VCTR stock formed a candle over candle ( Heikin Ashi ) reversal on August 7, 2020, in the daily time frame.
On August 5, 2020, Victory Capital reported financial results for the quarter ended June 30, 2020.
“I am pleased to report that Victory Capital produced record financial results in a number of different areas for the second quarter and first half of the year,” said David Brown, Chairman and Chief Executive Officer. “Notwithstanding a challenging market environment and extreme volatility, we generated record revenue, profit margins and net earnings during the first six months of 2020. This is a testament not only to our business model, which is designed to deliver robust profitability in all market conditions, but also to our ability to successfully execute on our growth strategy.
“Our Investment Franchises generated outstanding investment performance during the second quarter, with 68% of total AUM outperforming benchmarks for the three-year period ended June 30, 2020. For the five-year period, 69% of our total AUM has outperformed associated benchmarks.
“The 20% cash dividend increase announced today by our Board, reflects strong current and projected cash flows. Our dividend and share repurchase program remain ancillary components of our capital allocation strategy. During the quarter, most of our free cash flow was used to reduce debt in preparation for potential acquisition opportunities that we are currently evaluating.
“To date, we have decreased outstanding debt by $240 million since the origination of our term loan in July of 2019. Rapid debt reduction, combined with lower interest rates and the successful repricing of the debt in January to reduce the interest rate spread by 75 basis points, resulted in a 15% decline in interest expense and other financing costs compared with the first quarter of 2020.
“Integration of the business we acquired from USAA remains on track and is nearing completion, as we pivot toward the future growth opportunity from the acquisition. We are currently in the process of launching a new digital experience to enhance service to members and elevate marketing opportunities in this direct-to-consumer channel.
“In July, Victory Capital became a signatory to the United Nations-supported Principles for Responsible Investment (PRI), broadening our commitment to responsible investing. This was an important milestone formalizing what our autonomous Investment Franchises and Solutions Platform have been doing for many years. Each of our Investment Franchises follows an approach to incorporating ESG considerations that best suits its own investment process or the objectives of its clients. As always, serving the needs of our clients remains our top priority.”