Top-News
Mittwoch,
23.08.2017 15:00
von
PR Newswire
| Aufrufe: 20
Eaton Vance Corp. Report for the Three and Nine Month Periods Ended July 31, 2017
Ein Strommast (Symbolbild).
pixabay.com
PR Newswire
BOSTON, Aug. 23, 2017
BOSTON, Aug. 23, 2017 /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) today reported earnings per diluted share of $0.58 for the third quarter of fiscal 2017, an increase of 5 percent from $0.55 of earnings per diluted share in the third quarter of fiscal 2016 and a decrease of 6 percent from $0.62 of earnings per diluted share in the second quarter of fiscal 2017.
The Company reported adjusted earnings per diluted share(1) of $0.62 for the third quarter of fiscal 2017, up 11 percent from $0.56 of adjusted earnings per diluted share in the third quarter of fiscal 2016 and unchanged from $0.62 of adjusted earnings per diluted share in the second quarter of fiscal 2017. In the third quarter of fiscal 2017, adjusted earnings differed from earnings under U.S. generally accepted accounting principles (GAAP) by $0.03 per diluted share to reflect $5.4 million of costs associated with retiring $250 million aggregate principal amount of 6.5 percent senior notes due October 2, 2017 (2017 Senior Notes) and $0.01 per diluted share to reflect $3.5 million of structuring fees paid in connection with the $210 million initial public offering of Eaton Vance Floating-Rate 2022 Target Term Trust (2022 Target Term Trust) during the quarter. In the third quarter of fiscal 2016, adjusted earnings differed from GAAP earnings by $0.01 per diluted share to reflect $2.3 million of structuring fees paid in connection with the $215 million initial public offering of Eaton Vance High Income 2021 Target Term Trust (2021 Target Term Trust) in the third fiscal quarter of last year. Adjusted earnings per diluted share matched GAAP earnings per diluted share in the second quarter of fiscal 2017.
Net gains and other investment income related to seed capital investments contributed $0.01 to earnings per diluted share in the third quarters of fiscal 2017 and fiscal 2016, and $0.02 to earnings per diluted share in the second quarter of fiscal 2017. Costs in connection with employee terminations, special fund expense reimbursements and one-time legal and investigative costs as described below reduced earnings by $0.03 per diluted share in the third quarter of fiscal 2017 and $0.01 per diluted share in the third quarter of fiscal 2016. Such costs were negligible in the second quarter of fiscal 2017.
Consolidated net inflows of $9.1 billion in the third quarter of fiscal 2017 represent a 9 percent annualized internal growth rate in managed assets (consolidated net inflows divided by beginning of period consolidated assets under management). This compares to net inflows of $7.1 billion and 9 percent annualized internal growth in the third quarter of fiscal 2016 and net inflows of $12.9 billion and annualized internal growth of 14 percent in the second quarter of fiscal 2017. On the basis of net contribution to management fee revenue, the Company's annualized internal revenue growth rate was 6 percent in the third quarter of fiscal 2017, 3 percent in the third quarter of fiscal 2016 and 7 percent in the second quarter of fiscal 2017.
Consolidated assets under management were $405.6 billion on July 31, 2017, up 21 percent from $334.4 billion of consolidated managed assets on July 31, 2016 and up 5 percent from $387.0 billion of consolidated managed assets on April 30, 2017. The year-over-year increase in consolidated assets under management reflects net inflows of $34.7 billion and market price appreciation of $26.5 billion over the twelve-month period and $9.9 billion of new managed assets gained in the acquisition of the business assets of Calvert Investment Management, Inc. (Calvert) on December 30, 2016. The sequential quarterly increase in consolidated assets under management reflects net inflows of $9.1 billion and market price appreciation of $9.4 billion in the third quarter of fiscal 2017.
"In the third quarter of fiscal 2017, Eaton Vance continued to deliver robust internal growth in managed assets and management fee revenue," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "Our distinctive capabilities and strong performance across leading strategies are important differentiators for the Company in what remains a challenging marketplace for investment management."
Average consolidated assets under management were $395.2 billion in the third quarter of fiscal 2017, up 22 percent from $324.9 billion in the third quarter of fiscal 2016 and up 5 percent from $376.5 billion in the second quarter of fiscal 2017.
Excluding performance-based fees, annualized management fee rates on consolidated assets under management averaged 34.2 basis points in the third quarter of fiscal 2017, down 4 percent from 35.6 basis points in the third quarter of fiscal 2016 and down 1 percent from 34.7 basis points in the second quarter of fiscal 2017. Changes in average management fee rates for the compared periods primarily reflect the ongoing shift in the Company's mix of business toward lower-fee mandates.
Attachments 5 and 6 summarize the Company's asset flows by investment mandate and investment vehicle. Attachments 7, 8 and 9 summarize the Company's ending consolidated assets under management by investment mandate, investment vehicle and investment affiliate. Attachment 10 shows the Company's average annualized effective management fee rates by investment mandate.
As shown in Attachments 5 and 6, consolidated sales and other inflows were $39.8 billion in the third quarter of fiscal 2017, up 26 percent from $31.6 billion in the third quarter of fiscal 2016 and up 2 percent from $39.0 billion in the second quarter of fiscal 2017.
Consolidated redemptions and other outflows were $30.7 billion in the third quarter of fiscal 2017, up 25 percent from $24.5 billion in the third quarter of fiscal 2016 and up 18 percent from $26.0 billion in the second quarter of fiscal 2017.
As of July 31, 2017, the Company's 49 percent-owned affiliate Hexavest, Inc. (Hexavest) managed $15.4 billion of client assets, up 7 percent from $14.4 billion of managed assets on July 31, 2016 and $14.5 billion of managed assets on April 30, 2017. Hexavest had net inflows of $0.4 billion in the third quarter of fiscal 2017 versus net outflows of $0.5 billion and $0.6 billion in the third quarter of fiscal 2016 and second quarter of fiscal 2017, respectively. Attachment 11 summarizes assets under management and asset flow information for Hexavest. Other than Eaton Vance-sponsored funds for which Hexavest is adviser or sub-adviser, the managed assets and flows of Hexavest are not included in Eaton Vance consolidated totals.
| Financial Highlights | | | | | | | |
| | | Three Months Ended | |||||
| | | (in thousands, except per share figures) | |||||
| | | July 31, | April 30, | July 31, | |||
| | | 2017 | 2017 | 2016 | |||
| Revenue | $ | 393,746 | $ | 374,632 | $ | 341,168 | |
| Expenses | | 272,715 | | 256,712 | | 234,443 | |
| Operating income | | 121,031 | | 117,920 | | 106,725 | |
| Operating margin | | 30.7% | | 31.5% | | 31.3% | |
| Non-operating income (expense) | | (6,039) | | 1,223 | | (4,131) | |
| Income taxes | | (42,462) | | (44,654) | | (39,781) | |
| Equity in net income of affiliates, net of tax | | 2,323 | | 3,144 | | 2,961 | |
| Net income | | 74,853 | | 77,633 | | 65,774 | |
| Net income attributable to non-controlling | | | | | | | |
| | and other beneficial interests | | (7,492) | | (5,658) | | (2,875) |
| Net income attributable to | | | | | | | |
| | Eaton Vance Corp. shareholders | $ | 67,361 | $ | 71,975 | $ | 62,899 |
| Adjusted net income attributable to Eaton | | | | | | | |
| | Vance Corp. shareholders | $ | 72,849 | $ | 71,974 | $ | 64,290 |
| Earnings per diluted share | $ | 0.58 | $ | 0.62 | $ | 0.55 | |
| Adjusted earnings per diluted share | $ | 0.62 | $ | 0.62 | $ | 0.56 | |
Third Quarter Fiscal 2017 vs. Third Quarter Fiscal 2016
In the third quarter of fiscal 2017, revenue increased 15 percent to $393.7 million from $341.2 million in the third quarter of fiscal 2016. Management fees were up 16 percent, as a 22 percent increase in average consolidated assets under management more than offset lower average management fee rates. Performance fees contributed $0.5 million in the third quarter of fiscal 2017 compared to $2.7 million in the third quarter of fiscal 2016. Distribution and service fee revenues collectively were up 10 percent, reflecting higher managed assets in fund share classes that are subject to these fees.
Operating expenses increased 16 percent to $272.7 million in the third quarter of fiscal 2017 from $234.4 million in the third quarter of fiscal 2016, reflecting increases in compensation, distribution expense, service fee expense, amortization of deferred sales commissions, fund-related expenses and other operating expenses. The increase in compensation expense reflects higher sales-based and operating income-based bonus accruals, compensation expenses in connection with the Calvert acquisition, higher salaries and benefits associated with other increases in headcount, higher stock-based compensation and compensation costs associated with employee terminations. Costs associated with employee terminations totaled $3.0 million in the third quarter of fiscal 2017 versus $1.9 million in the third quarter of fiscal 2016. The increase in distribution expense reflects an increase in closed-end fund structuring fees and higher marketing and promotion costs, primarily driven by higher average managed assets and the acquisition of the Calvert business. The increase in service fee expense reflects higher average assets under management in fund share classes subject to service fee payments. The increase in amortization of deferred sales commissions reflects higher commission amortization for private funds, partially offset by lower Class B and Class C commission amortization. The increase in fund-related expenses reflects higher fund subsidies attributable primarily to the addition of the Calvert funds, higher sub-advisory fees paid, an increase in fund expenses borne by the Company on funds for which it earns an all-in fee and $1.9 million in one-time reimbursements made to the funds by the Company in the quarter. The increase in other operating expenses reflects higher travel, communications, information technology, professional services, facilities, charitable and other corporate expenses. Other operating expenses in the third quarter of fiscal 2017 included approximately $0.6 million of one-time legal and consulting costs in conjunction with investigating the fraudulent activities of a former Eaton Vance Management trader, as publically disclosed in April 2017.
Expenses in connection with the Company's NextShares™ exchange-traded managed funds (NextShares) initiative were $2.0 million in the third quarter of fiscal 2017 and $2.4 million in the third quarter of fiscal 2016.
Operating income was up 13 percent to $121.0 million in the third quarter of fiscal 2017 from $106.7 million in the third quarter of fiscal 2016. Operating margin decreased to 30.7 percent in the third quarter of fiscal 2017 from 31.3 percent in the third quarter of fiscal 2016. Adjusting to remove the $3.5 million and $2.3 million of closed-end fund structuring fees paid during the third quarters of fiscal 2017 and fiscal 2016, respectively, operating income was up 14 percent and operating margins decreased to 31.6 percent in the third quarter of fiscal 2017 from 32.0 percent in the third quarter of fiscal 2016.
Werbung
Mehr Nachrichten zur Eaton Vance Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)
-1
Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink.
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.
