This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Legg Mason Management Discusses Q1 2013 Results - Earnings Call Transcript

Overall, at the corporate level, we continue to manage the business, aware of the current environment, including keeping a close eye on expenses, while investing in areas that will position us for long-term revenue and diversified earnings growth with a near-term focus on organic growth.

Let's start with the highlights to the quarter on Slide 3. On a GAAP basis, we announced a net loss of $9.5 million, which reflects charges related to our very successful debt restructuring and fund launches. Adjusted income was nearly $89 million.

In May, we announced a new capital plan, which is part of our broader efforts to enhance financial flexibility and position Legg Mason for sustained growth. In doing so, we reduced our outstanding debt by $350 million and refinanced debt that was due in 2015 with longer-term maturities. This resulted in a largely noncash charge of $0.32 per share. The quarter includes $800 million raised for ClearBridge's third MLP fund and $200 million in a new Western REIT. Our financial results reflect $0.11 per share in costs related to launching these new products.

Our long-term flow story continues to improve, particularly in the critical area of fixed income. And in the quarter, we bought back the remaining $155 million of the original $1 billion board authorization, and we expect to continue the program under our new authorization throughout the year. We ended the quarter with $800 million in cash.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs