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T. ROWE PRICE ASSOCIATES REPORTS RECORD SECOND QUARTER RESULTS

 BALTIMORE, July 29 /PRNewswire/ -- T. Rowe Price Associates, Inc. (NASDAQ: TROW) today reported record quarterly revenues of $72.7 million for the three months ended June 30, 1993, an increase of 23 percent over the $59.0 million reported for the comparable quarter last year.
 Net income and earnings per share grew 38 percent and 36 percent, respectively, to new quarterly highs of $11.5 million and $.76 per share vs. net income of $8.4 million and earnings per share of $.56 in the 1992 second quarter.
 Net income for the first six months of 1993 totaled $21.8 million, or $1.43 per share, on revenues of $141.4 million. This compares with net income of $15.8 million, or $1.05 per share, on first half 1992 revenues of $117.6 million. The 1993 results include the previously announced first quarter $.02 per-share net charge from changes in accounting principles.
 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." Total assets under management have increased nearly $8.2 billion in the last year to a record of almost $46.6 billion, including nearly $29.4 billion in the T. Rowe Price mutual funds. Average assets under management in the Price funds during the second quarter were $28.4 billion. Net cash inflows to the Price funds include $900 million during the second quarter and $1.5 billion in the first half. "Fund transfer agent activities and the defined contribution recordkeeping service account for most of the increase in administrative revenues," he added.
 Increased investment income over the prior year's quarter was primarily due to gains from partnership investments during this year's quarter vs. losses last year. The increase in operating expenses is due to a 10 percent increase in the number of employees, higher administrative costs to support the record $9.7 billion in international assets under management, and greater expenses of the expanded facilities and administrative services operations.
 With respect to the company's receivables from Mortgage and Realty Trust (MRT), Collins stated that a $1,093,000 interest payment had been received on June 30, 1993, and is included in the second quarter results; however, MRT was unable to meet its required principal payment at June 30. In a press release of July 21, 1993, MRT disclosed that it was in default under its debt indenture; however, MRT and its creditors have agreed upon a standstill period that ends July 31. MRT has requested an additional standstill period in which it hopes that a consensual restructuring of its debt obligations can be reached. Therefore, it will be necessary for the creditors' committee (on which T. Rowe Price serves) to restructure the indebtedness or exercise available remedies under the indenture to protect the realization of the claims against MRT.
 T. Rowe Price serves as investment advisor 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 as noted)
 Periods ended Three months Six months
 June 30 1993 1992 1993 1992
 Revenues:
 Investment advisory fees $51,536 $42,521 $99,699 $82,667
 Administrative fees 19,025 15,492 38,094 31,963
 Investment and other income 2,118 997 3,602 2,928
 Total 72,679 59,010 141,395 117,558
 Expenses:
 Compensation and related costs 27,257 23,048 53,213 46,058
 Advertising and promotion 6,208 5,731 13,258 14,345
 Depreciation, amortization and
 operating rentals of property
 and equipment 5,295 3,928 10,210 8,123
 Other administrative and general 12,973 10,895 25,114 20,527
 Total 51,733 43,602 101,795 89,053
 Income before income taxes and
 minority interests 20,946 15,408 39,600 28,505
 Provision for income taxes 8,018 5,873 15,086 10,864
 Income from consolidated companies 12,928 9,535 24,514 17,641
 Minority interests in
 consolidated subsidiaries 1,392 1,147 2,427 1,812
 Income before cumulative effects
 of changes in accounting
 principles 11,536 8,388 22,087 15,829
 Cumulative effects of changes in
 accounting principles for
 Postretirement benefits other
 than pensions --- --- (621) ---
 Income taxes --- --- 291 ---
 Net income 11,536 8,388 21,757 15,829
 Earnings per share $ .76 $ .56 $1.43 $1.05
 Dividends declared per share .21 .18 .42 .36
 Weighted average shares
 outstanding 15,171 14,991 15,199 15,098
 Assets under management at end of
 period (in millions) --- --- 46,585 38,427
 /delval/
 -0- 7/29/93
 /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 -- PH007 -- 7150 07/29/93 09:28 EDT
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Date:Jul 29, 1993
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