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): October 23, 1997
(October 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 October 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: October 23, 1997 /s/ Leslie M. Kratter
LESLIE M. KRATTER
Vice President
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Exhibits
A. Press Release issued on October 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, Inc. Public Relations
Contact: David Sternstein 212/843-8053
For Immediate Release
Franklin Resources Announces Fiscal Year End Results
San Mateo, CA, October 23, 1997 -- Franklin Resources, Inc. (NYSE:BEN)
today reported net income of $125.2 million for the fourth fiscal quarter of
1997, 48% above the fourth fiscal quarter of 1996 and 13% above the previous
record of $111.2 million for the quarter ended June 30, 1997. Fully diluted
earnings per share for the quarter ended September 30, 1997 were $0.99 compared
with $0.67 a year ago and $0.88 for the preceding quarter1 . Operating revenues
for the quarter were $643.1 million compared to $390.8 million a year ago and
$577.9 million for the preceding quarter.
Assets under management by the Company's subsidiaries were $226.0 billion,
compared with $151.6 billion this time last year and $208.8 billion in the
preceding quarter. Quarterly average assets under management during the quarter
were $216.9 billion compared with $148.4 billion last year, and $198.2 billion
in the preceding quarter.
Net income for the fiscal year was $434.1 million compared to $314.7
million a year ago. Fully diluted earnings per share were $3.43 per share
compared to $2.50 per share a year ago1. Operating revenues for the year were
$2.2 billion compared to $1.5 billion a year ago.
Average fully diluted shares outstanding for the quarter were 126.2 million
as compared to 125.4 million a year ago and 126.4 million for the previous
quarter1.
Franklin's headquarters are located at 777 Mariners Island Blvd., San
Mateo, CA 94404.
# # #
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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 Year ended
September 30 September 30
-------------------- -----------------------
1997 1996 1997 1996
Operating revenues:
Investment management fees $384,890 $237,344 $1,312,101 $ 883,779
Underwriting and distribution fees 222,597 129,444 735,112 545,039
Shareholder servicing fees 34,666 22,957 124,905 88,715
Banking/finance, net & other 968 1,006 10,770 5,035
-------------------- -----------------------
Total operating revenues 643,121 390,751 2,182,888 1,522,568
-------------------- -----------------------
Operating expenses:
Underwriting and distribution 235,067 132,990 771,796 542,359
Employee related 125,339 80,837 447,169 325,135
General and administrative 80,756 42,705 241,617 147,963
Advertising and promotion 26,336 20,726 96,552 71,655
Amortization of intangible assets 8,961 4,448 34,294 18,348
-------------------- -----------------------
Total operating expenses 476,459 281,706 1,591,428 1,105,460
-------------------- -----------------------
Operating income
166,662 109,045 591,460 417,108
-------------------- -----------------------
Other income (expense):
Investment and other income 15,107 13,193 49,586 50,458
Interest expense (5,669) (2,512) (25,333) (11,336)
-------------------- -----------------------
Other income (expense), net 9,438 10,681 24,253 39,122
-------------------- -----------------------
Income before taxes on income 176,100 119,726 615,713 456,230
Taxes on income 50,865 35,225 181,650 141,500
-------------------- -----------------------
Net income $125,235 $ 84,501 $ 434,063 $ 314,730
==================== =======================
Earnings per share:
Primary $ 0.99 $ 0.68 $ 3.43 $ 2.52
Fully diluted $ 0.99 $ 0.67 $ 3.43 $ 2.50
Dividends per share $ 0.09 $ 0.07 $ 0.34 $ 0.28
Average shares outstanding
(in thousands):1
Primary 126,218 124,967 126,715 124,970
Fully diluted 126,233 125,418 126,733 125,642
Assets under management (in millions):
End of period $225,952 $151,552 $ 225,952 $ 151,552
Average for period $216,928 $148,434 $ 192,028 $ 141,078
1 All prior period amounts have been restated to reflect a
three-for-two stock dividend
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<CAPTION>
FRANKLIN RESOURCES, INC.
Consolidated Income Statements
(Dollar amounts in thousands
except assets under management
and per share data) Three months ended
30-Sep-97 30-Jun-97 31-Mar-97 31-Dec-96 30-Sep-96
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Operating revenues:
Investment management fees $384,890 $343,271 $308,266 $275,674 $237,344
Underwriting and distribution fees 222,597 195,744 180,285 136,486 129,444
Shareholder servicing fees 34,666 36,614 28,797 24,828 22,957
Banking/finance, net and other 968 2,223 4,528 3,051 1,006
---------------------------------------------------
Total operating revenues 643,121 577,852 521,876 440,039 390,751
---------------------------------------------------
Operating expenses:
Underwriting and distribution 235,067 209,644 184,167 142,918 132,990
Employee related 125,339 115,476 106,783 99,571 80,837
General and administrative 80,756 60,432 54,439 45,990 42,705
Advertising and promotion 26,336 28,144 23,406 18,666 20,726
Amortization of intangible assets 8,961 8,931 9,057 7,345 4,448
---------------------------------------------------
Total operating expenses 476,459 422,627 377,852 314,490 281,706
---------------------------------------------------
Operating income 166,662 155,225 144,024 125,549 109,045
---------------------------------------------------
Other income (expense):
Investment and other income 15,107 8,784 6,087 19,608 13,193
Interest expense (5,669) (5,735) (5,756) (8,173) (2,512)
---------------------------------------------------
Other income (expense), net 9,438 3,049 331 11,435 10,681
---------------------------------------------------
Income before taxes on income 176,100 158,274 144,355 136,984 119,726
Taxes on income 50,865 47,086 42,944 40,755 35,225
---------------------------------------------------
Net income $125,235 $111,188 $101,411 $ 96,229 $ 84,501
===================================================
Earnings per share:
Primary $ 0.99 $ 0.88 $ 0.80 $ 0.76 $ 0.68
Fully diluted $ 0.99 $ 0.88 $ 0.80 $ 0.76 $ 0.67
Dividends per share $ 0.09 $ 0.09 $ 0.08 $ 0.08 $ 0.07
Average shares outstanding
(in thousands):1
Primary 126,218 126,359 126,487 125,794 124,967
Fully diluted
126,233 126,380 126,507 125,801 125,418
Assets under management (in millions):
End of period $225,952 $208,811 $189,901 $180,912 $151,552
Average for period $216,928 $198,174 $186,759 $166,250 $148,434
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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ASSETS UNDER MANAGEMENT
(In billions) 30-Sep-97 30-Jun-97 31-Mar-97 31-Dec-96 30-Sep-96
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<S> <C> <C> <C> <C> <C>
Franklin Templeton Group:
Fixed income funds:
Tax-free $ 45.8 $ 44.4 $ 43.1 $ 43.2 $ 42.5
US government fixed income
(primarily GNMA's) 14.8 14.7 15.2 15.6 15.6
Taxable and tax-free money funds 3.1 3.0 3.2 2.9 2.8
Global/international fixed income 3.7 3.5 2.9 3.0 2.9
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67.4 65.6 64.4 64.7 63.8
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Equity/income funds:
Global/international equity 74.8 67.9 58.0 52.5 47.2
US equity/income 53.0 46.8 41.7 39.8 19.2
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127.8 114.7 99.7 92.3 66.4
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Total Franklin Templeton fund
assets 195.2 180.3 164.1 157.0 130.2
Franklin Templeton institutional
assets 30.8 28.5 25.8 23.9 21.4
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Total Franklin Templeton Group $ 226.0 $208.8 $ 189.9 $ 180.9 $ 151.6
============================================================================================
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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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