/FIRST ADD -- NYTU005 -- BLACKROCK, INC. EARNINGS/
TABLE 1
PRNewswire
BlackRock, Inc. Financial Highlights ($ in thousands, except share data) (unaudited) Three months ended Dec. 31, Sept. 30, 2000 1999 2000 Total revenue $128,540 $100,782 $127,701 Total expense $88,868 $71,123 $90,775 Operating income $39,672 $29,659 $36,926 Net income $24,546 $17,209 $22,761 Diluted earnings per share $0.38 $0.27 $0.35 Diluted cash earnings per share (b) $0.42 $0.31 $0.39 Average diluted shares outstanding 64,727,763 64,185,316 64,651,300 EBITDA (c) $47,745 $35,299 $44,580 Operating margin (d) 35.9% 36.1% 34.1% Assets under management ($ in millions) $203,769 $164,517 $190,808 BlackRock, Inc. Financial Highlights ($ in thousands, except share data) (unaudited) Variance vs. Dec. 31, 1999 Sept. 30, 2000 Amount % Amount % Total revenue $27,758 28% $839 1% Total expense $17,745 25% ($1,907) -2% Operating income $10,013 34% $2,746 7% Net income $7,337 43% $1,785 8% Diluted earnings per share $0.11 41% $0.03 9% Diluted cash earnings per share (b) $0.11 35% $0.03 8% Average diluted shares outstanding 542,447 1% 76,463 0% EBITDA (c) $12,446 35% $3,165 7% Operating margin (d) Assets under management ($ in millions) $39,252 24% $12,961 7% Year ended Dec. 31, Variance 2000 1999 Amount % Total revenue $476,872 $380,981 $95,891 25% Total expense $333,834 $270,038 $63,796 24% Operating income $143,038 $110,943 $32,095 29% Net income $87,361 $59,417 $27,944 47% Diluted earnings per share $1.35 $1.04 $0.31 30% Pro-forma diluted earnings per share (a) $1.35 $0.99 $0.36 36% Diluted cash earnings per share (b) $1.51 $1.21 $0.30 25% Pro-forma diluted cash earnings per share (a) (b) $1.51 $1.14 $0.37 32% Average diluted shares outstanding 64,590,707 57,268,912 7,321,795 13% EBITDA (c) $170,767 $132,541 $38,226 29% Operating margin (d) 35.7% 36.7% Assets under management ($ in millions) $203,769 $164,517 $39,252 24% (a) Based on adjusting 1999 net income to reflect the after-tax interest expense benefit of retiring $115 million of debt (net offering proceeds) on October 1, 1999 and adjusting weighted-average diluted shares outstanding to reflect the offering of 9 million shares on October 1, 1999. (b) Net income plus amortization expense for the period divided by average diluted shares outstanding. (c) Earnings before interest, taxes, depreciation and amortization. (d) Operating income divided by total revenue less fund administration and servicing costs -- affiliates. TABLE 2 BlackRock, Inc. Condensed Consolidated Statements of Income (Dollar amounts in thousands, except share data) (unaudited) Three months ended Dec. 31, 2000 1999 % Change Revenue Investment advisory and administration fees: Mutual funds $56,186 $53,427 5.2% Separate accounts 66,008 43,569 51.5 BAI -- -- NM Total investment advisory and administration fees 122,194 96,996 26.0 Other income 6,346 3,786 67.6 Total revenue 128,540 100,782 27.5 Expense Employee compensation and benefits 53,062 36,890 43.8 BAI incentive compensation -- -- NM Fund administration and servicing costs - affiliates 18,164 18,608 (2.4) General and administration 15,029 13,212 13.8 Amortization of intangible assets 2,613 2,413 8.3 Total expense 88,868 71,123 24.9 Operating income 39,672 29,659 33.8 Non-operating income (expense) Interest income 3,070 1,233 149.0 Interest expense - affiliates (201) (700) (71.3) 2,869 533 438.3 Income before income taxes $42,541 $30,192 40.9 Income taxes 17,995 12,983 38.6 Net income $24,546 $17,209 42.6 Weighted-average shares outstanding Basic 63,930,387 63,864,382 0.1% Diluted 64,727,763 64,185,316 0.8% Earnings per share Basic $0.38 $0.27 40.7% Diluted $0.38 $0.27 40.7% NM - Not meaningful BlackRock, Inc. Condensed Consolidated Statements of Income (Dollar amounts in thousands, except share data) (unaudited) Year ended Dec. 31, 2000 1999 % Change Revenue Investment advisory and administration fees: Mutual funds $229,259 $214,728 6.8% Separate accounts 223,521 154,046 45.1 BAI -- (7,072) NM Total investment advisory and administration fees 452,780 361,702 25.2 Other income 24,092 19,279 25.0 Total revenue 476,872 380,981 25.2 Expense Employee compensation and benefits 189,684 138,025 37.4 BAI incentive compensation -- (5,387) NM Fund administration and servicing costs - affiliates 75,686 78,666 (3.8) General and administration 58,311 49,081 18.8 Amortization of intangible assets 10,153 9,653 5.2 Total expense 333,834 270,038 23.6 Operating income 143,038 110,943 28.9 Non-operating income (expense) Interest income 7,734 3,445 124.5 Interest expense - affiliates (855) (10,938) (92.2) 6,879 (7,493) 191.8 Income before income taxes $149,917 $103,450 44.9 Income taxes 62,556 44,033 42.1 Net income $87,361 $59,417 47.0 Weighted-average shares outstanding Basic 63,886,353 57,057,014 12.0% Diluted 64,590,707 57,268,912 12.8% Earnings per share Basic $1.37 $1.04 31.7% Diluted $1.35 $1.04 29.8% NM - Not meaningful TABLE 3 BlackRock, Inc. Condensed Consolidated Statements of Financial Condition (Dollar amounts in thousands) (unaudited) Dec. 31, Dec. 31, 2000 1999 Assets Cash and cash equivalents $192,590 $157,129 Accounts receivable 83,284 65,837 Investments 13,316 2,255 Property and equipment, net 45,598 22,677 Intangible assets, net 192,142 194,257 Other assets 10,073 5,427 Total assets $537,003 $447,582 Liabilities and stockholders' equity Note and loan payable to affiliates $-- $28,200 Accrued compensation 130,101 90,350 Accounts payable and accrued liabilities 27,014 44,655 Acquired management contract obligation 8,040 -- Other liabilities 3,607 3,851 Total liabilities 168,762 167,056 Stockholders' equity 368,241 280,526 Total liabilities and stockholders' equity $537,003 $447,582 TABLE 4 BlackRock, Inc. Condensed Consolidated Statements of Cash Flows (Dollar amounts in thousands) (unaudited) Year ended Dec. 31, 2000 1999 1998 Cash flows from operating activities Net income $87,361 $59,417 $35,615 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 19,995 18,153 12,852 Stock-based compensation 868 100 1,737 Tax benefit from stock options exercised 610 -- -- Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (18,074) 42,484 (70,364) Decrease (increase) in receivable from affiliate 627 (1,665) 1,422 (Increase) decrease in other assets (4,646) (3,426) 192 Increase (decrease) in accrued compensation 39,751 (19,979) 61,597 (Decrease) increase in accounts payable and accrued liabilities (16,936) 19,845 11,126 Decrease in accrued interest payable to affiliates (705) (470) (483) (Decrease) increase in other liabilities (244) 1,867 41 Cash provided by operating activities 108,607 116,326 53,735 Cash flows from investing activities Purchase of property and equipment (32,761) (18,925) (8,414) (Purchase)/sale of investments (12,898) 29 3,400 Cash used in investing activities (45,659) (18,896) (5,014) Cash flows from financing activities Repayment of note and loan payable to affiliates (28,200) (168,800) (28,232) Issuance of class A common stock 222 117,495 -- Issuance of class B common stock 264 -- 34,214 Expenses related to issuance of class A common stock (91) (2,646) -- Capital contribution from PNC -- -- 2,063 Purchase of treasury stock (16) (550) (200) Reissuance of treasury stock -- 750 -- Stock options exercised 742 -- -- Forgiveness of intercompany allocations -- -- 99 Dividends to PNC -- -- (12,300) Cash used in financing activities (27,079) (53,751) (4,356) Effect of exchange rate changes on cash and cash equivalents (408) -- -- Net increase in cash and cash equivalents 35,461 43,679 44,365 Cash and cash equivalents, beginning of period 157,129 113,450 69,085 Cash and cash equivalents, end of period $192,590 $157,129 $113,450 TABLE 5 BlackRock, Inc. Assets Under Management (Dollar amounts in millions) (unaudited) Year ended Dec. 31, 2000 1999 1998 Separate Accounts Fixed income* $107,022 $75,206 $52,869 Liquidity 17,996 20,934 13,826 Equity* 8,725 3,080 2,417 Subtotal 133,743 99,220 69,112 Mutual Funds Fixed income 13,317 13,318 13,888 Liquidity 43,190 36,587 35,555 Equity 13,519 15,392 12,087 Subtotal 70,026 65,297 61,530 Total $203,769 $164,517 $130,642 * includes alternative investment products. Component Changes in Assets Under Management Year ended Dec. 31, 2000 1999 1998 Separate Accounts * Beginning assets under management $99,220 $69,112 $51,043 Net subscriptions 25,890 30,183 15,166 Market appreciation (depreciation) 8,633 (75) 2,903 Ending assets under management 133,743 99,220 69,112 Mutual Funds Beginning assets under management 65,297 61,530 54,370 Net subscriptions 7,132 2,524 5,674 Market appreciation (depreciation) (2,403) 1,243 1,486 Ending assets under management 70,026 65,297 61,530 Total $203,769 $164,517 $130,642 Net subscriptions $33,022 $32,707 $20,840 % of Change in AUM from net subscriptions 84.1% 96.6% 82.6% * includes alternative investment products.
PRNewswire -- Jan. 16
SECOND AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW
SOURCE: Blackrock, Inc.