Diamond Hill Investment Group Files Q3 2024 10-Q

TL;DR

DHIL 10-Q filed for 9/30/24. Financials and operations detailed.

AI Summary

Diamond Hill Investment Group Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operations, including its investment advisory and mutual fund administrative services. Specific financial figures and operational metrics for the third quarter and year-to-date periods are presented.

Why It Matters

This filing provides investors with a detailed look at Diamond Hill's financial health and operational performance for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently present new or elevated risks.

Key Players & Entities

• DIAMOND HILL INVESTMENT GROUP INC (company) — Filer
• 0000909108 (company) — Central Index Key
• 20240930 (date) — Period of Report
• 20241104 (date) — Filing Date
• 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

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-20240930.htm (10-Q) — 1140KB
• ex-311x20240930.htm (EX-31.1) — 10KB
• ex-312x20240930.htm (EX-31.2) — 10KB
• ex-321x20240930.htm (EX-32.1) — 6KB
• dhil-20240930_g1.jpg (GRAPHIC) — 602KB
• 0000909108-24-000044.txt ( ) — 6788KB
• dhil-20240930.xsd (EX-101.SCH) — 35KB
• dhil-20240930_cal.xml (EX-101.CAL) — 56KB
• dhil-20240930_def.xml (EX-101.DEF) — 148KB
• dhil-20240930_lab.xml (EX-101.LAB) — 475KB
• dhil-20240930_pre.xml (EX-101.PRE) — 325KB
• dhil-20240930_htm.xml (XML) — 652KB

: 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 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

: OTHER INFORMATION

Part II: OTHER INFORMATION 37

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 39

Signatures

Signatures 40 2 Table of Contents

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

: Financial Statements

ITEM 1: Financial Statements Diamond Hill Investment Group, Inc. Consolidated Balance Sheets 9/30/2024 12/31/2023 (Unaudited) ASSETS Cash and cash equivalents $ 33,715,772 $ 46,991,879 Investments 163,263,883 147,738,862 Accounts receivable 20,810,366 18,051,241 Prepaid expenses 3,997,154 3,509,460 Income taxes receivable 2,621,209 1,620,864 Property and equipment, net of depreciation 7,755,377 2,591,604 Deferred taxes 8,646,048 11,590,438 Total assets $ 240,809,809 $ 232,094,348 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Accounts payable and accrued expenses $ 6,338,203 $ 5,421,454 Accrued incentive compensation 22,664,898 29,500,000 Lease liability 6,388,801 768,916 Deferred compensation 38,924,862 36,087,170 Total liabilities 74,316,764 71,777,540 Permanent shareholders' equity Common shares, no par value: 7,000,000 shares authorized; 2,732,931 issued and outstanding at September 30, 2024 (inclusive of 195,620 unvested shares); 2,823,076 issued and outstanding at December 31, 2023 (inclusive of 190,172 unvested shares) 30,051,853 22,164,410 Preferred shares, undesignated, 1,000,000 shares authorized and unissued — — Deferred equity compensation ( 18,521,215 ) ( 15,392,418 ) Retained earnings 154,962,407 153,544,816 Total permanent shareholders' equity 166,493,045 160,316,808 Total liabilities and shareholders' equity $ 240,809,809 $ 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 REVENUES: Investment advisory $ 37,229,875 $ 33,668,351 $ 106,422,793 $ 97,211,253 Mutual fund administration, net 1,788,357 1,885,929 5,551,702 5,684,167 Total revenue 39,018,232 35,554,280 111,974,495 102,895,420 OPERATING EXPENSES: Compensation and related costs, excluding deferred compensati

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 September 30, 2024 and December 31, 2023, and for the three-month and nine-month periods ended September 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 t

View Full Filing

View this 10-Q filing on SEC EDGAR