NEWPORT BEACH, Calif., Jan. 26, 2000 (PRIMEZONE) -- PIMCO Advisors Holdings L.P. (NYSE:PA) today reported earnings of $18.6 million, or $0.35 per unit for the fourth quarter and $74.3 million or $1.43 per unit for the year ending December 31, 1999 after $0.04 per unit of non-recurring items for the quarter and $0.18 per unit for the year.
3 Mos Ending 3 Mos Ending Year Ending Year Ending
12/31/99 12/31/98 12/31/99 12/31/98
(in 000's, except per unit data)
PIMCO Advisors
Holdings L.P.
Recurring Earnings
Per Unit, diluted $0.39 $0.40 $1.61 $1.52
Non-Recurring Items (0.04) --- (0.18) ---
Earnings Per Unit,
Diluted $0.35 $0.40 $1.43 $1.52
PIMCO Advisors L.P.
Assets Under Management
(in millions)
$260,554 $244,166 $260,554 $244,166
Revenues $244,423 $228,026 $960,618 $852,432
Income Before Non-
Recurring Items $ 57,161 $ 55,222 $226,699 $208,376
Net Income $ 51,661 $ 55,222 $205,700 $208,376
As disclosed in the fourth quarter of 1999, Allianz AG has agreed to acquire majority ownership of PIMCO Advisors, including all of the interests held by PIMCO Advisors Holdings L.P., the publicly traded entity. The agreement calls for payment of $38.75 per unit in cash, subject to downward adjustment if run rate revenues, as defined in the agreement, drop below 85 percent of the September 30, 1999 level. At December 31, 1999, run rate revenues were 100.5 percent of the September 30, 1999 level. The transaction is expected to close no earlier than April 7, 2000, reflecting an effective date of March 31, 2000. If the closing is later than April 7, 2000, there will be a special distribution to unitholders of operating cash flow subsequent to March 31, 2000.
As previously announced, earnings for the fourth quarter of 1999 were affected by costs related to the Allianz transaction of approximately $0.04 per unit, lower than expected performance fees, and continued outflows at Oppenheimer Capital. The Company also expects to incur additional costs in the first quarter of 2000 related to the Allianz transaction.
PIMCO Advisors Holdings ("Holdings") derives its income from its 44 percent ownership in PIMCO Advisors L.P., the operating company. Operating profit available for distribution for Holdings reflects its proportionate share of the operating company's cash distributions.
Net income for Holdings during the three months ended December 31, 1999 was $21.0 million, or $0.39 per unit before the effect of non-recurring items, compared with net income of $20.4 million, or $0.40 per unit, for the same quarter last year. For the 1999 fiscal year, net income increased 9.7 percent before the effect of non-recurring items and was $83.5 million, or $1.61 per unit, compared to net income of $76.1 million, or $1.52 per unit, for the same period in 1998. Including the effect of non-recurring items, net income for Holdings for fiscal year 1999 was $74.3 million and for the quarter net income was $18.6 million.
At the operating company, net income for the fourth quarter was $57.2 million before the effect of non-recurring items, compared with net income of $55.2 million in the fourth quarter last year. Revenues increased 7.2 percent to $244.4 million from $228.0 million in the same quarter last year. For the year ended December 31, 1999, net income rose 8.8 percent before the effect of non-recurring items, and was $226.7 million compared with net income of $208.4 million in the same period last year. Annual revenue rose 12.7 percent to $960.6 million in 1999, compared to $852.4 million in 1998. Including the effect of the non-recurring items, net income at the operating company for the year ended December 31, 1999 was $205.7 million.
William Cvengros, chief executive officer of PIMCO Advisors commented, "In 1999, our assets under management reached a record $260.6 billion while revenues grew almost 13 percent. These achievements are primarily a result of continued new business growth at our fixed income franchise, Pacific Investment Management Company. This growth occurred despite the mid-year divestiture of two subsidiaries which managed a combined $5.2 billion of assets."
Other highlights for the fourth quarter and fiscal year 1999 include:
-- Strong net cash-inflows of $13.7 billion for the year driven
by outstanding inflows of $25.8 billion at Pacific
Investment Management Company. During the year, equity
outflows occurred primarily at Oppenheimer Capital which
accounted for $11.7 billion of net outflows, attributable in
large part to Oppenheimer's value style being out of favor.
-- Holdings declared a fourth quarter distribution of $0.60.
On an annual basis, distributions increased to $2.36 from
$2.18 last year.
-- PIMCO Funds year-to-date net flows through December
aggregated $11.3 billion, which is 15.3 percent higher than
1998 flows.
-- The PIMCO Equity Advisors division reached $9.6 billion in
managed assets at year-end (compared to $5.1 billion at
March 31, 1999), including a record $3.4 billion in the
PIMCO Innovation Fund.
-- Managed assets from offshore clients grew to $16.6 billion
under management compared to $13.7 billion last year
primarily due to net inflows.
PIMCO Advisors is one of the largest investment management companies in the United States with more than $260 billion of assets under management. Its investment advisor subsidiaries, led by Pacific Investment Management Company and Oppenheimer Capital, are widely recognized for consistently posting attractive performance and providing high quality service to more than 1,600 institutional clients worldwide, including one-third of the nation's largest 100 corporations. In addition, PIMCO Advisors manages a family of 54 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 pending acquisition by Allianz AG, 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.
PIMCO Advisors Holdings L.P. (1)
(in 000's except per unit data)
For the 3 For the 3
months months
Ending Ending pct
12/31/99 12/31/98 Change
----------- ----------- ------
Equity in earnings of Pimco
Advisors L.P. $ 22,632 $ 24,341 -7.0pct
Provision for taxes and other 4,047 3,915
----------- -----------
Net Income $ 18,585 $ 20,426 -9.0pct
----------- -----------
----------- -----------
Net Income $ 18,585 $ 20,426 -9.0pct
Share of distributed non cash
charge at Pimco Advisors L.P. 11,193 7,708 45.2pct
----------- -----------
Operating Profit Available for
Distribution $ 29,778 $ 28,134 5.8pct
----------- -----------
----------- -----------
Weighted average units
outstanding 49,584 48,388
Net income per unit
Basic (1) $ 0.37 $ 0.42 -11.2pct
----------- -----------
----------- -----------
Diluted (1) $ 0.35 $ 0.40 -11.5pct
----------- -----------
----------- -----------
Distributions Declared $ 0.60 $ 0.57
----------- -----------
----------- -----------
For the Year For the Year
Ending Ending pct
12/31/99 12/31/98 Change
----------- --------------- -------
Equity in earnings of Pimco
Advisors L.P. $ 90,066 $ 90,682 -0.7pct
Provision for taxes and other 15,775 14,537
----------- --------------
Net Income $ 74,291 $ 76,145 -2.4pct
----------- --------------
----------- --------------
Net Income $ 74,291 $ 76,145 -2.4pct
Share of distributed non cash
charge at Pimco Advisors L.P. 43,670 27,376 59.5pct
----------- --------------
Operating Profit Available for
Distribution $ 117,961 $ 103,521 13.9pct
----------- --------------
----------- --------------
Weighted average units
outstanding 49,193 47,262
Net income per unit
Basic (1) $ 1.51 $ 1.61 -6.3pct
----------- --------------
----------- --------------
Diluted (1) $ 1.43 $ 1.52 -5.9pct
----------- --------------
----------- --------------
Distributions Declared $ 2.36 $ 2.18
----------- --------------
----------- --------------
----------- --------------
(1) Reflects a non-recurring charge of $0.17 per unit in the first
quarter of 1999, a non-recurring gain of 0.03 per unit in the
second quarter of 1999 and a $0.04 per unit non-recurring charge
in the fourth quarter of 1999. Holdings' net income prior to the
non-recurring items was $9.2 million higher for 1999.
PIMCO Advisors L.P.
(in 000's except per unit data)
For the 3 For the 3
months months
Ending Ending pct
12/31/99 12/31/98 Change
------------ -------------- ------
Net income(1) $ 51,661 $ 55,222 -6.4pct
Non-cash charges 20,928 20,600 1.6pct
Other (294) (205) 43.4pct
------------- --------------
Operating Profit Available
for Distribution $ 72,295 $ 75,617 -4.4pct
------------- --------------
------------- --------------
OPAD per Unit (2) $ 0.64 $ 0.69 -7.3pct
------------- --------------
------------- --------------
Distributions Declared $ 0.68 $ 0.66 3.0pct
------------- --------------
------------- --------------
PIMCO Advisors L.P.
(in 000's except per unit data)
For the Year For the Year
Ending Ending pct
12/31/99 12/31/98 Change
------------ ------------ ----------
Net income(1) $ 205,700 $ 208,376 -1.3pct
Non-cash charges 89,033 80,805 10.2pct
Other (515) 10 -5250.0pct
----------- -------------
Operating Profit Available
for Distribution $ 294,218 $ 289,191 1.7pct
----------- -------------
----------- -------------
OPAD per Unit (2) $ 2.62 $ 2.65 -1.4pct
----------- -------------
----------- -------------
----------- -------------
Distributions Declared $ 2.71 $ 2.49 8.8pct
----------- -------------
----------- -------------
(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, a non-recurring gain of $3.9
million or $0.03 per unit in the second quarter of 1999 related to
the sale of the Blairlogie sub-partnership, and a non-recurring
charge for merger costs of $5.5 million or $0.04 per unit in the
fourth quarter of 1999.
(2) Reflects the $0.08 per unit cash portion of the non-recurring
charge in the first quarter of 1999, the $0.03 per unit cash
portion of the non-recurring gain in the second quarter of 1999,
and the $0.04 per unit portion of the non-recurring charge in the
fourth quarter of 1999.
PIMCO Advisors L.P.
(in 000's except per unit data)
For the 3 For the 3
months Months
Ending Ending pct
Revenues 12/31/99 12/31/98 Change
------------- ----------- -------
Investment advisory fees:
Private accounts $ 127,852 $ 144,93 -11.8pct
Proprietary funds 83,531 60,615 37.8pct
Distribution, servicing fees 33,040 22,477 47.0pct
------------- -----------
Total revenues 244,423 228,026 7.2pct
------------- -----------
Expenses (1)
Compensation and benefits 97,228 96,593 0.7pct
Commissions 27,382 20,769 31.8pct
Restricted unit and option
plans 7,165 6,837 4.8pct
Marketing and promotional 10,600 9,273 14.3pct
Occupancy and equipment 10,201 6,825 49.5pct
General and administrative 16,407 12,413 32.2pct
Insurance 951 625 52.2pct
Professional fees 3,493 1,738 101.0pct
Amortization of intangibles 13,763 13,763 0.0pct
Other (income) expense, net 5,572 3,968 40.4pct
------------- -----------
Total expenses 192,762 172,804 11.5pct
------------- -----------
Net Income (1) $ 51,661 $ 55,222 -6.4pct
------------- -----------
------------- -----------
Weighted Average Units
Outstanding (all classes):
Basic 113,178 109,650
Diluted 118,560 114,593
Net income per unit:
Basic (1) $ 0.45 $ 0.50
Diluted (1) (2) $ 0.43 $ 0.48
Assets under management by
investment type (in
000,000's):
Institutional separate
Fixed income $ 118,657 $ 106,633 11.3pct
Equity 44,351 50,753 -12.6pct
Retail products and
mutual funds 97,546 86,780 12.4pct
------------- ------------
Total $ 260,554 $ 244,166 6.7pct
------------- -----------
------------- -----------
Assets under management by
mix (in 000,000's):
Fixed income $ 170,923 $ 148,853 14.8pct
Equity 86,259 92,040 -6.3pct
Money Market 3,372 3,273 3.0pct
------------ ------------
Total $ 260,554 $ 244,166 6.7pct
------------- -----------
------------- -----------
PIMCO Advisors L.P.
(in 000's except per unit data)
For the Year For the Year
Ending Ending pct
Revenues 12/31/99 12/31/98 Change
------------ ----------- ------
Investment advisory fees:
Private accounts $ 545,043 $ 551,404 -1.2pct
Proprietary funds 299,464 218,756 36.9pct
Distribution, servicing fees 116,111 82,272 41.1pct
----------- -----------
Total revenues 960,618 852,432 12.7pct
----------- -----------
Expenses (1)
Compensation and benefits 393,065 359,583 9.3pct
Commissions 95,168 77,842 22.3pct
Restricted unit and option
plans 33,981 25,753 31.9pct
Marketing and promotional 37,546 28,682 30.9pct
Occupancy and equipment 40,627 23,554 72.5pct
General and administrative 62,567 43,669 43.3pct
Insurance 2,659 2,946 -9.7pct
Professional fees 9,967 7,668 30.0pct
Amortization of intangibles 55,052 55,052 0.0pct
Other (income) expense, net 24,286 19,307 25.8pct
------------ ----------
Total expenses 754,918 644,056 17.2pct
------------ ----------
Net Income (1) $ 205,700 $ 208,376 -1.3pct
------------- -----------
------------- -----------
Weighted Average Units
Outstanding (all classes):
Basic 112,116 108,583
Diluted 117,121 113,918
Net income per unit:
Basic (1) $ 1.83 $ 1.92
Diluted (1) (2) $ 1.75 $ 1.83
(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, a non-recurring gain of
$3.9 million or $0.03 per unit in the second quarter of 1999
related to the sale of the Blairlogie sub-partnership, and a
non-recurring charge for merger costs of $5.5 million or
$0.04 per unit in the fourth quarter of 1999.
(2) Does not include the weighted average effect of 2.4 million
units issuable upon exchange of approximately $80.5 million of
6 percent debt because such exchange would be antidilutive to
earnings per unit.
CONTACTS: Investor Contact:
PIMCO Advisors
Kelli Powell
800-387-4626
or
Media Contact:
Steve Hawkins/Linda Press
Sitrick And Company
310-788-2850