AMVESCAP PLC Reports Results for Year Ended December 31, 2003; Dr. Thomas R. Fischer Joins Board of Directors.Business Editors LONDON--(BUSINESS WIRE)--Feb. 3, 2004 AMVESCAP reported that profit before tax, goodwill amortization and exceptional items 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. 270.3 million ($481.1 million) compared to GBP320.9 million ($516.6 million) in 2002. 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 and exceptional items was 23.2p for the 2003 year (2002: 27.2p). Revenues amounted to GBP1,158.1 million ($2,061.4 million) compared to GBP1,345.3 million ($2,165.9 million) in 2002 (NYSE NYSE See: New York Stock Exchange : AVZ).
Results for Year Ended
2003 2002 2003++ 2002++
----------- ----------- --------- ----------
Revenues GBP1,158.1m GBP1,345.3m $2,061.4 $2,165.9m
Profit before tax,
goodwill amortization
and exceptional items GBP270.3m GBP320.9m $481.1m $516.6m
Earnings per share before
goodwill amortization:
--basic 16.4p 20.5p $0.58+ $0.66+
--diluted 16.3p 20.3p $0.58+ $0.65+
Earnings per share before
goodwill amortization and
exceptional items:
--basic 23.4p 27.5p $0.83+ $0.89+
--diluted 23.2p 27.2p $0.83+ $0.88+
Dividends per share 11.5p 11.5p $0.41+ $0.37+
----------------------------------------------------------------------
+ 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. ++ For the convenience of the reader, pounds sterling for the year ended December December: see month. 31, 2003 have been translated to US dollars using $1.78 per GBP1.00 (2002: $1.61 per GBP1.00). AMVESCAP reported that profit before tax, goodwill amortization and exceptional items for the three months ended December 31, 2003 increased 6% to GBP82.2 million ($146.3 million) compared to GBP77.2 million ($128.2 million) in the third quarter of 2003 and 42% from the GBP57.7 million ($92.9 million) in the fourth quarter of 2002. Diluted earnings per share before goodwill amortization and exceptional items amounted to 7.0p for the 2003 period, an increase of 6% from the 6.6p reported in the third quarter of 2003. Diluted earnings per share before goodwill amortization and exceptional items totaled 5.0p per share in the fourth quarter of 2002. Revenues for the fourth quarter of 2003 amounted to GBP301.2 million ($536.1 million) compared to GBP291.1 million ($468.7 million) for the same period of 2002 and GBP304.3 million ($505.1 million) in 2003's third quarter. "AMVESCAP accomplished many important objectives in 2003. Strategic changes implemented during the year, including the move to a unified distribution force for our US retail mutual funds and integration of company operating platforms, have increased our competitiveness. Investment performance of our US retail funds improved during the second half of the year adding to the strength of our comprehensive range of global investment products. Our client service continues to be recognized as among the best in the industry," 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. "These positive factors, however, have been overshadowed by pending 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. investigations in 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. , which we are working to resolve expeditiously ex·pe·di·tious adj. Acting or done with speed and efficiency. See Synonyms at fast1. ex in 2004," noted Mr. Brady. "In addition to providing full restitution In the context of Criminal Law, state programs under which an offender is required, as a condition of his or her sentence, to repay money or donate services to the victim or society; with respect to maritime law, the restoration of articles lost by jettison, done when the to any mutual fund investors who may have been harmed, we have underway a comprehensive independent review of our mutual fund policies, procedures, and practices to insure Insure can mean:
Funds under management totaled $370.6 billion (GBP208.2 billion) at December 31, 2003 compared to $332.6 billion at December 31, 2002. Institutional money market funds, included above, amounted to $50.9 billion at December 31, 2003 compared to $57.0 billion at the end of the prior year. 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 was invested in equity securities and 45% was invested in fixed income and other securities at December 31, 2003. The equity securities were invested in the following disciplines at December 31, 2003: 32% in growth, 41% in core and 27% in value styles (September September: see month. 30, 2003: 33% in growth, 42% in core and 25% in value styles). Average funds under management amounted to $340.8 billion for 2003 compared to $365.8 billion for the prior year. Average funds under management amounted to $356.7 billion for the fourth quarter compared to $346.9 billion for the preceding quarter, an increase of $9.8 billion. The average money market fund levels totaled $48.7 billion for the fourth quarter and $51.5 billion for the 2003 year ($59.6 billion for 2002). Net debt at December 31, 2003 amounted to GBP576.6 million (excluding client cash) compared to GBP652.4 million at December 31, 2002. Earnings before interest, taxes, depreciation, amortization and exceptional items ("EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") reached GBP107.4 million ($191.2 million) and GBP386.6 million ($688.1 million) for the fourth quarter and full year 2003. The results for the fourth quarter of 2003 include an exceptional charge of GBP22.8 million (GBP16.1 million after tax or 2.0p per share) related to legal and other costs incurred during the investigations underway by the US Securities and Exchange Commission and the Attorney Generals from Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. and 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 . The Board has recommended a final dividend of 6.5p, resulting in a total dividend of 11.5p for 2003 (2002: 11.5p). This dividend, if approved by the shareholders at the Annual General Meeting in April, will be paid on April 30, 2004 to shareholders on the register on April 2, 2004. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. for the dividend will be March 31, 2004. DR. THOMAS R. FISCHER Fi·scher , Hans 1881-1945. German chemist known for his research on the components of blood. He won a 1930 Nobel Prize for his work on the synthesis of hemin. JOINS BOARD OF DIRECTORS Dr. Thomas Fischer, 56, has been elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. a non-executive non-executive adj non-executive director → direttore m senza potere esecutivo member of the Board of Directors. Dr. Fischer is Chairman of WestLB WestLB Westdeutsche Landesbank Girozentrale (Germany) . He previously was Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank . He is also a member of the Boards of Audi and TUI tui: see honeyeater. (Telephone User Interface) The combination of Touch-tone input from the telephone keypad coupled with speech output from the connected voicemail or IVR application. . "Thomas Fischer is a highly respected financier with exceptional knowledge of risk management and the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets. We welcome the perspective and insight he brings to the Board of Directors," said Charles W. Brady. With the addition of Dr. Fischer, the Board will consist of 13 members, eight of whom are independent directors. He will be joining the Audit, Remuneration REMUNERATION. Reward; recompense; salary. Dig. 17, 1, 7. and Nomination NOMINATION, This word has several significations. 1. An appointment; as, I nominate A B, executor of this my last will. 2. A proposition; the word nominate is used in this sense in the constitution of the United States, art. 2, s. and Corporate Governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. Committees. There is nothing further to disclose for Dr. Fischer pursuant to Rule 16.4 of the Listing Rules of the UK Listing Authority. Dr. Fischer will be standing for election for a full term at the next Annual General Meeting in April 2004. At the date of his appointment, Dr. Fischer held no AMVESCAP PLC ordinary shares. THE YEAR IN REVIEW The 2003 year included many important accomplishments. Several of those are as follows: -- We completed the integration of 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. Funds Group into AIM resulting in the creation of a unified support and distribution function in the US retail marketplace and strengthened and further diversified diversified (di·verˑ·s one of the US retail industry's most comprehensive product lines through the addition of 14 INVESCO retail funds and the addition of three funds from our Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. , AIM Trimark Investments. -- Sixty per cent of the long-term assets Long-Term Assets 1. Reported on the balance sheet, it's the value of a company's property, equipment and other capital assets, less depreciation. 2. A stock, bond or other asset that you plan on holding in your portfolio for a lengthy period of time. (equity and fixed income) managed by AIM in the US were in the top half of their peer group for 2003. Also, 41% of the equity rated funds managed by AIM in the US were 4 or 5 stars at the end of 2003. Several changes have been made in the investment function to further strengthen the disciplines of our investment process. -- The 1-year absolute performance for the combined fund offerings of AIM and INVESCO ranked 12th in 2003 among the fifty largest firms. -- The AIM Institutional money market had nine portfolios reach record assets during 2003, and remains as the fifth largest complex of institutional-rated money market funds. All six of our S&P AAA-rated funds ranked in the top among their Lipper Business Description Lipper, Inc., a subsidiary of Reuters provides mutual and hedge fund information, analytical tools, data and commentary. Lipper's benchmarking provides a guidepost to asset managers, fund companies, financial intermediaries, traditional media, categories over one year periods. -- Twenty-seven of AIM Trimark funds (82% of total rated assets) received 4-5 star ratings from Morningstar Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . -- AIM Investment Services was cited for superior customer service throughout the year by the National Quality Review, receiving a 5-star rating for transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and Best in Class for shareholder services. -- AIM Trimark was recognized for "Best Reputation", "Best Customer Service" and "Best Communication" by Advisor's Edge magazine in 2003. AIM Trimark's Contact Center retained its #1 service ranking among its high-volume contact centre peer group according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Environics Research Group. Advisors rate AIM Trimark Best in Reputation, Service and Communication. -- Over 50% of INVESCO's equity assets outperformed their benchmarks and 70% of fixed income products (excluding stable value) outperformed their benchmarks over the three-year period. In the UK, better than 90% of equity and fixed income products outperformed benchmarks. In Asia Pacific more than 50% of equity products outperformed benchmarks in all time periods. -- INVESCO UK successfully completed its migration to the Global Fund Administration System (GFAS GFAS Global Fund Administration System ) platform and converted 43 unit trusts into investment companies with variable capital. This 18-month project is the largest conversion of its type ever in the UK and we now use the same administration processing platform in 10 countries. -- We completed the acquisition of the Hypo-und Vereinsbank's institutional real estate funds management business, bringing $2.9 billion in 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. to INVESCO and completing the footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. for our European real estate business. The US real estate business continued with strong investment performance. -- INVESCO developed several unique structured products for distribution including a $1.16 billion leveraged structure, our first investment grade synthetic Synthetic A financial instrument that is created artificially by simulating another instrument with the combined features of a collection of other assets. Notes: Collateralized Debt Obligation (CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the ), and an asset-backed security Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. CDO. -- INVESCO Great Wall, AMVESCAP's joint venture company in China, launched its first fund in early September. China has 80 million stock investors - second in number only to the US. -- Our Private Wealth Management business expanded its US footprint with the acquisition of Whitehall Whitehall, cities, United States Whitehall. 1 City (1990 pop. 20,572), Franklin co., central Ohio, a suburb of Columbus; inc. 1948. Manufactures include water coolers and packaged meats. Asset Management and the proposed 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 . Atlantic Trust was included in Barron's list of Top Wealth Managers in the United States for the second consecutive year. AIM The AIM US business reported revenues of GBP476.8 million during 2003 compared to GBP619.0 million for the prior year. Operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. were GBP182.7 million, compared to GBP244.9 million in 2002. The group generated approximately $23.2 billion of gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. and had net redemptions of $6.2 billion in 2003. Market gains of $20.3 billion led to an increase in funds under management for the year. Funds under management amounted to $149.4 billion at December 31, 2003, including $50.9 billion of money market funds. The AIM Canada business reported revenues of GBP154.8 million during 2003 compared to GBP151.3 million for the prior year. Operating profits were GBP77.6 million in both 2003 and 2002. The group generated approximately $3.8 billion of gross sales in 2003. Market gains were $3.2 billion for the year. Funds under management amounted to $28.7 billion at December 31, 2003. INVESCO North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. The INVESCO North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. business reported revenues and operating profits of GBP191.5 million and GBP49.0 million in the 2003 period. This group generated approximately $20.0 billion in gross sales during 2003; market gains and net redemptions were $12.8 billion and $0.8 billion, respectively for the year. Funds under management amounted to $120.2 billion at December 31, 2003. INVESCO UK INVESCO UK's revenues amounted to GBP174.2 million for 2003 compared to GBP196.6 million in 2002. Operating profit totaled GBP29.4 million for the year ended December 31, 2003 versus GBP31.1 million for the prior year. Funds under management were $39.0 billion at December 31, 2003. Gross sales for 2003 totaled approximately $16.4 billion; market gains totaled $6.0 billion and net redemptions were $0.4 billion for the year. INVESCO Europe/Asia INVESCO Europe/Asia's revenues amounted to GBP77.7 million for 2003 compared to GBP85.6 million in 2002. Operating profit totaled GBP340,000 for the year ended December 31, 2003 versus GBP884,000 for the prior year. Funds under management were $23.8 billion at December 31, 2003. Gross sales for 2003 totaled approximately $10.7 billion; market gains totaled $2.2 billion, and net redemptions were $2.8 billion for the year. Private Wealth Management/Retirement Revenues and operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for these businesses totaled GBP83.1 million and GBP3.3 million for 2003. Funds under management were $9.5 billion at December 31, 2003. AMVESCAP Retirement's assets under administration were $27.7 billion at December 31, 2003. Net redemptions for the group amounted to $0.4 billion for 2003. This group services 1,200 plans with 624,000 participants at December 31, 2003. OUTLOOK "AMVESCAP's success has been built by dedicated employees serving our clients. This core mission has not changed. We are working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to resolve constructively con·struc·tive adj. 1. Serving to improve or advance; helpful: constructive criticism. 2. Of or relating to construction; structural. 3. all regulatory issues as soon as possible. I am confident that once this goal is achieved, AMVESCAP will continue the successful momentum we built in 2003," added Mr. Brady. "Growing corporate earnings and consumer confidence continue to support robust global equity markets. In this environment, AMVESCAP's global scale and truly diversified range of products are ideally suited for our investors and their financial advisors, consultants, and plan sponsors." AMVESCAP is a leading independent global investment manager, dedicated to helping people worldwide build their financial security. Operating under the AIM, INVESCO and Atlantic Trust 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 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, 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. , February February: see month. 3, 2004 at 9:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy (2:30 p.m. GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 ), by dialing one of the following numbers: 1-888-201-4990 for US callers or 610-769-9391 for international callers. An audio replay of the conference call will be available until Tuesday, February 10, 2004 at 5:00 pm Eastern Time by calling 1-800-945-9366 for US callers or 402-220-3463 for international callers. The presentation slides that will be reviewed during the conference call are available on AMVESCAP's Web site at www.amvescap.com.
AMVESCAP PLC
Group Profit and Loss Account
(in thousands)
Year Ended December 31,
-------------------------
2003 2002
------------ ------------
Revenues GBP1,158,070 GBP1,345,263
Expenses:
Operating (847,220) (978,338)
Exceptional (84,943) (69,248)
Goodwill amortization (148,982) (149,415)
------------ ------------
Operating profit 76,925 148,262
Investment income 7,740 6,561
Interest expense (48,270) (52,558)
------------ ------------
Profit before taxation 36,395 102,265
Taxation (53,676) (85,372)
------------ ------------
Profit after taxation (17,281) 16,893
Dividends (93,627) (93,479)
------------ ------------
Retained profit for the period GBP(110,908) GBP(76,586)
============ ============
Earnings per share before
goodwill amortization and
exceptional items:
--basic 23.4p 27.5p
--diluted 23.2p 27.2p
------------ ------------
Earnings per share:
--basic (2.2)p 2.1p
--diluted (2.2)p 2.1p
------------ ------------
Average shares outstanding:
--basic 802,885 810,042
--diluted 802,885 819,518
------------ ------------
AMVESCAP PLC
Group Profit and Loss Account
(in thousands)
Three Months Ended Dec
31,
----------------------
2003 2002
---------- -----------
Revenues GBP301,219 GBP291,099
Expenses:
Operating (211,649) (220,273)
Exceptional (22,849) (49,181)
Goodwill amortization (37,049) (38,927)
---------- -----------
Operating profit 29,672 (17,282)
Investment income 3,038 (905)
Interest expense (10,417) (12,189)
---------- -----------
Profit before taxation 22,293 (30,376)
Taxation (18,535) (10,684)
---------- -----------
Profit after taxation GBP3,758 GBP(41,060)
========== ===========
Earnings per share before
goodwill amortization and
exceptional item:
--basic 7.1p 5.0p
--diluted 7.0p 5.0p
---------- -----------
Earnings per share:
--basic 0.5p (5.1)p
--diluted 0.5p (5.1)p
---------- -----------
Average shares outstanding:
--basic 800,941 806,238
--diluted 810,311 806,238
---------- -----------
AMVESCAP PLC
Group Balance Sheet
(in thousands)
Dec 31, 2003 Dec 31, 2002
------------ ------------
Fixed assets
Goodwill GBP2,411,803 GBP2,542,306
Investments 230,567 248,408
Tangible assets 170,598 197,060
------------ ------------
2,812,968 2,987,774
Currents assets
Debtors 903,955 725,547
Investments 74,652 69,195
Cash 318,713 355,111
------------ ------------
1,297,320 1,149,853
Current liabilities
Current maturities of long-term debt -- (222,089)
Creditors (1,070,393) (917,216)
------------ ------------
(1,070,393) (1,139,305)
Net current assets 226,927 10,548
------------ ------------
Total assets less current liabilities 3,039,895 2,998,322
Long-term debt (730,041) (595,600)
Provisions for liabilities and charges (77,601) (119,234)
------------ ------------
Net assets GBP2,232,253 GBP2,283,488
============ ============
Capital and reserves
Called up share capital GBP200,264 GBP198,614
Share premium account 675,755 619,250
Exchangeable shares 330,629 383,105
Profit and loss account 498,390 609,298
Other reserves 527,215 473,221
------------ ------------
Shareholders' funds, equity interests GBP2,232,253 GBP2,283,488
============ ============
AMVESCAP PLC
Group Cash Flow Statement
(in thousands)
Year Ended
----------------------
Dec 31, Dec 31,
2003 2002
----------- ----------
Operating profit GBP76,925 GBP148,262
Amortization and depreciation 217,007 209,647
Change in debtors, creditors and other 20,337 68,609
----------- ----------
Net cash inflow from operating activities 314,269 426,518
----------- ----------
Interest paid, net of investment income (42,143) (41,558)
Taxation (120,760) (105,557)
Capital expenditures, net of sales (36,585) (54,584)
Net disposals/(purchases) of fixed asset
investments 4,464 (37,322)
Acquisitions (28,039) --
Dividends paid (93,369) (93,531)
Net repayment of debt (17,946) (54,304)
Change in bank overdraft (5,112) (5,656)
Foreign exchange on cash at bank and in hand (11,177) (29,873)
----------- ----------
(Decrease)/increase in cash at bank and in hand GBP(36,398) GBP4,133
=========== ==========
AMVESCAP PLC
Segmental Information
(in thousands)
Year Ended Dec 31, 2003
------------------------------------
Revenues Expenses Profit
------------ ------------ ----------
AIM
US GBP476,804 GBP(294,093) GBP182,711
Canada 154,758 (77,177) 77,581
------------ ------------ ----------
631,562 (371,270) 260,292
------------ ------------ ----------
INVESCO
North America 191,513 (142,470) 49,043
UK 174,164 (144,741) 29,423
Europe/Asia 77,725 (77,385) 340
------------ ------------ ----------
443,402 (364,596) 78,806
------------ ------------ ----------
Private Wealth/Retirement 83,106 (86,368) (3,262)
Corporate -- (24,986) (24,986)
------------ ------------ ----------
GBP1,158,070 GBP(847,220)GBP310,850
============ ============ ==========
Year Ended Dec 31, 2002
------------------------------------
Revenues Expenses Profit
------------ ------------ ----------
AIM
US GBP618,968 GBP(374,046) GBP244,922
Canada 151,345 (73,702) 77,643
------------ ------------ ----------
770,313 (447,748) 322,565
------------ ------------ ----------
INVESCO
North America 202,445 (151,918) 50,527
UK 196,618 (165,555) 31,063
Europe/Asia 85,628 (84,744) 884
------------ ------------ ----------
484,691 (402,217) 82,474
------------ ------------ ----------
Private Wealth/Retirement 90,259 (95,688) (5,429)
Corporate -- (32,685) (32,685)
------------ ------------ ----------
GBP1,345,263 GBP(978,338) GBP366,925
============ ============ ==========
Notes 1. The taxation charge is primarily made up from overseas taxation. After adjusting for the amortization of goodwill and the exceptional items, the effective tax rate for 2003 and 2002 was 30.6%. 2. The calculation of earnings per share is as follows:
2003
------------------------------------------
Number of
Profit after taxation shares Per share
GBP'000 '000 Amount
--------------------- --------- ----------
Basic and diluted earnings
per share (17,281) 802,885 (2.2)p
==========
2002
--------------------------------------------
Number of
Profit after taxation shares Per share
GBP'000 '000 Amount
--------------------- ----------- ----------
Basic earnings per share 16,893 810,042 2.1p
==========
Dilutive effect of options -- 9,476
--------------------- -----------
Diluted earnings per share 16,893 819,518 2.1p
===================== =========== ==========
Profit before go odwill amortization and exceptional items 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. 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.
2003
------------------------------------------
Profit before
goodwill
amortization and Number of
exceptional items shares Per share
GBP'000 '000 Amount
--------------------- --------- ----------
Basic earnings per share 187,602 802,885 23.4p
==========
Dilutive effect of options -- 7,486
--------------------- ---------
Diluted earnings per share 187,602 810,371 23.2p
===================== ========= ==========
2002
-------------------------------------------
Profit before
goodwill
amortization and Number of
exceptional items shares Per share
GBP'000 '000 Amount
-------------------- ---------- -----------
Basic earnings per share 222,724 810,042 27.5p
===========
Dilutive effect of options -- 9,476
-------------------- ----------
Diluted earnings per share 222,724 819,518 27.2p
==================== ========== ===========
3. The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: profit and loss includes exceptional charges in 2003 and 2002 as follows:
GBP'000 2003 2002
----------------------------------------------------------------------
Redundancy 31,054 44,544
US Retail reorganization 17,413 --
US Regulatory investigations 17,371 --
Lease costs 9,620 5,144
Acquisitions 2,326 --
Project costs & other 7,159 19,560
--------------
Total exceptional items 84,943 69,248
--------------
Total exceptional items net of tax 55,901 56,416
==============
Diluted per share impact 6.9p 6.9p
==============
The US regulatory investigation charge includes the legal and other costs incurred through the end of 2003 plus an estimate of such costs for the first half of 2004 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the investigations underway by the US Securities and Exchange Commission and the Attorney Generals from Colorado and New York. The cost of any settlement would be recorded as an exceptional charge at the time such settlement is finalized See finalization. . Some part of these costs may ultimately be recovered through insurance claims in the future. 4. Dividends for 2003 and 2002 were as follows:
2003 2002
GBP'000 GBP'000
------- -------
Interim paid: 5.0p per share (2002: 5.0p) 40,835 40,823
Final proposed: 6.5p per share (2002: 6.5p) 52,792 52,656
------- -------
93,627 93,479
======= =======
5. Whitehall Asset Management was acquired for GBP13.6 million in February, 2003. The transaction was accounted for as an acquisition and results have been included from the date of purchase. In December, 2003, 75.1% of the real estate asset management business of Hypo-und Vereinsbank was acquired for GBP21.4 million. Results will be included from January January: see month. 1, 2004. 6. The financial information set out above does not constitute the Company's statutory accounts for the years ended December 31, 2003 or 2002. Statutory accounts for 2002 have been reported on by the Company's Auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together and delivered to the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . The report of the Auditors was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985.
AMVESCAP PLC
Funds Under Management
(in billions)
AIM
---------------
Total US Canada
-------- ------- -------
Dec 31, 2002 $332.6 $144.1 $22.0
Market gains/(loss) 45.4 20.3 3.2
Net new (lost) business
(10.6) (6.2) --
Change in Money Market Funds
(10.7) (10.1) --
Transfers -- 1.3 --
Acquisitions 4.0 -- --
Foreign currency 9.9 -- 3.5
-------- ------- -------
Dec 31, 2003 $370.6 $149.4 $28.7
-------- ------- -------
Dec 31, 2003 + GBP208.2 GBP83.9 GBP16.1
======== ======= =======
INVESCO
----------------------------
North
America UK Europe/Asia PWM
-------- ------- ----------- -------
Dec 31, 2002 $103.5 $34.0 $21.1 $7.9
Market gains/(loss) 12.8 6.0 2.2 0.9
Net new (lost) business
(0.8) (0.4) (2.8) (0.4)
Change in Money Market Funds
-- (0.5) (0.1) --
Transfers 1.7 (2.9) -- (0.1)
Acquisitions 2.9 -- -- 1.1
Foreign currency 0.1 2.8 3.4 0.1
-------- ------- ----------- -------
Dec 31, 2003 $120.2 $39.0 $23.8 $9.5
-------- ------- ----------- -------
Dec 31, 2003 + GBP67.5 GBP21.9 GBP13.4 GBP5.4
======== ======= =========== =======
+ Translated at $1.78 per GBP1.00. Note 1: AMVESCAP Retirement has $27.7 billion in assets under administration as of December 31, 2003, compared to $30.9 billion as of December 31, 2002. Note 2: The INVESCO Funds Group funds under management are reflected with AIM US in this analysis. Previous presentations included these amounts with the INVESCO US business. Note 3: Institutional money market funds amounted to $50.9 billion at December 31, 2003 compared to $57.0 billion at December 31, 2002.
AMVESCAP PLC
Reconciliation to US Accounting Principles
(in thousands)
Year Ended December 31,
-------------------------
2003 2002
------------ ------------
Net profit under UK GAAP GBP(17,281) GBP16,893
US GAAP Adjustments:
Acquisition accounting 141,880 137,790
Redundancy and reorganizations 30,085 11,961
Taxation (14,801) (5,198)
Other (743) 420
------------ ------------
Net income under US GAAP GBP139,140 GBP161,866
============ ============
Earnings per share before amortization:
--basic 17.8p 20.4p
--diluted 17.6p 20.2p
Earnings per share:
--basic 17.3p 20.0p
--diluted 17.2p 19.8p
Dec 31, 2003 Dec 31, 2002
------------ ------------
Shareholders' funds under UK GAAP GBP2,232,253 GBP2,283,488
US GAAP Adjustments:
Acquisition accounting 1,095,839 1,034,168
Redundancy and reorganizations 44,649 11,961
Treasury stock (184,922) (162,104)
Dividends 52,914 52,656
Other (23,779) (11,934)
------------ ------------
Shareholders' equity under US GAAP GBP3,216,954 GBP3,208,235
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion