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UNITED ASSET MANAGEMENT CORPORATION REPORTS RECORD FOURTH QUARTER AND FULL YEAR RESULTS

 BOSTON, Feb. 16 /PRNewswire/ -- United Asset Management Corporation (NYSE: UAM), a leading provider of institutional investment services, today reported record financial results for the fourth quarter and full year ended Dec. 31, 1992 as assets under management crossed the $75 billion mark. Fourth quarter net income increased by 42 percent, operating income was up 33 percent, revenues rose 28 percent and fully diluted earnings per share increased by 30 percent to $.43 vs. $.33 in the 1991 fourth quarter.
 Fourth quarter net income increased to $10.0 million last year, as operating income increased to $22.5 million in the 1992 quarter from $16.9 million in the 1991 quarter. Revenues rose to $85.9 million from $67.1 million in the 1991 quarter. Operating cash flow (cash flow provided by operations before working capital changes) for the quarter was $22.7 million, a 37 percent increase from $16.6 million last year. Amortization of cost assigned to contracts acquired on a per share basis was $.47, up from $.35 in the 1991 fourth quarter. The 1991 results of operations have been restated to reflect the February, 1992 acquisition of Acadian Asset Management, Inc., which has been accounted for as a pooling of interests.
 "The fourth quarter provided a strong ending to another year of record financial performance by UAM, driven by the strong internal growth of our affiliates," said Norton H. Reamer, president of UAM. "Since going public in 1986, UAM has grown earnings per share by an average annual compounded rate of 21 percent. Given the long term trends underlying our growth, the excellent prospects of our recent acquisitions and the fact that UAM still has less than a 2 percent share of the market for institutional investment management, we believe we can sustain average EPS growth of at least 15 percent per year for the foreseeable future even as the size of the base continues to increase."
 Full-year 1992 net income was $35.0 million, a 44 percent increase from $24.4 million in 1991. Revenues rose to $295.0 million from $234.7 million, a 26 percent increase for the year. Fully diluted earnings per share rose 33 percent in 1992 to $1.53 from $1.15 posted in 1991. Operating Cash Flow was $76.0 million, up 27 percent for the year from $59.7 million at Dec. 31, 1991.
 Amortization of cost assigned to contracts acquired, a significant component of operating cash flow, was $36.6 million in 1992 vs. $30.4 million in 1991. Amortization on a per share basis increased to $1.57 in 1992 from $1.34 in the previous year.
 Assets under management increased 24 percent to $75.1 billion up from $60.7 billion at the end of 1991. Acquisitions completed in 1992 accounted for $8.0 billion of this $14.4 billion increase, UAM's affiliates' aggregate investment performance added $4.2 billion, and positive net cash flow from new and existing clients was responsible for $2.2 billion.
 During 1992, there were five acquisitions completed and a sixth announced:
 -- Acadian Asset Management was acquired in February, marking UAM's first foray into international markets. Acadian is a Boston-based manager of $1.3 billion in international and global equity accounts primarily from retirement plans, endowments and foundations. The firm utilizes structured, disciplined strategies for country and security selection.
 -- In March, UAM purchased Alpha global Fixed Income Mangers, a London-based investment advisory firm specializing in the management of global fixed income portfolios for institutional investors. At the end of 1992, it has assets under management of $860 million.
 -- UAM acquired the institutional advisory and property management segments of Lehndorff USA Limited, the Dallas-based real estate investment management firm, in June. Renamed the L&B Group, the firm advises institutional clients, primarily retirement plans and endowments, with respect to $1.6 billion of U.S. real estate. The L&B Group's roster of clients and managed properties include some the most prestigious institutions and locations in the United States.
 -- NWQ Investment Management Company of Los Angeles was acquired by UAM in October. NWQ manages $4.5 billion in equity, balanced and fixed income accounts for institutional and individual investors. Utilizing a disciplined, value-oriented approach to security selection, NWQ is dedicated to earning the highest possible return at the least possible risk for its clients.
 -- In December, UAM acquired Tom Johnson Investment Management, Inc. The Oklahoma City based investment firm managers $1.5 billion in equity, balanced and fixed income accounts for a broad array of clients, including pension and profit sharing plans, public funds, endowments, foundations and individuals. The firm employs a conservative investment philosophy which stresses diversification, risk minimization and consistency of returns.
 -- UAM also announced in December that it has signed an agreement to acquire Pell, Rudman & Co., Inc. With $1.1 billion in assets under management, the Boston based firm provides a highly personalized and comprehensive program of asset management for individuals, families and related accounts. the acquisition is expected to close early in the first half of 1993.
 UAM provides investment management services, primarily to institutional clients, through 32 operating firms which manage more than $75 billion for over 4,600 clients located throughout the United States and abroad.
 UNITED ASSET MANAGEMENT CORPORATION
 Year ended Dec. 31 1992 1991(A) Pct. incr.
 Revenues $295,022,000 $234,666,000 26
 Operating income 77,993,000 59,050,000 32
 Income before income tax
 expense 62,509,000 42,773,000 46
 Net income 35,005,000 24,375,000 44
 Operating cash flow(B) 76,008,000 59,671,000 27
 Average shares 19,462,000 17,359,000 --
 Primary earnings per share $1.56 1.22 28
 Fully diluted earnings per share 1.53 1.15 33
 Assets under management
 at Dec. 31 75,066,000,000 60,671,000,000 24
 Three months ended Dec. 31 1992 1991(A) Pct. incr.
 Revenues $85,943,000 $67,087,000 28
 Operating income 22,499,000 16,896,000 33
 Income before income tax
 expense 17,924,000 12,576,000 43
 Net income 10,034,000 7,075,000 42
 Operating cash flow(B) 22,704,000 16,625,000 37
 Average shares 19,920,000 17,834,000 --
 Primary earnings per share $0.44 $0.33 33
 Fully diluted earnings per share 0.43 0.33 30
 (A) -- Restated due to a pooling of interest transaction completed in the first quarter of 1992.
 (B) -- Cash flow provided by operations before working capital changes.
 -0- 2/16/93
 /CONTACT: William H. Park or Gregory S. Dimit of United Asset Management Corporation, 617-330-8900; or George Sard or Anna Cordasco of Sard Verbinnen & Co., 212-687-8080, for United Asset Management Corporation/
 (UAM)


CO: United Asset Management Corporation ST: Massachusetts IN: FIN SU: ERN

TS-LR -- NY064 -- 7124 02/16/93 12:35 EST
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