================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the period ended April 30, 1998 Commission File No. 1-8100
EATON VANCE CORP.
(Exact name of registrant as specified in its charter)
MARYLAND 04-2718215
-------- ----------
State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
24 FEDERAL STREET, BOSTON, MASSACHUSETTS 02110
- ---------------------------------------- -----
(Address of principal executive offices) (Zip Code)
(617) 482-8260
--------------
(Registrant's telephone number, including area code)
NONE
----
(Former name, address and former fiscal year,
if changed since last record)
Indicate by check-mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [ X ] No [ ]
Shares outstanding as of April 30, 1998:
Voting Common Stock - 38,720 shares
Non-Voting Common Stock - 17,924,429 shares
Page 1 of 16 pages
================================================================================
<PAGE>
PART I
FINANCIAL INFORMATION
2
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets (unaudited)
<TABLE>
April 30, October 31,
1998 1997
----------------------------------------------
ASSETS (in thousands)
<S> <C> <C>
CURRENT ASSETS:
Cash and equivalents $ 23,992 $ 61,928
Short-term investments 77,072 78,592
Investment adviser fees and other receivables 3,240 7,204
Assets held for sale 8,539 8,539
Other current assets 11,948 7,905
----------------------------------------------
Total current assets 124,791 164,168
----------------------------------------------
OTHER ASSETS:
Investments:
Real estate 13,469 16,038
Investments in affiliates 7,423 7,918
Investment companies 14,885 10,763
Other investments 3,411 5,160
Other receivables 5,847 5,850
Deferred sales commissions 199,543 172,485
Equipment and leasehold improvements, net of
accumulated depreciation and amortization of $5,460
and $5,075 respectively 2,436 2,537
Goodwill, net of accumulated amortization of $3,879
and $3,559, respectively 2,137 2,456
----------------------------------------------
Total other assets 249,151 223,207
----------------------------------------------
Total assets $ 373,942 $ 387,375
==============================================
</TABLE>
See notes to the consolidated financial statements.
3
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Consolidated Balance Sheets (unaudited) (continued)
<TABLE>
April 30, October 31,
1998 1997
----------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY (in thousands, except per share figures)
<S> <C> <C>
CURRENT LIABILITIES:
Accrued compensation $ 8,511 $ 12,252
Accounts payable and accrued expenses 6,181 9,515
Dividend payable 2,160 2,226
Current portion of long-term debt 16,429 9,458
Other current liabilities 3,394 6,517
----------------------------------------------
Total current liabilities 36,675 39,968
----------------------------------------------
OTHER LIABILITIES:
6.22% Senior Note 35,714 42,857
Mortgage notes payable 8,008 8,107
----------------------------------------------
Total other liabilities 43,722 50,964
----------------------------------------------
Deferred income taxes 77,612 70,163
----------------------------------------------
Commitments and contingencies - -
SHAREHOLDERS' EQUITY:
Common stock, par value $.03125 per share -
Authorized, 160,000 shares,
Issued, 38,720 shares 1 1
Non-voting common stock, par value $.03125 per share -
Authorized, 23,840,000
shares, 560 577
Issued, 17,924,429 and 18,468,834 shares, respectively
Additional paid-in capital - 21,001
Unrealized gain on investments 709 2,445
Notes receivable from stock option exercises (3,027) (3,168)
Retained earnings 217,690 205,424
----------------------------------------------
Total shareholders' equity 215,933 226,280
----------------------------------------------
Total liabilities and shareholders' equity $ 373,942 $ 387,375
==============================================
</TABLE>
See notes to the consolidated financial statements.
4
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Consolidated Statements of Income (unaudited)
<TABLE>
Three Months Ended Six Months Ended
April 30, April 30,
1998 1997 1998 1997
-------------------------------------------------------------------
REVENUE: (in thousands, except per share figures)
<S> <C> <C> <C> <C>
Investment adviser and administration fees $ 36,523 $ 27,877 $ 69,828 $ 55,156
Distribution income 21,769 18,236 42,183 37,152
Income from real estate activities 1,266 1,074 2,375 1,837
Other income 435 551 880 1,405
-------------------------------------------------------------------
Total revenue 59,993 47,738 115,266 95,550
-------------------------------------------------------------------
EXPENSES:
Compensation of officers and employees 14,804 10,406 27,197 21,894
Amortization of deferred sales commissions 15,501 13,507 30,070 26,827
Other expenses 11,644 7,634 22,143 15,199
-------------------------------------------------------------------
Total expenses 41,949 31,547 79,410 63,920
-------------------------------------------------------------------
OPERATING INCOME 18,044 16,191 35,856 31,630
OTHER INCOME (EXPENSE):
Interest income 1,498 839 2,668 1,679
Interest expense (986) (984) (1,996) (1,886)
Gain (loss) on sale of investments 247 (152) 2,965 1,150
Equity in net income (loss) of affiliates 34 (70) (66) 33
Impairment loss on real estate - - (2,636) -
-------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 18,837 15,824 36,791 32,606
INCOME TAXES 7,451 6,361 14,452 13,116
-------------------------------------------------------------------
NET INCOME $ 11,386 $ 9,463 $ 22,339 $ 19,490
===================================================================
EARNINGS PER SHARE:
Basic earnings per share $ 0.63 $ 0.51 $ 1.22 $ 1.04
===================================================================
Diluted earnings per share $ 0.60 $ 0.49 $ 1.17 $ 1.01
===================================================================
DIVIDENDS DECLARED, PER SHARE $ 0.12 $ 0.10 $ 0.24 $ 0.20
===================================================================
Weighted average common shares outstanding 18,207 18,657 18,358 18,761
===================================================================
Weighted average common shares outstanding
assuming dilution 18,958 19,219 19,082 19,357
===================================================================
</TABLE>
See notes to the consolidated financial statements.
5
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Consolidated Statements of Cash Flows (unaudited)
<TABLE>
Six Months Ended
April 30,
1998 1997
----------------------------------------------
(in thousands)
<S> <C> <C>
Cash and equivalents, beginning of period $ 61,928 $ 55,583
----------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income 22,339 19,490
Adjustments to reconcile net income to net cash provided by
(used for) operating activities:
Equity in net (income) loss of affiliates 66 (33)
Dividend received from affiliate 430 621
Impairment loss on real estate 2,636 -
Deferred income taxes 11,223 (3,708)
Amortization of deferred sales commissions 30,070 26,827
Depreciation and other amortization 1,074 1,280
Payment of sales commissions (68,490) (31,312)
Capitalized sales charges received 11,298 15,229
Gain on sale of investments (2,965) (1,150)
Changes in other assets and liabilities (10,124) (12,216)
----------------------------------------------
Net cash provided by (used for) operating activities (2,443) 15,028
----------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to real estate, equipment and
leasehold improvements (654) (1,555)
Net (increase) decrease in notes and receivables
from affiliates 144 (833)
Net decrease in investment companies
and other investments (2,841) (224)
Proceeds from sale of investments 122,253 61,240
Purchase of short-term investments (120,277) (76,240)
----------------------------------------------
Net cash used for investing activities (1,375) (17,612)
----------------------------------------------
</TABLE>
See notes to the consolidated financial statements.
6
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Consolidated Statements of Cash Flows (unaudited) (continued)
<TABLE>
Six Months Ended
April 30,
1998 1997
----------------------------------------------
(in thousands)
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on notes payable $ (7,270) $ (131)
Revolving credit facility borrowings 7,000 -
Proceeds from the issuance of non-voting
common stock 3,698 2,410
Dividends paid (4,438) (3,772)
Repurchase of non-voting common stock (33,108) (9,614)
----------------------------------------------
Net cash used for financing activities (34,118) (11,107)
----------------------------------------------
Net decrease in cash and equivalents (37,936) (13,691)
----------------------------------------------
Cash and equivalents, end of period $ 23,992 $ 41,892
==============================================
SUPPLEMENTAL INFORMATION:
Interest paid $ 1,988 $ 1,886
==============================================
Income taxes paid $ 6,794 $ 24,381
==============================================
</TABLE>
See notes to the consolidated financial statements.
7
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
(1) BASIS OF PRESENTATION
In the opinion of management, the accompanying unaudited interim consolidated
financial statements of Eaton Vance Corp. (the "Company") include all
adjustments, consisting of normal recurring adjustments, necessary to present
fairly the results for the interim periods in accordance with generally accepted
accounting principles. Such financial statements have been prepared in
accordance with the instructions to Form 10-Q pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information and
footnote disclosures have been omitted pursuant to such rules and regulations.
As a result, these financial statements should be read in conjunction with the
audited consolidated financial statements and related notes included in the
Company's latest annual report on Form 10-K.
(2) INVESTMENTS IN AFFILIATES
The Company has a 21 percent investment in Lloyd George Management (BVI) Limited
(LGM), an independent investment management company based in Hong Kong that
manages a series of emerging market mutual funds sponsored by the Company. The
Company's investment in LGM was $7.5 million and $7.8 million at April 30, 1998
and October 31, 1997. At April 30, 1998, the Company's investment exceeded its
share of the underlying net assets of LGM by $5.8 million. This excess is being
amortized over a twenty-year period.
(3) STOCK OPTION PLANS
The Company has a Stock Option Plan administered by the Option Committee of the
Board of Directors under which stock options may be granted to key employees of
the Company. No stock options may be granted under the plan with an exercise
price of less than the fair market value of the stock at the time the stock
option is granted. The options expire five years from the date of grant and vest
over a two-, three- or four year period as stipulated in each grant.
Stock option transactions under the current plan and predecessor plans are
summarized as follows:
- -------------------------------------------------------------------------------
Weighted
Average
Shares Exercise Price
- -------------------------------------------------------------------------------
Balance, October 31, 1996 1,433,294 $ 11.73
Granted 496,396 21.02
Exercised (489,619) 9.63
Forfeited/Expired (118,826) 13.29
- -------------------------------------------------------------------------------
Balance, October 31, 1997 1,321,245 12.60
- -------------------------------------------------------------------------------
Granted 326,853 36.16
Exercised (234,130) 12.21
Forfeited/Expired (15,750) 30.32
- -------------------------------------------------------------------------------
Balance, April 30, 1998 1,398,218 $ 21.09
===============================================================================
8
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
(3) STOCK OPTION PLANS (CONTINUED)
Outstanding options to subscribe to shares of non-voting common stock issued
under the current plan and predecessor plans are summarized as follows:
<TABLE>
Options Outstanding Options Exercisable
- ------------------------------------------------------------------------------- ----------------------------------
Weighted
Average Weighted Weighted
Remaining Average Average
Outstanding at Contractual Exercise Exercisable as Exercise
Range of Exercise Prices 4/30/98 Life Price of 4/30/98 Price
- ------------------------------ ---------------- --------------- --------------- ---------------- -----------------
<S><C> <C> <C> <C> <C> <C>
$11.48-$13.86 247,217 1.6 $11.79 232,810 $11.76
$14.13-$15.54 352,084 1.9 14.19 334,052 14.16
$21.44-$22.96 482,564 3.6 21.01 169,844 20.95
$35.69-$35.94 289,956 4.5 35.69 - -
$39.26 18,100 4.5 39.26 - -
$46.25 8,297 4.9 46.25 - -
- ------------------------------------------------------------------------------- ----------------------------------
1,398,218 3.0 $21.09 736,706 $14.94
=============================================================================== ==================================
</TABLE>
(4) COMMON STOCK REPURCHASES
In the first six months of fiscal 1998, the Company purchased 813,000 shares of
its non-voting common stock under its current share repurchase authorization.
(5) REGULATORY REQUIREMENTS
A subsidiary of the Company is subject to the Securities and Exchange Commission
uniform net capital rule (Rule 15c3-1) which requires the maintenance of minimum
net capital. For purposes of this rule the subsidiary had net capital of $2.4
million at April 30, 1998, which exceeded the net capital requirement of $0.4
million as of that date. The ratio of aggregate indebtedness to net capital at
April 30, 1998 was 2.27 to 1.
(6) REAL ESTATE INVESTMENTS
Real estate investments held at April 30, 1998 and October 31, 1997 follow:
April 30, October 31,
1998 1997
----------------------------------------------
(in thousands)
Buildings $ 15,904 $ 18,254
Land 2,279 2,279
----------------------------------------------
Total 18,183 20,533
Less: Accumulated depreciation 4,714 4,495
----------------------------------------------
Total $ 13,469 $ 16,038
==============================================
9
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
(6) REAL ESTATE INVESTMENTS (CONTINUED)
In the first quarter of 1998, the Company committed to a plan to sell a building
and shopping center in Troy, New York and recognized a pre-tax impairment loss
of $2.6 million based on the estimated net realizable value of the property. At
April 30, 1998, the carrying value of the property was $3.6 million.
In 1997, the Company committed to a plan to sell two industrial warehouse
buildings located in Springfield, Massachusetts and Colonie, New York and a
shopping center in Goffstown, New Hampshire. The estimated net realizable values
of the buildings exceeds their respective carrying values of $1.5 million, $1.6
million and $5.5 million at April 30, 1998.
(7) UNREALIZED SECURITIES HOLDING GAINS AND LOSSES
The Company has classified as available-for-sale securities having an aggregate
fair value of approximately $94.5 million and $93.6 million at April 30, 1998
and October 31, 1997, respectively. These securities are classified as
"Short-term investments," "Investments in investment companies," and "Other
investments" on the Company's consolidated balance sheets. Gross unrealized
gains of approximately $5.5 million and $6.7 million at April 30, 1998 and
October 31, 1997, respectively, and gross unrealized losses of approximately
$4.5 million and $2.8 million at April 30, 1998 and October 31, 1997,
respectively, have been excluded from earnings and reported as a separate
component of shareholders' equity, net of deferred taxes.
(8) EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
Effective November 1, 1997, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings per Share." SFAS No. 128 requires
that the Company retroactively restate prior period earnings per share data. The
impact on previously reported earnings per share is not material.
(9) RECLASSIFICATIONS
Certain prior year amounts have been reclassified to conform to current year
presentation.
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The Company's primary sources of revenue are investment adviser fees and
distribution fees received from the Eaton Vance funds and adviser fees received
from separately managed accounts. These fees are generally based on the net
asset value of the investment portfolios managed by the Company and fluctuate
with changes in the total value of the assets under management. The Company's
major expenses, other than the amortization of deferred sales commissions,
include employee compensation, occupancy costs, service fees and other marketing
costs.
RESULTS OF OPERATIONS
QUARTER ENDED APRIL 30, 1998 COMPARED TO QUARTER ENDED APRIL 30, 1997
The Company reported earnings of $11.4 million or $0.60 per share (diluted) in
the second quarter of 1998 compared to earnings of $9.5 million or $0.49 per
share (diluted) in the second quarter of 1997.
Assets under management of $25.5 billion on April 30, 1998 were 42 percent
higher than the $18.0 billion reported a year earlier on April 30, 1997. Asset
growth increased as a result of the strong sales of the company's stock and bank
loan funds, a $1.2 billion private placement of an equity fund and improving
sales of bond funds. Mutual fund sales of $4.0 billion in the second quarter of
1998 were 150 percent higher than the $1.6 billion reported in the second
quarter of 1997.
Total revenue increased $12.3 million to $60.0 million in the second quarter of
1998 from $47.7 million in the second quarter of 1997. Investment adviser and
administration fees increased by 31 percent to $36.5 million in the second
quarter of fiscal 1998 from $27.9 million in the second quarter of fiscal 1997,
primarily as a result of the growth in total assets under management and the
change in the Company's product mix. Distribution income increased by $3.6
million or 20 percent to $21.8 million in the second quarter of 1998 from $18.2
million a year earlier due to an increase in spread-commission fund assets under
management.
Total operating expenses increased to $41.9 million in the second quarter of
1998 from $31.5 million in the second quarter of 1997. The increases noted in
both compensation and other expenses were primarily the result of an increase in
sales incentives and other marketing expenses associated with higher mutual fund
sales and private placements. Amortization of deferred sales commissions
increased to $15.5 million in the second quarter of 1998, from $13.5 million in
the second quarter of 1997 primarily due to the increase in gross sales of the
Company's spread commission funds.
Interest income increased 88 percent to $1.5 million from $0.8 million as a
result of the increase in short term investments.
SIX MONTHS ENDED APRIL 30, 1998 COMPARED TO THE SIX MONTHS ENDED APRIL 30, 1997
The Company earned $22.3 million or $1.17 per share (diluted) in the first half
of 1998 compared to $19.5 million or $1.01 per share (diluted) in the first half
of 1997. Operating results for the first half of 1998 include a pre-tax
impairment loss on real estate of $2.6 million resulting from management's
decision to offer for sale all real estate properties owned but not occupied by
Eaton Vance.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONTINUED)
Total revenue increased $19.7 million or 21 percent to $115.3 million in the
first half of 1998 from $95.6 million in the first half of 1997 as a result of
greater average assets under management. Investment adviser and administration
fees increased to $69.8 million from $55.2 million primarily as a result of the
growth in total assets under management and the change in the Company's product
mix. Distribution income also increased to $42.2 million from $37.2 million due
to an increase in spread-commission fund assets under management.
Total operating expenses increased to $79.4 million in the second quarter of
1998 from $63.9 million in the second quarter of 1997. The increases noted in
both compensation and other expenses were primarily the result of an increase in
sales incentives and other marketing expenses associated with higher mutual fund
sales and private placements. Amortization of deferred sales commissions
increased to $30.1 in the second quarter of 1998, from $26.8 in the second
quarter of 1997 primarily due to the increase in gross sales of the Company's
spread commission funds.
Interest income increased 59 percent to $2.7 million from $1.7 million as a
result of the increase in short term investments. The pre-tax impairment loss of
$2.6 million resulted from a decision to sell a property which had a carrying
value in excess of its net realizable value.
LIQUIDITY AND CAPITAL RESOURCES
Cash, cash equivalents and short-term investments aggregated $101.1 million
April 30, 1998, a decrease of $39.4 million from October 31, 1997.
Operating activities reduced cash and cash equivalents by $2.4 million in the
first half of 1998. In the first six months of 1997 operating activities
generated cash of $15.0 million. Cash used for operating activities in the first
half of 1998 can primarily be attributed to the significant increase in sales
commissions paid associated with the increase in mutual fund sales and a private
placement. Sales commissions paid totaled $68.5 million in the first six months
of 1998 compared to $31.3 million in the first six months of 1997.
Investing activities, consisting primarily of the purchase and sale of
short-term investments, reduced cash and cash equivalents by $1.4 million in the
first half of 1998 compared to $17.6 million in the first half of 1997. The
primary use of cash in the first three months of 1998 was the purchase of $120.3
million in short-term investments following the sale of certain short-term
marketable securities.
Financing activities reduced cash and cash equivalents by $34.2 million in the
first half of 1998 compared to $11.1 million in the first half of 1997.
Significant financing activities during the first half of 1998 included the
repurchase of 813,000 shares of the Company's non-voting common stock under its
authorized repurchase program. The Company's dividend increased to $0.24 per
share in the first half of 1998 compared to $0.20 per share in the first half of
1997.
At April 30, 1998, the Company had borrowings of $7.0 million under its senior
unsecured revolving credit facility.
The Company anticipates that cash flows from operations and available debt will
be sufficient to meet the Company's foreseeable cash requirements and provide
the Company with the financial resources to take advantage of strategic growth
opportunities.
12
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONTINUED)
CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS
From time to time, information provided by the Company or information included
in its filings with the Securities and Exchange Commission (including this
Quarterly Report on Form 10-Q) may contain statements which are not historical
facts, for this purpose referred to as "forward-looking statements." The
Company's actual future results may differ significantly from those stated in
any forward-looking statements. Important factors that could cause actual
results to differ materially from those indicated by such forward-looking
statements include, but are not limited to, the factors discussed below.
The Company is subject to substantial competition in all aspects of its
business. The Company's ability to market investment products is highly
dependent on access to the retail distribution systems of national and regional
securities dealer firms, which generally offer competing internally and
externally managed investment products. Although the Company has historically
been successful in gaining access to these channels, there can be no assurance
that it will continue to do so. The inability to have such access could have a
material adverse effect on the Company's business.
There are few barriers to entry by new investment management firms. The
Company's funds compete against an ever increasing number of investment products
sold to the public by investment dealers, banks, insurance companies and others
that sell tax-free investments, taxable income funds, equity funds and other
investment products. Many institutions competing with the Company have greater
resources than the Company. The Company competes with other providers of
investment products offered, the investment performance of such products,
quality of service, fees charged, the level and type of sales representative
compensation, the manner in which such products are marketed and distributed and
the services provided to investors.
The Company derives almost all of its revenues from investment adviser and
administration fees and distribution income received from the Eaton Vance funds
and separately managed accounts. As a result, the Company is dependent upon the
contractual relationships it maintains with these funds and separately managed
accounts. In the event that any of the management contracts, administration
contracts, underwriting contracts or service agreements are not renewed pursuant
to the terms of these contracts or agreements, the Company's financial results
may be adversely affected.
The major sources of revenue for the Company - i.e., investment adviser fees and
distribution income, - are calculated as percentages of assets under management.
A decline in securities prices in general would reduce fee income. If, as a
result of inflation, expenses rise and assets under management decline, lower
fee income and higher expenses will reduce or eliminate profits. If expenses
rise and assets rise, bringing increased fees to offset the increased expenses,
profits may not be affected by inflation. There is no predictable relationship
between changes in financial assets under management and the rate of inflation.
13
<PAGE>
PART II
OTHER INFORMATION
14
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
Each Exhibit is listed in this index according to the number assigned
to it in the exhibit table set forth in Item 601 of Regulation S-K. The
following Exhibits are filed as a part of this Report or incorporated
herein by reference pursuant to Rule 12b-32 under the Securities
Exchange Act of 1934:
Exhibit No. Description
27.1 Financial Data Schedule as of April 30, 1998 (filed
herewith - electronic filing only).
(b) REPORTS ON FORM 8-K
None.
15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EATON VANCE CORP.
(Registrant)
DATE: June 11, 1998 /s/William M. Steul
-------------------------------------
(Signature)
William M. Steul
Chief Financial Officer
DATE: June 11, 1998 /s/Laurie G. Russell
-------------------------------------
(Signature)
Laurie G. Russell
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000350797
<NAME> EATON VANCE CORP.
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<CASH> 23992
<SECURITIES> 77072
<RECEIVABLES> 3240
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 124791
<PP&E> 2436
<DEPRECIATION> 0
<TOTAL-ASSETS> 373942
<CURRENT-LIABILITIES> 36675
<BONDS> 0
0
0
<COMMON> 560
<OTHER-SE> 215373
<TOTAL-LIABILITY-AND-EQUITY> 373942
<SALES> 0
<TOTAL-REVENUES> 115266
<CGS> 0
<TOTAL-COSTS> 79410
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1996
<INCOME-PRETAX> 36791
<INCOME-TAX> 14452
<INCOME-CONTINUING> 22339
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22339
<EPS-PRIMARY> 1.22
<EPS-DILUTED> 1.17
</TABLE>
