Franklin Resources(BEN) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $124.2 million, a decrease of 51% from the previous quarter and 36% year-over-year[3]. - Adjusted net income was $306.6 million, down 7% from the previous quarter and 3% from the same quarter last year[5]. - Operating income decreased to $129.3 million, down 37% from the previous quarter and 49% year-over-year[5]. - Diluted earnings per share were $0.23, a decline of 54% from the previous quarter and 39% year-over-year[5]. - Net income attributable to Franklin Resources, Inc. decreased by 51% to $124.2 million from $251.3 million in the previous quarter[11]. - Basic earnings per share fell by 54% to $0.23 compared to $0.50 in the prior quarter[11]. - Adjusted diluted earnings per share decreased to $0.56 from $0.61 year-over-year, a decline of 8.2%[23]. Revenue and AUM Growth - Total operating revenues increased to $2,152.8 million, reflecting an 8% quarter-over-quarter growth and a 12% year-over-year increase[5]. - Total operating revenues for the three months ended March 31, 2024, increased by 8% to $2,152.8 million compared to $1,991.1 million in the previous quarter[11]. - Ending Assets Under Management (AUM) reached $1,644.7 billion, a 16% increase from $1,422.1 billion year-over-year[12]. - Assets Under Management (AUM) grew to $1,644.7 billion, a 13% increase during the quarter, driven by the acquisition of Putnam Investments[5]. - The company reported total assets under management (AUM) of over $1.6 trillion as of March 31, 2024[25]. Inflows and Outflows - Long-term net inflows reached $6.9 billion, with significant contributions from fixed income, multi-asset, and alternative assets[3]. - Long-term inflows increased by 37% to $84.9 billion compared to $61.8 billion in the same period last year[12]. - Long-term net flows for the three months ended March 31, 2024, were positive at $6.9 billion, compared to a negative $5.0 billion for the previous quarter[15]. - Cash management net flows for the three months ended March 31, 2024, were negative at $(4.8) billion[15]. Acquisition Impact - The acquisition of Putnam Investments added $148.3 billion to AUM and enhanced investment capabilities[4]. - The company reported acquisition-related items contributing $148.3 billion to AUM during the three months ended March 31, 2024[15]. - Acquisition-related retention expenses increased significantly to $104.5 million for the quarter, compared to $23.2 million in the same period last year[23]. Market Presence and Strategy - The company serves clients in over 150 countries, indicating a strong global presence and market expansion strategy[25]. - Franklin Resources, Inc. emphasizes its commitment to investment management expertise and technology solutions to enhance client outcomes[25]. Other Financial Metrics - The institutional pipeline of won-but-unfunded mandates grew to nearly $20 billion[3]. - Investment management fees rose by 4% to $1,713.9 million from $1,652.2 million quarter-over-quarter[11]. - The average AUM for the three-month period increased by 13% to $1,581.1 billion from $1,394.2 billion year-over-year[13]. - Adjusted operating income for the three months ended March 31, 2024, was $419.6 million, slightly up from $417.0 million in the previous quarter[22]. - Adjusted operating margin for the three months ended March 31, 2024, was 25.2%, compared to 27.3% in the previous quarter[22].