EATON VANCE CORP. REPORT FOR THE THREE MONTHS AND SIX MONTHS ENDING APRIL 30, 1993
BOSTON, May 27 /PRNewswire/ -- Eaton Vance Corp. earned $7.2 million in the second three months of its 1993 fiscal year. These earnings were 82 percent above the $4.0 million reported for the same period a year ago. On a per share basis, the earnings were 86 cents, 62 percent higher than the 53 cents earned in the second quarter of 1992. Earnings for the first six months of the fiscal year were $12.1 million, 40 percent above earnings of $8.7 million in the first six months of 1992. Six months earnings per share of $1.48 were 28 percent above last year's $1.16 per share.
Assets under management of $12.9 billion on April 30, 1993, were 24 percent higher than the $10.5 billion a year earlier. Sales of mutual fund shares were the primary contributor to the increase in assets. Sales of $1.1 billion in the second quarter set a new company record and exceeded sales in the second quarter a year ago by 95 percent. Sales for the first six months of fiscal 1993 were $1.9 billion, 62 percent higher that the same period a year ago. Redemptions during the first six months of this year were $625 million, compared with $640 million in the first six months of 1992. As a percentage of assets, the annualized redemption rate for the first six months of 1993 was 12 percent. Average assets under management were 24 percent higher in the second quarter of this year than in the second quarter of the preceding year. Revenues increased by 35 percent. Increased marketing efforts were the primary contributors to both the 21 percent increase in compensation and the 40 percent increase in other expenses. Amortization of deferred sales commissions increased 49 percent over the preceding year.
The company's gold mining activities contributed 16 cents of earnings per share in the second quarter and a loss of 14 cents in the first quarter for a 2 cent gain over the six month period. In the first half of fiscal 1992, a gain of 14 cents per share in the first quarter and loss of 10 cents per share in the second quarter combined to provide 4 cents of earnings per share.
Financial Condition and Liquidity
In April a pubic offering and sale of 1.38 million shares of Eaton Vance Corp. non-voting common stock increased the company's shares outstanding to 9.1 million. The net proceeds of $44 million were used to pay the increased commissions to dealers associated with the strong sales of Eaton Vance funds and to reduce notes payable from $56.8 million at the beginning of the quarter to $26 million on April 30, 1993. The continued sales success of spread commission mutual funds raised the company's investment in deferred sales commissions to $197 million on April 30 from $127 million at the end of the second quarter of 1992. The company's effective tax rate in the second quarter increased to 44 percent from 41 percent in the first quarter of this year. Variations in the company's effective tax rate are primarily the result of unrealized losses in gold mining investments. These losses are not deductible for income tax purposes. At its April meeting, the board of directors voted to increase the quarterly dividend payable to common shareholders from 11 cents to 12 cents per share. Three Months Ended April 30, 1993 1992 Net Income $7,184,000 $3,950,000 Net Income per Share $0.86 $0.53 Average Shares Outstanding 3,384,000 7,470,000 Six Months Ended April 30, Net Income $12,108,000 $8,657,000 Net Income per Share $1.48 $1.16 Average Shares Outstanding 8,177,000 7,456,000 -0- 5/27/93 /CONTACT: Curtis H. Jones of Eaton Vance, 617-482-8260/
CO: Eaton Vance Corporation ST: Massachusetts IN: FIN SU: ERN
DJ -- NE014 -- 3058 05/27/93 15:11 EDT
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|Date:||May 27, 1993|
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