Franklin Resources, Inc. (the “Company”) (NYSE: BEN) today
announced net income1 of $174.0 million or $0.32 per diluted share
for the quarter ended June 30, 2024, as compared to $124.2 million
or $0.23 per diluted share for the previous quarter, and $227.5
million or $0.44 per diluted share for the quarter ended June 30,
2023. Operating income was $222.5 million for the quarter ended
June 30, 2024, as compared to $129.3 million for the previous
quarter and $314.9 million for the prior year.
As supplemental information, the Company is providing certain
adjusted performance measures which are based on methodologies
other than generally accepted accounting principles. Adjusted net
income2 was $326.4 million and adjusted diluted earnings per share2
was $0.60 for the quarter ended June 30, 2024, as compared to
$306.6 million and $0.56 for the previous quarter, and $326.1
million and $0.63 for the quarter ended June 30, 2023. Adjusted
operating income2 was $424.9 million for the quarter ended June 30,
2024, as compared to $419.6 million for the previous quarter and
$476.8 million for the prior year.
“During our third fiscal quarter, we saw a number of positive
developments across our business which further diversified our
firm’s capabilities, and continued our focus on new technologies to
optimize the client experience and support our business growth,”
said Jenny Johnson, President and CEO of Franklin Resources,
Inc.
“This quarter, we continued to make progress executing our
long-term plan of diversification across asset classes, investment
vehicles and geographies. Client demand led to positive net flows
in multi-asset and alternative strategies during the quarter. We
saw a strong quarter of positive net flows across our retail SMAs,
Canvas® and ETF offerings. In particular, ETFs generated net
inflows of over $3 billion with ending AUM of $27 billion. Our
non-U.S. business saw a fifth consecutive quarter of positive net
flows and finished the quarter with approximately $492 billion in
AUM.
“As various aspects of the asset management industry evolve, we
continue to make investments in technology across distribution,
investment management and operations. This quarter, we announced
that we are working with Microsoft to build an advanced financial
AI platform, which will help embed artificial intelligence into our
sales and marketing processes to create more personalized support
for clients. We also recently announced plans to make a strategic
minority investment in Envestnet, a significant industry platform.
Finally, we announced the selection of a single platform to unify
our investment management technologies across public market asset
classes. This will support the simplification of our operation and
reduce long-term capital expenditures.
“Looking ahead, we will continue to invest in the business to
support our strategic priorities in asset management and wealth
management for the benefit of all stakeholders.”
Quarter Ended
% Change
Quarter Ended
% Change
30-Jun-24
31-Mar-24
Qtr. vs. Qtr.
30-Jun-23
Year vs. Year
Financial Results
(in millions, except per share data)
Operating revenues
$
2,122.9
$
2,152.8
(1
%)
$
1,969.0
8
%
Operating income
222.5
129.3
72
%
314.9
(29
%)
Operating margin
10.5
%
6.0
%
16.0
%
Net income¹
$
174.0
$
124.2
40
%
$
227.5
(24
%)
Diluted earnings per share
0.32
0.23
39
%
0.44
(27
%)
As adjusted
(non-GAAP):2
Adjusted operating income
$
424.9
$
419.6
1
%
$
476.8
(11
%)
Adjusted operating margin
25.7
%
25.2
%
30.5
%
Adjusted net income
$
326.4
$
306.6
6
%
$
326.1
0
%
Adjusted diluted earnings per share
0.60
0.56
7
%
0.63
(5
%)
Assets Under Management
(in billions)
Ending
$
1,646.6
$
1,644.7
0
%
$
1,431.5
15
%
Average3
1,632.6
1,581.1
3
%
1,419.6
15
%
Long-term net flows
(3.2
)
6.9
0.2
Total assets under management (“AUM”) were $1,646.6 billion at
June 30, 2024, up $1.9 billion during the quarter due to $3.0
billion of cash management net inflows and the positive impact of
$2.1 billion of net market change, distributions, and other,
partially offset by $3.2 billion of long-term net outflows.
Cash and cash equivalents and investments were $5.6 billion and,
including the Company’s direct investments in consolidated
investment products (“CIPs”), were $6.8 billion4 at June 30, 2024.
Total stockholders’ equity was $13.6 billion and the Company had
522.1 million shares of common stock outstanding at June 30, 2024.
The Company repurchased 4.3 million shares of its common stock for
a total cost of $101.5 million during the quarter ended June 30,
2024.
Conference Call Information
A written commentary on the results by Jenny Johnson, President
and CEO; Matthew Nicholls, Executive Vice President, CFO and COO;
and Adam Spector, Executive Vice President, Head of Global
Distribution will be available via investors.franklinresources.com
today at approximately 8:30 a.m. Eastern Time.
Ms. Johnson and Messrs. Nicholls and Spector will also lead a
live teleconference today at 11:00 a.m. Eastern Time to answer
questions. Access to the teleconference will be available via
investors.franklinresources.com or by dialing (+1) (800) 549-8228
in North America or (+1) (646) 564-2877 in other locations using
access code 21080. A replay of the teleconference can also be
accessed by calling (+1) (888) 660-6264 in North America or (+1)
(646) 517-3975 in other locations using access code 21080# after
2:00 p.m. Eastern Time on July 26, 2024 through August 2, 2024, or
via investors.franklinresources.com.
Analysts and investors are encouraged to review the Company’s
recent filings with the U.S. Securities and Exchange Commission and
to contact Investor Relations at
investorrelations@franklintempleton.com before the live
teleconference for any clarifications or questions related to the
earnings release or written commentary.
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF
INCOME
Unaudited
(in millions, except per share data)
Three Months Ended June
30,
% Change
Nine Months Ended June
30,
% Change
2024
2023 5
2024
2023 5
Operating Revenues
Investment management fees
$
1,689.9
$
1,613.4
5
%
$
5,056.0
$
4,818.5
5
%
Sales and distribution fees
358.3
304.0
18
%
1,013.0
897.3
13
%
Shareholder servicing fees
61.8
38.8
59
%
162.3
115.5
41
%
Other
12.9
12.8
1
%
35.5
32.0
11
%
Total operating revenues
2,122.9
1,969.0
8
%
6,266.8
5,863.3
7
%
Operating Expenses
Compensation and benefits
893.8
841.2
6
%
2,890.3
2,667.7
8
%
Sales, distribution and marketing
481.1
406.8
18
%
1,366.2
1,202.0
14
%
Information systems and technology
156.6
127.3
23
%
442.7
376.7
18
%
Occupancy
104.8
56.9
84
%
247.7
171.1
45
%
Amortization of intangible assets
84.0
85.4
(2
%)
254.4
254.6
0
%
General, administrative and other
180.1
136.5
32
%
507.2
427.2
19
%
Total operating expenses
1,900.4
1,654.1
15
%
5,708.5
5,099.3
12
%
Operating Income
222.5
314.9
(29
%)
558.3
764.0
(27
%)
Other Income (Expenses)
Investment and other income, net
74.5
49.8
50
%
300.2
200.3
50
%
Interest expense
(25.7
)
(34.9
)
(26
%)
(72.2
)
(99.3
)
(27
%)
Investment and other income of
consolidated investment products,net
37.6
1.7
NM
103.7
75.3
38
%
Expenses of consolidated investment
products
(8.8
)
(0.8
)
NM
(20.6
)
(15.7
)
31
%
Other income, net
77.6
15.8
391
%
311.1
160.6
94
%
Income before taxes
300.1
330.7
(9
%)
869.4
924.6
(6
%)
Taxes on income
68.1
84.1
(19
%)
205.8
237.3
(13
%)
Net income
232.0
246.6
(6
%)
663.6
687.3
(3
%)
Less: net income (loss) attributable
to
Redeemable noncontrolling interests
43.0
26.8
60
%
95.3
108.5
(12
%)
Nonredeemable noncontrolling interests
15.0
(7.7
)
NM
18.8
(8.5
)
NM
Net Income Attributable to Franklin
Resources, Inc.
$
174.0
$
227.5
(24
%)
$
549.5
$
587.3
(6
%)
Earnings per Share
Basic
$
0.32
$
0.44
(27
%)
$
1.04
$
1.14
(9
%)
Diluted
0.32
0.44
(27
%)
1.03
1.14
(10
%)
Dividends Declared per Share
$
0.31
$
0.30
3
%
$
0.93
$
0.90
3
%
Average Shares Outstanding
Basic
516.5
490.7
5
%
507.2
490.3
3
%
Diluted
517.2
491.4
5
%
508.0
491.0
3
%
Operating Margin
10.5
%
16.0
%
8.9
%
13.0
%
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF
INCOME
Unaudited
(in millions, except per share data)
Three Months Ended
% Change
Three Months Ended 5
30-Jun-24
31-Mar-24
31-Dec-23
30-Sep-23
30-Jun-23
Operating Revenues
Investment management fees
$
1,689.9
$
1,713.9
`
(1
%)
$
1,652.2
$
1,634.4
$
1,613.4
Sales and distribution fees
358.3
358.3
0
%
296.4
306.4
304.0
Shareholder servicing fees
61.8
68.0
(9
%)
32.5
37.2
38.8
Other
12.9
12.6
2
%
10.0
8.1
12.8
Total operating revenues
2,122.9
2,152.8
(1
%)
1,991.1
1,986.1
1,969.0
Operating Expenses
Compensation and benefits
893.8
1,028.2
(13
%)
968.3
826.3
841.2
Sales, distribution and marketing
481.1
484.3
(1
%)
400.8
411.1
406.8
Information systems and technology
156.6
155.1
1
%
131.0
128.3
127.3
Occupancy
104.8
76.2
38
%
66.7
57.8
56.9
Amortization of intangible assets
84.0
84.6
(1
%)
85.8
86.5
85.4
General, administrative and other
180.1
195.1
(8
%)
132.0
137.8
136.5
Total operating expenses
1,900.4
2,023.5
(6
%)
1,784.6
1,647.8
1,654.1
Operating Income
222.5
129.3
72
%
206.5
338.3
314.9
Other Income (Expenses)
Investment and other income, net
74.5
52.5
42
%
173.2
62.0
49.8
Interest expense
(25.7
)
(27.7
)
(7
%)
(18.8
)
(24.4
)
(34.9
)
Investment and other income (losses) of
consolidated investment products, net
37.6
89.9
(58
%)
(23.8
)
40.5
1.7
Expenses of consolidated investment
products
(8.8
)
(5.9
)
49
%
(5.9
)
(3.0
)
(0.8
)
Other income, net
77.6
108.8
(29
%)
124.7
75.1
15.8
Income before taxes
300.1
238.1
26
%
331.2
413.4
330.7
Taxes on income
68.1
62.8
8
%
74.9
75.0
84.1
Net income
232.0
175.3
32
%
256.3
338.4
246.6
Less: net income (loss) attributable
to
Redeemable noncontrolling interests
43.0
42.8
—
%
9.5
27.0
26.8
Nonredeemable noncontrolling interests
15.0
8.3
81
%
(4.5
)
15.9
(7.7
)
Net Income Attributable to Franklin
Resources, Inc.
$
174.0
$
124.2
40
%
$
251.3
$
295.5
$
227.5
Earnings per Share
Basic
$
0.32
$
0.23
39
%
$
0.50
$
0.58
$
0.44
Diluted
0.32
0.23
39
%
0.50
0.58
0.44
Dividends Declared per Share
$
0.31
$
0.31
0
%
$
0.31
$
0.30
$
0.30
Average Shares Outstanding
Basic
516.5
518.4
0
%
487.0
489.2
490.7
Diluted
517.2
519.2
0
%
487.9
490.0
491.4
Operating Margin
10.5
%
6.0
%
10.4
%
17.0
%
16.0
%
AUM AND FLOWS
(in billions)
Three Months Ended June
30,
% Change
Nine Months Ended June
30,
% Change
2024
2023
2024
2023
Beginning AUM
$
1,644.7
$
1,422.1
16
%
$
1,374.2
$
1,297.4
6
%
Long-term inflows
82.7
67.4
23
%
236.5
199.7
18
%
Long-term outflows
(85.9
)
(67.2
)
28
%
(237.8
)
(214.1
)
11
%
Long-term net flows
(3.2
)
0.2
NM
(1.3
)
(14.4
)
(91
%)
Cash management net flows
3.0
(7.3
)
NM
2.9
5.9
(51
%)
Total net flows
(0.2
)
(7.1
)
(97
%)
1.6
(8.5
)
NM
Acquisition
—
—
NM
148.3
34.9
NM
Net market change, distributions and
other6
2.1
16.5
(87
%)
122.5
107.7
14
%
Ending AUM
$
1,646.6
$
1,431.5
15
%
$
1,646.6
$
1,431.5
15
%
Average AUM
$
1,632.6
$
1,419.6
15
%
$
1,533.1
$
1,396.1
10
%
AUM BY ASSET CLASS
(in billions)
30-Jun-24
31-Mar-24
% Change
31-Dec-23
30-Sep-23
30-Jun-23
Equity
$
595.0
$
592.7
0
%
$
467.5
$
430.4
$
458.0
Fixed Income
564.5
571.4
(1
%)
511.7
483.1
505.1
Alternative
254.5
255.5
0
%
256.2
254.9
257.2
Multi-Asset
168.1
163.4
3
%
154.6
145.0
148.3
Cash Management
64.5
61.7
5
%
65.5
60.8
62.9
Total AUM
$
1,646.6
$
1,644.7
0
%
$
1,455.5
$
1,374.2
$
1,431.5
Average AUM for the Three-Month
Period
$
1,632.6
$
1,581.1
3
%
$
1,394.2
$
1,419.1
$
1,419.6
AUM BY SALES REGION
(in billions)
30-Jun-24
31-Mar-24
% Change
31-Dec-23
30-Sep-23
30-Jun-23
United States
$
1,155.0
$
1,155.9
0
%
$
1,019.4
$
979.9
$
1,026.0
International
Europe, Middle East and Africa7
205.8
206.3
0
%
180.6
165.1
170.6
Asia-Pacific
174.1
170.4
2
%
150.5
117.6
121.0
Americas, excl. U.S.
111.7
112.1
0
%
105.0
111.6
113.9
Total international
491.6
488.8
1
%
436.1
394.3
405.5
Total
$
1,646.6
$
1,644.7
0
%
$
1,455.5
$
1,374.2
$
1,431.5
AUM AND FLOWS BY ASSET
CLASS
(in billions)
for the three months ended
June 30, 2024
Equity
Fixed Income
Alternative
Multi-Asset
Cash Management
Total
AUM at April 1, 2024
$
592.7
$
571.4
$
255.5
$
163.4
$
61.7
$
1,644.7
Long-term inflows
32.0
37.4
3.4
9.9
—
82.7
Long-term outflows
(33.6
)
(42.2
)
(2.0
)
(8.1
)
—
(85.9
)
Long-term net flows
(1.6
)
(4.8
)
1.4
1.8
—
(3.2
)
Cash management net flows
—
—
—
—
3.0
3.0
Total net flows
(1.6
)
(4.8
)
1.4
1.8
3.0
(0.2
)
Net market change, distributions and
other6
3.9
(2.1
)
(2.4
)
2.9
(0.2
)
2.1
AUM at June 30, 2024
$
595.0
$
564.5
$
254.5
$
168.1
$
64.5
$
1,646.6
(in billions)
for the three months ended
March 31, 2024
Equity
Fixed Income
Alternative
Multi-Asset
Cash Management
Total
AUM at January 1, 2024
$
467.5
$
511.7
$
256.2
$
154.6
$
65.5
$
1,455.5
Long-term inflows
27.5
43.8
3.4
10.2
—
84.9
Long-term outflows
(32.8
)
(35.5
)
(2.4
)
(7.3
)
—
(78.0
)
Long-term net flows
(5.3
)
8.3
1.0
2.9
—
6.9
Cash management net flows
—
—
—
—
(4.8
)
(4.8
)
Total net flows
(5.3
)
8.3
1.0
2.9
(4.8
)
2.1
Acquisition
81.3
59.3
0.7
5.8
1.2
148.3
Net market change, distributions and
other6
49.2
(7.9
)
(2.4
)
0.1
(0.2
)
38.8
AUM at March 31, 2024
$
592.7
$
571.4
$
255.5
$
163.4
$
61.7
$
1,644.7
(in billions)
for the three months ended
June 30, 2023
Equity
Fixed Income
Alternative
Multi-Asset
Cash Management
Total
AUM at April 1, 2023
$
437.1
$
510.1
$
258.2
$
146.1
$
70.6
$
1,422.1
Long-term inflows
23.0
26.5
7.3
10.6
—
67.4
Long-term outflows
(26.0
)
(29.6
)
(3.3
)
(8.3
)
—
(67.2
)
Long-term net flows
(3.0
)
(3.1
)
4.0
2.3
—
0.2
Cash management net flows
—
—
—
—
(7.3
)
(7.3
)
Total net flows
(3.0
)
(3.1
)
4.0
2.3
(7.3
)
(7.1
)
Net market change, distributions and
other6
23.9
(1.9
)
(5.0
)
(0.1
)
(0.4
)
16.5
AUM at June 30, 2023
$
458.0
$
505.1
$
257.2
$
148.3
$
62.9
$
1,431.5
Supplemental Non-GAAP Financial Measures
As supplemental information, we are providing performance
measures for “adjusted operating income,” “adjusted operating
margin,” “adjusted net income” and “adjusted diluted earnings per
share,” each of which is based on methodologies other than
generally accepted accounting principles (“non-GAAP measures”).
Management believes these non-GAAP measures are useful indicators
of our financial performance and may be helpful to investors in
evaluating our relative performance against industry peers.
“Adjusted operating income,” “adjusted operating margin,”
“adjusted net income” and “adjusted diluted earnings per share” are
defined below, followed by reconciliations of operating income,
operating margin, net income attributable to Franklin Resources,
Inc. and diluted earnings per share on a U.S. GAAP basis to these
non-GAAP measures. Non-GAAP measures should not be considered in
isolation from, or as substitutes for, any financial information
prepared in accordance with U.S. GAAP, and may not be comparable to
other similarly titled measures of other companies. Additional
reconciling items may be added in the future to these non-GAAP
measures if deemed appropriate.
Adjusted Operating Income
We define adjusted operating income as operating income adjusted
to exclude the following:
- Elimination of operating revenues upon consolidation of
investment products.
- Acquisition-related items:
- Acquisition-related retention compensation.
- Other acquisition-related expenses including professional fees,
technology costs and fair value adjustments related to contingent
consideration assets and liabilities.
- Amortization of intangible assets.
- Impairment of intangible assets and goodwill, if any.
- Special termination benefits related to workforce optimization
initiatives related to past acquisitions and certain initiatives
undertaken by the Company.
- Impact on compensation and benefits expense from gains and
losses on investments related to deferred compensation plans, which
is offset in investment and other income (losses), net.
- Impact on compensation and benefits expense related to minority
interests in certain subsidiaries, which is offset in net income
(loss) attributable to redeemable noncontrolling interests.
Adjusted Operating Margin
We calculate adjusted operating margin as adjusted operating
income divided by adjusted operating revenues. We define adjusted
operating revenues as operating revenues adjusted to exclude the
following:
- Elimination of operating revenues upon consolidation of
investment products.
- Acquisition-related performance-based investment management
fees which are passed through as compensation and benefits
expense.
- Sales and distribution fees and a portion of investment
management fees allocated to cover sales, distribution and
marketing expenses paid to the financial advisers and other
intermediaries who sell our funds on our behalf.
Adjusted Net Income and Adjusted Diluted Earnings Per
Share
We define adjusted net income as net income attributable to
Franklin Resources, Inc. adjusted to exclude the following:
- Activities of CIPs.
- Acquisition-related items:
- Acquisition-related retention compensation.
- Other acquisition-related expenses including professional fees,
technology costs and fair value adjustments related to contingent
consideration assets and liabilities.
- Amortization of intangible assets.
- Impairment of intangible assets and goodwill, if any.
- Write off of noncontrolling interests related to the wind down
of an acquired business.
- Interest expense for amortization of Legg Mason debt premium
from acquisition-date fair value adjustment.
- Special termination benefits related to workforce optimization
initiatives related to past acquisitions and certain initiatives
undertaken by the Company.
- Net gains or losses on investments related to deferred
compensation plans which are not offset by compensation and
benefits expense.
- Net compensation and benefits expense related to minority
interests in certain subsidiaries not offset by net income (loss)
attributable to redeemable noncontrolling interests.
- Unrealized investment gains and losses.
- Net income tax expense of the above adjustments based on the
respective blended rates applicable to the adjustments.
We define adjusted diluted earnings per share as diluted
earnings per share adjusted to exclude the per share impacts of the
adjustments applied to net income in calculating adjusted net
income.
In calculating our non-GAAP measures, we adjust for the impact
of CIPs because it is not considered reflective of our underlying
results of operations. Acquisition-related items and special
termination benefits are excluded to facilitate comparability to
other asset management firms. We adjust for compensation and
benefits expense related to funded deferred compensation plans
because it is partially offset in other income (expense), net. We
adjust for compensation and benefits expense and net income (loss)
attributable to redeemable noncontrolling interests to reflect the
economics of certain profits interest arrangements. Sales and
distribution fees and a portion of investment management fees
generally cover sales, distribution and marketing expenses and,
therefore, are excluded from adjusted operating revenues. In
addition, when calculating adjusted net income and adjusted diluted
earnings per share we exclude unrealized investment gains and
losses included in investment and other income (losses) because the
related investments are generally expected to be held long
term.
The calculations of adjusted operating income, adjusted
operating margin, adjusted net income and adjusted diluted earnings
per share are as follows:
(in millions)
Three Months Ended
Nine Months Ended
30-Jun-24
31-Mar-24
30-Jun-23
30-Jun-24
30-Jun-23
Operating income
$
222.5
$
129.3
$
314.9
$
558.3
$
764.0
Add (subtract):
Elimination of operating revenues upon
consolidation of investment products*
12.3
11.0
12.1
34.7
26.3
Acquisition-related retention
43.7
104.5
21.3
217.3
108.1
Compensation and benefits expense from
gains on deferred compensation, net
1.8
14.0
10.1
34.8
26.3
Other acquisition-related expenses
33.6
25.2
8.7
65.6
45.3
Amortization of intangible assets
84.0
84.6
85.4
254.4
254.6
Special termination benefits
16.7
40.4
12.2
63.8
54.9
Compensation and benefits expense related
to minority interests in certain subsidiaries
10.3
10.6
12.1
32.6
32.6
Adjusted operating income
$
424.9
$
419.6
$
476.8
$
1,261.5
$
1,312.1
Total operating revenues
$
2,122.9
$
2,152.8
$
1,969.0
$
6,266.8
$
5,863.3
Add (subtract):
Acquisition-related pass through
performance fees
—
(14.4
)
(11.6
)
(87.0
)
(164.1
)
Sales and distribution fees
(358.3
)
(358.5
)
(304.0
)
(1,013.2
)
(897.3
)
Allocation of investment management fees
for sales, distribution and marketing expenses
(122.8
)
(125.8
)
(102.8
)
(353.0
)
(304.7
)
Elimination of operating revenues upon
consolidation of investment products*
12.3
11.0
12.1
34.7
26.3
Adjusted operating revenues
$
1,654.1
$
1,665.1
$
1,562.7
$
4,848.3
$
4,523.5
Operating margin
10.5
%
6.0
%
16.0
%
8.9
%
13.0
%
Adjusted operating margin
25.7
%
25.2
%
30.5
%
26.0
%
29.0
%
(in millions, except per share data)
Three Months Ended
Nine Months Ended
30-Jun-24
31-Mar-24
30-Jun-23
30-Jun-24
30-Jun-23
Net income attributable to Franklin
Resources, Inc.
$
174.0
$
124.2
$
227.5
$
549.5
$
587.3
Add (subtract):
Net (income) loss of consolidated
investment products*
(2.4
)
3.5
1.5
(1.1
)
6.4
Acquisition-related retention
43.7
104.5
21.3
217.3
108.1
Other acquisition-related expenses
34.9
29.3
12.7
75.0
61.5
Amortization of intangible assets
84.0
84.6
85.4
254.4
254.6
Special termination benefits
16.7
40.4
12.2
63.8
54.9
Net gains on deferred compensation plan
investments not offset by compensation and benefits expense
(1.1
)
(3.9
)
(0.5
)
(11.0
)
(14.1
)
Unrealized investment (gains) losses
31.0
(9.6
)
9.4
(27.6
)
(23.2
)
Interest expense for amortization of debt
premium
(6.4
)
(6.4
)
(6.3
)
(19.2
)
(19.0
)
Net compensation and benefits expense
related to minority interests in certain subsidiaries not offset by
net income (loss) attributable to redeemable noncontrolling
interests
2.8
0.4
(1.0
)
1.2
(0.9
)
Net income tax expense of adjustments
(50.8
)
(60.4
)
(36.1
)
(140.8
)
(110.4
)
Adjusted net income
$
326.4
$
306.6
$
326.1
$
961.5
$
905.2
Diluted earnings per share
$
0.32
$
0.23
$
0.44
$
1.03
$
1.14
Adjusted diluted earnings per
share
0.60
0.56
0.63
1.81
1.76
__________________ * The impact of CIPs is
summarized as follows:
(in millions)
Three Months Ended
Nine Months Ended
30-Jun-24
31-Mar-24
30-Jun-23
30-Jun-24
30-Jun-23
Elimination of operating revenues upon
consolidation
$
(12.3
)
$
(11.0
)
$
(12.1
)
$
(34.7
)
$
(26.3
)
Other income, net
42.0
38.6
7.3
72.0
67.4
Less: income (loss) attributable to
noncontrolling interests
27.3
31.1
(3.3
)
36.2
47.5
Net income (loss)
$
2.4
$
(3.5
)
$
(1.5
)
$
1.1
$
(6.4
)
Notes
- Net income represents net income attributable to Franklin
Resources, Inc.
- “Adjusted net income,” “adjusted diluted earnings per share,”
“adjusted operating income” and “adjusted operating margin” are
based on methodologies other than generally accepted accounting
principles. See “Supplemental Non-GAAP Financial Measures” for
definitions and reconciliations of these measures.
- Average AUM represents monthly average AUM.
- Includes our direct investments in CIPs of $1.2 billion,
approximately $370 million of employee-owned and other third-party
investments made through partnerships, $286.1 million of
investments that are subject to long-term repurchase agreements and
other net financing arrangements, and $440.3 million of cash and
investments related to deferred compensation plans.
- During the quarter ended March 31, 2024, the Company identified
that it did not eliminate the investment income from certain
consolidated limited partnerships for the fiscal year ended
September 30, 2023, resulting in offsetting adjustments to
investment and other income, net and net income attributable to
nonredeemable noncontrolling interest. For comparability, the
Company has revised the comparative prior period amounts in the
Consolidated Statements of Income. There was no impact to operating
income, net income attributable to Franklin Resources, Inc. or
earnings per share.
- Net market change, distributions and other includes
appreciation (depreciation), distributions to investors that
represent return on investments and return of capital, and foreign
exchange revaluation.
- India region is included in Europe, Middle East and
Africa.
Franklin Resources, Inc. (NYSE: BEN) is a global investment
management organization with subsidiaries operating as Franklin
Templeton and serving clients in over 150 countries. Franklin
Templeton’s mission is to help clients achieve better outcomes
through investment management expertise, wealth management and
technology solutions. Through its specialist investment managers,
the Company offers specialization on a global scale, bringing
extensive capabilities in fixed income, equity, alternatives and
multi-asset solutions. With more than 1,500 investment
professionals, and offices in major financial markets around the
world, the California-based company has over 75 years of investment
experience and over $1.6 trillion in AUM as of June 30, 2024. The
Company posts information that may be significant for investors in
the Investor Relations and News Center sections of its website, and
encourages investors to consult those sections regularly. For more
information, please visit investors.franklinresources.com.
Forward-Looking Statements
Some of the statements herein may include forward-looking
statements that reflect our current views with respect to future
events, financial performance and market conditions. Such
statements are provided under the “safe harbor” protection of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that do not relate solely to
historical or current facts and generally can be identified by
words or phrases written in the future tense and/or preceded by
words such as “anticipate,” “believe,” “could,” “depends,”
“estimate,” “expect,” “intend,” “likely,” “may,” “plan,”
“potential,” “seek,” “should,” “will,” “would,” or other similar
words or variations thereof, or the negative thereof, but these
terms are not the exclusive means of identifying such
statements.
Forward-looking statements involve a number of known and unknown
risks, uncertainties and other important factors that may cause
actual results and outcomes to differ materially from any future
results or outcomes expressed or implied by such forward-looking
statements, including market and volatility risks, investment
performance and reputational risks, global operational risks,
competition and distribution risks, third-party risks, technology
and security risks, human capital risks, cash management risks, and
legal and regulatory risks. While forward-looking statements are
our best prediction at the time that they are made, you should not
rely on them and are cautioned against doing so. Forward-looking
statements are based on our current expectations and assumptions
regarding our business, the economy and other possible future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. They are
neither statements of historical fact nor guarantees or assurances
of future performance. Factors or events that could cause our
actual results to differ may emerge from time to time, and it is
not possible for us to predict all of them.
These and other risks, uncertainties and other important factors
are described in more detail in our recent filings with the U.S.
Securities and Exchange Commission, including, without limitation,
in Risk Factors and Management’s Discussion and Analysis of
Financial Condition and Results of Operations in our Annual Report
on Form 10-K for the fiscal year ended September 30, 2023 and our
subsequent Quarterly Reports on Form 10-Q. If a circumstance occurs
after the date of this press release that causes any of our
forward-looking statements to be inaccurate, whether as a result of
new information, future developments or otherwise, we undertake no
obligation to announce publicly the change to our expectations, or
to make any revision to our forward-looking statements, to reflect
any change in assumptions, beliefs or expectations, or any change
in events, conditions or circumstances upon which any
forward-looking statement is based, unless required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725193100/en/
Franklin Resources, Inc. Investor Relations: Selene Oh, (650)
312-4091 selene.oh@franklintempleton.com
Media Relations: Jeaneen Terrio, (212) 632-4005
jeaneen.terrio@franklintempleton.com
investors.franklinresources.com
Franklin Resources (NYSE:BEN)
過去 株価チャート
から 6 2024 まで 7 2024
Franklin Resources (NYSE:BEN)
過去 株価チャート
から 7 2023 まで 7 2024
