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 22, 1998
(January 20, 1998)
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..(650) 312-3000
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(Former name or former address, if changed since last report)
<PAGE>
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 20, 1998 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: January 22, 1998 /s/ Leslie M. Kratter
LESLIE M. KRATTER
Vice President
Exhibits
A. Press Release issued on January 20, 1997 by Franklin
Resources, Inc.
<PAGE>
FROM Franklin Resources, Inc.
Contact: Holly Gibson
Telephone: (650) 312-4701
Rubenstein Associates, Inc.
Public Relations - Tel: (212) 843-8053
Contact: David Sternstein
For Immediate Release
Franklin Resources Announces First Quarter Results
San Mateo, CA, January 20, 1998 -- Franklin Resources, Inc. (NYSE:BEN)
today reported net income of $130.5 million for the first fiscal quarter of
1998, compared to $96.2 million a year ago and $125.2 million for the quarter
ended September 30, 1997. Operating revenues for the quarter were $632.4 million
compared to $437.6 million a year ago and $633.9 million for the preceding
quarter.
Assets under management by the Company's subsidiaries were $221.0 billion,
compared with $180.9 billion this time last year and $226.0 billion in the
preceding quarter. Quarterly average assets under management during the quarter
were $220.6 billion compared with $166.3 billion last year, and $216.9 billion
in the preceding quarter.
After adjusting for the two-for-one stock split paid on January 15, diluted
earnings per share for the quarter ended December 31, 1997 were $0.52 compared
with $0.38 a year ago and $0.50 for the preceding quarter.<F1>
Average diluted shares outstanding for the quarter were 253.2 million as
compared to 251.6 million a year ago and 252.5 million for the previous
quarter.<F1>
Franklin's headquarters are located at 777 Mariners Island Blvd., San Mateo, CA
94404.
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<F1> All prior period amounts have been restated to reflect a two-for-one stock
split paid on January 15, 1998.
<PAGE>
FRANKLIN RESOURCES, INC.
Consolidated Income Statements
(Dollar amounts in thousands except
assets under
management and per share data.)
Three months ended
December 31
--------------------------
1997 1996
---- -----
Operating revenues:
Investment management fees $ 376,463 $ 273,260
Underwriting and distribution fees 215,287 136,486
Shareholder servicing fees 37,606 24,828
Other 3,043 3,051
--------------------------
Total operating revenues 632,399 437,625
--------------------------
Operating expenses:
Underwriting and distribution 205,312 132,283
Compensation and benefits 133,291 99,571
Information systems, technology and
occupancy 46,596 25,804
Advertising and promotion 27,362 18,666
Amortization of deferred sales
commissions 23,896 10,636
Amortization of intangible assets 8,995 7,345
Other 19,505 17,771
--------------------------
Total operating expenses 464,957 312,076
--------------------------
Operating income 167,442 125,549
--------------------------
Other income (expense):
Investment and other income 14,975 19,608
Interest expense (6,152) (8,173)
--------------------------
Other income (expense), net 8,823 11,435
-------------------------
Income before taxes on income 176,265 136,984
Taxes on income 45,750 40,755
--------------------------
Net income $ 130,515 $ 96,229
==========================
Earnings per share:<F2>
Basic $ 0.52 $ 0.38
Diluted $ 0.52 $ 0.38
Dividends per share <F2> $ 0.05 $ 0.04
Average shares outstanding
(in thousands):<F2>
Basic 252,692 250,946
Diluted 253,185 251,602
Assets under management (in millions):
End of period $ 220,989 $ 180,912
Average for period $ 220,606 $ 166,250
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<F2> All prior period amounts have been restated to reflect a two-for-one stock
split paid on January 15, 1998.
<PAGE>
<TABLE>
<CAPTION>
FRANKLIN RESOURCES, INC.
Consolidated Income Statements
(Dollar amounts in thousands except assets
under management and per share data.) Three months ended
31-Dec-97 30-Sep-97 30-Jun-97 31-Mar-97 31-Dec-96
<S> <C> <C> <C> <C> <C>
Operating revenues:
Investment management fees $ 376,463 $ 375,676 $ 337,966 $ 305,586 $ 273,260
Underwriting and distribution fees 215,287 222,597 195,744 180,285 136,486
Shareholder servicing fees 37,606 34,666 36,614 28,797 24,828
Other 3,043 968 2,223 4,528 3,051
-----------------------------------------------------------------
Total operating revenues 632,399 633,907 572,547 519,196 437,625
-----------------------------------------------------------------
Operating expenses:
Underwriting and distribution 205,312 216,540 190,867 172,638 132,283
Compensation and benefits 133,291 125,339 115,476 106,783 99,571
Information systems, technology and occupancy 46,596 48,720 31,474 29,395 25,804
Advertising and promotion 27,362 26,336 28,144 23,406 18,666
Amortization of deferred sales commissions 23,896 18,526 18,773 11,530 10,636
Amortization of intangible assets 8,995 8,961 8,931 9,057 7,345
Other 19,505 22,823 23,657 22,363 17,771
----------------------------------------------------------------
Total operating expenses 464,957 467,245 417,322 375,172 312,076
----------------------------------------------------------------
Operating income 167,442 166,662 155,225 144,024 125,549
----------------------------------------------------------------
Other income (expense):
Investment and other income
14,975 15,107 8,784 6,087 19,608
Interest expense (6,152) (5,669) (5,735) (5,756) (8,173)
----------------------------------------------------------------
Other income (expense), net 8,823 9,438 3,049 331 11,435
----------------------------------------------------------------
Income before taxes on income 176,265 176,100 158,274 144,355 136,984
Taxes on income 45,750 50,865 47,086 42,944 40,755
----------------------------------------------------------------
Net income $ 130,515 $ 125,235 $ 111,188 $ 101,411 $ 96,229
=================================================================
Earnings per share: <F3>
Basic $0.52 $0.50 $0.44 $0.40 $0.38
Diluted $0.52 $0.50 $0.44 $0.40 $0.38
Dividends per share <F3> $0.050 $0.045 $0.045 $0.040 $0.040
Average shares outstanding
(in thousands): <F3>
Basic 252,692 252,112 252,186 252,278 250,946
Diluted 253,185 252,466 252,760 253,014 251,602
Assets under management (in millions):
End of period $ 220,989 $ 225,952 $ 208,811 $ 189,901 $ 180,912
Average for period $ 220,606 $ 216,928 $ 198,174 $ 186,759 $ 166,250
- --------------------------
<F3> All prior period amounts have been restated to reflect a two-for-one stock
split paid on January 15, 1998.
</TABLE>
<TABLE>
<CAPTION>
ASSETS UNDER MANAGEMENT
(In billions) 31-Dec-97 30-Sep-97 30-Jun-97 31-Mar-97 31-Dec-96
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Franklin Templeton Group:
Fixed income funds:
Tax-free $47.0 $45.8 $44.4 $43.2 $43.2
US government (primarily GNMAs) 15.5 15.1 15.1 15.4 15.9
Taxable and tax-free money funds 3.9 3.7 3.7 3.8 3.5
Global/international 3.8 4.0 3.5 3.1 3.2
- ------------------------------------------------------------------------------------------------------------
70.2 68.6 66.7 65.5 65.8
- ------------------------------------------------------------------------------------------------------------
Equity/income funds:
Global/international equity 94.8 104.3 94.7 82.2 75.0
US equity/income 56.0 53.1 47.4 42.2 40.1
- ------------------------------------------------------------------------------------------------------------
150.8 157.4 142.1 124.4 115.1
- ------------------------------------------------------------------------------------------------------------
======================================================================================================
Total Franklin Templeton Group $221.0 $226.0 $208.8 $189.9 $180.9
======================================================================================================
</TABLE>
