<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1997
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________________ to _______________________
Commission File Number: 1-9468
NEW ENGLAND INVESTMENT COMPANIES, L.P.
--------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 13-3405992
- ---------------------------------- -------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
399 Boylston Street, Boston, Massachusetts 02116
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(617) 578-3500
------------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
[X] Yes [ ] No
The issuer is a limited partnership. There were 44,309,786 units of limited
partner interest and 110,000 units of general partner interest outstanding on
July 31, 1997.
1 of 14
<PAGE>
NEW ENGLAND INVESTMENT COMPANIES, L.P.
Index to Form 10-Q
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements. Page
-------------------- ----
<C> <S> <C>
Consolidated Balance Sheet as of December 31, 1996
and June 30, 1997 3
Consolidated Statement of Income for the three and six months
ended June 30, 1996 and 1997 4
Consolidated Statement of Cash Flows for the six months
ended June 30, 1996 and 1997 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
-------------------------------------------------
Condition and Results of Operations. 8
-----------------------------------
PART II - OTHER INFORMATION
- ---------------------------
Item 4. Submission of Matters to a Vote of Security Holders. 12
----------------------------------------------------
Item 5. Other Information. 12
------------------
Item 6. Exhibits and Reports on Form 8-K. 13
---------------------------------
SIGNATURES
- ---------- 14
</TABLE>
2 of 14
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
---------------------
NEW ENGLAND INVESTMENT COMPANIES, L.P.
CONSOLIDATED BALANCE SHEET
(in thousands)
<TABLE>
<CAPTION>
December 31, 1996 June 30, 1997
----------------- -------------
(unaudited)
Assets
- ------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 49,914 $ 88,610
Accounts receivable 66,430 77,824
Other 6,692 8,763
---------- ----------
Total current assets 123,036 175,197
Intangible assets 527,765 604,049
Fixed assets 19,236 22,564
Other assets 51,621 50,355
---------- ----------
Total assets $721,658 $852,165
========== ==========
Liabilities and Partners' Capital
- ---------------------------------
Current liabilities:
Accounts payable and accrued expenses $ 38,651 $ 42,740
Accrued compensation and benefits 43,612 41,893
Distribution payable 20,084 26,285
---------- ----------
Total current liabilities 102,347 110,918
Deferred compensation, benefits and other 28,686 23,523
Notes payable 118,334 278,283
Deferred purchase consideration 144,027 -
---------- ----------
Total liabilities 393,394 412,724
Contingent liabilities (note 3)
Partners' capital 328,264 439,441
---------- ----------
Total liabilities and partners'
capital $721,658 $852,165
========== ==========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3 of 14
<PAGE>
NEW ENGLAND INVESTMENT COMPANIES, L.P.
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per unit data, unaudited)
<TABLE>
<CAPTION>
Three Months Ended, Six Months Ended
June 30, June 30,
--------------------- ---------------------
1996 1997 1996 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues
- --------
Management and advisory fees $ 82,717 $116,395 $162,630 $232,504
Other revenues and interest income 12,329 10,807 21,741 21,495
Gain on partial sale of affiliate - - 4,988 -
-------- -------- -------- --------
95,046 127,202 189,359 253,999
-------- -------- -------- --------
Expenses
- --------
Compensation and benefits 44,903 62,190 88,339 127,189
Restricted unit plan compensation 1,268 102 2,620 235
Amortization of intangibles 6,081 8,991 11,482 18,259
Depreciation and amortization 1,282 1,656 2,486 3,212
Occupancy and equipment 2,751 3,414 5,335 7,138
Interest expense 2,156 4,942 4,249 8,820
Other 18,047 23,287 35,355 44,958
-------- -------- -------- --------
76,488 104,582 149,866 209,811
-------- -------- -------- --------
Income before income taxes 18,558 22,620 39,493 44,188
Income tax expense 1,208 1,111 1,829 2,326
-------- -------- -------- --------
Net income $ 17,350 $ 21,509 $ 37,664 $ 41,862
======== ======== ======== ========
Net income per unit $ 0.47 $ 0.50 $ 1.00 $ 0.98
======== ======== ======== ========
Distributions declared per unit $ 0.51 $ 0.61 $ 0.99 $ 1.19
======== ======== ======== ========
Weighted average units outstanding 40,521 43,088 40,453 43,088
======== ======== ======== ========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
4 of 14
<PAGE>
NEW ENGLAND INVESTMENT COMPANIES, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands, unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
----------------------------
1996 1997
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 37,664 $ 41,862
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of intangibles 11,482 18,259
Restricted unit plan compensation 2,620 235
Gain on partial sale of affiliate (4,988) -
------------ -----------
Sub-total 46,778 60,356
Depreciation and amortization 2,486 3,212
Increase in accounts receivable and other assets (9,123) (12,246)
Increase (decrease) in accounts payable and other liabilities 5,267 (2,793)
------------ -----------
Net cash provided by operating activities 45,408 48,529
------------ -----------
Cash flows from investing activities:
Capital expenditures (2,546) (5,441)
Acquisition payments, net of cash acquired (5,885) (41,238)
Proceeds from partial sale of affiliate 4,988 -
------------ -----------
Net cash used in investing activities (3,443) (46,679)
------------ -----------
Cash flows from financing activities:
Proceeds from notes payable 110,000 160,000
Repayment of notes payable (80,919) (50)
Payment of deferred purchase consideration - (79,635)
Distributions paid to unitholders (35,904) (43,550)
Proceeds from exercise of stock options - 81
------------ -----------
Net cash provided by (used in) financing activities (6,823) 36,846
------------ -----------
Net increase in cash and cash equivalents 35,142 38,696
Cash and cash equivalents, beginning of period 34,385 49,914
------------ -----------
Cash and cash equivalents, end of period $ 69,527 $ 88,610
============ ===========
Cash paid during the period for interest $ 2,529 $ 5,212
============ ===========
Cash paid during the period for income taxes $ 1,664 $ 2,157
============ ===========
Supplemental disclosure of non-cash
increase in partners' capital $ 9,723 $ 118,750
============ ===========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
5 of 14
<PAGE>
NEW ENGLAND INVESTMENT COMPANIES, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The unaudited consolidated financial statements of New England Investment
Companies, L.P. (the "Partnership") have been prepared in accordance with the
rules and regulations of the Securities and Exchange Commission. These financial
statements should be read in conjunction with the annual report of the
Partnership filed on Form 10-K for the year ended December 31, 1996. In the
opinion of management, all adjustments, consisting only of normal recurring
accruals, have been made to present fairly the financial statements of the
Partnership at June 30, 1997 and for the three and six month periods ended
June 30, 1996 and 1997.
Certain amounts in prior period financial statements have been reclassified to
conform with the 1997 presentation.
NOTE 2 - NET INCOME PER UNIT
- ----------------------------
Net income per publicly held unit ("net income per unit") follows:
<TABLE>
<CAPTION>
Three Months Ended, Six Months Ended
June 30, June 30,
--------------------- ---------------------
1996 1997 1996 1997
-------- -------- -------- --------
(in thousands, except per unit data)
<S> <C> <C> <C> <C>
Net income $ 17,350 $ 21,509 $ 37,664 $ 41,862
Restricted unit plan compensation and other 1,493 102 2,620 235
-------- -------- -------- --------
Income available for allocation $ 18,843 $ 21,611 $ 40,284 $ 42,097
======== ======== ======== ========
Net income per unit $ 0.47 $ 0.50 $ 1.00 $ 0.98
======== ======== ======== ========
Net income per unit is calculated using the following weighted average units outstanding:
Weighted average actual units outstanding 37,657 43,088 37,526 43,088
Units assumed outstanding to settle
deferred purchase consideration 2,864 - 2,927 -
-------- -------- -------- --------
Weighted average units outstanding 40,521 43,088 40,453 43,088
======== ======== ======== ========
</TABLE>
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, "Earnings per Share." The standard
specifies the computation, presentation and disclosure requirements for net
income per unit and is effective for the Partnership's financial statements for
the year ending December 31, 1997. The adoption of the standard is not expected
to have a material effect on the financial statements of the Partnership.
NOTE 3 - CONTINGENT LIABILITIES
- -------------------------------
The Partnership is subject to legal proceedings and claims which have arisen in
the ordinary course of its business. In the opinion of management, the amount of
ultimate liability with respect to these actions, if any, will not materially
adversely affect the results of operations or financial condition of the
Partnership.
6 of 14
<PAGE>
NEW ENGLAND INVESTMENT COMPANIES, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
NOTE 4 - TAX CONSIDERATIONS FOR PUBLIC UNITHOLDERS
- --------------------------------------------------
Under a 1987 tax law, New England Investment Companies and similar publicly
traded partnerships were scheduled to lose their tax-advantaged partnership
status and become subject to the federal corporate income tax following December
31, 1997. However, under the Taxpayer Relief Act of 1997, which was signed into
law on August 5, 1997, a publicly traded partnership may elect to extend its
partnership status from year-to-year on an indefinite basis, upon payment of a
3.5% annual tax on qualifying (gross) revenues. Management is studying the
possible application of the election and tax, together with related
restructuring possibilities. In this regard, the Partnership Agreement confers
broad authority and absolute discretion on the General Partner of the
Partnership to effect (or not to effect) a restructuring to the Partnership and
the ownership thereof. See "Possible Future Restructuring of the Partnership"
included in Item 1, and Note 6 of the Notes to the Consolidated Financial
Statements of the Partnership included in Item 8 of the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1996. In reviewing these
matters, management continues to focus on providing the optimal long-term
benefit to unitholders.
NOTE 5 - NOTES PAYABLE
- ----------------------
On April 1, 1997, the Partnership completed the private placement of
$160,000,000 of 7.15% Senior Notes due April 1, 2007. The Notes have an
effective interest rate of 7.29%, including deferred debt issuance costs which
are amortized to interest expense over the term of the Notes.
NOTE 6 - ACQUISITION (SUBSEQUENT EVENT)
- ---------------------------------------
On July 9, 1997, the Partnership acquired certain assets and assumed certain
liabilities of Snyder Capital Management, Inc., an investment management company
with approximately $1.1 billion of equity assets under management. Snyder
Capital Management will continue to operate out of its San Francisco office. The
acquisition will be accounted for under the purchase method of accounting.
7 of 14
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations.
----------------------
Any statements in this report that are not historical facts are intended to
fall within the safe harbor for forward-looking statements provided by the
Private Securities Litigation Reform Act of 1995. Any forward-looking
statements should be considered in light of the risks and uncertainties
attendant to the Partnership and its business, which may cause actual results
to vary materially from what had been anticipated. Certain factors that
affect the Partnership have been described in the Partnership's filings with
the Securities and Exchange Commission, particularly the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1996 (under Item 1,
"Business--Forward-Looking Statements") and include factors such as conditions
affecting fee revenues, reliance on key personnel, competition, regulatory and
legal factors, tax considerations and possible future restructurings. Readers
are encouraged to review these factors carefully.
General
-------
Consolidated financial information of the Partnership for the three and six
months ended June 30 follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
1996 1997 1996 1997
---- ---- ---- ----
(in thousands, except per unit data)
<S> <C> <C> <C> <C>
Total revenues before non-
recurring item $95,046 $127,202 $184,371 $253,999
Total expenses 77,696 105,693 151,695 212,137
----------- ----------- ---------- ----------
Net income before
non-recurring item 17,350 21,509 32,676 41,862
Non-recurring item - gain on
partial sale of affiliate - - 4,988 -
----------- ----------- ---------- ----------
Net income $17,350 $ 21,509 $ 37,664 $ 41,862
=========== =========== ========== ==========
Net income per unit $ 0.47 $ 0.50 $ 1.00 $ 0.98
=========== =========== ========== ==========
Distributions declared per
unit $ 0.51 $ 0.61 $ 0.99 $ 1.19
=========== =========== ========== ==========
Operating cash flow/1/ $24,699 $ 30,602 $ 46,778 $ 60,356
=========== =========== ========== ==========
Operating cash flow per
unit/1/ $ 0.61 $ 0.71 $ 1.16 $ 1.40
=========== =========== ========== ==========
Weighted average units
outstanding 40,521 43,088 40,453 43,088
=========== =========== ========== ==========
</TABLE>
1. Operating cash flow represents net income adjusted for restricted unit plan
compensation, amortization of intangibles and non-recurring items.
Operating cash flow per public unit ("operating cash flow per unit") should
not be construed as an alternative to net income per unit or cash flow from
operating activities.
8 of 14
<PAGE>
Statement of Income for the Three Months Ended June 30, 1997 Compared to the
- ----------------------------------------------------------------------------
Three Months Ended June 30, 1996
- --------------------------------
Net income of $21.5 million or $0.50 per unit for the three months ended June
30, 1997 increased $4.1 million from net income of $17.4 million or $0.47 per
unit for the three months ended June 30, 1996. The increase primarily reflects
higher revenues due to increases in assets under management from both internal
growth and acquisitions.
Total revenues of $127.2 million for the three months ended June 30, 1997
increased $32.2 million (or 34%) from $95.0 million of total revenues for the
same quarter last year. The increase primarily reflects growth in assets under
management and acquisitions.
Compensation and benefits of $62.2 million for the three months ended June 30,
1997 increased $17.3 million compared to the same quarter last year and
consisted of 54% base compensation and 46% variable compensation. The increase
in base compensation resulted primarily from new affiliates which were not
included in the 1996 results. The increase in variable compensation of $8.4
million resulted from higher incentive payments based on subsidiary
profitability, portfolio performance and sales growth, and acquisitions.
Restricted unit plan expense of $0.1 million for the three months ended June 30,
1997 decreased $1.2 million from the same quarter last year, reflecting the
vesting of substantially all restricted units in August 1996 in accordance with
the terms of the plan.
Amortization of intangibles of $9.0 million for the three months ended June 30,
1997 increased $2.9 million from the same quarter last year due to acquisitions.
Interest expense of $4.9 million for 1997 increased $2.8 million from the same
quarter last year, primarily reflecting the $160.0 million increase in notes
payable issued on April 1, 1997 and the financing of acquisitions.
Other expense of $23.3 million for the three months ended June 30, 1997
increased $5.2 million from the same quarter last year. The increase results
from higher general and administrative expenses, primarily associated with
acquisitions.
9 of 14
<PAGE>
Statement of Income for the Six Months Ended June 30, 1997 Compared to the Six
- ------------------------------------------------------------------------------
Months Ended June 30, 1996
- --------------------------
Net income of $41.9 million or $0.98 per unit for the six months ended June 30,
1997 increased $9.2 million from $32.7 million of net income before non-
recurring item or $0.88 per unit for the six months ended June 30, 1996. The
increase primarily reflects higher revenues due to increases in assets under
management from both internal growth and acquisitions. Net income for the six
months ended June 30, 1997 was $41.9 million or $0.98 per unit compared to net
income of $37.7 million or $1.00 per unit for the same period last year.
Total revenues of $254.0 million for the six months ended June 30, 1997
increased $69.6 million (or 38%) from $184.4 million of total revenues before
non-recurring item for the same period last year. The increase primarily
reflects growth in assets under management and acquisitions. Total revenues in
1997 also include a $6.0 million gain on a transaction in the Partnership's real
estate management subsidiary, which was substantially offset by a charge for
contractual employment obligations and additional costs associated with a
business combination in the same subsidiary. A $5.0 million non-recurring gain
on the partial sale of the Partnership's interest in its affiliate, Capital
Growth Management Limited Partnership, was realized during the first quarter of
1996, completing the agreement to reduce the Partnership's ownership interest to
50%.
Compensation and benefits of $127.2 million for the six months ended June 30,
1997 increased $38.9 million compared to the same period last year and consisted
of 53% base compensation and 47% variable compensation. The increase in base
compensation resulted primarily from new affiliates which were not included in
the 1996 results. The increase in variable compensation of $21.1 million
resulted from higher incentive payments based on subsidiary profitability,
portfolio performance and sales growth, and acquisitions.
Restricted unit plan expense of $0.2 million for the six months ended June 30,
1997 decreased $2.4 million from the same period last year, reflecting the
vesting of substantially all restricted units in August 1996 in accordance with
the terms of the plan.
Amortization of intangibles of $18.3 million for the six months ended June 30,
1997 increased $6.8 million from the same period last year due to acquisitions.
Interest expense of $8.8 million for the six months ended June 30, 1997
increased $4.6 million from the same period last year reflecting the $160.0
million increase in notes payable issued on April 1, 1997 and the financing of
acquisitions.
Other expense of $45.0 million for the six months ended June 30, 1997 increased
$9.6 million from the same period last year. The increase results from higher
general and administrative expenses, primarily associated with acquisitions.
10 of 14
<PAGE>
Capital Resources and Liquidity
- -------------------------------
Operating cash flow not required for normal business operations and working
capital needs, including support of the Partnership's growth strategy, is
generally distributed to unitholders each quarter. Distributions to unitholders
are typically declared during the last month of calendar quarters. On June 17,
1997, the Partnership declared a regular distribution of $0.53 per unit and a
special distribution of $0.08 per unit as compared to the $0.51 regular
distribution declared for the second quarter of 1996. The Partnership has the
ability to make distributions in excess of net income due to non-cash
amortization expense. For the six months ended June 30, 1997, distributions
paid to unitholders were $43.6 million as compared to $35.9 million for the same
period last year.
Cash and cash equivalents at June 30, 1997 of $88.6 million increased $38.7
million from December 31, 1996. The increase resulted from the proceeds of the
issuance of $160.0 million of 7.15% Senior Notes due April 1, 2007, reduced by
the $79.6 million additional cash payment made in connection with the 1995
acquisition of Harris Associates and a $43.0 million payment for the acquisition
of Jurika & Voyles. Additionally, approximately 5 million units were issued for
acquisitions and settlement of the deferred purchase obligation.
The Partnership has contingent payment obligations, depending upon the
attainment of certain revenue targets through 1999, resulting from the
acquisitions of Aldrich, Eastman & Waltch and Jurika & Voyles. Such obligations
are not expected to have a material impact on the capital resources of the
Partnership.
The Partnership had $185 million of available lines of credit at June 30, 1997.
Assets Under Management
- -----------------------
A summary of assets under management follows:
Assets Under Management by Client Type (in billions):
<TABLE>
<CAPTION>
June 30, December 31, June 30,
1996 1996 1997
---- ---- ----
<S> <C> <C> <C>
Institutional $ 56 $ 66 $ 70
Mutual funds 22 25 30
Private accounts and other 5 9 10
---------- ---------- --------
$ 83 $ 100 $ 110
========== ========== ========
</TABLE>
Assets Under Management by Asset Class:
<TABLE>
<CAPTION>
June 30, December 31, June 30,
1996 1996 1997
---- ---- ----
<S> <C> <C> <C>
Equity 41% 42% 46%
Fixed Income 44 43 41
Money Market 11 8 8
Real Estate 4 7 5
---------- ---------- --------
100% 100% 100%
========== ========== ========
</TABLE>
At June 30, 1997, assets under management were $110 billion, an increase of $10
billion (or 10%) as compared to $100 billion at December 31, 1996. This
increase resulted primarily from growth in equity mutual funds and fixed income
institutional accounts.
11 of 14
<PAGE>
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
- -------------------------------------------------------------
In January 1997, the Registrant received written consents from its largest
unitholders, MetLife New England Holdings, Inc. ("MetLife") and Reich & Tang,
Inc. ("RTI"), to the issuance of additional units of limited partnership
interest of the Registrant in connection with the payment of the Registrant's
deferred purchase price obligation arising out of the Registrant's 1995
acquisition of Harris Associates L.P. ("Harris Associates"). At the record date
for this consent, MetLife and RTI owned in the aggregate over 70% of the units
then outstanding. In addition, at the end of April 1997, the Registrant
distributed a Consent Solicitation Statement to all unitholders relating to
ratification of the issuance of the units in the Harris Associates transaction
(the "Consent Solicitation"). The Consent Solicitation expired on May 30, 1997.
The record date for the Consent Solicitation was April 28, 1997, at which time
there were 43,089,168 units outstanding (including 110,000 general partner units
owned by MetLife). The result of the consent process was that holders of
34,712,653 units consented, 26,266 units withheld consent and 21,776 units
abstained.
Item 5. Other Information.
- --------------------------
Certain Operating Policies
The Partnership currently distributes to unitholders operating cash flow not
required for normal business operations and working capital needs, including
support of the Partnership's growth strategy. Management defines operating cash
flow as net income adjusted for restricted unit plan compensation, amortization
of intangible assets and non-recurring items. Management does not consider
capital gains as part of operating cash flow.
The following calculation of operating cash flow per unit should be read in
conjunction with the consolidated financial statements of the Partnership and
the notes thereto, filed on Form 10-K for the year ended December 31, 1996.
Operating cash flow for the six months ended June 30 follows:
<TABLE>
<CAPTION>
Six Months Ended June 30,
----------------------------------------
1996 1997
----------------------------------------
Per Unit Amount Per Unit Amount
--------- -------- -------- -------
<S> <C> <C> <C> <C>
(in thousands, except per unit data)
Income available for allocation $ 1.00 $40,284 $0.98 $42,097
Less non-recurring item (0.12) (4,988) - -
----------------------------------------
Sub-total 0.88 35,296 0.98 42,097
Add amortization of intangibles/1/ 0.28 11,482 0.42 18,259
----------------------------------------
Operating cash flow/ 2/ $ 1.16 $46,778 $1.40 $60,356
========================================
Distributions declared $ 0.99 $1.19
========== ===========
Weighted average units outstanding 40,453 43,088
========== =========
</TABLE>
1. Amortization of intangibles is a non-cash expense and does not reduce
amounts available for cash distributions to unitholders.
2. Operating cash flow per unit should not be construed as an alternative to
net income per unit or cash flow from operating activities.
12 of 14
<PAGE>
Item 6. Exhibits and Reports on Form 8-K.
- -----------------------------------------
(a) Exhibits
- ------------
None.
(b) Reports on Form 8-K
- -----------------------
On May 28, 1997, the Partnership filed a Current Report on Form 8-K regarding
the signing of an agreement on May 27, 1997 to acquire certain assets and assume
certain liabilities of Snyder Capital Management, Inc.
13 of 14
<PAGE>
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 thereunto duly authorized.
New England Investment Companies, L.P.
- --------------------------------------
Registrant
/s/ G. Neal Ryland August 13, 1997
- ------------------------------- --------------------
G. Neal Ryland Date
Executive Vice President and
Chief Financial Officer
/s/ Stephen D. Martino August 13, 1997
- ------------------------------ --------------------
Stephen D. Martino Date
Senior Vice President and Controller
14 of 14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM JUNE 30,
1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 88,610
<SECURITIES> 0
<RECEIVABLES> 77,824
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 175,197
<PP&E> 22,564
<DEPRECIATION> 0
<TOTAL-ASSETS> 852,165
<CURRENT-LIABILITIES> 110,918
<BONDS> 278,283
0
0
<COMMON> 0
<OTHER-SE> 439,441
<TOTAL-LIABILITY-AND-EQUITY> 852,165
<SALES> 0
<TOTAL-REVENUES> 253,999
<CGS> 0
<TOTAL-COSTS> 200,991
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,820
<INCOME-PRETAX> 44,188
<INCOME-TAX> 2,326
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 41,862
<EPS-PRIMARY> 0.98
<EPS-DILUTED> 0.98
</TABLE>
