News Column

Eaton Vance Corp. Report for the Three and Six Month Periods Ended April 30, 2014

June 7, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Eaton Vance Corp. (NYSE: EV) reported adjusted earnings per diluted share((1)) of $0.59 for the second quarter of fiscal 2014, an increase of 13 percent over the $0.52 of adjusted earnings per diluted share in the second quarter of fiscal 2013 and an increase of 2 percent over the $0.58 of adjusted earnings per diluted share in the first quarter of fiscal 2014. Net income and gains on seed capital investments contributed $0.01 per diluted share in each of the compared quarters.

As determined under U.S. generally accepted accounting principles ("GAAP"), the Company earned $0.59 in the second quarter of fiscal 2014, $0.50 in the second quarter of fiscal 2013 and $0.56 in the first quarter of fiscal 2014. Adjusted earnings differed from GAAP earnings in the second quarter of fiscal 2013 and the first quarter of fiscal 2014 due to increases in the estimated redemption value of non-controlling interests in affiliates redeemable at other than fair value, which reduced GAAP earnings by $0.01 and $0.02 per diluted share, respectively. In the second quarter of fiscal 2013, adjusted earnings also differed from GAAP earnings due to the closed-end fund structuring fees recognized in connection with the $205 million initial public offering of Eaton Vance Municipal Income Term Trust during the quarter, which reduced GAAP earnings per diluted share by $0.01.

Adjusted earnings per diluted share were $1.17 in the six months ended April 30, 2014 compared to $1.01 in the six months ended April 30, 2013, an increase of 16 percent. The Company's GAAP earnings per diluted share were $1.15 and $0.89, respectively, for the compared semi-annual periods.

Net outflows of $0.9 billion from long-term funds and separate accounts in the second quarter of fiscal 2014 compare to net inflows of $6.6 billion in the second quarter of fiscal 2013 and net outflows of $1.1 billion in the first quarter of fiscal 2014.

"Eaton Vance achieved record earnings in the second quarter and first six months of fiscal 2014," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "While flows in the first half were disappointing, the rapid development of a number of newer franchises positions us for resumed organic growth."

Consolidated assets under management were $285.9 billion on April 30, 2014, an increase of 10 percent from the $260.3 billion of managed assets on April 30, 2013 and an increase of 3 percent from the $278.6 billion of managed assets on January 31, 2014. The increase in ending assets under management from April 30 of last year reflects net inflows of $10.7 billion and market price appreciation of $14.9 billion. The sequential quarterly increase in ending assets under management reflects market price appreciation of $8.2 billion offset by net outflows of $0.9 billion.

Average consolidated assets under management were $284.4 billion in the second quarter of fiscal 2014, up 12 percent from $253.5 billion in the second quarter of fiscal 2013 and up 1 percent from $282.3 billion in the first quarter of fiscal 2014.

Attachments 5 and 6 summarize the Company's consolidated assets under management and asset flows by investment mandate and investment vehicle. Attachment 7 summarizes the Company's consolidated assets under management by investment affiliate.

As shown in Attachment 6, consolidated gross sales and other inflows were $22.8 billion in the second quarter of fiscal 2014, down 8 percent from $24.7 billion in the second quarter of fiscal 2013 and down 23 percent from $29.5 billion in the first quarter of fiscal 2014. Gross redemptions and other outflows were $23.7 billion in the second quarter of fiscal 2014, up 31 percent from $18.0 billion in the second quarter of fiscal 2013 and down 23 percent from $30.6 billion in the first quarter of fiscal 2014.

As of April 30, 2014, 49 percent-owned affiliate Hexavest, Inc. ("Hexavest") managed $17.1 billion of client assets, an increase of 12 percent from the $15.3 billion of managed assets on April 30, 2013 and an increase of 6 percent from the $16.1 billion of managed assets on January 31, 2014. Net outflows from Hexavest-managed funds and separate accounts were $0.1 billion in the second quarter of fiscal 2014, $0.3 billion in the second quarter of fiscal 2013 and $0.4 billion in the first quarter of fiscal 2014. Attachment 9 summarizes assets under management and asset flow information for Hexavest. Other than Eaton Vance-sponsored funds for which Hexavest is advisor or sub-advisor, the managed assets and flows of Hexavest are not included in Eaton Vance consolidated totals.

Keywords for this news article include: Eaton Vance Corp, Banking and Finance.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Investment Weekly News


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters