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 24, 1997
(July 24, 1997)
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)
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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 24, 1997 by Franklin Resources, Inc.
<PAGE>
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 24, 1997 /s/ Leslie M. Kratter
LESLIE M. KRATTER
Vice President
<PAGE>
Exhibits
A. Press Release issued on July 24, 1997 by Franklin Resources, Inc.
<PAGE>
FROM Franklin Resources, Inc.
Public Relations: Holly Gibson 415/312-4701
Investor Relations: Alex Peters 415/312-6521
Rubenstein Associates, Inc. Public Relations
Contact: David Sternstein 212/843-8053
For Immediate Release
Franklin Resources Announces Third Fiscal Quarter Results
San Mateo, CA, July 24, 1997 -- Franklin Resources, Inc. (NYSE:BEN) today
reported net income for the third fiscal quarter was $111.2 million, 37% above
the 1996 fiscal third quarter and 10% above the previous record of $101.4
million for the fiscal second quarter ended March 31, 1997. Fully diluted
earnings per share for the quarter ended June 30, 1997 were $0.88 compared with
$0.65 a year ago and $0.80 for the preceding quarter1 . Operating revenues for
the period were $577.9 million compared to $395.4 million a year ago and $521.9
million for the preceding quarter.
Assets under management by the Company's subsidiaries were $208.8 billion,
which included $24.9 billion managed by Franklin Mutual Advisers, Inc., compared
with $147.6 billion this time last year and $189.9 billion in the preceding
quarter. Quarterly average assets under management during the quarter were
$198.2 billion compared with $144.7 billion last year, and $186.8 billion in the
preceding quarter.
Net income for the nine months was $308.8 million compared to $230.2
million for the same period a year ago. Fully diluted earnings per share were
$2.44 per share compared to $1.84 per share a year ago1. Operating revenues for
the nine months were $1.5 billion compared to $1.1 billion a year ago.
Average fully diluted shares outstanding for the quarter were 126.4
million as compared to 125.0 million a year ago and 126.5 million for the
previous quarter1.
Franklin's headquarters are located at 777 Mariners Island Blvd., San
Mateo, CA 94404.
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1 All prior period amounts have been restated to reflect a three-for-two stock
dividend paid on January 15, 1997.
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FRANKLIN RESOURCES, INC.
Consolidated Income Statements
(Dollar amounts in thousands
except assets under management
and per share data.) Three months ended Nine months ended
June 30 June 30
-------------------------------------------
1997 1996 1997 1996
Operating revenues:
Investment management fees $343,271 $228,291 $927,211 $646,435
Underwriting and distribution fees 195,744 143,649 512,515 415,595
Shareholder servicing fees 36,614 22,911 90,239 65,758
Banking/finance, net & other 2,223 551 9,802 4,029
---------------------------------------------
Total operating revenues 577,852 395,402 1,539,767 1,131,817
---------------------------------------------
Operating expenses:
Underwriting and distribution 209,644 144,137 536,729 409,369
Employee related 115,476 85,710 321,830 244,298
General and administrative 60,432 35,670 160,861 105,258
Advertising and promotion 28,144 18,118 70,216 50,929
Amortization of intangibles 8,931 4,529 25,333 13,900
---------------------------------------------
Total operating expenses 422,627 288,164 1,114,969 823,754
---------------------------------------------
Operating income 155,225 107,238 424,798 308,063
---------------------------------------------
Other income (expense):
Investment and other income 8,784 16,611 34,479 37,265
Interest expense (5,735) (2,782) (19,664) (8,824)
---------------------------------------------
Other income (expense), net 3,049 13,829 14,815 28,441
---------------------------------------------
Income before taxes on income 158,274 121,067 439,613 336,504
Taxes on income 47,086 40,001 130,785 106,275
---------------------------------------------
Net income $111,188 $81,066 $308,828 $230,229
=============================================
Earnings per share1:
Primary $0.88 $0.65 $2.44 $1.84
Fully diluted $0.88 $0.65 $2.44 $1.84
Dividends per share1: $0.08 $0.07 $0.24 $0.21
Average shares outstanding
(in thousands) 1:
Primary 126,359 124,548 126,620 124,853
Fully diluted 126,380 125,048 126,642 125,282
Assets under management
(in millions):
End of period $208,811 $147,604 $208,811 $147,604
Average for period $198,174 $144,653 $183,728 $138,626
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1 All prior period amounts have been restated to reflect a three-for-two stock
dividend paid on January 15, 1997.
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<TABLE>
<CAPTION>
FRANKLIN RESOURCES, INC.
Consolidated Income Statements
(Dollar amounts in thousands
except assets under management
and per share data.) For the three months ended
30-Jun-97 31-Mar-97 31-Dec-96 30-Sep-96 30-Jun-96
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<S> <C> <C> <C> <C> <C>
Operating revenues:
Investment management fees $343,271 $308,266 $275,674 $237,344 $228,291
Underwriting and distribution fees 195,744 180,285 136,486 129,444 143,649
Shareholder servicing fees 36,614 28,797 24,828 22,957 22,911
Banking/finance, net & other 2,223 4,528 3,051 1,006 551
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Total operating revenues 577,852 521,876 440,039 390,751 395,402
--------------------------------------------------------------------------
Operating expenses:
Underwriting and distribution 209,644 184,167 142,918 132,990 144,137
Employee related 115,476 106,783 99,571 80,837 85,710
General and administrative 60,432 54,439 45,990 42,705 35,670
Advertising and promotion 28,144 23,406 18,666 20,726 18,118
Amortization of intangibles 8,931 9,057 7,345 4,448 4,529
--------------------------------------------------------------------------
Total operating expenses 422,627 377,852 314,490 281,706 288,164
--------------------------------------------------------------------------
Operating income 155,225 144,024 125,549 109,045 107,238
--------------------------------------------------------------------------
Other income (expense):
Investment and other income 8,784 6,087 19,608 13,193 16,611
Interest expense (5,735) (5,756) (8,173) (2,512) (2,782)
--------------------------------------------------------------------------
Other income (expense), net 3,049 331 11,435 10,681 13,829
--------------------------------------------------------------------------
Income before taxes on income 158,274 144,355 136,984 119,726 121,067
Taxes on income 47,086 42,944 40,755 35,225 40,001
--------------------------------------------------------------------------
Net income $111,188 $101,411 $96,229 $84,501 $81,066
==========================================================================
Earnings per share1:
Primary $0.88 $0.80 $0.76 $0.68 $0.65
Fully diluted $0.88 $0.80 $0.76 $0.67 $0.65
Dividends per share1: $0.08 $0.08 $0.08 $0.07 $0.07
Average shares outstanding
(in thousands) 1:
Primary 126,359 126,487 125,794 124,967 124,548
Fully diluted 126,380 126,507 125,801 125,418 125,048
Assets under management
(in millions):
End of period $208,811 $189,901 $180,912 $151,552 $147,604
Average for period $198,174 $186,759 $166,250 $148,434 $144,653
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1 All prior period amounts have been restated to reflect a three-for-two stock
dividend paid on January 15, 1997.
</TABLE>
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Assets Under Management
(In billions) 30-Jun-931-Mar-9731-Dec-930-Sep-9630-Jun-96
- -----------------------------------------------------------------------------
Franklin Templeton Group:
Fixed income funds:
Tax-free $44.4 $43.1 $43.2 $42.5 $41.7
US government fixed income
(primarily GNMA's) 14.7 15.2 15.6 15.6 15.5
Taxable and tax-free money
funds 3.0 3.2 2.9 2.8 2.8
Global/international fixed
income 3.5 2.9 3.0 2.9 2.9
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65.6 64.4 64.7 63.8 62.9
- -----------------------------------------------------------------------------
Equity/income funds:
Global/international equity
67.9 58.0 52.5 47.2 45.3
US equity/income 46.8 41.7 39.8 19.2 18.8
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114.7 99.7 92.3 66.4 64.1
- -----------------------------------------------------------------------------
Total Franklin Templeton
fund assets 180.3 164.1 157.0 130.2 127.0
Franklin Templeton
institutional assets 28.5 25.8 23.9 21.4 20.6
- -----------------------------------------------------------------------------
=============================================================================
Total Franklin Templeton Group $208.8 $189.9 $180.9 $151.6 $147.6
=============================================================================
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