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FOR IMMEDIATE RELEASE
Franklin Resources, Inc. Announces Preliminary Fourth Quarter and Fiscal Year Results
San Mateo, CA, November 1, 2022 – Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced preliminary net income1 of $232.7 million or $0.46 per diluted share for the quarter ended September 30, 2022, as compared to $256.4 million or $0.50 per diluted share for the previous quarter, and $665.7 million or $1.30 per diluted share for the quarter ended September 30, 2021. Preliminary net income1 for the year ended September 30, 2022 was $1,291.9 million or $2.53 per diluted share, as compared to $1,831.2 million or $3.57 per diluted share for the prior year. Preliminary operating income was $348.5 million for the quarter ended September 30, 2022, as compared to $404.7 million for the previous quarter and $531.5 million for the prior year.
As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Preliminary adjusted net income2 was $394.4 million and adjusted diluted earnings per share2 was $0.78 for the quarter ended September 30, 2022, as compared to $416.0 million and $0.82 for the previous quarter, and $644.6 million and $1.26 for the quarter ended September 30, 2021. Preliminary adjusted net income2 was $1,855.6 million and adjusted diluted earnings per share2 was $3.63 for the year ended September 30, 2022, as compared to $1,915.2 million and $3.74 for the prior year. Preliminary adjusted operating income2 was $494.1 million for the quarter ended September 30, 2022, as compared to $566.9 million for the previous quarter and $647.1 million for the prior year.
“This month, we officially mark Franklin Templeton’s 75th anniversary as a company,” said Jenny Johnson, President and CEO of Franklin Resources, Inc. “Over that time span, we have focused on building a diversified business – across asset classes, client types, regions and investment vehicles – and fiscal year 2022 was no exception.
“Since January, macroeconomic and geopolitical uncertainty have resulted in significant volatility and correlated declines in both global equity and fixed income markets. Our assets under management and flows were impacted by these unprecedented conditions and industry-wide pressures. However, as always, we have been actively engaging with our clients by providing insights and thought leadership to help them navigate the latest conditions, including drawing upon the expanded resources of our various specialist investment managers and the Franklin Templeton Institute. We benefitted from having a diversified mix of assets and generated net inflows in the alternative and multi-asset categories. We also saw an improvement in our non-US regions, with EMEA experiencing positive net flows for the year.
“Our continued expansion of alternative investment capabilities, an increasing area of client demand, led us to the acquisitions of Lexington Partners and Alcentra, which closed today. Pro forma for Alcentra, alternative assets total $260 billion as of September 30, 2022, making Franklin Templeton one of the largest managers of alternative assets with a meaningful presence in the key alternative categories.
“Additionally, we see the importance of technology in providing greater customization solutions to investors. Toward this end, earlier this fiscal year we acquired Canvas, a leading custom indexing solutions platform through O’Shaughnessy Asset Management. Canvas has experienced positive net flows each quarter since the platform launched in September 2019 and AUM has grown by over 50% since we announced the acquisition. We also continued to be actively engaged in making investments
The following information was filed by Franklin Resources Inc (BEN) on Tuesday, November 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.