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