6-K 1 h91059fe6-k.txt AMVESCAP PLC - 3RD QUARTER RESULTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of OCTOBER, 2001 ------------- AMVESCAP PLC ----------------------------------------------- (Translation of registrant's name into English) 11 DEVONSHIRE SQUARE, LONDON EC2M 4YR, ENGLAND ---------------------------------------------- (Address of principal executive offices) [Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F [X] Form 40-F [ ] ----- ----- [Indicate by check mark whether registrant by furnishing the Information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 Yes [ ] No [X] ----- ----- [If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A -------- Description of document filed: AMVESCAP PLC 3RD QUARTER RESULTS -------------------------------- AMVESCAP PLC 666718 EMBARGOED UNTIL 12:00 NOON ON 25 OCTOBER 2001 PLEASE CONFIRM RELEASE MICHAEL PERMAN TEL: 020 7454 3942 AMVESCAP PLC REPORTS RESULTS FOR THREE MONTHS ENDED SEPTEMBER 30, 2001 LONDON, OCTOBER 25, 2001 - AMVESCAP reported that profit before tax, goodwill amortization and exceptional items for the three months ended September 30, 2001 amounted to (pound sterling)110.1 million ($161.8 million) compared to (pound sterling)159.4 million ($235.9 million) for third quarter of 2000, a decrease of 31%. Diluted earnings per share before goodwill amortization and exceptional items amounted to 9.1p for the 2001 period (2000: 15.0p), a decrease of 39%. Revenues decreased to (pound sterling)387.6 million ($569.8 million) from (pound sterling)446.0 million ($660.1 million) in 2000.
------------------------------------------------------------------------------------------------------------------------ RESULTS FOR THREE MONTHS ENDED SEPT 30, Sept 30, SEPT 30, Sept 30, 2001+ 2000+ 2001 2000 -------- --------- ---------------------- ---------------------- Revenues $569.8M $660.1m (POUND STERLING)387.6M (pound sterling)446.0m Profit before tax, goodwill amortization and exceptional items $161.8M $235.9m (POUND STERLING)110.1M (pound sterling)159.4m Earnings per share before goodwill amortization and exceptional items: --basic $.27* $.47* 9.3P 16.0p --diluted $.27* $.44* 9.1P 15.0p Earnings per share: --basic $.09* $.33* 3.0P 11.2p --diluted $.09* $.32* 2.9P 10.7p ------------------------------------------------------------------------------------------------------------------------
* Per American Depositary Share, equivalent to 2 ordinary shares. + For the convenience of the reader, pounds sterling for the period ended September 30, 2001 have been translated to US dollars using $1.47 per (pound sterling)1.00 (2000: $1.48 per (pound sterling)1.00). "The past quarter has presented significant challenges to the global economy, our industry and to our company," said Mr. Charles W. Brady, Executive Chairman. "Our results in the third quarter, while disappointing, reflect the impact of the tragic events of September 11th and the extremely volatile market conditions existing throughout the period." "While the events of September 11th have taken an enormous toll, the recent actions by the Federal Reserve and European central banks should provide a basis for an economic recovery in 2002," noted Mr. Brady. "We are encouraged by the recent improvements in the global market levels. Our funds under management as of October 19, 2001 reached approximately $385 billion and October retail net sales have been positive. We remain committed to delivering excellent client service and strong investment performance to produce value to our shareholders and we are optimistic about the long-term outlook for our business." Profit before tax, goodwill amortization and exceptional items decreased by (pound sterling)34.2 million (8%) during the nine month period of 2001 to (pound sterling)380.8 million ($559.8 million) from (pound sterling)415.0 million in 2000. Diluted earnings per share before goodwill amortization and exceptional items amounted to 31.3p (2000: 40.7p) for the nine months ended September 30, 2001, a decrease of 23%. Revenues for the nine months ended September 30, 2001 amounted to (pound sterling)1,241.1 million ($1,824.4 million) compared to (pound sterling)1,200.2 million ($1,776.3 million) for the corresponding period of 2000. The Company completed three acquisitions in the quarter ended September 30, 2001. Pell Rudman Corporation, the foundation for our private wealth management business, was completed on August 2, 2001. The Company also purchased Grand Pacific, a leading Taiwan SITE and Parkes & Company, a UK real estate advisor. Results of these purchases are included from September 1, 2001. Exceptional charges of (pound sterling)24.4 million were provided in the quarter ending September 30, 2001. Integration costs of acquired companies amounted to (pound sterling)17.7 million with the remainder relating to expenses incurred in the design and planning for a new operating facility which has been postponed indefinitely. Earnings before interest, taxes, amortization and depreciation and exceptional items reached (pound sterling)140.9 million ($207.1 million) and (pound sterling)475.8 million ($699.4 million) for the third quarter and nine months ended September 30, 2001. Funds under management totaled $361.3 billion ((pound sterling)245.8 billion) at September 30, 2001, a decrease of $47.1 billion or 12% for the third quarter of 2001. Funds under management of acquired companies at date of purchase totaled $10.2 billion in the quarter. Average funds under management during the third quarter were $389.1 billion compared to $404.4 billion for the preceding quarter. Net new (lost) business amounted to $(2.6) billion and $(0.5) billion for the third quarter and nine months ended September 30, 2001. Net debt at September 30, 2001 amounted to (pound sterling)753.0 million ($1.1 billion) (excluding client cash) compared to (pound sterling)712.1 million at June 30, 2001 and (pound sterling)691.6 million at December 31, 2000. The Company paid cash of approximately (pound sterling)210.0 million for acquisitions during the third quarter of 2001. Net debt has declined by (pound sterling)255.0 million during 2001 excluding the cash paid for acquisitions. AMVESCAP is a leading independent global investment manager, dedicated to helping people worldwide build their financial security. Operating under the AIM and INVESCO brands, AMVESCAP strives to deliver outstanding investment performance and service through a comprehensive array of retail and institutional products for clients in over 100 countries. The Company is listed on the London, New York, Paris and Toronto Stock Exchanges with the symbol "AVZ." Members of the investment community and general public are invited to listen to the conference call today, Thursday, October 25, 2001 at 9:30 a.m. Eastern Time (2:30 p.m. London time), by dialing one of the following numbers: 1-888-201-4990 for US callers or 712-257-3060 for international callers. An audio replay of the conference call will be available until Thursday, November 1, 2001 at 5:00 pm Eastern Time by calling 1-800-839-8790 for US callers or 402-998-1137 for international callers. AMVESCAP PLC GROUP PROFIT AND LOSS ACCOUNT (IN THOUSANDS)
NINE MONTHS ENDED SEPT 30, ---------------------------------------------------------------------------- 2001 ------------------------------------------------------ ORDINARY EXCEPTIONAL ACTIVITIES ITEMS TOTAL 2000 ------------------ ----------------- ----------------- ------------------ (POUND STERLING) (POUND STERLING) (POUND STERLING) (POUND STERLING) REVENUES 1,241,102 -- 1,241,102 1,200,211 OPERATING EXPENSES (824,438) (49,685) (874,123) (789,036) ----------------- ---------------- ----------------- ------------------ 416,664 (49,685) 366,979 411,175 GOODWILL AMORTIZATION (100,604) -- (100,604) (35,391) ----------------- ---------------- ----------------- ------------------ OPERATING PROFIT 316,060 (49,685) 266,375 375,784 INVESTMENT INCOME 6,723 -- 6,723 13,372 INTEREST PAYABLE (42,606) -- (42,606) (36,391) ----------------- ---------------- ----------------- ------------------ PROFIT BEFORE TAXATION 280,177 (49,685) 230,492 352,765 TAXATION (121,102) 17,309 (103,793) (120,991) ----------------- ---------------- ----------------- ------------------ PROFIT AFTER TAXATION 159,075 (32,376) 126,699 231,774 DIVIDENDS (34,746) -- (34,746) (28,014) ----------------- ---------------- ----------------- ------------------ (POUND STERLING) (POUND STERLING) (POUND STERLING) (POUND STERLING) RETAINED PROFIT FOR THE PERIOD 124,329 (32,376) 91,953 203,760 ================= ================ ================= ================== EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION: ---BASIC 32.3P (4.0)P 28.3P 42.8P* ---DILUTED 31.3P (3.9)P 27.4P 40.7P* ------------------ ----------------- ----------------- ------------------ EARNINGS PER SHARE: ---BASIC 19.8P (4.0)P 15.8P 35.1P ---DILUTED 19.2P (3.9)P 15.3P 33.5P ------------------ ---------------- ----------------- ------------------ AVERAGE SHARES OUTSTANDING: ---BASIC 804,341 804,341 659,944 ---DILUTED 830,650 830,650 701,972 ----------------- ----------------- ----------------- ------------------
*BEFORE GOODWILL AMORTIZATION AND EXCEPTIONAL ITEMS. AMVESCAP PLC GROUP PROFIT AND LOSS ACCOUNT (IN THOUSANDS)
THREE MONTHS ENDED SEPT 30, ------------------------------------------------------------------------- 2001 --------------------------------------------------- ORDINARY EXCEPTIONAL ACTIVITIES ITEMS TOTAL 2000 ----------------- ----------------- ----------------- ------------------ (POUND STERLING) (POUND STERLING) (POUND STERLING) (POUND STERLING) REVENUES 387,550 -- 387,550 445,958 OPERATING EXPENSES (264,466) (24,433) (288,899) (303,074) ----------------- ---------------- ----------------- ------------------ 123,084 (24,433) 98,651 142,884 GOODWILL AMORTIZATION (35,566) -- (35,566) (17,021) ----------------- ---------------- ----------------- ------------------ OPERATING PROFIT 87,518 (24,433) 63,085 125,863 INVESTMENT INCOME 858 -- 858 5,949 INTEREST PAYABLE (13,814) -- (13,814) (16,241) ----------------- ---------------- ----------------- ------------------ PROFIT BEFORE TAXATION 74,562 (24,433) 50,129 115,571 TAXATION (35,059) 8,891 (26,168) (39,211) ----------------- ---------------- ----------------- ------------------ (POUND STERLING) (POUND STERLING) (POUND STERLING) (POUND STERLING) PROFIT AFTER TAXATION 39,503 (15,542) 23,961 76,360 ============== ================= ================= ================== EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION: ---BASIC 9.3P (1.9)P 7.4P 16.0P* ---DILUTED 9.1P (1.9)P 7.2P 15.0P* ----------------- ---------------- ----------------- ------------------ EARNINGS PER SHARE: ---BASIC 4.9P (1.9)P 3.0P 11.2P ---DILUTED 4.8P (1.9)P 2.9P 10.7P ----------------- ---------------- ----------------- ------------------ AVERAGE SHARES OUTSTANDING: ---BASIC 808,794 808,794 679,439 ---DILUTED 829,339 829,339 743,126 ----------------- ---------------- ----------------- ------------------
*BEFORE GOODWILL AMORTIZATION AND EXCEPTIONAL ITEMS. AMVESCAP PLC GROUP BALANCE SHEET (IN THOUSANDS)
SEPT 30, DEC 31, 2001 2000 ----------------- ---------------- (POUND STERLING) (POUND STERLING) FIXED ASSETS GOODWILL 2,733,309 2,375,542 INVESTMENTS 177,470 152,521 TANGIBLE ASSETS 214,522 203,341 ----------------- ---------------- 3,125,301 2,731,404 CURRENT ASSETS DEBTORS 644,904 686,101 INVESTMENTS 104,089 124,311 CASH AT BANK AND IN HAND 220,179 342,073 ----------------- ---------------- 969,172 1,152,485 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (739,293) (764,068) ----------------- ---------------- NET CURRENT ASSETS, EXCLUDING BANKING AND INSURANCE ACTIVITIES 229,879 388,417 ----------------- ---------------- BANKING AND INSURANCE ACTIVITIES, NET 16,101 1,812 ----------------- ---------------- TOTAL ASSETS LESS CURRENT LIABILITIES 3,371,281 3,121,633 LONG-TERM DEBT (918,332) (960,023) PROVISIONS FOR LIABILITIES AND CHARGES (176,550) (58,530) ----------------- ---------------- ----------------- ---------------- (POUND STERLING) (POUND STERLING) NET ASSETS 2,276,399 2,103,080 ================= ================ CAPITAL AND RESERVES (POUND STERLING) (POUND STERLING) CALLED UP SHARE CAPITAL 195,706 192,759 EXCHANGEABLE SHARES 444,172 477,153 SHARE PREMIUM ACCOUNT 1,608,801 1,488,933 PROFIT AND LOSS ACCOUNT 685,373 593,420 ----------------- ---------------- 2,934,052 2,752,265 OTHER RESERVES (657,653) (649,185) ------------------ ---------------- (POUND STERLING) (POUND STERLING) SHAREHOLDERS' FUNDS 2,276,399 2,103,080 ================= ================
AMVESCAP PLC GROUP CASH FLOW STATEMENT (IN THOUSANDS)
NINE MONTHS ENDED ------------------------------------ SEPT 30, SEPT 30, 2001 2000 ----------------- ---------------- (POUND STERLING) (POUND STERLING) OPERATING PROFIT 66,375 375,784 AMORTIZATION AND DEPRECIATION 152,976 72,654 CHANGE IN DEBTORS, CREDITORS, AND OTHER 79,353 8,844 ----------------- ---------------- NET CASH INFLOW FROM OPERATING ACTIVITIES 498,704 457,282 ----------------- --------------- BANKING AND INSURANCE ACTIVITIES (9,121) 3,053 INTEREST PAID, NET OF INVESTMENT INCOME (24,197) (14,833) TAXATION (109,241) (99,097) CAPITAL EXPENDITURES, NET OF SALES (56,254) (38,121) NET PURCHASES OF FIXED ASSET INVESTMENTS (23,714) (26,169) ACQUISITIONS (316,349) (153,422) DIVIDENDS PAID (48,015) (36,439) NET REPAYMENT OF DEBT (25,238) (82,096) FOREIGN EXCHANGE IN CASH AT BANK AND IN HAND (8,469) 26,590 ----------------- ---------------- (POUND STERLING) (POUND STERLING) (DECREASE)/INCREASE IN CASH AT BANK AND IN HAND (121,894) 36,748 ================= ================
AMVESCAP PLC SEGMENTAL INFORMATION (IN THOUSANDS)
NINE MONTHS ENDED SEPT 30, 2001 -------------------------------------------------- REVENUES EXPENSES OPER. PROFIT ----------------- ---------------- ---------------- (POUND STERLING) (POUND STERLING) (POUND STERLING) MANAGED PRODUCTS 760,252 (420,729) 339,523 INVESCO INSTITUTIONAL 157,715 (117,800) 39,915 INVESCO GLOBAL 273,670 (207,821) 65,849 INVESCO RETIREMENT 43,186 (37,867) 5,319 PRIVATE WEALTH MANAGEMENT 4,618 (4,338) 280 NEW BUSINESS 1,661 (9,155) (7,494) CORPORATE -- (26,728) (26,728) --------------- --------------- ---------------- 1,241,102 (824,438) 416,664 GOODWILL AMORTIZATION -- (100,604) (100,604) --------------- --------------- ---------------- (POUND STERLING) (POUND STERLING) (POUND STERLING) 1,241,102 (925,042) 316,060 =============== =============== ================
NINE MONTHS ENDED SEPT 30, 2000 -------------------------------------------------- REVENUES EXPENSES OPER. PROFIT ----------------- ---------------- ---------------- (POUND STERLING) (POUND STERLING) (POUND STERLING) MANAGED PRODUCTS 772,518 (390,458) 382,060 INVESCO INSTITUTIONAL 159,065 (117,459) 41,606 INVESCO GLOBAL 233,201 (167,020) 66,181 INVESCO RETIREMENT 35,090 (32,219) 2,871 NEW BUSINESS 337 (15,908) (15,571) CORPORATE -- (39,142) (39,142) --------------- --------------- ---------------- 1,200,211 (762,206) 438,005 GOODWILL AMORTIZATION -- (35,391) (35,391) --------------- --------------- ---------------- (POUND STERLING) (POUND STERLING) (POUND STERLING) 1,200,211 (797,597) 402,614 =============== =============== ================
NOTES 1. The taxation charge for the nine months ended September 30, 2001 is estimated based on the total expected tax charge for the year. A significant proportion of the charge is expected to arise from US operations. 2. The Directors consider that profit before goodwill amortization and exceptional items is a more appropriate basis for the calculation of earnings per share since this represents a more consistent measure of operating performance.
2001 ---- PROFIT BEFORE GOODWILL AMORTIZATION AND NUMBER OF EXCEPTIONAL ITEMS SHARES PER SHARE (POUND STERLING)'000 '000 AMOUNT ---------------------- --------------- ------------------ BASIC EARNINGS PER SHARE 259,679 804,341 32.3P ================== ISSUANCE OF OPTIONS -- 26,309 ---------------------- --------------- DILUTED EARNINGS PER SHARE 259,679 830,650 31.3P ====================== ================ ==================
2000 ---- PROFIT BEFORE GOODWILL AMORTIZATION AND NUMBER OF EXCEPTIONAL ITEMS SHARES PER SHARE (POUND STERLING)'000 '000 AMOUNT ---------------------- --------------- ------------------ BASIC EARNINGS PER SHARE 282,190 659,944 42.8P ================= CONVERSION OF ESDS 3,197 9,358 ISSUANCE OF OPTIONS -- 32,670 ---------------------- --------------- DILUTED EARNINGS PER SHARE 285,387 701,972 40.7P ====================== =============== =================
3. An exceptional item of (pound sterling)49.7 million was recognized for the nine months ended September 30, 2001, including (pound sterling)24.4 million of exceptional charges during the third quarter.
IN THOUSANDS SEPTEMBER 30, ----------------------------------------------------------------------- 2001 2000 ----------------------------------------------- ---------------------- 3 MONTHS 9 MONTHS 9 MONTHS ----------------------- ---------------------- ---------------------- ACQUISITION - RELATED COSTS TRIMARK (POUND STERLING) -- (POUND STERLING) -- (POUND STERLING)20,333 NAM -- 21,045 -- PELL RUDMAN 13,645 13,645 -- OTHERS 4,094 8,301 -- INVESCO INSTITUTIONAL RESTRUCTURE -- -- 6,497 BUILDING TERMINATION COSTS 6,694 6,694 -- ---------------------- ---------------------- ---------------------- (POUND STERLING)24,433 (POUND STERLING)49,685 (POUND STERLING)26,830 ====================== ====================== =====================
AMVESCAP PLC FUNDS UNDER MANAGEMENT (IN BILLIONS) MANAGED PRODUCTS INVESCO
MANAGED PRODUCTS --------------------------------- INVESCO TOTAL AIM INVESCO INST GLOBAL PWM ----- --- ------- ---- ------ --- DEC 31, 2000 $ 402.6 $ 193.2 $ 43.2 $ 99.6 $ 66.6 $ -- MARKET GAINS/(LOSS) (77.8) (37.5) (15.9) (8.4) (15.4) (0.6) ACQUISITIONS 32.4 -- -- 17.7 6.7 8.0 NET NEW (LOST) BUSINESS (0.5) 0.4 0.7 -- (1.5) (0.1) CHANGE IN US MONEY MARKET FUNDS 5.6 5.5 (0.4) -- 0.5 -- TRANSFERS -- 0.3 -- -- (0.3) -- FOREIGN CURRENCY (1.0) (0.7) -- -- (0.3) -- --------------- --------------- --------------- --------------- -------------- ------------- SEPTEMBER 30, 2001 $ 361.3 $ 161.2 $ 27.6 $ 108.9 $ 56.3 $ 7.3 =============== =============== =============== =============== ============== ============= (POUND (POUND (POUND (POUND (POUND (POUND SEPTEMBER 30, 2001 + STERLING)245.8 (STERLING)109.7 (STERLING) 18.8 (STERLING) 74.1 (STERLING)38.3 (STERLING)4.9 =============== =============== =============== =============== ============== =============
+ Translated at $1.47 per (pound sterling)1.00. Note: INVESCO Retirement has $31.6 billion in assets under administration as of September 30, 2001, compared to $27.6 billion as of December 31, 2000. AMVESCAP PLC RECONCILIATION TO US ACCOUNTING PRINCIPLES (IN THOUSANDS)
NINE MONTHS ENDED SEPT 30, ------------------------------------------------ 2001 2000 ----------------------- ----------------------- NET PROFIT UNDER UK GAAP (POUND STERLING)126,699 (POUND STERLING)231,774 US GAAP ADJUSTMENTS: ACQUISITION ACCOUNTING (20,897) (48,475) TAXATION (32,700) (12,170) OTHER 2,163 508 ----------------------- ----------------------- NET INCOME UNDER US GAAP (POUND STERLING) 75,265 (POUND STERLING)171,637 ======================= ======================= EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION: --BASIC 28.1P 38.7P --DILUTED 27.2P 36.9P EARNINGS PER SHARE: --BASIC 9.4P 26.0P --DILUTED 9.1P 24.9P
SEPT 30, 2001 DEC 31, 2000 ----------------------- ----------------------- (POUND (POUND SHAREHOLDERS' FUNDS UNDER UK GAAP STERLING) 2,276,399 STERLING) 2,103,080 US GAAP ADJUSTMENTS: ACQUISITION ACCOUNTING 998,787 1,020,052 TREASURY STOCK (196,121) (168,292) DIVIDENDS -- 47,813 OTHER 5,241 15,968 ----------------------- ----------------------- (POUND (POUND SHAREHOLDERS' EQUITY UNDER US GAAP STERLING) 3,084,306 STERLING) 3,018,621 ======================= =======================
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMVESCAP PLC ------------------------- (Registrant) Date 25TH OCTOBER, 2001 By /s/ MICHAEL S. PERMAN ------------------ ---------------------- (Signature) Michael S. Perman Company Secretary