Franklin Resources, Inc.
Investor Relations: Brian Sevilla (650) 312-4091, email@example.com
Media Relations: Matt Walsh (650) 312-2245, firstname.lastname@example.org
FOR IMMEDIATE RELEASE
Franklin Resources, Inc. Announces Second Quarter Results
San Mateo, CA, April 30, 2020 – Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced net income1 of $79.1 million or $0.16 per diluted share for the quarter ended March 31, 2020, as compared to $350.5 million or $0.70 per diluted share for the previous quarter, and $367.5 million or $0.72 per diluted share for the quarter ended March 31, 2019. The mark-to-market of the Company’s investment portfolio resulted in significant nonoperating losses that drove the decline in net income for the quarter ended March 31, 2020. Operating income was $356.1 million for the quarter ended March 31, 2020, as compared to $392.7 million for the previous quarter and $379.5 million in the prior year.
As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles2. Adjusted net income2 was $332.8 million and adjusted diluted earnings per share was $0.66 for the quarter ended March 31, 2020, as compared to $338.3 million and $0.67 for the previous quarter, and $330.6 million and $0.65 for the quarter ended March 31, 2019. Adjusted operating income2 was $385.9 million for the quarter ended March 31, 2020, as compared to $405.5 million for the previous quarter and $406.6 million in the prior year.
“While the global impact of the COVID-19 pandemic is just beginning to be understood, the virus has already profoundly altered our world and its implications are far reaching,” said Jenny Johnson, President and CEO of Franklin Resources, Inc. “Above all else, this pandemic is a humanitarian issue – no matter where you live around the globe, the virus has touched your life in some way. We offer our heartfelt gratitude to the frontline healthcare workers and other professionals who are keeping essential operations functioning.
“Franklin Templeton remains focused on the health and safety of our employees and their families, and our ability to maintain high-quality service and stability for our clients is paramount. We have fully activated our global business continuity plan to protect our employees and have seamlessly moved to over 97% of our staff working remotely. We are extremely proud of and grateful for how our employees have adapted with great agility to operate under these extraordinary conditions and keep our business running efficiently.
“Being an active manager during this unprecedented time has allowed us to find compelling investment opportunities amidst sharp dislocations across sectors. With this backdrop, security selection is critical. During the recent market volatility, we’re pleased to see that our sound investment disciplines are producing strong results, notably in the areas of U.S. equity, municipal bonds, global macro, and global equity.
“Our acquisition of Legg Mason remains on track to close in the third quarter of the calendar year, and integration plans are well underway. We continue to see the long-term value of these combined franchises and that our strategy to diversify and create new opportunities is the right one. There’s excitement at both firms as we continue to move forward with planning for a combined company and working to satisfy the conditions to close. Our combined company will offer a broader range of leading investment strategies, a more encompassing geographical presence, a diversified client base, and a resilient and adaptable platform that can aptly navigate market cycles. It’s also premised on the stability and continuity of our client-facing teams, while providing opportunities to invest in our sales and client service model. We are very focused on integration planning to meet these goals. Following the close of the transaction, our financial resources and flexibility will remain robust, an important foundation of our company.”