BALTIMORE, July 26, 2016
/PRNewswire/ -- T. Rowe Price Group, Inc. (NASDAQ-GS: TROW)
today reported its second quarter of 2016 results, including net
revenues of $1.0 billion, net income
of $195.3 million, and diluted
earnings per common share of $.76. As
previously disclosed, the second quarter of 2016 results include a
nonrecurring operating charge of $166.2
million related to the firm's decision to compensate certain
clients in regard to the Dell appraisal rights matter. This
nonrecurring charge reduced net income in the second quarter of
2016 by $100.7 million, or
$.39 in diluted earnings per common
share.
Financial Highlights
|
Three months
ended
|
|
Six months
ended
|
(in millions, except
per-share data)
|
6/30/2015
|
|
6/30/2016
|
|
%
change
|
|
6/30/2015
|
|
6/30/2016
|
|
%
change
|
Investment advisory
fees
|
$
|
942.2
|
|
|
$
|
920.6
|
|
|
(2)
|
%
|
|
$
|
1,838.7
|
|
|
$
|
1,791.4
|
|
|
(3)
|
%
|
Net
revenues
|
$
|
1,072.4
|
|
|
$
|
1,044.7
|
|
|
(3)
|
%
|
|
$
|
2,099.4
|
|
|
$
|
2,038.8
|
|
|
(3)
|
%
|
Operating
expenses
|
$
|
564.6
|
|
|
$
|
761.2
|
|
|
35
|
%
|
|
$
|
1,113.8
|
|
|
$
|
1,344.4
|
|
|
21
|
%
|
Net operating
income
|
$
|
507.8
|
|
|
$
|
283.5
|
|
|
(44)
|
%
|
|
$
|
985.6
|
|
|
$
|
694.4
|
|
|
(30)
|
%
|
Non-operating
income
|
$
|
33.0
|
|
|
$
|
41.5
|
|
|
26
|
%
|
|
$
|
59.8
|
|
|
$
|
126.6
|
|
|
112
|
%
|
Net income
attributable to T. Rowe Price Group
|
$
|
333.2
|
|
|
$
|
195.3
|
|
|
(41)
|
%
|
|
$
|
642.7
|
|
|
$
|
490.5
|
|
|
(24)
|
%
|
Diluted earnings per
share on common stock
|
$
|
1.24
|
|
|
$
|
.76
|
|
|
(39)
|
%
|
|
$
|
2.39
|
|
|
$
|
1.91
|
|
|
(20)
|
%
|
Average assets under
management (in billions)
|
$
|
783.6
|
|
|
$
|
772.7
|
|
|
(1)
|
%
|
|
$
|
771.4
|
|
|
$
|
750.4
|
|
|
(3)
|
%
|
Assets under management increased $12.0
billion in the second quarter of 2016 and $13.5 billion in the first half of 2016 to
$776.6 billion at June 30, 2016.
The components of the increase in assets under management for the
second quarter and the first half of 2016 are shown in the table
below.
|
Three months ended
6/30/2016
|
|
Six months ended
6/30/2016
|
(in
billions)
|
Sponsored U.S. mutual
funds
|
|
Other investment
portfolios
|
|
Total
|
|
Sponsored U.S. mutual
funds
|
|
Other investment
portfolios
|
|
Total
|
Assets under
management at beginning of period
|
$
|
486.7
|
|
|
$
|
277.9
|
|
|
$
|
764.6
|
|
|
$
|
487.1
|
|
|
$
|
276.0
|
|
|
$
|
763.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows before
client transfers
|
(1.6)
|
|
|
(1.1)
|
|
|
(2.7)
|
|
|
3.4
|
|
|
(1.0)
|
|
|
2.4
|
|
Client transfers from
mutual funds to other portfolios
|
(.5)
|
|
|
.5
|
|
|
—
|
|
|
(3.8)
|
|
|
3.8
|
|
|
—
|
|
Net cash flows after
client transfers
|
(2.1)
|
|
|
(.6)
|
|
|
(2.7)
|
|
|
(.4)
|
|
|
2.8
|
|
|
2.4
|
|
Net market
appreciation and income
|
9.8
|
|
|
4.9
|
|
|
14.7
|
|
|
7.7
|
|
|
3.4
|
|
|
11.1
|
|
Change during the
period
|
7.7
|
|
|
4.3
|
|
|
12.0
|
|
|
7.3
|
|
|
6.2
|
|
|
13.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under
management at June 30, 2016
|
$
|
494.4
|
|
|
$
|
282.2
|
|
|
$
|
776.6
|
|
|
$
|
494.4
|
|
|
$
|
282.2
|
|
|
$
|
776.6
|
|
The firm's net cash flows after client transfers in the second
quarter and first half of 2016 were in the following asset
classes:
(in
billions)
|
|
Three months
ended
6/30/2016
|
|
Six months ended
6/30/2016
|
Sponsored U.S. mutual
funds
|
|
|
|
|
Stock and
blended asset funds
|
|
$
|
(2.9)
|
|
|
$
|
(1.1)
|
|
Bond
funds
|
|
1.3
|
|
|
.9
|
|
Money market
funds
|
|
(.5)
|
|
|
(.2)
|
|
|
|
(2.1)
|
|
|
(.4)
|
|
Other investment
portfolios
|
|
|
|
|
Stock and
blended assets
|
|
(2.7)
|
|
|
(.4)
|
|
Fixed income,
money market, and stable value
|
|
2.1
|
|
|
3.2
|
|
|
|
(.6)
|
|
|
2.8
|
|
Total net cash flows
after client transfers
|
|
$
|
(2.7)
|
|
|
$
|
2.4
|
|
The firm's overall net cash flows for the second quarter of 2016
include $2.1 billion that originated
in its target-date retirement portfolios, which totaled
$177.9 billion in assets under
management at June 30, 2016. These portfolios also contribute
to the nearly $227 billion of assets
under management in the firm's asset allocation portfolios at
June 30, 2016.
T. Rowe Price remains debt-free with ample liquidity, including
cash and discretionary sponsored portfolio investment holdings of
$2.1 billion at June 30, 2016.
We also have redeemable seed capital investments in sponsored
investment portfolios of $1.0 billion
at June 30, 2016. Weighted-average common shares outstanding
have decreased since the end of 2015 as the firm expended
$244.0 million in the first half of
2016 to repurchase 3.6 million shares. The firm has also invested
$79.2 million during the first half
of 2016 in capitalized technology and facilities. The firm expects
capital expenditures for 2016 to be up to $180 million, of which about two-thirds is
planned for technology initiatives. The firm's expenditures have
been and are expected to be funded from operating resources.
Investment Performance
For the three-year period ended
June 30, 2016, 85% of the T. Rowe Price mutual funds across
their share classes outperformed their comparable Lipper averages
on a total return basis, 81% outperformed for the five-year period,
90% outperformed for the 10-year period, and 62% outperformed for
the one-year period. In addition, T. Rowe Price stock, bond, and
blended asset funds that ended the quarter with an overall rating
of four or five stars from Morningstar account for 91% of the
assets under management in the firm's rated funds. The firm's
target-date retirement funds continue to deliver excellent relative
long-term performance, with 100% of these funds outperforming their
comparable Lipper averages on a total return basis for the three-,
five-, and 10-year periods ended June 30, 2016. The
performance of the firm's institutional strategies against their
benchmarks for the one-, three-, five-, and 10-year periods ended
June 30, 2016, remains competitive, especially over longer
time periods.
Financial Results
Investment advisory revenues earned
in the second quarter of 2016 from the T. Rowe Price mutual funds
distributed in the U.S. were $669.1
million, a decrease of $13.9
million, or 2%, from the comparable 2015 quarter. Average
mutual fund assets under management in the second quarter of 2016
decreased 3% from the average in the second quarter of 2015 to
$492.1 billion.
Investment advisory revenues earned in the second quarter of
2016 from other investment portfolios were $251.5 million, a decrease of $7.7 million, or 3%, from the comparable 2015
quarter. Average assets under management in the second quarter of
2016 were $280.6 billion, an increase
of 1% from the average in the second quarter of 2015. Investors
domiciled outside the United
States accounted for nearly 5% of the firm's assets under
management at June 30, 2016.
Money market advisory fees and other fund expenses voluntarily
waived by the firm to maintain positive yields for investors in the
second quarter of 2016 were $3.3
million, compared with $12.5
million in the 2015 quarter. The firm expects that it will
continue to waive such fees for the remainder of 2016.
Administrative fee revenues decreased $3.1 million to $88.5
million in the second quarter of 2016. The decrease
primarily resulted from the shift to BNY Mellon of fund accounting
and portfolio recordkeeping operations that prior to August 2015 were provided by T. Rowe Price to its
sponsored U.S. mutual funds. Changes in administrative fee revenues
are generally offset by similar changes in related operating
expenses that are incurred to provide services to the funds and
their investors.
Operating expenses were $761.2
million in the second quarter of 2016, up $196.6 million from the comparable 2015 quarter.
The increase is primarily attributable to the nonrecurring charge
of $166.2 million recognized in the
second quarter of 2016 related to our decision to compensate
certain clients in regard to the Dell appraisal rights matter.
Compensation and related costs have increased $10.1 million from the second quarter of 2015,
due primarily to additional headcount, higher benefits, and
increases in stock-based compensation. The firm has increased its
average staff size by 2.6% from the second quarter of 2015, and
employed 6,213 associates at June 30, 2016. The increase in
compensation and related costs and the firm's average staff size
was muted by lower compensation costs resulting from shifting 210
associates in August 2015 for the
aforementioned transition of accounting and recordkeeping
operations. BNY Mellon's fees for such services are now reflected
in other operating expenses.
Advertising and promotion costs were $14.9 million in the second quarter of 2016,
compared with $14.2 million in the
comparable 2015 period. The firm currently expects advertising and
promotion costs for the full-year 2016 to be comparable to 2015
levels.
Other operating expenses in the second quarter of 2016 were up
$20.1 million from the comparable
2015 quarter. More than half of the increase is attributable to
costs now being paid to BNY Mellon for the performance of certain
administrative services as well as implementation services related
to the firm's transition to their technology platform. The
remainder of the increase in costs is due to higher business
demands and the firm's continued investment in its operating
capabilities.
Net non-operating income, which primarily includes realized
gains and losses on the sale of available-for-sale investments,
dividend and interest income, and gains and losses on the firm's
sponsored fund investments, was $41.5
million in the second quarter of 2016, an increase of
$8.5 million from the 2015 quarter.
The firm recognized higher market gains on our sponsored fund
investment portfolio in the second quarter of 2016 as the gains and
losses on a larger number of these investments are now being
recognized in the income statement compared to the statement of
comprehensive income in the 2015 quarter, as discussed below. These
higher gains were offset in part by $22.7
million in gains realized on the sale of certain sponsored
fund investments in the second quarter of 2015 that did not reoccur
in the 2016 quarter.
On January 1, 2016, the firm
implemented new accounting guidance that requires it to consolidate
certain sponsored investment portfolios in which it is deemed to
have a controlling interest. This results in the firm recognizing
in its consolidated statement of income each portfolio's investment
income and operating expenses, including the portion attributable
to unrelated third party investors. The portion attributable to
third party investors is removed from the firm's net income to
arrive at net income attributable to T. Rowe Price Group, which is
used in the calculation of earnings per share. Also, the amount
attributable to the firm's interest is now being fully recognized
in the income statement, whereas in prior periods it would have
been primarily recognized in the statement of comprehensive income.
For the second quarter and first six months of 2016, the impact (in
millions) of consolidating these sponsored investment portfolios on
the individual lines of the firm's income statement is as
follows:
|
Three months
ended
6/30/2016
|
|
Six months
ended
6/30/2016
|
Operating expenses
reflected in net operating income
|
$
|
(3.5)
|
|
|
$
|
(6.1)
|
|
Net investment income
reflected in non-operating income
|
26.4
|
|
|
50.2
|
|
Impact on income
before taxes
|
$
|
22.9
|
|
|
$
|
44.1
|
|
|
|
|
|
Attributable to the
firm's interest in the consolidated sponsored investment
portfolios
|
$
|
15.0
|
|
|
$
|
27.0
|
|
Attributable to
redeemable non-controlling interests (unrelated third party
investors)
|
7.9
|
|
|
17.1
|
|
|
$
|
22.9
|
|
|
$
|
44.1
|
|
The firm's effective tax rate for the second quarter of 2016 was
37.5%, as we currently estimate the effective tax rate for the full
year 2016 will be 38.3% compared with our estimate at the end of
the first quarter of 2016 of 38.7%. The decrease in the estimated
effective tax rate for 2016 is largely attributable to a higher
forecasted mix of pre-tax income in lower tax jurisdictions. The
firm's effective income tax rate reflects the relative contribution
of pre-tax income generated by our non-U.S. subsidiaries that are
subject to tax rates that are lower than our U.S. rates. Changes in
the relative contribution of pre-tax income from U.S. and non-U.S.
subsidiaries or changes in tax rates in the U.S. or relevant
non-U.S. jurisdictions may affect the firm's effective income tax
rate and overall net income in the future.
Management Commentary
William
J. Stromberg, the company's president and chief executive
officer, commented: "Despite a brief late June sell-off stemming
from the U.K. Brexit referendum, most of the second quarter was
favorable for global equity markets, and led to a rebound in our
total and average assets under management. We are pleased to have
resolved the Dell matter; putting our clients' interests first was
also in the best long term interests of our stockholders.
"Though we experienced modest net client outflows this quarter,
we are confident that our overall investment performance and the
investments we have made over the last several years to broaden our
global investment and distribution capabilities have us on the
right track. In fact, we plan to increase our pace of spending on
key strategic priorities to better address evolving client needs
and to grow and further diversify our business.
"To strengthen our direct relationships with individual
investors and plan sponsors in the U.S., we plan to accelerate
development of digitally-led client experiences and advisory
services, and make further investments in our retirement plan
recordkeeping platform and sales teams. Additional areas for
greater distribution investment include deepening our partnerships
with financial institutions and financial advisors, bolstering our
defined contribution, investment-only (DCIO) sales and support
teams, and extending our international distribution.
"We will continue building out our investment management
capabilities and products, with plans to launch new global
multi-asset offerings, as well as new vehicles for many of our
existing strategies. Likewise, we will accelerate investment in
technology and services to support these new capabilities, to
enhance mobile and digital client engagement, and to improve
operational efficiencies.
"We expect spending to support these initiatives to cause the
rate of operating expense growth in 2017 to exceed the rate of
expense growth in 2016. We are confident that these strategic
initiatives will enhance our ability to serve our clients' needs
while strengthening our long term competitive position.
"Although third quarter markets are off to a strong start, we
expect volatility to persist globally for some time, especially
with political and economic uncertainties stemming from the Brexit
vote and U.S. elections likely to linger. We remain confident,
however, in our ability to navigate through turbulence and to
continue performing well for our clients and our stockholders over
the long term."
Other Matters
The financial results presented in this
release are unaudited. The firm expects that it will file its Form
10-Q Quarterly Report for the second quarter of 2016 with the U.S.
Securities and Exchange Commission later today. The Form 10-Q will
include additional information on the firm's unaudited financial
results at June 30, 2016.
Certain statements in this earnings release may represent
"forward-looking information," including information relating to
anticipated changes in revenues, net income and earnings per common
share, anticipated changes in the amount and composition of assets
under management, anticipated expense levels, estimated tax rates,
and expectations regarding financial results, future transactions,
new products and services, investments, capital expenditures,
dividends, stock repurchases, and other market conditions. For a
discussion concerning risks and other factors that could affect
future results, see the firm's 2015 Form 10-K.
Founded in 1937, Baltimore-based T. Rowe Price
(troweprice.com) is a global investment management
organization that provides a broad array of mutual funds,
subadvisory services, and separate account management for
individual and institutional investors, retirement plans, and
financial intermediaries. The organization also offers a variety of
sophisticated investment planning and guidance tools. T. Rowe
Price's disciplined, risk-aware investment approach focuses on
diversification, style consistency, and fundamental research.
Unaudited
Condensed Consolidated Statements of Income
|
|
|
|
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
Revenues
|
|
6/30/2015
|
|
6/30/2016
|
|
6/30/2015
|
|
6/30/2016
|
|
Investment advisory
fees
|
|
$
|
942.2
|
|
|
$
|
920.6
|
|
|
$
|
1,838.7
|
|
|
$
|
1,791.4
|
|
|
Administrative
fees
|
|
91.6
|
|
|
88.5
|
|
|
184.6
|
|
|
177.9
|
|
|
Distribution and
servicing fees
|
|
38.6
|
|
|
35.6
|
|
|
76.1
|
|
|
69.5
|
|
|
Net
revenues
|
|
1,072.4
|
|
|
1,044.7
|
|
|
2,099.4
|
|
|
2,038.8
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Compensation and
related costs
|
|
360.9
|
|
|
371.0
|
|
|
707.4
|
|
|
726.2
|
|
|
Advertising and
promotion
|
|
14.2
|
|
|
14.9
|
|
|
39.5
|
|
|
38.0
|
|
|
Distribution and
servicing costs
|
|
38.6
|
|
|
35.6
|
|
|
76.1
|
|
|
69.5
|
|
|
Depreciation and
amortization of property and equipment
|
|
32.2
|
|
|
33.8
|
|
|
61.3
|
|
|
66.0
|
|
|
Occupancy and
facility costs
|
|
39.9
|
|
|
40.8
|
|
|
78.2
|
|
|
82.2
|
|
|
Other operating
expenses
|
|
78.8
|
|
|
98.9
|
|
|
151.3
|
|
|
196.3
|
|
|
Nonrecurring charge
related to Dell appraisal rights matter
|
|
—
|
|
|
166.2
|
|
|
—
|
|
|
166.2
|
|
|
Total operating
expenses
|
|
564.6
|
|
|
761.2
|
|
|
1,113.8
|
|
|
1,344.4
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
507.8
|
|
|
283.5
|
|
|
985.6
|
|
|
694.4
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income
|
|
|
|
|
|
|
|
|
Net investment income
on investments
|
|
34.1
|
|
|
15.3
|
|
|
60.0
|
|
|
76.6
|
|
Net investment income
(loss) on consolidated sponsored investment portfolios
|
|
(1.3)
|
|
|
26.4
|
|
|
0.7
|
|
|
50.2
|
|
Other income
(losses)
|
|
0.2
|
|
|
(0.2)
|
|
|
(0.9)
|
|
|
(0.2)
|
|
Total
non-operating income
|
|
33.0
|
|
|
41.5
|
|
|
59.8
|
|
|
126.6
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
540.8
|
|
|
325.0
|
|
|
1,045.4
|
|
|
821.0
|
|
Provision for income
taxes
|
|
207.6
|
|
|
121.8
|
|
|
402.7
|
|
|
313.4
|
|
Net income
|
|
333.2
|
|
|
203.2
|
|
|
642.7
|
|
|
507.6
|
|
|
Less: net income
attributable to redeemable non-controlling interests
|
|
—
|
|
|
7.9
|
|
|
—
|
|
|
17.1
|
|
Net income
attributable to T. Rowe Price Group, Inc.
|
|
333.2
|
|
|
195.3
|
|
|
642.7
|
|
|
490.5
|
|
|
Less: net income
allocated to outstanding restricted stock and stock unit
holders
|
|
4.1
|
|
|
3.8
|
|
|
9.8
|
|
|
9.4
|
|
Net income
allocated to T. Rowe Price Group, Inc. common
stockholders
|
|
$
|
329.1
|
|
|
$
|
191.5
|
|
|
$
|
632.9
|
|
|
$
|
481.1
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
on common stock of T. Rowe Price Group, Inc.
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.28
|
|
|
$
|
.78
|
|
|
$
|
2.45
|
|
|
$
|
1.95
|
|
|
Diluted
|
|
$
|
1.24
|
|
|
$
|
.76
|
|
|
$
|
2.39
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares
|
|
|
|
|
|
|
|
|
|
Outstanding
|
|
257.7
|
|
|
246.9
|
|
|
258.2
|
|
|
246.8
|
|
|
Outstanding assuming
dilution
|
|
264.6
|
|
|
252.1
|
|
|
265.1
|
|
|
251.8
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share, including a $2.00 per share special cash dividend
declared in the first quarter of 2015
|
|
$
|
.52
|
|
|
$
|
.54
|
|
|
$
|
3.04
|
|
|
$
|
1.08
|
|
|
Impact of
consolidated sponsored investment
portfolios
|
Three months
ended
|
|
Six months
ended
|
6/30/2015
|
|
6/30/2016
|
|
6/30/2015
|
|
6/30/2016
|
|
|
|
|
|
|
|
|
Operating expenses
reflected in net operating income
|
$
|
—
|
|
|
$
|
(3.5)
|
|
|
$
|
—
|
|
|
$
|
(6.1)
|
|
Net investment income
reflected in non-operating income
|
—
|
|
|
26.4
|
|
|
—
|
|
|
50.2
|
|
Impact on income
before taxes
|
$
|
—
|
|
|
$
|
22.9
|
|
|
$
|
—
|
|
|
$
|
44.1
|
|
|
|
|
|
|
|
|
|
Attributable to the
firm's interest
|
$
|
—
|
|
|
$
|
15.0
|
|
|
$
|
—
|
|
|
$
|
27.0
|
|
Attributable to
redeemable non-controlling interests
|
—
|
|
|
7.9
|
|
|
—
|
|
|
17.1
|
|
|
$
|
—
|
|
|
$
|
22.9
|
|
|
$
|
—
|
|
|
$
|
44.1
|
|
|
Investment
Advisory Revenues (in millions)
|
Three months
ended
|
|
Six months
ended
|
|
6/30/2015
|
|
6/30/2016
|
|
6/30/2015
|
|
6/30/2016
|
Sponsored U.S. mutual
funds
|
|
|
|
|
|
|
|
Stock and blended
asset
|
$
|
575.5
|
|
|
$
|
551.1
|
|
|
$
|
1,118.7
|
|
|
$
|
1,070.6
|
|
Bond and money
market
|
107.5
|
|
|
118.0
|
|
|
210.2
|
|
|
230.6
|
|
|
683.0
|
|
|
669.1
|
|
|
1,328.9
|
|
|
1,301.2
|
|
Other investment
portfolios
|
|
|
|
|
|
|
|
Stock and blended
asset
|
220.0
|
|
|
210.3
|
|
|
433.0
|
|
|
408.2
|
|
Bond, money market,
and stable value
|
39.2
|
|
|
41.2
|
|
|
76.8
|
|
|
82.0
|
|
|
259.2
|
|
|
251.5
|
|
|
509.8
|
|
|
490.2
|
|
Total
|
$
|
942.2
|
|
|
$
|
920.6
|
|
|
$
|
1,838.7
|
|
|
$
|
1,791.4
|
|
|
Average
during
|
|
|
|
|
Assets Under
Management (in
billions)
|
Three months
ended
|
|
Six months
ended
|
|
As of
|
|
6/30/2015
|
|
6/30/2016
|
|
6/30/2015
|
|
6/30/2016
|
|
12/31/2015
|
|
6/30/2016
|
Sponsored U.S. mutual
funds
|
|
|
|
|
|
|
|
|
|
|
|
Stock and blended
asset
|
$
|
398.9
|
|
|
$
|
383.6
|
|
|
$
|
390.2
|
|
|
$
|
372.4
|
|
|
$
|
383.0
|
|
|
$
|
384.8
|
|
Bond and money
market
|
107.3
|
|
|
108.5
|
|
|
106.5
|
|
|
106.4
|
|
|
104.1
|
|
|
109.6
|
|
|
506.2
|
|
|
492.1
|
|
|
496.7
|
|
|
478.8
|
|
|
487.1
|
|
|
494.4
|
|
Other investment
portfolios
|
|
|
|
|
|
|
|
|
|
|
|
Stock and blended
asset
|
214.2
|
|
|
209.9
|
|
|
211.9
|
|
|
203.2
|
|
|
209.8
|
|
|
209.8
|
|
Bond, money market,
and stable value
|
63.2
|
|
|
70.7
|
|
|
62.8
|
|
|
68.4
|
|
|
66.2
|
|
|
72.4
|
|
|
277.4
|
|
|
280.6
|
|
|
274.7
|
|
|
271.6
|
|
|
276.0
|
|
|
282.2
|
|
Total
|
$
|
783.6
|
|
|
$
|
772.7
|
|
|
$
|
771.4
|
|
|
$
|
750.4
|
|
|
$
|
763.1
|
|
|
$
|
776.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock and blended
asset portfolios
|
|
|
|
|
|
|
|
|
$
|
592.8
|
|
|
$
|
594.6
|
|
Fixed income
portfolios
|
|
|
|
|
|
|
|
|
170.3
|
|
|
182.0
|
|
Total
|
|
|
|
|
|
|
|
|
$
|
763.1
|
|
|
$
|
776.6
|
|
Condensed
Consolidated Cash Flows Information (in millions)
|
|
Six months
ended
|
|
|
6/30/2015
|
|
6/30/2016
|
Cash provided by
(used in) operating activities, including $76 of stock-based
compensation expense and ($673) in net cash outflows related to the
consolidated sponsored investment portfolios in 2016.
|
|
$
|
886.7
|
|
|
$
|
(31.5)
|
|
Cash provided by
(used in) investing activities, including ($79) for additions to
property and equipment and $173 in net proceeds from investments in
2016.
|
|
(33.9)
|
|
|
162.0
|
|
Cash provided by
(used in) financing activities, including common stock repurchases
of ($244), dividends paid of ($272), and $540 related to the
consolidated sponsored investment portfolios in 2016.
|
|
(1,089.7)
|
|
|
101.1
|
|
Effect of exchange
rate changes on cash and cash equivalents of consolidated sponsored
investment portfolios
|
|
—
|
|
|
(21.3)
|
|
Net change in cash
during the period
|
|
$
|
(236.9)
|
|
|
$
|
210.3
|
|
Condensed
Consolidated Balance Sheet Information (in millions)
|
|
As of
|
|
|
12/31/2015
|
|
6/30/2016
|
Cash and cash
equivalents
|
|
$
|
1,172.3
|
|
|
$
|
1,275.2
|
|
Accounts receivable
and accrued revenue
|
|
446.0
|
|
|
427.4
|
|
Investments
|
|
1,961.2
|
|
|
1,122.2
|
|
Assets of
consolidated sponsored investment portfolios
|
|
57.7
|
|
|
2,143.2
|
|
Property and
equipment, net
|
|
607.1
|
|
|
620.8
|
|
Goodwill
|
|
665.7
|
|
|
665.7
|
|
Other
assets
|
196.9
|
|
|
327.2
|
|
Total
assets
|
|
5,106.9
|
|
|
6,581.7
|
|
Total liabilities,
includes $77.9 from consolidated sponsored portfolios at June 30,
2016
|
|
344.9
|
|
|
610.4
|
|
Redeemable
non-controlling interests
|
|
—
|
|
|
1,110.4
|
|
Stockholders' equity,
248.5 common shares outstanding at June 30, 2016, includes net
unrealized holding gains of $56.1 at June 30, 2016
|
|
$
|
4,762.0
|
|
|
$
|
4,860.9
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/t-rowe-price-group-reports-second-quarter-2016-results-300303930.html
SOURCE T. Rowe Price Group, Inc.