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 27, 2000
(January 27, 2000)
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 January 27, 2000 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 27, 2000 /s/ Leslie M. Kratter
--------------------------
LESLIE M. KRATTER
Senior Vice President
Exhibits
A. Press Release issued on January 27, 2000 by Franklin Resources, Inc.
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FROM: Franklin Resources, Inc.
Public Relations: Holly Gibson Brady (650) 312-4701
Investor Relations: Alan Weinfeld (650) 525-8900
www.frk.com
For Immediate Release
Franklin Resources Announces First Quarter Results
San Mateo, CA, January 27, 2000-- Franklin Resources, Inc. (Franklin Templeton)
(NYSE:BEN) today reported net income of $137.5 million for the quarter ended
December 31, 1999 compared with net income of $68.5 million in the comparable
quarter a year ago. (The prior year's quarter includes pretax restructuring
charges of approximately $46 million.) Operating revenues for the quarter were
$565.7 million compared to $574.0 million for the preceding quarter and $567.7
million a year ago.
Assets under management by the company's subsidiaries were $235.0 billion,
compared to $218.1 billion in the preceding quarter and $220.2 billion at this
time last year. Quarterly average assets under management during the current
quarter were $224.1 billion compared to $223.3 billion in the preceding quarter
and $217.0 billion in the same quarter a year ago.
Diluted earnings per share for the quarter ended December 31, 1999 were $0.55 as
compared to $0.52 for the preceding quarter and $0.27 a year ago. Had the
company not taken the restructuring charge in the first fiscal quarter 1999,
diluted earnings per share would have been approximately $0.40.
Franklin Templeton provides global and domestic investment management,
shareholder and distribution services to the Franklin, Templeton and Mutual
Series mutual funds and institutional accounts in over 100 different nations
worldwide. Franklin Templeton 's headquarters are located at 777 Mariners Island
Blvd., San Mateo, CA.
Statements in this press release regarding Franklin Templeton's business which
are not historical facts are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 that involve risk and
uncertainties. For a discussion of such risks and uncertainties which could
cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's Annual Report and Form 10-K for
the most recently ended fiscal year as well as other documents filed by the
Company with the Securities and Exchange Commission.
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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
--------------------------------
1999 1998
Operating revenues:
Investment management fees $344,042 $330,370
Underwriting and distribution fees 164,243 188,604
Shareholder servicing fees 51,759 45,734
Other 5,623 2,971
--------------------------------
Total operating revenues 565,667 567,679
--------------------------------
Operating expenses:
Underwriting and distribution 143,168 163,046
Compensation and benefits 130,849 133,814
Information systems, technology and occupancy 51,631 48,479
Advertising and promotion 22,545 28,238
Amortization of deferred sales commissions 20,631 25,019
Amortization of intangible assets 9,283 9,373
Other 19,925 22,805
Restructuring charges - 46,140
--------------------------------
Total operating expenses 398,032 476,914
--------------------------------
Operating income 167,635 90,765
--------------------------------
Other income (expense):
Investment and other income 16,679 10,536
Interest expense (3,364) (6,173)
--------------------------------
Other income, net 13,315 4,363
--------------------------------
Income before taxes on income 180,950 95,128
Taxes on income 43,428 26,636
--------------------------------
Net income $137,522 $68,492
================================
Earnings per share:
Basic $0.55 $0.27
Diluted $0.55 $0.27
Dividends per share $0.06 $0.055
Average shares outstanding (in thousands):
Basic 250,432 251,860
Diluted 250,592 252,055
Assets under management (in millions):
End of period $235,047 $220,236
Simple monthly average for period $224,135 $216,959
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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
31-Dec-99 30-Sep-99 30-Jun-99 31-Mar-99 31-Dec-98
<S> <C> <C> <C> <C> <C>
Operating revenues:
Investment management fees $344,042 $347,308 $340,515 $322,419 $330,370
Underwriting and distribution fees 164,243 175,743 176,118 178,406 188,604
Shareholder servicing fees 51,759 46,076 45,376 47,762 45,734
Other 5,623 4,845 4,766 5,484 2,971
---------------------------------------------------------------
Total operating revenues 565,667 573,972 566,775 554,071 567,679
---------------------------------------------------------------
Operating expenses:
Underwriting and distribution 143,168 152,348 151,353 153,300 163,046
Compensation and benefits 130,849 125,686 126,821 128,816 133,814
Information systems, technology and occupancy 51,631 58,076 53,829 52,111 48,479
Advertising and promotion 22,545 25,925 26,379 25,393 28,238
Amortization of deferred sales commissions 20,631 24,366 23,600 22,963 25,019
Amortization of intangible assets 9,283 9,281 9,283 9,283 9,373
Other 19,925 17,573 19,004 18,770 22,805
Restructuring charges - - - 12,315 46,140
---------------------------------------------------------------
Total operating expenses 398,032 413,255 410,269 422,951 476,914
---------------------------------------------------------------
Operating income 167,635 160,717 156,506 131,120 90,765
---------------------------------------------------------------
Other income (expense):
Investment and other income 16,679 18,681 12,227 14,490 10,536
Interest expense (3,364) (5,133) (4,876) (4,776) (6,173)
---------------------------------------------------------------
Other income (expense), net 13,315 13,548 7,351 9,714 4,363
---------------------------------------------------------------
Income before taxes on income 180,950 174,265 163,857 140,834 95,128
Taxes on income 43,428 41,824 40,550 38,363 26,636
---------------------------------------------------------------
Net income $137,522 $132,441 $123,307 $102,471 $68,492
===============================================================
Earnings per share:
Basic $0.55 $0.53 $0.49 $0.41 $0.27
Diluted $0.55 $0.52 $0.49 $0.41 $0.27
Dividends per share $0.06 $0.055 $0.055 $0.055 $0.055
Average shares outstanding (in thousands):
Basic 250,432 252,005 252,103 252,189 251,860
Diluted 250,592 252,618 252,595 252,579 252,055
Assets under management (in millions):
End of period $235,047 $218,100 $227,734 $215,960 $220,236
Simple monthly average for period $224,135 $223,345 $223,620 $216,439 $216,959
</TABLE>
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ASSETS UNDER MANAGEMENT
(In billions) 31-Dec-99 30-Sep-99 30-Jun-99 31-Mar-99 31-Dec-98
------------------------------------------------------
Franklin Templeton Group:
Equity:
Global/international $111.0 $96.8 $102.0 $91.4 $92.8
Domestic 44.3 37.6 40.4 37.4 40.4
-------------------------------------------------------
Total Equity 155.3 134.4 142.4 128.8 133.2
-------------------------------------------------------
Hybrid funds 9.6 10.2 10.8 10.7 11.5
Fixed income:
Tax-free 45.2 48.2 50.0 51.6 50.9
Taxable:
Domestic 15.4 15.8 15.9 16.1 16.0
Global/international 3.9 3.9 3.9 4.0 4.0
-------------------------------------------------------
Total Fixed Income 64.5 67.9 69.8 71.7 70.9
-------------------------------------------------------
Money funds 5.6 5.6 4.7 4.8 4.6
=======================================================
Total Franklin
Templeton Group $235.0 $218.1 $227.7 $216.0 $220.2
=======================================================
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