<PAGE>
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, 1996
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 1-09772
PIMCO ADVISORS L.P.
(Exact name of registrant as specified in its charter)
Delaware 06-1349805
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
800 Newport Center Drive
Newport Beach, CA 92660
(Address of principal executive offices)
(Zip Code)
(714) 717-7022
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
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.
Yes X No
----- -----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
subsequent to the distribution of securities under a plan confirmed by a court.
Yes No
----- -----
As of June 30, 1996, 13,588,764 publicly traded Class A units of limited
partner interest and 26,557,391 privately-held Class A units of limited partner
interest were issued and outstanding. There were 800,000 units of general
partner interest issued and outstanding at June 30, 1996. In addition, there
were 32,960,826 privately-held Class B units of limited partner interest's
issued and outstanding at June 30, 1996.
<PAGE>
PIMCO ADVISORS L.P.
INDEX
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION
<S> <C>
Item 1. Consolidated Financial Statements (Unaudited)
Consolidated Statements of Financial Condition as of
June 30, 1996 and December 31, 1995 3
Consolidated Statements of Operations for the six months
ended June 30, 1996 and June 30, 1995 4
Consolidated Statements of Operations for the three months
ended June 30, 1996 and June 30, 1995 5
Consolidated Statements of Cash Flows for the six months
ended June 30, 1996 and 1995 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-10
</TABLE>
<TABLE>
<CAPTION>
PART II OTHER INFORMATION
<S> <C>
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
</TABLE>
2
<PAGE>
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
PIMCO ADVISORS L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30, 1996 DECEMBER 31, 1995
--------------- -------------------
<S> <C> <C>
ASSETS
- ------
Current Assets:
Cash and cash equivalents $ 58,615,005 $ 34,915,170
Fees receivable 58,669,514 57,351,994
Short term investments 10,933,873 11,531,226
Notes receivable 1,744,805 1,230,168
Other assets - current 2,669,897 2,620,639
--------------- --------------------
Total current assets 132,633,094 107,649,197
Investments in limited partnerships 3,924,009 3,384,237
Fixed assets, net of accumulated
depreciation 9,978,509 10,743,184
Intangible assets, net of accumulated
amortization 225,827,253 243,831,819
Other non current assets 7,990,698 3,983,358
--------------- --------------------
Total assets $ 380,353,563 $ 369,591,795
=============== ====================
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Current Liabilities:
Accounts payable, accrued expenses
and other current liabilities $ 26,324,059 $ 16,040,212
Accrued compensation 39,644,444 21,246,685
--------------- --------------------
Total current liabilities 65,968,503 37,286,897
Other non current liabilities 710,770 748,265
--------------- --------------------
Total liabilities 66,679,273 38,035,162
--------------- --------------------
Partners' Capital:
General Partner (800,000 units issued
and outstanding) 3,213,298 3,456,973
Class A Limited Partners (40,146,155
and 40,121,155 units issued and
outstanding at June 30,1996 and
December 31,1995, respectively) 216,777,707 228,465,440
Class B Limited Partners (32,960,826
units issued and outstanding) 106,851,293 114,806,204
Unamortized compensation (13,168,008) (15,171,984)
--------------- --------------------
Total Partners' Capital 313,674,290 331,556,633
--------------- --------------------
Total liabilities and
partners' capital $ 380,353,563 $ 369,591,795
=============== ====================
</TABLE>
See accompanying notes.
3
<PAGE>
PIMCO ADVISORS L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
-----------------------------
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
<S> <C> <C>
Revenues:
Investment advisory fees:
Private accounts $ 103,682,216 $ 91,134,047
Proprietary Funds 62,715,780 37,211,884
Distribution and servicing fees 23,063,662 17,555,387
Other 600,322 682,076
------------- -------------
Total revenues 190,061,980 146,583,394
============= =============
Expenses:
Compensation and benefits 84,943,604 70,245,109
Amortization of intangibles, restricted
units and option plans 20,533,230 21,269,916
Commissions 18,352,569 13,046,955
General and administrative 8,960,726 4,668,863
Occupancy and equipment 4,626,409 4,235,854
Other 10,258,781 7,444,869
------------- -------------
Total expenses 147,675,319 120,911,566
------------- -------------
Operating income 42,386,661 25,671,828
Equity in income of limited partnership 91,551 97,853
Other income 1,288,336 1,721,005
------------- -------------
Income before taxes 43,766,548 27,490,686
Provision for taxes 595,519 241,994
------------- -------------
Net income $ 43,171,029 $ 27,248,692
============= =============
Net income allocated to:
General Partner $ 508,325 $ 413,562
Class A Limited Partner Units 25,501,465 20,700,682
Class B Limited Partner Units 17,161,239 6,134,448
------------- -------------
Total $ 43,171,029 $ 27,248,692
============= =============
Net income per unit:
General Partner and Class A Limited
Partner unit $ 0.64 $ 0.52
============= =============
Class B Limited Partner unit $ 0.47 $ 0.17
============= =============
Cash distributions paid per unit:
General Partner and Class A Limited
Partner unit $ 0.940 $ 0.709
============= =============
Class B Limited Partner unit $ 0.762 $ 0.215
============= =============
</TABLE>
See accompanying notes.
4
<PAGE>
PIMCO ADVISORS L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
-----------------------------
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
<S> <C> <C>
Revenues:
Investment advisory fees:
Private accounts $ 54,887,506 $ 46,556,086
Proprietary Funds 31,606,081 19,511,632
Distribution and servicing fees 12,048,155 9,079,286
Other 300,186 318,127
------------- -------------
Total revenues 98,841,928 75,465,131
------------- -------------
Expenses:
Compensation and benefits 43,645,872 35,150,847
Amortization of intangibles, restricted
units and option plans 10,266,615 11,091,696
Commissions 9,478,311 6,804,477
General and administrative 4,268,931 2,359,474
Occupancy and equipment 2,314,438 2,329,135
Other 5,689,109 4,434,459
------------- -------------
Total expenses 75,663,276 62,170,088
------------- -------------
Operating income 23,178,652 13,295,043
Equity in income of limited partnership 56,201 49,566
Other income 779,280 962,413
------------- -------------
Income before taxes 24,014,133 14,307,022
Provision for taxes 206,548 198,344
------------- -------------
Net income $ 23,807,585 $ 14,108,678
============= =============
Net income allocated to:
General Partner $ 263,290 205,574
Class A Limited Partner Units 13,212,631 10,296,538
Class B Limited Partner Units 10,331,663 3,606,566
------------- -------------
Total $ 23,807,584 $ 14,108,678
============= =============
Net income per unit
General Partner and Class A Limited
Partner unit $ 0.33 $ 0.26
============= =============
Class B Limited Partner unit $ 0.29 $ 0.10
============= =============
Cash distributions paid per unit:
General Partner and Class A Limited
Partner unit $ 0.470 $ 0.470
============= =============
Class B Limited Partner unit $ 0.318 $ 0.138
============= =============
</TABLE>
See accompanying notes.
5
<PAGE>
PIMCO ADVISORS L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
-----------------------------
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 43,171,029 $ 27,248,692
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization, restricted
unit and option plans 22,082,155 22,603,732
Equity in income of limited partnership (91,551) (97,853)
Unrealized loss (gain) on investments 215,948 (51,378)
Change in operating assets and liabilities:
Fees receivable (1,317,520) (16,997,488)
Other assets (4,056,598) (128,312)
Accounts payable, accrued expenses and
other current liabilities 10,283,847 (5,744,140)
Accrued compensation 18,397,759 16,666,302
Other liabilities (37,495) (803,650)
Other 17,767 (3,859)
-------------- --------------
Net cash provided by operating
activities 88,665,341 42,692,046
-------------- --------------
Cash flows from investing activities:
Purchases of fixed assets (1,330,004) (3,974,550)
Proceeds from sale of fixed assets 579,970 255,975
Notes receivable advances (573,512) (100,767)
Sale of securities 440,075 (7,327)
Investments in limited partnerships (500,000) (300,000)
-------------- --------------
Net cash used in investing activities (1,383,471) (4,126,669)
-------------- --------------
Cash flows from financing activities:
Cash distributions paid (63,582,035) (36,050,855)
Proceeds from options exercised - 250,032
-------------- --------------
Net cash used in financing activities (63,582,035) (35,800,823)
-------------- --------------
Net increase in cash and cash equivalents 23,699,835 2,764,554
Cash and cash equivalents, beginning of period 34,915,170 55,003,751
-------------- --------------
Cash and cash equivalents, end of period $ 58,615,005 $ 57,768,305
============== ==============
Supplental disclosures:
Taxes paid $ 338,085 $ 61,200
============== ==============
</TABLE>
See accompanying notes.
6
<PAGE>
PIMCO ADVISORS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1) The condensed consolidated financial statements included herein have been
prepared without audit in accordance with the instructions to Form 10-Q pursuant
to the rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. In the opinion of
PIMCO Partners, G.P., the General Partner, all adjustments, consisting only of
normal recurring adjustments, necessary for a fair statement of (a) the
financial condition at June 30, 1996 and December 31, 1995, (b) the results of
operations for the six- and three-months periods ended June 30, 1996 and 1995,
and (c) the cash flows for the six-month periods ended June 30, 1996 and 1995,
for PIMCO Advisors L.P. ("PA") have been made. It is suggested that these
unaudited condensed consolidated financial statements be read in conjunction
with the consolidated financial statements and notes included in PA's Annual
Report on Form 10-K for the year ended December 31, 1995. Certain
reclassifications have been made to conform the prior period presentation to the
current period presentation. These interim results may not be indicative of the
results which may occur in the future. (See Item 2 - Management's Discussion and
Analysis of Financial Condition and Results of Operations - Results of
Operations).
2) Earnings per unit are computed under the two-class method and are based on
the weighted average number of units outstanding, assuming the exercise of
dilutive unit options. See Exhibit 11 for the computation of the weighted
average number of units outstanding during the periods.
Distributions on the units outstanding are paid quarterly in arrears to
unitholders of record as of the thirtieth day of the first month following each
quarter-end.
3) In October 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards (SFAS) N0. 123, "Accounting for Stock-Based
Compensation", which will be effective for the Company beginning January 1,
1996. SFAS No. 123 requires expanded disclosures of stock-based compensation
arrangements with employees and encourages (but does not require) compensation
cost to be measured based on the fair value of the equity instrument awarded.
Companies are permitted, however, to continue to apply APB Opinion No. 25, which
recognizes compensation cost based on the intrinsic value of the equity
instrument awarded. PA will continue to apply APB Opinion No. 25 to its unit
based compensation awards to employees and will disclose the required pro forma
effect on net income and earnings per unit in the annual financial statements.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
PIMCO Advisors L.P. and subsidiaries ("PA") are primarily involved in
investment advisory services. The investment advisor subsidiaries are as
follows:
Pacific Investment Management Company ("Pacific Investment
Management") and its wholly owned subsidiary, StocksPLUS Management,
Inc. ("StocksPLUS"), manages primarily fixed income investments,
with approximately $79.9 billion in assets under management;
Columbus Circle Investors ("CCI") and its wholly owned subsidiary,
Columbus Circle Trust Company ("CCTC"), manages primarily equity and
equity related investments, with approximately $14.0 billion in
assets under management;
Cadence Capital Management ("Cadence") manages equity and equity
related investments, with approximately $2.9 billion in assets under
management;
Parametric Portfolio Associates ("Parametric"), manages equity and
equity related investments, with approximately $1.6 billion in
assets under management;
NFJ Investment Group ("NFJ"), manages equity and equity related
investments, with approximately $1.6 billion in assets under
management; and
Blairlogie Capital Management ("Blairlogie"), manages equity and
equity related investments, with approximately $692 million in
assets under management.
The subsidiaries are each a registered investment advisor and collectively they
provide a broad array of investment management and advisory services for
clients, using separate and distinct investment management styles.
In addition to the investment management subsidiaries, PA sponsors two mutual
fund families: PIMCO Funds (funds for institutional and 401(k)/defined
contribution investors) and PIMCO Advisors Funds (retail funds and the Cash
Accumulation Trust).
RESULTS OF OPERATIONS FOR 1996 COMPARED TO 1995
PA derives substantially all its revenues and net income from advisory fees for
investment management services provided to its institutional and individual
clients and advisory, distribution and servicing fees for services provided to
its two proprietary families of mutual funds ("Proprietary Funds").
Generally, such fees are determined based upon a percentage of client assets
under management and are billed quarterly to institutional clients, either in
advance or arrears, depending on the agreement with the client, and monthly in
arrears to Proprietary Funds. Revenues are determined in large part based upon
the level of assets under management; which itself is dependent upon factors
including market conditions, client decisions to add or withdraw assets from
PA's management and from PA's ability to attract new clients. In addition, PA
has certain accounts which are subject to performance based fee schedules
wherein performance relative to the S&P 500 Index or other benchmarks over a
particular time period can result in additional fees. Such performance based
fees can have a significant effect on revenues, and provide an opportunity to
earn higher fees (as well as lower) than could be obtained under fee
arrangements based solely on a percentage of assets under management.
PA's consolidated 1996 second quarter revenues, including those of its wholly
owned distributor, PIMCO Advisors Distribution Company ("PADCo"), were $98.8
million compared to $75.5 million in the second quarter of 1995, up $23.3
million. Advisory revenues were $86.5 million in the second quarter of 1996
compared to $66.1 million for the same period in 1995, up $20.4 million. For the
six months ended June 30, 1996 PA's consolidated revenues were $190.1 million
compared to $146.6 milllion in 1995. Revenues at the distributor increased to
$26.3 million in 1996 from $18.2 million in 1995. Advisory revenue increases
resulted from both the commitment of new assets by institutional clients and
from market appreciation. These increases were further enhanced by an increase
in performance based fees, which amounted to $7.9 million during the second
quarter of 1996 as compared to $2.9 million during the same period in 1995. For
the six months
8
<PAGE>
ended June 30, 1996 performance fees increased to $11.4 million, from $5.4
million in the comparable period of 1995. The increase in performance based fees
occurred both in a product line that seeks to outperform the S&P 500 Index, and
selected fixed income accounts. Increases at the distributor relate to higher
levels of sales and qualifying assets.
Revenues by operating entity were as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
---------------------- --------------------
(In millions) (In millions)
<C> <C> <C> <C> <C>
Pacific Investment Management $ 56.1 $ 41.1 $ 107.2 $ 80.6
CCI 16.2 12.8 31.7 24.7
Cadence 4.5 3.3 8.5 6.4
Parametric 0.9 1.1 1.7 2.0
NFJ 1.8 1.4 3.5 2.8
PADCo 13.6 9.4 26.3 18.2
Other (1) 5.7 6.4 11.2 11.9
---------- ---------- ---------- ----------
$ 98.8 $ 75.5 $ 190.1 $ 146.6
========== ========== ========== ==========
</TABLE>
(1) Includes PA's Institutional Services (formerly PFAMCo) and Mutual Funds
divisions and Blairlogie.
Compensation and benefits in the second quarter of 1996 of $43.6 million were
$8.5 million higher than the same period in 1995. For the six month period, this
cost category increased from $70.2 million in 1995 to $85.0 million in 1996.
These increases reflect additional staffing, at both Pacific Investment
Management and CCI, as well as higher profit sharing expenses which are based on
profits of each of the investment advisor subsidiaries.
Commission expenses, incurred by PADCo related to sales and servicing of retail
mutual funds, increased $2.7 million to $9.5 million in the second quarter of
1996 compared to the same period a year ago, and increased $5.3 million to $18.4
million for the first six months of 1996 compared to 1995, reflecting higher
trail commissions due to an increased level of qualifying assets, as well as
increased "up front" commissions due to higher current sales levels.
General and administrative expenses amounted to $4.3 million during the second
quarter 1996, an increase of $1.9 million over the same period a year ago. This
cost category increased by $4.3 million to $9.0 million for the first half of
1996 compared to 1995. These increases can be primarily attributed to the
conversion of Pacific Investment Management's institutional fund family to a
fixed administrative fee basis resulting in increases to this cost category for
expenses previously borne directly by the funds. There is a corresponding
increase in revenues related to this conversion. These incremental costs account
for substantially all of this increase.
Other expenses in the second quarter of 1996 increased by $1.3 million to $5.7
million from the same period in 1995. Such costs for the first six months of
1996 increased $2.8 million to $10.3 million compared to the same period in
1995. The rise in both periods is principally due to increases in marketing and
promotional costs and professional fees, as well as reductions in reimbursement
agreements with Pacific Mutual related to operating losses of certain
subsidiaries, as those subsidiaries have approached or surpassed profitability.
Net income per unit is computed under the two-class method which allocates net
income to Class A and Class B Limited Partner units in proportion to the
Operating Profit Available for Distribution for each class. Operating Profit
Available for Distribution is defined by PA's partnership agreement and is
computed as the sum of net income plus non-cash charges from the amortization of
intangible assets, non-cash compensation expenses arising from option and
restricted unit plans and losses of any subsidiary which is not a flow-through
entity for tax purposes. Class A Limited Partner and General Partner units are
entitled to a priority distribution of $1.88 per unit per year until December
31, 1997. Because of this, the amount of Operating Profit Available for
Distribution allocated to such units is currently greater than the amount
allocated to Class B Limited Partner units. As a result, the net income
allocated per Class A Limited Partner and General Partner
9
<PAGE>
units is currently greater than the net income allocated per Class B Limited
Partner unit. Due to the priority distribution, any dilution to net income per
unit from the assumed exercise of unit options is currently applied entirely to
Class B Limited Partner units.
CAPITAL RESOURCES AND LIQUIDITY
PA's business has not historically been capital intensive. In general, working
capital requirements had been satisfied out of operating cash flow or short-term
borrowings. PA will make quarterly profit-sharing payments and distributions to
its unitholders. PA may need to finance profit-sharing payments using short-term
borrowings.
PA had approximately $69.5 million of cash and cash equivalents and short-term
investments at June 30, 1996 compared to approximately $46.5 million at December
31, 1995. PA's liquidity not otherwise used for quarterly distributions will be
used for general purposes including profit-sharing payments and for brokers'
commissions on sales of mutual fund shares distributed without a front-end sales
load. PA believes that the level of such commissions may increase in the future
due to the introduction of new products and mutual fund pricing structures which
may require an alternate financing source.
The Partnership distributes substantially all of its "Operating Profit Available
for Distribution", after appropriate reserves, to its partners. Distributions
are paid quarterly, in arrears, on the units outstanding to unitholders of
record on the thirtieth day of the first month following each quarter-end.
During the first six months of 1996, the Partnership distributed $0.94 per Class
A Limited Partner and General Partner unit and $0.762 per Class B Limited
Partner unit related to the fourth quarter of 1995 and first quarter of 1996's
earnings. The Partnership declared a second quarter distribution of $0.47 per
Class A Limited Partner and General Partner unit payable to holders of record on
July 30, 1996. The payment date for this distribution is August 15, 1996. The
partnership also declared a second quarter distribution of $0.447 per Class B
Limited Partner unit payable to holders of record on July 30, 1996. The payment
date for this distribution is August 30, 1996.
PA currently has no long-term debt. In April 1996, the Partnership obtained a
$25 million, four year revolving line of credit for working capital purposes.
This facility was not utilized during the period.
ECONOMIC FACTORS
The general economy including interest rates, inflation and client responses to
economic factors will affect, to some degree, the operations of PA. As a
significant portion of assets under management are fixed income funds,
fluctuations in interest rates could have a material impact on the operations of
PA. PA's advisory business is generally not capital intensive and therefore any
effect of inflation, other than on interest rates, is not expected to have a
significant impact on its operations or financial condition. Client responses to
the economy, including decisions as to the amount of assets deposited may also
impact the operations of PA. Any resulting revenue fluctuations may or may not
be recoverable in the pricing of services offered by PA.
10
<PAGE>
PART II: OTHER INFORMATION
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11 Computations of Net Income Per Unit.
27 Financial Data Schedule.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the second quarter
of 1996. A report on Form 8-K was filed on July 31, 1996
disclosing a change in the registrant's certifying
accountant.
11
<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.
PIMCO Advisors L.P.
By /s/ WILLIAM D. CVENGROS
-----------------------
William D. Cvengros
Chief Executive Officer
By /s/ ROBERT M. FITZGERALD
------------------------
Robert M. Fitzgerald
Principal Accounting Officer
August 12, 1996
12
<PAGE>
EXHIBIT 11
PIMCO Advisors L.P.
Computations of Primary Net Income Per Unit
(in thousands, except per unit amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the six months ended June 30,
----------------------------------------
General Partner
and Class A Class B
----------------------------------------
1996 1995 1996 1995
-------- -------- -------- -------
<S> <C> <C> <C> <C>
Net income $ 43,171 $ 27,249 $ 43,171 $27,249
======== ======== ======== =======
Weighted average number of units outstanding 40,924 40,835 32,961 32,961
Weighted average effect of Limited Partnership
unit options 1,489 1,160 1,343 - .
-------- -------- -------- -------
Weighted average number of units and unit equivalents
used to calculate net income per unit 42,413 41,995 34,304 32,961
======== ======== ======== =======
Net income per unit $ 0.64 $ 0.52 $ 0.47 $ 0.17
======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
For the three months ended June 30,
----------------------------------------
General Partner
and Class A Class B
----------------------------------------
1996 1995 1996 1995
-------- -------- -------- -------
<S> <C> <C> <C> <C>
Net income $ 23,808 $ 14,109 $ 23,808 $14,109
======== ======== ======== =======
Weighted average number of units outstanding 40,928 40,852 32,961 32,961
Weighted average effect of Limited Partnership
unit options 1,503 1,224 1,332 - .
-------- -------- -------- -------
Weighted average number of units and unit equivalents
used to calculate net income per unit 42,431 42,076 34,293 32,961
======== ======== ======== =======
Net income per unit $ 0.33 $ 0.26 $ 0.29 $ 0.10
======== ======== ======== =======
</TABLE>
13
<PAGE>
PIMCO Advisors L.P.
Computations of Fully Diluted Net Income Per Unit
(in thousands, except per unit amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the six months ended June 30,
----------------------------------------
General Partner
and Class A Class B
----------------------------------------
1996 1995 1996 1995
-------- -------- -------- -------
<S> <C> <C> <C> <C>
Net income $43,171 $ 27,249 $ 43,171 $27,249
======== ======== ======== =======
Weighted average number of units outstanding 40,924 40,835 32,961 32,961
Weighted average effect of Limited Partnership
unit options 1,494 1,198 1,369 274
-------- -------- -------- -------
Weighted average number of units and unit
equivalents used to calculate net income per unit 42,418 42,033 34,330 33,235
======== ======== ======== =======
Net income per unit $ 0.64 $ 0.52 $ 0.47 $ 0.17
======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
For the three months ended June 30,
----------------------------------------
General Partner
and Class A Class B
----------------------------------------
1996 1995 1996 1995
-------- -------- -------- -------
<S> <C> <C> <C> <C>
Net income $ 23,808 $ 14,109 $ 23,808 $14,109
======== ======== ======== =======
Weighted average number of units outstanding 40,928 40,855 32,961 32,961
Weighted average effect of Limited Partnership
unit options 1,514 1,297 1,383 274
-------- -------- -------- -------
Weighted average number of units and unit
equivalents used to calculate net income per unit 42,442 42,152 34,344 33,235
======== ======== ======== =======
Net income per unit $ 0.33 $ 0.26 $ 0.29 $ 0.10
======== ======== ======== =======
</TABLE>
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PIMCO
ADVISORS L.P. AND SUBSIDIARIES CONSOLIDATED 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-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 58,615
<SECURITIES> 10,934
<RECEIVABLES> 58,669
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 132,633
<PP&E> 9,978 <F1>
<DEPRECIATION> 0
<TOTAL-ASSETS> 380,354
<CURRENT-LIABILITIES> 65,968
<BONDS> 0
0
0
<COMMON> 313,674 <F2>
<OTHER-SE> (13,168) <F3>
<TOTAL-LIABILITY-AND-EQUITY> 380,354
<SALES> 0 <F4>
<TOTAL-REVENUES> 190,062 <F5>
<CGS> 0 <F4>
<TOTAL-COSTS> 129,671 <F6>
<OTHER-EXPENSES> 18,004 <F7>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 43,766
<INCOME-TAX> 595
<INCOME-CONTINUING> 43,171
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 43,171
<EPS-PRIMARY> .64 <F8>
<EPS-DILUTED> .47 <F9>
<FN>
<F1> Net of accumulated depreciation and amortization.
<F2> Entity is a partnership. Amount shown represents Partners' Capital.
<F3> Amount shown comprises Unamortized Compensation.
<F4> The partnership is in the service business and has no sales or cost of
goods sold of tangible products.
<F5> Amount shown comprises revenues from services.
<F6> Amount shown comprises costs of services.
<F7> Amount shown is from amortization of intangible assets.
<F8> Amount shown is for the Partnership's General Partner and Class A Limited
Partner Units.
<F9> Amount is for the Partnership's Class B Limited Partner Units.
</FN>
</TABLE>
