NEWPORT BEACH, Calif., Oct. 27, 1999 (PRIMEZONE) -- PIMCO Advisors Holdings L.P. (NYSE:PA) today reported earnings for the third quarter ended September 30, 1999 of $21.9 million, or $0.42 per unit and record net inflows of $6.9 billion for the quarter.
3 Mos 3 Mos 9 Mos 9 Mos Ending Ending Ending Ending 9/30/99 9/30/98 9/30/99 9/30/98 (in 000's, except per unit data) PIMCO Advisors Holdings L.P. Recurring Earnings Per Unit, Diluted $0.42 $0.39 $1.22 $1.11 Non-Recurring Items --- --- (0.14) --- Earnings Per Unit, diluted $0.42 $0.39 $1.08 $1.11 PIMCO Advisors L.P. Assets Under Management (in millions) $256,153 $225,886 $256,153 $225,886 Revenues $242,927 $213,937 $716,195 $624,406 Income Before non-Recurring Items $ 59,316 $ 51,252 $169,538 $153,154 Net Income $ 59,316 $ 51,252 $154,039 $153,154
PIMCO Advisors Holdings ("Holdings") derives its income from its 44 percent ownership in PIMCO Advisors L.P., the operating company. Operating profit available for distribution for Holdings reflects its proportionate share of the operating company's cash distributions.
Net income for Holdings during the three months ended September 30, 1999 increased 10.7 percent to $21.9 million, or $0.42 per unit, compared with net income of $19.8 million, or $0.39 per unit, for the same quarter last year. For the nine months ended September 30, 1999, net income increased 12.2 pct before the effect of non-recurring items in the first two quarters, and was $62.5 million, or $1.22 per unit, compared to net income of $55.7 million, or $1.11 per unit, for the same period of 1998. Including the effect of non-recurring items, net income for Holdings for the nine months was $55.7 million.
At the operating company, net income increased 15.7 percent for the third quarter to $59.3 million, compared with net income of $51.3 million in the third quarter last year. Revenues increased 13.6 percent to $242.9 million from $213.9 million in revenues in the same quarter last year. For the nine months ended September 30, 1999, net income rose 10.7 pct before the effect of non-recurring items in the first two quarters, and was $169.5 million compared with net income of $153.2 million in the same period last year. Revenue rose 14.7 percent to $716.2 million, compared to $624.4 million in the same period in 1998. Including the effect of the non-recurring items, net income at the operating company for the nine months ended September 30, 1999 was $154.0 million.
William Cvengros, chief executive officer of PIMCO Advisors commented, "This quarter we achieved a record $6.9 billion in net inflows primarily as a result of new business growth at our fixed income franchise, Pacific Investment Management Company. During a variety of market conditions, PIMCO Advisors has now achieved 19 consecutive quarters of net cash inflows."
Highlights for the third quarter include:
* Record net cash inflows of $6.9 billion -- consisting of inflows of $8.9 billion into Pacific Investment Management and outflows of $2.0 billion from PIMCO Advisor's equity subsidiaries. Equity outflows occurred primarily at Oppenheimer Capital.
* Assets under management reached a record $256.2 billion at September 30, 1999. The overall increase in assets in the quarter of $1.6 billion reflects a net equity market decline of $5.4 billion. The resulting mix of the Company's managed assets is 67 percent fixed-income and 33 percent equities.
* Holdings declared a third quarter distribution of $0.60 - an increase of $0.02 from the $0.58 declared in the second quarter of this year, and $0.05 higher than the distribution in the third quarter of last year.
* PIMCO Funds year-to-date net flows through September aggregate $9.7 billion which is 40 percent higher than 1998 flows for the same period.
* PIMCO Global grew to $16.1 billion under management compared to $14.1 billion at the beginning of the year primarily due to net inflows.
PIMCO Advisors is one of the largest investment management companies in the United States with over $256 billion of assets under management. Its investment advisor subsidiaries, led by Pacific Investment Management Company and Oppenheimer Capital, are widely recognized for consistently posting attractive performance and providing high quality service to more than 1,600 institutional clients worldwide, including one-third of the nation's largest 100 corporations. In addition, PIMCO Advisors manages a family of 53 stock and bond mutual funds available to both retail and institutional investors.
Except for the historical information and discussions contained herein, statements contained in this news release constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO Advisors L.P.'s sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. PIMCO Advisors Holdings L.P. cautions readers to carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO Advisors Holdings L.P. undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
PIMCO Advisors Holdings L.P. (1) (in 000's except per unit data) For the For the 3 months 3 months Ending Ending Pct 9/30/99 9/30/98 Change Equity in earnings of Pimco Advisors L.P $ 25,971 $ 22,669 14.6 pct Provision for taxes and other 4,038 2,849 Net Income $ 21,933 $ 19,820 10.7 pct Net Income $ 21,933 $ 19,820 10.7 pct Share of distributed non cash charges at Pimco Advisors L.P. 8,218 7,720 6.5 pct Operating Profit Available for distribution $ 30,151 $ 27,540 9.5 pct Weighted average units Outstanding 49,478 48,250 Net income per unit Basic (1) $ 0.44 $ 0.41 7.3 pct Diluted (1) $ 0.42 $ 0.39 7.7 pct Distributions Declared $ 0.60 $ 0.55 (1) Reflects a non-recurring charge of $0.17 per unit in the first quarter of 1999 and a non-recurring gain of $0.03 per unit in the second quarter of 1999. Holdings' net income prior to the non-recurring items was $6.8 million higher through September 30,1999. PIMCO Advisors Holdings L.P. (1) (in 000's except per unit data) For the For the 9 months 9 months Ending Ending Pct 9/30/99 9/30/98 Change Equity in earnings of Pimco Advisors L.P. $ 67,434 $ 66,341 1.6 pct Provision for taxes and other 11,728 $10,622 Net Income $ 55,706 $ 55,719 0.0 pct Net Income $ 55,706 $ 55,719 0.0 pct Share of distributed non cash charges at Pimco Advisors L.P. 32,477 19,767 64.3 pct Operating Profit Available for Distribution $ 88,183 $ 75,486 16.8 pct Weighted average units Outstanding 49,057 47,238 Net income per unit Basic (1) $ 1.14 $ 1.18 -3.4 pct Diluted (1) $ 1.08 $ 1.11 -2.7 pct Distributions Declared $ 1.76 $ 1.61 (1) Reflects a non-recurring charge of $0.17 per unit in the first quarter of 1999 and a non-recurring gain of $0.03 per unit in the second quarter of 1999. Holdings' net income prior to the non-recurring items was $6.8 million higher through September 30,1999. PIMCO Advisors L.P. (in 000's except per unit data) For the For the 3 months 3 months Ending Ending Pct 9/30/99 9/30/98 Change Net income(1) $ 59,316 $ 51,252 15.7 pct Non-cash charges 19,125 20,374 -6.1 pct Other (270) 45 -700.0 pct Operating Profit Available for Distribution $ 78,171 $ 71,671 9.1 pct OPAD per Unit (2) $ 0.69 $ 0.66 4.5 pct Distributions Declared $ 0.69 $ 0.63 9.5 pct (1) Reflects a non-recurring charge of $19.4 million or $0.17 per unit in the first quarter of 1999 related to severance and relocation at Oppenheimer Capital and a non-recurring gain of $3.9 million or $0.03 per unit in the second quarter of 1999 related to the sale of the Blairlogie sub- partnership. (2) Reflects the $0.08 per unit cash portion of the non- recurring charge in the first quarter of 1999 and $0.03 per unit cash portion of the non-recurring gain in the second quarter of 1999. PIMCO Advisors L.P. (in 000's except per unit data) For the For the 9 months 9 months Ending Ending Pct 9/30/99 9/30/98 Change Net income(1) $154,039 $153,154 0.6 pct Non-cash charges 68,105 60,205 13.1 pct Other (221) 215 -202.8 pct Operating Profit Available for Distribution $221,923 $213,574 3.9 pct OPAD per Unit (2) $ 1.98 $ 1.97 0.5 pct Distributions Declared $ 2.03 $ 1.83 10.9 pct (1) Reflects a non-recurring charge of $19.4 million or $0.17 per unit in the first quarter of 1999 related to severance and relocation at Oppenheimer Capital and a non-recurring gain of $3.9 million or $0.03 per unit in the second quarter of 1999 related to the sale of the Blairlogie sub- partnership. (2) Reflects the $0.08 per unit cash portion of the non- recurring charge in the first quarter of 1999 and $0.03 per unit cash portion of the non-recurring gain in the second quarter of 1999. PIMCO Advisors L.P. (in 000's except per unit data) For the For the 3 months 3 months Ending Ending Pct 9/30/99 9/30/98 Change Revenues Investment advisory fees: Private accounts $135,649 $135,109 0.4 pct Proprietary funds 77,536 57,518 34.8 pct Distribution, servicing fees 29,742 21,310 39.6 pct Total revenues 242,927 213,937 13.6 pct Expenses (1) Compensation and benefits 97,954 88,898 10.2 pct Commissions 21,233 20,048 5.9 pct Restricted unit and option plans 5,362 6,611 -18.9 pct Marketing and promotional 8,965 6,690 34.0 pct Occupancy and equipment 10,919 6,169 77.0 pct General and administrative 15,971 11,449 39.5 pct Insurance 564 690 -18.3 pct Professional fees 2,429 1,986 22.3 pct Amortization of intangibles 13,763 13,763 0.0 pct Other (income) expense, net 6,451 6,381 1.1 pct Total expenses 183,611 162,685 12.9 pct Net Income (1) $ 59,316 $ 51,252 15.7 pct Weighted Average Units Outstanding (all classes): Basic 112,461 109,008 Diluted 117,624 114,184 Net income per unit: Basic (1) $ 0.53 $ 0.47 Diluted (1) (2) $ 0.50 $ 0.45 Assets under management by investment type (in 000,000's): Institutional separate Fixed income $117,361 $102,109 14.9 pct Equity 44,441 45,305 -1.9 pct Retail products and mutual funds 94,351 78,472 20.2 pct Total $256,153 $225,886 13.4 pct Assets under management by mix (in 000,000's): Fixed income $168,073 $141,816 18.5 pct Equity 84,818 80,993 4.7 pct Money Market 3,262 3,077 6.0 pct Total $256,153 $225,886 13.4 pct (1) Reflects a non-recurring charge of $19.4 million or $0.17 per unit in the first quarter of 1999 related to severance and relocation at Oppenheimer Capital and a non-recurring gain of $3.9 million or $0.03 per unit in the second quarter of 1999 related to the sale of the Blairlogie sub partnership. (2) Does not include the weighted average effect of 2.4 million units issuable upon exchange of approximately $80.5 million of 6 pct debt because such exchange would be antidilutive to earnings per unit. PIMCO Advisors L.P. (in 000's except per unit data) For the For the 9 months 9 months Ending Ending Pct 9/30/99 9/30/98 Change Investment advisory fees: Private accounts $417,191 $406,470 2.6 pct Proprietary funds 215,933 158,141 36.5 pct Distribution, servicing fees 83,071 59,795 38.9 pct Total revenues 716,195 624,406 14.7 pct Expenses (1) Compensation and benefits 295,837 262,990 12.5 pct Commissions 67,786 57,073 18.8 pct Restricted unit and option plans 26,816 18,916 41.8 pct Marketing and promotional 26,946 19,409 38.8 pct Occupancy and equipment 30,426 16,729 81.9 pct General and administrative 46,160 31,256 47.7 pct Insurance 1,708 2,321 -26.4 pct Professional fees 6,474 5,930 9.2 pct Amortization of intangibles 41,289 41,289 0.0 pct Other (income) expense, net 18,714 15,339 22.0 pct Total expenses 562,156 471,252 19.3 pct Net Income (1) $154,039 $153,154 0.6 pct Weighted Average Units Outstanding (all classes): Basic 111,759 108,223 Diluted 116,748 113,824 Net income per unit: Basic (1) $ 1.38 $ 1.42 Diluted (1) (2) $ 1.32 $ 1.35 (1) Reflects a non-recurring charge of $19.4 million or $0.17 per unit in the first quarter of 1999 related to severance and relocation at Oppenheimer Capital and a non-recurring gain of $3.9 million or $0.03 per unit in the second quarter of 1999 related to the sale of the Blairlogie sub partnership. (2) Does not include the weighted average effect of 2.4 million units issuable upon exchange of approximately $80.5 million of 6 pct debt because such exchange would be antidilutive to earnings per unit. CONTACT: Investor Contact: PIMCO Advisors Kelli Powell 800-387-4626 Media Contact: Steve Hawkins/Linda Press Sitrick And Company 310-788-2850