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): January 23, 1997
(January 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) 312-2000
.......................................................................
(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 January 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: January 23, 1997 /s/ Leslie M. Kratter
LESLIE M. KRATTER
Vice President
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Exhibits
A. Press Release issued on January 23, 1997
by Franklin Resources, Inc.
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From: Franklin Resources, Inc.
Tel:(415) 312-4701
Contact: Holly Gibson
Rubenstein Associates
Tel: (212) 843-8053
Contact: David Sternstein
- -----------------------------------------------------------------------
For Immediate Release
Franklin Resources Announces First Quarter Results
San Mateo, CA, January 23, 1997 -- Franklin Resources, Inc. (NYSE:BEN)
today reported earnings for the quarter ended December 31, 1996.
Charles B. Johnson, president of the diversified financial services
company, said net income for the quarter was $96.2 million compared to $74.0
million a year ago and $84.5 million for the quarter ended September 30, 1996.
Operating revenues for the quarter were $440.0 million compared to $342.6
million a year ago and $390.8 million for the preceding quarter.
The Company's merger of business with Heine Securities Corporation became
effective November 1, 1996. Earnings for the quarter include two months of
post-merger results of operations. Investment income includes realized gains
from the disposition of some of the Company's investment portfolio, the proceeds
of which were used to fund portions of the Heine transaction.
After adjusting for a three-for-two stock split payable on January 15,
1997, the issuance of shares in connection with the Heine merger and the
repurchase of and the conversion to equity of the Company's $150 million of
subordinated debentures and associated option rights, fully diluted earnings per
share for the quarter ended December 31, 1996 were $0.76 compared to $0.59 a
year ago and $0.67 for the preceding quarter. After all such adjustments,
average fully diluted shares outstanding for the quarter were 125.8 million as
compared to 125.3 million a year ago and 125.4 million for the previous quarter.
Assets under management by the Company's subsidiaries were $180.9 billion
at December 31, 1996, which included $19.4 billion in assets of the Mutual
Series funds, compared with $135.1 billion a year ago and $151.6 billion in the
previous quarter. Average assets under management during the quarter were $166.3
billion as compared to $132.1 billion a year ago and $148.4 billion in the
preceding quarter.
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
December 31
-------------------------
1996 1995
Operating revenues:
Investment management fees $275,674 $202,228
Underwriting and distribution fees 136,486 119,036
Shareholder servicing fees 24,828 20,796
Banking/finance, net & other 3,051 554
-------------------------
Total operating revenues 440,039 342,614
-------------------------
Operating expenses:
Underwriting and distribution 142,918 116,061
Employee related 99,571 76,862
General and administrative 45,990 30,192
Advertising and promotion 18,666 15,525
Amortization of goodwill 7,345 4,841
-------------------------
Total operating expenses 314,490 243,481
-------------------------
Operating income 125,549 99,133
-------------------------
Other income (expense):
Investment and other income 19,608 10,665
Interest expense (8,173) (2,623)
-------------------------
Other income (expense), net 11,435 8,042
-------------------------
Income before taxes on income 136,984 107,175
Taxes on income 40,755 33,224
-------------------------
Net income $ 96,229 $ 73,951
=========================
Earnings per share
Primary $ 0.76 $ 0.59
Fully diluted $ 0.76 $ 0.59
Dividends per share $ 0.08 $ 0.07
Average shares outstanding (in thousands):
Primary 125,794 125,279
Fully diluted 125,801 125,300
Assets under management (in millions):
End of period $180,912 $135,113
Average for period $166,250 $132,140
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FRANKLIN RESOURCES, INC.
Consolidated Income Statements
(Dollar amounts in thousands
except assets under management
and per share data) For the three months ended
31-Dec-96 30-Sep-96 30-Jun-96 31-Mar-96 31-Dec-95
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Operating revenues:
Investment management fees $275,674 $237,344 $228,291 $215,916 $202,228
Underwriting and
distribution fees 136,486 129,444 143,649 152,910 119,036
Shareholder servicing fees 24,828 22,957 22,911 22,051 20,796
Banking/finance, net & other 3,051 1,006 551 2,924 554
-------------------------------------------------------------
Total operating revenues 440,039 390,751 395,402 393,801 342,614
-------------------------------------------------------------
Operating expenses:
Underwriting and distribution 142,918 132,990 144,137 149,171 116,061
Employee related 99,571 80,837 85,710 81,726 76,862
General and administrative 45,990 42,705 35,670 39,396 30,192
Advertising and promotion 18,666 20,726 18,118 17,286 15,525
Amortization of intangibles 7,345 4,448 4,529 4,530 4,841
-------------------------------------------------------------
Total operating expenses 314,490 281,706 288,164 292,109 243,481
-------------------------------------------------------------
Operating income 125,549 109,045 107,238 101,692 99,133
-------------------------------------------------------------
Other income (expense):
Investment and other income 19,608 13,193 16,611 9,989 10,665
Interest expense (8,173) (2,512) (2,782) (3,419) (2,623)
-------------------------------------------------------------
Other income (expense), net 11,435 10,681 13,829 6,570 8,042
-------------------------------------------------------------
Income before taxes on income 136,984 119,726 121,067 108,262 107,175
Taxes on income 40,755 35,225 40,001 33,050 33,224
-------------------------------------------------------------
Net income $ 96,229 $ 84,501 $ 81,066 $ 75,212 $ 73,951
=============================================================
Earnings per share
Primary $ 0.76 $ 0.68 $ 0.65 $ 0.60 $ 0.59
Fully diluted $ 0.76 $ 0.67 $ 0.65 $ 0.60 $ 0.59
Dividends per share $ 0.08 $ 0.07 $ 0.07 $ 0.07 $ 0.07
Average shares outstanding (in thousands):
Primary 125,794 124,967 124,548 124,377 125,279
Fully diluted 125,801 125,418 125,048 124,598 125,300
Assets under management (in millions):
End of period $180,912 $151,552 $147,604 $141,437 $135,113
Average for period $166,250 $148,434 $144,653 $139,086 $132,140
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