Fourth quarter earnings of $0.17 per diluted share, or $0.20 as
adjusted for merger-related costs
DENVER--(BUSINESS WIRE)--
Janus Capital Group Inc. (“JCG”) (NYSE: JNS) today reported fourth
quarter 2016 net income of $30.9 million, or $0.17 per diluted share,
compared with third quarter 2016 net income of $41.1 million, or $0.22
per diluted share, and net income of $46.6 million, or $0.25 per diluted
share, in the fourth quarter 2015.
For the full year 2016, net income totaled $146.1 million, or $0.78 per
diluted share, compared with net income of $155.8 million, or $0.80 per
diluted share for 2015.
Fourth quarter 2016 net income adjusted for merger-related costs was
$37.9 million, or $0.20 per diluted share. Full year 2016 net income
adjusted for merger-related costs was $157.3 million, or $0.84 per
diluted share while full year 2015 net income adjusted for the loss on
extinguishment of debt was $178.6 million, or $0.92 per diluted share.
See non-GAAP financial measures reconciliation for additional
information.
Assets Under Management and Flows
Average assets under management during the fourth quarter 2016 were
$191.9 billion compared with $195.6 billion during the third quarter
2016 and $191.2 billion during the fourth quarter 2015.
At December 31, 2016, JCG’s assets under management totaled $194.5
billion compared with $195.1 billion at September 30, 2016, and $189.1
billion at December 31, 2015. The decrease in assets under management
during the fourth quarter 2016 reflects market depreciation of $0.2
billion and long-term net outflows of $0.3 billion. Fixed income and
fundamental equity (Janus and Perkins equity) long-term net inflows were
$1.1 billion and $0.2 billion in the fourth quarter 2016, respectively,
while mathematical equity net outflows totaled $1.6 billion.
Investment Performance
As of December 31, 2016, 58% of complex-wide mutual funds had a 4- or
5-star Overall Morningstar Rating™.1
As of December 31, 2016, 46%, 81% and 73% of fundamental equity mutual
fund assets ranked in the top half of their Morningstar categories on a
one-, three- and five-year total return basis, respectively.2
As of December 31, 2016, 11%, 16% and 84% of fixed income mutual fund
assets ranked in the top half of their Morningstar categories on a one-,
three- and five-year total return basis, respectively.3
As of December 31, 2016, 0%, 6% and 15% of mathematical equity relative
return strategies surpassed their respective benchmarks, net of fees,
over the one-, three- and five-year periods, respectively.4
_______________
| 1 |
|
For the period ending December 31, 2016, 38%, 51% and 58% of
complex-wide mutual funds had a 4- or 5-star Morningstar rating for
the 3-, 5- and 10-year periods based on risk-adjusted returns for
50, 47 and 36 funds, respectively. 50 funds were included in the
analysis for the Overall period.
|
| |
|
| 2 | |
References Morningstar relative performance on an asset-weighted
basis. For the 10-year period ending December 31, 2016, 77% of the
fundamental equity mutual fund assets outperformed the majority of
their Morningstar peers based on total returns. For the 1-, 3-, 5-
and 10-year periods ending December 31, 2016, 38%, 74%, 62% and 73%
of the 40, 39, 37 and 30 fundamental equity mutual funds
outperformed the majority of their Morningstar peers based on total
returns.
|
| |
|
| 3 | |
References Morningstar relative performance on an asset-weighted
basis. For the 10-year period ending December 31, 2016, 100% of the
fixed income mutual fund assets outperformed the majority of their
Morningstar peers based on total returns. For the 1-, 3-, 5- and
10-year periods ending December 31, 2016, 33%, 33%, 67% and 100% of
the 9, 6, 6 and 4 fixed income mutual funds outperformed the
majority of their Morningstar peers based on total returns.
|
| |
|
| 4 | |
Mathematical relative return strategies exclude absolute
volatility strategies. For the period ending December 31, 2016,
0%, 40%, 33% and 33% of the mathematical equity mutual funds were
beating their benchmarks on a 1-, 3-, 5-year and since-fund
inception basis. Funds included in the analysis and their
inception dates are: INTECH U.S. Core Fund – Class T (2/03);
INTECH U.S. Managed Volatility Fund – Class I (12/05); INTECH
International Managed Volatility Fund – Class I (5/07); INTECH
Global Income Managed Volatility Fund – Class I (12/11); Janus
Aspen INTECH U.S. Low Volatility Portfolio – Service Shares (9/12)
and INTECH Emerging Markets Managed Volatility Fund – Class I
(12/14).
|
| |
|
| |
|
Financial Discussion
| Financial Highlights |
| (dollars in millions, except per share data or as noted) |
|
|
|
|
| Three Months Ended |
|
| Year Ended |
| | | December 31, |
|
| September 30, | | | December 31, |
|
| December 31, |
| | | 2016 | | | 2016 | | | 2016 | | | 2015 |
| | | | | | | | | | | | | | | |
|
|
Average Assets Under
| | | | | | | | | | | | | | | | |
|
Management (in billions)
| | |
$
|
191.9
| | | |
$
|
195.6
| | | |
$
|
189.3
| | | |
$
|
190.6
| |
|
Ending Complex-Wide
| | | | | | | | | | | | | | | | |
|
Assets (in billions)
| | |
$
|
196.8
| | | |
$
|
198.9
| | | |
$
|
196.8
| | | |
$
|
192.3
| |
|
Operating Revenues
| | |
$
|
251.4
| | | |
$
|
258.9
| | | |
$
|
1,010.7
| | | |
$
|
1,076.2
| |
|
Operating Expenses
| | |
$
|
189.6
| | | |
$
|
189.6
| | | |
$
|
749.1
| | | |
$
|
753.9
| |
|
Operating Income
| | |
$
|
61.8
| | | |
$
|
69.3
| | | |
$
|
261.6
| | | |
$
|
322.3
| |
|
Operating Margin
| | | |
24.6
|
%
| | | |
26.8
|
%
| | | |
25.9
|
%
| | | |
29.9
|
%
|
| | | | | | | | | | | | | | | |
|
|
Net Income Attributable to JCG
| | |
$
|
30.9
| | | |
$
|
41.1
| | | |
$
|
146.1
| | | |
$
|
155.8
| |
| | | | | | | | | | | | | | | |
|
|
Diluted Earnings per Share
| | |
$
|
0.17
| | | |
$
|
0.22
| | | |
$
|
0.78
| | | |
$
|
0.80
| |
| | | | | | | | | | | | | | | | | | | |
|
Fourth quarter 2016 revenues of $251.4 million decreased from third
quarter 2016 due to lower investment management fees as a result of
lower average assets under management. Higher negative performance fees
in the fourth quarter 2016 also contributed to the decrease in revenue.
Capital and Liquidity
At December 31, 2016, JCG had total equity of $1.7 billion, cash and
investments of $795.7 million and outstanding debt of $406.3 million.
Cash flows from operations during the fourth quarter 2016 were $94.5
million compared with $110.1 million during the third quarter 2016 and
$124.0 million during the fourth quarter 2015.
On January 19, 2017, JCG’s Board of Directors declared a regular
quarterly cash dividend of $0.11 per share. The quarterly dividend will
be paid on February 17, 2017, to stockholders of record at the close of
business on February 6, 2017.
Consistent with past practice, JCG intends to declare a regular
quarterly cash dividend in April 2017, subject to the Board’s approval.
Fourth Quarter 2016 Earnings Call Information
JCG will host a conference call and webcast to discuss its results on
Tuesday, January 24, 2017, at 10 a.m. Eastern Time. To participate in
the conference call, please dial (888) 397-5338 in the U.S. and Canada
or (719) 325-2145 internationally. The webcast as well as the slides
used during the presentation can be accessed via the investor relations
section of JCG's website (http://ir.janus.com).
Access to the webcast replay will be available for a period of at least
seven days following the call.
About Janus Capital Group Inc.
Janus Capital Group Inc. (JCG) is a global investment firm dedicated to
delivering better outcomes for clients through a broad range of
investment solutions, including fixed income, equity, alternative and
multi-asset class strategies. It does so through a number of distinct
asset management platforms, including investment teams within Janus
Capital Management LLC (Janus), as well as INTECH Investment Management
LLC (INTECH), Perkins Investment Management LLC (Perkins) and Kapstream
Capital Pty Limited (Kapstream), in addition to a suite of
exchange-traded products. Each team brings distinct asset class
expertise, perspective, style-specific experience and a disciplined
approach to risk. Investment strategies are offered through open-end
funds domiciled in both the U.S. and offshore, as well as through
separately managed accounts, collective investment trusts and
exchange-traded products. Based in Denver, JCG also has offices located
in 12 countries throughout North America, Europe, Asia and Australia.
The firm had complex-wide assets under management and ETN assets
totaling $196.8 billion as of December 31, 2016.
| JANUS CAPITAL GROUP INC. |
| UNAUDITED |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
| (dollars in millions, except per share data or as noted) |
|
|
|
|
| Three Months Ended |
|
| Year Ended |
| | | December 31, |
| September 30, |
| December 31, | | | December 31, |
| December 31, |
| | | 2016 | | 2016 | | 2015 | | | 2016 | | 2015 |
| Revenues: | | | | | | | | | | | | | | | | | |
|
Investment management fees
| | |
$
|
223.3
| | |
$
|
226.7
| | |
$
|
226.4
| | | |
$
|
878.2
| | |
$
|
913.7
| |
|
Performance fees
| | | |
(14.1
|
)
| | |
(11.8
|
)
| | |
(1.9
|
)
| | | |
(36.6
|
)
| | |
(9.8
|
)
|
|
Shareowner servicing fees and other
| | | |
42.2
|
| | |
44.0
|
| | |
43.3
|
| | | |
169.1
|
| | |
172.3
|
|
|
Total revenues
| | | |
251.4
|
| | |
258.9
|
| | |
267.8
|
| | | |
1,010.7
|
| | |
1,076.2
|
|
| | | | | | | | | | | | | | | | |
|
| Operating expenses: | | | | | | | | | | | | | | | | | |
|
Employee compensation and benefits
| | | |
86.6
| | | |
85.9
| | | |
84.0
| | | | |
344.0
| | | |
352.5
| |
|
Long-term incentive compensation
| | | |
19.4
| | | |
21.0
| | | |
19.3
| | | | |
78.9
| | | |
76.8
| |
|
Marketing and advertising
| | | |
6.5
| | | |
4.3
| | | |
5.9
| | | | |
23.0
| | | |
22.0
| |
|
Distribution
| | | |
33.3
| | | |
34.0
| | | |
35.3
| | | | |
133.0
| | | |
141.0
| |
|
Depreciation and amortization
| | | |
8.5
| | | |
9.0
| | | |
9.0
| | | | |
35.5
| | | |
33.0
| |
|
General, administrative and occupancy
| | | |
35.3
|
| | |
35.4
|
| | |
33.5
|
| | | |
134.7
|
| | |
128.6
|
|
|
Total operating expenses
| | | |
189.6
|
| | |
189.6
|
| | |
187.0
|
| | | |
749.1
|
| | |
753.9
|
|
| | | | | | | | | | | | | | | | |
|
| Operating income | | | | 61.8 | | | | 69.3 | | | | 80.8 | | | | | 261.6 | | | | 322.3 | |
| | | | | | | | | | | | | | | | |
|
|
Interest expense
| | | |
(5.2
|
)
| | |
(5.3
|
)
| | |
(5.2
|
)
| | | |
(20.8
|
)
| | |
(27.7
|
)
|
|
Investment gains (losses), net
| | | |
(6.4
|
)
| | |
1.5
| | | |
(2.3
|
)
| | | |
(2.5
|
)
| | |
(8.2
|
)
|
|
Other income (expense), net
| | | |
(0.1
|
)
| | |
1.0
| | | |
4.3
| | | | |
3.9
| | | |
3.2
| |
|
Loss on early extinguishment of debt
| | | |
–
| | | |
–
| | | |
–
| | | | |
–
| | | |
(36.3
|
)
|
|
Income tax provision
| | | |
(19.0
|
)
| | |
(23.5
|
)
| | |
(29.3
|
)
| | | |
(90.9
|
)
| | |
(94.0
|
)
|
| | | | | | | | | | | | | | | | |
|
| Net income | | | | 31.1 | | | | 43.0 | | | | 48.3 | | | | | 151.3 | | | | 159.3 | |
| | | | | | | | | | | | | | | | |
|
|
Net income attributable to noncontrolling interests
| | | |
(0.2
|
)
| | |
(1.9
|
)
| | |
(1.7
|
)
| | | |
(5.2
|
)
| | |
(3.5
|
)
|
| | | | | | | | | | | | | | | | |
|
| Net income attributable to JCG | | |
$
| 30.9 |
| |
$
| 41.1 |
| |
$
| 46.6 |
| | |
$
| 146.1 |
| |
$
| 155.8 |
|
| | | | | | | | | | | | | | | | |
|
| Net income attributable to JCG | | |
$
| 30.9 | | |
$
| 41.1 | | |
$
| 46.6 | | | |
$
| 146.1 | | |
$
| 155.8 | |
|
Less: Allocation of earnings to participating restricted stock awards
| | | |
1.1
|
| | |
1.6
|
| | |
1.6
|
| | | |
5.5
|
| | |
5.5
|
|
| Net income attributable to JCG common shareholders | | |
$
| 29.8 |
| |
$
| 39.5 |
| |
$
| 45.0 |
| | |
$
| 140.6 |
| |
$
| 150.3 |
|
| | | | | | | | | | | | | | | | |
|
|
Basic weighted-average shares outstanding (in millions)
| | | |
176.0
| | | |
176.1
| | | |
178.0
| | | | |
177.0
| | | |
179.7
| |
|
Diluted weighted-average shares outstanding (in millions)
| | | |
180.0
| | | |
181.1
| | | |
183.6
| | | | |
181.2
| | | |
186.8
| |
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
| Diluted earnings per share | | |
$
| 0.17 | | |
$
| 0.22 | | |
$
| 0.25 | | | |
$
| 0.78 | | |
$
| 0.80 | |
| | | | | | | | | | | | | | | | |
|
| Average assets under management (in billions) | | |
$
| 191.9 | | |
$
| 195.6 | | |
$
| 191.2 | | | |
$
| 189.3 | | |
$
| 190.6 | |
| | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
|
| JANUS CAPITAL GROUP INC. |
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
| (dollars in millions) |
|
|
|
|
|
|
| December 31, |
|
| December 31, |
| | | | | 2016 | | | 2015 |
| Assets | | | | | | | | | | |
|
Cash and cash equivalents
| | | | |
$
|
485.9
| | |
$
|
364.4
|
|
Investment securities
| | | | | |
212.1
| | | |
327.1
|
|
Other assets
| | | | | |
178.8
| | | |
182.2
|
|
Property, equipment and software, net
| | | | | |
34.2
| | | |
38.7
|
|
Intangible assets and goodwill, net
| | | | | |
1,940.9
| | | |
1,955.3
|
|
Assets of consolidated variable interest entities
| | | | | |
98.0
| | | |
–
|
| Total assets | | | | |
$
|
2,949.9
| | |
$
|
2,867.7
|
| | | | | | | | | |
|
| Liabilities and equity | | | | | | | | | | |
|
Debt
| | | | |
$
|
406.3
| | |
$
|
402.3
|
|
Other liabilities
| | | | | |
277.9
| | | |
272.6
|
|
Deferred income taxes
| | | | | |
502.8
| | | |
498.9
|
|
Liabilities of consolidated variable interest entities
| | | | | |
0.5
| | | |
–
|
|
Redeemable noncontrolling interests
| | | | | |
43.1
| | | |
21.8
|
|
Total equity
| | | | | |
1,719.3
| | | |
1,672.1
|
| Total liabilities, redeemable noncontrolling interests and equity | | | | |
$
|
2,949.9
| | |
$
|
2,867.7
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| UNAUDITED CONDENSED CONSOLIDATED |
| CASH FLOW INFORMATION |
| (dollars in millions) |
|
|
|
|
| Three Months Ended |
|
| Year Ended |
| | | December 31, |
| September 30, |
| December 31, | | | December 31, |
| December 31, |
| | | 2016 | | 2016 | | 2015 | | | 2016 | | 2015 |
| Cash provided by (used in): | | | | | | | | | | | | | | | | | |
|
Operating activities
| | |
$
|
94.5
| | |
$
|
110.1
| | |
$
|
124.0
| | | |
$
|
262.2
| | |
$
|
274.4
| |
|
Investing activities
| | | |
39.2
| | | |
(37.6
|
)
| | |
5.4
| | | | |
13.3
| | | |
(150.7
|
)
|
|
Financing activities
| | | |
(16.4
|
)
| | |
(40.5
|
)
| | |
(57.5
|
)
| | | |
(153.3
|
)
| | |
(207.2
|
)
|
|
Effect of exchange rate changes
| | | |
(0.5
|
)
| | |
–
|
| | |
0.1
|
| | | |
(0.7
|
)
| | |
(4.6
|
)
|
| Net change during period | | |
$
|
116.8
|
| |
$
|
32.0
|
| |
$
|
72.0
|
| | |
$
|
121.5
|
| |
$
|
(88.1
|
)
|
| | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
|
| JANUS CAPITAL GROUP INC. |
| ASSETS & FLOWS BY INVESTMENT DISCIPLINE |
| (dollars in billions) |
|
| Growth/
Core(1)(4) |
| Global/
International(4) |
| Mathematical
Equity |
| Fixed
Income(1) |
| Value |
| Total
Company
(Excluding
Money
Market
and
ETNs) |
| Exchange-
Traded
Notes
("ETNs")(3) |
| Money
Market |
| Total
Company |
| QUARTERLY | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2016 | |
$
| 70.1 | | |
$
| 19.6 | | |
$
| 46.7 | | |
$
| 47.2 | | |
$
| 9.8 | | |
$
| 193.4 | | |
$
| 2.3 | | |
$
| 1.1 | | |
$
| 196.8 | |
|
Sales
| | |
4.6
| | | |
0.9
| | | |
1.1
| | | |
5.5
| | | |
0.6
| | | |
12.7
| | | |
2.8
| | | |
0.2
| | | |
15.7
| |
|
Redemptions
| |
|
(3.5
|
)
| |
|
(1.7
|
)
| |
|
(2.7
|
)
| |
|
(4.4
|
)
| |
|
(0.7
|
)
| |
|
(13.0
|
)
| |
|
(4.5
|
)
| |
|
(0.3
|
)
| |
|
(17.8
|
)
|
| Net Sales (Redemptions)
| | |
1.1
| | | |
(0.8
|
)
| | |
(1.6
|
)
| | |
1.1
| | | |
(0.1
|
)
| | |
(0.3
|
)
| | |
(1.7
|
)
| | |
(0.1
|
)
| | |
(2.1
|
)
|
|
Market/Fund Performance
| | |
0.9
| | | |
(0.8
|
)
| | |
0.1
| | | |
(0.9
|
)
| | |
0.5
| | | |
(0.2
|
)
| | |
0.2
| | | |
–
| | | |
(0.0
|
)
|
| September 30, 2016 | |
$
| 68.1 | | |
$
| 21.2 | | |
$
| 48.2 | | |
$
| 47.0 | | |
$
| 9.4 | | |
$
| 193.9 | | |
$
| 3.8 | | |
$
| 1.2 | | |
$
| 198.9 | |
|
Sales
| | |
3.1
| | | |
0.8
| | | |
0.6
| | | |
2.8
| | | |
0.9
| | | |
8.2
| | | |
3.0
| | | |
0.1
| | | |
11.3
| |
|
Redemptions
| |
|
(3.5
|
)
| |
|
(1.3
|
)
| |
|
(2.4
|
)
| |
|
(2.9
|
)
| |
|
(0.5
|
)
| |
|
(10.6
|
)
| |
|
(3.0
|
)
| |
|
(0.2
|
)
| |
|
(13.8
|
)
|
| Net Sales (Redemptions)
| | |
(0.4
|
)
| | |
(0.5
|
)
| | |
(1.8
|
)
| | |
(0.1
|
)
| | |
0.4
| | | |
(2.4
|
)
| | |
–
| | | |
(0.1
|
)
| | |
(2.5
|
)
|
|
Market/Fund Performance
| | |
3.0
| | | |
1.3
| | | |
0.9
| | | |
1.0
| | | |
0.5
| | | |
6.7
| | | |
–
| | | |
–
| | | |
6.7
| |
| June 30, 2016 | |
$
| 65.5 | | |
$
| 20.4 | | |
$
| 49.1 | | |
$
| 46.1 | | |
$
| 8.5 | | |
$
| 189.6 | | |
$
| 3.8 | | |
$
| 1.3 | | |
$
| 194.7 | |
|
Sales
| | |
3.9
| | | |
0.6
| | | |
1.3
| | | |
3.7
| | | |
0.4
| | | |
9.9
| | | |
2.7
| | | |
0.2
| | | |
12.8
| |
|
Redemptions
| |
|
(3.0
|
)
| |
|
(1.1
|
)
| |
|
(2.0
|
)
| |
|
(3.3
|
)
| |
|
(0.5
|
)
| |
|
(9.9
|
)
| |
|
(2.4
|
)
| |
|
(0.2
|
)
| |
|
(12.5
|
)
|
| Net Sales (Redemptions)
| | |
0.9
| | | |
(0.5
|
)
| | |
(0.7
|
)
| | |
0.4
| | | |
(0.1
|
)
| | |
0.0
| | | |
0.3
| | | |
–
| | | |
0.3
| |
|
Market/Fund Performance
| | |
0.7
| | | |
0.4
| | | |
1.0
| | | |
0.5
| | | |
0.3
| | | |
2.9
| | | |
0.2
| | | |
–
| | | |
3.1
| |
| March 31, 2016 | |
$
| 63.9 | | |
$
| 20.5 | | |
$
| 48.8 | | |
$
| 45.2 | | |
$
| 8.3 | | |
$
| 186.7 | | |
$
| 3.3 | | |
$
| 1.3 | | |
$
| 191.3 | |
|
Sales
| | |
3.3
| | | |
0.6
| | | |
2.1
| | | |
3.6
| | | |
0.4
| | | |
10.0
| | | |
3.8
| | | |
0.2
| | | |
14.0
| |
|
Redemptions
| |
|
(3.2
|
)
| |
|
(1.4
|
)
| |
|
(1.4
|
)
| |
|
(3.7
|
)
| |
|
(0.6
|
)
| |
|
(10.3
|
)
| |
|
(3.2
|
)
| |
|
(0.2
|
)
| |
|
(13.7
|
)
|
| Net Sales (Redemptions)
| | |
0.1
| | | |
(0.8
|
)
| | |
0.7
| | | |
(0.1
|
)
| | |
(0.2
|
)
| | |
(0.3
|
)
| | |
0.6
| | | |
–
| | | |
0.3
| |
|
Market/Fund Performance
| | |
(0.7
|
)
| | |
(1.6
|
)
| | |
0.5
| | | |
0.9
| | | |
0.1
| | | |
(0.8
|
)
| | |
(0.5
|
)
| | |
–
| | | |
(1.3
|
)
|
| December 31, 2015 | |
$
| 64.5 | | |
$
| 22.9 | | |
$
| 47.6 | | |
$
| 44.4 | | |
$
| 8.4 | | |
$
| 187.8 | | |
$
| 3.2 | | |
$
| 1.3 | | |
$
| 192.3 | |
|
Sales
| | |
3.2
| | | |
1.3
| | | |
1.5
| | | |
5.8
| | | |
0.3
| | | |
12.1
| | | |
2.6
| | | |
0.1
| | | |
14.8
| |
|
Redemptions
| |
|
(3.6
|
)
| |
|
(1.7
|
)
| |
|
(3.0
|
)
| |
|
(3.4
|
)
| |
|
(1.0
|
)
| |
|
(12.7
|
)
| |
|
(1.9
|
)
| |
|
(0.1
|
)
| |
|
(14.7
|
)
|
| Net Sales (Redemptions)
| | |
(0.4
|
)
| | |
(0.4
|
)
| | |
(1.5
|
)
| | |
2.4
| | | |
(0.7
|
)
| | |
(0.6
|
)
| | |
0.7
| | | |
–
| | | |
0.1
| |
|
Market/Fund Performance
| | |
3.8
| | | |
1.1
| | | |
2.5
| | | |
0.4
| | | |
0.4
| | | |
8.2
| | | |
(1.0
|
)
| | |
–
| | | |
7.2
| |
| September 30, 2015 | |
$
| 61.1 | | |
$
| 22.2 | | |
$
| 46.6 | | |
$
| 41.6 | | |
$
| 8.7 | | |
$
| 180.2 | | |
$
| 3.5 | | |
$
| 1.3 | | |
$
| 185.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| ANNUAL | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2016 | |
$
| 70.1 | | |
$
| 19.6 | | |
$
| 46.7 | | |
$
| 47.2 | | |
$
| 9.8 | | |
$
| 193.4 | | |
$
| 2.3 | | |
$
| 1.1 | | |
$
| 196.8 | |
|
Sales
| | |
14.9
| | | |
2.9
| | | |
5.1
| | | |
15.6
| | | |
2.3
| | | |
40.8
| | | |
12.3
| | | |
0.7
| | | |
53.8
| |
|
Redemptions
| |
|
(13.2
|
)
| |
|
(5.5
|
)
| |
|
(8.5
|
)
| |
|
(14.3
|
)
| |
|
(2.3
|
)
| |
|
(43.8
|
)
| |
|
(13.1
|
)
| |
|
(0.9
|
)
| |
|
(57.8
|
)
|
| Net Sales (Redemptions)
| | |
1.7
| | | |
(2.6
|
)
| | |
(3.4
|
)
| | |
1.3
| | | |
–
| | | |
(3.0
|
)
| | |
(0.8
|
)
| | |
(0.2
|
)
| | |
(4.0
|
)
|
|
Market/Fund Performance
| | |
3.9
| | | |
(0.7
|
)
| | |
2.5
| | | |
1.5
| | | |
1.4
| | | |
8.6
| | | |
(0.1
|
)
| | |
–
| | | |
8.5
| |
| December 31, 2015 | |
$
| 64.5 | | |
$
| 22.9 | | |
$
| 47.6 | | |
$
| 44.4 | | |
$
| 8.4 | | |
$
| 187.8 | | |
$
| 3.2 | | |
$
| 1.3 | | |
$
| 192.3 | |
|
Sales
| | |
13.7
| | | |
9.4
| | | |
6.6
| | | |
16.2
| | | |
1.8
| | | |
47.7
| | | |
12.6
| | | |
0.7
| | | |
61.0
| |
|
Redemptions
| |
|
(14.0
|
)
| |
|
(7.2
|
)
| |
|
(11.0
|
)
| |
|
(12.9
|
)
| |
|
(5.2
|
)
| |
|
(50.3
|
)
| |
|
(9.3
|
)
| |
|
(0.7
|
)
| |
|
(60.3
|
)
|
| Net Sales (Redemptions)
| | |
(0.3
|
)
| | |
2.2
| | | |
(4.4
|
)
| | |
3.3
| | | |
(3.4
|
)
| | |
(2.6
|
)
| | |
3.3
| | | |
–
| | | |
0.7
| |
|
Market/Fund Performance
| | |
1.4
| | | |
(0.1
|
)
| | |
1.0
| | | |
(0.4
|
)
| | |
(0.4
|
)
| | |
1.5
| | | |
(2.5
|
)
| | |
–
| | | |
(1.0
|
)
|
Acquisitions(2) | | |
–
| | | |
–
| | | |
–
| | | |
7.1
| | | |
–
| | | |
7.1
| | | |
–
| | | |
–
| | | |
7.1
| |
| December 31, 2014 | |
$
| 63.4 | | |
$
| 20.8 | | |
$
| 51.0 | | |
$
| 34.4 | | |
$
| 12.2 | | |
$
| 181.8 | | |
$
| 2.4 | | |
$
| 1.3 | | |
$
| 185.5 | |
Notes: |
|
(1)
|
|
Growth / Core and Fixed Income assets and flows reflect an even
split of the Janus Balanced Fund between the two categories.
|
|
(2)
| |
Kapstream was acquired on July 1, 2015.
|
|
(3)
| |
ETN sales and redemptions across all periods were adjusted due to a
revised reporting method by the subsidiary; ending and average
assets were not impacted.
|
|
(4)
| |
Assets and flows for all time periods reflect a recategorization of
the Janus Global Real Estate Fund from the Growth / Core to Global /
International discipline.
|
| |
|
Non-GAAP Financial Measures
The Company presents adjusted operating income and adjusted net income
attributable to JCG as non-GAAP financial measures. Management believes
these non-GAAP measures provide greater transparency into our business
on an ongoing operations basis and allow more appropriate comparisons
with industry peers. Management uses these performance measures to
evaluate the business, and they are consistent with internal management
reporting. The most directly comparable GAAP measures are operating
income and net income attributable to JCG.
These non-GAAP measures should not be considered as substitutes for any
measures derived in accordance with GAAP and may not be comparable to
other similarly titled measures of other companies. Additional
reconciling items may be added in the future to these non-GAAP measures
if deemed appropriate. The tax effect related to reconciling items has
been calculated based on the tax rate attributable to the jurisdiction
to which the transaction relates.
The following are reconciliations of GAAP basis operating income and net
income attributable to JCG to adjusted operating income and adjusted net
income attributable to JCG. Amounts are presented in millions, except
per share amounts and operating profit percentages.
|
|
| Three Months Ended |
|
| Year Ended |
| | | December 31, |
|
| September 30, | | | December 31, |
| | | 2016 | | | 2016 | | | 2016 |
|
| 2015 |
| Reconciliation of operating income to adjusted operating income: | | | | | | | | | | | | | | | | |
|
Operating income, GAAP basis
| | |
$
|
61.8
| | | |
$
|
69.3
| | | |
$
|
261.6
| | | |
$
|
322.3
| |
|
Merger-related adjustments
| | |
|
9.1
|
| | |
|
4.2
|
| | |
|
13.3
|
| | |
|
–
|
|
|
Adjusted operating income
| | |
$
|
70.9
|
| | |
$
|
73.5
|
| | |
$
|
274.9
|
| | |
$
|
322.3
|
|
| | | | | | | | | | | | | | | |
|
|
Operating margin
| | | |
24.6
|
%
| | | |
26.8
|
%
| | | |
25.9
|
%
| | | |
29.9
|
%
|
|
Adjusted operating margin
| | | |
28.2
|
%
| | | |
28.4
|
%
| | | |
27.2
|
%
| | | |
29.9
|
%
|
| | | | | | | | | | | | | | | |
|
Reconciliation of net income attributable to JCG to adjusted
net income attributable to JCG: | | | | | | | | | | | | | | | | |
|
Net income attributable to JCG, GAAP basis
| | |
$
|
30.9
| | | |
$
|
41.1
| | | |
$
|
146.1
| | | |
$
|
155.8
| |
|
Merger-related adjustments
| | | |
9.1
| | | | |
4.2
| | | | |
13.3
| | | | |
–
| |
|
Tax effect of merger-related adjustments
| | | |
(2.1
|
)
| | | |
–
| | | | |
(2.1
|
)
| | | |
–
| |
|
Loss on early extinguishment of debt
| | | |
–
| | | | |
–
| | | | |
–
| | | | |
36.3
| |
|
Tax effect of loss on early extinguishment of debt
| | |
|
–
|
| | |
|
–
|
| | |
|
–
|
| | |
|
(13.5
|
)
|
|
Adjusted net income attributable to JCG
| | | |
37.9
| | | | |
45.3
| | | | |
157.3
| | | | |
178.6
| |
|
Less: Allocation of earnings to participating restricted stock awards
| | |
|
1.5
|
| | |
|
1.8
|
| | |
|
6.0
|
| | |
|
6.4
|
|
|
Adjusted net income attributable to JCG common shareholders
| | |
$
|
36.4
|
| | |
$
|
43.5
|
| | |
$
|
151.3
|
| | |
$
|
172.2
|
|
| | | | | | | | | | | | | | | |
|
|
Diluted weighted average common shares outstanding
| | | |
180.0
| | | | |
181.1
| | | | |
181.2
| | | | |
186.8
| |
|
Diluted earnings per share attributable to JCG common shareholders
| | |
$
|
0.17
| | | |
$
|
0.22
| | | |
$
|
0.78
| | | |
$
|
0.80
| |
|
Adjusted diluted earnings per share attributable to JCG common
shareholders
| | |
$
|
0.20
| | | |
$
|
0.24
| | | |
$
|
0.84
| | | |
$
|
0.92
| |
Data presented reflects past performance, which is no guarantee of
future results. Due to market volatility, current performance may be
higher or lower than the performance shown. Call 877.33JANUS (52687) or
visit janus.com/advisor/mutual-funds
for performance, rankings and ratings current to the most recent
month-end.
Janus Capital Group Inc. (“JCG”) provides investment advisory services
through its primary subsidiaries, Janus Capital Management LLC
(“Janus”), INTECH Investment Management LLC (“INTECH”) and Perkins
Investment Management LLC (“Perkins”).
“Complex-Wide Mutual Funds” means all affiliated mutual funds managed by
Janus, INTECH and Perkins. “Fundamental Equity Mutual Funds” means all
mutual funds managed by Janus or Perkins that invest in equity
securities. “Fixed Income Mutual Funds” means all mutual funds managed
by Janus that invest primarily in fixed income securities. “Mathematical
Equity Relative Return Strategies” means all relative return
discretionary managed accounts (not mutual funds) that are advised or
sub-advised by INTECH with at least a one-year track record.
Mutual fund relative performance analysis shown is for each Fund's
parent share class (typically the share class with the longest
performance history): Class T, S or I Shares in the Janus retail fund
(“JIF”) trust and the Institutional or Service Shares in the Janus Aspen
Series (“JAS”). These share classes may not be eligible for purchase by
all investors. Other share classes may have higher sales and management
fees, which can result in differences in performance.
Investing involves risk, including the possible loss of principal.
The value of your investment will fluctuate over time and you may gain
or lose money. A fund’s performance may be affected by risks that
include those associated with non-diversification, non-investment grade
debt securities, high-yield/high-risk securities, undervalued or
overlooked companies, investments in specific industries or countries
and potential conflicts of interest. Additional risks to funds may
include those associated with investing in foreign securities, emerging
markets, initial public offerings, real estate investment trusts
(“REITs”), derivatives, short sales, commodity linked investments and
companies with relatively small market capitalizations. Each fund has
different risks. Please see a Janus prospectus for more information
about risks, fund holdings and other details.
The Overall Morningstar Rating™ for a fund is derived from a
weighted-average of the performance figures associated with its three-,
five- and ten-year (if applicable) Morningstar Rating™metrics.
For each fund with at least a three-year history, Morningstar calculates
a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return
measure that accounts for variation in a fund’s monthly performance
(including the effects of sales charges, loads and redemption fees),
placing more emphasis on downward variations and rewarding consistent
performance. The top 10% of the funds in each category receive 5 stars,
the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next
22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share
class is counted as a fraction of one fund within this scale and rated
separately, which may cause slight variations in the distribution
percentages). The Morningstar Rating™ may differ among share classes of
a mutual fund as a result of different sales loads and/or expense
structures. It may be based, in part, on the performance of a
predecessor fund. Morningstar does not rate funds with less than a
three-year performance history.
The Morningstar percentile ranking is based on the fund’s total-return
percentile rank relative to all funds that have the same category for
the same time period. The highest (or most favorable) percentile rank is
1%, and the lowest (or least favorable) percentile rank is 100%.
Morningstar total-return includes both income and capital gains or
losses and is not adjusted for sales charges. The top-performing funds
in a category will always receive a rank of 1.
Morningstar performance on an asset-weighted basis is calculated by
taking all funds and assigning the assets under management (“AUM”) in
each respective fund to either the 1st, 2nd, 3rd or 4th quartile bucket
based on each fund's respective Morningstar relative ranking. The total
AUM of each quartile’s bucket is then divided by complex-wide total AUM
to arrive at the respective percent of AUM in each bucket.
Please consider the charges, risks, expenses and investment
objectives carefully before investing. For a prospectus containing this
and other information, please call Janus at (800) 525-3713 or download
the file from www.janus.com/info.
Read it carefully before you invest or send money.
Funds distributed by Janus Distributors LLC.
Certain statements in this press release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties, assumptions and other factors which may
cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Statements preceded by, followed by or that otherwise include the words
“believes,” “expects,” “anticipates,” “intends,” “projects,”
“estimates,” “plans,” “may increase,” “may fluctuate,” “forecast” and
similar expressions or future or conditional verbs such as “will,”
“should,” “would,” “may” and “could” are generally forward-looking in
nature and not historical facts. Any statements that refer to
expectations or other characterizations of future events, circumstances
or results are forward-looking statements. These statements are based on
the beliefs and assumptions of Company management based on information
currently available to management.
Various risks, uncertainties, assumptions and factors that could cause
future results to differ materially from those expressed by the
forward-looking statements included in this press release include, but
are not limited to, risks specified in the Company's Annual Report on
Form 10-K for the year ended December 31, 2015, included under headings
such as “Risk Factors” and “Management's Discussion and Analysis of
Financial Condition and Results of Operations” and in other filings and
furnishings made by the Company with the SEC from time to time. In light
of these risks, uncertainties, assumptions and factors, the
forward-looking events discussed in this press release may not occur.
Many of these factors are beyond the control of the Company and its
management. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated, or
if no date is stated, as of the date of this press release. Except for
the Company's ongoing obligations to disclose material information under
the applicable securities law and stock exchange rules, the Company
undertakes no obligation to release publicly any revisions to any
forward-looking statements, to report events or to report the occurrence
of unanticipated events.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170124005419/en/
Janus Capital Group Inc.
Investor Relations Contact:
John
Groneman, 303-336-7466
john.groneman@janus.com
or
Media
Contact:
Erin Passan, 303-394-7681
erin.passan@janus.com
Source: Janus Capital Group Inc.