AMVESCAP Reports Results for Three Months Ended March 31, 2007.LONDON -- AMVESCAP (NYSE NYSE See: New York Stock Exchange :AVZ) reported that 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. increased by 27.1% for the three months ended March 31, 2007 to $237.2 million (three months ended March 31, 2006: $186.6 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 $0.19 for the three months ended March 31, 2007 (three months ended March 31, 2006: $0.13). Operating profit decreased 5.2% from the three months ended December 31, 2006; the three months ended December 31, 2006 included the benefit of $21.8 million of insurance recoveries. "With first-quarter operating profits rising to $237.2 million, a 27.1% increase over the same period last year, higher margins, positive net fund flows, and record 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. , AMVESCAP is making good progress in our multi-year strategic plan for the company," 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. "Actions we continue to take to strengthen our business and work more effectively as a single, global organization will allow us to continue to build on this solid momentum." [TABLE OMITTED] (a) Net revenues represent total revenues less third-party distribution, service and advisory fees. (b) Net operating margin Net operating margin The ratio of net operating income to net sales. is equal to operating profit divided by net revenues. Quarterly Earnings Summary Net revenues for the three months ended March 31, 2007 were $670.7 million (three months ended December 31, 2006: $655.3 million; three months ended March 31, 2006: $584.1 million). Net revenues for the three months ended March 31, 2007 included performance fees of $18.8 million (three months ended December 31, 2006: $25.9 million; three months ended March 31, 2006: $33.2 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 $433.5 million for the three months ended March 31, 2007 (three months ended December 31, 2006: $405.0 million; three months ended March 31, 2006: $397.5 million). Operating expenses for the fourth quarter of 2006 included the benefit of $21.8 million of insurance recoveries. Net Debt and Cash Flow Net debt (total debt of $1,294.1 million, less cash and cash equivalents of $775.7 million, which excludes client cash of $3.3 million) as of March 31, 2007 was $518.4 million compared to $486.5 million as of December 31, 2006, and $861.1 million as of March 31, 2006. On January 15, 2007, the company repaid $300.0 million of 5.9% senior notes. Subsequent to the end of the quarter, on April 17, 2007, the company issued $300.0 million five-year 5.625% senior notes. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering will be used to repay amounts outstanding under our credit facility and for general corporate purposes. Assets Under Management Assets under management (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. ) at March 31, 2007, were $471.2 billion (December 31, 2006: $462.6 million; March 31, 2006: $410.9 million). Average AUM during the first quarter of 2007 were $466.9 billion, compared to $452.7 billion for the fourth quarter of 2006 and $401.3 billion for the first quarter of 2006. Long-term net inflows for the three months ended March 31, 2007 were $0.7 billion, with inflows of $30.4 billion and outflows of $29.7 billion. For the three months ended December 31, 2006, long-term net outflows were $4.5 billion. For the three months ended March 31, 2006, long-term net inflows were $1.5 billion. Money market net outflows in the three months ended March 31, 2007 were $0.8 billion (not included in long-term flows above). Further analysis of AUM is included in the supplemental schedules 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, AIM Trimark, Atlantic Trust, 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. , PowerShares and WL Ross 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, Thursday, April 26, 2007, 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: 1-517-268-4676 or 1-888-455-2053 for U.S. callers. An audio replay of the conference call will be available until Friday, May 4, 2007, at 10:00 p.m. BST (5:00pm EDT) by calling 1-203-369-3286 or 1-800-469-5420 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" 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 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 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] 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). (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ) in effect as of the date of this release and are consistent with those applied in the 2006 Annual Report. Refer to the 2006 Annual Report, available at www.amvescap.com, for a more detailed discussion of these policies. IFRS comprise standards and interpretations approved by the International Accounting Standards Board  An editor has expressed concern that this article or section is .Please help improve the article by adding information and sources on neglected viewpoints, or by summarizing and and its predecessors. As of March 31, 2007, all issued IFRS were also adopted by the European Commission, with the exception of IFRS 8, "Operating Segments," which is effective for periods commencing January 1, 2009, but which is not expected to result in changes to the company's single-segment approach, and the amendment to IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 23, "Borrowing Costs," which is also effective for periods commencing January 1, 2009, and which is not expected to have a material impact on the company's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . IFRS 7, "Financial Instruments: Disclosures," and the related amendment to IAS 1, "Presentation of Financial Statements, Capital Disclosures," are effective for periods commencing January 1, 2007. The disclosure requirements of these standards will be reflected in the company's 2007 Annual Report. IFRIC IFRIC International Financial Reporting Interpretations Committee IFRIC International Financial Reporting Issues Committee 11, "Group and Treasury Share Transactions," is effective for annual periods commencing March 1, 2007, and has provided additional guidance for accounting for share-based payment transactions upon award vesting between the parent and its subsidiaries. The application of IFRIC 11 will not have a material impact on the company's consolidated financial statements. Certain prior year balance sheet amounts have been reclassified to conform to the current year presentation of those amounts. 2. Taxation A significant proportion of the tax charge arose from U.S., U.K., and Canadian operations. The effective tax rate was 34.5% for the first quarter of 2007 (first quarter of 2006: 36.9%). 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. [TABLE OMITTED] [TABLE OMITTED] 4. Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. On January 15, 2007, $300.0 million of 5.9% senior notes matured. The company utilized its credit facility to satisfy the maturity and on April 17, 2007 issued $300.0 million of 5.625% senior notes. The notes will mature on April 17, 2012 and pay interest semi-annually on April 17 and October 17. 5. Purchases of ordinary shares The company's global stock plan trust purchased 9.4 million ordinary shares at a cost of $114.2 million during the first quarter. These shares will be held to satisfy existing and future employee share awards under share-based payment programs. 6. Dividends A final dividend in respect of 2006 of $0.104 per share (approximately $86.5 million: $84.5 million for ordinary shares and $2.0 million for exchangeable shares) has been proposed by the Board and will be paid, subject to shareholder approval, on May 30, 2007. The dividend will be accrued when approved by shareholders at the Annual General Meeting of Shareholders on May 23, 2007, and charged to retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. at that time. 7. Statutory financial statements The financial information shown in this earnings release is unaudited and does not constitute statutory financial statements. The 2006 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 in accordance with Section 235 of the Companies Act 1985. This audit report does not contain a statement under section 237(2) or section 237(3) of the Companies Act 1985. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] (a) Net revenue yield on AUM is equal to net revenue divided by average AUM. (b) The asset class beginning balances were adjusted to reflect certain asset reclassifications. (c) Includes PowerShares's ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). AUM ($9.7 billion at March 31, 2007), which are primarily invested in equity securities. AMVESCAP PLC Additional Income and Expense Information The quarterly results include the following items: [TABLE OMITTED] |
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