Franklin Resources, Inc. Announces Second Quarter Results
|From:||Franklin Resources, Inc.|
|Contact:||Holly Gibson Brady|
San Mateo, CA, April 28, 2005 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported net income of $221.3 million, or $0.85 per share diluted on revenues of $1,051.2 million for the quarter ended March 31, 2005. The results for the quarter ended March 31, 2005, include a charge to income of $42.0 million ($26.5 million, net of taxes), representing the previously announced settlement with the Ontario Securities Commission concerning market timing activity. In the quarter ended December 31, 2004, net income was $240.0 million, or $0.92 per share diluted, on revenues of $986.0 million. For the quarter ended March 31, 2004, net income was $172.8 million, or $0.67 per share diluted on revenues of $879.0 million. Operating income decreased 9% this quarter over the prior quarter and increased 21% over the same quarter in the prior year.
As of March 31, 2005, assets under management by the company's subsidiaries were $412.1 billion, as compared to $402.2 billion last quarter and $351.6 billion at this time last year. Simple monthly average assets under management during the current quarter were $407.4 billion compared to $381.0 billion in the preceding quarter and $345.7 billion in the same quarter a year ago. Equity assets now comprise 57% of total assets under management as compared to 57% last quarter and 55% at March 31, 2004. Fixed-income assets now comprise 24% of total assets under management as compared to 25% last quarter and 28% at the same time last year. As of March 31, 2005, hybrid assets account for 17% of total assets under management as compared to 17% last quarter and 15% at March 31, 2004. Sales exceeded redemptions by $11.5 billion for the current quarter compared to $8.8 billion for the prior quarter and $6.5 billion for the comparable quarter a year ago.
On March 15, 2005, our Board of Directors declared a regular quarterly cash dividend of $0.10 per share and a special cash dividend of $2.00 per share, each payable on April 15, 2005 to stockholders of record on March 31, 2005. The quarterly dividend of $0.10 is equivalent to the dividend paid for the prior quarter and represents an 18% increase over the dividend paid for the same quarter last year. The special dividend is an extra dividend intended to return additional value to our stockholders.
The preceding paragraphs only represent a portion of the press release.