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 BALTIMORE, Oct. 29 /PRNewswire/ -- T. Rowe Price Associates, Inc. (NASDAQ-NMS: TROW) today reported record quarterly revenues of $78.8 million for the three months ended Sept. 30, 1993, an increase of 27 percent over the $62.2 million reported for the comparable quarter last year.
 Net income and earnings per share grew 17 percent and 15 percent, respectively, to new quarterly highs of $12.0 million and $.78 per share versus $10.3 million and $.68 in the 1992 third quarter.
 Year-to-date net income totaled $33.8 million, or $2.21 per share, on revenues of $220.2 million. This compares with net income of $26.1 million, or $1.73 per share, on comparable 1992 revenues of $179.7 million. The 1993 results include the previously announced first quarter $.02 per-share net charge for the effects of changes in accounting principles.
 In announcing these results, George J. Collins, president, noted, "Fees earned on record assets under management continued to be the primary contributor to the company's strong revenue growth. The international arena has been particularly good for us, having accelerated as the year has progressed." Total assets under management have increased nearly $8.5 billion since Dec. 31, 1992, to a record of almost $49.9 billion, including nearly $31.8 billion in the T. Rowe Price mutual funds. International assets under management by Rowe Price-Fleming International (RPFI), the company's 50 percent-owned consolidated subsidiary, have increased 63 percent since year end to $12.1 billion, including $6.4 billion in the Price funds.
 Average assets under management in the Price funds during the quarter were $28.7 billion. Net cash inflows to the Price funds include $1.1 billion during the third quarter and $2.6 billion in the first nine months. The defined contribution record keeping service and fund transfer agent activities account for most of the increase in administrative revenues. The increase in operating expenses from the comparable 1992 periods is primarily due to a 10 percent increase in the number of employees and greater administrative costs to support the company's growing operations as well as to higher research costs associated with the international assets under management, which have grown substantially this year.
 While income after expenses was up 25 percent over last year's third quarter, the retroactive effect to Jan. 1, 1993, of the federal tax rate increase from 34 percent to 35 percent and the increased minority interests in the net income of RPFI held the increase in net income to 17 percent.
 As announced on Aug. 13, 1993, the company sold its entire Mortgage and Realty Trust receivable and recognized a pretax loss of $112,000 during the third quarter. "The consummation of this transaction substantially increased the company's liquidity and was an important long-term positive development," Collins added. The decline in investment and other income is attributable to this loss as well as lower yields on invested cash reserves.
 On Oct. 11, 1993, the company began a proxy solicitation for a special stockholders' vote to be held on Nov. 10, 1993. The company's board of directors has recommended that the stockholders approve an increase in authorized shares ($.20 par value) from 25 million to 48 million and that a two-for-one stock split occur at the close of business on Nov. 30, 1993, based on stockholders of record on Nov. 10.
 In closing, Collins stated, "We are pleased with the company's year-to-date performance. Revenue and earnings are at historic highs, and, most important, investor interest in our products remains very strong. Based on record assets under management, significant net cash inflows to the Price funds, and financial market performances thus far in the fourth quarter, we remain optimistic about the company's prospects for the year."
 T. Rowe Price serves as an investment adviser to the T. Rowe Price family of no-load mutual funds and to institutional and individual clients.
 Condensed Consolidated Statements of Income
 (In thousands, except as noted)
 Periods ended Three months Nine months
 Sept. 30 1993 1992 1993 1992
 Investment advisory fees $59,596 $45,001 $159,295 $127,668
 Administrative fees 17,966 15,495 56,060 47,458
 Investment and other income 1,203 1,693 4,805 4,621
 Total 78,765 62,189 220,160 179,747
 Compensation and related costs 28,477 23,407 81,690 69,465
 Advertising and promotion 6,835 5,186 20,093 19,531
 Depreciation, amortization and
 operating rentals of property
 and equipment 5,537 4,778 15,747 12,901
 Other administrative and general 14,828 10,305 39,942 30,832
 Total 55,677 43,676 157,472 132,729
 Income before income taxes and
 minority interests 23,088 18,513 62,688 47,018
 Provision for income taxes 9,357 7,156 24,443 18,020
 Income from consolidated companies 13,731 11,357 38,245 28,998
 Minority interests in
 consolidated subsidiaries 1,693 1,048 4,120 2,860
 Income before cumulative effects
 of changes in accounting
 principles 12,038 10,309 34,125 26,138
 Cumulative effects of changes in
 accounting principles for
 Postretirement benefits other
 than pensions --- --- (621) ---
 Income taxes --- --- 291 ---
 Net income 12,038 10,309 33,795 26,138
 Earnings per share $ .78 $ .68 $2.21 $1.73
 Dividends declared per share .21 .18 .63 .54
 Weighted average shares
 outstanding 15,381 15,050 15,261 15,082
 Assets under management at end of
 period (in millions) --- --- 49,887 39,867
 -0- 10/29/93
 /CONTACT: Steven E. Norwitz, 410-547-2124, or Rowena M. Itchon, 410-547-2242, of T. Rowe Price Associates/

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

JM-MJ -- PH004 -- 8380 10/29/93 09:32 EDT
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Publication:PR Newswire
Date:Oct 29, 1993

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