BlackRock, Inc. Reports Record Earnings of $25.5 million For the First Quarter of 2001
Diluted Earnings Per Share Rise 30% to $0.39 Versus $0.30 For the First Quarter of 2000
PRNewswire
NEW YORK

BlackRock, Inc. (NYSE: BLK) today reported record net income of $25.5 million for the first quarter ended March 31, 2001, a 33% increase compared with $19.2 million earned in the first quarter of 2000 and a 4% increase compared with $24.5 million earned in the fourth quarter of 2000. Diluted earnings per share for the first quarter were $0.39 compared with $0.30 and $0.38 for the first and fourth quarters of 2000, respectively. Operating income of $41.9 million increased 31% and 6% compared with $32.1 million and $39.7 million earned in the first and fourth quarters of 2000, respectively (See Table 1).

Assets under management at March 31, 2001 were $201.6 billion, a 17% increase compared to $172.6 billion at March 31, 2000 and a 1% decline from the $203.8 billion reported at year-end 2000. New business and strong fixed income performance largely offset the adverse effect of the equity markets, which caused a $3.5 billion decline in equity asset values and a $4 billion decline in security lending assets, which are a low fee (2.5 basis point) product. Quarter-end assets under management were also affected by the timing of new business fundings, as nine new institutional separate accounts totaling $5.3 billion funded on the first business day of the second quarter.

"Despite treacherous financial markets, BlackRock generated earnings growth for the first quarter that we expect will compare favorably with our industry," commented Laurence D. Fink, Chairman and CEO. "More importantly, the ongoing strength of our fixed income investment performance should enable us to continue to increase market share over the remainder of the year. As a result, I currently remain comfortable with 2001 consensus estimates for BlackRock's earnings for the second quarter and full year."

  First Quarter Highlights

  * Total revenue rose to $133.7 million, an increase of 24% from the
    $108.1 million reported for the first quarter 2000 and an increase of 4%
    compared with the fourth quarter 2000 total of $128.5 million.

  * Our pipeline of potential new business remained strong, with 178 fixed
    income searches totaling $25 billion and 110 equity searches totaling
    $8 billion.

  * Diluted cash earnings per share for the first quarter of 2001 were
    $0.43, a 26% increase versus $0.34 for the comparable period in 2000.

BlackRock's operating margin for the first quarter 2001 was 35.8% compared with 35.9% for the fourth quarter of 2000.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2001 was $49.5 million, a 31% increase versus $37.8 million for the comparable period in 2000.

Total investment advisory and administration fees for the quarter ended March 31, 2001 increased $23.4 million or 23% to $125.3 million compared with the first quarter of 2000 primarily due to a 65% increase in separate account revenue. The increase in separate account revenue was driven by an increase in separate account assets of $27.4 billion or 26% and continued strong investment performance for alternative products which generated $16.5 million in performance fees for the first quarter. The increases in separate account fees were partially offset by a decline in mutual fund revenue of $4.2 million or 7.1% due to market depreciation in equity mutual fund assets. Other income increased $2.2 million or 36% largely due to increased sales of BlackRock Solutions' products. Operating expenses for the first quarter 2001 rose $15.8 million or 21% to $91.8 million. The increase was primarily attributable to a $14.8 million rise in compensation and benefits over half of which represented direct incentives on alternative product performance fees.

Compared with the fourth quarter of 2000, revenue increased $5.2 million or 4% in the first quarter of 2001. Separate account fees increased $4.4 million or 7% as a result of higher fixed income assets under management and included $2.0 million of performance fees on European equity institutional accounts. Other income increased $2.1 million, or 33%, as a result of a discretionary performance fee associated with, and increased sales of, BlackRock Solutions' products. Mutual fund fees decreased $1.3 million or 2% due to market depreciation in equity mutual fund assets.

About BlackRock. BlackRock is one of the largest publicly traded investment management firms in the United States with $201.6 billion of assets under management as of March 31, 2001. BlackRock manages assets on behalf of more than 3,300 institutions and 200,000 individuals worldwide through a variety of equity, fixed income, liquidity and alternative investment separate accounts and mutual funds, including BlackRock's flagship fund families, BlackRock Funds and BlackRock Provident Institutional Funds. In addition, BlackRock provides risk management and investment system services to a growing number of institutional investors under the BlackRock Solutions name. Clients are served from the Company's headquarters in New York City, as well as offices in Philadelphia, PA, Wilmington, DE, Edinburgh, Scotland and Tokyo, Japan. BlackRock is a member of The PNC Financial Services Group, Inc. (NYSE: PNC), one of the largest diversified financial services organizations in the United States, and is majority-owned by PNC and by BlackRock employees.

Forward Looking Statements. The third paragraph of this press release is a forward-looking statement within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements with respect to the Company's future financial or business performance, conditions, strategies, expectations and goals may also be included in other portions of this press release and in other statements the Company makes. Forward-looking statements are typically identified by words or phrases such as "remain," "currently," "believe," "expect" "anticipate," "intend," "assume," "target," "estimate," "continue," "position," "prospects," "strategy," "outlook," "trend," and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. BlackRock cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to update forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements and future results could differ materially from historical performance.

The following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the introduction, withdrawal, success and timing of business initiatives and strategies; economic conditions; changes in interest rates and financial and capital markets; the investment performance of BlackRock's advised or sponsored investment products and separately managed accounts; competitive conditions; capital improvement projects; future acquisitions; and the impact, extent and timing of technological changes and legislative and regulatory actions and reforms.

Please refer to BlackRock's Annual Report on Form 10-K for the year ended December 31, 2000 and subsequent reports filed with the Securities and Exchange Commission for a more detailed discussion of these and other factors.

                             BlackRock, Inc.
                           Financial Highlights
                   ($ in thousands, except share data)
                               (unaudited)

                                                   Three months ended
                                                March 31,       December 31,
                                            2001        2000         2000

  Total revenue                           $133,709    $108,060     $128,540
  Total expense                            $91,789     $75,942      $88,868
  Operating income                         $41,920     $32,118      $39,672
  Net income                               $25,496     $19,197      $24,546
  Diluted earnings per share                 $0.39       $0.30        $0.38
  Diluted cash earnings per share (a)        $0.43       $0.34        $0.42
  Average diluted shares outstanding    64,897,486  64,342,592   64,727,763
  EBITDA (b)                               $49,531     $37,801      $47,745
  Operating margin (c)                        35.8%       36.4%        35.9%

  Assets under management
   ($ in millions)                        $201,636    $172,573     $203,769

  (a) Net income plus amortization expense for the period divided by average
      diluted shares outstanding.
  (b) Earnings before interest, taxes, depreciation and amortization.
  (c) Operating income divided by total revenue less fund administration and
      servicing costs - affiliates.

                               BlackRock, Inc.
                            Financial Highlights
                     ($ in thousands, except share data)
                                 (unaudited)

                                                  Variance vs.
                                        March 31, 2000   December 31, 2000
                                         Amount     %      Amount     %

  Total revenue                          $25,649    24%    $5,169     4%
  Total expense                          $15,847    21%    $2,921     3%
  Operating income                        $9,802    31%    $2,248     6%
  Net income                              $6,299    33%      $950     4%
  Diluted earnings per share               $0.09    30%     $0.01     3%
  Diluted cash earnings per share (a)      $0.09    26%     $0.01     2%
  Average diluted shares outstanding     554,894     1%   169,723     0%
  EBITDA (b)                             $11,730    31%    $1,786     4%
  Operating margin (c)

  Assets under management
   ($ in millions)                       $29,063    17%   ($2,133)   -1%

  (a) Net income plus amortization expense for the period divided by average
      diluted shares outstanding.
  (b) Earnings before interest, taxes, depreciation and amortization.
  (c) Operating income divided by total revenue less fund administration and
      servicing costs - affiliates.


                             BlackRock, Inc.
               Condensed Consolidated Statements of Income
             (Dollar amounts in thousands, except share data)
                               (unaudited)

                                                Three months ended
                                         March 31,   March 31,  December 31,
                                            2001        2000        2000

  Revenue
  Investment advisory and administration fees:
    Mutual funds                            $54,916     $59,100     $56,186
    Separate accounts                        70,385      42,770      66,008
  Total investment advisory
   and administration fees                  125,301     101,870     122,194
  Other income                                8,408       6,190       6,346
  Total revenue                             133,709     108,060     128,540

  Expense
  Employee compensation and benefits         55,430      40,670      53,062
  Fund administration
   and servicing costs - affiliates          16,690      19,759      18,164
  General and administration                 17,055      13,100      15,029
  Amortization of intangible assets           2,614       2,413       2,613
  Total expense                              91,789      75,942      88,868

  Operating income                           41,920      32,118      39,672

  Non-operating income (expense)
  Investment income                           1,862       1,050       3,070
  Interest expense                             (201)       (353)       (201)
                                              1,661         697       2,869

  Income before income taxes                 43,581      32,815      42,541
  Income taxes                               18,085      13,618      17,995
  Net income                                $25,496     $19,197     $24,546

  Weighted-average shares outstanding
     Basic                               64,159,248  63,864,382  63,930,387
     Diluted                             64,897,486  64,342,592  64,727,763
  Earnings per share
     Basic                                    $0.40       $0.30       $0.38
     Diluted                                  $0.39       $0.30       $0.38

  NM - Not meaningful

                             BlackRock, Inc.
               Condensed Consolidated Statements of Income
             (Dollar amounts in thousands, except share data)
                               (unaudited)

                                                    Variance vs.
                                             March 31,        December 31,
                                               2000               2000
                                          Amount     Percent  Amount Percent

  Revenue
  Investment advisory and administration fees:
     Mutual funds                        ($4,184)     (7.1%) ($1,270) (2.3%)
     Separate accounts                    27,615       64.6    4,377    6.6
  Total investment advisory
   and administration fees                23,431       23.0    3,107    2.5
  Other income                             2,218       35.8    2,062   32.5
  Total revenue                           25,649       23.7    5,169    4.0

  Expense
  Employee compensation and benefits      14,760       36.3    2,368    4.5
  Fund administration
   and servicing costs - affiliates       (3,069)     (15.5)  (1,474)  (8.1)
  General and administration               3,955       30.2    2,026   13.5
  Amortization of intangible assets          201        8.3        1    0.0
  Total expense                           15,847       20.9    2,921    3.3

  Operating income                         9,802       30.5    2,248    5.7

  Non-operating income (expense)
  Investment income                          812       77.3   (1,208) (39.3)
  Interest expense                          (152)     (43.1)       --    NM
                                             964         NM   (1,208) (42.1)

  Income before income taxes              10,766       32.8    1,040    2.4
  Income taxes                             4,467       32.8       90    0.5
  Net income                              $6,299       32.8     $950    3.9

  Weighted-average shares outstanding
     Basic                               294,866       0.5%  228,861   0.4%
     Diluted                             554,894       0.9%  169,723   0.3%
  Earnings per share
     Basic                                 $0.10      33.3%    $0.02   5.3%
     Diluted                               $0.09      30.0%    $0.01   2.6%

  NM - Not meaningful

                             BlackRock, Inc.
        Condensed Consolidated Statements of  Financial Condition
                      (Dollar amounts in thousands)
                               (unaudited)

                                                  March 31,    December 31,
                                                     2001          2000
  Assets
  Cash and cash equivalents                       $145,377       $192,590
  Accounts receivable                               86,430         83,284
  Investments                                       20,703         13,316
  Property and equipment, net                       50,658         45,598
  Intangible assets, net                           189,528        192,142
  Other assets                                       7,747         10,073
  Total assets                                    $500,443       $537,003

  Liabilities and stockholders' equity
  Accrued compensation                             $52,556       $130,101
  Accounts payable and accrued liabilities          36,544         27,014
  Acquired management contract obligation            8,040          8,040
  Other liabilities                                  1,489          3,607
  Total liabilities                                 98,629        168,762

  Stockholders' equity                             401,814        368,241
  Total liabilities and stockholders' equity      $500,443       $537,003


                             BlackRock, Inc.
             Condensed Consolidated Statements of Cash Flows
                      (Dollar amounts in thousands)
                               (unaudited)

                                                    Period ended March 31,
                                                     2001           2000
  Cash flows from operating activities
  Net income                                       $25,496        $19,197

  Adjustments to reconcile net
   income to net cash used in operating activities:
  Depreciation and amortization                      5,749          4,633
  Stock-based compensation                           2,098            149
  Tax benefit from stock-based compensation          5,127             --

  Changes in operating assets and liabilities:
  Increase in accounts receivable                  (3,599)        (7,796)
  Decrease in receivable from affiliate                453          1,165
  Decrease (increase) in other assets                2,326        (1,738)
  Decrease in accrued compensation                (71,521)       (51,550)
  Increase in accounts
   payable and accrued liabilities                   9,530          4,138
  Decrease in accrued interest payable to affiliates    --          (705)
  Decrease in other liabilities                    (2,118)        (2,315)
  Cash used in operating activities               (26,459)       (34,822)

  Cash flows from investing activities
  Purchase of property and equipment               (8,195)        (5,630)
  (Purchase)/sale of investments                   (5,961)             41
  Cash used in investing activities               (14,156)        (5,589)

  Cash flows from financing activities
  Repayment of note and loan payable to affiliates      --       (28,200)
  Issuance of class A common stock                     203            162

  Purchase of treasury stock                       (6,472)             --
  Reissuance of treasury stock                         194             --
  Cash used in financing activities                (6,075)       (28,038)

  Effect of exchange rate changes
   on cash and cash equivalents                      (523)           (10)

  Net decrease in cash and cash equivalents       (47,213)       (68,459)
  Cash and cash equivalents, beginning of period   192,590        157,129
  Cash and cash equivalents, end of period        $145,377        $88,670


                             BlackRock, Inc.
                         Assets Under Management
                       (Dollar amounts in millions)
                               (unaudited)

                                                March 31,       December 31,
                                             2001       2000        2000
     Separate Accounts
       Fixed income                       $107,371     $77,595    $103,561
       Liquidity                             5,713       7,811       6,495
       Liquidity-Securities lending          7,514      11,299      11,501
       Equity                                7,796       6,414       8,716
       Alternative investment products       4,317       2,230       3,470
       Subtotal                            132,711     105,349     133,743

     Mutual Funds
       Fixed income                         13,600      13,923      13,317
       Liquidity                            44,252      36,862      43,190
       Equity                               11,073      16,439      13,519
       Subtotal                             68,925      67,224      70,026
     Total                                $201,636    $172,573    $203,769


               Component Changes in Assets Under Management

                                                       Period ended
                                                         March 31,
                                                  2001             2000
  Separate Accounts
   Beginning assets under management            $133,743           $99,220
   Net subscriptions (redemptions)                (2,974)            3,807
   Market appreciation                             1,942             2,322
   Ending assets under management                132,711           105,349
  Mutual Funds
   Beginning assets under management              70,026            65,297
   Net subscriptions                                 876               760
   Market appreciation (depreciation)             (1,977)            1,167
   Ending assets under management                 68,925            67,224

  Total                                         $201,636          $172,573

  Net subscriptions (redemptions)                ($2,098)           $4,567
  % of Change in AUM from
   net subscriptions (redemptions)                  98.4%             56.7%


                             BlackRock, Inc.
                         Assets Under Management
                             Quarterly Trend
                       (Dollar amounts in millions)
                               (unaudited)

                                           Quarter Ended

                                            2000                     2001
                           March 31  June 30   Sept. 30   Dec. 31   March 31
  Separate Accounts

  Fixed Income
  Beginning assets
   under management         $73,120   $77,595   $83,950   $96,791  $103,561
  Net subscriptions           2,430     5,756    10,606     2,776       699
  Market appreciation         2,045       599     2,235     3,994     3,111
  Ending assets
   under management          77,595    83,950    96,791   103,561   107,371

  Liquidity
  Beginning assets
   under management           7,902     7,811     7,052     5,147     6,495
  Net subscriptions
   (redemptions)               (114)     (779)   (1,925)    1,321      (813)
  Market appreciation            23        20        20        27        31
  Ending assets
   under management           7,811     7,052     5,147     6,495     5,713

  Liquidity-Securities lending
  Beginning assets
   under management          13,032    11,299    10,655    10,843    11,501
  Net subscriptions
   (redemptions)             (1,733)     (644)      188       658    (3,987)
  Market appreciation            --        --        --        --        --
  Ending assets
   under management          11,299    10,655    10,843    11,501     7,514

  Equity
  Beginning assets
   under management           3,080     6,414     7,621     7,500     8,716
  Net subscriptions           3,113     1,387       442     1,282       445
  Market appreciation
   (depreciation)               221      (180)     (563)      (66)   (1,365)
  Ending assets
   under management           6,414     7,621     7,500     8,716     7,796

  Alternative investment products
  Beginning assets
   under management           2,086     2,230     2,394     2,818     3,470
  Net subscriptions             111        95       336       584       682
  Market appreciation            33        69        88        68       165
  Ending assets
   under management           2,230     2,394     2,818     3,470     4,317

  Total Separate Accounts
  Beginning assets
   under management          99,220   105,349   111,672   123,099   133,743
  Net subscriptions
   (redemptions)              3,807     5,815     9,647     6,621    (2,974)
  Market appreciation         2,322       508     1,780     4,023     1,942
  Ending assets
   under management        $105,349  $111,672  $123,099  $133,743  $132,711

  Mutual Funds

  BlackRock Funds
  Beginning assets
   under management         $27,339   $29,280   $28,262   $27,819   $26,359
  Net subscriptions
   (redemptions)                994      (168)     (455)    1,463        65
  Market appreciation
   (depreciation)               947      (850)       12    (2,923)   (2,041)
  Ending assets
   under management          29,280    28,262    27,819    26,359    24,383

  BlackRock Global Series
  Beginning assets
   under management              --        --        --        54        75
  Net subscriptions              --        --        54        18        43
  Market appreciation
   (depreciation)                --        --        --         3       (13)
  Ending assets
   under management              --        --        54        75       105

  BPIF*
  Beginning assets
   under management          25,554    25,755    25,615    27,580    36,338
  Net subscriptions
   (redemptions)                201      (140)    1,965     4,662       709
  Exchanges                      --        --        --     4,096        --
  Ending assets
   under management          25,755    25,615    27,580    36,338    37,047

  Closed End
  Beginning assets
   under management           7,340     7,560     7,583     7,634     6,764
  Net redemptions                --       (30)       --      (954)       --
  Market appreciation           220        53        51        84        77
  Ending assets
   under management           7,560     7,583     7,634     6,764     6,841

  Short Term Investment Funds (STIF)*
  Beginning assets
   under management           5,064     4,629     4,205     4,622       490
  Net subscriptions
   (redemptions)               (435)     (424)      417       (36)       59
  Exchanges                      --        --        --    (4,096)       --
  Ending assets
   under management           4,629     4,205     4,622       490       549

  Total Mutual Funds
  Beginning assets
   under management          65,297    67,224    65,665    67,709    70,026
  Net subscriptions
   (redemptions)                760      (762)    1,981     5,153       876
  Market appreciation
   (depreciation)             1,167      (797)       63    (2,836)   (1,977)
  Ending assets
   under management         $67,224   $65,665   $67,709   $70,026   $68,925

  * During the fourth quarter of 2000, $4.1 billion of STIF assets under
    management were exchanged into the BPIF product.

SOURCE: BlackRock, Inc.

Contact: Paul L. Audet of BlackRock, Inc., 212-409-3555, or
invrel@blackrock.com

Website: http://www.blackrock.com/

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