AMVESCAP PLC Reports Results for Three Months Ended March 31, 2004.Business Editors LONDON--(BUSINESS WIRE)--April 27, 2004 AMVESCAP (NYSE NYSE See: New York Stock Exchange :AVZ)(LSE LSE - Language Sensitive Editor :AVZ) reported that profit before tax and goodwill amortization for the three months ended March 31, 2004 amounted to GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 71.9 million ($132.3 million) compared to GBP 48.5 million ($76.6 million) for the first quarter of 2003. Revenues totaled GBP 288.3 million ($530.5 million) for the 2004 quarter, compared to GBP 270.8 million ($427.9 million) in 2003. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before goodwill amortization amounted to 5.8p for the 2004 period, a 38% increase from 4.2p for 2003's first quarter.
Results for Three Months Ended March 31,
2004 2003 2004(b) 2003(b)
---------- ---------- -------- --------
Revenues GBP 288.3m GBP 270.8m $530.5m $427.9m
Profit before tax and goodwill
amortization GBP 71.9m GBP 48.5m $132.3m $76.6m
Earnings per share before
goodwill amortization:
--basic 5.8p 4.2p $0.21(a) $0.13(a)
--diluted 5.8p 4.2p $0.21(a) $0.13(a)
------------------------------ ---------------------------------------
(a) Per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. equivalent to 2 ordinary shares. (b) For the convenience of the reader, pounds sterling for the three months ended March 31, 2004 have been translated to US dollars using $1.84 per GBP 1.00 (2003: $1.58 per GBP 1.00). "The significant rise in profitability from the first quarter of 2003 reflects both stronger global equity markets and a stronger AMVESCAP," said Mr. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by W. Brady Bra·dy , James Buchanan Known as "Diamond Jim." 1856-1917. American financier and philanthropist who gained his nickname because of his attraction to diamonds and his extravagant lifestyle. Noun 1. , Executive Chairman. "Operational efficiency within the company has been substantially enhanced. We have excellent investment performance in key markets around the world and improving performance in our U.S. retail franchise. Given a positive market environment, AMVESCAP should be able to build business momentum throughout 2004." Funds under management totaled $381.4 billion at March 31, 2004, compared to $370.6 billion at December December: see month. 31, 2003. Average funds under management amounted to $376.3 billion for the first quarter of 2004 compared to $324.0 billion for the first quarter of 2003 and $356.7 billion for the fourth quarter of 2003. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 55% of the total funds under management were invested in equity securities, and 45% were invested in fixed income securities at both March 31, 2004 and December 31, 2003. The equity securities were invested in the following disciplines at March 31, 2004: 32% in growth, 42% in core, and 26% in value styles. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
AMVESCAP is a leading independent global investment manager, dedicated to helping people worldwide build their financial security. Operating under the AIM, INVESCO INVESCO, (NYSE: IVZ) is an investment management company based in London, England, UK. It is quoted on the London Stock Exchange and is a member of the FTSE 100 Index. It has branches in 19 countries, but more than half of its business is in the United States. and Atlantic Trust brands, AMVESCAP strives to deliver outstanding investment performance and service through a comprehensive array of retail and institutional products for clients around the world. The Company is listed on the London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Paris and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. with the symbol "AVZ." Members of the investment community and general public are invited to listen to the conference call today, Tuesday Tuesday: see week. , April 27, 2004 at 2:30 p.m. BST (convention) BST - British Summer Time. The name for daylight-saving time in the UK GMT time zone. (9:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ), by dialing one of the following numbers: 610-769-9391 or 1-888-201-4990 for US callers. An audio replay of the conference call will be available until Tuesday, May 4, 2004 at 10:00 p.m. BST by calling 402-280-9965 or 1-800-860-4694 for US callers. The presentation slides that will be reviewed during the conference call are expected to be available on the morning of April 27, 2004 on AMVESCAP's Web site at www.amvescap.com. # # # This release may include statements that constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " under the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , acquisition activities and the effect of completed acquisitions, debt levels and the ability to obtain additional financing or make payments on our debt, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, when used in this report, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," and future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verbs such as "will," "may," "could," "should," and "would," or any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, you should carefully consider the areas of risk described in our most recent Annual Report on Form 20-F, as filed with the United States Securities and Exchange Commission ("SEC"). You may obtain these reports from the SEC's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. .
AMVESCAP PLC
Group Profit and Loss Account
(in thousands)
Three Months Ended March
31,
------------------------
2004 2003
------------ -----------
Revenues GBP 288,270 GBP 270,798
Expenses
Operating (212,946) (211,581)
Goodwill amortization (37,583) (37,346)
------------ -----------
Operating profit 37,741 21,871
Investment income 6,403 1,488
Interest expense (9,789) (12,210)
------------ -----------
Profit before taxation 34,355 11,149
Taxation (25,178) (14,839)
Minority interests (84) --
------------ -----------
Retained profit for the period GBP 9,093 GBP (3,690)
------------ -----------
Earnings per share before
goodwill amortization:
---basic 5.8p 4.2p
---diluted 5.8p 4.2p
------------ -----------
Earnings per share:
---basic 1.1p (0.5)p
---diluted 1.1p (0.5)p
------------ -----------
Average shares outstanding:
---basic 802,353 804,577
---diluted 811,458 808,999
------------ -----------
AMVESCAP PLC
Group Balance Sheet
(in thousands)
March 31, 2004 Dec 31, 2003
--------------- -------------
Fixed assets
Goodwill GBP 2,422,613 GBP 2,411,803
Investments 228,249 230,567
Tangible assets 167,169 170,598
--------------- -------------
2,818,031 2,812,968
Currents assets
Debtors 961,427 903,955
Investments 75,333 74,652
Cash 251,256 318,713
--------------- -------------
1,288,016 1,297,320
Current liabilities
Current maturities of long-term debt -- --
Creditors (1,049,869) (1,070,393)
--------------- -------------
(1,049,869) (1,070,393)
Net current assets 238,147 226,927
--------------- -------------
Total assets less current liabilities 3,056,178 3,039,895
Long-term debt (710,829) (730,041)
Provisions for liabilities and charges (75,005) (77,601)
--------------- -------------
Net assets GBP 2,270,344 GBP 2,232,253
--------------- -------------
Capital and reserves
Called up share capital GBP 202,335 GBP 200,264
Share premium account 693,009 675,755
Exchangeable shares 315,256 330,629
Profit and loss account 507,483 498,390
Other reserves 552,261 527,215
--------------- -------------
Shareholders' funds, equity interests GBP 2,270,344 GBP 2,232,253
--------------- -------------
AMVESCAP PLC
Group Cash Flow Statement
(in thousands)
Three Months Ended
March 31,
-----------------------
2004 2003
------------ ----------
Operating profit GBP 37,741 GBP 21,871
Decrease in exceptional item provisions and
accruals (25,096) (14,458)
Goodwill amortization and depreciation 48,971 51,130
Change in debtors, creditors and other (75,326) (28,964)
------------ ----------
Net cash (outflow)/inflow from operating
activities (13,710) 29,579
------------ ----------
Interest paid, net of investment income (9,498) (8,636)
Taxation (8,152) (42,589)
Capital expenditures, net of sales (7,889) (5,569)
Net disposal of fixed asset investments 1,173 1,012
Acquisitions / Disposals (28,195) (10,301)
Net incurrence of debt 4,911 67,857
Change in bank overdraft 31 (5,224)
Foreign exchange on cash at bank and in hand (6,128) 10,528
------------ ----------
(Decrease)/increase in cash at bank and in GBP (67,457) GBP 36,657
hand
------------ ----------
AMVESCAP PLC
Segmental Information
(in thousands)
Three Months Ended March 31, 2004
Oper.
Revenues Expenses Profit(a)
------------ ------------ -----------
AIM
US GBP 107,561 GBP (67,503) GBP 40,058
Canada 41,817 (20,325) 21,492
------------ ------------ -----------
149,378 (87,828) 61,550
------------ ------------ -----------
INVESCO
US 52,766 (36,135) 16,631
UK 46,107 (40,790) 5,317
Europe/Asia 19,786 (19,637) 149
------------ ------------ -----------
118,659 (96,562) 22,097
------------ ------------ -----------
Private Wealth/Retirement 20,233 (19,649) 584
Corporate -- (8,907) (8,907)
------------ ------------ -----------
GBP
GBP 288,270 (212,946) GBP 75,324
------------ ------------ -----------
Three Months Ended March 31, 2003(b)
Oper.
Revenues Expenses Profit(a)
------------ ------------ ----------
AIM
US GBP 119,107 GBP (77,034) GBP 42,073
Canada 33,417 (17,752) 15,665
------------ ------------ ----------
152,524 (94,786) 57,738
------------ ------------ ----------
INVESCO
US 39,669 (31,968) 7,701
UK 40,742 (39,513) 1,229
Europe/Asia 17,541 (18,986) (1,445)
------------ ------------ ----------
97,952 (90,467) 7,485
------------ ------------ ----------
Private Wealth/Retirement 20,322 (21,005) (683)
Corporate -- (5,323) (5,323)
------------ ------------ ----------
GBP
GBP 270,798 (211,581) GBP 59,217
------------ ------------ ----------
(a)before goodwill amortization (b)INVESCO Funds Group has been reclassified to AIM-US Notes 1. The taxation charge is estimated based on the total expected tax charge for the year. A significant proportion of the charge is expected to arise from US operations. 2. Basic earnings per share is based on the weighted average number of ordinary and exchangeable shares outstanding during the respective periods. Diluted earnings per share takes into account the effect of dilutive potential ordinary and exchangeable shares outstanding during the period. The calculation of earnings per share is as follows:
2004
--------------------------
Profit Number
after of Per
taxation shares share
GBP '000 '000 amount
--------- -------- -------
Basic earnings per share 9,093 802,353 1.1p
Long-term incentive plan -- 6,169
Dilutive effect of options -- 2,936
--------- -------- -------
Diluted earnings per share 9,093 811,458 1.1p
--------- -------- -------
2003
--------------------------
Profit Number
after of Per
taxation shares share
GBP '000 '000 amount
--------- -------- -------
Basic earnings per share (3,690) 804,577 (0.5)p
Long-term incentive plan -- 2,633
Dilutive effect of options -- 1,789
--------- -------- -------
Diluted earnings per share (3,690) 808,999 (0.5)p
--------- -------- -------
Profit before goodwill amortization is a more appropriate basis for the calculation of earnings per share since this represents a more consistent measure of the year-by-year performance of the business. The calculation presented on that basis is as follows.
2004
-----------------------------
Profit before
goodwill Number
amortization of Per
shares share
GBP '000 '000 amount
------------- -------- ------
Basic earnings per share 46,676 802,353 5.8p
Long-term incentive plan -- 6,169
Dilutive effect of options -- 2,936
------------- -------- ------
Diluted earnings per share 46,676 811,458 5.8p
------------- -------- ------
2003
-----------------------------
Profit before
goodwill Number
amortization of Per
shares share
GBP '000 '000 amount
------------- -------- ------
Basic earnings per share 33,656 804,577 4.2p
Long-term incentive plan -- 2,633
Dilutive effect of options -- 1,789
------------- -------- ------
Diluted earnings per share 33,656 808,999 4.2p
------------- -------- ------
3. On March 1, 2004 we completed the acquisition of Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. Roe Investment Counsel LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control for consideration totaling GBP 87.3 million which includes earn-out Earn-out Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement. provisions of GBP 23.0 million. Goodwill and management contract intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of GBP 84.3 million have been recorded on this acquisition, net cash paid was GBP 36.2 million and shares were issued to the value of GBP 25.3 million. On March 31, 2004 we completed the disposal of the UK and Jersey businesses of Atlantic Wealth Management. A gain of GBP 4.7 million has been recorded within investment income.
AMVESCAP PLC
Funds Under Management
(in billions)
AIM
-----------------
Total US Canada
--------- -------- --------
Dec 31, 2003 $370.6 $149.4 $28.7
Market gains/(loss) 7.3 1.9 1.1
Net new /(lost) business (1.5) (1.8) 0.5
Change in money
market funds (2.0) (1.9) --
Acquisitions/(disposals) 6.1 -- --
Transfers -- -- --
Foreign currency 0.9 -- 0.2
--------- -------- --------
March 31, 2004 $381.4 $147.6 $30.5
--------- -------- --------
March 31, 2004 (a) GBP 207.3 GBP 80.2 GBP 16.6
--------- -------- --------
INVESCO PWM/
----------------------------------
US UK Europe/Asia Retirement
----------- ---------- ----------- ----------
Dec 31, 2003 $120.2 $39.0 $23.8 $9.5
Market gains/(loss) 2.1 1.3 0.9 --
Net new /(lost) business (1.0) 0.3 0.8 (0.3)
Change in money
market funds -- -- (0.1) --
Acquisitions/(disposals) -- -- -- 6.1
Transfers -- 0.5 -- (0.5)
Foreign currency -- 0.8 (0.1) --
----------- ---------- ----------- ----------
March 31, 2004 $121.3 $41.9 $25.3 $14.8
----------- ---------- ----------- ----------
March 31, 2004 (a) GBP 65.9 GBP 22.8 GBP 13.8 GBP 8.0
----------- ---------- ----------- ----------
(a) Translated at $1.84 per GBP 1.00. Note: AMVESCAP Retirement has $28.3 billion in assets under administration as of March 31, 2004, compared to $27.7 billion as of December 31, 2003. |
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