Franklin Resources(BEN)2025-01-31 13:44Financial Performance - Franklin Resources, Inc. reported net income of $163.6 million or $0.29 per diluted share for Q1 2025, compared to a net loss of $84.7 million in the previous quarter and net income of $251.3 million in Q1 2024[3]. - Adjusted net income was $320.5 million for the quarter, a slight increase from $315.2 million in the previous quarter, but down from $328.5 million in the prior year[7]. - Operating income was $219.0 million, compared to an operating loss of $150.7 million in the previous quarter and an operating income of $206.5 million in the prior year[7]. - The company reported a net income attributable to Franklin Resources, Inc. of $163.6 million for the three months ended December 31, 2024, recovering from a loss of $84.7 million in the previous quarter[26]. - Adjusted diluted earnings per share for the three months ended December 31, 2024, was $0.59, consistent with the previous quarter[26]. Revenue and Assets Under Management - Operating revenues for the quarter were $2,251.6 million, reflecting a 2% increase from the previous quarter and a 13% increase year-over-year[7]. - Total assets under management (AUM) were $1,575.7 billion at December 31, 2024, down $102.9 billion during the quarter due to $52.9 billion in net market changes and $50 billion in long-term net outflows[7]. - Average AUM for the quarter was $1,634.5 billion, a 17% increase from $1,394.2 billion year-over-year[14]. - The AUM as of December 31, 2024, was approximately $1.6 trillion, indicating a strong market presence and investment capability[29]. - Total AUM by asset class showed a decline in equity and fixed income, with equity at $620.0 billion (down 2%) and fixed income at $469.5 billion (down 16%) compared to the previous quarter[15]. Inflows and Outflows - Long-term inflows improved by 34% year-over-year, generating positive net flows of $17 billion across equity, multi-asset, and alternatives, despite long-term net outflows of $50 billion[3]. - Long-term inflows for the quarter were $97.8 billion, a 42% increase from $68.9 billion year-over-year[14]. - Long-term outflows doubled to $147.8 billion from $73.9 billion in the same period last year, resulting in long-term net flows of $(50.0) billion, a 900% decline[14]. - Long-term net flows for the three months ended September 30, 2024, were negative at $31.3 billion, driven by outflows in Fixed Income and Alternative assets[18]. Strategic Investments and Shareholder Value - The company remains committed to strategically investing in its business while managing expenses to enhance shareholder value[6]. - The company repurchased 0.3 million shares of common stock for a total cost of $5.8 million during the quarter[8]. - Fundraising in alternatives reached $6 billion, with $4.3 billion in private market assets, and the launch of a new evergreen secondaries private equity fund achieved $900 million in assets under management[4]. Market Presence and Operations - The company operates in over 150 countries, leveraging its extensive investment management expertise and technology solutions[29]. - Total reinvested distributions amount to $20.1 billion[11]. - Direct investments in CIPs total $1.1 billion, with additional third-party investments of approximately $356 million[11]. - Cash and investments related to deferred compensation plans amount to approximately $437 million[11].