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FOR IMMEDIATE RELEASE
Franklin Resources, Inc. Announces First Quarter Results
San Mateo, CA, February 1, 2022 – Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced net income1 of $453.2 million or $0.88 per diluted share for the quarter ended December 31, 2021, as compared to $665.7 million or $1.30 per diluted share for the previous quarter, and $345.3 million or $0.67 per diluted share for the quarter ended December 31, 2020. Operating income was $557.7 million for the quarter ended December 31, 2021, as compared to $531.5 million for the previous quarter and $409.1 million in the prior year. The previous quarter included a tax benefit2 of $155.1 million or $0.30 per diluted share due to the release of certain tax reserves primarily related to the closure of Internal Revenue Service audits and increases in our ability to utilize certain tax attributes resulting from the integration of our business.
As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Adjusted net income3 was $553.6 million and adjusted diluted earnings per share3 was $1.08 for the quarter ended December 31, 2021, as compared to $644.6 million and $1.26 for the previous quarter, and $373.4 million and $0.73 for the quarter ended December 31, 2020. Adjusted operating income3 was $685.9 million for the quarter ended December 31, 2021, as compared to $647.1 million for the previous quarter and $549.9 million in the prior year.
“Our first fiscal quarter results reflect the continued progress we are making on a number of important fronts,” said Jenny Johnson, President and CEO of Franklin Resources, Inc. “We continue to diversify our business across products, geographies, vehicles, and asset classes to create broader sources of revenue and growth potential. All asset classes saw improved long-term net flows for the quarter and alternatives posted a 10th consecutive quarter of net long-term inflows.
“Our financial flexibility continues to allow us to make strategic investments in the key areas of focus driving industry growth, including alternatives, SMAs, wealth management, and ESG – all areas where we reached record highs in AUM. During the quarter, we announced the acquisition of Lexington Partners, a global leader in secondary private equity and co-investments, and we closed the acquisition of O’Shaughnessy Asset Management, which complements our existing strengths in SMAs and expands our custom solutions capabilities. This month, we will welcome Anne Simpson to our organization as Global Head of Sustainability. This notable hire demonstrates our commitment to being a global leader in stewardship and sustainability.”
The following information was filed by Franklin Resources Inc (BEN) on Tuesday, February 1, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.