NEWPORT BEACH, Calif., April 28, 1999 (PRIMEZONE) -- PIMCO Advisors Holdings L.P. (NYSE: PA) today reported earnings for the first quarter ended March 31, 1999 of $0.21 per unit. As previously reported, earnings include a provision of $0.17 per unit for the consolidation of Oppenheimer Capital's operations into a single new facility and for severance costs principally related to recent changes in its senior management. The Company also reported that assets under management rose 14.3 percent to $248.7 billion compared with $217.6 billion at March 31, 1998, which included strong overall net inflows for the quarter of $4.4 billion, despite continued outflows at our equity subsidiaries.
3 Mos Ending 3 Mos Ending
Mar 31, 1999 Mar 31, 1998
(in 000's, except per unit data)
PIMCO Advisors Holdings L.P.
Recurring Earnings Per Unit $0.38 $0.34
Non-Recurring Charge (0.17) ---
------ -----
Earnings Per Unit $0.21 $0.34
====== =====
PIMCO Advisors L.P.
Assets Under Management (in millions) $248,665 $217,649
Revenues $228,557 $193,857
Income Before Non-Recurring Charge $ 52,227 $ 46,782
Net Income $ 32,825 $ 46,782
PIMCO Advisors Holdings L.P. (Holdings) derives income from its 44 percent ownership in PIMCO Advisors L.P., the operating company. Holdings' operating profit available for distribution reflects its proportionate share of the operating company's cash distributions.
Prior to the non-recurring provision, net income for Holdings during the three months ended March 31, 1999 increased 16.4 percent to $19.2 million, compared with net income of $16.5 million for the same quarter last year. Including the non-recurring provision, net income for Holdings in the first quarter was $10.7 million.
At the operating company, first quarter net income prior to the non-recurring charge was $52.2 million on $228.6 million in revenues, compared with net income of $46.8 million on $193.9 million in revenues in the same period last year. This represents an increase in revenues of 17.9 percent compared with the first quarter last year. Including the non-recurring charge, net income at the operating company for the first quarter of 1999 was $32.8 million.
William Cvengros, Chief Executive Officer of PIMCO Advisors said, "With $4.4 billion in net inflows, the first quarter marked PIMCO's 17th consecutive quarter of net inflows. Despite a volatile bond market, we continued to add significant new fixed-income business in both retail and institutional markets and to exceed our benchmarks."
Additional highlights for the first quarter include:
* Assets under management totaled $248.7 billion at March 31, 1999,
an increase of $4.5 billion or 1.8 percent since December 31,
1998 and 14.3 percent since March 31, 1998. The increase in
assets for the quarter is primarily the result of net new
business since stock market appreciation was substantially offset
by the bond market decline. Fixed income assets grew 3.2 percent
during the quarter while equities remained at approximately the
same level.
* Holdings declared a first quarter distribution of $0.58 - the
third sequential increase. The non-recurring provision made in
the first quarter is not expected to affect the levels of future
income or distributions.
* The PIMCO Total Return Fund, the largest bond fund in the world,
topped $26 billion in assets at March 31, 1999. In January, Bill
Gross and his investment team were named Fixed Income Manager of
the Year in 1998 by Morningstar.
* The Company's retail products and mutual fund assets under
management rose to $90.3 billion at March 31, 1999, a 22.5
percent increase from $73.8 billion at March 31, 1998.
* PIMCO Equity Advisors was formed in January as a new investment
unit focusing on managing and expanding equity mutual funds for
retail investors. Assets under management have grown to $5.1
billion at quarter end, including approximately $4.7 billion
transferred to the division in pre-existing PIMCO Funds' assets.
"The reception to the launch of PIMCO Equity Advisors has been very encouraging," said Mr. Cvengros. "We have assembled an excellent team of experienced managers who are already off to a good start. We are optimistic that the new fund platform will leverage our PIMCO brand and distribution and will result in continuing growth of our mutual fund business. Most recently, assets under management in our PIMCO Funds complex topped $50 billion in April 1999."
PIMCO Advisors is one of the largest investment management companies in the United States with more than $248 billion of assets under management. Its investment advisor subsidiaries, led by Pacific Investment Management and Oppenheimer Capital, are widely recognized for consistently posting attractive performance and high quality service to more than 1,600 institutional clients worldwide, including 42 of the nation's largest 200 corporations. In addition, PIMCO Advisors manages a family of 52 stock and bond mutual funds available to both retail and institutional investors.
Except for the historical information and discussions contained herein, statements contained in this news release constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO Advisors L.P.'s sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. PIMCO Advisors Holdings L.P. cautions readers to carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO Advisors Holdings L.P. undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
Past performance is no guarantee of future results. Call or write for a current PIMCO Funds prospectus containing more complete information, including management fees and expenses. Please read it carefully before you invest or send money. PIMCO Funds Distributors LLC, 2187 Atlantic Street, Stamford, CT 06902, 800-927-4648.
PIMCO Advisors Holdings L.P.
[in 000's except per unit data]
For the 3 mo.s For the 3 mo.s
Ending Ending %
3/31/99 3/31/98 Change
------------ ------------ ------
Equity in earnings of Pimco
Advisors L.P. $ 14,357 $ 20,038 -28.4%
Provision for taxes and other 3,662 3,513
------------- -------------
Net Income (1) $ 10,695 $ 16,525 -35.3%
------------- -------------
------------- -------------
Net Income $ 10,695 $ 16,525 -35.3%
Share of distributed non-cash
charges at Pimco Advisors L.P. 18,364 7,699 138.5%
------------- -------------
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Operating Profit Available for
Distribution $ 29,059 $ 24,224 20.0%
------------- -------------
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Weighted average units
Outstanding 48,712 45,935
Net income per unit
Basic (1) $ 0.22 $ 0.36 -39.0%
------------- -------------
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Diluted (1) $ 0.21 0.34 -38.4%
------------- -------------
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Distributions Declared $ 0.58 $ 0.53 9.4%
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(1) Reflects a non-recurring charge of $0.17 per unit in the first
quarter of 1999 related to severance and relocation at Oppenheimer
Capital. Holdings' net income prior to the non-recurring charge
was $19.2 million.
PIMCO Advisors L.P.
[in 000's except per unit data]
For the 3 mo.s For the 3 mo.s
Ending Ending %
3/31/99 3/31/98 Change
------------ ------------ ------
Net income (1) $ 32,825 $ 46,782 -29.8%
Non-cash charges 30,005 19,658 52.6%
Other 6 138 -95.7%
------------- -------------
Operating Profit Available for
Distribution $ 62,836 $ 66,578 -5.6%
------------- -------------
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OPAD per Unit (2) $ 0.56 $ 0.62 -8.5%
------------- -------------
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Distributions Declared $ 0.67 $ 0.60 11.7%
------------- -------------
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(1) Reflects a non-recurring charge of $19.4 million or $0.17 per unit
in the first quarter of 1999 related to severance and relocation at
Oppenheimer Capital.
(2) Reflects the $0.08 per unit cash portion of the non-recurring
charge in the first quarter of 1999 related to severance and
relocation at Oppenheimer Capital.
PIMCO Advisors L.P.
[in 000's except per unit data]
For the 3 mo.s For the 3 mo.s
Ending Ending %
Revenues 3/31/99 3/31/98 Change
------------ ------------ ------
Investment advisory fees:
Private accounts $ 137,089 $ 129,150 6.1%
Proprietary funds 65,963 46,813 40.9%
Distribution, servicing fees 25,505 17,894 42.5%
------------- -------------
Total revenues 228,557 193,857 17.9%
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Expenses (1)
Compensation and benefits 98,285 83,851 17.2%
Commissions 22,197 17,241 28.7%
Restricted unit and option plans 16,242 5,895 175.5%
Marketing and promotional 7,301 5,511 32.5%
Occupancy and equipment 12,258 5,122 139.3%
General and administrative 14,749 8,931 65.1%
Insurance 560 845 -33.7%
Professional fees 2,539 1,891 34.3%
Amortization of intangibles 13,763 13,763 0.0%
Other [income] expense, net 7,838 4,025 94.7%
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Total expenses 195,732 147,075 33.1%
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Net Income (1) $ 32,825 $ 46,782 -29.8%
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Weighted Average Units Outstanding [all classes]:
Basic 111,025 107,249
Diluted 116,007 113,445
Net income per unit:
Basic (1) $ 0.30 $ 0.44
Diluted (1) (2) $ 0.28 $ 0.41
Assets under management by
source (in 000,000's): 3/31/99 3/31/98
------------- -------------
Institutional separate
Fixed income $ 107,960 88,569 21.9%
Equity 50,369 55,328 -9.0%
Retail products and mutual funds 90,336 73,752 22.5%
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Total $ 248,665 $ 217,649 14.3%
------------- -------------
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Assets under management by
mix (in 000,000's): 3/31/99 3/31/98
------------- -------------
Fixed income $ 153,814 $ 121,080 27.0%
Equity 91,689 93,575 -2.0%
Money Market 3,162 2,994 5.6%
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Total $ 248,665 $ 217,649 14.3%
------------- -------------
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(1) Reflects a non-recurring charge of $19.4 million or $0.17 per unit
in the first quarter of 1999 related to severance and relocation at
Oppenheimer Capital.
(2) Does not include the weighted average effect of 2,414 units
issuable upon exchange of approximately $80.5 million of 6% debt
because such exchange would be antidilutive to earnings per unit.
CONTACT: (Investor Contact)
Kelli Powell
PIMCO Advisors
800-387-4626
www.pimcoadvisors.com
(Media Contact)
Steve Hawkins/Linda Press
Sitrick And Company
310-788-2850