AMVESCAP Reports Results for Three Months Ended March 31, 2006.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. -- AMVESCAP reported that profit before tax for the three months ended March 31, 2006, amounted to $171.7 million (three months ended March 31, 2005: $110.8 million). Net revenues for the first quarter of 2006 included the recognition of performance fees of $33.2 million (first quarter of 2005: $4.7 million). Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the first quarter of 2006 amounted to $186.6 million (first quarter of 2005: $129.2 million). 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 was $0.13 for the first quarter of 2006 (first quarter of 2005: $0.09). (NYSE NYSE See: New York Stock Exchange :AVZ) (LSE LSE - Language Sensitive Editor :AVZ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AVZ) "Positive net fund flows for the company and enhanced profitability have produced a solid start for AMVESCAP in 2006," said AMVESCAP president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Martin L. Flanagan Flanagan may refer to: People named:
"Investment performance continues to improve in our U.S. retail mutual fund business and we have made progress towards our goal of bringing the "Best of AMVESCAP" to our clients with the recent addition of seven new U.S. retail mutual funds advised by investment teams throughout the company," added Mr. Flanagan. "The upcoming addition of PowerShares's distinctive ETFs to our broad range of actively managed investment products will provide our clients with one of the industry's most comprehensive sets of investment solutions."
Results for Three Months Ended
---------------------------------------------
March 31, December 31, March 31,
2006 2005(a) 2005
--------------- --------------- -------------
Net revenues(b) $584.1m $551.4m $537.8m
Operating expenses $397.5m $427.3m $408.6m
Operating profit $186.6m $124.1m $129.2m
Net operating margin(c) 31.9% 22.5% 24.0%
Profit before tax $171.7m $94.3m $110.8m
Earnings per share:
--basic $0.14 $0.07 $0.09
--diluted $0.13 $0.07 $0.09
----------------------------------------------------------------------
(a) Results for the three months ended December December: see month. 31, 2005, are presented before the restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . (b) Net revenues represent total revenues less third-party distribution, service and advisory fees. (c) Net operating margin Net operating margin The ratio of net operating income to net sales. is equal to operating profit divided by net revenues. Earnings Summary Net revenues for the three months ended March 31, 2006, were $584.1 million (three months ended December 31, 2005: $551.4 million). Net revenues for the first quarter of 2006 included the recognition of institutional performance fees of $33.2 million (fourth quarter of 2005: $16.4 million). Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. totaled $397.5 million for the first quarter of 2006 (fourth quarter of 2005 before the restructuring charge: $427.3 million). The net operating margin for the three months ended March 31, 2006, was 31.9% (three months ended December 31, 2005, before the restructuring charge: 22.5%). Net debt (total debt of $1,182.6 million, less cash and cash equivalents of $321.5 million, which excludes client cash of $172.0 million) as of March 31, 2006, was $861.1 million compared to $733.6 million as of December 31, 2005. 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. Assets under management at March 31, 2006, were $410.9 billion (December 31, 2005: $386.3 billion). Average assets under management during the first quarter were $401.3 billion, compared to $380.9 billion for the fourth quarter of 2005 and $377.4 billion for the first quarter of 2005. Net inflows for the three months ended March 31, 2006, were $1.5 billion, with inflows of $23.1 billion and outflows of $21.6 billion. Net outflows for the three months ended December 31, 2005, and March 31, 2005, were $3.7 billion and $2.5 billion, respectively. In addition, money market assets continue to grow, with net inflows of $7.4 billion in the first quarter of 2006 versus $1.8 billion in the fourth quarter of 2005. Further analysis of assets under management is included in the supplemental schedule to this release. 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. , AIM Trimark, Invesco Perpetual Invesco Perpetual is an investment company based in Henley-on-Thames, Oxfordshire, England. It was originally founded as by Sir Martyn Arbib and before it merged with Invesco it was known first as Perpetual Mutual then as Perpetual plc. and Atlantic Trust brands, AMVESCAP strives to deliver outstanding products and services through a comprehensive array of enduring investment solutions for our retail, institutional and private wealth management clients around the world. The company is listed on the London, 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 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." Additional information is available at www.amvescap.com. Members of the investment community and general public are invited to listen to the conference call today, Wednesday Wednesday: see week. , April 26, 2006, 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: 1-773-756-0108 or 1-888-455-2053 for U.S. callers. An audio replay of the conference call will be available until Wednesday, May 3, 2006, at 10:00 p.m. BST (5:00 p.m. EDT) by calling 1-402-220-9763 or 1-800-294-2498 for U.S. callers. The presentation slides that will be reviewed during the conference call will be available 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, 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 release, 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" and 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 Web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . AMVESCAP PLC Consolidated Income Statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. (Unaudited, in thousands, other than per share amounts)
Q106 Q405 % Change
--------- --------- ---------
Revenues:
Management $620,069 $573,674 8.1%
Service and distribution 135,626 129,330 4.9%
Other 27,298 31,676 (13.8)%
--------- --------- ---------
Total revenues 782,993 734,680 6.6%
Third-party distribution,
service and advisory fees (198,874) (183,238) 8.5%
--------- --------- ---------
Net revenues 584,119 551,442 5.9%
--------- --------- ---------
Operating expenses:
Compensation 253,360 263,434 (3.8)%
Marketing 36,163 33,638 7.5%
Property and office 27,040 26,866 0.6%
Technology/telecommunications 32,065 31,581 1.5%
General and administrative 48,855 71,814 (32.0)%
Restructuring charge -- 75,690 N/A
--------- --------- ---------
Total operating expenses 397,483 503,023 (21.0)%
--------- --------- ---------
Operating profit 186,636 48,419 285.5%
Other income/(loss) 2,317 (9,304) N/A
Interest expense (17,256) (20,511) (15.9)%
--------- --------- ---------
Profit before taxation 171,697 18,604 822.9%
Taxation (63,430) (23,376) 171.3%
--------- --------- ---------
Profit/(loss) after taxation 108,267 (4,772) N/A
Minority interests (696) (256) 171.9%
--------- --------- ---------
Profit/(loss) for the period
attributable to equity
holders of the parent $107,571 ($5,028) N/A
========= ========= =========
Earnings per share:
---basic $0.14 ($0.01)
---diluted $0.13 ($0.01)
Earnings per share before
restructuring charge:
---basic $0.14 $0.07
---diluted $0.13 $0.07
Average shares outstanding:
---basic 790,847 794,511
---diluted 810,317 810,134
Ending Headcount 5,586 5,798
Q105 % Change
--------- ---------
Revenues:
Management $541,782 14.4%
Service and distribution 142,455 (4.8)%
Other 25,862 5.6%
--------- ---------
Total revenues 710,099 10.3%
Third-party distribution,
service and advisory fees (172,340) 15.4%
--------- ---------
Net revenues 537,759 8.6%
--------- ---------
Operating expenses:
Compensation 254,883 (0.6)%
Marketing 39,587 (8.6)%
Property and office 31,357 (13.8)%
Technology/telecommunications 36,987 (13.3)%
General and administrative 45,781 6.8%
Restructuring charge -- N/A
--------- ---------
Total operating expenses 408,595 (2.7)%
--------- ---------
Operating profit 129,164 44.5%
Other income/(loss) 2,667 (13.1)%
Interest expense (20,989) (17.8)%
--------- ---------
Profit before taxation 110,842 54.9%
Taxation (39,617) 60.1%
--------- ---------
Profit/(loss) after taxation 71,225 51.9%
Minority interests (146) 376.7%
--------- ---------
Profit/(loss) for the period
attributable to equity
holders of the parent $71,079 51.3%
========= =========
Earnings per share:
---basic $0.09
---diluted $0.09
Earnings per share before
restructuring charge:
---basic $0.09
---diluted $0.09
Average shares outstanding:
---basic 793,434
---diluted 800,668
Ending Headcount 6,586
AMVESCAP PLC Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (Unaudited, in thousands)
March 31, 2006 Dec 31, 2005
--------------- -------------
Non-current assets
Goodwill $4,217,995 $4,213,648
Intangible assets 94,658 98,971
Property and equipment 177,873 180,044
Deferred sales commissions 72,124 78,944
Deferred tax assets 155,601 150,600
Investments 162,369 149,410
--------------- -------------
4,880,620 4,871,617
Current assets
Trade and other receivables 1,266,121 749,181
Investments 1,360,404 1,202,076
Cash and cash equivalents 493,533 754,754
--------------- -------------
3,120,058 2,706,011
Total assets 8,000,678 7,577,628
Current liabilities
Current maturities of long-term debt (309,599) (10,045)
Trade and other payables (2,920,849) (2,461,006)
Provisions (69,379) (52,108)
--------------- -------------
(3,299,827) (2,523,159)
Non-current liabilities
Long-term debt (873,045) (1,212,191)
Deferred tax liabilities (36,141) (43,496)
Provisions (166,227) (182,479)
--------------- -------------
(1,075,413) (1,438,166)
Total liabilities (4,375,240) (3,961,325)
Net assets $3,625,438 $3,616,303
=============== =============
Equity
Share capital $82,169 $81,811
Share premium 106,850 84,968
Shares held by employee trusts (570,256) (413,473)
Exchangeable shares 430,687 431,778
Retained earnings 772,159 638,739
Other reserves 2,799,714 2,789,187
--------------- -------------
Equity attributable to equity holders
of the parent 3,621,323 3,613,010
Minority interests 4,115 3,293
--------------- -------------
Total equity $3,625,438 $3,616,303
=============== =============
AMVESCAP PLC 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: Statement of Changes in Equity (Unaudited, in thousands)
2006
-------------------
December 31, 2005 $3,616,303
Profit after taxation 108,267
Currency translation differences on
investments in overseas subsidiaries 18,393
Gains/losses on available-for-sale assets 1,501
-------------------
Total recognized income and expense
attributable to equity holders of the parent 128,161
-------------------
Total equity before transaction with owners 3,744,464
Share-based payment charge 15,199
Issuance of new shares 21,862
Increase in shares held by employee share
ownership trusts (156,783)
Total amounts attributable to minority
interests 696
-------------------
March 31, 2006 $3,625,438
-------------------
AMVESCAP PLC Consolidated Cash Flow Statement (Unaudited, in thousands)
Three Months Ended March
31,
---------------------------
2006 2005
--------------- -----------
Operating profit $186,636 $129,164
Amortization and depreciation 16,687 20,987
Interest paid, net of interest received
and other investment income/losses (20,709) (20,120)
Taxation (46,603) (22,457)
Change in other assets and liabilities (207,070) (82,439)
--------------- -----------
Net cash (outflow)/inflow from operating
activities (71,059) 25,135
Investing activities:
Capital expenditures, net of sales (8,650) (8,144)
Purchase of long-term investments, net (11,859) (4,487)
--------------- -----------
Net cash outflow from investing activities (20,509) (12,631)
Financing:
Net repayment of debt (40,000) (106,003)
Purchase of shares (153,727) --
Issuance of new shares 21,006 514
--------------- -----------
Net cash outflow from financing activities (172,721) (105,489)
Decrease in cash and cash equivalents (264,289) (92,985)
Foreign exchange 3,068 20
Cash and cash equivalents, beginning of
period 754,754 546,928
--------------- -----------
Cash and cash equivalents, end of period $493,533 $453,963
=============== ===========
Notes 1. Accounting policies The accounting policies applied to the information in the earnings release follow International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). in effect as of the date of this release and are consistent with those applied in the 2005 Annual Report. Refer to the 2005 Annual Report, available at www.amvescap.com, for a more detailed discussion of these policies. 2. Taxation A significant proportion of the tax charge arose from U.S., U.K., and 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. operations. The effective tax rate is 36.9% for the first quarter of 2006 (first quarter of 2005: 35.7%). 3. Earnings per share Basic earnings per share is based on the weighted average number of ordinary and exchangeable shares outstanding during the respective periods, excluding shares purchased and held by employee share ownership trusts. Diluted earnings per share takes into account the effect of the potential issuance of ordinary shares.
Three Months Ended March 31, 2006
--------------------------------------------------
(in thousands) Profit for the period Number of Per share
attributable to equity shares amount
holders of the parent
----------------------- --------------- ----------
Basic earnings per
share $107,571 790,847 $0.14
==========
Dilutive effect of
share-based awards -- 19,470
----------------------- --------------- ----------
Diluted earnings per
share $107,571 810,317 $0.13
======================= =============== ==========
Three Months Ended March 31, 2005
--------------------------------------------------
(in thousands) Profit for the period Number of Per share
attributable to equity shares amount
holders of the parent
----------------------- --------------- ----------
Basic earnings per
share $71,079 793,434 $0.09
==========
Dilutive effect of
share-based awards -- 7,234
----------------------- --------------- ----------
Diluted earnings per
share $71,079 800,668 $0.09
======================= =============== ==========
4. Acquisitions On January January: see month. 23, 2006, AMVESCAP announced the acquisition of PowerShares Capital Management LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("PowerShares"). The transaction, subject to certain conditions including approvals from the Board of Directors and the shareholders of PowerShares, is expected to close in the second or third quarter of 2006. The initial purchase consideration is estimated to be $100 million, to be paid at closing based on PowerShares assets under management of greater than $5 billion. Additional consideration of up to a maximum of $630 million is payable in the future depending on the achievement of various revenue and assets under management growth targets. 5. Dividends A final dividend in respect of 2005 of 5.5p per share (approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.10 per share, or $78.9 million, at an exchange rate of $1.75 per 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. 1.00: $76.7 million for ordinary shares and $2.2 million for exchangeable shares) has been proposed by the Board of Directors and will be paid, subject to shareholder approval, in May 2006. The dividend will be accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. when approved by shareholders. 6. Statutory financial statements The financial information shown in this earnings release is unaudited and does not constitute statutory financial statements. The 2005 Annual Report, which will be filed with 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. after the company's annual general meeting of shareholders, includes an unqualified audit report that does not contain a statement under section 237(2) or section 237(3) of the Companies Act 1985. AMVESCAP PLC Assets Under Management
(in billions) 1Q06 4Q05 % Change 1Q05
----------------------------------------------------------------------
Beginning Assets $386.3 $380.5 1.5% $382.1
Inflows 23.1 15.8 46.2% 17.2
Outflows (21.6) (19.5) 10.8% (19.7)
------- ------- -------
Net flows 1.5 (3.7) N/A (2.5)
Net flows in money market funds and
other 7.4 1.8 311.1% (1.9)
Market gains/reinvestment 15.3 8.9 71.9% (1.4)
Foreign currency 0.4 (1.2) N/A (0.9)
------- ------- -------
Ending Assets $410.9 $386.3 6.4% $375.4
======= ======= =======
Average long-term AUM 347.7 337.0 3.2% 336.0
Average money market AUM 53.6 43.9 22.1% 41.4
------- ------- -------
Average AUM $401.3 $380.9 5.4% $377.4
======= ======= =======
Net revenue yield on AUM 58bps 58bps 57bps
(annualized)(a)
----------------------------------------------------------------------
By channel: (in billions) Total Retail Institutional Private
Wealth
Management
----------------------------------------------------------------------
December 31, 2005 $386.3 $190.2 $179.8 $16.3
Inflows 23.1 16.4 5.5 1.2
Outflows (21.6) (14.4) (6.2) (1.0)
------- ------- ------------- -----------
Net flows 1.5 2.0 (0.7) 0.2
Net flows in money market
funds and other 7.4 (1.0) 8.4 --
Market gains/reinvestment 15.3 11.4 3.5 0.4
Foreign currency 0.4 0.3 0.1 --
------- ------- ------------- -----------
March 31, 2006 $410.9 $202.9 $191.1 $16.9
======= ======= ============= ===========
By asset class: (in Total Equity Fixed Balanced
billions) Income
-------------------------------------------------------------------
December 31, 2005(b) $386.3 $178.6 $47.2 $40.5
Inflows 23.1 12.5 6.0 2.0
Outflows (21.6) (13.9) (2.6) (2.6)
-------- -------- -------- ---------
Net flows 1.5 (1.4) 3.4 (0.6)
Net flows in money market
funds and other 7.4 -- -- --
Market gains/reinvestment 15.3 12.5 0.4 1.3
Foreign currency 0.4 0.3 -- 0.1
-------- -------- -------- ---------
March 31, 2006 $410.9 $190.0 $51.0 $41.3
======== ======== ======== =========
By asset class: (in Money Stable Alter-
billions) Market Value natives
------------------------------------------------------
December 31, 2005(b) $52.3 $45.7 $22.0
Inflows 0.6 1.0 1.0
Outflows (0.9) (1.0) (0.6)
--------- -------- --------
Net flows (0.3) -- 0.4
Net flows in money market
funds and other 7.4 -- --
Market gains/reinvestment -- 0.4 0.7
Foreign currency -- -- --
--------- -------- --------
March 31, 2006 $59.4 $46.1 $23.1
========= ======== ========
By client domicile: (in
billions) Total U.S. Canada U.K. Europe Asia
----------------------------------------------------------------------
December 31, 2005 $386.3 $235.6 $42.2 $53.6 $32.0 $22.9
Inflows 23.1 7.5 1.2 2.9 7.8 3.7
Outflows (21.6) (9.9) (2.4) (2.4) (4.4) (2.5)
------- ------- ------ ------ ------ ------
Net flows 1.5 (2.4) (1.2) 0.5 3.4 1.2
Net flows in money market
funds and other 7.4 7.5 -- -- -- (0.1)
Market gains/reinvestment 15.3 7.4 2.3 2.4 2.2 1.0
Foreign currency 0.4 -- -- 0.3 0.2 (0.1)
------- ------- ------ ------ ------ ------
March 31, 2006 $410.9 $248.1 $43.3 $56.8 $37.8 $24.9
======= ======= ====== ====== ====== ======
(a) Net revenue yield on AUM Aum (ä·ōōmˑ), n.pr 1. in Ayurveda, the subtle, noiseless cosmic vibration in which consciousness existed in the beginning, before the elements appeared. is equal to net revenue divided by average AUM. (b) The asset class beginning balances were adjusted to reflect certain asset reclassifications. |
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