BOSTON, Feb. 22, 2012 /PRNewswire/ -- Eaton Vance Corp.
(NYSE: EV) earned $0.47 of adjusted
earnings per diluted share(1) in the first quarter of fiscal 2012,
an increase of 4 percent over the $0.45 of adjusted earnings per diluted share in
the first quarter of fiscal 2011 and unchanged from the
$0.47 of adjusted earnings per
diluted share in the fourth quarter of fiscal 2011.
As determined under U.S. generally accepted accounting
principles ("GAAP"), the Company earned $0.40 in the first quarter of fiscal 2012,
$0.30 in the first quarter of fiscal
2011 and $0.40 in the fourth quarter
of fiscal 2011. Adjusted earnings differed from GAAP earnings
due to adjustments in connection with increases in the estimated
redemption value of non-controlling interests in our affiliates
redeemable at other than fair value, which totaled $0.07, $0.15 and
$0.07 per diluted share in the first
quarter of fiscal 2012, the first quarter of fiscal 2011 and the
fourth quarter of fiscal 2011, respectively.
Net outflows of $1.1 billion from
long-term funds and separate accounts in the first quarter of
fiscal 2012 compare to net inflows of $1.8
billion in the first quarter of fiscal 2011 and net outflows
of $2.7 billion in the fourth quarter
of fiscal 2011.
Assets under management on January 31,
2012 were $191.7 billion,
unchanged from January 31, 2011 and
an increase of 2 percent from the $188.2
billion of managed assets as of October 31, 2011.
"Eaton Vance experienced sequentially improved net flows and a
rising trend of managed assets in the first quarter of fiscal
2012," said Thomas E. Faust, Jr.,
Chairman and Chief Executive Officer. "For the balance of the
year, we see both continuing challenges and growing
opportunities."
Comparison to First Quarter of Fiscal 2011
Long-term fund net outflows of $1.2
billion in the first quarter of fiscal 2012 compare to
$1.4 billion of long-term fund net
inflows in the first quarter of fiscal 2011, and reflect
$6.9 billion of fund sales and other
inflows and $8.1 billion of fund
redemptions and other outflows. The $0.4 billion of institutional separate account
net outflows in the first quarter of fiscal 2012 compare to
$0.5 billion of institutional
separate account net inflows in the first quarter of fiscal 2011,
and reflect gross inflows of $1.8
billion and $2.2 billion of
outflows. The $0.5 billion of
high-net-worth separate account net inflows in the first quarter of
fiscal 2012 compare to $0.2 billion
of high-net-worth separate account net inflows in the first quarter
of fiscal 2011, and reflect gross inflows of $1.0 billion and $0.5
billion of outflows. Retail managed account gross
inflows of $1.7 billion were offset
by $1.7 billion of outflows in the
first quarter of fiscal 2012, while retail managed account net
outflows totaled $0.1 billion in the
first quarter of fiscal 2011. Attachments 4 and 5 summarize
the Company's assets under management and asset flows by investment
mandate.
Revenue in the first quarter of fiscal 2012 decreased
$13.0 million, or 4 percent, to
$295.6 million from revenue of
$308.6 million in the first quarter
of fiscal 2011. Investment advisory and administration fees
decreased 1 percent to $239.5
million, reflecting a slightly lower effective management
fee rate as compared to the first quarter of fiscal 2011.
Distribution and underwriter fees decreased 18 percent due to
a decrease in average fund assets to which distribution fees apply
and a reduction in underwriter fees collected on Class A fund
sales. Service fee revenue decreased 14 percent due to a
decrease in average fund assets subject to service fees.
Operating expenses decreased $6.5
million, or 3 percent, to $202.8
million in the first quarter of fiscal 2012 compared to
operating expenses of $209.3 million
in the first quarter of fiscal 2011. Compensation expense was
substantially unchanged, as decreases in sales-based incentives
offset compensation increases attributable to higher employee
headcount and increases in base salaries, stock-based compensation
and employee benefits. Distribution expense was substantially
unchanged from the prior fiscal year's first quarter, as increases
in Class C distribution expense were offset by lower marketing
support payments. Service fee expense decreased 8 percent
from the prior fiscal year's first quarter due to a decrease in
assets subject to service fees. Amortization of deferred
sales commissions decreased 44 percent, as a result of declines in
Class B, Class C and private fund amortization expense. Fund
expenses increased 46 percent from the first quarter of fiscal 2011
due to higher subadvisory expenses and fund subsidies. Other
expenses decreased 2 percent, reflecting lower information
technology and professional service expenses.
Operating income in the first quarter of fiscal 2012 was
$92.8 million, a decrease of 7
percent from operating income of $99.3
million in the first quarter of fiscal 2011. The
Company's operating margin declined to 31.4 percent in the first
quarter of fiscal 2012 from 32.2 percent in the first quarter of
fiscal 2011.
Interest and other income decreased 16 percent in the first
quarter of fiscal 2012 compared to the first quarter of fiscal 2011
due to a decrease in average effective interest rates earned on the
Company's cash balances and lower interest and dividend income of
consolidated funds. In the first quarter of fiscal 2012, the
Company recognized $6.4 million of
net investment gains, including a $2.4
million gain related to the Company's April 2011 sale of its equity interest in Lloyd
George Management, for which additional settlement payments were
received during the quarter, and gains recognized on the Company's
seed capital investments. The Company recognized $0.7 million of net investment losses in the
first quarter of fiscal 2011. Also included in other income
and expenses for the first quarter of fiscal 2012 were net gains of
$6.0 million associated with a
consolidated collateralized loan obligation ("CLO") entity,
primarily attributable to an increase in the fair market value of
the investments held by the entity. The CLO net gain included
in other income and expenses was substantially offset by net gain
attributable to non-controlling and other beneficial interests, as
the consolidated CLO entity's gain is largely attributable to the
CLO entity's outside investors rather than the Company.
Included in other income and expenses for the first quarter
of fiscal 2011 were net gains of $0.3
million associated with the consolidation of the CLO entity,
which amounts were again substantially offset by net gain
attributable to non-controlling and other beneficial interests.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 35.7 percent and 37.3 percent in the first quarter of fiscal
2012 and fiscal 2011, respectively.
In the first quarter of fiscal 2012, net income attributable to
non-controlling and other beneficial interests decreased
$4.2 million from the first quarter
of fiscal 2011, reflecting a $5.6
million increase in consolidated CLO entity gains
attributable to other beneficial interest holders and a
$0.3 million decrease in
non-controlling beneficial interest associated with the Company's
majority-owned subsidiaries and consolidated funds. Also
included in non-controlling and other beneficial interests in the
first quarter of fiscal 2012 and 2011 are $7.9 million and $19.1
million, respectively, of non-controlling interest value
adjustments that relate to the profit growth of our subsidiary
Parametric Portfolio Associates over the respective preceding
twelve months ended December 31.
Adjusted net income attributable to Eaton Vance Corp.
shareholders(2) was $55.4 million in
the first quarter of fiscal 2012 compared to $55.7 million in the first quarter of fiscal
2011, a decrease of 1 percent. GAAP net income attributable
to Eaton Vance Corp. shareholders was $47.3
million in the first quarter of fiscal 2012 and $37.5 million in the first quarter of fiscal
2011. Adjusted net income attributable to Eaton Vance Corp.
shareholders differed from GAAP net income attributable to Eaton
Vance Corp. shareholders primarily due to the increases in the
estimated redemption value of non-controlling interests in our
subsidiary Parametric Portfolio Associates described in the
preceding paragraph.
Comparison to Fourth Quarter of Fiscal 2011
Long-term fund net outflows of $1.2
billion in the first quarter of fiscal 2012 compare to
$3.1 billion of long-term fund net
outflows in the fourth quarter of fiscal 2011. The $0.4 billion of institutional separate account
net outflows in the first quarter of fiscal 2012 compare to
institutional separate account net inflows of $0.5 billion in the fourth quarter of fiscal
2011. The $0.5 billion of net
inflows into high-net-worth separate accounts in the first quarter
of fiscal 2012 compare to $0.1
billion of net inflows in the fourth quarter of fiscal 2011.
Retail managed account gross inflows of $1.7 billion were offset by $1.7 billion of outflows in the first quarter of
fiscal 2012, while retail managed account net outflows totaled
$0.2 billion in the fourth quarter of
fiscal 2011. Attachments 4 and 5 summarize the Company's
assets under management and asset flows by investment mandate.
Revenue in the first quarter of fiscal 2012 decreased
$1.7 million, or 1 percent, to
$295.6 million from $297.3 million in the fourth quarter of fiscal
2011. Investment advisory and administration fees were
substantially unchanged, as average assets under management and
effective management fee rates did not change materially.
Distribution and underwriter fees decreased 2 percent and
service fee revenue decreased 3 percent due to a decrease in
average fund assets that pay these fees.
Operating expenses increased $10.1
million, or 5 percent, to $202.8
million in the first quarter of fiscal 2012 from
$192.7 million in the fourth quarter
of fiscal 2011. Compensation expense increased 19 percent
from the fourth quarter of fiscal 2011, reflecting increases in
bonus accruals, stock-based compensation, employee benefits,
payroll taxes and base salaries. Distribution expense
decreased 1 percent from the prior fiscal quarter due to decreases
in marketing support payments, offset by increases in marketing
expenses. Service fee expense decreased 5 percent due to a decrease
in assets subject to service fees. Amortization expense
decreased 20 percent from the prior fiscal quarter as a result of
declines in Class B, Class C and private fund amortization expense.
Fund expenses decreased 13 percent from the fourth quarter of
fiscal 2011 due to a decrease in subadvisory fees and fund
subsidies. Other expenses decreased 4 percent from the fourth
quarter primarily due to decreases in information technology
expenses.
Operating income in the first quarter of fiscal 2012 was
$92.8 million, a decrease of 11
percent from operating income of $104.6
million in the fourth quarter of fiscal 2011. The Company's
operating margin declined to 31.4 percent in the first quarter of
fiscal 2012 from 35.2 percent in the fourth quarter of fiscal 2011.
Interest and other income increased 481 percent in the first
quarter of fiscal 2012 compared to the fourth quarter of fiscal
2011 due to an increase in interest and dividend income of
consolidated funds. The $6.4 million
of net investment gains recognized in the first quarter of fiscal
2012, which included the $2.4 million
gain related to the Lloyd George Management sale discussed above,
compare to $2.5 million of net
investment losses in the fourth quarter of fiscal 2011. Also
included in other income and expenses for the first quarter of
fiscal 2012 and fourth quarter of fiscal 2011 were consolidated CLO
entity net gains of $6.0 million and
net losses of $11.4 million,
respectively, that are primarily attributable to changes in the
fair market value of investments held by the entity. The net
gains and losses of the consolidated CLO entity recognized in other
income and expenses for the respective periods were substantially
offset by gain and loss attributable to non-controlling and other
beneficial interests.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 35.7 percent and 45.5 percent in the first quarter of fiscal
2012 and fourth quarter of fiscal 2011, respectively. The
decrease in the Company's effective tax rate was due primarily to
changes in the amount of consolidated CLO entity gains or losses
recognized, which are not subject to current tax.
Net income attributable to non-controlling and other beneficial
interests increased $18.8 million in
the first quarter of fiscal 2012 from the prior quarter due
primarily to a $17.4 million decrease
in non-controlling beneficial interest associated with the
consolidated CLO entity and a $2.2
million decrease in non-controlling beneficial interest
associated with the Company's majority-owned subsidiaries and
consolidated funds. Also included in net income attributable
to non-controlling and other beneficial interests for the first
quarter of fiscal 2012 and the fourth quarter of fiscal 2011 are
non-controlling interest value adjustments of $7.9 million and $8.5
million relating to our subsidiaries Parametric Portfolio
Associates and Atlanta Capital Management that are attributable to
their profit growth over the twelve months ended December 31, 2011 and October 31, 2011, respectively.
Adjusted net income attributable to Eaton Vance Corp.
shareholders was $55.4 million in the
first quarter of fiscal 2012 compared to $55.7 million in the fourth quarter, a decrease
of 1 percent. GAAP net income attributable to Eaton Vance
Corp. shareholders was $47.3 million
in the first quarter of fiscal 2012 and $46.8 million in the fourth quarter of fiscal
2011. First quarter fiscal 2012 and fourth quarter fiscal
2011 adjusted net income attributable to Eaton Vance Corp.
shareholders differed from GAAP net income attributable to Eaton
Vance Corp. shareholders primarily due to the increases in the
estimated redemption value of non-controlling interests in our
subsidiaries Parametric Portfolio Associates and Atlanta Capital
Management described in the preceding paragraph.
Cash and cash equivalents totaled $475.4
million on January 31, 2012
compared to $510.9 million on
October 31, 2011. There were no
outstanding borrowings against the Company's $200.0 million credit facility on January 31, 2012. During the first three
months of fiscal 2012, the Company used $34.8 million to repurchase and retire
approximately 1.4 million shares of its Non-Voting Common Stock
under its repurchase authorization and paid $22.0 million of dividends to shareholders.
Over the twelve months ended January
31, 2012, the Company used $206.6
million to repurchase and retire approximately 7.9 million
shares of its Non-Voting Common Stock and paid $85.9 million in dividends to shareholders.
Approximately 6.6 million shares of the current 8.0 million
share repurchase authorization remains unused.
Eaton Vance Corp. is one of the oldest investment management
firms in the United States, with a
history dating back to 1924. Eaton Vance and its affiliates offer
individuals and institutions a broad array of investment strategies
and wealth management solutions. The Company's long record of
providing exemplary service, timely innovation and attractive
returns through a variety of market conditions has made Eaton Vance
the investment manager of choice for many of today's most
discerning investors. For more information about Eaton Vance,
visit www.eatonvance.com.
This news release contains statements that are not historical
facts, referred to as "forward-looking statements." The
Company's actual future results may differ significantly from those
stated in any forward-looking statements, depending on factors such
as changes in securities or financial markets or general economic
conditions, client sales and redemption activity, the continuation
of investment advisory, administration, distribution and service
contracts, and other risks discussed from time to time in the
Company's filings with the Securities and Exchange Commission.
(1) Adjusted earnings per diluted share reflects the add back
of adjustments in connection with changes in the estimated
redemption value of non-controlling interests in our affiliates
redeemable at other than fair value ("non-controlling interest
value adjustments"), closed-end structuring fees and other items
management deems non-recurring or non-operating. See
reconciliation provided in Attachment 2 for more information on
adjusting items.
(2) Adjusted net income attributable to Eaton Vance Corp.
shareholders reflects the add back of adjustments in connection
with changes in the estimated redemption value of non-controlling
interests in our affiliates redeemable at other than fair value,
closed-end structuring fees and other items management deems
non-recurring or non-operating. See reconciliation provided
in Attachment 2 for more information on adjusting items.
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Attachment
1
|
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Eaton Vance
Corp.
|
|
Summary of
Results of Operations
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|
(in
thousands, except per share figures)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Three Months
Ended
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|
|
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|
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%
Change
|
%
Change
|
|
|
|
|
|
January
31,
|
October
31,
|
January
31,
|
Q1 2012
to
|
Q1 2012
to
|
|
|
|
|
|
2012
|
2011
|
2011
|
Q4
2011
|
Q1
2011
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|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory and
administration fees
|
$
|
239,452
|
$
|
239,751
|
$
|
242,734
|
-
|
%
|
(1)
|
%
|
|
|
|
Distribution and underwriter
fees
|
|
22,515
|
|
23,079
|
|
27,327
|
(2)
|
|
(18)
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|
|
|
|
Service fees
|
|
32,299
|
|
33,281
|
|
37,345
|
(3)
|
|
(14)
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|
|
|
|
Other revenue
|
|
1,340
|
|
1,212
|
|
1,208
|
11
|
|
11
|
|
|
|
|
|
Total revenues
|
|
295,606
|
|
297,323
|
|
308,614
|
(1)
|
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(4)
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|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation of officers and
employees
|
|
96,683
|
|
81,007
|
|
97,050
|
19
|
|
-
|
|
|
|
|
Distribution expense
|
|
32,328
|
|
32,577
|
|
32,697
|
(1)
|
|
(1)
|
|
|
|
|
Service fee expense
|
|
28,673
|
|
30,186
|
|
31,329
|
(5)
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(8)
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|
|
|
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Amortization of deferred sales
commissions
|
|
5,820
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|
7,277
|
|
10,350
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(20)
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(44)
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|
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Fund expenses
|
|
6,651
|
|
7,635
|
|
4,544
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(13)
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46
|
|
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Other expenses
|
|
32,631
|
|
33,993
|
|
33,299
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(4)
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(2)
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Total expenses
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202,786
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|
192,675
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209,269
|
5
|
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(3)
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Operating income
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|
92,820
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|
104,648
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|
99,345
|
(11)
|
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(7)
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|
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Other income
(expense):
|
|
|
|
|
|
|
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|
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|
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Interest and other
income
|
|
1,737
|
|
299
|
|
2,063
|
481
|
|
(16)
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|
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Interest expense
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|
(8,413)
|
|
(8,413)
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|
(8,413)
|
-
|
|
-
|
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Net gains (losses) on
investments and derivatives
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|
6,430
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|
(2,548)
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|
(746)
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NM
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|
NM
|
|
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|
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Net foreign currency
gains
|
|
10
|
|
251
|
|
3
|
(96)
|
|
233
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|
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Other income (expense) of
consolidated
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collateralized loan obligation
entity:
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Interest
income
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|
5,544
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|
5,272
|
|
5,220
|
5
|
|
6
|
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|
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Interest
expense
|
|
(4,311)
|
|
(4,029)
|
|
(1,514)
|
7
|
|
185
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Net gains (losses)
on bank loans, other investments
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|
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and note
obligations
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4,736
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(12,614)
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(3,385)
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NM
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NM
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Income before income taxes and
equity
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in net income of
affiliates
|
98,553
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|
82,866
|
|
92,573
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19
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|
6
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Income taxes
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(35,187)
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(37,665)
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(34,522)
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(7)
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2
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Equity in net income of
affiliates, net of tax
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1,504
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|
387
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1,234
|
289
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22
|
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Net income
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64,870
|
|
45,588
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59,285
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42
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9
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|
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Net (income) loss attributable
to
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non-controlling and other
beneficial interests
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(17,599)
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1,232
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(21,750)
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NM
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(19)
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Net income attributable
to
|
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Eaton Vance Corp.
Shareholders
|
$
|
47,271
|
$
|
46,820
|
$
|
37,535
|
1
|
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26
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Earnings per share attributable
to
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Eaton Vance Corp.
Shareholders:
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Basic
|
$
|
0.41
|
$
|
0.41
|
$
|
0.31
|
-
|
|
32
|
|
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Diluted
|
$
|
0.40
|
$
|
0.40
|
$
|
0.30
|
-
|
|
33
|
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Weighted average shares
outstanding:
|
|
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|
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|
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|
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|
|
|
Basic
|
|
112,768
|
|
112,939
|
|
116,741
|
-
|
|
(3)
|
|
|
|
|
Diluted
|
|
114,901
|
|
115,238
|
|
122,175
|
-
|
|
(6)
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|
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Dividends declared per
share
|
$
|
0.19
|
$
|
0.19
|
$
|
0.18
|
-
|
|
6
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Attachment
2
|
|
|
Eaton Vance
Corp.
|
|
Reconciliation of net income
attributable to Eaton Vance Corp. shareholders
|
|
and earnings
per diluted share to adjusted net income attributable to Eaton
Vance
|
|
Corp.
shareholders and adjusted earnings per diluted share
|
|
(unaudited)
|
|
|
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|
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|
|
|
|
|
|
Three Months
Ended
|
|
|
|
January
31,
|
October
31,
|
January
31,
|
|
|
(in thousands, except per share
figures)
|
2012
|
2011
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Eaton
Vance Corp. shareholders
|
$
|
47,271
|
$
|
46,820
|
$
|
37,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interest value
adjustments
|
|
8,102
|
|
8,906
|
|
18,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable
to Eaton Vance
|
|
|
|
|
|
|
|
|
|
Corp.
shareholders
|
$
|
55,373
|
$
|
55,726
|
$
|
55,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
share
|
$
|
0.40
|
$
|
0.40
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interest value
adjustments
|
|
0.07
|
|
0.07
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per diluted
share
|
$
|
0.47
|
$
|
0.47
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
3
|
|
|
Eaton Vance
Corp.
|
|
|
Balance
Sheet
|
|
|
(in
thousands, except per share figures)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
|
|
October
31,
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
475,370
|
|
|
$
|
510,913
|
|
|
Investment advisory fees and
other receivables
|
|
126,885
|
|
|
|
130,525
|
|
|
Investments
|
|
333,404
|
|
|
|
287,735
|
|
|
Assets of consolidated
collateralized loan obligation entity:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
16,832
|
|
|
|
16,521
|
|
|
Bank loans and other investments
|
|
472,933
|
|
|
|
462,586
|
|
|
Other assets
|
|
1,222
|
|
|
|
2,715
|
|
|
Deferred sales
commissions
|
|
24,377
|
|
|
|
27,884
|
|
|
Deferred income taxes
|
|
44,768
|
|
|
|
41,343
|
|
|
Equipment and leasehold
improvements, net
|
|
64,443
|
|
|
|
67,227
|
|
|
Intangible assets,
net
|
|
65,225
|
|
|
|
67,224
|
|
|
Goodwill
|
|
142,302
|
|
|
|
142,302
|
|
|
Other assets
|
|
66,772
|
|
|
|
74,325
|
|
|
Total
assets
|
$
|
1,834,533
|
|
|
$
|
1,831,300
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, Temporary Equity
and Permanent Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued compensation
|
$
|
49,748
|
|
|
$
|
137,431
|
|
|
Accounts payable and accrued
expenses
|
|
60,788
|
|
|
|
51,333
|
|
|
Dividend payable
|
|
22,023
|
|
|
|
21,959
|
|
|
Debt
|
|
500,000
|
|
|
|
500,000
|
|
|
Liabilities of consolidated
collateralized loan obligation entity:
|
|
|
|
|
|
|
|
|
Senior and subordinated note obligations
|
|
480,345
|
|
|
|
477,699
|
|
|
Other liabilities
|
|
6,777
|
|
|
|
5,193
|
|
|
Other liabilities
|
|
118,979
|
|
|
|
75,557
|
|
|
Total
liabilities
|
|
1,238,660
|
|
|
|
1,269,172
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary Equity:
|
|
|
|
|
|
|
|
|
Redeemable non-controlling
interests
|
|
118,494
|
|
|
|
100,824
|
|
|
Total temporary
equity
|
|
118,494
|
|
|
|
100,824
|
|
|
|
|
|
|
|
|
|
|
|
Permanent Equity:
|
|
|
|
|
|
|
|
|
Voting common stock, par value
$0.00390625 per share:
|
|
|
|
|
|
|
|
|
Authorized, 1,280,000
shares
|
|
|
|
|
|
|
|
|
Issued, 399,240 and
399,240 shares, respectively
|
|
2
|
|
|
|
2
|
|
|
Non-voting common stock, par
value $0.00390625 per share:
|
|
|
|
|
|
|
|
|
Authorized, 190,720,000
shares
|
|
|
|
|
|
|
|
|
Issued, 115,435,234 and
115,223,827 shares, respectively
|
|
451
|
|
|
|
450
|
|
|
Notes receivable from stock
option exercises
|
|
(4,118)
|
|
|
|
(4,441)
|
|
|
Accumulated other comprehensive
income
|
|
2,003
|
|
|
|
1,340
|
|
|
Appropriated retained earnings
(deficit)
|
|
1,124
|
|
|
|
(3,867)
|
|
|
Retained earnings
|
|
477,152
|
|
|
|
466,931
|
|
|
Total Eaton Vance
Corp. shareholders' equity
|
|
476,614
|
|
|
|
460,415
|
|
|
Non-redeemable non-controlling
interests
|
|
765
|
|
|
|
889
|
|
|
Total permanent
equity
|
|
477,379
|
|
|
|
461,304
|
|
|
Total liabilities, temporary
equity and permanent equity
|
$
|
1,834,533
|
|
|
$
|
1,831,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
4
|
|
|
Eaton Vance
Corp.
|
|
|
Table
1
|
|
|
Asset Flows
(in millions)
|
|
|
Twelve
Months Ended January 31, 2012
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets as of January 31,2011 -
beginning of period
|
|
$
|
191,744
|
|
|
|
|
|
|
|
Long-term fund sales and
inflows
|
|
|
30,304
|
|
|
|
|
|
|
|
Long-term fund redemptions and
outflows
|
|
|
(32,318)
|
|
|
|
|
|
|
|
Long-term fund net
exchanges
|
|
|
(123)
|
|
|
|
|
|
|
|
Institutional account
inflows
|
|
|
11,990
|
|
|
|
|
|
|
|
Institutional account
outflows
|
|
|
(10,334)
|
|
|
|
|
|
|
|
High-net-worth account
inflows
|
|
|
3,071
|
|
|
|
|
|
|
|
High-net-worth account
outflows
|
|
|
(2,330)
|
|
|
|
|
|
|
|
High-net-worth assets
acquired
|
|
|
352
|
|
|
|
|
|
|
|
Retail managed account
inflows
|
|
|
6,819
|
|
|
|
|
|
|
|
Retail managed account
outflows
|
|
|
(6,283)
|
|
|
|
|
|
|
|
Market value change
|
|
|
(1,016)
|
|
|
|
|
|
|
|
Change in cash management
funds
|
|
|
(170)
|
|
|
|
|
|
|
|
Net change
|
|
|
(38)
|
|
|
|
|
|
|
Assets as of January 31,2012 -
end of period
|
|
$
|
191,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance
Corp.
|
|
|
Table
2
|
|
|
Assets Under
Management
|
|
|
By
Investment Mandate (1)
|
|
|
(in
millions) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
October
31,
|
|
%
|
|
January
31,
|
|
%
|
|
|
|
|
|
2012
|
|
2011
|
|
Change
|
|
2011
|
|
Change
|
|
|
Equity
|
$
|
110,834
|
|
$
|
108,859
|
|
2%
|
|
$
|
114,722
|
|
-3%
|
|
|
Fixed income
|
|
45,514
|
|
|
43,708
|
|
4%
|
|
|
43,013
|
|
6%
|
|
|
Floating-rate income
|
|
24,376
|
|
|
24,322
|
|
0%
|
|
|
21,939
|
|
11%
|
|
|
Alternative
|
|
10,449
|
|
|
10,645
|
|
-2%
|
|
|
11,367
|
|
-8%
|
|
|
Cash management
|
|
533
|
|
|
670
|
|
-20%
|
|
|
703
|
|
-24%
|
|
|
Total
|
$
|
191,706
|
|
$
|
188,204
|
|
2%
|
|
$
|
191,744
|
|
0%
|
|
|
(1)Includes
funds and separate accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance
Corp.
|
|
|
Table
3
|
|
|
Long-Term
Fund and Separate Account Net Flows (in millions)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
January
31,
|
|
October
31,
|
January
31,
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
2011
|
|
|
|
|
|
|
Long-term funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Open-end funds
|
$
|
(1,518)
|
|
$
|
(3,494)
|
$
|
2,061
|
|
|
|
|
|
|
|
|
Closed-end funds
|
|
|
(47)
|
|
|
108
|
|
(111)
|
|
|
|
|
|
|
|
|
Private funds
|
|
|
357
|
|
|
286
|
|
(598)
|
|
|
|
|
|
|
|
Institutional
accounts
|
|
(391)
|
|
|
501
|
|
471
|
|
|
|
|
|
|
|
High-net-worth
accounts
|
|
469
|
|
|
104
|
|
156
|
|
|
|
|
|
|
|
Retail managed
accounts
|
|
10
|
|
|
(238)
|
|
(131)
|
|
|
|
|
|
|
|
Total net flows
|
|
$
|
(1,120)
|
|
$
|
(2,733)
|
$
|
1,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
5
|
|
|
Eaton Vance
Corp.
|
|
|
Table
4
|
|
|
Asset Flows
by Investment Mandate (in millions) (unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
January
31,
|
|
October
31,
|
|
January
31,
|
|
|
|
|
|
2012
|
|
2011
|
|
2011
|
|
|
|
Equity fund assets - beginning
of period
|
$
|
53,860
|
|
$
|
59,644
|
|
$
|
58,434
|
|
|
|
|
Sales/inflows
|
|
2,752
|
|
|
2,300
|
|
|
4,178
|
|
|
|
|
Redemptions/outflows
|
|
(4,216)
|
|
|
(3,911)
|
|
|
(4,142)
|
|
|
|
|
Exchanges
|
|
(19)
|
|
|
(34)
|
|
|
66
|
|
|
|
|
Market value change
|
|
1,392
|
|
|
(4,139)
|
|
|
2,813
|
|
|
|
|
Net change
|
|
(91)
|
|
|
(5,784)
|
|
|
2,915
|
|
|
|
Equity assets - end of
period
|
$
|
53,769
|
|
$
|
53,860
|
|
$
|
61,349
|
|
|
|
Fixed income fund assets -
beginning of period
|
27,472
|
|
|
27,551
|
|
|
29,412
|
|
|
|
|
Sales/inflows
|
|
1,662
|
|
|
1,605
|
|
|
1,678
|
|
|
|
|
Redemptions/outflows
|
|
(1,604)
|
|
|
(1,597)
|
|
|
(2,577)
|
|
|
|
|
Exchanges
|
|
51
|
|
|
98
|
|
|
(229)
|
|
|
|
|
Market value change
|
|
1,009
|
|
|
(185)
|
|
|
(1,691)
|
|
|
|
|
Net change
|
|
1,118
|
|
|
(79)
|
|
|
(2,819)
|
|
|
|
Fixed income assets - end of
period
|
$
|
28,590
|
|
$
|
27,472
|
|
$
|
26,593
|
|
|
|
Floating-rate income fund assets
- beginning of
|
|
|
|
|
|
|
|
|
|
|
|
period
|
|
20,156
|
|
|
21,494
|
|
|
16,128
|
|
|
|
|
Sales/inflows
|
|
1,401
|
|
|
1,359
|
|
|
1,967
|
|
|
|
|
Redemptions/outflows
|
|
(1,202)
|
|
|
(2,098)
|
|
|
(561)
|
|
|
|
|
Exchanges
|
|
(8)
|
|
|
(129)
|
|
|
118
|
|
|
|
|
Market value change
|
|
(168)
|
|
|
(470)
|
|
|
251
|
|
|
|
|
Net change
|
|
23
|
|
|
(1,338)
|
|
|
1,775
|
|
|
|
Floating-rate income assets -
end of period
|
$
|
20,179
|
|
$
|
20,156
|
|
$
|
17,903
|
|
|
|
Alternative fund assets -
beginning of period
|
10,217
|
|
|
11,287
|
|
|
10,004
|
|
|
|
|
Sales/inflows
|
|
1,090
|
|
|
930
|
|
|
1,812
|
|
|
|
|
Redemptions/outflows
|
|
(1,091)
|
|
|
(1,689)
|
|
|
(1,003)
|
|
|
|
|
Exchanges
|
|
(38)
|
|
|
(4)
|
|
|
(20)
|
|
|
|
|
Market value change
|
|
(52)
|
|
|
(307)
|
|
|
92
|
|
|
|
|
Net change
|
|
(91)
|
|
|
(1,070)
|
|
|
881
|
|
|
|
Alternative assets - end of
period
|
$
|
10,126
|
|
$
|
10,217
|
|
$
|
10,885
|
|
|
|
Long-term fund assets -
beginning of period
|
111,705
|
|
|
119,976
|
|
|
113,978
|
|
|
|
|
Sales/inflows
|
|
6,905
|
|
|
6,194
|
|
|
9,635
|
|
|
|
|
Redemptions/outflows
|
|
(8,113)
|
|
|
(9,295)
|
|
|
(8,283)
|
|
|
|
|
Exchanges
|
|
(14)
|
|
|
(69)
|
|
|
(65)
|
|
|
|
|
Market value change
|
|
2,181
|
|
|
(5,101)
|
|
|
1,465
|
|
|
|
|
Net change
|
|
959
|
|
|
(8,271)
|
|
|
2,752
|
|
|
|
Total long-term fund assets -
end of period
|
$
|
112,664
|
|
$
|
111,705
|
|
$
|
116,730
|
|
|
|
Separate accounts - beginning of
period
|
75,830
|
|
|
78,239
|
|
|
70,126
|
|
|
|
|
Institutional account
inflows
|
|
1,824
|
|
|
2,954
|
|
|
2,184
|
|
|
|
|
Institutional account
outflows
|
|
(2,215)
|
|
|
(2,453)
|
|
|
(1,713)
|
|
|
|
|
High-net-worth account
inflows
|
|
1,021
|
|
|
598
|
|
|
798
|
|
|
|
|
High-net-worth account
outflows
|
|
(552)
|
|
|
(494)
|
|
|
(642)
|
|
|
|
|
Retail managed account
inflows
|
|
1,746
|
|
|
1,318
|
|
|
1,584
|
|
|
|
|
Retail managed account
outflows
|
|
(1,736)
|
|
|
(1,556)
|
|
|
(1,715)
|
|
|
|
|
Exchanges and
reclassifications
|
|
-
|
|
|
-
|
|
|
3
|
|
|
|
|
Market value change
|
|
2,591
|
|
|
(2,776)
|
|
|
3,686
|
|
|
|
|
Net change
|
|
2,679
|
|
|
(2,409)
|
|
|
4,185
|
|
|
|
Separate accounts - end of
period
|
$
|
78,509
|
|
$
|
75,830
|
|
$
|
74,311
|
|
|
|
Cash management fund assets -
end of period
|
|
533
|
|
|
669
|
|
|
703
|
|
|
|
Total assets under management
-
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period
|
$
|
191,706
|
|
$
|
188,204
|
|
$
|
191,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Eaton Vance Corp.