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): April 24, 1997
(April 23, 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
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(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 April 23, 1997 by Franklin Resources, Inc.
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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: April 23, 1997 /s/ Leslie M. Kratter
LESLIE M. KRATTER
Vice President
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Exhibits
A. Press Release issued on April 23, 1997 by Franklin Resources, Inc.
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FROM Franklin Resources, Inc.
Public Relations: Holly Gibson 415/312-4701
Investor Relations: Alex Peters 415/312-6521
Rubenstein Associates Public Relations
Contact: David Sternstein 212/843-8053
- -
For Immediate Release
Franklin Resources Announces Second Quarter Results
San Mateo, CA, April 23, 1997 -- Franklin Resources, Inc. (NYSE:BEN) today
reported unaudited earnings for the quarter and six months ended March 31, 1997.
Charles B. Johnson, president of the diversified financial services company
said net income for the quarter was $101.4 million compared to $75.2 million a
year ago and $96.2 million for the quarter ended December 31, 1996. Fully
diluted earnings per share for the quarter ended March 31, 1997 were $0.80
compared with $0.60 a year ago and $0.76 for the preceding quarter (1).
Operating revenues for the period were $521.9 million compared to $393.8 million
a year ago and $440.0 million for the preceding quarter.
Average fully diluted shares outstanding for the quarter were 126.5
million as compared to 124.6 million a year ago and 125.8 million for the
previous quarter (1).
Net income for the six months was $197.6 million compared to $149.2
million for the same period a year ago. Fully diluted earnings per share were
$1.56 compared to $1.19 per share a year ago(1). Operating revenues for the six
months were $961.9 million compared to $736.4 million a year ago.
Assets under management by the Company's subsidiaries were $189.9 billion
compared with $141.4 billion this time last year and $180.9 billion in the
preceding quarter. Average assets under management during the quarter were
$186.8 billion compared with $139.1 billion last year, and $166.3 billion in the
preceding quarter.
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 Six months ended
March 31 March 31
-------------------------------------------
1997 1996 1997 1996
Operating revenues:
Investment management fees $308,266 $215,916 $583,940 $418,144
Underwriting and
distribution fees 180,285 152,910 316,771 271,946
Shareholder servicing fees 28,797 22,051 53,625 42,847
Banking/finance, net & other 4,528 2,924 7,579 3,478
-------------------------------------------
Total operating revenues 521,876 393,801 961,915 736,415
-------------------------------------------
Operating expenses:
Underwriting and
distribution 184,167 149,171 327,085 265,232
Employee related 106,783 81,726 206,354 158,588
General and administrative 54,439 39,396 100,429 69,588
Advertising and promotion 23,406 17,286 42,072 32,811
Amortization of intangibles 9,057 4,530 16,402 9,371
-------------------------------------------
Total operating expenses 377,852 292,109 692,342 535,590
-------------------------------------------
Operating income 144,024 101,692 269,573 200,825
-------------------------------------------
Other income (expense):
Investment and other income 6,087 9,989 25,695 20,654
Interest expense (5,756) (3,419) (13,929) (6,042)
-------------------------------------------
Other income (expense), net 331 6,570 11,766 14,612
-------------------------------------------
Income before taxes on income 144,355 108,262 281,339 215,437
Taxes on income 42,944 33,050 83,699 66,274
-------------------------------------------
Net income $101,411 $75,212 $197,640 $149,163
===========================================
Earnings per share (1):
Primary $ 0.80 $ 0.60 $ 1.56 $ 1.19
Fully diluted $ 0.80 $ 0.60 $ 1.56 $ 1.19
Dividends per share (1): $ 0.08 $ 0.07 $ 0.16 $ 0.14
Average shares outstanding (in thousands)(1):
Primary 126,487 124,377 126,348 124,828
Fully diluted 126,507 124,598 126,373 124,949
Assets under management (in millions):
End of period $189,901 $141,437 $189,901 $141,437
Average for period $186,759 $139,086 $176,505 $135,613
(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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<CAPTION>
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FRANKLIN RESOURCES, INC.
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Consolidated Income Statements
(Dollar amounts in thousands
except assets under management
and per share data) For the three months ended
31-Mar-97 31-Dec-96 30-Sep-96 30-Jun-96 31-Mar-96
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Operating revenues:
Investment management fees $308,266 $275,674 $237,344 $228,291 $215,916
Underwriting and
distribution fees 180,285 136,486 129,444 143,649 152,910
Shareholder servicing fees 28,797 24,828 22,957 22,911 22,051
Banking/finance, net & other 4,528 3,051 1,006 551 2,924
-----------------------------------------------------------------
Total operating revenues 521,876 440,039 390,751 395,402 393,801
-----------------------------------------------------------------
Operating expenses:
Underwriting and distribution 184,167 142,918 132,990 144,137 149,171
Employee related 106,783 99,571 80,837 85,710 81,726
General and administrative 54,439 45,990 42,705 35,670 39,396
Advertising and promotion 23,406 18,666 20,726 18,118 17,286
Amortization of intangibles 9,057 7,345 4,448 4,529 4,530
-----------------------------------------------------------------
Total operating expenses 377,852 314,490 281,706 288,164 292,109
-----------------------------------------------------------------
Operating income 144,024 125,549 109,045 107,238 101,692
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Other income (expense):
Investment and other income 6,087 19,608 13,193 16,611 9,989
Interest expense (5,756) (8,173) (2,512) (2,782) (3,419)
-----------------------------------------------------------------
Other income (expense), net 331 11,435 10,681 13,829 6,570
-----------------------------------------------------------------
Income before taxes on income 144,355 136,984 119,726 121,067 108,262
Taxes on income 42,944 40,755 35,225 40,001 33,050
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Net income $101,411 $ 96,229 $ 84,501 $ 81,066 $ 75,212
=================================================================
Earnings per share(1):
Primary $ 0.80 $ 0.76 $ 0.68 $ 0.65 $ 0.60
Fully diluted $ 0.80 $ 0.76 $ 0.67 $ 0.65 $ 0.60
Dividends per share(1) $ 0.08 $ 0.08 $ 0.07 $ 0.07 $ 0.07
Average shares outstanding (in thousands)(1):
Primary 126,487 125,794 124,967 124,548 124,377
Fully diluted 126,507 125,801 125,418 125,048 124,598
Assets under management (in millions):
End of period $189,901 $180,912 $151,552 $147,604 $141,437
Average for period $186,759 $166,250 $148,434 $144,653 $139,086
(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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