FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(x) QUARTERLY REPORT UNDER SECTION 13 or 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended December 31, 1993
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 1-9318
FRANKLIN RESOURCES, INC.
(Exact Name Of Registrant As Specified In Its Charter)
Delaware 13-2670991
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
777 Mariners Island Blvd., San Mateo, CA 94404
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number,including area code (415) 312-2000
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
and (2) has been subject to the filing requirements for at least
the past 90 days.
YES X NO
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
YES _____ NO _____
APPLICABLE ONLY TO CORPORATE ISSUERS
Outstanding: 82,253,292 shares, common stock, par value $.10 per
share at February 7, 1993.
(Title of Class)
Exhibit index - See page 14
PART I FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
In the opinion of management, all appropriate adjustments necessary to a
fair presentation of the results of operations have been made for the
periods shown.
Franklin Resources, Inc.
Consolidated Statements Of Income
Unaudited (dollar amounts in thousands, except per share data)
<TABLE>
<CAPTION>
For the Three Months
Ended
December 31,
1992 1993
<S> <C> <C>
Operating revenues:
Investment management fees $102,749 $151,888
Underwriting commissions, net 15,207 29,569
Transfer, trust and related 8,590 11,961
fees
Banking, real estate and 4,202 5,070
other
------- -------
Total operating revenues 130,748 198,488
------- -------
Operating expenses:
General and administrative 59,848 84,457
Selling expenses 11,705 15,662
Amortization of goodwill 1,033 4,542
Interest expense of banking
subsidiary 2,826 2,356
------- -------
Total operating expenses 75,412 107,017
------- -------
Operating income 55,336 91,471
------- -------
Other income (expenses):
Investment and other income 6,373 5,719
Interest expense (5,486) (8,055)
------- -------
Other income (expenses),net 887 (2,336)
------- -------
Income before taxes on income 56,223 89,135
Taxes on income 21,458 30,134
------- -------
Net income $34,765 $59,001
======= =======
Earnings per share:
Primary $.43 $.70
==== ====
Fully diluted $.43 $.70
==== ====
</TABLE>
Franklin Resources, Inc.
Consolidated Balance Sheets
Unaudited (dollar amounts in thousands)
<TABLE>
<CAPTION>
September 30, December
31,
Assets 1993 1993
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 293,777 $ 346,008
Receivables:
Fees from Franklin/Templeton
Group of Funds 63,471 74,650
Proceeds from sale of funds'shares 39,150 -
Other 16,860 17,718
Investments in the
Franklin/Templeton Group of
Funds, available-for-sale 72,401 64,071
Current deferred taxes 5,971 4,967
Prepaid expenses and other 5,812 5,534
---------- ----------
Total current assets 497,442 512,948
---------- ----------
Franklin Bank Assets:
Cash and cash equivalents 9,175 7,708
Loans receivable, net 128,820 162,875
Investment securities, available-
for-sale 69,962 58,016
Premises and equipment, net 170 237
Other assets 3,029 3,608
---------- ----------
Total bank assets 211,156 232,444
---------- ----------
Other Assets:
Investments:
Investment securities,
available-for-sale 74,624 79,744
Real estate 9,393 9,398
Deferred costs 10,367 12,468
Premises and equipment, net 65,821 71,155
Goodwill, net of $17,972 and
$22,513 accumulated amortization,
respectively 696,973 694,342
Other assets 15,758 15,017
---------- ----------
Total other assets 872,936 882,124
---------- ----------
$1,581,534 $1,627,516
========== ==========
</TABLE>
Franklin Resources, Inc.
Consolidated Balance Sheets (Continued)
Unaudited (dollar amounts in thousands)
<TABLE>
<CAPTION>
September December
30 31
1993 1993
<S> <C> <C>
Liabilities and Stockholders'
Equity
Current Liabilities:
Trade payables and accrued expenses $ 91,708 $ 117,762
Current maturities of long-term debt 51,716 50,387
Payable to funds for shares sold 38,695 -
Dividends payable 5,747 6,582
---------- ----------
Total current liabilities 187,866 174,731
---------- ----------
Franklin Bank Liabilities:
Deposits of account holders:
Interest bearing demand deposits 10,794 9,070
Non-interest bearing demand deposits 8,986 19,898
Savings and time deposits 175,055 187,068
Other liabilities 974 1,254
---------- ----------
Total bank liabilities 195,809 217,290
---------- ----------
Other Liabilities:
Bank debt 296,000 284,541
Subordinated debentures 150,000 150,000
Other notes and capital leases payable 8,820 4,979
Deferred tax liabilities 10,999 8,588
Other liabilities 11,662 12,704
---------- ----------
Total other liabilities 477,481 460,812
---------- ----------
Total liabilities 861,156 852,833
---------- ----------
Stockholders' Equity:
Common stock, $.10 par value,
100,000,000 shares authorized;
82,098,580 and 82,253,292
shares issued and outstanding,
respectively 8,210 8,225
Capital in excess of par value 83,683 90,710
Retained earnings 630,399 682,820
Less unearned restricted stock
compensation (8,335) (14,067)
Unrealized gain on investment
securities, net of tax 6,242 7,080
Foreign currency translation
adjustment 179 (85)
---------- ----------
Total stockholders' equity 720,378 774,683
---------- ----------
$1,581,534 $1,627,516
========== ==========
</TABLE>
Franklin Resources, Inc.
Consolidated Statements Of Cash Flows
for the three months ended December 31, 1992 and 1993
Unaudited (dollars in thousands)
<TABLE>
<CAPTION>
<C> <C>
1992 1993
Cash flows from operating activities:
Net income $ 34,765 $ 59,001
-------- --------
Items reconciling net income to
net cash provided by operating
activities:
Decrease in receivables, prepaid
expenses and other 12,147 25,079
Decrease in trade payables and
accrued expenses (39,312) (38,536)
Increase in current taxes payable 16,192 25,894
Decrease in deferred taxes payable - (1,407)
Depreciation and amortization 4,498 9,708
Losses (gains) on investments 231 (1,218)
-------- --------
Total reconciling items (6,244) 19,520
-------- --------
Net cash provided by operating 28,521 78,521
activities
-------- --------
Cash flows from investing activities:
Liquidation of mutual funds, net 117,585 11,352
Purchase of bank investment
portfolio (50,735) (27,421)
Liquidation of bank investment
portfolio 34,955 38,996
Liquidation (purchase) of real
estate investments 399 (6)
Liquidation (purchase) of other
investments 1,450 (5,959)
Net (increase) decrease in bank
loans receivable 3,320 (34,017)
Purchase of premises and equipment
and other (4,780) (7,702)
Acquisition of Templeton, net of
cash acquired (628,824) -
-------- --------
Net cash used in investing
activities (526,630) (24,757)
-------- --------
Cash flows from financing activities:
Increase in deposits of bank
account holders, net 11,816 21,481
Exercise of common stock options 2,002 -
Dividends paid on common stock (5,070) (5,747)
Acquisition of treasury stock - (2,106)
Issuance of bank debt 360,000 -
Payments on notes and capital
leases (3,881) (16,628)
-------- --------
Net cash (used in) provided by
financing activities 364,867 (3,000)
-------- --------
Net increase (decrease) in cash and
cash equivalents: (133,242) 50,764
Cash and cash equivalents
beginning of period 308,644 302,952
-------- --------
Cash and cash equivalents end of $175,402 $353,716
period ======== ========
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest $7,728 $8,004
Income taxes $4,839 $5,005
Supplemental disclosure of non-cash
information:
Value of common stock issued in
Templeton acquisition $99,872 -
Value of common stock issued in
other transactions - $1,650
</TABLE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
General
Franklin Resources, Inc. and its majority-owned subsidiaries
("the Company") derives its revenue from its principal line of
business which is providing investment management, administra
tion, and related services to the Franklin and Templeton Groups
of Mutual Funds, managed accounts and other investment products.
On October 30, 1992, the Company acquired the assets and
liabilities of Templeton, Galbraith & Hansberger, Ltd.
("Templeton"), which performs investment management,
distribution, and shareholder service functions for the Templeton
Group of Mutual Funds and managed accounts. Total assets under
management as of December 31, 1993 were $114.2 billion.
The Company has a diversified base of assets under management and
a full range of investment management products and services to
meet a wide range of investment needs of individuals and
institutions. The Company continues to expand its range of
investment products and services in the United States and abroad.
The Company's revenues are derived largely from the amount and
composition of assets under management. Consequently,
fluctuations in financial markets impact revenues and the results
of operations. Although current industry expectations are for
continued growth, no assurance can be given that historical
growth levels will be maintained.
Material Changes in Financial Condition
Cash and cash equivalents were $346.0 million at December 31,
1993, an increase of $52.2 million (18%) from $293.8 million at
September 30, 1993. This increase results from the collection of
the increase in receivables generated from the increase in
revenues during the period.
Fee receivables from the Franklin/Templeton Group of Funds were
$74.6 million at December 31, 1993, an increase of $11.1 million
(17%) from $63.5 million at September 30, 1993. This increase
results from an increase in revenue generated from the increase in
funds under management during the period.
Proceeds from sale of funds' shares was zero at December 31, 1993,
decreasing from $39.2 million at September 30, 1993. During the
prior fiscal year such proceeds were processed through the
underwriter subsidiaries bank account. During the current fiscal
year the proceeds were processed through the mutual fund clearing
accounts, consequently these movements are no longer reflected on
the Company's balance sheet.
Franklin Bank loan receivables were $162.9 million at December 31,
1993, an increase of $34.1 million (26%) from $128.8 million at
September 30, 1993. This increase is primarily attributable to
increases in credit card and dealer auto loans.
Trade payables and accrued expenses were $117.8 million at
December 31, 1993, an increase of $26.1 million (28%) from $91.7
million at September 30, 1993. This increase is a result of
greater expenses incurred during the period.
Payable to funds for shares sold was zero at December 31, 1993,
decreasing from $38.7 million at September 30, 1993. This change
resulted from the change as described under the caption above
"proceeds from sale of funds' shares."
Franklin Bank's non-interest bearing demand deposits were $19.9
million at December 31, 1993, an increase of $10.9 million (121%)
from $9.0 million at September 30, 1993. This increase results
from larger balances retained in accounts by customers.
Bank Debt was $284.5 million at December 31, 1993, a decrease of
$11.5 million (4%) from $296.0 million at September 30, 1993.
This decrease is a result of principal payments made during the
period. Swap agreements previously entered into in order to fix
interest rates on $205 million of the original term loan range
from 3.73% to 5.02% on original maturities of one to three years.
The effective rate of interest under the loan facility, including
the reduced margin and payments to be made pursuant to the swap
arrangements was 4.26% at December 31, 1993.
Stockholders' equity was $774.7 million at December 31, 1993, an
increase of $54.3 million (8%) from $720.4 million at September
30, 1993.
Unearned restricted stock compensation was $14.1 million at
December 31, 1993, an increase of $5.8 million (70%) from $8.3
million at September 30, 1993. This increase is the result of
additional grants of the company stock to certain of the
company's employees which is restricted for periods of up to four
years from the date of grant. The value of the grant amounts are
amortized over the restricted period.
Cash provided by operating activities for the three month period
ended December 31, 1993 was $78.5 million, an increase of $50.0
million (175%) from $28.5 million for the three month period
ended December 31, 1992. Net cash expended from investing
activities for the three month period ended December 31, 1993 was
$24.8 million, a decrease of $501.8 million (95%) from $526.6
million for the three month period ended December 31, 1992. This
material change resulted from the use of $628.8 million in the
purchase of Templeton during the prior period reported. The
Company generated a net increase in cash and cash equivalents of
$50.8 million during the three month period ended December 31,
1993, an increase of $184.0 million from a net decrease in cash
and cash equivalents of $133.2 million for the period ended
December 31, 1992. At December 31, 1993, the Company held liquid
assets in excess of $578.6 million, including $353.7 million of
cash and cash equivalents.
Net cash expended from financing activities for the three month
period ended December 31, 1993 was $3.0 million, a decrease of
$367.9 million (101%) from net cash provided of $364.9 million
for the three month period ended December 31, 1992. The material
change resulted from the $360 million issuance of bank debt in
the prior period which was used in the Company's acquisition
financing of Templeton.
(2) Material Changes in Results of Operations
Net income for the three month period ended December 31, 1993 was
$59.0 million, an increase of $24.2 million (70%) from $34.8
million for the three month period ended December 31, 1992.
These increases were primarily attributable to a material
increase in the amount of revenues earned from the Franklin and
Templeton Groups of Funds. The following analysis of material
changes in results of operations include the impact of the
Templeton business from the acquisition date of October 30, 1992.
The Franklin/Templeton business has operated as a unified
organization since the time of the acquisition and consequently,
the following discussion and analysis addresses the unified
organization.
Assets Under Management
Total assets under management were $114.2 billion at December 31,
1993, an increase of $23.4 billion (26%) from 90.8 billion at
December 31, 1992. Such increases during the period are
principally attributable to increased net additions to market
appreciation of assets under management.
As shown in the following table, a material portion (55%) of the
total net assets under management at December 31, 1993 were in
fixed income instruments held in portfolios of tax-free income
funds and U.S. government bond funds. Net assets of tax-free
income funds were $41.4 billion, an increase of $6.6 billion
(19%), from $34.8 billion at December 31, 1992. Net assets of
U.S. government bond funds were $18.4 billion at December 31,
1993, a decrease of $1.2 billion (-6%) over the prior 1992
period. During the period reported, investors continued to be
attracted to tax-free income funds due to the increase in federal
income tax rates and away from U.S. government bond funds as
interest rates generally declined.
Net assets of equity and equity income funds were $40.7 billion
at December 31, 1993, an increase of $16.4 billion (67%) from
$24.3 billion at December 31, 1992. Equity and equity income
funds represent 36% of the Company's total assets under
management at December 31, 1993 as compared to (27%) at December
31, 1992. Investors continued to be attracted to the higher
returns which were generated in the equity and equity income
funds during this period. The Templeton products, which invest
primarily in the global equity and fixed income markets,
continued to receive increased investor interest as compared to
prior periods.
Assets of managed accounts were $8.3 billion at December 31,
1993, an increase of $0.8 billion (11%) from $7.5 billion at
December 31, 1992. Managed account assets represent 7% of the
Company's total assets under management. The Company strongly
believes there are opportunities in the managed account business
and intends to aggressively expand in this area.
FRANKLIN RESOURCES, INC.
Net Assets Under Management
December 31,
(In $ millions)
<TABLE>
<CAPTION>
1992 1993
<S> <C> <C>
FRANKLIN GROUP OF FUNDS:
Tax-Free Income Funds
(exclusive of Money Funds) $34,777 $41,434
U.S. Government Bond
Funds (primarily GNMAs) 19,635 18,431
Equity/Income Funds 11,035 17,175
Money Funds 2,540 2,605
------ -------
Total FRANKLIN GROUP OF
FUNDS 67,987 79,645
------ -------
Templeton Family of Funds
Equity Funds 13,309 23,537
Fixed Income Funds 1,919 2,652
------ -------
Total Templeton Family of
Funds 15,228 26,189
------ -------
Managed Accounts:
Franklin 2,065 497
Templeton 5,474 7,842
------ -------
Total Managed Accounts 7,539 8,339
------ -------
Total $90,754 $114,173
====== ========
</TABLE>
The Company furthered the diversification of its assets under
management during the period when it become the investment
manager and underwriter for the $150 million Huntington
international currency funds in November of 1993. The Company
continues to expect interest in its full range of products with
greater relative growth in the global/international equity and
tax-free income products over the near-term.
Operating Revenues
Total operating revenues were $198.5 million for the three month
period ended December 31, 1993, an increase of $67.8 million
(52%) from $130.7 million for the three month period ended
December 31, 1992.
Investment management fees for the three month period ended
December 31, 1993 were $151.9 million, an increase of $49.2
million (48%) from $102.7 million for the three month period in
1992. These increases are the result of a general increase in
assets under management resulting from both market appreciation
and net additional assets under management.
Net underwriting commissions for the three month period ended
December 31, 1993 were $29.6 million, an increase of $14.4
million (95%) from $15.2 million for the three month period ended
December 31, 1992. These increases resulted from higher sales
than in the prior period. Sales of Franklin and Templeton Funds
include a commission of which a significant portion is reallowed
to selling intermediaries. Revenues from underwriting
commissions are earned primarily from Templeton mutual fund sales
and through commissions charged on the reinvestment of dividends
into most Franklin Funds.
It is the Company's intention to modify the Franklin mutual funds
sales commission structure with the implementation of a
distribution plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940 and the elimination of commissions charged on
the reinvestment of dividends. The Boards of Directors of
certain of the Franklin Group of Funds have approved the adoption
of distribution plans, which are subject to the approval of the
mutual fund's shareholders, and the modified sales commission
structure. The impact of these changes are not expected to have
material overall impact on revenue while providing a more
competitive sales structure. Shareholder approval of these
distribution plans would permit implementation in May, 1994.
Transfer, trust and related fees were $12.0 million for the three
month period ended December 31, 1993, an increase of $3.4 million
(40%) from $8.6 million for the three month period ended December
31, 1992. These fees are generally fixed charges per account
which vary with the particular type of mutual fund and service
being rendered. Consequently, these fees are dependent upon the
number of shareholder accounts, with mutual fund sales and
redemptions generally having a direct impact.
Banking, real estate and other revenues for the three month
period ended December 31, 1993 were $5.1 million, an increase of
$.9 million (21%) from $4.2 million for the three month period
ended December 31, 1992. The banking subsidiary incurred
operating loss of $.03 million during the three month period
ended December 31, 1993, a decrease of $2.5 million (101%) from
$2.5 million for the three month period ended December 31, 1992.
Management does not currently anticipate any immediate
significant increase in earnings. The Company's real estate
operations incurred an operating loss of $0.3 million for the
three month period ended December 31, 1993, an improvement of
$1.3 million (81%) from a loss of $1.6 million for the three
month period ended December 31, 1992. These losses are a result
of the continued depressed real estate market.
Operating Expenses
Operating expenses were $107.0 million for the three month period
ended December 31, 1993, an increase of $31.6 million (42%) from
$75.4 million for the three month period ended December 31, 1992.
These increases principally result from the general expansion of
the Company's business.
General and administrative expenses for the three month period
ended December 31, 1993 were $84.5 million, an increase of $24.7
million (41%) from $59.8 million for the three month period ended
December 31, 1992. A significant portion of this increase is a
result of higher employment costs resulting from increased
employment and premise and equipment increases resulting from the
expansion of the Company's business.
Selling expenses were $15.7 million for the three month period
ended December 31, 1993, an increase of $4.0 million (34%) from
$11.7 million for the three month period ended December 31, 1992.
The Company continues to capitalize on the positive environment
in the investment management industry by advertising and
promoting the Company's range of investment products and services
in the United States and other international markets.
Amortization of goodwill was $4.5 million for the three month
period ended December 31, 1993, an increase of $3.5 million
(350%) from $1.0 million for the three month period ended
December 31, 1992. This increase is attributable to the
amortization of goodwill resulting from the Company's acquisition
of Templeton.
Interest expense of the banking subsidiary was $2.4 million, a
decrease of $.0.4 million (14%) from $2.8 million for the three
month period ended December 31, 1992. These decreases result
primarily from the generally falling levels of market interest
rates during the period.
Total operating expenses will likely continue to increase with
the Company's continued expansion, the increase in competition
and the Company's commitment to continually improving its
products and services. The Company continues to focus on
operating profit margins as opposed to the absolute level of
operating expenses while the Company expands. Operating income
as a percentage of operating revenue was 46% for the three month
period ended December 31, 1993 as compared to 42% for the
comparable period ended 1992.
Operating income for the three month period ending December 31,
1993 was $91.5 million, an increase of $36.2 million (65%) from
$55.3 million for the three month period ended December 31, 1992.
Growth in operating income will continue to be dependant upon
general economic growth, the strength of the capital markets and
the Company's ability to meet market demands with competitive
products and services.
Other Income (Expense)
Investment and other income for the three month period ended
December 31, 1993 was $5.7 million, a decrease of $.0.7 million
(11%) from $6.4 million for the three month period ended December
31, 1992. The net decrease in investment income resulted from a
combination of factors, including the decline in the average
level of interest rates and lower dividend rates on investments.
Non-banking interest expense for the three month period ended
December 31, 1993 was $8.1 million, an increase of $2.6 million
(47%) from $5.5 million for the three month period ended December
31, 1992. The increase in interest expense is attributable to
the debt incurred in the Company's acquisition of Templeton.
SEGMENT INFORMATION
The Company or its subsidiaries conduct operations in four principal
geographic areas of the world. North America, the Bahamas,
Europe and Asia Pacific. Revenue by geographic area includes
fees and commissions charged to customers and fees charged to
affiliates in other areas.
Operating income by geographic area is defined as revenue less
expenses excluding interest expense. Identifiable asset are
those assets used exclusively in the operations of each
geographic area. The table below is for the three month period
ended December 31, 1993.
<TABLE>
<CAPTION>
December 31, 1992
Adjustments
North and
America Bahamas Europe Asia/Pacific Eliminations Consolidated
<S> <C> <C> <C> <C> <C> <C>
Revenues from:
Unaffiliated
customers $116,769 $11,069 $859 $2,051 - $130,748
Affiliates 441 - 778 - (1,219) -
------ ------- ------ ------ -------- --------
Total $117,210 $11,069 $1,637 $2,051 $(1,219) $130,748
====== ======= ====== ====== ======== ========
Operating income
(loss) $ 32,299 $ 8,897 $(686) $(259) - $ 40,251
====== ====== ====== ====== ======== =======
Identifiable
assets $463,444 $399,498 $339,976 $123,623 $1,326,541
======== ======= ======= ========
Corporate assets 49,824
----------
Total assets $1,376,365
===========
</TABLE>
<TABLE>
<CAPTION>
December 31, 1993
Adjustments
North and
America Bahamas Europe Asia/Pacific Eliminations Consolidated
<S> <C> <C> <C> <C> <C> <C>
Revenues from:
Unaffiliated
customers $162,104 $22,710 $3,999 $9,675 - $198,488
Affiliates 1,659 66 15 2,122 (3,862) -
------ ------- ------ ------- -------- --------
Total $163,763 $22,776 $4,014 $11,797 $(3,862) $198,488
====== ======= ====== ======= ======== ========
Operating income
(loss) $ 44,351 $16,465 $(386) $6,626 - $67,056
====== ======= ====== ====== ======== =======
Identifiable
assets $943,944 $456,724 $23,266 $128,841 $1,552,775
======== ======== ======= ========
Corporate assets 74,741
------
Total assets $1,627,516
=========
</TABLE>
The Company believes that operationally, all of its business activities
fall within the single industry segment of financial services. Set
forth below is a separation of certain segments of the Company's
business activities based upon historical distinctions of certain
areas of business (in thousands).
December For The Three
31, 1992 Months Ended
December 31, 1992
Identified Operating
Assets Revenues Income
[S] [C] [C] [C]
Mutual funds $1,157,105 $120,619 $36,675
Banking 204,412 4,220 2,454
Real estate 12,744 (232) (1,614)
Insurance and others 2,104 6,141 2,736
--------- -------- -------
Company Totals $1,376,365 $130,748 $40,251
========= ======== =======
[/TABLE]
<TABLE>
<CAPTION>
December For The Three Months
31, 1993 Ended December 31,
1993
<S> <C> <C> <C>
Mutual funds $1,346,162 $178,238 $60,422
Banking 233,124 4,725 (34)
Real estate 9,095 312 (332)
Insurance and others 39,135 15,213 7,000
others
---------- -------- -------
Company Totals $1,627,516 $198,488 $67,056
========== ======== =======
</TABLE>
FRANKLIN RESOURCES, INC.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 3. Pending Legal Proceedings from Registrant's Form 10-K
for the fiscal year ended September 30, 1993 is hereby
incorporated herein in its entirety by this reference.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are files as part of the report:
Exhibit 11 - Computation of per share earnings. (See page 14)
(b) Reports on Form 8-K - None
Exhibit 11
COMPUTATION OF PER SHARE EARNINGS
Earnings per share are based on net income divided by the average number of
shares outstanding including common stock equivalents during the
period. The computation would have been substantially the same as
below on a fully diluted basis.
<TABLE>
<CAPTION>
The computations are:
For The Three Months
Ended December 31,
1992 1993
<S> <C> <C>
Average outstanding 80,127,606 82,127,601
shares
Common stock 894,456 1,864,208
equivalents
---------- ----------
Total shares 81,022,062 83,991,809
========== ==========
Net income $34,765,000 $59,001,000
=========== ==========
Earnings per share of
common stock $.43 $.70
==== ====
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
FRANKLIN RESOURCES, INC.
Registrant
/S/ Martin L. Flanagan
Date: February 14, 1994
Martin L. Flanagan
Senior Vice-President, Treasurer
and Chief Financial Officer
