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Assets Up at Janus, Franklin

Janus reports an 80% jump in earnings. Franklin's net eases.

Janus Capital's


first-quarter profit rose 80% from last year due to a jump in assets under management.

Denver-based Janus announced first quarter net income of $35.3 million, or 17 cents a share, compared with $19.6 million, or 9 cents a share, in the year-ago period. The company's results matched the Thomson First Call consensus estimate.

Revenue rose to $232.5 million from $216 million last year.

The company said first quarter 2006 results include a $10 million insurance recovery, partially offset by about $5 million of nonrecurring charges, including facility write-offs, severance and other administrative costs. Furthermore, the company announced that beginning this quarter and for future quarters, Janus will only report GAAP results.

Average assets under management during the first quarter were $154.4 billion compared with $142.6 billion during the fourth quarter 2005, an 8.3% increase, the company said. At March 31, 2006, the company's total assets under management were $158.1 billion, compared with $148.5 billion at Dec. 31, 2005. The higher assets in the first quarter reflect long-term net inflows of $3.5 billion, money market net outflows of $800 million and a total of $6.9 billion in market appreciation and fund performance.

Janus' quantitatively based INTECH subsidiary had net inflows of $4 billion in the first quarter, and ended the first quarter with more than $50 billion in assets under management. Excluding INTECH, Janus' long-term net outflows totaled $500 million in the first quarter 2006 versus long-term net outflows of $900 million and $3.9 billion in the fourth quarter 2005 and first quarter 2005, respectively, according to the company.

"Our third straight quarter of positive flows reflects the company's steady progress across all parts of our business," said Janus CEO Gary Black. "On the institutional side, we built on our momentum by delivering record sales of nearly $5 billion last quarter. Our positive net flows from financial advisors and fund supermarkets and in our international business were also encouraging signs."

Elsewhere, San-Mateo, Calif.-based

Franklin Resources

(BEN) - Get Free Report

reported lower quarterly profits today after taking several charges.

The company announced net income of $196.5 million, or 74 cents a share, on revenue of $1.25 billion for the quarter ended March 31. Income taxes for the quarter included a charge of $111.6 million, or 42 cents a share, related to repatriated earnings of the company's foreign subsidiaries. The company's net income also reflects a non-cash impairment charge of $68.4 million, 17 a share, related to the reorganization of Fiduciary Trust Company International, a company subsidiary.

For the quarter ended March 31, 2005, net income was $221.3 million, or 85 cents a share, on revenues of $1,051.2 million.

Assets under management by the company's subsidiaries were $491.6 billion at March 31, 2006, compared with $464.8 billion at Dec. 31, 2005, and $412.1 billion at March 31, 2005, according to the company.