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 21, 1999
(October 21, 1999)
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
----------------------------------------------
(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 21, 1999 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: October 21, 1999 /s/ Leslie M. Kratter
--------------------------
LESLIE M. KRATTER
Vice President
Exhibits
A. Press Release issued on October 21, 1999 by Franklin Resources, Inc.
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FROM: Franklin Resources, Inc.
Public Relations: Holly Gibson (650) 312-4701
Investor Relations: (650) 525-8900
www.frk.com
For Immediate Release
Franklin Resources Announces Fiscal Year End Results
San Mateo, CA, October 21, 1999-- Franklin Resources, Inc. (NYSE: BEN) today
reported net income of $426.7 million, or $1.69 per share diluted on revenues of
$2,262.5 million for the year ended September 30, 1999. These results included
pretax restructuring charges of $58.5 million. Had the Company not taken these
charges, diluted per share earnings would have been approximately $1.86 during
this period. Net income for the year ended September 30, 1998 was $500.5
million, or $1.98 per share diluted, on revenues of $2,577.3 million. Net income
for the quarter ended September 30, 1999 was $132.4 million, or $0.52 per share
diluted, on revenues of $574.0 million. Net income for the quarter ended
September 30, 1998 was $112.3 million, or $0.44 per share diluted, on revenues
of $598.6 million. Assets under management by the Company's subsidiaries were
$218.1 billion, compared to $227.7 billion in the preceding quarter and $208.6
billion at this time last year. Quarterly average assets under management during
the current quarter were $223.3 billion compared to $223.6 billion in the
preceding quarter and $221.6 billion in the same quarter a year ago. Franklin
Resources, Inc. provides global and domestic investment management, shareholder
and distribution services to the Franklin Templeton mutual funds and
institutional accounts in over 100 different nations worldwide. Franklin's
headquarters are located at 777 Mariners Island Blvd., San Mateo, CA.
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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
-----------------------------------------------
1999 1998 1999 1998
Operating revenues:
Investment management fees $347,308 $339,651 $1,340,612 $1,413,273
Underwriting and distribution
fees 175,743 208,483 718,871 982,647
Shareholder servicing fees 46,076 42,762 184,948 160,560
Other 4,845 7,690 18,066 20,792
-----------------------------------------------
Total operating revenues 573,972 598,586 2,262,497 2,577,272
-----------------------------------------------
Operating expenses:
Underwriting and distribution 152,348 173,328 620,047 841,706
Compensation and benefits 125,686 134,362 515,137 553,085
Information systems, technology
and occupancy 58,076 51,895 212,495 181,665
Advertising and promotion 25,925 33,538 105,935 125,925
Amortization of deferred sales
commissions 24,366 27,231 95,948 105,405
Amortization of intangible assets 9,281 9,577 37,220 36,857
Other 17,573 25,644 78,152 90,533
Restructuring charges - - 58,455 -
-----------------------------------------------
Total operating expenses 413,255 455,575 1,723,389 1,935,176
-----------------------------------------------
Operating income 160,717 143,011 539,108 642,096
-----------------------------------------------
Other income (expense):
Investment and other income 18,681 14,717 55,934 56,723
Interest expense (5,133) (6,034) (20,958) (22,535)
-----------------------------------------------
Other income (expense), net 13,548 8,683 34,976 34,188
-----------------------------------------------
Income before taxes on income 174,265 151,694 574,084 676,284
Taxes on income 41,824 39,441 147,373 175,834
-----------------------------------------------
Net income $132,441 $112,253 $426,711 $500,450
===============================================
Earnings per share:
Basic $0.53 $0.44 $1.69 $1.98
Diluted $0.52 $0.44 $1.69 $1.98
Dividends per share $0.055 $0.05 $0.22 $0.20
Average shares outstanding
(in thousands):
Basic 252,005 252,579 252,122 252,723
Diluted 252,618 252,707 252,757 252,941
Assets under management
(in millions):
End of period $218,100 $208,591 $218,100 $208,591
Simple monthly average
for period $223,345 $221,633 $219,809 $226,855
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<TABLE>
<CAPTION>
Franklin Resources, Inc.
Consolidated Income Statements
(Dollar amounts in thousands except assets
under management and per share data.)
Three months ended
30-Sep-99 30-Jun-99 31-Mar-99 31-Dec-98 30-Sep-98
<S> <C> <C> <C> <C> <C>
Operating revenues:
Investment management fees $347,308 $340,515 $322,419 $330,370 $339,651
Underwriting and distribution fees 175,743 176,118 178,406 188,604 208,483
Shareholder servicing fees 46,076 45,376 47,762 45,734 42,762
Other 4,845 4,766 5,484 2,971 7,690
-----------------------------------------------------------
Total operating revenues 573,972 566,775 554,071 567,679 598,586
-----------------------------------------------------------
Operating expenses:
Underwriting and distribution 152,348 151,353 153,300 163,046 173,328
Compensation and benefits 125,686 126,821 128,816 133,814 134,362
Information systems, technology and occupancy 58,076 53,829 52,111 48,479 51,895
Advertising and promotion 25,925 26,379 25,393 28,238 33,538
Amortization of deferred sales commissions 24,366 23,600 22,963 25,019 27,231
Amortization of intangible assets 9,281 9,283 9,283 9,373 9,577
Other 17,573 19,004 18,770 22,805 25,644
Restructuring charges - - 12,315 46,140 -
------------------------------------------------------------
Total operating expenses 413,255 410,269 422,951 476,914 455,575
------------------------------------------------------------
Operating income 160,717 156,506 131,120 90,765 143,011
------------------------------------------------------------
Other income (expense):
Investment and other income 18,681 12,227 14,490 10,536 14,717
Interest expense (5,133) (4,876) (4,776) (6,173) (6,034)
-------------------------------------------------------------
Other income (expense), net 13,548 7,351 9,714 4,363 8,683
-------------------------------------------------------------
Income before taxes on income 174,265 163,857 140,834 95,128 151,694
Taxes on income 41,824 40,550 38,363 26,636 39,441
-------------------------------------------------------------
Net income $132,441 $123,307 $102,471 $68,492 $112,253
=============================================================
Earnings per share:
Basic $0.53 $0.49 $0.41 $0.27 $0.44
Diluted $0.52 $0.49 $0.41 $0.27 $0.44
Dividends per share $0.055 $0.055 $0.055 $0.055 $0.05
Average shares outstanding (in thousands):
Basic 252,005 252,103 252,189 251,860 252,579
Diluted 252,618 252,595 252,579 252,055 252,707
Assets under management (in millions):
End of period $218,100 $227,734 $215,960 $220,236 $208,591
Simple monthly average for period $223,345 $223,620 $216,439 $216,959 $221,633
</TABLE>
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ASSETS UNDER MANAGEMENT
(In billions) 30-Sep-99 30-Jun-99 31-Mar-99 31-Dec-98 30-Sep-98
-----------------------------------------------------
Franklin Templeton Group:
Equity:
Global/international $96.8 $102.0 $91.4 $92.8 $84.8
Domestic (U.S.) 37.6 40.4 37.4 40.4 37.6
-----------------------------------------------------
Total Equity 134.4 142.4 128.8 133.2 122.4
-----------------------------------------------------
Hybrid funds <F1> 10.2 10.8 10.7 11.5 11.2
Fixed income:
Tax-free 48.2 50.0 51.6 50.9 50.5
Taxable:
Domestic
(primarily
US Govt.) 15.8 15.9 16.1 16.0 16.0
Global/international 3.9 3.9 4.0 4.0 3.7
---------------------------------------------------
Total Fixed Income 67.9 69.8 71.7 70.9 70.2
---------------------------------------------------
Money funds 5.6 4.7 4.8 4.6 4.8
===================================================
Total Franklin
Templeton Group $218.1 $227.7 $216.0 $220.2 $208.6
===================================================
<F1> Hybrid funds include asset allocation, balanced, flexible and income-mixed
funds as defined by the Investment Company Institute. Periods prior to March 31,
1999 have been restated to reflect the reclassification of certain funds to
Domestic Equity from the Hybrid category.
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