T. ROWE PRICE ASSOCIATES REPORTS SECOND QUARTER RESULTS
T. ROWE PRICE ASSOCIATES REPORTS SECOND QUARTER RESULTS BALTIMORE, July 29 /PRNewswire/ -- T. Rowe Price Associates, Inc.
(NASDAQ: TROW), today reported record quarterly revenues of $59.0 million for the three months ended June 30, 1992, an increase of 15 percent over the $51.1 million reported last year. Net income and earnings per share grew 9 percent and 8 percent, respectively, to $8.4 million and $.56 per share versus net income of $7.7 million and earnings per share of $.52 in the 1991 second quarter.
Net income for the first six months of 1992 totaled $15.8 million, or $1.05 per share, on revenues of $117.6 million. This compares with net income of $13.3 million, or $.90 per share, on first half 1991 revenues of $96.7 million. In announcing these results, George J. Collins, president, noted that "fees earned on record assets under management and from administrative services continue to be the primary drivers behind the company's strong revenue growth." Total assets under management grew to $38.4 billion, up 19 percent from June 30, 1991. Assets under management in the T. Rowe Price mutual funds rose to a record $23.7 billion at June 30, 1992, up $4.4 billion from June 30, 1991. The growth in fund assets during the quarter is primarily attributable to a record net cash inflow of $1.0 billion, reflecting increasing investor interest in both stock and bond funds. "Mutual fund transfer agent services, which became fully operational in the third quarter of 1991, and growth in defined contribution record- keeping services account for most of the increase in administrative revenues," Collins added. Investment income was off primarily due to losses from certain partnership investments during the second quarter this year versus gains last year. Lower interest rates in 1992 also contributed to the decline. Because of the favorable environment for mutual funds, advertising and promotion expenses continued at high levels, though at a more moderate pace than in the preceding two quarters. The balance of the increase in operating expenses is primarily due to the firm's expanded staff, facilities, and administrative services operations. In closing, Collins noted that "first-half earnings are at a historic high and investor interest remains strong. If the financial markets remain at or near current levels, the company should enjoy a successful 1992." 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 (Unaudited) (In thousands, except per-share amounts) Periods ended Three Months Six Months June 30 1992 1991 1992 1991 Revenues: Investment advisory fees $ 42,521 $ 36,364 $ 82,667 $ 69,103 Administrative fees 15,492 11,750 31,963 23,237 Investment and other inc. 997 2,999 2,928 4,323 Total 59,010 51,113 117,558 96,663 Expenses: Compensation and related costs 23,048 19,953 46,058 39,374 Administrative and general 14,823 13,658 28,650 25,717 Advertising and promotion 5,731 3,872 14,345 7,919 Total 43,602 37,483 89,053 73,010 Income before income taxes and minority interests 15,408 13,630 28,505 23,653 Provision for income taxes 5,873 5,123 10,864 8,931 Income from consolidated companies 9,535 8,507 17,641 14,722 Minority interests in consolidated subsidiaries 1,147 791 1,812 1,388 Net income $ 8,388 $ 7,716 $ 15,829 $ 13,334 Earnings per share $ 0.56 $ 0.52 $ 1.05 $ 0.90 Dividends declared per share $ 0.18 $ 0.16 $ 0.36 $ 0.32 Weighted average shares outstanding 14,991 14,902 15,098 14,825 -0- 7/29/92 /CONTACT: Steven E. Norwitz of T. Rowe Price, 410-547-2124, or toll free, 800-638-7890, ext. 2124/ (TROW) CO: T. Rowe Price Associates, Inc. ST: Maryland IN: FIN SU: ERN
GK -- NY018 -- 4461 07/29/92 09:33 EDT
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|Date:||Jul 29, 1992|
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