EXHIBIT 99
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FROM: Franklin Resources, Inc.
Corporate Communications: Holly Gibson Brady (650) 312-4701
Investor Relations: Alan Weinfeld (650) 525-8900
franklintempleton.com
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FOR IMMEDIATE RELEASE
Franklin Resources, Inc. Announces Third Quarter Results
San Mateo, CA, July 27, 2000-- Franklin Resources, Inc. (Franklin
Templeton Investments) (NYSE:BEN) today reported net income of $140.4 million,
or $0.58 per share diluted, on revenues of $568.9 million for the quarter ended
June 30, 2000 compared with net income of $143.4 million, or $0.58 per share
diluted, on revenues of $612.5 million in the preceding quarter and net income
of $123.3 million, or $0.49 per share diluted, on revenues of $566.8 million in
the comparable quarter a year ago.
Net income for the nine months ended June 30, 2000 was $421.3 million, or
$1.70 per share diluted, on revenues of $1,747.1 million as compared to net
income of $294.3 million, or $1.16 per share diluted, on revenues of $1,688.5
million a year ago. Pretax restructuring charges of $58.5 million, or $0.17 per
share diluted, were incurred in the comparable period last year.
As of June 30, 2000, assets under management by the company's subsidiaries
were $229.9 billion, compared to $233.4 billion in the preceding quarter and
$227.7 billion at this time last year. Simple monthly average assets under
management during the current quarter were $228.0 billion compared to $231.0
billion in the preceding quarter and $223.6 billion in the same quarter a year
ago.
Franklin Templeton Investments provides global and domestic investment
management, shareholder and distribution services to the Franklin, Templeton and
Mutual Series mutual funds, institutional and private accounts in over 100
different nations worldwide. Franklin Templeton Investments' headquarters are
located at 777 Mariners Island Blvd., San Mateo, CA.
Statements in this press release regarding Franklin Templeton Investments'
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, 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 NINE MONTHS ENDED
JUNE 30 JUNE 30
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2000 1999 2000 1999
---- ---- ----- ----
OPERATING REVENUES
Investment management fees $344,805 $340,515 $1,044,856 $993,304
Underwriting and distribution
fees 165,181 176,118 529,557 543,128
Shareholder servicing fees 54,143 45,376 159,104 138,872
Other 4,768 4,766 13,573 13,221
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TOTAL OPERATING REVENUES 568,897 566,775 1,747,090 1,688,525
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OPERATING EXPENSES
Underwriting and distribution 142,684 151,353 462,728 467,699
Compensation and benefits 133,125 126,821 398,555 389,451
Information systems,
technology and occupancy 50,708 53,829 153,780 154,419
Advertising and promotion 25,279 26,379 73,719 80,010
Amortization of deferred
sales commissions 20,980 23,600 63,211 71,582
Amortization of intangible
assets 9,283 9,283 27,849 27,939
Other 18,006 19,004 58,704 60,579
Restructuring charges - - - 58,455
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TOTAL OPERATING EXPENSES 400,065 410,269 1,238,546 1,310,134
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OPERATING INCOME 168,832 156,506 508,544 378,391
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OTHER INCOME (EXPENSE)
Investment and other income 19,836 12,227 56,267 37,253
Interest expense (3,998) (4,876) (10,542) (15,825)
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OTHER INCOME (EXPENSE), NET 15,838 7,351 45,725 21,428
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INCOME BEFORE TAXES ON INCOME 184,670 163,857 554,269 399,819
TAXES ON INCOME 44,300 40,550 133,003 105,549
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NET INCOME $140,370 $123,307 $421,266 $294,270
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EARNINGS PER SHARE
BASIC $ 0.58 $0.49 $ 1.71 $1.17
DILUTED $ 0.58 $0.49 $ 1.70 $1.16
DIVIDENDS PER SHARE $0.06 $0.055 $0.18 $0.165
AVERAGE SHARES OUTSTANDING (in thousands)
BASIC 243,542 252,103 246,933 252,161
DILUTED 243,741 252,595 247,121 252,685
ASSETS UNDER MANAGEMENT (in millions)
END OF PERIOD $229,878 $227,734 $229,878 $227,734
SIMPLE MONTHLY
AVERAGE FOR PERIOD $227,991 $223,620 $226,426 $219,287
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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
30-JUN-00 31-MAR-00 31-DEC-99 30-SEP-99 30-JUN-99
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OPERATING REVENUES
Investment management fees $344,805 $356,009 $344,042 $347,308 $340,515
Underwriting and distribution
fees 165,181 200,133 164,243 175,743 176,118
Shareholder servicing fees 54,143 53,202 51,759 46,076 45,376
Other 4,768 3,182 5,623 4,845 4,766
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TOTAL OPERATING REVENUES 568,897 612,526 565,667 573,972 566,775
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OPERATING EXPENSES
Underwriting and distribution 142,684 176,876 143,168 152,348 151,353
Compensation and benefits 133,125 134,581 130,849 125,686 126,821
Information systems,
technology and occupancy 50,708 51,441 51,631 58,076 53,829
Advertising and promotion 25,279 25,895 22,545 25,925 26,379
Amortization of deferred
sales commissions 20,980 21,600 20,631 24,366 23,600
Amortization of intangible
assets 9,283 9,283 9,283 9,281 9,283
Other 18,006 20,773 19,925 17,573 19,004
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TOTAL OPERATING EXPENSES 400,065 440,449 398,032 413,255 410,269
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OPERATING INCOME 168,832 172,077 167,635 160,717 156,506
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OTHER INCOME (EXPENSE)
Investment and other income 19,836 19,752 16,679 18,681 12,227
Interest expense (3,998) (3,180) (3,364) (5,133) (4,876)
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OTHER INCOME (EXPENSE), NET 15,838 16,572 13,315 13,548 7,351
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INCOME BEFORE TAXES ON INCOME 184,670 188,649 180,950 174,265 163,857
TAXES ON INCOME 44,300 45,275 43,428 41,824 40,550
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NET INCOME $140,370 $143,374 $137,522 $132,441 $123,307
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EARNINGS PER SHARE
BASIC $ 0.58 $0.58 $0.55 $0.53 $0.49
DILUTED $ 0.58 $0.58 $0.55 $0.52 $0.49
DIVIDENDS PER SHARE $0.06 $0.06 $0.06 $0.055 $0.055
AVERAGE SHARES OUTSTANDING (in thousands)
BASIC 243,542 246,826 250,432 252,005 252,103
DILUTED 243,741 246,998 250,592 252,618 252,595
ASSETS UNDER MANAGEMENT (in millions)
END OF PERIOD $229,878 $233,358 $235,047 $218,100 $227,734
SIMPLE MONTHLY AVERAGE
FOR PERIOD $227,991 $231,042 $224,135 $223,345 $223,620
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ASSETS UNDER MANAGEMENT
(In billions) 30-JUN-00 31-MAR-00 31-DEC-99 30-SEP-99 30-JUN-99
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Franklin Templeton Investments
Equity
$103.6 $106.2 $111.0 $96.8 $102.0
Global/international
Domestic 49.6 49.3 44.3 37.6 40.4
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Total Equity 153.2 155.5 155.3 134.4 142.4
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Hybrid funds 8.9 9.0 9.6 10.2 10.8
Fixed income
Tax-free 43.8 44.6 45.2 48.2 50.0
Taxable
Domestic 15.3 15.0 15.4 15.8 15.9
Global/international 3.5 3.6 3.9 3.9 3.9
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Total Fixed Income 62.6 63.2 64.5 67.9 69.8
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Money funds 5.2 5.7 5.6 5.6 4.7
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Total Franklin
Templeton Investments $229.9 $233.4 $235.0 $218.1 $227.7
============================================================
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