<PAGE>
EXHIBIT 99.1
[BlackRock letterhead]
CONTACT:
Paul L. Audet: (212) 409-3555
[email protected]
--------------------
BlackRock, Inc. Reports Record Net Income for the Fourth Quarter and Full Year
2000 of $24.5 million and $87.4 million with Record Assets Under Management at
December 31, 2000 of $203.8 billion. Diluted Earnings per Share for the Fourth
Quarter and Full Year was $.38 and $1.35, Respectively.
New York, New York--January 16, 2001, BlackRock, Inc. (NYSE:BLK) today
reported record net income for the fourth quarter ended December 31, 2000 of
$24.5 million, a 43% increase compared with $17.2 million earned in the fourth
quarter of 1999 and an 8% increase compared with $22.8 million earned in the
third quarter of 2000. Diluted earnings per share for the fourth quarter was
$0.38, a 41% increase compared with $0.27 for the fourth quarter of 1999.
Operating income of $39.7 million increased $10.0 million or 34% and $2.7
million or 7% compared with $29.7 million and $36.9 million earned in the fourth
quarter of 1999 and the third quarter of 2000, respectively (See Table 1).
Net income for the year ended December 31, 2000 was $87.4 million, a 47%
increase compared with $59.4 million earned in 1999. Diluted earnings per share
for the year ended December 31, 2000 was $1.35, a 36% increase compared with
$0.99 (pro-forma) for the year ended December 31, 1999. Operating income for
the year ended December 31, 2000 was $143.0 million, a $32.1 million or 29%
increase compared with $110.9 million earned in 1999.
"This was a year of great achievement for BlackRock as we finished 2000 with
strong performances in both earnings and assets under management despite one of
the more challenging market environments to face our industry in over a decade,"
commented Laurence D. Fink, Chairman and CEO. "I am particularly proud of our
investment returns for fixed income and in the overall performance of the
European Equity team. While the financial markets continue to experience
significant volatility, BlackRock's institutional business growth and asset mix
represent a solid foundation upon which to expand earnings in 2001."
Fourth Quarter and Full Year Highlights
---------------------------------------
* Assets under management rose to $203.8 billion, an increase of 24% from the
$164.5 billion reported at December 31, 1999 and 7% above the September 30,
2000 total of $190.8 billion.
<PAGE>
* Net asset growth excluding market changes for the fourth quarter and
full year of 2000 was $11.8 billion and $33.0 billion, respectively
versus $14.8 billion and $32.7 billion for the comparable periods in
1999. Net asset growth for 2000 represented 84% of the increase in
assets under management since December 31, 1999.
* Diluted cash earnings per share for the fourth quarter and full year
2000 were $.42 and $1.51, respectively, versus $.31 and $1.14 (pro-
forma) for the comparable periods in 1999.
* BlackRock's operating margin for the fourth quarter was 35.9% compared
with 36.1% for the fourth quarter of 1999.
* Earnings before interest, taxes, depreciation and amortization (EBITDA)
for the fourth quarter and full year 2000 was $47.7 million and $170.8
million, respectively, versus $35.3 million and $132.5 million for the
comparable periods in 1999.
Total revenue for the quarter ended December 31, 2000 increased $27.8 million or
28% to $128.5 million compared with the fourth quarter of 1999 primarily due to
a 52% increase in separate account revenue. The substantial increase in
separate account revenue resulted from increases in fixed income and equity
assets of $31.8 billion and $5.6 billion, respectively, as well as higher
performance fees on the Company's alternative products. Alternative product
performance fee revenue for the second half of 2000 was approximately $20
million above expected levels assuming targeted investment performance, with
compensation and benefit accruals higher by approximately $17 million. Total
revenue for the year ended December 31, 2000 was $476.9 million, a $95.9 million
or 25% increase compared to the year ended December 31, 1999. The year-to-year
increase was attributable to a $69.5 million or 45% increase in separate account
revenue, a $14.5 million or 7% increase in mutual fund revenue and a $4.8
million or 25% increase in other income largely due to increased sales of risk
management and technology products.
Compared with the third quarter of 2000, revenue increased $.8 million or 1% in
the fourth quarter of 2000. Mutual fund revenue declined $1.6 million or 3%
largely as a result of lower assets under management in the BlackRock Funds due
to market depreciation of equities which was partially offset by strong asset
growth in the Provident Institutional Funds. Separate account fees increased
$2.5 million or 4% primarily due to higher levels of fixed income assets.
2001 Outlook
------------
At the present time, BlackRock expects that first quarter and full year 2001
earnings will be consistent with a range of $.37-$.39 per diluted share and
$1.55-$1.65 per diluted share, respectively.
2
<PAGE>
About BlackRock--BlackRock is one of the largest publicly traded investment
management firms in the United States with $204 billion of assets under
management as of December 31, 2000. BlackRock manages assets on behalf of more
than 3,000 institutions and 160,000 individuals worldwide through a variety of
equity, fixed income, liquidity and alternative investment separate accounts and
mutual funds, including the Company's flagship fund families, BlackRock Funds
and Provident Institutional Funds. In addition, the company provides risk
management and technology services to a growing number of institutional
investors under the BlackRock Solutions name. Clients are served from the
Company's headquarters in New York City, as well as offices in Philadelphia, PA,
Wilmington, DE, Edinburgh, Scotland and Tokyo, Japan. BlackRock is a member of
The PNC Financial Services Group, Inc. (NYSE:PNC), one of the largest
diversified financial services organizations in the United States, and is
majority-owned by PNC and by BlackRock employees.
Forward Looking Statements--The 2001 Outlook section of this press release is a
forward-looking statement within the meaning of the Private Securities
Litigation Reform Act. Forward-looking statements with respect to the Company's
future financial or business performance or conditions or strategies and other
financial and business matters may also be included in other portions of this
press release and in other statements the Company makes. Forward-looking
statements are typically identified by words or phrases such as "likely,"
"believe," "expect" "anticipate," "intend," "assume," "target," "estimate,"
"continue," "position," "prospects," "strategy," "outlook," "trend," and
variations of such words and similar expressions, or future or conditional verbs
such as "will," "would," "should," "could," "may" or similar expressions.
BlackRock cautions that these forward-looking statements are subject to numerous
assumptions, risks and uncertainties, all of which change over time. Forward-
looking statements speak only as of the date they are made, and BlackRock
assumes no duty to update forward-looking statements. Actual results could
differ materially from those anticipated in these forward-looking statements and
future results could differ materially from historical performance.
The following factors, among others, could cause actual results to differ
materially from forward-looking statements or historical performance: the
introduction, withdrawal, success and timing of business initiatives and
strategies; economic conditions; changes in interest rates and financial and
capital markets; the investment performance of BlackRock's advised or sponsored
investment products and separately managed accounts; competitive conditions;
capital improvement projects; future acquisitions; and the impact, extent and
timing of technological changes and legislative and regulatory actions and
reforms.
Reference is made to BlackRock's Annual Report on Form 10-K for the year ended
December 31, 1999 and subsequent reports filed with the Securities and Exchange
Commission which identify additional factors that can affect forward-looking
statements.
3
<PAGE>
TABLE 1
BlackRock, Inc.
Financial Highlights
($ in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
Three months ended Variance vs.
---------------------------------------- --------------------------------------
December 31, September 30, December 31, 1999 September 30, 2000
-------------------------- ------------- --------------------------------------
2000 1999 2000 Amount % Amount %
-------------------------- ------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total revenue $ 128,540 $ 100,782 $ 127,701 $ 27,758 28% $ 839 1%
Total expense $ 88,868 $ 71,123 $ 90,775 $ 17,745 25% ($1,907) -2%
Operating income $ 39,672 $ 29,659 $ 36,926 $ 10,013 34% $ 2,746 7%
Net income $ 24,546 $ 17,209 $ 22,761 $ 7,337 43% $ 1,785 8%
Diluted earnings per share $ 0.38 $ 0.27 $ 0.35 $0.11 41% $ 0.03 9%
Diluted cash earnings per share (b) $ 0.42 $ 0.31 $ 0.39 $0.11 35% $ 0.03 8%
Average diluted shares outstanding 64,727,763 64,185,316 64,651,300 542,447 1% 76,463 0%
EBITDA (c) $ 47,745 $ 35,299 $ 44,580 $ 12,446 35% $ 3,165 7%
Operating margin (d) 35.9% 36.1% 34.1%
Assets under management ($ in millions) $ 203,769 $ 164,517 $ 190,808 $ 39,252 24% $ 12,961 7%
</TABLE>
<TABLE>
<CAPTION>
Year ended
December 31, Variance
-------------------------- ---------------------------
2000 1999 Amount %
------------------------- ------------- -----------
<S> <C> <C> <C> <C>
Total revenue $ 476,872 $ 380,981 $ 95,891 25%
Total expense $ 333,834 $ 270,038 $ 63,796 24%
Operating income $ 143,038 $ 110,943 $ 32,095 29%
Net income $ 87,361 $ 59,417 $ 27,944 47%
Diluted earnings per share $ 1.35 $ 1.04 $ 0.31 30%
Pro-forma diluted earnings per share (a) $ 1.35 $ 0.99 $ 0.36 36%
Diluted cash earnings per share (b) $ 1.51 $ 1.21 $ 0.30 25%
Pro-forma diluted cash earnings per share $ 1.51 $ 1.14 $ 0.37 32%
(a) (b)
Average diluted shares outstanding 64,590,707 57,268,912 7,321,795 13%
EBITDA (c) $ 170,767 $ 132,541 $ 38,226 29%
Operating margin (d) 35.7% 36.7%
Assets under management ($ in millions) $ 203,769 $ 164,517 $ 39,252 24%
</TABLE>
(a) Based on adjusting 1999 net income to reflect the after-tax interest expense
benefit of retiring $115 million of debt (net offering proceeds) on October
1, 1999 and adjusting weighted-average diluted shares outstanding to reflect
the offering of 9 million shares on October 1, 1999.
(b) Net income plus amortization expense for the period divided by average
diluted shares outstanding.
(c) Earnings before interest, taxes, depreciation and amortization.
(d) Operating income divided by total revenue less fund administration and
servicing costs - affiliates.
4
<PAGE>
TABLE 2
BlackRock, Inc.
Condensed Consolidated Statements of Income
(Dollar amounts in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
Three months ended Year ended
------------------ -------------
December 31, December 31,
------------------ -------------
2000 1999 % Change 2000 1999 % Change
---- ---- -------- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
Revenue
Investment advisory and administration fees:
Mutual funds $ 56,186 $ 53,427 5.2% $ 229,259 $ 214,728 6.8%
Separate accounts 66,008 43,569 51.5 223,521 154,046 45.1
BAI - - NM - (7,072) NM
------------------------- ------- ------------------------- -------
Total investment advisory and administration fees 122,194 96,996 26.0 452,780 361,702 25.2
Other income 6,346 3,786 67.6 24,092 19,279 25.0
------------------------- ------- ------------------------- -------
Total revenue 128,540 100,782 27.5 476,872 380,981 25.2
------------------------- ------- ------------------------- -------
Expense
Employee compensation and benefits 53,062 36,890 43.8 189,684 138,025 37.4
BAI incentive compensation - - NM - (5,387) NM
Fund administration and servicing costs - affiliates 18,164 18,608 (2.4) 75,686 78,666 (3.8)
General and administration 15,029 13,212 13.8 58,311 49,081 18.8
Amortization of intangible assets 2,613 2,413 8.3 10,153 9,653 5.2
------------------------- ------- ------------------------- -------
Total expense 88,868 71,123 24.9 333,834 270,038 23.6
------------------------- ------- ------------------------- -------
Operating income 39,672 29,659 33.8 143,038 110,943 28.9
Non-operating income (expense)
Interest income 3,070 1,233 149.0 7,734 3,445 124.5
Interest expense - affiliates (201) (700) (71.3) (855) (10,938) (92.2)
------------------------- ------- ------------------------- -------
2,869 533 438.3 6,879 (7,493) 191.8
Income before income taxes $ 42,541 $ 30,192 40.9 $ 149,917 $ 103,450 44.9
Income taxes 17,995 12,983 38.6 62,556 44,033 42.1
------------------------- ------- ------------------------- -------
Net income $ 24,546 $ 17,209 42.6 $ 87,361 $ 59,417 47.0
========================= ======= ========================= =======
Weighted-average shares outstanding
Basic 63,930,387 63,864,382 0.1% 63,886,353 57,057,014 12.0%
Diluted 64,727,763 64,185,316 0.8% 64,590,707 57,268,912 12.8%
Earnings per share
Basic $0.38 $0.27 40.7% $1.37 $1.04 31.7%
Diluted $0.38 $0.27 40.7% $1.35 $1.04 29.8%
</TABLE>
NM - Not meaningful
5
<PAGE>
TABLE 3
BlackRock, Inc.
Condensed Consolidated Statements of Financial Condition
(Dollar amounts in thousands)
(unaudited)
December 31, December 31,
2000 1999
---- ----
Assets
Cash and cash equivalents $192,590 $157,129
Accounts receivable 83,284 65,837
Investments 13,316 2,255
Property and equipment, net 45,598 22,677
Intangible assets, net 192,142 194,257
Other assets 10,073 5,427
-------- --------
Total assets $537,003 $447,582
======== ========
Liabilities and stockholders' equity
Note and loan payable to affiliates $ - $ 28,200
Accrued compensation 130,101 90,350
Accounts payable and accrued liabilities 27,014 44,655
Acquired management contract obligation 8,040 -
Other liabilities 3,607 3,851
-------- --------
Total liabilities 168,762 167,056
Stockholders' equity 368,241 280,526
-------- --------
Total liabilities and stockholders' equity $537,003 $447,582
======== ========
6
<PAGE>
TABLE 4
BlackRock, Inc.
Condensed Consolidated Statements of Cash Flows
(Dollar amounts in thousands)
(unaudited)
<TABLE>
<CAPTION>
Year ended December 31,
-----------------------
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
Cash flows from operating activities
Net income $ 87,361 $ 59,417 $ 35,615
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 19,995 18,153 12,852
Stock-based compensation 868 100 1,737
Tax benefit from stock options exercised 610 - -
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (18,074) 42,484 (70,364)
Decrease (increase) in receivable from affiliate 627 (1,665) 1,422
(Increase) decrease in other assets (4,646) (3,426) 192
Increase (decrease) in accrued compensation 39,751 (19,979) 61,597
(Decrease) increase in accounts payable and accrued liabilities (16,936) 19,845 11,126
Decrease in accrued interest payable to affiliates (705) (470) (483)
(Decrease) increase in other liabilities (244) 1,867 41
-------------------------------
Cash provided by operating activities 108,607 116,326 53,735
Cash flows from investing activities
Purchase of property and equipment (32,761) (18,925) (8,414)
(Purchase)/sale of investments (12,898) 29 3,400
-------------------------------
Cash used in investing activities (45,659) (18,896) (5,014)
Cash flows from financing activities
Repayment of note and loan payable to affiliates (28,200) (168,800) (28,232)
Issuance of class A common stock 222 117,495 -
Issuance of class B common stock 264 - 34,214
Expenses related to issuance of class A common stock (91) (2,646) -
Capital contribution from PNC - - 2,063
Purchase of treasury stock (16) (550) (200)
Reissuance of treasury stock - 750 -
Stock options exercised 742 - -
Forgiveness of intercompany allocations - - 99
Dividends to PNC - - (12,300)
-------------------------------
Cash used in financing activities (27,079) (53,751) (4,356)
Effect of exchange rate changes on cash and cash equivalents (408) - -
Net increase in cash and cash equivalents 35,461 43,679 44,365
Cash and cash equivalents, beginning of period 157,129 113,450 69,085
-------------------------------
Cash and cash equivalents, end of period $192,590 $ 157,129 $113,450
===============================
</TABLE>
7
<PAGE>
TABLE 5
BlackRock, Inc.
Assets Under Management
(Dollar amounts in millions)
(unaudited)
<TABLE>
<CAPTION>
Year ended
December 31,
2000 1999 1998
------------- -------------- -----------
<S> <C> <C> <C>
Separate Accounts
Fixed income* $107,022 $ 75,206 $ 52,869
Liquidity 17,996 20,934 13,826
Equity* 8,725 3,080 2,417
------------- -------------- -----------
Subtotal 133,743 99,220 69,112
------------- -------------- -----------
Mutual Funds
Fixed income 13,317 13,318 13,888
Liquidity 43,190 36,587 35,555
Equity 13,519 15,392 12,087
------------- -------------- -----------
Subtotal 70,026 65,297 61,530
------------- -------------- -----------
Total $203,769 $164,517 $130,642
============= ============== ===========
</TABLE>
* includes alternative investment products.
Component Changes in Assets Under Management
<TABLE>
<CAPTION>
Year ended
December 31,
2000 1999 1998
------------- -------------- -----------
<S> <C> <C> <C>
Separate Accounts *
Beginning assets under management $ 99,220 $ 69,112 $ 51,043
Net subscriptions 25,890 30,183 15,166
Market appreciation (depreciation) 8,633 (75) 2,903
------------- -------------- -----------
Ending assets under management 133,743 99,220 69,112
Mutual Funds
Beginning assets under management 65,297 61,530 54,370
Net subscriptions 7,132 2,524 5,674
Market appreciation (depreciation) (2,403) 1,243 1,486
------------- -------------- -----------
Ending assets under management 70,026 65,297 61,530
------------- -------------- -----------
Total $203,769 $164,517 $130,642
============= ============== ===========
Net subscriptions $ 33,022 $ 32,707 $ 20,840
% of Change in AUM from net subscriptions 84.1% 96.6% 82.6%
</TABLE>
* includes alternative investment products.
8
<PAGE>
BlackRock, Inc.
Assets Under Management
Quarterly Trend
(Dollar amounts in millions)
(unaudited)
<TABLE>
<CAPTION>
Quarter Ended
---------------------------------------------------------------------
1999 2000 Year ended
---- -----------------------------------------------------
December 31 March 31 June 30 September 30 December 31 December 31, 2000
--------------------------------------------------------------------- -------------------
<S> <C> <C> <C> <C> <C> <C>
Separate Accounts
Fixed Income*
Beginning assets under management $69,266 $ 75,206 $ 79,825 $ 86,344 $ 99,600 $ 75,206
Net subscriptions 6,106 2,541 5,851 10,933 3,360 22,685
Market appreciation (depreciation) (166) 2,078 668 2,323 4,062 9,131
--------------------------------------------------------------------- -------------------
Ending assets under management 75,206 79,825 86,344 99,600 107,022 107,022
--------------------------------------------------------------------- -------------------
Liquidity
Beginning assets under management 17,310 20,934 19,110 17,707 15,990 20,934
Net subscriptions (redemptions) 3,602 (1,847) (1,423) (1,737) 1,979 (3,028)
Market appreciation 22 23 20 20 27 90
--------------------------------------------------------------------- -------------------
Ending assets under management 20,934 19,110 17,707 15,990 17,996 17,996
--------------------------------------------------------------------- -------------------
Equity*
Beginning assets under management 2,454 3,080 6,414 7,621 7,509 3,080
Net subscriptions 35 3,113 1,387 451 1,282 6,233
Market appreciation (depreciation) 591 221 (180) (563) (66) (588)
--------------------------------------------------------------------- -------------------
Ending assets under management 3,080 6,414 7,621 7,509 8,725 8,725
--------------------------------------------------------------------- -------------------
Total Separate Accounts
Beginning assets under management 89,030 99,220 105,349 111,672 123,099 99,220
Net subscriptions 9,743 3,807 5,815 9,647 6,621 25,890
Market appreciation 447 2,322 508 1,780 4,023 8,633
--------------------------------------------------------------------- -------------------
Ending assets under management $99,220 $105,349 $111,672 $123,099 $133,743 $133,743
===================================================================== ===================
Mutual Funds
BlackRock Funds
Beginning assets under management $24,453 $ 27,339 $ 29,280 $ 28,262 $ 27,819 $ 27,339
Net subscriptions (redemptions) 1,577 994 (168) (455) 1,463 1,834
Market appreciation (depreciation) 1,309 947 (850) 12 (2,923) (2,814)
--------------------------------------------------------------------- -------------------
Ending assets under management 27,339 29,280 28,262 27,819 26,359 26,359
--------------------------------------------------------------------- -------------------
BlackRock Global Series
Beginning assets under management - - - - 54 -
Net subscriptions - - - 54 18 72
Market appreciation - - - - 3 3
--------------------------------------------------------------------- -------------------
Ending assets under management - - - 54 75 75
--------------------------------------------------------------------- -------------------
PIF
Beginning assets under management 22,387 25,554 25,755 25,615 27,580 25,554
Net subscriptions (redemptions) 3,167 201 (140) 1,965 8,758 10,784
Market appreciation - - - - - -
--------------------------------------------------------------------- -------------------
Ending assets under management 25,554 25,755 25,615 27,580 36,338 36,338
--------------------------------------------------------------------- -------------------
Closed End
Beginning assets under management 7,579 7,340 7,560 7,583 7,634 7,340
Net redemptions (130) - (30) - (954) (984)
Market appreciation (depreciation) (109) 220 53 51 84 408
--------------------------------------------------------------------- -------------------
Ending assets under management 7,340 7,560 7,583 7,634 6,764 6,764
--------------------------------------------------------------------- -------------------
Short Term Investment Funds (STIF)
Beginning assets under management 4,653 5,064 4,629 4,205 4,622 5,064
Net subscriptions (redemptions) 411 (435) (424) 417 (4,132) (4,574)
Market appreciation - - - - - -
--------------------------------------------------------------------- -------------------
Ending assets under management 5,064 4,629 4,205 4,622 490 490
--------------------------------------------------------------------- -------------------
Total Mutual Funds
Beginning assets under management 59,072 65,297 67,224 65,665 67,709 65,297
Net subscriptions (redemptions) 5,025 760 (762) 1,981 5,153 7,132
Market appreciation (depreciation) 1,200 1,167 (797) 63 (2,836) (2,403)
--------------------------------------------------------------------- -------------------
Ending assets under management $65,297 $ 67,224 $ 65,665 $ 67,709 $ 70,026 $ 70,026
===================================================================== ===================
</TABLE>
* includes alternative investment products.
9
