Victory Capital (NASDAQ: VCTR) reported Q3 EPS of $0.91, $0.02 better than the analyst estimate of $0.89. Revenue for the quarter came in at $215 million versus the consensus estimate of $214.06 million.

• Total AUM of $145.8 billion
• Long-term net inflows of $726 million; long-term gross flows of $7.5 billion
• GAAP operating margin of 25.9%; GAAP earnings of $0.35 per diluted share
• Adjusted net income with tax benefit per diluted share of $0.911
• Adjusted EBITDA margin of 44.8%1
• Debt reduced by $63 million
• Board authorizes regular quarterly cash dividend of $0.05 per share

“I’m pleased to report that Victory Capital continued to deliver excellent financial results in the third quarter of 2019, our first quarter post the acquisition of USAA Asset Management Company,” said David Brown, Chairman and Chief Executive Officer. “Revenue and adjusted net income more than doubled sequentially and adjusted EBITDA margin expanded to a record 44.8%. This marks our third consecutive quarter of meaningful margin expansion, which demonstrates the power of our integrated business model.

“Total AUM grew to $145.8 billion as of September 30, 2019. Long-term net inflows were positive for the second consecutive quarter at $726 million and are $3.3 billion year to date. Long-term gross flows were $7.5 billion for the quarter.

“Our integration efforts following the close of the USAA Asset Management acquisition continue to progress well, and we expect to achieve our previously disclosed cost synergies ahead of schedule. The direct channel for USAA members was reopened on July 1, 2019, and our call center, which is staffed largely by former USAA employees, is actively serving members’ investment needs.

“We paid down $63 million of debt during the quarter. Subsequent to quarter-end, we paid down an additional $40 million, bringing our total debt reduction since July 1, 2019, to $103 million. Additionally, today, we declared a second consecutive quarterly cash dividend of $0.05 per share.

“Looking ahead, our long-term corporate vision remains focused on leveraging our full suite of strategies to drive organic growth while maintaining the capital flexibility to pursue strategic acquisitions that we believe will augment our existing business. As in the past, serving the needs of our clients remains our top priority.”

For earnings history and earnings-related data on Victory Capital (VCTR) click here.