Franklin Resources, Inc
Franklin Resources, Inc.
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Franklin Resources, Inc. Announces Fourth Quarter Results

From: Franklin Resources, Inc.
Contact: Lisa Gallegos
Telephone:(650) 312-3395

San Mateo, CA, October 27, 2005 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported net income of $334.5 million, or $1.28 per share diluted, on revenues of $1,163.2 million for the quarter ended September 30, 2005.   In the quarter ended June 30, 2005, net income was $261.9 million, or $1.00 per share diluted, on revenues of $1,109.7 million.   For the quarter ended September 30, 2004, net income was $187.7 million, or $0.73 per share diluted, on revenues of $881.7 million. 

Operating income for the quarter ended September 30, 2005 was $368.5 million, as compared to $346.5 million for the prior quarter and $241.8 million for the quarter ended September 30, 2004, an increase of 6% for the quarter ended September 30, 2005 over the prior quarter and 52% over the same quarter in the prior year.   The company’s non-operating income for the quarter ended September 30, 2005 includes $49.6 million of investment and other income as compared to $21.8 million in the prior quarter.  Income taxes were provided at a reduced rate of 20.25% for the quarter, as compared to 28% in the prior quarter, due primarily to the resolution of certain state tax matters related to multiple years. 

Assets under management by the company’s subsidiaries were $453.1 billion at September 30, 2005, as compared to $425.4 billion at June 30, 2005 and $361.9 billion at September 30, 2004.   Simple monthly average assets under management during the quarter ended September 30, 2005 were $440.5 billion compared to $416.0 billion in the preceding quarter and $353.3 billion in the same quarter a year ago.  Equity assets increased to 58% of total assets under management, as compared to 57% for the previous quarter and 55% for the same time last year.   Fixed-income assets comprised 23% of total assets under management, as compared to 24% for the previous quarter and 27% for the same time last year. Hybrid assets accounted for 17% of total assets under management at September 30, 2005 which was consistent with the last quarter and was compared to 16% at September 30, 2004.  Sales exceeded redemptions by $8.0 billion for the quarter ended September 30, 2005 compared to $7.7 billion for the prior quarter and $6.6 billion for the comparable quarter a year ago.

(The preceding paragraphs only represent a portion of the press release.)

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