Franklin Resources a global investment management organization operating as Franklin Templeton Investments ended the year with total assets under management of $670.3 billion, up $10.4 billion or 2% during the quarter.
President and CEO Greg Johnson and EVP and CFO Ken Lewis led a pre-recorded audio commentary on Franklin Resources this morning. The duo will also lead a live teleconference http://phx.corporate-ir.net/phoenix.zhtml?c=111222&p=irol-calendar today at 4:30 p.m. ET to answer questions of a material nature.
The company announced net income of $480.8 million or $2.20 per diluted share for the quarter ended Dec. 31, 2011, as compared to $416.0 million or $1.88 per diluted share for the previous quarter and $501.2 million or $2.23 per diluted share for the quarter ended Dec. 31, 2010.
The increase was driven by $27.2 billion in market appreciation, partially offset by net new outflows of $15.6 billion. AUM remained essentially unchanged year over year, as net new flows of $17.6 billion and $12.5 billion from acquisitions were offset by market depreciation of $27.4 billion. Redemptions included $11.1 billion and $12.0 billion from an institutional advisory account during the quarters ended Dec. 31, 2011 and 2010.
Non-operating income for the quarter ended Dec. 31, 2011 included $71.2 million of investment and other income (losses), net, as compared to $(116.5) million for the prior quarter and $46.3 million for the quarter ended Dec. 31, 2010.
Cash and cash equivalents and investments were $9.1 billion at Dec. 31, 2011, as compared to $9.4 billion at Sept. 30, 2011. Total stockholders' equity was $8.9 billion at Dec. 31, 2011, as compared to $9.1 billion at Sept. 30, 2011. The company had 215.9 million shares of common stock outstanding at Dec. 31, 2011, as compared to 217.7 million shares outstanding at Sept. 30, 2011. During the quarter ended Dec. 31, 2011, the company repurchased 3.0 million shares of its common stock for a total cost of $290.9 million.