SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 26, 1996
(July 25, 1996)
......................... FRANKLIN RESOURCES, INC. ....................
(Exact name of registrant as specified in its charter)
.... DELAWARE ................. 1-9318 ....... 13-2670991 ...
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
777 MARINERS ISLAND BLVD., SAN MATEO, CALIFORNIA ........ 94404...
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code..(415) 312-3000
.......................................................................
(Former name or former address, if changed since last report)
Item 5. Other Events
Registrant is filing this Form 8-K in order to file a current earnings
press release. By this filing, Registrant is not establishing the
practice of filing all earnings press releases in the future and may
discontinue such filings at any time.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit "A" - Press Release issued on July 25, 1996 by Franklin
Resources, Inc.
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 hereunto duly authorized.
FRANKLIN RESOURCES, INC.
(Registrant)
Date: July 26, 1996 /s/ Leslie M. Kratter
LESLIE M. KRATTER
Vice President
A. Press Release issued on July 25, 1996
by Franklin Resources, Inc.
FROM Franklin Resources, Inc.
Tel: (415) 312-4701
Contact: Holly Gibson
Rubenstein & Associates, Inc.
Public Relations - Tel: (212) 843-8078
Contact: Tom Mariam
For Immediate Release
Franklin Resources Announces Third Quarter Results
San Mateo, CA, July 25, 1996 -- Franklin Resources, Inc.
(NYSE:BEN) today reported earnings for the quarter and nine months
ended June 30, 1996.
Charles B. Johnson, President of the diversified financial
services company, said net income for the quarter was $81.1 million
compared to $69.0 million a year ago and $75.2 million for the quarter
ended March 31, 1996. Fully diluted earnings per share for the quarter
ended June 30, 1996 were $0.97 compared with $0.83 a year ago and $0.91
for the preceding quarter. Operating revenues for the period were
$395.4 million compared to $319.8 million a year ago and $393.8 million
for the preceding quarter.
Average fully diluted shares outstanding for the quarter were 83.4
million as compared to 83.0 million a year ago and 83.1 million for the
previous quarter.
Net income for the nine months was $230.2 million compared to
$195.4 million for the same period a year ago. Fully diluted earnings
per share was $2.76 per share compared to $2.35 per share a year ago.
Operating revenues for the nine months were $1,131.8 million compared
to $921.6 million a year ago.
On June 25, 1996, Franklin Resources, Inc., Michael Price and
Heine Securities Corporation, the investment adviser to Mutual Series
Fund, announced they have agreed to a merger of the businesses of Heine
and Franklin. The transaction must be approved by the board and
shareholders of Mutual Series Fund and is subject to the receipt of
other governmental regulatory approvals.
The transaction has an aggregate value of approximately $610
million. Heine Securities will receive $550 million in cash, along
with 1.1 million shares of Franklin Resources, Inc. common stock which
may not be disposed of for two years. Heine will initially invest $150
million of the cash proceeds in Mutual Series Fund with a minimum
balance of $100 million for five years.
Heine Securities Corporation has approximately $17 billion under
its management as of June 30, 1996. The results of Heine Securities
Corporation and the assets under its management are not reflected in
the following financial data of Franklin Resources, Inc.
Assets under management by the Company's subsidiaries were $147.6
billion compared with $125.9 billion this time last year and $141.4
billion in the preceding quarter. Average assets under management
during the quarter were $144.7 billion compared with $122.8 billion
last year, and $139.1 billion in the preceding quarter.
Franklin's headquarters are located at 777 Mariners Island Blvd.,
San Mateo, CA, 94404.
FRANKLIN RESOURCES, INC.
Consolidated Income Statements
(Dollar amounts in thousands
except assets under management
and per share data
Three months Nine months
ended ended
June 30 June 30
1996 1995 1996 1995
Operating revenues:
Investment management fees $227,633 $187,114 $644,604 $534,270
Underwriting and distribution
fees 143,649 115,691 415,595 331,630
Transfer, trust & related fees 23,569 16,747 67,589 48,210
Banking/finance, net & other 551 274 4,029 7,460
Total operating revenues 395,402 319,826 1,131,817 921,570
Operating expenses:
Underwriting and distribution 144,137 107,108 409,369 300,838
General & administrative 121,380 98,097 349,556 279,438
Selling 18,118 15,229 50,929 53,350
Goodwill amortization 4,529 4,582 13,900 13,792
Total operating expenses 288,164 225,016 823,754 647,418
Operating income 107,238 94,810 308,063 274,152
Other income (expense):
Investment and other income 16,611 9,140 37,265 21,166
Interest expense (2,782) (2,874) (8,824) (9,177)
Other income (expense), net 13,829 6,266 28,441 11,989
Income before taxes on income 121,067 101,076 336,504 286,141
Taxes on income 40,001 32,047 106,275 90,768
Net income $81,066 $69,029 $230,229 $195,373
Earnings per share:
Primary $0.98 $0.84 $2.77 $2.36
Fully diluted $0.97 $0.83 $2.76 $2.35
Dividends per share $0.11 $0.10 $0.33 $0.30
Average shares outstanding
(in thousands):
Primary 83,032 82,540 83,235 82,830
Fully diluted 83,365 82,980 83,521 83,269
Assets under management
(in millions):
End of period $147,604 $125,888 147,604 $125,888
Average for period $144,653 $122,769 $138,626 $118,869
Note: Certain amounts in prior periods have been reclassified to
correspond to the current period presentation.
<TABLE>
FRANKLIN RESOURCES, INC.
Consolidated Income
Statements
(Dollar amounts in thousands
except assets under manage-
ment and per share data
<CAPTION>
For the three months ended
30-Jun-96 31-Mar-96 31-Dec-95 30-Sep-95 30-Jun-95
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Operating revenues:
Investment management fees $227,633 $215,336 $201,635 $196,982 $187,114
Underwriting and
distribution fees 143,649 152,910 119,036 117,511 115,691
Transfer, trust & related
fees 23,569 22,631 21,389 20,491 16,747
Banking/finance, net & other 551 2,924 554 1,243 274
Total operating revenues 395,402 393,801 342,614 336,227 319,826
Operating expenses:
Underwriting and
distribution fees 144,137 149,171 116,061 111,156 107,108
General & administrative 121,380 121,122 107,054 109,781 98,097
Selling 18,118 17,286 15,525 16,788 15,229
Goodwill amortization 4,529 4,530 4,841 4,513 4,582
Total operating expenses 288,164 292,109 243,481 242,238 225,016
Operating income 107,238 101,692 99,133 93,989 94,810
Other income (expense):
Investment and other income 16,611 9,989 10,665 8,508 9,140
Interest expense (2,782) (3,419) (2,623) (1,983) (2,874)
Other income (expense), net 13,829 6,570 8,042 6,525 6,266
Income before taxes on
income 121,067 108,262 107,175 100,514 101,076
Taxes on income 40,001 33,050 33,224 26,942 32,047
Net income $ 81,066 $ 75,212 $ 73,951 $ 73,572 $ 69,029
Earnings per share:
Primary $0.98 $0.91 $0.89 $0.89 $0.84
Fully diluted $0.97 $0.91 $0.89 $0.88 $0.83
Dividends per share $0.11 $0.11 $0.11 $0.10 $0.10
Average shares outstanding
(in thousands):
Primary 83,032 82,918 83,519 82,814 82,540
Fully diluted 83,365 83,065 83,533 83,731 82,980
Assets under management
(in millions):
End of period $147,604 $141,437 $135,113 $130,837 $125,888
Average for period $144,653 $139,086 $132,140 $128,676 $122,769
Note: Certain amounts in prior periods have been reclassified to correspond to
the current period presentation.
</TABLE>
