T. ROWE PRICE ASSOCIATES REPORTS RECORD 1991 RESULTS
T. ROWE PRICE ASSOCIATES REPORTS RECORD 1991 RESULTS BALTIMORE, Jan. 30 /PRNewswire/ -- T. Rowe Price Associates, Inc.
(NASDAQ: TROW) today reported record annual revenues for 1991 of $205.2 million, an increase of 21 percent over the $170.0 million reported last year. Net income and earnings per share grew 45 percent and 44 percent, respectively, to new highs of $30.4 million and $2.04 per share compared with net income of $20.9 million and earnings per share of $1.42. Included in the 1990 results was a $4 million, or $.27 per-share, aftertax charge made in conjunction with the acquisition of defaulted Mortgage and Realty Trust (MRT) debt securities.
Net income for the fourth quarter 1991 totalled $8.4 million, or $.56 per share, on revenues of $55.9 million. This compares with 1990 fourth quarter net income of $4.0 million, or $.27 per share, on revenues of $40.1 million. In announcing these results, George J. Collins, president, noted that "fees earned on record assets under management and revenues from expanded administrative services provided to the company's clients were the primary contributors to the strong 1991 performance. Assets under management in the T. Rowe Price mutual funds rose to $21.5 billion at December 31, 1991, up $4.1 billion from $17.4 billion at Dec. 31, 1990. Total assets under management grew to $35.6 billion from $29.4 billion at year-end 1990. The strong financial markets, net cash flows of $1.3 billion into the Price mutual funds, and private account growth in the international and GIC areas were the major factors in this year's asset and advisory fee increases. The retail transfer agent function, which became fully operational in the third quarter, and the expanded defined contribution record keeping activities added significant new revenues in the administrative services area." An increase in the number of employees and high costs associated with the firm's expanded administrative services operation were the primary reasons for the rise in operating expenses. However, the mutual fund transfer agent function, as expected, has begun to generate substantial revenues. Advertising expenses for the Price mutual funds also increased to new high levels as the market climate for stock and bond funds strengthened during the second half of the year. In closing, Collins stated that "we are pleased with the 1991 results and, based on the strong start of the financial markets in 1992, are looking forward to another successful year." T. Rowe Price serves as investment adviser to the T. Rowe Price family of no-load mutual funds and to institutional and individual clients. T. ROWE PRICE ASSOCIATES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per-share amounts) Periods ended Three months Year Dec. 31, 1991 1990 1991 1990 Revenues Investment advisory fees $38,834 $31,698 $145,394 $127,429 Administrative fees 14,338 9,148 50,820 38,495 Investment and other income (loss) 2,762 (793) 8,992 4,107 55,934 40,053 205,206 170,031 Expenses Compensation and related costs 22,314 17,280 82,414 67,639 Administrative and general 13,300 12,062 52,005 44,108 Advertising and promotion 6,156 3,627 17,318 14,084 Charge relating to MRT debt securities -- -- -- 6,531 41,770 32,969 151,737 132,362 Income before income taxes and minority interests 14,164 7,084 53,469 37,669 Provision for income taxes 5,072 2,744 20,077 14,279 Income from consolidated companies 9,092 4,340 33,392 23,390 Minority interests in consolidated subsidiaries 667 376 2,955 2,469 Net income $ 8,425 $ 3,964 $30,437 $20,921 Earnings per share $ 0.56 $ 0.27 $ 2.04 $ 1.42 Dividends declared per share $ 0.18 $ 0.16 $ 0.66 $ 0.61 Weighted average shares outstanding 15,049 14,647 14,912 14,749 -0- 1/30/92 /CONTACT: Steven E. Norwitz of T. Rowe Price Associates, 301-547-2124, or 800-638-7890, ext. 2124/ (TROW) CO: T. Rowe Price Associates Inc. ST: Maryland IN: FIN SU: ERN SH -- NY024 -- 5115 01/30/92 09:37 EST
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|Date:||Jan 30, 1992|
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