BLK News -
BlackRock, Inc. Announces Record Full Year 1999 and Fourth Quarter Results With Year-end Assets Under Management at $164.5 Billion
NEW YORK, Jan. 13 /PRNewswire/ -- BlackRock, Inc. (NYSE: BLK - news) today reported record net income for 1999 of $59.4 million, a 67% increase over the $35.6 million earned in 1998. Diluted earnings per share for 1999 were $1.04 as compared to $.66 for 1998. Adjusted operating revenues for 1999 were $377.8 million, a 36% increase over the $278.3 million generated in 1998. Total revenues for 1999 and 1998 were $381.0 million and $339.5 million, respectively. BlackRock Asset Investors (BAI), which was liquidated in the third quarter of 1999, generated $61.2 million in revenue for 1998.
Net income for the fourth quarter of 1999 was $17.2 million, a 33% increase over the $13 million reported for the fourth quarter of 1998. Diluted earnings per share for the fourth quarter of 1999 were $.27 as compared to $.24 for 1998. Operating revenues for the fourth quarter of 1999 were $100.8 million, an 18% increase over the $85.3 million of adjusted operating revenues for the fourth quarter of 1998. Total revenues for the fourth quarter of 1998 were $129.7 million, which included $44.4 million from BAI.
''I am delighted with BlackRock's performance during the fourth quarter and for 1999 as a whole,'' commented Laurence D. Fink, Chairman and Chief Executive Officer. ''We continued to achieve strong investment performance and have attracted substantial assets for new and existing clients across our products. In particular, we had a spectacular year in fixed income, where we raised more than $23 billion in net new business. Liquidity assets grew by more than $6.5 billion in the fourth quarter alone, although we assume that much of those assets represent temporary deployment of Y2K cash balances. Building our equity business continues to be a key priority, and I am pleased with the progress of integrating our new European equity team, with whom we have already raised $2 billion. Overall, we are proud of our accomplishments and eager to continue pursuing our strategies for the future.''
Fourth Quarter Highlights:
-- Assets under management rose to a record $164.5 billion, an 11%
increase from the $148.1 billion reported at September 30, 1999 and a
26.0% increase from the $130.6 billion reported at December 31, 1998.
-- BlackRock continued to generate strong new business with net
subscriptions for the fourth quarter and full year 1999 of
$14.8 billion and $32.7 billion, respectively.
-- Mutual fund advisory fees were $53.4 million, a 12.7% increase over the
$47.4 million earned in 1998.
-- Separate account advisory fees were $43.6 million, a 31.0% increase
from the $33.3 million earned in 1998.
-- Adjusted operating income was $30.2 million, a 45.6% increase over the
$20.7 million earned in the fourth quarter of 1998. Adjusted operating
income reflects the exclusion of BAI results for 1998 and closed-end
fund offering costs for 1999 and 1998.
-- BlackRock's adjusted operating margin, after deducting fund
administration and servicing costs paid to PNC affiliates from adjusted
operating revenues, was 36.7% as compared to 30.6% for the fourth
quarter of 1998.
Revenue growth for 1999, excluding BAI, was strong across all product categories, particularly separate accounts which rose 52.0% from $101.4 million in 1998 to $154.0 million for 1999. Separate account revenue growth was primarily attributable to $23.3 billion in new fixed income business, a full year of advisory fees from Magnetite (CBO fund launched in December, 1998), and strong investment performance on Obsidian, a family of fixed income hedge funds. Separate account revenues were also modestly impacted by $7.1 billion in new liquidity business associated with PFPC Worldwide security lending assets. Other income, which largely reflects BlackRock's risk management activities, increased 33.5% from $14.4 million in 1998 to $19.3 for 1999. Operating income for the year ended December 31, 1999 of $110.9 million reflected a $31.5 million or 39.8% increase from the $79.4 million earned in 1998.
About BlackRock
BlackRock is one of the largest publicly traded investment management firms in the United States with $164.5 billion of assets under management as of December 31, 1999. BlackRock manages assets on behalf of more than 3,000 institutions and 150,000 individuals through a variety of equity, fixed income, liquidity and alternative investment separate accounts and mutual funds, including the Company's flagship fund families, BlackRock Funds and Provident Institutional Funds. In addition, risk management and advisory services are provided to a growing number of large institutional fixed income investors. BlackRock is a majority-owned subsidiary of PNC Bank Corp. (NYSE: PNC - news). Visit BlackRock on the World Wide Web at www.blackrock.com.
PNC Bank Corp. (NYSE: PNC - news), headquartered in Pittsburgh, is one of the largest diversified financial services organizations in the United States. Its major businesses include PNC Regional Bank, PNC Advisors, BlackRock, PFPC Worldwide, PNC Institutional Bank, PNC Secured Finance and PNC Mortgage. Visit PNC Bank on the World Wide Web at pncbank.com.
This press release contains forward-looking statements with respect to financial performance and other financial and business matters within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as ''believe,'' ''expect,'' ''anticipate,'' ''intend,'' ''estimate,'' ''may increase,'' ''may fluctuate,'' and variations of such words and similar expressions, or future or conditional verbs such as ''will,'' ''should,'' ''would,'' and ''could.'' The Company cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, all of which change over time, and the Company assumes no duty to update forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements. In addition to factors previously disclosed by the Company, the factors underlying these forward-looking statements include, but are not limited to, the performance of financial markets, the investment performance of BlackRock's sponsored investment products and separately managed accounts, government regulations including tax law changes, competitive conditions, future acquisitions, the impact, extent and timing of technological changes, and general economic conditions including changes in market interest rates.
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