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): April 25, 2000
(April 20, 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 April 20, 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: April 25, 2000 /s/ Harmon E. Burns
--------------------------
HARMON E. BURNS
Vice Chairman
Exhibits
A. Press Release issued on April 20, 2000 by Franklin Resources, Inc.
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FROM: Franklin Resources, Inc.
Corporate Communications: Holly Gibson Brady (650) 312-4701
Investor Relations: Alan Weinfeld (650) 525-8900
www.frk.com
For Immediate Release
Franklin Resources Announces Second Quarter Results
San Mateo, CA, April 20, 2000-- Franklin Resources, Inc. (Franklin Templeton)
(NYSE:BEN) today reported net income of $143.4 million, or $0.58 per share
diluted, on revenues of $612.5 million for the quarter ended March 31, 2000
compared with net income of $137.5 million, or $0.55 per share diluted, on
revenues of $565.7 million in the preceding quarter and net income of $102.5
million, or $0.41 per share diluted, on revenues of $554.1 million in the
comparable quarter a year ago. Pretax restructuring charges of approximately
$12.3 million, or $0.04 per share diluted, were incurred in the comparable
quarter a year ago.
Net income for the six months ended March 31, 2000 was $280.9 million, or $1.13
per share diluted, on revenues of $1,178.2 million as compared to net income of
$171.0 million, or $0.68 per share diluted, on revenues of $1,121.8 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 March 31, 2000, assets under management by the company's subsidiaries were
$233.4 billion, compared to $235.0 billion in the preceding quarter and $216.0
billion at this time last year. Quarterly average assets under management during
the current quarter were $231.0 billion compared to $224.1 billion in the
preceding quarter and $216.4 billion in the same quarter a year ago.
During the three months ended March 31, 2000, the company continued its policy
of repurchasing shares of its common stock in the market. A total of 5.2 million
shares were repurchased at a cost of $151.0 million.
Franklin Templeton 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'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, 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.
-MORE-
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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 Six months ended
March 31 March 31
----------------------------------------
2000 1999 2000 1999
Operating revenues
Investment management fees $356,009 $322,419 $700,051 $652,789
Underwriting and distribution fees 200,133 178,406 364,376 367,010
Shareholder servicing fees 53,202 47,762 104,961 93,496
Other 3,182 5,484 8,805 8,455
----------------------------------------
Total operating revenues 612,526 554,071 1,178,193 1,121,750
----------------------------------------
Operating expenses
Underwriting and distribution 176,876 153,300 320,044 316,346
Compensation and benefits 134,581 128,816 265,430 262,630
Information systems, technology
and occupancy 51,441 52,111 103,072 100,590
Advertising and promotion 25,895 25,393 48,440 53,631
Amortization of deferred sales
commissions 21,600 22,963 42,231 47,982
Amortization of intangible assets 9,283 9,283 18,566 18,656
Other 20,773 18,770 40,698 41,575
Restructuring charges - 12,315 - 58,455
---------------------------------------
Total operating expenses 440,449 422,951 838,481 899,865
---------------------------------------
Operating income 172,077 131,120 339,712 221,885
---------------------------------------
Other income (expense)
Investment and other income 19,752 14,490 36,431 25,026
Interest expense (3,180) (4,776) (6,544) (10,949)
---------------------------------------
Other income (expense), net 16,572 9,714 29,887 14,077
---------------------------------------
Income before taxes on income 188,649 140,834 369,599 235,962
Taxes on income 45,275 38,363 88,703 64,999
---------------------------------------
Net income $143,374 $102,471 $280,896 $170,963
========================================
Earnings per share
Basic $0.58 $0.41 $1.13 $0.68
Diluted $0.58 $0.41 $1.13 $0.68
Dividends per share $0.06 $0.055 $0.12 $0.11
Average shares outstanding
(in thousands)
Basic 246,826 252,189 248,629 252,025
Diluted 246,998 252,579 248,792 252,804
Assets under management
(in millions)
End of period $233,358 $215,960 $233,358 $215,960
Simple monthly average for period $231,042 $216,439 $227,588 $216,194
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<CAPTION>
Franklin Resources, Inc.
Consolidated Income Statements
(Dollar amounts in thousands except assets
Under management and per share data.) Three months ended
31-Mar-00 31-Dec-99 30-Sep-99 30-Jun-99 31-Mar-99
<S> <C> <C> <C> <C> <C>
Operating revenues
Investment management fees $356,009 $344,042 $347,308 $340,515 $322,419
Underwriting and distribution fees 200,133 164,243 175,743 176,118 178,406
Shareholder servicing fees 53,202 51,759 46,076 45,376 47,762
Other 3,182 5,623 4,845 4,766 5,484
---------------------------------------------------------------
Total operating revenues 612,526 565,667 573,972 566,775 554,071
---------------------------------------------------------------
Operating expenses
Underwriting and distribution 176,876 143,168 152,348 151,353 153,300
Compensation and benefits 134,581 130,849 125,686 126,821 128,816
Information systems, technology and occupancy 51,441 51,631 58,076 53,829 52,111
Advertising and promotion 25,895 22,545 25,925 26,379 25,393
Amortization of deferred sales commissions 21,600 20,631 24,366 23,600 22,963
Amortization of intangible assets 9,283 9,283 9,281 9,283 9,283
Other 20,773 19,925 17,573 19,004 18,770
Restructuring charges - - - - 12,315
---------------------------------------------------------------
Total operating expenses 440,449 398,032 413,255 410,269 422,951
---------------------------------------------------------------
Operating income 172,077 167,635 160,717 156,506 131,120
---------------------------------------------------------------
Other income (expense)
Investment and other income 19,752 16,679 18,681 12,227 14,490
Interest expense (3,180) (3,364) (5,133) (4,876) (4,776)
---------------------------------------------------------------
Other income (expense), net 16,572 13,315 13,548 7,351 9,714
---------------------------------------------------------------
Income before taxes on income 188,649 180,950 174,265 163,857 140,834
Taxes on income 45,275 43,428 41,824 40,550 38,363
---------------------------------------------------------------
Net income $143,374 $137,522 $132,441 $123,307 $102,471
===============================================================
Earnings per share
Basic $0.58 $0.55 $0.53 $0.49 $0.41
Diluted $0.58 $0.55 $0.52 $0.49 $0.41
Dividends per share $0.06 $0.06 $0.055 $0.055 $0.055
Average shares outstanding (in thousands)
Basic 246,826 250,432 252,005 252,103 252,189
Diluted 246,998 250,592 252,618 252,595 252,579
Assets under management (in millions)
End of period $233,358 $235,047 $218,100 $227,734 $215,960
Simple monthly average for period $231,042 $224,135 $223,345 $223,620 $216,439
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<CAPTION>
ASSETS UNDER MANAGEMENT
(In billions) 31-Mar-00 31-Dec-99 30-Sep-99 30-Jun-99 31-Mar-99
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Franklin Templeton Group
Equity
Global/international $106.2 $111.0 $96.8 $102.0 $91.4
Domestic 49.3 44.3 37.6 40.4 37.4
------------------------------------------------------------------
Total Equity 155.5 155.3 134.4 142.4 128.8
------------------------------------------------------------------
Hybrid funds 9.0 9.6 10.2 10.8 10.7
Fixed income
Tax-free 44.6 45.2 48.2 50.0 51.6
Taxable
Domestic 15.0 15.4 15.8 15.9 16.1
Global/international 3.6 3.9 3.9 3.9 4.0
------------------------------------------------------------------
Total Fixed Income 63.2 64.5 67.9 69.8 71.7
------------------------------------------------------------------
Money funds 5.7 5.6 5.6 4.7 4.8
==================================================================
Total Franklin Templeton Group $233.4 $235.0 $218.1 $227.7 $216.0
==================================================================
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