Company Announcements

Selected Income Statement Data

(in thousands, except per share figures and percentages)

Three Months Ended March 31,

2022

2021

%
Change

Revenue

$                 42,256

$                 39,014

8%

     Compensation and related costs, excluding deferred compensation
     expense (benefit)

18,647

16,815

11%

     Deferred compensation expense (benefit)

(1,179)

3,103

NM

     Other expenses

5,715

5,564

3%

Total operating expenses

23,183

25,482

(9)%

Net operating income

19,073

13,532

41%

Investment income (loss), net

(7,592)

5,663

NM

Net income before taxes

11,481

19,195

(40)%

Income tax expense

(3,206)

(4,933)

(35)%

Net income

8,275

14,262

(42)%

Net loss (income) attributable to redeemable noncontrolling interest

855

(554)

NM

Net income attributable to common shareholders

$                   9,130

$                 13,708

(33)%

Earnings per share attributable to common shareholders - diluted

$                     2.87

$                     4.34

(34)%

Selected Balance Sheet Data

(in thousands, except per share figures)

As of

March 31, 2022

December 31, 2021

Total cash and corporate investments held directly by DHCM

$                   164,338

$                   191,780

Shareholders' equity

182,610

184,423

Book value per share

$                        57.22

$                        58.15

Change in Assets Under Management

For the Three Months Ended March 31,

(in millions)

AUM at beginning of the period

$                                   31,028

$                                   26,411

Net cash inflows (outflows)

    proprietary funds

173

1,877

    sub-advised funds

(25)

42

    separately managed accounts

89

(175)

237

1,744

Net market appreciation (depreciation) and income

(943)

2,427

Increase (decrease) during the period

(706)

4,171

AUM at end of the period

$                                   30,322

$                                   30,582

Average AUM during the period

$                                   30,459

$                                   28,163

Net Cash Inflows Further Breakdown

For the Three Months Ended March 31,

(in millions)

Net cash inflows

     Equity

$                                        193

$                                     1,256

     Fixed Income

44

488

$                                        237

$                                     1,744

Three Months Ended March 31,

(in thousands, except percentages and per share data)

2021

Total revenue

$   42,256

$   39,014

Net operating income, GAAP basis

$   19,073

$   13,532

     Non-GAAP adjustment:

          Gains (losses) on deferred compensation plan investments, net⁽¹⁾

(1,179)

3,103

Net operating income, as adjusted, non-GAAP basis⁽²⁾

17,894

16,635

     Non-GAAP adjustment:

          Tax provision on net operating income, as adjusted, non-GAAP basis⁽³⁾

(4,650)

(4,402)

Net operating income, as adjusted, after tax, non-GAAP basis⁽⁴⁾

$   13,244

$   12,233

Net operating income, as adjusted after tax per diluted share, non-GAAP basis⁽⁵⁾

$       4.16

$       3.87

Diluted weighted average shares outstanding, GAAP basis

3,186

3,157

Operating profit margin, GAAP basis

45 %

35 %

Operating profit margin, as adjusted, non-GAAP basis⁽⁶⁾

42 %

43 %

⁽¹⁾ Gains (losses) on deferred compensation plan investments, net: The gain (loss) on deferred compensation plan investments,
which increases (decreases) deferred compensation expense included in operating income, is removed from operating income in
the calculation because it is offset by an equal amount in investment income (loss) below net operating income on the income
statement, and thus, has no impact on net income attributable to the Company.

⁽²⁾ Net operating income, as adjusted: This non-GAAP measure represents the Company's net operating income adjusted to
exclude the impact on compensation expense of gains and losses on investments in the deferred compensation plan.

⁽³⁾ Tax provision on net operating income, as adjusted: This non-GAAP measure represents the tax provision, excluding the impact
of investment related activity, and is calculated by applying the unconsolidated effective tax rate to net operating income, as adjusted.

⁽⁴⁾ Net operating income, as adjusted, after tax: This non-GAAP measure deducts from the net operating income, as adjusted, the tax provision on net operating income, as
adjusted.

⁽⁵⁾ Net operating income, as adjusted after tax per diluted share: This non-GAAP measure was calculated by dividing the net
operating income, as adjusted after tax, by diluted weighted average shares outstanding.

⁽⁶⁾  Operating profit margin, as adjusted: This non-GAAP measure was calculated by dividing the net operating income, as
adjusted, by total revenue.