6-K 1 h95844ie6-k.txt AMVESCAP PLC - 1ST 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 APRIL 2002 ---------- 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: 1ST QUARTER RESULTS AMVESCAP PLC 513599 IMMEDIATE RELEASE 24 JANUARY 2002 PLEASE CONFIRM RELEASE MICHAEL PERMAN TEL: 020 7454 3942 AMVESCAP PLC REPORTS RESULTS FOR THREE MONTHS ENDED MARCH 31, 2002 LONDON, APRIL 24, 2002 - AMVESCAP reported that profit before tax, exceptional item and goodwill amortization for the three months ended March 31, 2002 amounted to (pounds sterling)97.5 million ($139.4 million) compared to (pounds sterling)135.0 million ($191.7 million) for the first quarter of 2001. Revenues totaled (pounds sterling)377.7 million ($540.1 million) for the 2002 quarter, compared to (pounds sterling)427.3 million ($606.8 million) in 2001. Diluted earnings per share before goodwill amortization and exceptional items amounted to 8.2p for the 2002 period (2001: 11.3p) a decrease of 27% from the first quarter of 2001. (NYSE: AVZ).
------------------------------------------------------------------------------------------------------------------------------- Results for Three Months Ended 2002 2001 2002++ 2001++ ----------------------- ----------------------- -------------- -------------- REVENUES (POUNDS STERLING)377.7M (POUNDS STERLING)427.3M $540.1M $606.8M PROFIT BEFORE TAX, GOODWILL AMORTIZATION AND EXCEPTIONAL ITEMS (POUNDS STERLING) 97.5M (POUNDS STERLING)135.0M $139.4M $191.7M EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION: --BASIC 8.3P 11.2P* $0.24+ $0.32*+ --DILUTED 8.2P 10.8P* $0.23+ $0.31*+ EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION AND EXCEPTIONAL ITEMS: --BASIC 8.3P 11.7P* $0.24+ $0.33*+ --DILUTED 8.2P 11.3P* $0.23+ $0.32*+ -------------------------------------------------------------------------------------------------------------------------------
* Restated for adoption of FRS 19, "Deferred Tax." + Per American Depository Share equivalent to 2 ordinary shares. ++ For the convenience of the reader, pounds sterling for the three months ended March 31, 2002 have been translated to US dollars using $1.43 per (pounds sterling)1.00 (2001: $1.42 per (pounds sterling)1.00). "The global markets remained sluggish during the quarter due to the uncertainty in the Middle East, terrorism, and the general economic climate," said Mr. Charles W. Brady, Executive Chairman. "We expect these market conditions will continue further into the year; however, signs of some economic recovery appear to be surfacing. This recovery could be a positive for the later part of the year. We remain optimistic about the long-term and continue to be focused on expense controls and on the opportunities that will allow us to benefit from operating leverage produced by improving markets." The Company adopted FRS 19, "Deferred Tax" in 2001 and restated the prior year's profit and loss accounts to reflect these new reporting requirements. Funds under management totaled $400.0 billion at March 31, 2002, an increase of $2.1 billion from December 31, 2001. Average funds under management amounted to $392.3 billion for the first quarter of 2002, compared to $384.9 billion for the fourth quarter of 2001, and $401.7 billion for the first quarter of 2001. Approximately 58% of the total funds under management was invested in equity securities, and 42% was invested in fixed income securities at both March 31, 2002 and December 31, 2001. Earnings before interest, taxes, depreciation and amortization ("EBITDA") amounted to (pounds sterling)127.4 million ($182.2 million) in the 2002 first quarter, a decrease of (pounds sterling)39.2 million ($56.1 million) from the 2001 period. Net debt at March 31, 2002 amounted to (pounds sterling)746.6 million, ($1,067.6 million) a decrease of (pounds sterling)90.4 million ($129.3 million) since the end of 2001, excluding amounts held for deposit in the Company's unit trusts. AMVESCAP is a leading independent global investment manager, dedicated to helping people worldwide build their financial security. Operating under the AIM, INVESCO and Atlantic Trust 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, Wednesday, April 24, 2002 at 9:30a.m. Eastern Time, by dialing one of the following numbers: 888-201-4990 for US callers or 630-395-0024 for international callers. An audio replay of the conference call will be available until Wednesday, May 1, 2002 at 5:00p.m. Eastern Time by calling 800-518-0087 for US callers or 402-998-0052 for international callers. AMVESCAP PLC GROUP PROFIT AND LOSS ACCOUNT (IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, ---------------------------------------------------- 2002 2001 ------------------------ ------------------------ REVENUES (POUNDS STERLING)377,749 (POUNDS STERLING)427,277 EXPENSES OPERATING EXPENSES (272,901) (281,017) EXCEPTIONAL ITEMS -- (4,207) GOODWILL AMORTIZATION (36,837) (31,811) ------------------------ ------------------------ OPERATING PROFIT 68,011 110,242 6,653 3,001 INVESTMENT INCOME INTEREST PAYABLE (14,038) (14,306) ------------------------ ------------------------ PROFIT BEFORE TAXATION 60,626 98,937 TAXATION (29,823) (41,297) ------------------------ ------------------------ RETAINED PROFIT FOR THE PERIOD (POUNDS STERLING) 30,803 (POUNDS STERLING) 57,640 ======================== ======================== EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION: ---BASIC 8.3P 11.7P* ---DILUTED 8.2P 11.3P* ------------------------ ------------------------ EARNINGS PER SHARE: ---BASIC 3.8P 7.2P ---DILUTED 3.7P 7.0P ------------------------ ------------------------ AVERAGE SHARES OUTSTANDING: ---BASIC 811,887 798,664 ---DILUTED 829,724 836,515 ======================== ========================
*BEFORE EXCEPTIONAL ITEMS AMVESCAP PLC GROUP BALANCE SHEET (IN THOUSANDS)
MARCH 31, 2002 DEC 31, 2001 ------------------------ -------------------------- FIXED ASSETS GOODWILL (POUNDS STERLING)2,657,156 (POUNDS STERLING)2,693,659 INVESTMENTS 155,980 166,036 TANGIBLE ASSETS 185,128 209,370 -------------------------- -------------------------- 2,998,264 3,069,065 CURRENTS ASSETS DEBTORS 704,347 576,447 INVESTMENTS 25,956 33,116 CASH 165,872 175,902 -------------------------- -------------------------- 896,175 785,465 CREDITORS (782,136) (640,804) -------------------------- -------------------------- NET CURRENT ASSETS, EXCLUDING BANKING AND INSURANCE ACTIVITIES 114,039 144,661 BANKING AND INSURANCE ACTIVITIES CASH 173,593 175,076 INVESTMENTS 104,119 89,079 CUSTOMER AND COUNTERPARTY DEBTORS 179,565 179,223 POLICYHOLDER DEBTORS 141,656 134,296 CUSTOMER AND COUNTERPARTY CREDITORS (335,627) (349,560) POLICYHOLDER CREDITORS (141,656) (134,296) OTHER ASSETS, NET (6,166) (9,725) -------------------------- -------------------------- 115,484 84,093 TOTAL ASSETS LESS CURRENT LIABILITIES 3,227,787 3,297,819 LONG-TERM DEBT (760,036) (844,285) PROVISIONS FOR LIABILITIES AND CHARGES (174,457) (172,070) -------------------------- -------------------------- NET ASSETS (POUNDS STERLING)2,293,294 (POUNDS STERLING)2,281,464 ========================== ========================== CAPITAL AND RESERVES CALLED UP SHARE CAPITAL (POUNDS STERLING) 196,749 (POUNDS STERLING) 196,037 SHARE PREMIUM ACCOUNT 1,631,988 1,619,879 EXCHANGEABLE SHARES 432,165 433,597 PROFIT AND LOSS ACCOUNT 716,687 685,884 -------------------------- -------------------------- 2,977,589 2,935,397 OTHER RESERVES (684,295) (653,933) -------------------------- -------------------------- SHAREHOLDERS' FUNDS, EQUITY INTERESTS (POUNDS STERLING)2,293,294 (POUNDS STERLING)2,281,464 ========================== ==========================
AMVESCAP PLC GROUP CASH FLOW STATEMENT (IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, ------------------------------------------ 2002 2001 ------------------------- ------------------------- OPERATING PROFIT, EXCLUDING BANKING AND INSURANCE (POUNDS STERLING) 67,164 (POUNDS STERLING) 106,218 ACTIVITIES AMORTIZATION AND DEPRECIATION 52,448 48,799 CHANGE IN DEBTORS, CREDITORS AND OTHER (398) (32,928) ------------------------- ------------------------- NET CASH INFLOW FROM OPERATING ACTIVITIES, EXCLUDING 119,214 122,089 BANKING AND INSURANCE ACTIVITIES ------------------------- ------------------------- BANKING AND INSURANCE ACTIVITIES (3,817) (53,486) INTEREST PAID, NET OF INVESTMENT INCOME (891) (5,610) (21,010) (23,293) TAXATION CAPITAL EXPENDITURES, NET OF SALES (4,408) (16,554) (PURCHASE)/DISPOSAL OF FIXED ASSET INVESTMENTS, NET (6,161) 6,854 -- (36,825) ACQUISITIONS (96,631) (184,089) NET REPAYMENT OF DEBT 2,191 3,109 ------------------------- ------------------------- DECREASE IN CASH AT BANK AND IN HAND (POUNDS STERLING) (11,513) (POUNDS STERLING)(187,805) ========================= ==========================
AMVESCAP PLC SEGMENTAL INFORMATION (IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, 2002 ------------------------------------------------------------------------------- REVENUES EXPENSES PROFIT ------------------------ -------------------------- ------------------------ MANAGED PRODUCTS (POUNDS STERLING) 225,184 (POUNDS STERLING) (131,479) (POUNDS STERLING) 93,705 INVESCO INSTITUTIONAL 52,258 (40,221) 12,037 INVESCO GLOBAL 75,253 (63,280) 11,973 INVESCO RETIREMENT 15,304 (14,881) 423 PRIVATE WEALTH 9,368 (9,313) 55 NEW BUSINESS 382 (3,229) (2,847) CORPORATE -- (10,498) (10,498) ------------------------ ------------------------- ------------------------ (POUNDS STERLING)377,749 (POUNDS STERLING) (272,901) (POUNDS STERLING)104,848 ======================== ============================ ========================
THREE MONTHS ENDED MARCH 31, 2001 ------------------------------------------------------------------------------- REVENUES EXPENSES PROFIT ------------------------ -------------------------- ------------------------ MANAGED PRODUCTS (POUNDS STERLING)265,229 (POUNDS STERLING) (147,913) (POUNDS STERLING)117,316 INVESCO INSTITUTIONAL 51,520 (38,182) 13,338 INVESCO GLOBAL 94,274 (69,725) 24,549 INVESCO RETIREMENT 13,667 (11,353) 2,314 PRIVATE WEALTH 2,332 (1,884) 448 NEW BUSINESS 255 (3,120) (2,865) CORPORATE -- (8,840) (8,840) ------------------------ -------------------------- ------------------------ (POUNDS STERLING)427,277 (POUNDS STERLING) (281,017) (POUNDS STERLING) 146,260 ======================== ========================== ========================
NOTES 1. The taxation charge 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. The UK Accounting Standards Board issued FRS 19, "Deferred Tax," which requires companies to change the method of computing deferred taxes. The Company has adopted this new statement in 2001, including a restatement of prior years' profit and loss accounts. The effect of FRS 19 has been to reduce the income tax provision and increase net income for the first quarter of 2001 by (pound sterling)1.9 million (0.2p per diluted share). 2. 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 the year by year performance of the business, therefore the calculation below is presented on that basis. Basic earnings per share is based on the weighted average number of ordinary and exchangeable shares outstanding during the respective periods. Diluted earnings per share takes into account the effect of dilutive potential ordinary and exchangeable shares outstanding during the period.
2002 ---- PROFIT BEFORE GOODWILL NUMBER OF AMORTIZATION SHARES PER SHARE (POUNDS SERLING)'000 '000 AMOUNT --------------------- ------------ ----------- BASIC EARNINGS PER SHARE 67,640 811,887 8.3P =========== ISSUANCE OF OPTIONS -- 17,837 -------------------- ------------ DILUTED EARNINGS PER SHARE 67,640 829,724 8.2P ==================== ============ ===========
2001 ---- PROFIT BEFORE GOODWILL AMORTIZATION AND EXCEPTIONAL NUMBER OF ITEMS SHARES PER SHARE (POUNDS SERLING)'000 '000 AMOUNT --------------------- ------------ ----------- BASIC EARNINGS PER SHARE 93,658 798,664 11.7P =========== CONVERSION OF ESDS 672 6,146 ISSUANCE OF OPTIONS -- 31,705 --------------------- ------------ DILUTED EARNINGS PER SHARE 94,330 836,515 11.3P ===================== ============ ============
3. The company completed five acquisitions in 2001, including County Investment Management Limited on January 31, 2001. This acquisition had no material effect on the consolidated financial statements. A (pounds sterling)4.2 million exceptional item was recognized during the 2001 quarter related to integration activities for the County acquisition. These acquisitions have been included from the dates of acquisition in 2001. AMVESCAP PLC FUNDS UNDER MANAGEMENT (IN BILLIONS)
MANAGED PRODUCTS --------------------------------- INVESCO INVESCO PRIVATE TOTAL AIM INVESCO INST GLOBAL WEALTH ----------- ---------------- ---------------- --------------- --------------- -------------- DEC 31, 2001 $ 397.9 $ 179.8 $ 31.4 $ 116.8 $ 60.0 $ 9.9 MARKET GAINS/(LOSS) 1.3 0.1 (0.9) 0.3 1.8 -- NET NEW/(LOST) BUSINESS 0.2 0.4 (0.4) (1.0) 1.3 (0.1) CHANGE IN MONEY MARKET FUNDS 1.2 1.9 (0.2) -- (0.5) -- TRANSFERS -- (0.1) -- 0.1 -- -- FOREIGN CURRENCY (0.6) (0.1) -- -- (0.5) -- ----------------- ---------------- ---------------- --------------- --------------- MARCH 31, 2002 $ 400.0 $ 182.0 $ 29.9 $ 116.2 $ 62.1 $ 9.8 ================ ================ ================ =============== =============== ============== (POUNDS (POUNDS (POUNDS (POUNDS (POUNDS (POUNDS MARCH 31, 2002 + STERLING) 279.7 STERLING) 127.3 STERLING) 20.9 STERLING) 81.3 STERLING) 43.4 STERLING) 6.8 ================ ================ ================ =============== =============== ==============
+ Translated at $1.43 per (pounds sterling)1.00. Note: INVESCO Retirement has $35.6 billion in assets under administration as of March 31, 2002, compared to $34.6 billion as of December 31, 2001. AMVESCAP PLC RECONCILIATION TO US ACCOUNTING PRINCIPLES (IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, 2002 2001 ----------------------- ------------------------ NET PROFIT UNDER UK GAAP (POUNDS STERLING) 30,803 (POUNDS STERLING) 57,640 US GAAP ADJUSTMENTS: ACQUISITION ACCOUNTING: AMORTIZATION OF INTANGIBLES 36,095 (17,028) OTHER ACQUISITION ITEMS (2,103) -- TAXATION (3,815) (12,015) OTHER 544 288 ------------------------ ------------------------ NET INCOME UNDER US GAAP (POUNDS STERLING) 61,524 (POUNDS STERLING) 28,885 ======================== ======================== EARNINGS PER ORDINARY SHARE: -- BASIC 7.6P 3.6P -- DILUTED 7.4P 3.5P EARNINGS PER ORDINARY SHARE BEFORE GOODWILL AMORTIZATION -- BASIC 7.7P 10.3P -- DILUTED 7.5P 9.9P
MARCH 31, 2002 DEC 31, 2001 --------------------------- --------------------------- SHAREHOLDERS' FUNDS UNDER UK GAAP (POUNDS STERLING) 2,293,294 (POUNDS STERLING) 2,281,464 US GAAP ADJUSTMENTS: ACQUISITION ACCOUNTING 1,034,477 984,436 TREASURY STOCK (180,672) (186,134) DIVIDENDS -- 52,708 OTHER (19,082) (20,443) --------------------------- --------------------------- SHAREHOLDERS' EQUITY UNDER US GAAP (POUNDS STERLING) 3,128,017 (POUNDS STERLING) 3,112,031 =========================== ===========================
Note: The US GAAP reconciliation reflects the adoption of Statement of Financial Accounting Standards (SFAS) 141 and 142. SFAS 141, "Business Combinations," requires the allocation of excess purchase price to goodwill or other intangible assets on acquisitions after July 1, 2001. Accordingly, we have preliminarily allocated the majority of the excess purchase price of the Pell Rudman, Grand Pacific and Parkes acquisitions to goodwill. SFAS 142, "Goodwill and Other Intangible Assets," was adopted January 1, 2002. SFAS 142 requires that all goodwill and indefinite-lived intangible assets no longer be amortized, but instead tested for impairment annually. All intangible assets have been preliminarily analyzed as of December 31, 2001 and no impairment exists. 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 APRIL, 2002 By /s/ MICHAEL S. PERMAN ---------------- --------------------- (Signature) Michael S. Perman Company Secretary