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

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

San Mateo, CA, April 28, 2010 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today announced net income1 of $356.7 million, or $1.55 per share diluted, on revenues of $1,413.1 million for the quarter ended March 31, 2010. For the quarter ended December 31, 2009, net income1 was $355.6 million, or $1.54 per share diluted, on revenues of $1,377.4 million. For the quarter ended March 31, 2009, net income1 was $110.8 million, or $0.47 per share diluted, on revenues of $912.3 million.

Operating income for the quarter ended March 31, 2010 was $461.1 million, as compared to $467.0 million for the prior quarter and $223.3 million for the quarter ended March 31, 2009. The company’s non-operating income (expenses) for the quarter ended March 31, 2010 included $42.5 million of investment and other income (losses), net, as compared to $33.0 million for the prior quarter and $(33.9) million for the quarter ended March 31, 2009.

Total assets under management by the company’s subsidiaries were $586.8 billion at March 31, 2010, as compared to $553.5 billion at December 31, 2009 and $391.1 billion at March 31, 2009. Simple monthly average assets under management during the quarter ended March 31, 2010 were $561.2 billion, as compared to $534.9 billion in the prior quarter and $396.6 billion in the same quarter a year ago. Equity assets comprised 45% of total assets under management at March 31, 2010, as compared to 46% of total assets under management at December 31, 2009 and 44% of total assets under management at March 31, 2009. Fixed-income assets comprised 36% of total assets under management at March 31, 2010, as compared to 34% of total assets under management at December 31, 2009 and 35% of total assets under management at March 31, 2009. Hybrid and other assets accounted for 19% of total assets under management at March 31, 2010, as compared to 20% at December 31, 2009 and 21% at March 31, 2009. Net new flows for the quarter ended March 31, 2010 were $17.4 billion, as compared to $14.3 billion for the prior quarter and $(5.5) billion for the same quarter a year ago.

Cash and cash equivalents and investments were $5.7 billion at March 31, 2010, as compared to $5.8 billion at September 30, 2009. Total stockholders’ equity was $7.4 billion at March 31, 2010, as compared to $7.6 billion at September 30, 2009. The company had 227.4 million shares of common stock outstanding at March 31, 2010, as compared to 229.3 million shares outstanding at September 30, 2009. During the quarter ended March 31, 2010, the company repurchased 1.1 million shares of its common stock for a total cost of $117.5 million.

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

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