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

From: Franklin Resources, Inc.
Contact: Matt Walsh
Telephone:(650) 312-2245

San Mateo, CA, July 24, 2008 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today announced net income of $403.3 million, or $1.71 per share diluted, on revenues of $1,521.6 million for the quarter ended June 30, 2008. For the quarter ended March 31, 2008, net income was $366.1 million, or $1.54 per share diluted, on revenues of $1,503.7 million. For the quarter ended June 30, 2007, net income was $468.4 million, or $1.86 per share diluted, on revenues of $1,639.8 million.

Operating income for the quarter ended June 30, 2008 was $532.2 million, as compared to $519.1 million for the prior quarter and $519.0 million for the quarter ended June 30, 2007. The company’s non-operating income for the quarter ended June 30, 2008 included $34.0 million of investment and other income, net, as compared to $32.4 million for the prior quarter and $105.3 million for the quarter ended June 30, 2007.

Total assets under management by the company’s subsidiaries were $580.2 billion at June 30, 2008, as compared to $591.1 billion at March 31, 2008 and $624.0 billion at June 30, 2007. Simple monthly average assets under management during the quarter ended June 30, 2008 were $602.9 billion, as compared to $610.2 billion in the prior quarter and $605.5 billion in the same quarter a year ago. Equity assets comprised 55% of total assets under management at June 30, 2008 and March 31, 2008, as compared to 60% of total assets under management at June 30, 2007. Fixed-income assets comprised 25% of total assets under management at June 30, 2008 and March 31, 2008, as compared to 21% of total assets under management at June 30, 2007. Hybrid assets accounted for 19% of total assets under management at June 30, 2008 and March 31, 2008, as compared to 18% of total assets under management at June 30, 2007. Net new flows for the quarter ended June 30, 2008 were $1.2 billion, as compared to $(6.1) billion for the prior quarter and $15.9 billion for the same quarter a year ago.

Cash and cash equivalents were $3.0 billion at June 30, 2008, as compared to $3.6 billion at September 30, 2007. Stockholders’ equity was $7.2 billion at June 30, 2008, as compared to $7.3 billion at September 30, 2007. The company had 234.6 million shares of common stock outstanding at June 30, 2008, as compared to 245.5 million shares outstanding at September 30, 2007. During the quarter ended June 30, 2008, the company repurchased 1.8 million shares of its common stock for a total cost of $175.8 million and repaid $420 million of outstanding medium term notes.

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

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