Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today
announced net income1 of $194.2 million or $0.38 per diluted share
for the quarter ended March 31, 2023, as compared to $165.6 million
or $0.32 per diluted share for the previous quarter, and $349.6
million or $0.68 per diluted share for the quarter ended March 31,
2022. Operating income was $255.1 million for the quarter ended
March 31, 2023, as compared to $194.0 million for the previous
quarter and $463.0 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 $316.7 million and adjusted diluted earnings per share2
was $0.61 for the quarter ended March 31, 2023, as compared to
$262.4 million and $0.51 for the previous quarter, and $491.6
million and $0.96 for the quarter ended March 31, 2022. Adjusted
operating income2 was $440.2 million for the quarter ended March
31, 2023, as compared to $395.1 million for the previous quarter
and $576.6 million for the prior year.
“Despite a difficult market backdrop exacerbated by stress in
the regional banking sector, we continued to see positive momentum
across our business in terms of long-term flows, relative
investment performance, diversification by product and vehicle, and
financial results,” said Jenny Johnson, President and CEO of
Franklin Resources, Inc.
“Investment performance continued to improve across asset
classes. Market dislocations often result in investment
opportunities for skilled active investors. This quarter, three of
our four long-term asset classes – fixed income, multi-asset, and
alternatives – generated positive net flows. We also saw continued
progress in ETFs and Canvas®, our Custom Indexing solution
platform. Flow trends improved across all geographies, with our
Asia Pacific region reporting positive long-term net flows in the
quarter.
“Furthermore, this prolonged period of heightened market
volatility affirms the importance of the investments we have made
to diversify our business to better serve our clients – all in an
effort to help them achieve their long-term financial goals, no
matter where we are in the economic cycle.
“Our strong balance sheet and financial flexibility enable us to
further invest and accelerate our growth objectives and strategic
opportunities.”
Quarter Ended
% Change
Quarter Ended
% Change
31-Mar-23
31-Dec-22
Qtr. vs. Qtr.
31-Mar-22
Year vs. Year
Financial Results
(in millions, except per share data)
Operating revenues
$
1,927.2
$
1,967.1
(2
%)
$
2,081.0
(7
%)
Operating income
255.1
194.0
31
%
463.0
(45
%)
Operating margin
13.2
%
9.9
%
22.2
%
Net income1
$
194.2
$
165.6
17
%
$
349.6
(44
%)
Diluted earnings per share
0.38
0.32
19
%
0.68
(44
%)
As adjusted
(non-GAAP):2
Adjusted operating income
$
440.2
$
395.1
11
%
$
576.6
(24
%)
Adjusted operating margin
28.9
%
27.5
%
35.7
%
Adjusted net income
$
316.7
$
262.4
21
%
$
491.6
(36
%)
Adjusted diluted earnings per share
0.61
0.51
20
%
0.96
(36
%)
Assets Under Management
(in billions)
Ending
$
1,422.1
$
1,387.7
2
%
$
1,477.5
(4
%)
Average3
1,419.5
1,353.5
5
%
1,516.1
(6
%)
Long-term net flows
(3.7
)
(10.9
)
(11.7
)
Total assets under management (“AUM”) were $1,422.1 billion at
March 31, 2023, up $34.4 billion or 2% during the quarter due to
the positive impact of $42.4 billion of net market change,
distributions, and other, offset in part by $4.3 billion of cash
management net outflows and $3.7 billion of long-term net
outflows.
Cash and cash equivalents and investments4 were $5.8 billion
and, including the Company’s direct investments in consolidated
investment products, were $6.8 billion at March 31, 2023. Total
stockholders’ equity was $12.4 billion and the Company had 500.9
million shares of common stock outstanding at March 31, 2023. The
Company repurchased 0.1 million shares of its common stock for a
total cost of $3.6 million during the quarter ended March 31,
2023.
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, Global Advisory
Services and 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 10:00 a.m. Eastern Time to answer
questions. Access to the teleconference will be available via
investors.franklinresources.com or by dialing (+1) (888) 396-8049
in North America or (+1) (416) 764-8646 in other locations using
access code 14027917. A replay of the teleconference can also be
accessed by calling (+1) (877) 674-7070 in North America or (+1)
(416) 764-8692 in other locations using access code 027917# after
2:00 p.m. Eastern Time on May 1, 2023 through May 7, 2023, 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 (650) 312-4091 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
March 31,
%
Change
Six Months Ended
March 31,
%
Change
2023
2022
2023
2022
Operating Revenues
Investment management fees
$
1,573.3
$
1,649.2
(5
%)
$
3,205.1
$
3,409.7
(6
%)
Sales and distribution fees
301.4
370.2
(19
%)
593.3
768.4
(23
%)
Shareholder servicing fees
43.3
52.2
(17
%)
76.7
99.9
(23
%)
Other
9.2
9.4
(2
%)
19.2
27.0
(29
%)
Total operating revenues
1,927.2
2,081.0
(7
%)
3,894.3
4,305.0
(10
%)
Operating Expenses
Compensation and benefits
847.3
752.5
13
%
1,826.5
1,555.1
17
%
Sales, distribution and marketing
406.6
482.4
(16
%)
795.2
992.5
(20
%)
Information systems and technology
128.0
126.9
1
%
249.4
250.7
(1
%)
Occupancy
59.7
53.0
13
%
114.2
109.3
4
%
Amortization of intangible assets
86.0
60.4
42
%
169.2
118.7
43
%
General, administrative and other
144.5
142.8
1
%
290.7
258.0
13
%
Total operating expenses
1,672.1
1,618.0
3
%
3,445.2
3,284.3
5
%
Operating Income
255.1
463.0
(45
%)
449.1
1,020.7
(56
%)
Other Income (Expenses)
Investment and other income, net
125.6
27.7
353
%
216.7
84.7
156
%
Interest expense
(33.5
)
(22.9
)
46
%
(64.4
)
(42.2
)
53
%
Investment and other income of
consolidated investment products, net
87.2
3.0
NM
73.6
107.7
(32
%)
Expenses of consolidated investment
products
(3.4
)
(4.6
)
(26
%)
(14.9
)
(8.8
)
69
%
Other income, net
175.9
3.2
NM
211.0
141.4
49
%
Income before taxes
431.0
466.2
(8
%)
660.1
1,162.1
(43
%)
Taxes on income
92.9
107.1
(13
%)
153.2
258.2
(41
%)
Net income
338.1
359.1
(6
%)
506.9
903.9
(44
%)
Less: net income (loss) attributable
to
Redeemable noncontrolling interests
83.2
(57.2
)
NM
81.7
(49.7
)
NM
Nonredeemable noncontrolling interests
60.7
66.7
(9
%)
65.4
150.8
(57
%)
Net Income Attributable to Franklin
Resources, Inc.
$
194.2
$
349.6
(44
%)
$
359.8
$
802.8
(55
%)
Earnings per Share
Basic
$
0.38
$
0.68
(44
%)
$
0.70
$
1.57
(55
%)
Diluted
0.38
0.68
(44
%)
0.70
1.57
(55
%)
Dividends Declared per Share
$
0.30
$
0.29
3
%
$
0.60
$
0.58
3
%
Average Shares Outstanding
Basic
490.7
490.0
0
%
490.1
489.9
0
%
Diluted
491.4
490.5
0
%
490.8
490.5
0
%
Operating Margin
13.2
%
22.2
%
11.5
%
23.7
%
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF
INCOME
Unaudited
(in millions, except per share data)
Three Months Ended
%
Change
Three Months Ended
31-Mar-23
31-Dec-22
30-Sep-22
30-Jun-22
31-Mar-22
Operating Revenues
Investment management fees
$
1,573.3
$
1,631.8
`
(4
%)
$
1,571.0
$
1,636.1
$
1,649.2
Sales and distribution fees
301.4
291.9
3
%
311.0
335.6
370.2
Shareholder servicing fees
43.3
33.4
30
%
46.2
46.9
52.2
Other
9.2
10.0
(8
%)
10.8
12.7
9.4
Total operating revenues
1,927.2
1,967.1
(2
%)
1,939.0
2,031.3
2,081.0
Operating Expenses
Compensation and benefits
847.3
979.2
(13
%)
768.0
766.7
752.5
Sales, distribution and marketing
406.6
388.6
5
%
412.8
440.3
482.4
Information systems and technology
128.0
121.4
5
%
123.6
125.9
126.9
Occupancy
59.7
54.5
10
%
55.8
53.8
53.0
Amortization of intangible assets
86.0
83.2
3
%
81.5
81.8
60.4
General, administrative and other
144.5
146.2
(1
%)
148.8
158.1
142.8
Total operating expenses
1,672.1
1,773.1
(6
%)
1,590.5
1,626.6
1,618.0
Operating Income
255.1
194.0
31
%
348.5
404.7
463.0
Other Income (Expenses)
Investment and other income (losses),
net
125.6
91.1
38
%
(6.6
)
13.0
27.7
Interest expense
(33.5
)
(30.9
)
8
%
(27.1
)
(28.9
)
(22.9
)
Investment and other income (losses) of
consolidated investment products, net
87.2
(13.6
)
NM
(51.0
)
(74.4
)
3.0
Expenses of consolidated investment
products
(3.4
)
(11.5
)
(70
%)
(9.6
)
(1.3
)
(4.6
)
Other income (expenses), net
175.9
35.1
401
%
(94.3
)
(91.6
)
3.2
Income before taxes
431.0
229.1
88
%
254.2
313.1
466.2
Taxes on income
92.9
60.3
54
%
48.5
89.5
107.1
Net income
338.1
168.8
100
%
205.7
223.6
359.1
Less: net income (loss) attributable
to
Redeemable noncontrolling interests
83.2
(1.5
)
NM
3.3
(0.5
)
(57.2
)
Nonredeemable noncontrolling interests
60.7
4.7
NM
(30.3
)
(32.3
)
66.7
Net Income Attributable to Franklin
Resources, Inc.
$
194.2
$
165.6
17
%
$
232.7
$
256.4
$
349.6
Earnings per Share
Basic
$
0.38
$
0.32
19
%
$
0.46
$
0.50
$
0.68
Diluted
0.38
0.32
19
%
0.46
0.50
0.68
Dividends Declared per Share
$
0.30
$
0.30
0
%
$
0.29
$
0.29
$
0.29
Average Shares Outstanding
Basic
490.7
489.6
0
%
487.7
487.5
490.0
Diluted
491.4
490.2
0
%
488.2
487.9
490.5
Operating Margin
13.2
%
9.9
%
18.0
%
19.9
%
22.2
%
AUM AND FLOWS
(in billions)
Three Months Ended
March 31,
%
Change
Six Months Ended
March 31,
%
Change
2023
2022
2023
2022
Beginning AUM
$
1,387.7
$
1,578.1
(12
%)
$
1,297.4
$
1,530.1
(15
%)
Long-term inflows
61.8
76.1
(19
%)
132.3
183.1
(28
%)
Long-term outflows
(65.5
)
(87.8
)
(25
%)
(146.9
)
(170.7
)
(14
%)
Long-term net flows
(3.7
)
(11.7
)
(68
%)
(14.6
)
12.4
NM
Cash management net flows
(4.3
)
(7.1
)
(39
%)
13.2
(1.3
)
NM
Total net flows
(8.0
)
(18.8
)
(57
%)
(1.4
)
11.1
NM
Acquisitions
—
—
NM
34.9
7.7
353
%
Net market change, distributions and
other5
42.4
(81.8
)
NM
91.2
(71.4
)
NM
Ending AUM
$
1,422.1
$
1,477.5
(4
%)
$
1,422.1
$
1,477.5
(4
%)
Average AUM
$
1,419.5
$
1,516.1
(6
%)
$
1,386.4
$
1,529.0
(9
%)
AUM BY ASSET CLASS
(in billions)
31-Mar-23
31-Dec-22
% Change
30-Sep-22
30-Jun-22
31-Mar-22
Fixed Income
$
510.1
$
494.8
3
%
$
490.9
$
536.3
$
595.0
Equity
437.1
419.1
4
%
392.3
424.9
515.4
Alternative
258.2
257.4
0
%
225.1
224.8
157.9
Multi-Asset
146.1
141.4
3
%
131.5
136.2
151.9
Cash Management
70.6
75.0
(6
%)
57.6
57.6
57.3
Total AUM
$
1,422.1
$
1,387.7
2
%
$
1,297.4
$
1,379.8
$
1,477.5
Average AUM for the Three-Month
Period
$
1,419.5
$
1,353.5
5
%
$
1,373.6
$
1,439.8
$
1,516.1
AUM BY SALES REGION
(in billions)
31-Mar-23
31-Dec-22
% Change
30-Sep-22
30-Jun-22
31-Mar-22
United States
$
1,017.1
$
993.1
2
%
$
971.3
$
1,034.3
$
1,107.2
International
Europe, Middle East and Africa
159.9
156.4
2
%
126.6
133.6
143.4
Asia-Pacific
127.7
123.4
3
%
118.4
131.1
148.3
Americas, excl. U.S.
117.4
114.8
2
%
81.1
80.8
78.6
Total international
405.0
394.6
3
%
326.1
345.5
370.3
Total
$
1,422.1
$
1,387.7
2
%
$
1,297.4
$
1,379.8
$
1,477.5
AUM AND FLOWS BY ASSET CLASS
(in billions)
for the three months ended
March 31, 2023
Fixed
Income
Equity
Alternative
Multi-Asset
Cash
Management
Total
AUM at January 1, 2023
$
494.8
$
419.1
$
257.4
$
141.4
$
75.0
$
1,387.7
Long-term inflows
31.5
17.1
4.9
8.3
—
61.8
Long-term outflows
(29.7
)
(25.4
)
(3.6
)
(6.8
)
—
(65.5
)
Long-term net flows
1.8
(8.3
)
1.3
1.5
—
(3.7
)
Cash management net flows
—
—
—
—
(4.3
)
(4.3
)
Total net flows
1.8
(8.3
)
1.3
1.5
(4.3
)
(8.0
)
Net market change, distributions and
other5
13.5
26.3
(0.5
)
3.2
(0.1
)
42.4
AUM at March 31, 2023
$
510.1
$
437.1
$
258.2
$
146.1
$
70.6
$
1,422.1
(in billions)
for the three months ended
December 31, 2022
Fixed
Income
Equity
Alternative
Multi-Asset
Cash
Management
Total
AUM at October 1, 2022
$
490.9
$
392.3
$
225.1
$
131.5
$
57.6
$
1,297.4
Long-term inflows
28.5
27.2
6.5
8.3
—
70.5
Long-term outflows
(41.8
)
(26.9
)
(6.8
)
(5.9
)
—
(81.4
)
Long-term net flows
(13.3
)
0.3
(0.3
)
2.4
—
(10.9
)
Cash management net flows
—
—
—
—
17.5
17.5
Total net flows
(13.3
)
0.3
(0.3
)
2.4
17.5
6.6
Acquisition
—
—
34.9
—
—
34.9
Net market change, distributions and
other5
17.2
26.5
(2.3
)
7.5
(0.1
)
48.8
AUM at December 31, 2022
$
494.8
$
419.1
$
257.4
$
141.4
$
75.0
$
1,387.7
(in billions)
for the three months ended
March 31, 2022
Fixed
Income
Equity
Alternative
Multi-Asset
Cash
Management
Total
AUM at January 1, 2022
$
642.1
$
563.4
$
154.3
$
154.0
$
64.3
$
1,578.1
Long-term inflows
33.3
29.8
4.6
8.4
—
76.1
Long-term outflows
(41.2
)
(35.9
)
(4.6
)
(6.1
)
—
(87.8
)
Long-term net flows
(7.9
)
(6.1
)
—
2.3
—
(11.7
)
Cash management net flows
—
—
—
—
(7.1
)
(7.1
)
Total net flows
(7.9
)
(6.1
)
—
2.3
(7.1
)
(18.8
)
Net market change, distributions and
other5
(39.2
)
(41.9
)
3.6
(4.4
)
0.1
(81.8
)
AUM at March 31, 2022
$
595.0
$
515.4
$
157.9
$
151.9
$
57.3
$
1,477.5
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
Six Months Ended
31-Mar-23
31-Dec-22
31-Mar-22
31-Mar-23
31-Mar-22
Operating income
$
255.1
$
194.0
$
463.0
$
449.1
$
1,020.7
Add (subtract):
Elimination of operating revenues upon
consolidation of investment products*
9.1
5.1
17.2
14.2
25.5
Acquisition-related retention
23.2
63.6
34.2
86.8
74.2
Compensation and benefits expense from
gains (losses) on deferred compensation, net
10.6
5.6
(15.3
)
16.2
(11.1
)
Other acquisition-related expenses
14.0
22.6
12.7
36.6
27.4
Amortization of intangible assets
86.0
83.2
60.4
169.2
118.7
Special termination benefits
31.8
10.9
4.4
42.7
7.1
Compensation and benefits expense related
to minority interests in certain subsidiaries
10.4
10.1
—
20.5
—
Adjusted operating income
$
440.2
$
395.1
$
576.6
$
835.3
$
1,262.5
Total operating revenues
$
1,927.2
$
1,967.1
$
2,081.0
$
3,894.3
$
4,305.0
Add (subtract):
Acquisition-related pass through
performance fees
(8.0
)
(144.5
)
—
(152.5
)
(0.4
)
Sales and distribution fees
(301.4
)
(291.9
)
(370.2
)
(593.3
)
(768.4
)
Allocation of investment management fees
for sales, distribution and marketing expenses
(105.2
)
(96.7
)
(112.2
)
(201.9
)
(224.1
)
Elimination of operating revenues upon
consolidation of investment products*
9.1
5.1
17.2
14.2
25.5
Adjusted operating revenues
$
1,521.7
$
1,439.1
$
1,615.8
$
2,960.8
$
3,337.6
Operating margin
13.2
%
9.9
%
22.2
%
11.5
%
23.7
%
Adjusted operating margin
28.9
%
27.5
%
35.7
%
28.2
%
37.8
%
(in millions, except per share data)
Three Months Ended
Six Months Ended
31-Mar-23
31-Dec-22
31-Mar-22
31-Mar-23
31-Mar-22
Net income attributable to Franklin
Resources, Inc.
$
194.2
$
165.6
$
349.6
$
359.8
$
802.8
Add (subtract):
Net loss (income) of consolidated
investment products*
8.5
(3.6
)
0.1
4.9
10.1
Acquisition-related retention
23.2
63.6
34.2
86.8
74.2
Other acquisition-related expenses
20.1
28.7
12.7
48.8
27.8
Amortization of intangible assets
86.0
83.2
60.4
169.2
118.7
Special termination benefits
31.8
10.9
4.4
42.7
7.1
Net (gains) losses on deferred
compensation plan investments not offset by compensation and
benefits expense
(6.0
)
(7.6
)
2.8
(13.6
)
2.5
Unrealized investment (gains) losses
(1.9
)
(30.7
)
70.3
(32.6
)
72.1
Interest expense for amortization of debt
premium
(6.4
)
(6.3
)
(6.3
)
(12.7
)
(12.6
)
Net compensation and benefits expense
related to minority interests in certain subsidiaries not offset by
net income (loss) attributable to redeemable noncontrolling
interests
(0.3
)
0.4
—
0.1
—
Net income tax expense of adjustments
(32.5
)
(41.8
)
(36.6
)
(74.3
)
(57.5
)
Adjusted net income
$
316.7
$
262.4
$
491.6
$
579.1
$
1,045.2
Diluted earnings per share
$
0.38
$
0.32
$
0.68
$
0.70
$
1.57
Adjusted diluted earnings per
share
0.61
0.51
0.96
1.13
2.04
* The impact of CIPs is summarized as
follows:
(in millions)
Three Months Ended
Six Months Ended
31-Mar-23
31-Dec-22
30-Mar-22
31-Mar-23
31-Mar-22
Elimination of operating revenues upon
consolidation
$
(9.1
)
$
(5.1
)
$
(17.2
)
$
(14.2
)
$
(25.5
)
Other income (expenses), net
62.9
(2.8
)
9.9
60.1
82.4
Less: income (loss) attributable to
noncontrolling interests
62.3
(11.5
)
(7.2
)
50.8
67.0
Net income (loss)
$
(8.5
)
$
3.6
$
(0.1
)
$
(4.9
)
$
(10.1
)
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.
- Cash and cash equivalents and investments includes
approximately $300 million at March 31, 2023 attributable to
employee-owned and other third-party investments made through
partnerships which are offset in nonredeemable noncontrolling
interests.
- 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.
Franklin Resources, Inc. (NYSE: BEN) is a global investment
management organization with subsidiaries operating as Franklin
Templeton and serving clients in over 155 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 boutique specialization on a global scale,
bringing extensive capabilities in fixed income, equity,
alternatives and multi-asset solutions. With offices in more than
30 countries and approximately 1,300 investment professionals, the
California-based company has over 75 years of investment experience
and approximately $1.4 trillion in AUM as of March 31, 2023. 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 pandemic-related risks, 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, 2022 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/20230430005021/en/
Franklin Resources, Inc. Investor Relations: Selene Oh (650)
312-4091, selene.oh@franklintempleton.com Media Relations: Matt
Walsh (650) 312-2245, matthew.walsh@franklintempleton.com
investors.franklinresources.com
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