Printer Friendly

T. ROWE PRICE ASSOCIATES REPORTS RECORD FIRST QUARTER RESULTS

 BALTIMORE, April 29 /PRNewswire/ -- T. Rowe Price Associates, Inc. (NASDAQ: TROW) today reported record quarterly revenues of $68.7 million for the three months ended March 31, 1993, an increase of 17 percent over the $58.5 million reported for the comparable quarter last year.
 Net income and earnings per share each grew 37 percent to new first quarter highs of $10.2 million and $.67 per share, respectively. These results compare favorably with net income of $7.4 million and earnings per share of $.49 in the comparable 1992 quarter. First quarter 1993 results include the previously announced $.04 per-share charge and $.02 per-share credit resulting from changes in accounting principles as of Jan. 1 for postretirement benefits and income taxes, respectively.
 In announcing these results, George J. Collins, president, noted, "Fees earned on record assets under management were the primary contributor to the company's strong performance." Assets under management in the T. Rowe Price mutual funds rose to $27.7 billion at March 31, 1993, up $1.5 billion from Dec. 31, 1992, and an increase of $5.3 billion from the year-ago quarter.
 Total assets under management grew to $43.8 billion, up $2.4 billion from Dec. 31 and $7.4 billion from the 1992 first quarter. Collins noted that almost $550 million of the growth in Price Fund assets since year- end is attributable to net cash inflows which are indicative of the continued strong demand from individuals for stock and bond funds. "Fund transfer agent activities and the defined contribution recordkeeping service account for most of the increase in administrative revenues," he added.
 Advertising and promotion expenses decreased $1.6 million from last year's first quarter but were still almost one-half million dollars higher than in the fourth quarter of 1992. The increase in other operating expenses is due to a greater number of employees, increased expenses to support the growing international asset base, and to higher costs associated with the firm's expanded facilities and its administrative services operations.
 With respect to the company's receivable from Mortgage and Realty Trust (MRT), Collins stated that a $953,000 interest payment had been received on March 31, 1993, and is included in the first quarter results. However, he referred to a press release on April 23, 1993, in which MRT disclosed that it was in violation of a financial covenant required by its debt indenture. Further, MRT stated it is likely to be unable to meet its minimum required payment at June 30, 1993. Accordingly, MRT has requested a waiver of the financial covenant default and announced that it intends to reach a restructuring agreement with its creditors and shareholders. As a result, it may become necessary for the creditors' committee (on which T. Rowe Price serves) to modify the terms and minimum repayment schedule of the debt or exercise available remedies under the indenture to protect the ultimate realization of the outstanding claims against MRT.
 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)
 Three months ended March 31 1993 1992
 Revenues:
 Investment advisory fees $ 48,163 $ 40,146
 Administrative fees 19,069 16,471
 Investment and other income 1,484 1,931
 Total 68,716 58,548
 Expenses:
 Compensation and related costs 25,956 23,010
 Advertising and promotion 7,050 8,614
 Depreciation, amortization and
 operating rentals of property
 and equipment 4,915 4,195
 Other administrative and general 12,141 9,632
 Total 50,062 45,451
 Income before income taxes and
 minority interests 18,654 13,097
 Provision for income taxes 7,068 4,991
 Income from consolidated companies 11,586 8,106
 Minority interests in
 consolidated subsidiaries 1,035 665
 Income before cumulative effects
 of changes in accounting 10,551 7,441
 principles
 Cumulative effects of changes in
 accounting principles for
 Income taxes 291 ---
 Postretirement benefits other
 than pensions (621) ---
 Net income 10,221 7,441
 Earnings per share $ .67 $ .49
 Dividends declared per share .21 .18
 Weighted average shares
 outstanding 15,228 15,206
 Assets under management at end of
 period (in millions) 43,804 36,422
 /delval/
 -0- 4/29/93
 /CONTACT: Steven E. Norwitz of T. Rowe Price Associates, 800-638-7890, ext. 2124/


CO: T. Rowe Price Associates, Inc. ST: Maryland IN: FIN SU: ERN

MJ-CC -- PH004 -- 2500 04/29/93 09:41 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 29, 1993
Words:745
Previous Article:AAI'S MURPHY RESIGNS
Next Article:MAIL BOXES ETC. OPENS ITS FIRST CENTER IN ITALY; MORE THAN 2,000 MBE CENTERS NOW OPEN WORLDWIDE
Topics:


Related Articles
T. ROWE PRICE ASSOCIATES REPORTS SECOND QUARTER RESULTS
T. ROWE PRICE ASSOCIATES REPORTS RECORD SECOND QUARTER RESULTS
T. ROWE PRICE ASSOCIATES REPORTS RECORD THIRD QUARTER RESULTS
T. ROWE PRICE ASSOCIATES REPORTS RECORD FIRST QUARTER RESULTS
T. ROWE PRICE ASSOCIATES REPORTS RECORD FIRST QUARTER RESULTS
T. ROWE PRICE ASSOCIATES REPORTS RECORD QUARTERLY RESULTS
T. ROWE PRICE ASSOCIATES REPORTS RECORD 1995 REVENUES AND EARNINGS
T. ROWE PRICE ASSOCIATES REPORTS RECORD FIRST QUARTER RESULTS
T. ROWE PRICE ASSOCIATES REPORTS RECORD QUARTERLY RESULTS
T. Rowe Price Associates Reports Record Quarterly Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters