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 BOSTON, Oct. 21 /PRNewswire/ -- United Asset Management Corporation (NYSE: UAM), which manages $89 billion in assets through 35 affiliates primarily for institutional clients, today reported strong financial results for the third quarter ended Sept. 30, 1993. Net income for the quarter was $12.3 million, up 39 percent from $8.8 million in the quarter of 1992. Operating income was $25.9 million, an increase of 32 percent from $19.7 million last year. Revenues were $103.3 million, up 20 percent from the 1992 quarter. All were new quarterly records. Fully diluted earnings per share were $0.44 in the quarter, up 22 percent from $0.36 in the 1992 quarter. The first two quarters of 1993 and the 1992 results of operations have been restated to reflect the acquisition of Heitman Financial Ltd., which has been accounted for as a pooling of interests.
 Operating cash flow (cash flow provided by operations before working capital changes) in the quarter was a record $27.0 million, up 4O percent from $19.3 million in the 1992 quarter. Amortization of cost assigned to contracts acquired was $12.1 million or $0.43 per share, vs. $9.2 million or $0.37 per share in the 1992 quarter. Assets under management increased to $89.3 billion, up 24 percent from $72.1 billion last year.
 "This was another very strong quarter for UAM, as we set records in nearly every operating measure," said Norton H. Reamer, president of UAM. "Reported earnings per share increased significantly from the restated third quarter of 1992 and also rose from the restated second quarter of 1993. I should note that earnings per share would have been even $0.04 higher had it not been for the following three factors. First, the Heitman acquisition on Aug. 25, 1993 was accounted for as a pooling of interests, resulting in UAM retroactively restating all periods prior to Aug. 25, 1993. Because closely held firms such as Heitman usually show very little net income prior to joining UAM, this restatement resulted in a $0.02 decrease in third quarter results. Second, the significant increase in the price of our stock caused a reduction of $0.01 in the calculation of earnings per share under the modified treasury stock method. Third, the required retroactive application back to Jan. 1, 1993 of the increase in federal tax rates subtracted $0.01 per share. I would emphasize, that these factors restraining even higher growth in third quarter earnings per share have nothing to do with our continued strong operating performance, and we remain confident that UAM's strong record of growth and profitability will continue."
 Reamer also noted that UAM has continued to make great strides toward its goal of managing all asset classes in all parts of the world, primarily for institutional investors. The completion this quarter of the acquisition of Heitman, a major real estate institutional investment management firm based in Chicago and Los Angeles with nearly $6 billion under management, has increased the real estate portion of UAM's assets under management to 9 percent of the total and made it the second largest U.S. manager of real estate portfolios for institutions. "Real estate makes up about 30 percent of this country's wealth and yet only 3 percent of pension plan assets. We believe this gap will narrow as real estate comes to play an increasingly important role in diversifying the portfolios of pension plans," Reamer said. "Heitman, as well as our other wholly owned firm, The L&B Group in Dallas, and the Boston-based Aldrich Eastman & Waltch, in which we have a minority interest, should benefit from this trend." Each of these firms operates completely independently.
 During this quarter, UAM also signed an agreement to acquire Murray Johnstone Limited, a leading international investment house based in Scotland. Murray Johnstone manages approximately $6.6 billion for a broad range of UK and international clients. UAM's first major acquisition abroad and third firm in the UK, Murray Johnstone will significantly increase UAM's presence in the international investment arena. "When completed the Murray Johnstone acquisition together with the Heitman acquisition, will add about $12.6 billion to our assets under management in asset categories that further diversify UAM. Of course, we are still actively seeking to acquire traditional U.S. high quality institutional equity, balanced and fixed income managers and we look forward to continued growth and strong investment performance by our existing affiliates," Reamer said.
 UAM has been selectively acquiring investment management companies for the past ten years, focusing primarily on institutional investment managers. UAM went public and was listed on the New York Stock Exchange in 1986 and now has a total market capitalization of approximately $1.1 billion. The affiliated companies of UAM manage $89 billion (excluding Murray Johnstone's assets under management) for over 4,700 clients located throughout the United States and abroad.
 Three months ended Percent
 Sept. 30, 1993(C) 1992(B) Increase
 Revenues $103,328,000 $86,096,000 20 percent
 Operating income 25,939,000 19,687,000 32 percent
 Income before
 income tax expense 22,364,000 15,782,000 42 percent
 Net income 12,251,000 8,822,000 39 percent
 Oper. Cash Flow (A) 26,966,000 19,310,000 40 percent
 Average shares
 outstanding 24,807,000 21,468,000 ---
 Primary earnings
 per share $0.44 $0.36 22 percent
 Fully diluted earnings
 per share $0.44 $0.36 22 percent
 Nine months ended Percent
 Sept. 30, 1993(C) 1992(B) Increase
 Revenues $308,710,000 $243,484,000 27 percent
 Operating income 74,453,000 56,212,000 32 percent
 Income before income
 tax expenses 62,622,000 44,817,000 40 percent
 Net income 34,883,000 25,073,000 39 percent
 Oper. cash flow (A) 77,796,000 54,475,000 43 percent
 Average shares
 outstanding 24,252,000 21,334,000 ---
 Primary earnings
 per share $1.29 $1.03 25 percent
 Fully diluted earnings
 per share $1.25 $1.03 21 percent
 Assets under management
 at Sept. 30 $89,338,000,000 $72,113,000,000 24 percent
 (A) Cash flow provided by operations before working capital changes.
 (B) Restated due to a pooling of interests transaction completed in the third quarter of 1993.
 (C) Includes the effect of restating periods prior to Aug. 25, 1993.
 -0- 10/21/93
 /CONTACT: William H. Park or Gregory S. Dimit of United Asset Management, 617-330-8900 or George Sard or Anna Cordasco of Sard Verbinnen & Co., 212-687-8080/

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

LG-MP -- NY031 -- 5097 10/21/93 10:53 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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