/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.
