Janus Capital Group Inc.’s (JNS) fourth-quarter earnings per share came in at 20 cents, a penny higher than the Zacks Consensus Estimate of 19 cents, primarily due to higher average assets under management (AUM) and decreased operating and interest expenses. This also came in significantly higher than the 15 cents reported in the sequential quarter and 12 cents in the year-ago quarter. Net income was $37 million, compared to $8.2 million in the sequential quarter.
Total revenues increased 10.1% sequentially and 41.5% year over year to $250.6 million. The increase reflects growth in investment management fees, performance fees and shareowner servicing fees.
Total operating expenses increased 32.6% year over year but decreased 11.7% to $174.9 million. Operating margin was 30.2%, compared to 13% in the sequential quarter and 25.5% in the year-ago quarter.
For the full-year 2009, Janus Capital’s net loss from continuing operations was $757.1 million or $4.55 per share, compared with a net income of $138.4 million or 86 cents per share in 2008. The reported year included a net charge of $5.03 per share as a result of goodwill and intangible asset impairment charges, legal settlements and severance, partially offset by the gain associated with the debt tender. Total revenues fell 22.3% year over year to $848.7 million due to lower income from average AUM. Average AUM fell 22.8% year over year to $134.5 million in 2009.
At Dec 31, 2009, Janus Capital’s total AUM was $159.7 billion, compared with $151.8 billion at Sept 30, 2009 and $123.5 billion at Dec 31, 2008. Average AUM during the reported quarter increased 8.5% sequentially and 24.9% year over year to $155.2 billion.
The increase in overall assets reflected $8 billion of net market appreciation and breakeven net flows. In the company’s three investment boutiques, long-term net inflows at Janus and Perkins’ were $1.5 billion and $0.9 billion, respectively, which were partially offset by INTECH long-term net outflows of $2.4 billion. The year-over-year increase in assets was primarily the result of $41.5 billion of net market appreciation.
At Dec 31, 2009, Janus Capital had stockholders’ equity of $1 billion, cash and investments of $432 million and $792 million of outstanding debt.
At the end of Dec 2009, Janus Capital managed $159.7 billion in assets for shareholders, clients and institutions across the globe.
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