Oppenheimer Capital, L.P. reports 23.1% increase in net income per unit for the second fiscal quarter.NEW YORK--(BUSINESS WIRE)--Nov. 17, 1995--Oppenheimer Capital, L.P. (The "Partnership") (NYSE NYSE See: New York Stock Exchange :OCC OCC See: Options Clearing Corporation OCC See Options Clearing Corporation (OCC). ) today reported record net income of $9,841,000 or $.64 per unit for the second fiscal quarter ended Oct. 31, 1995 compared to net income of $7,969,000 or $.52 per unit for the fiscal quarter ended Oct. 31, 1994, a per unit increase of 23.1%. For the six months ended Oct. 31, 1995, net income increased to a record $19,018,000 or $1.24 per unit, compared to $15,845,000 or $1.04 per unit for the six months ended Oct. 31, 1994, a pair unit increase of 19.2%. The Partnership's sole business is the ownership of a 67.3% general partnership interest in Oppenheimer Op·pen·hei·mer , J(ulius) Robert 1902-1967. American physicist who directed the Los Alamos, New Mexico, laboratory during the development of the first atomic bomb (1942-1945). Noun 1. Capital (the "Operating Partnership"), a leading investment management firm. The Partnership's net income is based on its proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. share of the Operating Partnership's net income plus interest income, primarily from a $32,193,000 par value 10% note. DISTRIBUTIONS As previously announced, the Partnership increased its regular quarterly distribution rate twice during the current fiscal year from $.50 to $.55 and then to $.625 per unit, or a new annual rate of $2.50 per unit. Cash distribution are based on cash flow, which represents a combination of net income plus certain expenses which do not require the outlay of cash, principally amortization of goodwill and restricted unit compensation expense. The partnership expects to continue its policy of reviewing the quarterly distribution rate and making changes, as appropriate, based on earnings and on the business outlook for the Operating Partnership. In addition, the Partnership pays special distributions as warranted from any excess cash flow available at fiscal year end. The Partnership intends to declare TO DECLARE. To make known or publish. By tho constitution of the United States, congress have power to declare war. In this sense the word, declare, signifies, not merely to make it known that war exists, but also to make war and to carry it on. 4 Dall. 37; 1 Story, Const. Sec. a special distribution of part of the net gain on the planned acquisition of the assets of 12 of the Operating Partnership's Quest for Verb 1. quest for - go in search of or hunt for; "pursue a hobby" quest after, go after, pursue look for, search, seek - try to locate or discover, or try to establish the existence of; "The police are searching for clues"; "They are searching for the Value Funds by Oppenheimer Management Corporation (OMC OMC Organisation Mondiale du Commerce (French: WTO) OMC Organización Mundial del Comercio (Spanish: World Trade Organization) OMC Organização Mundial do Comércio ). RESULTS OF THE OPERATING PARTNERSHIP Joseph M. La Motta, Oppenheimer Capital's president and chief executive officer, reported that the Operating Partnership reached new highs for 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. , investment management fee revenue and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . o Total assets under management were $36.8 billion at Oct. 31, 1995, up 25.7% from $29.2 billion at Oct. 31, 1994. o Investment management fee revenue for the quarter ended Oct. 31, 1995 increased 26.4% to $38.2 million from $30.2 million for the year earlier period. For the six months ended Oct. 31, 1995, investment management fee revenue increased 22.6% to $73.9 million from $60.3 million for the six months ended Oct. 31, 1994. o Operating income for the quarter ended Oct. 31, 1995 rose 24.4% to $15.2 million from $12.2 million for the year earlier period. For the six months ended Oct. 31, 1995, operating income increased 21.0% to $29.2 million from $24.1 million from the six months ended Oct. 31, 1994. La Motta stated, "We are extremely pleased with the results of the first six months of our fiscal year. Assets under management and investment management fee revenue continued to benefit from the stock market rally and better-than-market performance for portfolios under our management. In addition, we continue to experience growth in our traditional business, the management of separate accounts for large financial institutions and high-net-worth individual investors, as well as our newer businesses, including mutual funds and wrap fee accounts. For the six months, we added net new assets under management and additions from existing accounts amounting to $1.4 billion with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. fee income of $7.6 million." Year to date results demonstrated the strength and diversity of the Operating Partnership's revenue stream. Record results were achieved despite reduced revenue from certificate of deposit distribution. As previously announced on Aug. 18, 1995, OMC has signed a definitive agreement whereby OMC will, subject to certain conditions, acquire the assets of Oppenheimer Capital's 12 Quest for Value open-end o·pen-end adj. 1. Having no definite limit of duration or amount: an open-end contract. 2. mutual funds, with total assets, at Oct. 31, 1995, of $1.7 billion. The transaction has been approved by the Boards of the Oppenheimer Funds and the Quest for Value Funds and Quest for Value Funds' shareholders. Oppenheimer Capital's personnel who manage these funds will continue to manage the six equity funds with total assets at Oct. 31, 1995 of $1.35 billion after the closing of the transaction. The other six funds will be merged into comparable Oppenheimer Funds. The purchase price for the acquisition will be based primarily on a formula taking into account the assets of the funds at closing. As of Oct. 31, 1995, that portion of the purchase price would be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $39.9 million. An additional payment of up to $3.9 million may be made on the first anniversary of the closing if the assets of the merged Quest for Value fixed income funds are at stated levels. On a continuing basis Oppenheimer Capital will receive advisory fees based on fund assets Fund assets The total value of a portfolio's securities, cash, and other holdings, minus any outstanding debts. . At. Oct. 31, 1995 the annualized advisory fee would be $5.2 million. The transaction is expected to be completed by Nov. 24, 1995. At that time, Quest for Value Distributors will discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: its mutual fund distribution operation and OMC will begin to distribute the six remaining equity funds. La Motta added, "This transaction will allow Oppenheimer Capital to concentrate on investment management while capitalizing on the extensive distribution capabilities of Oppenheimer Management Corporation." -0-
Oppenheimer Capital L.P.
(67.3% General Partnership Interest in Oppenheimer Capital)
Financial Information
(in 000's, except for per unit information)
Three Months Ended Six Months Ended
October 31, October 31,
1995 1994 1995 1994
Total revenues $10,527 $ 9,017 $20,389 $17,870 Net income $ 9,841 $ 7,969 $19,018 $15,845 Net income per unit $.64 $.52 $1.24 $1.04 Distributions declared per unit $.625 $.50 $1.175 $1.00 Weighted average units outstanding during the period 15,240 15,137 15,237 15,136 -0- CONTACT: Oppenheimer Capital, L.P. Sheldon Siegel Sheldon Siegel (born July 14, 1958) is an American novelist and author best known for his works of modern legal drama. Siegel graduated with a Juris Doctor from the Boalt Hall School of Law at the University of California, Berkeley in 1983. , 212/504-1610 |
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