,208 1,850,194 3,763,345 3,798,238 Total revenue 36,661,333 33,350,637 72,956,263 67,341,140 OPERATING EXPENSES: Compensation and related costs, excluding deferred compensation expense (benefit) 18,330,666 17,399,350 36,478,131

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 June 30, 2024 and December 31, 2023, and for the three-month and six-month periods ended June 30, 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

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View this 10-Q filing on SEC EDGAR