AMVESCAP PLC Reports Results for Three Months Ended September 30, 2001.
Business Editors
LONDON--(BUSINESS WIRE)--Oct. 25, 2001--AMVESCAP (NYSE:AVZ)
(TSE:AVZ.)(LSE:AVZ.) reported that profit before tax, goodwill
amortization and exceptional items for the three months ended
September 30, 2001 amounted to (pnd)110.1 million ($161.8 million)
compared to (pnd)159.4 million ($235.9 million) for third quarter of
2000, a decrease of 31%.
Diluted earnings per share before goodwill amortization and
exceptional items amounted to 9.1p for the 2001 period (2000: 15.0p),
a decrease of 39%. Revenues decreased to (pnd)387.6 million ($569.8
million) from (pnd)446.0 million ($660.1 million) in 2000.
-0-
Results for three months ended
Sept 30, Sept 30, Sept 30, Sept 30,
2000+ 2000+ 2001 2000
---------- ----------- ---------- ---------
Revenues $569.8m $660.1m (pnd)387.6m (pnd)446.0m
Profit before
tax, goodwill
amortization
and exceptional
items $161.8m $235.9m (pnd)110.1m (pnd)159.4m
Earnings per
share before
goodwill
amortization
and exceptional
items:
--basic $ .27* $ .47* 9.3p 16.0p
--diluted $ .27* $ .44* 9.1p 15.0p
Earnings per
share:
--basic $ .09* $ .33* 3.0p 11.2p
--diluted $ .09* $ .32* 2.9p 10.7p
* Per American Depositary Share, equivalent to 2 ordinary shares.
+ For the convenience of the reader, pounds sterling for the
period ended September 30, 2001 have been translated to US dollars
using $1.47 per (pnd)1.00 (2000: $1.48 per (pnd)1.00).
"The past quarter has presented significant challenges to the
global economy, our industry and to our company," said Mr. Charles W.
Brady, Executive Chairman. "Our results in the third quarter, while
disappointing, reflect the impact of the tragic events of September
11th and the extremely volatile market conditions existing throughout
the period."
"While the events of September 11th have taken an enormous toll,
the recent actions by the Federal Reserve and European central banks
should provide a basis for an economic recovery in 2002," noted Mr.
Brady. "We are encouraged by the recent improvements in the global
market levels. Our funds under management as of October 19, 2001
reached approximately $385 billion and October retail net sales have
been positive. We remain committed to delivering excellent client
service and strong investment performance to produce value to our
shareholders and we are optimistic about the long-term outlook for our
business."
Profit before tax, goodwill amortization and exceptional items
decreased by (pnd)34.2 million (8%) during the nine month period of
2001 to (pnd)380.8 million ($559.8 million) from (pnd)415.0
million in 2000. Diluted earnings per share before goodwill
amortization and exceptional items amounted to 31.3p (2000: 40.7p) for
the nine months ended September 30, 2001, a decrease of 23%. Revenues
for the nine months ended September 30, 2001 amounted to
(pnd)1,241.1 million ($1,824.4 million) compared to (pnd)1,200.2
million ($1,776.3 million) for the corresponding period of 2000.
The Company completed three acquisitions in the quarter ended
September 30, 2001. Pell Rudman Corporation, the foundation for our
private wealth management business, was completed on August 2, 2001.
The Company also purchased Grand Pacific, a leading Taiwan SITE and
Parkes & Company, a UK real estate advisor. Results of these purchases
are included from September 1, 2001.
Exceptional charges of (pnd)24.4 million were provided in the
quarter ending September 30, 2001. Integration costs of acquired
companies amounted to (pnd)17.7 million with the remainder relating
to expenses incurred in the design and planning for a new operating
facility which has been postponed indefinitely.
Earnings before interest, taxes, amortization and depreciation and
exceptional items reached (pnd)140.9 million ($207.1 million) and
(pnd)475.8 million ($699.4 million) for the third quarter and nine
months ended September 30, 2001.
Funds under management totaled $361.3 billion ((pnd)245.8
billion) at September 30, 2001, a decrease of $47.1 billion or 12% for
the third quarter of 2001. Funds under management of acquired
companies at date of purchase totaled $10.2 billion in the quarter.
Average funds under management during the third quarter were $389.1
billion compared to $404.4 billion for the preceding quarter. Net new
(lost) business amounted to $(2.6) billion and $(0.5) billion for the
third quarter and nine months ended September 30, 2001.
Net debt at September 30, 2001 amounted to (pnd)753.0 million
($1.1 billion) (excluding client cash) compared to (pnd)712.1
million at June 30, 2001 and (pnd)691.6 million at December 31,
2000. The Company paid cash of approximately (pnd)210.0 million for
acquisitions during the third quarter of 2001. Net debt has declined
by (pnd)255.0 million during 2001 excluding the cash paid for
acquisitions.
AMVESCAP is a leading independent global investment manager,
dedicated to helping people worldwide build their financial security.
Operating under the AIM and INVESCO brands, AMVESCAP strives to
deliver outstanding investment performance and service through a
comprehensive array of retail and institutional products for clients
in over 100 countries. The Company is listed on the London, New York,
Paris and Toronto Stock Exchanges with the symbol "AVZ."
Members of the investment community and general public are invited
to listen to the conference call today, Thursday, October 25, 2001 at
9:30 a.m. Eastern Time (2:30 p.m. London time), by dialing one of the
following numbers: 1-888-201-4990 for US callers or 712-257-3060 for
international callers. An audio replay of the conference call will be
available until Thursday, November 1, 2001 at 5:00 pm Eastern Time by
calling 1-800-839-8790 for US callers or 402-998-1137 for
international callers.
AMVESCAP plc
Group Profit and Loss Account
(in thousands)
Nine Months Ended Sept 30,
-------------------------------------------------------------------
2001
------------------------------------------------------
Ordinary Exceptional
activities items Total 2000
------------- -------------- --------- --------
Revenues (pnd)1,241,102 (pnd) -- (pnd)1,241,102 (pnd)1,200,211
Operating
expenses (824,438) (49,685) (874,123) (789,036)
-------- -------- -------- --------
416,664 (49,685) 366,979 411,175
Goodwill
amorti-
zation (100,604) -- (100,604) (35,391)
-------- -------- -------- --------
Operating
profit 316,060 (49,685) 266,375 375,784
Investment
income 6,723 -- 6,723 13,372
Interest
payable (42,606) -- (42,606) (36,391)
-------- -------- -------- --------
Profit before
taxation 280,177 (49,685) 230,492 352,765
Taxation (121,102) 17,309 (103,793) (120,991)
-------- -------- -------- --------
Profit after
taxation 159,075 (32,376) 126,699 231,774
Dividends (34,746) -- (34,746) (28,014)
-------- -------- -------- --------
Retained profit
for the
period (pnd)124,329 (pnd)(32,376) (pnd)91,953 (pnd)203,760
======== ======== ======== ========
Earnings per share
before goodwill
amortization:
---basic 32.3p (4.0)p 28.3p 42.8p*
---diluted 31.3p (3.9)p 27.4p 40.7p*
-------- -------- -------- --------
Earnings per share:
---basic 19.8p (4.0)p 15.8p 35.1p
---diluted 19.2p (3.9)p 15.3p 33.5p
-------- -------- -------- --------
-------- -------- -------- --------
Average shares
outstanding:
---basic 804,341 804,341 659,944
---diluted 830,650 830,650 701,972
-------- -------- -------- --------
*Before goodwill amortization and exceptional items.
AMVESCAP plc
Group Profit and Loss Account
(in thousands)
Three Months Ended Sept 30,
------------------------------------------
2001
------------------------------------------
Ordinary Exceptional
activities items Total 2000
-------------- -------------- ---------- ------
Revenues (pnd)387,550 -- (pnd)387,550 (pnd)445,958
Operating
expenses (264,466) (24,433) (288,899) (303,074)
-------- -------- -------- --------
123,084 (24,433) 98,651 142,884
Goodwill
amorti-
zation (35,566) -- (35,566) (17,021)
-------- -------- -------- --------
Operating
profit 87,518 (24,433) 63,085 125,863
Investment
income 858 -- 858 5,949
Interest
payable (13,814) -- (13,814) (16,241)
-------- -------- -------- --------
Profit before
taxation 74,562 (24,433) 50,129 115,571
Taxation (35,059) 8,891 (26,168) (39,211)
-------- -------- -------- --------
-------- -------- -------- --------
Profit after
taxation (pnd)39,503 (pnd)(15,542) (pnd)23,961 (pnd)76,360
======== ======== ======== ========
Earnings per share
before goodwill
amortization:
---basic 9.3p (1.9)p 7.4p 16.0p*
---diluted 9.1p (1.9)p 7.2p 15.0p*
-------- -------- -------- --------
Earnings per share:
---basic 4.9p (1.9)p 3.0p 11.2p
---diluted 4.8p (1.9)p 2.9p 10.7p
-------- -------- -------- --------
Average shares
outstanding:
---basic 808,794 808,794 679,439
---diluted 829,339 829,339 743,126
-------- -------- -------- --------
*Before goodwill amortization and exceptional items.
AMVESCAP plc
Group Balance Sheet
(in thousands)
Sept 30, Dec 31,
2001 2000
---------------- -----------------
Fixed assets
Goodwill (pnd)2,733,309 (pnd)2,375,542
Investments 177,470 152,521
Tangible assets 214,522 203,341
---------- ----------
3,125,301 2,731,404
Current assets
Debtors 644,904 686,101
Investments 104,089 124,311
Cash at bank and in hand 220,179 342,073
---------- ----------
969,172 1,152,485
Creditors: amounts falling due
within one year (739,293) (764,068)
Net current assets, excluding
banking and insurance
activities 229,879 388,417
---------- ----------
Banking and insurance
activities, net 16,101 1,812
---------- ----------
---------- ----------
Total assets less
current liabilities 3,371,281 3,121,633
Long-term debt (918,332) (960,023)
Provisions for
liabilities and
charges (176,550) (58,530)
---------- ----------
---------- ----------
Net assets (pnd)2,276,399 (pnd)2,103,080
========= ==========
========= ==========
Capital and reserves
Called up share capital (pnd)195,706 (pnd)192,759
Exchangeable shares 444,172 477,153
Share premium account 1,608,801 1,488,933
Profit and loss account 685,373 593,420
---------- ----------
2,934,052 2,752,265
Other reserves (657,653) (649,185)
---------- ----------
---------- ----------
Shareholders' funds (pnd)2,276,399 (pnd)2,103,080
========= ==========
AMVESCAP plc
Group Cash Flow Statement
(in thousands)
Nine Months Ended
------------------------------------
Sept 30, Sept 30,
2001 2000
--------------- ---------------
Operating profit (pnd)266,375 (pnd)375,784
Amortization
and
depreciation 152,976 72,654
Change in debtors,
creditors, and
other 79,353 8,844
-------- --------
Net cash inflow
from operating
activities 498,704 457,282
-------- --------
Banking and
insurance
activities (9,121) 3,053
Interest paid,
net of investment
income (24,197) (14,833)
Taxation (109,241) (99,097)
Capital expenditures,
net of sales (56,254) (38,121)
Net purchases of fixed
asset investments (23,714) (26,169)
Acquisitions (316,349) (153,422)
Dividends paid (48,015) (36,439)
Net repayment of
debt (25,238) (82,096)
Foreign exchange in
cash at bank and in
hand (8,469) 26,590
-------- --------
(Decrease)/increase in
cash at bank and in
hand (pnd)(121,894) (pnd)36,748
======== ========
AMVESCAP plc
Segmental Information
(in thousands)
Nine Months Ended Sept 30, 2001
--------------------------------------------------
Revenues Expenses Oper. profit
--------- ------- ------------
Managed
Products (pnd)760,252 (pnd)(420,729) (pnd)339,523
INVESCO
Institutional 157,715 (117,800) 39,915
INVESCO
Global 273,670 (207,821) 65,849
INVESCO
Retirement 43,186 (37,867) 5,319
Private Wealth
Management 4,618 (4,338) 280
New Business 1,661 (9,155) (7,494)
Corporate -- (26,728) (26,728)
---------- ---------- ----------
1,241,102 (824,438) 416,664
Goodwill
amortization -- (100,604) (100,604)
---------- ---------- ----------
(pnd)1,241,102 (pnd)(925,042) (pnd)316,060
========== ========== ==========
Nine Months Ended Sept 30, 2000
-------------------------------------------------
Revenues Expenses Oper. profit
------------ --------- --------------
Managed
Products (pnd)772,518 (pnd)(390,458) (pnd)382,060
INVESCO
Institutional 159,065 (117,459) 41,606
INVESCO Global 233,201 (167,020) 66,181
INVESCO Retirement 35,090 (32,219) 2,871
New Business 337 (15,908) (15,571)
Corporate -- (39,142) (39,142)
------------ --------- -------------
1,200,211 (762,206) 438,005
Goodwill amortization -- (35,391) (35,391)
------------ --------- -------------
(pnd)1,200,211 (pnd)(797,597) (pnd)402,614
============ ========= =============
Notes
1. The taxation charge for the nine months ended September 30,
2001 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. The Directors consider that profit before goodwill amortization
and exceptional items is a more appropriate basis for the calculation
of earnings per share since this represents a more consistent measure
of operating performance.
2001
Profit before goodwill
amortization and
exceptional items Number of
shares Per share
(pnd)'000 '000 amount
--------------------- --------------- -----------
Basic earnings
per share 259,679 804,341 32.3p
=====
Issuance of
options -- 26,309
------ -----
Diluted earnings
per share 259,679 830,650 31.3p
======= ===== ======
2000
Profit before
goodwill amortization
and exceptional items Number of shares Per share
(pnd)'000 '000 amount
--------------------- ---------------- --------
--------------------- ---------------- --------
Basic earnings
per share 282,190 659,944 42.8p
===========
Conversion of
ESDs 3,197 9,358
Issuance of
options -- 32,670
--------------------- ----------------
--------------------- ----------------
Diluted earnings
per share 285,387 701,972 40.7p
====================== ================= ==========
3. An exceptional item of (pnd)49.7 million was recognized for the
nine months ended September 30, 2001, including (pnd)24.4 million of
exceptional charges during the third quarter.
in thousands September 30,
---------------------------
2001 2000
--------------- --------------
--------------- --------------
3 months 9 months 9 months
--------- ---------- ------------
--------- ---------- ------------
Acquisition - related costs
Trimark (pnd) -- (pnd) -- (pnd)20,333
NAM -- 21,045 --
Pell Rudman 13,645 13,645 --
Others 4,094 8,301 --
INVESCO Institutional
Restructure -- -- 6,497
Building termination costs 6,694 6,694 --
--------- --------- -------------
--------- --------- -------------
(pnd)24,433 (pnd)49,685 (pnd)26,830
========= ========== ==============
AMVESCAP PLC
Funds Under Management
(in billions)
Managed Products INVESCO
--------------------------
--------------------------
Total AIM INVESCO Inst Global PWM
Dec 31, 2000 $402.6 $193.2 $43.2 $99.6 $66.6 $ --
Market gains/
(loss) (77.8) (37.5) (15.9) (8.4) (15.4) (0.6)
Acquisitions 32.4 -- -- 17.7 6.7 8.0
Net new (lost)
business (0.5) 0.4 0.7 -- (1.5) (0.1)
Change in US Money
Market
Funds 5.6 5.5 (0.4) -- 0.5 --
Transfers -- 0.3 -- -- (0.3) --
Foreign
currency (1.0) (0.7) -- -- (0.3) --
---- ----- ------- ---- -------- ----
September 30,
2001 $361.3 $161.2 $27.6 $108.9 $56.3 $7.3
====== ====== ====== ====== ======= =====
September 30,
2001 + (pnd) (pnd) (pnd) (pnd) (pnd) (pnd)
245.8 109.7 18.8 74.1 38.3 4.9
====== ==== ==== ===== ===== =====
+ Translated at $1.47 per (pnd)1.00.
Note: INVESCO Retirement has $31.6 billion in assets under
administration as of September 30, 2001, compared to $27.6 billion as
of December 31, 2000.
AMVESCAP PLC
Reconciliation to US Accounting Principles
(in thousands)
Nine Months Ended Sept 30,
-----------------------------------------
2001 2000
---------------- --------------
Net profit
under UK GAAP (pnd)126,699 (pnd)231,774
US GAAP
Adjustments:
Acquisition
accounting (20,897) (48,475)
Taxation (32,700) (12,170)
Other 2,163 508
-------------- --------------
Net income
under US GAAP (pnd)75,265 (pnd)171,637
============== =============
Earnings per share
before goodwill
amortization:
--basic 28.1p 38.7p
--diluted 27.2p 36.9p
Earnings per share:
--basic 9.4p 26.0p
--diluted 9.1p 24.9p
Sept 30, 2001 Dec 31, 2000
-------------- --------------
Shareholders' funds
under UK GAAP (pnd)2,276,399 (pnd)2,103,080
US GAAP
Adjustments:
Acquisition
accounting 998,787 1,020,052
Treasury
stock (196,121) (168,292)
Dividends -- 47,813
Other 5,241 15,968
------------ --------------
Shareholders'
equity under US GAAP (pnd)3,084,306 (pnd)3,018,621
============ ==============
--30--se/in*
CONTACT: AMVESCAP PLC
Robert F. McCullough, 404/724-4251
or
The Maitland Consultancy
Angus Maitland, (44) 0207-379-5151
KEYWORD: UNITED KINGDOM INTERNATIONAL EUROPE
INDUSTRY KEYWORD: BANKING EARNINGS
SOURCE: AMVESCAP PLC
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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