Janus Capital Carries a Modestly Leveraged Balance Sheet in 2Q15
Janus Capital Group Holds Steady despite Odds against Rate Hike
Strong balance sheet
Janus Capital Group (JNS) saw its balance sheet contract marginally in 2Q15. The company’s total assets stood at $2.76 billion as of June 30, 2015, down from $2.79 billion as of December 31, 2014. Its cash balance fell by $56 million as a result of shifting funds to noncurrent assets in advance of the Kapstream transaction. And the company’s investment securities expanded by $20 million thanks to the launch of its Adaptive Global Allocation products.
Janus Capital Group’s net debt fell to $202 million in 2Q15, down from $239 million in the last fiscal. The company’s debt-to-equity ratio came in at 0.28x, unchanged from the previous quarter.
JNS generated total cash flow of $217 million over the last twelve months. During 2Q15, cash flow from operations stood at $87.3 million as compared to -$58.9 million in the previous quarter and $65.9 million in the same quarter last year. Cash flow was impacted by a $3 million increase in the company’s operating expenses to $190 million. Deal costs associated with the firm’s acquisition of Kapstream largely accounted for the increase.
Dividends and repurchases
Janus Capital Group repurchased stock while it was believed to be undervalued. During 2Q15, the company repurchased 628,992 units of its common stock, worth $11.2 million, at an average price of $17.85. The company distributed profits to its shareholders through $11 million in buybacks and $17 million in dividends during the quarter.
JNS’s operating margin stood at 30% in 2Q15. Here’s how its peers compared:
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BlackRock (BLK) – 40%
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T. Rowe Price Group (TROW) – 47%
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Bank of New York Mellon (BK) – 23%
Together, these companies form 3.5% of the Financial Select Sector SPDR Fund (XLF).
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